温州意华接插件股份有限公司 2019 年第一季度报告全文 温州意华接插件股份有限公司 2019 年第一季度报告 2019-029 2019 年 04 月 1 温州意华接插件股份有限公司 2019 年第一季度报告全文 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。 公司负责人陈献孟、主管会计工作负责人陈志及会计机构负责人(会计主管 人员)杜平声明：保证季度报告中财务报表的真实、准确、完整。 2 温州意华接插件股份有限公司 2019 年第一季度报告全文 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 追溯调整或重述原因 | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------|-----------------------------|- ...

温州意华接插件股份有限公司 2018 年年度报告全文 温州意华接插件股份有限公司 2018 年年度报告 2019-023 2019 年 04 月 1 温州意华接插件股份有限公司 2018 年年度报告全文 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。 公司负责人陈献孟、主管会计工作负责人陈志及会计机构负责人(会计主管 人员)杜平声明：保证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。 1、原材料价格波动的风险 近年来由于公司产品的上游主要原材料如黄金、铜材、塑胶料等价格出现 一定幅度波动，公司通过与客户的协商，各类产品价格皆随之波动。此外，电 子行业产品价格总体呈现成熟产品批量大、价格低，并伴随产品生命周期呈现 逐步下降并趋于平稳的趋势；而新产品、高端产品在推出时往往定价较高，能 够获得超额利润，但随着新产品推出频次加快，获得超额收益的时间也逐步缩 短。因此，公司产品的市场价格容易受市场供求关系、产品生命周期、原材料 价格等因素的影响产生波动 ...

Financial Performance - Operating revenue for the period was CNY 366,714,809.69, up 13.88% year-on-year[8] - Net profit attributable to shareholders increased by 18.11% to CNY 27,950,911.80 for the period[8] - Basic earnings per share decreased by 27.27% to CNY 0.16[8] - The company's net profit attributable to shareholders for 2018 is expected to range from 7,000 to 9,500 thousand yuan, representing a change of -25.00% to 1.00% compared to the previous year[24] Assets and Liabilities - Total assets increased by 8.48% to CNY 1,611,371,924.55 compared to the end of the previous year[8] - The company’s net assets attributable to shareholders increased by 0.85% to CNY 1,108,176,125.67[8] - The company reported a 136.90% increase in short-term borrowings compared to the end of the previous year[16] - Prepayments increased by 93.15% due to higher advance payments for materials[16] Cash Flow - Cash flow from operating activities was CNY 22,473,877.36, an increase of 8.95%[8] - The company's cash and cash equivalents net increase decreased by 99.72% compared to the end of the previous year, mainly due to a reduction in cash flow from financing activities[18] Research and Development - The company's R&D expenses increased by 64.19% compared to the end of the previous year, primarily due to increased investment in research and development[17] Investments - The net cash flow from investing activities increased by 90.43% compared to the end of the previous year, mainly due to increased cash payments for fixed asset purchases[18] - The company completed a capital increase of 70 million yuan in Yibo Electronics Technology (Dongguan) Co., Ltd., raising its registered capital to 100 million yuan[20] - The company acquired 100% equity of Leqing Yongle Electroplating City Co., Ltd. for 8 million yuan, with the first payment of 6.4 million yuan already made[20] Financial Management - The company's financial expenses decreased by 106.50% compared to the end of the previous year, mainly due to the impact of foreign exchange rate fluctuations[17] - The company's investment income increased by 6,241,343.85 yuan compared to the end of the previous year, primarily due to returns from fundraising financial management[17] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 23,877[12] Other Comprehensive Income - Other comprehensive income increased by 24,211.12 yuan compared to the end of the previous year, mainly due to foreign currency translation differences[17]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 629,056,613.31, representing a 13.16% increase compared to CNY 555,881,118.04 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 29.80% to CNY 35,059,829.76 from CNY 49,946,244.72 year-on-year[19]. - The basic earnings per share dropped by 66.13% to CNY 0.21 from CNY 0.62 in the same period last year[19]. - Operating profit decreased by 32.00% to 46.25 million yuan, while total profit fell by 32.39% to 46.18 million yuan[46]. - The company reported a net loss of 48,534.20 USD for its U.S. subsidiary during the reporting period[83]. - The total comprehensive income for the first half of 2018 was CNY 34,891,404.42, down from CNY 49,946,244.72 in the previous year[150]. Cash Flow and Investments - The net cash flow from operating activities increased by 18.82% to CNY 49,826,279.50 compared to CNY 41,932,898.60 in the previous year[19]. - The company reported a net increase in cash and cash equivalents of CNY 46,324,844.28, a substantial improvement of 254.10% from a decrease of CNY 30,061,958.94 in the prior year[50]. - Cash inflow from financing activities was CNY 143,110,314.45, an increase of 55.5% from CNY 92,000,000.00 in the previous period[158]. - The company reported a financial expense of CNY 2,527,431.50, significantly reduced from CNY 8,738,512.66 in the previous year, indicating improved cost management[149]. - The company achieved an investment income of CNY 4,110,495.90, compared to no investment income reported in the same period last year[149]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,540,399,395.69, a 3.71% increase from CNY 1,485,366,255.55 at the end of the previous year[19]. - The company's total liabilities increased to CNY 450,817,053.90 from CNY 385,933,594.13, reflecting an increase of about 16.8%[141]. - Short-term borrowings decreased by 12.12% to CNY 174,000,000, down from CNY 240,580,000 in the previous year, primarily due to reduced bank loans[59]. - The company's equity attributable to shareholders decreased to CNY 1,080,237,359.73 from CNY 1,098,855,423.72, a decline of approximately 1.6%[142]. Research and Development - Research and development expenses increased significantly by 104.98% to CNY 35,759,428.06, up from CNY 17,445,530.13, primarily due to increased investment in R&D[50]. - The company is focusing on R&D investments, particularly in high-end optical interconnect products, to capture growth opportunities in the telecommunications sector[86]. - The company has established multiple product R&D departments to drive innovation in product development and manufacturing technology[27]. Market Position and Strategy - The company has established a leading position in the high-speed communication connector market, leveraging its first-mover advantage[36]. - The company has expanded its product line to include connectors for consumer electronics and automotive applications, enhancing market reach[27]. - The company maintains long-term cooperative relationships with major clients, including Huawei and ZTE, enhancing its core competitiveness[34]. Risks and Challenges - The company anticipates that the rising prices of raw materials and labor costs will continue to impact its performance negatively[85]. - The competitive landscape in the connector industry is intensifying as major international manufacturers shift production bases to China, increasing domestic competition[85]. - The company faces risks from fluctuating raw material prices, which could affect short-term performance due to market supply and demand dynamics[85]. Corporate Governance and Shareholder Information - The company has not declared any cash dividends or stock bonuses for the half-year period[91]. - The number of ordinary shareholders at the end of the reporting period was 26,023, with the largest shareholder, Yihua Holdings Group, holding 47.48% of the shares[123]. - The company completed the 2017 profit distribution, distributing 5.00 RMB per 10 shares to all shareholders, resulting in a total share capital increase from 106,670,000 to 170,672,000 shares[121]. Financial Reporting and Compliance - The half-year financial report has not been audited, indicating a lack of external validation for the reported figures[93]. - Financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and reflect the company's financial position, operating results, and cash flows accurately[181]. - The financial report was approved by the company's board of directors on August 16, 2018[177].

Financial Performance - The company's operating revenue for 2017 was CNY 1,215,023,558.53, representing a year-on-year increase of 22.59% compared to CNY 991,104,491.11 in 2016[26]. - The net profit attributable to shareholders for 2017 was CNY 93,978,735.39, a decrease of 5.17% from CNY 99,104,030.77 in 2016[26]. - The net cash flow from operating activities decreased by 28.77% to CNY 84,025,595.33 in 2017 from CNY 117,960,716.83 in 2016[26]. - The company's total assets increased by 52.49% to CNY 1,485,366,255.55 at the end of 2017, up from CNY 974,072,034.12 at the end of 2016[26]. - The net assets attributable to shareholders rose by 105.48% to CNY 1,098,855,423.72 at the end of 2017, compared to CNY 534,772,744.99 at the end of 2016[26]. - The basic earnings per share for 2017 were CNY 1.08, down 12.90% from CNY 1.24 in 2016[26]. - The company reported a total of CNY 3,562,141.45 in non-recurring gains for 2017, compared to CNY 3,131,270.13 in 2016[31]. - The gross profit margin for connector products was 28.22%, a decrease of 2.29% year-on-year[63]. - The revenue from foreign sales accounted for approximately 30% of total sales, with a year-on-year growth of 31%[57]. - The company reported a net profit from continuing operations of ¥93,930,973.09 for 2017, compared to ¥99,104,030.77 in 2016, indicating a decrease of approximately 1.2%[111]. Investment and Capital Utilization - The company plans to invest raised funds into projects including the annual production of 139.25 million high-speed communication connectors and 790 million consumer electronics connectors[11]. - The company raised a total of CNY 551,535,600.00 from its public offering, with a net amount of CNY 500,103,943.34 after deducting fees[86]. - As of December 31, 2017, the company directly invested CNY 233,152,161.87 into projects funded by the raised capital, while CNY 249,000,000.00 was placed in financial products[86]. - The company has committed investments totaling CNY 50,010.39 million, with cumulative investments of CNY 23,315.22 million, representing 46.6% of the total commitment[88]. - The annual production capacity for high-speed communication connectors is projected to reach 139.25 million units, with a current investment progress of 16.87%[88]. - The annual production capacity for consumer electronics connectors is expected to be 790 million units, with an investment progress of 10.28%[88]. - The company has not changed the use of raised funds during the reporting period, maintaining a 0.00% change in purpose[86]. - The balance of the special account for raised funds as of December 31, 2017, was CNY 18,137,219.11[86]. Research and Development - The company has established multiple R&D departments to innovate in product development and manufacturing technology, enhancing its competitive edge in the connector industry[35]. - The company applied for over 30 patents in 2017, enhancing its competitive barrier and technological strength[58]. - Total research and development investment reached 56,259,093.11 yuan in 2017, an increase of 80.43% year-on-year, accounting for 4.63% of total revenue[72]. - The company has a strong R&D system, with dedicated centers for new product development and advanced manufacturing technology innovation[50]. - The company established a subsidiary in Wuhan to enhance R&D in optical communication devices, aiming to capture market opportunities in 5G applications[58]. Market Competition and Strategy - The company is experiencing increased competition as major international manufacturers shift production bases to China, intensifying market competition[7]. - The company emphasizes the importance of continuous improvement in competitiveness to mitigate market risks[7]. - The company’s strategic focus includes expanding market share and consolidating its industry position through effective fund utilization[11]. - The company intends to expand its market presence in telecommunications, home appliances, security, and automotive sectors, while also actively exploring overseas markets[97]. - The company is exploring partnerships with tech firms to integrate advanced technologies into its product lines, which is expected to boost competitiveness[173]. Operational Efficiency and Management - The company has implemented a direct sales model, enhancing customer engagement through product promotion events and industry exhibitions[39]. - The company utilizes a VMI sales model with major clients, such as Huawei, to strengthen cooperation and inventory management[39]. - The company has a competitive salary system linked to performance evaluation, enhancing employee motivation and retention[194]. - The governance structure of the company is compliant with relevant laws and regulations, ensuring a high level of operational independence and information disclosure[198]. - The company has established a sound internal control system to improve operational standards[198]. Shareholder and Employee Relations - The company reported a cash dividend of 5.00 yuan per 10 shares (including tax) and a capital reserve conversion of 6 shares for every 10 shares[13]. - The company plans to distribute cash dividends of RMB 5 per 10 shares, totaling RMB 53,335,000 for the year 2017, which represents 56.75% of the net profit attributable to shareholders[104]. - The company emphasizes shareholder rights protection through a reasonable profit distribution policy and active information disclosure[135]. - Employee rights are prioritized, with efforts to enhance compensation and benefits to foster harmonious labor relations[135]. - The total number of employees in the company is 3,715, with 1,452 in the parent company and 2,263 in major subsidiaries[192]. Risks and Challenges - The company faces risks from raw material price fluctuations, particularly in gold, copper, and plastics, which can impact short-term performance[5]. - The company acknowledges the risk of new product development uncertainties due to immature production processes and market demand fluctuations[9]. - The company’s export operations are subject to exchange rate fluctuations, which may affect profitability[12]. - Material costs represented 59.37% of total operating costs in 2017, with a year-on-year increase of 28.80%[67]. Corporate Governance and Compliance - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[105]. - The company has not reported any significant equity investments other than the aforementioned investment in Wuhan Yihua Optoelectronics Technology Co., Ltd.[82]. - The company has not engaged in any major related party transactions during the reporting period[120]. - The company has maintained independence from its controlling shareholder in terms of business, personnel, assets, finance, and organization[200].

Financial Performance - The company's operating revenue for Q1 2018 was ¥273,194,578.05, representing a 9.35% increase compared to ¥249,840,522.77 in the same period last year[8] - The net profit attributable to shareholders decreased by 25.20% to ¥16,904,185.60 from ¥22,599,449.56 year-on-year[8] - The net profit after deducting non-recurring gains and losses fell by 30.51% to ¥15,318,359.22 compared to ¥22,043,455.26 in the previous year[8] - Basic and diluted earnings per share decreased by 42.86% to ¥0.16 from ¥0.28 year-on-year[8] - The weighted average return on equity dropped to 1.53%, down from 4.14% in the previous year[8] - The net profit attributable to shareholders for the first half of 2018 is expected to be between 34 million and 45 million RMB, representing a decrease of 10% to 32% compared to the same period in 2017[19] - The net profit for the first half of 2017 was approximately 49.95 million RMB[19] Cash Flow and Assets - The net cash flow from operating activities surged by 343.59% to ¥11,479,643.58, up from ¥2,587,904.97 in the same period last year[8] - Total assets at the end of the reporting period were ¥1,464,107,269.33, a decrease of 1.43% from ¥1,485,366,255.55 at the end of the previous year[8] - The net assets attributable to shareholders increased by 1.54% to ¥1,115,759,609.32 from ¥1,098,855,423.72 at the end of the previous year[8] - The net increase in cash and cash equivalents rose by 244% compared to the end of the previous year, primarily due to an increase in cash flow from financing activities[16] Liabilities and Expenses - The company's accounts payable interest increased by 35.20% compared to the end of the previous year, mainly due to an increase in loans[16] - Prepayments increased by 206.21% compared to the end of the previous year, primarily due to an increase in advance payments for materials[16] - Short-term borrowings increased by 35.71% compared to the end of the previous year, attributed to an increase in loan balances[16] - Financial expenses increased by 81.08% compared to the end of the previous year, primarily due to increased foreign exchange losses from currency fluctuations[16] Other Income and Non-Recurring Items - The company reported non-recurring gains and losses totaling ¥1,585,826.38, primarily from investment income and government subsidies[9] - Other income decreased by 33.95% compared to the end of the previous year, mainly due to a reduction in government subsidies[16] - The company reported a significant increase of 587.83% in non-operating income compared to the end of the previous year, primarily due to an increase in compensation received for materials[16] Performance Decline Factors - The decline in performance is attributed to rising raw material prices, increasing labor costs, exchange rate impacts, and increased R&D investment by the company[19]

Investment and Financial Performance - The company plans to invest raised funds into projects including the annual production of 139.25 million high-speed communication connectors and 790 million consumer electronics connectors[11]. - The company reported that the SFP series products are experiencing a price decline due to market competition and product lifecycle, despite initial high pricing[9]. - The company acknowledges the risk of not achieving expected returns from fundraising investment projects due to market demand fluctuations and intensified competition[11]. - The company’s profit distribution plan includes a cash dividend of 5.00 yuan per 10 shares and a capital reserve increase of 6 shares per 10 shares[13]. - The company’s operating revenue for 2017 was CNY 1,215,023,558.53, representing a 22.59% increase compared to CNY 991,104,491.11 in 2016[26]. - The net profit attributable to shareholders for 2017 was CNY 93,978,735.39, a decrease of 5.17% from CNY 99,104,030.77 in 2016[26]. - The net cash flow from operating activities decreased by 28.77% to CNY 84,025,595.33 from CNY 117,960,716.83 in 2016[26]. - The total assets at the end of 2017 were CNY 1,485,366,255.55, a 52.49% increase from CNY 974,072,034.12 at the end of 2016[26]. - The net assets attributable to shareholders increased by 105.48% to CNY 1,098,855,423.72 from CNY 534,772,744.99 in 2016[26]. - The basic earnings per share for 2017 were CNY 1.08, down 12.90% from CNY 1.24 in 2016[26]. - The weighted average return on net assets for 2017 was 13.68%, a decrease of 6.54% from 20.22% in 2016[26]. - The company reported a significant increase in financial expenses by 155.28% due to exchange rate fluctuations[71]. - The cash and cash equivalents increased by 25,615,797.22 yuan, a 403.07% rise compared to 2016[75]. - The company raised a total of CNY 551,535,600.00 from its public offering, with a net amount of CNY 500,103,943.34 after deducting fees[86]. - The company reported a loss of CNY 382,090.00 from its investment in Wuhan Yihua Optoelectronics Technology Co., Ltd., where it holds an 87.50% stake[83]. - The company has a remaining balance of CNY 18,137,219.11 in its special account for raised funds as of December 31, 2017[86]. Market Position and Product Development - The company is strategically positioned in the high-speed connector market, benefiting from early investments in research and development[8]. - The company is expanding its product line to include consumer electronics connectors and automotive connectors, leveraging its existing customer resources and technical advantages[35]. - The company has established several product R&D departments to innovate in new product development and manufacturing technology[35]. - The company has actively developed high-speed communication connectors, positioning itself as a leader in this emerging market[47]. - The company has a diverse product range, catering to various industries including telecommunications, consumer electronics, and automotive[37]. - The revenue from communication connector products was CNY 727.67 million, accounting for 59.89% of total revenue, with a year-on-year growth of 13.05%[62]. - The company developed a modular mold system, reducing the mold design and manufacturing cycle to an average of 25 days, with some samples completed in under 7 days[53]. - The company applied for over 30 patents in 2017, enhancing its competitive barrier and technological strength[58]. - The company is considering strategic acquisitions to bolster its product portfolio and market presence[180]. - New product launches are planned for Q2 2024, including two innovative product lines aimed at expanding market share[180]. - The company is expanding its market presence in Southeast Asia, aiming for a 30% increase in market share within the next two years[186]. - A strategic acquisition of a local competitor is planned, which is anticipated to increase production capacity by 40%[186]. Operational Efficiency and R&D - The company emphasizes the importance of continuous improvement in production processes for光互连 products to meet market demands[9]. - The company has a strong R&D system, with dedicated departments for new product development and production technology innovation[50]. - Total research and development investment reached 56,259,093.11 yuan in 2017, an increase of 80.43% year-on-year, accounting for 4.63% of total revenue[72]. - The company is investing 100 million in R&D for new technologies to enhance product efficiency and sustainability[180]. - The management team emphasized a commitment to enhancing operational efficiency to drive profitability[180]. - The company plans to enhance its supply chain efficiency, targeting a reduction in lead times by 15%[186]. Customer Relationships and Sales - The company has established long-term cooperative relationships with major clients such as Huawei and ZTE, enhancing its core competitiveness[45]. - The company utilizes a VMI sales model with Huawei, strengthening the partnership and ensuring stable inventory management[39]. - Domestic sales accounted for 68.78% of total revenue, while international sales contributed 31.22%, with the latter growing by 31% year-on-year[62]. - The top five customers accounted for 21.21% of total annual sales, with the largest customer contributing 9.52%[69]. Governance and Compliance - The company will implement a strategy to improve its governance structure in line with regulatory requirements, ensuring efficient operations and decision-making processes[97]. - The company has committed to measures to reduce and regulate related party transactions as part of its ongoing compliance efforts[106]. - The company has maintained transparency in its disclosures regarding major commitments and risks associated with its operations[107]. - The company has not faced any non-standard audit reports during the reporting period[109]. - The governance structure is compliant with relevant laws and regulations, ensuring independent and standardized operations[198]. - The company maintains independence from its controlling shareholder in business, personnel, assets, finance, and organization[200]. Employee and Talent Management - The total number of employees in the company is 3,715, with 1,452 in the parent company and 2,263 in major subsidiaries[192]. - The professional composition includes 2,067 production personnel, 160 sales personnel, and 822 technical personnel[192]. - The company emphasizes talent development through a combination of internal and external training programs[195]. - The company has a competitive salary system linked to performance evaluation, enhancing employee motivation and retention[194]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 425.92 million yuan[191]. Environmental and Social Responsibility - The company strictly adheres to environmental protection laws and has not faced any penalties for violations during the reporting period[139]. - The company has not been classified as a key pollutant discharge unit by environmental protection authorities[139]. - The company has not engaged in any precision poverty alleviation initiatives during the reporting year and has no plans for future initiatives[138]. Shareholder Information - The company maintains a profit distribution policy to protect shareholder interests and ensures timely information disclosure[135]. - The cash dividend for 2017 is set at RMB 5 per 10 shares, totaling RMB 53,335,000, which represents 56.75% of the net profit attributable to shareholders[103]. - The total number of shares for the cash dividend distribution in 2017 is based on 106,670,000 shares, with a capital reserve conversion plan of 6 shares for every 10 shares held[104]. - The company reported a total shareholding of 12,627,440 shares held by directors and senior management as of the end of the reporting period[163]. - The largest shareholder, Yihua Holding Group Co., Ltd., holds 47.48% of the shares, totaling 50,646,934 shares[154]. - The company issued 26.67 million A-shares during the reporting period, increasing total shares to 106.67 million[146].

Financial Performance - Operating revenue for the current period was CNY 322,009,148.15, representing a 28.99% increase year-on-year[8] - Net profit attributable to shareholders for the current period was CNY 23,664,706.28, up 10.34% year-on-year[8] - Basic earnings per share decreased by 18.52% to CNY 0.22 compared to the same period last year[8] - The net profit attributable to shareholders for 2017 is projected to range from 90 million to 110 million CNY, reflecting a change of -9.18% to 11.00% compared to 2016[27] - The net profit for 2016 was 99.104 million CNY, indicating that the company's net profit for 2017 is expected to be relatively stable compared to the previous year[27] - Despite the challenges from raw material prices, the company's operating revenue has shown a positive year-on-year growth, contributing positively to net profit[27] Asset and Shareholder Information - Total assets increased by 57.71% to CNY 1,536,243,113.27 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 101.67% to CNY 1,078,487,639.33 compared to the end of the previous year[8] - The company’s total number of shareholders reached 28,447 at the end of the reporting period[12] - The top shareholder, Yihua Holding Group Co., Ltd., holds 47.48% of the shares[12] Cash Flow and Investment - Cash flow from operating activities increased by 92.94% to CNY 20,627,630.90 compared to the same period last year[8] - The cash received from tax refunds at the end of the reporting period increased by 156.19% compared to the end of the previous year, mainly due to an increase in tax refund amounts[19] - Cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets increased by 160.09% at the end of the reporting period compared to the end of the previous year, mainly due to increased investment in the new factory in the post-bridge industrial area[18] - The net cash flow from investing activities increased by 166.84% at the end of the reporting period compared to the end of the previous year, primarily due to increased investment in the new factory[19] - The cash received from financing activities increased significantly at the end of the reporting period, attributed to the cash received from investors during the public offering of shares in September 2017[18] - The cash paid for debt repayment decreased by 35.81% at the end of the reporting period compared to the end of the previous year, due to a reduction in bank loan repayments[18] Operational Developments - The company reported a 207.87% increase in construction in progress, primarily due to the new factory in the rear bridge industrial area[16] - The company is in the process of establishing a subsidiary in Wuhan, as approved by the board of directors on September 18, 2017[20] Financial Challenges - The tax and additional charges at the end of the reporting period increased by 54.75% compared to the end of the previous year, mainly due to adjustments in tax items[18] - Financial expenses at the end of the reporting period increased by 93.89% compared to the end of the previous year, primarily due to fluctuations in the US dollar exchange rate[18] - The fluctuation in prices of key raw materials (gold, copper, and plastic) has negatively impacted the company's net profit[27] Corporate Governance - There are no instances of non-operating fund occupation by controlling shareholders or related parties during the reporting period[25] - The company expects a positive net profit attributable to shareholders for the fiscal year 2017, indicating no turnaround situation[24]