广东日丰电缆股份有限公司 2022 年第三季度报告 证券代码：002953 证券简称：日丰股份 公告编号：2022-104 债券代码：128145 债券代码：日丰转债 广东日丰电缆股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、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。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、 完整。 3.第三季度报告是否经过审计 □是 否 1 一、主要财务数据 （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 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比 | | --- | --- | --- | --- | --- | | | | 增减 | | 上年同期增减 | | 营业收入（元） | 906,291,839.74 | -3.56% | 2,724 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,817,800,101.48, representing a 20.18% increase compared to ¥1,512,592,325.40 in the same period last year[20]. - The net profit attributable to shareholders decreased by 21.46% to ¥62,404,176.15 from ¥79,452,798.18 in the previous year[20]. - Basic and diluted earnings per share fell by 39.39% to ¥0.20 from ¥0.33 in the previous year[20]. - The company's gross profit margin decreased slightly to 12.27%, down from the previous year's margin, despite a revenue increase of 20.18%[55]. - The company's net profit after deducting non-recurring gains and losses for the reporting period was RMB 60.22 million, a decrease of 17.61% compared to the same period last year[160]. - The net profit for the first half of 2022 was CNY 60,768,579.94, a decrease of 23.3% from CNY 79,224,590.43 in the first half of 2021[175]. - The company reported a total comprehensive income of CNY 43,395,436.58, down from CNY 67,382,276.04 in the previous year, reflecting a decline of 35.5%[179]. Cash Flow and Investments - The net cash flow from operating activities improved significantly to ¥156,176,619.23, compared to a negative cash flow of ¥226,679,154.54 in the same period last year, marking a 168.90% increase[20]. - The company's cash and cash equivalents decreased by 120.00% to -¥5,585,723.95, compared to an increase of ¥27,931,766.84 in the same period last year[52]. - The total investment during the reporting period was ¥48,737,059.88, a significant decrease of 79.85% from ¥241,902,438.36 in the previous year[58]. - The total cash outflow from investing activities was CNY 29,589,644.13, a decrease from CNY 366,886,044.08 in the first half of 2021[181]. - The cash inflow from operating activities totaled CNY 1,725,805,308.87, compared to CNY 1,391,572,119.88 in the previous year, marking an increase of 24.0%[180]. Assets and Liabilities - The total assets of the company increased by 4.32% to ¥2,733,429,995.60 from ¥2,620,345,465.90 at the end of the previous year[20]. - The total liabilities rose to ¥1,446,004,488.91 from ¥1,372,456,430.23, an increase of 5.36%[168]. - The company's total equity reached CNY 1,233,083,139.34, slightly up from CNY 1,211,027,898.99, indicating a growth of 1.8%[174]. - The debt-to-asset ratio increased to 52.90%, up by 0.52% from the end of last year[160]. Research and Development - Research and development expenses rose significantly by 42.64% to ¥60,519,233.92, compared to ¥42,428,005.18 in the same period last year, primarily due to increased investment in new product development[52]. - The company has developed a multi-level R&D team with expertise across various fields, ensuring continuous innovation and market recognition[45]. - The company has committed to investing 100 million RMB in R&D for new technologies over the next two years[101]. Market and Product Strategy - The company specializes in the research, development, production, and sales of rubber-sheathed wires and cables, with applications in various industries including home appliances and robotics[28]. - The company primarily sells its products in the domestic market through direct sales to well-known clients like Midea Group, Gree Electric, and Huawei Technologies, while also expanding its overseas marketing efforts[32]. - The company has established a dedicated overseas sales team to enhance its international market presence, with products exported to countries including Germany, Australia, and the United States[32]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[103]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[190]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company emphasizes the protection of shareholder rights by ensuring transparent communication and timely information disclosure[89]. - The company has a long-term commitment to avoid conflicts of interest and will transfer or terminate any competing business if necessary[95]. - The company reported a commitment to stabilize its stock price for three years post-IPO, with specific measures including stock repurchase and shareholder commitments[98]. Operational Efficiency - The company has implemented a strict supplier evaluation process to ensure the quality of raw materials, particularly copper, which is procured based on market prices and demand forecasts[37]. - The company has established a comprehensive production process control program and fully adopted an ERP system to enhance order processing efficiency, improving on-time delivery rates and customer satisfaction[40]. - The company aims to enhance its operational efficiency through strategic initiatives and technology upgrades[187]. Social Responsibility and Compliance - The company is dedicated to social responsibility and actively participates in community welfare initiatives while pursuing its business growth[92]. - The company adheres to environmental regulations and does not belong to the list of key pollutant discharge units, ensuring compliance with relevant environmental laws[88].

Financial Performance - The company's revenue for Q1 2022 was CNY 790,128,774.75, representing a 17.31% increase compared to CNY 673,534,988.28 in the same period last year[3] - Net profit attributable to shareholders decreased by 25.40% to CNY 28,945,627.97 from CNY 38,798,525.71 year-on-year[3] - The net profit for Q1 2022 was CNY 28,171,380.12, a decrease of 26.7% compared to CNY 38,447,809.30 in Q1 2021[18] - Operating profit for Q1 2022 was CNY 28,848,968.30, down 32.4% from CNY 42,583,427.91 in the same period last year[18] - The total comprehensive income for Q1 2022 was CNY 28,171,380.12, down from CNY 38,447,809.30 in Q1 2021[19] Cash Flow and Liquidity - The net cash flow from operating activities improved significantly, reaching CNY 27,954,492.66, a 138.28% increase from a negative CNY 73,034,786.95 in the previous year[6] - Cash flow from operating activities generated a net amount of CNY 27,954,492.66, recovering from a negative cash flow of CNY -73,034,786.95 in Q1 2021[22] - The company’s investment activities resulted in a net cash outflow of CNY -7,926,749.38, compared to CNY -152,154,628.71 in Q1 2021[22] - The company's cash and cash equivalents decreased to RMB 362,416,053.19 from RMB 371,340,829.30 at the beginning of the year, a decline of 0.2%[13] - Total cash and cash equivalents at the end of Q1 2022 were CNY 112,015,917.04, a decrease from CNY 426,454,454.66 at the end of Q1 2021[23] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,653,840,629.47, up 1.28% from CNY 2,620,345,465.90 at the end of the previous year[3] - The total assets of the company increased to RMB 2,653,840,629.47 from RMB 2,620,345,465.90, representing a growth of 1.3%[15] - The total liabilities rose slightly to RMB 1,376,132,680.47 from RMB 1,372,456,430.23, marking an increase of 0.3%[15] - The company recorded a significant decrease in contract liabilities, down 85.64% to CNY 1,891,316.71 from CNY 13,166,412.22[6] Shareholder Information - The company reported a total of 17,836 common shareholders at the end of the reporting period[8] - The largest shareholder, Feng Jiu Jing, holds 60.49% of the shares, amounting to 147,228,059 shares, with 52,093,760 shares pledged[8] - The company's equity attributable to shareholders increased by 2.44% to CNY 1,264,272,233.47 from CNY 1,234,201,913.10[3] - The company's total equity increased to RMB 1,277,707,949.00 from RMB 1,247,889,035.67, reflecting a growth of 2.4%[15] Earnings and Expenses - Basic and diluted earnings per share decreased by 45.45% to CNY 0.12 from CNY 0.22 in the same period last year[3] - The company reported a basic earnings per share of CNY 0.12, down from CNY 0.22 in Q1 2021[19] - The total operating costs for Q1 2022 were RMB 764,386,646.68, up from RMB 636,420,753.63, reflecting a year-over-year increase of 20.0%[17] - The company incurred financial expenses of CNY 12,070,206.83, which is an increase of 40.5% compared to CNY 8,584,781.37 in the same period last year[18] - Research and development expenses increased to CNY 28,416,848.61, up 34.8% from CNY 21,084,940.10 in Q1 2021[18] Inventory and Receivables - Accounts receivable as of March 31, 2022, stood at RMB 883,590,444.11, down from RMB 913,359,726.96, indicating a decrease of 3.3%[13] - The company’s inventory increased to RMB 392,568,256.70 from RMB 388,000,805.89, showing a rise of 1.4%[13] Non-Operating Income - Non-operating income for the period amounted to CNY 1,657,565.33, primarily from government subsidies[5] Share Repurchase and Bonds - The company repurchased and canceled 46,368 restricted shares at a price of RMB 9.736 per share, totaling approximately RMB 451,438.848[10] - The first interest payment for the convertible bonds was made on March 22, 2022, at RMB 3.00 per bond, based on a face value of RMB 1,000[10]

Financial Performance - The company's operating revenue for 2021 was CNY 3,216,501,256.41, representing a 97.46% increase compared to CNY 1,628,943,070.43 in 2020[22] - The net profit attributable to shareholders for 2021 was CNY 126,794,369.48, which is a 20.87% increase from CNY 104,897,895.81 in the previous year[22] - The net profit after deducting non-recurring gains and losses was CNY 117,625,309.01, up 14.52% from CNY 102,709,064.73 in 2020[22] - The company's total assets at the end of 2021 were CNY 2,620,345,465.90, an increase of 80.65% from CNY 1,450,487,929.30 at the end of 2020[22] - The basic earnings per share for 2021 was CNY 0.52, a decrease of 14.75% compared to CNY 0.61 in 2020[22] - The weighted average return on net assets was 11.05%, slightly up from 10.68% in the previous year[22] - The net cash flow from operating activities was negative CNY 312,647,752.00, a decline of 275.34% compared to negative CNY 83,297,034.61 in 2020[22] - The net assets attributable to shareholders increased by 19.97% to CNY 1,234,201,913.10 from CNY 1,028,784,834.37 in 2020[24] Quarterly Performance - In the first quarter, the company's operating revenue was approximately CNY 673.53 million, with a net profit attributable to shareholders of CNY 38.80 million[27] - The second quarter saw an increase in operating revenue to approximately CNY 839.06 million, with a net profit of CNY 40.65 million[27] - The third quarter's operating revenue reached approximately CNY 939.78 million, with a net profit of CNY 41.45 million[27] - The fourth quarter reported a decline in operating revenue to approximately CNY 764.13 million, with a significant drop in net profit to CNY 5.89 million[27] Acquisitions and Investments - The company acquired a 65% stake in Shanghai Aimeibei New Energy Technology Co., focusing on research and development of new energy charging systems[34] - The company completed the acquisition of 100% equity in Tianjin Yourong Dikan Technology Company during the first extraordinary general meeting[136] - The company acquired Tianjin Yourong, resulting in an increase of 115,573 kilometers in sales volume and 123,939 kilometers in production volume[68] - The company completed the acquisition of 65% of Shanghai Aimeibei New Energy Technology Co., Ltd., focusing on research and development in the electric vehicle charging system[63] Research and Development - Research and development expenses rose by 85.19% to ¥105,193,680.42, driven by increased investment in R&D and consolidation of Tianjin Yourong's expenses[76] - The company increased its R&D personnel from 161 in 2020 to 247 in 2021, representing a growth of 53.33%[79] - The company plans to enhance its research and development capabilities, focusing on high-tech, high-value-added products in response to market demands and industry trends[109] - The company intends to accelerate the research and development of charging systems for new energy vehicles through its subsidiary Shanghai Aimeibei New Energy Technology Co., Ltd.[108] Market Strategy - The company is expanding its overseas sales strategy, establishing a dedicated overseas sales team and increasing marketing efforts in international markets[38] - The company aims to enhance its market position in the domestic market by optimizing its sales channel system and expanding its customer base, aiming to increase market share among small and medium-sized cable users[110] - The company will strengthen its product promotion and brand awareness to improve its market influence and cash flow management through innovative sales collection incentives[110] Financial Management - The company has a robust credit policy, with a structured approval process for customer credit limits and payment terms to mitigate credit risk[42] - The company has established a strict procurement process and supplier selection system to ensure the quality of raw materials, with copper procurement based on a monthly average price from reputable market sources[44] - The company has implemented a comprehensive internal control system focusing on risk assessment, control activities, and internal supervision[182] Corporate Governance - The company is committed to maintaining a robust governance structure and improving operational standards in compliance with relevant laws and regulations[119] - The board of directors consists of 5 members, including 2 independent directors, adhering to legal requirements[122] - The company held 4 shareholder meetings during the reporting period, ensuring compliance with relevant laws and regulations[120] - The company has established a performance evaluation and incentive system linking management compensation to business performance[124] Employee Management - The company has established a performance-oriented salary system, combining various compensation methods to enhance employee motivation and retention[169] - The company plans to increase its workforce by 10% to support growth initiatives and new projects[150] - A focus on continuous training for frontline technical staff will be implemented to cultivate more versatile talents and enhance overall employee skills[111] Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by the environmental protection department[191] - The company is committed to social responsibility and actively participates in public welfare initiatives[195] - The company emphasizes employee rights protection by providing a safe and comfortable working environment and promoting various employee activities[193]

[Important Notices](index=1&type=section&id=%E9%87%8D%E8%A6%81%E5%86%85%E5%AE%B9%E6%8F%90%E7%A4%BA) The board and management confirm the report's accuracy, and the financial information is unaudited - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report's content, and assume individual and joint legal responsibility for any false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's responsible person, the person in charge of accounting, and the head of the accounting department declare that the financial information in the quarterly report is true, accurate, and complete[4](index=4&type=chunk) - This third-quarter report is unaudited[5](index=5&type=chunk) [I. Key Financial Data](index=1&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) [(I) Key Accounting Data and Financial Indicators](index=1&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved significant growth in revenue and net profit, though operating cash flow was negative Key Financial Metrics | Indicator | Current Period | YoY Change (Current Period) | YTD | YoY Change (YTD) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 939,777,927.89 | 119.93% | 2,452,370,253.29 | 113.59% | | Net Profit Attributable to Shareholders (CNY) | 41,454,814.45 | 34.14% | 120,907,612.63 | 49.02% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 40,285,299.50 | 33.48% | 113,375,405.96 | 40.35% | | Net Cash Flow from Operating Activities (CNY) | —— | —— | -241,179,407.83 | 419.25% | | Basic Earnings Per Share (CNY/Share) | 0.17 | -5.56% | 0.50 | 6.38% | | Diluted Earnings Per Share (CNY/Share) | 0.17 | -5.56% | 0.50 | 6.38% | | Weighted Average Return on Equity | 3.43% | 0.30% | 11.10% | 2.76% | | Indicator | End of Current Period | End of Previous Year | Change from Previous Year-End | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 2,536,525,264.10 | 1,450,487,929.30 | 74.87% | | Equity Attributable to Shareholders (CNY) | 1,242,913,618.07 | 1,028,784,834.37 | 20.81% | [(II) Non-recurring Profit and Loss Items and Amounts](index=2&type=section&id=%28%E4%BA%8C%29%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring items, primarily from asset disposals and government subsidies, totaled CNY 7.53 million YTD Non-recurring Profit and Loss | Item | Current Period Amount | YTD Amount | Notes | | :--- | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -1,561,069.58 | 3,567,994.09 | | | Government Subsidies (Excluding those closely related to normal business) | 1,622,909.49 | 4,156,046.96 | | | Other Non-operating Income and Expenses | 1,521,211.41 | 1,419,697.82 | | | Less: Income Tax Impact | 449,418.88 | 1,645,294.91 | | | Less: Minority Interest Impact (After Tax) | -35,882.51 | -33,762.71 | | | Total | 1,169,514.95 | 7,532,206.67 | -- | [(III) Changes and Reasons for Key Accounting Data and Financial Indicators](index=2&type=section&id=%28%E4%B8%89%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant financial growth was driven by the consolidation of Tianjin You Rong, business expansion, and rising copper prices - **YTD operating revenue increased by 113.59% YoY**, primarily due to the consolidation of Tianjin You Rong, business growth, and rising copper prices[10](index=10&type=chunk) - **YTD net profit attributable to shareholders grew by 49.02% YoY**, mainly driven by the consolidation of Tianjin You Rong and business growth[10](index=10&type=chunk) - **YTD net cash flow from operating activities increased by 419.25% YoY**, largely due to the consolidation of Tianjin You Rong and the increase in copper prices[10](index=10&type=chunk) - **Total assets grew by 74.87% from the beginning of the year**, attributed to the consolidation of Tianjin You Rong, business growth, and rising copper prices[10](index=10&type=chunk) [II. Shareholder Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) [(I) Total Number of Common Shareholders and Top Ten Shareholders](index=3&type=section&id=%28%E4%B8%80%29%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had 18,986 common shareholders, with the actual controller holding a majority stake, much of which is pledged - The total number of common shareholders at the end of the reporting period was **18,986**[13](index=13&type=chunk) Top 10 Shareholders | Shareholder Name | Shareholding Ratio | Number of Shares | Shareholder Type | Pledge, Mark, or Freeze Status | Number of Restricted Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Feng Jiujing | 60.50% | 147,228,059 | Domestic Natural Person | Pledged 107,953,760 | 147,228,059 | | Li Qiang | 2.96% | 7,206,912 | Domestic Natural Person | | 7,206,912 | | Feng Yuhua | 1.86% | 4,527,600 | Domestic Natural Person | | 4,527,600 | | Luo Yongwen | 1.79% | 4,345,426 | Domestic Natural Person | | 4,345,426 | | Wang Xueqian | 1.65% | 4,017,666 | Domestic Natural Person | | 0 | | Meng Zhaobin | 1.12% | 2,733,777 | Domestic Natural Person | | 2,733,777 | | Li Yongjuan | 0.41% | 1,002,791 | Domestic Natural Person | | 1,002,791 | | Guo Shiyao | 0.34% | 835,658 | Domestic Natural Person | | 835,658 | | Zhang Zhixiang | 0.25% | 616,500 | Domestic Natural Person | | 0 | | Wu Yanping | 0.22% | 531,700 | Domestic Natural Person | | 0 | Top 10 Unrestricted Shareholders | Shareholder Name | Number of Unrestricted Shares | Share Class | | :--- | :--- | :--- | | Wang Xueqian | 4,017,666 | RMB Ordinary Share | | Zhang Zhixiang | 616,500 | RMB Ordinary Share | | Wu Yanping | 531,700 | RMB Ordinary Share | | Feng Hua | 461,400 | RMB Ordinary Share | | CICC Hong Kong Asset Management Ltd - Client Fund 2 | 419,291 | RMB Ordinary Share | | Ni Duoxian | 364,280 | RMB Ordinary Share | | Jiang Fang | 359,940 | RMB Ordinary Share | | Li Zhiming | 308,520 | RMB Ordinary Share | | Chen Feng | 284,600 | RMB Ordinary Share | | JPMORGAN CHASE BANK, N.A. | 277,836 | RMB Ordinary Share | - Mr. Feng Yuhua is the son of Mr. Feng Jiujing and acts in concert with the actual controller, Mr. Feng Jiujing; Mr. Luo Yongwen is the brother of Mr. Feng Jiujing's spouse and also acts in concert with the actual controller[13](index=13&type=chunk) [III. Other Important Matters](index=4&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company acquired land for a new subsidiary, unlocked restricted stock, and issued convertible bonds - The company plans to purchase 120 acres of land with its own funds of **CNY 30 million** and establish a wholly-owned subsidiary, Guangdong Rifeng New Materials Co, Ltd, successfully acquiring the land use rights in Heshan Industrial City Zone A in October 2021[14](index=14&type=chunk) - The company completed the first unlocking period for the initial grant of its 2020 restricted stock incentive plan, with the related shares listed on October 12, 2021[15](index=15&type=chunk) - The company's **CNY 380 million** convertible corporate bonds (Bond name: "Rifeng Convertible Bond", Code: "128145") entered the conversion period on September 27, 2021[15](index=15&type=chunk) [IV. Quarterly Financial Statements](index=4&type=section&id=%E5%9B%9B%E3%80%81%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [1. Consolidated Balance Sheet](index=4&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Total assets grew 74.87% to CNY 2.54 billion, driven by increases in both current and non-current assets Consolidated Balance Sheet (CNY) | Item | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Current Assets:** | | | | Cash and Cash Equivalents | 111,445,881.86 | 60,616,086.35 | | Accounts Receivable | 907,636,429.24 | 476,257,423.18 | | Receivables Financing | 319,571,024.98 | 180,724,022.57 | | Inventories | 345,550,121.91 | 216,967,232.46 | | Other Current Assets | 287,354,204.32 | 112,762,326.86 | | Total Current Assets | 2,012,324,445.43 | 1,096,206,760.94 | | **Non-current Assets:** | | | | Fixed Assets | 247,150,010.81 | 159,006,926.90 | | Construction in Progress | 105,997,895.38 | 111,821,631.72 | | Right-of-use Assets | 23,208,467.26 | | | Intangible Assets | 77,162,971.42 | 65,387,173.17 | | Goodwill | 43,038,920.35 | | | Total Non-current Assets | 524,200,818.67 | 354,281,168.36 | | **Total Assets** | **2,536,525,264.10** | **1,450,487,929.30** | | **Current Liabilities:** | | | | Short-term Borrowings | 466,587,451.83 | 98,861,993.05 | | Notes Payable | 46,840,000.00 | 25,774,037.58 | | Accounts Payable | 192,785,114.52 | 200,140,536.01 | | Total Current Liabilities | 763,432,749.32 | 404,813,298.91 | | **Non-current Liabilities:** | | | | Long-term Borrowings | 210,599,999.99 | | | Bonds Payable | 280,085,457.44 | | | Lease Liabilities | 21,526,236.72 | | | Total Non-current Liabilities | 526,959,688.14 | 13,429,948.70 | | **Total Liabilities** | **1,290,392,437.46** | **418,243,247.61** | | **Shareholders' Equity:** | | | | Share Capital | 243,367,920.00 | 173,879,128.00 | | Other Equity Instruments | 100,793,690.86 | | | Capital Reserve | 318,353,853.18 | 382,203,466.54 | | Retained Earnings | 531,038,642.05 | 433,657,625.84 | | Total Equity Attributable to Parent Company | 1,242,913,618.07 | 1,028,784,834.37 | | **Total Equity** | **1,246,132,826.64** | **1,032,244,681.69** | | **Total Liabilities and Equity** | **2,536,525,264.10** | **1,450,487,929.30** | - **Total assets increased by 74.87%** from CNY 1.45 billion at the end of 2020 to CNY 2.54 billion on September 30, 2021[6](index=6&type=chunk)[20](index=20&type=chunk) - **Equity attributable to shareholders increased by 20.81%** from CNY 1.03 billion at the end of 2020 to CNY 1.24 billion[6](index=6&type=chunk)[20](index=20&type=chunk) [2. Consolidated Income Statement (YTD)](index=7&type=section&id=2%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%88%A9%E6%B6%A6%E8%A1%A8) YTD operating revenue increased by 113.59% to CNY 2.45 billion, leading to significant growth in net profit Consolidated Income Statement (CNY) | Item | Current Period (YTD) | Prior Period (YTD) | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,452,370,253.29 | 1,148,161,466.22 | | Including: Operating Revenue | 2,452,370,253.29 | 1,148,161,466.22 | | II. Total Operating Costs | 2,338,159,738.51 | 1,062,682,220.00 | | Including: Cost of Goods Sold | 2,113,493,561.32 | 940,602,148.31 | | Taxes and Surcharges | 5,946,195.50 | 4,159,497.47 | | Selling Expenses | 37,177,592.85 | 35,021,273.21 | | General & Administrative Expenses | 81,759,251.67 | 33,897,478.00 | | R&D Expenses | 71,308,498.31 | 41,590,937.97 | | Financial Expenses | 28,474,638.86 | 7,410,885.04 | | Add: Other Income | 4,156,046.96 | 664,645.71 | | Investment Income | 6,232,742.59 | 5,365,754.00 | | Credit Impairment Loss | -420,402.28 | -626,897.45 | | Asset Impairment Loss | 978,986.22 | 3,293.15 | | Gain on Asset Disposal | 3,009,410.15 | -387,281.99 | | III. Operating Profit | 128,167,298.42 | 90,498,759.64 | | Add: Non-operating Income | 2,097,704.64 | 1,586,163.80 | | Less: Non-operating Expenses | 678,006.82 | 1,349,659.18 | | IV. Profit Before Tax | 129,586,996.24 | 90,735,264.26 | | Less: Income Tax Expense | 8,920,022.37 | 9,178,480.06 | | V. Net Profit | 120,666,973.87 | 81,556,784.20 | | 1. Net Profit Attributable to Parent Company | 120,907,612.63 | 81,137,630.64 | | 2. Minority Interest | -240,638.76 | 419,153.56 | | VII. Total Comprehensive Income | 120,666,973.87 | 81,556,784.20 | | Comprehensive Income Attributable to Parent Company | 120,907,612.63 | 81,137,630.64 | | VIII. Earnings Per Share: | | | | (I) Basic EPS | 0.50 | 0.47 | | (II) Diluted EPS | 0.50 | 0.47 | - **YTD total operating revenue was CNY 2.45 billion**, a **113.59% increase** from CNY 1.15 billion in the prior period[5](index=5&type=chunk)[21](index=21&type=chunk) - **YTD net profit attributable to parent company owners was CNY 121 million**, a **49.02% increase** from CNY 81 million in the prior period[5](index=5&type=chunk)[22](index=22&type=chunk) - **Financial expenses increased** from CNY 7.41 million to CNY 28.47 million, primarily due to higher interest expenses[21](index=21&type=chunk) [3. Consolidated Cash Flow Statement (YTD)](index=9&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash flow from operating activities was negative CNY 241 million, while financing activities saw a significant inflow Consolidated Cash Flow Statement (CNY) | Item | Current Period (YTD) | Prior Period (YTD) | | :--- | :--- | :--- | | **I. Cash Flows from Operating Activities:** | | | | Cash received from sales of goods and services | 2,111,814,695.55 | 921,887,682.27 | | Other cash received relating to operating activities | 136,162,013.85 | 15,315,843.89 | | Subtotal of cash inflows from operating activities | 2,282,017,828.46 | 939,458,800.02 | | Cash paid for goods and services | 2,115,833,374.90 | 772,903,033.13 | | Cash paid to and for employees | 217,079,018.52 | 127,928,154.94 | | Payments of all types of taxes | 47,674,386.80 | 26,245,894.32 | | Other cash paid relating to operating activities | 142,610,456.07 | 58,829,054.64 | | Subtotal of cash outflows from operating activities | 2,523,197,236.29 | 985,906,137.03 | | Net cash flow from operating activities | -241,179,407.83 | -46,447,337.01 | | **II. Cash Flows from Investing Activities:** | | | | Subtotal of cash inflows from investing activities | 39,290,209.10 | 292,297,888.15 | | Cash paid for fixed assets, intangible assets, and other long-term assets | 72,230,372.04 | 133,225,425.39 | | Cash paid for investments | 323,530,073.30 | 210,000,000.00 | | Subtotal of cash outflows from investing activities | 395,972,445.34 | 343,225,425.39 | | Net cash flow from investing activities | -356,682,236.24 | -50,927,537.24 | | **III. Cash Flows from Financing Activities:** | | | | Cash received from borrowings | 1,084,163,000.00 | 86,000,000.00 | | Subtotal of cash inflows from financing activities | 1,084,163,000.00 | 111,047,745.00 | | Cash paid for repayment of debts | 380,880,000.01 | 73,000,000.00 | | Cash paid for distribution of dividends, profits or interest | 46,418,372.77 | 25,041,396.72 | | Subtotal of cash outflows from financing activities | 435,339,230.46 | 98,291,396.72 | | Net cash flow from financing activities | 648,823,769.54 | 12,756,348.28 | | **V. Net Increase in Cash and Cash Equivalents** | 50,832,518.29 | -85,010,207.85 | | **VI. Cash and Cash Equivalents at End of Period** | 108,844,413.76 | 36,186,053.25 | - **Net cash flow from operating activities was -CNY 241 million**, a **419.25% YoY decrease** from -CNY 46.45 million, mainly due to increased payments for goods, services, and employees[5](index=5&type=chunk)[26](index=26&type=chunk) - **Net cash flow from investing activities was -CNY 357 million**, compared to -CNY 50.93 million in the prior period, with the increased outflow driven by higher cash payments for investments[26](index=26&type=chunk) - **Net cash flow from financing activities was CNY 649 million**, a substantial increase from CNY 12.76 million in the prior period, primarily due to a significant rise in cash received from borrowings[26](index=26&type=chunk) [(II) Explanation of Financial Statement Adjustments](index=10&type=section&id=%28%E4%BA%8C%29%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company adopted the new lease standard from 2021, adjusting opening balance sheet items accordingly - The company has implemented the new lease standard for the first time since 2021 and has adjusted relevant items in the opening financial statements as of January 1, 2021[27](index=27&type=chunk)[28](index=28&type=chunk) Balance Sheet Adjustments (CNY) | Item | Dec 31, 2020 | Jan 01, 2021 | Adjustment | | :--- | :--- | :--- | :--- | | Total Current Assets | 1,096,206,760.94 | 1,096,206,760.94 | | | Total Non-current Assets | 354,281,168.36 | 354,281,168.36 | | | Total Assets | 1,450,487,929.30 | 1,450,487,929.30 | | | Total Current Liabilities | 404,813,298.91 | | | | Total Non-current Liabilities | 13,429,948.70 | 404,813,298.91 | | | Total Liabilities | 418,243,247.61 | | | | Share Capital | 173,879,128.00 | | | | Capital Reserve | 382,203,466.54 | | | | Less: Treasury Stock | 24,747,745.00 | | | | Surplus Reserve | 63,792,358.99 | 13,429,948.70 | | | Retained Earnings | 433,657,625.84 | | | | Total Equity Attributable to Parent Company | 1,028,784,834.37 | 13,429,948.70 | | | Minority Interest | 3,459,847.32 | 418,243,247.61 | | | Total Equity | 1,032,244,681.69 | | | | Total Liabilities and Equity | 1,450,487,929.30 | 173,879,128.00 | | [(III) Audit Report](index=13&type=section&id=%28%E4%B8%89%29%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's third-quarter 2021 financial report has not been audited - The third-quarter report is unaudited[32](index=32&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,512,592,325.40, representing a 109.83% increase compared to CNY 720,851,631.26 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was CNY 79,452,798.18, up 58.17% from CNY 50,233,374.42 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 73,090,106.46, an increase of 44.44% compared to CNY 50,602,710.56 in the same period last year[21]. - The company's total assets at the end of the reporting period were CNY 2,384,725,900.78, a 64.41% increase from CNY 1,450,487,929.30 at the end of the previous year[21]. - The basic earnings per share for the reporting period were CNY 0.33, a 13.79% increase from CNY 0.29 in the previous year[21]. - The net cash flow from operating activities was negative CNY 226,679,154.54, a significant decline compared to negative CNY 7,285,311.69 in the same period last year, indicating a 3,011.45% decrease[21]. - The company's weighted average return on equity was 7.44%, up from 5.22% in the previous year, reflecting improved profitability[21]. - The gross profit margin for the cable industry decreased by 3.72% to 13.78% compared to the previous year[70]. - The company reported a significant increase in other business income, which rose by 241.92% to CNY 78,451,970.11 from CNY 22,944,767.71[68]. Acquisitions and Investments - The company acquired 100% equity of Tianjin Yourong Dikan Communication Technology Co., which specializes in the R&D, production, and sales of communication cables, enhancing its product offerings[29]. - The company completed the acquisition of Tianjin Yourong, a communication cable research and development firm, for CNY 175 million, fully funded by its own capital[77]. - Tianjin Yourong's acquisition of Tikon Communications Technology Co., Ltd. has expanded the company's product market scale and enhanced its industry competitiveness, significantly impacting overall performance[84]. - The total investment during the reporting period was CNY 241,902,438.36, reflecting a 226.38% increase compared to the previous year's investment[75]. Market and Product Strategy - The company continues to focus on the production and sales of rubber-sheathed wires and cables, with no significant changes in its business model during the reporting period[29]. - The main products include rubber-sheathed wires and cables, with applications in various fields such as home appliances, robotics, and marine engineering[32]. - The company has established a strong domestic sales model, primarily through direct sales to well-known clients like Midea Group and Huawei, while also expanding its overseas marketing efforts[34]. - The company has developed a dedicated overseas sales team to enhance its international market presence, with products now reaching countries like Germany[34]. - The company has achieved significant recognition for its high-end flexible cables, with products exported to countries such as the UK, Germany, and Central Asia, accumulating a wealth of high-quality foreign customer resources[55]. Research and Development - The company has established a complete R&D, quality control, manufacturing, and marketing system, becoming a well-known manufacturer in the wire and cable industry[44]. - The company has developed a multi-level R&D team with expertise across various fields, ensuring continuous innovation and market recognition[49]. - The company's R&D investment increased by 57.27% to CNY 42,428,005.18, primarily due to the consolidation of Tianjin Yourong[66]. - Research and development expenses for the first half of 2021 were CNY 42,428,005.18, up from CNY 26,977,097.38 in the same period of 2020, indicating an increase of approximately 57.0%[181]. Financial Management and Compliance - The company has established measures to ensure compliance with social insurance and housing fund contributions for all employees, with personal liability for any penalties incurred[109]. - The company has outlined specific penalties for executives who violate share lock-up and reduction commitments, including the automatic extension of lock-up periods[109]. - The company is required to disclose any failure to comply with commitments regarding share buybacks or compensation for investor losses, along with the reasons and measures taken[109]. - The company has committed to maintaining its stock price stability for three years post-IPO, with specific measures in place to protect investor rights in case of non-compliance[109]. Risks and Challenges - The company faces operational performance fluctuation risks due to trade tensions and geopolitical uncertainties, as well as potential impacts from macroeconomic cycles[86]. - Market competition risks are increasing as the company contends with both domestic and international competitors in the cable manufacturing sector[87]. - The cost of copper, a primary raw material, significantly affects product costs, and the company has implemented pricing strategies to mitigate risks associated with copper price fluctuations[88]. Shareholder and Corporate Governance - The company has established a stock price stabilization plan to be activated if the stock price falls below the latest audited net asset value per share[107]. - Shareholders have agreed to limit share transfers during the lock-up period, with specific conditions on the percentage of shares that can be sold post-lock-up[107]. - There are ongoing commitments from shareholders and related parties regarding non-competition and share transfer restrictions, ensuring compliance with corporate governance[105]. - The company has not reported any significant new product developments or technological advancements in the current period[106].

Financial Performance - The company's operating revenue for Q1 2021 was ¥673,534,988.28, representing a 162.74% increase compared to ¥256,348,026.68 in the same period last year[9]. - The net profit attributable to shareholders for Q1 2021 was ¥38,798,525.71, up 160.70% from ¥14,882,514.45 year-on-year[9]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥36,174,940.42, reflecting a 159.44% increase from ¥13,943,230.42 in the previous year[9]. - The basic earnings per share for Q1 2021 was ¥0.22, a 144.44% increase compared to ¥0.09 in the same period last year[9]. - Total revenue for Q1 2021 reached ¥673.53 million, representing a 162.74% increase from ¥256.35 million in Q1 2020, driven by the consolidation of Tianjin Yougu and business growth[17]. - Net profit attributable to the parent company for Q1 2021 was ¥38.80 million, up 161.22% from ¥14.85 million in Q1 2020, also influenced by the consolidation of Tianjin Yougu[17]. - Net profit for Q1 2021 was ¥38,447,809.30, representing a 158.5% increase from ¥14,852,828.21 in the previous year[48]. - Earnings per share (EPS) for the period was ¥0.22, compared to ¥0.09 in the same quarter last year, reflecting a growth of 144.4%[49]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,400,429,049.94, which is a 65.52% increase from ¥1,450,276,422.49 at the end of the previous year[9]. - The company's current assets totaled CNY 1,953,495,567.45, up from CNY 1,096,206,760.94, indicating a growth of about 78.2%[36]. - Total liabilities amounted to CNY 1,227,045,918.87, up from CNY 418,243,247.61, representing a growth of about 193.5%[38]. - The total liabilities increased to ¥910,077,933.80 from ¥383,670,337.79, indicating a rise of 137.5% year-on-year[45]. - The company's equity attributable to shareholders reached CNY 1,169,923,383.76, compared to CNY 1,028,573,327.56, an increase of approximately 13.7%[39]. - Owner's equity rose to ¥1,171,549,462.30, up from ¥1,035,510,855.07, marking an increase of 13.1%[45]. Cash Flow - The net cash flow from operating activities for Q1 2021 was -¥73,034,786.95, compared to -¥6,377,271.02 in the same period last year, indicating a significant increase in cash outflow[9]. - The company reported cash outflows from operating activities totaling CNY 715,955,572.78, up from CNY 241,339,204.04 in the same period last year, reflecting a rise of about 196.5%[58]. - Cash received from sales of goods and services reached CNY 498,364,198.18, compared to CNY 231,258,736.28 in the previous year, marking an increase of approximately 115.5%[56]. - Cash inflows from financing activities were CNY 726,379,709.42, a substantial increase from CNY 20,300,000.00 in the same period last year[59]. - The net cash flow from financing activities was CNY 593,835,943.35, compared to a negative CNY 21,240,370.47 in the previous year, showing a positive turnaround[59]. - The ending cash and cash equivalents balance was CNY 426,454,454.66, up from CNY 55,221,611.82 at the end of the previous year, representing an increase of approximately 671.5%[59]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Tianjin Yourong Dikan Communications Technology Co., Ltd. for ¥175 million, approved by the board on January 11, 2021[18]. - The company successfully issued convertible bonds totaling ¥380 million, with a net amount of ¥371.17 million after deducting issuance costs, approved by the China Securities Regulatory Commission on January 14, 2021[20][22]. - The initial conversion price for the convertible bonds is set at ¥19.24 per share, with the bonds listed on April 16, 2021[21]. - The company has invested ¥29.20 million in the high-end flexible cable and energy-saving home appliance components project, achieving a funding usage progress of 78.65% as of March 31, 2021[27]. Operational Highlights - The company reported non-recurring gains and losses totaling ¥2,623,585.29 for the reporting period[11]. - The total number of shareholders at the end of the reporting period was 19,045[12]. - The company reported a significant increase in short-term borrowings, which rose to ¥502.79 million, a 408.57% increase from ¥98.86 million, mainly due to the consolidation of Tianjin Yougu and business expansion[17]. - Research and development expenses for the quarter were ¥21,084,940.10, an increase of 80.6% from ¥11,652,353.36 in the previous year[45]. - Financial expenses increased significantly to ¥8,584,781.37 from ¥1,312,337.25, reflecting a rise of 553.5%[45]. - The company did not report any non-operational fund occupation by controlling shareholders during the reporting period[32]. - There were no research, communication, or interview activities recorded during the reporting period, indicating a focus on internal operations[32].

Financial Performance - The company's operating revenue for 2020 was CNY 1,628,943,070.43, representing a 5.81% increase compared to CNY 1,539,539,280.34 in 2019[16] - The net profit attributable to shareholders for 2020 was CNY 104,897,895.81, a decrease of 3.26% from CNY 108,436,238.74 in the previous year[16] - The net profit after deducting non-recurring gains and losses was CNY 102,709,064.73, which is a 5.40% increase from CNY 97,442,604.47 in 2019[16] - The basic earnings per share for 2020 was CNY 0.61, down 11.59% from CNY 0.69 in 2019[16] - The weighted average return on equity for 2020 was 10.68%, down from 14.03% in 2019[16] - The company reported a quarterly revenue of CNY 480,781,604.21 in Q4 2020, with a net profit of CNY 23,760,265.17 for the same period[20] - The company reported a total of CNY 792.77 million in sales from its top five customers, which accounted for 48.68% of total annual sales[64] - The company's total sales revenue for 2020 was approximately CNY 1.41 billion, representing a year-on-year increase of 16.91%[61] - The company reported a revenue of 1.5 billion RMB for the fiscal year 2020, representing a year-over-year growth of 10%[116] - The company reported a significant increase in revenue, achieving a total of 1.2 billion in Q4 2023, representing a 15% year-over-year growth[120] Cash Flow and Assets - The net cash flow from operating activities was negative CNY 83,297,034.61, a significant decline of 208.17% compared to CNY 77,008,922.17 in 2019[16] - The total assets at the end of 2020 were CNY 1,450,487,929.30, an increase of 16.34% from CNY 1,246,798,338.71 at the end of 2019[16] - The net assets attributable to shareholders at the end of 2020 were CNY 1,028,784,834.37, reflecting a 9.33% increase from CNY 941,011,340.06 in 2019[16] - The total cash and cash equivalents decreased by 193.82% to a net decrease of CNY 63.18 million[70] - The company's total assets at the end of 2020 amounted to 1,450,000,000.00 CNY, with cash and cash equivalents decreasing from 122,618,518.04 CNY (9.83%) at the beginning of the year to 60,616,086.35 CNY (4.18%) by year-end, a decrease of 5.65%[75] - Accounts receivable increased from 363,262,533.57 CNY (29.14%) to 476,257,423.10 CNY (32.83%), reflecting a rise of 3.69% in its proportion of total assets[75] - The total inventory increased by 36.87% to 29,727 kilometers, indicating a buildup of stock during the reporting period[61] Investments and Capital Expenditure - The company invested 191,392,669.02 CNY during the reporting period, representing a significant increase of 296.02% compared to the previous year[77] - The company has committed to investing 27,120,000 CNY in high-end flexible cables and energy-saving home appliance components, with 63.98% of the project completed by year-end[85] - The company has established a strict procurement process and supplier selection system to ensure product quality and control procurement costs[35] - The company has a strong focus on maintaining timely supply to its major clients, often establishing external warehouses to ensure prompt delivery[34] Product and Market Development - The company’s main business remains focused on the production and sales of rubber-sheathed wires and cables, with no significant changes in its primary products or operating model during the reporting period[25] - The company entered the communication equipment and 5G base station cable industry through the acquisition of Tianjin Yourong Dikan Communication Technology Co., Ltd.[53] - Special equipment cables saw a growth of 21.04% in revenue during the reporting period[54] - The revenue from small household appliance wiring components increased by 15.25% to CNY 412.38 million[58] - The company has established a comprehensive marketing system and provides personalized services to high-end customers[49] - The company is investing in new product development, focusing on innovative cable technologies to enhance competitiveness[114] - New product launches included a state-of-the-art cable technology, projected to increase market share by 5%[120] Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 1.2 per 10 shares, with a capital reserve conversion of 4 shares for every 10 shares held[4] - The cash dividend distribution represents 19.89% of the net profit attributable to the company's ordinary shareholders for 2020[110] - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of RMB 1.20 per 10 shares each year since 2018[107] - The company’s cash dividend policy is compliant with its articles of association and has been approved by the shareholders' meeting[105] Risks and Challenges - The company faces operational performance fluctuation risks due to potential macroeconomic cycles and changes in national industrial policies affecting downstream industries[97] - Market competition risks are heightened as the company must continuously innovate and adjust product structures to maintain its competitive edge[98] - The company is significantly impacted by fluctuations in copper prices, which constitute a large portion of its product costs, affecting both product pricing and gross margins[100] Corporate Governance and Compliance - The company has not reported any penalties or rectifications during the reporting period[137] - The company has not encountered any major litigation or arbitration matters during the reporting period[134] - The company has provided guarantee commitments totaling 1.000 million yuan in 2020[143] - The company has established guidelines for managing share transfers and potential reductions in holdings, aligning with market regulations[115] Sustainability and Social Responsibility - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 30% over the next five years[114] - The company donated 1 million RMB to support COVID-19 relief efforts in Zhongshan City[155] - The company has passed the ISO 14001:2015 environmental management system certification and complies with local emission standards[160] Employee and Management Information - The company employed a total of 1,903 staff, with 1,458 in production, 102 in sales, and 156 in technical roles[200] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to CNY 3.7208 million[197] - The company has a total of 6,565,892 restricted shares held by its directors and senior management, with 534,600 shares newly granted during the reporting period[199]

Financial Performance - Net profit attributable to shareholders increased by 1.12% to CNY 30,904,256.22 for the reporting period[7] - Operating income for the reporting period was CNY 427,309,834.96, reflecting a 2.43% increase year-on-year[7] - The company reported no significant changes in net profit expectations for the year, indicating stable operational performance[23] - Net profit for Q3 2020 reached CNY 31,060,304.43, slightly up from CNY 30,560,985.83 in Q3 2019[41] - The total comprehensive income for the period was CNY 31,060,304.43, compared to CNY 30,560,985.83 in the previous period[45] - Total profit for the period was CNY 91,908,783.50, a slight increase of 0.57% from CNY 91,388,799.13 in the previous period[52] - Net profit for the period was CNY 81,781,687.94, down 6.93% from CNY 87,002,693.67 in the previous period[54] Assets and Liabilities - Total assets increased by 5.27% to CNY 1,312,525,012.33 compared to the end of the previous year[7] - The total liabilities decreased to CNY 283,073,367.36 from CNY 305,787,096.90, reflecting a reduction in short-term borrowings and accounts payable[33] - The company's total assets as of September 30, 2020, were CNY 1,276,035,605.70, compared to CNY 1,248,628,870.27 at the end of 2019[36] - The total liabilities decreased to CNY 241,697,134.60 from CNY 300,170,317.07 year-over-year[37] - The company's equity attributable to shareholders increased to CNY 1,034,338,471.10 from CNY 948,458,553.20 year-over-year[37] - The total liabilities of the company amounted to 305,787,096.90 CNY, with total assets at 1,246,798,338.71 CNY[66] Cash Flow - The net cash flow from operating activities was negative at CNY -39,162,025.32, a decrease of 317.06% compared to the same period last year[7] - Cash flow from operating activities showed a net outflow of CNY 46,447,337.01, compared to a net inflow of CNY 851,987.14 in the previous period[57] - Cash and cash equivalents at the end of the period were CNY 36,186,053.25, down from CNY 140,440,736.37 at the end of the previous period[58] - The total cash and cash equivalents at the end of the period were 29,787,328.61 CNY, significantly lower than 134,977,698.21 CNY at the end of the previous period[61] Investment and Expenses - Investment income surged by 801.70% to CNY 5,365,754.00 due to increased financial management income from IPO funds[15] - The company reported a significant increase in non-operating expenses, up 651.90% to CNY 1,349,659.18, primarily due to donations made during the pandemic[15] - Research and development expenses for Q3 2020 were CNY 14,613,840.59, up from CNY 10,291,418.40 in Q3 2019[40] - Research and development expenses increased to CNY 41,590,937.97, up 14.4% from CNY 36,498,493.30 in the previous period[52] - Financial expenses rose to CNY 4,389,028.09 from CNY 717,596.71, primarily due to increased interest expenses[44] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 19,401[11] - The largest shareholder, Feng Jiuqing, holds 60.48% of the shares, with 6,500,000 shares pledged[11] Future Plans and Strategies - The company plans to issue convertible bonds as approved in recent board meetings[16] - The company plans to continue focusing on R&D and market expansion strategies to enhance future performance[54] Compliance and Standards - The company has not undergone an audit for the third quarter report, which may affect stakeholder confidence[70] - The report indicates the implementation of new revenue and leasing standards starting in 2020, which may impact financial reporting[70]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥720,851,631.26, representing a 1.12% increase compared to ¥712,850,383.42 in the same period last year[17]. - The net profit attributable to shareholders of the listed company decreased by 8.55% to ¥50,233,374.42 from ¥54,929,430.53 in the previous year[17]. - Basic earnings per share fell by 23.68% to ¥0.29 from ¥0.38 in the previous year[17]. - The total profit for the reporting period increased by 1.67% compared to the previous year, with a net profit attributable to shareholders of ¥50,233,374.42, a decrease of 8.55% year-on-year[44]. - The gross profit margin for the wire and cable industry was 17.50%, a decrease of 1.60% compared to the previous year[54]. - The total comprehensive income for the first half of 2020 was CNY 50,634,599.71, down from CNY 55,919,880.11 in the first half of 2019[150]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥7,285,311.69, a decline of 171.13% compared to ¥10,241,925.50 in the same period last year[17]. - The cash flow from operating activities showed a negative net amount of -¥7,285,311.69, a decline of 171.13% compared to the previous year, primarily due to unutilized commercial acceptance bills[51]. - The company reported a net cash flow from investment activities of -52,271,190.65 RMB, compared to -6,811,610.04 RMB in the previous year, reflecting a significant increase in cash outflow[154]. - The company reported sales revenue of 502,071,031.01 RMB, a decrease from 555,432,381.34 RMB in the first half of 2019[156]. - The total cash inflow from investment activities was 204,895,815.72 RMB, while cash outflow was 260,905,944.16 RMB, resulting in a net cash flow of -56,010,128.44 RMB[157]. Assets and Liabilities - Total assets increased by 3.77% to ¥1,293,800,230.45 from ¥1,246,798,338.71 at the end of the previous year[17]. - The total liabilities increased to CNY 320,156,634.91 from CNY 305,787,096.90, reflecting an increase of approximately 4.5%[138]. - The company's cash and cash equivalents decreased significantly to CNY 48,314,110.27 from CNY 118,840,384.04, a decline of about 59.3%[140]. - Accounts receivable increased by 9.16% to ¥443,887,024.00, attributed to revenue growth in the second quarter[56]. Research and Development - The company invested ¥26,977,097.38 in research and development, a 2.94% increase from the previous year, aimed at developing low-cost, high-quality raw material formulas[51]. - The company has a strong focus on R&D, with a comprehensive team covering various fields, ensuring continuous innovation and market recognition[36]. Market Position and Strategy - The main business remains focused on the production and sales of rubber-sheathed wires and cables, with no significant changes in the business model during the reporting period[24]. - The company has established stable partnerships with major domestic appliance manufacturers, including Midea Group and Gree Electric, effectively mitigating risks in the competitive low-end cable market[33]. - The company is committed to developing high-value-added special equipment cables, which have received high recognition from clients in this segment[33]. - The company adopts a "make-to-order" production model, aligning production with customer specifications and demands, particularly in the high-end special equipment cable sector[29]. Compliance and Certifications - The company has received multiple international safety certifications, including UL, CE, and VDE, ensuring compliance with various international standards[35]. - The company emphasizes quality management, having obtained ISO9001:2015 and ISO14001:2015 certifications, and maintains a well-equipped inspection center for product quality testing[38]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The total number of common shareholders at the end of the reporting period is 22,833[118]. - The largest shareholder, Feng Jiuqing, holds 61.11% of the shares, totaling 105,162,861 shares[118]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly copper, which significantly impacts product costs[77]. - The company is exposed to market competition risks, particularly from traditional manufacturing powerhouses and emerging economies in the cable industry[76]. Corporate Governance - The financial report was approved by the board of directors on August 25, 2020, ensuring compliance with corporate governance standards[171]. - The company has not encountered any major non-raised fund investment projects during the reporting period[71].