Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥618.88 million, a slight increase of 0.38% compared to ¥616.55 million in the same period last year[19]. - The net profit attributable to shareholders decreased by 80.88% to ¥6.23 million from ¥32.60 million year-on-year[19]. - The net profit after deducting non-recurring gains and losses also fell by 80.10% to ¥6.81 million from ¥34.20 million in the previous year[19]. - The overall gross profit margin decreased from 34.18% to 25.77% due to changes in business structure and high material costs[19]. - Operating costs rose to ¥459.40 million, reflecting a significant increase of 13.21% from ¥405.80 million year-on-year[52]. - The company reported a 65.87% decrease in income tax expenses, totaling ¥1.86 million, down from ¥5.46 million due to reduced profits[52]. - The company reported a net loss of CNY 209,892,736.69 as of June 30, 2022, compared to a loss of CNY 216,447,073.89 at the beginning of the year, showing a slight improvement[150]. - The net profit for the first half of 2022 was CNY 10,216,546.89, a decrease of 65.0% from CNY 29,159,620.04 in the same period of 2021[157]. Cash Flow and Investments - The net cash flow from operating activities increased by 58.40% to ¥107.90 million compared to ¥68.11 million in the same period last year[19]. - The company’s cash and cash equivalents decreased by ¥46.31 million, a decline of 662.20% compared to a decrease of ¥6.08 million in the previous year[52]. - The net cash flow from investment activities was -¥163,490,226.92, a decline from ¥38,654,023.59 in the previous year, indicating increased investment expenditures[165]. - The cash inflow from investment activities totaled ¥24,541,523.04, down from ¥173,083,210.53, reflecting a decrease of 85.8%[165]. - The ending cash and cash equivalents balance was ¥238,192,433.65, compared to ¥182,081,457.68 at the end of the first half of 2021, showing an increase of 30.9%[165]. Research and Development - Research and development expenses increased by 20.59% in 2022 to enhance product competitiveness[19]. - The company plans to continue increasing R&D investment to enhance product quality and production efficiency, while expanding into new markets[32]. - Research and development investment reached ¥41.16 million, marking a year-on-year increase of 20.59% from ¥34.13 million[52]. - The company has allocated 70 million for research and development in new technologies[172]. - The company has allocated 135.9 million yuan for R&D expenses, reflecting a commitment to innovation[176]. Business Segments and Revenue Sources - Revenue from high-end manufacturing business was CNY 450.34 million, down 9.11% year-on-year, while new orders amounted to CNY 366.06 million, remaining stable compared to the previous year[29]. - The new energy business generated revenue of CNY 58.84 million, marking a breakthrough, with new orders totaling CNY 202.67 million[37]. - The energy-saving and environmental protection business reported revenue of CNY 109.70 million, a significant increase of 55.99% year-on-year[28]. - The company’s SVG business generated revenue of CNY 1.11 million, with new orders of CNY 11.60 million during the reporting period[34]. - The company’s low-voltage inverter series revenue was CNY 104.86 million, down 29.39% year-on-year, with new orders decreasing by 33.96%[31]. Market Position and Strategy - The company aims to strengthen its position in the high-end manufacturing sector while exploring overseas markets to maintain its leading status[29]. - The company is actively pursuing new energy-related businesses, including household storage and low-carbon smart microgrid solutions, as part of its strategic focus[36]. - The company is actively expanding into overseas markets to mitigate risks associated with policy changes in high-end manufacturing, energy conservation, and new energy sectors[78]. - The company plans to focus on expanding its market presence and investing in new technologies to drive future growth[149]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[184]. Shareholder and Equity Information - The company plans to release restricted shares for executives, with specific dates set for November 21, 2023, for several individuals[132]. - The total number of restricted shares released during the reporting period was 12,129,000 shares[132]. - The company has a total of 1,540,200 shares that are subject to restrictions at the end of the reporting period[132]. - The company has implemented a stock incentive plan to align the interests of executives with those of shareholders[130]. - The company reported a total of 208,685,418 shares held by major shareholder Guangdong Midea Heating Equipment Co., Ltd. as of the end of the reporting period[135]. Risk Management and Compliance - The company has not reported any violations of procedures in providing guarantees[120]. - The actual guarantee amount for the reporting period is significantly lower than the approved limit, indicating a conservative approach to risk management[120]. - The company has not reported any non-operating related party debts during the reporting period[110]. - The company has not engaged in any asset or equity acquisition or sale transactions during the reporting period[109]. - The company did not experience any significant changes in profit composition or sources during the reporting period[56].

Financial Performance - The company's operating revenue for 2021 was ¥1,204,203,246.73, a decrease of 4.17% compared to ¥1,256,569,347.18 in 2020[19] - The net profit attributable to shareholders in 2021 was ¥50,258,960.69, a significant increase of 109.76% from a loss of ¥515,020,250.06 in 2020[19] - The net profit after deducting non-recurring gains and losses was ¥40,425,704.47, up 107.27% from a loss of ¥556,228,514.86 in the previous year[19] - The net cash flow from operating activities increased by 66.42% to ¥222,663,878.29, compared to ¥133,797,288.89 in 2020[19] - The total assets at the end of 2021 were ¥2,484,768,922.46, a decrease of 4.43% from ¥2,599,945,857.59 at the end of 2020[19] - The net assets attributable to shareholders increased by 3.61% to ¥1,801,628,115.41, compared to ¥1,738,777,607.23 at the end of 2020[19] - The basic earnings per share for 2021 were ¥0.05, a recovery from a loss of ¥0.46 in 2020, representing an increase of 110.87%[19] - The weighted average return on net assets was 2.84%, an increase of 28.66 percentage points compared to 1.04% in 2019[19] - The company achieved operating revenue of CNY 1,204,203,246.73, a year-on-year increase of 32.62% after excluding the impact of changes in the scope of consolidation[54] - Net profit attributable to the parent company was CNY 50,259,000, representing a year-on-year growth of 109.76%, marking a turnaround from loss to profit[54] Market Performance - The industrial automation market in China was valued at approximately ¥292.28 billion in 2021, showing a year-on-year growth of 16.8%[30] - The domestic medium and high voltage inverter market grew by 17.2% in 2021, reaching a total scale of approximately ¥5.46 billion[31] - The low voltage inverter market in China was valued at approximately ¥30.95 billion in 2021, with a year-on-year growth of 17%[32] - The dynamic reactive power compensation device (SVG) market size was approximately ¥5 billion in 2021, with a growth rate exceeding 15%[33] - The energy storage market in China is projected to maintain a compound annual growth rate of over 72% from 2022 to 2025, with installed capacity reaching 35.5GW to 55.9GW by 2025[35] Business Operations - The company divested 10 subsidiaries and merged 1 subsidiary during the reporting period, which reduced the scope of consolidation[19] - The company focused on expanding its business scope, particularly in new energy and SVG-related products, to establish a second growth curve[55] - The company restructured its business by divesting 11 subsidiaries that were not synergistic, improving cash flow and reducing operational risks[56] - The company operates in various sectors including industrial control automation, energy quality management, and green energy, serving industries such as power, metallurgy, and environmental protection[36] Research and Development - R&D personnel increased by 74.26% in 2021, enhancing the company's innovation capabilities[48] - The company holds 53 trademarks, 193 patents, and 83 software copyrights, showcasing its strong intellectual property portfolio[48] - R&D investment reached CNY 65,041,500, a year-on-year increase of 9.30%, with R&D personnel growing by 74.26% to 176[60] - The company plans to continue investing in R&D to strengthen its technological advantages and enhance core competitiveness in new business areas[60] - The company is actively investing in new technology development, with a budget allocation of 120 million for R&D in the upcoming fiscal year[155] Sales and Revenue - High voltage inverter revenue reached 721.96 million yuan, a year-on-year increase of 32.23%[37] - New orders for high voltage inverters amounted to 659.06 million yuan, up 15.38% year-on-year[37] - Low voltage inverter sales revenue was 257.61 million yuan, reflecting a year-on-year growth of 22.40%[41] - Energy-saving and environmental protection business generated revenue of 105.87 million yuan, an increase of 54.31% year-on-year[46] - The company’s agricultural photovoltaic project produced 74,967.2 MWh of electricity, resulting in revenue of 64.77 million yuan[46] - The company’s revenue from the high-end manufacturing sector was CNY 979,573,260.02, accounting for 81.35% of total revenue, with a slight decrease of 0.87% year-on-year[62] - Revenue from the new energy sector dropped significantly by 59.23% to CNY 53,988,934.81, while the energy-saving and environmental protection sector grew by 25.46% to CNY 170,641,051.90[62] Strategic Initiatives - The company aims to strengthen its position in the domestic and overseas markets through increased R&D investment and marketing efforts[41] - The company is exploring potential mergers and acquisitions to enhance its market position, with a focus on strategic partnerships[105] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for potential deals[165] - The company is focusing on new product development, with an investment of 1,918.4 million in R&D initiatives[104] - The company is launching new products and businesses in 2022 but acknowledges the risk of underperformance due to limited industry experience and competition[122] Governance and Management - The company has established a performance evaluation system for senior management linked to business performance to drive long-term development[135] - The company adheres to strict information disclosure practices to ensure transparency and equal access to information for all shareholders[136] - The company maintains independence from its controlling shareholder, Guangdong Midea Heating and Ventilation Equipment Co., Ltd., ensuring no interference in decision-making or operations[139] - The board of directors held a total of six meetings during the reporting period, ensuring active governance[175] Employee and Compensation - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 4.87 million[172] - The remuneration for the chairman, Fu Yongjun, was reported as zero, indicating no compensation received from the company[172] - The company has implemented a stock incentive plan to align employee interests with company performance[185] - The total number of employees at the end of the reporting period is 1,021, with 972 from major subsidiaries[183] Future Outlook - Future outlook suggests a projected revenue growth of 8.47% for the upcoming fiscal year[104] - The company plans to enter new international markets, with a goal of generating 20% of total revenue from overseas by 2025[154] - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon emissions by 2025[165]

Financial Performance - The company's revenue for Q1 2022 was CNY 318,853,420.34, representing a 13.41% increase compared to CNY 281,154,015.54 in the same period last year[5] - Net profit attributable to shareholders was CNY 9,559,524.23, up 4.87% from CNY 9,115,878.63 year-on-year[5] - Operating profit for Q1 2022 was CNY 12,842,806.53, up from CNY 8,900,708.44 in the same period last year, representing a growth of 44.1%[28] - Net profit for Q1 2022 reached CNY 12,116,620.05, compared to CNY 5,861,328.62 in Q1 2021, marking a significant increase of 106.3%[29] - Total operating revenue for Q1 2022 was CNY 318,853,420.34, an increase of 13.4% compared to CNY 281,154,015.54 in Q1 2021[27] - Basic and diluted earnings per share for Q1 2022 were CNY 0.0087, compared to CNY 0.0082 in Q1 2021, reflecting a 6.1% increase[29] Cash Flow and Liquidity - The net cash flow from operating activities increased significantly by 269.32%, reaching CNY 46,107,816.67, compared to a negative cash flow of CNY -27,231,235.74 in the previous year[5] - The cash received from sales of goods and services was CNY 183,633,805.03, up from CNY 157,916,699.16 in Q1 2021, representing a growth of 16.3%[31] - The net cash flow from investment activities was 5,783,685.78, a significant improvement compared to -123,262,939.38 in the previous period[32] - The total cash inflow from financing activities amounted to 39,151,495.04, while cash outflow was 14,089,348.05, resulting in a net cash flow of -5,492,795.88[32] - The ending balance of cash and cash equivalents reached 330,900,623.00, up from 284,501,916.43 at the beginning of the period[32] - The company experienced a net increase in cash and cash equivalents of 46,398,706.57 during the quarter[32] Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,608,238,905.94, a 4.97% increase from CNY 2,484,768,922.46 at the end of the previous year[5] - The total liabilities increased to CNY 755,705,883.84 from CNY 656,976,561.82, reflecting a rise of 15% year-over-year[25] - The total non-current assets decreased to ¥995,188,435.36 from ¥1,007,748,650.48, a decline of 1.6%[23] - The total current liabilities increased, with accounts payable rising to ¥350,686,740.11 from ¥301,412,504.16, an increase of 16.3%[23] Investments and Expenditures - Research and development expenses rose by 51.70% to CNY 20,885,410.37, indicating increased investment in R&D[9] - The company invested 100,000,000.00 in cash for investment activities during the quarter[32] - The cash outflow for the acquisition of fixed assets and other long-term assets was 18,556,795.08[32] Shareholder Information - Total number of common shareholders at the end of the reporting period is 30,585[12] - Guangdong Midea HVAC Equipment Co., Ltd. holds 18.93% of shares, totaling 208,685,418 shares[12] - The number of restricted shares held by key executives decreased, with a total of 9,213,857 shares remaining after the release of 3,032,607 shares[15] Corporate Governance and Strategy - The company plans to appoint Wu Dehai as a non-independent director, which was approved in the recent board meeting[18] - The company is focusing on expanding its market presence and enhancing its product development strategies[17] Tax and Other Expenses - The company reported a significant reduction in income tax expenses, which decreased by 78.26% to CNY 701,663.51 compared to CNY 3,227,666.04 in the previous year[10] - The company experienced a 37.81% decrease in selling expenses, which amounted to CNY 29,037,301.20, due to last year's special incentive policies[9] Contractual Obligations - The company’s contract liabilities amounted to CNY 141,588,331.43, an increase from CNY 94,607,387.59 in the previous year, indicating growth in customer commitments[24] - Contract assets surged by 251.09% to CNY 43,454,165.45, reflecting an increase in recognized contract assets based on project progress[9] Audit and Reliability - The report for the first quarter was not audited, which may affect the reliability of the financial data presented[34]

Financial Performance - The company's operating revenue for Q3 2021 was ¥307,426,599.49, a decrease of 22.52% compared to the same period last year[5] - Net profit attributable to shareholders was ¥10,352,546.61, representing an increase of 108.00% year-on-year[5] - The net profit after deducting non-recurring gains and losses was ¥8,007,029.60, up 106.96% from the previous year[5] - The basic earnings per share for the period was ¥0.0094, an increase of 108.05% compared to the same period last year[5] - Operating income for the first nine months of 2021 was 124,462,224.59 RMB, a decrease of 36.19% compared to 195,039,486.42 RMB in the same period of 2020[11] - Total operating revenue for Q3 2021 was CNY 923,981,047.19, an increase of 4.1% compared to CNY 887,113,692.13 in the same period last year[31] - Net profit for Q3 2021 was CNY 33,059,823.34, a significant recovery from a net loss of CNY 362,850,366.12 in the previous year[33] - Basic and diluted earnings per share for Q3 2021 were CNY 0.0388, compared to a loss per share of CNY 0.2526 in the same quarter last year[33] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,474,949,080.12, a decrease of 4.81% from the end of the previous year[5] - The company's total assets amounted to approximately CNY 2.47 billion, a decrease from CNY 2.60 billion at the end of 2020[27][28] - The company's cash and cash equivalents decreased to approximately CNY 217.18 million from CNY 225.14 million at the end of 2020[27] - Accounts receivable increased to approximately CNY 658.69 million from CNY 708.28 million at the end of 2020[27] - The company’s total liabilities decreased to CNY 675,176,840.05 from CNY 955,803,515.98, a reduction of 29.4%[32] - The equity attributable to shareholders of the parent company increased to CNY 1,824,520,068.06 from CNY 1,738,777,607.23, reflecting a growth of 4.9%[32] Cash Flow - Cash flow from operating activities for the year-to-date was ¥126,346,404.79, down 26.31% compared to the previous year[5] - Cash flow from operating activities generated a net inflow of CNY 126,346,404.79, down from CNY 171,463,113.12 in the previous year[36] - The company reported a net cash flow from investment activities of 32,833,296.22 RMB, a significant increase of 749.32% from -5,056,564.09 RMB in the previous year[11] - Cash inflow from investment activities totaled CNY 171,174,903.05, significantly higher than CNY 47,432,579.29 in the same period last year[36] - The total cash inflow from financing activities was 74,623,532.15 CNY, while cash outflow was 211,780,091.46 CNY, resulting in a net cash flow of -137,156,559.31 CNY[37] - The cash and cash equivalents at the end of the period amounted to 210,180,391.56 CNY, an increase of 22,023,141.70 CNY compared to the previous period[37] Investment and Shareholder Information - The company reported a significant increase in investment income, which rose by 344.46% to ¥25,757,333.50 due to the disposal of subsidiaries[10] - The company completed the absorption merger of its subsidiary Shenzhen Riye Electric Co., Ltd. by its subsidiary Changsha Riye Electric Co., Ltd., with the shareholding structure of Changsha Riye now being 90% held by Beijing Hekang New Energy Technology Co., Ltd.[18] - The total number of ordinary shareholders at the end of the reporting period was 32,592, with no preferred shareholders[13] - Guangdong Midea HVAC Equipment Co., Ltd. held the largest share at 18.93%, amounting to 208,685,418 shares[13] - The company plans to grant 33 million shares of restricted stock under the 2020 incentive plan, with an initial grant price of CNY 4.15 per share[23] - The first performance target for the 2020 incentive plan requires a year-on-year revenue growth of no less than 15% in 2021 compared to 2020[24] - The company repurchased and canceled 4.51 million shares of restricted stock due to failure to meet performance targets, with a repurchase price of CNY 2.32 per share[21] - The total number of shares after the completion of the repurchase and cancellation was reduced from 1,107,274,357 shares to 1,102,201,357 shares[22] Tax and Financial Expenses - The income tax expense increased by 307.31% to 20,423,141.43 RMB due to a rise in profits during the reporting period[11] - The company experienced a 44.59% decrease in tax refunds received, totaling 7,762,053.76 RMB compared to 14,007,997.63 RMB in the previous year[11] - The company’s financial expenses decreased by 67.07% to ¥4,533,071.73, attributed to the repayment of bank loans[10] Inventory and Operating Costs - The company’s inventory decreased to approximately CNY 312.75 million from CNY 369.97 million at the end of 2020[27] - Total operating costs decreased to CNY 905,164,021.60 from CNY 939,230,745.30, representing a reduction of 3.6%[32] - The company did not absorb any new investments during the reporting period, resulting in a 100% decrease in cash received from investment absorption[11] Other Information - The company did not adjust the initial balance sheet items for the new leasing standards implemented from January 1, 2021[38] - The third quarter report was not audited[40]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥616,554,447.70, representing a 25.75% increase compared to ¥490,317,297.42 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was ¥32,601,257.59, a significant turnaround from a loss of ¥151,534,435.62 in the previous year, marking a 121.51% improvement[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥34,202,799.01, compared to a loss of ¥149,563,396.65 in the same period last year, reflecting a 122.87% increase[20]. - The basic earnings per share for the first half of 2021 was ¥0.03, compared to a loss of ¥0.14 per share in the previous year, indicating a 121.43% improvement[20]. - The company's operating costs amounted to ¥405,804,318.82, which is a 10.20% increase from ¥368,246,242.11 in the previous year[42]. - The company reported a significant reduction in financial expenses, decreasing by 74.80% to ¥2,969,377.05 from ¥11,783,737.62 due to repayment of bank loans[42]. - The total profit for the first half of 2021 was CNY 34,618,057.04, compared to a total loss of CNY 209,817,936.87 in the first half of 2020[151]. - The company's operating profit for the first half of 2021 was CNY 33,905,641.78, a recovery from an operating loss of CNY 208,174,940.64 in the same period of 2020[151]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,552,737,632.66, a decrease of 1.82% from ¥2,599,945,857.59 at the end of the previous year[20]. - The total liabilities decreased to CNY 740,151,405.84 from CNY 955,803,515.98, a reduction of approximately 22.5%[143]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,772,641,109.42, an increase of 1.95% from ¥1,738,777,607.23 at the end of the previous year[20]. - Accounts receivable increased to ¥741,062,957.78, accounting for 29.03% of total assets, up by 1.79 percentage points, primarily due to increased sales volume[50]. - Inventory decreased to ¥317,352,967.05, representing 12.43% of total assets, down by 1.80 percentage points, attributed to improved inventory turnover[50]. - The company’s short-term borrowings were reduced to ¥0.00, down by 2.74 percentage points, due to repayment of bank loans[50]. Cash Flow - The net cash flow from operating activities was ¥68,113,598.37, down 27.99% from ¥94,590,971.98 in the same period last year[20]. - The net cash flow from investment activities increased by 252.32% to ¥38,654,023.59, attributed to an increase in proceeds from equity transfers[42]. - The total cash inflow from investment activities was ¥173,083,210.53, significantly higher than ¥10,832,518.94 in the previous year[158]. - The cash flow from financing activities resulted in a net outflow of -¥112,843,414.14, slightly worse than -¥112,085,852.36 in the same period last year[158]. - The total cash and cash equivalents at the end of the period was ¥182,081,457.68, compared to ¥81,197,064.34 at the end of the first half of 2020[158]. Market and Business Strategy - The company is focusing on the development of high-efficiency energy-saving and advanced environmental protection technologies, utilizing EPC project management and PPP models[32]. - The company aims to increase its market share in the low-voltage inverter sector while enhancing R&D investments and optimizing value chain management[32]. - The company is actively expanding its overseas market presence, particularly in traditional markets like Russia and new collaborations in North America[31]. - The company is transitioning its business model from product-oriented to customer-oriented, providing comprehensive services including technical support and energy-saving calculations[30]. - The company aims to expand its market presence in Central Asia, South Asia, and the Americas, leveraging its energy-saving technology products[36]. Research and Development - The company has a stable and experienced R&D team, with no core technical personnel turnover, indicating strong internal capabilities[35]. - The company has a total of 196 patents and 97 software copyrights, showcasing its commitment to innovation and technology development[35]. - Research and development expenses remained stable at CNY 34,134,092.55, showing a slight increase compared to CNY 34,105,463.05 in the previous year[148]. - The company has initiated research and development for new products aimed at increasing market competitiveness[168]. Shareholder and Equity Information - The total share capital as of the last trading day before the report was 1,102,201,357 shares[20]. - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company repurchased and canceled 708,000 restricted stocks at a price of 2.32 CNY per share due to 20 incentive targets leaving the company[77]. - The total number of shares after the second repurchase was adjusted to 1,102,201,357[79]. - The company completed a significant equity sale, transferring 60% of its stake in a subsidiary, which contributed a net profit of -838.41 million, accounting for 25.62% of the total net profit[62]. Compliance and Governance - The company has not faced any environmental penalties during the reporting period and is not classified as a key pollutant discharge unit[86]. - The company emphasizes its commitment to social responsibility, including compliance with labor laws and employee welfare[88]. - The company has no significant litigation or arbitration matters during the reporting period[99]. - The financial statements are prepared based on the going concern assumption, adhering to the relevant accounting standards[190]. Future Outlook - The company plans to enhance its market expansion strategies and invest in new technologies[165]. - The company aims to improve its financial performance by focusing on cost control and operational efficiency[165]. - The company is exploring potential mergers and acquisitions to strengthen its market position[165]. - The future outlook includes a commitment to innovation and development of new products to meet market demands[165].

Financial Performance - The company achieved operating revenue of CNY 1,256,569,347.18 in 2020, with a net loss attributable to shareholders of CNY -515,020,250.06, primarily due to impairment provisions totaling CNY 548,586,595.51[4] - In 2020, the company's operating revenue was CNY 1,256,569,347.18, a decrease of 3.62% compared to CNY 1,303,728,042.87 in 2019[19] - The net profit attributable to shareholders was a loss of CNY 515,020,250.06, representing a decline of 2,325.51% from a profit of CNY 23,141,705.53 in 2019[19] - The net cash flow from operating activities decreased by 55.39% to CNY 133,797,288.89 from CNY 299,957,673.98 in 2019[19] - The total assets at the end of 2020 were CNY 2,599,945,857.59, down 30.76% from CNY 3,754,925,947.82 at the end of 2019[19] - The company’s total net assets decreased by 22.75% to CNY 1,738,777,607.23 at the end of 2020 from CNY 2,250,800,383.14 at the end of 2019[19] - The weighted average return on equity was -25.82% in 2020, a decrease of 26.86% from 1.04% in 2019[19] - The company reported non-operating income of CNY 41,208,264.80 in 2020, compared to a loss of CNY 1,169,349.45 in 2019[25] - The company reported a gross margin of 40.50% for energy-saving and environmental protection products, down 3.99 percentage points year-over-year[63] - The company reported a significant increase in investment income of CNY 44,677,413.89, accounting for -7.28% of total profit[85] Business Strategy and Operations - The company has divested several underperforming subsidiaries to focus on its core business and improve profitability[4] - The company plans to implement comprehensive IT, digital, and scientific management across its marketing, procurement, and R&D systems[4] - The company is actively expanding its overseas market presence, achieving breakthroughs in customer cooperation in North America while maintaining its leading position in traditional markets like Russia[30] - The company aims to expand its market presence in Central Asia and South Asia, leveraging the "Belt and Road" initiative to promote its energy-saving technologies globally[39] - The company is enhancing its digital management capabilities by adopting Midea Group's digitalization strategy, transitioning from a manufacturing enterprise to a smart service provider[40] - The company is implementing a reliability management system aligned with Midea Group's standards, focusing on all aspects affecting product reliability[41] - The company is committed to enhancing its technological capabilities and product offerings to meet the growing demands of the energy-saving and environmental protection sectors[110] - The company aims to extend its industrial chain by exploring upstream and downstream opportunities while carefully assessing risks[122] Research and Development - The company has a strong focus on R&D, with a stable technical team and significant progress in developing high-performance high-voltage frequency converters, leading in technologies such as vector control and energy feedback[36] - The company invested CNY 100,670,423.81 in R&D in 2020, representing 8.01% of its operating revenue[80] - Research and development expenses rose by 17.75% to ¥92,011,279.70, reflecting ongoing investment in innovation[71] - The number of R&D personnel decreased to 357, but their proportion of total employees increased to 29.17%[80] Market Trends and Growth - The high-voltage inverter industry is stable, while the low-voltage inverter industry is growing rapidly, prompting the company to enhance internal management and increase R&D investment[4] - The low-voltage inverter business experienced rapid growth in 2020, with plans to expand into specialized industry markets and increase R&D investment[31] - The company plans to increase investment in new product development and upgrade existing products to maintain its leading position in the high-voltage inverter market[112] - The low-voltage inverter market is expected to continue growing due to rising automation demands and energy-saving technologies[108] - The Chinese medium and high-voltage inverter market is projected to reach new heights in the next three years, driven by the need for equipment upgrades[105] Subsidiaries and Divestitures - The company disposed of 12 subsidiaries during the reporting period, reducing its consolidation scope[67] - The company transferred its subsidiary Dongling Technology, which focuses on servo motors, to Midea Group, completing the equity transfer process[48] - The company transferred stakes in several subsidiaries, including a 100% stake in Wuhan Changde New Energy Service Co., which had a minor impact on overall operations[104] Shareholder and Governance Matters - No cash dividends, bonus shares, or capital increases from reserves will be distributed to shareholders[6] - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, which do not constitute binding commitments[5] - The company has committed to maintaining fair and lawful transactions with its subsidiaries and affiliates, ensuring no unfair advantages are sought[147] - The company has confirmed that there are no existing competitive businesses between its controlled enterprises and Hekang New Energy, except for low-voltage frequency converters and servo systems[143] - The company has pledged to maintain the independence of Hekang New Energy in terms of assets, personnel, finance, business, and organization[144] Financial Management and Risks - The company has significantly reduced its funding costs and improved financial strength through integration with Midea Group's financial and management systems[42] - The company faces risks related to policy changes that could impact its business, and it plans to expand into overseas markets to mitigate these risks[123] - The company is experiencing competitive pressures in the high and low voltage inverter markets, which may affect its profit margins[124][126] - The company reported a significant increase in accounts receivable, raising concerns about collection risks due to potential adverse changes in customer operations[128] Compliance and Audit - The company has not faced any non-standard audit reports during the reporting period[149] - The company has ensured compliance with all necessary approvals and licenses for its operations[146] - The company has committed to transparency in its financial disclosures and has fulfilled all reporting obligations[146] Employee Incentives and Stock Plans - The company has a first employee stock ownership plan with a total funding cap of ¥24 million, which was approved in 2015 and remains active[164] - The company plans to grant a total of 33 million restricted stocks in the 2020 incentive plan, with 27.9 million for the first grant at a price of 4.15 yuan per share[178] - The performance assessment targets for the first grant of restricted stocks require a net profit growth of no less than 10% in 2018, 20% in 2019, and 35% in 2020 based on the 2017 net profit[169]

Financial Performance - The company's revenue for Q1 2021 was ¥281,154,015.54, representing a 79.36% increase compared to ¥156,753,020.19 in the same period last year[7] - Net profit attributable to shareholders was ¥9,115,878.63, a significant turnaround from a loss of ¥10,838,680.53 in the previous year, marking a 184.11% improvement[7] - The net profit after deducting non-recurring gains and losses was ¥9,949,230.10, compared to a loss of ¥10,127,877.20 last year, reflecting a 198.24% increase[7] - The basic earnings per share increased to ¥0.0082 from a loss of ¥0.0097, showing a 184.54% improvement[7] - The company achieved operating revenue of 281.15 million yuan, a year-on-year increase of 79.36%, and a net profit attributable to shareholders of 9.12 million yuan, up 184.11% compared to the same period last year[19] - The company reported a net profit of ¥5,861,328.62 for Q1 2021, a turnaround from a net loss of ¥14,873,710.07 in the previous year[62] - The company recorded a total profit of ¥9,088,994.66, compared to a total loss of ¥14,975,560.03 in the same quarter last year[62] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥2,542,766,286.26, a decrease of 2.20% from ¥2,599,945,857.59 at the end of the previous year[7] - The net assets attributable to shareholders increased by 0.62% to ¥1,749,535,940.02 from ¥1,738,777,607.23 at the end of the previous year[7] - Total current assets decreased from CNY 1,494,032,917.85 to CNY 1,474,889,930.40, a decline of approximately 1%[52] - Total non-current assets decreased from CNY 1,105,912,939.74 to CNY 1,067,876,355.86, a decline of approximately 3.4%[53] - Total liabilities decreased from CNY 955,803,515.98 to CNY 892,977,096.22, a reduction of about 6.6%[54] - Total equity increased from CNY 1,644,142,341.61 to CNY 1,649,789,190.04, an increase of approximately 0.9%[55] Cash Flow - The company reported a net cash flow from operating activities of -¥27,231,235.74, a significant decline compared to -¥119,756.84 in the previous year, indicating a 22,638.77% decrease[7] - Cash and cash equivalents decreased by 63% to ¥82,519,604.09 due to the purchase of financial products[17] - Operating cash inflow from sales of goods and services was $157.92 million, an increase from $151.18 million in the previous period[68] - Net cash outflow from operating activities was -$27.23 million, compared to -$0.12 million in the previous period[69] - Cash inflow from investment activities totaled $4.62 million, up from $2.06 million in the previous period[69] - Cash outflow for investments was $127.89 million, significantly higher than $8.99 million in the previous period[69] - The ending cash and cash equivalents balance was $62.73 million, down from $104.33 million in the previous period[70] Shareholder Information - The top shareholder, Guangdong Midea Heating and Ventilation Equipment Co., Ltd., holds 18.85% of the shares, totaling 208,685,418 shares[10] - The company had a total of 34,740 common shareholders at the end of the reporting period[10] Operational Highlights - Main business revenue increased by 73% to ¥271,377,678.65 driven by increased sales volume[17] - Main business cost rose by 64% to ¥183,725,561.62, correlating with the increase in sales[17] - The total order amount for the first quarter of 2021 was 319.51 million yuan, representing a 60.07% increase from 199.61 million yuan in the same period last year[19] Research and Development - Research and development expenses were reported at ¥13,768,018.24, a slight increase from ¥13,107,159.05, indicating continued investment in innovation[61] - The company plans to increase R&D investment and attract top technical talent through Midea Group to maintain its technological leadership in the industry[27] Risks and Challenges - The company faces competition risks in the high and low voltage inverter markets, which may impact its profit margins and revenue growth[25][26] - The company faces increasing accounts receivable risks due to the growing balance of accounts receivable as business scales up, which may be affected by customers' financial conditions[28] - The company has undergone management changes following the acquisition by Midea Group, which poses risks due to cultural differences and management capabilities[29] Incentive Plans - The company initiated a restricted stock incentive plan in 2017, granting 25.97 million shares at a price of 2.34 CNY per share, with performance targets set for net profit growth[31] - The first unlock period for the restricted stock is set for 12 months after the grant date, with 40% of shares eligible for release[32] - The company plans to grant 33 million restricted stocks under the 2020 incentive plan, with an initial grant of 27.9 million shares at a price of 4.15 CNY per share[40]

Financial Performance - Operating revenue increased by 60.50% to CNY 396,796,394.71 compared to the same period last year[7]. - Net profit attributable to shareholders was a loss of CNY 129,376,169.70, a decrease of 1,768.44% compared to the same period last year[7]. - Basic earnings per share was -CNY 0.1168, a decrease of 1,846.67% compared to the same period last year[7]. - Net profit attributable to the parent company decreased by 1383.13% to -¥280,910,605.32, indicating a significant decline in overall profitability[22]. - The company reported a net loss of CNY 30,728,665.01 for the period, compared to a profit of CNY 248,314,215.48 in the previous year[47]. - The net loss for the period was CNY 161,950,749.32, compared to a net loss of CNY 18,769,467.72 in the same period last year, indicating a significant increase in losses[54]. - The total comprehensive loss for the period was CNY 161,950,749.32, compared to CNY 18,769,467.72 in the previous year, reflecting a substantial increase in overall losses[55]. - The total comprehensive income attributable to the parent company was CNY -280,910,605.32, compared to CNY 21,892,655.93 in the previous year[63]. Assets and Liabilities - Total assets decreased by 16.85% to CNY 3,122,208,825.21 compared to the end of the previous year[7]. - Total liabilities decreased to CNY 1,182,958,231.08 from CNY 1,429,613,513.87, a decrease of approximately 17.3%[46]. - The company’s total liabilities decreased to CNY 230,213,606.96 from CNY 357,289,296.83, a reduction of approximately 35.6%[53]. - The company’s total equity decreased to CNY 1,939,250,594.13 from CNY 2,325,312,433.95, reflecting a decline of approximately 16.6%[47]. - The company’s total equity attributable to shareholders was CNY 2,250,800,383.14, reflecting stable retained earnings[79]. Cash Flow - Net cash flow from operating activities increased by 5.97% to CNY 76,872,141.14 compared to the same period last year[7]. - Cash received from operating activities decreased by 52.09% to ¥133,078,855.85, reflecting reduced cash inflows[22]. - Cash paid for operating activities decreased by 44.67% to ¥195,039,486.42, indicating lower cash outflows[22]. - Operating cash flow for the period was CNY 38,365,988.05, a decrease of 74.4% compared to CNY 149,926,543.99 in the previous period[72]. - The company’s net cash flow from operating activities was significantly impacted by a decrease in cash received from other operating activities, which fell to CNY 29,278,853.16 from CNY 191,935,133.80[72]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 42,911[11]. - Guangdong Midea HVAC Equipment Co., Ltd. held 18.83% of the shares, making it the largest shareholder[11]. - The total number of restricted stock incentives for executives is 28,869,250 shares, with 6,195,000 shares currently locked and 22,674,250 shares available for future allocation[18]. - The company has a policy that prohibits executives from transferring more than 25% of their total shareholdings within six months after leaving their positions[16]. - The company has implemented a stock incentive plan that allows for the release of 25% of locked shares on the first trading day of each year[16]. Impairments and Provisions - Long-term equity investments were fully impaired, resulting in a 100% decrease to ¥0.00[21]. - Credit impairment losses surged by 1062.33% to -¥226,958,301.40, driven by increased bad debt provisions[22]. - The company anticipates significant impairment of goodwill related to the acquisition of Beijing Huatai Rundar Energy Technology Co., Ltd.[35]. Government Support - The company received government subsidies amounting to CNY 6,295,226.08 during the reporting period[8]. Stock Repurchase - The company repurchased and canceled a total of 9,028,600 restricted shares at a price of 2.32 CNY per share and 752,000 reserved shares at a price of 1.48 CNY per share due to failure to meet performance targets[26]. - After the repurchase, the total number of shares decreased from 1,128,540,857 to 1,124,417,857 shares[26]. - The company repurchased and canceled 459,900 restricted shares at a price of 2.32 CNY per share due to the departure of 13 incentive targets[28]. - Following this repurchase, the total number of shares decreased from 1,114,637,257 to 1,114,177,357 shares[28]. - The total number of shares decreased from 1,114,177,357 to 1,107,982,357 shares after another repurchase[29]. Strategic Changes - The company reported no significant changes in its strategy regarding mergers and acquisitions during the reporting period[12]. - The company plans to transfer 65% and 85% stakes in subsidiaries for 4.55 million CNY and 2.94 million CNY respectively[30]. - The company also plans to transfer a 90% stake in another subsidiary for 28,032,757 CNY[30]. Compliance and Governance - The company emphasizes compliance with its stock transfer policies to ensure stability and governance among its executives[16]. - The company reported no violations regarding external guarantees or non-operating fund occupation during the reporting period[37][38].

Corporate Governance - The controlling shareholder has changed to Midea HVAC, with the actual controller being He Yangjian since May 1, 2020[19]. - The company’s legal representative is Fu Yongjun[14]. - All directors attended the board meeting to review the report[4]. - The financial report is guaranteed to be true, accurate, and complete by the board of directors and senior management[3]. - The company has not disclosed any significant changes in its registered address or contact information during the reporting period[16]. - The company has not made any changes to its information disclosure practices during the reporting period[17]. - The company has not undergone any bankruptcy restructuring during the reporting period[96]. - The company has made commitments to avoid related party transactions that could harm the interests of the company and its shareholders[93]. - The company has fulfilled its commitments regarding competition and related transactions as per the acquisition report[92]. - The company reported no significant litigation or arbitration matters during the reporting period, with other litigation amounts totaling 10.87 million RMB[97]. - There were no penalties or rectification measures during the reporting period[99]. - The company has not faced any media scrutiny during the reporting period[98]. - The company did not engage in any repurchase transactions during the reporting period[150]. - There were no significant related party transactions during the reporting period[110]. Financial Performance - The company's operating revenue for the reporting period was ¥490,317,297.42, a decrease of 4.13% compared to ¥511,457,997.53 in the same period last year[20]. - The net profit attributable to shareholders was -¥151,534,435.62, representing a decline of 625.85% from ¥28,816,937.28 in the previous year[20]. - The net cash flow from operating activities was ¥94,590,971.98, down 4.58% from ¥99,134,855.44 year-on-year[20]. - The total assets at the end of the reporting period were ¥3,402,281,539.96, a decrease of 9.39% from ¥3,754,925,947.82 at the end of the previous year[20]. - The company reported a significant drop in other receivables from CNY 124,893,427.66 to CNY 183,626,790.74, a decrease of about 32.00%[158]. - The company reported a significant increase in credit impairment losses, amounting to CNY -124.11 million, compared to a gain of CNY 4.99 million in the previous year[168]. - The company reported a net loss for the first half of 2020 of CNY 200.90 million, compared to a net profit of CNY 25.85 million in the first half of 2019[168]. - The company reported a decrease in retained earnings by 13,898,000, indicating challenges in profit retention[188]. - The total equity attributable to shareholders decreased to CNY 2,100,735,117.86 from CNY 2,250,800,383.14, a drop of about 6.67%[161]. - The company reported a gross margin of 12.48% in the power sector, down 22.90% from the previous year[58]. Market and Business Operations - The company maintained a leading market share in the high-voltage inverter industry despite the impact of the pandemic, with a focus on both domestic and international market expansion[30][31]. - The high-voltage inverter market in China continues to show stable growth, driven by production processes and energy-saving renovations[30]. - The company has diversified its business into three main sectors: high-end manufacturing, new energy, and energy conservation and environmental protection[28]. - The company focuses on the new energy vehicle (NEV) ecosystem, leveraging its core products and platforms like smart charging networks and rental services to enhance the value of single vehicle systems[36]. - The company has developed key components for NEVs, including bi-directional inverter motor controllers and various electric systems, covering mainstream NEV technologies such as pure electric and hybrid systems[37]. - The company’s subsidiary, Huatai Rundai, focuses on energy conservation and environmental technology, providing comprehensive solutions in various sectors[34]. - The company’s photovoltaic power generation project in Hebei Province has successfully connected to the grid, contributing to stable revenue generation[35]. - The company has a backlog of confirmed revenue orders amounting to CNY 1,173.86 million from ongoing projects[61]. - The company is focusing on expanding its energy-saving and environmental protection services, with significant orders in the pipeline[61]. Research and Development - The company has a strong technological advantage, being a key participant in the national standards for high-voltage inverters, and has consistently invested in R&D to maintain its competitive edge[41]. - The company aims to enhance its R&D capabilities and optimize product designs to improve market competitiveness[79]. - The company plans to increase R&D efforts to maintain its leading position in vehicle controllers and AMT powertrain products, optimizing personnel allocation in the charging pile sector and increasing market investment[81]. - Research and development expenses were CNY 34.11 million, slightly up from CNY 32.43 million in the first half of 2019[166]. - The company holds a total of 345 patents as of the end of the reporting period, indicating a focus on innovation and R&D[51]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 49,031[138]. - Guangdong Midea Heating and Ventilation Equipment Co., Ltd. holds 18.73% of shares, totaling 208,685,418 shares[138]. - The total number of restricted shares at the end of the period is 28,869,250 shares, with 4,228,075 shares released during the reporting period[136]. - The company completed its first employee stock ownership plan with a total investment cap of 24 million RMB, purchasing 541,600 shares, accounting for 0.1376% of the total share capital[101]. - The company granted 24.34 million restricted shares to 308 incentive recipients, with a total funding received of 56.95 million yuan[104]. Risks and Challenges - The company faces competition risks in the high and low voltage inverter markets, which may impact profit margins[79]. - The company faces risks from technological upgrades, with a technology update cycle of 5-8 years for core products, and must continuously innovate to maintain competitive advantages[82]. - The company has seen an increase in accounts receivable as business scales up, which poses a risk if customer conditions worsen; measures are being taken to enhance collection efforts[86]. - The company experienced a decline in main business revenue compared to the previous year due to delays in resuming operations caused by the COVID-19 pandemic, particularly affecting its subsidiary in Wuhan[86]. - The company acknowledges the potential impact of changing industry policies and competition on its revenue growth and market share[80]. Financial Position - Cash and cash equivalents increased to 119,252,820.2, up from 111,405,347.15, with a proportion increase of 0.77%[65]. - The company’s total equity attributable to shareholders at the end of the reporting period was CNY 2,325,312,43[181]. - The total owner's equity at the end of the current period is 2,262,000,000, down from the previous period[186]. - The company reported a decrease in comprehensive income of CNY 13,900,600 for the current period[192]. - The total capital reserve at the end of the reporting period is CNY 1,114,637,257[193]. Future Outlook - The company plans to expand its overseas market share to mitigate risks from policy changes affecting its main businesses[78]. - The company aims to strengthen cooperation with local resources and explore new collaboration models to expand its customer base and market share in the electric vehicle charging facilities market[81]. - The company has not disclosed any new strategic initiatives in the current reporting period[194]. - The company did not provide specific future performance guidance in the report[143].

Financial Performance - The company reported a revenue of RMB 1.2 billion for the year 2019, representing a year-on-year increase of 15% compared to 2018[13]. - The net profit attributable to shareholders was RMB 150 million, which is a 10% increase from the previous year[13]. - The company's operating revenue for 2019 was CNY 1,303,728,042.87, an increase of 8.08% compared to CNY 1,206,297,161.93 in 2018[18]. - The net profit attributable to shareholders in 2019 was CNY 23,141,705.53, a significant turnaround from a loss of CNY 237,096,925.30 in 2018, representing a 109.76% increase[18]. - The net cash flow from operating activities reached CNY 299,957,673.98, marking a 153.85% increase from CNY 118,162,716.02 in 2018[18]. - The company reported a significant increase of 124.65% in raw material costs for energy-saving and environmental protection products[71]. - The company reported a significant increase in sales volume for high-voltage frequency converters in the mining sector, with a 23.48% increase to 142 units sold[64]. - The company reported a revenue of 223,080,129 and a net profit of 108,537,210 for the year, indicating a strong performance in its core business segments[106]. Market Expansion and Strategy - The company plans to invest in new product development, focusing on high-efficiency energy-saving technologies and expanding its product line[13]. - The company is committed to expanding its market reach, particularly in the renewable energy sector, to capitalize on emerging opportunities[13]. - The company has outlined a future outlook aiming for a revenue growth target of 20% for 2020[13]. - The company plans to leverage the "Belt and Road" initiative to expand its green technology services into Central Asia and South Asia markets[46]. - The company aims to enhance its servo system development and market share in the industrial automation sector, focusing on replacing imported products[52]. - The company is focusing on internal resource integration to reduce costs and improve overall gross margins amid a challenging external economic environment[51]. - The company is exploring market expansion opportunities in the new energy sector, particularly in electric vehicle components[102]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[163]. Product Development and Innovation - The company is actively developing a multi-layered energy-saving and environmental protection business platform, enhancing its product structure and application fields[29]. - The company has developed fuel cell systems, including DCDC and fuel cell controllers, leveraging its extensive experience in the new energy sector[41]. - The company has introduced two new products in the last quarter, which are anticipated to contribute an additional 200 million RMB in revenue[161]. - The company plans to increase investment in new product R&D, focusing on low-voltage and explosion-proof inverters, aiming to establish competitive advantages through innovation[128]. - The company has developed two new products in the fuel cell system direction: fuel cell DCDC and stack controller, leveraging over ten years of experience in the energy-saving and new energy vehicle sectors[123]. Subsidiaries and Acquisitions - The company has established several new subsidiaries, including Wuhan Changkang Charging Technology Co., which is expected to have a minor impact on overall operations[107]. - The company has transferred 70% of its stake in Wuhan Hekang New Energy Motor Co., with minimal impact on overall performance[107]. - The company is considering strategic acquisitions to enhance its technology portfolio, with potential targets identified in the renewable energy sector[156]. - The overall performance of subsidiaries indicates a mixed financial outcome, with some reporting profits while others are in losses[100][101]. Risks and Challenges - The company has identified risks related to market competition and regulatory changes, which are detailed in the report[4]. - The company faces policy risks that could impact its three main businesses, but plans to mitigate these by expanding overseas market share[130]. - The company is experiencing competitive risks in the high and low-voltage inverter markets, which could affect profit margins and revenue growth[131]. - The company faces risks in its new energy vehicle business due to potential adverse changes in industrial policies affecting downstream electric vehicle demand, which could lead to a decline in revenue growth or profit margins[133]. Financial Management and Governance - The company emphasizes the importance of maintaining transparency and accuracy in financial reporting, as stated by its management[3]. - The company has committed to transparency in its financial reporting, ensuring compliance with all regulatory requirements and maintaining investor trust[160]. - The company has adhered to commitments regarding related party transactions and competition during the reporting period[149]. - The company has ensured compliance with laws and regulations regarding fundraising and investment activities[166]. Employee and Talent Management - The company has focused on talent cultivation and incentive mechanisms to enhance employee engagement and overall team quality[57]. - As of December 31, 2019, the company had a total of 1,742 employees, with 424 in R&D, accounting for 24.34% of the workforce[86]. - The company has implemented an employee stock ownership plan with a total funding limit of 24 million RMB, involving up to 100 employees[178]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[161]. - Future outlook includes potential technological advancements and product development in the renewable energy space[102]. - The company anticipates a stable policy environment for new energy vehicles in 2020, which will support healthy industry development[116].