Financial Performance - The company's operating revenue for Q1 2022 was ¥745,705,263.26, representing a 20.49% increase compared to ¥618,896,540.99 in the same period last year[3] - Net profit attributable to shareholders was ¥57,758,545.37, a significant increase of 130.34% from ¥25,075,558.18 year-on-year[3] - Basic earnings per share rose to ¥0.0401, reflecting a 103.55% increase compared to ¥0.0197 in the same period last year[3] - Operating profit for the current period was ¥63,009,284.94, significantly higher than ¥26,010,094.73 from the previous period, indicating a growth of 142.5%[33] - Net profit for the current period was ¥57,222,982.94, compared to ¥25,071,737.27 in the previous period, representing a growth of 128.2%[33] - The total comprehensive income for the period was 57,222,982.94, compared to 25,071,737.27 in the previous period, indicating a significant increase[37] Cash Flow - The net cash flow from operating activities improved to ¥34,276,160.06, a 127.33% increase from a negative cash flow of ¥125,427,691.69 in the previous year[3] - Cash inflow from operating activities totaled 828,780,536.98, compared to 327,706,150.32 in the previous period, showing strong revenue growth[41] - Cash outflow from operating activities was 794,504,376.92, up from 453,133,842.01 in the previous period, indicating increased operational expenses[41] - Cash flow from investing activities generated a net amount of 57,717,138.67, down from 102,320,495.09 in the previous period, suggesting reduced investment activity[41] - Cash flow from financing activities resulted in a net inflow of 53,511,941.86, compared to 31,624,679.42 in the previous period, indicating increased financing efforts[44] - The ending cash and cash equivalents balance was 480,580,336.12, significantly higher than 210,487,311.77 at the end of the previous period, reflecting improved liquidity[44] Assets and Liabilities - Total assets at the end of the reporting period were ¥5,784,711,925.99, an 8.44% increase from ¥5,334,420,045.97 at the end of the previous year[3] - The total current assets increased to CNY 4,580,994,420.76 from CNY 4,134,222,061.55, reflecting a growth of approximately 10.8%[22] - Total liabilities decreased to CNY 2,000,000,000 from CNY 2,200,000,000, showing a reduction of 9.1%[22] - Total liabilities rose to ¥2,919,263,190.13 from ¥2,526,258,516.70, an increase of 15.5%[29] - The total equity attributable to shareholders increased by 2.07% to ¥2,856,912,164.61 from ¥2,799,089,395.59 at the end of the previous year[3] - The company reported a total equity of CNY 2,580,994,420.76, which is an increase from CNY 2,134,222,061.55, reflecting a growth of approximately 21%[22] Research and Development - The company's R&D expenses increased by 35.71% to ¥31,569,947.97, up from ¥23,262,748.21 in the previous year, indicating a focus on innovation[6] - The company has maintained a strong focus on research and development to innovate new technologies and products[20] - Research and development expenses increased to ¥31,569,947.97 from ¥23,262,748.21, marking a rise of 35.8%[33] Market Strategy - The company plans to enhance its market expansion strategies and invest in new product development in the upcoming quarters[20] Shareholder Information - The company’s major shareholders include China Agricultural Bank and other investment funds, with significant stakes in the company[15] - The company has a total of 591,181,079 restricted shares, with no new restricted shares added during the reporting period[18] Sales Performance - Cash received from sales and services reached ¥799,578,433.96, a 147.16% increase from ¥323,507,383.31 in the previous year[10] - The company received 799,578,433.96 in cash from sales of goods and services, a substantial increase from 323,507,383.31 in the previous period, highlighting strong sales performance[38]

Financial Performance - The company reported a total revenue of 1,441,216,681 RMB for the year 2021, with a cash dividend of 0.20 RMB per 10 shares to all shareholders[6]. - The company's operating revenue for 2021 was ¥2,787,289,591.90, representing a 16.28% increase compared to ¥2,397,146,557.52 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥173,753,529.61, a significant increase of 187.53% from ¥60,429,291.51 in 2020[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥103,355,090.60, up 40.55% from ¥73,534,531.87 in 2020[28]. - The company's total assets at the end of 2021 were ¥5,334,420,045.97, a 40.87% increase from ¥3,786,788,340.38 at the end of 2020[28]. - The net assets attributable to shareholders at the end of 2021 were ¥2,799,089,395.59, reflecting a 37.22% increase from ¥2,039,859,005.21 at the end of 2020[28]. - The basic earnings per share for 2021 was ¥0.13, a 160.00% increase from ¥0.05 in 2020[28]. - The weighted average return on net assets for 2021 was 7.83%, up from 3.12% in 2020, indicating improved profitability[28]. - The company achieved a consolidated revenue of 278.73 million yuan, representing a year-on-year growth of 16.28%[64]. - The net profit attributable to the parent company reached 173.75 million yuan, with a significant year-on-year increase of 187.53%[64]. Market Position and Strategy - The company plans to expand its market presence and enhance product offerings, focusing on new technologies in electric heating solutions[6]. - The company has established itself as a leading manufacturer of auxiliary electric heaters for air conditioning, with a strong market share in the household appliance sector[41]. - The company is positioned in the high-demand polysilicon production sector, benefiting from favorable national policies and high market prices for polysilicon[44]. - The company is one of the few domestic producers of polysilicon reduction furnaces and electric heaters for cold hydrogenation, holding a leading market share in the industry[45]. - The company is positioned to benefit from government policies promoting green consumption and the recovery of the real estate market, which is expected to boost demand for home appliances[52]. - The company is a leading player in the optical communication materials sector, with a strong competitive position and established relationships with major fiber optic companies[48]. Research and Development - The company is actively pursuing research and development initiatives to innovate its product line and improve efficiency in production processes[6]. - The company holds a total of 25 authorized invention patents and 162 utility model and design patents, indicating strong R&D capabilities[70]. - The company invested ¥11,053.35 million in R&D, marking a 30.46% increase year-on-year, and obtained 59 patent authorizations, a 73.53% increase[84]. - The company is focusing on developing new technologies and products, particularly in the PTC electric heater market, to maintain competitive advantages[77]. - The company is developing a waterproof electric heater for buses, which is expected to enhance product variety and meet market demand[120]. - The company is also focusing on the development of a temperature-resistant electric heating belt, which combines inorganic and organic material properties for enhanced performance[129]. - The company has successfully developed a high-efficiency heat exchanger with a small temperature difference and a high overall heat transfer coefficient, significantly improving operational load capacity[132]. Operational Efficiency and Management - The company emphasizes the importance of risk management in its future development outlook, addressing potential operational challenges[6]. - The company has maintained a consistent operational performance, with no significant changes in its registered address or corporate structure during the reporting period[22]. - The company has established a robust communication channel with investors, providing transparency in its financial reporting and strategic direction[23]. - The company adopted a lean management approach to reduce costs and improve efficiency, focusing on material price fluctuations and inventory management[88]. - The introduction of the VMI procurement supply model and the optimization of the SRM supplier relationship management platform significantly enhanced procurement efficiency[89]. - The company has strengthened partnerships with leading clients in various sectors, ensuring stable demand for its products[74]. Challenges and Risks - The company faces risks from external factors such as the ongoing COVID-19 pandemic, which has affected logistics and supply chains, although it has not significantly impacted production yet[194]. - The company is experiencing rising raw material costs, with direct materials accounting for over 60% of total costs, which may pressure profit margins if prices continue to rise[195]. - The company plans to mitigate customer dependency risks by developing new products, customers, and markets, while shortening product development cycles[199]. - The company is expanding its business scale, which brings management challenges and requires enhanced internal controls and risk management practices[200]. Future Outlook - The company aims to achieve revenue exceeding 5 billion yuan by 2025 as part of its "14th Five-Year" development plan[188]. - The company plans to enhance cost control and increase market share in the electric heating sector by optimizing production lines[188]. - The company will accelerate the technological upgrade of existing products, focusing on the new energy vehicle and equipment industry chain[188]. - The company intends to utilize capital market functions to enhance development momentum and complete automation upgrades of production lines[188].

镇江东方电热科技股份有限公司 2021 年第三季度报告 1 证券代码：300217 证券简称：东方电热 公告编号：2021-083 镇江东方电热科技股份有限公司 2021 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 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 | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-------|----------------|-------------------------|--------------- ...

镇江东方电热科技股份有限公司 2021 年第三季度报告 1 镇江东方电热科技股份有限公司 2021 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 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 | --- | --- | --- | --- | --- | |------------------------------------------------------|------------------|-------------------------|--------------------------|---------------------------- ...

Financial Performance - The company's operating revenue for the reporting period was ¥1,347,477,329.87, representing a 20.69% increase compared to ¥1,116,438,050.30 in the same period last year[34]. - Net profit attributable to shareholders was ¥45,772,948.70, up 78.20% from ¥25,686,934.75 year-on-year[34]. - The net profit after deducting non-recurring gains and losses was ¥55,049,453.67, a significant increase of 262.67% from ¥15,179,120.55 in the previous year[34]. - The company's total assets at the end of the reporting period were ¥4,303,417,322.22, reflecting a 13.64% increase from ¥3,786,788,340.38 at the end of the previous year[34]. - The basic earnings per share increased to ¥0.0359, a rise of 77.72% compared to ¥0.0202 in the same period last year[34]. - The company's net cash flow from operating activities was negative at -¥24,093,239.04, a decline of 124.21% compared to ¥99,536,748.58 in the previous year[34]. - The weighted average return on net assets was 2.22%, an increase of 0.87% from 1.35% in the previous year[34]. - The company reported a total of -¥9,276,504.97 in non-recurring losses, primarily due to litigation losses and other factors[41]. Business Strategy and Operations - The company plans to enhance the development and application of new products and technologies to mitigate the risk of declining gross margins caused by high raw material costs[7]. - The company has a high customer concentration risk, particularly in the home appliance and lithium battery manufacturing sectors, and aims to diversify its customer base by developing new products and markets[11]. - The company has expanded its business scope and increased the number of subsidiaries, which has raised management efficiency requirements and led to talent shortages[12]. - The company emphasizes the importance of maintaining relationships with high-quality customers and optimizing its customer base[7]. - The company is committed to enhancing automation and cost management to improve operational efficiency[7]. - The company is actively recruiting professional talent to meet operational needs and improve management levels[12]. - The company is facing risks from rising raw material prices, which could lead to a decline in gross margins, and is responding by accelerating new product development and enhancing cost management[103]. - There is a risk of dependency on major customers in key industries, prompting the company to diversify its product offerings and customer base[104]. - The company is expanding its operations and increasing its workforce to manage growth, while also facing challenges in talent acquisition[104]. Investments and Acquisitions - The company invested CNY 36,360,000.00 in acquiring part of the assets of Qiansheng Electric Group Co., Ltd., with a project progress of 60%[80]. - The company has completed the acquisition of 51% equity in Zhenjiang Dongfang Shanyuan Electric Co., making it a wholly-owned subsidiary as of February 20, 2021[176]. - The company has completed the acquisition of 49% of Jiangsu Jiutian's shares for a total payment of 80 million yuan, with 60% of the payment already made[136]. - The company plans to acquire assets from Qiansheng Electric Group for 60,600,000 CNY, including land and factory buildings, with the transfer of property rights completed on July 5, 2021[179]. Subsidiaries and Contributions - The subsidiary Jiangsu Dongfang Ruiji Energy Equipment Co., Ltd. contributed a net profit of 7,067,198.50 CNY, accounting for over 10% of the company's net profit[99]. - The subsidiary Zhenjiang Dongfang Shanyuan Electric Heating Co., Ltd. generated a net profit of 4,297,850.00 CNY during the reporting period[99]. - The wholly-owned subsidiary Dongfang Ruiji achieved a net profit of CNY 7.0672 million, marking a turnaround from losses, primarily due to significant revenue growth in the polysilicon industry[102]. - Jiangsu Jiutian achieved a net profit of CNY 14.5223 million, benefiting from a recovery in the optical communication market and improved gross margins due to better cost management[102]. Financial Management and Risks - The company will not distribute cash dividends or issue bonus shares, focusing instead on reinvestment for growth[12]. - The company aims to strengthen customer credit grading and accounts receivable management to reduce bad debt risks associated with accounts receivable[12]. - The company has integrated 东方山源 as a wholly-owned subsidiary, which may create goodwill that could be impaired if future earnings do not meet expectations[12]. - The company has established long-term cooperative relationships with major suppliers, ensuring a stable supply chain for raw materials[51]. - The company is actively enhancing its intellectual property protection to mitigate potential legal disputes related to patent infringements[59]. - The company is involved in a lawsuit regarding a patent infringement case with a claim amount of 10,200,000 yuan, which has resulted in a provision for expected liabilities of 5,728,160 yuan[136]. Environmental Compliance - The company reported a total COD discharge of 2.6099 tons, with a maximum allowable discharge of 11.592 tons, indicating compliance with environmental standards[118]. - The company has a total of 7 wastewater discharge points, with organized emissions and compliance with wastewater discharge standards[118]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[123]. - The company has filed an emergency response plan for environmental incidents, which has been recorded with the relevant authorities[119]. - The company has established a self-monitoring plan in accordance with its pollution discharge permit requirements[122]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 60,257[190]. - The largest shareholder, Tan Rongsheng, holds 14.68% of the shares, totaling 186,895,486 shares, with 140,171,614 shares under lock-up[190]. - The top three shareholders (Tan Rongsheng, Tan Wei, and Tan Ke) are related and act in concert, collectively controlling the company[193]. - The total number of locked-up shares at the end of the period is 376,734,232 shares, with 17,601,227 shares released during the period[189]. - The company has not disclosed any differences in voting rights arrangements[200].

Financial Performance - The company's operating revenue for 2020 was ¥2,397,146,557.52, an increase of 7.30% compared to ¥2,234,087,034.02 in 2019[32]. - The net profit attributable to shareholders for 2020 was ¥60,429,291.51, recovering from a loss of ¥97,771,757.07 in 2019[32]. - The net cash flow from operating activities decreased by 56.81% to ¥27,896,912.31 in 2020 from ¥64,594,361.29 in 2019[32]. - The total assets at the end of 2020 were ¥3,786,788,340.38, reflecting a growth of 6.05% from ¥3,570,832,513.53 at the end of 2019[32]. - The company's net assets attributable to shareholders increased by 8.28% to ¥2,039,859,005.21 at the end of 2020 from ¥1,883,891,829.29 at the end of 2019[32]. - The basic earnings per share for 2020 was ¥0.0500, compared to a loss of ¥0.080 in 2019[32]. - The company reported a total of ¥10,828,261.46 in gains from fair value changes of financial assets in 2020, up from ¥7,136,743.84 in 2019[37]. - The company achieved a total operating revenue of 239,714.66 million CNY, representing a year-on-year growth of 7.30%[51]. - The net profit attributable to the parent company was 6,042.93 million CNY, marking a turnaround from losses in the previous year[51]. Cost Management and Production - The company reported a significant increase in production costs due to rising prices of raw materials such as aluminum, copper, and steel, which began in the second half of 2020[7]. - The company aims to improve cost management and promote automation to achieve cost reduction and efficiency enhancement[7]. - The cost of raw materials in the civil electric heater segment was ¥1,030,816,267.23, accounting for 87.11% of the operating costs[124]. - The cost of raw materials in the industrial equipment manufacturing segment was ¥204,482,536.32, representing 84.72% of the operating costs[124]. - The cost of raw materials in the optical communication industry was ¥429,883,706.17, which is 89.23% of the operating costs[124]. Customer and Market Dynamics - The company has a high customer concentration risk, particularly in the air conditioning, polysilicon manufacturing, optical cable manufacturing, and lithium battery industries[8]. - To reduce customer dependency, the company aims to develop new products, attract new customers, and explore new markets while shortening product development cycles[11]. - The company is actively expanding its customer base, particularly in the new energy vehicle sector, and has added four new supplier qualifications in rail transportation[79]. - The company has expanded its market share in the air conditioning electric heater segment, benefiting from cost advantages and increased demand[73]. - The company has adjusted its market focus to emphasize optical communication materials and new energy materials, discontinuing unprofitable products[75]. Research and Development - The company invested 84.7253 million yuan in R&D in 2020, accounting for 3.53% of total revenue, with a year-on-year increase of 3.48%[63]. - The company holds a total of 134 patents, including 21 invention patents and 110 utility model patents[63]. - The company is focusing on the development of high-performance electric heaters for high-humidity environments, aiming for domestic mass production[131]. - A new phase change heat storage heater is being developed to provide low-cost and efficient heating solutions, with ongoing patent applications and market promotion efforts[131]. - The company has successfully developed a low-cost heating solution for electric vehicles, addressing winter heating challenges without significantly increasing vehicle costs[131]. Talent and Management - The company faces a talent shortage risk due to its expanding operations and increasing demand for professional talent[12]. - The company will strengthen talent recruitment and internal training to meet operational needs and improve management efficiency[12]. - The company implemented a new management structure in 2020, enhancing management efficiency and reducing management costs[86]. - The introduction of the "Amoeba Management" model is intended to boost employee engagement and operational efficiency[176]. Asset Management and Impairment Risks - The acquisition of Dongfang Shanyuan as a wholly-owned subsidiary in February 2021 introduces goodwill, which may face impairment risks if future earnings do not meet expectations[13]. - The company plans to closely monitor the operational performance of acquired companies and enhance management to mitigate asset impairment risks[14]. - Asset impairment losses reached ¥38,426,526.19, representing -58.17% of total profit[145]. Environmental and Social Responsibility - The company optimized hazardous waste management and signed agreements with clients to avoid harmful substances, maintaining compliance with environmental standards[98]. - The company expects to generate 4.5 million kWh of solar power annually starting in 2021, reducing coal consumption by 1,382 tons and CO2 emissions by 3,731 tons[98]. - The company was recognized as a "Harmonious Labor Relations Enterprise" in Jiangsu Province, and its general manager was awarded the title of "Labor Model" in Zhenjiang City[96]. Dividend and Shareholder Returns - The profit distribution plan approved by the board includes a cash dividend of 0.15 RMB per 10 shares (tax included) based on the total share capital at the end of 2020[14]. - In 2020, the cash dividend amount was ¥19,102,405.59, representing 31.61% of the net profit attributable to ordinary shareholders[185]. - The company has committed to maintaining its dividend capability and will not modify the dividend clauses in its articles of association during the tenure of its actual controllers[192].

Financial Performance - The company's revenue for Q1 2021 was ¥618,896,540.99, representing a 28.05% increase compared to ¥483,330,203.08 in the same period last year[8]. - Net profit attributable to shareholders was ¥25,075,558.18, a significant recovery from a loss of ¥1,664,620.74 in the previous year[8]. - Basic and diluted earnings per share were both ¥0.0197, recovering from a loss of ¥0.0013 per share in the previous year[8]. - The company achieved total operating revenue of 618.90 million yuan, a year-on-year increase of 28.05%[24]. - Net profit attributable to shareholders was 25.08 million yuan, marking a turnaround from loss to profit[24]. - The total comprehensive income for the period was ¥25,071,737.27, recovering from a loss of ¥3,923,276.33 in the same quarter last year[78]. - Net profit for the current period was ¥21,917,661.41, representing a 52.5% increase from ¥14,390,713.62 in the previous period[82]. Cash Flow and Assets - The net cash flow from operating activities was negative at ¥-125,427,691.69, a decline of 321.82% compared to ¥56,543,678.02 in the same period last year[8]. - Cash and cash equivalents at the end of the period totaled ¥210,487,311.77, an increase from ¥153,897,966.81 at the end of the previous period[92]. - The total cash and cash equivalents at the end of the period decreased to 37,254,376.23 CNY from 85,579,593.23 CNY, highlighting liquidity challenges[96]. - The net cash flow from operating activities was -81,338,793.45 CNY, a significant decrease compared to 68,821,636.84 CNY in the previous period, indicating a decline in operational performance[93]. Investments and R&D - R&D expenses increased by 65.21% to 23.26 million yuan, reflecting higher investment in research and development[20]. - Research and development expenses rose to ¥23,262,748.21, up from ¥14,080,702.81, marking an increase of 65.3% year-over-year[74]. - The company is focusing on the development of new products, including a compact and efficient single-ended electric heater and a new type of BN electric heating tube[10][11]. Shareholder Information - The top three shareholders, Tan Rongsheng, Tan Wei, and Tan Ke, collectively hold 39% of the company's shares, with Tan Rongsheng holding 14.68%[13]. - The company reported a cash outflow of 635,275.01 CNY for dividend payments, which increased from 488,985.33 CNY, suggesting a commitment to shareholder returns despite cash flow challenges[96]. Contracts and Market Expansion - New orders for industrial equipment reached 412 million yuan, driven by increased investments from leading polysilicon companies[25]. - The company is actively pursuing market expansion through the development of innovative heating technologies and strategic partnerships in the new energy sector[33]. - The company completed the acquisition of 51% of Zhenjiang Dongfang Shanyuan Electric Heating Co., making it a wholly-owned subsidiary[40]. Risks and Challenges - The company is facing risks related to declining gross margins due to rising raw material prices, with a focus on accelerating new product development and optimizing customer management to mitigate this risk[41]. - The company is addressing the risk of customer dependency by expanding into new products and markets, aiming to diversify its customer base[41]. - The company is monitoring the operational performance of acquired companies to manage goodwill impairment risks effectively[42].

Financial Performance - In 2020, the company's operating revenue was CNY 2,397,146,557.52, representing a 7.30% increase compared to CNY 2,234,087,034.02 in 2019[32]. - The net profit attributable to shareholders was CNY 60,429,291.51, a significant recovery from a loss of CNY 97,771,757.07 in 2019[32]. - The total assets at the end of 2020 were CNY 3,786,788,340.38, an increase of 6.05% from CNY 3,570,832,513.53 at the end of 2019[32]. - The company reported a basic earnings per share of CNY 0.0500, compared to a loss of CNY 0.080 in 2019[32]. - The company achieved a total operating revenue of 239,714.66 million yuan, representing a year-on-year growth of 7.30%[51]. - The net profit attributable to the parent company was 6,042.93 million yuan, marking a turnaround from losses in the previous year[51]. - The company reported a total revenue of 239,714.66 million yuan, representing a year-on-year growth of 7.30%[72]. - The net profit attributable to the parent company was 6,042.93 million yuan, with a net profit excluding non-recurring gains and losses of 7,353.45 million yuan, marking a successful turnaround from losses[72]. Cost Management - The company reported a significant increase in production costs due to rising prices of raw materials such as aluminum, copper, and steel, which began in the second half of 2020[7]. - The company aims to strengthen cost management and promote automation to achieve cost reduction and efficiency improvement[7]. - The cost of raw materials in the civil electric heater segment was ¥1,030,816,267.23, making up 87.11% of the operating costs[123]. - The labor costs in the industrial equipment manufacturing segment increased by 8.40% to ¥16,768,354.20, representing 6.95% of the operating costs[123]. - Sales expenses decreased significantly by 58.31% to ¥34,505,073.42, primarily due to reduced transportation costs[129]. - Research and development expenses increased by 3.48% to ¥84,725,832.99, reflecting ongoing investment in innovation[129]. Market Strategy - The company plans to accelerate the development and application of new products and technologies to mitigate the risk of declining gross margins[7]. - To reduce customer dependency, the company aims to expand its product offerings and enter new markets[11]. - The company plans to continue expanding its market presence and product offerings in the electric heating sector[41]. - The company has adjusted its market focus to emphasize optical communication materials and new energy materials, discontinuing unprofitable products[75]. - The company plans to enhance its market development efforts by leveraging brand advantages and focusing on both existing and new customer acquisition strategies[173]. Talent Management - The company faces a talent shortage risk due to its expanding operations and increasing demand for professional talent[12]. - The company will enhance talent recruitment and internal training to address management and talent risks[12]. Acquisitions and Investments - The acquisition of Dongfang Shanyuan in February 2021 may lead to goodwill impairment if the subsidiary's performance does not meet expectations[13]. - The company plans to closely monitor the acquired company's operations and improve management to ensure stable development[14]. - The company plans to raise up to 60,883.44 million yuan through a private placement to fund new projects and acquisitions[75]. Research and Development - The company invested 84.7253 million yuan in R&D in 2020, accounting for 3.53% of total revenue, with a year-on-year increase of 3.48%[63]. - The company holds a total of 134 patents, including 21 invention patents, reflecting its strong R&D capabilities[63]. - The company completed the development and mass production of several new products, including ultra-thin steel-plastic composite strips and pre-plated nickel stainless steel for air conditioning electric heating pipes[139]. - The company is developing high-performance electric heaters for high-humidity environments, aiming for domestic mass production[130]. - The company is working on a 7000W thick-film liquid heater, utilizing nano-conductive heating materials to enhance heating efficiency and electrical safety[130]. Quality Control - The company continues to enhance its quality control systems, including the implementation of ISO/TS22163 and IATF16949 quality management systems[90]. - The company established a dedicated quality task force to address long-standing quality issues and improve internal management practices[91]. - The company received multiple awards for quality from major clients, including Midea and Haier, enhancing its reputation in the industry[79]. Environmental and Safety Management - The company optimized hazardous waste management and signed agreements with clients to avoid harmful substances, maintaining compliance with environmental standards[98]. - The company implemented strict safety training and management protocols, ensuring no major safety incidents occurred during 2020[97]. - The company’s safety management was recognized with a "Safety Production Standardization Level 3 (Machinery)" certificate in 2020[98]. Customer and Supplier Relationships - The company has a high customer concentration risk, particularly in the air conditioning, polysilicon manufacturing, optical cable manufacturing, and lithium battery industries[8]. - The total sales amount from the top five customers reached ¥1,276,765,322.53, accounting for 53.26% of the annual total sales[127]. - The largest customer, Gree Group, contributed ¥498,768,719.89, representing 20.81% of the annual sales[127]. - The total procurement amount from the top five suppliers was ¥550,527,847.13, which is 30.53% of the annual total procurement[127]. - The largest supplier, Zhenjiang Dongfang Shanyuan Electric Heating Co., Ltd., accounted for ¥178,350,720.35, or 9.69% of the total procurement[127]. Corporate Governance - The actual controller and shareholders of the company have committed to not transferring or entrusting their shares for 36 months from the date of the IPO, with a limit of 25% transfer of shares per year thereafter[190]. - The company has committed to not engaging in any business that competes with its operations, ensuring no direct or indirect competition[190]. - The company has confirmed that it will not modify the current dividend terms in its articles of association during the tenure of its actual controllers, ensuring continued dividend capability[193].

Financial Performance - Operating revenue for the reporting period was ¥665,184,920.07, representing a year-on-year increase of 25.42%[8] - Net profit attributable to shareholders of the listed company was ¥32,420,009.93, a significant increase of 436.84% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥28,846,219.88, up by 249.60% year-on-year[8] - Basic earnings per share for the reporting period were ¥0.0255, an increase of 442.55% compared to the same period last year[8] - The weighted average return on net assets was 1.69%, an increase from 1.40% in the previous year[8] - The company reported a net profit for the current period of ¥34,782,934.43, compared to ¥26,169,368.66 in the previous period, indicating a year-over-year increase of about 32.5%[66] - The total profit for the current period was ¥39,367,597.78, up from ¥27,397,016.16 in the previous period, reflecting a growth of approximately 43.8%[66] - The company's total comprehensive income attributable to the parent company was ¥33,017,679.65, compared to ¥5,319,523.94 in the previous period, indicating a substantial increase[62] - The net profit for the current period is ¥76,160,157.10, a decrease of 12.6% compared to ¥87,012,339.80 in the previous period[75] - The total profit for the current period is ¥84,081,245.27, down from ¥95,934,688.63, reflecting a decline of 12.3%[75] Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,652,126,511.99, an increase of 2.28% compared to the end of the previous year[8] - Net assets attributable to shareholders of the listed company amounted to ¥2,065,750,531.89, reflecting a growth of 9.65% year-on-year[8] - The company's total assets increased to ¥2,855,088,420.00, compared to ¥2,617,802,707.21 in the previous year, marking a growth of 9.1%[55] - The company's total liabilities increased from 1.48 billion yuan in 2019 to 1.57 billion yuan in 2020, representing a rise of approximately 6%[48] - Total liabilities rose to ¥841,216,298.30, up from ¥667,355,805.55, indicating a year-over-year increase of 26.0%[55] - Total liabilities amounted to ¥1,479,408,624.42, with current liabilities at ¥1,312,644,321.26[89] - The company holds cash and cash equivalents of ¥104,536,832.09 and accounts receivable of ¥464,883,005.81[94] Cash Flow - The net cash flow from operating activities was negative at -¥34,921,432.49, a decline of 111.53% year-on-year[8] - Cash received from tax refunds decreased by 45.21% to ¥6,523,522.21, mainly due to reduced refunds from a subsidiary[27] - Cash received from borrowings decreased by 46.08% to ¥196,062,094.81, attributed to a reduction in borrowings[27] - Cash flow from operating activities generated a net amount of ¥64,615,316.09, a significant improvement from a net loss of ¥49,541,843.52 in the previous period[78] - Cash inflow from investment activities totaled ¥812,004,773.94, compared to ¥714,238,120.54 in the previous period, indicating an increase of 13.7%[78] - The cash outflow from investment activities was ¥927,995,386.48, up from ¥854,098,755.09, representing an increase of 8.6%[78] - The total cash and cash equivalents at the end of the period stood at ¥77,374,526.98, down from ¥122,262,090.71, a decrease of 36.7%[80] - Cash flow from sales of goods and services was ¥1,061,274,401.41, compared to ¥1,157,397,355.93 in the previous period, reflecting a decrease of 8.3%[78] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 77,335[12] - Major shareholder Tan Rongsheng holds 14.68% of the shares, amounting to 186,895,486 shares[12] Investments and Acquisitions - The company completed the acquisition of the remaining 49% equity in Jiangsu Jiutian for ¥8,000,000, with payments structured over several dates[31] - The company anticipates non-recurring gains and losses of about 16 million yuan for the year 2020, contributing positively to the overall financial performance[35] Research and Development - Research and development expenses for the quarter were ¥23,220,491.77, an increase of 28.0% from ¥18,140,159.28 in the previous year[60] - Research and development expenses increased to ¥14,143,416.84 from ¥11,947,163.02, marking a rise of approximately 18.4%[63] - Research and development expenses are reported at 63,373,069.73, slightly up from 61,609,794.54, showing an increase of about 2.9%[69] Tax and Other Expenses - Income tax expenses surged by 348.53% to ¥5,898,460.55, influenced by deferred tax expenses from previous losses[24] - Tax expenses for the current period are reported at 5,898,460.55, significantly higher than 1,315,073.19 in the previous period, showing an increase of approximately 348.0%[69] - The company's financial expenses decreased significantly from ¥1,349,056.17 to ¥191,502.39, primarily due to a reduction in interest expenses[63] Inventory and Receivables - Accounts receivable increased by 55.05% to ¥594,886,598.98, primarily due to increased sales in the latter part of the reporting period[24] - The company’s accounts receivable rose significantly from 383.68 million yuan in 2019 to 594.89 million yuan in 2020, marking an increase of approximately 55%[42] - The company’s inventory decreased from 688.74 million yuan in 2019 to 600.18 million yuan in 2020, indicating a reduction of about 12.8%[42] Financial Standards and Compliance - The company has not undergone an audit for the third quarter report[100] - The company is implementing new revenue and leasing standards starting from 2020, affecting prior comparative data[100]

COVID-19 Impact - The company reported a significant impact on its operations due to the ongoing COVID-19 pandemic, which has disrupted global supply chains and economic recovery[6]. - The company faces risks from the ongoing COVID-19 pandemic, which could adversely affect its performance if the situation does not improve globally[106]. Customer Concentration and Dependency - The company faces a high customer concentration risk, with major clients in the air conditioning, polysilicon manufacturing, optical cable manufacturing, and lithium battery industries[11]. - To reduce customer dependency, the company aims to accelerate the development of new products and markets, shortening product development cycles[11]. - The company has a high customer concentration risk, particularly in the air conditioning, polysilicon manufacturing, optical cable manufacturing, and lithium battery industries[106]. - To mitigate customer dependency, the company plans to enhance the development of new products, customers, and markets, while shortening product development cycles[106]. Financial Performance - The company's operating revenue for the reporting period was ¥1,116,438,050.30, a decrease of 9.98% compared to ¥1,240,252,043.35 in the same period last year[35]. - The net profit attributable to shareholders was ¥25,686,934.75, down 58.62% from ¥62,077,195.46 year-on-year[35]. - The net profit after deducting non-recurring gains and losses was ¥15,179,120.55, a decline of 70.14% compared to ¥50,832,924.97 in the previous year[35]. - The net cash flow from operating activities was ¥99,536,748.58, a significant improvement from a negative cash flow of ¥352,368,815.99 in the same period last year[35]. - The total assets at the end of the reporting period were ¥3,537,902,347.05, a decrease of 0.92% from ¥3,570,832,513.53 at the end of the previous year[35]. - The net assets attributable to shareholders increased by 0.59% to ¥1,895,073,258.95 from ¥1,883,891,829.29 at the end of the previous year[35]. - The company achieved total operating revenue of 111,643.81 million yuan, a year-on-year decrease of 9.98%[49]. - Net profit attributable to the parent company was 2,568.69 million yuan, down 58.62% year-on-year[49]. Product Development and Market Strategy - The company is focusing on developing new products and technologies to maintain cost advantages and improve market share[13]. - The company plans to enhance its management and cost control capabilities to mitigate external risks associated with the pandemic[7]. - The company aims to accelerate the development and application of new products and technologies to maintain a competitive edge and improve profit margins[107]. - The company is expanding its product offerings in the new energy vehicle sector, including PTC heaters for electric vehicles and integrated control water heating PTC heaters[44]. Subsidiary Management - The company has increased its stake in Jiangsu Jiutian to 100%, which may lead to increased losses if the subsidiary continues to perform poorly[18]. - The company plans to integrate resources and management at Jiangsu Jiutian to achieve profitability[18]. - The company has acquired a 51% stake in Jiangsu Jiutian and plans to fully acquire the remaining 49%, which may increase losses if the subsidiaries continue to perform poorly[108]. - The company intends to leverage its financial, customer, and management advantages to integrate resources and improve efficiency at Jiangsu Jiutian and Dongfang Jiutian[108]. Talent Acquisition and Internal Training - The company emphasizes the importance of talent acquisition and internal training to meet the demands of its expanding operations[14]. - There is a risk of talent shortages as the company expands its operations and enters new fields, necessitating a stronger talent acquisition and retention strategy[107]. Legal and Regulatory Matters - The company has ongoing legal disputes, including a judgment requiring payment of 7.676 million yuan within 10 days[120]. - The company has no media scrutiny or regulatory penalties during the reporting period[121][122]. Environmental Impact - The company reported a total pollutant discharge of 2.7889 tons of COD, 1.6702 tons of SS, and 0.577 tons of sulfur dioxide, among other pollutants[153]. - The company has 7 organized gas emission outlets and 2 water discharge outlets, with all emissions meeting the required standards[153]. Financial Management and Investments - The company reported a total of ¥369,522,624.81 in financial assets at the beginning of the period, with a fair value change loss of ¥55,519.93[84]. - The company has no fundraising activities during the reporting period[87]. - The company reported a total investment of 5,000,000 CNY in various low-risk financial products, with expected annualized returns ranging from 3.30% to 4.47%[91]. - The company has engaged in multiple financial products with varying maturity dates, indicating a strategy for liquidity management[92]. - The structured deposit products primarily invest in money market instruments and fixed-income bonds, indicating a focus on low-risk investments[94][96]. Shareholder Information - The total number of shares is 1,273,493,706, with 30.96% being restricted shares and 69.04% being unrestricted shares[165]. - The largest shareholder, Tan Rongsheng, holds 16.37% of shares, totaling 208,477,488 shares[167]. - Total number of common shareholders at the end of the reporting period was 48,289[167].