东莞宜安科技股份有限公司 2020 年第一季度报告全文 东莞宜安科技股份有限公司 2020 年第一季度报告 证券代码：300328 证券简称：宜安科技 二零二零年四月 1 东莞宜安科技股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人杨洁丹、主管会计工作负责人李文平及会计机构负责人(会计主 管人员)李文平声明：保证季度报告中财务报表的真实、准确、完整。 2 东莞宜安科技股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 226,617,769.44 | 274,878,932.15 | -17.56% | | 归属于上市公司股东的净利润（元） | 15, ...

Financial Performance - Net profit attributable to shareholders was CNY 23,720,069.16, down 12.86% year-on-year[9] - Operating revenue for the reporting period was CNY 268,140,548.31, representing a decline of 8.13% compared to the same period last year[9] - The basic earnings per share for the reporting period was CNY 0.0515, down 12.86% year-on-year[9] - The net profit after deducting non-recurring gains and losses was CNY 17,328,411.04, down 20.05% year-on-year[9] - Total operating revenue for the current period is $268.14 million, down from $291.86 million in the previous period, representing a decrease of approximately 8.1%[42] - Net profit for the current period is $17.35 million, compared to $21.88 million in the previous period, reflecting a decline of approximately 20.5%[43] - Total profit for the current period is $19.80 million, down from $28.39 million, indicating a decrease of about 30.4%[43] - Net profit for the period was ¥41,424,368.85, representing a slight increase of 2.96% from ¥40,232,562.48 year-over-year[50] - The total profit for the period was ¥40,928,373.53, a decrease of 13.09% compared to ¥47,405,833.65 in the previous period[50] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,955,433,635.11, a decrease of 2.24% compared to the end of the previous year[9] - Total assets decreased from CNY 2,000,261,697.50 to CNY 1,955,433,635.11, a decline of approximately 2.6%[33] - Current liabilities decreased from CNY 495,674,651.07 to CNY 408,393,451.83, a reduction of about 17.6%[34] - Non-current liabilities decreased from CNY 142,993,637.59 to CNY 127,428,895.67, a decrease of approximately 10.9%[34] - Total liabilities decreased from CNY 638,668,288.66 to CNY 535,822,347.50, a reduction of about 16.1%[34] - Total equity increased from CNY 1,361,593,408.84 to CNY 1,419,611,287.61, an increase of about 4.3%[35] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 69,412,902.41, an increase of 216.02%[9] - Net cash flow from operating activities increased by 216.02% compared to the same period last year, primarily due to increased sales receipts and tax refunds[22] - The net cash flow from operating activities for Q3 2019 was ¥69,412,902.41, a significant improvement compared to a net outflow of ¥59,830,502.96 in Q3 2018[58] - Total cash inflow from operating activities reached ¥796,014,691.50, up from ¥620,445,051.39 in the previous year, indicating a growth of approximately 28.4%[58] - The net cash flow from investing activities was -¥88,614,482.68, an improvement from -¥433,106,807.05 in the same period last year[59] - Cash inflow from financing activities totaled ¥159,358,095.29, down from ¥670,460,723.95 in Q3 2018, reflecting a decrease of approximately 76.3%[59] - The net cash flow from financing activities was -¥13,386,411.56, compared to a positive net flow of ¥421,970,436.19 in the previous year[59] Shareholder Information - The company reported a total of 29,711 common shareholders at the end of the reporting period[13] - The top shareholder, Zhuzhou State-owned Assets Investment Holding Group Co., Ltd., held 27.97% of the shares[13] - The company completed the transfer of 33.75 million shares (7.33% of total shares) to Zhuzhou Guotou, making it the largest shareholder with 27.97% of total shares[23] - The company did not conduct any repurchase transactions during the reporting period[14] - The company has not made any adjustments to its profit distribution policy during the reporting period[26] Other Financial Metrics - Financial expenses decreased by 99.97% compared to the same period last year, mainly due to increased exchange gains and reduced interest expenses[20] - Other income decreased by 56.43% compared to the same period last year, mainly due to a reduction in government subsidies received and amortized from previous periods[20] - Research and development expenses increased to $15.14 million from $12.35 million, marking a rise of about 22.6%[42] - Other income for the current period is $10.69 million, significantly higher than $2.89 million in the previous period, an increase of approximately 269.5%[43] - The company reported a financial expense of -$4.49 million, compared to -$3.54 million in the previous period, indicating a worsening of approximately 26.9%[42] - The company experienced an asset disposal loss of -$6.49 million, compared to a loss of -$266,977.63 in the previous period[43] - Comprehensive income for the current period totals $18.75 million, down from $23.52 million, a decrease of approximately 20.5%[44] - Comprehensive income for the period totaled ¥43,031,998.77, slightly up from ¥42,240,860.88 in the previous period[51]

Development Focus - The company plans to focus on three key development areas: liquid metal, automotive parts for new energy vehicles, and biodegradable medical magnesium alloys[10]. - The company aims to increase market share in liquid metal and new energy vehicle products, which may lead to a rigid increase in R&D and marketing expenses[10]. - The company focuses on new materials development, particularly in liquid metal, magnesium alloys, and aluminum alloys, targeting sectors like new energy vehicles and consumer electronics[36]. - The company will invest in high-tech new products and accelerate the promotion of liquid metal and new energy vehicle components[8]. - The company has established a complete industrial chain for material research and development, precision mold development, and precision die-casting[36]. Financial Performance - Total revenue for the reporting period reached ¥523,851,924.74, an increase of 30.06% compared to ¥402,777,492.21 in the same period last year[29]. - Net profit attributable to shareholders was ¥28,342,184.39, reflecting an 18.55% increase from ¥23,906,605.83 in the previous year[29]. - Net cash flow from operating activities improved significantly to ¥14,166,682.80, a 132.31% increase from a negative cash flow of ¥48,397,377.34 in the same period last year[29]. - Basic earnings per share rose to ¥0.0616, up 14.29% from ¥0.0539 in the previous year[29]. - The company reported a decline of 7.64% in net profit after deducting non-recurring gains and losses, amounting to ¥19,178,708.75 compared to ¥20,765,887.80 in the previous year[29]. Cash Flow Management - The company will enhance the management and monitoring of accounts receivable to ensure cash flow stability and mitigate cash flow risks[12]. - The company will implement measures to manage and reduce the impact of rising costs on operating performance[10]. - Operating cash flow improved by 132.31% to ¥14,166,682.80, primarily due to increased cash receipts from sales and services[74]. - The company reported a significant reduction in financial expenses by 28.03% to ¥4,491,416.87[74]. Investment and R&D - Research and development expenditures totaled RMB 28.48 million, a 30.99% increase year-over-year, with the company obtaining 12 new patents during the reporting period[71]. - The company invested RMB 22.62 million in fundraising projects, including RMB 16.21 million for the lightweight alloy precision die-casting production base project and RMB 6.41 million for the amorphous alloy (liquid metal) precision structural components expansion project[70]. - The company has established multiple research institutions, enhancing its competitive advantage in new materials[47]. Market Position and Competition - The company faces risks related to increased competition in the market for automotive parts and consumer electronics[8]. - The company has entered the supply chains of well-known clients such as Tesla, BYD, and Geely in the new energy vehicle sector[44]. - The company is actively expanding its market presence in the new energy vehicle sector, supported by favorable government policies and a growing demand for lightweight materials[55]. Corporate Governance and Compliance - The company has committed to maintaining a high level of corporate governance and compliance with relevant laws and regulations[112]. - The company has established measures to ensure that its senior management does not hold positions in other companies that could conflict with its interests[112]. - The company has committed to avoiding any related party transactions that could harm the legitimate rights and interests of its minority shareholders[111]. Environmental Responsibility - The company has implemented strict pollution control measures, ensuring all wastewater and emissions meet national standards[139]. - The company received recognition as an "Environmental Integrity Enterprise" from the Dongguan Ecological Environment Bureau in April 2019[144]. - The company’s subsidiary, Yian Yunhai, achieved ISO 14001 environmental management system certification on May 16, 2019[151]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 24,842[160]. - Yian Industrial Co., Ltd. holds 29.33% of shares, totaling 135,000,000 shares, all of which are pledged[160]. - The company’s total share capital is 460,282,400 shares, with 50,000,000 shares released from restrictions on March 18, 2019[156]. Risks and Challenges - The company is aware of the risks associated with foreign exchange fluctuations due to its export pricing in USD[14]. - The company has indicated potential risks and has outlined measures to address them, as detailed in the report[102]. - The company has not encountered any significant changes in the feasibility of the investment projects[92].

Financial Performance - Total revenue for Q1 2019 reached ¥274,878,932.15, an increase of 65.96% compared to ¥165,628,265.36 in the same period last year[8] - Net profit attributable to shareholders was ¥6,484,675.77, representing a growth of 111.57% from ¥3,065,058.82 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥5,774,392.40, up 177.87% from ¥2,078,067.73 in the previous year[8] - Basic earnings per share increased by 90.54% to ¥0.0141 from ¥0.0074 in the same period last year[8] - The company's operating revenue for the reporting period increased by 65.96% year-on-year, reaching 274.88 million CNY, driven by enhanced sales efforts and market expansion[18] - The net profit attributable to shareholders of the listed company grew by 111.57% year-on-year, amounting to 6.48 million CNY, primarily due to increased sales revenue and reduced financial expenses[18] Cash Flow and Assets - The net cash flow from operating activities improved by 25.56%, reaching -¥20,403,911.56 compared to -¥27,411,540.63 in the previous year[8] - Total assets at the end of the reporting period were ¥1,944,950,770.37, a decrease of 2.77% from ¥2,000,261,697.50 at the end of the previous year[8] - The company's current assets decreased to CNY 1,004,988,364.41 from CNY 1,105,938,454.97, reflecting a decline of approximately 9.1%[40] - Cash and cash equivalents were reported at CNY 323,726,648.35, down from CNY 338,839,946.06, indicating a decrease of about 4.4%[40] - The total amount of raised funds is CNY 41,988.44 million, with CNY 1,909.53 million invested in the current quarter, and a cumulative investment of CNY 21,110.34 million[32] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 23,081[11] - The largest shareholder, Yian Industrial Co., Ltd., held 29.33% of the shares, totaling 135,000,000 shares[11] Research and Development - Research and development investment totaled 13.34 million CNY, reflecting a 24.74% increase compared to the same period last year, aimed at enhancing product competitiveness[21] - The company plans to increase investment in R&D for high-tech products such as liquid metal and automotive components, aiming to enhance market competitiveness and establish new profit growth points[26] - The biodegradable magnesium alloy project has entered a special approval pathway for innovative medical devices, with clinical trial preparations completed[23] - The company has obtained 7 new patents during the reporting period, strengthening its core competitiveness[24] Risks and Management - The company faces risks related to increased accounts receivable due to extended payment terms with customers, which could impact profitability if economic conditions change[27] - The company will strengthen accounts receivable management to ensure cash flow stability and mitigate cash flow risks[28] - The company is exposed to foreign exchange risk due to its main products being priced in USD, which could affect costs and profits[29] - The company will enhance management of acquired companies to prevent goodwill impairment risks associated with underperforming subsidiaries[29] - The company aims to improve internal management processes to minimize losses from management errors as it expands its operations[28] - The company is committed to optimizing resource allocation and enhancing cost control to address rising cost pressures[27] Future Plans - The company plans to continue investing in the development of liquid metal technology and expand its market presence through various promotional activities[22] - The company will continue to monitor market trends and customer needs to launch new products that meet demand[26] - The company plans to accelerate the clinical research and application of biodegradable medical magnesium alloys, which may lead to rigid growth in R&D and marketing expenses[27] Other Financial Metrics - The company reported a weighted average return on equity of 0.52%, up from 0.39% in the previous year[8] - The company's equity attributable to shareholders reached CNY 1,192,118,943.67, slightly up from CNY 1,187,712,165.47 at the end of 2018[48] - The company reported a gross profit margin of approximately 1.1% for Q1 2019, compared to a gross profit margin of 0.1% in Q1 2018[49] - Research and development expenses increased to CNY 13,341,673.13 from CNY 10,695,289.00, reflecting a growth of about 24.5% year-over-year[49]

Development Focus - The company plans to focus on three key development areas: liquid metal, automotive components for new energy vehicles, and biodegradable medical magnesium alloys[8]. - The company aims to increase market share in liquid metal and new energy vehicle products, which may lead to a rigid increase in R&D and marketing expenses[8]. - The company is positioned in the new materials industry, focusing on sectors such as new energy vehicles, liquid metal, and 5G technology[37]. - The biodegradable medical magnesium alloy market in China is projected to reach 12 billion RMB, driven by an annual compound growth rate of 10%-15% over the next 10-15 years[40]. - The orthopedic implant market in China has surpassed 15 billion RMB, with approximately 3 million fracture surgeries performed annually, including 250,000 joint replacements and 400,000 spinal device surgeries[40]. Financial Performance - The company's operating revenue for 2018 was ¥985,803,818.37, representing a 21.59% increase compared to ¥810,734,360.91 in 2017[24]. - The net profit attributable to shareholders for 2018 was ¥54,202,859.52, a significant increase of 65.45% from ¥32,761,566.51 in 2017[24]. - The net profit after deducting non-recurring gains and losses was ¥44,019,699.45, which is a 100.17% increase from ¥21,991,167.23 in 2017[24]. - The total assets at the end of 2018 reached ¥2,000,261,697.50, marking a 34.80% increase from ¥1,483,864,027.58 at the end of 2017[24]. - The net assets attributable to shareholders increased by 61.17% to ¥1,234,182,377.52 from ¥765,753,626.92 in 2017[24]. Cash Flow and Dividends - The company will enhance the management and monitoring of accounts receivable to ensure cash flow stability and mitigate cash flow risks[10]. - The company has proposed a profit distribution plan, distributing a cash dividend of 0.5 yuan per 10 shares to all shareholders, based on 460,282,400 shares[14]. - The net cash flow from operating activities for 2018 was negative at -¥11,158,963.30, a decline of 107.39% compared to ¥151,084,720.33 in 2017[24]. - In 2018, the cash dividend amount was 23,014,120.00, representing 42.46% of the net profit attributable to ordinary shareholders[152]. Market Competition and Risks - The company acknowledges the risk of increased competition in the market for automotive components and consumer electronics, emphasizing the need for continuous innovation and product development[6]. - The company faces risks related to accounts receivable due to extended payment terms with customers, which could affect profitability if not managed properly[9]. - The company recognizes the potential impact of exchange rate fluctuations on costs and profits, and plans to strengthen its foreign exchange risk management[12]. - The company will actively participate in market competition to cultivate new profit and business growth points[7]. Research and Development - The company has a strong focus on research and development, with multiple research institutions and partnerships to enhance its competitive advantage in new materials[52]. - The company has increased its R&D investment to RMB 49.5409 million, a growth of 22.58% compared to the previous year, and has obtained 22 new patents during the reporting period[77]. - The company aims to increase R&D investment and strengthen collaboration with universities and research institutions to optimize core product processes and improve product quality[136]. - The company is collaborating with major telecom operators to provide components for 5G communication base stations, aligning with global 5G deployment trends[66][67]. Production and Quality Control - The production process includes steps from customer orders to mold design, ensuring quality control at each stage[36]. - The company has established a comprehensive procurement management system to ensure the quality of raw materials[34]. - The company has implemented a comprehensive quality control system, achieving certifications such as ISO9001:2015 and IATF16949:2016, ensuring high product quality across various sectors[54]. - The company will implement strict production management and quality control measures to enhance production efficiency and product quality, ensuring orderly production operations[137]. Strategic Partnerships and Acquisitions - The company has strengthened its competitive position through strategic partnerships, including becoming a subsidiary of Zhuzhou Guotou[37]. - The company established a joint venture with Zhuzhou Guotou, holding 60% of the shares in the new materials R&D company, to enhance its capabilities in liquid metal applications[77]. - The company is actively expanding its technical development and production capacity for new energy vehicle components to meet market demand[61]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of 300 million RMB allocated for potential deals[158]. Corporate Governance and Compliance - The company has maintained compliance with regulations, with no penalties for information disclosure or insider trading violations during the reporting period[79]. - The company has committed to avoiding any substantial or potential competition with its controlling shareholders and related parties[155]. - The company has implemented measures to prevent fund occupation by its controlling shareholders during operational transactions[155]. - The company has committed to fulfilling its promises indefinitely without any violations occurring to date[165]. Social Responsibility - The company actively fulfills its social responsibilities and maintains transparent communication with investors[197]. - The company donated 100,000 RMB to the Dongguan Qingxi Charity Foundation in November 2018 as part of its poverty alleviation efforts[200].

Financial Performance - Operating revenue for the reporting period was CNY 291,864,370.03, a 39.08% increase year-on-year[10] - Net profit attributable to shareholders increased by 546.72% to CNY 27,219,884.81 compared to the same period last year[10] - Basic earnings per share rose by 473.79% to CNY 0.0591[10] - Net profit attributable to shareholders of the parent company increased by 102.39% compared to the same period last year, mainly due to increased sales revenue and foreign exchange gains[21] - Financial expenses decreased by 81.68% compared to the same period last year, primarily due to increased foreign exchange gains[20] - Investment income surged by 1,589.96% compared to the same period last year, mainly from returns on financial products[20] - The company's net profit for the period was not explicitly stated, but the increase in revenue and costs suggests a focus on growth despite rising expenses[42] - The total profit for the quarter was CNY 28,393,869.94, significantly higher than CNY 2,238,218.50 in the same period last year[43] - The net profit for the third quarter reached CNY 21,875,721.07, compared to a mere CNY 287,423.27 in the same period last year, reflecting a significant growth[43] - The total comprehensive income attributable to the parent company was CNY 53,134,789.04, significantly higher than CNY 23,905,901.18 in the previous year, marking a 121.1% increase[52] Assets and Liabilities - Total assets increased by 29.53% to CNY 1,921,995,057.12 compared to the end of the previous year[10] - The total liabilities decreased to ¥561,947,955.79 from ¥651,572,973.55, indicating a reduction of approximately 13.8%[36] - Cash and cash equivalents decreased by 43.56% compared to the end of the previous year, primarily due to the company's investment in financial products[19] - Accounts receivable and notes receivable increased by 45.74% compared to the end of the previous year, attributed to the increase in notes receivable and accounts receivable not yet due[19] - Inventory grew by 46.38% compared to the end of the previous year, driven by increased orders requiring stockpiling[19] - The total assets of the company increased to ¥1,921,995,057.12, compared to ¥1,483,864,027.58 at the beginning of the year, marking a growth of 29.5%[36] - Cash and cash equivalents decreased to ¥56,152,176.65 from ¥175,536,159.83, a decline of 68.0%[37] - Accounts receivable increased to ¥282,822,485.49 from ¥169,242,690.89, representing a growth of 67.0%[37] - Inventory levels rose to ¥130,430,643.65 from ¥99,025,300.50, an increase of 31.7%[37] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -59,830,502.96, a decrease of 157.66% compared to the previous year[10] - Cash flow from operating activities saw a net outflow increase of 157.66% compared to the same period last year, primarily due to increased cash payments for goods and services[22] - The cash flow from operating activities was impacted by increased payments for goods and services, totaling 340,149,629.95 CNY, compared to 243,545,379.91 CNY previously[58] - The total cash inflow from operating activities was CNY 620,445,051.39, slightly up from CNY 616,487,248.96 in the previous period[56] - The net cash flow from operating activities was -15,815,269.15 CNY, a significant decrease compared to 115,983,639.93 CNY in the previous period[58] - Total cash inflow from investment activities was 216,821,731.27 CNY, while cash outflow was 620,515,942.73 CNY, resulting in a net cash flow of -403,694,211.46 CNY[58] - The net cash flow from financing activities was 336,118,572.65 CNY, an increase from 138,588,533.36 CNY in the previous period[60] - The company experienced a net decrease in cash and cash equivalents of 83,742,437.39 CNY during the period[60] Shareholder Information - The top shareholder, Yian Industrial Co., Ltd., holds 39.11% of the shares, amounting to 180,000,000 shares[14] - The company reported a total of 19,435 common shareholders at the end of the reporting period[14] - There were no significant changes in the number of restricted shares during the reporting period[17] Research and Development - The company reported R&D expenses of ¥12,353,729.75, which is an increase from ¥9,230,806.12, indicating a commitment to innovation[42] - The company reported an increase in R&D expenses to CNY 7,162,774.99, up from CNY 6,906,719.70, indicating a focus on innovation[46] - Research and development expenses amounted to CNY 20,374,712.80, a decrease of 15.0% from CNY 24,184,517.83 in the previous year[53] Operating Costs - Total operating costs amounted to ¥270,415,736.66, up from ¥209,702,125.29, reflecting a year-over-year increase of 29.0%[42] - The company's total operating costs were CNY 185,388,589.18, compared to CNY 111,236,012.98 in the previous period, reflecting increased operational activities[46]

Business Development Focus - The company plans to focus on three key development areas: liquid metal, automotive parts for new energy vehicles, and biodegradable medical magnesium alloys[10]. - The company aims to increase market share in liquid metal and new energy vehicle products, which may lead to rigid growth in R&D, marketing, and labor costs[10]. - The company is engaged in the research, design, production, and sales of new materials, focusing on high-value-added products such as new energy vehicle components and liquid metal products[36]. - The company has established a strong growth potential in the new materials sector, supported by key technologies and a focus on high-end products[36]. - The company is actively pursuing the registration of biodegradable magnesium internal fixation screws, with supplementary materials submitted to the medical device review center in April 2018[47]. - The company is focusing on the development of biodegradable magnesium alloy products and has submitted supplementary materials for product registration to the medical device review center[64]. Financial Performance - Total revenue for the reporting period reached ¥402,777,492.21, an increase of 14.04% compared to ¥353,177,348.12 in the same period last year[30]. - Net profit attributable to shareholders was ¥23,906,605.83, reflecting a growth of 13.56% from ¥21,052,412.21 year-on-year[30]. - Net profit after deducting non-recurring gains and losses surged by 46.21% to ¥20,765,887.80 from ¥14,202,815.53 in the previous year[30]. - The company's total assets increased by 22.46% to ¥1,817,149,415.88 from ¥1,483,864,027.58 at the end of the previous year[30]. - Net assets attributable to shareholders rose by 56.70% to ¥1,199,949,730.49 from ¥765,753,626.92 at the end of the previous year[30]. - The company reported a negative net cash flow from operating activities of ¥48,397,377.34, a decline of 151.03% compared to a positive cash flow of ¥94,848,368.71 in the same period last year[30]. - Basic earnings per share increased by 4.86% to ¥0.0539 from ¥0.0514 year-on-year[30]. Risk Management - The company acknowledges the risk of intensified market competition in the new energy vehicle and consumer electronics sectors, necessitating continuous innovation and product development[8]. - The company faces potential risks related to goodwill impairment from acquisitions if the performance of acquired subsidiaries does not meet expectations[17]. - The company will enhance management of accounts receivable to ensure cash flow stability and mitigate risks associated with delayed payments from customers[13]. - The company will strengthen its foreign exchange risk management to mitigate the impact of currency fluctuations on profitability[15]. Innovation and R&D - The company obtained 13 new patents during the reporting period, bringing the total to 82 patents, including 18 invention patents[44]. - The company has a strong R&D team and has established multiple research institutions, including the Guangdong Provincial Lightweight Alloy Engineering Technology Research Center[47]. - Research and development investment totaled RMB 21.74 million, reflecting a growth of 4.65% compared to RMB 20.77 million in the previous year[70]. - The company is increasing its research and development efforts in industrial robotics and smart manufacturing, collaborating with ABB to improve market share[63]. Market Position and Partnerships - The company has established partnerships with well-known clients such as Tesla, BYD, and Geely, enhancing its market presence in the new energy vehicle sector[55]. - The company is a leading supplier of amorphous alloy products in the consumer electronics sector, with advanced production capabilities[46]. - The company has established partnerships with well-known clients such as Tesla, Xiaomi, and OPPO, enhancing its market presence in the liquid metal sector[59]. - The company is actively developing the 5G precision communication base station components market and has maintained good cooperation with clients like ZTE Communications[60]. Corporate Governance and Compliance - The company has committed to avoiding any business activities that may compete with its main operations, ensuring no conflicts arise with its subsidiaries[119]. - The company has pledged to avoid and minimize related party transactions, adhering to principles of fairness and transparency in all dealings[117]. - The company has committed to strict limitations on financial interactions with its major shareholders to prevent fund occupation[113]. - The company has confirmed that there have been no violations of its commitments regarding competition and related transactions[115]. Environmental Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities[138]. - The wastewater treatment facility has a capacity of 500m³ and meets discharge standards, with no exceedances reported in the first half of 2018[141]. - The company strictly adheres to national environmental protection laws and has implemented measures to control pollutant emissions[141]. - The project includes measures for pollution prevention and control, ensuring compliance with environmental standards[148]. Shareholder Information - The largest shareholder, Yian Industrial Co., Ltd., holds 39.11% of shares, totaling 180,000,000 shares, which are pledged[164]. - The second-largest shareholder, Zhuzhou State-owned Assets Investment Holdings Group Co., Ltd., holds 10.86% of shares, totaling 50,000,000 shares[164]. - The total number of common shareholders at the end of the reporting period is 19,819[164]. - The company has no changes in its controlling shareholder or actual controller during the reporting period[166].

Financial Performance - Total revenue for Q1 2018 was ¥165,628,265.36, a slight increase of 0.13% compared to ¥165,405,876.49 in the same period last year[10] - Net profit attributable to shareholders decreased by 71.02% to ¥3,065,058.82 from ¥10,574,869.53 year-on-year[10] - The company's operating revenue for the first quarter of 2018 was RMB 165.63 million, representing a year-on-year increase of 0.13%[32] - The net profit attributable to shareholders of the listed company was RMB 3.07 million, a decrease of 71.02% compared to the same period last year[29] - The net profit for the first quarter was CNY -194,975.85, a decrease from CNY 9,359,122.47 in the previous period[66] - The total comprehensive income attributable to the parent company was CNY 1,742,416.71, down 83.2% from CNY 10,385,722.41 in Q1 2017[70] - The basic and diluted earnings per share for Q1 2018 were both CNY 0.0074, compared to CNY 0.0258 in Q1 2017, reflecting a decline of 71.3%[70] Cash Flow - Net cash flow from operating activities turned negative at -¥27,411,540.63, a decline of 187.88% compared to ¥31,190,250.53 in the previous year[10] - The net cash flow from operating activities for Q1 2018 was negative at CNY -27,411,540.63, compared to a positive CNY 31,190,250.53 in the previous year[74] - The net cash flow from operating activities was -25,070,707.28 yuan, a significant decline compared to the previous period's 29,614,525.91 yuan[76] - Total cash inflow from operating activities decreased to 133,949,928.97 yuan from 151,057,669.61 yuan, reflecting a drop of approximately 11.3%[76] - Cash outflow from operating activities increased to 159,020,636.25 yuan, up from 121,443,143.70 yuan, marking an increase of about 30.9%[76] - The net cash flow from investing activities was -34,289,373.10 yuan, worsening from -29,355,845.00 yuan in the previous period[78] - Cash inflow from financing activities surged to 456,000,000.00 yuan, compared to just 30,000,000.00 yuan previously, indicating a substantial increase[78] - The net cash flow from financing activities improved significantly to 406,665,053.37 yuan from -3,116,997.68 yuan, showcasing a positive turnaround[78] - The ending balance of cash and cash equivalents rose to 486,123,089.60 yuan, up from 128,405,697.38 yuan, reflecting a strong liquidity position[78] Assets and Liabilities - Total assets increased by 23.95% to ¥1,839,252,241.01 from ¥1,483,864,027.58 at the end of the previous year[10] - The total liabilities decreased to CNY 572,921,903.95 from CNY 651,572,973.55[62] - The company's equity attributable to shareholders increased to CNY 1,189,682,677.95 from CNY 765,753,626.92[60] - The company's short-term borrowings decreased to CNY 57,302,423.18 from CNY 102,302,423.18[62] - The company's total non-current liabilities remained stable at CNY 258,401,805.57 compared to CNY 258,685,246.24[62] Investment and R&D - The company plans to enhance R&D investment in high-tech products such as liquid metal and magnesium-aluminum alloy automotive products to maintain competitive advantage[12] - Research and development investment for the reporting period amounted to RMB 10.79 million, representing a year-on-year increase of 0.17%[34] - The company obtained 9 new authorized patents during the reporting period, enhancing its core competitiveness[38] - The company is focusing on the development of high-precision components for new energy vehicles, enhancing product competitiveness[36] - The company is committed to strengthening its research and development capabilities and optimizing processes for new energy vehicle components[36] Fundraising and Financial Management - The company raised a total of RMB 430 million through a private placement of 50 million shares at RMB 8.60 per share, with net proceeds of approximately RMB 419.88 million after expenses[32] - The total amount of funds raised for the reporting period was ¥419.88 million, allocated to various projects including the lightweight alloy precision die-casting production base and the amorphous alloy precision structural components[46] - The company strictly adheres to the guidelines for fundraising management and does not engage in any improper use of funds[47] - There were no changes in the use of raised funds or their intended projects during the reporting period[46] Operational Challenges and Management - The company faces risks from increasing costs related to R&D and market expansion, which may impact operating performance[13] - The company will strengthen management of accounts receivable to mitigate risks associated with delayed payments from customers[14] - The company aims to improve internal management processes to adapt to its expanding business scale and enhance decision-making capabilities[17] - The company is focused on integrating acquired companies to ensure their performance meets expectations and to prevent goodwill impairment risks[19] - The company has maintained its core technical team without significant changes, ensuring stability in its competitive capabilities[39]

Development Focus - The company plans to focus on three key development areas: liquid metal, new energy vehicle products, and biodegradable medical magnesium alloys[10] - The company aims to increase market share in liquid metal and new energy vehicle products, which may lead to a rigid increase in R&D and marketing expenses[10] - The company is focused on timely product launches to meet customer demands and enhance market competitiveness[9] - The company acknowledges the increasing competition in the consumer electronics and new energy vehicle markets and is prepared to adapt its strategies accordingly[8] - The company is committed to improving internal management and control systems to adapt to its expanding business scale[13] - The company is actively involved in the 5G communications sector, maintaining good relationships with clients like ZTE and focusing on manufacturing technology and talent development for 5G products[70] - The company is focusing on the growing market for magnesium alloys in the automotive sector, with a reported 53.8% year-on-year growth in new energy vehicle production[131] Financial Performance - The company's operating revenue for 2017 was ¥810,734,360.91, representing a 44.00% increase compared to ¥563,025,335.58 in 2016[26] - The net profit attributable to shareholders for 2017 was ¥32,761,566.51, a 6.76% increase from ¥30,687,721.88 in 2016[26] - The net cash flow from operating activities surged by 369.75% to ¥136,675,880.33 in 2017, up from ¥29,095,443.03 in 2016[26] - Total assets at the end of 2017 reached ¥1,483,864,027.58, a 30.98% increase from ¥1,132,928,785.87 at the end of 2016[26] - The basic earnings per share for 2017 was ¥0.0800, reflecting a 5.40% increase from ¥0.0759 in 2016[26] - The company's net profit after deducting non-recurring gains and losses decreased by 13.13% to ¥21,991,167.23 in 2017 from ¥25,314,038.66 in 2016[26] - The weighted average return on net assets for 2017 was 4.40%, slightly down from 4.47% in 2016[26] - The company reported a total of ¥10,770,399.28 in non-recurring gains for 2017, compared to ¥5,373,683.22 in 2016[32] Investment and R&D - The total R&D investment for the reporting period was RMB 40.4153 million, representing a year-on-year increase of 0.36%[80] - The company plans to increase R&D investment in amorphous alloys and enhance collaboration with academic institutions to accelerate product development[134] - The company will continue to increase R&D investment in the new energy vehicle sector, focusing on optimizing processes and upgrading performance of components, aiming to enhance market competitiveness[136] - The company will focus on technological innovation by collaborating with universities and research institutions, increasing R&D investment in biodegradable magnesium alloy products, and accelerating clinical trial approvals[139] Market Position and Competitive Advantage - The company emphasizes the importance of maintaining competitive advantages in technology, management, and innovation to avoid being surpassed by competitors[8] - The company has established a competitive product business system focused on high value-added products and services[38] - The company is a leader in the new materials sector for electric vehicles, focusing on lightweight materials and has entered the supply chains of well-known clients such as Tesla and BYD[50] - The company has over 20 years of experience in new material research and is one of the few suppliers to commercialize amorphous alloys in the consumer electronics sector[44] - The company has developed a comprehensive procurement management system to ensure the quality of raw materials[35] Corporate Governance and Compliance - The company will adhere to legal requirements for corporate governance, ensuring shareholder rights and effective decision-making by the board[143] - The company has committed to avoiding and minimizing related party transactions, ensuring compliance with market fairness and legal procedures to protect the interests of minority shareholders[160] - The company has established a non-competition commitment, ensuring that it and its controlling enterprises will not engage in similar business activities that threaten competition within or outside China[157] - The company has committed to not infringing on its own interests or interfering with its management activities[163] Profit Distribution - The profit distribution plan includes a cash dividend of 0.30 RMB per 10 shares (before tax) based on 460,282,400 shares[16] - The cash dividend per 10 shares for 2017 was RMB 0.30, based on a total share capital of 460,282,400 shares[150] - In 2017, the company distributed cash dividends totaling RMB 13,808,472, which represents 42.15% of the net profit attributable to ordinary shareholders[152] - The cash dividend distribution plan for 2017 reflects a consistent approach to returning value to shareholders while retaining sufficient profits for future growth[150] Acquisitions and Subsidiaries - The company completed the acquisition of OptoTech for a total consideration of 220 million yuan, resulting in a 100% ownership stake[185] - The company acquired 100% equity of Shenzhen Oupote Industrial Materials Co., Ltd., with a profit forecast of 16 million yuan for 2017, 21 million yuan for 2018, and 29 million yuan for 2019, totaling a cumulative net profit of no less than 66 million yuan[165] - The company has added five subsidiaries and two holding subsidiaries to its consolidated financial statements compared to the previous year[170] Environmental Responsibility - The company has implemented strict pollution control measures, ensuring that all monitored emissions meet national standards without exceeding limits in 2017[199] - The company and its subsidiary, Yian Yunhai, are classified as key pollutant discharge units by environmental protection authorities[196] - The company donated RMB 100,000 to the Dongguan Qingxi Charity Foundation as part of its poverty alleviation efforts[195]

Financial Performance - Operating revenue for the period reached CNY 209,854,615, reflecting a year-on-year growth of 53.73%[10] - Net profit attributable to shareholders was CNY 4,208,893, an increase of 8.85% compared to the same period last year[10] - The basic earnings per share for the period was CNY 0.0103, up by 9.57% year-on-year[10] - The company's operating revenue increased by 49.60% compared to the same period last year, driven by enhanced sales efforts and the addition of new subsidiaries[20] - The company's net profit attributable to shareholders grew by 43.88% year-on-year, primarily due to increased sales revenue and government subsidies received[21] - Total operating revenue for Q3 2017 was CNY 209.85 million, an increase of 53.6% compared to CNY 136.51 million in the same period last year[40] - The company reported a total profit of ¥2,238,218.50, compared to ¥5,311,698.02 in the previous year[41] - Net profit for the quarter was ¥287,423.27, down from ¥3,935,861.61 year-over-year[41] - The company reported a total comprehensive income of CNY 17.60 million, slightly down from CNY 17.63 million in the previous period[50] Assets and Liabilities - Total assets increased by 26.29% to CNY 1,430,753,128 compared to the end of the previous year[10] - The company's total liabilities increased to CNY 626.18 million from CNY 360.26 million, reflecting a rise of 73.9%[34] - The company's long-term borrowings increased by 1,641.03% compared to the end of the previous year, reflecting new long-term debt[19] - The company’s deferred tax liabilities increased by 956.15% year-on-year, mainly due to the acquisition of a non-controlling enterprise[19] - Fixed assets increased to CNY 452.72 million from CNY 420.72 million, representing a growth of 7.5%[33] Cash Flow - Cash flow from operating activities showed a significant increase of 487.58% to CNY 103,768,427.50 year-to-date[10] - The net cash flow from operating activities increased by 487.58% year-on-year, primarily due to higher sales receipts and increased export tax refunds[22] - The net cash flow from operating activities was CNY 115,983,639.93, significantly higher than CNY 29,993,670.67 in the same period last year, indicating a substantial improvement[60] - Cash inflow from borrowing reached CNY 209,480,123.18, compared to CNY 60,000,000.00 in the previous period, indicating a substantial increase in debt financing[61] - Cash outflow from investment activities totaled CNY 213,656,404.73, compared to CNY 44,826,897.69 in the previous period, indicating a significant increase in investment spending[60] Expenses - The company reported a 330.59% increase in financial expenses, mainly due to interest accruals on bonds and increased exchange losses[20] - Total operating costs for Q3 2017 were CNY 209.70 million, up from CNY 131.92 million, reflecting a year-on-year increase of 58.7%[40] - Sales expenses increased to ¥9,721,709.65 from ¥6,847,360.54 year-over-year[41] - Management expenses rose to ¥26,959,194.49, compared to ¥22,826,189.79 in the previous year[41] - The total operating expenses increased to CNY 319.56 million from CNY 224.17 million, reflecting a rise of 42.5%[51] Shareholder Information - The total number of shareholders at the end of the reporting period was 22,868[15] - The company completed the exercise of stock options, increasing total shares from 40,977 million to 40,977.7550 million[10] - The equity attributable to shareholders of the parent company was CNY 751.63 million, compared to CNY 728.86 million, showing a slight increase of 3.1%[35] Government Support and Future Plans - The company received government subsidies amounting to CNY 11,193,438.93 during the reporting period[12] - The company is progressing with a non-public stock issuance project, which has received preliminary approval from the China Securities Regulatory Commission[23] - The company plans to continue expanding its market presence and investing in new technologies, although specific strategies were not detailed in the provided content[40]