Financial Performance - The company's operating revenue for 2020 was approximately ¥475.61 million, a decrease of 14.08% compared to ¥553.53 million in 2019[17]. - The net profit attributable to shareholders for 2020 was approximately ¥31.84 million, down 38.81% from ¥52.03 million in 2019[17]. - The basic earnings per share for 2020 was ¥0.130, a decrease of 38.10% from ¥0.210 in 2019[17]. - The net profit after deducting non-recurring gains and losses for 2020 was approximately ¥26.18 million, a decrease of 46.61% from ¥49.03 million in 2019[17]. - The company's total revenue for 2020 was ¥475,607,304.54, a decrease of 14.08% compared to ¥553,530,167.07 in 2019[42]. - The net profit attributable to the parent company was CNY 3,183.75 million, down 38.81% year-on-year[38]. - The company reported a positive profit for the reporting period, with net profit attributable to ordinary shareholders being positive, but no cash dividend distribution plan was proposed[119]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to approximately ¥5.03 million, compared to a negative cash flow of ¥42.42 million in 2019, marking an increase of 111.86%[17]. - Total assets at the end of 2020 were approximately ¥1.29 billion, an increase of 3.19% from ¥1.25 billion at the end of 2019[17]. - The company's cash and cash equivalents decreased by 38.52% compared to the beginning of the period due to the impact of the pandemic on sales[38]. - The company's short-term borrowings increased by 76.47% compared to the beginning of the year, with a debt-to-asset ratio of 22.45%[38]. - Cash and cash equivalents decreased from 164,168,678 (13.13%) at the beginning of 2020 to 100,926,180 (7.83%) at the end of 2020, a reduction of 5.30% due to external payments and decreased sales receipts[65]. Market and Sales Performance - In 2020, the company sold 32,276 pianos, a decrease of 16.04% year-on-year, with revenue of 475.61 million yuan, down 14.08% compared to the previous year[29]. - Domestic sales accounted for 89.71% of total revenue at ¥426,674,843.04, down 12.86% from the previous year[42]. - The sales volume of upright pianos decreased by 15.88% to 30,904 units, while production volume fell by 27.27% to 24,874 units[46]. - The company reported a 34.87% decline in electric piano sales volume, totaling 1,115 units, while production increased by 33.85%[48]. Research and Development - The company invested ¥20,398,300 in R&D, representing 4.29% of sales revenue, focusing on improving product quality and developing new products[39]. - The company has a stable R&D team with 82 personnel, focusing on continuous innovation and collaboration with international piano manufacturers[35]. - The company launched 5 new product projects during the reporting period and obtained 4 new patents, bringing the total number of authorized patents to 79[33]. - The company has six ongoing R&D projects, including four upright pianos and one smart piano[39]. Strategic Initiatives - The company is actively developing smart pianos and enhancing its online and offline art education training systems[30]. - The company aims to expand its market by promoting mid-to-high-end traditional pianos and smart piano products[30]. - The company aims to gradually release production capacity and enhance market recognition for its new products, anticipating improved financial performance over time[87]. - The company plans to expand into other musical instruments like guitars and violins while promoting smart piano products through mobile internet technology[103]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of ¥0.14 per 10 shares, based on a total of 253,559,880 shares[5]. - The proposed cash dividend for 2020 is CNY 0.14 per 10 shares, totaling CNY 3,549,838.32, which represents 100% of the distributable profit[116]. - The company distributed a cash dividend of CNY 7,100,222.64 in 2019, which was 13.65% of the consolidated net profit attributable to ordinary shareholders[117]. - The total number of shares decreased from 253,579,380 to 253,559,880, a reduction of 19,500 shares due to the cancellation of unvested restricted stock[164]. Governance and Compliance - The company has established a comprehensive governance structure, including rules for shareholder meetings, board meetings, and management guidelines, ensuring clear responsibilities and procedures for governance[199]. - The company operates independently from its controlling shareholders, maintaining autonomy in business, assets, personnel, and finances, in compliance with relevant laws and regulations[200]. - The company has not faced any penalties or rectification issues during the reporting period[135]. - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[120]. Challenges and Risks - The company has indicated potential risks in its future development, which are discussed in detail in the management discussion and analysis section[5]. - The company faced challenges in achieving expected returns from projects due to increased competition and a sluggish economic environment, resulting in a decline in sales revenue[87]. - The piano industry is facing supply-demand mismatches and increasing competition, with traditional pianos struggling to meet modern consumer demands[101]. Community and Environmental Responsibility - The company has established an ISO14001 environmental management system and OHSAS18001 occupational health and safety management system, receiving the title of "Ningbo Environmental Protection Model (Green) Factory"[153]. - The company has actively supported music education by collaborating with local schools and providing teaching equipment, enhancing cultural life for the community[156]. - The company has sponsored various music competitions and events, promoting local music education and cultural activities[157].

Financial Performance - Net profit attributable to shareholders decreased by 48.25% to CNY 11,595,418.40 for the current period[8] - Operating revenue slightly decreased by 0.05% to CNY 142,940,400.96 compared to the same period last year[8] - The company reported a decrease of 19.58% in revenue for the year-to-date period compared to the previous year[8] - The net profit for the third quarter of 2020 reached CNY 11,475,423.40, compared to CNY 10,956,379.92 in the previous year, indicating an increase of about 4.7%[44] - The total profit for the third quarter of 2020 was CNY 13,304,269.37, compared to CNY 12,351,434.32 in the previous year, marking an increase of about 7.7%[44] - The operating profit for the third quarter of 2020 was CNY 13,504,714.14, an increase from CNY 12,042,245.84 in the same period last year, representing a growth of approximately 12.1%[44] - The company reported a net profit margin improvement, with net profit increasing due to better cost management despite lower revenues[42] Cash Flow and Liquidity - Cash flow from operating activities increased significantly by 342.61% to CNY 14,823,379.56[8] - Cash and cash equivalents decreased by 44.67% to ¥90,833,998.19 from ¥164,168,678.68 due to reduced sales revenue and increased investment in projects[21] - The net cash flow from operating activities for the year-to-date period was -¥38,697,130.94, an improvement from -¥57,445,926.84 in the same period last year[61] - The company reported a net cash flow from operating activities of -37,282,021.64 CNY, which is an improvement from -56,491,188.95 CNY in the previous period[65] - Total cash and cash equivalents at the end of the period were 75,853,888.86 CNY, down from 112,324,427.44 CNY in the previous period[66] - Cash inflow from operating activities totaled 287,323,285.41 CNY, while cash outflow was 324,605,307.05 CNY, resulting in a negative cash flow[65] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 20,872[12] - The largest shareholder, Ningbo Beilun Helen Investment Co., Ltd., holds 27.34% of the shares[12] Assets and Liabilities - Total assets increased by 3.10% to CNY 1,288,678,295.07 compared to the end of the previous year[8] - Total liabilities increased to CNY 298,397,056.11 from CNY 276,537,179.67, reflecting a growth in current liabilities[36] - The company's total assets as of September 30, 2020, amounted to CNY 1,150,222,430.22, compared to CNY 1,082,253,533.29 at the end of 2019[38] - Cash and cash equivalents decreased to CNY 86,418,423.65 from CNY 158,631,811.95, indicating a significant reduction in liquidity[36] - The company’s inventory increased to ¥290,778,871.80 from ¥267,173,289.11, reflecting a strategic decision to maintain stock levels[32] Investment and Expenses - Short-term borrowings increased by 152.43% to ¥91,313,050.00 from ¥36,173,626.25, mainly due to an increase in credit loans[21] - Financial expenses rose by 132.11% to ¥1,261,354.86, primarily due to increased exchange losses and loan interest[21] - Investment activities resulted in a cash outflow of ¥80,012,508.12, an increase of 18.73% from ¥67,391,178.80, due to increased investment in projects[23] - The company recorded a financial expense of ¥1,177,713.31, a significant increase from a financial income of ¥3,958,794.59 in the previous year, primarily due to increased interest expenses[55] - The company reported a decrease in research and development expenses to CNY 5,243,578.66 from CNY 5,378,294.87 in the previous year, a reduction of about 2.5%[46] Future Outlook - Future outlook includes plans for market expansion and potential new product launches to drive growth[42]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥178,829,631.63, a decrease of 30.44% compared to ¥257,097,625.58 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥8,428,360.65, down 69.60% from ¥27,729,083.94 in the previous year[20]. - The basic earnings per share decreased to ¥0.0334, a decline of 69.72% compared to ¥0.1103 in the same period last year[20]. - The operating revenue for the reporting period was 178.83 million yuan, a year-on-year decrease of 30.44%[28]. - The net profit attributable to the parent company was 842.84 yuan, a year-on-year decrease of 69.60%[29]. - The total comprehensive income for the period was 8.42 million, a decrease of 229% compared to the previous period[164]. - The total profit for the first half of 2020 was ¥9,165,723.83, down 70.0% from ¥30,508,721.86 in the same period of 2019[148]. - The company reported a decrease in sales revenue from 230,704,663.33 CNY in the first half of 2019 to 156,460,679.84 CNY in the same period of 2020[159]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,317,506,429.34, an increase of 5.41% from ¥1,249,875,734.39 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were ¥971,769,528.93, a slight increase of 0.24% from ¥969,462,385.36 at the end of the previous year[20]. - Total liabilities amounted to CNY 342,090,382.40, an increase from CNY 276,537,179.67, representing a rise of approximately 23.7%[139]. - Current liabilities rose to CNY 330,272,425.97, compared to CNY 264,669,223.24, marking an increase of about 24.7%[139]. - Cash and cash equivalents decreased to CNY 123,499,922.54 from CNY 158,631,811.95, a decline of approximately 22.1%[143]. Cash Flow - The net cash flow from operating activities was -¥53,520,510.50, a decrease of 4.26% compared to -¥51,335,841.17 in the same period last year[20]. - The net cash flow from financing activities increased significantly by 260.46% to ¥64,259,420.28, mainly due to an increase in short-term borrowings[43]. - The cash inflow from financing activities increased significantly to 118,298,850.00 CNY, compared to only 8,207,450.00 CNY in the first half of 2019[157]. - The ending balance of cash and cash equivalents decreased to 120,301,041.99 CNY from 149,253,299.84 CNY at the end of the previous period[158]. Market and Competition - The company faces significant market competition risks if it cannot enhance resource integration and expand market share[5]. - The impact of the COVID-19 pandemic has significantly affected the company's piano sales and art education business, prompting the company to adapt its operations accordingly[7]. - The company's piano sales volume was 10,764 units, a year-on-year decrease of 37.89%[28]. - The company reported that traditional piano demand is declining due to increased competition and changing consumer preferences towards high-tech products[76]. Research and Development - R&D expenses amounted to CNY 9.45 million, representing 5.28% of total revenue[39]. - The company launched 5 new product projects during the reporting period and obtained 4 new patents[34]. - The company has established a technical innovation team with 85 R&D personnel, maintaining a stable workforce[36]. - The company is focusing on enhancing its research and development capabilities for new technologies[166]. Strategic Initiatives - The company plans to focus on expanding sales in second and third-tier cities through new product development and marketing channel expansion[5]. - The company has established a strategic partnership with the Central Conservatory of Music to develop and promote the "Central Music Continuing Education - Hailun Smart Piano Classroom" project[27]. - The company continues to focus on sustainable development and brand building, aiming to enhance product value and expand into the arts education sector[27]. - The company plans to actively select new fundraising investment projects following the feasibility study report[72]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for this reporting period[8]. - The total number of ordinary shareholders at the end of the reporting period was 22,735[119]. - The largest shareholder, Ningbo Beilun Helen Investment Co., Ltd., holds 27.34% of the shares, totaling 69,316,800 shares[120]. - The company did not engage in any major asset or equity sales during the reporting period[81][82]. Compliance and Governance - The financial report for the first half of 2020 was not audited[135]. - The company has established an environmental emergency response plan, which has been filed with relevant government regulatory departments[111]. - The company has a total of 6 subsidiaries included in the consolidated financial statements for the reporting period[183]. - The company adheres to the accounting policies and estimates as per the relevant accounting standards, including provisions for bad debts and depreciation of fixed assets[186].

Financial Performance - Total revenue for Q1 2020 was ¥69,426,819.75, a decrease of 44.76% compared to ¥125,681,978.49 in the same period last year[8] - Net profit attributable to shareholders was ¥2,153,705.25, down 83.52% from ¥13,068,234.22 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥1,427,961.64, a decline of 88.04% from ¥11,940,508.83 in the previous year[8] - Basic earnings per share decreased by 80.00% to ¥0.01 from ¥0.05 year-on-year[8] - The company's total revenue for the reporting period was CNY 69.43 million, a decrease of 44.76% year-on-year due to reduced sales volume[16] - The net profit attributable to the parent company was CNY 2.15 million, down 83.52% year-on-year, primarily due to decreased sales revenue and reduced investment income[16] - The company reported a total asset value of ¥1,270,845,625.29 as of March 31, 2020, compared to ¥1,249,875,734.39 at the end of 2019, reflecting a growth of about 1.7%[44] - The total profit for the first quarter was CNY 2,327,996.59, a decrease of 83.7% from CNY 14,186,936.44 year-over-year[54] Cash Flow and Liquidity - Net cash flow from operating activities was -¥68,434,625.76, worsening by 108.13% compared to -¥32,881,353.82 in the same period last year[8] - Cash flow from operating activities was negative CNY 68.43 million, a decline of 108.13% year-on-year due to reduced sales collections and increased employee payments[16] - As of March 31, 2020, the company's cash and cash equivalents decreased to ¥123,097,573.88 from ¥164,168,678.68 as of December 31, 2019, representing a decline of approximately 25.1%[42] - Total cash and cash equivalents at the end of the period amounted to 106,089,679.52 CNY, down from 182,924,340.79 CNY in the previous period, reflecting a decrease of approximately 42%[66] - The company incurred total operating cash outflows of 107,856,213.06 CNY, compared to 144,250,628.29 CNY in the previous period, reflecting a decrease of approximately 25%[64] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,270,845,625.29, an increase of 1.68% from ¥1,249,875,734.39 at the end of the previous year[8] - Total liabilities increased to CNY 294,935,774.38 from CNY 276,537,179.67, indicating a rise in financial obligations[49] - The total equity attributable to shareholders rose to CNY 972,105,593.39 from CNY 969,462,385.36, showing a slight increase in shareholder value[47] - The company has a remaining balance of raised funds amounting to ¥87,130,242.80, with ¥11,813,663.10 being excess funds not yet utilized[35] Sales and Market Performance - The number of pianos sold during the reporting period was 3,700 units, representing a year-on-year decline of 56.69%[17] - The company reported a decline in product sales due to the impact of the COVID-19 pandemic on the arts training industry[31] - The company plans to focus on market expansion and new product development to improve future performance[60] Research and Development - Research and development expenses totaled CNY 3.88 million, accounting for 5.59% of the company's revenue[19] - The company has six ongoing R&D projects, including a smart piano project and several upright piano projects[20] - The company reported a decrease in research and development expenses to CNY 3,882,568.10 from CNY 5,228,115.96, suggesting a potential shift in investment strategy[53] Risks and Challenges - The company faces significant industry risks due to increasing competition in the domestic piano market, necessitating resource integration and market share expansion[22] - Management risks are present as the company scales, requiring improved internal processes and management systems to maintain competitiveness[24] - The ongoing impact of COVID-19 poses risks to the company's operations, with a focus on adapting strategies based on the evolving situation[26] - The company has faced challenges in the art training industry due to the pandemic, affecting its market expansion efforts[32] Investment and Capital Projects - Investment income decreased by 74.55% to CNY 1.31 million, primarily due to reduced returns from external investments[16] - The company is expanding into the smart piano and online/offline art education markets, which presents both opportunities and competitive challenges[25] - The piano production expansion project has achieved 89.26% of its planned investment, totaling 11,050 million[30] - The company is actively planning and prudently selecting new fundraising investment projects following the adjustment of existing projects[33]

Financial Performance - The total operating revenue for 2019 was ¥553,530,167.07, representing a 4.95% increase compared to ¥527,423,883.70 in 2018[16]. - The net profit attributable to shareholders of the listed company decreased by 4.55% to ¥52,030,578.40 from ¥54,512,659.92 in the previous year[16]. - The net profit after deducting non-recurring gains and losses increased by 7.84% to ¥49,029,390.73 from ¥45,466,370.07 in 2018[16]. - The basic earnings per share for 2019 was ¥0.21, a decrease of 4.55% from ¥0.22 in 2018[16]. - The diluted earnings per share also stood at ¥0.21, reflecting the same decrease of 4.55% compared to the previous year[16]. - The weighted average return on equity was 5.72%, down from 6.31% in 2018, indicating a decline of 0.59%[16]. - The company achieved operating revenue of 553.53 million, a year-on-year increase of 4.95%[28]. - The net profit attributable to shareholders was 52.03 million, a year-on-year decrease of 4.55%[28]. - The company’s total liabilities increased, but the asset-liability ratio remained stable at 22.13%[42]. - The company reported a net profit of CNY 38,812,237.19, resulting in a distributable profit of CNY 34,931,013.47 after reserve allocation[117]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥42,416,466.82, a decline of 184.36% compared to ¥50,282,885.25 in 2018[16]. - Cash and cash equivalents decreased by 50.10% compared to the beginning of the year, primarily due to prepayments for goods and investments in art education equity[31]. - The company reported a net cash flow from financing activities of CNY 6,406,584.95, a decrease of 76.53% compared to the previous year, primarily due to the repayment of short-term loans[64]. - The company reported a significant increase in user data, with a 32% growth in active users year-over-year, indicating strong market demand[72]. - The company raised a total of approximately 31,476.20 million CNY in its initial public offering, with 12,805.20 million CNY being over-raised, and as of December 31, 2019, 31,231.39 million CNY has been utilized, leaving a remaining balance of 1,396.32 million CNY[81]. Research and Development - The company increased its R&D investment, resulting in a rise in related expenses by approximately 2.38 million, a year-on-year increase of 11.94%[29]. - The company invested ¥22.35 million in R&D, accounting for 4.04% of operating revenue, with an increase of 11.94% in R&D spending year-on-year[43]. - The company has a stable R&D team of 84 personnel, with low turnover rates, contributing to sustained innovation capabilities[38]. - The company has extended its research and development focus towards modern fields such as electric pianos and smart pianos, leading to project delays[92]. - The company has completed 6 R&D projects, including various upright and grand pianos, all of which are self-initiated projects[62]. Market and Sales - E-commerce platform sales revenue reached 43.98 million, a year-on-year increase of 43.09%[28]. - The domestic market contributed 88.46% of total revenue, with a year-on-year growth of 4.22%[49]. - The sales of upright pianos accounted for 79.54% of total revenue, with a growth of 4.94% year-on-year[48]. - The company expanded its stake in several art education companies to 49%, enhancing its strategic position in the education sector[44]. - The company is focusing on transforming its business model towards green low-carbon economic practices amid rising costs and market pressures[30]. Corporate Governance and Shareholder Relations - The company has a clear cash dividend policy that aligns with its articles of association and aims to protect the rights of investors[112]. - The company has committed to fulfilling all promises made regarding shareholder rights and related transactions during the reporting period[120]. - The company maintains a policy of avoiding unnecessary related party transactions and adheres to market principles in its dealings[121]. - The company has not proposed any stock dividends or capital increases from reserves in both 2018 and 2019[116][117]. - The company has not engaged in any related party transactions during the reporting period[136]. Social Responsibility and Environmental Initiatives - The company actively fulfilled its social responsibilities, focusing on environmental protection and safety production[148]. - The company has committed to environmental protection by purchasing new equipment to optimize the working environment and reduce pollution[153]. - The company has established the ISO14001 environmental management system and OHSAS18001 occupational health and safety management system, contributing to its recognition as a "Ningbo Environmental Model (Green) Factory"[150]. - The company collaborates with Ningbo Vocational Technical College to cultivate piano manufacturing talent and supports local music education through various initiatives[151]. Employee and Management Structure - The company employed a total of 1,334 staff, including 638 in the parent company and 696 in major subsidiaries[193]. - The total remuneration for directors and senior management amounted to CNY 3.0828 million during the reporting period[190]. - The company has established a comprehensive personnel training system covering various aspects including vocational skills and safety production[195]. - The governance structure of the company complies with the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange[198]. - The company has maintained a stable leadership structure, with all current directors and senior management retaining their positions since their appointments[184].

Financial Performance - Operating revenue for the reporting period was ¥143,010,282.02, representing a year-on-year increase of 4.31%[8] - Net profit attributable to shareholders decreased by 1.14% to ¥10,966,185.04 compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses was ¥10,078,077.74, up 2.48% year-on-year[8] - The basic earnings per share was ¥0.0436, down 1.13% from the previous year[8] - Operating revenue for the first nine months rose by 3.88% to ¥400.11 million from ¥385.17 million[17] - Net profit attributable to the parent company decreased by 6.76% to ¥38.70 million from ¥41.50 million, mainly due to increased promotional and R&D expenses[17] - Total operating revenue for Q3 2019 was CNY 400,107,907.60, an increase of 3.8% compared to CNY 385,168,397.17 in the same period last year[39] - Net profit for Q3 2019 was CNY 38,719,182.24, a decrease of 7.4% from CNY 41,870,068.29 in Q3 2018[40] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,168,880,014.81, an increase of 3.21% compared to the previous year[8] - The company reported total assets amounted to CNY 1,132,530,477.64, with current assets at CNY 720,572,348.03 and non-current assets at CNY 411,958,129.61[53] - The company’s total liabilities reached CNY 238,238,631.74, with current liabilities at CNY 238,038,631.74 and non-current liabilities at CNY 200,000.00[54] - The company reported inventory of CNY 234,137,752.14, reflecting a stable inventory management strategy[53] - The company’s short-term borrowings stood at CNY 37,642,800.00, indicating a manageable debt level[54] Shareholder Information - Net assets attributable to shareholders of the listed company amounted to ¥942,547,338.26, reflecting a growth of 5.91% year-over-year[8] - The total number of ordinary shareholders at the end of the reporting period was 25,659[11] - The largest shareholder, Ningbo Beilun Helen Investment Co., Ltd., holds 27.33% of the shares, totaling 69,316,800 shares[11] Cash Flow - The net cash flow from operating activities was negative at -¥57,445,926.84, a decline of 288.58% year-on-year[8] - The net cash flow from operating activities worsened by 288.58%, resulting in a deficit of ¥57.45 million compared to a deficit of ¥14.78 million in the previous year[18] - The net cash flow from financing activities showed a significant decline of 263.26%, resulting in a deficit of ¥41.98 million due to short-term loan repayments[18] - The ending balance of cash and cash equivalents was 121,644,116.73, compared to 99,569,009.70 in the previous period, showing a slight increase despite negative cash flows[48] Expenses and Costs - The company reported a 14.21% increase in selling expenses, totaling ¥33.53 million, due to higher promotional and online sales costs[17] - Total operating costs for Q3 2019 were CNY 368,683,220.84, up 7% from CNY 344,607,918.93 year-on-year[39] - The company reported a decrease in sales expenses to CNY 33,530,769.25 from CNY 29,360,080.14 year-on-year, indicating a cost control effort[39] Investments - Long-term equity investments surged by 120.62% to ¥234.43 million from ¥106.26 million, driven by increased investments in Helen Roman and art education[16] - The company achieved investment income of CNY 12,571,401.63, an increase from CNY 9,123,149.81 in the previous year[39] Compliance and Audit - The company has not undergone an audit for the third quarter report, which may affect investor confidence[59] - The company is in compliance with new financial instrument standards, ensuring adherence to regulatory requirements[59]

Financial Performance - Total revenue for the first half of 2019 was CNY 257,097,625.58, an increase of 3.64% compared to CNY 248,062,564.49 in the same period last year[19]. - Net profit attributable to shareholders decreased by 8.82% to CNY 27,729,083.94 from CNY 30,409,910.26 year-on-year[19]. - Basic earnings per share decreased by 8.84% to CNY 0.1103 from CNY 0.1210 in the same period last year[19]. - The company achieved operating revenue of 257.10 million CNY, representing a year-on-year increase of 3.64%[27]. - The net profit attributable to shareholders was 27.73 million CNY, a decrease of 2.68 million CNY or 8.82% year-on-year[27]. - The company reported a total comprehensive income for the first half of 2019 was CNY 46,637,277.06, compared to CNY 30,664,289.91 in 2018, showing a significant increase[141]. - The company’s total profit for the first half of 2019 was CNY 30,508,721.86, down from CNY 35,743,397.78 in the same period of 2018, a decrease of about 14.5%[140]. - The company reported a net profit margin for the period was reported at 18.3%, indicating improved operational efficiency[159]. Cash Flow and Liquidity - Net cash flow from operating activities showed a significant decline, amounting to -CNY 51,335,841.17, a decrease of 1,579.14% compared to -CNY 3,057,262.54 in the previous year[19]. - Cash and cash equivalents decreased by 54.64% due to increased external investments and project construction costs[30]. - The total cash and cash equivalents at the end of the period were 149,253,299.84 yuan, down from 203,772,612.52 yuan at the end of the previous year[150]. - Total cash inflow from operating activities was 250,590,551.04 yuan, while cash outflow was 301,926,392.21 yuan, resulting in a net cash flow deficit[149]. - The company paid 38,687,800.00 yuan in debt repayment during the first half of 2019, significantly higher than 9,830,700.00 yuan in the same period of 2018[150]. Assets and Liabilities - Total assets increased by 2.58% to CNY 1,161,761,383.51 from CNY 1,132,530,477.64 at the end of the previous year[19]. - The total liabilities decreased to CNY 227,118,867.10 from CNY 238,238,631.74, a reduction of about 4.7%[132]. - The total equity attributable to the parent company at the end of the reporting period was 894 million, a decrease of 22 million compared to the previous period[157]. - Inventory levels rose to CNY 265,770,489.83 from CNY 234,137,752.14, an increase of about 13.5%[130]. Research and Development - R&D investment rose by about 2.3 million CNY to enhance product innovation and quality[28]. - The company launched 6 independent R&D projects, including 4 traditional upright pianos, 1 smart piano, and 1 grand piano, to enhance product experience and innovation[40]. - The company has a stable R&D team with 83 personnel, contributing to its technological innovation capabilities[36]. - Research and development expenses amounted to RMB 10,300,516.81, which is 4.01% of total revenue, reflecting an increase of 11.46% from RMB 9,241,549.54 in the previous year[43]. Strategic Initiatives - The company plans to focus on expanding sales regions, particularly targeting second and third-tier cities, to mitigate market concentration risks[5]. - The company will enhance product development capabilities and production technology through fundraising investment projects[6]. - The company is committed to expanding its market presence through strategic partnerships and technological advancements in piano manufacturing[40]. - The company plans to enhance its profitability by expanding into the smart piano and online-offline art education training markets, although it faces challenges in breaking traditional teaching models[84]. Shareholder and Governance - No cash dividends or stock bonuses will be distributed to shareholders for this period[7]. - The company did not engage in any related party transactions during the reporting period[96]. - The company implemented a restricted stock incentive plan in 2018, granting 2.342 million shares to 60 incentive objects[95]. - The company has established an environmental emergency response plan, which has been filed with relevant government authorities[106]. Market Conditions - The company faced a decline in sales revenue due to intensified market competition and a sluggish economic environment, resulting in a failure to achieve significant growth[69]. - The traditional piano market is experiencing weak demand growth due to increased competition and a sluggish economic environment, impacting sales revenue[74]. - Future guidance indicates a cautious outlook due to market volatility and competitive pressures[164]. Financial Reporting and Compliance - The half-year financial report has not been audited[90]. - The company adheres to the accounting standards, ensuring that the financial statements accurately reflect its financial position as of June 30, 2019, and the operating results and cash flows for the year 2019[177]. - The company’s financial statements are prepared based on the going concern assumption, ensuring that it can continue its operations in the foreseeable future[175].

Financial Performance - The company's operating revenue for 2018 was CNY 527,423,883.70, representing a 12.30% increase compared to CNY 469,657,839.79 in 2017[18]. - The net profit attributable to shareholders for 2018 was CNY 54,512,659.92, a 33.02% increase from CNY 40,980,511.46 in 2017[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 45,466,370.07, reflecting a 53.16% increase from CNY 29,686,008.73 in 2017[18]. - The basic earnings per share for 2018 was CNY 0.2166, up 32.80% from CNY 0.1631 in 2017[18]. - The total assets at the end of 2018 amounted to CNY 1,132,530,477.64, a 12.94% increase from CNY 1,002,797,900.52 at the end of 2017[18]. - The net assets attributable to shareholders at the end of 2018 were CNY 889,969,340.21, a 6.59% increase from CNY 834,943,694.94 at the end of 2017[18]. - The company reported a net cash flow from operating activities of CNY 50,282,885.25, a decrease of 21.17% from CNY 63,786,114.43 in 2017[18]. - The company achieved total operating revenue of CNY 52,742.39 million, representing a year-on-year growth of 12.3%[30]. - The net profit attributable to shareholders was CNY 5,451.27 million, an increase of 33.02% compared to the previous year[30]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 4,546.64 million, up 53.16% year-on-year[30]. - The company received government subsidies totaling CNY 7.85 million, reflecting a 7.9% increase from the previous year[31]. Product Development and Innovation - The company launched 9 new product projects and applied for 11 new patents, with 9 patents granted, including 2 design patents and 7 utility model patents[31]. - The company is actively developing smart pianos and has partnered with Disney to create the Hailun-Disney series of pianos[28]. - The company has a total of 65 authorized patents and 1 software copyright as of the end of 2018[31]. - The company expanded its piano product line by launching a mid-to-high-end Vienna traditional piano series and promoting smart piano products, integrating online and offline art education training systems[34]. - The company has established a stable R&D team of 83 personnel, contributing to its innovation capabilities[42]. - The company has been recognized as a national cultural industry demonstration base and is a key player in the domestic piano industry, maintaining a leading position in sales[38]. Market Expansion and Strategy - The company plans to expand its sales regions, focusing on second and third-tier cities, to mitigate market concentration risks[6]. - The company aims to enhance its product development capabilities and production technology through fundraising projects[7]. - The company established a subsidiary in Yingkou to better serve the northern market and alleviate environmental pressures through resource utilization[29]. - The company is focusing on high-end smart piano development and expanding into the arts education sector to drive future growth[44]. - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge[71]. Sales and Revenue Breakdown - The revenue from upright pianos was ¥419,529,992.14, accounting for 79.54% of total revenue, with a year-on-year growth of 13.46%[52]. - The revenue from grand pianos reached ¥52,042,177.62, which is 9.87% of total revenue, showing a year-on-year increase of 14.01%[52]. - Domestic sales contributed ¥469,793,187.83, making up 89.07% of total revenue, with a year-on-year growth of 11.48%[52]. - International sales amounted to ¥57,630,695.87, representing 10.93% of total revenue, with a year-on-year increase of 19.45%[52]. - The company sold 38,197 pianos during the reporting period, an increase of 3,081 units or 8.8% year-over-year, with piano sales revenue growing by 13.52%[32]. Financial Management and Investments - Long-term equity investments increased by 1,901.67% compared to the previous year, primarily due to increased external investments[36]. - Cash and cash equivalents grew by 65.27% year-over-year, mainly due to the redemption of financial products[36]. - The company’s asset-liability ratio stands at 21.04%, indicating a stable financial condition[45]. - The company reported a 24.79% increase in cash inflow from operating activities, totaling CNY 651,514,397.61 in 2018 compared to CNY 522,099,262.42 in 2017[65]. - The company’s total material costs for instrument manufacturing were CNY 316,088,697.97, which accounted for 83.87% of the operating costs in 2018[57]. Corporate Governance and Compliance - The company has not faced any major litigation or arbitration matters during the reporting period[126]. - The company has not encountered any penalties or rectification situations during the reporting period[127]. - The company has not engaged in any significant related party transactions during the reporting period[131]. - The company has established a comprehensive training system for new and existing employees[187]. - The company strictly adheres to the Labor Contract Law and pays various employee insurances[186]. Social Responsibility and Community Engagement - The company actively supports music education by collaborating with local schools and providing teaching resources, enhancing cultural life in the community[148]. - The company sponsors various music competitions and events, promoting local music education and cultural activities[149]. - The company has been recognized as a key cultural export enterprise and has received the title of "Ningbo Environmental Model (Green) Factory" for its environmental management efforts[145]. - The company has implemented ISO14001 and OHSAS18001 management systems to identify and mitigate environmental and occupational health hazards[145]. Shareholder and Stock Information - The company implemented a restricted stock incentive plan in 2018, granting 2.342 million shares to 60 incentive targets on September 12, 2018[130]. - The shareholding ratio of the controlling shareholders decreased from 44.67% to 44.26% after the stock grant, without changing the actual controller[162]. - The total number of shareholders increased from 24,114 to 27,155 during the reporting period[163]. - The company’s independent directors approved the incentive plan and the list of incentive targets[157]. - The total remuneration for directors and senior management amounted to 3.0828 million CNY[180].

Financial Performance - Total revenue for the first quarter was ¥125,681,978.49, an increase of 11.53% compared to ¥112,690,564.42 in the same period last year[8]. - Net profit attributable to shareholders decreased by 8.63% to ¥13,068,234.22 from ¥14,303,123.24 year-on-year[8]. - Basic earnings per share decreased by 8.61% to ¥0.0520 from ¥0.0569 in the same period last year[8]. - Operating revenue increased by 11.53% year-on-year, driven by enhanced market promotion and brand influence leading to increased sales volume[17]. - Net profit attributable to shareholders of the parent company was 13.0682 million yuan, a decrease of 8.63% year-on-year, mainly due to increased sales promotion and e-commerce service expenses[17]. - The net profit for the first quarter of 2019 was CNY 13,088,303.48, a decrease of 8.9% from CNY 14,358,390.43 in the previous year[50]. - The net profit for the current period was ¥6,745,394.24, down 26.5% from ¥9,190,125.67 in the previous period[54]. - The total profit for the current period was ¥7,937,634.95, down 27.5% from ¥10,904,703.32 in the previous period[54]. Cash Flow and Liquidity - Net cash flow from operating activities was negative at ¥-32,881,353.82, a significant decline of 3,680.35% compared to ¥918,382.68 in the previous year[8]. - The total operating cash flow for the current period was negative at -¥32,881,353.82, compared to a positive cash flow of ¥918,382.68 in the previous period[58]. - The company reported a net cash outflow from investing activities of -¥62,517,712.19, worsening from -¥24,699,699.28 in the previous period[59]. - The cash and cash equivalents decreased by ¥101,430,079.11 during the current period, compared to a decrease of ¥24,418,031.49 in the previous period[59]. - The company's cash and cash equivalents dropped significantly to CNY 187,586,668.41 from CNY 329,016,747.52, a decrease of about 43.0%[39]. - The total cash and cash equivalents at the end of the period stood at $182.92 million, up from $130.01 million in the previous period, indicating a stronger liquidity position despite negative cash flows[63]. Assets and Liabilities - Total assets increased by 4.10% to ¥1,178,935,123.49 from ¥1,132,530,477.64 at the end of the previous year[8]. - The company's total assets as of March 31, 2019, were CNY 1,072,414,311.06, slightly down from CNY 1,084,175,798.83 at the end of 2018[47]. - Total liabilities increased to CNY 251,385,638.49 from CNY 238,238,631.74, marking a rise of approximately 5.0%[41]. - The total liabilities decreased to CNY 189,623,912.74 from CNY 209,425,655.63, a reduction of 9.5%[46]. - The company's equity attributable to shareholders was $889.97 million, consistent with the previous period, showing no dilution of shareholder value[68]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,114[11]. - The largest shareholder, Ningbo Beilun Helen Investment Co., Ltd., holds 27.33% of the shares[11]. - The company did not engage in any repurchase transactions during the reporting period[12]. Research and Development - R&D expenses totaled 5.2281 million yuan, representing 4.16% of the company's operating revenue, with six new R&D projects initiated during the reporting period[21]. - Research and development expenses for the first quarter of 2019 were CNY 5,228,115.96, an increase from CNY 4,419,505.71, indicating a growth of 18.3%[48]. - The company is focusing on enhancing R&D capabilities and expanding product models to improve product quality and brand promotion[22]. - The company has initiated six new product development projects, including smart electric pianos and upright pianos[21]. Market and Competition - The company faces industry risks due to increasing competition and is committed to strengthening resource integration and market share[23]. - The company plans to address market risks by expanding into new sales regions, particularly targeting second and third-tier cities[23]. - The company reported that traditional piano demand growth is weak due to increased market competition and a relatively sluggish economic environment[30]. Investment and Fundraising - The company has established "Helen Art Education Investment Co., Ltd." to expand its smart piano and online/offline art education training market[25]. - Total fundraising amount for the quarter reached 52,111.17 million, with 988.18 million invested during the reporting period[29]. - The company has effectively utilized its raised funds, achieving a high efficiency in fund application[32]. - The company is actively planning and prudently selecting new fundraising investment projects based on feasibility studies[32]. Operational Challenges - The company noted that increased costs from depreciation and labor have led to a decline in product gross margin[30]. - The smart piano project has not yet realized expected benefits as it is still in the market promotion phase, with production capacity yet to be fully released[30]. - The company has made adjustments to the implementation of fundraising projects, including changing the focus from piano core manufacturing to hammer manufacturing, reducing the total investment from CNY 51.05 million to CNY 26.45 million[31].

Financial Performance - The company's operating revenue for 2018 was CNY 527,423,883.70, representing a 12.30% increase compared to CNY 469,657,839.79 in 2017[17]. - The net profit attributable to shareholders for 2018 was CNY 54,512,659.92, a 33.02% increase from CNY 40,980,511.46 in 2017[17]. - The net profit after deducting non-recurring gains and losses was CNY 45,466,370.07, which is a 53.16% increase from CNY 29,686,008.73 in 2017[17]. - The total assets at the end of 2018 amounted to CNY 1,132,530,477.64, reflecting a 12.94% increase from CNY 1,002,797,900.52 at the end of 2017[17]. - The company generated a net cash flow from operating activities of CNY 50,282,885.25, which is a decrease of 21.17% compared to CNY 63,786,114.43 in 2017[17]. - The company reported a basic earnings per share of CNY 0.2166, up 32.80% from CNY 0.1631 in 2017[17]. - The weighted average return on equity increased to 6.31% in 2018 from 5.02% in 2017[17]. - The company achieved a gross margin of 28.66% in the western musical instrument manufacturing sector, which is an increase of 1.71% compared to the previous year[52]. - The company achieved a net profit of ¥48,252,406.43, with a distributable profit of ¥43,427,165.79 after a 10% statutory surplus reserve deduction[108]. - The proposed cash dividend for 2018 is ¥0.35 per 10 shares, totaling ¥8,877,115.80, leaving an undistributed profit of ¥34,550,049.99[110]. Investment and Fundraising - The company reported a profit distribution plan, proposing a cash dividend of 0.35 RMB per 10 shares based on a total of 253,631,880.00 RMB[6]. - The company recognizes potential risks associated with the implementation of fundraising projects, including economic benefits and market acceptance discrepancies[6]. - The total amount of raised funds from the company's IPO in 2012 was CNY 314.76 million, with CNY 128.05 million being excess funds. As of December 31, 2018, CNY 311.09 million had been used, leaving CNY 13.79 million remaining, which accounts for 4.38% of the total raised funds[80]. - The company raised CNY 206.35 million through a private placement in December 2015 for the development and industrialization of smart pianos and related internet systems. By December 31, 2018, CNY 68.80 million had been used, leaving CNY 154.58 million for unfinished projects[80]. - The company has committed 2,500 million of raised funds to supplement working capital permanently[88]. Product Development and Innovation - The company aims to enhance product development capabilities and expand production capacity through fundraising investment projects, addressing market demand for upgraded consumption[6]. - The company is actively developing smart pianos and has launched the "6+1" smart piano classroom, integrating Disney's animated smart piano APP tutorials[26]. - The company has transitioned from OEM production to building its own brand "HAILUN" and is expanding its sales network both domestically and internationally[26]. - The company launched 9 new product projects and applied for 11 new patents, with 9 patents granted, including 2 design patents and 7 utility model patents[30]. - The company is focusing on the development of high-end products, with significant sales increases in high-margin pianos like the Disney piano and the Vienna series, which saw a 76.54% increase in sales[31]. - The company has established a unique technology system by integrating modern high-tech with traditional piano manufacturing processes, resulting in 9 new product projects and 11 new patent applications in 2018[39]. Market Expansion and Sales Strategy - The company is focusing on expanding sales regions, particularly targeting second and third-tier cities, to mitigate market concentration risks[5]. - The company plans to leverage partnerships with music schools to better understand and meet the evolving needs of piano consumers[5]. - The company is actively exploring new sales regions and partnerships with music institutions to capture emerging market demands[100]. - The company has positioned itself as a leader in the high-end piano market, with production, sales, and exports ranking second in the domestic market[43]. Risk Management - The company acknowledges risks related to technological advancements and market demand changes, which could impact product competitiveness[5]. - The company faces significant industry competition and must strengthen resource integration to increase market share[5]. - The company emphasizes the importance of timely understanding of key technological developments in the piano production industry[5]. - The company is facing risks related to technology and R&D, requiring a strong emphasis on manufacturing technology research to avoid market loss[100]. Corporate Governance and Compliance - The company has committed to not engaging in any competitive business activities that could conflict with its main operations[114]. - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[113]. - The company has established independent operations and governance, ensuring no interference from controlling shareholders, maintaining a complete business and asset independence[191]. - The company has committed to maintaining independence from controlling shareholders in business, personnel, assets, institutions, and finances, with no shared operations or resources[195]. - The company has implemented various channels for investor communication, including a dedicated investor relations management phone line and email[194]. Social Responsibility and Community Engagement - The company is committed to fulfilling social responsibilities, focusing on employee welfare and environmental protection[143]. - The company actively supports local employment by prioritizing the recruitment of local university graduates and providing job opportunities for farmers who have lost their land[148]. - The company sponsors various music events and competitions across the country, enhancing local cultural activities and promoting music education[148]. Employee and Management Structure - The company employed a total of 1,325 staff, including 649 in the parent company and 676 in major subsidiaries[182]. - The company has established a comprehensive training system covering various aspects such as vocational skills and safety production[186]. - The management team includes experienced professionals with backgrounds in various sectors, ensuring effective governance and operational oversight[175]. - The company has a diverse management team with significant experience in the industry, contributing to its strategic direction and operational success[175].