Financial Performance - The company's operating revenue for 2018 was ¥871,902,385.03, a decrease of 10.41% compared to ¥973,161,986.59 in 2017[22]. - The net profit attributable to shareholders for 2018 was ¥135,822,633.51, down 13.66% from ¥157,307,993.01 in 2017[22]. - The net profit after deducting non-recurring gains and losses was ¥102,541,509.27, a decline of 26.14% compared to ¥138,824,744.26 in 2017[22]. - The total assets at the end of 2018 were ¥2,623,550,933.13, an increase of 2.85% from ¥2,550,857,931.95 at the end of 2017[22]. - The net assets attributable to shareholders at the end of 2018 were ¥2,157,900,549.94, up 5.10% from ¥2,053,126,273.17 at the end of 2017[22]. - The basic earnings per share for 2018 was ¥0.33, a decrease of 23.26% from ¥0.43 in 2017[22]. - The cash flow from operating activities for 2018 was ¥229,959,676.87, down 4.42% from ¥240,601,812.07 in 2017[22]. - The total operating revenue for 2018 was ¥871,902,385.03, a decrease of 10.41% compared to ¥973,161,986.59 in 2017[64]. - The revenue from the electrical instrumentation industry was ¥869,373,265.25, accounting for 99.71% of total revenue, with a year-on-year decrease of 10.44%[64]. - The revenue from smart metering and collection systems was ¥701,841,446.98, representing 80.50% of total revenue, down 9.30% from the previous year[64]. - Domestic revenue was ¥766,178,500.21, making up 87.87% of total revenue, with a decrease of 9.17% year-on-year[67]. Dividend Distribution - The company reported a profit distribution plan to distribute cash dividends of 1.00 RMB (including tax) for every 10 shares based on a total of 409,619,150.00 RMB[5]. - The proposed cash dividend for 2018 is 1 yuan per 10 shares, totaling 40,961,915.00 yuan, which represents 30.16% of the net profit attributable to shareholders[116]. - The remaining undistributed profit for the year is 811,209,403.37 yuan, which will be retained for operational needs[114]. - The company has consistently paid dividends over the past three years, with 2016, 2017, and 2018 cash dividends amounting to 54,401,625.00 yuan, 32,769,532.00 yuan, and 40,961,915.00 yuan respectively[115]. - The cash dividend payout ratio for 2017 was 20.83% and for 2016 was 21.29%[116]. - The company plans to maintain its dividend policy while ensuring normal operations and long-term development[114]. - The cash dividends for 2018 will be distributed based on the total share capital as of December 31, 2018, which is 409,619,150 shares[115]. Business Strategy and Development - The company is actively expanding into public energy metering, energy internet, and power service sectors, indicating potential for uncertain profit growth[5]. - The company is focused on strengthening corporate culture and employee cohesion to mitigate risks related to talent retention[5]. - The company aims to enhance its core business and accelerate the upgrade of its business structure in 2019, focusing on comprehensive energy service solutions[54]. - The company plans to actively seek external acquisition opportunities to strengthen its strategic layout in the energy internet and IoT sectors[59]. - The company is focusing on R&D in energy internet and IoT applications to build sustainable core competitive advantages[59]. - The company is committed to optimizing its organizational structure and processes to improve operational efficiency and profitability[57]. - The company is increasing R&D investment to develop new technologies in public energy metering, smart flow measurement, and electrical safety monitoring[102]. - The company aims to enhance its marketing strategies and optimize its marketing management system to improve service innovation and expand marketing channels[102]. Risks and Challenges - The company faces risks related to reliance on the power system industry, as its business development is closely tied to the scale and planning of grid investments[5]. - The company acknowledges the risk of new business development uncertainties as it integrates resources for expansion[5]. - The company is experiencing intense competition in the smart energy meter market due to centralized large-scale bidding models adopted by major grid companies[5]. - The company operates in a competitive environment where product quality and technological capabilities are increasingly critical for maintaining market share[5]. Research and Development - The company has a strong design and R&D capability with a large pool of technical talent in the smart energy meter and information collection system sector[5]. - Research and development expenses for the year were ¥49,288,617.50, representing 5.65% of total revenue, showing a steady increase in R&D investment[78]. - The company has committed to developing new technologies in energy management and smart energy solutions[171]. Shareholder Commitments and Governance - The company has ensured compliance with all commitments made by its major shareholders, with no violations reported[125]. - The company has established a commitment to avoid and minimize related party transactions, ensuring fair pricing in any unavoidable transactions[130]. - The company guarantees that it will not engage in any competitive activities that could harm its interests or those of its shareholders[133]. - The company has committed to not producing or developing any competing products or services, ensuring no conflict with its business operations[136]. - The company reported a commitment to ensure that the initial public offering documents do not contain false records, misleading statements, or significant omissions, with a promise to compensate investors for any losses incurred due to violations[137]. - The company has made a commitment to strictly adhere to the measures for compensating diluted immediate returns, with a promise to publicly explain any failures to fulfill these measures at the shareholders' meeting[145]. - The company’s board and senior management have pledged to act diligently in maintaining the legal rights of the company and all shareholders, ensuring no unfair benefits are provided to other entities or individuals[145]. - The company has committed to maintaining transparency and accountability in its operations and financial reporting[145]. Market Position and Competition - The company maintained a leading market share in the smart metering and collection system (AMI) business, leveraging technological innovation and improving product quality[52]. - The market for electric vehicle smart charging equipment and cloud service systems has further expanded, with applications in various sectors including public transport and overseas markets[53]. - The company is actively promoting the application of the energy Internet and ubiquitous power IoT, providing energy monitoring and comprehensive energy-saving services[53]. Cash Flow and Investments - The company reported a significant increase in investment cash inflow, totaling ¥303,661,099.29, a 1,389.42% rise from the previous year[82]. - Cash and cash equivalents increased by ¥327,740,765.89, marking a 1,685.67% rise compared to the previous year[82]. - The proportion of cash and cash equivalents to total assets rose to 56.75%, up from 40.43% in the previous year[85]. - The total investment amount for the reporting period was ¥72,865,913.34, a decrease of 32.09% compared to ¥107,302,190.34 in the same period last year[89]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 17,397, an increase from 16,462 at the end of the previous month[198]. - The largest shareholder, Hangzhou Juhua Group, holds 22.81% of the shares, totaling 93,420,000 shares[198]. - Ding Minhua, a natural person, holds 11.52% of the shares, amounting to 47,175,000 shares[198]. - The total number of shares held by the top 10 shareholders is significant, indicating concentrated ownership[198]. - The company has a diverse shareholder structure, including both natural persons and non-state-owned legal entities[198].

[Important Notice](index=2&type=section&id=Section%20I%2E%20Important%20Notice) The company's board, supervisory board, and senior management guarantee the truthfulness and completeness of this quarterly report, assuming legal responsibility [Report Authenticity Statement](index=2&type=section&id=1.1%20Report%20Authenticity%20Statement) The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibilities - The company's directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report content and assume legal responsibility[4](index=4&type=chunk) - The company's principal officer, the person in charge of accounting work, and the head of the accounting department all declare to guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Company Basic Information](index=3&type=section&id=Section%20II%2E%20Company%20Basic%20Information) As of Q3 2018, total assets slightly increased by 0.15% to RMB 2.555 billion, while year-to-date operating revenue decreased by 9.89% to RMB 638 million, and net profit attributable to shareholders grew by 7.07% to RMB 128 million, despite a 110.84% decline in operating cash flow [Key Accounting Data and Financial Indicators](index=3&type=section&id=一%E3%80%81%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of the end of Q3 2018, total assets were RMB 2.555 billion, a slight increase of 0.15% from year-end, while year-to-date operating revenue decreased by 9.89% to RMB 638 million, but net profit attributable to shareholders increased by 7.07% to RMB 128 million, and net cash flow from operating activities significantly declined by 110.84% to RMB -15.016 million Key Accounting Data and Financial Indicators (Year-to-Date) | Indicator | 2018 Q1-Q3 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (RMB) | 638,174,199.22 | -9.89% | | Net Profit Attributable to Shareholders (RMB) | 128,397,385.37 | 7.07% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 111,600,946.85 | 3.05% | | Net Cash Flow from Operating Activities (RMB) | -15,015,779.44 | -110.84% | | Basic Earnings Per Share (RMB/share) | 0.31 | -6.06% | | Weighted Average Return on Net Assets | 6.11% | -2.83% | | **Period-End Data** | **September 30, 2018** | **Change from Prior Year-End** | | Total Assets (RMB) | 2,554,655,681.56 | 0.15% | | Net Assets Attributable to Shareholders (RMB) | 2,148,806,914.80 | 4.66% | Non-recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | | :--- | :--- | | Government Grants | 6,960,571.80 | | Gains/Losses from Entrusted Investments or Asset Management | 12,833,254.75 | | **Total** | **16,796,438.52** | [Shareholder Information](index=4&type=section&id=二%E3%80%81%20Shareholder%20Information) The company had 18,002 common shareholders at period-end, with Hangzhou Juhua Group as the largest at 22.81%, and restricted shares saw changes due to executive lock-up adjustments - At the end of the reporting period, the company had **18,002** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Hangzhou Juhua Group Co., Ltd. | 22.81% | 93,420,000 | | Ding Minhua | 11.52% | 47,175,000 | | Hong Jun | 3.86% | 15,828,114 | | Yu Qin | 3.56% | 14,580,000 | | Guo Yuanyue | 2.53% | 10,374,720 | - During the reporting period, due to executive departures, new appointments, and share unfreezing, the company's total restricted shares changed from **134,589,745** shares at the beginning of the period to **136,234,495** shares at the end of the period[15](index=15&type=chunk)[16](index=16&type=chunk) [Significant Events](index=7&type=section&id=Section%20III%2E%20Significant%20Events) Significant changes occurred in financial items, including increased prepayments and construction in progress, decreased other current assets from wealth management redemptions, a 6612.52% surge in investment income, a 110.84% decline in operating cash flow, and a 246.63% increase in investing cash flow [Significant Changes and Reasons for Key Financial Data](index=7&type=section&id=一%E3%80%81%20Significant%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data) During the reporting period, several financial items experienced significant changes, with prepayments and construction in progress increasing substantially, other current assets decreasing due to wealth management product redemptions, investment income surging by 6612.52% from increased wealth management product returns, operating cash flow net decreasing by 110.84% due to reduced sales collections, and investing cash flow net increasing by 246.63% from wealth management product redemptions - Reasons for Balance Sheet Item Changes - **Prepayments** increased by **132.66%**, primarily due to increased advance payments for goods[19](index=19&type=chunk) - **Other current assets** decreased by **42.90%**, primarily due to the redemption of wealth management products[19](index=19&type=chunk) - **Construction in progress** increased by **828.67%**, primarily due to increased investment in multiple smart energy projects[19](index=19&type=chunk) - **Taxes payable** decreased by **81.67%**, primarily due to a reduction in value-added tax payable[19](index=19&type=chunk) - Reasons for Income Statement Item Changes - **Financial expenses** decreased by **111.80%**, primarily due to a year-on-year increase in interest income[20](index=20&type=chunk) - **Investment income** increased by **6612.52%**, primarily due to a year-on-year increase in wealth management product returns[20](index=20&type=chunk) - Reasons for Cash Flow Statement Item Changes - **Net cash flow from operating activities** decreased by **110.84%**, primarily due to a reduction in cash received from sales of goods[20](index=20&type=chunk) - **Net cash flow from investing activities** increased by **246.63%**, primarily due to increased redemption of wealth management products[20](index=20&type=chunk) [Fulfillment of Commitments](index=8&type=section&id=三%E3%80%81%20Fulfillment%20of%20Commitments) The company and related parties strictly adhered to all IPO and refinancing commitments, including share lock-up, reduction, and non-competition, with no violations reported - The company, controlling shareholders, actual controllers, and directors, supervisors, and senior management strictly adhered to commitments made during initial public offerings and refinancing, including share lock-up, share reduction, horizontal competition, and related party transactions, with no violations during the reporting period[21](index=21&type=chunk)[22](index=22&type=chunk)[25](index=25&type=chunk) - Shareholder Yu Qin violated original commitments by selling shares below the offering price and now pledges to remit the proceeds of **RMB 1,704,860.03** to the listed company by December 31, 2018[33](index=33&type=chunk) [Execution of Cash Dividend Policy](index=20&type=section&id=四%E3%80%81%20Execution%20of%20Cash%20Dividend%20Policy) In May 2018, the company completed its 2017 profit distribution, paying a cash dividend of RMB 0.8 per 10 shares to all shareholders, totaling approximately RMB 32.77 million - On May 25, 2018, the company completed its 2017 profit distribution, based on a total share capital of **409,619,150** shares, distributing a cash dividend of **RMB 0.8** (tax inclusive) per 10 shares, totaling **RMB 32,769,532**[34](index=34&type=chunk) [Financial Statements](index=21&type=section&id=Section%20IV%2E%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for Q3 2018, encompassing the balance sheet, income statement, and cash flow statement [Financial Statements](index=21&type=section&id=一%E3%80%81%20Financial%20Statements) This section provides the company's unaudited consolidated and parent company financial statements for the third quarter of 2018, including the balance sheet, income statement, and cash flow statement - This section includes the consolidated and parent company balance sheets as of September 30, 2018[39](index=39&type=chunk)[43](index=43&type=chunk) - This section includes the consolidated and parent company income statements for the third quarter of 2018 (this reporting period) and year-to-date[47](index=47&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk)[59](index=59&type=chunk) - This section includes the consolidated and parent company cash flow statements for the year-to-date period of 2018[62](index=62&type=chunk)[66](index=66&type=chunk) [Audit Report](index=37&type=section&id=二%E3%80%81%20Audit%20Report) The company's third-quarter report remains unaudited - The company's third-quarter report is unaudited[69](index=69&type=chunk)

Financial Performance - Total revenue for the first half of 2018 was approximately ¥433.85 million, a decrease of 11.44% compared to ¥489.92 million in the same period last year[17]. - Net profit attributable to shareholders increased by 3.22% to approximately ¥82.73 million, up from ¥80.15 million in the previous year[17]. - Basic and diluted earnings per share decreased by 9.09% to ¥0.20, down from ¥0.22 in the previous year[17]. - The company's operating revenue for the reporting period was ¥433,850,676.96, a decrease of 11.44% compared to the same period last year[38]. - The company reported a total revenue of 1,000 million CNY for the first half of 2018, with a year-on-year growth of 8.73%[55]. - The company achieved a net profit of 194.4 million CNY, reflecting a profit margin of 4.10%[55]. - The company reported a total of 12,000 million in fundraising for the financial product with a one-time interest rate of 4.60%[57]. - The company achieved a collection of 276.76 million from the financial product that matured in June 2018[57]. Cash Flow and Investments - Net cash flow from operating activities surged by 254.39% to approximately ¥4.70 million, compared to ¥1.33 million in the same period last year[17]. - Net cash flow from investing activities was ¥206,158,680.33, a significant increase of 593.92% compared to the previous year, mainly from redeeming financial products[38]. - The company's cash and cash equivalents increased by 297.80% to ¥187,421,103.39, driven by higher net cash flow from investing activities[38]. - The company reported a total cash inflow from financing activities of CNY 5,000,000.00, with no new borrowings or bond issuances reported during the period[151]. - The cash inflow from investment activities was CNY 223,112,748.63, a significant increase from CNY 10,740,404.98 in the previous year, highlighting successful investment strategies[151]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥2.56 billion, an increase of 0.51% from ¥2.55 billion at the end of the previous year[17]. - The company's total equity increased to CNY 2,105,207,852.27 from CNY 2,056,004,027.16, representing a growth of about 2.4%[132]. - The total current liabilities decreased to CNY 452,662,404.71 from CNY 493,866,011.18, a reduction of approximately 8.4%[131]. - The company's total liabilities decreased, contributing to a stronger balance sheet and improved financial stability[156]. Business Strategy and Market Expansion - The company is actively expanding into public energy metering, energy internet, and power service sectors, although the profitability of these new ventures remains uncertain[5]. - The company is focusing on the development of global smart metering and collection systems (AMI) to enhance its competitive advantage overseas[35]. - The company plans to expand its market presence by launching new financial products in the second half of 2018[55]. - The company plans to expand its market presence by entering three new regions by the end of 2018, targeting a 15% market share in these areas[60]. - New product launches are expected to drive an additional 10% revenue growth in the next quarter, with a focus on innovative technology solutions[60]. Risks and Challenges - The company faces risks related to reliance on the power system industry, market competition, talent retention, and new business development[4]. - Market competition is intensifying due to standardized procurement processes by major grid companies, increasing the pressure on maintaining market share[66]. - The company is heavily reliant on the electricity system industry, which poses risks related to business fluctuations based on grid investment scales[66]. - New business development in public energy measurement and power services carries uncertainties regarding profitability growth[67]. Shareholder and Governance Matters - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[5]. - The company has committed to a 12-month lock-up period for newly issued shares from the date of listing, prohibiting any transfer of these shares[73]. - The company has ensured that any share reductions will not be below the issuance price[75]. - The company has reported a commitment to avoid and reduce related party transactions and conflicts of interest, ensuring fair pricing in transactions with related parties[77]. - The company has committed to strict adherence to regulations protecting the rights of small investors, as outlined in government opinions on capital market development[82]. Research and Development - Research and development investment was ¥23,583,633.54, down 9.59% year-on-year[38]. - The company has allocated 200 million RMB for research and development in 2018, aiming to enhance product offerings and technological advancements[60]. - The company has a strong technical innovation advantage, being a high-tech enterprise with a dedicated R&D center[25]. Compliance and Legal Matters - The financial report for the first half of the year was not audited[86]. - The company has not reported any violations of its commitments regarding share transfers[74]. - The company has not experienced any major litigation or arbitration matters during the reporting period[88]. - There were no significant penalties or rectification measures during the reporting period[89].

Financial Performance - Total revenue for Q1 2018 was ¥193,306,266.59, a decrease of 18.49% compared to ¥237,159,393.77 in the same period last year[8] - Net profit attributable to shareholders was ¥36,341,645.97, down 22.28% from ¥46,759,314.36 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥30,907,927.73, a decrease of 16.03% from ¥36,806,364.24 in the previous year[8] - Basic and diluted earnings per share were both ¥0.09, down 30.77% from ¥0.13 in the previous year[8] - The total comprehensive income for the period was ¥36,451,348.66, down 22% from ¥46,757,685.96 in the previous year[58] - The net profit for Q1 2018 was ¥33,498,440.78, down 21.6% from ¥42,763,405.82 in Q1 2017[58] - The operating profit for the current period was ¥33,838,855.53, a decline of 13.8% from ¥38,975,490.86 in the previous year[58] Cash Flow - Operating cash flow improved significantly, with a net cash flow from operating activities of ¥24,368,526.86, compared to a negative cash flow of ¥36,931,240.97 in the same period last year, representing a 165.98% increase[8] - The net cash flow from operating activities was CNY 26,766,810.39, a significant improvement from a net outflow of CNY 28,464,024.23 in the previous period[66] - Total cash inflow from operating activities amounted to CNY 221,550,585.40, compared to CNY 153,826,755.96 in the prior period, reflecting a growth of approximately 44%[66] - The company reported a net cash outflow from investing activities of -¥24,599,755.82, an improvement from -¥56,572,750.87 in the same period last year[63] - Cash inflow from investing activities reached CNY 119,305,236.52, a substantial increase from CNY 1,715,051.58 in the prior period[66] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,528,900,760.30, a decrease of 0.86% from ¥2,550,857,931.95 at the end of the previous year[8] - The total liabilities decreased to CNY 429.11 million from CNY 487.11 million, indicating a reduction of about 11.9%[52] - Cash and cash equivalents decreased from 1,031,208,699.19 yuan to 929,138,061.34 yuan[46] - Accounts receivable decreased from 475,003,502.56 yuan to 429,952,483.34 yuan[46] Shareholder Commitments and Corporate Governance - Shareholders have made commitments to not reduce their holdings for a period of two years post-lockup, ensuring stability in the company's stock performance[24] - The company has committed to maintaining a strict compliance with regulatory requirements regarding shareholding and stock sales, ensuring transparency and investor confidence[25] - The company has established a framework to compensate investors for any direct losses resulting from false statements or misleading information in its public disclosures[29] - The company has committed to repurchase shares if any significant misrepresentation in its prospectus is proven, ensuring investor protection[30] - The company has made commitments to protect the legal rights of all shareholders and will compensate for any losses incurred by investors due to unfulfilled commitments[33] Market Strategy and Future Outlook - The company is actively expanding into the energy service sector and developing the energy IoT industry to enhance sustainable profitability[18] - The company has outlined its future outlook, projecting a revenue growth rate of approximately 20% for the upcoming quarters, driven by new product launches and market expansion strategies[26] - New product development is a key focus, with investments aimed at enhancing technology and product offerings to meet market demands[25] - The company is exploring market expansion opportunities, particularly in international markets, to diversify its revenue streams and reduce dependency on domestic sales[24] Risks and Challenges - The company faces risks related to dependence on the power system industry, market competition, talent retention, and new business development[10] - The company reported a significant increase in interest receivables, which rose by 96.39% to CNY 5.21 million[16] - The top five suppliers accounted for 30.93% of total purchases, up from 21.43% in the same period last year, indicating a shift in supplier concentration[19] - The top five customers accounted for 29.29% of total sales, down from 53.02% in the same period last year, suggesting a diversification in customer base[20]

Financial Performance - The company reported a total revenue of RMB 973,161,986.59 for the year 2017, with a net profit attributable to shareholders of RMB 157,307,993.01[91]. - The company's operating revenue for 2017 was ¥973,161,986.59, a decrease of 18.50% compared to 2016[20]. - The net profit attributable to shareholders for 2017 was ¥157,307,993.01, down 38.43% from the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥138,824,744.26, a decline of 42.41% year-over-year[20]. - The total assets at the end of 2017 increased by 42.08% to ¥2,550,857,931.95 compared to the end of 2016[20]. - The net assets attributable to shareholders rose by 57.36% to ¥2,053,126,273.17 at the end of 2017[20]. - The basic earnings per share for 2017 was ¥0.43, a decrease of 39.44% from ¥0.71 in 2016[20]. - The company reported a significant increase in cash flow from operating activities, with a net cash flow of ¥240,601,812.07, up 0.05% from the previous year[20]. - The gross profit margin for the electrical instrumentation industry was 31.94%, down 4.61% from the previous year[53]. - The company reported a total investment of 12,000 million RMB in financial products with a return rate of 4.60%[134]. Dividend Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.80 RMB per 10 shares, based on a total of 409,619,150.00 RMB[7]. - The proposed cash dividend for 2017 is RMB 0.80 per 10 shares, totaling RMB 32,769,532.00, which represents 20.83% of the net profit attributable to shareholders[95]. - The cash dividend accounts for 100% of the total profit distribution for the year[92]. - The company has consistently maintained a cash dividend payout ratio around 20% over the past three years[95]. - The total distributable profit for the year is RMB 761,610,684.13, which includes RMB 694,952,945.90 from the previous year[91]. Market Position and Competition - The company is heavily reliant on the power system industry, with its products primarily serving national and provincial power grids, indicating a direct correlation with grid investment scales[6]. - The company faces market competition risks due to centralized bidding processes for smart electric meters and information collection systems, which may impact market share[6]. - The company operates in a competitive environment where product quality and technological capabilities are increasingly critical for maintaining market position[6]. - The company has steadily increased its market share in the domestic AMI market despite a decline in smart meter and data collection tenders from State Grid and Southern Grid[40]. Research and Development - The company has a strong R&D capability in smart electric meters and information collection systems, but faces risks related to talent retention amid fierce competition for skilled personnel[6]. - The company has a strong focus on technology innovation, being a high-tech enterprise with a dedicated R&D center and participation in industry standards[33]. - The company plans to enhance its R&D efforts in areas such as smart metering technology and IoT applications, focusing on integrating big data and cloud computing[84]. - The company is actively developing an energy demand-side IoT information platform, aiming to provide energy monitoring and maintenance services to residential and commercial users[83]. - R&D expenditure for 2017 was ¥53,633,609.03, accounting for 5.51% of total revenue, showing a steady increase from 4.68% in 2016[63]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The company will continue to strengthen its internal control systems and corporate governance to protect shareholder rights and enhance operational transparency[45]. - The independent directors have fulfilled their responsibilities in the decision-making process for the dividend distribution[90]. - The company has committed to avoiding and minimizing related party transactions to protect shareholder interests[100]. - The company guarantees that it will not use its position to harm the interests of shareholders through related party transactions[100]. Strategic Initiatives - The company is actively expanding into public energy measurement, energy internet, and power service sectors, although the profitability of these new ventures remains uncertain[7]. - The company intends to utilize capital market opportunities for strategic acquisitions and investments in emerging industries such as artificial intelligence and high-end equipment manufacturing[45]. - The company aims to enhance its core competitiveness through technological innovation and participation in industry standards formulation, focusing on key project R&D and strengthening its internal growth momentum[43]. - The company is focused on becoming a global leader in energy IoT equipment and services, with a vision to build a sustainable competitive advantage through innovation and market expansion[47]. Employee Management and Culture - The company emphasizes the importance of corporate culture and employee incentives to maintain team stability and alignment with shareholder goals[6]. - The company has implemented a stock incentive plan for its management team and key personnel to enhance motivation and stability[6]. - The company emphasizes talent development and performance management to enhance team execution and mission awareness[44]. - The company has established a performance-centered management system to enhance employee potential and achieve corporate goals[195]. Shareholder Structure and Changes - The total number of shares for the dividend calculation is 409,619,150[92]. - The largest shareholder, Hangzhou Juhua Group Co., Ltd., holds 22.81% of the shares, amounting to 93,420,000 shares[163]. - The second-largest shareholder, Ding Minhua, owns 11.52% with 47,175,000 shares, with no changes during the reporting period[163]. - The total number of shareholders increased to 20,822 from 19,268 in the previous month, indicating a growth of approximately 8%[162]. - The company’s total share capital and shareholder structure underwent changes due to the non-public offering and share repurchase activities[160]. Financial Products and Investments - The company has a financial product with a total investment of 1,600 million RMB, also with a return rate of 4.60%[134]. - The company has a financial product with a total investment of 5,000 million RMB and a return rate of 4.70%[134]. - The company has a total of 0.14 million received from an investment of 80 million[137]. - The company reported a total of 52,157 million CNY in entrusted financial management during the reporting period, with an outstanding balance of 43,907 million CNY[132]. - The company is actively managing its investment portfolio to optimize returns while maintaining liquidity[141].

Financial Performance - Operating revenue for the reporting period was ¥218,288,508.10, a decrease of 36.09% year-on-year[8]. - Net profit attributable to shareholders decreased by 44.39% to ¥39,769,308.79 compared to the same period last year[8]. - Basic earnings per share were ¥0.11, down 45.00% compared to the same period last year[8]. - The company reported a 43.06% decrease in operating profit, driven by reduced revenue and increased sales expenses for new business initiatives[22]. - The company’s net profit for the first three quarters of 2017 is projected to be stable compared to the previous year, with no significant changes expected[50]. - Total operating revenue for the current period was ¥218,288,508.10, a decrease of 36.1% compared to ¥341,551,180.63 in the previous period[64]. - Net profit for the current period was ¥39,751,351.74, down 44.5% from ¥71,513,992.13 in the previous period[65]. - Total operating revenue for the third quarter was CNY 708.21 million, a decrease of 21.7% compared to CNY 904.18 million in the same period last year[72]. - Operating profit for the third quarter was CNY 35.03 million, down 47.0% from CNY 66.22 million year-over-year[70]. - Net profit for the third quarter was CNY 29.63 million, a decline of 52.5% compared to CNY 62.42 million in the previous year[70]. Asset and Liability Management - Total assets at the end of the reporting period reached ¥1,818,396,645.69, an increase of 1.29% compared to the end of the previous year[8]. - The total equity attributable to the parent company increased to CNY 1,372,639,194.90 from CNY 1,304,758,209.64, reflecting a growth of approximately 5.2%[59]. - The total liabilities decreased to CNY 442,486,864.47 from CNY 487,262,355.63, a decline of approximately 9.2%[58][59]. - The company's cash and cash equivalents decreased to CNY 673,018,107.39 from CNY 698,630,581.24, representing a decline of about 3.7%[56][59]. - The total assets increased to ¥1,722,362,304.71 from ¥1,696,478,945.65, representing a growth of 1.5%[62]. - The total liabilities decreased to ¥426,337,233.81 from ¥455,954,115.83, a reduction of 6.5%[62]. Cash Flow Analysis - The net cash flow from operating activities for the year-to-date was ¥138,477,179.42, an increase of 104.26%[8]. - The company's net cash flow from operating activities rose by 104.26% to RMB 138.478 million, attributed to enhanced collection efforts and increased cash received from sales[23]. - Cash flow from operating activities was CNY 693.49 million, an increase from CNY 554.72 million year-over-year[79]. - Net cash flow from operating activities reached CNY 138,477,179.42, significantly up from CNY 67,794,837.55 in the same period last year, indicating a year-over-year increase of about 104.5%[80]. - The company reported a net cash outflow of CNY 67,654,070.36 for the quarter, compared to a smaller outflow of CNY 5,897,596.36 in the previous year[81]. Shareholder and Corporate Governance - The total number of ordinary shareholders at the end of the reporting period was 16,273[15]. - The largest shareholder, Hangzhou Juhua Group Co., Ltd., holds 25.76% of the shares[15]. - The company committed to not transferring or entrusting the management of shares for 36 months from the date of stock listing, which started in January 2014[26]. - The actual controller, Ding Minhua, promised not to reduce his direct shareholding for two years after the lock-up period expires[29]. - The company has not violated any commitments made during the initial public offering or refinancing[26]. - The company is committed to compensating investors for any losses incurred due to violations of its public commitments[41]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20%[32]. - New product development is underway, with an expected launch of two innovative products by Q4 2017[33]. - The company is expanding its market presence, targeting an additional 10 cities for its services by the end of the year[34]. - A strategic acquisition of a smaller tech firm was completed, enhancing the company's technological capabilities[35]. - The company plans to invest 50 million yuan in R&D for new technologies in the upcoming fiscal year[30]. Compliance and Regulatory Matters - The company is focused on ensuring the accuracy of information and compliance with regulatory requirements[27]. - The company has maintained compliance with all commitments made during the asset restructuring process[26]. - The company will hold investor meetings to discuss its operational status and financial indicators if stock price stabilization measures are triggered[36]. - The company’s stock price stabilization measures will be announced publicly once initiated[37].

Financial Performance - Total revenue for the first half of 2017 was CNY 489,918,923.37, a decrease of 12.92% compared to CNY 562,633,751.24 in the same period last year[19]. - Net profit attributable to shareholders was CNY 80,151,134.61, down 37.03% from CNY 127,286,625.85 year-on-year[19]. - Net profit after deducting non-recurring gains and losses was CNY 69,203,564.07, a decline of 41.67% compared to CNY 118,636,116.22 in the previous year[19]. - Basic earnings per share decreased to CNY 0.22, down 37.14% from CNY 0.35 in the previous year[19]. - The comprehensive gross profit margin decreased by 3.6% due to significant increases in raw material prices[36]. - The company reported a total cash inflow from operating activities of ¥412,320,860.72, an increase from ¥324,753,343.50 in the previous year[139]. - The total profit for the first half of 2017 was ¥89,681,718.20, compared to ¥139,594,943.57 in the previous year, reflecting a decline of approximately 35.8%[134]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 1,326,131.51, compared to a negative cash flow of CNY -52,612,566.01 in the same period last year, marking a 102.52% increase[19]. - The company's total assets at the end of the reporting period were CNY 1,757,338,415.55, a decrease of 2.11% from CNY 1,795,309,124.35 at the end of the previous year[19]. - Cash and cash equivalents decreased to CNY 592,594,863.20 from CNY 698,630,581.24, reflecting a decline of approximately 15.1%[123]. - The company's total assets decreased to ¥1,658,963,422.44 from ¥1,696,478,945.65, indicating a reduction in asset base[130]. - The total liabilities decreased to CNY 424,064,278.89 from CNY 487,262,355.63, a reduction of approximately 12.9%[125]. Strategic Initiatives - The company plans to expand into public energy metering, energy internet, and power service sectors, although the profitability of these new ventures remains uncertain[5]. - The company is actively expanding into the "user-side" energy service sector to establish new profit growth points[36]. - The company is preparing for the comprehensive development of its electricity sales business by leveraging its extensive customer base in electricity collection and demand-side management services[36]. - The company is focusing on technological innovation and has developed core technologies in energy measurement and information collection systems[37]. Shareholder and Governance Matters - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[5]. - The company held three shareholder meetings during the reporting period, with investor participation rates of 55.18% for the first extraordinary meeting, 54.53% for the annual meeting, and 54.52% for the second extraordinary meeting[63]. - The actual controller and shareholders have fulfilled their commitments during the reporting period, with no violations reported[65]. - The company has established a policy to avoid and minimize related party transactions, ensuring fair pricing and protecting shareholder interests[70]. Compliance and Regulatory Matters - The financial report for the first half of 2017 was not audited[121]. - The company has not reported any violations of commitments made regarding shareholding and related transactions, indicating strong governance[69]. - The company has not engaged in any significant related party transactions during the reporting period[86]. - The company has not reported any penalties or rectification situations during the reporting period[84]. Market Position and Competition - The company faces risks related to its dependence on the power system industry, as its business is closely tied to the investment scale and development plans of the national grid[59]. - The competitive landscape is intensifying due to standardized technical requirements and centralized bidding processes implemented by major grid companies[59]. - There are no competitive products being developed or produced that could conflict with the company's existing business operations, maintaining a clear market position[71]. Financial Management and Investments - The company has not engaged in derivative investments or entrusted loans during the reporting period, indicating a conservative financial strategy[55][56]. - The company has committed to measures to compensate for the dilution of immediate returns, ensuring that if these measures are not fulfilled, an explanation will be provided at the shareholders' meeting[79]. - The company has established a linkage between the compensation system for directors and the performance of return measures[78]. Financial Reporting and Accounting Practices - The company adheres to the accounting standards for enterprises, ensuring the financial statements reflect a true and complete picture of its financial status[163]. - The company measures financial assets at fair value subsequently, except for certain cases such as held-to-maturity investments and loans, which are measured at amortized cost[173]. - The company recognizes impairment losses for financial assets based on specific criteria, including significant financial difficulties of the debtor[176].

Financial Performance - Total revenue for Q1 2017 was CNY 237,159,393.77, an increase of 8.72% compared to CNY 218,141,730.73 in the same period last year[8]. - Net profit attributable to shareholders decreased by 9.14% to CNY 46,759,314.36 from CNY 51,465,465.96 year-on-year[8]. - Net profit excluding non-recurring gains and losses fell by 14.90% to CNY 36,806,364.24 compared to CNY 43,251,436.68 in the previous year[8]. - The company achieved operating revenue of 237.16 million yuan in Q1 2017, an increase of 8.72% compared to the same period last year[22]. - The net profit attributable to shareholders was 46.76 million yuan, a decrease of 9.14% year-on-year[22]. - The gross margin for Q1 2017 was reported at 35%, a slight increase from 33% in Q1 2016[32]. - The company reported a total comprehensive income of CNY 49,940,885.96 for Q1 2017, down from CNY 51,478,832.91 in the previous year[56]. - Earnings per share for Q1 2017 were CNY 0.13, down from CNY 0.14 in the previous year[56]. Cash Flow and Assets - Operating cash flow showed a net outflow of CNY 36,931,240.97, worsening by 49.46% from a net outflow of CNY 24,710,307.07 in the same period last year[8]. - The company's cash and cash equivalents decreased to CNY 600,931,296.73 from CNY 698,630,581.24, reflecting a decline of approximately 14.0%[46]. - The total assets at the end of the reporting period were CNY 1,762,835,928.93, a decrease of 1.81% from CNY 1,795,309,124.35 at the end of the previous year[8]. - The company's cash inflow from other investment activities was 1,445,051.58 CNY, while cash outflow for acquiring subsidiaries was 40,000,000.00 CNY[67]. - The total cash inflow from investment activities was significantly lower than the cash outflow, indicating a challenging investment environment[67]. Expenses and Liabilities - The company's sales expenses for the period were 13.11 million yuan, up 64.51% year-on-year, primarily due to the consolidation of Shanghai Nayu Electric Co., Ltd.[21]. - The company's financial expenses were -2.69 million yuan, an increase of 53.76% year-on-year, attributed to lower interest income compared to the previous year[21]. - The total liabilities decreased to CNY 409,169,360.89 from CNY 487,262,355.63, a decline of about 16.0%[48]. - The company reported a decrease in management expenses to 17,402,604.71 CNY from 18,416,876.79 CNY year-over-year, a reduction of approximately 5.5%[59]. Strategic Initiatives - The company is actively expanding into public energy measurement, energy internet, and power service sectors, indicating a strategic shift towards new business areas[12]. - The company is actively expanding its energy demand-side user business while focusing on technological innovation and service quality[22]. - The company has made progress in two major R&D projects related to smart energy metering systems, which are expected to enhance its core competitiveness[23]. - A strategic acquisition is planned, with a budget of $50 million allocated for potential targets in the technology sector[33]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 10% market share within the next two years[32]. Shareholder Commitments - The company reported a commitment to not transfer or entrust the management of shares held prior to the IPO for 36 months from the listing date[28]. - The actual controller, Ding Minhua, committed to not reducing his direct holdings in the company for two years after the lock-up period expires[29]. - The company’s major shareholders promised that any share reduction after the lock-up period would not be below the issuance price[30]. - The company has adhered to all commitments made regarding share restrictions and voluntary lock-ups, with no violations reported[28]. - The company’s major shareholders will announce any share reductions three trading days in advance[30]. Future Outlook - The company provided a positive outlook for the upcoming quarters, projecting a revenue growth of 20% for the next quarter[33]. - New product development is underway, with two new products expected to launch by Q3 2017, aimed at expanding the product line[31]. - The company aims to reduce operational costs by 5% over the next year through efficiency improvements[33]. - A new marketing strategy is being implemented, focusing on digital channels, with an expected increase in customer engagement by 25%[31].

Financial Performance - The company's operating revenue for 2016 was ¥1,193,997,801.17, representing a 9.86% increase compared to ¥1,086,836,362.57 in 2015[17] - The net profit attributable to shareholders for 2016 was ¥255,490,102.08, an increase of 8.20% from ¥236,132,955.72 in 2015[17] - The net cash flow from operating activities increased by 49.57% to ¥240,475,765.70 in 2016, up from ¥160,776,141.64 in 2015[17] - The total assets at the end of 2016 were ¥1,795,309,124.35, a 10.81% increase from ¥1,620,138,108.72 at the end of 2015[17] - The net assets attributable to shareholders increased by 20.67% to ¥1,304,758,209.64 at the end of 2016, compared to ¥1,081,290,294.93 at the end of 2015[17] - Basic earnings per share for 2016 were ¥0.71, up 7.58% from ¥0.66 in 2015[17] Dividend Distribution - The company plans to distribute a cash dividend of ¥1.50 per 10 shares, based on a total of ¥36,267,750[5] - The company plans to distribute cash dividends totaling ¥54,401,625.00, which accounts for 100% of the profit distribution total[73] - The cash dividend for 2016 is part of the company's commitment to return value to shareholders while ensuring long-term operational stability[76] - The cash dividends distributed in 2016 reflect the company's ongoing profitability and commitment to shareholder returns[78] - The retained earnings as of December 31, 2016, amount to RMB 640,551,320.90, which will be used to support the company's operational needs[76] Business Expansion and Strategy - The company is actively expanding into public energy metering, energy internet, and power service sectors, although new business development carries uncertainties[5] - The company aims to expand into the energy service sector while maintaining stable growth in its core business of energy measurement and information collection systems[69] - The company is actively preparing for future electricity sales business by leveraging its extensive customer base in electricity collection and demand-side management services[39] Technological and Operational Advancements - The company has established a strong technological innovation advantage, being a high-tech enterprise with a research and development center recognized by the provincial government[30] - The company has implemented an advanced manufacturing system, including a self-developed MES production execution system, enhancing production efficiency and quality control[31] - The company has achieved multiple quality management certifications, including ISO9001 and ISO14001, ensuring high product quality standards[33] - The company has developed core technologies in energy measurement and information collection, including high-reliability data storage and high-precision measurement technologies[39] Market Performance - The three-phase smart energy meter revenue increased by 25.71% to CNY 355,297,531.14, accounting for 29.76% of total revenue[46] - The company expanded its market presence, with overseas revenue growing by 35.45% to CNY 105,126,856.42[46] - The gross margin for the electrical instrument industry was 36.55%, with a year-on-year increase of 3.19%[48] Risk Management - The company faces risks related to reliance on the power system industry and increasing market competition due to standardized procurement processes[4] - The company has implemented a special reward management method to optimize cost control, achieving significant results in cost reduction and efficiency improvement[40] Human Resources and Management - The company has strengthened its human resource management, enhancing the core competitiveness of its management team through talent acquisition and training[42] - The company has a structured compensation decision-making process based on performance evaluations and profit levels[159] - The company has established a human resource management system consisting of position analysis, performance evaluation, compensation incentive, and competency assessment systems to promote a performance-centered management approach[166] Shareholder Commitments and Governance - The company has consistently maintained a positive profit distribution plan over the past three years, with cash dividends distributed in 2014, 2015, and 2016[78] - The company has adhered to all commitments made regarding shareholding and dividend distribution without any violations during the reporting period[81] - The company has reported a commitment from major shareholders to not transfer more than 25% of their shares annually[82] - The company has maintained compliance with relevant laws and regulations regarding share transfers and related party transactions[84] Financial Health and Assets - The total assets of Hangzhou Juhua Technology Co., Ltd. as of December 31, 2016, amounted to 1,437,478,924.16 RMB, a decrease from 1,516,001,653.41 RMB at the beginning of the year[196] - The company's cash and cash equivalents decreased from 768,121,989.33 RMB to 698,630,581.24 RMB, reflecting a decline of approximately 9.1%[196] - Accounts receivable increased from 378,981,094.41 RMB to 485,518,576.71 RMB, representing a growth of about 28.2%[196] - Total liabilities decreased to CNY 487,262,355.63 from CNY 538,847,950.89, a reduction of about 9.5%[198] Compliance and Audit - The audit opinion for the financial statements was a standard unqualified opinion, indicating that the financial statements fairly represent the company's financial position[193] - The company reported no significant internal control deficiencies during the reporting period[184] - The company has not faced any penalties from securities regulatory authorities for its directors, supervisors, and senior management in the past three years[158]

Financial Performance - Total operating revenue for the reporting period was ¥341,551,180.63, reflecting an 18.01% year-on-year growth[8]. - Net profit attributable to shareholders was ¥71,514,565.68, a slight decrease of 0.84% compared to the same period last year[8]. - Net profit after deducting non-recurring gains and losses was ¥66,463,818.45, up 6.25% year-on-year[8]. - The company achieved operating revenue of 904.18 million yuan, an increase of 11.15% compared to the same period last year[21]. - The net profit attributable to shareholders of the listed company was 198.80 million yuan, reflecting a growth of 11.90% year-on-year[21]. - The operating profit for the third quarter was CNY 76,310,677.54, compared to CNY 71,640,615.08 in the same period last year, reflecting a growth of approximately 9.3%[63]. - The net profit for the third quarter reached CNY 198,800,205.61, compared to CNY 177,665,828.78 in the same period last year, representing an increase of approximately 11.3%[72]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,816,300,730.32, an increase of 12.11% compared to the previous year[8]. - The company’s total liabilities increased by 33.50% to 321.02 million yuan, mainly due to increased accounts payable[19]. - The total liabilities increased to CNY 579,283,714.50 from CNY 538,847,950.89[56]. - The total current assets amounted to ¥1,446,260,885.18, down from ¥1,516,001,653.41, which is a decrease of about 4.6%[54]. - The company reported a significant increase in long-term equity investments, rising to CNY 291,016,200.40 from CNY 66,516,200.40[58]. Cash Flow - Cash flow from operating activities for the year-to-date reached ¥67,794,837.55, a significant increase of 221.89%[8]. - Cash flow from operating activities was 67.79 million yuan, up 221.89% from the previous year, mainly due to increased cash receipts from sales[20]. - The net cash flow from operating activities was CNY 67,794,837.55, a significant improvement from a negative CNY 55,618,748.30 in the previous year[77]. - The company achieved a total cash inflow from operating activities of CNY 596,159,021.90, compared to CNY 546,689,901.13 in the previous year[77]. Shareholder Commitments - The company has committed to not transferring or entrusting others to manage its shares for 36 months from the date of its initial public offering[28]. - The actual controller, Ding Minhua, has pledged not to reduce his direct holdings in the company for two years after the lock-up period expires[29]. - Ding Minhua and other major shareholders have committed to not selling shares below the issuance price for two years after the lock-up period[31]. - The company has maintained transparency regarding its shareholding structure and commitments made by its shareholders[29]. Market and Business Strategy - The company is actively exploring new business opportunities in public energy measurement and power services, although these ventures carry uncertainties[12]. - The company won a major contract with the State Grid Corporation for 1,061,507 electric meters, totaling approximately 259.60 million yuan[22]. - Research and development projects, including an intelligent public energy metering system, are progressing well, enhancing the company's core competitiveness[24]. - The company is planning to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[37]. Regulatory Compliance - The management emphasized adherence to regulatory compliance and corporate governance, ensuring all operations align with legal standards[34]. - The company has adhered to all commitments made in the prospectus without any violations[46]. - There were no violations of external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[48][49]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue increase of 15% to 1.725 billion RMB, driven by new product launches and market expansion[35]. - Research and development efforts have led to the introduction of two new products, which are expected to contribute an additional 200 million RMB in revenue over the next year[36].