Financial Performance - The company's revenue for Q1 2021 was ¥55,182,276.78, representing a 31.35% increase compared to ¥42,011,043.82 in the same period last year[8] - Net profit attributable to shareholders was ¥9,722,539.27, up 12.10% from ¥8,672,816.09 year-on-year[8] - The net profit after deducting non-recurring gains and losses decreased by 9.47% to ¥6,709,349.49 from ¥7,411,333.39 in the previous year[8] - Basic earnings per share increased by 11.41% to ¥0.0586 from ¥0.0526 year-on-year[8] - The company reported a net profit attributable to shareholders of CNY 972,250.00, a year-on-year growth of 12.1%[22] - The company's total profit for Q1 2021 was CNY 10,774,236.20, compared to CNY 9,941,744.70 in Q1 2020, representing an increase of approximately 8.4%[54] Cash Flow and Assets - The net cash flow from operating activities was negative at -¥28,010,628.35, a decline of 277.41% compared to -¥7,421,757.86 in the same period last year[8] - As of March 31, 2021, the company's cash and cash equivalents amounted to ¥71,729,234.27, a decrease from ¥84,034,114.91 on December 31, 2020, representing a decline of approximately 14.5%[42] - The total current assets decreased to ¥527,375,826.37 from ¥543,630,531.93, indicating a reduction of about 3.0%[42] - The company reported a significant increase in prepayments, rising to ¥14,063,158.09 from ¥8,492,557.42, which is an increase of approximately 65.5%[42] - The cash inflow from operating activities totaled CNY 78,385,397.55, up from CNY 68,351,043.08 in the previous year, indicating a growth of about 14.8%[60] - The total cash and cash equivalents at the end of the period were 48,022,789.99 RMB, down from 85,071,220.26 RMB at the beginning of the period[65] Investments and Expenses - Research and development expenses surged by 150.61% to CNY 7,413,687.51, reflecting increased investment in R&D[19] - The company recorded an investment income of CNY 2,066,843.11, a significant increase of 291.64% due to higher returns from financial products[19] - The total operating costs for Q1 2021 were CNY 50,609,216.46, compared to CNY 38,412,225.13 in Q1 2020, marking an increase of approximately 31.8%[56] - The cash paid for purchasing goods and services was 52,481,239.93 RMB, significantly higher than 29,536,443.37 RMB in the same period last year[64] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,387[11] - The largest shareholder, Zhang Lixin, holds 37.93% of the shares, totaling 63,635,554 shares[11] - The company has implemented a share repurchase plan, acquiring 755,000 shares at a total cost of approximately RMB 11.98 million, representing 0.45% of the total share capital[30] - The repurchased shares will be allocated to 28 individuals, including directors and key personnel, as part of the second employee stock ownership plan[31] Strategic Focus and Development - The company is focused on smart manufacturing, quality control, and expanding international business as part of its strategic transformation[22] - The company is transitioning from product-based manufacturing to service-oriented manufacturing to adapt to market changes[26] - The company is focused on continuous innovation in product technology and increasing investment in IoT and big data applications[27] - The company plans to leverage opportunities in smart cities and smart agriculture to increase market penetration and maintain a stable market share[26] Market and Operational Challenges - The company is addressing the impact of the COVID-19 pandemic on operations by implementing remote communication strategies with clients[25] - The company acknowledges potential risks from macroeconomic fluctuations affecting market demand for its products[26] - Changes in tax incentives and government subsidies could impact the company's profitability, prompting a strategy to strengthen core business operations[28]

Financial Performance - The company's operating revenue for 2020 was CNY 425,210,340.96, representing an increase of 18.03% compared to CNY 360,263,748.06 in 2019[30]. - The net profit attributable to shareholders for 2020 was CNY 126,950,878.87, up 15.77% from CNY 109,661,099.66 in 2019[30]. - The net profit after deducting non-recurring gains and losses was CNY 118,791,184.47, reflecting a 16.70% increase from CNY 101,795,101.30 in 2019[30]. - The basic earnings per share for 2020 was CNY 0.7630, a rise of 15.66% from CNY 0.6597 in 2019[30]. - The total assets at the end of 2020 amounted to CNY 936,570,166.76, which is a 13.24% increase from CNY 827,076,469.40 at the end of 2019[30]. - The net assets attributable to shareholders at the end of 2020 were CNY 813,884,515.61, up 13.80% from CNY 715,160,604.35 at the end of 2019[30]. - The company reported a net cash flow from operating activities of CNY 107,274,515.91, an increase of 7.55% compared to CNY 99,747,784.94 in 2019[30]. - The company reported a cash dividend of ¥38,410,579.60 in 2020, with a total cumulative cash dividend of ¥158 million since its listing in 2014[96]. - The total distributable profit for the year was 126,950,878.87 RMB, with the cash dividend constituting 100% of the profit distribution[172]. Innovation and Technology Development - The company emphasizes the importance of innovation in technology development, with significant investments in IoT, big data applications, and wireless communication technologies[14]. - The company has achieved full series product compatibility with NB-IoT and offers various wireless transmission methods, including 5G and LoRa[13]. - The company is focusing on the research and innovation of ultrasonic flow measurement technology, having obtained multiple patents and software copyrights, and is integrating IoT and big data applications into its products[40]. - The company has invested significant R&D resources into integrating low-power wide-area network (LPWA) technology with its ultrasonic flow measurement products, achieving compatibility with NB-IoT and other wireless communication solutions[43]. - The company aims to enhance its market presence in the smart water supply sector with new products addressing real-time monitoring and control challenges[123]. - The company is actively expanding its product line with new ultrasonic measurement structures and sensors[83]. Market Expansion and Strategy - The company is committed to enhancing its market share and penetration in new markets by leveraging its brand, quality, and technology advantages[11]. - The company is actively exploring overseas markets to reduce the adverse effects of macroeconomic volatility[11]. - The company plans to gradually release new production capacity based on market conditions to mitigate sales risks associated with expanded capacity[16]. - The company aims to transform from product-based manufacturing to service-oriented manufacturing, enhancing its business model through service-oriented metering solutions[39]. - The company has established a comprehensive solution for the heating industry, including smart heating systems and various measurement solutions, to improve management efficiency and reduce costs for clients[42]. - The company plans to strengthen its market presence by enhancing brand advantages and customer service satisfaction, while also expanding into international markets through partnerships with ICT companies[158]. Research and Development - The company's research and development investment reached 27.2 million yuan, a growth of 69.5% year-on-year[82]. - The overall R&D investment as a percentage of revenue has increased significantly compared to previous years, from 4.46% in 2019 to 6.40% in 2020[124]. - Key R&D projects include the ultrasonic flow sensor optimization, which is in small batch trial production, and the completion of the data monitoring collector for heating and water supply networks[122]. - The company has established several R&D platforms, including the Hebei Provincial Enterprise Technology Center and the Hebei Provincial Ultrasonic Flow Measurement Technology Engineering Laboratory[82]. - The company has launched several new products, including an intelligent valve-controlled water meter and a smart valve for heating networks, both in small batch trial production[123]. Risk Management - The company is facing risks related to the COVID-19 pandemic, which may impact its 2021 performance due to global economic uncertainties[7]. - The company acknowledges the potential impact of macroeconomic fluctuations on market demand for its products, which are closely tied to national infrastructure investments[10]. - The company faces risks related to changes in tax incentives and government subsidies, which could affect its profitability if policies change[18]. Corporate Governance and Shareholder Commitments - The company has established a policy to ensure that shareholders holding over 5% must announce any share reductions three trading days in advance[178]. - The company’s major shareholders have pledged to avoid engaging in any competing business activities for five years post their tenure[178]. - The company’s management has committed to not transferring shares during their tenure and for six months after leaving the company[177]. - The company will compensate investors for losses incurred due to false statements or omissions in the prospectus, including repurchasing all newly issued shares at the market price[181]. - The company aims to enhance transparency and accountability through these shareholder agreements and commitments[178]. Production and Operational Efficiency - The production department completed the overall construction of the smart manufacturing platform, which includes various automated production lines, significantly enhancing production efficiency[53]. - The company has implemented various intelligent production lines and management systems to enhance product quality, production efficiency, and reduce labor costs[94]. - The company aims to prioritize quality improvement and efficiency enhancement in 2021, leveraging its intelligent manufacturing platform to optimize production processes and improve interconnectivity across various operational segments[155]. Market Trends and Industry Outlook - The intelligent water meter market in China is expected to achieve a sales revenue proportion of 40% of total water meter sales during the "13th Five-Year Plan" period[65]. - The global smart water meter market has a positive development outlook, with significant investments in urban water supply infrastructure in countries like Japan, Singapore, and China[64]. - The domestic smart water meter market is benefiting from national policy support and the development of smart water management systems, indicating a broad market prospect[65]. - The demand for intelligent heat meters is expanding due to new market needs in non-central heating areas and increasing public demand for heating in southern cities[75].

[Important Notice](index=2&type=section&id=Section%20I%20Important%20Notice) The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibilities[3](index=3&type=chunk) - The company's responsible person, the person in charge of accounting work, and the head of the accounting department all declare that the financial statements in the quarterly report are true, accurate, and complete[4](index=4&type=chunk) [Company Profile](index=3&type=section&id=Section%20II%20Company%20Profile) This section provides an overview of the company's fundamental information, including key financial data, shareholder structure, and restricted share movements [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of Q3 2020, the company's total assets grew by **7.81%**, with year-to-date revenue and net profit attributable to shareholders increasing by **26.89%** and **24.39%** respectively, and operating cash flow surging by **307.41%** Key Financial Indicators for Q1-Q3 2020 | Indicator | Year-to-Date | Year-over-Year Change | | :--- | :--- | :--- | | Operating Revenue (RMB) | 260,811,153.86 | 26.89% | | Net Profit Attributable to Shareholders (RMB) | 80,501,389.39 | 24.39% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 75,952,721.71 | 30.82% | | Net Cash Flow from Operating Activities (RMB) | 19,512,139.95 | 307.41% | | Basic Earnings Per Share (RMB/share) | 0.4880 | 23.89% | | Weighted Average Return on Net Assets | 10.82% | 0.81% | Key Balance Sheet Data at Report End | Indicator | End of Current Reporting Period | Change from End of Previous Year | | :--- | :--- | :--- | | Total Assets (RMB) | 891,702,291.73 | 7.81% | | Net Assets Attributable to Shareholders (RMB) | 777,911,225.51 | 8.77% | - Year-to-date non-recurring gains and losses totaled **4.55 million RMB**, primarily from government subsidies, fair value changes of financial assets, and investment income[8](index=8&type=chunk)[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Shareholding%20of%20Top%20Ten%20Shareholders%20at%20Report%20End) As of the report end, the company had 7,930 common shareholders, with controlling shareholder Zhang Lixin holding **37.93%**, indicating a relatively concentrated equity structure - As of the report end, the company had **7,930** common shareholders[11](index=11&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Zhang Lixin | 37.93% | 63,635,554 | | Wang Yongcun | 11.10% | 18,628,001 | | Dong Jianguo | 2.74% | 4,604,001 | | Zhang Jichuan | 2.52% | 4,234,839 | | Xu Wenzhi | 2.38% | 3,994,841 | - Among the top ten unrestricted shareholders, Xu Wenzhi is the spouse of the company's controlling shareholder and actual controller, Zhang Lixin, and they are parties acting in concert[12](index=12&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=III.%20Changes%20in%20Restricted%20Shares) During the reporting period, the total number of restricted shares slightly increased from **11.26 million** to **11.28 million**, mainly due to an increase in executive lock-up shares and the release of some equity incentive restricted shares - During the reporting period, due to executive lock-up shares and equity incentive plans, the total number of restricted shares increased by **18,021** shares, from **11,259,342** shares to **11,277,363** shares[16](index=16&type=chunk) - The company's first phase employee stock ownership plan increased by **786,086** restricted shares in this period[16](index=16&type=chunk) [Significant Matters](index=8&type=section&id=Section%20III%20Significant%20Matters) This section details significant changes in financial data, progress of important events, and other key corporate matters [Significant Changes and Reasons in Key Financial Data](index=8&type=section&id=I.%20Significant%20Changes%20and%20Reasons%20in%20Key%20Financial%20Data%20During%20the%20Reporting%20Period) During the reporting period, the company experienced significant changes in multiple financial data points, including a **71.38%** increase in fixed assets due to the completion of Phase II construction, a **65.14%** increase in inventory for market demand, and a **55.76%** rise in R&D expenses due to increased investment Major Changes in Consolidated Balance Sheet | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Monetary Funds | -65.20% | Cash dividends and capital expenditures for construction in progress | | Inventory | 65.14% | Normal stocking based on market demand | | Fixed Assets | 71.38% | Transfer of company's Phase II construction project to fixed assets | | Construction in Progress | -87.07% | Transfer of company's Phase II construction project to fixed assets | | Employee Compensation Payable | -99.80% | Payment of year-end bonuses accrued in the previous year | Major Changes in Consolidated Income Statement (Year-to-Date) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Operating Cost | 34.80% | Increase in sales revenue and higher proportion of low-margin product sales | | Research and Development Expenses | 55.76% | Increased R&D investment | | Credit Impairment Losses | -783.29% | Increase in provision for bad debts | | Non-operating Expenses | 9680.22% | Increase in public welfare donations | Major Changes in Consolidated Cash Flow Statement (Year-to-Date) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 39.43% | Increase in sales collections year-over-year | | Cash Paid for Goods and Services | 47.52% | Increase in cash payments for raw material purchases year-over-year | | Cash Received Related to Other Financing Activities | 1279.45% | Receipt of employee stock ownership plan funds | [Progress of Significant Matters](index=10&type=section&id=II.%20Progress%20of%20Significant%20Matters%20and%20Analysis%20of%20Their%20Impact%20and%20Solutions) The company's 2019 share repurchase plan, involving **786,086** shares, was fully transferred to the first phase employee stock ownership plan account on September 7, 2020, at a price of **6.35 RMB/share** - The company completed a share repurchase on November 11, 2019, repurchasing a total of **786,086** shares, accounting for **0.47%** of the total share capital, with a total amount of approximately **9.99 million RMB**[25](index=25&type=chunk) - On September 7, 2020, all repurchased shares were transferred to the "Huizhong Instrument Co., Ltd. - First Phase Employee Stock Ownership Plan" special account at a transfer price of **6.35 RMB/share**[26](index=26&type=chunk) [Other Significant Matters](index=10&type=section&id=III.%20Other%20Significant%20Matters) During the reporting period, the company had no overdue unfulfilled commitments, unexecuted cash dividend policies, illegal external guarantees, or non-operating fund occupation by the controlling shareholder, nor did it conduct any research, communication, or interview activities - During the reporting period, the company had no overdue unfulfilled commitments, illegal guarantees, or controlling shareholder fund occupation[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The company did not conduct any research, communication, or interview activities during the reporting period[29](index=29&type=chunk) [Financial Statements](index=12&type=section&id=Section%20IV%20Financial%20Statements) This section presents the company's financial statements, including the consolidated balance sheet, income statement, and cash flow statement, along with explanations for any adjustments [Financial Statements](index=12&type=section&id=I.%20Financial%20Statements) As of September 30, 2020, the company's financial position remained stable with total assets reaching **891.70 million RMB**; year-to-date operating revenue was **260.81 million RMB**, up **26.89%**; net profit attributable to shareholders was **80.50 million RMB**, up **24.39%**; and net operating cash flow significantly increased by **307.41%** to **19.51 million RMB** [Consolidated Balance Sheet](index=12&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets were **891.70 million RMB**, a **7.81%** increase from the beginning of the year; total liabilities were **113.79 million RMB**, with a healthy debt-to-asset ratio of approximately **12.76%**; and net assets attributable to shareholders were **777.91 million RMB**, up **8.77%** from the beginning of the year Consolidated Balance Sheet Key Items (Unit: RMB) | Item | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 891,702,291.73 | 827,076,469.40 | | Total Liabilities | 113,791,066.22 | 111,915,865.05 | | Total Equity Attributable to Parent Company Owners | 777,911,225.51 | 715,160,604.35 | [Consolidated Income Statement](index=17&type=section&id=3%E3%80%81Consolidated%20Income%20Statement%20for%20the%20Current%20Reporting%20Period) For Q3 2020, the company achieved operating revenue of **108.93 million RMB**, a **4.79%** increase year-over-year, and net profit attributable to shareholders of **40.39 million RMB**, up **7.92%**; year-to-date operating revenue reached **260.81 million RMB**, up **26.89%**, and net profit attributable to shareholders was **80.50 million RMB**, up **24.39%**, demonstrating steady performance growth Consolidated Income Statement Key Items (Q3 Single Quarter) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 108,931,620.78 | 103,952,405.85 | | Net Profit Attributable to Parent Company Owners | 40,386,465.02 | 37,423,528.77 | Consolidated Income Statement Key Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 260,811,153.86 | 205,540,386.03 | | Net Profit Attributable to Parent Company Owners | 80,501,389.39 | 64,715,464.40 | [Consolidated Cash Flow Statement](index=24&type=section&id=7%E3%80%81Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Report%20End) Year-to-date, net cash flow from operating activities was **19.51 million RMB**, a significant **307.41%** increase from **4.79 million RMB** in the prior year, primarily due to increased sales collections; net cash outflow from investing activities was **47.67 million RMB**, and from financing activities was **28.84 million RMB**, mainly for asset acquisition, wealth management, and dividend payments Consolidated Cash Flow Statement Key Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 19,512,139.95 | 4,789,282.79 | | Net Cash Flow from Investing Activities | -47,674,680.09 | -27,051,590.68 | | Net Cash Flow from Financing Activities | -28,835,072.70 | -24,290,888.99 | | Net Increase in Cash and Cash Equivalents | -57,064,035.03 | -46,528,501.01 | [Explanation of Financial Statement Adjustments](index=28&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2020, the company adopted new revenue recognition standards, reclassifying portions of "Accounts Receivable" to "Contract Assets" and "Prepayments Received" to "Contract Liabilities" and "Other Current Liabilities" on the opening balance sheet, with no impact on retained earnings - The company adopted the new revenue recognition standards effective January 1, 2020, and adjusted relevant items in the financial statements as of the first adoption date (January 1, 2020)[60](index=60&type=chunk) Major Adjustments to Opening Balance Sheet | Item | Before Adjustment (RMB) | After Adjustment (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 164,160,844.25 | 132,716,361.37 | -31,444,482.88 | | Contract Assets | 0 | 31,444,482.88 | 31,444,482.88 | | Prepayments Received | 8,056,236.67 | 0 | -8,056,236.67 | | Contract Liabilities | 0 | 7,129,412.98 | 7,129,412.98 | | Other Current Liabilities | 0 | 926,823.69 | 926,823.69 | [Audit Report](index=34&type=section&id=III.%20Audit%20Report) This quarterly report has not been audited - The company's 2020 third-quarter report is unaudited[69](index=69&type=chunk)

COVID-19 Impact and Recovery - The company reported a significant impact on its operations due to the COVID-19 pandemic, with potential effects on the 2020 annual performance[6]. - The company resumed operations on February 10, 2020, as one of the first companies to do so in its locality, quickly restoring daily production capacity[7]. - The company has implemented measures to maintain customer engagement through remote communication during the pandemic[124]. - The company faced operational risks due to the COVID-19 pandemic but resumed operations on February 10, 2020, quickly restoring normal production capacity[124]. Financial Performance - The company's operating revenue for the first half of 2020 was ¥151,879,533.08, representing a 49.51% increase compared to ¥101,587,980.18 in the same period last year[32]. - The net profit attributable to shareholders for the first half of 2020 was ¥40,114,924.37, up 46.98% from ¥27,291,935.63 in the previous year[32]. - The net profit after deducting non-recurring gains and losses was ¥36,927,123.94, reflecting a 55.90% increase from ¥23,686,549.65 in the same period last year[32]. - The net cash flow from operating activities improved significantly to ¥1,312,684.38, compared to a negative cash flow of ¥3,670,587.52 in the previous year, marking a 135.76% increase[32]. - Basic earnings per share increased to ¥0.2433, a rise of 46.39% from ¥0.1662 in the same period last year[32]. - Total assets at the end of the reporting period were ¥831,659,791.38, a slight increase of 0.55% from ¥827,076,469.40 at the end of the previous year[32]. - The net assets attributable to shareholders increased to ¥724,641,721.99, up 1.33% from ¥715,160,604.35 at the end of the previous year[32]. - The weighted average return on equity was 5.49%, an increase of 1.17% compared to 4.32% in the previous year[32]. Research and Development - The company has invested heavily in research and development, particularly in ultrasonic flow measurement technology, and has developed a full range of products compatible with NB-IoT[12]. - R&D investment reached 8.36 million yuan, a year-on-year increase of 32.38%[76]. - The company has obtained multiple patents and software copyrights, indicating a strong commitment to research and innovation in ultrasonic measurement technology[41]. - The company has successfully applied self-rotation elimination technology and compression coding technology in domestic and international pilot applications of NB-IoT ultrasonic water meters[75]. - The company has established an intelligent manufacturing platform for ultrasonic flow products, covering an area of 83,000 square meters, making it one of the largest R&D and production bases in the country[96]. Market Strategy and Expansion - The company is focusing on expanding its market share in smart water supply and heating, leveraging its brand and technology advantages[10]. - The company plans to gradually release new production capacity based on market conditions to mitigate sales risks associated with expanded capacity[15]. - The company aims to leverage opportunities in smart city initiatives to increase market share and penetrate new markets[125]. - The company is actively exploring overseas markets to mitigate the impact of macroeconomic fluctuations on product demand[125]. - The company plans to expand its market presence through the introduction of new products and technologies in the ultrasonic measurement sector[24]. Product Development and Technology Integration - The company is focusing on the development of smart water and heating solutions, leveraging technologies such as NB-IoT for better data transmission and monitoring[24]. - The company is focusing on the integration of IoT and big data technologies with ultrasonic flow measurement products to enhance smart water and heating applications[41]. - The company has developed multiple customized solutions for the water supply industry, including leakage control and user metering solutions[44]. - The company’s ultrasonic flow meters are widely used in industries such as petrochemicals, thermal power, and steel, demonstrating their reliability and low power consumption[46]. - The integration of IoT and big data technologies is transforming the industry from product provision to customized overall solutions for water and heating management[66]. Risks and Challenges - The company faces risks related to changes in tax incentives and government subsidies, which could impact profitability[17]. - The company aims to strengthen its core business to offset potential impacts from changes in tax policies or subsidy conditions[18]. - The company faces risks related to market changes after expanding production capacity, which could lead to sales risks if market conditions deteriorate[127]. - Tax incentives and government subsidies play a significant role in the company's financial performance, and any changes in these policies could impact profits[129]. Shareholder Commitments and Governance - The company reported a commitment from major shareholders to not transfer or manage their shares for 36 months post-IPO, with a maximum annual transfer limit of 25% thereafter[136]. - The company committed to repurchase shares if the stock price remains below the latest audited net asset value for 20 consecutive trading days, with a repurchase price not exceeding 120% of the latest audited net asset value[139]. - Shareholders and management have pledged to increase their holdings, with commitments ranging from 0.5% to 2% of the total share capital within six months of the company's listing[140]. - The company has established a mechanism to ensure compliance with commitments made by its major shareholders and management[139]. - The company will publicly disclose any failure to meet commitments and the specific reasons for such failures[140]. Operational Efficiency and Management - The company has completed the construction of its intelligent manufacturing platform, which includes various software systems to improve production efficiency[50]. - The company has established 11 regional marketing service centers to provide comprehensive lifecycle services from pre-sales to after-sales[55]. - The company focuses on enhancing customer satisfaction through a dedicated customer service center and a 24-hour hotline[55]. - The company has introduced 58 new graduates in 2020, including 8 master's and 47 bachelor's degree holders, to strengthen its core technical team[99]. - The report highlights the strategic importance of leadership changes to drive future growth and operational efficiency[198].

Financial Performance - Total revenue for Q1 2020 was ¥42,011,043.82, an increase of 10.72% compared to ¥37,944,350.24 in the same period last year[8] - Net profit attributable to shareholders was ¥8,672,816.09, representing a growth of 21.72% from ¥7,125,147.60 year-on-year[8] - Net profit excluding non-recurring items reached ¥7,411,333.39, up 32.68% from ¥5,585,696.60 in the previous year[8] - Basic earnings per share increased to ¥0.0526, a rise of 21.20% compared to ¥0.0434 in the same period last year[8] - The operating profit for the same period was 10.47 million CNY, reflecting a year-on-year growth of 28.93%[21] - The company reported a profit before tax of CNY 9,941,744.70, up from CNY 8,118,610.04 in the previous period, showing a growth of approximately 22.4%[48] Assets and Liabilities - Total assets at the end of the reporting period were ¥830,367,496.42, reflecting a slight increase of 0.40% from ¥827,076,469.40 at the end of the previous year[8] - The company's total assets as of March 31, 2020, amounted to CNY 830,541,153.14, slightly up from CNY 827,076,469.40 at the end of 2019[44] - The company's total liabilities decreased to CNY 105,350,835.29 from CNY 111,915,865.05, indicating a reduction of about 5.0%[44] - The equity attributable to the parent company increased to CNY 725,190,317.85 from CNY 715,160,604.35, reflecting a growth of approximately 1.4%[44] Cash Flow - The net cash flow from operating activities was negative at -¥7,421,757.86, worsening by 18.13% compared to -¥6,282,726.25 in the same period last year[8] - Cash and cash equivalents decreased by 38.39 million CNY, a decline of 42.96% due to investments in financial products and material payments[19] - The company experienced a net cash outflow from investment activities of ¥30,502,480.41, an improvement from a net outflow of ¥43,834,952.67 in the previous period[55] - Operating cash inflow for the current period was ¥68,489,641.05, an increase of 14.4% from ¥59,965,803.67 in the previous period[57] Shareholder Information - The company repurchased a total of 786,086 shares, accounting for 0.47% of the total share capital, at an average price between RMB 12.48 and RMB 12.93 per share, totaling RMB 9,986,820.18[27] - The share repurchase plan was approved on October 25, 2019, with a total budget between RMB 8 million and RMB 10 million, and the repurchase period was set for 12 months[27] - Major shareholders promised to increase their holdings, with commitments ranging from 0.5% to 2% of the total share capital within six months[30] - The company has established a commitment to avoid any conflicts of interest or competition with its major shareholders and related parties for a period of five years[28] Research and Development - The company is currently developing a portable ultrasonic flowmeter, which aims to break the domestic monopoly of imported devices and promote the localization of high-end ultrasonic flowmeters[21] - The intelligent monitoring platform for heat networks is in the research phase, expected to enhance operational efficiency and decision-making capabilities for heating companies[21] - The company has invested significantly in R&D for wireless communication technologies, achieving full series compatibility with NB-IoT[24] - Research and development expenses for Q1 2020 were CNY 2,958,253.22, compared to CNY 2,618,874.63 in the previous period, indicating an increase in investment in innovation[47] Market and Operational Risks - The company faces risks from macroeconomic fluctuations that could impact market demand for its products[25] - Changes in tax incentives and government subsidies could affect the company's profitability[25] - The COVID-19 pandemic caused a one-week delay in resuming operations, but the company quickly restored normal production capacity[26] Compliance and Governance - The company has ensured that all commitments made by its major shareholders are being fulfilled during the reporting period[28] - The company's board of directors has taken steps to monitor compliance with the commitments made by shareholders regarding share transfers and repurchases[28] - The company has implemented new revenue and leasing standards starting January 1, 2020, affecting the classification of certain assets[60] - The company has no reported violations regarding external guarantees during the reporting period[34]

Production Capacity and Technology Development - The company reported a significant increase in production capacity with the completion of the first production line for ultrasonic flow products, capable of producing 300,000 units annually[9]. - The company has invested heavily in technology research and development, achieving full series product compatibility with NB-IoT and offering various wireless transmission methods including 4G, LoRa, and Sigfox[8]. - The company has invested CNY 100 million in the construction of the second phase of its new factory project, which is expected to significantly enhance production capacity[28]. - The first production line of the intelligent manufacturing workshop for ultrasonic flow measurement products has been completed and has a capacity of 300,000 units[29]. - The company has established intelligent production lines for household instruments, industrial instruments, and flexible processing of stainless steel pipes, enhancing production efficiency and quality[69]. - The company has completed the overall construction of its intelligent manufacturing platform, significantly enhancing production efficiency through smart forecasting and special contracts[39]. Financial Performance - The company's operating revenue for 2019 was ¥360,263,748.06, representing a 28.77% increase compared to ¥279,765,364.62 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥109,661,099.66, a 34.44% increase from ¥81,566,465.74 in 2018[23]. - The net profit after deducting non-recurring gains and losses was ¥101,795,101.30, up 31.81% from ¥77,229,209.42 in 2018[23]. - The net cash flow from operating activities was ¥99,747,784.94, reflecting a 35.82% increase compared to ¥73,441,698.64 in 2018[23]. - The total assets at the end of 2019 amounted to ¥827,076,469.40, a 16.74% increase from ¥708,462,950.70 at the end of 2018[23]. - The net assets attributable to shareholders at the end of 2019 were ¥715,160,604.35, which is a 15.19% increase from ¥620,850,348.36 at the end of 2018[23]. - The basic earnings per share for 2019 was ¥0.6597, an increase of 34.22% from ¥0.4915 in 2018[23]. - The diluted earnings per share for 2019 was ¥0.6509, up 32.43% from ¥0.4915 in 2018[23]. - The weighted average return on equity for 2019 was 16.44%, an increase of 2.78% from 13.66% in 2018[23]. - The quarterly operating revenue for Q4 2019 was ¥154,723,362.03, showing a significant increase compared to previous quarters[24]. Market Expansion and Product Development - The company is focused on expanding its market presence in smart water supply and heating sectors, which are closely tied to national infrastructure investments[6]. - The company is committed to maintaining its leadership in the ultrasonic flow product market, being one of the largest R&D and production bases in China[8]. - The company has successfully launched several new products, including the SCL-61H household ultrasonic water meter and various models of ultrasonic flow meters, expanding its product portfolio[65]. - The company is actively integrating IoT and big data technologies with its products to accelerate the development of smart water and heating applications[29]. - The company has developed solutions for water supply and heating industries, including loss control and energy-saving solutions, which have been well received by customers[65]. - The company is exploring smart heating measurement services, providing comprehensive measurement services to improve management efficiency for clients[80]. Research and Development - The company has increased its R&D investment to CNY 16.05 million, a growth of 23.41% compared to the previous year[57]. - The company holds nearly 100 patents, including 6 invention patents, 42 utility model patents, and 21 design patents[57]. - The company has completed key R&D projects, including a modular low-power NB-IoT data collector, which is now ready for mass production[96]. - The company continues to focus on the research and development of ultrasonic flow measurement technology and products, with a wide range of applications across various industries[115]. - The company is committed to increasing R&D investment in ultrasonic flow measurement technology, introducing new products and features to meet market demands[127]. Customer Service and Market Strategy - The company has established 11 regional marketing service centers to provide comprehensive lifecycle services from pre-sales to post-sales[46]. - The company has established a customer service center aimed at improving service quality and customer satisfaction[44]. - The company employs a mixed sales model combining direct sales and agency sales, targeting various industries and regions to meet diverse customer needs[40]. - The company will enhance its customer service capabilities through localized after-sales service and electronic communication channels[126]. - The company aims to improve quality control and efficiency by utilizing its smart manufacturing platform to optimize production processes[133]. Risk Management and Governance - The company faces risks related to macroeconomic fluctuations, which could impact market demand for its products[6]. - The company benefits from tax incentives and government subsidies, which are crucial for its financial performance; changes in these policies could impact profitability[11]. - The company is committed to optimizing its governance structure and enhancing its core management team's capabilities to ensure sustainable growth[74]. - The company is enhancing its governance capabilities and systems, focusing on quality management, environmental management, and risk prevention[143]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total of 166,971,434 shares[12]. - The profit distribution plan for 2018 includes a cash dividend of 2 RMB per 10 shares, totaling approximately 33.39 million RMB, which represents 100% of the total profit distribution[148]. - The company aims to maintain a minimum cash dividend ratio of 20% during its growth phase with significant capital expenditure plans[150]. - The total cash dividend for 2019, including other methods, was 33,394,286.80 RMB, maintaining a ratio of 30.45% against the net profit[151]. Corporate Social Responsibility - In 2019, the company provided holiday gifts and consolation money to 11 key impoverished households in the Tangshan area, totaling 40,449 yuan, with 33,849 yuan in funds and 6,600 yuan in material donations[199][200]. - The company purchased 510 boxes of "Guichang" kiwifruit from a poverty alleviation cooperative, amounting to a total of 30,549 yuan[199].

Financial Performance - Net profit attributable to shareholders increased by 29.79% to RMB 37,423,528.77 for the current period[9] - Operating revenue rose by 27.26% to RMB 103,952,405.85 for the current period[9] - Basic earnings per share increased by 30.47% to RMB 0.2278[9] - The net profit attributable to the parent company was CNY 37,423,528.77, an increase of 29.3% compared to CNY 28,834,774.96 in the same period last year[39] - Total operating revenue reached CNY 205,540,386.03, up 26.4% from CNY 162,535,925.83 in the previous year[42] - Operating profit increased to CNY 43,099,735.78, representing a growth of 32.1% compared to CNY 32,627,669.78 in the same quarter last year[38] - Total profit amounted to CNY 43,104,703.78, an increase of 32.1% compared to CNY 32,627,669.78 in the previous year[38] - The comprehensive income totalled CNY 37,423,528.77, reflecting a 29.3% increase from CNY 28,834,774.96 in the same period last year[39] Cash Flow - The net cash flow from operating activities for the year-to-date period was RMB 30,820,105.99, a significant increase of 269.41%[9] - Operating cash flow for the period reached ¥30,820,105.99, a significant increase from ¥8,343,048.73 in the previous period, reflecting a growth of approximately 269.5%[46] - Total cash inflow from operating activities amounted to ¥217,174,875.20, compared to ¥186,666,101.54 in the same period last year, indicating an increase of about 16.4%[46] - Cash outflow from operating activities was ¥186,354,769.21, up from ¥178,323,052.81, representing a rise of approximately 4.1%[46] - Cash received from other operating activities increased by 74.27% to ¥11,323,978.36, primarily due to government subsidies and the recovery of bid deposits[25] Assets and Liabilities - Total assets increased by 7.20% to RMB 759,463,090.70 compared to the end of the previous year[9] - Total liabilities decreased to ¥81,075,270.09 from ¥87,612,602.34, indicating improved financial stability[34] - Cash and cash equivalents decreased by 39.66% to ¥64,582,785.40 from ¥107,036,445.06 due to cash dividends and construction expenditures during the reporting period[22] - Total current assets as of September 30, 2019, were ¥421,625,460.84, slightly up from ¥416,370,705.07 at the end of 2018[32] - Total non-current assets increased to ¥337,837,629.86 from ¥292,092,245.63, reflecting ongoing investments[33] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 11,774[13] - The top shareholder, Zhang Lixin, holds 37.92% of the shares, totaling 63,635,554 shares[13] Expenses - Operating costs increased by 43.98% to ¥86,819,492.13 from ¥60,301,726.82, driven by growth in sales revenue and a higher proportion of low-margin product sales[23] - R&D expenses rose by 42.53% to ¥9,521,272.38 from ¥6,680,133.72, reflecting increased investment in research and development[24] - Income tax expenses increased by 52.60% to ¥9,729,094.25 from ¥6,375,710.37, due to a rise in profit compared to the previous period[24] - The total operating costs were CNY 149,062,962.44, which is a 23.4% increase from CNY 120,775,994.90 in the same period last year[42] Government Support - The company received government subsidies amounting to RMB 3,304,094.83 during the reporting period[10] Other Financial Activities - Cash recovered from investments rose by 32.50% to ¥265,000,000.00, attributed to maturing financial products[25] - Cash paid for investments increased by 47.22% to ¥265,000,000.00, mainly due to the purchase of financial products[25] - Cash dividends distributed increased by 36.38% to ¥23,981,000.00 compared to ¥17,583,341.25 in the previous period[25] - The company reported investment income of CNY 1,179,542.52, down 24.1% from CNY 1,553,062.81 in the previous year[38] Audit Information - The company did not undergo an audit for the third quarter report[50]

Financial Performance - Total revenue for the reporting period was ¥101,587,980.18, an increase of 25.65% compared to ¥80,852,538.50 in the same period last year [24]. - Net profit attributable to shareholders was ¥27,291,935.63, reflecting a growth of 31.55% from ¥20,746,186.16 year-over-year [24]. - The net profit after deducting non-recurring gains and losses was ¥23,686,549.65, up 32.14% from ¥17,924,979.50 in the previous year [24]. - Basic earnings per share increased to ¥0.1662, a rise of 32.64% compared to ¥0.1253 in the same period last year [24]. - The company achieved operating revenue of RMB 101.59 million, representing a year-on-year growth of 25.65% [54]. - Net profit attributable to shareholders reached RMB 27.29 million, an increase of 31.55% compared to the same period last year [54]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2019, representing a 20% year-over-year growth [89]. Cash Flow and Assets - The company reported a net cash flow from operating activities of -¥3,670,587.52, a decline of 42.47% from -¥2,576,451.62 year-over-year [24]. - Total assets at the end of the reporting period were ¥711,241,136.11, a slight increase of 0.39% from ¥708,462,950.70 at the end of the previous year [24]. - Cash and cash equivalents decreased by 31.42% compared to the beginning of the period, primarily due to cash dividends and expenditures on construction in progress during the reporting period [49]. - The company's current assets decreased to RMB 384,781,356.72 from RMB 416,370,705.07, representing a decline of approximately 7.6% [161]. - The total cash and cash equivalents at the end of the period were 50,307,235.14 CNY, down from 58,901,638.65 CNY at the end of the previous period [172]. Research and Development - The company has invested significantly in research and development, particularly in the application of NB-IoT technology, to meet the growing demand for intelligent metering instruments and systems [7]. - Research and development expenses increased by 46.80% to RMB 6.31 million, reflecting a commitment to product innovation [59]. - Ongoing research and development investments are expected to reach 200 million RMB in 2019, focusing on advanced technologies and product innovation [91]. Market and Product Development - The company is focused on expanding its market presence in smart water management and related applications [9]. - The company aims to provide comprehensive solutions for smart water management through its ultrasonic water meters and associated software products, enhancing operational efficiency for water supply companies [38]. - The demand for intelligent water meters is expected to grow geometrically due to urbanization and the need for upgrades from traditional mechanical meters [48]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [93]. - New product development efforts have resulted in the introduction of three innovative products, which are expected to contribute an additional 300 million RMB in revenue [92]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations that could negatively impact market demand for its products [6]. - The company acknowledges the risk of new substitute technologies emerging that could adversely affect its performance despite its ongoing innovation efforts [8]. - Changes in tax incentives and government subsidy policies could impact the company's net profit if it fails to maintain its high-tech enterprise qualifications [10]. - The company operates in sectors closely tied to macroeconomic conditions, which could affect its performance in a slowing economy [6]. Shareholder and Equity Information - The company does not plan to distribute cash dividends or issue bonus shares [11]. - The company held its annual shareholders' meeting on May 9, 2019, with a participation rate of 42.80% [82]. - Major shareholders, including Wang Yongcun, commit to increasing their holdings by at least 0.5% and not exceeding 1% of the total share capital within 6 months [95]. - The company reported a total share capital increase of 47,962,000 shares, resulting in a new total of 167,822,200 shares after the capital increase and share repurchase adjustments [134]. Corporate Governance and Compliance - The company has not faced any penalties or rectification issues during the reporting period [106]. - The company has fulfilled its commitments to minority shareholders in a timely manner [108]. - The company has implemented an employee stock ownership plan and related incentive measures [107]. - The financial statements are prepared based on the actual transactions and events, in accordance with the accounting standards issued by the Ministry of Finance [183]. Strategic Initiatives - The company is actively recruiting high-end talent to support its transformation and upgrade strategy [56]. - A strategic acquisition of a smaller competitor is in progress, which is anticipated to enhance the company's product offerings and increase market competitiveness [88]. - The company has established partnerships with two major distributors to enhance its supply chain efficiency and improve product delivery times [90].

证券代码：300371 证券简称：汇中股份 公告编码：2019-027 汇中仪表股份有限公司 关于参加河北辖区上市公司 2019 年度投资者网上集体接待日活 动的公告 | --- | |-------------------------------------------------------------------------------| | | | 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 | | 假记载、误导性陈述或重大遗漏。 | | 为加强上市公司投资者关系管理，提高上市公司信息披露透明度，更好的保 | | 护投资者合法权益，汇中仪表股份有限公司（以下简称 " 公司 " ）将于 | | 15 日（星期三）下午 15:00-17:00 参加中国证监会河北监管局举办的主题为"理性 | | 投资、沟通增信"的河北辖区上市公司 2019 年度投资者网上集体接待日活动暨全 | | 国投资者保护宣传日活动。投资者可登陆 " 全景 ▪ 路演天下 " （ http://rs.p5w.net | | 与交流。 | | 届时公司高管将与投资者通过网络在线交流的形式就公司 2018 | | 公司 ...

Financial Performance - Total operating revenue for Q1 2019 was ¥37,944,350.24, an increase of 35.36% compared to ¥28,032,973.31 in the same period last year[8] - Net profit attributable to shareholders was ¥7,125,147.60, representing a growth of 41.54% from ¥5,034,051.78 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥5,585,696.60, up 29.07% from ¥4,327,721.35 in the previous year[8] - Basic earnings per share increased to ¥0.0608, a rise of 44.76% compared to ¥0.0420 in the same period last year[8] - Operating profit for the same period was 8.12 million yuan, an increase of 60.04% year-on-year[21] - Net profit for Q1 2019 reached CNY 7,125,147.60, representing a 41.4% increase from CNY 5,034,051.78 in Q1 2018[59] Cash Flow and Assets - The net cash flow from operating activities was negative at -¥6,282,726.25, a decline of 79.33% from -¥3,503,539.51 year-on-year[8] - The company's total assets decreased by 46.22%, with cash and cash equivalents dropping from CNY 107,036,445.06 to CNY 57,561,663.57[19] - As of March 31, 2019, the company's cash and cash equivalents decreased to ¥57,561,663.57 from ¥107,036,445.06 at the end of 2018, representing a decline of approximately 46.3%[51] - The ending balance of cash and cash equivalents was 35,366,554.06, up from 27,494,359.94 year-over-year[64] Expenses and Liabilities - The gross profit margin decreased due to a 74.75% increase in operating costs, which reached CNY 17,375,976.75 compared to CNY 9,943,605.70 in the previous year[19] - The company's management expenses rose by 60.87%, totaling CNY 6,715,837.38, mainly due to increased equity incentive costs[19] - The company’s tax expenses increased by 153.34%, amounting to CNY 993,462.44, due to a rise in taxable income[19] - Current liabilities decreased to CNY 65,019,431.77 from CNY 76,212,602.34, indicating a reduction of approximately 14.5%[54] Shareholder Commitments and Corporate Governance - The company committed to not providing financial assistance or guarantees for incentive objects during the reporting period, fulfilling its commitment made on June 1, 2018, for a duration of 48 months[28] - The company’s major shareholders and executives have committed to not transferring or entrusting their shares for 36 months post-listing, with a maximum annual transfer limit of 25% of their total shares held[30] - The company will supervise major shareholders' share reductions and announce any reductions three trading days in advance[32] - The company’s major shareholders have made long-term commitments to avoid engaging in any business that may compete with the company[34] Development and Innovation - The company is developing a smart heating platform (V1.0) aimed at enhancing management efficiency in the heating industry[21] - A new wireless data acquisition device based on NB-IoT technology is under development, which will significantly reduce power consumption and improve market competitiveness[21] - Research and development expenses for Q1 2019 were CNY 2,618,874.63, up from CNY 2,184,600.23 in Q1 2018, reflecting a commitment to innovation[58] Market and Economic Risks - The company faces risks related to macroeconomic fluctuations that could impact market demand for its products[24] - Changes in tax incentives and government subsidies could adversely affect the company's net profit if unfavorable policies are implemented[27] Government Subsidies and Support - The company received government subsidies amounting to ¥738,094.83 during the reporting period[9]