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]

Production Capacity and Manufacturing - The company plans to increase its production capacity to 1.55 million units per year by the end of 2019 with the new intelligent manufacturing workshop for ultrasonic flow measurement products[9]. - The company is implementing a smart factory strategy, with initial phases of software systems for product lifecycle management and intelligent warehousing already in use, enhancing production efficiency[39]. - The company reported a production increase of 50.24%, with total production reaching 243,959 units compared to 162,375 units in 2017[70]. - The smart manufacturing workshop for ultrasonic flow measurement products is expected to be operational by 2019, significantly enhancing production efficiency and product quality[100]. - The company aims to complete the construction of the smart manufacturing workshop and implement a capacity enhancement plan to boost production of various instruments[103]. Financial Performance - The company's operating revenue for 2018 was ¥279,765,364.62, representing a 13.42% increase compared to ¥246,668,974.00 in 2017[22]. - The net profit attributable to shareholders for 2018 was ¥81,566,465.74, which is a 25.02% increase from ¥65,241,127.80 in 2017[22]. - The net profit after deducting non-recurring gains and losses was ¥77,229,209.42, up 22.16% from ¥63,218,288.65 in 2017[22]. - The basic earnings per share for 2018 was ¥0.6881, a 26.56% increase from ¥0.5437 in 2017[22]. - The total assets at the end of 2018 were ¥708,462,950.70, an 8.36% increase from ¥653,813,290.56 at the end of 2017[22]. Research and Development - The company has invested significantly in research and development, particularly in NB-IoT technology applications, to meet the growing demand for intelligent metering instruments[7]. - Research and development investment reached 13.01 million yuan, up 21.56% from the previous year[57]. - The company completed several R&D projects in 2018, including the anti-freeze ultrasonic water meter and the NB-IoT based smart large-caliber ultrasonic water meter[78]. - The company has implemented a tiered R&D strategy to ensure continuous innovation and product competitiveness[57]. - The company aims to increase its R&D investment, focusing on wireless communication technologies such as NB-IoT, LoRaWAN, and Sigfox, to maintain its leading position in the ultrasonic flow measurement sector[101]. Market Position and Strategy - The company has established a strong market presence and brand recognition for its ultrasonic water meters, but faces sales risks if market conditions change unfavorably after expanding production capacity[9]. - The company is positioned to capture more market share in the smart water meter industry due to its core technology and ongoing product innovation[46]. - The company aims to provide comprehensive solutions for water utilities, integrating data collection and analysis technologies to improve operational efficiency and reduce water loss[35]. - The company is expanding its market presence internationally, having established connections with agents in Europe and successfully supplying products to Australia[51]. - The company anticipates a geometric increase in demand for smart water meters as urbanization progresses and policies promoting smart city initiatives continue[45]. 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]. - The company recognizes the potential impact of changes in tax incentives and government subsidies on its net profit, which currently play a significant role in its financial performance[10]. - The company’s products are closely linked to macroeconomic conditions, and any significant fluctuations in the economy could adversely affect market demand for its products[115]. - 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[118]. Shareholder and Governance - The company will distribute a cash dividend of 2.00 yuan per 10 shares (including tax) based on a total of 119,905,000 shares, and will also increase capital by 4 shares for every 10 shares held[10]. - The cash dividend for 2018 represents 29.40% of the net profit attributable to the company's ordinary shareholders, which was 81,566,465.74 RMB[128]. - The company has maintained a profit distribution plan that aligns with its articles of association and shareholder resolutions[123]. - The company has established a framework for managing potential conflicts of interest among its major shareholders and management[135]. - The company’s governance structure emphasizes the importance of compliance with these commitments to mitigate risks associated with shareholding changes[133]. Customer Service and Satisfaction - The company has established a customer service center aimed at enhancing customer satisfaction and service quality, with a commitment to respond to customer inquiries within 2 hours[43]. - The company has a strong customer base in the heating and water supply industries, with high customer retention due to long-term partnerships with agents[41]. - The company is committed to enhancing its service brand, with a strong customer service team and improved service channels through digital platforms[101]. - The company emphasizes employee welfare and development, providing various benefits and career growth opportunities[174]. - The company has focused on environmental protection and compliance with regulations in its operations[175]. Financial Management and Investments - The company engaged in wealth management with a total of 18 million CNY, including 14 million CNY in bank financial products and 4 million CNY in broker financial products[168]. - The bank financial products yielded an annualized return of 3.55%, while the broker financial products had an annualized return of 2.90%[169]. - The company has established a stable dividend policy to protect shareholder rights[174]. - The company has not engaged in any significant external investments or mergers during the reporting period, focusing on internal growth strategies[159]. - The average return rate for the financial products was between 3.60% and 4.80%[171].

Financial Performance - Operating revenue for the reporting period was ¥81,683,387.33, representing a year-on-year increase of 6.86%[9] - Net profit attributable to shareholders was ¥28,834,774.96, up 22.75% year-on-year[9] - Basic earnings per share increased by 24.94% to ¥0.2445[9] - The weighted average return on net assets was 4.91%, an increase of 0.71% compared to the previous year[9] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥27,472,171.57, an increase of 16.70% year-on-year[9] - The total operating revenue for the third quarter was ¥81,683,387.33, an increase of 6.4% compared to ¥76,437,924.60 in the same period last year[35] - The net profit for the third quarter reached ¥28,834,774.96, up 22.9% from ¥23,489,798.86 in the previous year[36] - Total operating revenue for the period reached ¥162,535,925.83, an increase of 12.9% compared to ¥145,070,312.51 in the previous period[38] - Net profit attributable to the parent company was ¥49,580,961.12, up 43.8% from ¥34,484,211.61 in the same period last year[40] - Basic and diluted earnings per share increased to ¥0.4204 from ¥0.2874, representing a growth of 46.2%[41] - Operating profit for the period was ¥55,851,671.49, a rise of 44.3% compared to ¥38,732,050.73 in the previous period[40] Assets and Liabilities - Total assets at the end of the reporting period reached ¥655,922,387.50, an increase of 0.32% compared to the end of the previous year[9] - Total liabilities increased by 38.79% to ¥27,376,351.06 from ¥19,724,784.00, mainly due to amounts not yet due for payment under contracts[19] - The total liabilities increased to ¥69,276,358.49 from ¥51,879,081.35, indicating a rise in financial obligations[33] - The total equity attributable to shareholders decreased to ¥586,646,029.01 from ¥601,934,209.21, reflecting changes in retained earnings and capital reserves[33] Cash Flow - Cash flow from operating activities showed a significant decline, with a net amount of ¥8,343,048.73, down 59.46% year-to-date[9] - Cash flow from operating activities decreased by 35.44% to ¥6,497,997.34 from ¥10,065,005.27, mainly due to reduced recovery of bid deposits[22] - Cash inflow from investment activities totaled ¥244,470,616.43, significantly higher than ¥151,988,328.76 in the previous period[44] - The net cash flow from investing activities was -8,758,780.66 CNY, a decrease from 45,405,414.29 CNY in the previous period[45] - The total cash inflow from financing activities was 25,871,851.93 CNY, compared to 398,888.55 CNY in the previous period[45] - The net cash flow from financing activities was -41,706,836.02 CNY, worsening from -10,789,015.17 CNY in the previous period[45] - The cash and cash equivalents at the end of the period totaled 39,459,557.69 CNY, down from 104,714,735.67 CNY in the previous period[45] - The company reported a net decrease in cash and cash equivalents of -42,132,351.62 CNY, contrasting with an increase of 55,138,922.28 CNY in the previous period[45] Shareholder Information - The company reported a total of 9,110 shareholders at the end of the reporting period[12] - The top shareholder, Zhang Lixin, holds 37.88% of the shares, totaling 45,453,967 shares[13] - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[14] Inventory and Expenses - Cash paid for purchasing goods and services increased by 52.67% to ¥75,064,959.95 from ¥49,167,253.13, due to higher cash outflows for raw material purchases[22] - Cash paid for fixed assets and intangible assets surged by 1,012.42% to ¥73,229,397.09 from ¥6,582,914.47, primarily due to expenditures on the intelligent manufacturing workshop project[22] - Inventory increased by 69.75% to ¥74,219,287.12 from ¥43,722,356.56, attributed to increased stocking based on sales conditions[19] - Operating costs for the quarter were ¥56,043,648.79, up from ¥53,539,864.19, representing a 4.7% increase[35] - Research and development expenses were ¥2,379,141.94, slightly down from ¥2,549,592.76, showing a focus on cost management in R&D[35] - Research and development expenses were ¥6,680,133.72, a decrease of 16.5% compared to ¥7,999,178.85 in the previous period[38] Investment Income - Investment income rose by 299.84% to ¥3,992,090.97 from ¥998,423.36, due to increased returns from recovered financial products[20] - The company reported an investment income of ¥1,553,062.81, a recovery from a loss of ¥59,905.40 in the previous year[36] - Other income increased to ¥11,712,281.23, up 29.1% from ¥9,065,482.24 in the previous period[40] Future Plans - The company plans to continue expanding its intelligent manufacturing capabilities and product offerings in the ultrasonic flow measurement sector[24] Audit Information - The company did not undergo an audit for the third quarter report[46]

Financial Performance - Total operating revenue for the first half of 2018 was CNY 80,852,538.50, representing a 17.81% increase compared to CNY 68,632,387.91 in the same period last year[20]. - Net profit attributable to shareholders was CNY 20,746,186.16, an increase of 88.70% from CNY 10,994,412.75 year-on-year[20]. - Net profit after deducting non-recurring gains and losses was CNY 17,924,979.50, up 77.30% from CNY 10,110,211.67 in the previous year[20]. - Basic earnings per share rose to CNY 0.1754, a 91.48% increase compared to CNY 0.0916 in the same period last year[20]. - The company reported a 96.22% increase in intangible assets due to the acquisition of land for the intelligent manufacturing workshop for ultrasonic flow measurement products[33]. - The company focused on enhancing product structure, increasing the proportion of high-profit products, which contributed to an overall increase in profit margins[41]. - The gross profit margin for ultrasonic water meters increased by 4.64% to 63.27%, while the gross profit margin for ultrasonic flow meters was 81.01%[51]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to -CNY 2,576,451.62, a reduction of 87.72% from -CNY 20,987,424.68 in the previous year[20]. - Cash and cash equivalents decreased by 44.28% due to stock repurchases and land purchases during the reporting period[34]. - The total assets at the end of the reporting period were CNY 625,018,744.08, down 4.40% from CNY 653,813,290.56 at the end of the previous year[20]. - Total cash inflow from investment activities was 162,824,369.85 CNY, compared to 76,088,328.76 CNY in the prior period, indicating a significant increase[138]. - The total cash outflow for investment activities was 141,306,880.76 CNY, compared to 41,255,034.15 CNY in the previous period, indicating increased investment activity[138]. - The company reported a decrease in cash and cash equivalents from ¥141,725,506.35 at the beginning of the period to ¥78,969,154.41 at the end, representing a decline of approximately 44.3%[126]. Inventory and Production - Inventory increased by 81.95% compared to the beginning of the period, attributed to increased stocking based on sales conditions[34]. - The company has invested in the construction of an intelligent manufacturing workshop, significantly increasing its in-progress construction assets by 924.89%[33]. - The company’s ultrasonic heat meters are positioned as market leaders due to their high precision, stability, and low power consumption, with a broad market outlook driven by energy-saving initiatives[27]. - The company’s ultrasonic water meters are recognized for their low starting flow, high accuracy, and reliability, which are expected to increase their market share in industrial water metering[28]. Research and Development - The company is committed to R&D innovation and improving product and service quality to create value for customers[41]. - The company has launched multiple embedded software versions for ultrasonic flow meters and heat meters, with the latest versions released in February 2018[36]. - The company continues to innovate with new software releases, such as the SCL-715 and SCL-716 ultrasonic flow meters, both launched in February 2018[36]. - The company has a diverse range of products, including wireless data collectors and portable ultrasonic flow meters, enhancing its product portfolio[36]. Market Strategy and Risks - The company faces risks related to maintaining high growth due to potential market fluctuations and management challenges during rapid expansion[6]. - The company is actively expanding its market presence in the heating measurement, water trade settlement, and industrial process control sectors[41]. - The company has a dual sales model consisting of direct sales and agency sales, focusing on expanding sales channels and enhancing sales capabilities[32]. - The company is strategically positioned to leverage its software capabilities for future growth and market penetration[36]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[8]. - The participation rate of investors in the annual and extraordinary general meetings was 45.06% and 43.43% respectively[68]. - The company has made commitments regarding share transfer restrictions for its major shareholders, effective for 36 months post-IPO[70]. - The company has a long-term commitment to avoid any form of competition with its own business during the tenure of its directors and senior management[76]. Compliance and Legal Matters - The company has not engaged in any major litigation or arbitration matters during the reporting period[84]. - The company’s half-year financial report has not been audited[82]. - The company has not reported any expected inability to recover principal from entrusted financial management[60]. - The company has committed to timely and fully disclose any failure to fulfill promises made to investors[79].