证券代码：300417 证券简称：南华仪器 编号:NH/IR2019-07 佛山市南华仪器股份有限公司投资者关系活动记录表 | --- | --- | --- | |-------------------|---------------------------------|---------------------------------------------------------------------| | | | | | 投 资 者 关 系 活 | √ | 特定对象调研 □分析师会议 | | 动类别 | □ | 媒体采访 □业绩说明会 | | | □ 新闻发布会 □路演活动 | | | | □ 现场参观 | | | | | □其他 （请文字说明其他活动内容） | | 参 与 单 位 名 称 | 广发证券 孙柏阳 睿远基金 李一鸣 | | | | 玄元投资 李洲 | | | 及人员姓名 | 殷实投资 陈曦 | | | | 圆成基金 周航 | | | 时 间 | 2019 年 9 月 25 | 日 15：00-16：30 | | 地点 | 南华仪器公司一楼会议室 | | | 上 市 公 司 接 待 | ...

Group 1: Company Overview and Performance - Nanhua Instrument has been listed for over five years, showing a consistent upward growth trend [1] - In 2019, the company benefited from the "New National Standard" policy, resulting in significant performance growth [1] - The 2020 performance forecast indicates a decline in net profit due to the impact of the pandemic and the gradual release of policy dividends from the national standard upgrade [1] Group 2: Market and Product Development - The company has been actively enhancing R&D and improving product compatibility to meet diverse customer needs [1] - Environmental monitoring products were initially launched in 2019, generating revenue, and the company continues to expand sales channels [1] - The CEMS products are ready for mass expansion and can monitor CO2 and other gas pollutants, aligning with government initiatives for carbon peak and carbon neutrality [2] Group 3: Future Industry Trends and Company Strategy - The company anticipates a steady expansion in the motor vehicle inspection market, driven by stricter environmental regulations and increasing vehicle ownership [2] - There is a focus on enhancing software technology reserves, particularly in carbon emission monitoring and trading systems [3] - The company is exploring merger and acquisition opportunities to strengthen its position in the automotive inspection sector [3] Group 4: Regulatory and Policy Impact - The government’s emphasis on carbon peak and carbon neutrality is seen as a positive opportunity for the company, which is actively researching related technologies [2] - The VOC monitoring market is expected to grow as national regulatory standards become more stringent, with the company positioned to meet these emerging demands [3]

Financial Performance - The company's revenue for the third quarter was CNY 34,184,627.84, an increase of 4.49% compared to the same period last year, but a decrease of 35.48% year-to-date [5]. - Net profit attributable to shareholders was CNY 500,192.89, representing a 110.00% increase year-on-year, but a significant decrease of 75.21% year-to-date [5]. - Total operating revenue for the current period was ¥92,682,930.32, a decrease of 35.5% compared to ¥143,641,316.74 in the previous period [37]. - Net profit for the current period was ¥2,948,718.02, a significant decline of 75.2% from ¥11,897,136.99 in the previous period [38]. - Basic and diluted earnings per share decreased to ¥0.0216 from ¥0.0868, representing a drop of 75.2% [39]. - The company reported a total comprehensive income of ¥3,282,721.36, down 72.5% from ¥11,911,728.60 in the previous period [39]. Cash Flow and Liquidity - The cash flow from operating activities for the year-to-date period was CNY 23,850,602.03, showing a substantial increase of 235.30% [5]. - The net cash inflow from investment activities was 73,592,987.06 CNY, compared to a net outflow of 120,265,527.96 CNY in the previous period [41]. - The total cash and cash equivalents at the end of the period amounted to 130,545,439.80 CNY, an increase from 31,663,276.62 CNY in the previous period [41]. - The cash balance in the trust account related to the Chongqing Trust project is 15.81 million RMB, with a distribution of 1% of the trust principal amounting to 1.51 million RMB [28]. - The cash received from other investment activities was 90,600,000.00 CNY, down from 140,000,000.00 CNY in the previous period [41]. - The company’s cash and cash equivalents saw a net increase of 94,962,788.84 CNY, contrasting with a net decrease of 171,565,892.01 CNY in the previous period [41]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 531,670,950.91, a decrease of 1.21% compared to the end of the previous year [5]. - The company’s total liabilities decreased by CNY 9,764,300, primarily due to the payment of performance bonuses from previous years [14]. - The total liabilities decreased to ¥33,088,408.32 from ¥40,180,040.29, a reduction of 17.5% [36]. - The company reported a total current liabilities of CNY 31.81 million, down from CNY 38.88 million, a decrease of about 18.2% [35]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 11,663 [23]. - The top 10 shareholders hold a combined 49.79% of the shares, with the largest shareholder, Li Yuan, holding 13.13% [23]. - The company has 50,322,131 shares under lock-up, all of which are executive lock-up shares [25]. - The total number of restricted shares canceled is 817,553, reducing the total share capital from 137,008,376 to 136,190,823 shares [27]. - The company completed a share repurchase and capital reduction, reducing its total share capital from 137,008,376 shares to 136,190,823 shares [32]. Research and Development - Research and development expenses for the reporting period were CNY 10,581,900, a decrease of 30.79% compared to the previous year [16]. - Research and development expenses were ¥10,581,877.27, down 30.7% from ¥15,289,132.56, indicating a focus on cost management [37]. Management and Governance - The company’s actual controllers are Yang Yaoguang and Yang Weiguang, who are brothers and acting in concert [24]. - The company’s management team includes key figures such as Li Yuan, Deng Zhiyi, and Su Qiyuan [24]. - The company has not disclosed any other significant shareholder relationships or agreements beyond those mentioned [24]. Legal Matters - The company has ongoing legal disputes regarding patent rights, with a recent case resulting in a favorable ruling for the company [30]. Operational Highlights - The company is actively involved in various technological developments and market expansions, focusing on specialized instrument manufacturing and environmental monitoring [33].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥58,498,302.48, a decrease of 47.26% compared to ¥110,925,318.65 in the same period last year[20]. - The net profit attributable to shareholders was ¥2,448,525.13, down 85.51% from ¥16,899,662.84 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was -¥1,757,398.60, a decline of 114.02% compared to ¥12,536,072.89 in the previous year[20]. - Basic earnings per share decreased to ¥0.0179, down 85.48% from ¥0.1233 year-on-year[20]. - The total comprehensive income for the first half of 2022 was CNY 2,590,247.61, down 84.7% from CNY 16,865,477.67 in the same period of 2021[157]. - The total profit for the first half of 2022 was CNY 2,293,013.00, a decline of 86.1% compared to CNY 16,558,689.91 in the previous year[156]. - The company reported a significant increase in investment income, which was CNY 2,121,157.68 for the first half of 2022, compared to CNY 1,420,207.53 in the previous year[156]. - The net cash flow from operating activities improved to ¥18,349,010.55, a significant increase of 173.72% from -¥24,889,276.74 in the same period last year[20]. Assets and Liabilities - Total assets at the end of the reporting period were ¥536,284,595.03, a slight decrease of 0.35% from ¥538,171,125.52 at the end of the previous year[20]. - The total liabilities decreased to CNY 38,394,526.19 in the first half of 2022, compared to CNY 40,180,040.29 at the beginning of the year, reflecting a reduction of approximately 4.4%[150]. - The company's cash and cash equivalents increased by 250.44% to ¥88,909,235.27 from a negative balance of ¥59,098,441.30 in the previous year[53]. - The total current assets amounted to ¥343,224,854.90, slightly up from ¥339,250,098.53 at the start of the year[148]. - The total assets at the end of the reporting period amounted to 267.8 million RMB, highlighting the company's asset base[179]. Market and Industry Position - The company specializes in the research, production, and sales of motor vehicle testing equipment and systems, including emission testing systems and safety testing systems[28]. - The company has established a strong market position in the domestic motor vehicle emission detection instrument market, recognized for its core technology and product quality[39]. - The company is expanding into the environmental monitoring instrument sector, currently in the early stages of development[40]. - The company aims to become a leading supplier of comprehensive automotive testing products in China, enhancing its competitive position through a complete product line[51]. - The company is exploring potential mergers and acquisitions to strengthen its market position[169]. Research and Development - The company has a strong R&D team of nearly 100 professionals, focusing on environmental monitoring and vehicle inspection technologies, with a significant investment in R&D to maintain industry leadership[44]. - Research and development investment was ¥6,980,645.05, down 30.31% from ¥10,016,018.02, mainly due to reduced employee compensation and direct investments[51]. - The company continues to invest in R&D to innovate and optimize existing product designs, aiming for breakthroughs in air monitoring technology[46]. - The company is focused on the research and development of vehicle emission testing instruments and systems, which is a key area of its business strategy[183]. Operational Strategy - The company adopts a production model focused on customized solutions based on client requirements, ensuring efficient production and installation processes[31]. - The procurement strategy is based on an "order-driven, plan-assisted" model to ensure stable quality and timely supply of raw materials[31]. - The company has established a nationwide sales network to enhance market penetration and provide technical support and after-sales service[31]. - The company has implemented ISO9001, ISO14001, and ISO45001 certifications to ensure quality management and environmental compliance[48]. Regulatory and Compliance - The company has not faced any administrative penalties related to environmental issues during the reporting period[95]. - The company has committed to environmental protection and has passed relevant environmental management system certifications[101]. - The company emphasizes strict adherence to laws and regulations, ensuring accurate and timely information disclosure to protect investor interests[98]. Future Outlook - The company plans to enhance its product offerings to meet new national standards for vehicle emissions, which may increase technical requirements for its products[76]. - The company aims to enhance its research and development efforts to drive innovation[169]. - The overall financial performance indicates a positive outlook for the upcoming quarters, with a focus on innovation and growth[176].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥58,498,302.48, a decrease of 47.26% compared to ¥110,925,318.65 in the same period last year[20]. - The net profit attributable to shareholders was ¥2,448,525.13, down 85.51% from ¥16,899,662.84 year-on-year[20]. - The net profit after deducting non-recurring gains and losses was -¥1,757,398.60, a decline of 114.02% compared to ¥12,536,072.89 in the previous year[20]. - Basic and diluted earnings per share were both ¥0.0179, down 85.48% from ¥0.1233 in the previous year[20]. - The weighted average return on equity was 0.49%, a decrease of 2.74% from 3.23% in the same period last year[20]. - The company achieved operating revenue of 58.5 million yuan in the first half of 2022, a decrease of 47.26% compared to the same period last year[42]. - The net profit attributable to shareholders was 2.45 million yuan, down 85.51% year-on-year[42]. - Revenue from motor vehicle testing equipment and systems was 52.1 million yuan, while environmental monitoring equipment and systems generated 4.84 million yuan[42]. - The total profit for the first half of 2022 was CNY 2,293,013.00, a decline of 86.1% compared to CNY 16,558,689.91 in the previous year[159]. - The company reported a total comprehensive income of CNY 2,590,247.61 for the first half of 2022, down 84.7% from CNY 16,865,477.67 in the same period of 2021[157]. Cash Flow and Investments - The net cash flow from operating activities improved to ¥18,349,010.55, a significant increase of 173.72% from -¥24,889,276.74 in the same period last year[20]. - The company reported a significant increase in cash and cash equivalents, totaling ¥88,909,235.27, a 250.44% increase from a negative balance of ¥59,098,441.30 last year[53]. - The cash flow from investment activities saw a dramatic increase of 13,781.26%, amounting to ¥73,163,878.69, primarily due to reduced cash outflows for purchasing financial products[53]. - Total cash inflow from investment activities in the first half of 2022 was ¥93,694,817.98, while cash outflow was ¥20,530,939.29, resulting in a net cash inflow of ¥73,163,878.69[164]. - The company reported a cash inflow of ¥106,075,316.36 from investment activities in the first half of 2022, compared to ¥178,684,709.67 in the same period of 2021[166]. Market and Industry Conditions - The company faced reduced market demand for motor vehicle testing products due to new regulations expanding the exemption for vehicle inspections, effective November 20, 2020[42]. - Recent regulatory changes have expanded the exemption for vehicle inspections, potentially reducing the overall demand for testing equipment[34]. - The government’s increasing focus on environmental protection and the introduction of stricter policies directly impact the company's business expansion[43]. - The environmental monitoring industry is evolving, with a focus on both environmental quality monitoring and pollution source monitoring, providing critical data for pollution control[36]. - The company is entering the environmental monitoring instrument sector, which is still in the early stages of development[40]. Research and Development - The company has a strong R&D team of nearly 100 professionals, focusing on environmental monitoring and vehicle inspection technologies, with 102 authorized patents as of June 30, 2022, including 16 invention patents and 78 utility model patents[44]. - The company continues to invest in R&D to maintain its technological leadership and has increased funding for testing and development activities[44]. - The company plans to enhance its product offerings in the automotive testing equipment market, aiming for technological advancements and improved service capabilities[184]. - The company aims to expand its environmental monitoring product range and enhance brand promotion through various marketing channels[40]. Corporate Governance and Shareholder Relations - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company held its annual shareholders' meeting on May 18, 2022, with a participation rate of 48.81%[83]. - The company appointed a new independent director on May 18, 2022, following the resignation of a previous director[84]. - The company has implemented a stable dividend policy to provide reasonable returns to shareholders[98]. - The company has not reported any significant safety incidents during the reporting period, ensuring employee safety and asset protection[101]. Risk Factors - The company faces risks from policy changes in the motor vehicle inspection industry, which could reduce market demand for environmental and safety detection equipment[75]. - Rising raw material prices due to global supply chain disruptions pose a risk to production costs and profitability, prompting the company to strengthen supply chain management[79]. - The ongoing COVID-19 pandemic and its economic impacts present uncertainties that could affect overall business performance[79]. Compliance and Quality Management - The company has achieved ISO9001, ISO14001, and ISO45001 certifications, ensuring adherence to quality, environmental, and occupational health standards[48]. - The company has established a comprehensive quality management system covering R&D, procurement, production, inspection, and after-sales service, ensuring product quality stability and compliance with international standards[48]. - The company emphasizes strict adherence to laws and regulations, ensuring accurate and timely information disclosure to protect investor interests[98]. Future Outlook - The company plans to continue its market expansion strategy, focusing on enhancing product offerings and technological advancements[171]. - The overall financial performance indicates a positive outlook for the upcoming quarters, with expectations of sustained growth[171]. - The company is committed to maintaining shareholder value through consistent profit distribution and strategic investments[171].

Financial Performance - The company's revenue for Q1 2022 was ¥20,913,755.29, a decrease of 65.53% compared to the same period last year[2] - The net profit attributable to shareholders was -¥2,749,143.84, representing a decline of 129.54% year-on-year[2] - The company's basic earnings per share were -¥0.0201, down 129.60% from the previous year[2] - Net profit for Q1 2022 was a loss of CNY 2,749,143.84, compared to a profit of CNY 9,306,514.03 in the same period last year[22] - Basic and diluted earnings per share for Q1 2022 were both -0.0201, compared to 0.0679 in the previous period[23] Cash Flow - The net cash flow from operating activities improved by 95.83%, amounting to -¥1,095,034.00[9] - Cash inflow from operating activities was CNY 37,571,821.78, down from CNY 55,050,642.82 in the previous period[24] - The net cash flow from operating activities was -1,095,034.00, compared to -26,236,876.28 in the previous year, indicating a significant improvement[26] - The company reported a net decrease in cash and cash equivalents of -42,044.94, compared to -137,393,545.65 in the previous year[26] - The cash flow from operating activities showed a substantial reduction in outflows, indicating improved operational efficiency[26] Assets and Liabilities - The total assets at the end of the reporting period were ¥527,689,880.13, a decrease of 1.95% from the previous year[3] - As of March 31, 2022, the total assets of the company amounted to ¥527,689,880.13, a decrease from ¥538,171,125.52 at the beginning of the year[16] - The company's total current assets were ¥331,781,884.05, down from ¥339,250,098.53 at the start of the year, indicating a decline of approximately 5.5%[17] - The total liabilities decreased from ¥40,180,040.29 to ¥32,485,769.08, reflecting a reduction of about 19.2%[18] - The company's cash and cash equivalents stood at ¥36,200,456.02, slightly down from ¥36,242,500.96[16] Operating Costs and Expenses - The company experienced a 61.44% reduction in operating costs, totaling ¥13,053,300.00, due to decreased main business income[8] - Total operating costs for Q1 2022 were CNY 26,354,621.32, down from CNY 54,266,864.32 in the previous period[21] - Research and development expenses decreased by 32.53% to ¥346,750.00, primarily due to reductions in employee compensation and direct inputs[8] - The company reported a significant decrease in sales expenses, which were ¥440,370.00, down 44.97% year-on-year[8] - Cash paid for purchasing goods and services was CNY 13,610,097.50, compared to CNY 34,030,172.82 in the previous period[24] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,629[10] - The number of shares held by the top ten shareholders was significant, with the largest shareholder holding 4,471,838 shares[12] - The company has a total of 50,322,131 restricted shares, all of which are subject to lock-up agreements until January 1, 2023[14] Other Financial Metrics - Investment income increased by ¥1,156,500.00, primarily due to gains from financial products[8] - Other comprehensive income after tax was a loss of CNY 37,830.34, compared to a gain of CNY 29,776.89 in the previous period[22] - The total cash inflow from investment activities was 21,224,932.46, down from 30,078,429.82 year-over-year[26] - The total cash outflow from investment activities was 20,148,437.00, significantly lower than 141,245,653.51 in the previous year[26] - The company did not undergo an audit for the first quarter report, which may affect the perception of financial reliability[27]

Financial Performance - The company's operating revenue for Q1 2022 was ¥20,913,755.29, a decrease of 65.53% compared to ¥60,676,988.94 in the same period last year[2] - The net profit attributable to shareholders was -¥2,749,143.84, representing a decline of 129.54% from ¥9,306,514.03 year-on-year[2] - The company reported a total comprehensive loss of CNY 2,786,974.18 for Q1 2022, compared to a comprehensive income of CNY 9,336,290.92 in the previous year[23] - Basic and diluted earnings per share for Q1 2022 were both -0.0201, compared to 0.0679 in the previous year[23] - The company experienced a decrease in other income, reporting CNY 634,803.91 compared to CNY 4,299,334.86 in the previous period[22] Cash Flow - The net cash flow from operating activities improved by 95.83%, reaching -¥1,095,034.00 compared to -¥26,236,876.28 in the previous year[2] - Cash inflow from operating activities was CNY 37,571,821.78, down from CNY 55,050,642.82 in the previous period[24] - The net cash flow from investment activities was 1,076,495.46, a recovery from -111,167,223.69 in the previous year[26] - The total cash inflow from investment activities was 21,224,932.46, down from 30,078,429.82 year-over-year[26] - The company experienced a net decrease in cash and cash equivalents of -42,044.94, compared to a much larger decrease of -137,393,545.65 in the previous year[26] Assets and Liabilities - The total assets at the end of the reporting period were ¥527,689,880.13, down 1.95% from ¥538,171,125.52 at the end of the previous year[3] - The company's total current assets were ¥331,781,884.05, down from ¥339,250,098.53 at the start of the year, indicating a decline of approximately 5.5%[17] - The company's total liabilities decreased to ¥32,485,769.08 from ¥40,180,040.29, reflecting a reduction of about 19.5%[18] - The company has a total equity of ¥495,204,111.05, which includes a capital reserve of ¥64,529,074.97[18] Operating Costs and Expenses - The company experienced a 61.44% reduction in operating costs, amounting to ¥13,053,300.00, due to decreased main business revenue[8] - Total operating costs for Q1 2022 were CNY 26,354,621.32, down from CNY 54,266,864.32 in the previous period[21] - Research and development expenses decreased by 32.53% to ¥346,750.00, primarily due to reductions in employee compensation and direct inputs[8] - Cash paid for purchasing goods and services was CNY 13,610,097.50, compared to CNY 34,030,172.82 in the previous period[24] - Cash paid to employees was CNY 18,722,642.03, down from CNY 34,553,479.96 in the previous period[24] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 12,629, with the top ten shareholders holding significant stakes[11] - The company reported a total of 50,322,131 shares under lock-up agreements, with all shares set to be released on January 1, 2023[14] - The company’s major shareholders include Yang Yaoguang and Yang Weiguang, who are identified as the actual controllers of the company[12] Market Outlook - The company anticipates continued challenges in market demand due to the impact of the COVID-19 pandemic and regulatory changes affecting its core business[9] Audit Information - The company did not undergo an audit for the first quarter report[27]

Financial Performance - In 2021, the net profit attributable to shareholders was 12.2448 million yuan, a decrease of 81.55% compared to the previous year[6]. - The company's operating revenue for 2021 was ¥182,145,970.76, a decrease of 41.55% compared to ¥311,639,478.55 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥12,244,815.60, down 81.55% from ¥66,365,221.41 in 2020[25]. - The net cash flow from operating activities was negative at -¥3,913,715.39, a decline of 115.57% compared to ¥25,139,391.61 in 2020[25]. - Basic earnings per share for 2021 were ¥0.0894, a decrease of 81.54% from ¥0.4844 in 2020[25]. - Total assets at the end of 2021 were ¥538,171,125.52, down 14.16% from ¥626,967,165.69 at the end of 2020[25]. - The company reported a significant drop in net profit excluding non-recurring gains and losses, which was ¥411,936.28 in 2021, down 99.37% from ¥65,356,546.47 in 2020[25]. - The company experienced a quarterly revenue decline, with Q1 2021 revenue at ¥60,676,988.94 and Q4 2021 revenue at ¥38,504,654.02[27]. - The company recorded a total of ¥11,832,879.32 in non-recurring gains for 2021, compared to ¥1,008,674.94 in 2020[31]. - The weighted average return on net assets was 2.42% in 2021, down from 12.81% in 2020[25]. Market Trends and Industry Outlook - The decline in performance was primarily due to policy impacts on the motor vehicle inspection industry, including the expansion of the vehicle exemption policy which reduced demand for inspection equipment[6]. - The implementation of new national standards for vehicle emissions has led to a decrease in profit contributions from related products in 2021[6]. - The motor vehicle inspection market is expected to continue expanding due to the steady growth of vehicle ownership and stricter environmental regulations[7]. - The environmental monitoring market is projected to grow significantly, driven by increased focus on volatile organic compounds (VOCs) and carbon emission monitoring in line with national policies[8][9]. - The demand for vehicle inspection services is expected to grow due to the increasing frequency of mandatory inspections as vehicle ages rise[38]. - The vehicle inspection market is anticipated to expand significantly due to the increasing number of aging vehicles and the corresponding rise in inspection frequency[38]. - The focus on reducing vehicle emissions is expected to lead to stricter environmental performance inspection standards in the future[42]. Product Development and Innovation - The company has developed new products for environmental monitoring, including VOCs online monitoring systems, which are currently being promoted in the market[10]. - The company operates in the automotive testing equipment and environmental monitoring equipment sectors, which are evolving towards smart, multifunctional, and high-precision products[34]. - The company has developed and launched two major product types for environmental monitoring: online monitoring equipment for volatile organic compounds (VOCs) and continuous emissions monitoring systems (CEMS) since late 2019[46]. - The company has achieved significant recognition, including being named a national high-tech enterprise and a "little giant" enterprise by the Ministry of Industry and Information Technology[45]. - The company has developed a cost-effective vehicle emission detection system and a vehicle safety detection system, leveraging self-developed technologies for better cost control[54]. - The company has established a comprehensive quality management system covering R&D, procurement, production, inspection, and after-sales service, ensuring product quality stability[56]. - The company has invested significantly in R&D, maintaining a robust team of nearly 100 professionals with expertise in various fields, ensuring continuous innovation[51]. Financial Management and Cost Control - The company has implemented various information management systems, including ERP and CSM systems, to improve operational efficiency[57]. - The company has reduced sales expenses by 21.14% to 28.75 million yuan, management expenses by 7.00% to 26.79 million yuan, and R&D expenses by 18.15% to 18.42 million yuan in 2021[59]. - The company has implemented comprehensive budget management and refined cost accounting measures to control manufacturing costs amid market contraction and high raw material prices[62]. - The company plans to enhance supply chain management and strengthen communication with suppliers to mitigate raw material price fluctuations[70]. - The company aims to establish a long-term mechanism for cost reduction and efficiency improvement, controlling unnecessary expenses and enhancing internal management to mitigate the impact of sales decline[103]. Shareholder Engagement and Governance - The company held its first extraordinary general meeting of shareholders in 2021 with a participation rate of 49.90% on January 28, 2021[113]. - The annual general meeting for the year 2020 was held on May 18, 2021, with a participation rate of 47.44%[114]. - The company has established a sound governance structure with a shareholder meeting, board of directors, and supervisory board, ensuring independent operational entities[111]. - The company has not engaged in any related party transactions or provided guarantees using its assets for shareholders or companies controlled by shareholders[111]. - The company has a structured decision-making process for remuneration involving the board and shareholders[124]. - The board of directors held five meetings during the reporting period, with all directors attending in person[129]. - The audit committee conducted three meetings, reviewing key financial reports including the 2020 annual report and the 2021 first quarter report[133]. Employee Management and Training - The company plans to enhance employee training programs to improve skills and innovation capabilities[139]. - The company encourages performance-based compensation for frontline employees and sales personnel to drive new product sales[138]. - The company has a total of 3 retired employees for whom it bears costs[136]. - The company’s total number of employees in management positions includes 13 individuals across various roles[123]. - The company’s remuneration system considers factors such as regional, industry, and company performance indicators[124]. Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units and has not faced any administrative penalties for environmental issues during the reporting period[159]. - The company emphasizes employee rights protection, providing various insurances and promoting a safe working environment[163]. - The company actively engages with government and community activities, adhering to legal regulations and fulfilling tax obligations[165]. Future Outlook and Strategic Plans - The company provided a future outlook projecting a revenue growth of 10-12% for the next fiscal year, driven by new product launches and market expansion strategies[178]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[178]. - A strategic acquisition of a local competitor is expected to enhance the company's product offerings and customer base, with an estimated cost of 200 million RMB[179]. - The company aims to enhance its digital marketing efforts, expecting a 15% increase in customer engagement metrics[178]. - A commitment to sustainability initiatives is expected to reduce operational costs by 5% over the next three years[179].

Financial Performance - The company's revenue for the third quarter was ¥32,715,998.09, a decrease of 67.55% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥5,002,525.85, representing a decline of 124.08% year-on-year[3]. - The basic earnings per share were -¥0.0365, down 124.08% from the previous year[3]. - The company's revenue for the year-to-date period was ¥143,641,316.74, down 38.04% compared to the same period last year[3]. - Total operating revenue for the third quarter was CNY 143,641,316.74, a decrease of 38.1% compared to CNY 231,846,861.51 in the same period last year[23]. - Net profit for the third quarter was CNY 11,897,136.99, a decline of 77.9% compared to CNY 53,789,526.09 in the previous year[24]. - Earnings per share (EPS) for the third quarter was CNY 0.0868, down from CNY 0.3926 in the previous year[25]. - The total comprehensive income for the third quarter was CNY 11,911,728.60, significantly lower than CNY 53,869,460.89 in the same period last year[25]. Assets and Liabilities - The total assets at the end of the reporting period were ¥545,196,226.94, a decrease of 13.04% compared to the end of the previous year[4]. - As of September 30, 2021, the total assets of Foshan Nanhua Instrument Co., Ltd. amounted to CNY 545,196,226.94, a decrease from CNY 626,967,165.69 at the end of 2020, reflecting a decline of approximately 13%[18]. - The company's current assets decreased to CNY 372,292,872.51 from CNY 446,199,811.86, representing a reduction of about 16.5%[19]. - Total liabilities decreased from CNY 107,550,503.26 to CNY 47,508,635.91, a significant reduction of about 56%[20]. - The company's equity remained stable at CNY 137,008,376.00 as of September 30, 2021[20]. Cash Flow - The cash flow from operating activities was -¥17,628,266.69, a decrease of 15.62% year-to-date[3]. - The company reported a net cash outflow from operating activities of CNY -17,628,266.69, compared to CNY -15,246,776.48 in the same period last year[28]. - Cash inflows from operating activities totaled CNY 161,710,258.02, down from CNY 256,941,601.52 year-on-year[28]. - Cash outflows from operating activities were CNY 179,338,524.71, compared to CNY 272,188,378.00 in the same period last year[28]. - The net cash flow from investment activities was -120,265,527.96 CNY, compared to a positive cash flow of 138,985,190.35 CNY in the same period last year[29]. - The total cash outflow from investment activities amounted to 262,661,735.49 CNY, an increase from 170,204,334.17 CNY year-over-year[29]. - Cash and cash equivalents at the end of the period were 31,663,276.63 CNY, down from 94,488,875.74 CNY in the previous year[29]. - The net increase in cash and cash equivalents was -171,565,892.00 CNY, compared to an increase of 60,348,306.91 CNY in the same quarter last year[29]. - The company reported cash outflows for financing activities totaling 33,640,800.00 CNY, a decrease from 63,323,859.20 CNY year-over-year[29]. Operational Insights - The decline in revenue was primarily attributed to reduced demand for vehicle inspection equipment due to regulatory changes implemented by the Ministry of Public Security[9]. - The operating costs for the reporting period were ¥82,567,100, a decrease of 31.84% year-on-year[10]. - Research and development expenses amounted to CNY 15,289,132.56, a decrease of 10.5% from CNY 17,077,400.45 year-on-year[23]. - The company has not disclosed any new product developments or market expansion strategies in the current report[17]. Shareholder Information - The number of shares held by the top ten shareholders includes significant holdings, with the largest being 13,419,375 shares held by Deng Zhiyi[16]. - The company reported a total of 54,630,225 shares under lock-up agreements, with 918,085 shares released during the period[16]. Miscellaneous - The company reported a decrease in cash and cash equivalents by 73.56% to ¥61,664,800.00 at the end of the period[7]. - The company's cash and cash equivalents dropped significantly from CNY 233,230,668.63 to CNY 61,664,776.63, a decline of approximately 73.5%[18]. - Accounts receivable decreased from CNY 61,282,376.62 to CNY 55,559,365.50, showing a reduction of about 9.3%[19]. - Inventory levels decreased from CNY 145,121,448.52 to CNY 128,635,296.46, indicating a decline of approximately 11.3%[19]. - The company did not adjust the beginning balance of the balance sheet for the new leasing standards implemented in 2021[30]. - The third quarter report was not audited[32].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥110,925,318.65, a decrease of 15.34% compared to ¥131,021,121.67 in the same period last year[19]. - The net profit attributable to shareholders was ¥16,899,662.84, down 48.81% from ¥33,014,418.74 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥12,536,072.89, a decline of 61.73% compared to ¥32,758,330.25 in the previous year[19]. - The basic earnings per share decreased by 48.84% to ¥0.1233 from ¥0.2410 in the same period last year[19]. - The total assets at the end of the reporting period were ¥552,893,897.67, down 11.81% from ¥626,967,165.69 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 3.23% to ¥502,654,362.36 from ¥519,416,662.43 at the end of the previous year[19]. - The company reported a net cash flow from operating activities of -¥24,889,276.74, slightly worse than -¥24,476,961.51 in the same period last year, a change of -1.68%[19]. - The weighted average return on net assets was 3.24%, down from 6.19% in the previous year, a decrease of 2.95%[19]. Market and Industry Context - The company specializes in the research, production, and sales of motor vehicle testing equipment and systems, including emission and safety testing systems, as well as environmental monitoring equipment[26]. - As of June 2021, the total number of motor vehicles in China reached 384 million, with 18.71 million new registrations in the first half of 2021, marking a year-on-year increase of 32.33%[31]. - The overall demand for vehicle inspection equipment has decreased due to the expansion of the vehicle exemption policy, which affects the frequency of inspections[31]. - The environmental monitoring industry is under increased regulatory scrutiny, particularly for VOCs and NOx emissions, following the implementation of various national action plans[32]. - The company faces risks related to policy changes in the motor vehicle inspection industry, which may affect market demand for its products[69]. - The company acknowledges increasing market competition in the environmental monitoring equipment sector and emphasizes the need for continuous innovation[71]. Research and Development - Research and development expenses amounted to 10.02 million RMB, representing 9.03% of operating revenue[35]. - The company is focusing on the development of new products, including VOCs emission detection systems and portable emergency monitoring products[35]. - The company has a strong R&D team of nearly 100 professionals, focusing on precision optics, mechanics, electronics, software, automation, and AI, ensuring continuous investment in R&D[38]. - As of June 30, 2021, the company holds 90 authorized patents, including 15 invention patents, 66 utility model patents, and 9 design patents, along with 125 software copyrights[38]. Financial Management and Investments - The company has approved the use of up to 300 million RMB of idle funds for purchasing financial products, generating an investment income of 1.42 million RMB during the reporting period[36]. - The company reported a significant decrease in investment income, down 82.80% to ¥1,420,207.53, attributed to reduced investment in financial products[52]. - The company engaged in entrusted financial management with a total amount of 23,000,000, including 15,000,000 in broker financial products and 8,000,000 in trust financial products[63]. Corporate Governance and Shareholder Relations - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company emphasizes transparency and timely information disclosure to protect shareholder interests[88]. - The company has established a stable dividend policy to ensure reasonable returns to shareholders[88]. - The company granted 2,445,176 restricted stocks to 112 eligible participants at a price of RMB 6.75 per share on January 28, 2021[114]. - The total cash dividend distributed to shareholders was RMB 33,640,800, with a payout of RMB 2.50 per 10 shares[114]. Risk Management - The company faces risks from raw material price fluctuations, with significant increases observed in the first half of 2021, impacting production costs and profitability[72]. - The ongoing COVID-19 pandemic and economic uncertainties may adversely affect the company's overall performance, especially in regions experiencing resurgences of the virus[73]. - The company plans to enhance supply chain management and maintain communication with suppliers to mitigate raw material cost volatility[72]. Quality Control and Compliance - The company has established a comprehensive quality management system covering R&D, procurement, production, and inspection, ensuring product quality stability[41]. - The company has achieved ISO9001, ISO14001, and ISO45001 certifications, enhancing its competitive edge in the market[42]. - Safety management is prioritized, with adherence to OHSAS18001:2007 standards and no major safety incidents reported during the period[90]. - There are no significant legal disputes or non-compliance issues reported for the period[99]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[169]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to strengthen its market position[169].