法律意见书 2023 年 8 月 湖南启元律师事务所 关于华自科技股份有限公司2021年限制性股票激励计划 第一类限制性股票第二期解除限售相关事宜的 湖南启元律师事务所 关于华自科技股份有限公司2021年限制性股票激励计划 第一类限制性股票第二期解除限售相关事宜的 （一）本所依据我国法律、法规、地方政府及部门规章、规范性文件及中国 证监会、证券交易所的有关规定以及本《法律意见书》出具日以前已经发生或者 存在的事实发表法律意见。 （二）本所已严格履行了法定职责，遵循了勤勉尽责和诚实信用原则，对公 司的行为以及本次申请的合法、合规、真实、有效进行了充分的核查验证，保证 本《法律意见书》不存在虚假记载、误导性陈述及重大遗漏。 （三）本所同意将本《法律意见书》作为公司本次激励计划的必备文件之一， 随其他申请材料一起上报或公开披露，并依法对出具的法律意见书承担相应的法 1 律责任。 法律意见书 致：华自科技股份有限公司 湖南启元律师事务所（以下简称"本所"）接受华自科技股份有限公司（以下 简称"公司"或"华自科技"）的委托，作为公司2021年限制性股票激励计划项目（以 下简称"本次激励计划"或"激励计划"）的专项法律顾 ...

华自科技股份有限公司（以下简称"公司"）第四届董事会第三十三次会议决 定于 2023 年 9 月 15 日（星期五）下午 14:30 召开 2023 年第二次临时股东大会， 现就本次股东大会的有关事项通知如下： 一、会议召开的基本情况 1、股东大会届次：2023 年第二次临时股东大会。 证券代码：300490 证券简称：华自科技 公告编号：2023-089 华自科技股份有限公司 关于召开 2023 年第二次临时股东大会通知的公告 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。 （1）现场会议时间：2023 年 9 月 15 日（星期五）下午 14:30 （2）网络投票时间：通过深圳证券交易所交易系统进行网络投票的具体时 间为 2023 年 9 月 15 日 9:15-9:25，9:30—11:30，13:00-15:00。通过深圳证券交易 所互联网投票系统投票的具体时间为 2023 年 9 月 15 日 9:15-15:00 的任意时间。 1 / 10 8、出席对象： 2、股东大会的召集人：华自科技股份有限公司董事会。 3、会议召开的合法性及合规性：经本公司第 ...

华自科技股份有限公司 独立董事提名人声明与承诺 提名人华自科技股份有限公司董事会现就提名曾德明为华自科技股份有限公司 第五届董事会独立董事候选人发表公开声明。被提名人已书面同意作为华自科技股份 有限公司第五届董事会独立董事候选人。本次提名是在充分了解被提名人职业、学历、 职称、详细的工作经历、全部兼职等情况后作出的，本提名人认为被提名人符合相关 法律、行政法规、部门规章、规范性文件和深圳证券交易所业务规则对独立董事候选 人任职资格及独立性的要求，具体声明并承诺如下事项： 一、被提名人已经通过华自科技股份有限公司第四届董事会提名委员会资格审查， 提名人与被提名人不存在利害关系或者其他可能影响独立履职情形的密切关系。 ☑是 □否 如否，请详细说明：______________________________ 二、被提名人不存在《中华人民共和国公司法》第一百四十六条等规定不得担任 公司董事的情形。 ☑是 □否 如否，请详细说明：______________________________ 三、被提名人符合中国证监会《上市公司独立董事管理办法》和深圳证券交易所 业务规则规定的独立董事任职资格和条件。 ☑是 □否 如否 ...

证券代码：300490 证券简称：华自科技 公告编号：2023-078 华自科技股份有限公司 关于前期会计差错更正及追溯调整的补充公告 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。 华自科技股份有限公司（以下简称"公司"或"华自科技"）于 2023 年 8 月 4 日召 开的第四届董事会第三十二次会议、第四届监事会第三十二次会议，审议通过了《关 于公司前期会计差错更正的议案》等议案，同意公司对前期会计差错进行更正并追 溯调整相关年度的财务数据。 公司于 2023 年 8 月 4 日在巨潮资讯网披露了《关于前期会计差错更正及追溯调 整的公告》（2023-076），说明了差错更正对 2021 年度、2022 年度、2023 年第一 季度财务报表的影响项目及金额，为更全面地说明差错更正对财务数据的影响，现 补充披露 2022 年第一季度、2022 年半年度、2022 年第三季度财务报表的影响项目 及金额。 本次补充事项不存在对前期差错更正数据的更正，对已披露的《2021 年年度报 告（更正后）》《2022 年第一季度报告（更正后）》《2022 年半年度报告（更正后 ...

Financial Performance - The company experienced a significant decline in performance due to macroeconomic factors, with a notable increase in labor costs and raw material prices, leading to a decrease in gross margin[5]. - The subsidiary Hunan Grant's annual profit level did not meet expectations, resulting in a substantial goodwill impairment that severely impacted the company's overall performance[5]. - The company's operating revenue for 2022 was ¥1,679,958,227.03, a decrease of 24.48% compared to ¥2,224,556,225.33 in 2021[24]. - The net profit attributable to shareholders for 2022 was ¥428,891,080.60, reflecting a decline of 1,808.32% from ¥45,116,792.97 in the previous year[24]. - The net cash flow from operating activities was ¥213,659,903.21, down 16.92% from ¥184,325,578.15 in 2021[24]. - The total assets at the end of 2022 amounted to ¥5,655,606,411, representing an increase of 10.83% from ¥4,901,934,892 in 2021[24]. - The net assets attributable to shareholders decreased by 17.94% to ¥2,075,652,379 from ¥2,483,140,719 in 2021[24]. - The company reported a basic earnings per share of -1.31 for 2022, compared to 0.17 in 2021, indicating a significant decline[25]. - The total revenue for the fourth quarter of 2022 was ¥419,144,194.54, with a net profit attributable to shareholders of -¥360,054,381.92[27]. - The company experienced negative net profits in all four quarters of 2022, with the highest loss in the fourth quarter[27]. Strategic Plans and Innovations - The company plans to seize industry development opportunities by increasing technological investment and innovation, aiming to enhance management levels and reduce costs[5]. - Future performance may improve as macroeconomic conditions gradually recover and negative factors diminish, with a focus on enhancing core product competitiveness and brand influence[5]. - The company aims to leverage group synergies to create flagship products and improve overall economic benefits for shareholders[5]. - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts, clarifying that these do not constitute commitments to investors[6]. - The company is actively expanding its business in the lithium battery and energy storage sectors, leveraging nearly 30 years of technological expertise[40]. - The company aims to achieve a scale of new energy storage installations exceeding 30 million kW by 2025, transitioning to large-scale development[39]. - The company has developed a series of core products including energy management systems and storage inverters, enhancing distributed clean energy utilization efficiency[41]. - The company is focusing on the integration of source, network, load, and storage systems to drive innovation in microgrid control and energy management systems[155]. - The company aims to strengthen its market leadership through continuous innovation and expansion of product lines[94]. Research and Development - In 2022, the company's R&D investment reached 153.4 million yuan, with 691 technical personnel accounting for 30.93% of total employees[57]. - The company launched advanced lithium battery testing automation equipment, expected to enhance profitability in the lithium battery intelligent equipment business[55]. - The company has established strategic partnerships with state-owned enterprises and industry leaders for technology R&D and market expansion[60]. - The company has made significant advancements in product development, including the HZ-PCS630 energy storage inverter and the HZC-600 multi-energy IoT coordinated controller[66]. - The company is committed to continuous innovation in technology and products, focusing on high-value, cost-effective solutions in the fields of new energy and environmental protection[155]. Market Trends and Competition - In 2022, China's new energy vehicle sales reached 6.887 million units, a year-on-year increase of 93.4%[36]. - The global new energy vehicle power battery usage reached 517.9 GWh in 2022, growing by 71.8% year-on-year[36]. - The production of energy storage cells in China is expected to reach approximately 120 GWh in 2022, a year-on-year increase of 150%[36]. - The company faces risks related to policy changes that could affect tax incentives and market demand in the new energy and environmental sectors[157]. - The company is experiencing intensified market competition as new entrants emerge in the new energy sector, necessitating the development of new products and services to maintain competitiveness[160]. Financial Management and Investments - The company plans to raise up to 910 million yuan through a private placement to support the construction of integrated "photovoltaic + energy storage" projects and supplement working capital[68]. - The company has engaged in significant equity investments, including a 6.5 million RMB acquisition in energy storage technology[131]. - The total investment amount for the reporting period was 145,713,721.14 RMB, representing a 562.34% increase compared to the previous year's investment of 22 million RMB[130]. - The company has not made any changes to the use of raised funds during the reporting period[137]. - The company is actively expanding its financing capabilities through various loan agreements with multiple banks[126][128]. Governance and Management - The company maintains complete control over its assets, with no instances of asset or fund occupation by shareholders reported[167]. - The company has established an independent financial accounting system, ensuring compliance with accounting laws and independent tax declarations[168]. - The company’s governance structure complies with relevant laws and regulations, with no significant discrepancies reported[166]. - The company has a transparent performance evaluation and incentive mechanism for senior management, ensuring fairness in hiring and assessment[166]. - The company held 5 shareholder meetings during the reporting period, reviewing 37 proposals, ensuring equal treatment of all shareholders[163]. Shareholder Engagement - The company actively engages with investors through various channels, ensuring timely and accurate information disclosure[165]. - The company reported a total of 8,774,000 shares held by directors and senior management at the end of the reporting period, with an increase of 399,000 shares during the period[173]. - The company has implemented a restricted stock plan for its executives, with specific shares allocated[173]. - The company has not reported any changes in the voting rights of shareholders during the reporting period[172]. - The board of directors has been actively involved in reviewing and approving the annual operational goals and performance assessments[191].

[Key Financial Data](index=2&type=section&id=Item%20I.%20Key%20Financial%20Data) [Core Financial Indicators](index=2&type=section&id=Item%20(I).%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2022 and year-to-date, the company's operating revenue increased, but net profit experienced significant losses, with Q3 single-quarter revenue at **RMB 394.11 million**, up **2.20%**, while net profit attributable to shareholders was a loss of **RMB 38.30 million**, down **543.71%**, and year-to-date revenue reached **RMB 1.26 billion**, up **11.54%**, with net profit attributable to shareholders at a loss of **RMB 65.00 million**, down **306.70%**, alongside a substantial deterioration in net cash flow from operating activities | Indicator | Current Period (Q3) | Year-to-Date (YTD) | YTD YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 394,112,115.09 | 1,260,814,032.49 | 11.54% | | Net Profit Attributable to Shareholders (RMB) | -38,303,384.88 | -65,001,508.66 | -306.70% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (RMB) | -45,358,580.66 | -76,280,785.29 | -434.72% | | Net Cash Flow from Operating Activities (RMB) | - | -579,687,763.94 | -235.32% | | Basic Earnings Per Share (RMB/share) | -0.12 | -0.20 | -266.67% | | Weighted Average Return on Net Assets | -1.57% | -2.59% | -4.38% | | Total Assets (RMB) | 5,417,476,000.24 | 5,417,476,000.24 | 6.41% (vs. end of prior year) | | Shareholders' Equity Attributable to Parent Company (RMB) | 2,431,375,782.15 | 2,431,375,782.15 | -3.87% (vs. end of prior year) | [Analysis of Non-Recurring Gains and Losses](index=2&type=section&id=Item%20(II).%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the current period, total non-recurring gains and losses amounted to **RMB 7.06 million**, with a year-to-date cumulative total of **RMB 11.28 million**, primarily comprising government subsidies, offset by losses from futures and disposal of non-current assets | Item | Current Period Amount (RMB) | Year-to-Date Amount (RMB) | Description | | :--- | :--- | :--- | :--- | | Government Subsidies | 8,983,675.04 | 15,141,585.31 | Mainly government financial subsidies | | Fair Value Changes in Financial Assets/Liabilities | -628,584.68 | -802,447.93 | Losses from futures contracts | | Gains/Losses on Disposal of Non-Current Assets | -206,940.84 | -63,935.12 | - | | **Total** | **7,055,195.78** | **11,279,276.63** | -- | [Analysis of Significant Changes in Financial Statement Items and Reasons](index=3&type=section&id=Item%20(III).%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators%20and%20Reasons) At the end of the reporting period, the company's asset and liability structure significantly changed, with short-term borrowings increasing by **126.50%** to supplement working capital, while profit was impacted by over **30%** increases in administrative, R&D, and financial expenses, coupled with substantial declines in investment income and fair value change gains, leading to a **235.32%** decrease in net cash flow from operating activities due to faster growth in outflows than inflows [Analysis of Balance Sheet Item Changes](index=3&type=section&id=Item%20(I).%20Balance%20Sheet%20Items) The period-end balance sheet indicates increased financial pressure, with short-term borrowings surging **126.50%** to **RMB 988.20 million**, while accounts receivable, contract assets, and other non-current assets (prepaid engineering and equipment costs) all grew by over **35%**, reflecting capital tied up by business expansion, and contract liabilities increased by **74.99%**, indicating healthy advance receipts | Balance Sheet Item | Period-End (RMB) | Change from Beginning of Period | Primary Reason | | :--- | :--- | :--- | :--- | | Short-term Borrowings | 988,199,903.40 | 126.50% | Increase in bank working capital loans | | Contract Liabilities | 301,793,137.01 | 74.99% | Increase in advance receipts from sales contracts | | Other Current Assets | 53,367,584.25 | 58.13% | Increase in deductible input VAT | | Other Non-Current Assets | 268,930,806.62 | 45.46% | Increase in prepaid engineering and equipment costs | | Notes Receivable | 168,405,734.91 | 43.66% | Increase in commercial and bank acceptance bills received | | Contract Assets | 316,569,988.37 | 35.81% | Increase in quality assurance deposits within contract warranty periods | | Cash and Cash Equivalents | 355,353,680.89 | -31.89% | Investment in convertible bond fundraising projects and increased operating cash outflows | [Analysis of Income Statement Item Changes](index=4&type=section&id=Item%20(II).%20Income%20Statement%20Items) Year-to-date, the company's expenses significantly increased, with administrative, R&D, and financial expenses growing by **34.96%**, **37.01%**, and **39.81%** respectively, primarily due to equity incentive amortization, increased R&D investment, and higher bank loan interest, while investment income and fair value change gains (futures contract losses) sharply declined, exacerbating losses | Income Statement Item | Current Period Amount (RMB) | Change from Prior Period | Primary Reason | | :--- | :--- | :--- | :--- | | Fair Value Change Gains | -909,500.00 | -9775.53% | Decrease in fair value change gains/losses from futures contracts | | Non-Operating Income | 1,365,553.39 | 170.72% | Increase in contract penalty income | | Investment Income | -182,241.90 | -107.07% | Decrease in debt restructuring gains | | Credit Impairment Losses | -11,231,899.83 | 78.24% | Increase in impairment provisions for accounts receivable and other receivables | | Financial Expenses | 29,884,656.25 | 39.81% | Increase in bank loan interest | | R&D Expenses | 102,410,669.23 | 37.01% | Company increased R&D investment | | Administrative Expenses | 137,392,455.57 | 34.96% | Increase in equity incentive expense amortization and personnel compensation | [Analysis of Cash Flow Statement Item Changes](index=5&type=section&id=Item%20(III).%20Cash%20Flow%20Statement%20Items) Year-to-date, net cash flow from operating activities was a **RMB 580 million** outflow, a **235.32%** year-over-year decrease, primarily due to a faster increase in cash outflows for goods, services, and taxes (**56.65%**) compared to cash inflows from sales (**24.78%**), while net cash flow from financing activities increased by **144.83%** due to reduced debt repayments | Cash Flow Statement Item | Current Period Amount (RMB) | Change from Prior Period | Primary Reason | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -579,687,763.94 | -235.32% | Growth in operating cash outflows exceeded growth in inflows | | Net Cash Flow from Financing Activities | 691,674,128.42 | 144.83% | Financing cash outflows decreased compared to the prior year | | Total Operating Cash Outflows | 1,788,900,870.59 | 56.65% | Increase in cash paid for goods, services, and various taxes | | Total Operating Cash Inflows | 1,209,213,106.65 | 24.78% | Increase in cash received from sales of goods and services | [Shareholder Information](index=6&type=section&id=Item%20II.%20Shareholder%20Information) [Major Shareholder Holdings](index=6&type=section&id=Item%20(I).%20Total%20Number%20of%20Common%20Shareholders%20and%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the end of the reporting period, the company had **40,221** common shareholders, with controlling shareholder Changsha Huaneng Automatic Control Group Co Ltd holding **25.68%** of shares, of which approximately **78%** (**66,110,179** shares) are pledged, and the actual controller Huang Wenbao and his concerted parties (Wang Xiaobing, Guo Xudong) are concerted parties with the controlling shareholder - Total common shareholders at the end of the reporting period were **40,221** accounts[20](index=20&type=chunk) - Controlling shareholder Changsha Huaneng Automatic Control Group Co Ltd holds **84,673,031** shares, accounting for **25.68%** of total share capital[20](index=20&type=chunk) - Of the shares held by the controlling shareholder, **66,110,179** shares (**78.08%** of its holdings) are pledged[20](index=20&type=chunk) - The company's actual controller Huang Wenbao, along with Wang Xiaobing, Guo Xudong, and controlling shareholder Changsha Huaneng Automatic Control Group Co Ltd, are concerted parties[20](index=20&type=chunk) [Changes in Restricted Shares](index=7&type=section&id=Item%20(III).%20Changes%20in%20Restricted%20Shares) During the reporting period, the company's total restricted shares increased from **6,306,327** at the beginning of the period to **6,580,577** at the end, a net increase of **274,250** shares, primarily due to an increase in executive lock-up shares and equity incentive restricted shares involving multiple executives | Item | Number of Shares (shares) | | :--- | :--- | | Restricted Shares at Beginning of Period | 6,306,327 | | Restricted Shares Increased This Period | 274,250 | | Restricted Shares Released This Period | 0 | | Restricted Shares at End of Period | 6,580,577 | - Reasons for restriction primarily include executive lock-up shares and equity incentive restricted shares[23](index=23&type=chunk)[24](index=24&type=chunk) [Other Significant Matters](index=8&type=section&id=Item%20III.%20Other%20Significant%20Matters) During the reporting period, the company advanced its application for a private placement of shares, responding to the Shenzhen Stock Exchange's inquiry, and implemented the 2021 Restricted Stock Incentive Plan, completing the vesting of Class II restricted shares and the unlocking of Class I restricted shares, with all related shares now listed and tradable - The company's application for a private placement of shares has been accepted by the Shenzhen Stock Exchange, and inquiries have been responded to[25](index=25&type=chunk) - The company processed the vesting of **1.8756 million** Class II restricted shares for **275** incentive recipients, which were listed and tradable on July 22, 2022[25](index=25&type=chunk) - The company processed the unlocking of **0.18 million** Class I restricted shares for **3** incentive recipients, which were listed and tradable on September 6, 2022[26](index=26&type=chunk) [Quarterly Financial Statements (Unaudited)](index=9&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=9&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2022, the company's total assets were **RMB 5.42 billion**, up **6.41%** from the beginning of the year, total liabilities were **RMB 2.90 billion**, up **16.35%**, and shareholders' equity attributable to the parent company was **RMB 2.43 billion**, down **3.87%**, with asset growth driven by accounts receivable and inventory, and liability growth primarily from a significant increase in short-term borrowings | Key Balance Sheet Items | September 30, 2022 (RMB) | January 1, 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **5,417,476,000.24** | **5,091,192,660.58** | **+6.41%** | | Total Current Assets | 3,327,374,061.04 | 3,134,666,761.69 | +6.15% | | Total Non-Current Assets | 2,090,101,939.20 | 1,956,525,898.89 | +6.83% | | **Total Liabilities** | **2,897,689,961.48** | **2,490,374,694.44** | **+16.35%** | | Short-term Borrowings | 988,199,903.40 | 436,288,616.14 | +126.50% | | **Total Owners' Equity** | **2,519,786,038.76** | **2,600,817,966.14** | **-3.12%** | | Owners' Equity Attributable to Parent Company | 2,431,375,782.15 | 2,529,153,785.08 | -3.87% | [Consolidated Income Statement](index=11&type=section&id=2.%20Consolidated%20Income%20Statement%20Year-to-Date) For the first three quarters of 2022, the company achieved operating revenue of **RMB 1.26 billion**, an **11.54%** year-over-year increase, but due to increased operating costs (**20.0%** growth) and various expenses (selling, administrative, R&D), coupled with losses from investment income and fair value changes, operating profit was a **RMB 91.85 million** loss, resulting in a net loss attributable to parent company shareholders of **RMB 65.00 million**, a significant year-over-year reversal to loss | Key Income Statement Items (Year-to-Date) | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,260,814,032.49 | 1,130,327,126.07 | +11.54% | | Total Operating Costs | 1,353,355,810.88 | 1,107,039,998.81 | +22.25% | | Of which: Operating Costs | 965,038,996.47 | 804,378,256.55 | +20.00% | | R&D Expenses | 102,410,669.23 | 74,745,884.45 | +37.01% | | Operating Profit | -91,852,689.48 | 27,671,582.41 | -431.9% | | Total Profit | -90,759,276.19 | 27,972,689.10 | -424.5% | | Net Profit | -79,550,494.11 | 21,637,864.86 | -467.7% | | Net Profit Attributable to Parent Company Shareholders | -65,001,508.66 | 31,447,419.52 | -306.7% | [Consolidated Cash Flow Statement](index=13&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) For the first three quarters of 2022, net cash flow from operating activities was a **RMB 580 million** outflow, a **235.32%** year-over-year decrease, primarily due to a significant increase in cash paid for goods and services, while net cash flow from investing activities was a **RMB 133 million** outflow, and net cash flow from financing activities was a **RMB 692 million** inflow, up **144.83%** due to increased borrowings and reduced debt repayments, with cash and cash equivalents at period-end totaling **RMB 236 million** | Key Cash Flow Statement Items (Year-to-Date) | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -579,687,763.94 | -172,878,140.15 | -235.32% | | Net Cash Flow from Investing Activities | -132,696,449.34 | -158,040,054.44 | +16.04% | | Net Cash Flow from Financing Activities | 691,674,128.42 | 282,515,975.01 | +144.83% | | Net Increase in Cash and Cash Equivalents | -20,628,194.99 | -48,467,918.23 | +57.44% | | Cash and Cash Equivalents at Period-End | 236,327,940.98 | 237,693,069.31 | -0.57% |

Financial Performance - The company's operating revenue for the first half of 2022 was ¥866.70 million, representing a 16.38% increase compared to ¥744.69 million in the same period last year[22]. - The net profit attributable to shareholders of the listed company was a loss of ¥26.70 million, a decrease of 217.02% from a profit of ¥22.82 million in the previous year[22]. - The net cash flow from operating activities was a negative ¥449.59 million, worsening by 174.79% compared to a negative ¥166.19 million in the same period last year[22]. - The total assets at the end of the reporting period were ¥5.46 billion, an increase of 7.19% from ¥4.90 billion at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 3.27% to ¥2.45 billion from ¥2.53 billion at the end of the previous year[22]. - The basic earnings per share for the reporting period was -¥0.08, a decline of 188.89% from ¥0.09 in the same period last year[22]. - The diluted earnings per share also stood at -¥0.08, reflecting the same decline as the basic earnings per share[22]. - The weighted average return on net assets was -1.07%, down from 1.30% in the previous year[22]. Research and Development - In the first half of 2022, the company's R&D investment reached 67.79 million yuan, accounting for 7.82% of revenue, a 49.60% increase year-on-year[40]. - The company has nearly 400 patents as of June 30, 2022, reflecting its strong focus on innovation and technology development[40]. - The company maintains a strong focus on R&D, collaborating with universities and research institutions to innovate in areas such as lithium battery equipment and water treatment technologies[31]. - Research and development expenses rose by 49.60% to ¥67,793,788.79, reflecting increased investment in multi-energy IoT and energy storage technologies[49]. Market Position and Strategy - The company focuses on providing intelligent control hardware and software products for the renewable energy and environmental protection sectors, with no significant changes in its main business during the reporting period[30]. - The company has a leading global market share in automation and control equipment for power stations and pump stations, and has established partnerships with major state-owned enterprises[32]. - The lithium battery equipment revenue has seen rapid growth, supported by long-term collaborations with leading companies such as CATL and Gotion High-tech[33]. - The company aims to meet the increasing demand in the lithium battery market, which is projected to exceed 1,400 GWh by 2025, with a compound annual growth rate of over 45%[35]. - The company plans to enhance its market expansion efforts in the renewable energy sector, driven by the national "dual carbon" strategy[100]. Financial Management - The company reported a 66.14% increase in net cash flow from financing activities, amounting to ¥541,013,057.75, due to a decrease in cash outflows compared to the previous year[49]. - The company's short-term loans increased by 98.29% to ¥865,122,691.59, primarily due to an increase in bank loans[50]. - Contract liabilities rose by 79.41% to ¥309,408,892.17, reflecting an increase in pre-received sales contract amounts[50]. - The company's cash and cash equivalents decreased by 121.83% to -¥11,309,043.44, mainly due to a significant increase in cash outflows from operating activities[49]. - The company has established a robust internal control system and risk management measures for its hedging activities[89]. Environmental and Social Responsibility - The company actively promotes green development and has committed to the national "3060" carbon peak and carbon neutrality goals, focusing on the development of new energy and energy storage systems[112]. - The company has established dedicated waste gas and wastewater treatment measures at its subsidiaries, ensuring normal operation of pollution control facilities[111]. - The company provided internship opportunities to students from major universities in Hunan, including Hunan University and Central South University, enhancing local talent supply[113]. - There were no significant administrative penalties related to environmental issues during the reporting period[111]. Related Party Transactions and Governance - The company reported a total amount of related party transactions of 152.3 million yuan, accounting for 7.0% of the total revenue[125]. - The approved transaction limit for related party transactions was 450 million yuan, indicating a significant capacity for future transactions[125]. - The company has not engaged in any significant related party transactions during the reporting period, ensuring transparency and compliance[132]. - The company has not reported any major penalties or compliance issues, indicating a strong governance framework[124]. Shareholder Information - The total number of shareholders at the end of the reporting period is 43,349[166]. - The largest shareholder, Changsha Huazhi Technology Group, holds 26.22% of the shares, totaling 85,941,031 shares[167]. - The total number of shares held by the top ten unrestricted shareholders amounts to 107,000,000 shares[168]. - The total number of restricted shares at the end of the period is 6,306,327, with 306,818 shares released during the current period[164].

Financial Performance - Revenue for Q1 2023 was CNY 395.19 million, a decrease of 3.65% compared to CNY 410.15 million in the same period last year[5] - Net loss attributable to shareholders was CNY 31.97 million, representing a 165.05% increase in losses from CNY 12.06 million year-on-year[5] - The company reported a basic and diluted earnings per share of CNY -0.10, a decline of 150% from CNY -0.04 in the previous year[5] - The net profit for Q1 2023 was -39,975,514.15 CNY, compared to -15,406,935.89 CNY in the same period last year, indicating a significant increase in losses[31] - The net profit attributable to the parent company was -31,965,008.42 CNY, up from -12,059,894.14 CNY year-over-year[31] - Operating profit for the period was a loss of CNY 47,392,873.13, compared to a loss of CNY 16,126,354.68 in the previous period[30] - The company reported a net loss of CNY 47,501,559.10 for the period, compared to a loss of CNY 16,144,565.29 in the previous period[30] - The report highlights the importance of maintaining shareholder relationships and transparency regarding shareholding structures[22] Cash Flow and Liquidity - Cash flow from operating activities improved by 64.85%, with a net outflow of CNY 122.39 million compared to CNY 348.14 million in the previous year[5] - Operating cash inflow increased by 95.60% to CNY 693.97 million, driven by higher cash receipts from sales of goods and services[14] - Operating cash outflow rose by 16.14% to CNY 816.36 million, mainly due to increased payments for goods and services[14] - The net cash flow from operating activities improved by 64.85%, resulting in a net outflow of CNY 122.39 million[15] - The net increase in cash and cash equivalents was CNY 555.57 million, a growth of 2,030.13% year-on-year[16] - The ending balance of cash and cash equivalents reached CNY 888.96 million, up 289.60% compared to the previous year[16] - Cash and cash equivalents rose significantly to CNY 1,020,296,575.04 from CNY 469,691,133.09, indicating improved liquidity[27] - Total cash inflow from operating activities was 693,968,673.25 CNY, compared to 354,781,370.29 CNY in the prior year, reflecting a 95.5% increase[34] - The total cash and cash equivalents at the end of the period stood at 888,955,481.08 CNY, up from 228,171,932.98 CNY at the end of Q1 2022[35] Assets and Liabilities - Total assets increased by 14.52% to CNY 6.48 billion from CNY 5.66 billion at the end of the previous year[5] - Total operating costs increased to CNY 449,193,303.16, up 5.8% from CNY 426,894,257.07[30] - Total liabilities decreased to CNY 3,456,983,887.20 from CNY 3,497,017,989.56[28] - Owner's equity increased to CNY 3,019,830,482.67, up from CNY 2,158,588,421.59[28] - Accounts receivable decreased to CNY 1,304,350,423.63 from CNY 1,355,345,138.05, reflecting tighter credit management[27] - Inventory levels decreased to CNY 823,805,869.37 from CNY 940,204,704.99, suggesting improved inventory turnover[27] Financing Activities - Financing cash inflow increased by 107.69% to CNY 1.16 billion, attributed to funds raised from issuing shares to specific investors[15] - The company issued 64,493,267 shares of ordinary stock to specific investors, increasing the total share capital from 327,824,407 shares to 394,193,274 shares[24] - The company plans to implement a stock incentive plan to attract and retain talent, which was approved in March 2023[23] - The company is focused on enhancing its long-term incentive mechanisms to motivate its core team[23] Strategic Developments - The company did not report any new strategies or product developments during the quarter[9] - The company is actively working on new strategies to expand its market presence and improve operational efficiency[23] - The first quarter financial results will be detailed in the upcoming financial statements[26] - Significant increases were noted in financial expenses, which rose by 163.91% to CNY 11.21 million, mainly due to higher bank loan interest and financing lease costs[12] - The company has not disclosed any related party transactions among the top shareholders[22]

[Key Financial Data](index=1&type=section&id=I.%20Key%20Financial%20Data) This section provides an overview of the company's key financial performance and position for the reporting period [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue grew by 52.03%, but net profit, operating cash flow, and EPS significantly declined, indicating profitability and cash flow pressure Key Accounting Data and Financial Indicators for Q1 2022 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 405,061,836.78 | 266,439,409.73 | 52.03% | | Net Profit Attributable to Shareholders of the Listed Company | -11,942,527.04 | 3,348,951.31 | -456.60% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | -12,601,566.77 | 118,060.47 | -10,773.82% | | Net Cash Flow from Operating Activities | -336,194,811.55 | -46,819,463.97 | -618.07% | | Basic Earnings Per Share (Yuan/Share) | -0.04 | 0.01 | -500.00% | | Diluted Earnings Per Share (Yuan/Share) | -0.04 | 0.01 | -500.00% | | Weighted Average Return on Net Assets | -0.48% | 0.19% | -0.67% | | Total Assets (Period End) | 5,100,656,134.03 | 4,901,934,892.67 | 4.05% | | Total Equity Attributable to Shareholders of the Listed Company (Period End) | 2,481,285,363.25 | 2,483,140,719.37 | -0.07% | [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=(II)%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses were 659,039.73 Yuan, mainly from government grants and asset disposal, partially offset by tax and minority interests Non-Recurring Gains and Losses Items and Amounts | Item | Amount for Current Period (Yuan) | Explanation | | :--- | :--- | :--- | | Gains and Losses on Disposal of Non-Current Assets | 98,400.68 | Primarily from gains/losses on disposal of fixed assets | | Government Grants Recognized in Current Period Profit/Loss | 1,560,827.37 | Primarily government grants | | Gains and Losses from Entrusted Investments or Asset Management | 30,775.40 | From wealth management product income | | Debt Restructuring Gains and Losses | -75,480.97 | | | Gains and Losses from Fair Value Changes and Investment Income | 81,362.79 | From futures investment gains/losses | | Other Non-Operating Income and Expenses | -52,520.55 | | | Less: Income Tax Impact | 172,333.67 | | | Minority Interests Impact (After Tax) | 811,991.32 | | | Total | 659,039.73 | -- | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=2&type=section&id=(III)%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Key balance sheet, income, and cash flow indicators changed significantly, driven by lithium battery equipment sales, R&D, increased borrowings, and higher operating cash outflows [Balance Sheet Item Changes and Reasons](index=2&type=section&id=(I)%20Balance%20Sheet%20Items) This section details the period-end changes in key balance sheet items and their underlying causes Balance Sheet Item Changes | Balance Sheet Item | Period End (Yuan) | Period Start (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Receivables Financing | 162,466,338.33 | 107,849,953.02 | 50.64% | | Prepayments | 211,447,648.82 | 132,726,480.94 | 59.31% | | Other Receivables | 95,600,355.21 | 57,549,552.77 | 66.12% | | Other Current Assets | 56,109,477.38 | 33,597,317.12 | 67.01% | | Short-Term Borrowings | 602,729,859.19 | 436,288,616.14 | 38.15% | | Employee Compensation Payable | 6,670,499.78 | 25,761,645.68 | -74.11% | | Taxes Payable | 33,110,199.45 | 64,772,504.97 | -48.88% | | Provisions | 7,752,500.59 | 12,498,469.31 | -37.97% | | Minority Interests | 93,162,882.73 | 67,832,027.36 | 37.34% | - Receivables financing increased by **50.64%**, primarily due to an increase in unconfirmed bank acceptance bills received[8](index=8&type=chunk) - Prepayments increased by **59.31%**, mainly due to higher procurement payments made in the current period[8](index=8&type=chunk) - Short-term borrowings increased by **38.15%**, primarily due to an increase in bank working capital loans in the current period[8](index=8&type=chunk) - Employee compensation payable decreased by **74.11%**, mainly because accruals from the prior year-end were paid in the current period[8](index=8&type=chunk) [Income Statement Item Changes and Reasons](index=3&type=section&id=(II)%20Income%20Statement%20Items) This section analyzes the period-over-period changes in key income statement items and their contributing factors Income Statement Item Changes | Income Statement Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 405,061,836.78 | 266,439,409.73 | 52.03% | | Operating Cost | 304,717,076.54 | 179,134,793.51 | 70.10% | | Taxes and Surcharges | 2,547,179.32 | 2,206,434.69 | 15.44% | | Administrative Expenses | 42,714,204.25 | 32,050,842.60 | 33.27% | | Research and Development Expenses | 30,808,544.58 | 22,363,992.84 | 37.76% | | Other Income | 1,759,475.79 | 3,936,148.43 | -55.30% | | Credit Impairment Losses | -464,351.74 | 6,780,812.98 | 106.85% | | Asset Impairment Losses | -918,528.21 | -5,088,421.46 | -81.95% | | Income Tax Expense | -737,629.40 | 1,876,897.53 | -139.30% | - Operating revenue increased by **52.03%**, primarily due to increased sales of intelligent equipment for lithium batteries and their materials[7](index=7&type=chunk) - Operating cost increased by **70.10%**, mainly due to the corresponding increase in costs driven by higher operating revenue[7](index=7&type=chunk) - Administrative expenses increased by **33.27%**, primarily due to higher amortization of equity incentive expenses in the current period[9](index=9&type=chunk) - Research and development expenses increased by **37.76%**, mainly due to the company's increased R&D investment[9](index=9&type=chunk) - Income tax expense decreased by **139.30%**, primarily due to a decrease in taxable income for the current period[10](index=10&type=chunk) [Cash Flow Statement Item Changes and Reasons](index=4&type=section&id=(III)%20Cash%20Flow%20Statement%20Items) This section examines the period-over-period changes in key cash flow statement items and their contributing factors Cash Flow Statement Item Changes | Cash Flow Statement Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Cash Outflows from Operating Activities | 672,571,987.45 | 374,872,564.90 | 79.41% | | Net Cash Flow from Operating Activities | -336,194,811.55 | -46,819,463.97 | -618.07% | | Cash Outflows from Investing Activities | 29,815,144.33 | 15,209,519.74 | 96.03% | | Net Cash Flow from Investing Activities | -23,389,692.41 | -15,209,519.74 | 53.78% | | Cash Inflows from Financing Activities | 558,305,970.91 | 837,680,312.05 | -33.35% | | Net Cash Flow from Financing Activities | 343,424,848.16 | 605,086,992.38 | -43.24% | | Net Increase in Cash and Cash Equivalents | -16,189,270.06 | 543,073,389.52 | -102.98% | | Cash and Cash Equivalents at Period End | 225,620,123.39 | 829,234,377.06 | -72.79% | - Cash outflows from operating activities increased by **79.41%**, primarily due to higher cash payments for goods and services[12](index=12&type=chunk) - Net cash flow from operating activities decreased by **618.07%**, mainly due to a significant increase in cash outflows from operating activities[12](index=12&type=chunk) - Cash inflows from financing activities decreased by **33.35%**, primarily due to the increase in cash received from convertible corporate bonds issued in the prior year period[12](index=12&type=chunk) [Shareholder Information](index=5&type=section&id=II.%20Shareholder%20Information) This section provides details on the company's shareholder structure, including top holders and restricted share movements [Total Number of Common Shareholders and Top Ten Shareholders' Holdings](index=5&type=section&id=(I)%20Total%20Number%20of%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings) The company had 44,152 common shareholders; the controlling shareholder held 27.64% of shares, with most pledged Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held (Shares) | Number of Restricted Shares Held (Shares) | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Changsha Huaneng Zikong Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 27.64% | 90,615,331 | 0 | Pledged | 69,641,979 | | Guangzhou Chengxin Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.29% | 10,796,892 | 0 | | | | Huang Wenbao | Domestic Natural Person | 0.99% | 3,260,870 | 2,445,652 | Pledged | 1,000,000 | | Ling Jiuhua | Domestic Natural Person | 0.93% | 3,050,000 | 0 | | | | Gerante Technology (Huzhou) Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.82% | 2,691,268 | 0 | | | | Wang Xiaobing | Domestic Natural Person | 0.70% | 2,282,608 | 1,711,956 | Pledged | 2,000,000 | | Shi Liyong | Domestic Natural Person | 0.67% | 2,197,570 | 0 | | | | Guo Chao | Domestic Natural Person | 0.59% | 1,931,542 | 0 | | | | Guo Xudong | Domestic Natural Person | 0.54% | 1,784,782 | 0 | | | | Industrial and Commercial Bank of China Co., Ltd. - Southern High-End Equipment Flexible Allocation Mixed Securities Investment Fund | Other | 0.45% | 1,482,300 | 0 | | | - The total number of common shareholders at the end of the reporting period was **44,152**[14](index=14&type=chunk) - Changsha Huaneng Zikong Group Co., Ltd. is the controlling shareholder, Huang Wenbao is the actual controller, and Huang Wenbao and Wang Xiaobing hold positions at Huazi Group[15](index=15&type=chunk) [Preferred Shareholder Information](index=6&type=section&id=(II)%20Total%20Number%20of%20Preferred%20Shareholders%20and%20Top%2010%20Preferred%20Shareholders'%20Holdings) The company has no preferred shareholders - The company has no preferred shareholders[16](index=16&type=chunk) [Changes in Restricted Shares](index=6&type=section&id=(III)%20Changes%20in%20Restricted%20Shares) Restricted shares for executives and equity incentive recipients slightly decreased due to the release of locked shares as per regulations Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Start (Shares) | Restricted Shares Released in Current Period (Shares) | Restricted Shares Increased in Current Period (Shares) | Restricted Shares at Period End (Shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huang Wenbao | 2,445,652 | 0 | 0 | 2,445,652 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Wang Qingbing | 1,711,956 | 0 | 0 | 1,711,956 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Yu Jiangnan | 710,869 | 0 | 0 | 710,869 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Zhou Ai | 313,472 | 78,367 | 0 | 235,105 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Miao Honglei | 338,805 | 84,701 | 0 | 254,104 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Hui Pengfu | 475,000 | 75,000 | 0 | 400,000 | Equity Incentive Restricted Shares | Equity incentive restricted shares are released according to the 2021 Restricted Stock Incentive Plan. | | Hu Hao | 192,391 | 0 | 0 | 192,391 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Chen Hongfei | 175,000 | 25,000 | 0 | 150,000 | Equity Incentive Restricted Shares, Senior Management Locked Shares | Equity incentive restricted shares are released according to the 2021 Restricted Stock Incentive Plan, and 25% of senior management locked shares are unlocked annually. | | Yuan Jiangfeng | 175,000 | 25,000 | 0 | 150,000 | Equity Incentive Restricted Shares, Senior Management Locked Shares | Equity incentive restricted shares are released according to the 2021 Restricted Stock Incentive Plan, and 25% of senior management locked shares are unlocked annually. | | Tang Kai | 75,000 | 18,750 | 0 | 56,250 | Senior Management Locked Shares | 25% of the total shares held at the end of the previous year are unlocked annually. | | Total | 6,613,145 | 306,818 | 0 | 6,306,327 | -- | -- | - A total of **306,818** restricted shares were released in the current period, primarily senior management locked shares and equity incentive restricted shares unlocked as per regulations[17](index=17&type=chunk)[18](index=18&type=chunk) [Other Significant Matters](index=7&type=section&id=III.%20Other%20Significant%20Matters) This section highlights other significant corporate developments, including plans for convertible bond issuance [Company Plans to Issue Convertible Corporate Bonds](index=7&type=section&id=Company%20Plans%20to%20Issue%20Convertible%20Corporate%20Bonds) The company plans to issue up to **RMB 1 billion** in convertible bonds to fund acquisitions, energy storage projects, and working capital - The company plans to issue convertible corporate bonds to unspecified investors, with a total scale not exceeding **RMB 1 billion**[19](index=19&type=chunk) - The raised funds will be invested in acquiring **96.20%** equity of Chengbu Shanneng, energy storage power station projects, integrated "PV+Storage" projects in industrial parks, and supplementing working capital[19](index=19&type=chunk) [Quarterly Financial Statements](index=7&type=section&id=IV.%20Quarterly%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the first quarter, including balance sheet, income statement, and cash flow statement [Financial Statements](index=7&type=section&id=(I)%20Financial%20Statements) This section presents the unaudited consolidated balance sheet, income statement, and cash flow statement for Q1 2022, detailing financial position, operating results, and cash flows [Consolidated Balance Sheet](index=7&type=section&id=1.%20Consolidated%20Balance%20Sheet) This table presents the company's consolidated financial position as of March 31, 2022 Consolidated Balance Sheet (March 31, 2022) | Item | Period End Balance (Yuan) | Year Start Balance (Yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 363,287,781.40 | 506,563,821.40 | | Financial Assets Held for Trading | 6,000,000.00 | 0 | | Notes Receivable | 101,114,960.06 | 117,226,401.33 | | Accounts Receivable | 1,428,443,343.12 | 1,456,816,070.74 | | Receivables Financing | 162,466,338.33 | 107,849,953.02 | | Prepayments | 211,447,648.82 | 132,726,480.94 | | Other Receivables | 95,600,355.21 | 57,549,552.77 | | Inventories | 677,951,682.98 | 488,847,528.44 | | Contract Assets | 272,745,587.10 | 239,789,084.55 | | Other Current Assets | 56,109,477.38 | 33,597,317.12 | | Total Current Assets | 3,375,167,174.40 | 3,140,966,210.31 | | Total Non-Current Assets | 1,725,488,959.63 | 1,760,968,682.36 | | Total Assets | 5,100,656,134.03 | 4,901,934,892.67 | | Short-Term Borrowings | 602,729,859.19 | 436,288,616.14 | | Notes Payable | 449,031,046.71 | 544,021,389.18 | | Accounts Payable | 903,921,357.34 | 797,202,510.65 | | Contract Liabilities | 193,904,569.64 | 169,410,049.63 | | Employee Compensation Payable | 6,670,499.78 | 25,761,645.68 | | Taxes Payable | 33,110,199.45 | 64,772,504.97 | | Other Payables | 22,523,244.79 | 19,418,032.23 | | Other Current Liabilities | 114,994,470.00 | 89,098,290.70 | | Total Current Liabilities | 2,336,885,246.90 | 2,156,094,772.51 | | Total Non-Current Liabilities | 189,322,641.15 | 194,867,373.43 | | Total Liabilities | 2,526,207,888.05 | 2,350,962,145.94 | | Total Equity Attributable to Owners of the Parent Company | 2,481,285,363.25 | 2,483,140,719.37 | | Minority Interests | 93,162,882.73 | 67,832,027.36 | | Total Equity | 2,574,448,245.98 | 2,550,972,746.73 | | Total Liabilities and Equity | 5,100,656,134.03 | 4,901,934,892.67 | [Consolidated Income Statement](index=10&type=section&id=2.%20Consolidated%20Income%20Statement) This table presents the company's consolidated operating results for the current and prior periods Consolidated Income Statement (Current Period) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 405,061,836.78 | 266,439,409.73 | | II. Total Operating Costs | 421,680,510.72 | 269,562,246.94 | | Operating Cost | 304,717,076.54 | 179,134,793.51 | | Taxes and Surcharges | 2,547,179.32 | 2,206,434.69 | | Selling Expenses | 36,641,841.85 | 28,653,471.91 | | Administrative Expenses | 42,714,204.25 | 32,050,842.60 | | Research and Development Expenses | 30,808,544.58 | 22,363,992.84 | | Financial Expenses | 4,251,664.18 | 5,152,711.39 | | Add: Other Income | 1,759,475.79 | 3,936,148.43 | | Investment Income | 123,775.96 | 102,438.06 | | Gains from Fair Value Changes | 15,550.00 | 0 | | Credit Impairment Losses | -464,351.74 | 6,780,812.98 | | Asset Impairment Losses | -918,528.21 | -5,088,421.46 | | Gains on Disposal of Assets | 98,400.68 | 23,162.14 | | III. Operating Profit | -16,004,351.46 | 2,631,302.94 | | IV. Total Profit | -16,022,562.07 | 2,796,675.52 | | Less: Income Tax Expense | -737,629.40 | 1,876,897.53 | | V. Net Profit | -15,284,932.67 | 919,777.99 | | Net Profit Attributable to Owners of the Parent Company | -11,942,527.04 | 3,348,951.31 | | Minority Interests Profit/Loss | -3,342,405.63 | -2,429,173.32 | | VII. Total Comprehensive Income | -15,284,932.67 | 919,777.99 | | Total Comprehensive Income Attributable to Owners of the Parent Company | -11,942,527.04 | 3,348,951.31 | | Total Comprehensive Income Attributable to Minority Interests | -3,342,405.63 | -2,429,173.32 | | VIII. Earnings Per Share: | | | | (I) Basic Earnings Per Share | -0.04 | 0.01 | | (II) Diluted Earnings Per Share | -0.04 | 0.01 | [Consolidated Cash Flow Statement](index=12&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement) This table presents the company's consolidated cash flows from operating, investing, and financing activities Consolidated Cash Flow Statement (Current Period) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 336,377,175.90 | 328,053,100.93 | | Subtotal of Cash Outflows from Operating Activities | 672,571,987.45 | 374,872,564.90 | | Net Cash Flow from Operating Activities | -336,194,811.55 | -46,819,463.97 | | Subtotal of Cash Inflows from Investing Activities | 6,425,451.92 | 0 | | Subtotal of Cash Outflows from Investing Activities | 29,815,144.33 | 15,209,519.74 | | Net Cash Flow from Investing Activities | -23,389,692.41 | -15,209,519.74 | | Subtotal of Cash Inflows from Financing Activities | 558,305,970.91 | 837,680,312.05 | | Subtotal of Cash Outflows from Financing Activities | 214,881,122.75 | 232,593,319.67 | | Net Cash Flow from Financing Activities | 343,424,848.16 | 605,086,992.38 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -29,614.26 | 15,380.85 | | Net Increase in Cash and Cash Equivalents | -16,189,270.06 | 543,073,389.52 | | Cash and Cash Equivalents at Period End | 225,620,123.39 | 829,234,377.06 | [Audit Report](index=14&type=section&id=(II)%20Audit%20Report) The company's first quarter report is unaudited - The company's first quarter report is unaudited[32](index=32&type=chunk)

Financial Performance - The company's operating revenue for 2021 was ¥2,328,469,360.35, representing a 100.34% increase compared to ¥1,162,285,734.05 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥45,116,792.97, a 50.09% increase from ¥30,060,733.41 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥32,258,766.70, an 88.23% increase from ¥17,138,202.46 in 2020[20]. - The total assets at the end of 2021 reached ¥4,901,934,892.67, a 40.34% increase from ¥3,492,994,151.56 at the end of 2020[20]. - The net assets attributable to shareholders increased by 42.07% to ¥2,483,140,719.37 at the end of 2021 from ¥1,747,870,527.11 at the end of 2020[20]. - The company achieved a total revenue of CNY 2,328,469,360.35 in 2021, representing a year-on-year growth of 100.34%[61]. - The net profit attributable to the parent company was CNY 45,116,800, marking a 50.09% increase compared to the previous year[56]. - The company reported a total revenue of 49,900 million for the year, with a significant increase in lithium battery production equipment sales, reaching 9,740 million[73]. - The total revenue for 2021 reached 619.18 million RMB, a significant increase from 119.10 million RMB in 2020, reflecting a growth rate of 419.01%[77]. - The company reported a total of 44 new energy-saving and environmental protection engineering orders, with a total value of 28.55 million RMB during the reporting period[75]. Cash Flow and Investments - The company reported a negative net cash flow from operating activities of ¥184,325,578.15 in 2021, a decrease of 231.22% compared to ¥140,470,473.59 in 2020[20]. - Operating cash inflow increased by 27.52% year-on-year to approximately ¥1.55 billion, driven by higher cash receipts from sales of goods and services[96]. - Operating cash outflow rose by 61.43% year-on-year to approximately ¥1.73 billion, primarily due to increased payments for goods, services, taxes, and employee compensation[96]. - Investment cash inflow surged by 3,045.14% year-on-year to approximately ¥181.02 million, mainly from cash received from redeeming bank wealth management products[97]. - Investment cash outflow increased by 191.38% year-on-year to approximately ¥504.93 million, attributed to payments for new energy automatic detection equipment and construction projects[97]. - Net cash flow from investing activities declined by 93.34% year-on-year, resulting in a net outflow of approximately ¥323.91 million[97]. - Financing cash inflow grew by 88.95% year-on-year to approximately ¥1.35 billion, primarily due to funds raised from issuing convertible bonds[96]. - Financing cash outflow increased by 65.11% year-on-year to approximately ¥882.27 million, mainly for repaying bank loans and increasing guarantees[96]. - Net cash flow from financing activities rose by 160.44% year-on-year to approximately ¥464.03 million[96]. Risk Management - The company faces risks including raw material price increases, market expansion challenges, and technology innovation sustainability[5]. - The company has established a comprehensive risk management framework to address various operational risks[5]. - The company is exposed to goodwill impairment risks following acquisitions if the performance of acquired entities does not meet expectations[145]. - The company reported accounts receivable of CNY 145,681.61 million, accounting for 29.72% of total assets, indicating potential liquidity risks[145]. Research and Development - The company achieved a research and development investment of ¥137.53 million in 2021, with 651 technical personnel accounting for 31.28% of total employees, and holds nearly 400 valid patents, including about 100 invention patents[48]. - The company plans to continue enhancing its research and development capabilities to align with the national "dual carbon" strategy and expand its market share in renewable energy[57]. - The company is investing heavily in environmental technology, aligning with global sustainability trends[172]. - The company has a strong focus on R&D, with ongoing projects in new technologies and products aimed at market expansion[172]. Market Position and Strategy - The company is actively involved in the development of new technologies and products to enhance its market position[5]. - The company has established strategic partnerships with major state-owned enterprises to advance its new energy and energy storage businesses, including projects like the Hunan power grid battery storage demonstration station[42]. - The company is exploring strategic acquisitions to enhance its market position and technological capabilities in the energy sector[73]. - The company is focused on expanding its lithium battery automation production lines and enhancing its competitive advantages in the market[147]. - The company plans to enhance its market expansion efforts in the energy storage sector, leveraging new technologies and products[75]. Corporate Governance - The company emphasizes the importance of accurate financial reporting, with key personnel affirming the report's authenticity[4]. - The company has established a transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with legal regulations[152]. - The company maintains independence from its controlling shareholder, ensuring no interference in decision-making processes[150]. - The company has established a legal governance structure in compliance with the Company Law and relevant regulations, ensuring operational independence[154]. Environmental and Social Responsibility - The company has a commitment to environmental and social responsibility, as indicated in its annual report[8]. - The environmental protection equipment manufacturing industry is projected to reach a value of 1.3 trillion yuan by 2025, driven by increasing demand for water treatment membranes and separation technologies[35]. - The investment scale for urban sewage treatment and resource utilization facilities is expected to reach 733.7 billion yuan during the "14th Five-Year Plan" period, indicating significant growth potential in the water treatment sector[36]. Shareholder Engagement - The company held a total of 4 shareholder meetings during the reporting period, reviewing 15 proposals[150]. - The company has a clear governance structure with a shareholder meeting participation rate of 44.80% for the first extraordinary general meeting in 2021[156]. - The company has maintained a consistent dividend policy, with cash dividends constituting at least 80% of profit distribution during its mature development stage[194]. - The company declared a cash dividend of 0.30 CNY per 10 shares, totaling 9,834,732.21 CNY for the reporting period[194].