[Key Financial Data](index=1&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) [Core Financial Indicators](index=1&type=section&id=%E4%B8%80%E3%80%81(%E4%B8%80)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company reported strong revenue and profit growth in Q1 2022 but faced significant cash flow pressure from operating activities Key Financial Indicators for Q1 2022 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 537,645,018.20 | 294,808,302.88 | 82.37% | | Net Profit Attributable to Shareholders (Yuan) | 71,096,853.35 | 44,408,744.94 | 60.10% | | Net Profit Attributable to Shareholders (Non-recurring items deducted) (Yuan) | 62,291,538.81 | 42,465,189.84 | 46.69% | | Net Cash Flow from Operating Activities (Yuan) | -178,877,187.69 | -70,656,958.08 | -153.16% | | Basic Earnings Per Share (Yuan/Share) | 0.12 | 0.07 | 71.43% | | Total Assets (Yuan) | 3,525,327,567.84 | - | 6.23% (vs. End of Prior Year) | | Equity Attributable to Shareholders (Yuan) | 1,853,632,855.75 | - | 4.85% (vs. End of Prior Year) | [Non-recurring Gains and Losses](index=2&type=section&id=%E4%B8%80%E3%80%81(%E4%BA%8C)%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Total non-recurring gains for the period were ¥8.81 million, primarily driven by a ¥11.15 million government subsidy Non-recurring Items for Q1 2022 | Item | Amount (Yuan) | Notes | | :--- | :--- | :--- | | Government subsidies included in current profit/loss | 11,149,606.65 | - | | Gains/losses on disposal of non-current assets | 121,866.75 | - | | Less: Income tax effect | 2,476,105.49 | - | | **Total** | **8,805,314.54** | -- | [Analysis of Financial Data Changes](index=2&type=section&id=%E4%B8%80%E3%80%81(%E4%B8%89)%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Financial data changes reflect the company's expansion strategy, with significant increases in investments, R&D spending, and bank borrowings to support rapid revenue growth [Balance Sheet Item Fluctuation Analysis](index=2&type=section&id=%E4%B8%80%E3%80%81(%E4%B8%89)1.%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E5%8F%98%E5%8A%A8) The balance sheet reflects an expansion phase, marked by substantial increases in construction in progress, long-term investments, and short-term borrowings Major Balance Sheet Item Changes (Fluctuation > 30%) | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Construction in Progress | 480.97% | Continued investment in new base construction | | Short-term Borrowings | 205.93% | Increase in bank loans | | Long-term Deferred Expenses | 191.98% | Increase in deferred decoration costs | | Long-term Equity Investments | 159.74% | New external investments | | Taxes Payable | 122.92% | Increased sales led to a corresponding increase in taxes | | Lease Liabilities | 114.13% | New property leases | | Contract Liabilities | -71.22% | Partial delivery of orders with advance payments from the previous period | | Employee Compensation Payable | -40.39% | Payment of prior year-end bonuses | [Income Statement Item Fluctuation Analysis](index=2&type=section&id=%E4%B8%80%E3%80%81(%E4%B8%89)2.%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E5%8F%98%E5%8A%A8) The income statement shows rapid business growth, with an 82% revenue increase driving significant rises in R&D expenses, cost of sales, and net profit Major Income Statement Item Changes (Fluctuation > 30%) | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Income Tax Expense | 8002.36% | Increased profits led to a corresponding increase in income tax expense | | Finance Costs | 123.31% | Increased loan interest and exchange rate fluctuations | | Other Income | 114.63% | Increase in government subsidies and software tax refunds | | Net Profit | 92.72% | Increased sales led to higher profitability | | R&D Expenses | 92.28% | Continued increase in R&D investment | | Cost of Sales | 85.86% | Increased sales led to a corresponding increase in costs | | Operating Revenue | 82.37% | Increase in sales | | Administrative Expenses | 52.78% | Expansion of business scale led to higher administrative costs | [Cash Flow Statement Item Fluctuation Analysis](index=3&type=section&id=%E4%B8%80%E3%80%81(%E4%B8%89)3.%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E5%8F%98%E5%8A%A8) Despite a 106% increase in cash from sales, operating cash flow worsened due to higher payments for purchases and employee compensation Major Cash Flow Statement Item Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash Paid for Investments | 164.00% | New external investment amount | | Cash Paid for Goods and Services | 125.16% | Increased sales led to a corresponding increase in procurement | | Cash Paid for Taxes | 125.23% | Increased sales led to a corresponding increase in taxes | | Cash Received from Sales of Goods and Services | 105.50% | Increased sales led to higher cash collections | | Cash Paid to and for Employees | 94.38% | Increased headcount, higher salaries, and payment of prior year-end bonuses | | Cash Received from Borrowings | - | Increase in bank borrowings during the period | [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) [Shareholder Holdings](index=4&type=section&id=%E4%BA%8C%E3%80%81(%E4%B8%80)%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had 25,979 common shareholders, with a concentrated ownership structure led by the largest shareholder Zhao Yi (23.42%) - The total number of common shareholders was **25,979** at the end of the reporting period[8](index=8&type=chunk) Top Five Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | Zhao Yi | Domestic Natural Person | 23.42% | 141,562,196 | | National Integrated Circuit Industry Investment Fund Co, Ltd | State-owned Legal Entity | 6.76% | 40,857,640 | | Hangzhou Changchuan Investment Management Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 6.21% | 37,558,565 | | Zhong Fenghao | Domestic Natural Person | 5.69% | 34,373,008 | | Han Xiao | Domestic Natural Person | 2.59% | 15,679,151 | - Note on related parties: Hangzhou Changchuan Investment Management Partnership (Limited Partnership) is a partnership controlled by Xu Xin, the spouse of Zhao Yi, one of the company's actual controllers[9](index=9&type=chunk) [Quarterly Financial Statements](index=5&type=section&id=%E5%9B%9B%E3%80%81%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Financial Statements](index=5&type=section&id=%E5%9B%9B%E3%80%81(%E4%B8%80)%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section contains the unaudited Q1 2022 consolidated financial statements, which support the preceding financial analysis - This chapter includes the detailed consolidated balance sheet, consolidated income statement, and consolidated cash flow statement[10](index=10&type=chunk)[14](index=14&type=chunk)[17](index=17&type=chunk) [Auditor's Report](index=12&type=section&id=%E5%9B%9B%E3%80%81(%E4%BA%8C)%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's financial report for the first quarter of 2022 was unaudited - The first quarter report has not been audited[20](index=20&type=chunk)

Financial Performance - The company's revenue for Q3 2021 reached ¥395,390,224.30, representing a 117.37% increase year-over-year[3] - Net profit attributable to shareholders was ¥39,958,786.50, a significant increase of 341.02% compared to the same period last year[3] - The net profit after deducting non-recurring gains and losses was ¥39,153,862.17, showing a remarkable growth of 2,922.77% year-over-year[3] - Net profit for Q3 2021 reached ¥138,589,786.97, a significant increase of 291.04% compared to the same period last year[8] - The net profit attributable to the parent company was ¥129,503,889.42, up 265.41% from the previous year[8] - Basic earnings per share for the period were ¥0.07, a 250.00% increase compared to the same period last year[3] - Basic and diluted earnings per share increased to ¥0.22 from ¥0.06, representing a growth of approximately 267%[20] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥2,892,645,962.56, reflecting a 54.97% increase from the end of the previous year[4] - The company's equity attributable to shareholders increased to ¥1,582,285,391.61, up 45.09% from the previous year[4] - Total current assets reached ¥2,349,803,826.49, compared to ¥1,351,062,155.41 in the previous year, marking a growth of around 74.1%[15] - Total liabilities increased to ¥934,509,564.05 from ¥592,628,231.93, which is an increase of approximately 57.7%[16] - The total equity attributable to shareholders rose to ¥1,582,285,391.61 from ¥1,090,518,524.95, showing an increase of about 45%[17] Cash Flow - The cash flow from operating activities showed a negative net amount of ¥-160,598,377.06, indicating a decline of 695.07% year-over-year[3] - Cash received from investment activities decreased by 100% to ¥0, as there were no performance compensation payments this year[8] - The company received cash from financing activities amounting to ¥548,036,013.08, compared to a cash outflow of ¥3,293,165.20 in the previous period[22] - The net cash flow from financing activities was CNY 517,003,955.46, an increase from CNY 40,573,586.91 in the previous period[23] - The total cash and cash equivalents at the end of the period reached CNY 717,618,692.38, up from CNY 186,166,498.15 in the previous period[23] Expenses - The company reported a significant increase in research and development expenses, which reached ¥231,191,297.58, up 69.35% year-over-year[7] - Tax expenses increased by 273.54% to ¥25,238,783.59 due to higher profits[8] - The company experienced a rise in tax expenses to ¥5,234,508.89 from ¥2,831,875.84, an increase of approximately 84%[18] Shareholder Information - The total number of common shareholders at the end of the reporting period was 33,301[9] - Major shareholder Zhao Yi holds 23.42% of the shares, amounting to 141,562,196 shares[10] - The company has no preferred shareholders as per the report[11] - The total number of restricted shares at the end of the period is 168,744,980, with an increase of 79,931,832 shares during the current period[12] Inventory and Accounts Receivable - The company's inventory increased to ¥803,268,878.56, reflecting an 84.61% rise due to increased stock in response to sales growth[6] - Accounts receivable rose to ¥655,214,222.64, up from ¥398,867,272.00, indicating a year-over-year increase of about 64.3%[15] Operating Revenue and Costs - Total operating revenue for the current period reached ¥1,068,674,008.86, a significant increase from ¥500,187,419.27 in the previous period, representing a growth of approximately 113%[18] - Total operating costs increased to ¥926,620,779.95 from ¥515,458,145.61, marking a rise of about 80%[18] Other Financial Metrics - The company reported a total comprehensive income of ¥126,405,127.72, up from ¥24,780,014.32 in the previous period[20] - The company reported a significant increase in sales revenue from customers, totaling ¥776,172,116.25, compared to ¥451,302,150.93 in the previous period[21] Miscellaneous - The third quarter report was not audited[25] - The company did not require adjustments to the beginning balance sheet items under the new leasing standards[24]

[Important Notice](index=2&type=section&id=第一节%20重要提示) The company's board, supervisors, and senior management, along with key financial officers, collectively affirm the truthfulness, accuracy, and completeness of this quarterly report and its financial statements - The company's Board of Directors, Supervisory Committee, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities; all directors attended the board meeting to review this quarterly report[2](index=2&type=chunk) - Zhao Yi (Company Head), Wei Gang (Head of Accounting), and Tang Yongjuan (Head of Accounting Department) jointly declare that the financial statements in this quarterly report are true, accurate, and complete[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=第二节%20公司基本情况) This section provides an overview of the company's significant financial performance metrics and detailed information on its shareholder structure as of the reporting period end [Major Accounting Data and Financial Indicators](index=3&type=section&id=一、主要会计数据和财务指标) The company achieved explosive growth in performance during the first three quarters of 2020, with operating revenue increasing by **147.09%** and net profit attributable to shareholders surging by **2,583.81%** year-on-year, alongside a significant turnaround in net cash flow from operating activities Major Financial Indicators for the First Three Quarters of 2020 | Indicator | Year-to-Date (CNY) | Same Period Last Year (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (CNY)** | 500,187,419.27 | 202,435,331.62 | 147.09% | | **Net Profit Attributable to Shareholders (CNY)** | 35,441,164.03 | 1,320,553.19 | 2,583.81% | | **Non-recurring Adjusted Net Profit Attributable to Shareholders (CNY)** | 3,629,285.59 | -15,005,031.06 | 124.17% | | **Net Cash Flow from Operating Activities (CNY)** | 26,988,322.13 | -63,437,705.62 | 142.54% | | **Basic Earnings Per Share (CNY/share)** | 0.12 | 0.00 | - | | **Weighted Average Return on Net Assets** | 3.50% | 0.28% | Increased by 3.22 percentage points | Major Financial Indicators for Q3 2020 | Indicator | Current Period (CNY) | Same Period Last Year (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (CNY)** | 181,898,381.31 | 100,342,410.29 | 81.28% | | **Net Profit Attributable to Shareholders (CNY)** | 9,060,589.04 | 244,502.70 | 3,605.72% | - The company's year-to-date non-recurring gains and losses totaled **CNY 31,811,878.44**, primarily from government grants of **CNY 37,553,818.84** recognized in current profit or loss, which significantly contributed to the difference between net profit and non-recurring adjusted net profit[4](index=4&type=chunk) [Shareholder Information](index=4&type=section&id=二、报告期末股东总数及前十名股东持股情况表) As of the reporting period end, the company had **21,471** common shareholders, with controlling shareholder Zhao Yi holding **25.37%** of shares, some of which are pledged, and National Integrated Circuit Industry Investment Fund Co., Ltd. as the second-largest shareholder with **9.87%** - As of the reporting period end, the company had a total of **21,471** common shareholders[6](index=6&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares | | :--- | :--- | :--- | :--- | | Zhao Yi | Domestic Natural Person | 25.37% | 79,606,419 | | National Integrated Circuit Industry Investment Fund Co., Ltd. | State-owned Legal Entity | 9.87% | 30,960,411 | | Hangzhou Changchuan Investment Management Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 7.87% | 24,709,544 | | Zhong Fenghao | Domestic Natural Person | 6.40% | 20,091,057 | | Ningbo Tiantang Silicon Valley Hehui Venture Capital Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 3.29% | 10,327,620 | - Shareholders Zhao Yi, Zhong Fenghao, and Sun Feng have pledged shares, with **22,163,504 shares**, **5,415,241 shares**, and **6,065,070 shares** pledged, respectively[6](index=6&type=chunk) - Hangzhou Changchuan Investment Management Partnership (Limited Partnership) is an entity controlled by Xu Xin (Zhao Yi's spouse), one of the actual controllers, forming a concerted party relationship[8](index=8&type=chunk) [Significant Events](index=7&type=section&id=第三节%20重要事项) This section details significant changes in the company's financial data and indicators, along with other important events and their implications during the reporting period [Analysis of Major Changes in Financial Data](index=7&type=section&id=一、报告期主要财务数据、财务指标发生重大变动的情况及原因) During the reporting period, the company experienced significant changes across various financial data points, primarily driven by increased sales, the consolidation of a wholly-owned subsidiary's operating data, new bank loans, government grants, and the implementation of new accounting standards [Balance Sheet Item Changes](index=7&type=section&id=一、资产负债表变动) Key balance sheet changes include a **131.38%** increase in short-term borrowings due to new bank loans, a **166.41%** rise in employee compensation payable, and a **98.83%** increase in deferred income tax assets, alongside the reclassification of "advances from customers" to "contract liabilities" under new revenue standards Major Balance Sheet Item Changes and Reasons | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Short-term Borrowings | 131.38% | Primarily due to new bank loans obtained in the current period | | Employee Compensation Payable | 166.41% | Primarily due to accrued bonuses and increased headcount in the current period | | Deferred Income Tax Assets | 98.83% | Primarily due to an increase in deductible income tax losses in the current period | | Long-term Equity Investments | 100.00% | Primarily due to external investments made in the current period | | Other Receivables | -86.05% | Primarily due to the receipt of performance compensation receivables from the beginning of the year | [Income Statement Item Changes](index=7&type=section&id=二、利润表变动) The income statement shows significant year-to-date increases in operating revenue by **147.09%** and operating cost by **148.22%**, driven by sales growth and subsidiary consolidation, with corresponding rises in selling, administrative, and R&D expenses, and an **85.03%** increase in other income due to government grants Major Income Statement Item Changes and Reasons (Year-to-Date) | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 147.09% | Primarily due to increased sales business compared to the same period last year and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Operating Cost | 148.22% | Primarily due to increased sales business compared to the same period last year and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Selling Expenses | 140.87% | Primarily due to increased company business leading to higher expenses and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Research and Development Expenses | 98.44% | Primarily due to increased company business leading to higher expenses and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Other Income | 85.03% | Primarily due to an increase in government grants received in the current period | [Cash Flow Statement Item Changes](index=8&type=section&id=三、现金流量表变动) Cash received from sales of goods increased by **204.37%** year-on-year, indicating strong sales collection, while cash outflows for purchases and employee compensation also rose with business expansion; net cash flow from operating activities turned positive, and financing cash inflows significantly increased due to new bank borrowings Major Cash Flow Statement Item Changes and Reasons (Year-to-Date) | Item | Change Percentage | Reason for Change | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Rendering of Services | 204.37% | Primarily due to increased cash receipts and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Paid for Goods and Services | 101.70% | Primarily due to the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Paid to and on Behalf of Employees | 108.68% | Primarily due to increased company headcount and the consolidation of a wholly-owned subsidiary's operating data in the current period | | Cash Received from Borrowings | - | Primarily due to the receipt of bank loans in the current period | [Other Significant Events](index=9&type=section&id=二、重要事项进展情况及其影响和解决方案的分析说明) During the reporting period, the company had no significant event progress, share repurchases, overdue unfulfilled commitments, illegal external guarantees, or non-operating funds occupied by controlling shareholders, nor did it issue performance forecasts or engage in investor relations activities - The company had no significant matters requiring disclosure during the reporting period, such as share repurchases, overdue unfulfilled commitments, illegal external guarantees, or occupation of funds by controlling shareholders[14](index=14&type=chunk)[15](index=15&type=chunk) - The company did not provide a forecast for its 2020 operating performance[15](index=15&type=chunk) - During the reporting period, the company did not engage in any investor research, communication, or interview activities[15](index=15&type=chunk) [Financial Statements](index=11&type=section&id=第四节%20财务报表) This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, along with explanations for adjustments and the audit status [Consolidated Balance Sheet](index=11&type=section&id=1、合并资产负债表) As of September 30, 2020, the company's total assets reached **CNY 1.443 billion**, a **9.23%** increase from the beginning of the year, with total liabilities at **CNY 404 million** (up **24.36%**) and total equity attributable to parent company owners at **CNY 1.039 billion** (up **4.29%**), driven by business expansion Major Consolidated Balance Sheet Items | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 1,443,111,267.53 | 1,321,218,368.95 | +9.23% | | **Total Liabilities** | 403,749,364.59 | 324,648,691.53 | +24.36% | | **Total Equity Attributable to Parent Company Owners** | 1,039,361,902.94 | 996,569,677.42 | +4.29% | [Parent Company Balance Sheet](index=14&type=section&id=2、母公司资产负债表) As of September 30, 2020, the parent company's total assets were **CNY 1.340 billion**, a **5.82%** increase from the year's start, with total liabilities at **CNY 312 million** (up **16.56%**) and total owners' equity at **CNY 1.028 billion** (up **2.95%**) Major Parent Company Balance Sheet Items | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | | :--- | :--- | :--- | | **Total Assets** | 1,340,419,342.34 | 1,266,633,400.48 | | **Total Liabilities** | 312,160,003.42 | 267,820,047.21 | | **Total Owners' Equity** | 1,028,259,338.92 | 998,813,353.27 | [Consolidated Income Statement](index=16&type=section&id=3、合并本报告期利润表) The company's profitability significantly improved in both the first three quarters and Q3 2020, with year-to-date operating revenue reaching **CNY 500 million** (up **147.09%**) and net profit attributable to parent company owners surging to **CNY 35.44 million** (up **2,583.81%**), while Q3 alone saw operating revenue of **CNY 182 million** (up **81.28%**) and net profit of **CNY 9.06 million** (up **3,605.72%**) Consolidated Income Statement Key Data | Item | Year-to-Date (CNY) | Year-on-Year Change | Q3 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 500,187,419.27 | 147.09% | 181,898,381.31 | 81.28% | | **Net Profit Attributable to Parent Company Owners** | 35,441,164.03 | 2,583.81% | 9,060,589.04 | 3,605.72% | [Parent Company Income Statement](index=19&type=section&id=4、母公司本报告期利润表) The parent company's year-to-date operating revenue for the first three quarters of 2020 reached **CNY 234 million** (up **31.23%**), with net profit of **CNY 11.47 million** (up **222.82%**), while Q3 operating revenue was **CNY 82.59 million** (up **7.95%**) and net profit was **CNY 1.72 million**, a turnaround from a loss in the prior year Parent Company Income Statement Key Data | Item | Year-to-Date (CNY) | Year-on-Year Change | Q3 (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 234,389,260.90 | 31.23% | 82,594,129.89 | 7.95% | | **Net Profit** | 11,466,979.61 | 222.82% | 1,717,277.11 | - | [Consolidated Cash Flow Statement](index=26&type=section&id=7、合并年初到报告期末现金流量表) In the first three quarters of 2020, net cash flow from operating activities significantly improved to **CNY 26.99 million** from a **CNY 63.44 million** outflow in the prior year, driven by increased sales collection, with net cash outflows from investing activities of **CNY 17.38 million** and net cash inflows from financing activities of **CNY 40.57 million** primarily from new bank borrowings Consolidated Cash Flow Statement Summary (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 26,988,322.13 | -63,437,705.62 | | Net Cash Flow from Investing Activities | -17,382,818.79 | -28,179,042.04 | | Net Cash Flow from Financing Activities | 40,573,586.91 | -15,740,778.92 | | Net Increase in Cash and Cash Equivalents | 45,981,840.10 | -107,545,337.25 | [Parent Company Cash Flow Statement](index=28&type=section&id=8、母公司年初到报告期末现金流量表) The parent company's net cash flow from operating activities for the first three quarters of 2020 turned positive to **CNY 19.52 million**, reversing a **CNY 58.42 million** outflow from the prior year, with net cash outflows from investing activities of **CNY 14.02 million** and net cash inflows from financing activities of **CNY 40.57 million** Parent Company Cash Flow Statement Summary (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 19,522,070.47 | -58,423,954.15 | | Net Cash Flow from Investing Activities | -14,017,487.87 | -27,822,804.69 | | Net Cash Flow from Financing Activities | 40,573,586.91 | -15,051,102.21 | | Net Increase in Cash and Cash Equivalents | 46,070,060.33 | -101,306,295.59 | [Explanation of Financial Statement Adjustments](index=30&type=section&id=二、财务报表调整情况说明) Effective January 1, 2020, the company adopted new revenue and lease accounting standards using the prospective application method, thus requiring no adjustments to the opening balance sheet or retrospective restatement of prior period comparative data - The company first adopted new revenue and lease accounting standards in 2020, applying the prospective method, which eliminates the need to adjust the opening financial statements or retrospectively restate prior period data[44](index=44&type=chunk) [Audit Report](index=30&type=section&id=三、审计报告) This company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[45](index=45&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was ¥318,289,037.96, representing a 211.76% increase compared to ¥102,092,921.33 in the same period last year[19]. - The net profit attributable to shareholders was ¥26,380,574.99, a significant increase of 2,351.61% from ¥1,076,050.49 in the previous year[19]. - The net cash flow from operating activities improved to ¥17,928,628.01, compared to a negative cash flow of ¥22,350,393.40 in the same period last year, marking a 180.22% increase[19]. - The total assets at the end of the reporting period were ¥1,373,076,472.66, reflecting a 3.93% increase from ¥1,321,218,368.95 at the end of the previous year[19]. - The net assets attributable to shareholders increased by 4.17% to ¥1,038,123,996.01 from ¥996,569,677.42 at the end of the previous year[19]. - The basic earnings per share for the reporting period was ¥0.09, compared to ¥0.00 in the same period last year[19]. - The gross profit margin for the reporting period was approximately 49.73%, calculated from the revenue and cost figures provided[47]. - The company reported a comprehensive income total of CNY 22.75 million for the first half of 2020, compared to CNY 1.36 million in the same period of 2019, representing a growth of 1,572.5%[150]. Research and Development - R&D expenses amounted to CNY 89.22 million, representing 28.03% of total revenue[31]. - The company holds 331 authorized patents, including 242 invention patents and 89 utility model patents[31]. - The company successfully developed the PSVI (50A high current module) and OS5000 testing system, expanding testing capabilities significantly[32][34]. - The company launched the first fully automatic ultra-precision probe station with independent intellectual property rights, achieving international first-class precision[34]. - R&D investment rose by 110.10% to ¥89,224,457.52, reflecting increased cash receipts and consolidation of a wholly-owned subsidiary's data[48]. - The company's R&D expenditure for the first half of 2020 reached CNY 89.22 million, accounting for 28.03% of operating revenue[56]. Market and Sales - The company successfully expanded into the Taiwan and Southeast Asian markets, optimizing its customer structure[40]. - Overseas sales amounted to ¥100,158,059.82, accounting for over 30% of total revenue, with normal payment progress[52]. - Revenue from sales of goods and services surged by 180.95% to ¥266,741,826.92, driven by increased cash receipts and consolidation of a wholly-owned subsidiary's data[49]. Financial Position - The company's total assets at the end of the reporting period amounted to CNY 1.36 billion, with cash and cash equivalents at CNY 162.35 million, representing 11.82% of total assets[61]. - Accounts receivable increased to CNY 337.38 million, accounting for 24.57% of total assets, up from 22.78% in the previous year[61]. - Inventory reached CNY 356.82 million, making up 25.99% of total assets, compared to 24.07% in the previous year[61]. - The total liabilities of the company were CNY 334,952,476.65 as of June 30, 2020, compared to CNY 324,648,691.53 at the end of 2019, which is an increase of about 3.99%[141]. - The company's equity attributable to shareholders reached CNY 1,038,123,996.01, up from CNY 996,569,677.42, representing an increase of approximately 4.17%[142]. Risks and Challenges - The company has identified several risks, including technology development risks and high customer concentration risks, which investors should be aware of[5]. - The semiconductor testing equipment market is currently dominated by foreign companies, with local firms facing challenges in scale and technology[45]. - High customer concentration poses a risk; any adverse changes in major customers' financial conditions could negatively impact the company's performance[77]. - The company operates in a technology-intensive industry, facing risks related to continuous innovation and competition in the integrated circuit testing equipment sector[77]. Corporate Governance and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company plans to repurchase and cancel 484,289 restricted stocks at a price of CNY 6.80 per share, reducing registered capital from CNY 314,274,791 to CNY 313,790,502[41]. - The total number of ordinary shareholders at the end of the reporting period is 19,248[120]. - Zhao Yi holds 25.33% of the shares, with a total of 79,606,419 shares, and has 19,901,605 shares under lock-up[120]. Cash Flow and Investment Activities - The company reported a net increase in cash and cash equivalents of ¥10,051,366.79, a 116.10% improvement compared to the previous period[48]. - Investment activities cash flow net amount improved by 50.89% to -¥12,362,853.94, due to reduced payments for construction projects[48]. - The net cash flow from financing activities was 9,065,208.28 CNY, a significant increase from -14,928,743.36 CNY in the previous period, reflecting a turnaround of over 160.7%[162]. Accounting Policies and Financial Reporting - The financial statements are prepared in accordance with the enterprise accounting standards, ensuring a true and complete reflection of the company's financial status and operating results[184]. - The company has implemented specific accounting policies for bad debt provisions, fixed asset depreciation, and revenue recognition based on its operational characteristics[183]. - The company recognizes financial assets when it becomes a party to the financial instrument contract, measuring them initially at fair value[194].