Financial Performance - Revenue for the reporting period reached ¥278,642,031.76, an increase of 35.77% compared to ¥205,236,736.06 in the same period last year[21]. - Net profit attributable to shareholders was ¥39,179,594.40, representing a 78.91% increase from ¥21,899,161.91 year-over-year[21]. - Net profit after deducting non-recurring gains and losses surged by 627.50% to ¥25,895,588.84 from ¥3,559,539.26 in the previous year[21]. - Basic and diluted earnings per share increased by 79.02% to ¥0.1579 from ¥0.0882[21]. - Total profit reached 44.52 million yuan, reflecting a year-on-year growth of 80.33%[33]. - The company reported a total of 10,198,724.59 in other current assets, up from 8,015,391.94, marking an increase of about 27%[157]. - The total comprehensive income for the first half of 2021 was CNY 39.15 million, compared to CNY 21.91 million in the first half of 2020, showing a growth of 78%[167]. Research and Development - The company has established a robust R&D system and holds numerous patents, positioning itself as a leading testing institution in the domestic steel industry[5]. - The company developed over 200 new products, including more than 80 in metallurgy, biochemistry, and environmental protection fields[34]. - The company’s R&D investment increased by 39.62% to CNY 24,817,215.11 from CNY 17,775,399.62, reflecting a focus on enhancing research capabilities and equipment[46]. - The company has a strong technical innovation team, including 30 doctoral and 229 master's degree holders, enhancing its competitive edge[44]. - The company is focused on becoming a technology leader in the metal materials testing industry, providing services across various sectors including steel, aerospace, and nuclear power[29]. Market Competition - The company faces intensified market competition, particularly from international testing firms entering the Chinese market, which may pressure domestic profit margins[5]. - The competitive landscape in the testing industry is intensifying, with international firms entering the market, increasing pressure on domestic companies[71]. - The company plans to enhance its competitive advantages through continuous technological and management innovations[71]. Risk Management - The company has a well-defined strategy to mitigate risks associated with core personnel turnover and the potential loss of key technologies[5]. - The company is committed to enhancing its risk resistance capabilities in response to economic fluctuations and market challenges[5]. - The ongoing COVID-19 pandemic poses risks to the company's export business and domestic customer demand, necessitating close monitoring of economic conditions[5]. - The company is closely monitoring domestic and international economic changes to mitigate risks associated with the ongoing COVID-19 pandemic[73]. Corporate Governance - The company plans to not distribute cash dividends or issue bonus shares for the reporting period[6]. - The company has not reported any changes in its registered address or contact information during the reporting period[17]. - The company continues to adhere to its established information disclosure practices without any changes during the reporting period[18]. - The company has committed to maintaining a transparent and fair trading principle in its related party transactions to minimize conflicts of interest and protect minority shareholders' interests[92]. Environmental Responsibility - The company adheres to environmental protection standards and has not faced any administrative penalties related to environmental issues during the reporting period[83]. - The total environmental protection investment in the first half of 2021 was CNY 977,000, with hazardous waste treatment costs amounting to CNY 661,000, all handled by Beijing Jinyu Hongshulin Environmental Protection Co., Ltd.[84]. - The company signed hazardous waste transfer contracts with qualified units annually to ensure compliance with hazardous waste management regulations[84]. Future Outlook - The company has outlined a positive outlook for the second half of 2021, projecting a revenue growth of 10% to 15%[111]. - The company plans to expand its market presence by entering two new regional markets by the end of 2021, aiming for a 30% increase in market share[113]. - The company plans to continue expanding its market presence and invest in new product development to enhance its competitive edge[192]. Shareholder Engagement - The company will actively cooperate to ensure the implementation of the stock price stabilization plan after it is approved by the shareholders' meeting[99]. - The company will communicate actively with shareholders, especially small and medium-sized shareholders, through various channels to gather opinions and address concerns[105].

Financial Performance - Revenue for Q1 2021 reached ¥103,775,673.87, an increase of 52.05% compared to ¥68,250,546.39 in the same period last year[7] - Net profit attributable to shareholders was ¥6,650,850.08, a significant increase of 291.50% from a loss of ¥3,473,000.99 in the previous year[7] - The net profit after deducting non-recurring gains and losses was ¥705,384.68, improving by 105.35% from a loss of ¥13,185,751.46 in the same period last year[7] - Basic earnings per share rose to ¥0.0268, compared to a loss of ¥0.0140 in the same period last year, marking a 291.43% increase[7] - Operating profit reached 6,444,800 CNY, up 160.12% compared to the same period last year, while total profit increased by 274.36% to 7,502,100 CNY[16] - Net profit attributable to shareholders was 6,650,900 CNY, reflecting a significant growth of 291.50% year-on-year[16] - Total operating revenue for Q1 2021 reached ¥103,775,673.87, a significant increase from ¥68,250,546.39 in the same period last year, representing a growth of approximately 52%[50] - Net profit for Q1 2021 was ¥6,631,363.67, compared to a net loss of ¥3,479,174.28 in Q1 2020, marking a turnaround in profitability[52] - The company reported a total comprehensive income of ¥6,630,100.74 for Q1 2021, recovering from a loss of ¥3,482,287.45 in the previous year[53] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,095,312,327.27, a decrease of 1.08% from ¥1,107,270,732.13 at the end of the previous year[7] - The company's current assets decreased to ¥767,684,420.42 from ¥822,881,033.47, reflecting a reduction of about 6.7%[41] - The total liabilities decreased to ¥300,487,194.14 from ¥319,075,699.74, showing a decline of around 5.8%[43] - The company's equity attributable to shareholders rose to ¥794,850,618.11 from ¥788,200,967.81, marking an increase of about 0.8%[44] - Total liabilities decreased from ¥242,444,560.94 in the previous year to ¥226,857,888.78 in Q1 2021, a reduction of approximately 6.4%[51] Cash Flow - The company reported a net cash flow from operating activities of -¥52,147,415.70, worsening by 177.27% from -¥18,807,516.99 in the same period last year[7] - Cash flow from operating activities increased by 37.04% to 186,106,842.36 CNY, primarily due to fluctuations in procurement and labor costs from the previous year[14] - The company reported a total operating cash outflow of CNY 186,106,842.36, compared to CNY 135,806,543.04 in the same period last year[60] - The cash flow from financing activities was not detailed, indicating potential areas for future improvement[61] Research and Development - Research and development expenses amounted to 10,654,502.41 CNY, a 30.99% increase driven by the acquisition of equipment for a material evaluation platform[14] - The company’s R&D investment for the first quarter was 1,065,450 CNY, which is a 30.99% increase year-on-year, maintaining a competitive edge in technology and market[16] - The rapid growth in R&D expenses may adversely affect the company's operating performance if technological advancements do not yield immediate economic benefits[26] - The company has a significant focus on technological innovation, which is crucial for maintaining its competitive advantage in the market[24] Government Support and Investments - Government subsidies recognized in the current period amounted to ¥5,197,675.37[8] - The company received government subsidies primarily for national research projects, which have positively impacted its operational performance[27] - The company has raised a total of RMB 27,922.5 million in funds, with RMB 1,769.05 million invested in the current quarter[32] - Cumulative investment from raised funds amounts to RMB 9,999.85 million, with no changes in usage reported[32] - The company has invested RMB 5,562.5 million in the Jiangsu Testing Technology Research Institute project, achieving 32.48% of the planned investment[32] - The Chengdu Testing Laboratory project has reached 90.42% of its planned investment with RMB 3,616.9 million utilized[32] Operational Strategy - The company actively pursued its annual business plan, enhancing communication with key customers and improving sales channels despite the challenges posed by the pandemic[18] - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[56] - The company emphasizes the importance of timely adjustments in management practices to cope with rapid business growth and market changes[25] - The company is closely monitoring the global economic environment to mitigate risks associated with potential fluctuations in operating performance due to external factors[28]

Financial Performance - The company's operating revenue for 2020 was ¥585,455,068.74, representing a 7.14% increase from ¥546,424,733.72 in 2019[19]. - The net profit attributable to shareholders for 2020 was ¥77,219,721.82, an increase of 11.69% compared to ¥69,135,770.25 in 2019[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 27.09% to ¥34,146,682.11 from ¥46,835,929.23 in 2019[19]. - The net cash flow from operating activities increased by 63.72% to ¥111,685,719.70 from ¥68,218,637.04 in 2019[19]. - The total assets at the end of 2020 were ¥1,107,270,732.13, an increase of 11.47% from ¥993,351,049.15 at the end of 2019[19]. - The net assets attributable to shareholders at the end of 2020 were ¥788,200,967.81, up 10.01% from ¥716,489,978.77 at the end of 2019[19]. - The company reported a basic earnings per share of ¥0.3111, down 11.59% from ¥0.3519 in 2019[19]. - The company achieved a total operating revenue of ¥585,455,068.74 in 2020, representing a year-on-year increase of 7.14% compared to ¥546,424,733.72 in 2019[63]. - The net profit attributable to shareholders was 77.22 million yuan, reflecting a year-on-year growth of 11.69%[46]. - The gross profit margin for the materials testing services segment was 43.26%, reflecting a slight increase of 0.52% compared to the previous year[65]. Dividend Policy - The company plans to distribute a cash dividend of 0.32 CNY per 10 shares based on a total of 24,820,000 shares, with no bonus shares issued[8]. - The total distributable profit for the year was RMB 235,809,966.74, with cash dividends accounting for 100% of the profit distribution[122]. - The cash dividend for 2019 was RMB 0.28 per 10 shares, amounting to RMB 6,949,600, representing 10.05% of the net profit attributable to shareholders[124]. - The cash dividend for 2020 represents a 10.29% payout ratio relative to the consolidated net profit attributable to shareholders[124]. - The company has maintained a consistent cash dividend policy, with a minimum of 20% of profits distributed as cash dividends during growth phases[122]. - The cash dividends are fully compliant with the relevant regulations and have been transparently communicated to shareholders[121]. Research and Development - The company has established a comprehensive technology innovation system supported by a professional R&D team, mitigating risks associated with the loss of core personnel[6]. - The company initiated 20 new independent R&D projects and undertook 21 national projects during the reporting period[74]. - Research and development expenses amounted to 44,396,354.37 yuan, representing 7.58% of the operating revenue[74]. - The company has invested in research and development of testing equipment, including inductively coupled plasma mass spectrometers and tensile testing machines, to enhance its technological capabilities[186]. - The company has made significant progress in key research projects, including the development of a non-destructive testing instrument for cross-border goods, resulting in multiple patents and published papers[56]. Market Position and Strategy - The company aims to become a technology leader in the metal materials testing industry in China[28]. - The company has a strong position in the domestic steel industry, recognized as an authoritative testing institution with multiple national-level testing centers[36]. - The company is focused on continuous improvement of its testing technology to maintain the independence and fairness of its testing reports[5]. - The company aims to maintain a stable stock price, with measures in place to repurchase shares if the stock price falls below the audited net asset value per share for 20 consecutive trading days[134]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[132]. Risk Management - The company acknowledges the risk of management difficulties due to rapid expansion in production and asset scale following the implementation of investment projects[8]. - The company has a clear strategy for addressing risks related to core technology confidentiality and personnel retention[6]. - The company recognizes the potential impact of adverse events on its brand image and social credibility, which could lead to customer loss and affect operational performance[5]. - The company has established a robust quality control management system to maintain brand reputation and social credibility, which are crucial for sustainable development[108]. Social Responsibility and Environmental Management - The company has established a comprehensive social responsibility management system, ensuring compliance with laws and regulations while providing services to government and society[183]. - In 2020, the company invested 1.565 million in occupational health and safety to improve working conditions and ensure employee safety, with no safety incidents reported[188]. - The company has implemented strict environmental management practices, including the establishment of various environmental protection regulations and emergency response plans[197]. - The company has invested 22.35 million yuan in poverty alleviation projects, focusing on industrial development and employment transfer[193]. - The company has actively participated in social responsibility initiatives, including poverty alleviation and educational support through partnerships with universities[190]. Operational Challenges - The company acknowledges the risk of management difficulties due to rapid expansion in production and asset scale following the implementation of investment projects[8]. - The competitive landscape in the testing industry is intensifying, with international firms entering the market, increasing pressure on domestic companies[109]. - The company is closely monitoring the global economic environment and potential impacts from the COVID-19 pandemic on its operations and client demand[116]. Technological Innovation - The company has developed a unique technical innovation system, resulting in 167 patents, including 79 invention patents[40]. - The company has established several national-level testing centers and innovation platforms to support its operations[28]. - The company has successfully completed the main structure of its Jiangsu Testing Technology Research Institute project by the end of December 2020[94]. - The company has developed new detection and calibration technologies, including non-destructive testing equipment calibration, enhancing its service capabilities[186].

Financial Performance - Operating income for the reporting period was ¥140,742,611.31, a slight decrease of 0.02% year-on-year, while total operating income from the beginning of the year to the reporting period was ¥345,979,347.37, down 8.17% compared to the same period last year[7]. - Net profit attributable to shareholders was ¥20,029,044.25, a decrease of 10.08% year-on-year, and the net profit for the year-to-date was ¥41,928,206.16, down 19.03% compared to the same period last year[7]. - Basic earnings per share were ¥0.0807, down 32.58% year-on-year, while diluted earnings per share were also ¥0.0807, reflecting the same percentage decrease[7]. - The weighted average return on equity was 2.68%, a decrease of 2.36% year-on-year, and 5.69% for the year-to-date, down 6.44% compared to the same period last year[7]. - The total operating revenue for the period was CNY 345,979,347.37, a decrease of 8.14% compared to CNY 376,746,112.55 in the previous period[41]. - The net profit for the period reached CNY 41,908,856.19, a decline of 19.0% from CNY 51,738,385.61 in the previous period[43]. - The basic and diluted earnings per share were both CNY 0.1689, down from CNY 0.2782 in the previous period[44]. - The company reported a profit before tax of CNY 47,912,295.38, compared to CNY 58,822,436.09 in the previous period, reflecting a decrease of 18.6%[43]. Cash Flow - The net cash flow from operating activities was ¥15,973,888.56, a significant increase of 491.43% year-on-year, with a year-to-date total of ¥29,187,613.38, up 1,144.62% compared to the same period last year[7]. - The cash flow from operating activities generated a net amount of ¥29,187,613.38, significantly up from ¥2,345,101.78 in the previous year[51]. - Total cash inflow from operating activities reached ¥363,009,792.79, while cash outflow was ¥329,232,475.76, resulting in a net cash inflow of ¥33,777,317.03[53]. - The company reported a net cash outflow from investing activities of ¥121,156,868.65, which is a substantial increase from the previous period's outflow of ¥19,173,463.63[55]. - The company incurred cash outflows of ¥6,949,598.24 related to financing activities, with no cash inflows reported during the period[55]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,039,233,387.49, an increase of 4.62% compared to the end of the previous year[7]. - Total assets increased to CNY 959,840,312.72 from CNY 925,874,425.18, reflecting a growth of approximately 3.1%[31]. - The total liabilities of the company stand at ¥276,797,201.47, while total equity is reported at ¥716,553,847.68, indicating a strong equity position relative to liabilities[60]. - Total liabilities were CNY 243,965,863.66, with current liabilities at CNY 173,586,151.02 and non-current liabilities at CNY 70,379,712.64[64]. - The total liabilities to equity ratio stands at approximately 0.36, indicating a conservative leverage position[64]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,923, with the largest shareholder, China Steel Research Group, holding 66.26% of the shares[11]. - The company did not engage in any repurchase transactions during the reporting period[12]. - There were no significant changes in restricted shares during the reporting period[13]. Income and Expenses - Financial expenses increased by 260.18% to -603,304.48 due to higher interest income[15]. - Other income rose by 84.80% to 24,044,016.11 primarily from social security reductions[15]. - Non-operating income surged by 211.89% to 9,445,482.20 mainly due to listing subsidies[15]. - The total operating costs amounted to CNY 329,578,172.77, slightly down from CNY 332,412,220.78, indicating a cost management strategy[41]. - The company recorded a financial expense of CNY -603,304.48, compared to CNY -167,498.79 in the previous period, suggesting increased financial costs[43]. Research and Development - Research and development expenses for Q3 2020 were CNY 9,701,102.39, down from CNY 11,129,741.33, a decrease of about 12.8%[34]. - Research and development expenses were CNY 27,476,502.01, down from CNY 30,102,205.13, indicating a potential shift in R&D focus[41]. - Research and development expenses for the quarter were ¥23,493,723.45, a decrease of 8.4% from ¥25,633,773.77 in the previous year[46]. Other Financial Metrics - The company reported non-recurring gains and losses totaling ¥25,322,752.47, primarily from government subsidies and other income[8]. - The company experienced a credit impairment loss of CNY -1,153,142.20, which was higher than CNY -976,552.98 in the previous period, indicating increased credit risk[43]. - The company has made significant investments totaling ¥85,000,000.00 during the current period, which may indicate a focus on growth and expansion[53]. - The implementation of new revenue and leasing standards resulted in adjustments to accounts receivable and contract assets[66].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥205,236,736.06, a decrease of 13.02% compared to ¥235,968,905.44 in the same period last year[19]. - The net profit attributable to shareholders was ¥21,899,161.91, down 25.78% from ¥29,507,178.84 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥3,559,539.26, reflecting a significant decline of 85.20% compared to ¥24,045,547.01 in the previous year[19]. - The basic earnings per share decreased by 44.35% to ¥0.0882 from ¥0.1585 in the same period last year[19]. - The weighted average return on net assets was 3.01%, down from 7.10% in the previous year, indicating a decline in profitability[19]. - The total profit was ¥24,688,628.86, down 25.76% year-on-year, while the net profit attributable to shareholders was ¥21,899,161.91, a decline of 25.78%[42]. - Basic earnings per share were ¥0.0882, with total assets at ¥1,032,999,298.65, an increase of 3.99% year-on-year[42]. - The company reported a total profit of CNY 24.69 million, down 25.8% from CNY 33.26 million in the same period last year[170]. - The company's operating profit was CNY 16.35 million, down 49.3% from CNY 32.27 million in the previous year[170]. - The comprehensive income for the first half of 2020 was 21.91 million yuan, a decrease of 4.09 million yuan compared to the previous period, indicating a decline of about 15.7%[184]. Cash Flow and Investments - The net cash flow from operating activities increased dramatically to ¥13,213,724.82, a rise of 3,813.74% from -¥355,806.32 in the same period last year[19]. - Cash flow from operating activities was ¥13,213,724.82, a significant increase of 3,813.74% year-on-year, mainly due to received research progress payments[46]. - The total cash outflow from investing activities in the first half of 2020 was CNY 20,857,265.49, up from CNY 18,192,308.74 in the same period of 2019, indicating an increase of approximately 14.66%[178]. - The net cash flow from investing activities was CNY -20,857,265.49 in the first half of 2020, compared to CNY -16,937,501.74 in the first half of 2019, reflecting a deeper cash outflow[178]. - The company received tax refunds amounting to CNY 7,732,275.74 in the first half of 2020, compared to CNY 1,552,469.82 in the same period of 2019, marking a significant increase[180]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,032,999,298.65, representing a 3.99% increase from ¥993,351,049.15 at the end of the previous year[19]. - Total liabilities reached CNY 294,536,880.52, compared to CNY 276,797,201.47, marking an increase of around 6.0%[162]. - Owner's equity totaled CNY 738,462,418.13, up from CNY 716,553,847.68, representing a growth of about 3.0%[163]. - The total amount of other comprehensive income transferred to retained earnings was 430.58 million yuan, indicating effective management of comprehensive income[187]. Market and Competition - The company faces risks from intensified market competition and potential economic fluctuations due to the ongoing global pandemic[5]. - The competitive landscape in the testing industry is intensifying, with international firms entering the market, increasing pressure on domestic companies[72]. - The company is committed to continuous technological and management innovation to strengthen its market position amid rising competition[73]. Research and Development - Research and development investment was ¥17,775,399.62, a decrease of 6.31% compared to the previous year[46]. - The company has developed over 700 types of national and industry-level standard materials/samples, widely used in various fields[29]. - The company is committed to research and development in testing technology, which is crucial for maintaining its competitive edge in the market[196]. Corporate Governance and Shareholder Relations - The company plans to implement a cash dividend policy, distributing at least 10% of the annual distributable profit to shareholders[104]. - The company has committed to maintaining a transparent decision-making process for related party transactions[85]. - The company will ensure that any unavoidable related party transactions do not harm the legal rights of the issuer and other shareholders[86]. Social Responsibility and Environmental Impact - The company invested 244,800 CNY in targeted poverty alleviation efforts, focusing on local industry development and education[133]. - The company plans to continue its social responsibility initiatives to support local economic development and poverty alleviation[134]. - The company maintained a 100% legal disposal rate for hazardous waste and achieved compliance in wastewater, waste gas, and noise emissions[126]. - No environmental incidents occurred during the reporting period, and there were no fines related to environmental issues[129]. Subsidiary Performance - The company reported a total revenue of 675.16 million with a net profit of 216.52 million, reflecting a significant performance in its subsidiary operations[69]. - The subsidiary Beijing Steel Research Institute achieved a total revenue of 1,658.9 million and a net profit of 121.68 million, indicating strong growth in corrosion detection services[69]. - The company faced a net loss of 206.08 million in its Jiangsu subsidiary, which is still in the construction phase and has not generated revenue[70]. Future Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[184]. - The company aims to increase its capital reserves through retained earnings and other equity instruments to support future investments[184].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥205,236,736.06, a decrease of 13.02% compared to ¥235,968,905.44 in the same period last year[18]. - The net profit attributable to shareholders was ¥21,899,161.91, down 25.78% from ¥29,507,178.84 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was ¥3,559,539.26, reflecting a significant decline of 85.20% compared to ¥24,045,547.01 in the previous year[18]. - The basic earnings per share decreased by 44.35% to ¥0.0882 from ¥0.1585 in the same period last year[18]. - Total profit amounted to ¥24,688,628.86, down 25.76% year-on-year, while net profit attributable to shareholders was ¥21,899,161.91, a decline of 25.78%[41]. - The company reported a net profit for the first half of 2020 of CNY 21,894,359.34, a decline of 25.6% from CNY 29,467,651.56 in the first half of 2019[163]. - The total comprehensive income for the first half of 2020 was reported at -17.56 million yuan, indicating a decrease compared to the previous period[179]. Cash Flow and Assets - The net cash flow from operating activities increased dramatically to ¥13,213,724.82, a rise of 3,813.74% from a negative cash flow of ¥355,806.32 in the same period last year[18]. - The company's cash and cash equivalents increased by ¥411,383,585.60, representing 39.82% of total assets, up from 19.02% in the previous year[47]. - The company's total assets at the end of the reporting period were ¥1,032,999,298.65, an increase from ¥993,351,049.15 at the end of 2019[156]. - The company's total liabilities as of June 30, 2020, were CNY 294,536,880.52, compared to CNY 276,797,201.47 at the end of 2019, reflecting an increase of approximately 7.3%[156]. - The total cash outflow from operating activities was CNY 251,620,937.63, compared to CNY 266,407,908.08 in the first half of 2019, showing a decrease of 5.5%[170]. Investments and R&D - Research and development investment was ¥17,775,399.62, a decrease of 6.31% compared to the previous year[45]. - The company plans to continue its focus on R&D for new technologies and products to enhance market competitiveness[179]. - The company invested ¥85,000,000.00 in long-term assets during the period, reflecting a strategic focus on growth and expansion[174]. Market Position and Strategy - The company aims to be a technology leader in the metal materials testing industry, providing services across various sectors including steel, aerospace, and nuclear power[26]. - The company is focused on expanding its third-party testing services to meet the growing demands of major national projects[27]. - The company has a strong market position as a comprehensive testing research institution in the domestic metal materials testing field, with a complete range of services[38]. - The company has a diverse application across multiple industries, including steel, metallurgy, aerospace, and new materials, which helps mitigate the impact of economic cycles[33]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[6]. - The controlling shareholder has committed to avoiding any competition with the company and ensuring transparency in related transactions[77]. - The company has established strict measures to prevent the misuse of funds by its controlling shareholder and related parties[81]. - The company will ensure compliance with regulations regarding the reduction of shares by major shareholders[76]. Risks and Challenges - The company faces risks from intensified market competition and potential economic fluctuations due to the ongoing global pandemic[5]. - The company is closely monitoring the global economic environment to mitigate risks from potential economic fluctuations due to the pandemic[67]. - The company faces intensified market competition due to the entry of international testing firms into the Chinese market[66]. Environmental and Social Responsibility - The company maintained a 100% compliance rate for hazardous waste disposal and environmental protection facilities[121]. - The company has actively engaged in targeted poverty alleviation, investing CNY 244,800 in industry development projects[127]. - The company has established comprehensive emergency response plans for environmental incidents[123]. Corporate Structure and Compliance - The company operates in the professional technical service industry, focusing on technology development, consulting, and testing services[190]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations for the next 12 months[193]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status[195].

Financial Performance - Total revenue for Q1 2020 was ¥68,250,546.39, a decrease of 38.27% compared to ¥110,561,711.19 in the same period last year[8] - Net profit attributable to shareholders was -¥3,473,000.99, representing a decline of 124.85% from ¥13,976,131.73 in the previous year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses was -¥13,185,751.46, a decrease of 212.00% compared to ¥11,773,354.12 in the same period last year[8] - The company reported total operating revenue of 68.25 million, a decrease of 38.27% compared to the same period last year, primarily due to the impact of the COVID-19 pandemic[16] - The net profit attributable to the parent company was -3.48 million, representing a decrease of 124.91% year-on-year, also due to the pandemic's effects[16] - Operating profit for the current period is -¥10,719,574.85, compared to an operating profit of ¥14,936,746.33 in the previous period[43] - Net profit for the current period is -¥3,479,174.28, a significant decline from a net profit of ¥13,964,289.13 in the previous period[44] Cash Flow and Liquidity - The net cash flow from operating activities improved by 32.54%, amounting to -¥18,807,516.99, compared to -¥27,877,618.72 in the previous year[8] - Cash received from tax refunds increased significantly to 7.19 million, a 2562.79% increase, mainly due to immediate tax refunds and the settlement of corporate income tax for 2018[16] - The company's cash and cash equivalents at the beginning of the period were 415.26 million, up 182.80% from the previous year, primarily due to increased funds in the fundraising account[16] - The cash inflow from operating activities totaled 116,999,026.05 CNY, while cash outflow was 135,806,543.04 CNY, resulting in a net cash outflow of 18,807,516.99 CNY[50] - Total cash and cash equivalents at the end of the period were 388,948,552.76 CNY, down from 415,263,892.94 CNY at the beginning of the period, reflecting a decrease of about 6.3%[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥988,709,097.89, a decrease of 0.47% from ¥993,351,049.15 at the end of the previous year[8] - Current assets totaled ¥796,379,763.94, down from ¥805,692,813.32, indicating a decrease of approximately 1.4%[34] - Total liabilities decreased slightly to ¥275,637,537.66 from ¥276,797,201.47, a reduction of approximately 0.4%[36] - The company's equity attributable to shareholders was ¥713,014,020.28, down from ¥716,489,978.77, indicating a decrease of about 0.7%[37] - The total non-current assets increased to ¥192,329,333.95 from ¥187,658,235.83, representing an increase of approximately 2.0%[35] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,344[11] - The largest shareholder, China Steel Research Technology Group, holds 66.26% of the shares[11] Government Support - The company received government subsidies amounting to ¥11,498,339.05 during the reporting period[9] - The company received government subsidies amounting to 6.52 million, an increase of 857.74% year-on-year, which contributed positively to other income[16] Research and Development - Research and development expenses amounted to 8.13 million, an increase of 2.64% year-on-year, indicating continued investment in technology and innovation[17] - The company emphasizes the importance of maintaining technological innovation to sustain its competitive advantage in the market[21] - The company has established a robust research and development system, but risks remain regarding the potential loss of key personnel and core technology[20] Market Conditions and Risks - The company is facing intensified market competition, particularly from international firms entering the domestic market, which may impact future performance[20] - The COVID-19 pandemic has caused uncertainty in the company's future performance, with expectations of a decline compared to the previous year but a significant improvement from the first quarter[28] - The company is closely monitoring the economic environment to mitigate risks from potential economic fluctuations due to the pandemic[22] Compliance and Governance - The company has established a comprehensive governance structure and effective regulations to manage the risks associated with business expansion[22] - The company has not encountered any violations regarding external guarantees during the reporting period[29] - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[30] Investment Activities - The company raised a total of RMB 24,625.86 million in funds, with RMB 1,506.74 million already invested in projects as of the reporting period[26] - The company invested RMB 1,356.62 million in the current quarter, reflecting ongoing project development despite pandemic-related delays[26] - The company experienced a 7.75% investment progress in the Jiangsu Testing Technology Research Institute project, with RMB 1,327.3 million invested[26]

Financial Performance - The company's operating revenue for 2019 was ¥546,424,733.72, representing an increase of 8.08% compared to ¥505,581,343.47 in 2018[21]. - The net profit attributable to shareholders for 2019 was ¥69,135,770.25, up 7.64% from ¥64,227,499.81 in 2018[21]. - The net profit after deducting non-recurring gains and losses was ¥46,835,929.23, a decrease of 3.62% from ¥48,594,706.96 in 2018[21]. - The total assets at the end of 2019 reached ¥993,351,049.15, an increase of 46.91% from ¥676,176,245.09 at the end of 2018[21]. - The net assets attributable to shareholders increased by 78.63% to ¥716,489,978.77 from ¥401,098,924.77 in 2018[21]. - The company reported a basic earnings per share of ¥0.3519, a 2.00% increase from ¥0.3450 in 2018[21]. - The company’s cash flow from operating activities for 2019 was ¥68,218,637.04, an increase of 3.79% from ¥65,725,838.31 in 2018[21]. - The company achieved operating revenue of 546.42 million yuan, an increase of 8.08% compared to the previous year[43]. - Net profit attributable to shareholders reached 69.14 million yuan, reflecting a growth of 7.64% year-on-year[43]. - Total assets increased by 46.91% to 993.35 million yuan, primarily due to the funds raised from the initial public offering[43]. Dividend Policy - The company plans to distribute a cash dividend of 0.28 RMB per 10 shares to all shareholders, based on a total of 248,200,000 shares[9]. - The company reported a cash dividend of 0.28 yuan per 10 shares, totaling 6,949,600 yuan for the year 2019, which represents 100% of the distributable profit[96]. - The company’s net profit available for distribution to ordinary shareholders was 69,135,770.25 yuan in 2019, with a cash dividend payout ratio of 10.05%[100]. Research and Development - The company has established a comprehensive technology innovation system with a professional and experienced R&D team, which is essential for product development and process improvement[8]. - The company has undertaken significant testing tasks for major national projects, including the Beijing Olympics and nuclear power industries[29]. - The company launched 28 new independent R&D projects and undertook 22 national projects during the reporting period, maintaining its technological and market advantages[58]. - The R&D investment for new products and technologies increased by 25% compared to the previous year, focusing on advanced detection technologies[186]. - The company is committed to increasing R&D investment and expanding laboratory space to enhance its technological capabilities and maintain its leadership in the metal materials testing industry[84]. Market Position and Strategy - The company aims to be a technology leader in the metal materials testing industry in China, with several national-level testing centers and innovation platforms[29]. - The company operates in various sectors including steel, metallurgy, aerospace, and automotive, providing third-party testing services and analysis instruments[29]. - The company plans to expand its third-party testing laboratory network across China, focusing on regions such as East China, Southwest, and South China, with new laboratories in Chengdu and Kunshan to enhance market share and service capabilities[85]. - The company intends to pursue mergers and acquisitions of high-quality domestic and international enterprises related to its main business to optimize its service layout and expand its business chain[87]. - The company aims to enhance its competitiveness in the mid-to-high-end testing market, which is currently dominated by foreign firms such as SGS and Agilent[82]. Risk Management - The company acknowledges risks related to the loss of core personnel and the potential leakage of core technologies, which could adversely affect R&D and operational performance[8]. - The company has a risk of management difficulties due to rapid expansion in production and asset scale following the implementation of fundraising projects[9]. - The company faces risks related to brand reputation, market competition, and potential loss of core personnel, which could impact its operational performance[89]. - The company has established a comprehensive governance structure and effective regulations to manage the risks associated with business expansion[92]. Corporate Governance - The company has a commitment to ensuring the accuracy and integrity of its financial reports, as stated by its management team[4]. - The company has established a commitment to not use related party transactions to harm the interests of the company and its shareholders[106]. - The company has confirmed that it will disclose any related party transactions in a timely manner as per regulatory requirements[106]. - The company has a governance structure that complies with legal regulations, with a board of directors consisting of 7 members, including 3 independent directors[196]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, and finances[200]. Social Responsibility - The company has established a comprehensive social responsibility management system and operates in compliance with laws and regulations[138]. - The company plays a significant role in supporting the development of new materials and enhancing environmental safety[139]. - The company donated 100,000 yuan and purchased local agricultural products as part of its poverty alleviation efforts, contributing to the local economy[147]. - The company has a clear strategy for poverty alleviation, focusing on long-term income improvement and industry development in targeted areas[146]. Employee Management - The company has established a comprehensive employee compensation and training system, enhancing employee morale and retention[142]. - Training programs are organized to enhance employees' skills and safety awareness, including both internal and external training sessions[193]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 4.31 million[189]. - The total number of employees in the company is 723, with 610 in the parent company and 113 in major subsidiaries[190]. Environmental Management - The company has established a hazardous waste management system in compliance with national regulations, with a total hazardous waste disposal cost of 179,400 RMB in 2019[152]. - The company has implemented strict environmental management practices, ensuring compliance with national and local environmental standards[151].