Financial Performance - The company's operating revenue for 2022 was ¥815,419,867.85, representing a 16.22% increase compared to ¥701,636,126.18 in 2021[24]. - The net profit attributable to shareholders for 2022 was ¥113,842,380.06, a 35.22% increase from ¥84,192,019.48 in 2021[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥80,647,992.72, up 31.57% from ¥61,297,954.06 in 2021[24]. - The total assets at the end of 2022 reached ¥1,667,923,982.82, a 21.31% increase from ¥1,374,892,524.74 at the end of 2021[24]. - The basic earnings per share for 2022 was ¥0.4587, reflecting a 35.23% increase from ¥0.3392 in 2021[24]. - The company generated a net cash flow from operating activities of ¥120,852,177.40, which is a 20.05% increase compared to ¥100,669,130.41 in 2021[24]. - The company reported a total of 33,194,387.34 in non-recurring gains for 2022, compared to 22,894,065.42 in 2021[30]. - In 2022, the company achieved operating revenue of 815.42 million yuan, a year-on-year increase of 16.22%[60]. - The net profit attributable to shareholders reached 113.84 million yuan, reflecting a growth of 35.22% compared to the previous year[60]. - The total operating revenue for 2022 reached ¥815,419,867.85, representing a year-on-year increase of 16.22% compared to ¥701,636,126.18 in 2021[70]. Dividend and Share Capital - The company reported a cash dividend of 1.34 RMB per 10 shares (including tax) and a capital reserve increase of 5 shares for every 10 shares held[6]. - The total share capital of the company is 255,010,000 shares[6]. - The company plans to distribute a cash dividend of RMB 1.34 per 10 shares, totaling RMB 34,171,340 for the year 2022[174]. - The company will increase its capital stock by 5 shares for every 10 shares held, using capital reserves for the distribution[174]. - The cash dividend distribution represents 100% of the total profit distribution amount[175]. - The company had a total of 255,010,000 shares as of the end of 2022, which serves as the basis for the dividend distribution[174]. Risk Management and Governance - The company emphasizes the importance of risk management in its future development outlook, highlighting potential operational risks[6]. - The financial report is guaranteed to be true, accurate, and complete by the company's management team, including the CEO and accounting head[6]. - The company maintains independence from its controlling shareholder in business, personnel, assets, and finance[126]. - There were no guarantees provided for the controlling shareholder, nor any non-operating fund occupation[128]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate information for investors[128]. - The governance practices align with legal and regulatory requirements without significant discrepancies[129]. - The company revised internal control regulations and improved its governance structure during the reporting period[122]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal requirements[124]. - The company has established specialized committees under the board, including a strategy committee and an audit committee[124]. Research and Development - The company has 103 ongoing research projects, including 54 national projects and 49 self-initiated projects, and completed the revision of 41 standards[56]. - The company received 14 patent authorizations and 5 software copyrights in 2022, reflecting its commitment to research and innovation[66]. - Research and development expenses increased by 70.86% to ¥101,337,128.39, primarily due to the establishment of the Nake Microbeam company[80]. - The number of R&D personnel rose by 33.96% to 142, with a significant increase in the number of master's and doctoral degree holders[81]. - The company is enhancing its technological innovation capabilities and implementing a long-term equity incentive plan to encourage innovation among scientific talents[109]. Market Expansion and Product Development - The company is focusing on expanding its market presence and enhancing its product offerings in the detection analysis instrument sector, which is crucial for high-end manufacturing[38]. - The company aims to reduce reliance on foreign products by promoting domestic testing and analysis instruments, which are gaining market acceptance[38]. - The analysis instrument segment saw significant sales growth, with products like ICP spectrometers and gas analyzers reaching historical sales highs[61]. - The company plans to launch three new products in 2023, focusing on advanced testing technologies to enhance market competitiveness[151]. - Steel Research Nack aims to increase its market share by 10% in the next fiscal year through strategic partnerships and market expansion initiatives[151]. Internal Control and Compliance - The internal control system was updated and improved, completing the revision of 67 internal control regulations to ensure compliance and effectiveness in decision-making processes[196]. - The internal control self-evaluation report indicates that 96.21% of the total assets and 99.96% of the total revenue of the evaluated units are included in the company's consolidated financial statements[198]. - The internal control audit confirmed that the company’s decision-making processes are effective and compliant with regulations[200]. - The company’s internal control system is designed to prevent and detect fraud effectively[200]. - The internal control audit report received a standard unqualified opinion, indicating no major issues were found[200]. Employee Management and Remuneration - The total number of employees at the end of the reporting period was 1,199, with 828 being technical personnel[168]. - The company has 39 employees with doctoral degrees and 271 with master's degrees, indicating a strong educational background among its workforce[169]. - Total remuneration for directors, supervisors, and senior management during the reporting period amounted to 4.84 million CNY[157]. - The company’s remuneration policy is based on profitability and performance assessment[156]. - The performance evaluation targets for the first release period require a compound annual growth rate (CAGR) of net profit of no less than 15.00% for 2022, based on 2020 performance, and a weighted average return on equity (ROE) of no less than 11.00%[185]. Strategic Focus and Future Outlook - The company is actively expanding its calibration business, enhancing its capabilities in metallurgy, petrochemicals, and rail transportation sectors[62]. - The company is experiencing stable growth in business and asset scale, necessitating timely adjustments in management to adapt to market changes[115]. - The strategic focus for the next year includes increasing resource investment in market development and brand building[108]. - The management provided guidance for 2023, projecting a revenue target of 600 million RMB, which would represent a growth of 20%[151]. - The company is committed to sustainability, with plans to implement eco-friendly practices in its operations by 2024[151].

Financial Performance - The company's revenue for Q1 2023 was CNY 176,961,219.88, representing a 21.67% increase compared to CNY 145,444,649.48 in the same period last year[5] - Net profit attributable to shareholders decreased by 33.81% to CNY 9,847,337.32 from CNY 14,877,977.08 year-on-year[5] - Basic earnings per share fell by 33.72% to CNY 0.0397 from CNY 0.0599 in the same period last year[5] - Net profit for Q1 2023 was CNY 3,533,619.41, a significant decrease of 76.3% compared to CNY 14,877,977.08 in Q1 2022[18] - The company reported a decrease in comprehensive income to CNY 3,524,388.84 from CNY 14,868,981.83 in Q1 2022[19] Cash Flow - The net cash flow from operating activities was negative at CNY -80,585,200.94, a decline of 33.04% compared to CNY -60,570,937.90 in the previous year[5] - Cash flow from operating activities showed a net outflow of CNY 80,585,200.94, worsening from a net outflow of CNY 60,570,937.90 in Q1 2022[21] - The net cash flow from investment activities was -37,544,453.78 CNY, compared to -40,125,411.84 CNY in the previous period[22] - The net cash flow from financing activities was -645,425.58 CNY[22] - The company experienced a net decrease in cash and cash equivalents of -118,768,000.22 CNY during the quarter[22] Assets and Liabilities - Total assets decreased by 3.80% to CNY 1,604,541,612.25 from CNY 1,667,923,982.82 at the end of the previous year[5] - Current assets decreased to CNY 868,569,016.74 from CNY 948,505,066.14 at the beginning of the year, reflecting a decline of approximately 8.4%[13] - Cash and cash equivalents decreased to CNY 263,403,231.57 from CNY 383,021,120.32, representing a decline of about 31.3%[13] - Total current liabilities decreased to CNY 428,167,023.95 from CNY 486,768,542.88, a reduction of approximately 12%[14] - The company's total liabilities decreased to CNY 515,284,698.23 from CNY 559,026,732.53, a decrease of approximately 7.8%[14] Expenses - Total operating costs rose to CNY 182,117,924.39, up 37.6% from CNY 132,373,116.53 year-on-year[16] - Research and development expenses increased by 59.09% to CNY 20,921,295.95, attributed to the establishment of a new company focused on micro-beam research[7] - Management expenses surged by 90.55% to CNY 32,270,934.94, primarily due to increased employee compensation and share-based payment expenses[7] - Sales expenses rose to CNY 26,100,880.60, an increase of 26.5% compared to CNY 20,586,543.24 in the same period last year[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,906[9] - The total equity attributable to shareholders increased to CNY 956,786,970.54, up from CNY 943,951,155.79 in the previous year[18] Other Information - The company received government subsidies amounting to CNY 5,337,869.12 during the reporting period[6] - The company has not disclosed any new product developments or market expansion strategies in the current report[12] - The report for the first quarter was not audited[23]

Group 1: Company Overview - Steel Research Nack is a professional enterprise engaged in the research, development, and application of metal material testing technology [1] - The company provides third-party testing services, testing analysis instruments, standard materials, corrosion protection engineering, and other extended testing services [1] - Its services and products are primarily applied in industries such as steel, metallurgy, aerospace, high-speed rail, nuclear power, automotive, new materials, environment, food, and petrochemicals [1] Group 2: Management and Performance - Since being selected as a "Demonstration Action" enterprise by the State-owned Assets Supervision and Administration Commission in 2020, the company has implemented various management reforms [2] - The company has introduced a performance assessment system and a stock incentive plan to enhance employee motivation and improve governance [2] - In 2023, the company aims to achieve performance assessment targets while expanding market reach, brand promotion, technology development, governance improvement, and risk management [2] Group 3: Project Updates - The newly established Steel Research Nack (Shenyang) Testing Technology Co., Ltd. aims to provide comprehensive technical services for key industries such as aerospace [2] - The Shenyang project is currently in the renovation design and qualification application phase, with plans to start operations within the year [2] Group 4: Capacity and Market Development - The company's testing capacity varies by region, with high utilization rates in areas like Chengdu, while the Jiangsu Nack project is expected to begin operations soon [2] - Future capacity releases will depend on project construction, facility support, and personnel recruitment [2] - The company plans to actively expand its industrial layout in response to business development needs [2] Group 5: Future Business Growth - The growth of the company's testing business is expected to be driven by rapid developments in aerospace, rail transportation, and energy sectors [3] - The company has a competitive edge in developing new material testing methods, particularly in high-temperature alloy testing [3] Group 6: Instrument Business Development - The company aims to maintain its market position in existing products like spark spectrometers and gas analyzers while promoting high-end instruments [3] - Future efforts will focus on deepening customer needs, seizing domestic replacement opportunities, and enhancing overall instrument business efficiency [3]

Company Overview - Steel Research Nack is a professional enterprise engaged in the research, development, and application of metal material testing technology [1] - The company provides third-party testing services, testing analysis instruments, standard materials, corrosion protection engineering, and other extended testing services [1] - Its services and products are primarily applied in industries such as steel, metallurgy, aerospace, automotive, and food [1] Business Development - The establishment of Nack Microbeam (Beijing) aims to independently develop scanning electron microscopes and enhance domestic brand competitiveness [2] - The newly established Steel Research Nack (Shenyang) focuses on providing comprehensive technical services for key industries like aerospace, promoting an innovative service model [2] - The company is a qualified supplier for the domestic large aircraft project, which is expected to drive business growth as production scales up [2] Project Progress - The Kunshan project faced delays due to pandemic control but is expected to commence operations in Q1 2023 [3] - The company is the only listed entity in China with both testing services and analytical testing instruments, anticipating an increase in revenue share from testing services as new facilities come online [3] Financial Performance - In 2022, the company maintained stable operations despite pandemic impacts, implementing measures to ensure production continuity [4] - The company's performance assessment for stock incentive plans considers both its annual performance and comparative metrics against selected peer companies [4]

Financial Performance - The company's revenue for Q3 2022 was ¥193,266,252.66, a decrease of 3.97% compared to the same period last year[5] - Net profit attributable to shareholders for Q3 2022 was ¥27,340,104.39, down 11.85% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥10,605,745.87, a significant decrease of 61.62% compared to the previous year[5] - Total operating revenue for Q3 2022 reached ¥523,180,404.04, an increase of 9.1% compared to ¥479,901,912.03 in Q3 2021[21] - Net profit for Q3 2022 was ¥72,436,777.08, representing a growth of 3.2% from ¥70,189,334.68 in Q3 2021[22] - Earnings per share (EPS) for Q3 2022 was ¥0.2992, compared to ¥0.2828 in Q3 2021, reflecting a 5.1% increase[22] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,478,804,239.48, reflecting a 7.56% increase from the end of the previous year[5] - The total liabilities increased to ¥559,751,462.75, up from ¥526,676,675.37 year-over-year[21] - The total equity attributable to shareholders of the parent company rose to ¥900,872,777.17, compared to ¥848,215,849.37 in the previous year[21] - Current assets totaled RMB 875,601,934.83, up from RMB 832,700,410.56, indicating an increase of about 5.5%[18] - Non-current assets totaled RMB 603,202,304.65, up from RMB 542,192,114.18, showing an increase of about 11.3%[18] Cash Flow - The company's cash flow from operating activities showed a net increase of ¥9,851,094.27, representing a substantial growth of 173.04%[5] - Operating cash flow for the period was ¥9,851,094.27, a significant improvement from a negative cash flow of ¥13,487,735.59 in the same period last year, indicating a recovery in operational efficiency[23] - Total cash inflow from operating activities reached ¥564,733,943.11, compared to ¥515,473,000.16 in the previous year, reflecting a year-over-year increase of approximately 9.5%[23] - Cash outflow from operating activities was ¥554,882,848.84, slightly higher than ¥528,960,735.75 in the previous year, resulting in a net cash flow from operations of ¥9,851,094.27[23] - Financing activities generated a net cash inflow of ¥37,718,117.85, a recovery from a net outflow of ¥7,942,390.38 in the previous year, showing improved capital raising efforts[24] Investments and Expenses - Research and development expenses for Q3 2022 were ¥44,209,134.70, an increase of 14.3% from ¥38,759,372.47 in Q3 2021[21] - Investment activities resulted in a net cash outflow of ¥112,182,005.87, compared to a net outflow of ¥90,433,731.98 in the same period last year, indicating increased investment in assets[24] - The company's cash flow from investment activities was significantly impacted by increased capital expenditures, with cash paid for fixed assets reaching ¥112,357,514.87, compared to ¥90,446,571.98 in the previous year[24] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 14,832[12] - The company has a total of 178,643,017 shares under lock-up agreements, with various unlock schedules for incentive recipients[16] - The company plans to unlock shares for incentive recipients in a phased manner over 24, 36, and 48 months[16] - The company’s major shareholders include China Inspection and Certification Group with 3,470,767 shares, and Beijing Jinjiyie Industrial Group with the same number of shares[13] Other Financial Metrics - The weighted average return on equity was 3.27%, a slight decrease of 0.41% compared to the previous year[5] - Accounts receivable increased by 45.51% to ¥207,540,477.85, attributed to revenue growth[10] - Non-recurring gains totaled ¥16,734,358.52 for the current period, down from ¥26,200,200.57 in the previous year[7] - Deferred income tax liabilities increased to ¥40,549,669.73 from ¥32,668,640.21 year-over-year, indicating a rise of 24%[21] - Cash and cash equivalents decreased to RMB 318,228,677.20 from RMB 383,328,064.26, a decline of approximately 17.0%[18]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥329,914,151.38, representing an increase of 18.40% compared to ¥278,642,031.76 in the same period last year[19]. - The net profit attributable to shareholders was ¥46,916,673.13, up 19.75% from ¥39,179,594.40 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥37,450,831.08, a significant increase of 44.62% from ¥25,895,588.84 in the prior year[19]. - The basic earnings per share increased to ¥0.1890, reflecting a growth of 19.70% compared to ¥0.1579 in the same period last year[19]. - The total profit reached 53.40 million yuan, reflecting a growth of 19.94% year-over-year[37]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2022, representing a year-on-year growth of 15%[116]. - The total comprehensive income for the first half of 2022 was CNY 74,199,898.46, compared to CNY 39,626,456.09 in the same period of 2021[186]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,416,766,038.72, which is a 3.05% increase from ¥1,374,892,524.74 at the end of the previous year[19]. - The net assets attributable to shareholders rose to ¥870,409,460.24, marking a 2.62% increase from ¥848,215,849.37 at the end of the last year[19]. - The total liabilities amounted to CNY 546,356,578.48, up from CNY 526,676,675.37, reflecting an increase of about 3.0%[175]. - The company's total equity at the end of the reporting period was 800,600,000 yuan, with a notable increase in retained earnings[200]. Cash Flow - The net cash flow from operating activities was negative at -¥35,521,253.32, a decline of 192.03% compared to -¥12,163,464.52 in the same period last year[19]. - The company reported a decrease in financial expenses, which were CNY 2,815,617.53 in the first half of 2022, compared to CNY 264,836.34 in the same period of 2021[181]. - The cash flow from operating activities showed a net outflow of CNY -35,521,253.32, worsening from CNY -12,163,464.52 in the first half of 2021[187]. - Financing activities generated a net cash inflow of CNY 31,758,903.19, a significant improvement from a net outflow of CNY -7,950,342.40 in the previous year[189]. Research and Development - Research and development expenses rose by 8.64% to ¥26,961,775.22 from ¥24,817,215.11, indicating a continued focus on innovation[43]. - The company plans to increase its R&D investment by 10% in the next fiscal year to enhance product innovation and technology development[197]. - The company is focusing on research and development of new products to enhance its competitive edge in the market[198]. Market Expansion and Strategy - The company plans to enhance its service offerings, including mechanical performance testing and material organization structure analysis, in the future[68]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 20% increase in revenue from this region by the end of 2023[197]. - The company plans to expand its market presence by entering two new provinces, aiming for a 25% increase in market share in those regions[120]. - A strategic acquisition of a smaller competitor is in progress, which is projected to enhance the company's service offerings and increase overall revenue by 5%[119]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - A total of 6,810,000 shares are held by 103 employees under the employee stock ownership plan, representing 2.67% of the company's total equity[92]. - The company received approval from the State-owned Assets Supervision and Administration Commission for the implementation of the restricted stock incentive plan[87]. - The company has established a commitment to avoid conflicts of interest and ensure fair treatment of all shareholders[108]. Risks and Challenges - The company faces risks related to brand reputation and social credibility, which are crucial for its long-term sustainable development[70]. - The competitive landscape in the testing industry is intensifying, with international firms entering the market, increasing pressure on domestic companies[71]. - The company has outlined potential risks and corresponding measures in its management discussion section, which investors should pay attention to[4]. Social Responsibility and Compliance - The company has established a comprehensive environmental management system, ensuring compliance with national and local environmental standards, and has implemented emergency response plans for environmental incidents[95]. - The company actively participates in social responsibility initiatives, including poverty alleviation efforts and collaboration with local governments to enhance community development[100]. - The company has a robust internal control system to uphold its social responsibility, ensuring compliance with legal and regulatory requirements[97].

Financial Performance - The company's revenue for Q1 2022 was CNY 145,444,649.48, representing a 40.15% increase compared to CNY 103,775,673.87 in the same period last year[3] - Net profit attributable to shareholders was CNY 14,877,977.08, a significant increase of 123.70% from CNY 6,650,850.08 year-on-year[3] - The net profit after deducting non-recurring gains and losses reached CNY 10,586,831.90, marking a 1,400.86% increase from CNY 705,384.68 in the previous year[3] - The company's basic earnings per share rose to CNY 0.0599, up 123.51% from CNY 0.0268 in the same quarter last year[3] - Total operating revenue for the first quarter reached CNY 145,444,649.48, compared to CNY 103,775,673.87 in the previous period, indicating a significant increase[17] - Net profit for the quarter was CNY 14,877,977.08, compared to CNY 6,631,363.67 in the same period last year, showing a substantial growth in profitability[18] - The total comprehensive income attributable to the parent company for Q1 2022 was ¥14,868,981.83, up from ¥6,649,650.30 in the same period last year, indicating a growth of about 123.5%[19] - Basic and diluted earnings per share for Q1 2022 were both ¥0.0599, compared to ¥0.0268 in Q1 2021, reflecting an increase of approximately 123.5%[19] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,352,906,484.27, a decrease of 1.60% from CNY 1,374,892,524.74 at the end of the previous year[3] - The total assets of the company decreased to CNY 1,352,906,484.27 from CNY 1,374,892,524.74, reflecting a decline of about 1.6%[15] - Total liabilities decreased to CNY 489,738,973.07 from CNY 526,676,675.37, showing a reduction of approximately 7%[15] Cash Flow - Operating cash flow for the period was negative CNY 60,570,937.90, worsening by 16.15% from negative CNY 52,147,415.70 in the same period last year[3] - The net cash flow from operating activities for Q1 2022 was -¥60,570,937.90, worsening from -¥52,147,415.70 in Q1 2021[22] - Cash inflow from operating activities for Q1 2022 was ¥148,826,932.69, compared to ¥133,959,426.66 in Q1 2021, marking an increase of about 11.1%[22] - Cash and cash equivalents decreased to CNY 279,327,505.85 from CNY 383,328,064.26 at the beginning of the year, representing a decline of approximately 27.1%[14] - Cash and cash equivalents at the end of Q1 2022 were ¥277,782,953.87, down from ¥347,201,306.19 at the end of Q1 2021, a decrease of approximately 20%[23] - The total cash outflow from operating activities in Q1 2022 was ¥209,397,870.59, compared to ¥186,106,842.36 in Q1 2021, reflecting an increase of about 12.5%[22] - The cash outflow from investing activities for Q1 2022 was -¥40,125,411.84, compared to -¥39,591,071.31 in Q1 2021, indicating a slight increase in cash outflow[23] Operational Costs - Operating costs rose to CNY 79,407,769.79, a 46.87% increase due to business growth[6] - Total operating costs amounted to CNY 132,373,116.53, up from CNY 103,217,891.41 in the prior period, reflecting a rise in operational expenses[18] Research and Development - Research and development expenses for the quarter were CNY 13,150,477.13, up from CNY 10,654,502.41, indicating an increase of about 23.5%[18] Credit and Impairment - The company reported a credit impairment loss of CNY -1,189,573.38, compared to a gain of CNY 226,838.42 in the previous period, highlighting a shift in credit quality[18] Financial Standards and Reporting - The company did not conduct any audited financial reporting for Q1 2022[24]

Financial Performance - The company's operating revenue for 2021 was ¥701,636,126.18, representing a 19.84% increase compared to ¥585,455,068.74 in 2020[18] - The net profit attributable to shareholders for 2021 was ¥84,192,019.48, up 9.03% from ¥77,219,721.82 in 2020[18] - The net profit after deducting non-recurring gains and losses was ¥61,297,954.06, a significant increase of 79.51% from ¥34,146,682.11 in 2020[18] - The company's total assets at the end of 2021 reached ¥1,374,892,524.74, a 24.17% increase from ¥1,107,270,732.13 at the end of 2020[18] - The basic earnings per share for 2021 was ¥0.3392, reflecting a 9.03% increase from ¥0.3111 in 2020[18] - The weighted average return on net assets for 2021 was 10.39%, slightly up from 10.25% in 2020[18] - The net cash flow from operating activities was ¥100,669,130.41, down 9.86% from ¥111,685,719.70 in 2020[18] - The company's net assets attributable to shareholders increased by 7.61% to ¥848,215,849.37 at the end of 2021 from ¥788,200,967.81 at the end of 2020[18] Revenue Breakdown - In Q1 2021, the company reported operating revenue of approximately ¥103.78 million, which increased to ¥278.64 million in Q2, followed by ¥201.26 million in Q3, and ¥221.73 million in Q4[20] - The third-party testing services generated ¥311,760,801.64, accounting for 44.43% of total revenue, with a year-on-year growth of 29.83%[55] - The revenue from corrosion protection products increased by 27.06% year-on-year, reaching ¥63,891,815.44[55] Research and Development - The company’s research and development efforts included 35 national projects and 55 self-initiated projects in 2021[41] - The company has established a strong technical innovation team, including 36 PhD holders and 252 master's degree holders[42] - Investment in R&D for new technologies has increased by 20%, totaling 200 million RMB in 2021[119] - The company completed the development of several new technologies, including portable soil heavy metal detection equipment, expected to enhance economic benefits[66] Market Expansion and Strategy - The company is focused on expanding its third-party testing services and has developed a comprehensive range of testing capabilities across various industries, including steel, aerospace, and food[31] - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share within the next three years[119] - A strategic acquisition of a local competitor is in progress, expected to enhance the company's product offerings and market reach[119] Corporate Governance - The company has established a sound corporate governance structure, ensuring clear responsibilities among its governing bodies[103] - The board of directors consists of 7 members, including 3 independent directors, complying with legal requirements[103] - The company adheres to strict information disclosure practices, ensuring timely and accurate communication with investors[105] Social Responsibility - The company has established a comprehensive social responsibility management system to ensure compliance with laws and regulations[161] - The company actively participated in social welfare activities, including a clothing donation campaign for impoverished and disaster-affected areas[165] - The company provided free after-sales service to clients in Henan affected by severe flooding in 2021, helping them minimize losses[166] Risks and Challenges - The company has outlined potential risks in its future development outlook, which investors should consider[4] - The company faces risks from intensified market competition, particularly from international firms entering the domestic testing market[91] - Future changes in government subsidy policies could affect the company's operational performance due to reliance on state-funded research projects[98] Employee Management - The total number of employees at the end of the reporting period was 1,040, including 731 at the parent company and 309 at major subsidiaries[141] - The company has established a comprehensive salary management system, emphasizing performance and market competitiveness in its compensation structure[143] - Training programs are organized to enhance employee skills and safety awareness, including both internal and external training initiatives[144] Dividend Policy - The company plans to distribute a cash dividend of ¥1.02 per 10 shares, totaling approximately ¥25.32 million for the year 2021[148] - The company's cash dividend payout ratio for the current year is 100% of the distributable profit[147] - The company has committed to a profit distribution policy that ensures at least 10% of the annual distributable profit is allocated to shareholders in cash dividends[194] Financial Audit - The current domestic accounting firm is Da Hua Certified Public Accountants (Special General Partnership) with an audit service fee of 410,000 RMB[200] - There is no change in the appointment of the accounting firm[200] - The company does not face any delisting situation after the annual report disclosure[200]

Financial Performance - The company's revenue for Q3 2021 reached ¥201,259,880.27, representing a 43.00% increase compared to the same period last year[3] - Net profit attributable to shareholders was ¥31,014,510.02, up 54.85% year-on-year, while the net profit after deducting non-recurring gains and losses was ¥27,630,104.80, an increase of 111.79%[3] - The total operating revenue for the third quarter of 2021 was RMB 479,901,912.03, an increase of 38.6% compared to RMB 345,979,347.37 in the same period last year[19] - The company's net profit for the third quarter of 2021 is not explicitly stated, but the increase in revenue and costs suggests a focus on growth despite rising expenses[19] - The net profit for Q3 2021 was CNY 70,189,334.68, an increase of 67.5% compared to CNY 41,908,856.19 in the same period last year[20] - The total profit for Q3 2021 reached CNY 81,070,093.39, up 69.1% from CNY 47,912,295.38 year-over-year[20] - The company reported operating income of CNY 77,818,099.53 for Q3 2021, which is a 98.8% increase from CNY 39,155,148.51 in the same quarter last year[20] - The total revenue from sales of goods and services received in Q3 2021 was CNY 515,473,000.16, compared to CNY 412,497,528.41 in Q3 2020, marking a 24.9% increase[23] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥1,203,057,271.88, reflecting an 8.65% increase from the end of the previous year[3] - The total assets as of September 30, 2021, were RMB 1,203,057,271.88, compared to RMB 1,107,270,732.13 at the end of 2020, showing a growth of approximately 8.7%[18] - The total liabilities increased to RMB 352,645,692.82 from RMB 319,075,699.74, indicating a rise in financial obligations[17] - The company’s total equity attributable to shareholders increased by 7.89% to ¥850,423,804.10 compared to the end of the previous year[3] - The company has a total equity of RMB 850,411,579.06, an increase from RMB 788,195,032.39, indicating improved financial health[18] Cash Flow and Expenses - The company’s cash flow from operating activities showed a negative net amount of -¥13,487,735.59, indicating a decline of 146.21% compared to the previous year[3] - Operating cash flow for Q3 2021 was negative at CNY -13,487,735.59, a decline from a positive CNY 29,187,613.38 in the previous year[24] - The company incurred a total operating expense of CNY 528,960,735.75 in Q3 2021, which is an increase from CNY 383,309,915.03 in the previous year[24] - The total operating costs for the third quarter of 2021 were RMB 422,253,593.24, up 28.1% from RMB 329,578,172.77 in the previous year[19] - The company’s cash and cash equivalents decreased to RMB 331,803,083.41 from RMB 440,399,613.07, suggesting a potential liquidity challenge[15] - Cash and cash equivalents at the end of Q3 2021 totaled CNY 326,969,536.71, down from CNY 389,828,091.36 at the end of Q3 2020[25] Research and Development - Research and development expenses increased by 41.06% to ¥38,759,372.47, driven by an increase in R&D personnel and depreciation of new evaluation platform equipment[7] - Research and development expenses for the third quarter were RMB 38,759,372.47, up from RMB 27,476,502.01, highlighting a commitment to innovation[19] Accounts Receivable and Inventory - The accounts receivable rose by 34.65% to ¥204,536,641.79, primarily due to the growth in main business operations[8] - Accounts receivable increased to RMB 204,536,641.79 from RMB 151,905,386.52, indicating a growth in sales and possibly longer collection periods[16] - Inventory levels rose to RMB 201,274,127.95 from RMB 141,983,282.20, reflecting increased production or stockpiling in anticipation of future demand[16] Earnings Per Share - The company reported a basic earnings per share of ¥0.1250, which is a 54.89% increase compared to the same period last year[3] - The basic and diluted earnings per share for Q3 2021 were both CNY 0.2828, compared to CNY 0.1689 in Q3 2020, reflecting a 67.5% increase[21] Other Financial Metrics - The company’s sales expenses increased by 35.85% to ¥68,486,874.53, mainly due to increased market promotion costs and personnel salaries[7] - The company’s contract liabilities rose by 35.10% to ¥108,012,584.37, primarily due to an increase in advance payments received[8] - The company reported a comprehensive income total of CNY 70,158,937.05 for Q3 2021, compared to CNY 41,923,654.50 in Q3 2020, indicating a 67.5% increase[21] - The company did not report any net profit from mergers under common control for the current or previous periods[21]

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].