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].

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].