Financial Performance - The company's revenue for Q3 2021 reached ¥200,511,008.48, representing a 58.39% increase year-over-year[4] - Net profit attributable to shareholders was ¥29,112,087.31, a significant increase of 103.99% compared to the same period last year[4] - The net profit after deducting non-recurring gains and losses was ¥28,609,450.86, up 130.82% year-over-year[4] - Total operating revenue for Q3 2021 reached ¥499,291,197.42, a significant increase of 62.7% compared to ¥306,744,906.02 in Q3 2020[28] - Net profit for Q3 2021 was ¥67,900,171.92, representing a 54.5% increase from ¥43,949,465.56 in Q3 2020[29] - The total comprehensive income attributable to the parent company for Q3 2021 was ¥67,900,171.92, compared to ¥43,949,465.56 in Q3 2020, representing an increase of approximately 54.5%[30] - Basic and diluted earnings per share for Q3 2021 were both ¥0.50, up from ¥0.32 in the same period last year, indicating a growth of 56.25%[30] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,130,982,668.14, reflecting a 15.51% increase from the end of the previous year[5] - The company's total assets as of September 30, 2021, amounted to ¥1,130,982,668.14, up from ¥979,158,500.48 at the end of 2020[26] - Current assets totaled ¥800,686,969.00, an increase of 3.0% from ¥772,458,915.59 at the end of 2020[24] - The total liabilities as of September 30, 2021, were ¥310,182,388.07, up from ¥205,807,392.33 at the end of 2020[26] - The company’s total liabilities increased, with short-term loans rising by 106.24% to ¥70,000,000.00, primarily due to increased bank loans[10] - Short-term borrowings increased to ¥70,000,000.00, compared to ¥33,940,397.50 at the end of 2020, reflecting a 106.5% rise[25] Cash Flow - Cash received from sales and services was ¥508,974,251.73, a 39.77% increase from the previous year[13] - Cash inflow from operating activities totaled ¥528,211,406.74 in Q3 2021, compared to ¥376,528,436.93 in Q3 2020, reflecting an increase of about 40.3%[32] - The net cash flow from operating activities was ¥27,031,520.11 for Q3 2021, slightly up from ¥26,411,860.71 in Q3 2020, showing a growth of 2.3%[32] - Cash outflow from investment activities was ¥355,354,639.90 in Q3 2021, compared to ¥38,563,580.40 in Q3 2020, indicating a significant increase in investment expenditures[33] - The net cash flow from investment activities was -¥117,384,808.82 for Q3 2021, worsening from -¥35,626,569.33 in Q3 2020[33] - Cash inflow from financing activities was ¥72,010,000.00 in Q3 2021, down from ¥406,736,300.00 in Q3 2020, a decrease of approximately 82.3%[33] - The net cash flow from financing activities was ¥12,601,752.35 in Q3 2021, a decline from ¥252,052,133.56 in Q3 2020, reflecting a decrease of about 95%[33] - The ending balance of cash and cash equivalents was ¥31,933,171.63 as of the end of Q3 2021, down from ¥260,336,508.92 at the end of Q3 2020, a decrease of approximately 87.8%[33] Research and Development - Research and development expenses increased to ¥19,812,475.13, an 84.70% rise compared to the previous year, indicating a focus on innovation[11] - The company invested ¥19,812,475.13 in R&D during Q3 2021, which is an 84.5% increase from ¥10,726,726.47 in Q3 2020[28] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 14,508[16] - The top shareholder, Chen Xiaoyu, holds 20.94% of the shares, amounting to 28,550,000 shares[16] Future Plans and Acquisitions - The company plans to continue expanding its market presence and investing in new product development to sustain growth[4] - The company plans to acquire 51.2586% of Wuzhou Valve Co., Ltd., with cash payments of ¥31,500,000 for 11.1928% and ¥34,198,988 for 14.7834% of shares from two shareholders[19][20] - The acquisition of an additional 25.2824% of Wuzhou Valve is contingent upon the completion of the 2021 annual audit and valuation[20] - The net profit of Wuzhou Valve for the last accounting year was reported at -¥28,966,000, indicating potential risks if management does not improve[21] Employee Compensation - Employee compensation increased by 31.20% to ¥66,303,042.72 due to order growth[14] Operating Costs - Operating income for the year-to-date period was ¥499,291,197.42, showing a 62.77% increase year-over-year[11] - Operating costs for the same period were ¥422,947,226.20, up 63.1% from ¥259,230,147.36 in the previous year[28] Cash Management - Cash paid for operating activities rose by 79.35% to ¥58,159,356.29, reflecting increased sales revenue[14] - Cash paid for fixed assets and other long-term assets surged by 113.84% to ¥81,926,547.95, attributed to the construction of a new production line for high-performance control valves[14] - Cash received from bank loans increased by 83.23% to ¥72,010,000.00, indicating a rise in bank borrowings[14] Other Information - The company did not require adjustments to the balance sheet for the new leasing standards as it does not engage in leasing-related business[34]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 298,780,188.94, representing a 65.85% increase compared to CNY 180,152,015.76 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 38,788,084.61, up 30.70% from CNY 29,678,137.22 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 38,403,361.41, reflecting a 53.07% increase from CNY 25,088,325.33 year-on-year[22]. - The net cash flow from operating activities was CNY 35,458,105.72, an increase of 36.05% compared to CNY 26,062,748.77 in the same period last year[22]. - Basic earnings per share rose to CNY 0.28, a 27.27% increase from CNY 0.22 in the previous year[22]. - The gross profit margin for the switch valve product line decreased by 9.76% to 27.63%, while the revenue from switch valves was ¥181,280,606.19, accounting for 86.57% of the total revenue[60]. - The company reported an operating profit of ¥43,825,273.70, up 47.7% from ¥29,657,900.02 in the first half of 2020[150]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,002,036,323.79, a 2.34% increase from CNY 979,158,500.48 at the end of the previous year[22]. - The total liabilities at the end of the reporting period were CNY 404,000,000.00, indicating a manageable debt level[162]. - The company's cash and cash equivalents decreased by 116.32% to a net decrease of ¥46,433,503.01, primarily due to cash dividends paid and bank loan repayments[58]. - The company's inventory increased by 4.42% to ¥164,519,646.47, driven by growth in sales orders[63]. - Accounts receivable increased to ¥306,212,765.49, up 12.3% from ¥272,676,501.78 at the end of 2020[144]. Research and Development - Research and development expenses increased by 89.83% to ¥12,002,132.40, driven by the expansion of new product development projects[57]. - The company has established a standardized and efficient research and development system to meet market demands and technological advancements[31]. - The company has committed to increasing its investment in technology innovation and collaborating with universities to improve product specifications and meet customer demands for new and high-quality products[80]. Market Position and Strategy - The company specializes in the research, production, and sales of industrial control valves, providing customized solutions for various industries[29]. - The company aims to strengthen its market presence in emerging sectors such as polysilicon, new energy, and biodegradable plastics[40]. - The control valve industry is expected to see continued growth due to advancements in industrial automation and smart manufacturing[34]. - The company is positioned to benefit from the increasing emphasis on domestic production of critical equipment, enhancing its competitive advantage[35]. Corporate Governance and Compliance - The financial report was approved by the board of directors on August 20, 2021[165]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that the financial statements accurately reflect its financial position and operating results[169]. - The company reported no significant litigation or arbitration matters during the reporting period[102]. - There were no major penalties or rectification situations reported for the company in the current period[104]. Future Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[161]. - Future guidance indicates a focus on increasing revenue through strategic partnerships and potential acquisitions[161]. - The company plans to increase R&D investment and accelerate project construction to enhance its competitive capabilities and market share[79].

Dividend Distribution - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares to all shareholders, based on a total of 136,340,000 shares[3]. - The company plans to distribute a cash dividend of RMB 1.50 per 10 shares, totaling RMB 20,451,000 for the year 2020[139]. - The cash dividend represents 32.94% of the net profit attributable to the company's ordinary shareholders for 2020, which was RMB 62,083,446.32[145]. - The company did not distribute any dividends in 2019, with the remaining undistributed profits carried forward to the next year[143]. - The cash dividend for 2020 is 100% of the total profit distribution amount, indicating a focus on returning value to shareholders[139]. - The board of directors approved the profit distribution plan on March 29, 2021, considering shareholder returns and future business plans[139]. - The company has a policy to ensure that cash dividends should account for at least 20% of profit distribution in growth stages with significant capital expenditures[139]. - The remaining distributable profit after the 2020 dividend will be carried forward for future distribution[139]. Financial Performance - The company's operating revenue for 2020 was ¥469,768,361.77, an increase of 3.83% compared to ¥452,446,430.10 in 2019[15]. - The net profit attributable to shareholders decreased by 8.40% to ¥62,083,446.32 in 2020 from ¥67,776,664.82 in 2019[15]. - The net profit after deducting non-recurring gains and losses was ¥56,029,473.89, down 12.40% from ¥63,962,566.10 in 2019[15]. - The net cash flow from operating activities increased by 39.27% to ¥52,638,287.61 in 2020, compared to ¥37,795,810.47 in 2019[15]. - The total assets at the end of 2020 reached ¥979,158,500.48, a significant increase of 58.15% from ¥619,132,658.27 at the end of 2019[15]. - The company's basic earnings per share decreased by 21.21% to ¥0.52 in 2020 from ¥0.66 in 2019[15]. - The weighted average return on equity was 10.70% in 2020, down from 18.94% in 2019, reflecting an 8.24% decline[15]. - The company achieved a sales revenue of 530 million yuan in 2020, marking a slight increase from 510 million yuan in 2019, and is one of the few domestic control valve companies with annual sales exceeding 500 million yuan[49]. Market Position and Strategy - The company ranks 5th among domestic brands in the control valve market, with a consistent position in the top 5 since 2017[49]. - The company specializes in the R&D, production, and sales of industrial control valves, serving various industries including petrochemical, energy, and pharmaceuticals[26][27]. - The company operates on a made-to-order business model, providing customized control valve solutions[28]. - The company's revenue model is based on customized products according to customer needs, generating reasonable profits through the sale of control valves and related services[29]. - The company has established a collaborative R&D model that integrates market demand and internal coordination, ensuring efficient product development processes[30]. - The company maintains a strict supplier management system, regularly evaluating suppliers based on delivery timeliness, quality, and service attitude[33]. - The company has seen stable demand from downstream industries, particularly in the chemical and petrochemical sectors, driven by investment needs and environmental upgrades[40]. - The company actively participates in industry exhibitions and employs marketing personnel to expand its domestic and international market presence[35]. Research and Development - The company has developed multiple patented technologies, ensuring a competitive edge in the industrial control valve market[54]. - The company has a total of 57 patents, with 5 new patents granted during the reporting period[65]. - The company has established a technology research and development innovation system, collaborating with universities and research institutions, enhancing its core product development capabilities[53]. - The company's R&D efforts have been bolstered by national policies supporting the development of smart manufacturing and automation technologies, creating a favorable market environment[43]. - The company plans to increase R&D investment to enhance product quality and expand its product range, particularly in high-end products like slurry knife gate valves and high-performance large-diameter control valves[124]. Financial Management and Investments - The company has invested ¥10,487.91 million of the planned ¥32,460.78 million in fundraising projects, which include the construction of a production line for 25,000 sets of high-performance control valves and a research and development center[69][70]. - The total amount of funds raised was RMB 367,436,300, with a net amount of RMB 324,607,847.64 after deducting issuance costs of RMB 42,828,452.36[104]. - The company has committed to projects totaling RMB 32,460.78 million, with RMB 10,487.91 million already invested, indicating a progress rate of 32.3%[108]. - The company has initiated a construction project for a production line with an annual capacity of 25,000 high-performance control valves, contributing to the increase in construction in progress[100]. - The company has a receivable account value of approximately ¥272.68 million, with measures in place to manage collection risks effectively[132]. Corporate Governance and Compliance - The company has established a commitment to ensure transparency and accountability in its financial reporting and investor communications[156]. - The company has not reported any instances of non-standard audit reports during the reporting period[158]. - The company’s management team has pledged to cease receiving dividends and salaries if they violate their commitments regarding share repurchase measures[155]. - The company has committed to repurchasing all newly issued shares if there are any false statements or significant omissions in the prospectus[153]. - The company will ensure that any adjustments to the profit distribution policy are thoroughly documented and presented to the shareholders for approval[152]. Industry Trends and Outlook - The control valve industry is expected to experience steady growth during the 14th Five-Year Plan period, driven by the increasing demand for automation in various sectors[45]. - The government aims to achieve a self-sufficiency rate of over 90% for key pumps and valves, indicating a strong trend towards domestic substitution in the control valve industry[118]. - The construction of chemical industrial parks is becoming a major trend, driven by safety and environmental regulations, which will increase demand for automatic control valves[119]. - The trend of import substitution in high-end control valve products is expected to provide significant growth opportunities for domestic manufacturers[118]. - The company aims to enhance its digital transformation by integrating digital economy with the real economy, focusing on data-driven approaches to improve production capacity, reduce costs, and increase efficiency[123].

浙江力诺流体控制科技股份有限公司 2021 年第一季度报告全文 浙江力诺流体控制科技股份有限公司 2021 年第一季度报告 公告编号：2021-027 2021 年 04 月 1 浙江力诺流体控制科技股份有限公司 2021 年第一季度报告全文 第一节 重要提示 浙江力诺流体控制科技股份有限公司 2021 年第一季度报告全文 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 第二节 公司基本情况 所有董事均已出席了审议本次季报的董事会会议。 一、主要会计数据和财务指标 公司负责人陈晓宇、主管会计工作负责人李雪梅及会计机构负责人(会计主 管人员)李雪梅声明：保证季度报告中财务报表的真实、准确、完整。 公司是否需追溯调整或重述以前年度会计数据 2 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 102,304,621.68 | 51,299,182.22 | 99.43% | | 归属于上市公司股东的净利润 ...

Financial Performance - The company's operating revenue for 2020 was CNY 469,768,361.77, representing a 3.83% increase compared to CNY 452,446,430.10 in 2019[16] - The net profit attributable to shareholders decreased by 8.40% to CNY 62,083,446.32 in 2020 from CNY 67,776,664.82 in 2019[16] - The net profit after deducting non-recurring gains and losses was CNY 56,029,473.89, down 12.40% from CNY 63,962,566.10 in the previous year[16] - The net cash flow from operating activities increased by 39.27% to CNY 52,638,287.61 in 2020, compared to CNY 37,795,810.47 in 2019[16] - The total assets at the end of 2020 reached CNY 979,158,500.48, a significant increase of 58.15% from CNY 619,132,658.27 at the end of 2019[16] - The net assets attributable to shareholders doubled to CNY 773,351,108.15 at the end of 2020, compared to CNY 386,659,814.19 at the end of 2019, marking a 100.01% increase[16] - Basic earnings per share decreased by 21.21% to CNY 0.52 in 2020 from CNY 0.66 in 2019[16] - The weighted average return on net assets fell to 10.70% in 2020, down from 18.94% in 2019, a decrease of 8.24 percentage points[16] Revenue Breakdown - The company's total revenue for 2020 was 369,168,461.77 CNY, with a quarterly breakdown of 51,299,182.22 CNY in Q1, 128,852,833.54 CNY in Q2, 126,592,890.26 CNY in Q3, and 163,023,455.75 CNY in Q4[18] - The net profit attributable to shareholders for the year was 62,083,446.32 CNY, with quarterly figures of 5,445,597.39 CNY in Q1, 24,232,539.83 CNY in Q2, 14,271,328.34 CNY in Q3, and 18,133,980.76 CNY in Q4[18] - The company's sales revenue for 2020 reached 530 million CNY, showing a slight increase from 510 million CNY in 2019, and it has consistently maintained sales above 500 million CNY for several years[51] - The company's revenue from the chemical industry increased by 29.22% year-on-year, accounting for 63.13% of total revenue[76] - The company's revenue from the petrochemical industry decreased by 52.61% year-on-year, accounting for 4.74% of total revenue[76] - The company's revenue from switch valves reached ¥269,961,907.62, accounting for 57.47% of total revenue, with a year-on-year increase of 7.73%[77] - The total revenue from domestic sales was ¥432,433,423.46, representing 92.05% of total revenue, with a year-on-year growth of 3.74%[77] Investment and R&D - The company plans to invest 324.61 million yuan in projects, including a production line for 25,000 high-performance control valves and a research and development center[72] - The company has significantly increased its investment in R&D for automatic control valves, optimizing its product structure to include various types of control valves such as electric and pneumatic[47] - The company's research and development expenses for 2020 were ¥16,015,778.77, accounting for 3.41% of operating revenue, with a year-on-year increase of 2.66%[89] - The company has established four research centers to accelerate technological upgrades and meet customer demands for new and high-quality products[138] - The company is focused on developing new technologies and products to enhance its competitive edge in the control valve market[120] Market Position and Strategy - The company ranked 15th among the top 50 domestic control valve manufacturers in terms of sales in 2020, and 5th among domestic brands[52] - The company emphasizes customer-centric marketing strategies, enhancing customer satisfaction through high-quality products and personalized services, which helps in acquiring new orders[38] - The company actively promotes brand building and has been recognized as a first-class supplier by major oil companies[69] - The company is positioned to benefit from the trend of chemical enterprises concentrating in industrial parks, which enhances production control and safety operations[123] - The company has established long-term cooperative relationships with several internationally renowned enterprises, exporting products to countries including the USA, Finland, Russia, South Africa, and Southeast Asia[63] Supply Chain and Production - The company maintains a stable supply chain with long-term suppliers for key raw materials, ensuring sufficient supply for production[34] - The company has established a strict evaluation system for suppliers, focusing on delivery timeliness, quality pass rate, and service attitude, ensuring only qualified suppliers are retained[35] - The production model is based on customer orders, utilizing an integrated ERP and MES system to control order management and ensure timely delivery of materials[36] - The company has accumulated extensive experience in R&D and production of key products such as single-seat and sleeve control valves, ball valves, butterfly valves, and knife gate valves, with a rich product line[58] Corporate Governance and Compliance - The company has not encountered any major changes in the controlled structured entities during the reporting period[116] - The company has not experienced any major litigation or arbitration matters during the reporting period[175] - The company has maintained its accounting policies in accordance with the new revenue recognition standards effective from January 1, 2020, without significant impact on its financial results[170][171] - The company has retained its accounting firm, Zhonghui Certified Public Accountants, for 9 years, with an audit fee of 477,000 RMB for the reporting period[173] - The company actively fulfills its corporate social responsibilities, creating value for shareholders while also considering employees, customers, and society[190] Dividend Policy - The company plans to distribute a cash dividend of ¥1.50 per 10 shares, totaling ¥20,451,000, which represents 100% of the distributable profit[144] - The company declared cash dividends of CNY 20,451,000 in 2020, representing 32.94% of the net profit attributable to ordinary shareholders[152] - The company plans to distribute at least 20% of the distributable profits as cash dividends annually, provided there are no major investment plans or cash expenditures[157] - The profit distribution policy can be adjusted in response to significant external impacts or major changes in the company's operations[159] Risk Management - The company acknowledges potential risks in its future development and has outlined corresponding measures in its report[3] - The company acknowledges risks related to industry policy changes and plans to increase R&D investment to strengthen its competitive position[136] - The company has established a plan to stabilize the stock price, which includes measures such as share repurchase and increasing shareholding by directors and senior management[155]

Financial Performance - Operating revenue for the period was ¥126,592,890.26, representing a year-on-year increase of 14.06%[8] - Net profit attributable to shareholders decreased by 4.80% to ¥14,271,328.34 compared to the same period last year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 16.21% to ¥12,394,626.63[8] - Basic earnings per share decreased by 33.33% to ¥0.10[8] - Weighted average return on equity decreased by 54.25% to 1.91%[8] - The net profit for Q3 2020 was CNY 14,271,328.34, a decrease of 4.81% from CNY 14,991,657.56 in Q3 2019[40] - The total profit for Q3 2020 was CNY 16,281,794.57, compared to CNY 17,047,533.42 in the previous year, reflecting a decline of 4.51%[40] - The company's operating profit for Q3 2020 was CNY 16,113,198.87, down from CNY 17,067,533.42 in Q3 2019, indicating a decrease of 5.59%[40] - The total comprehensive income for Q3 2020 was CNY 14,271,328.34, compared to CNY 14,991,657.56 in the same period last year[41] Assets and Liabilities - Total assets increased by 48.97% to ¥922,345,282.22 compared to the end of the previous year[8] - The company's total assets increased by 48.92% to CNY 922,345,282.22 compared to CNY 619,132,658.27 at the end of the previous year[27] - The company's total liabilities decreased to CNY 167,128,154.83 from CNY 232,472,844.08, suggesting improved financial health[32] - The equity attributable to shareholders increased to CNY 755,217,127.39 from CNY 386,659,814.19, indicating a strong retention of earnings and capital growth[29] Cash Flow - Net cash flow from operating activities increased by 105.72% to ¥349,111.94[8] - The net cash flow from operating activities for Q3 2020 was ¥26,411,860.71, an increase of 19.9% from ¥22,168,569.14 in Q3 2019[52] - The net cash flow from financing activities was CNY 252,052,133.56, a significant increase compared to a negative cash flow of CNY -13,930,043.16 in the previous period[19] - Cash inflow from operating activities totaled CNY 376,528,436.93, compared to CNY 323,891,736.22 in the previous period, reflecting a growth of approximately 16.3%[55] - Cash outflow for operating activities was CNY 350,116,576.22, up from CNY 301,721,628.83 in the previous period[56] - The company reported a cash inflow of CNY 406,736,300.00 from financing activities, a significant increase from CNY 91,128,058.00 in the previous period[57] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,831[11] - The company’s equity capital increased by 33.33% to CNY 136,340,000.00 due to the issuance of new shares during the reporting period[17] Expenses - Operating expenses rose by 32.91% to CNY 15,953,972.41 mainly due to increased expenses related to the listing[18] - Research and development expenses for Q3 2020 were CNY 4,404,296.94, slightly down from CNY 4,524,657.09, showing a stable investment in innovation[35] - The total operating costs for Q3 2020 were ¥201,106,808.88, down 4.3% from ¥210,190,846.87 in Q3 2019[47] - The company reported a decrease in financial expenses, with a net financial income of CNY -1,586,393.28 compared to CNY 823,767.20 in the previous year, reflecting improved cost management[35] Government Subsidies - The company reported government subsidies of ¥8,393,802.31 during the period[9] - Other income increased by 403.71% to CNY 5,037,100.00 primarily from government subsidies related to the listing[18] Inventory and Receivables - Accounts receivable rose by 271.65% to CNY 4,297,797.01 as a result of increased commercial acceptance bills received[17] - Inventory increased by 55.41% to CNY 131,958,470.06 due to a rise in orders on hand[17] - Prepayments increased by 78.51% to CNY 6,367,344.49 due to an increase in procurement orders[17]

Financial Performance - Operating revenue for the current period was ¥126,592,890.26, representing a 14.06% increase year-on-year[9] - Net profit attributable to shareholders decreased by 4.80% to ¥14,271,328.34 compared to the same period last year[9] - Basic earnings per share decreased by 33.33% to ¥0.10 compared to the same period last year[9] - The weighted average return on equity decreased by 54.25% to 1.91% in the current period[9] - Total operating revenue for Q3 2020 reached ¥126,592,890.26, an increase of 14.5% compared to ¥110,985,413.51 in Q3 2019[35] - Net profit for Q3 2020 was ¥14,271,328.34, a decrease of 4.8% from ¥14,991,657.56 in Q3 2019[37] - Operating profit for the third quarter was ¥16,113,198.87, a decline of 5.6% from ¥17,067,533.42 in the previous year[41] - The company's total operating revenue for the current period is ¥306,744,906.02, a decrease of 5.1% compared to ¥324,995,588.40 in the previous period[48] - The net profit attributable to the parent company is ¥43,949,465.56, down 8.8% from ¥48,072,774.86 in the previous period[49] - Total comprehensive income for the period was ¥14,271,328.34, compared to ¥14,991,657.56 in the prior year[41] - The total comprehensive income for the current period is ¥43,949,465.56, compared to ¥48,072,774.86 in the previous period, reflecting a decrease of 8.8%[50] Asset and Equity Changes - Total assets increased by 48.97% to ¥922,345,282.22 compared to the end of the previous year[9] - Net assets attributable to shareholders increased by 95.32% to ¥755,217,127.39 compared to the end of the previous year[9] - Cash and cash equivalents increased by 1273.36% to ¥262,029,674.74 due to the increase in raised funds during the reporting period[18] - Accounts receivable increased by 271.65% to ¥4,297,797.01 as a result of an increase in commercial acceptance bills received[18] - Inventory rose by 55.41% to ¥131,958,470.06 due to an increase in orders on hand[18] - Prepayments increased by 78.51% to ¥6,367,344.49 due to an increase in procurement orders[18] - The company's total equity attributable to shareholders reached ¥755,217,127.39, up from ¥386,659,814.19, marking a significant increase of 95.0%[33] - Total assets as of September 30, 2020, amounted to ¥922,345,282.22, compared to ¥619,132,658.27 at the end of 2019, indicating a growth of 48.9%[32] - Current assets increased to ¥726,923,397.33 from ¥448,444,234.23, representing a rise of 62.0% year-over-year[32] Cash Flow and Financing Activities - Net cash flow from operating activities increased by 105.72% to ¥349,111.94 in the current period[9] - The net cash flow from financing activities was ¥252,052,133.56, a significant increase compared to a negative cash flow of ¥13,930,043.16 in the previous period[20] - The total cash inflow from financing activities is ¥406,736,300.00, significantly higher than ¥91,128,058.00 in the previous period[54] - The company reported a net cash increase of ¥242,733,382.42 in cash and cash equivalents, compared to a decrease of ¥19,167,492.90 in the previous period[54] - Net cash flow from operating activities was ¥26,411,860.71, up 19.3% compared to ¥22,170,107.39 in the prior period[57] - Cash outflow from investment activities totaled ¥38,563,580.40, an increase of 39.9% from ¥27,587,844.70 in the previous period[57] - The ending balance of cash and cash equivalents increased to ¥260,336,508.92, compared to ¥6,236,393.01 at the end of the previous period[58] - The company received cash from investment of ¥367,436,300.00 during the financing activities, with cash inflow from borrowings at ¥39,300,000.00[57] Expenses and Liabilities - Management expenses rose by 32.91% to ¥15,953,972.41 mainly due to increased listing-related expenses[19] - The total liabilities decreased to ¥167,128,154.83 from ¥232,472,844.08, indicating a reduction of 28.1%[33] - The company reported a decrease in financial expenses, with a net financial cost of -¥1,586,393.28, compared to ¥823,767.20 in Q3 2019[36] - Research and development expenses for Q3 2020 were ¥4,404,296.94, slightly down from ¥4,524,657.09 in the same quarter last year[36] - Research and development expenses for the current period are ¥10,726,726.47, a slight decrease of 10.1% from ¥11,934,584.39 in the previous period[48] - The company has incurred interest expenses of ¥1,873,430.37, down from ¥3,041,603.45 in the previous period, indicating a reduction of 38.3%[48] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 136,340[13] - The top shareholder, Chen Xiaoyu, holds 20.94% of the shares, totaling 28,550,000 shares[13] Other Income - Non-operating income from government subsidies amounted to ¥8,393,802.31[10] - The company reported a 403.71% increase in non-operating income to ¥5,037,100.00, primarily from government subsidies related to listing[19] - Other income for the quarter was ¥2,284,740.43, a substantial increase from ¥262,646.41 in the previous year[40] Audit and Adjustments - The third quarter report was not audited[61] - The company did not require adjustments to the balance sheet items at the beginning of the year due to no significant changes in revenue recognition methods[59]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥180,152,015.76, a decrease of 15.82% compared to ¥214,010,174.89 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥29,678,137.22, down 10.42% from ¥33,128,501.96 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥25,088,325.33, a decline of 15.65% compared to ¥29,744,485.13 in the same period last year[20]. - The net cash flow from operating activities was ¥26,062,748.77, which is a decrease of 7.82% from ¥28,272,785.06 in the previous year[20]. - The basic earnings per share decreased by 31.25% to ¥0.22 from ¥0.32 in the same period last year[20]. - The diluted earnings per share also fell by 31.25% to ¥0.22 from ¥0.32 in the previous year[20]. - The weighted average return on net assets was 6.51%, down from 9.58% in the previous year, a decrease of 3.07%[20]. - The company reported a total non-operating income of 4,589,811.89 CNY, primarily from government subsidies of 5,909,061.88 CNY, offset by losses from asset disposals and debt restructuring[24]. - The company achieved a sales revenue of 5.2 billion CNY in 2018 and 5.1 billion CNY in 2019, ranking among the few domestic control valve companies with annual sales exceeding 5 billion CNY[56]. - The company reported a decrease in short-term borrowings to ¥24,448,505.81 from ¥60,000,000.00, a decline of about 59.1%[181]. Assets and Liabilities - The total assets at the end of the reporting period were ¥937,795,912.05, an increase of 51.47% from ¥619,132,658.27 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company reached ¥740,945,799.05, up 91.63% from ¥386,659,814.19 at the end of the previous year[20]. - Total liabilities decreased to ¥196,850,113.00 from ¥232,472,844.08, a reduction of about 15.3%[181]. - Total equity surged to ¥740,945,799.05 from ¥386,659,814.19, indicating an increase of approximately 91.5%[182]. - The company’s capital reserve increased significantly to ¥353,453,787.41 from ¥62,930,939.77, representing a growth of approximately 461%[182]. - The company’s retained earnings rose to ¥223,547,511.69 from ¥193,869,374.47, an increase of about 15.4%[182]. Market Position and Strategy - The company is focused on expanding its market presence in various sectors, including energy, pharmaceuticals, and food processing, through innovative valve solutions[27]. - The company has entered the qualified supplier lists of Sinopec and CNOOC, marking significant breakthroughs in the oil and petrochemical industry[50]. - The domestic market share of control valves is expected to reach 50% by 2020, with a target of 90% for key pump and valve equipment autonomy[52]. - The company ranked 4th among domestic brands in the control valve market from 2017 to 2020, according to statistics from "Control Valve Information"[56]. - The company has achieved a high market share in niche industries such as papermaking, fine chemicals, biochemistry, and environmental water treatment, establishing itself as a well-known brand in these sectors[64]. Research and Development - The company emphasizes the development of high-capacity designs in its products, such as the PJ series multi-stage pressure reducing valves, tailored for high-pressure applications[28]. - The company has established a post-doctoral workstation approved by the Zhejiang Provincial Human Resources and Social Security Department since November 2015, enhancing its research and development capabilities[60]. - The company has developed various innovative products, including the V-type regulating three-way ball valve and large-caliber high-temperature and high-pressure regulating valve, which have passed identification since 2015[60]. - The company is committed to developing new technologies for automated control valves and plans to establish a research institute for this purpose[106]. - The company launched two new products recognized as provincial-level new products during the reporting period[74]. Production and Operations - The company operates a customized production model for control valves, focusing on client-specific requirements to generate reasonable profits[34]. - The company’s production is organized based on customer orders, utilizing an information system to manage orders across departments for timely delivery[39]. - The company’s procurement strategy emphasizes direct purchasing, with a strict supplier management system to ensure quality and timely delivery of raw materials[36]. - The company is focusing on high-end and intelligent product development to enhance its market competitiveness[106]. - The company plans to invest in a production line with an annual capacity of 25,000 high-performance control valves and a research and development center, aiming to enhance production capacity and technical strength[115]. Governance and Compliance - The company aims to enhance its governance structure and ensure compliance with relevant laws and regulations following its listing on the Shenzhen Stock Exchange in June 2020[78]. - The company has a stable control structure with six individuals jointly controlling the company, with agreements in place to ensure governance stability until March 2025[122]. - The effective corporate income tax rate during the reporting period was 15%, benefiting from high-tech enterprise recognition since 2012[119]. - The company has implemented measures to stabilize core technical personnel, including attractive compensation and incentive policies to retain talent[112]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations that could impact downstream investment in fixed assets[103]. - The company anticipates potential risks in project implementation that may affect expected economic and social benefits[115]. - The company experienced a one-month shutdown due to the COVID-19 pandemic, impacting revenue and profit metrics[71]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 31,792[159]. - The largest shareholder, Chen Xiaoyu, holds 20.94% of the shares, amounting to 28,550,000 shares[159]. - The second-largest shareholder, Ren Xiang, holds 9.44% of the shares, amounting to 12,867,000 shares[159]. - The company did not undergo any changes in its controlling shareholder or actual controller during the reporting period[162]. Miscellaneous - The company has not reported any discrepancies between financial statements prepared under international and Chinese accounting standards[21]. - The company has not disclosed any significant mergers or acquisitions during the reporting period[27]. - The company did not experience any major changes in its operational contracts or face any significant risks related to contract performance[145]. - The financial report for the first half of 2020 was not audited[177].