[Key Financial Data](index=2&type=section&id=I.%20Key%20Financial%20Data) [Core Financial Indicators](index=2&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved strong performance growth in Q3 2022 and year-to-date, with Q3 operating revenue up 57.22% and net profit attributable to parent up 61.56%, while year-to-date net cash flow from operating activities significantly increased by 424.47%, indicating improved operational quality Core Financial Indicators for Q3 2022 and Year-to-Date | Indicator | Current Period (Q3) | Q3 YoY Change | Year-to-Date (YTD) | YTD YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 400,849,413.18 | 57.22% | 918,326,037.34 | 36.02% | | Net Profit Attributable to Shareholders of Listed Company (RMB) | 61,530,957.71 | 61.56% | 136,743,112.52 | 33.77% | | Net Profit Attributable to Parent After Non-recurring Items (RMB) | 57,753,883.00 | 63.76% | 128,645,673.58 | 49.15% | | Net Cash Flow from Operating Activities (RMB) | -- | -- | 136,064,366.21 | 424.47% | | Basic EPS (RMB/share) | 0.64 | 60.00% | 1.43 | 33.64% | | Total Assets (RMB) | 1,557,556,782.73 | 20.33% (vs. end of prior year) | 1,557,556,782.73 | 20.33% (vs. end of prior year) | | Total Equity Attributable to Shareholders of Listed Company (RMB) | 1,091,691,320.96 | 13.63% (vs. end of prior year) | 1,091,691,320.96 | 13.63% (vs. end of prior year) | [Non-recurring Gains and Losses Analysis](index=2&type=section&id=(II)%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date non-recurring gains and losses totaled **RMB 8.10 million**, primarily from government grants and financial product investment income, yet net profit after non-recurring items still grew robustly by 49.15%, demonstrating strong core business profitability Key Non-recurring Gains and Losses Items Year-to-Date | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Government Grants Recognized in Current P/L | 5,381,263.62 | Subsidies obtained according to relevant government policies | | Gains/Losses from Financial Assets Held for Trading | 4,505,285.28 | Mainly due to income and fair value changes from wealth management products held by the company | | Gains/Losses from Disposal of Non-current Assets | -241,239.76 | Loss from disposal of scrapped fixed assets | | **Total** | **8,097,438.94** | -- | [Key Financial Data Changes and Reasons](index=3&type=section&id=(III)%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, significant changes occurred across multiple balance sheet and income statement accounts, with asset growth driven by business expansion and increased operating assets, while revenue and costs rose with business growth, and a substantial decrease in financial expenses due to exchange gains significantly boosted profit Key Balance Sheet Changes and Reasons (As of Sep 30, 2022 vs Dec 31, 2021) | Item | Change Percentage | Significant Change Explanation | | :--- | :--- | :--- | | Prepayments | 963.88% | Mainly due to increased prepayments to suppliers for materials | | Other Current Assets | 559.21% | Mainly due to increased uncertified tax amounts | | Investments in Other Equity Instruments | 432.68% | Mainly due to new investments in the current period | | Notes Payable | 388.42% | Mainly due to business scale growth | | Other Non-current Assets | 267.56% | Mainly due to prepayments for equipment | | Taxes Payable | 203.61% | Mainly due to increased taxes payable | Key Income Statement Changes and Reasons (Jan-Sep 2022 vs Jan-Sep 2021) | Item | Change Percentage | Significant Change Explanation | | :--- | :--- | :--- | | Financial Expenses | -2829.32% | Mainly due to exchange gains/losses, changing from an expense of RMB 1.6 million in the prior period to an income of RMB 43.7 million in the current period | | Credit Impairment Losses | 1574.17% | Mainly due to increased impairment provisions for accounts receivable | | Asset Impairment Losses | 109.03% | Mainly due to increased inventory depreciation provisions | | Non-operating Expenses | 44858.81% | Mainly due to charitable donations and loss of lease deposits in the current period | [Shareholder Information](index=5&type=section&id=II.%20Shareholder%20Information) [Shareholder Structure and Holdings](index=5&type=section&id=(I)%20Total%20Number%20of%20Common%20Shareholders,%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights,%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the reporting period end, the company had **7,311** shareholders, with a highly concentrated equity structure where the actual controller, Ouyang Zhengliang, and his controlled entities hold a significant combined stake, alongside institutional investors like Dajia Asset and CSC Financial in the top ten shareholders - As of the end of the reporting period, the total number of common shareholders was **7,311**[16](index=16&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held (shares) | | :--- | :--- | :--- | :--- | | Ouyang Zhengliang | Domestic Natural Person | 43.43% | 41,609,565 | | Shenzhen Pengcheng Gaofei Investment Management Partnership | Domestic Non-state-owned Legal Entity | 12.55% | 12,020,535 | | Gou Xingrong | Domestic Natural Person | 6.74% | 6,456,360 | | Shenzhen Liangte Investment Management Co., Ltd. | Domestic Non-state-owned Legal Entity | 5.79% | 5,547,960 | | Zhuhai Pengcheng Zhanzhi Investment Consulting Partnership | Domestic Non-state-owned Legal Entity | 4.53% | 4,342,500 | - Actual controller Ouyang Zhengliang is the general partner of Pengcheng Gaofei and Pengcheng Zhanzhi, and controls Liangte Investment, indicating a concerted action relationship and highly concentrated equity[17](index=17&type=chunk) [Other Significant Matters](index=6&type=section&id=III.%20Other%20Significant%20Matters) [2022 Restricted Stock Incentive Plan](index=6&type=section&id=1.%202022%20Restricted%20Stock%20Incentive%20Plan) The company advanced and completed the granting of its 2022 Restricted Stock Incentive Plan during the year, comprising initial and reserved grants, aimed at incentivizing core employees, stabilizing the team, and supporting long-term development - The company initially granted **1.01942 million** restricted shares to **155** incentive recipients on June 27, 2022[19](index=19&type=chunk) - The company reserved and granted **0.38322 million** restricted shares to **36** incentive recipients on September 29, 2022[20](index=20&type=chunk) [Establishment of Equity Investment Fund](index=6&type=section&id=2.%20Equity%20Investment%20Fund) To expand its business scope, the company invested **RMB 40 million** as a limited partner to establish a private equity investment fund with Shenzhen Hi-Tech Investment and other professional investment institutions, aiming to leverage external expertise and resources for new investment and growth opportunities - The company, as a limited partner, invested **RMB 40 million** of its own funds to establish 'Shenzhen Hi-Tech Investment Leiao Private Equity Investment Fund Partnership (Limited Partnership)'[21](index=21&type=chunk)[22](index=22&type=chunk) [Quarterly Financial Statements](index=7&type=section&id=IV.%20Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=7&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets reached **RMB 1.56 billion**, up 20.33% from the year-start, with current assets at **RMB 1.39 billion** primarily comprising financial assets held for trading, cash, and accounts receivable, while total liabilities were **RMB 464 million**, resulting in a stable financial structure with a debt-to-asset ratio of approximately **29.8%** and parent company equity of **RMB 1.09 billion**, up 13.63% from year-start Consolidated Balance Sheet Key Items (Unit: RMB) | Item | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Assets | 1,557,556,782.73 | 1,294,448,074.54 | | Total Liabilities | 464,143,579.45 | 333,746,710.09 | | Total Equity Attributable to Parent Company Shareholders | 1,091,691,320.96 | 960,701,364.45 | | Total Liabilities and Shareholders' Equity | 1,557,556,782.73 | 1,294,448,074.54 | [Consolidated Income Statement (Year-to-Date)](index=9&type=section&id=2.%20Consolidated%20Income%20Statement%20Year-to-Date) In the first three quarters of 2022, the company achieved operating revenue of **RMB 918 million**, a **36.02%** year-over-year increase, with operating costs growing faster at **42.52%**, yet operating profit still reached **RMB 156 million**, up **34.8%**, largely due to a significant reduction in financial expenses from exchange gains, leading to a net profit attributable to parent company shareholders of **RMB 137 million**, up **33.77%** Consolidated Income Statement Key Items (Jan-Sep 2022 vs Jan-Sep 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 918,326,037.34 | 675,121,277.49 | | II. Total Operating Costs | 761,910,885.32 | 573,900,888.25 | | III. Operating Profit | 155,644,184.35 | 115,471,810.74 | | IV. Total Profit | 155,593,232.18 | 116,158,059.68 | | V. Net Profit | 136,604,994.84 | 102,219,333.73 | | Net Profit Attributable to Parent Company Shareholders | 136,743,112.52 | 102,219,333.73 | [Consolidated Cash Flow Statement (Year-to-Date)](index=11&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) In the first three quarters of 2022, net cash flow from operating activities surged by **424.47%** to **RMB 136 million**, primarily due to increased sales collections, while investing activities saw a net outflow of **RMB 92.03 million** mainly for wealth management products and fixed asset purchases, and financing activities had a net outflow of **RMB 45.80 million** for debt repayment, resulting in an overall net increase in cash and cash equivalents of **RMB 38.43 million** Consolidated Cash Flow Statement Key Items (Jan-Sep 2022 vs Jan-Sep 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 136,064,366.21 | 25,943,423.38 | | Net Cash Flow from Investing Activities | -92,031,861.16 | -426,279,307.52 | | Net Cash Flow from Financing Activities | -45,801,000.00 | 6,878,457.25 | | Net Increase in Cash and Cash Equivalents | 38,429,276.86 | -392,668,207.15 |

Financial Performance - The company reported a revenue of RMB 100 million for the first half of 2022, representing a year-on-year increase of 15%[16]. - The gross profit margin for the first half of 2022 was 35%, compared to 30% in the same period last year[16]. - The company's operating revenue for the reporting period was ¥517,476,624.16, representing a 23.16% increase compared to ¥420,153,106.98 in the same period last year[23]. - Net profit attributable to shareholders was ¥75,212,154.81, up 17.27% from ¥64,133,695.62 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was ¥70,891,790.58, reflecting a significant increase of 39.03% compared to ¥50,988,976.12 in the previous year[23]. - Basic earnings per share rose to ¥0.79, an increase of 17.91% from ¥0.67[23]. - The company reported a net profit of RMB 1.98 billion for the first half of 2022, reflecting a growth of 8.58% compared to the previous year[95]. - The total comprehensive income for the first half of 2022 was CNY 77.16 million, compared to CNY 63.87 million in the same period of 2021, reflecting a growth of 20.7%[173]. - The total comprehensive income for the period was approximately 70.24 million yuan, highlighting strong operational performance[195]. Market Expansion and Strategy - The company plans to invest RMB 20 million in R&D for new product development in smart home technology[16]. - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of 2023[16]. - The company actively implemented a "big customer" strategy, expanding sales in the automotive electronics and off-grid lighting sectors[41]. - The company aims to expand its market presence in emerging markets such as Asia, Africa, and Latin America to mitigate risks associated with high export revenue[96]. - The company is focused on improving its core competitiveness and management capabilities to ensure the successful implementation of fundraising projects[98]. - The company plans to continue investing in new product development and market expansion strategies to drive future growth[199]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational footprint[199]. Research and Development - User data indicates a growth of 25% in active users of smart control products compared to the previous year[16]. - The company is focusing on the development of new products and technologies, integrating advanced technology into its offerings[36]. - The company has a strong R&D team with over a decade of experience in smart controller development, contributing to its competitive advantage[48]. - Research and development investment rose to CNY 19.98 million, up 21.40% from the previous year[65]. - The company plans to enhance its research and development efforts to maintain competitive advantages in technology and cost control[97]. - The company aims to enhance its technological capabilities through ongoing research and development initiatives[199]. Financial Management and Investments - The company has established a comprehensive quality management system, achieving multiple certifications including ISO9001 and IATF16949[33]. - The company has established a comprehensive supplier management system, with 2-3 qualified suppliers for major raw materials[38]. - The company has not reported any changes in the fundraising project situation during the reporting period[86]. - The company has not engaged in any entrusted loans during the reporting period[91]. - The company has not reported any major litigation or arbitration matters during the reporting period[122]. - The company has allocated 1 million yuan for general risk reserves, demonstrating a proactive approach to financial management[192]. - The company has set aside 21.51 million yuan for special reserves, indicating a proactive approach to financial management[200]. Operational Efficiency - The company adopted a flexible manufacturing model to meet diverse customer needs, characterized by "multi-variety, small batch, and multiple batches" production[39]. - The company reported a foreign exchange gain of approximately 20 million yuan due to the appreciation of the US dollar, enhancing profitability[41]. - The company reported a significant decrease in short-term borrowings, down 2.64% to CNY 60,082,666.67, which is 4.20% of total assets[70]. - The company’s cash inflow from operating activities totaled CNY 590,869,554.91, compared to CNY 479,422,107.93 in the previous year, indicating improved operational efficiency[178]. Shareholder and Governance - No cash dividends or stock bonuses will be distributed for the current fiscal year[4]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[107]. - The financial director, Huang Bin, resigned on April 25, 2022, due to personal reasons[106]. - The company has maintained a good integrity status, with no significant legal judgments or large debts due during the reporting period[124]. - The company has not reported any significant changes in shareholder structure during the reporting period[142]. Risk Management - The company faces risks related to supply chain disruptions and has outlined mitigation strategies in its report[3]. - The company faces risks from exchange rate fluctuations, as a significant portion of its export revenue is settled in USD[98]. - The company has implemented a risk response plan to monitor and evaluate changes in the risk exposure of foreign exchange derivatives, ensuring timely reporting and emergency measures[90].

Financial Performance - The company's revenue for Q1 2022 was CNY 197.68 million, a decrease of 3.25% compared to CNY 204.32 million in the same period last year[3] - Net profit attributable to shareholders was CNY 19.98 million, down 39.54% from CNY 33.04 million year-on-year[3] - Basic and diluted earnings per share decreased by 60.26% to CNY 0.31 from CNY 0.78 in the same period last year[3] - Total profit for the period was CNY 22.06 million, a decrease of 42.64% from CNY 38.46 million in the same period last year[9] - Operating profit decreased to CNY 22.25 million, down 41.3% from CNY 37.99 million in the previous year[21] - Total operating revenue for Q1 2022 was CNY 197.68 million, a decrease of 3.14% from CNY 204.32 million in the same period last year[20] - Total operating costs increased to CNY 180.23 million, up 1.92% from CNY 177.88 million year-on-year[20] Cash Flow - The net cash flow from operating activities increased by 58.23% to CNY 15.51 million, compared to CNY 9.81 million in the previous year[3] - The net cash flow from operating activities was CNY 15.51 million, an increase of 58.06% from CNY 9.81 million in the same period last year[25] - Investment activities generated a net cash flow of CNY 126.94 million, a significant improvement from a negative CNY 449.92 million in the previous year[25] - The net cash flow from financing activities was -449,999.97 CNY, indicating a cash outflow due to debt repayment[26] - The net increase in cash and cash equivalents for the quarter was 142,203,581.30 CNY, compared to a decrease of -439,591,807.88 CNY in the previous year[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1.29 billion, a slight decrease of 0.37% from CNY 1.29 billion at the end of the previous year[3] - Total liabilities amounted to CNY 309.13 million, a decrease from CNY 333.75 million year-on-year[21] - Total current liabilities decreased to ¥299,099,442.85 from ¥321,971,086.84, a decrease of 7.1%[17] - Non-current liabilities include lease liabilities of ¥7,605,657.14, down from ¥8,823,338.83, a decrease of 13.8%[17] Shareholder Information - Total number of common shareholders at the end of the reporting period is 10,588[12] - The largest shareholder, Ouyang Zhengliang, holds 43.43% of shares, totaling 27,739,710 shares[12] Investment and Income - The company reported a significant increase in investment income, which rose by 88.44% to CNY 4.41 million, compared to CNY 2.34 million in the previous year[8] - The company experienced a 14169.12% increase in cash received from investment activities, totaling CNY 447.62 million, compared to CNY 3.14 million in the previous year[10] Inventory and Receivables - Accounts receivable decreased to ¥185,849,124.33 from ¥227,290,826.91, a decline of 18.3%[16] - Inventory increased to ¥147,979,976.14 from ¥126,169,620.52, reflecting a rise of 17.4%[16] Other Information - The company has not reported any new product developments or market expansions in this quarter[14] - There are no significant mergers or acquisitions reported during this period[14] - The first quarter report was not audited, which may affect the reliability of the financial data presented[27]

Financial Performance - The company's operating revenue for 2021 was CNY 960,030,639.80, representing a 23.97% increase compared to CNY 774,427,445.71 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 140,933,357.09, a significant increase of 57.88% from CNY 89,266,299.53 in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 121,772,962.35, up 44.27% from CNY 84,407,704.41 in 2020[20]. - The basic earnings per share for 2021 was CNY 2.21, reflecting a 33.94% increase from CNY 1.65 in 2020[20]. - The total assets at the end of 2021 amounted to CNY 1,294,448,074.54, an 18.95% increase from CNY 1,088,258,773.39 at the end of 2020[20]. - The net assets attributable to shareholders increased by 15.29% to CNY 960,701,364.45 at the end of 2021 from CNY 833,267,558.07 at the end of 2020[20]. - The company reported a net cash flow from operating activities of CNY 129,150,350.03, a slight increase of 0.50% compared to CNY 128,510,005.64 in 2020[20]. - The company experienced a decline in the weighted average return on equity, which was 15.71% in 2021, down from 26.23% in 2020[20]. - The company achieved a revenue of 960 million yuan, representing a year-on-year growth of 23.97%[45]. - The net profit attributable to shareholders reached 140.93 million yuan, an increase of 57.88% compared to the previous year[45]. Dividend and Share Capital - The company reported a profit distribution plan, proposing a cash dividend of 3.00 RMB per 10 shares and a capital reserve conversion of 5 shares for every 10 shares held[6]. - The total cash dividend for the 2021 fiscal year is set at 19,161,000 RMB, with a share base of 63,870,000 shares, and no stock bonuses were issued[156]. - The company has maintained a cash dividend payout ratio of 100% of the distributable profits for the reporting period[155]. - The company plans to increase its total share capital to 95,805,000 shares through a capital reserve transfer of 5 shares for every 10 shares held[156]. Industry Position and Market Trends - The company operates in the smart control industry, focusing on intelligent controllers and related products[14]. - The company is positioned in the intelligent controller manufacturing industry, which is supported by national policies and has seen increasing demand for automation and intelligence in various sectors[29]. - The smart controller industry in China is projected to maintain an annual growth rate of approximately 12% from 2018 to 2023, with the market size expected to exceed 3 trillion yuan by 2023[31]. - The demand for automation and intelligence in products is increasing, leading to higher technical barriers in the smart controller industry[32]. - The smart controller industry is experiencing a trend towards globalization and specialization, providing significant opportunities for domestic manufacturers[32]. Research and Development - The company invested 35.39 million yuan in R&D, a 30.89% increase year-on-year, accounting for 3.69% of total revenue[59]. - The company has developed 62 patents, including 14 invention patents and 32 utility model patents, enhancing its competitive edge in R&D[47]. - The new product development cycle typically spans 6 to 12 months, involving multiple stages from market demand investigation to mass production[39]. - The company actively participates in the design and development of new products, providing tailored solutions to meet customer needs[39]. - The R&D team has seen a significant increase in younger personnel, with a 37.21% rise in employees under 30 years old[77]. Supply Chain and Production - The company employs both OEM and ODM business models, allowing for greater control over material costs and production efficiency, particularly under the ODM model[38]. - The company has implemented a flexible manufacturing model characterized by "make-to-order" and "small batch production" to meet diverse customer needs[42]. - The company has established a comprehensive supplier management system, ensuring a robust supply chain with 2-3 qualified suppliers for key raw materials[41]. - The company has strengthened its supply chain management to mitigate cost pressures from raw material price increases and chip shortages[60]. Governance and Compliance - The company emphasizes timely and accurate information disclosure, with the chairman as the primary responsible person for disclosures[124]. - The company has established a comprehensive internal control system to ensure effective risk management and operational efficiency[126]. - The governance structure includes a board of directors with 5 members, 2 of whom are independent directors, ensuring compliance with relevant regulations[121]. - The company has implemented a performance evaluation and incentive system linking management compensation to business performance[125]. - The company has complied with all legal and regulatory requirements regarding shareholder meetings and decision-making processes[119]. Risks and Challenges - The company faces risks related to high foreign sales revenue and potential impacts from international market competition and trade policies[107]. - Rising raw material prices and chip shortages pose significant risks to the smart controller industry, impacting production costs[110]. - The company will closely monitor domestic and international market dynamics to enhance core competitiveness and risk resistance[110]. Social Responsibility and Community Engagement - The company actively engages in social responsibility, providing assistance to employees in need through its charity foundation[167]. - The company has taken measures to support poverty alleviation and rural revitalization in Guangxi, enhancing local infrastructure and employment[168]. - The company has not faced any environmental penalties during the reporting period, emphasizing its commitment to environmental protection[164].

Financial Performance - The company's operating revenue for Q3 2021 was ¥254,968,170.51, a decrease of 3.20% compared to the same period last year, while the year-to-date revenue reached ¥675,121,277.49, an increase of 28.78%[4] - Net profit attributable to shareholders for Q3 2021 was ¥38,085,638.11, representing a growth of 30.70% year-on-year, and the year-to-date net profit was ¥102,219,333.73, up 68.59%[4] - The basic earnings per share for Q3 2021 was ¥0.60, down 34.07% compared to the same period last year, while the diluted earnings per share remained the same at ¥0.60[4] - Total operating revenue for the third quarter of 2021 reached CNY 675,121,277.49, an increase of 28.8% compared to CNY 524,255,635.79 in the same period last year[21] - The net profit for Q3 2021 was CNY 102,219,333.73, an increase of 68.8% compared to CNY 60,631,138.93 in the same period last year[22] - Operating profit reached CNY 115,471,810.74, up 54.2% from CNY 74,813,589.66 year-over-year[22] - The company reported a total comprehensive income of CNY 102,105,422.68, compared to CNY 59,910,155.01 in the same period last year[23] - Basic and diluted earnings per share were both CNY 1.60, compared to CNY 1.90 in the same period last year[23] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥1,201,453,559.23, reflecting a 10.40% increase from the end of the previous year[4] - The company's total assets as of September 30, 2021, were CNY 1,201,453,559.23, compared to CNY 1,088,258,773.39 at the end of 2020, reflecting a growth of 10.4%[19] - The company's total liabilities were CNY 278,854,578.48, compared to CNY 254,991,215.32 at the end of 2020, representing an increase of 9.3%[19] - Shareholders' equity rose to CNY 922,598,980.75 from CNY 833,267,558.07, marking an increase of 10.7%[19] - Short-term borrowings increased to CNY 28,500,000.00 from CNY 1,000,000.00, a significant rise of 2750%[18] - Total current liabilities were CNY 246,690,654.16, with significant components including accounts payable of CNY 191,688,410.11[31] - Total non-current liabilities increased to CNY 28,583,571.99, also reflecting the adjustment from the new leasing standard[31] - Total liabilities amounted to CNY 275,274,226.15, indicating a rise due to the aforementioned adjustments[31] Cash Flow - The company's cash flow from operating activities showed a net amount of ¥25,943,423.38 year-to-date, which is a significant decrease of 77.00%[4] - Cash flow from operating activities showed a net inflow of CNY 25,943,423.38, down 77.0% from CNY 112,814,669.31 in the previous year[26] - Cash and cash equivalents decreased to CNY 203,496,341.83 from CNY 600,568,260.03, a decline of 66.1%[17] - Cash and cash equivalents at the end of the period were CNY 202,666,858.34, down from CNY 77,496,569.51 year-over-year[27] - The company recorded a net cash outflow from investing activities of CNY -426,279,307.52, compared to CNY -32,185,791.16 in the previous year[26] Research and Development - Research and development expenses for the first nine months of 2021 were ¥28,616,639.07, an increase of 60.31% compared to the same period last year, indicating increased investment in R&D projects[11] - Research and development expenses increased to CNY 28,616,639.07, a rise of 60.5% compared to CNY 17,850,449.07 in the previous year[22] Inventory and Financial Assets - The company reported a significant increase in trading financial assets, which rose by 869.80% to ¥459,656,460.67, primarily due to the purchase of wealth management products[9] - The company’s inventory increased by 65.12% to ¥158,616,557.49, attributed to business scale growth and market shortages[9] - Inventory increased significantly to CNY 158,616,557.49, up 65.0% from CNY 96,062,003.05[17] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,658, with the largest shareholder holding 43.43% of the shares[12] Future Outlook - Future outlook includes potential market expansion and new product development, although specific figures were not disclosed in the report[21]

Financial Performance - Revenue for the first half of 2021 reached ¥420,153,106.98, representing a 61.07% increase compared to ¥260,855,289.24 in the same period last year[22]. - Net profit attributable to shareholders was ¥64,133,695.62, up 103.65% from ¥31,492,130.61 year-on-year[22]. - Net profit after deducting non-recurring gains and losses was ¥50,988,976.12, an increase of 83.29% compared to ¥27,819,487.53 in the previous year[22]. - Basic earnings per share for the period was ¥1.00, a slight increase of 1.01% from ¥0.99 in the same period last year[22]. - The total profit for the first half of 2021 was ¥72,294,568.90, up 96.2% from ¥36,829,499.46 in the previous year[165]. - The comprehensive income total for the first half of 2021 was ¥63,865,763.27, compared to ¥31,817,447.94 in the first half of 2020[166]. - The company reported a net profit of 31,492,000 yuan for the current period, indicating a significant increase compared to the same period last year[181]. Assets and Liabilities - The company's total assets increased by 7.15% to ¥1,166,080,221.94 from ¥1,088,258,773.39 at the end of the previous year[22]. - Current liabilities rose to CNY 256,645,255.47, compared to CNY 246,690,654.16, an increase of about 4.03%[157]. - Non-current liabilities increased significantly to CNY 25,075,645.13 from CNY 8,300,561.16, marking a rise of approximately 201.06%[157]. - The company’s total liabilities reached CNY 281,720,900.60, compared to CNY 254,991,215.32, an increase of about 10.51%[157]. - Cash and cash equivalents decreased to CNY 123,445,622.91 from CNY 589,435,026.31, a decline of approximately 79.03%[160]. Cash Flow - The net cash flow from operating activities was significantly lower at ¥42,103.13, down 99.94% from ¥67,516,416.10 in the previous year[22]. - The total cash inflow from operating activities for the first half of 2021 was CNY 479,422,107.93, an increase of 49.5% compared to CNY 320,622,035.61 in the first half of 2020[172]. - The net cash flow from investing activities was -CNY 472,393,258.08, worsening from -CNY 15,411,496.49 year-over-year[172]. - The cash inflow from financing activities was CNY 28,500,000.00, up from CNY 10,000,000.00 in the first half of 2020[173]. Research and Development - Research and development expenses rose significantly by 85.51% to ¥16,455,510.20 from ¥8,870,319.97, reflecting increased investment in R&D[53]. - The company has a strong focus on R&D, having formed a solid team over more than a decade, which has led to significant advancements in control technologies[45]. - The company is focusing on research and development of new products to enhance its competitive edge in the market[180]. Market Strategy - The company focuses on the development and production of smart controllers and products for various industries, including smart home, automotive electronics, and new consumer electronics[29]. - The company emphasizes customer-oriented product development, integrating advanced technology to provide value-added solutions[33]. - The company plans to expand into emerging markets in Asia, Africa, and Latin America to mitigate risks associated with overseas market concentration[86]. - The company aims to increase its market share in the domestic market and expand its smart controller business to diversify revenue sources[86]. Risk Management - The management has outlined potential risks and countermeasures in the report, emphasizing the importance of risk awareness for investors[5]. - The company faces risks from rising raw material prices and chip shortages, which could significantly impact production costs and operations[88]. - The company emphasizes risk management in derivative trading, focusing on market, liquidity, and credit risks[79]. Corporate Governance - The company has ensured timely and accurate information disclosure to enhance transparency with investors[102]. - The company has maintained good integrity status without any unfulfilled court judgments or significant debts[114]. - The financial report for the first half of 2021 was not audited[153]. Shareholder Information - The company distributed a cash dividend of 3 RMB per 10 shares, totaling 12,774,000 RMB, and implemented a stock bonus of 1 share for every 10 shares held, along with a capital reserve conversion of 4 shares for every 10 shares, increasing the total share capital from 42,580,000 to 63,870,000 shares[135]. - The major shareholder, Ouyang Zhengliang, holds 43.43% of the shares, with a total of 27,739,710 shares, having increased his holdings by 9,246,570 shares during the reporting period[141]. Environmental and Social Responsibility - The company has maintained a strong focus on environmental protection and safety, achieving certifications for environmental management systems and safety production standards[100]. - The company is actively engaged in the research, development, production, and sales of intelligent controllers and products, with a commitment to minimizing environmental impact[99]. - The company has actively engaged in social responsibility, including providing assistance to employees in need through a charity foundation[103].

Financial Performance - The company's operating revenue for Q1 2021 was ¥204,316,852.31, representing a 109.09% increase compared to ¥97,715,568.98 in the same period last year[8]. - The net profit attributable to shareholders for Q1 2021 was ¥33,042,546.34, up 116.91% from ¥15,233,421.82 in the previous year[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥24,007,391.99, reflecting a 78.62% increase from ¥13,440,279.47 in the same period last year[8]. - Basic and diluted earnings per share for Q1 2021 were both ¥0.78, a 62.50% increase from ¥0.48 in the same period last year[8]. - The company achieved total operating revenue of CNY 204.32 million, a year-on-year increase of 109.09% due to recovery from the pandemic and increased customer orders[18]. - Net profit attributable to shareholders reached CNY 33.04 million, reflecting a growth of 116.91% compared to the previous year[20]. - The total comprehensive income for the first quarter was CNY 33,241,238.75, compared to CNY 15,614,941.22 in the previous period, marking an increase of 113%[52]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥9,805,421.40, a significant improvement from a negative cash flow of ¥22,552,411.57 in the previous year, marking a 143.48% change[8]. - Cash inflow from operating activities totaled CNY 260.61 million, up 130.73% from CNY 112.95 million in the previous period, driven by increased revenue[19]. - The cash and cash equivalents at the end of the period stood at CNY 155.74 million, a substantial increase of 766.85% compared to CNY 17.97 million in the previous period[19]. - The company's cash and cash equivalents dropped to ¥156,788,600.39 from ¥589,435,026.31, a decline of approximately 73%[43]. - The cash flow from operating activities included ¥234,586,043.12 from sales of goods and services, a significant increase from ¥63,189,336.82 in the previous period[58]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,099,378,121.05, a 1.02% increase from ¥1,088,258,773.39 at the end of the previous year[8]. - The total amount of raised funds is 530.22 million CNY, with 45 million CNY invested in the current quarter[28]. - Total liabilities decreased to ¥232.87 million from ¥254.99 million, a reduction of 8.7%[40]. - The company's trading financial assets increased significantly to ¥485.76 million from ¥47.40 million, marking a growth of 923.5%[38]. - The implementation of the new leasing standard resulted in an adjustment of ¥20,283,010.83 to both right-of-use assets and lease liabilities[66]. Research and Development - The company reported a significant increase in research and development expenses, amounting to CNY 7.32 million, a rise of 117.38% year-on-year, indicating a focus on innovation[18]. - Research and development expenses for Q1 2021 were ¥7,320,658.12, compared to ¥3,367,633.22 in the previous year, indicating a year-over-year increase of approximately 117.5%[47]. - The company aims to increase R&D investment and strengthen external collaboration to achieve breakthroughs in more technology application areas[24]. Strategic Initiatives - The company plans to expand into emerging markets in Asia, Africa, and Latin America to mitigate risks associated with high foreign sales revenue[22]. - The company has emphasized the importance of core technology and product development, continuing to invest in new products and technologies to enhance competitiveness[21]. - The company is actively developing high-quality clients and expanding its presence in the mid-to-high-end market[24]. - The company has established a customer credit assessment system to strengthen monitoring and collection of accounts receivable[23]. Risks and Challenges - The company is facing risks from rising raw material prices and chip shortages, which significantly impact the cost of smart controllers[25]. - The company will closely monitor domestic and international market conditions to enhance its core competitiveness and risk resistance[25].

Financial Performance - The company reported a total revenue of 425.8 million RMB for the year 2020, reflecting a year-on-year growth of 15%[11]. - The company's operating revenue for 2020 was CNY 774.43 million, representing a 36.06% increase compared to CNY 569.19 million in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 89.27 million, a 72.02% increase from CNY 51.89 million in 2019[16]. - The net cash flow from operating activities reached CNY 128.51 million, a significant increase of 510.56% compared to CNY 21.05 million in 2019[16]. - The total assets of the company at the end of 2020 were CNY 1,088.26 million, up 163.29% from CNY 413.33 million at the end of 2019[16]. - The company's net assets attributable to shareholders increased by 231.28% to CNY 833.27 million at the end of 2020, compared to CNY 251.53 million at the end of 2019[16]. - The basic earnings per share for 2020 were CNY 2.72, reflecting a 66.87% increase from CNY 1.63 in 2019[16]. - The company achieved a revenue of 774 million yuan, representing a year-on-year growth of 36.06%[32]. - Net profit attributable to shareholders reached 89.27 million yuan, an increase of 72.02% compared to the previous year[32]. - The growth in revenue was primarily driven by increased sales of smart controllers for Bluetooth headsets, water filters, robotic vacuums, smart trash cans, and sensor soap dispensers[33]. Dividend Distribution - The company plans to distribute a cash dividend of 3 RMB (including tax) for every 10 shares, along with a bonus share of 1 share (including tax) and a capital reserve conversion of 4 shares for every 10 shares[4]. - The company reported a cash dividend of 12,774,000.00 CNY, representing 75% of the total profit distribution[112]. - The cash dividend for 2020 represents 14.31% of the net profit attributable to ordinary shareholders, which was CNY 89,266,299.53[119]. - In 2019, the company distributed cash dividends totaling CNY 36,000,000, which accounted for 69.38% of the net profit attributable to ordinary shareholders[119]. - The company did not distribute any dividends for the year 2018, as the board decided against it due to cash flow considerations[118]. - As of December 31, 2020, the cumulative distributable profits of the parent company amounted to CNY 124,416,065.45, with retained earnings in the consolidated financial statements at CNY 167,701,111.18[114]. - The company intends to conduct annual cash dividends, distributing no less than 15% of the annual distributable profits, subject to meeting cash dividend conditions[114]. Market Expansion and Product Development - The company aims to expand its market presence by increasing its product offerings in smart home and consumer electronics sectors[11]. - The company is focusing on the development of new technologies and products, particularly in the field of smart controllers and electronic control systems[11]. - The company has established a product matrix with nearly 200 different products across two major categories and six subcategories[51]. - The company is focused on expanding its collaboration with downstream brand manufacturers to enhance its product offerings and meet customer needs[25]. - The company has several ongoing R&D projects, including a face lighting technology and a universal design for oven controllers, aimed at enhancing market competitiveness[74]. - The company is in the detailed design phase for several new products, including an AI-powered coffee machine and a non-contact thermometer, aimed at enhancing market competitiveness[75]. Risk Management - The company has identified potential risks in its future operations and has outlined corresponding mitigation strategies in its report[4]. - The company emphasizes the importance of risk awareness among investors regarding its future plans and projections[4]. - The company faces risks from high export revenue dependence, with significant sales to Asia, Africa, and North America, and plans to expand into emerging markets[104]. - The company has a good overall receivables recovery situation, with most accounts aged under one year, but acknowledges risks from delayed payments by some clients[105]. - The company will implement measures to mitigate risks from raw material price fluctuations, including early procurement and strategic supplier agreements[106]. Corporate Governance and Compliance - The company’s board of directors has confirmed the accuracy and completeness of the financial report, ensuring no significant omissions or misleading statements[3]. - The company has engaged a reputable accounting firm to audit its financial statements, ensuring compliance with regulatory standards[15]. - The company is committed to enhancing its governance structure and improving financial management and internal controls[102]. - The company has fulfilled all commitments made by actual controllers and shareholders during the reporting period[120]. - The company is currently in compliance with the share transfer restrictions imposed on its shareholders following the IPO[120]. Research and Development - R&D expenses amounted to 27.04 million yuan, representing an 18.89% increase year-on-year, accounting for 3.49% of total revenue[57]. - The company emphasizes the importance of R&D capabilities to develop new intelligent controllers and improve existing products based on customer needs[100]. - The company has developed advanced control technologies, including frequency conversion, fuzzy control, and intelligent network technologies, which support its product innovation[44]. - The company has implemented a comprehensive quality management system based on ISO9001 and IATF16949 standards, aiming for "zero defects"[58]. Shareholder Relations and Stock Management - The company plans to repurchase shares as a primary measure to stabilize its stock price, subject to legal and regulatory compliance[122]. - The company will notify creditors and relevant authorities before implementing any share repurchase plan[122]. - The company has a commitment to not transfer more than 25% of its shares held by directors and senior management during their tenure[121]. - The company will ensure that new directors and senior management adhere to the commitments made regarding share price stabilization measures[124]. - The company will publicly explain any failure to implement the share stabilization measures at the shareholders' meeting[124]. - The company guarantees that the public offering of shares does not involve any fraudulent issuance[124]. Social Responsibility - The company donated 350,000 RMB to the Red Cross Society in Anfu County to support education in mountainous areas[158]. - The company maintains a safety-first policy, with no environmental pollution incidents reported during the year[160].