Financial Performance - The company's operating revenue for Q1 2021 was ¥102,717,523.92, representing a 49.56% increase compared to ¥68,680,617.23 in the same period last year[8]. - Net profit attributable to shareholders for Q1 2021 was ¥34,664,452.67, a significant increase of 124.45% from ¥15,444,493.45 in the previous year[8]. - The net profit after deducting non-recurring gains and losses was ¥20,200,764.48, up 120.38% from ¥9,166,353.78 year-on-year[8]. - Basic earnings per share for Q1 2021 were ¥0.52, an increase of 67.74% compared to ¥0.31 in the same period last year[8]. - Operating profit for Q1 2021 reached CNY 29,688,490.43, compared to CNY 18,436,687.58 in the same period last year, representing a growth of approximately 61.2%[60]. - The total profit for Q1 2021 was CNY 40,393,590.49, compared to CNY 17,836,177.40 in the same period last year, marking an increase of about 126.5%[60]. - The company’s total comprehensive income for Q1 2021 was CNY 34,664,452.67, compared to CNY 15,444,493.45 in the previous year, reflecting a growth of approximately 124.5%[61]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,078,674,201.45, a 73.18% increase from ¥622,872,098.53 at the end of the previous year[8]. - The company's total liabilities decreased to CNY 130.56 million from CNY 148.96 million year-over-year, indicating a reduction of about 12.3%[51]. - The equity attributable to the parent company increased to CNY 948.12 million, up from CNY 473.92 million, reflecting a growth of approximately 100%[52]. - The total current liabilities were CNY 149,074,680.11, with short-term borrowings at CNY 39,820,221.11[79]. Cash Flow - The company reported a net cash flow from operating activities of -¥24,022,258.23, slightly worse than -¥22,819,869.18 in the same period last year, reflecting a 5.27% increase in cash outflow[8]. - Total cash inflow from financing activities reached 453,869,500.00 CNY, significantly higher than 25,006,589.20 CNY in the same period last year, reflecting strong capital raising efforts[69]. - The net cash flow from investing activities was -132,347,849.75 CNY, compared to -32,803,121.91 CNY in the previous year, showing increased investment expenditures[72]. - Cash outflows for operating activities totaled 90,465,569.68 CNY, compared to 79,849,889.71 CNY in the previous year, indicating higher operational costs[68]. Shareholder Information - The total number of shareholders at the end of the reporting period was 17,825, indicating a stable shareholder base[12]. - The sales from the top five customers accounted for a stable proportion, with no single customer dependency that could significantly impact future operations[26]. Research and Development - The company is focusing on the development of metal cutting tools and related equipment, enhancing R&D investment in new technologies and products[26]. - Research and development expenses for Q1 2021 amounted to CNY 3,050,717.51, compared to CNY 2,595,761.70 in the previous year, showing an increase of approximately 17.5%[63]. - The development of new technologies and products is subject to uncertainties, and the company is enhancing R&D efforts and collaborations with leading research institutions[35]. Supplier and Inventory Management - The proportion of purchases from the top five suppliers decreased to 66.40%, down from 81.79% in the previous year, indicating improved supplier diversification[25]. - The company is actively working on domestic supplier partnerships to mitigate risks associated with imported raw materials, particularly cold-rolled alloy steel from Germany[31]. - The company aims to improve inventory management to address risks related to large inventory scales and declining turnover rates[33]. - Inventory increased to CNY 171.31 million from CNY 161.42 million year-over-year[49]. Government Support - The company received government subsidies amounting to ¥16,485,814.91 during the reporting period, contributing positively to its financial performance[9].

Financial Performance - The company's operating revenue for 2020 was CNY 380,377,950.03, representing a 0.92% increase compared to CNY 376,907,543.58 in 2019[18]. - The net profit attributable to shareholders for 2020 was CNY 93,041,755.31, a 29.20% increase from CNY 72,011,490.94 in 2019[18]. - The net cash flow from operating activities increased by 83.94% to CNY 84,817,799.53 in 2020, compared to CNY 46,112,112.77 in 2019[18]. - The total assets at the end of 2020 were CNY 622,872,098.53, a 22.24% increase from CNY 509,559,045.67 at the end of 2019[18]. - The company reported a basic earnings per share of CNY 1.86 for 2020, up 29.17% from CNY 1.44 in 2019[18]. - The total profit reached 108.19 million yuan, reflecting a year-on-year growth of 30.02%[65]. - Net profit attributable to shareholders was 93.04 million yuan, up 29.02% year-on-year[65]. - The company achieved operating revenue of 380.38 million yuan, a year-on-year increase of 0.92%[65]. Dividend Policy - The company plans to distribute a cash dividend of 4.2 yuan per 10 shares (including tax) based on a total of 66.67 million shares[5]. - A cash dividend of ¥4.2 per 10 shares (including tax) was proposed, amounting to a total cash dividend of ¥28,001,400.00, which represents 30.10% of the net profit attributable to ordinary shareholders[130][132]. - The total cash dividend for 2020 accounted for 100% of the profit distribution amount, indicating a strong commitment to returning value to shareholders[128]. - The company did not distribute any dividends in 2018 and 2019, marking a return to profit distribution in 2020[132]. - The cash dividend policy aligns with the company's articles of association and ensures the protection of minority shareholders' rights[126]. Research and Development - The company has a strong focus on research and development in new materials, which is critical for maintaining competitive advantage[13]. - The company invested 12.17 million yuan in R&D during the reporting period, focusing on production process optimization and new product development[70]. - The company aims to enhance its profitability by advancing the development of new products, particularly in high-precision, high-efficiency, and high-stability products, while also providing integrated cutting solutions[109]. - The company will continue to strengthen its investment in technology research and development to maintain its industry-leading position, focusing on the trends in metal cutting tools and enhancing its R&D capabilities[107]. - The company has committed to enhancing revenue and profitability to offset the dilution of immediate returns following its IPO[155]. Market Position and Strategy - The company has achieved a leading market position in heavy-duty die-cutting tools, with a market share that remains at the top in both international and domestic markets as of 2018[46]. - The company is extending its capabilities to provide intelligent CNC equipment that complements its metal cutting tools, catering to one-stop procurement needs for downstream customers[47]. - The company aims to enhance the localization rate of key supporting industries as part of its strategy to transition from a manufacturing power to a manufacturing stronghold[37]. - The company is preparing for an IPO on the ChiNext board to address capacity bottlenecks and expand its financing channels, with the application approved on October 16, 2020[66]. - The company’s strategic focus on the integration of metal cutting tools and supporting equipment has shown initial results, improving its market competitiveness[64]. Risks and Challenges - The company faces risks from fluctuations in downstream market demand, particularly in industries such as light manufacturing and automotive, which could impact sales and operational sustainability[112]. - The cost of raw materials constitutes over 70% of the production costs, making the company vulnerable to price volatility in materials like hot-rolled steel and cold-rolled alloy steel[113]. - The company relies on a concentrated supplier base, with the top five suppliers accounting for over 50% of total procurement, posing risks to raw material supply stability[114]. - The sales model is predominantly through distributors, which may limit the company's control over customer demand and expose it to risks if key distributors terminate their relationships[117]. - There is a risk of existing die-cutting tools being replaced by advanced laser cutting technologies, necessitating timely innovation and product launches[121]. Compliance and Governance - The company has established a comprehensive information disclosure system, ensuring transparency and compliance with regulatory requirements[16]. - The company has engaged Huatai United Securities as its sponsor, enhancing its credibility in the market[16]. - The company has committed to complying with all relevant laws and regulations regarding shareholding and transfer commitments[139]. - The company has established a framework to avoid conflicts of interest and protect the rights of other shareholders[143]. - The company has established clear guidelines for the methods of share reduction, including market trading and block trades[141]. Shareholder Commitments - The company has committed to a lock-up period of 36 months from the date of listing, during which shareholders cannot transfer or manage their shares[133]. - Shareholders are limited to transferring no more than 25% of their shares annually while serving as directors or senior management[135]. - The company will ensure that all commitments align with the regulations of the Shenzhen Stock Exchange[135]. - The company will repurchase shares to stabilize stock prices, with the repurchase funds not less than 20% of the previous year's audited net profit attributable to shareholders[145]. - The company will announce any share repurchase plan within 2 trading days after the board's decision[147]. Operational Highlights - The company has established a comprehensive internal control system to protect shareholder interests and ensure accurate information disclosure[185]. - The company has actively participated in pandemic prevention efforts, donating 600,000 yuan to local organizations for COVID-19 control[187]. - The company has not faced any bankruptcy restructuring or delisting risks during the reporting period, reflecting financial stability[165]. - The company has not reported any significant matters requiring explanation during the reporting period[190]. - The company has maintained a consistent audit relationship with the accounting firm for four years, ensuring reliability in financial reporting[164].