[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Q3 2021 saw an 8.60% YoY revenue increase but a 7.67% decline in net profit attributable to the parent, while year-to-date revenue grew 26.30% and net profit 15.59%, with total assets and equity significantly increasing due to IPO proceeds Key Financial Indicators for Q3 2021 and Year-to-Date | Indicator | Current Period (Q3 2021) | Year-to-Date (YTD 2021) | | :--- | :--- | :--- | | **Operating Revenue** | 98.36 million yuan (YoY +8.60%) | 290.89 million yuan (YoY +26.30%) | | **Net Profit Attributable to Shareholders of Listed Company** | 19.77 million yuan (YoY -7.67%) | 59.10 million yuan (YoY +15.59%) | | **Net Profit After Deducting Non-Recurring Gains and Losses** | 19.41 million yuan (YoY -9.53%) | 55.79 million yuan (YoY +13.83%) | | **Net Cash Flow from Operating Activities** | - | 57.18 million yuan (YoY +9.89%) | | **Basic Earnings Per Share (yuan/share)** | 0.35 (YoY -30.80%) | 1.20 (YoY +0.84%) | | **Total Assets (End of Period)** | 855.01 million yuan (+116.65% vs. Year-start) | - | | **Total Equity Attributable to Shareholders of Listed Company (End of Period)** | 757.21 million yuan (+181.11% vs. Year-start) | - | [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=(II)%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date non-recurring gains and losses totaled 3.31 million yuan, primarily from government grants and entrusted investment income, contributing to current net profit Year-to-Date Non-Recurring Gains and Losses Items | Item | Amount (yuan) | | :--- | :--- | | Government grants recognized in current profit or loss | 2,730,950.00 | | Gains or losses from entrusted investments or asset management | 558,599.55 | | Net non-operating income and expenses | 626,014.91 | | **Total** | **3,311,766.25** | [Analysis of Changes in Key Financial Indicators](index=2&type=section&id=(III)%20Analysis%20of%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Significant changes in financial indicators during the reporting period were primarily driven by the company's IPO, which boosted cash and financing cash flow, facilitated debt repayment, increased investments in financial products and projects, and supported revenue growth from increased business orders - Balance sheet item changes primarily influenced by IPO - **Cash and cash equivalents** increased by 953.03% due to IPO proceeds received[8](index=8&type=chunk) - **Financial assets held for trading** increased by 1150.00% from using part of the IPO proceeds to purchase wealth management products[8](index=8&type=chunk) - **Construction in progress** increased by 68.49% due to continuous investment in IPO-funded projects[8](index=8&type=chunk) - **Short-term borrowings** decreased by 75.00% as part of the bank loans were repaid using IPO proceeds[8](index=8&type=chunk) - Income statement item changes primarily due to business expansion - **Operating revenue** increased by 26.30% year-over-year due to increased business orders[10](index=10&type=chunk) - **Selling expenses, administrative expenses, and R&D investment** increased by 40.91%, 33.01%, and 30.43% year-over-year, respectively, aligning with business scale expansion and increased R&D efforts[10](index=10&type=chunk) - **Financial expenses** significantly decreased by 601.36% year-over-year, mainly due to increased deposit interest income and reduced borrowing interest expenses post-IPO[10](index=10&type=chunk) - Cash flow statement item changes also reflect IPO and subsequent fund utilization - **Net cash outflow from investing activities** increased by 728.27%, primarily due to increased purchases of wealth management products and investments in IPO-funded projects[11](index=11&type=chunk) - **Net cash inflow from financing activities** significantly increased by 1484.21%, mainly due to the receipt of IPO proceeds[11](index=11&type=chunk) [Shareholder Information](index=3&type=section&id=Item%20II.%20Shareholder%20Information) [Total Common Shareholders and Top Ten Shareholders' Holdings](index=3&type=section&id=(I)%20Total%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings) As of the reporting period end, the company had **6,252 common shareholders**, with a relatively concentrated equity structure where the largest shareholder held 48.07% and the top ten shareholders collectively held approximately 74.83% - As of the reporting period end, the company had **6,252 common shareholders**[13](index=13&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Shanghai Yining Investment Co., Ltd. | 48.07% | 27,459,054 | | Shanghai Xianghe Yongyuan Equity Investment Partnership | 5.10% | 2,913,472 | | Shanghai Yuwei Investment Co., Ltd. | 3.82% | 2,181,200 | | Zeng Lifeng | 3.12% | 1,780,560 | | Lv Haijun | 2.92% | 1,669,280 | [Other Significant Matters](index=4&type=section&id=Item%20III.%20Other%20Significant%20Matters) The company had no other significant matters requiring disclosure during the reporting period - The company had no other significant matters requiring disclosure in this reporting period[15](index=15&type=chunk) [Quarterly Financial Statements](index=4&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) [Consolidated Balance Sheet](index=4&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets reached **855.01 million yuan**, a 116.65% increase from the year-start, and equity attributable to shareholders grew 181.11% to **757.21 million yuan**, primarily due to IPO proceeds strengthening capital and reducing total liabilities Key Balance Sheet Item Changes | Item | September 30, 2021 (yuan) | December 31, 2020 (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | **Total Assets** | **855,009,461.81** | **394,653,428.52** | **+116.65%** | | **Total Liabilities** | **97,800,919.77** | **125,293,942.13** | **-21.94%** | | **Total Equity Attributable to Owners of the Parent Company** | **757,208,542.04** | **269,359,486.39** | **+181.11%** | [Consolidated Income Statement (Year-to-Date)](index=7&type=section&id=2.%20Consolidated%20Income%20Statement%20Year-to-Date) For the first three quarters of 2021, operating revenue reached **290.89 million yuan**, up 26.30% YoY, and net profit attributable to the parent company grew 15.59% to **59.10 million yuan**, driven by increased orders, though total operating costs grew faster than revenue, indicating cost pressures Key Income Statement Items (Year-to-Date) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 290,894,179.71 | 230,311,369.16 | +26.30% | | Total Operating Costs | 223,619,673.51 | 171,042,755.99 | +30.74% | | Operating Profit | 67,358,676.78 | 59,362,109.46 | +13.47% | | Net Profit Attributable to Owners of the Parent Company | 59,102,961.26 | 51,131,773.58 | +15.59% | [Consolidated Cash Flow Statement (Year-to-Date)](index=9&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) In the first three quarters of 2021, net cash flow from operating activities remained stable at **57.18 million yuan**, while investing activities resulted in a **126.88 million yuan** net outflow, and financing activities generated a **402.45 million yuan** net inflow from IPO, significantly boosting cash and cash equivalents to **367.00 million yuan** Key Cash Flow Statement Items (Year-to-Date) | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 57,182,081.91 | 52,036,519.20 | | Net Cash Flow from Investing Activities | -126,877,220.82 | -15,318,432.82 | | Net Cash Flow from Financing Activities | 402,446,871.70 | -29,074,071.00 | | **Net Increase in Cash and Cash Equivalents** | **332,379,003.65** | **7,673,353.17** | [Audit Report](index=11&type=section&id=(III)%20Audit%20Report) The company's Q3 2021 report is unaudited, consistent with standard quarterly reporting practices - The company's Q3 2021 report is **unaudited**[29](index=29&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was ¥192,532,470.45, representing a 37.78% increase compared to ¥139,736,339.91 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥39,337,837.50, up 32.35% from ¥29,723,686.37 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥36,383,465.83, reflecting a 32.03% increase from ¥27,557,647.22 in the same period last year[21]. - The basic earnings per share increased to ¥0.87, a rise of 26.09% compared to ¥0.69 in the previous year[21]. - Operating costs increased to ¥122,295,140.20, reflecting a 39.48% rise, primarily driven by the growth in operating revenue[57]. - The company reported a total profit of ¥45,258,706.45, up 32.4% from ¥34,165,601.40 in the first half of 2020[168]. - The company reported a net profit of approximately 48.35 million yuan, indicating a strong performance despite market challenges[85]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥871,955,116.44, a significant increase of 120.94% from ¥394,653,428.52 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were ¥763,150,524.63, up 183.32% from ¥269,359,486.39 at the end of the previous year[21]. - Total liabilities decreased to ¥108,804,591.81 from ¥125,293,942.13, reflecting a reduction of approximately 13%[160]. - The company's cash and cash equivalents amounted to ¥462,443,532.85, compared to ¥34,875,949.58 at the end of 2020, indicating a substantial increase of over 1200%[158]. Research and Development - Research and development investment rose to ¥9,546,573.51, marking a 43.12% increase as the company intensified its R&D efforts[58]. - The company has established a comprehensive R&D team and holds 78 domestic patents, including 7 invention patents, focusing on key production processes for metal and plastic fasteners[53]. - The company is increasing R&D investments to develop lightweight fasteners and special connectors for the new energy vehicle sector[91]. Market and Industry - The automotive industry in China saw a compound annual growth rate (CAGR) of 11.30% in vehicle sales from 2005 to 2019, with a total sales volume of 25.77 million vehicles in 2019[47]. - The demand for automotive fasteners accounts for approximately 23% of the total fastener industry sales, with a light vehicle requiring around 580 types of fasteners, totaling about 5,000 pieces[49]. - The automotive industry is experiencing a shift towards electric and lightweight technologies, creating new opportunities and challenges for automotive parts manufacturers[48]. Cash Flow and Financing - The net cash flow from financing activities was ¥439,645,003.49, a significant increase of 1,398.38% due to funds raised from the public offering of shares[58]. - Cash inflow from financing activities totaled CNY 530,568,912.70, compared to CNY 7,000,000.00 in the previous year, showing a dramatic increase[177]. - The company reported a total cash increase of CNY 427,567,581.75 during the first half of 2021, compared to CNY 14,108,682.68 in the same period of 2020[177]. Dividends and Shareholder Information - The company plans to distribute a cash dividend of ¥4.5 per 10 shares (including tax) to all shareholders based on 57,126,903 shares[6]. - The total distributable profit for shareholders as of June 30, 2021, was CNY 149,509,136.10[100]. - The cash dividend represents 100% of the total profit distribution[100]. Risk Management - The company faces risks from macroeconomic fluctuations, particularly in the automotive industry, which could impact order volumes and inventory management[87]. - The company has identified potential risks in its future operations and has outlined corresponding countermeasures in its report[6]. - The company is implementing measures to mitigate risks from raw material price fluctuations, particularly for steel and imported PA66[90]. Certifications and Quality Management - The company has received ISO 14001, ISO 9001, and IATF 16949 certifications, ensuring high-quality standards for automotive fasteners[53]. - The company has established a comprehensive quality management system to address potential quality control risks in automotive components[92]. Corporate Governance - The company has not experienced any significant changes in the feasibility of investment projects[77]. - There were no major asset or equity sales during the reporting period[83]. - The company has not engaged in derivative investments during the reporting period[82].