Financial Performance - The company's operating revenue for 2021 was ¥511,640,831.43, representing a 16.78% increase compared to ¥438,111,687.30 in 2020[18] - The net profit attributable to shareholders for 2021 was ¥51,554,380.19, a 5.06% increase from ¥49,072,141.86 in 2020[18] - The net cash flow from operating activities was negative at ¥-97,206,925.43, a significant decline of 332.61% compared to ¥41,788,850.38 in 2020[18] - The total assets at the end of 2021 amounted to ¥855,815,290.55, reflecting a 44.56% increase from ¥592,022,311.24 at the end of 2020[18] - The net assets attributable to shareholders increased by 46.89% to ¥564,581,712.68 at the end of 2021, up from ¥384,351,643.80 at the end of 2020[18] - The basic earnings per share for 2021 was ¥0.7, a decrease of 10.26% from ¥0.78 in 2020[18] - The weighted average return on net assets was 10.87%, down from 13.66% in 2020, indicating a decline of 2.79%[18] Revenue Breakdown - The company's total revenue for Q1 was approximately ¥86.93 million, Q2 was ¥147.36 million, Q3 was ¥130.08 million, and Q4 was ¥147.27 million[20] - Net profit attributable to shareholders for Q1 was approximately ¥8.47 million, Q2 was ¥17.98 million, Q3 was ¥10.58 million, and Q4 was ¥14.53 million[20] - The transformer business accounted for ¥483.92 million, or 94.58% of total revenue, with a year-on-year growth of 19.74%[68] - The sales volume of the transformer business increased by 24.35% to ¥389.62 million, while production volume rose by 53.81% to ¥438.82 million[71] - The domestic market contributed ¥505.44 million, or 98.79% of total revenue, with an 18.81% increase from the previous year[68] Cash Flow and Investments - The company's operating cash inflow for 2021 was CNY 240,203,424.26, an increase of 16.47% compared to 2020[83] - Operating cash outflow increased by 105.18% to CNY 337,410,349.69, leading to a net cash flow from operating activities of -CNY 97,206,925.43, a decrease of 332.61%[83] - Investment cash inflow surged by 73,337.83% to CNY 102,592,647.21, while investment cash outflow rose by 870.86% to CNY 124,126,748.30, resulting in a net cash flow from investing activities of -CNY 21,534,101.09[83] - The net cash flow from financing activities increased significantly to CNY 148,360,605.01, a change of -762.72% compared to the previous year, primarily due to public stock issuance[83] Research and Development - Research and development expenses increased by 4.34% to ¥16,570,335.31 in 2021 compared to ¥15,881,403.09 in 2020[78] - The number of R&D personnel increased by 7.14% to 30, with a notable rise in the number of bachelor's degree holders from 7 to 11, representing a 57.14% increase[81] - The company is developing high-efficiency silicon steel transformers, which are expected to significantly enhance market share in the energy-efficient transformer sector[80] - The company is also focusing on low-noise amorphous alloy transformers, which will expand its market presence in areas with high noise requirements[81] Product Development and Market Strategy - The company is focused on the development of energy-efficient transformers and related products, which are crucial for the power supply and distribution industry[28] - The company aims to increase the proportion of high-efficiency energy-saving transformers in operation by 10% by 2023, with a target of 75% for newly added transformers[31] - The company plans to extend its product types into more fields, focusing on the application of amorphous and nanocrystalline materials in energy-saving electrical equipment[42] - The company is actively expanding into the power electronics component sector, developing new nanocrystalline soft magnetic materials to meet industry demands for high-frequency and low-energy consumption[54] Corporate Governance - The company maintains complete independence from its controlling shareholders in terms of assets, personnel, finance, organization, and business operations[119] - The board of directors operates independently, adhering to regulations and ensuring no interference from controlling shareholders in decision-making processes[119] - The company emphasizes transparency in information disclosure, ensuring timely and accurate communication with all shareholders[120] - The company has established four specialized committees under the board to provide scientific and professional advice for decision-making[116] Social Responsibility and Environmental Impact - The company emphasizes environmental protection and has installed ventilation and dust removal equipment in its facilities[156] - The company aims to balance economic, environmental, and social responsibilities while enhancing its corporate image and competitiveness[156] - The company donated RMB 100,000 to the Red Cross Society of Jiangyan District for the "Happy Jiangcheng" public welfare project in March 2021[159] Employee Management - The total number of employees at the end of the reporting period was 271, with 225 in the parent company and 45 in major subsidiaries[142] - Employee training programs are emphasized, including onboarding, skills enhancement, and management training to improve overall employee capabilities[145] - The company has established a comprehensive human resources management system to attract talent through competitive compensation and benefits[157] Shareholder Information - The company distributed a cash dividend of 1.00 yuan per 10 shares, totaling 8,400,000 yuan, which represents 100% of the distributable profit[146] - The total distributable profit for the year was 105,460,023.49 yuan[146] - The largest shareholder, Cheng Junming, holds 32.50% of the shares, totaling 27,300,000 shares[196] - The second-largest shareholder, Zhao Henglong, owns 13.93% of the shares, amounting to 11,700,000 shares[196]

Financial Performance - The company's revenue for Q3 2021 was ¥130,075,249.63, representing an increase of 11.20% compared to the same period last year[5] - The net profit attributable to shareholders for Q3 2021 was ¥10,575,076.02, up by 5.16% year-on-year[5] - The net profit after deducting non-recurring gains and losses decreased by 36.69% to ¥6,237,129.02 in Q3 2021[5] - Total operating revenue for Q3 2021 reached ¥364,368,804.88, an increase of 14.93% compared to ¥317,006,424.01 in the same period last year[20] - Net profit for Q3 2021 was ¥37,021,468.23, representing a 4.58% increase from ¥35,399,195.11 in Q3 2020[22] Assets and Liabilities - The total assets at the end of Q3 2021 reached ¥730,991,459.66, a growth of 23.47% from the end of the previous year[5] - Current assets totaled CNY 619,909,781.00, up from CNY 491,434,757.95, indicating a growth of about 26.1% year-over-year[18] - Total liabilities decreased to CNY 180,942,658.94 from CNY 207,670,667.44, a reduction of about 12.9%[19] - The total equity attributable to shareholders increased to CNY 550,048,800.72 from CNY 384,351,643.80, reflecting a growth of approximately 43.1%[19] Cash Flow - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥76,634,899.01, down by 2,331.01% year-on-year[10] - The net cash flow from operating activities was -¥76,634,899.01, a decline from -¥3,152,391.13 in the previous year[26] - Cash and cash equivalents at the end of Q3 2021 totaled ¥22,430,584.41, compared to ¥19,944,767.59 at the end of Q3 2020[26] - The net cash flow from financing activities was ¥102,143,906.95, a significant improvement from -¥1,380,250.53 in Q3 2020[26] Share Capital and Earnings - The company issued 21 million new shares, increasing its share capital to ¥84,000,000.00, a rise of 33.33%[9] - The basic earnings per share for Q3 2021 was ¥0.13, reflecting a decrease of 18.75% compared to the same period last year[5] - Basic and diluted earnings per share for Q3 2021 were both ¥0.53, down from ¥0.57 in the same quarter last year[22] Expenses and Subsidies - The company received government subsidies amounting to ¥5,360,100.00 during the reporting period[7] - The company reported a significant increase in other income, with a rise of 297.37% to ¥5,464,531.05, primarily from one-time government subsidies[9] - The company reported a decrease in sales expenses to ¥6,705,818.86 from ¥11,182,813.30 in Q3 2020, a reduction of 40.92%[20] - Research and development expenses increased to ¥11,253,886.85, up 7.19% from ¥10,499,169.86 in the previous year[20] Inventory and Receivables - Inventory increased by 47.2% to ¥110,946,322.04 due to rising raw material prices[9] - Accounts receivable increased to CNY 379,205,323.23 from CNY 313,647,213.51, reflecting a growth of about 20.9%[17] - Inventory rose to CNY 110,946,322.04, compared to CNY 75,372,294.35, marking an increase of approximately 47.2%[17] - The company reported a significant increase in prepayments, which rose to CNY 21,561,245.29 from CNY 4,623,975.64, indicating a growth of about 366.5%[17]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥234,293,555.25, representing a 17.13% increase compared to ¥200,036,039.62 in the same period last year[21]. - The net profit attributable to shareholders was ¥26,446,392.21, a slight increase of 1.89% from ¥25,956,950.56 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥26,542,970.03, which is an 11.02% increase from ¥23,907,496.97 in the previous year[21]. - The company's total assets at the end of the reporting period reached ¥789,991,772.70, marking a 33.44% increase from ¥592,022,311.24 at the end of the previous year[21]. - The net assets attributable to shareholders increased by 40.36% to ¥539,473,724.70 from ¥384,351,643.80 at the end of the previous year[21]. - The basic earnings per share for the reporting period was ¥0.42, up 2.44% from ¥0.41 in the previous year[21]. - The gross profit margin for energy-saving transformers was 25.80%, with a slight increase of 0.01% year-on-year, while the gross profit margin for non-crystalline and nano-crystalline magnetic electronic components was 42.42%, up by 2.86% year-on-year[64]. - The company reported a significant increase in cash flow from financing activities, amounting to ¥149,975,253.89, a staggering increase of 3,107.49% compared to the previous year[62]. - The company's inventory rose to ¥107,236,356.87, representing 13.57% of total assets, due to increased stockpiling of raw materials in response to rising prices[69]. - The company reported a total of 24,659 common shareholders at the end of the reporting period[136]. Operational Challenges - The company reported a negative net cash flow from operating activities of ¥41,789,109.59, a significant decline of 408.16% compared to a negative cash flow of ¥8,223,586.20 in the same period last year[21]. - The average procurement price of key raw materials has been on the rise, which significantly impacts the company's gross profit margin[90]. - The company faces significant risks from macroeconomic changes, particularly in the power distribution and control equipment manufacturing industry, which is heavily influenced by national infrastructure investment[86]. - The company is exposed to market competition risks, particularly from established players in the energy-saving transformer and magnetic electronic components sectors[88]. - The company acknowledges the risk of diluted return on equity due to increased net assets from public stock issuance, which may not yield immediate benefits[94]. Strategic Initiatives - The company focuses on energy-efficient electrical machinery manufacturing, with key products including energy-saving transformers and magnetic components[29]. - The company plans to expand its market presence in the electronic components sector, enhancing its core competitiveness[29]. - The company plans to extend its product types into more fields while adhering to its core business of energy-efficient transformers[34]. - The company aims to diversify its product structure and market strategy to mitigate risks associated with potential declines in sales due to fluctuations in the power industry investment scale[89]. - The company is actively developing new energy-saving transformer products and electronic products to enhance profitability and respond to market demand changes[92]. - The company plans to establish a high-end amorphous and nanocrystalline industry research and development center to enhance its innovation capabilities in the electronic sector[93]. - The company is exploring potential mergers and acquisitions to accelerate growth and market expansion[175]. Research and Development - The company has developed a series of innovative technologies, including "amorphous core and nanocrystalline core annealing technology" and "noise control technology for amorphous alloy transformers," leading to superior performance in key metrics[47]. - The company has established a complete industrial chain from "strip - magnetic core - electronic components" since 2018, aiming to enhance profitability and product variety[34]. - The company’s research and development investment increased by 5.86% to ¥7,174,956.26, reflecting its commitment to innovation[62]. - The company focuses on high-efficiency energy-saving electrical machinery manufacturing and solutions for non-crystalline and nano-crystalline magnetic electronic components[34]. - The company has built an advanced production line for non-crystalline cores, enhancing the production of silicon steel cores through accumulated experience and technology[33]. Corporate Governance - The company does not plan to distribute cash dividends or issue bonus shares for this reporting period[5]. - There were no changes in the company's board of directors, supervisors, or senior management during the reporting period[99]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[101]. - The company has not engaged in any investor relations activities during the reporting period[95]. - The annual shareholders' meeting held on May 14, 2021, had an investor participation rate of 78.09%[98]. Social Responsibility - The company actively engages in social responsibility initiatives, including a donation of 100,000 RMB to the Red Cross Society for community projects[103]. Financial Reporting - The half-year financial report has not been audited[109]. - The financial report for the first half of 2021 was not audited[147]. - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements accurately reflect its financial position and operating results[191]. - The company’s financial reporting is conducted in RMB, with a focus on short operating cycles of 12 months for asset and liability liquidity classification[194].