Financial Performance - The company's operating revenue for the first half of 2022 was ¥305,327,171.99, representing an increase of 85.53% compared to ¥164,571,196.56 in the same period last year[29]. - Net profit attributable to shareholders was ¥63,635,653.68, up 76.61% from ¥36,031,392.21 year-on-year[29]. - The net cash flow from operating activities reached ¥30,956,671.45, a significant increase of 10,180.88% compared to a negative cash flow of ¥307,083.02 in the previous year[29]. - Basic earnings per share rose to ¥0.9601, reflecting a growth of 32.45% from ¥0.7249 in the same period last year[29]. - Total assets at the end of the reporting period were ¥1,100,970,625.22, an increase of 12.81% from ¥975,913,268.48 at the end of the previous year[29]. - The company's net assets attributable to shareholders increased by 3.35% to ¥747,562,617.37 from ¥723,341,421.86 at the end of the previous year[29]. - The weighted average return on equity decreased to 8.43%, down 5.18% from 13.61% in the previous year[29]. - The company's comprehensive gross profit margin for the reporting period was 40.92%[116]. Market and Product Development - The circuit protection components market is experiencing rapid growth, driven by industries such as new energy vehicles and renewable energy[38]. - The company is focusing on expanding into the rail transit and new energy vehicle markets, aiming to become a leading player in these sectors[41]. - The company has established stable partnerships with major clients in the new energy vehicle sector, including Tesla and BYD[42]. - The company holds 168 national patents, including 3 invention patents and 161 utility model patents, enhancing its innovation capabilities[43]. - The company has a diverse product line with nearly 77 product series and over 8,000 specifications, primarily serving high-end markets[47]. - The company has received multiple awards for innovation and quality, including the "Top 10 Innovative Enterprises" in the new energy vehicle industry[43]. - The company can develop new products within 3-6 months and achieve mass delivery in 6-12 months, significantly ahead of foreign competitors[61]. - The company has a diverse product range with nearly 60 product series and over 6,000 specifications, catering to various market needs[63]. Financial Management and Investments - The total amount of raised funds is RMB 39,618.37 million, with RMB 7,531.77 million invested during the reporting period[85]. - Cumulative investment of raised funds reached RMB 22,932.26 million by the end of the reporting period[85]. - The investment in the "Intelligent Electrical Industry Base Construction" project is adjusted from RMB 22,448.40 million to RMB 23,117.71 million, with 44.47% of the investment progress achieved[90]. - The investment in the "R&D Center Construction" project is adjusted from RMB 3,784.65 million to RMB 4,105.84 million, with 40.21% of the investment progress achieved[90]. - The company has permanently supplemented working capital with RMB 1,000 million of over-raised funds, achieving 100% of the planned investment[90]. - The company has a balance of RMB 2,521.76 million in idle raised funds for cash management as of June 30, 2022[89]. - The company has not changed the purpose of raised funds, maintaining a 0.00% change ratio[85]. Strategic Outlook and Future Plans - The company provided a future outlook, projecting a revenue growth of 10-15% for the next quarter[152]. - New product launches are expected to contribute an additional 50 million RMB in revenue over the next six months[153]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[155]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 100 million RMB allocated for potential deals[156]. - The company plans to enhance R&D capabilities and shorten product development cycles by expanding laboratory equipment resources[101]. Corporate Governance and Compliance - The company held its first extraordinary shareholders' meeting of 2022 on February 10, with a participation rate of 55.66%[125]. - The annual shareholders' meeting on May 16, 2022, had a participation rate of 55.30%[125]. - The company has elected a new board of directors and supervisory board on May 10, 2022[129]. - The company has committed to not transferring or entrusting the management of its shares for 12 months post-IPO, with a lock-up period extending to July 14, 2024[169]. - The company guarantees to avoid any form of related party transactions or fund occupation, adhering strictly to relevant laws and regulations[187]. - The company has outlined responsibilities for its directors to vote in favor of share repurchase decisions as per the stabilization plan[199]. Risks and Challenges - The company faced risks from intensified industry competition, with its revenue growth of 97.91% lagging behind the 118.20% growth in the new energy vehicle sector[111]. - The company will strengthen customer credit management and increase efforts to recover accounts receivable to mitigate financial risks[120]. - The company aims to improve its product development and iteration capabilities to maintain competitive advantages amid changing industry policies[114].

Group 1: Company Overview and Market Position - Xi'an Zhongrong Electric Co., Ltd. holds a leading market share in the domestic electric fuse sector, with significant advantages in high-end segments such as new energy vehicles and renewable energy [1] - The company has entered the supply chains of major international players like Tesla and Daimler, and is establishing subsidiaries in South Korea and Germany to enhance overseas market expansion [1] Group 2: Financial Performance and Growth - In Q1 2022, the company's performance increased significantly, driven by rapid growth in markets such as new energy vehicles, renewable energy, and rail transportation [2] - The company's revenue from high-quality fuse products accounted for 7.24% of total revenue in 2021, with R&D investment reaching 27.8683 million yuan, a 90.26% increase compared to the previous year [1] Group 3: R&D and Innovation - The company has established a comprehensive technical system covering product design, material application, process manufacturing, and product testing, supported by a mature technical team with multiple core proprietary technologies [1] - As of the end of 2021, the company had multiple invention patents in the application process, indicating a strong commitment to innovation [1]

Financial Performance - The company's operating revenue for Q1 2022 was ¥146,029,074.29, representing a 105.01% increase compared to ¥71,228,694.04 in the same period last year[3] - The net profit attributable to shareholders for Q1 2022 was ¥33,242,358.55, an increase of 85.44% from ¥17,925,750.94 in the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥31,451,376.41, up 92.01% from ¥16,380,140.32 year-on-year[3] - Basic earnings per share for Q1 2022 were ¥0.5016, reflecting a 39.10% increase from ¥0.3606 in the previous year[3] - Total operating revenue for the first quarter was CNY 146,029,074.29, a significant increase from CNY 71,228,694.04 in the same period last year, representing a growth of approximately 105.5%[24] - Net profit for the first quarter reached CNY 33,242,358.55, compared to CNY 17,925,750.94 in the previous year, reflecting an increase of approximately 85.1%[27] - Earnings per share (EPS) for the first quarter was CNY 0.5016, up from CNY 0.3606 in the same quarter last year, marking a growth of about 39.0%[27] Cash Flow - The company's cash flow from operating activities was -¥11,092,450.57, a decline of 139.66% compared to -¥4,628,374.67 in the same period last year[3] - Cash inflow from operating activities rose by 89.20% to ¥11,219.88 million, primarily due to increased sales collections[10] - The company reported cash inflow from investment activities of CNY 328,800,000.00, a significant increase from CNY 30,000,000.00 in the same period last year[30] - The net cash flow from investment activities was CNY 53,522,203.33, an increase from CNY 5,970,140.30 in the previous period[32] - The net increase in cash and cash equivalents for the period was CNY 42,319,635.81, compared to CNY 1,413,403.18 in the previous period[32] - The ending balance of cash and cash equivalents reached CNY 105,903,575.37, up from CNY 22,478,957.43 at the end of the previous period[32] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,046,459,090.87, a 7.23% increase from ¥975,913,268.48 at the end of the previous year[3] - Total liabilities increased to CNY 289,540,605.78 from CNY 252,571,846.62, reflecting a growth of about 14.6% year-over-year[24] - Current liabilities increased to ¥289,003,505.81 from ¥251,980,440.75, an increase of 14.67%[21] - Non-current assets totaled ¥217,911,500.92, up from ¥189,265,127.79, marking a 15.12% increase[21] - The company reported a significant increase in inventory, rising to ¥128,604,004.14 from ¥115,983,375.11, a growth of 10.67%[20] Research and Development - The company's R&D expenses increased by 82.41% to ¥772.29 million, driven by new product and technology development activities[10] - Research and development expenses for the quarter were CNY 7,722,866.58, compared to CNY 4,233,933.01 in the previous year, indicating an increase of approximately 82.8%[26] Shareholder Information - Total number of common stock shareholders at the end of the reporting period is 7,488[13] - The largest shareholder, Fang Guangwen, holds 13.50% of shares, totaling 8,949,000 shares[13] - The number of preferred stock shareholders at the end of the reporting period is not applicable[18] Strategic Focus - The company is focusing on market expansion and new product development strategies[19] - The company aims to expand its market presence and enhance product development in the upcoming quarters, focusing on innovation and strategic partnerships[26] Operating Costs - The company reported a 117.34% increase in operating costs to ¥88,766,400.00, attributed to rising raw material prices and increased labor costs[10] - Total operating costs amounted to CNY 107,790,948.91, up from CNY 52,848,022.55, indicating an increase of about 103.5% year-over-year[24] Audit Information - The company did not conduct an audit for the first quarter report[33]

Financial Performance - The company reported a profit distribution plan of 6.00 RMB per 10 shares (including tax) for all shareholders, based on a total of 66,277,427 shares[6]. - The company's operating revenue for 2021 was ¥384,916,466.51, representing a 70.14% increase compared to ¥226,232,662.02 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥80,476,737.63, a 45.30% increase from ¥55,385,255.94 in 2020[25]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥67,703,131.68, up 44.78% from ¥46,762,780.81 in 2020[25]. - The total assets at the end of 2021 reached ¥975,913,268.48, a significant increase of 160.71% from ¥374,333,380.06 at the end of 2020[25]. - The net assets attributable to shareholders at the end of 2021 were ¥723,341,421.86, reflecting a 193.23% increase from ¥246,681,027.29 at the end of 2020[25]. - The company reported a basic earnings per share of ¥1.36 for 2021, which is a 22.52% increase compared to ¥1.11 in 2020[25]. - The company experienced a net cash flow from operating activities of ¥25,069,510.44 in 2021, an 11.17% increase from ¥22,549,647.29 in 2020[25]. Market Position and Strategy - The company is focusing on high-end markets in the circuit protection device sector, particularly in emerging industries such as new energy vehicles and renewable energy[39]. - The company has established stable partnerships with major clients in the new energy vehicle supply chain, including Tesla and BYD[42]. - The rapid development of industries such as new energy and digital technology is expected to drive further growth in the fuse market, with increasing demands for performance and reliability[39]. - The company has established a clear strategic layout, focusing on emerging industries and continuously developing new products to capture market demand[54]. - The company has entered the new energy vehicle market early, supplying major domestic and international brands, including Tesla and Daimler[55]. - The company has gained significant market share in the domestic electric fuse market, with a strong competitive advantage in high-end segments like new energy vehicles and renewable energy[57]. - The company has established partnerships with industry leaders such as Ningde Times and Huawei, indicating strong market relationships in the renewable energy sector[57]. Research and Development - The company holds a total of 135 national patents, including 2 invention patents and 129 utility model patents, demonstrating a strong focus on technology research and innovation[43]. - The company has developed nearly 60 product series and over 6,000 product specifications, primarily serving high-end markets such as new energy vehicles and renewable energy[47]. - The company has a mature technical team of nearly 120 professionals, with a focus on talent development and innovation[63]. - Research and development expenses rose by 90.26% year-on-year to 27.87 million yuan, driven by increased activities in new product and technology development[85]. - The number of R&D personnel increased by 71.43% to 120 in 2021, with a higher proportion of staff holding bachelor's degrees[89]. - The company aims to enhance its R&D efforts and develop new products, particularly in the high-end market for power fuses, while expanding into new fields such as rail transit and renewable energy[190]. - New product development will focus on innovative fuses and smart fuses to cultivate new growth points for the company[197]. Operational Efficiency - The company has a robust sales model, primarily focusing on direct sales while also leveraging distributors to expand market coverage[50]. - The company has a strict supplier evaluation process to ensure the quality and reliability of raw materials, which is crucial for maintaining product standards[48]. - The company achieved total operating revenue of ¥384,916,466.51 in 2021, representing a year-on-year increase of 70.14% compared to ¥226,232,662.02 in 2020[70]. - The company's sales volume of electric fuses reached 1,393.25 million units in 2021, a year-on-year increase of 56.78% compared to 888.67 million units in 2020[76]. - The production volume of electric fuses was 1,601.5 million units in 2021, up 79.26% from 893.41 million units in 2020[76]. - The company's operating costs increased by 80.06% year-on-year to 228.49 million yuan, with the cost of electric fuses and accessories accounting for 98.30% of total operating costs[80]. - The company's direct sales to customers accounted for 79.65% of total revenue, amounting to ¥306,579,015.72, reflecting a year-on-year growth of 84.83%[70]. Financial Management - The company reported a total of 39,618.37 million RMB raised from its initial public offering, with a net amount of 396,183,656.94 RMB after deducting issuance costs[115]. - The company plans to use up to 35,000 million RMB of idle raised funds for cash management, ensuring it does not affect project construction and normal operations[119]. - The company has not changed the purpose of the raised funds, with a cumulative change amount of 0[115]. - The company raised a net amount of RMB 396.18 million from its initial public offering, with an excess of RMB 33.85 million allocated for other uses[141]. - As of December 31, 2021, the company had an unused balance of RMB 230.87 million from idle raised funds for cash management, with RMB 13.02 million remaining in the special account[181]. Future Outlook - The company plans to focus on the rapidly growing circuit protection component market, particularly in the electric vehicle sector, which is projected to account for 20% of new car sales in China by 2025[189]. - The company will invest in the development of intelligent fuses and accelerate the mass production process, while also exploring long-term smart automotive technology needs[193]. - The company will maintain a focus on market demand and actively explore new customer needs while adhering to national industrial policies[192]. - In 2022, the company will move to a new facility with an area of approximately 69,000 square meters, aimed at improving production management and quality control[195]. - The company will continue to increase R&D investment to upgrade and optimize main products, meeting market and customer demands[197]. - The company aims to enhance its strategic research foresight and improve its R&D innovation capabilities and market competitiveness[197]. - In 2022, the company plans to further improve its performance evaluation system to ensure effective operation[200].

Revenue and Profit - Revenue for Q3 2021 reached ¥100,946,881.15, an increase of 60.74% compared to the same period last year[4] - Net profit attributable to shareholders was ¥20,067,760.52, a decrease of 11.46% year-over-year[4] - The net profit after deducting non-recurring gains and losses was ¥15,330,081.34, a slight decrease of 0.25% compared to the previous year[4] - The company reported a basic earnings per share of ¥0.3303, down 27.56% year-over-year[4] - The net profit for the current period was ¥56,099,152.73, up from ¥39,353,146.17 in the previous period, reflecting a growth of approximately 42.5%[34] - The company's earnings per share (EPS) for the current period was ¥1.0507, compared to ¥0.7917 in the previous period, reflecting an increase of about 32.7%[38] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥917,836,345.08, reflecting a significant increase of 145.19% from the end of the previous year[4] - The company's total assets reached ¥917,836,345.08, compared to ¥374,333,380.06 in the previous period, showing an increase of around 145.0%[30] - The company's total liabilities amounted to ¥218,872,508.12, compared to ¥127,652,352.77 in the previous period, showing an increase of around 71.5%[30] - The total current liabilities increased to RMB 185,526,256.90 from RMB 127,141,097.20, representing a growth of about 46%[26] - Long-term borrowings amounted to RMB 30,161,607.45, indicating the company’s strategy to leverage debt for growth[26] Shareholders' Equity - Shareholders' equity reached ¥698,963,836.96, up 183.35% compared to the end of the previous year[4] - The total equity attributable to the parent company reached ¥698,963,836.96, a substantial rise from ¥246,681,027.29 in the previous period, marking an increase of approximately 183.5%[30] - The capital reserve surged by 440.77% to ¥465,738,226.28, primarily from the premium on newly issued shares[10] Cash Flow - Cash flow from operating activities for the year-to-date was ¥22,927,040.64, a decrease of 15.36% compared to the same period last year[4] - The cash flow from operating activities was ¥217,420,785.65, compared to ¥150,332,839.01 in the previous period, representing an increase of approximately 44.6%[39] - The net cash flow from financing activities was significantly positive at ¥427,699,799.45, primarily due to funds raised from the IPO[10] - Cash inflow from financing activities totaled ¥450,788,588.58, significantly higher than ¥6,000,000.00 in the previous period[45] Operating Performance - The company's operating revenue increased by 78.45% to ¥265,518,077.71 compared to the previous period's ¥148,790,369.37, driven by increased demand in the new energy vehicle and renewable energy markets[10] - Operating costs rose by 88.70% to ¥152,824,784.00, attributed to the expansion of sales scale and rising prices of raw materials[10] - The total operating revenue for the current period reached ¥265,518,077.71, a significant increase from ¥148,790,369.37 in the previous period, representing an increase of approximately 78.5%[31] - The total operating costs for the current period were ¥208,100,666.48, compared to ¥111,015,434.82 in the previous period, indicating an increase of about 87.5%[31] Research and Development - Research and development expenses increased by 95.92% to ¥18,716,215.68, reflecting higher costs associated with new product development and IPO-related expenses[10] - Research and development expenses for the current period were ¥18,716,215.68, compared to ¥9,552,774.47 in the previous period, indicating an increase of about 96%[34] Government Subsidies - The company received government subsidies amounting to ¥5,008,387.10 during the reporting period[6] - The company received government subsidies related to assets, leading to a deferred income of ¥243,225.80[10] Share Issuance - The company issued new shares, resulting in a 33.34% increase in share capital to ¥66,277,427.00[10] - The company raised a total of RMB 443,744,600.00 from the issuance of 16,570,000 shares at a price of RMB 26.78 per share, with a net amount of RMB 396,183,656.94 after deducting issuance costs[19] Miscellaneous - The number of ordinary shareholders at the end of the reporting period was 8,053, with the largest shareholder holding 13.50% of the shares[14] - The company has not undergone an audit for the third quarter report[55] - The report indicates the first-time implementation of new leasing standards, although it is not applicable for retrospective adjustments[55]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 164,571,196.56, representing a 91.39% increase compared to CNY 85,988,456.43 in the same period last year[23]. - The net profit attributable to shareholders of the listed company reached CNY 36,031,392.21, a 115.91% increase from CNY 16,688,348.83 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 33,738,825.08, up 99.94% from CNY 16,874,700.00 in the previous year[23]. - The basic earnings per share increased to CNY 0.7249, reflecting a growth of 115.94% compared to CNY 0.3357 in the same period last year[23]. - The company's comprehensive gross margin for the reporting period was 42.98%, maintaining a high level[81]. - The total profit for the first half of 2021 was CNY 40,486,852.07, up from CNY 18,754,646.31 in the same period of 2020, representing a growth of about 116.0%[150]. - The company reported a total non-operating income of 2,292,567.13, with significant contributions from various sources including government subsidies and investment income[27]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 458,658,491.28, a 22.53% increase from CNY 374,333,380.06 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 282,712,419.50, up 14.61% from CNY 246,681,027.29 at the end of the previous year[23]. - The total liabilities as of June 30, 2021, were CNY 177,588,051.98, compared to CNY 128,233,549.58 at the end of 2020, which is an increase of approximately 38.5%[147]. - The company's accounts receivable amounted to CNY 135,265,363.86, representing 29.49% of total assets, compared to 32.33% in the previous year[61]. - Inventory increased to CNY 62,227,682.36, accounting for 13.57% of total assets, up from 13.16%[61]. - The construction in progress reached CNY 58,698,646.43, representing 12.80% of total assets, a significant increase from 3.71% in the previous year[61]. Cash Flow - The company reported a negative net cash flow from operating activities of CNY 307,083.02, a decline of 103.10% compared to a positive cash flow of CNY 9,918,657.23 in the same period last year[23]. - The net cash flow from investing activities was -CNY 18,234,241.73, an increase of 33.19% compared to -CNY 13,690,176.66, mainly due to investments in the smart electrical industry base construction project[57]. - The net cash flow from financing activities was CNY 9,999,033.33, a significant increase from -CNY 393.17, primarily due to new loans for the construction of new parks[57]. - Total cash inflow from operating activities was CNY 135,779,310.73, while cash outflow was CNY 136,086,393.75, resulting in a net cash flow of -CNY 307,083.02[158]. Research and Development - Research and development expenses increased by 82.90% to CNY 10,565,342.75, compared to CNY 5,776,619.66, driven by higher salaries, travel costs, and material expenses[56]. - The company plans to enhance its research and development efforts to improve new product development and iteration capabilities to maintain competitive advantages[77]. - The company can develop new products within 3-6 months and achieve mass delivery within 6-12 months, significantly ahead of foreign competitors[50]. Market Position and Strategy - The main business focus is on the research, production, and sales of fuses, with nearly 60 product series and over 6,000 specifications, primarily serving high-end markets such as new energy vehicles and renewable energy[30]. - The company has positioned itself as a leading player in the domestic power fuse industry, focusing on high-end markets and expanding into new sectors such as rail transit and new energy vehicles[39]. - Key clients in the new energy vehicle market include major manufacturers like Tesla and BYD, indicating strong market penetration[40]. - The company is actively expanding into international markets, leveraging its first-mover advantage in the new energy vehicle sector[44]. - The company has established stable partnerships with numerous domestic and international manufacturers, enhancing its reputation in the power fuse industry[54]. Quality Control and Certifications - The company has established a strict quality control system and has obtained multiple certifications, including IATF16949, ISO/TS22163, ISO9001, ISO14001, and OHSAS18001, making it one of the most certified companies in the domestic power fuse sector[53]. - The company has established a strict supplier evaluation process, ensuring that each type of raw material has 2-3 qualified suppliers to maintain product quality and reduce procurement risks[31]. Corporate Governance and Compliance - The company has not made any changes to its registered information during the reporting period[22]. - The company has not faced any environmental penalties during the reporting period and complies with environmental protection laws[94]. - The company has not engaged in any major related party transactions during the reporting period[105]. - The company has no significant litigation or arbitration matters during the reporting period[104]. Share Capital and Ownership - The company reported a total of 1,657,000 shares issued at a price of RMB 26.78 per share, raising a total of RMB 443,744,600, with a net amount of RMB 396,183,656 after deducting issuance costs[124]. - The company’s total share capital remains at 49,707,427 shares, with no changes during the reporting period[123]. - The company has maintained a diverse shareholder base, with multiple stakeholders holding varying percentages of ownership[178].