Financial Performance - The company's operating revenue for 2021 was CNY 2,482,527,353.49, representing a 0.88% increase compared to CNY 2,460,987,155.50 in 2020[19] - The net profit attributable to shareholders for 2021 was CNY 79,612,979.86, a decrease of 15.02% from CNY 93,685,073.27 in the previous year[19] - The net cash flow from operating activities was negative CNY 300,929,345.05, a decline of 170.85% compared to CNY 424,737,059.12 in 2020[19] - Basic earnings per share for 2021 were CNY 0.39, down 25.00% from CNY 0.52 in 2020[19] - The total assets at the end of 2021 were CNY 2,485,448,982.35, a decrease of 3.36% from CNY 2,571,898,692.81 at the end of 2020[19] - The net assets attributable to shareholders increased by 42.43% to CNY 1,073,591,715.69 from CNY 753,791,577.46 in 2020[19] - The company reported a weighted average return on equity of 8.91% for 2021, down from 13.25% in 2020[19] - The company achieved a gross margin of 11.25% for the internal combustion engine sector, which is a decrease of 1.40% compared to the previous year[43] - The company reported a total profit margin with no significant defects in financial reporting, indicating a robust internal control system[134] Revenue Sources - The revenue from diesel engines and related parts accounted for 99.43% of total operating revenue, amounting to approximately ¥2.47 billion, with a year-on-year increase of 0.77%[40] - The company reported a revenue of 7,096 million yuan from the sale of diesel engines, with a gross margin of 36.79%[157] Research and Development - The company has a dedicated R&D institution that collaborates with external technical teams and universities to enhance product development capabilities[34] - Research and development expenses increased by 9.02% to ¥84,737,921.15 compared to the previous year[50] - The number of R&D personnel rose by 19.23% to 186, with R&D personnel now accounting for 11.47% of the total workforce[52] - The company is committed to enhancing its R&D capabilities and product innovation through the upgrade of its R&D center[84] - The company has maintained a strong focus on R&D, increasing its investment in technology and innovation to enhance product performance and meet diverse customer needs[37] Market Position and Strategy - The company has a strong market position, ranking first in the multi-cylinder diesel engine segment for construction machinery, indicating a clear competitive advantage[36] - The company anticipates favorable market opportunities due to ongoing infrastructure investments and agricultural policy support[33] - The company plans to upgrade its production line to meet the national IV emission standards, positioning itself competitively in the high-end market[84] - The company will continue to strengthen cooperation with existing customers while exploring new markets, including overseas and new application fields like marine[85] Governance and Compliance - The company has a transparent information disclosure system, ensuring all investors have equal access to information[92] - The company has implemented strict governance structures to protect the rights of minority shareholders[89] - The company maintains complete independence from its controlling shareholder in business, personnel, assets, and finance[93] - The company has independent financial management, with no interference from the controlling shareholder in financial activities[94] - The company has established a comprehensive governance structure, ensuring compliance with laws and regulations, and enhancing operational standards[135] Employee and Management Structure - The total number of employees at the end of the reporting period is 1,622, with 1,081 in production, 54 in sales, 186 in technology, 19 in finance, and 282 in administration[122][123] - The company emphasizes a performance-based compensation system that includes basic salary, allowances, overtime pay, bonuses, and various benefits[124][125] - The company has established a multi-layered incentive mechanism to attract and retain talented management and technical personnel[90] - The current management team includes 5 directors and 3 supervisors, with no changes in personnel during the reporting period[98] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue increase of 10% to 1.32 billion yuan[110] - The company plans to invest in the construction of a production facility for 300,000 sets of key components for green smart engines[80] - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[111] Environmental and Social Responsibility - The company has implemented effective waste and emissions management systems, demonstrating its commitment to environmental protection[139] - The company emphasizes employee rights protection, adhering to labor laws and providing comprehensive social insurance for employees[139] - There were no major environmental penalties reported during the period, reflecting the company's commitment to environmental compliance[138] Audit and Financial Integrity - Zhejiang Xinchai Co., Ltd. received a standard unqualified audit opinion for its 2021 financial statements[197] - The audit report was signed on April 26, 2022, by Lixin Certified Public Accountants[197] - The financial statements fairly reflect the company's financial position as of December 31, 2021, and its operating results for the year 2021[199]

Financial Performance - The company's operating revenue for Q3 2021 was ¥479,909,223.13, a decrease of 26.28% compared to the same period last year[4] - The net profit attributable to shareholders was ¥10,749,359.28, down 55.14% year-on-year[4] - The net profit after deducting non-recurring gains and losses was ¥6,864,657.98, a decline of 62.14% compared to the previous year[4] - The basic earnings per share decreased by 61.54% to ¥0.05[5] - Net profit for Q3 2021 was ¥52,301,995.13, a decrease of 17.5% from ¥63,383,691.80 in Q3 2020[20] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,550,164,395.94, a decrease of 0.85% from the end of the previous year[5] - The company's total assets as of September 30, 2021, amounted to ¥2,550,164,395.94, slightly down from ¥2,571,898,692.81 at the end of 2020[16] - Current liabilities decreased to ¥1,446,507,179.36 in Q3 2021 from ¥1,765,003,477.71 in Q3 2020, a reduction of 16.0%[17] - The company's total liabilities decreased to ¥1,503,865,468.77 in Q3 2021 from ¥1,818,107,115.35 in Q3 2020, a decline of 17.3%[17] Shareholder Information - The company reported a total of 30,539 common shareholders at the end of the reporting period[12] - The top three shareholders held a combined 59.47% of the shares, with the largest shareholder holding 21.15%[12] - The equity attributable to shareholders increased by 38.80% to ¥1,046,298,927.17 due to new share issuance[10] - The equity attributable to the parent company increased to ¥1,046,298,927.17 in Q3 2021, compared to ¥753,791,577.46 in Q3 2020, reflecting a growth of 38.9%[17] Cash Flow - The net cash flow from operating activities showed a significant decline of 3,261.26% to -¥462,248,276.44, primarily due to increased cash payments for materials[10] - Cash inflow from operating activities totaled CNY 1,999,444,093.30, an increase of 59.00% compared to CNY 1,257,790,496.47 in the previous period[22] - The net cash flow from operating activities was negative at CNY -462,248,276.44, contrasting with a positive cash flow of CNY 14,622,297.34 in the same period last year[24] - Cash outflow from investing activities was CNY 90,188,984.77, significantly lower than CNY 852,905,649.80 in the previous period, indicating a reduction in investment spending[24] - The net cash flow from financing activities was CNY 215,740,187.87, compared to a negative cash flow of CNY -13,037,054.21 in the previous period, showing improved financing conditions[24] - The total cash and cash equivalents at the end of the period were CNY 176,361,334.37, up from CNY 130,636,775.62 in the previous year, reflecting a year-over-year increase of approximately 35%[25] Expenses and Costs - The company experienced increased R&D expenses and rising raw material prices, impacting profitability[9] - Total operating costs for Q3 2021 were ¥1,901,186,666.22, up from ¥1,702,841,845.60 in the same period last year, reflecting a growth of 11.6%[19] - Research and development expenses rose to ¥64,717,146.93 in Q3 2021, up from ¥39,699,098.29 in Q3 2020, marking a significant increase of 62.9%[19] Tax and Compliance - The company reported a decrease in tax payments, with CNY 17,974,563.99 paid this period compared to CNY 41,943,873.02 in the previous period, indicating a reduction of approximately 57.1%[24] - The company did not adjust the initial balance sheet items for the new leasing standards, indicating compliance without the need for adjustments[26] - The third quarter report was not audited, which may affect the reliability of the financial data presented[26]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,478,256,335, representing a 30.98% increase compared to ¥1,128,617,400.95 in the same period last year[22]. - The net profit attributable to shareholders was ¥41,552,635.85, a 5.41% increase from ¥39,421,536.87 in the previous year[22]. - The company's revenue for the reporting period reached ¥1,478,256,335, a 30.98% increase compared to ¥1,128,617,400.95 in the previous year, primarily driven by increased sales of diesel engines[39]. - The operating costs rose to ¥1,310,930,728.31, reflecting a 32.30% increase from ¥990,874,305.38, attributed to higher sales volumes of diesel engines[39]. - The company's operating income for diesel engines reached ¥1,381,515,677, with a gross margin of 10.69%, reflecting a year-on-year decrease of 0.92%[42]. - The company reported a gross margin of 14.24% for parts, with operating income of ¥89,806,067.18, down 1.86% year-on-year[42]. - The company reported a total sales amount of 70.63 million yuan for diesel products, with a pricing principle of 3.73% above market price[87]. - The company reported a decrease in total profit to ¥42,435,555.07, down from ¥44,362,040.36 in the same period last year[132]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥150,618,649.81, a significant decline of 676.04% compared to ¥26,147,406.64 in the same period last year[22]. - The total cash flow from operating activities decreased significantly, resulting in a net cash increase of -¥231,004,349.59, a decline of 13,780.74% compared to the previous period[40]. - The company's investment activities generated a net cash flow of -¥76,591,139.68, primarily due to increased cash payments for purchasing financial products[40]. - The total cash outflow from investing activities was CNY 77,507,763.80, a substantial decrease from CNY 706,306,041.76 in the previous year, resulting in a net cash flow from investing activities of CNY -76,481,366.62[141]. - The cash inflow from operating activities was primarily driven by sales revenue of CNY 1,228,749,806.38, which increased from CNY 876,106,824.52 year-on-year[139]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,634,621,546.32, reflecting a 2.44% increase from ¥2,571,898,692.81 at the end of the previous year[22]. - The net assets attributable to shareholders increased by 5.51% to ¥795,316,511.04 from ¥753,791,577.46 at the end of the previous year[22]. - The company's total assets included cash and cash equivalents of ¥477,494,317, which accounted for 18.12% of total assets, down from 25.53% at the end of the previous year[47]. - Total liabilities stood at CNY 1,839,305,035.28, slightly up from CNY 1,818,107,115.35, indicating a marginal increase of about 1.2%[120]. - The company's current assets totaled CNY 1,961,058,722.39, compared to CNY 1,900,973,832.20 at the end of 2020, reflecting a growth of approximately 3.2%[119]. Research and Development - Research and development expenses increased by 60.00% to ¥41,444,831.39 from ¥25,903,030.95, due to delayed investments in the previous year caused by the pandemic[39]. - The company has developed multiple models that meet the National IV emission standards, including the 3E22YG51, and several models that comply with Euro V standards[32]. - The company plans to enhance its innovation capabilities and product development to align with national emission standards and market demands[61][64]. Market Position and Strategy - The company holds the largest market share in the engineering machinery diesel engine sector, with a strong focus on non-road diesel engines, benefiting from long-term partnerships with major manufacturers[36]. - The company is positioned to benefit from the growth of downstream industries, such as construction and agriculture, supported by national policies and infrastructure investments[32]. - The company emphasizes social responsibility, focusing on energy conservation, emission reduction, and employee satisfaction[78]. Risks and Challenges - The company faces risks from the rapid development of new energy technologies, particularly in the forklift sector, which could impact sales of traditional diesel engines[60][61]. - The gross margin of the company's main products is under pressure due to market competition and customer demands for price reductions[61]. - The implementation of stricter emission standards for non-road diesel engines poses a risk if the company cannot optimize production processes and upgrade technology[64]. - The company is at risk of intensified industry competition, particularly in the non-road diesel engine sector, necessitating enhanced product competitiveness and market expansion efforts[63]. Corporate Governance and Compliance - There were no changes in the company's board of directors or senior management during the reporting period[69]. - The company has no administrative penalties related to environmental issues during the reporting period[78]. - There are no significant litigation or arbitration matters reported for the company during the reporting period[86]. - The semi-annual financial report for the company has not been audited[83]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 37, with no changes in shareholding structure[105]. - The largest shareholder, Juxing Holdings, holds 28.20% of the shares, amounting to 51 million shares[105]. - The second-largest shareholder, Qiu Jianping, holds 27.65% of the shares, totaling 50 million shares[105]. - The third-largest shareholder, Zhu Xianwei, holds 23.44% of the shares, which is 42.4 million shares[105].