2023 年第一季度报告 单位：元 币种：人民币 证券代码：600143 证券简称：金发科技 金发科技股份有限公司 2023 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务信息 的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|------------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期增 减变动幅度 (%) | | 营业收入 | 9,683,231,224.55 | 2. ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥9,848,276,061.77, a decrease of 4.44% compared to the same period last year[4]. - Net profit attributable to shareholders for Q3 2022 was ¥400,916,801.33, an increase of 167.59% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥231,715,929.71, up by 2.19% compared to the same period last year[4]. - The basic earnings per share for Q3 2022 was ¥0.1558, reflecting a year-on-year increase of 167.59%[5]. - The diluted earnings per share for Q3 2022 was also ¥0.1558, with the same year-on-year increase of 167.59%[5]. - The weighted average return on equity for Q3 2022 was 2.59%, an increase of 1.59 percentage points year-on-year[5]. - Total operating revenue for the first three quarters of 2022 was CNY 29,315,072,058.40, a decrease of 0.94% compared to CNY 29,593,491,981.42 in the same period of 2021[21]. - The company reported a decrease of 30.49% in net profit attributable to shareholders for the year-to-date period compared to the same period last year[7]. - In Q3 2022, the net profit was CNY 1,200,334,676.05, a decrease of 30.9% compared to CNY 1,740,973,390.93 in Q3 2021[22]. - The total profit for Q3 2022 was CNY 1,507,231,508.63, down from CNY 2,085,772,427.71 in the same period last year, representing a decline of 27.7%[22]. - The operating profit for Q3 2022 was CNY 1,519,855,620.27, compared to CNY 2,102,050,935.19 in Q3 2021, reflecting a decrease of 27.7%[22]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥2,596,637,906.28, an increase of 75.83% year-on-year[5]. - The cash flow from operating activities for the first three quarters of 2022 was CNY 26,233,784,274.10, slightly down from CNY 26,276,109,176.10 in the same period of 2021[24]. - The net cash flow from operating activities in Q3 2022 was CNY 2,596,637,906.28, an increase of 76.0% compared to CNY 1,476,767,198.54 in Q3 2021[26]. - The cash inflow from operating activities totaled CNY 16.45 billion, down 8.4% from CNY 17.96 billion in the first three quarters of 2021[34]. - Cash outflow from operating activities decreased to CNY 15.19 billion, compared to CNY 17.99 billion in the same period of 2021, reflecting improved operational efficiency[34]. - The company reported a net increase in cash and cash equivalents of CNY 223.61 million, contrasting with a decrease of CNY 193.73 million in the same period of 2021[35]. - The ending balance of cash and cash equivalents was CNY 2.26 billion, up from CNY 1.93 billion at the end of the third quarter of 2021[35]. Assets and Liabilities - Total assets attributable to shareholders at the end of the reporting period were ¥54,006,043,451.69, an increase of 11.81% compared to the end of the previous year[5]. - Total assets reached CNY 54,006,043,451.69, an increase from CNY 48,300,022,105.82 year-on-year[20]. - Total liabilities amounted to CNY 36,249,090,749.48, up from CNY 31,580,711,973.16 in the previous year[19]. - The company's total equity as of September 30, 2022, was RMB 10.09 billion, up from RMB 8.95 billion at the end of 2021, indicating an increase of about 12.7%[30]. - The company's cash and cash equivalents amounted to RMB 2.28 billion as of September 30, 2022, up from RMB 2.06 billion at the end of 2021, marking an increase of approximately 10.6%[29]. - The total liabilities of the company were RMB 19.77 billion as of September 30, 2022, compared to RMB 18.54 billion at the end of 2021, representing an increase of about 6.6%[30]. Investments and Projects - The company has invested approximately RMB 2.52 billion in the 1.2 million tons/year polypropylene thermoplastic elastomer (PTPE) and modified materials integration project, completing 36.9% of the total estimated investment by September 30, 2022[13]. - The glove production project has completed the construction of 64 out of 96 production lines, with each line designed for a daily capacity of 800,000 to 1.2 million units[14]. - The ABS and supporting facilities project has accumulated an investment of RMB 8.786 billion, with all construction work completed and some production lines in trial production[15]. - The company is adjusting its investment strategy based on future market conditions for ongoing projects[14]. Research and Development - Research and development expenses for the first three quarters were CNY 992,909,942.97, down 9.45% from CNY 1,096,434,527.44 in the previous year[21]. - Research and development expenses for the first three quarters of 2022 totaled RMB 382.84 million, down from RMB 473.24 million in the same period of 2021, a decrease of about 19.1%[31]. Other Comprehensive Income - The company reported a decrease in other comprehensive income after tax to CNY 19,124,239.19 in Q3 2022 from CNY 215,429.97 in Q3 2021[22].

Financial Performance - The company's operating revenue for the first half of 2022 was approximately CNY 19.47 billion, a year-on-year increase of 0.93%[17]. - The net profit attributable to shareholders for the same period was approximately CNY 802.27 million, representing a decrease of 49.26% compared to the previous year[17]. - The net profit after deducting non-recurring gains and losses was approximately CNY 702.31 million, down 51.97% year-on-year[17]. - Basic earnings per share for the first half of 2022 were CNY 0.3117, a decrease of 49.27% year-on-year[17]. - The weighted average return on net assets was 5.21%, down 5.08 percentage points compared to the previous year[17]. - The company reported a total comprehensive income of CNY 810,041,721.73 for the first half of 2022, compared to CNY 1,563,911,004.13 in the same period of 2021, a decrease of approximately 48.2%[151]. - The company reported a significant increase in credit impairment losses, totaling CNY -6,623,253.37, reflecting a 216.30% change[51]. - The company reported a profit distribution of CNY -1,544,173,405.80, indicating a significant reduction in retained earnings[166]. Cash Flow and Assets - The net cash flow from operating activities increased significantly to approximately CNY 1.42 billion, a rise of 385.55% compared to the same period last year[17]. - The company's total assets at the end of the reporting period were approximately CNY 53.51 billion, an increase of 10.78% from the end of the previous year[17]. - Cash and cash equivalents increased by 33.28% to CNY 5,394,146,716.75, attributed to project loan increases[52]. - The total current assets increased to CNY 22,399,767,798.78 from CNY 19,695,766,872.49, representing a growth of approximately 8.6%[141]. - The company’s total assets reached CNY 30,453,051,168.61, up from CNY 27,490,225,634.89, indicating an increase of about 10.7%[147]. Market and Industry Position - The company is a leading player in the chemical new materials sector, with a comprehensive product range and is the largest modified plastics producer in the Asia-Pacific region[22]. - The company’s main products include modified plastics, biodegradable plastics, and carbon fiber, which are widely used in various industries such as automotive, electronics, and healthcare[23]. - The company anticipates strong market demand for high-end carbon materials and renewable energy materials, driven by emerging industries and stricter environmental policies[21]. - The company aims to transition from single modified plastics to a diverse range of high-value-added chemical new materials[22]. Research and Development - The company has applied for a total of 4,937 patents, including 3,623 invention patents, which positions it among the top in the domestic manufacturing industry[29]. - The company has established a "13551" R&D system, which includes 1 central research institute, 3 international R&D centers, and 5 technology centers[28]. - The company emphasizes a talent-sharing incentive system, with 118 PhDs and 799 Master's degree holders, nearly 40% of whom graduated from top-tier universities[27]. Environmental and Regulatory Compliance - The company has been designated as a key pollutant discharge unit, with wastewater, waste gas, noise, and solid waste as primary pollutants[77]. - The company reported a total annual emission of 0.3861 tons of particulate matter, which is below the standard value of 20 mg/m³[78]. - The company has implemented environmental impact assessments and obtained necessary permits, including wastewater discharge permits[112]. - The company has established emergency response plans for environmental incidents and conducts regular training for employees[115]. Strategic Partnerships and Supply Chain - The company has established strategic partnerships with leading suppliers to ensure stable and safe raw material supply through various procurement models[25]. - The company has established a long-term strategic partnership with upstream suppliers, enhancing the quality, delivery, and price advantages of raw materials[31]. - The company is focusing on market expansion in sectors such as new energy, engineering pipelines, and medical applications through its overseas subsidiaries[47]. Challenges and Risks - The company faces macroeconomic risks due to the impact of the global pandemic and economic fluctuations, which may affect product demand and pricing[65]. - The company faces raw material price fluctuations and supply risks due to global commodity price increases, particularly in resin and additives, impacting short-term profitability[66]. - New project developments, including medical gloves and integrated projects, face uncertainties that may delay overall deployment and affect operational performance[68]. Corporate Governance - The actual controller and chairman of the company, Mr. Yuan Zhimin, is under investigation for insider trading since 2016, but continues to perform his duties normally[124]. - The company has maintained stable management and operations despite the ongoing investigation of its chairman[124]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[125].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 19.29 billion, an increase of 13.92% compared to CNY 16.93 billion in the same period last year[20]. - The net profit attributable to shareholders decreased by 34.44% to CNY 1.58 billion from CNY 2.41 billion year-on-year[20]. - The net cash flow from operating activities dropped significantly by 95.03% to CNY 292.50 million, down from CNY 5.89 billion in the previous year[20]. - The total assets increased by 12.01% to CNY 36.35 billion compared to CNY 32.45 billion at the end of the previous year[20]. - The weighted average return on equity decreased by 9.96 percentage points to 10.29% from 20.25% in the same period last year[21]. - The basic earnings per share fell by 34.44% to CNY 0.6144 from CNY 0.9371 year-on-year[21]. - The company reported a total of CNY 119.08 million in non-recurring gains and losses for the period[22]. - The company’s operating revenue for the reporting period was CNY 19,287,520,870.54, representing a 13.92% increase compared to CNY 16,930,072,692.15 in the same period last year[58]. - Operating costs increased by 29.65% to CNY 15,456,094,964.16 from CNY 11,921,342,670.23[58]. - Research and development expenses rose by 9.97% to CNY 732,270,624.46, up from CNY 665,896,041.12[58]. - The company reported a net profit of ¥253,603,213.21 from Zhuhai Wantong Chemical Co., Ltd., contributing significantly to overall profitability[72]. Market and Business Operations - The main business of the company includes the research, production, and sales of six categories of chemical new materials, such as modified plastics and biodegradable plastics, widely applied in various industries including automotive and healthcare[25]. - The company is one of the largest modified plastic producers in the Asia-Pacific region, with its product technology and quality in biodegradable plastics and carbon fiber reaching international advanced levels[25]. - The modified plastics segment achieved a sales volume of 845,300 tons, a year-on-year increase of 25.20%, and revenue of 12.028 billion yuan, up 23.85%[42]. - Sales of automotive materials reached 286,000 tons, growing by 57.14% year-on-year, driven by increased demand in the domestic passenger car market, which saw a 28.90% increase[42]. - The household appliance materials segment recorded sales of 151,000 tons, a year-on-year increase of 17.00%, with the overall household appliance industry retail sales reaching 356.5 billion yuan, up 12%[43]. - The sales volume of environmentally friendly high-performance recycled plastics was 80,800 tons, a year-on-year increase of 44.30%[44]. - The company aims to expand its market presence by leveraging its advanced polymer materials and focusing on high-value-added products[32]. - The company is positioned to benefit from the growing demand for green and low-carbon materials as part of China's strategic goals for carbon neutrality[32]. Research and Development - The company has established a "13551" R&D system, which includes 1 central research institute and 3 international R&D centers, enhancing its innovation capabilities[35]. - As of the report period, the company has applied for a total of 3,918 patents, including 2,819 invention patents, demonstrating its commitment to intellectual property management[36]. - The company is focusing on R&D investments in new technologies, particularly in high-performance, environmentally friendly materials, to meet the growing market demand[44]. Environmental Compliance - The company has been proactive in environmental management, ensuring that emissions of key pollutants such as chemical oxygen demand and total phosphorus are within regulatory limits[87]. - The company has not reported any instances of exceeding pollution discharge standards during the reporting period[87]. - The company has established 10 sets of waste gas treatment facilities and one wastewater treatment facility with a capacity of 1,500 tons/day, all operating effectively and meeting discharge standards[91]. - The company has received environmental impact assessment approvals for new projects, ensuring compliance with environmental regulations[93]. - The company has implemented a comprehensive pollution prevention strategy, including the construction of various pollution control facilities[91]. Financial Stability and Risks - The company faces macroeconomic risks due to fluctuations in demand and prices for chemical new materials, which could impact operational performance[75]. - Rising raw material prices and supply risks are a concern, with global commodity prices increasing, affecting production costs[75]. - The company has a significant exposure to exchange rate risks, which may affect import and export operations[76]. - The total amount of guarantees provided by the company, including those to subsidiaries, is 3,121,654,450.35 RMB, which accounts for 21.01% of the company's net assets[121]. - The company provided guarantees totaling 3,259,719,950.31 RMB to subsidiaries during the reporting period[121]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 255,039[126]. - The top shareholder, Yuan Zhimin, holds 510,380,393 shares, representing 19.83% of the total shares[127]. - The second largest shareholder, Xiong Haitao, holds 216,241,359 shares, accounting for 8.40%[127]. - The company did not distribute any dividends or bonus shares for the half-year period, with a proposed profit distribution plan indicating no allocation[83]. Management and Governance - The company completed the election of the board of directors and supervisory board, with several new appointments including Wu Di and Chen Pingxu as executive directors[82]. - The company has made strategic changes in its management team, with several independent directors and supervisors stepping down and new ones being elected[81]. - The employee stock ownership plan saw a reduction of 50,314,114 shares during the reporting period, leaving 20,452,322 shares held, which represents 0.79% of the total share capital[84]. Subsidiary Performance - The Indian subsidiary achieved a production volume of 33,400 tons in modified plastics, marking a year-on-year increase of 66.85%[55]. - The American subsidiary reported a production volume of 6,977.34 tons in modified plastics, reflecting a year-on-year growth of 195.37%[56]. - The European subsidiary's modified plastics business achieved a production volume of 7,559.77 tons, with a year-on-year increase of 310.64%[56]. - The Malaysian subsidiary's modified plastics business recorded a production volume of 7,422.76 tons, representing a year-on-year growth of 117.30%[57].

Financial Performance - Net profit attributable to shareholders rose by 438.79% to CNY 764.53 million year-on-year[4] - Operating revenue surged by 63.60% to CNY 9.06 billion compared to the same period last year[4] - Basic earnings per share increased by 439.20% to CNY 0.2971[4] - The company reported a significant increase in net profit excluding non-recurring items, which rose by 718.10% to CNY 713.13 million[4] - Operating profit for Q1 2021 was ¥906,021,100.48, compared to ¥202,788,033.99 in Q1 2020, reflecting a substantial growth[28] - Net profit for Q1 2021 amounted to ¥767,550,819.35, up from ¥142,952,800.99 in the same period last year, indicating a year-over-year increase of 436.5%[28] - Total revenue for Q1 2021 reached ¥9,057,347,670.83, a significant increase of 63.5% compared to ¥5,536,313,856.36 in Q1 2020[26] Assets and Liabilities - Total assets increased by 9.99% to CNY 35.70 billion compared to the end of the previous year[4] - Total assets increased to ¥35,696,625,334.75, up from ¥32,454,896,472.95, representing a growth of approximately 6.8% year-over-year[22] - Current assets totaled ¥17,197,382,670.58, compared to ¥14,665,825,806.11, reflecting an increase of about 10.4%[21] - Total liabilities reached ¥19,924,106,652.31, compared to ¥17,438,528,555.09, showing an increase of approximately 14.2%[21] - Long-term borrowings surged to ¥8,277,132,020.98, up from ¥6,213,218,446.34, representing a significant increase of about 33.2%[21] - Total liabilities rose to ¥14,645,878,897.67 in Q1 2021, compared to ¥12,128,287,123.98 in Q1 2020, marking an increase of 20.7%[25] Cash Flow - Net cash flow from operating activities decreased by 133.39% to -CNY 223.21 million[4] - The net cash flow from operating activities was negative at -¥223,206,112.76, a decline of 133.39% compared to ¥668,571,283.86 in the previous year[15] - Cash flow from operating activities showed a net outflow of approximately ¥223.21 million, a decrease from a net inflow of ¥668.57 million in Q1 2020[33] - Cash inflow from financing activities was 2,554,647,201.45 RMB, an increase from 2,166,210,107.72 RMB in the previous year, marking a growth of approximately 17.9%[34] - The net cash flow from financing activities improved significantly to 1,101,390,138.13 RMB, compared to -517,311,397.63 RMB in Q1 2020[34] Shareholder Information - The total number of shareholders reached 207,065 by the end of the reporting period[7] - The top two shareholders, Yuan Zhimin and Xiong Haitao, hold 19.83% and 8.40% of shares respectively[7] Research and Development - R&D expenses increased by 40.65% to ¥340,585,139.43, up from ¥242,146,664.66, reflecting a focus on innovation[12] - Research and development expenses for Q1 2021 were ¥340,585,139.43, up from ¥242,146,664.66 in Q1 2020, reflecting a growth of 40.6%[26] - Research and development expenses increased to approximately ¥129.77 million, up from ¥72.09 million in the same period last year, reflecting an increase of 79.9%[30] Other Financial Metrics - The weighted average return on equity improved by 3.68 percentage points to 5.02%[4] - The company's retained earnings rose to ¥9,386,752,219.35 from ¥8,622,223,421.54, reflecting an increase of approximately 8.9%[22] - The total equity attributable to shareholders increased to ¥15,595,338,056.21 from ¥14,841,977,473.93, indicating a growth of about 5.1%[22] - The company's other comprehensive income showed a decrease in foreign currency translation differences, with a loss of -¥28,634,009.58 compared to -¥17,068,600.80 last year[11]

Financial Performance - The company's operating revenue for 2020 was RMB 35,061,170,904.88, representing a 19.72% increase from RMB 29,285,923,753.07 in 2019[14] - The net profit attributable to shareholders for 2020 was RMB 4,587,696,510.29, a significant increase of 268.64% compared to RMB 1,244,503,121.33 in 2019[14] - The net cash flow from operating activities reached RMB 6,216,986,372.12, up 127.03% from RMB 2,738,343,438.68 in the previous year[14] - The total assets of the company at the end of 2020 were RMB 32,454,896,472.95, an increase of 11.26% from RMB 29,169,654,922.14 at the end of 2019[14] - The net assets attributable to shareholders increased by 40.82% to RMB 14,841,977,473.93 from RMB 10,539,525,443.93 in 2019[14] - Basic earnings per share for 2020 were RMB 1.7826, a 276.08% increase from RMB 0.4740 in 2019[15] - The weighted average return on net assets for 2020 was 36.21%, an increase of 24.09 percentage points from 12.12% in 2019[15] - The company achieved total revenue of 35.061 billion yuan, a year-on-year increase of 19.72%, and a net profit attributable to shareholders of 4.588 billion yuan, up 268.64%[42] Cash Flow and Investments - The net cash flow from operating activities was 6.217 billion yuan, with total assets of 32.455 billion yuan and total liabilities of 17.439 billion yuan[42] - The net cash flow from investment activities improved by 41.80%, totaling CNY -2.80 billion[43] - The net cash flow from financing activities decreased significantly by 173.97%, totaling -¥2,414,054,166.63, mainly due to a reduction in bank loans[57] - The company's cash and cash equivalents increased by 33.69% to ¥3,870,960,602.37, reflecting higher cash receipts from sales[59] - The construction in progress increased by 120.79% to ¥1,259,297,814.63, driven by investments in new projects[60] Market and Product Development - The company aims to upgrade its product structure towards high-end and high value-added products, reflecting a shift from single modified plastics to a diversified range of chemical new materials[21] - The market for chemical new materials in China is expected to grow significantly due to domestic consumption upgrades and the transformation of manufacturing[26] - The company has established strategic partnerships with numerous well-known domestic and international enterprises, enhancing its market position in the chemical new materials industry[21] - The company achieved a sales volume of 1.5466 million tons for modified plastics, representing a year-on-year increase of 12.82%, with revenue reaching 20.408 billion yuan, up 17.09%[33] - The sales volume of environmentally friendly high-performance recycled plastics increased by 29.91% to 138,700 tons, driven by a surge in market demand for recycled plastics[34] Research and Development - The company has applied for a total of 3,763 patents, including 2,775 invention patents, demonstrating a strong commitment to innovation and intellectual property management[29] - The company has invested 4% of its revenue in R&D, forming a comprehensive R&D system with 1 central research institute and 3 international R&D centers[28] - The total number of R&D personnel is 1,432, accounting for 13.96% of the company's total workforce[54] - The company has established a Sustainable Development Technology Research Institute to focus on common technologies in the high-performance recycled plastics industry[75] - The company’s research and development efforts in 5G communication materials have led to significant progress, introducing high-dielectric low-loss materials and other advanced solutions[75] Environmental and Social Responsibility - The company has implemented an ISO 14001 environmental management system and promotes clean production practices[168] - The company has established a wastewater treatment facility with a capacity of 400 tons per day to independently handle industrial wastewater[169] - The company achieved a zero discharge of production wastewater and has implemented advanced technologies to reduce dust emissions[168] - The company donated CNY 11.2 million for poverty alleviation efforts in 2020, specifically targeting underprivileged villages in Guizhou Province[161] - The company actively transitioned to produce epidemic prevention materials, donating over CNY 2 million in protective supplies domestically and internationally[161] Risks and Challenges - The company has outlined potential risks in its annual report, advising investors to be cautious[6] - The company faces risks related to raw material prices and supply, as fluctuations in international crude oil prices can impact short-term profitability and production stability[137] - The company acknowledges macroeconomic risks, including the impact of the COVID-19 pandemic on product demand and pricing[136] - The company has a high annual R&D investment ratio, but there are risks associated with product development failures and market acceptance[137] Shareholder and Corporate Governance - The company has not reported any major accounting errors or changes that would impact its financial statements significantly[146] - The company has not engaged in any significant related party transactions that would affect its operational integrity during the reporting period[154] - The company has established measures to avoid competition with its controlling shareholders, ensuring compliance with regulations[144] - The company does not have a controlling shareholder or actual controller, indicating a diversified ownership structure[199] - Major shareholder Yuan Zhimin holds 510,380,393 shares, representing 19.83% of total shares, with 255,190,197 shares pledged[194]

[Important Notes](index=3&type=section&id=I.%20Important%20Notes) The board of directors guarantees the authenticity and completeness of this unaudited quarterly report - The company's Board of Directors, Supervisory Committee, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities[4](index=4&type=chunk) - All company directors attended the board meeting to review this quarterly report[4](index=4&type=chunk) - The company's third-quarter report for 2020 is unaudited[4](index=4&type=chunk) [Company Profile and Financial Summary](index=3&type=section&id=II.%20Company%20Profile) The company achieved explosive performance growth in the first three quarters of 2020, with significant increases in revenue, net profit, and operating cash flow [Core Financial Data Summary](index=3&type=section&id=2.1%20Key%20Financial%20Data) The company experienced explosive growth in the first three quarters of 2020, driven by substantial increases in revenue, net profit, and operating cash flow Key Financial Data for the First Three Quarters of 2020 | Indicator | Jan-Sep 2020 (RMB) | Jan-Sep 2019 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 26,199,862,922.02 | 20,376,130,654.30 | 28.58% | | **Net Profit Attributable to Shareholders** | 3,794,203,086.82 | 944,403,397.65 | 301.76% | | **Net Profit Attributable to Shareholders (Excluding Non-recurring Items)** | 3,761,459,967.85 | 777,006,745.84 | 384.10% | | **Net Cash Flow from Operating Activities** | 6,044,225,788.17 | 1,872,438,224.72 | 222.80% | | **Basic Earnings Per Share (RMB/Share)** | 1.4743 | 0.3573 | 312.62% | | **Weighted Average Return on Equity** | 30.74% | 9.14% | Increased by 21.60 percentage points | Non-recurring Gains and Losses for the First Three Quarters of 2020 | Item | Amount for Jan-Sep (RMB) | Notes | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -10,453,015.49 | Mainly losses from disposal of fixed assets | | Government Grants Included in Current Profit/Loss | 80,419,619.32 | Mainly government grants recognized in the current period | | Gains/Losses from Fair Value Changes of Financial Instruments | -6,897,950.69 | - | | Other Non-operating Income and Expenses | -24,108,239.20 | - | | **Total** | **32,743,118.97** | - | [Shareholder Structure Analysis](index=5&type=section&id=2.2%20Shareholder%20Structure) As of the reporting period end, the company had 115,253 shareholders, with a relatively concentrated and stable ownership structure led by the founder - As of the reporting period end, the total number of common shareholders was **115,253**[11](index=11&type=chunk) Top 10 Shareholders | Shareholder Name | Number of Shares Held (shares) | Shareholding Ratio (%) | Share Status | | :--- | :--- | :--- | :--- | | Yuan Zhimin | 510,380,393 | 19.83 | Pledged 255,190,197 | | Xiong Haitao | 216,241,359 | 8.40 | None | | Li Nanjing | 90,769,754 | 3.53 | None | | Song Ziming | 70,928,880 | 2.76 | Pledged 20,300,000 | | 2016 Employee Stock Ownership Plan | 70,766,436 | 2.75 | None | | China Securities Finance Corporation Limited | 68,880,813 | 2.68 | None | | Central Huijin Asset Management Ltd. | 56,573,900 | 2.20 | None | | Xia Shiyong | 55,601,209 | 2.16 | None | | HKSCC NOMINEES LIMITED | 54,377,538 | 2.11 | None | | Xiong Lingyao | 45,000,200 | 1.75 | None | [Analysis of Significant Events](index=6&type=section&id=III.%20Significant%20Events) This section details significant changes in key financial statement items and analyzes their underlying causes [Analysis of Significant Changes in Key Financial Items](index=6&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Items) The company reported significant fluctuations across its financial statements, including major changes in assets, liabilities, expenses, and cash flows Significant Changes in Balance Sheet Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Construction in Progress | 73.83% | Construction of parent company's pilot plant and Zhuhai Wantong's 30,000-ton PLA project | | Other Non-current Assets | 99.88% | Increase in prepayments for construction and equipment | | Short-term Borrowings | -62.04% | Company reduced short-term loans | | Notes Payable | 257.23% | Increased use of notes for payment of goods | | Taxes Payable | 162.46% | Increase in corporate income tax payable | Significant Changes in Income Statement Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Taxes and Surcharges | 52.80% | Driven by an increase in value-added tax | | Selling Expenses | 66.31% | Increase in sales bonuses and commissions | | General & Administrative Expenses | 37.92% | Increase in employee compensation | | Research & Development Expenses | 33.17% | Increase in product R&D investment | | Non-operating Expenses | 671.06% | Increase in donation expenses | | Income Tax Expense | 414.26% | Increase in corporate income tax | Significant Changes in Cash Flow Statement Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 222.80% | Increase in cash receipts from sales and advances from customers | | Net Cash Flow from Investing Activities | 55.02% | Resulted from external equity transactions in the same period last year | | Net Cash Flow from Financing Activities | -196.34% | Decrease in bank loans | [Appendix: Financial Statements](index=10&type=section&id=IV.%20Appendix) This appendix presents the unaudited consolidated and parent company financial statements for the period ended September 30, 2020 [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) This appendix provides the unaudited consolidated and parent company financial statements of Kingfa Sci & Tech Co, Ltd as of September 30, 2020 - The appendix includes the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q3 2020[20](index=20&type=chunk)[27](index=27&type=chunk)[33](index=33&type=chunk) [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2020, total assets grew to RMB 30.27 billion, while total liabilities decreased, optimizing the company's capital structure Key Items from Consolidated Balance Sheet (Unit: RMB billion) | Item | September 30, 2020 | December 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 30.27 | 29.17 | 3.78% | | Total Liabilities | 15.48 | 18.46 | -16.15% | | Equity Attributable to Parent Company | 14.06 | 10.54 | 33.43% | [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) The parent company's total assets remained stable at RMB 20.77 billion, while owner's equity grew by 20.99%, indicating solid profitability Key Items from Parent Company Balance Sheet (Unit: RMB billion) | Item | September 30, 2020 | December 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 20.77 | 20.66 | 0.49% | | Total Liabilities | 12.16 | 13.55 | -10.26% | | Owner's Equity | 8.60 | 7.11 | 20.99% | [Consolidated Income Statement](index=15&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2020, the company's total revenue grew by 28.58% and net profit attributable to shareholders surged by 301.76% Key Items from Consolidated Income Statement (Unit: RMB billion) | Item | Jan-Sep 2020 | Jan-Sep 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 26.20 | 20.38 | 28.58% | | Operating Profit | 4.54 | 1.07 | 323.31% | | Net Profit Attributable to Parent Company Shareholders | 3.79 | 0.94 | 301.76% | | Basic Earnings Per Share (RMB/Share) | 1.4743 | 0.3573 | 312.62% | [Parent Company Income Statement](index=18&type=section&id=Parent%20Company%20Income%20Statement) The parent company's net profit grew by 598.45% in the first three quarters of 2020, significantly outpacing the consolidated growth rate Key Items from Parent Company Income Statement (Unit: RMB billion) | Item | Jan-Sep 2020 | Jan-Sep 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 10.67 | 8.39 | 27.09% | | Operating Profit | 1.96 | 0.28 | 604.67% | | Net Profit | 1.75 | 0.25 | 598.45% | [Consolidated Cash Flow Statement](index=20&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities increased by 222.80% in the first three quarters of 2020, while financing activities resulted in a net cash outflow Key Items from Consolidated Cash Flow Statement (Unit: RMB billion) | Item | Jan-Sep 2020 | Jan-Sep 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 6.04 | 1.87 | 222.80% | | Net Cash Flow from Investing Activities | -1.92 | -4.27 | 55.02% | | Net Cash Flow from Financing Activities | -3.50 | 3.63 | -196.34% | | Net Increase in Cash and Cash Equivalents | 0.60 | 1.25 | -52.43% | [Parent Company Cash Flow Statement](index=21&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) The parent company generated strong operating cash flow of RMB 4.37 billion, a 124.45% increase, while actively reducing debt Key Items from Parent Company Cash Flow Statement (Unit: RMB billion) | Item | Jan-Sep 2020 | Jan-Sep 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4.37 | 1.95 | 124.45% | | Net Cash Flow from Investing Activities | 0.11 | -3.97 | N/A | | Net Cash Flow from Financing Activities | -3.97 | 2.82 | -240.79% | | Net Increase in Cash and Cash Equivalents | 0.50 | 0.81 | -38.87% |