2021 年第三季度报告 证券代码：603002 证券简称：宏昌电子 宏昌电子材料股份有限公司 2021 年第三季度报告 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个别及连带责任。 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 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 1 / 16 2021 年第三季度报告 单位：元 币种：人民币 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------|------------------|-------------------|----------------|---- ...

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥2,073,179,199.61, representing a 100.15% increase compared to ¥1,035,804,354.39 in the same period last year[20]. - Net profit attributable to shareholders was ¥197,946,332.02, a significant increase of 136.91% from ¥83,553,628.21 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥195,732,876.18, marking a 332.85% increase from ¥45,219,592.95 in the same period last year[20]. - Basic earnings per share for the first half of the year was 0.22 RMB, an increase of 144.44% compared to the same period last year[22]. - The weighted average return on net assets increased by 4.59 percentage points to 9.57% compared to the same period last year[22]. - Operating costs rose to RMB 1,736,538,190.47, an increase of 99.07% from RMB 872,304,818.36 year-on-year[91]. - Research and development expenses increased by 68.01%, reaching RMB 35,912,718.56 compared to RMB 21,375,178.10 in the previous year[91]. Cash Flow and Assets - The net cash flow from operating activities for the reporting period was -40,181,909.12 RMB, a decrease of 138.22% compared to the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 1.27% to 1,945,482,488.07 RMB compared to the end of the previous year[22]. - Total assets increased by 8.09% to 3,725,024,410.79 RMB compared to the end of the previous year[22]. - Accounts receivable increased by 55.50% to RMB 1.30 billion, attributed to higher sales volume[95]. - Short-term borrowings rose by 62.88% to RMB 116.04 million, reflecting increased bank loans[95]. - Total liabilities increased to CNY 1,779,541,922.72, compared to CNY 1,475,733,237.19 at the end of 2020, marking a rise of 20.6%[196]. - Cash and cash equivalents decreased to CNY 828,963,478.91 from CNY 1,024,244,062.71, a decline of 19.1%[192]. Market and Product Development - The epoxy resin market saw price increases and strong demand due to rising raw material prices and increased demand from downstream electronic terminal products[31]. - The copper-clad laminate industry is benefiting from the rapid development of 5G base stations and the growth of electronic consumption, leading to increased orders for copper-clad laminate manufacturers[32]. - The company focuses on high-end, environmentally friendly products and customized solutions to enhance product competitiveness[31]. - The company has nearly 3,000 accumulated customers, with approximately 1,000 active transactions during the reporting period, enhancing its market responsiveness[47]. - The company has established a high-end positioning by introducing electronic-grade epoxy resin, significantly reducing reliance on imported products in the domestic market[51]. - The company has developed a new generation of phosphorus-containing epoxy resin, which is expected to become a mainstream product in the halogen-free market[77]. - The company is conducting research on 6G resin materials to meet future technological demands[78]. Research and Development - The company holds 24 domestic invention patents, 1 Japanese patent, 1 US patent, and 1 Taiwanese patent, with 11 additional patents under review, showcasing its strong R&D capabilities[48]. - The company has implemented fine management in production, focusing on quality control and cost reduction, which has improved production efficiency[58]. - The company has successfully optimized existing materials for PCB clients, achieving mass production certification for multiple products[85]. - The company has applied for multiple patents related to its new product developments, indicating a strong focus on innovation[79]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures, with specific pollutant emissions from its subsidiaries monitored and reported, including methanol emissions of 0.0038 tons and acetone emissions of 0.0033 tons in the first half of 2021[117]. - The company emphasizes continuous investment in environmental protection facilities and promotes a clean production and circular economy model to enhance environmental management[126]. - The company donated RMB 30,000 to the Zhuhai Red Cross Society as part of its social responsibility initiatives[145]. - Zhuhai Hongchang has implemented comprehensive environmental protection measures, including three sets of waste gas treatment devices and a wastewater treatment station[127]. Corporate Governance and Shareholder Information - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for this reporting period[6]. - The company has not faced any violations in decision-making procedures for external guarantees[7]. - The total amount of guarantees provided by the company, including those to subsidiaries, was RMB 918 million, which accounted for 47.19% of the company's net assets[165]. - The company’s share structure remained unchanged during the reporting period, with no new shares issued or existing shares canceled except for the performance compensation[170]. - The total number of ordinary shareholders at the end of the reporting period was 27,846[175]. - The company repurchased and canceled a total of 10,596,116 shares at a total price of RMB 1.00 due to unmet performance commitments from a major asset restructuring in 2020[109].

Financial Performance - Net profit attributable to shareholders increased by 168.12% to CNY 83,294,189.66 year-on-year[18] - Operating income rose by 92.82% to CNY 886,838,811.05 compared to the same period last year[18] - Basic earnings per share increased by 125.00% to CNY 0.09 per share[21] - The company reported a significant increase in net profit excluding non-recurring gains and losses, up 408.16% to CNY 82,377,739.52[18] - Total operating revenue for Q1 2021 reached ¥886,838,811.05, a significant increase of 92.8% compared to ¥459,940,484.42 in Q1 2020[60] - Net profit for Q1 2021 was ¥83,294,189.66, representing a 168.4% increase from ¥31,066,047.28 in Q1 2020[60] - The comprehensive income total for Q1 2021 was ¥83,951,999.01, up from ¥31,210,162.19 in Q1 2020[62] Assets and Liabilities - Total assets increased by 3.77% to CNY 3,576,044,252.35 compared to the end of the previous year[18] - Current liabilities rose to CNY 1,516,791,053.86, up from CNY 1,470,880,342.81, reflecting an increase of approximately 3.10%[50] - The total liabilities increased to CNY 1,521,678,458.24 from CNY 1,475,733,237.19, reflecting an increase of approximately 3.11%[50] - The company's equity attributable to shareholders increased to CNY 2,054,365,794.11 from CNY 1,970,413,795.10, marking a growth of about 4.26%[50] - Non-current assets totaled CNY 853,053,824.62, a slight decrease from CNY 862,368,680.74, indicating a decline of about 1.83%[50] Cash Flow - Net cash flow from operating activities decreased by 139.02% to -CNY 10,848,867.95 compared to the previous year[18] - Cash inflow from operating activities is 927,261,618.57, up from 712,102,403.44, representing a 30.19% increase year-over-year[70] - Cash outflow from operating activities totals 938,110,486.52, compared to 684,301,524.07 last year, reflecting a 37.14% increase[70] - The net cash flow from investing activities is 13,434,767.00, down from 41,978,983.64, indicating a decrease of 67.99%[73] - The net cash flow from financing activities is 1,310,974.13, a significant recovery from -114,711,477.67 in the previous year[73] Expenses - The cost of goods sold increased by 87.29% to RMB 738,347,083.82, driven by higher sales volume and rising raw material costs[34] - Research and development expenses rose by 60.23% to RMB 15,354,444.13, reflecting increased direct investment in R&D[34] - The company experienced a 150.80% increase in taxes and surcharges, amounting to RMB 2,234,824.03, due to higher city construction tax and education fees[34] Shareholder Information - The number of shareholders at the end of the reporting period was 24,612[27] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 27.74% of the shares[27] Other Comprehensive Income - The company reported a 94.01% increase in other comprehensive income, resulting in a loss of RMB -41,934.03 due to changes in exchange rates and fair value of other investments[32] - Other comprehensive income after tax for Q1 2021 was ¥657,809.35, significantly higher than ¥144,114.91 in Q1 2020[62] Forecast and Commitments - The company has committed to a profit forecast, ensuring net profits of no less than RMB 86 million, RMB 94 million, and RMB 120 million for the years 2020, 2021, and 2022 respectively[41]

Financial Performance - The company's adjusted earnings per share (EPS) for 2020 was CNY 0.25, a 38.89% increase compared to CNY 0.18 in 2019[21]. - Total revenue for 2020 reached CNY 2,504,199,868.15, representing a 6.55% increase from CNY 2,350,258,838.21 in 2019[21]. - Net profit attributable to shareholders was CNY 224,061,830.36, up 38.59% from CNY 161,671,558.37 in 2019[21]. - The weighted average return on equity (ROE) increased to 12.96%, up 2.71 percentage points from 10.25% in 2019[21]. - The net cash flow from operating activities surged by 212.14% to CNY 321,651,598.10, compared to CNY 103,048,434.13 in 2019[21]. - The company's total assets at the end of 2020 were CNY 3,446,147,032.29, a 32.21% increase from CNY 2,606,599,179.71 at the end of 2019[21]. - The company reported a net profit of CNY 88,670,324.83 in Q4 2020, contributing to a total annual net profit growth[24]. - The company achieved a total operating revenue of RMB 2.50 billion in 2020, representing a year-on-year increase of 6.55%[72]. - The net profit attributable to shareholders reached RMB 224.06 million, a year-on-year increase of 38.59%[72]. - The company's total assets amounted to RMB 3.446 billion at the end of 2020, an increase of 32.21% compared to the previous year[73]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.475 per 10 shares, totaling approximately RMB 223.71 million (including tax) for the year 2020[134]. - The profit distribution policy stipulates that at least 30% of the distributable profit for the year must be distributed as cash dividends, provided that the company meets the cash dividend conditions[131]. - The company has established a profit distribution decision-making mechanism that involves discussions with independent directors and minority shareholders[130]. - The company is required to communicate with shareholders, especially minority shareholders, regarding the cash dividend plan during the shareholders' meeting[130]. - The company's independent directors can gather opinions from minority shareholders to propose profit distribution plans[130]. Market Position and Strategy - The company is engaged in the production of electronic-grade epoxy resins, which are critical for the electronics industry, indicating a focus on high-demand materials[12]. - The company has established a strong presence in the market for copper-clad laminates (CCL) and printed circuit boards (PCB), essential components in electronic manufacturing[12]. - The company is actively involved in research and development of new products and technologies to enhance its market competitiveness[12]. - The company plans to expand its market presence and enhance product development in the electronic materials sector[30]. - The company is focusing on high-end materials and large clients, responding to the increasing demand for advanced materials in the electronics and automotive sectors[38]. - The company has established stable market cooperation relationships with several large PCB clients, including listed companies such as HanYu, Jinxing Group, and JianDing Technology, enhancing brand image and customer loyalty[49]. Research and Development - The company has 24 authorized domestic invention patents and 7 pending patents, along with 84 non-patented technologies, showcasing its commitment to innovation and technology development[43]. - The company reported a total R&D expenditure of CNY 98,489,344.43, which represents 3.93% of total operating revenue[88]. - The number of R&D personnel was 145, making up 23.89% of the total workforce[88]. - The company has 21 ongoing research projects in the epoxy resin business, with 8 new projects initiated during the reporting period, resulting in 8 new products developed[89]. - In the copper-clad laminate business, there are 6 ongoing research projects, leading to the formation of 2 new products[90]. Environmental Compliance - The company has invested in pollution control facilities, including three sets of exhaust gas treatment devices and a wastewater treatment station, to ensure compliance with environmental standards[167]. - The total investment for the environmental project was approximately CNY 378.55 million, with environmental investment accounting for 3.74% of the total[174]. - The company has established an emergency response plan for environmental incidents, aiming to effectively monitor and prevent environmental risks[177]. - The company conducts online monitoring and quarterly inspections of its emissions, ensuring compliance with environmental standards[180]. - The company has received various environmental approvals and permits, including a national pollutant discharge permit obtained in August 2020[173]. Acquisitions and Restructuring - The company completed a significant asset restructuring by acquiring 100% equity of Wuxi Hongren, leading to retrospective adjustments in financial data for 2018 and 2019[22]. - The company has entered into a share purchase agreement to acquire 100% equity of Wuxi Hongren for a transaction price of RMB 1,029 million, indicating strategic expansion efforts[40]. - The company completed the acquisition of 100% equity in Wuxi Hongren Electronic Materials Technology Co., Ltd., with the share capital increasing from 614,411,700 shares to 914,471,311 shares[148]. - The company transitioned its industry classification from "Chemical Raw Materials and Chemical Products Manufacturing" to "Computer, Communication and Other Electronic Equipment Manufacturing" following a major asset restructuring[98]. Risk Management - The company’s future plans and strategic developments are subject to risks, and investors are advised to be cautious regarding investment risks[6]. - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, particularly for epoxy resin and copper-clad laminate products[124]. - The company emphasizes the importance of maintaining stable relationships with major clients in the copper-clad laminate business, as high customer concentration poses risks to operational performance[126]. - The company recognizes the potential impact of international trade barriers and economic changes on its operations, particularly in the context of the ongoing COVID-19 pandemic[127]. Corporate Governance - The company received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the accuracy and completeness of the financial report[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties, indicating a stable financial governance structure[7]. - The company's financial report is guaranteed to be true, accurate, and complete by the board of directors, with no misleading statements or significant omissions[8]. - The company has no major litigation or arbitration matters for the current year[146]. - The company has no significant changes in accounting policies or estimates during the reporting period[142].

2020 年第三季度报告 公司代码：603002 公司简称：宏昌电子 宏昌电子材料股份有限公司 2020 年第三季度报告 1 / 23 2020 年第三季度报告 一、 重要提示 二、 公司基本情况. 11[ 重要事项 四、 附录 目录 2 / 23 2020 年第三季度报告 单位：元 币种：人民币 一、 重要提示 1.1 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、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人林瑞荣、主管会计工作负责人萧志仁及会计机构负责人（会计主管人员）叶迪宁 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |----------------------------------------------|------------------------------|------------------------------------|-- ...

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 714,634,954.98, a decrease of 8.19% compared to the same period last year[19]. - The net profit attributable to shareholders for the first half of 2020 was CNY 46,704,412.14, representing an increase of 120.40% year-on-year[19]. - The net cash flow from operating activities improved to CNY 66,143,405.48, a significant recovery from a negative cash flow of CNY -174,147,031.15 in the previous year[19]. - The basic earnings per share for the first half of 2020 was CNY 0.08, up 166.67% from CNY 0.03 in the same period last year[20]. - The weighted average return on equity increased to 3.95%, up by 2.06 percentage points compared to the previous year[20]. - The total assets of the company decreased by 7.21% to CNY 1,722,352,871.22 compared to the end of the previous year[19]. - The net assets attributable to shareholders increased slightly by 0.70% to CNY 1,168,318,125.63[19]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 45,219,592.95, which is a 214.02% increase year-on-year[19]. Business Operations - The company primarily engages in the production and sales of electronic-grade epoxy resin, with no significant changes in its main business since establishment[25]. - The product categories include liquid, flame-retardant, solid, and solvent-based epoxy resins, widely used in electronics, coatings, and composite materials[26][27][28]. - The company employs a direct sales model, ensuring close alignment with market demand and providing timely technical support[29][32]. - The production process utilizes DCS automation control, enhancing efficiency and product quality while reducing labor costs[34][35]. - The management team has an average of over 30 years of industry experience, contributing to the company's operational success[36]. - The company emphasizes environmental compliance and offers eco-friendly products, aligning with national safety regulations[32]. - The epoxy resin consumption is closely linked to economic development, with higher consumption in more developed regions[30]. - The company maintains a flexible pricing mechanism that quickly reflects raw material costs in product pricing[29]. - The company achieved an epoxy resin production volume of 42,396.57 tons and sales volume of 41,981.91 tons during the reporting period, maintaining a balance between production and sales[39]. Investments and Acquisitions - The company is in the process of acquiring 100% equity of Wuxi Hongren Electronic Materials Technology Co., Ltd. through a share issuance and is raising supporting funds[47]. - The company has filed for approval from the China Securities Regulatory Commission regarding the share issuance for asset acquisition, with the application accepted on June 30, 2020[49]. - The company plans to continue enhancing product competitiveness by focusing on customer needs and market competition, while promoting land updates, new product development, and major asset restructuring[49]. Financial Management - The company has not disclosed any plans for profit distribution or capital reserve transfer to increase share capital during the reporting period[5]. - There are no significant risks or non-operating fund occupation by controlling shareholders reported[7]. - The company reported a non-recurring profit of 1,484,819.19, with a government subsidy contributing 140,285.80[23]. - The investment income from bank wealth management products amounted to 1,301,079.67[22]. - The company has established a strong brand value and corporate image by reducing reliance on imported products and providing convenient services to domestic and international customers[37]. Environmental Compliance - The company has implemented environmental protection measures, ensuring compliance with national regulations and maintaining a high level of environmental management[81]. - The company has established multiple environmental protection facilities, including three sets of exhaust gas treatment devices and a wastewater treatment station[81]. - The company has implemented a vacuum condensation process for exhaust gas treatment, ensuring compliance with emission standards through quarterly monitoring by qualified testing agencies[82]. - The brine treatment system recycles industrial salt and achieves zero discharge of process wastewater by reusing condensed water in the cooling system[82]. - The company has established an emergency response plan for environmental incidents, which was filed with the local environmental protection bureau[84]. - Daily and quarterly monitoring of waste gas emissions is conducted to ensure stable compliance with pollutant discharge standards[85]. Shareholder Information - As of the end of the reporting period, the total number of common stock shareholders was 30,607[90]. - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 41.29% of total shares, with 16,500,000 shares pledged[92]. Governance and Compliance - The company held its first extraordinary general meeting on February 20, 2020, to approve the related party transactions for 2019 and the expected transactions for 2020[62]. - The annual general meeting on May 14, 2020, approved the 2019 annual report and related proposals[63]. - The second extraordinary general meeting on June 17, 2020, approved the issuance of shares to purchase assets and raise matching funds[63]. - The company has no major litigation or arbitration matters during the reporting period[66]. - There are no significant issues regarding the integrity of the company or its major stakeholders[66]. - The company has committed to avoiding competition with its actual controllers and has adhered to these commitments[65]. Financial Position - The total current assets as of June 30, 2020, amounted to ¥1,218,005,648.03, a decrease of approximately 9.5% from ¥1,346,261,500.92 as of December 31, 2019[102]. - Cash and cash equivalents decreased to ¥283,880,668.69 from ¥375,887,255.33, representing a decline of about 24.5%[102]. - Accounts receivable decreased to ¥398,697,383.72 from ¥422,201,959.42, a reduction of approximately 5.6%[102]. - Inventory increased to ¥105,724,247.43 from ¥93,369,748.80, reflecting an increase of about 13.8%[102]. - Total liabilities decreased to ¥554,034,745.59 from ¥696,073,633.76, a decline of approximately 20.4%[104]. - The total assets as of June 30, 2020, were ¥1,722,352,871.22, down from ¥1,856,213,212.82, indicating a decrease of about 7.2%[104]. - The company's equity attributable to shareholders increased slightly to ¥1,168,318,125.63 from ¥1,160,139,579.06, an increase of approximately 0.7%[104]. Research and Development - Research and development expenses increased by 4.36% to $9.54 million, reflecting higher salaries for R&D personnel[51][52]. - The company has applied for four invention patents related to low dielectric and low loss characteristics of resin materials for 5G circuit boards[45]. Risk Management - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, which could impact growth and profitability[60]. - The company has set aside CNY 3,711,701.98 for special reserves during the reporting period, reflecting a proactive approach to risk management[132].

2020 年第一季度报告 公司代码：603002 公司简称：宏昌电子 宏昌电子材料股份有限公司 2020 年第一季度报告 1 / 21 2020 年第一季度报告 重要提示 . 一、 二、 公司基本情况 . 11Í 重要事项 . 四、 附录 . 目录 2 / 21 2020 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 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、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人林瑞荣、主管会计工作负责人萧志仁及会计机构负责人（会计主管人员）叶迪宁 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |------------------------------------------------|------------------|----------------------|------------------- ...

Financial Performance - The company's operating revenue for 2019 was RMB 1,635,597,484.38, a decrease of 9.33% compared to RMB 1,803,943,407.76 in 2018[22] - The net profit attributable to shareholders for 2019 was RMB 67,426,117.26, representing a significant increase of 66.46% from RMB 40,505,488.24 in 2018[22] - The net cash flow from operating activities decreased by 72.74% to RMB 37,375,540.53 in 2019, down from RMB 137,084,785.49 in 2018[22] - The total assets as of the end of 2019 were RMB 1,856,213,212.82, a decrease of 5.28% from RMB 1,959,752,264.88 at the end of 2018[22] - The net assets attributable to shareholders increased by 4.51% to RMB 1,160,139,579.06 at the end of 2019, compared to RMB 1,110,110,071.37 at the end of 2018[22] - The basic earnings per share for 2019 was RMB 0.12, an increase of 50.00% from RMB 0.08 in 2018[22] - The company achieved operating revenue of RMB 1.636 billion, a decrease of 9.33% year-on-year[62] - Net profit for the period was RMB 76.19 million, an increase of 52.36% year-on-year, with earnings per share of RMB 0.12[62] - The company reported a total asset value of RMB 1.856 billion, a decrease of 5.28% year-on-year, while equity attributable to shareholders increased by 4.51% to RMB 1.160 billion[62] Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.63 per 10 shares, amounting to approximately RMB 38,707,937.10, which is 50.80% of the net profit attributable to shareholders[4] - The company distributed cash dividends amounting to 38,707,937.10 RMB in 2019, representing 50.80% of the net profit attributable to ordinary shareholders[131] - In 2018, the cash dividends distributed were 25,190,879.70 RMB, accounting for 50.37% of the net profit attributable to ordinary shareholders[131] - The company has a policy to distribute at least 30% of the annual distributable profit as cash dividends, provided cash flow is sufficient[130] - The company has a clear and complete decision-making process for cash dividend distribution, ensuring compliance with its articles of association[130] - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[132] Operational Efficiency - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[4] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4] - The company’s asset-liability ratio improved to 37.50%, a decrease of 5.86 percentage points year-on-year[62] - The company’s cash flow from operating activities decreased by 72.74% to RMB 37.38 million[63] - The company’s sales expenses increased by 26.64% to RMB 54.22 million, while R&D expenses decreased by 7.93% to RMB 22.25 million[63] Market and Product Development - The company primarily engages in the production and sales of electronic-grade epoxy resin, with no changes in its main business since establishment[34] - The company plans to continue expanding its market presence in the electronics and coatings sectors, leveraging its strong product characteristics[36] - The company achieved a production volume of 92,111.18 tons and a sales volume of 92,669.64 tons of epoxy resin, maintaining a balance between production and sales[51] - The company is planning to expand production capacity by 500 tons/year for high-frequency, high-speed 5G circuit board resin, with a total investment of RMB 30 million[60] - The company aims to enhance its product competitiveness by focusing on high-end, environmentally friendly products and customized solutions[91] - The company intends to maintain its leading position in the electronic and coating industries while expanding into environmentally friendly, specialty, and customized products[122] Research and Development - The company holds 24 authorized invention patents and has 80 non-patented technologies in use, showcasing its strong R&D capabilities[43] - The company has established a research and development center for electronic-grade epoxy resin in Guangdong Province, holding 24 invention patents by the end of 2019[96] - The total R&D investment amounted to CNY 98,024,799.26, accounting for 5.99% of total revenue[74] - The company had a total of 20 ongoing R&D projects, with 6 new products developed during the reporting period[75] - Research and development efforts include the application for four patents related to low dielectric, low loss properties for 5G copper-clad laminates[60] Environmental Responsibility - The company has committed to high environmental standards and aims to achieve harmonious environmental conditions around its operations[122] - The company has invested in pollution control facilities, ensuring compliance with environmental regulations[171] - The company has achieved zero discharge of process wastewater through advanced treatment systems[176] - The company has established emergency response plans for environmental incidents[178] - The company has been classified as a key pollutant discharge unit by environmental authorities, with specific emissions monitored[168] Strategic Initiatives - The company is planning a major asset restructuring to acquire 100% equity of Wuxi Hongren Electronic Materials Technology Co., Ltd.[61] - The company is in the process of negotiating land compensation with the government, with an estimated fair value of the land reserve between RMB 520 million and RMB 620 million[56] - The company will establish strategic alliances with upstream suppliers to control procurement costs and enhance market competitiveness[119] - The company has implemented a series of management systems to enhance its R&D capabilities, including procedures for design development and intellectual property management[96] Customer and Market Engagement - The company has nearly 3,000 customers, with transactions occurring with about 1,000 of them during the reporting period, enhancing its market responsiveness[42] - The company’s core competitive advantage lies in its early entry into the epoxy resin market in China and its established brand value among domestic and international clients[42] - The company’s operational model emphasizes direct sales and a flexible pricing mechanism based on raw material costs, allowing for quick market adaptation[40] - The company’s sales strategy considers market demand, competition, and customer relationships to determine pricing, allowing for adjustments based on market conditions[110] Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 33,410, down from 34,921 at the end of the previous month[195] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 41.29% of the total shares, with 16,500,000 shares pledged[198] - The total number of ordinary shares after the recent changes is 614,411,700, with 99.28% being freely tradable[187] Miscellaneous - The company has not reported any major litigation or arbitration matters during the reporting period[140] - The company has not disclosed any significant related party transactions or changes in related party transactions during the reporting period[147] - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[149] - The company has not reported any significant contracts or their performance during the reporting period[151]

Financial Performance - Operating revenue for the period from January to September was CNY 1,204,120,956.90, down 9.47% year-on-year[17] - Net profit attributable to shareholders for the same period was CNY 45,013,149.01, a decrease of 6.47% compared to the previous year[17] - Basic and diluted earnings per share were both CNY 0.07, down 12.50% from the previous year[17] - The company reported a net loss of CNY 17,245.83 from the disposal of non-current assets during the period[20] - The company recorded a 103.24% increase in other income to ¥8,144,828.90, mainly from government subsidies related to operating activities[29] - The company reported a net profit margin improvement, with retained earnings increasing from ¥338,436,067.88 to ¥358,258,337.19, an increase of approximately 5.4%[49] - The company reported a total profit of ¥26,222,363.06 for Q3 2019, compared to ¥15,453,751.96 in Q3 2018, reflecting a growth of 69.5%[60] - The total comprehensive income for Q3 2019 was ¥23,932,466.81, compared to ¥13,505,003.85 in Q3 2018, indicating a significant increase[63] Cash Flow - The net cash flow from operating activities for the first nine months was negative CNY 54,127,306.94, a decline of 153.75% year-on-year[17] - Operating cash inflow totaled CNY 1,400,456,365.55, a decrease from CNY 1,461,942,621.49 in the previous period[76] - Operating cash outflow amounted to CNY 1,454,583,672.49, compared to CNY 1,361,242,360.16 previously, resulting in a net cash flow from operating activities of -CNY 54,127,306.94[76] - Investment activities generated a net cash flow of -CNY 3,999,634.15, significantly improved from -CNY 105,563,560.33 in the prior period[76] - Financing activities resulted in a net cash flow of CNY 6,180,495.88, a recovery from -CNY 51,939,867.88 previously[81] - The company received CNY 3,847,520.28 in tax refunds, a significant increase from CNY 236,382.93 previously[78] - The company paid CNY 32,424,192.31 in dividends and interest, down from CNY 43,037,226.48 in the previous period[80] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,760,212,760.94, a decrease of 10.18% compared to the end of the previous year[17] - Total liabilities decreased from ¥849,642,193.51 to ¥630,166,520.62, a reduction of approximately 25.8%[45] - Current liabilities decreased from ¥801,878,470.25 to ¥591,044,354.17, a decline of about 26.2%[45] - Non-current liabilities decreased from ¥47,763,723.26 to ¥39,122,166.45, a decrease of approximately 18.2%[45] - Cash and cash equivalents decreased from ¥265,476,452.81 to ¥209,064,883.55, a reduction of about 21.2%[47] - Accounts receivable decreased from ¥293,781,839.15 to ¥207,234,315.00, a decline of approximately 29.5%[47] - Inventory levels fell by 48.60% to ¥86,109,078.68, driven by increased market demand for epoxy resin[29] Shareholder Information - The total number of shareholders at the end of the reporting period was 34,950[26] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., held 253,702,000 shares, accounting for 41.29% of the total shares[26] Future Outlook - The company anticipates uncertainties in future market prices and sales conditions, urging investors to be aware of investment risks[34] - The company plans to focus on market expansion and new product development in the upcoming quarters[49] Research and Development - Research and development expenses for Q3 2019 were ¥7,154,725.90, an increase of 8.1% from ¥6,619,994.07 in Q3 2018[60] - Research and development expenses increased to ¥5,487,761.51 in Q3 2019 from ¥4,328,477.26 in Q3 2018, marking an increase of about 26.8%[67]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 778,376,945.44, a decrease of 7.09% compared to CNY 837,771,235.64 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 21,190,750.70, down 39.05% from CNY 34,769,035.78 year-on-year[22]. - The net profit after deducting non-recurring gains and losses was CNY 14,400,408.84, a decline of 56.09% compared to CNY 32,795,004.87 in the previous year[22]. - The net cash flow from operating activities was negative at CNY -174,147,031.15, a significant decrease from CNY 21,359,573.55 in the same period last year, representing a decline of 915.31%[22]. - Basic earnings per share for the first half of 2019 were CNY 0.03, a decrease of 50.00% compared to CNY 0.06 in the same period last year[23]. - The diluted earnings per share were also CNY 0.03, reflecting the same 50.00% decline year-on-year[23]. - The weighted average return on net assets was 1.89%, down 1.23 percentage points from 3.12% in the previous year[23]. - The company reported a significant decrease in short-term borrowings from CNY 45,000,000.00 to CNY 40,000,000.00, a reduction of about 11.1%[121]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,704,235,975.68, down 13.04% from CNY 1,959,752,264.88 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were CNY 1,106,113,773.51, a slight decrease of 0.36% from CNY 1,110,110,071.37 at the end of the previous year[22]. - The company’s cash and cash equivalents decreased by 46.23% to 232,974,912.18 RMB, primarily due to increased payments for raw materials[51]. - The company’s inventory decreased by 37.33% to 104,977,470.95 RMB, reflecting a reduction in raw materials, work-in-progress, and finished goods[51]. - The company’s liabilities included a significant increase in short-term bank loans, rising by 575% to 54,000,000.00 RMB[53]. - Total liabilities decreased from CNY 849,642,193.51 to CNY 598,122,202.17, a reduction of about 29.6%[121]. Operational Highlights - The company achieved a production volume of 43,649.90 tons and sales volume of 45,050.66 tons of epoxy resin in the first half of 2019, maintaining a balance between production and sales[41]. - The average selling price of epoxy resin was 17,239.33 RMB/ton (excluding tax), a decrease of 10.23% compared to 19,204.16 RMB/ton in the same period last year[41]. - The company maintains a direct sales model, closely aligning with market demand and providing high-quality technical services[36]. - The company has a strong technical service capability, providing timely support and training to clients post-delivery[37]. - The company utilizes a DCS automated control system in production, enhancing efficiency and product quality[37]. Risks and Challenges - The company faces risks from significant increases in fixed assets leading to potential profit declines due to depreciation as the Zhuhai plant commences production[58]. - Fluctuations in raw material prices and changes in downstream industry demand pose risks to the growth and profit levels of the epoxy resin industry[58]. - The company is subject to increased safety and environmental regulations, which may raise operational costs and compliance risks[58]. - The international economic environment presents uncertainties, including trade protectionism and currency fluctuations, impacting the epoxy resin industry[58]. Environmental and Social Responsibility - The company has centralized the production of products with waste gas emissions to its Zhuhai plant, resulting in no waste gas emissions from the Guangzhou plant[84]. - The Zhuhai plant has implemented three sets of waste gas treatment devices and a wastewater treatment station, ensuring compliance with environmental standards[88]. - The company has achieved zero discharge of process wastewater through its saltwater treatment system, which recycles industrial salt and reuses condensate water[88]. - The company has established a complete environmental monitoring system, with quarterly emissions monitoring conducted by a qualified third-party testing company[88]. - The company has provided a total of CNY 12.5 million in educational assistance to 7 outstanding students from impoverished families[80]. Shareholder Information - The total number of shares after the recent changes is 614,411,700, with 99.28% being unrestricted circulating shares[96]. - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 41.29% of total shares[104]. - Total number of common shareholders at the end of the reporting period is 36,613[101]. Corporate Governance - The company has not disclosed any significant related party transactions or changes in related party transactions during the reporting period[68]. - The company has fulfilled commitments to avoid competition with its actual controllers, ensuring compliance with competitive regulations[61]. - The company appointed Tianzhi International Accounting Firm for the 2019 audit services as per the shareholders' meeting resolution[62]. - There are no significant litigation or arbitration matters reported during the reporting period[64].