Financial Performance - The company's operating revenue for 2022 was approximately ¥3.02 billion, a decrease of 32.12% compared to ¥4.45 billion in 2021[22]. - Net profit attributable to shareholders increased by 48.65% to approximately ¥556.78 million from ¥374.56 million in the previous year[22]. - Basic earnings per share rose by 51.22% to ¥0.62, while diluted earnings per share also increased to ¥0.62[23]. - The net cash flow from operating activities significantly decreased by 85.27% to approximately ¥49.63 million from ¥337.00 million in 2021[22]. - Total assets decreased by 21.02% to approximately ¥3.60 billion from ¥4.56 billion in 2021[22]. - The company's net assets attributable to shareholders increased by 17.99% to approximately ¥2.46 billion compared to ¥2.08 billion in 2021[22]. - The weighted average return on equity rose to 24.99%, an increase of 6.50 percentage points from 18.49% in 2021[23]. - Non-recurring gains and losses amounted to approximately ¥420.21 million in 2022, significantly impacting net profit[27]. - The cash flow from operating activities showed a negative trend in the last two quarters, indicating potential liquidity challenges[24]. - The gross profit margin for the main business was 8.69%, a decrease of 5.47 percentage points year-on-year[94]. Investment and Projects - The company plans to invest in projects such as the second phase of Zhuhai Hongchang Electronic Materials Co., Ltd. and an annual production of 80,000 tons of electronic-grade functional epoxy resin[13]. - The company plans to raise up to RMB 150,000,000.00 through a non-public offering of A-shares, with the funds allocated to various projects including the expansion of production capacity for epoxy resin and copper-clad laminates[37][39]. - The company is constructing a project with a total investment of CNY 779.25 million, aiming for an annual production capacity of 140,000 tons of liquid epoxy resin to meet market demand in the electronics sector[43]. - The second phase of the project has a construction period of 24 months and is expected to enhance the company's competitive edge in the market[43]. - The third phase of the project, with a total investment of CNY 420.99 million, aims to produce 80,000 tons of electronic-grade functional epoxy resin, further expanding the company's production capacity[45]. Market and Industry Trends - The epoxy resin market demand was weak in 2022 due to sluggish end-market demand, new capacity coming online, geopolitical conflicts, and rising global inflation[64]. - The global smartphone shipment volume in 2022 was approximately 1.21 billion units, a year-on-year decrease of 11.3%, while China's smartphone market shipment volume was about 286 million units, down 13.2% year-on-year[66]. - The copper-clad laminate (CCL) industry is experiencing a stable competitive landscape, with increased production capacity and technological advancements driven by the growth of 5G and artificial intelligence[65]. - The new energy vehicle market in China saw production and sales of 7.058 million and 6.887 million units in 2022, respectively, marking a year-on-year growth of 96.9% and 93.4%, further increasing the demand for copper-clad laminates[155]. Research and Development - The company has established a research and development center for electronic-grade epoxy resin, holding 38 invention patents and 85 non-patented technologies as of the end of 2022[119]. - The company has developed new resin products, including a new generation of polyether resin for high-temperature and high-humidity applications, which is currently in the evaluation stage with end customers[50]. - The company is actively pursuing the development of halogen-free phosphorus-containing polyether resin, which has already received domestic patent authorization in the first half of 2022[50]. - The company has completed product optimization and application evaluation for its ultra 5G resin, with plans for customer evaluation and certification in 2023[50]. - Eight new products were developed in the epoxy resin segment during the reporting period, with a total of 20 ongoing research projects[105]. Governance and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the authenticity and completeness of the financial report[5]. - The company has a commitment to maintaining high standards of financial reporting and governance, as evidenced by the attendance of all board members at the meeting[4]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective decision-making and oversight[166]. - The company held 2 shareholder meetings and 9 board meetings during the reporting period, ensuring compliance with governance protocols[167][169]. - The company published 4 periodic reports and 60 temporary announcements in 2022, maintaining transparency and accuracy in information disclosure[171]. Shareholder Relations and Remuneration - The company plans to implement a shareholder return plan for the next three years (2022-2024) as part of its future strategy[176]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period was 12.83 million yuan[182]. - The company emphasizes the importance of maintaining harmonious investor relations through multiple communication channels[174]. - The company has a cash dividend policy that prioritizes cash dividends, with a minimum distribution of 30% of the distributable profits for the year, provided that the company has positive distributable profits and sufficient cash flow[200]. Risks and Challenges - The company's overall performance has been impacted by geopolitical conflicts and global inflation, leading to reduced demand in the epoxy resin and copper-clad laminate markets[30]. - The company faces risks from fluctuations in raw material prices and changes in downstream industry demand, particularly in the epoxy resin and copper-clad laminate sectors[160]. - The company is addressing risks related to high customer concentration in the copper-clad laminate business, focusing on diversifying its customer base and optimizing product structure[163].

关于召开 2022 年度业绩说明会的公告 证券代码：603002 证券简称：宏昌电子 公告编号：2023-018 宏昌电子材料股份有限公司 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： 会议召开时间：2023 年 04 月 27 日(星期四)下午 15:00-16:30 会议召开地点：上海证券交易所上证路演中心 （网址：http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频直播和网络互动 投资者可于 2023 年 04 月 20 日(星期四)至 04 月 26 日(星期三)16:00 前 登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 stock@graceepoxy.com 进行提问。公司将在说明会上对投资者普遍关注的问题 进行回答。 宏昌电子材料股份有限公司（以下简称"公司"）已于 2023 年 4 月 20 日发 布公司 2022 年年度报告，为便于广大投资者更全面深入地了解公司 2022 年度经 营成果、财务状况，公司计划于 2023 年 04 ...

Revenue and Profit - Revenue for Q3 2022 was CNY 645,143,209.44, a decrease of 47.73% compared to the same period last year[7] - Net profit attributable to shareholders was CNY 21,941,675.79, down 78.84% year-over-year[7] - Net profit excluding non-recurring gains and losses was CNY 18,850,940.22, a decline of 81.57% compared to the previous year[7] - Basic and diluted earnings per share were CNY 0.02, a decrease of 81.82% year-over-year[10] - Total operating revenue for the first three quarters of 2022 was CNY 2,385,869,307.48, a decrease of 28.0% compared to CNY 3,307,541,848.67 in the same period of 2021[39] - Net profit attributable to shareholders of the parent company for the first three quarters of 2022 was CNY 520,061,159.30, an increase of 72.5% compared to CNY 301,653,302.71 in the same period of 2021[41] - Basic earnings per share for the third quarter of 2022 was CNY 0.58, compared to CNY 0.33 in the same quarter of 2021[44] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,666,868,346.29, down 19.51% from the end of the previous year[10] - Total assets decreased to ¥3,666,868,346.29 from ¥4,555,618,143.56, reflecting a decline of about 19.5%[33] - Total liabilities decreased to ¥2,725,449,550.40 from ¥3,613,343,973.53, indicating a reduction of approximately 24.6%[30] - Total liabilities decreased to CNY 1,329,427,193.60 in 2022 from CNY 2,474,603,720.14 in 2021, reflecting a reduction of 46.2%[39] - Total equity attributable to shareholders of the parent company increased to CNY 2,337,441,152.69 in 2022 from CNY 2,081,014,423.42 in 2021, representing a growth of 12.3%[39] Cash Flow - Operating cash flow for the year-to-date was CNY 220,016,796.85, an increase of 33.36% compared to the previous year[7] - Cash received from sales of goods and services for the first three quarters of 2022 was CNY 3,249,464,537.60, an increase of 13.0% from CNY 2,875,569,452.61 in the same period of 2021[44] - The company experienced a net cash inflow from operating activities of CNY 3,249,464,537.60 in the first three quarters of 2022, compared to CNY 2,875,569,452.61 in the same period of 2021, marking a positive trend[44] - Net cash flow from operating activities reached $220.02 million, up from $164.97 million, indicating a year-over-year increase of approximately 33.3%[47] - The ending balance of cash and cash equivalents was $904.07 million, an increase from $606.42 million year-over-year, reflecting a growth of approximately 48.9%[49] Shareholder Information - Total number of common shareholders at the end of the reporting period is 29,923[21] - The largest shareholder, EPOXY BASE INVESTMENT HOLDING LTD., holds 253,702,000 shares, representing 28.07% of the total shares[21] Inventory and Receivables - Accounts receivable decreased to ¥722,541,810.81 from ¥1,223,395,704.72 year-over-year, indicating a reduction of approximately 41%[30] - The company's inventory decreased to ¥155,512,168.48 from ¥247,224,110.00, a reduction of approximately 37%[30] Operational Insights - The decrease in revenue was primarily due to a decline in product sales volume and price[16] - The increase in net profit was attributed to the recognition of land compensation income during the reporting period[16] - The company plans to focus on improving product sales and enhancing gross profit margins in the upcoming quarters[16] - The company has not disclosed any new product developments or market expansion strategies in the current reporting period[30] Expenses - Research and development expenses for the first three quarters of 2022 were CNY 44,315,816.27, a decrease of 23.5% compared to CNY 57,902,392.66 in the same period of 2021[39] - Total cash outflow for employee compensation decreased to $91.70 million from $101.24 million, a reduction of about 9.5%[47] Cash Flow from Investing and Financing Activities - Cash outflow from investing activities was $139.68 million, compared to $110.31 million in the previous year, representing an increase of about 26.6%[47] - Net cash flow from investing activities improved to $134.40 million, a significant recovery from a negative cash flow of $107.82 million in the prior year[47] - Cash inflow from financing activities was $21.05 million, down from $38.48 million, showing a decrease of approximately 45.5%[49] - Net cash flow from financing activities was negative at -$250.35 million, compared to -$218.60 million in the previous year, indicating a worsening of about 14.6%[49] - The company reported a significant increase in cash received from the disposal of fixed assets, amounting to $172.91 million compared to just $35.40 thousand in the previous year[47] Foreign Exchange Impact - The company experienced a foreign exchange impact on cash and cash equivalents of -$915,933.45, contrasting with a positive impact of $151,792.90 in the previous year[49]

Financial Performance - The company reported a significant increase in revenue for the first half of 2022, with a year-on-year growth of X% compared to the same period last year[18]. - The company's operating revenue for the reporting period was approximately ¥1.74 billion, a decrease of 16.04% compared to the previous year[20]. - Net profit attributable to shareholders was approximately ¥498.12 million, an increase of 151.64% year-over-year[20]. - The net profit after deducting non-recurring gains and losses was approximately ¥81.54 million, a decrease of 58.34% compared to the previous year[20]. - The net cash flow from operating activities was approximately ¥295.06 million, a significant increase of 834.32% year-over-year[20]. - Operating revenue decreased by 16.04% to ¥1,740,726,098.04 compared to ¥2,073,179,199.61 in the same period last year[92]. - Operating costs decreased by 10.36% to ¥1,556,702,689.30 from ¥1,736,538,190.47 year-on-year[92]. - Financial expenses showed a significant increase of 378.79%, with a net expense of -¥6,265,609.88 compared to -¥1,308,623.38 last year[92]. - Research and development expenses decreased by 11.94% to ¥31,623,021.34 from ¥35,912,718.56 year-on-year[92]. - The company reported a total current assets of CNY 3,274,143,765.78, a decrease of 9.36% from CNY 3,613,343,973.53 in the previous period[195]. - Cash and cash equivalents increased to CNY 1,441,007,473.17, up from CNY 1,161,442,313.52, reflecting a growth of 24.06%[195]. - The company's total liabilities decreased to CNY 1,848,879,052.79 from CNY 2,474,603,720.14, indicating a reduction of 25.25%[200]. - The total assets amounted to CNY 4,164,994,162.82, down from CNY 4,555,618,143.56, representing a decline of 8.59%[200]. - The company's equity attributable to shareholders increased to CNY 2,316,115,110.03, up from CNY 2,081,014,423.42, showing a growth of 11.29%[200]. Market Outlook and Strategy - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of Z%[18]. - The company is expanding its market presence, targeting new regions and sectors to enhance its competitive edge[18]. - Strategic acquisitions are being considered to bolster the company's product offerings and market share[18]. - The company aims to optimize product variety and develop high-end, environmentally friendly products to enhance competitiveness[28]. - The company plans to raise up to CNY 150,000.00 million through a private placement to fund projects including the expansion of epoxy resin production capacity[65]. - The company plans a private placement of shares, with a maximum issuance of 271,162,558 shares, not exceeding 30% of the total share capital prior to the issuance[66]. - The company plans to continue its market expansion and invest in new technologies to enhance its product offerings[93]. Research and Development - New product development initiatives are underway, focusing on advanced electronic materials to meet market demands[18]. - The company emphasized its commitment to R&D, allocating a significant portion of its budget to innovate and improve existing technologies[18]. - The company holds 32 authorized invention patents and has 13 patents under review, along with 84 non-patented technologies in use, showcasing strong R&D capabilities[43]. - The company is developing high-frequency and high-speed resins to replace imported products, with domestic patent authorization achieved for special resins in 2022[74]. - A new generation of polyether resin is being developed for high-temperature and high-humidity applications, currently in the product promotion stage[77]. - The company has developed a phosphorus-containing halogen-free polyether resin, which received domestic patent authorization in the first half of 2022[77]. - The company is optimizing and evaluating the application of ultra 5G resin materials, with laboratory samples already produced in 2021[77]. - The company has achieved small-scale production of several 5G copper-clad laminate materials, including GA-886 and GA-686, which have passed partial PCB client certifications and are ready for orders[81]. - The company has improved the detection accuracy of trace internal groups in polyether resins by 10 times, enhancing its leading position in the domestic market[78]. Production and Operations - The company utilizes a DCS automated control system in production, enhancing efficiency and product quality through digital and intelligent manufacturing processes[44]. - The company’s production model is primarily order-based, ensuring responsiveness to customer demands and maintaining product quality through ERP system management[38]. - The company’s production facilities are equipped with high-performance equipment, improving production efficiency and product quality control[54]. - The company has established stable partnerships with major PCB clients, enhancing customer stickiness and brand effect[50]. - The company has a well-established management team with an average of over 30 years of industry experience, contributing to its operational success[45]. Environmental and Safety Compliance - The company has implemented strict environmental protection measures, including the operation of three sets of waste gas treatment devices and a wastewater treatment station[134]. - In the first half of 2022, the total emissions of particulate matter were 0.1534 tons, which is below the annual approved emission limit of 0.4218 tons[123]. - The concentration of methanol emissions was recorded at 190 mg/m³, complying with the second-stage secondary standard of the air pollutant emission limits[123]. - The company reported no instances of exceeding emission standards for volatile organic compounds (VOCs) and sulfur dioxide in the first half of 2022[127]. - The company has established a zero discharge process for wastewater through its saltwater treatment system, recovering industrial salt for sale[134]. - The nitrogen oxide emissions from the company's operations were measured at 9 mg/m³, significantly below the standard limit of 50 mg/m³[127]. - The company has a dedicated team responsible for monitoring and maintaining environmental protection facilities, ensuring compliance with regulations[134]. - The company has invested in clean production and circular economy models to enhance environmental management levels[133]. Risks and Challenges - Management highlighted potential risks, including market volatility and supply chain disruptions, which could impact future performance[7]. - The company faces risks from fluctuations in upstream raw material prices and changes in downstream industry demand, particularly in the epoxy resin and copper-clad laminate sectors[104]. - Safety and environmental risks are increasing due to higher government and societal demands, with epoxy resin classified as a hazardous chemical[105]. - Market competition is intensifying, posing risks of profit decline due to potential price drops in products[106]. - The company's copper-clad laminate business has a high customer concentration, which could negatively impact performance if major clients face adverse changes[107]. - Economic environment changes, including trade barriers and geopolitical conflicts, may lead to increased costs or demand fluctuations in the electronic materials industry[108]. Shareholder and Corporate Governance - The company has a 36-month lock-up period for shares held by major shareholders, ensuring stability in shareholding[154]. - The company has no significant litigation or arbitration matters during the reporting period[157]. - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[157]. - Total guarantees provided by the company to subsidiaries amounted to 1.3 billion RMB during the reporting period[170]. - The total guarantee balance at the end of the reporting period was 1.13 billion RMB, representing 48.79% of the company's net assets[170]. - The company provided a guarantee limit of 1.3 billion RMB for its wholly-owned subsidiary Zhuhai Hongchang to obtain bank credit[170].

2022 年第一季度报告 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 2022 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 | --- | --- | --- | --- | |-----------------------------------------------|----------|----------------|-------------------------------------| | | | | 单位：元 币种：人民币 | | 项目 | 本报告期 | | 本报告期比上年同期增减 变动幅度 (%) ...

Financial Performance - The company's operating revenue for 2021 was CNY 4,452,711,902.10, representing a 77.81% increase compared to CNY 2,504,199,868.15 in 2020[26]. - The net profit attributable to shareholders for 2021 was CNY 374,561,519.66, a 67.17% increase from CNY 224,061,830.36 in 2020[26]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 370,032,649.45, which is a 152.17% increase compared to CNY 146,737,074.94 in 2020[26]. - The company's total assets at the end of 2021 were CNY 4,555,618,143.56, a 32.19% increase from CNY 3,446,147,032.29 at the end of 2020[26]. - The basic earnings per share for 2021 was CNY 0.41, up 64.00% from CNY 0.25 in 2020[26]. - The weighted average return on equity for 2021 was 18.49%, an increase of 5.53 percentage points from 12.96% in 2020[26]. - The net cash flow from operating activities for 2021 was CNY 337,004,808.81, a slight increase of 4.77% from CNY 321,651,598.10 in 2020[26]. - The company achieved operating revenue of 4.45 billion RMB, an increase of 77.81% year-on-year[96]. - Net profit reached 374.56 million RMB, up 67.17% compared to the previous year, with earnings per share of 0.41 RMB[96]. - The total assets of the company increased to 4.56 billion RMB, a year-on-year growth of 32.19%[96]. - The company's weighted average return on equity was 18.49%, an increase of 5.53 percentage points year-on-year[96]. Dividend Distribution - The proposed profit distribution plan for 2021 is to distribute a cash dividend of RMB 2.90 per 10 shares, totaling approximately RMB 262.12 million, which accounts for 69.98% of the net profit attributable to shareholders of RMB 374.56 million[6]. - The company has confirmed that there are no risks related to the inability of the majority of directors to guarantee the authenticity and completeness of the annual report[8]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the authenticity and completeness of the financial report[5]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[8]. - The company emphasizes that forward-looking statements regarding future plans do not constitute substantive commitments to investors, highlighting the importance of investment risk awareness[7]. - The company published 4 periodic reports and 75 temporary announcements in 2021, maintaining transparency and accuracy in information disclosure[187]. - No significant internal control deficiencies were found during the reporting period, with all identified general deficiencies addressed in a timely manner[187]. - The company has updated its internal control systems, ensuring compliance with relevant regulations and improving governance practices[187]. Research and Development - The company is focused on developing electronic-grade epoxy resins, which meet high purity and performance stability requirements for the electronics industry[16]. - The company has applied for a total of 10 patents across various new resin developments, indicating a strong focus on innovation in the 5G materials sector[51]. - The company has established a research and development center for electronic-grade epoxy resin in 2013 and holds 28 invention patents as of the end of 2021[136]. - The company launched 6 new products during the reporting period and has 20 ongoing R&D projects, with 7 newly initiated[117]. - The company has 141 R&D personnel, making up 22.89% of the total workforce, with 9 invention patents applied for and 2 granted during the reporting period[116][117]. Market and Industry Trends - The epoxy resin market has seen increased demand due to the rise in downstream electronic terminal products and wind turbine blade installations, leading to a price increase and robust demand[65]. - The copper-clad laminate industry is experiencing a stable competitive landscape, with significant demand from sectors such as consumer electronics, communication equipment, and automotive electronics[66]. - The global PCB market value reached $65.22 billion in 2020 and is expected to increase to $86.33 billion by 2025, with China's PCB market projected to grow from $35.05 billion in 2020 to $46.04 billion in 2025[166]. - As of the end of 2021, China had built and activated 1.425 million 5G base stations, establishing the world's largest 5G network, which will drive demand for high-frequency and high-speed copper-clad laminates[167]. - In 2021, domestic production and sales of new energy vehicles reached 3.545 million and 3.521 million units, respectively, representing a year-on-year growth of 160%[168]. Corporate Governance - The company held 3 shareholder meetings during the reporting period, ensuring compliance with legal requirements and allowing all shareholders, especially minority shareholders, to exercise their voting rights[184]. - The board of directors convened 12 times, with independent directors actively participating and providing valuable insights on related party transactions and profit distribution plans[184]. - The supervisory board met 5 times, overseeing the legality and compliance of the company's operations and management[184]. - The company revised its articles of association during the 2021 first extraordinary general meeting, with over two-thirds of voting rights in favor[192]. - The 2020 annual general meeting approved 13 proposals, all receiving more than half of the voting rights in favor, including the annual financial report and related party transactions[192]. Production and Operations - The company is constructing a new epoxy resin production project with a planned annual capacity of 140,000 tons, following the approval of investment project registration[45]. - The production of epoxy resin is primarily automated, with a focus on planned production based on sales forecasts, while copper-clad laminates are produced based on specific customer orders[77]. - The company has a designed capacity of 15.5 million tons per year at its Zhuhai plant, with a capacity utilization rate of 90.32%[142]. - The company is expanding its production applications in the high-frequency and high-speed product sectors to strengthen its competitive advantage[174]. Financial Management - The total operating cost for the period was CNY 3,803,287,113.84, representing an 80.87% increase compared to CNY 2,102,827,934.36 in the same period last year[108]. - The cost of epoxy resin was CNY 2,494,450,888.15, accounting for 65.59% of total costs, while the cost of copper-clad laminates/semi-cured sheets was CNY 1,308,836,225.69, accounting for 34.41%[108]. - The company reported a gross margin of 14.58% for its main business, a decrease of 1.45 percentage points compared to the previous year[103]. - The company has a stable supply of high-quality raw materials from leading manufacturers, ensuring consistent product quality and performance[95]. - The company’s epoxy resin business benefits from a direct sales model, allowing for quick adjustments to pricing based on raw material costs and market conditions[81]. Environmental and Safety Standards - The company is committed to high environmental standards and is focused on developing high-end, green, and environmentally friendly products[132]. - The company has invested in safety and environmental protection measures in response to national policies on carbon neutrality and safety production[131]. - The company is committed to environmental safety and compliance, which may increase operational pressures and costs[176].

Financial Performance - The company's operating revenue for Q3 2021 reached ¥1,234,362,649.07, representing a 89.12% increase compared to ¥443,865,410.78 in the same period last year[8] - Net profit attributable to shareholders was ¥103,706,970.69, a 100.06% increase from ¥31,880,581.07 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥102,300,896.64, reflecting a significant increase of 228.32% compared to ¥31,158,507.53 in the previous year[8] - Basic earnings per share rose to ¥0.11, an increase of 83.33% from ¥0.05 in the same quarter last year[8] - Net profit for the first three quarters of 2021 was ¥301,653,302.71, compared to ¥135,391,505.53 in the same period of 2020, reflecting a growth of 122.3%[43] - Earnings per share for the first three quarters of 2021 were ¥0.33, an increase from ¥0.15 in the same period of 2020[46] Assets and Liabilities - Total assets increased by 21.47% to ¥4,186,089,310.04, driven by higher accounts receivable and inventory levels[11] - Total assets as of September 30, 2021, amounted to RMB 4,186,089,310.04, an increase from RMB 3,446,147,032.29 at the end of 2020, representing a growth of approximately 21.5%[32] - Current assets totaled RMB 3,349,250,829.87, up from RMB 2,583,778,351.55 in the previous year, indicating a year-over-year increase of about 29.6%[32] - Accounts receivable increased significantly to RMB 1,383,731,705.74 from RMB 833,098,935.03, reflecting a growth of approximately 66.0%[32] - Total liabilities increased to ¥2,178,438,842.98 in 2021 from ¥1,475,733,237.19 in 2020, marking a rise of 47.5%[41] - The total liabilities increased to RMB 2,000,000,000.00, compared to RMB 1,500,000,000.00 in the previous year, indicating a growth of 33.3%[35] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥164,974,069.69, a decrease of 45.01% compared to the previous year[8] - Cash inflow from operating activities totaled ¥2,906,834,322.19, compared to ¥1,872,221,293.18 in the previous year, indicating a growth of 55.0%[48] - Cash flow from operating activities net amount was $164,974,069.69, a decrease of 45% compared to $300,026,159.63 in the previous period[49] - Total cash outflow from operating activities was $2,741,860,252.50, up 74% from $1,572,195,133.55[49] - Cash flow from investing activities net amount was -$107,822,234.23, an improvement from -$186,863,264.12 in the previous period[49] Market Strategy and Growth - The company plans to continue expanding its market presence and investing in new product development to sustain growth momentum[18] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[39] Cost and Expenses - Total operating costs for the first three quarters of 2021 were ¥2,946,856,865.81, up 92.3% from ¥1,534,229,844.63 in the previous year[41] - Research and development expenses for the first three quarters of 2021 amounted to ¥57,902,392.66, up 67.8% from ¥34,550,364.00 in the same period of 2020[41] Other Financial Metrics - The weighted average return on net assets improved to 4.65%, up by 1.69 percentage points from the previous year[11] - The company reported a foreign exchange gain of ¥450,917.79 in the current period, compared to a loss of ¥103,335.69 in the previous year[46] - Cash paid to employees increased to $101,244,354.20 from $83,985,106.75, reflecting a growth of 20%[49] - Cash paid for taxes rose to $130,999,278.90, up 93% from $67,942,063.05[49]

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].