Financial Performance - In 2017, the company achieved a net profit of ¥54,255,620.39, with a distributable profit of ¥48,830,058.35 after statutory surplus reserve allocation[6]. - The total distributable profit as of December 31, 2017, was ¥285,931,191.50, after deducting cash dividends of ¥18,000,000.00 paid during the year[6]. - The company's operating revenue for 2017 was CNY 354.28 million, an increase of 6.37% compared to CNY 333.06 million in 2016[24]. - Net profit attributable to shareholders decreased by 22.14% to CNY 53.68 million from CNY 68.94 million in the previous year[24]. - Basic earnings per share decreased by 37.71% to CNY 0.9543 from CNY 1.5321 in 2016[25]. - The weighted average return on equity dropped to 9.09%, a decrease of 10.50 percentage points from 19.59% in 2016[25]. - Gross margin decreased to 35.75%, down 6.58 percentage points compared to the previous year[63]. - The ultra-pure reagent business generated revenue of 236,765,527.36 yuan, up 5.70% year-on-year, with a gross margin of 33.71%, down 5.25 percentage points[63]. - The photoresist supporting reagent business reported revenue of 109,288,930.24 yuan, an increase of 5.68% year-on-year, with a gross margin of 40.16%, down 9.47 percentage points[63]. - The company reported a total of CNY 7.11 million in non-recurring gains for 2017, compared to CNY 5.83 million in 2016[31]. Dividend Policy - The company proposed a cash dividend of ¥3.00 per 10 shares, totaling ¥18,000,000.00, and a capital reserve conversion of 4 shares for every 10 shares, increasing the total share capital to 84,000,000 shares[6]. - A cash dividend of CNY 18,000,000.00 was distributed, representing 33.53% of the net profit attributable to shareholders for the year[137]. - The company implements an active profit distribution policy, prioritizing cash dividends, with a minimum cash distribution of 20% of distributable profits if no major investments are planned[130]. - In mature stages without major expenditures, the company aims for cash dividends to constitute at least 80% of the profit distribution[131]. - The company is committed to conducting at least one profit distribution annually, provided it has positive distributable profits[132]. Operational Model and Strategy - The operational model is based on "sales-driven production," aligning production with customer orders and contracts[34]. - The company adopts a "make-to-order" production model, aligning production plans with customer demand and inventory levels[36]. - The company aims to secure more orders from mainstream panel and semiconductor clients in 2018, focusing on product upgrades and new product development[56]. - The company aims to become a comprehensive supplier that provides integrated solutions based on customer production processes and technical requirements[94]. - The company has established a stable supplier relationship with downstream clients, which is crucial for maintaining high-quality product supply[42]. Market and Industry Position - The company is engaged in the production of ultra-pure reagents and photolithography supporting agents, essential for microelectronics and optoelectronics processes[13]. - The company operates in the semiconductor sector, focusing on integrated circuits and discrete devices, excluding LEDs[13]. - The wet electronic chemicals industry is closely tied to the rapid development of downstream sectors such as new energy, information communication, and consumer electronics, creating significant market opportunities[40]. - The global wet electronic chemicals market capacity was approximately RMB 20.8 billion in 2015, with an expected growth rate of 7% to 8% in the coming years[43]. - The company has successfully replaced imports in the high-end wet electronic chemicals sector, enhancing its competitive position[44]. Research and Development - The company primarily focuses on the R&D, production, and sales of ultra-pure reagents and related chemical products for the microelectronics industry[33]. - Research and development expenses increased by 8.50% to 16,129,958.57 yuan[59]. - The company emphasizes technological innovation and R&D to enhance its core competitiveness, focusing on four main directions: international technology trends, market-driven product development, forward-looking independent R&D, and industry-university-research cooperation[85][86]. - The company is investing in building a high-level R&D team and aims to establish a national-level technology center for wet electronic chemicals[117]. Risks and Challenges - The company has detailed potential industry and operational risks in the report, emphasizing the importance of investor awareness[9]. - The company faces risks related to fluctuations in the prices of key raw materials, which could impact production and operations[122]. - The company faces risks related to unpredictable future technology updates, particularly in the wet electronic chemicals sector, which requires continuous innovation to meet evolving downstream market demands[123]. - Environmental risks are present due to the production process, which, despite being low in pollution, still generates some waste, leading to increased costs for compliance with stricter regulations[126]. Corporate Governance and Shareholder Relations - The board of directors is responsible for proposing profit distribution plans while considering the company's operational needs and investor returns[133]. - The company emphasizes the protection of shareholder rights and actively engages with investors[164]. - The company has committed to social responsibility, including donations to the Red Cross Society[164]. - The company has not disclosed any major related party transactions during the reporting period[158]. Shareholder Structure - The company's stock code is 603078, and it is listed on the Shanghai Stock Exchange[20]. - The top shareholder, Yin Fuhua, holds 16,451,350 shares, representing 27.42% of the total shares[176]. - Jiangyin Jiehua Investment Co., Ltd. is the second-largest shareholder with 4,953,150 shares, accounting for 8.26%[176]. - The company has a total of 10 major shareholders, with the smallest among them, Chen Yongqin, holding 2,025,000 shares, or 3.38%[176]. - The shares held by the top ten shareholders are subject to lock-up agreements, with the earliest expiration in September 2020[178].

Financial Performance - Operating revenue for the first nine months rose by 10.50% to CNY 270,149,998.18 compared to the same period last year[6] - Net profit attributable to shareholders decreased by 14.74% to CNY 43,115,505.99 compared to the same period last year[6] - Basic and diluted earnings per share decreased by 28.06% to CNY 0.8084[7] - Total operating revenue for Q3 2017 was ¥96,110,964.59, an increase of 1.7% compared to ¥93,476,939.76 in Q3 2016[24] - Net profit for Q3 2017 was ¥17,039,074.98, a decrease of 20.7% from ¥21,322,940.85 in Q3 2016[25] - Total operating revenue for the first nine months reached ¥270,149,998.18, an increase of 10.5% compared to ¥244,488,099.03 in the same period last year[26] - Net profit for the third quarter was ¥16,343,544.59, down 23.3% from ¥21,322,940.85 in the previous year[27] - Operating profit for the first nine months was ¥47,790,312.83, a decline of 12.5% from ¥54,722,104.26 year-on-year[26] - The company reported a total profit of ¥48,894,249.83 for the first nine months, down 16.2% from ¥58,338,275.42 year-on-year[26] Assets and Liabilities - Total assets increased by 60.69% to CNY 892,612,820.04 compared to the end of the previous year[6] - Total assets increased to ¥881,082,287.88 in Q3 2017 from ¥555,466,147.47 in the same period last year, reflecting a growth of 58.5%[22] - Total liabilities decreased to ¥144,613,457.11 in Q3 2017 from ¥173,638,437.52 in Q3 2016, a reduction of 16.7%[22] - The company's total equity rose to ¥736,468,830.77 in Q3 2017, compared to ¥381,827,709.95 in Q3 2016, marking an increase of 93.0%[22] Cash Flow - Net cash flow from operating activities decreased by 48.32% to CNY 29,479,527.98 compared to the same period last year[6] - Cash flow from operating activities for the first nine months was ¥29,479,527.98, down 48.7% from ¥57,040,206.37 in the previous year[30] - Cash inflow from financing activities totaled $362.70 million, a notable increase from $40.58 million in the previous year, indicating strong capital raising efforts[34] - The net cash flow from financing activities was $311.66 million, compared to a negative $99.64 million last year, showing a significant turnaround in financing[34] - Cash outflow for purchasing goods and services was $65.09 million, compared to $49.17 million last year, marking a 32.38% increase in operational costs[33] Shareholder Information - The company had a total of 6,547 shareholders at the end of the reporting period[10] - The largest shareholder, Yin Fuhua, holds 27.42% of the shares, totaling 16,451,350 shares[10] Government Support and Other Income - The company received government subsidies amounting to CNY 1,369,994.00 during the reporting period[8] - Non-recurring gains and losses totaled CNY 281,152.46 for the first nine months[9] - Investment income increased by 117% to ¥110,082.19 from interest on idle fundraising investments[13] Changes in Assets - Other receivables increased by 422% to ¥5,517,075.17 due to land deposit payments by subsidiaries[12] - Other current assets surged by 94,813% to ¥250,000,000.00 primarily from idle fundraising investments[12] - Construction in progress decreased by 81% to ¥4,089,325.37 as projects were completed[12] - Non-current assets increased by 27,535% to ¥31,352,742.07 mainly due to prepaid equipment[13] - Capital reserve rose by 532% to ¥374,585,489.65 as a result of the initial public offering[13] - Financial expenses dropped by 46% to ¥759,274.45 due to increased interest income from raised funds[13]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥174,039,033.59, representing a 15.25% increase compared to ¥151,011,159.27 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 10.83% to ¥26,076,431.01 from ¥29,245,021.10 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥25,358,307.16, down 3.71% from ¥26,335,255.07[19]. - The net cash flow from operating activities was ¥37,622,359.07, a decrease of 29.42% compared to ¥53,301,713.58 in the previous year[19]. - Basic earnings per share decreased by 19.69% to CNY 0.522 compared to the same period last year[20]. - Diluted earnings per share also decreased by 19.69% to CNY 0.522 compared to the same period last year[20]. - Weighted average return on equity decreased by 3.4 percentage points to 5.29% compared to the same period last year[20]. - The gross profit margin decreased to 37.80%, down by 3.41 percentage points from the previous year[44]. - Operating profit decreased to ¥29,308,801.87, down from ¥31,012,813.40, a decline of approximately 5.48% year-over-year[102]. - The total profit decreased to ¥30,160,288.75 from ¥34,005,153.84, indicating a decline of around 11.00% year-over-year[102]. Assets and Liabilities - The net assets attributable to shareholders at the end of the reporting period increased by 88.64% to ¥720,262,783.81 from ¥381,827,439.95 at the end of the previous year[19]. - Total assets at the end of the reporting period were ¥878,760,801.85, reflecting a 58.20% increase from ¥555,479,317.47 at the end of the previous year[19]. - Total current assets as of June 30, 2017, amount to RMB 656,914,825.53, an increase from RMB 344,290,673.52 at the beginning of the period[94]. - Cash and cash equivalents increased to RMB 214,961,469.12 from RMB 134,527,763.45[94]. - Accounts receivable rose to RMB 143,136,480.90 from RMB 129,608,450.69, indicating a growth in sales[94]. - Inventory increased to RMB 14,297,493.79 from RMB 12,398,860.22, reflecting higher production levels[94]. - Total liabilities decreased to CNY 158,498,018.04 from CNY 173,651,877.52, a reduction of 8.8%[95]. - Current liabilities decreased to CNY 99,231,680.73 from CNY 113,005,544.21, a reduction of 12.1%[95]. Cash Flow - The net cash flow from operating activities for the first half of 2017 was CNY 51,757,301.33, a slight decrease from CNY 53,301,713.58 in the same period last year[113]. - Total cash inflow from financing activities reached CNY 362,700,000.00, significantly higher than CNY 25,000,000.00 in the previous year[114]. - The net cash flow from investing activities was negative at CNY -253,144,243.31, compared to CNY -11,196,522.44 in the prior period, indicating increased investment outflows[113]. - The total cash and cash equivalents at the end of the period amounted to CNY 163,827,971.38, up from CNY 84,675,130.33 at the end of the previous year[114]. - The company experienced a net increase in cash and cash equivalents of CNY 111,313,287.93 during the first half of 2017, compared to a decrease of CNY -8,665,769.98 in the same period last year[114]. Shareholder Information - The company did not have any profit distribution plan or capital reserve transfer plan approved by the board during the reporting period[4]. - The actual controller and shareholders committed to not transferring or entrusting their shares for 36 months post-listing, with a maximum of 25% transfer allowed annually during their tenure[66]. - If the stock price falls below the issue price for 20 consecutive trading days within 6 months post-listing, the lock-up period for shares will automatically extend by 6 months[66]. - The company will disclose any share reduction plans three trading days prior to the intended reduction, ensuring compliance with relevant laws and regulations[66]. - The top shareholder, Yin Fuhua, holds 16,451,350 shares, representing 27.42% of the total shares[86]. - Jiangyin Jiewa Investment Co., Ltd. holds 4,953,150 shares, accounting for 8.26% of the total shares[86]. - The total number of ordinary shareholders reached 8,758 by the end of the reporting period[84]. Market and Industry Insights - The company specializes in the R&D, production, and sales of ultra-pure reagents and wet electronic chemicals, primarily serving the semiconductor and photovoltaic industries[25]. - The global market for wet electronic chemicals is projected to maintain a growth rate of 7% to 8%, with an estimated market capacity of approximately 20.8 billion RMB in 2015[35]. - The wet electronic chemicals industry is characterized by high growth potential, with an average annual global consumption growth rate exceeding 8% since the 1990s[35]. - The company focuses on high-value-added products and aims to expand into markets with good prospects and profitability[31]. - The company emphasizes the importance of maintaining close relationships with downstream enterprises, which enhances its market position and reduces entry barriers for competitors[34]. Risks and Challenges - The company has detailed the potential industry and operational risks in the report[6]. - The report includes a forward-looking statement risk declaration, indicating that future plans and strategies do not constitute a substantive commitment to investors[5]. - The company faces risks related to technological updates, as the wet electronic chemicals industry requires constant innovation to meet changing downstream production processes and standards[55]. - Increased competition in the wet electronic chemicals market is anticipated due to rising demand, which may impact product pricing and profitability[56]. - The company is exposed to risks from fluctuations in the prices of key raw materials, including hydrogen fluoride and isopropanol, which could affect its operational costs[59]. - Environmental and safety production risks are present, as the company must comply with increasing environmental standards and manage potential safety incidents during production[60]. - The company has a significant amount of accounts receivable, which poses liquidity risks and the potential for bad debts[61]. Corporate Governance and Compliance - The company did not have any major related party transactions during the reporting period[76]. - There were no significant lawsuits or arbitration matters during the reporting period[77]. - The company did not implement any employee stock ownership plans or other incentive measures during the reporting period[78]. - The accounting policies comply with the enterprise accounting standards, ensuring accurate reflection of financial status and operational results[142]. - The company’s financial statements are prepared based on the principle of control, including all subsidiaries in the consolidated financial statements[147].

Financial Performance - Operating income for the period was CNY 79,087,175.10, reflecting a 13.14% increase from the same period last year[5] - Net profit attributable to shareholders increased by 5.50% to CNY 11,659,744.60[5] - Basic earnings per share rose by 5.50% to CNY 0.2591[5] - Total revenue for Q1 2017 was CNY 79,087,175.10, an increase of 13.0% compared to CNY 69,899,567.87 in the same period last year[22] - Net profit for Q1 2017 reached CNY 11,659,744.60, representing a 5.5% increase from CNY 11,051,925.50 in Q1 2016[23] - The operating profit for the period was CNY 13,443,834.23, reflecting a growth of 7.3% from CNY 12,532,783.15 in the previous year[24] - The total comprehensive income for the period was CNY 11,840,564.93, consistent with the net profit reported[24] Assets and Liabilities - Total assets increased by 56.37% to CNY 868,585,260.73 compared to the end of the previous year[5] - The total assets increased to CNY 868,585,260.73, up from CNY 555,479,317.47, reflecting a strong growth in the company's financial position[19] - Current assets totaled CNY 611,595,048.46, up from CNY 302,277,593.52 at the start of the year, indicating strong liquidity[21] - Total liabilities decreased to CNY 162,539,583.25 from CNY 173,651,877.52, reflecting improved debt management[18] - Total liabilities decreased to CNY 155,503,325.41 from CNY 173,638,437.52, reflecting improved financial stability[22] Shareholder Equity - Net assets attributable to shareholders rose by 84.91% to CNY 706,045,677.48 year-on-year[5] - The company’s equity attributable to shareholders increased to CNY 706,045,677.48 from CNY 381,827,439.95, demonstrating strong retained earnings growth[19] - Owner's equity increased to CNY 706,062,718.82 from CNY 381,827,709.95, showing a growth of 84.9%[22] Cash Flow - Cash flow from operating activities decreased by 76.09% to CNY 4,149,019.22 compared to the previous year[5] - The net cash flow from operating activities was CNY 4,149,019.22, a decrease of 76.1% compared to CNY 17,353,697.19 in Q1 2016[27] - The company reported a significant increase in cash and cash equivalents, ending the period with CNY 463,210,559.44, compared to CNY 84,089,298.63 at the end of Q1 2016[28] - Cash and cash equivalents increased by 244.32% to CNY 463,210,559.44 due to funds raised from the IPO[12] - The total cash inflow from financing activities was CNY 343,655,443.59, a substantial increase from CNY 15,067,937.07 in the previous year[31] Inventory and Receivables - Inventory increased by 32.96% to CNY 16,486,109.76, attributed to fluctuations in raw material prices[12] - The company’s inventory increased to CNY 16,486,109.76 from CNY 12,398,860.22, indicating potential growth in sales or production[17] - Accounts receivable decreased slightly to CNY 125,378,649.07 from CNY 129,608,450.69, showing a stable collection process[16] - The company reported a decrease in accounts payable from CNY 56,910,367.95 to CNY 48,177,938.83, suggesting better cash management[21] Operating Costs - Total operating costs for Q1 2017 were CNY 65,824,161.20, up 15.5% from CNY 56,966,784.72 in Q1 2016[22] - The company incurred operating costs of CNY 50,056,004.63, which is 16.6% higher than CNY 42,865,215.59 in Q1 2016[24] - The company experienced a 60.31% decrease in employee compensation payable, dropping to CNY 4,272,106.57, primarily due to salary disbursements this period[13] Government Subsidies - The company reported government subsidies of CNY 139,998.00, net of tax effects[8]