证券代码：603192 证券简称：汇得科技 公告编号：2019-028 上海汇得科技股份有限公司 关于参加上海辖区上市公司投资者集体接待日活动的公告 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。 为进一步加强与投资者的互动交流工作，上海汇得科技股份有限公司（以下 简称"公司"）将参加由上海上市公司协会、上证所信息网络有限公司共同举办 的"2019 年上海辖区上市公司投资者集体接待日"活动，现将有关事项公告如 下： 本次集体接待日活动将在上证所信息网络有限公司提供的平台，采取网络远 程 的 方 式 举 行 ， 投 资 者 可 以 登 录 " 上 证 路 演 中 心 " 网 站 （ http://roadshow.sseinfo.com ） 或 关 注 微 信 公 众 号 ： 上 证 路 演 中 心 （sse_roadshow），参与公司本次投资者集体接待日活动，活动时间为 2019 年 9 月 26 日（星期四）下午 15:00 至 17:00。届时公司副总经理兼董事会秘书李兵 先生、副总经理兼财务总监顾伟夕先生将通过网 ...

Financial Performance - The company's operating revenue for the first half of 2019 was ¥655,404,235.62, a decrease of 18.97% compared to ¥808,847,219.82 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2019 was ¥65,892,466.61, an increase of 11.58% from ¥59,054,128.36 in the previous year[19]. - The net cash flow from operating activities was -¥3,982,725.45, a decline of 149.17% compared to ¥8,100,485.19 in the same period last year[19]. - The total assets at the end of the reporting period were ¥1,583,864,945.24, a decrease of 3.09% from ¥1,634,418,531.33 at the end of the previous year[19]. - The net assets attributable to shareholders increased by 2.45% to ¥1,144,121,042.11 from ¥1,116,769,908.00 at the end of the previous year[19]. - Basic earnings per share for the first half of 2019 were ¥0.62, down 16.22% from ¥0.74 in the same period last year[20]. - The weighted average return on net assets decreased by 4.91 percentage points to 5.77% from 10.68% in the previous year[20]. - The company reported a decrease in the cash flow from operating activities primarily due to a decline in raw material prices and a reduction in payables[21]. - The company reported a non-recurring profit of 6,460,716.17, with significant contributions from government subsidies amounting to 1,639,534.79 and a reversal of impairment provisions for receivables totaling 3,986,716.03[24]. - The company reported a total of ¥1,307,662.38 in other receivables, up from ¥1,061,997.60, an increase of approximately 23.14%[98]. Research and Development - The company has invested over 4% of its revenue in R&D for the past three years, holding 25 authorized invention patents and 12 pending applications, demonstrating a strong commitment to innovation[31]. - Research and development expenses in the first half of 2019 amounted to CNY 28.30 million, a decrease of 16.62% compared to the previous year, attributed to lower prices of raw materials[40]. - Research and development expenses for the first half of 2019 were CNY 28,296,301.54, a decrease of 16.7% from CNY 33,937,634.05 in the same period of 2018[107]. - The company has initiated new strategies for technological innovation and product enhancement to drive future growth[135]. Market and Sales Strategy - The main business of the company remains focused on the research, production, and sales of polyurethane resin products, including synthetic leather polyurethane, polyurethane elastomer raw materials, and polyester polyols[27]. - The company employs a direct sales model, emphasizing customized products and technical services to meet customer needs, with a sales network covering key downstream clients[27]. - The company has maintained a stable supply and demand in the polyurethane industry, with a decrease in average prices of leather polyurethane products compared to the previous year, while optimizing product structure towards more environmentally friendly options[29]. - The company added over 60 new quality customers in the first half of 2019, expanding its market presence through customized marketing strategies[35]. - The company plans to focus on market expansion and new product development in the upcoming quarters[106]. Financial Position and Assets - The total assets as of June 30, 2019, were CNY 1.58 billion, a decrease of 3.09% from the end of the previous year, while net assets increased by 2.45% to CNY 1.14 billion[35]. - The company's total assets amounted to CNY 1,548,080,760.85, a decrease of 3.7% from CNY 1,608,426,661.50 at the end of 2018[104]. - The total equity of the company was CNY 1,128,868,369.59, an increase of 2.4% from CNY 1,105,538,239.32 at the end of 2018[104]. - The total owner's equity at the end of the reporting period was 1,128,868,000 yuan, which includes 265,933,000 yuan in undistributed profits[138]. Environmental Compliance - The company has continuously upgraded its environmental protection facilities and invested significantly in environmental governance, achieving ISO 14001:2015 certification[52]. - The company has a wastewater treatment capacity of 200 tons per day and operates a complete set of waste gas treatment facilities[72]. - The company achieved a total wastewater discharge of 0.9 tons per year, which is below the regulatory limit of 2.7400 tons per year[70]. - The company has established a pollution source online monitoring system that operates normally, ensuring compliance with environmental standards[72]. - The company has received environmental impact assessment approvals for all existing construction projects, achieving a 100% compliance rate[73]. Shareholder and Corporate Governance - The annual shareholders' meeting held on May 15, 2019, had a total of 80,004,500 shares represented, accounting for 75.0042% of the total shares[56]. - No profit distribution or capital reserve increase plans were proposed for the half-year period[57]. - The company has committed to a 36-month lock-up period for shares post-IPO, during which no shares will be transferred or managed by others[59]. - The company will adjust the issuance price in case of dividend distributions or capital increases post-IPO[60]. - The company has appointed Lixin Certified Public Accountants as the auditing firm for the 2019 fiscal year, with fees to be negotiated based on industry standards[66]. Risks and Challenges - The company faces risks related to the economic conditions of downstream industries, particularly in the synthetic leather sector, which could impact demand for its polyurethane products[51]. - The company has faced challenges in export orders due to fluctuating trade relations, but domestic economic stability has supported its operations[29]. - The company faces risks related to increased environmental expenditures that may impact operational performance due to stricter national pollution control standards[52]. - Rapid expansion of assets and business scale post-fundraising may lead to increased management risks[52]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle, adhering to the relevant accounting standards[144]. - The company has established specific accounting policies and estimates based on its actual production and operational characteristics[146]. - The company includes all subsidiaries in its consolidated financial statements, reflecting the overall financial status and cash flows of the group[152]. - The company recognizes the share of losses from subsidiaries exceeding the minority shareholders' equity at the beginning of the period[153].

Financial Performance - Operating revenue declined by 17.13% to CNY 307,621,946.65 year-on-year[6] - Net profit attributable to shareholders increased by 5.75% to CNY 24,946,158.09 compared to the same period last year[6] - Basic earnings per share decreased by 16.67% to CNY 0.25[6] - Total operating revenue for Q1 2019 was CNY 307,621,946.65, a decrease of 17.2% compared to CNY 371,190,071.38 in Q1 2018[25] - Net profit for Q1 2019 reached CNY 26,323,691.60, an increase of 8.2% from CNY 24,334,823.60 in Q1 2018[26] - The total profit for Q1 2019 was CNY 28,929,925.71, an increase of 7.2% from CNY 26,977,288.78 in Q1 2018[29] Cash Flow - Cash flow from operating activities improved by 2.62% to CNY -109,949,761.36 compared to the previous year[6] - The net cash flow from investment activities was -¥18,255,625.30, a decrease of 63.81%, primarily due to increased construction investments[15] - The net cash flow from financing activities was ¥27,931,447.50, a decline of 49.24%, mainly due to an increase in short-term borrowings in the previous year[15] - Cash flow from operating activities showed a net outflow of CNY -109,949,761.36, slightly improved from CNY -112,903,032.45 in Q1 2018[30] - The company reported a cash outflow from investing activities of CNY -18,255,625.30, compared to CNY -11,144,579.08 in Q1 2018, indicating increased investment expenditures[31] Assets and Liabilities - Total assets decreased by 7.88% to CNY 1,505,672,139.15 compared to the end of the previous year[6] - Total current assets decreased to ¥1,293,060,814.64 as of March 31, 2019, down from ¥1,433,742,889.01 at the end of 2018, representing a decline of approximately 9.8%[18] - Total liabilities decreased to ¥363,437,596.22 from ¥517,648,623.33, a decrease of approximately 29.9%[19] - Total equity increased to CNY 1,130,529,068.04 in Q1 2019, compared to CNY 1,105,538,239.32 in Q1 2018[26] - Total liabilities as of Q1 2019 amounted to CNY 352,347,516.64, down from CNY 502,888,422.18 in the previous year[26] Shareholder Information - The total number of shareholders reached 14,080 at the end of the reporting period[11] - The largest shareholder, Shanghai Huide Enterprise Group Co., Ltd., holds 35.62% of the shares[11] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 640,496.33 during the reporting period[8] - Non-recurring gains and losses totaled CNY 1,377,533.51, primarily from government subsidies and other income[8] - Other income increased by ¥333,061.88, a growth of 108.34%, mainly from government subsidies[15] Expenses - Management expenses increased by ¥3,847,521.39, a rise of 40.24%, mainly due to increased personnel costs for talent reserves[15] - Financial expenses decreased by ¥2,513,430.65, a drop of 160.82%, primarily due to interest income from idle raised funds[15] - Research and development expenses for Q1 2019 were CNY 13,176,626.78, a decrease of 11.2% from CNY 14,844,500.28 in Q1 2018[26] Market and Strategic Focus - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[27] - The company continues to monitor market conditions for potential strategic adjustments in the future[44] - There were no updates on mergers or acquisitions during the reporting period[44] - The company has not reported any significant new product developments or market expansions in this quarter[44] Financial Reporting Changes - The implementation of new financial instrument standards began on January 1, 2019, affecting the financial reporting practices of the company[43]

Financial Performance - The company's operating revenue for 2018 was RMB 1,592,519,755.40, representing an increase of 11.67% compared to RMB 1,426,122,040.87 in 2017[22] - The net profit attributable to shareholders of the listed company was RMB 115,454,115.13, a growth of 4.76% from RMB 110,203,187.27 in the previous year[22] - The net profit after deducting non-recurring gains and losses was RMB 107,693,081.77, which is an 18.44% increase from RMB 90,928,135.15 in 2017[22] - The total assets of the company at the end of 2018 reached RMB 1,634,418,531.33, a 46.12% increase from RMB 1,118,571,681.96 in 2017[22] - The net assets attributable to shareholders of the listed company increased by 113.08% to RMB 1,116,769,908.00 from RMB 524,103,838.57 in 2017[22] - The basic earnings per share for 2018 was RMB 1.30, a decrease of 5.80% compared to RMB 1.38 in 2017[23] - The weighted average return on net assets was 15.59%, down 7.25 percentage points from 22.84% in the previous year[23] - The cash flow from operating activities was RMB 89,992,834.92, a decrease of 22.81% from RMB 116,582,769.11 in 2017[22] - The total share capital at the end of 2018 was 106,666,667 shares, an increase of 33.33% from 80,000,000 shares in 2017[22] Revenue Breakdown - The company's operating revenue for Q1 2018 was approximately CNY 371.19 million, Q2 was CNY 437.66 million, Q3 was CNY 452.90 million, and Q4 was CNY 330.77 million[26] - The net profit attributable to shareholders for Q1 2018 was CNY 23.86 million, Q2 was CNY 35.20 million, Q3 was CNY 32.33 million, and Q4 was CNY 24.07 million[26] - The main business revenue reached RMB 1,480.90 million, growing by 9.11% year-on-year, with the average price of main products increasing by 7.86%[43] - In 2018, the company achieved a main business revenue of CNY 1,480.90 million, an increase of 9.11% year-on-year[48] Investment and Capital Structure - The company raised RMB 522.67 million through its initial public offering, with a net amount of RMB 478.91 million after deducting issuance costs[37] - The company invested a total of RMB 30.94 million in safety and environmental protection measures over the past three years[40] - The company aims to optimize product structure and enhance R&D capabilities through fundraising projects to solidify its industry position[102] - The company plans to achieve continuous growth in operating performance through product optimization, technological innovation, and market expansion[103] Research and Development - The company holds 28 authorized patents, all of which are invention patents, indicating a strong focus on R&D[39] - The total R&D expenditure was 66,595,286.04 CNY, accounting for 4.18% of operating revenue, with 127 R&D personnel, representing 24.95% of the total workforce[62] - The R&D strategy includes both forward-looking and market application research to align product development with market needs[35] - The company is focusing on developing specialty polyester polyols for use in elastomers and adhesives, addressing specific market needs[77] Environmental and Social Responsibility - The company has invested in environmental management systems and aims to comply with increasingly stringent environmental regulations[115] - The company contributed a total of RMB 1,327,834.28 to public welfare projects in 2018, focusing on community building and poverty alleviation in Shanghai Jinshan District and Fujian Fuding City[156] - The company is classified as a key pollutant discharge unit in Shanghai, with wastewater and air emissions monitored and reported[157] - The company has implemented a comprehensive waste management strategy, including the classification and proper disposal of solid waste through qualified third-party services[160] Shareholder and Governance - The company reported a net profit of RMB 115,454,115.13 for the year 2018, with a cash dividend distribution of RMB 37,333,333.45, representing 32.34% of the net profit attributable to ordinary shareholders[126] - The cash dividend policy stipulates that at least 20% of the distributable profit will be distributed in cash if certain conditions are met, including a positive audited net profit[122] - The company’s profit distribution policy emphasizes cash dividends as the primary method, with a minimum of 80% cash distribution for mature stages without major capital expenditures[122] - The company has committed to timely and sufficient disclosure of any share reduction plans, including a three-day notice prior to any planned reductions[134] Market Position and Strategy - The company aims to maintain a strong financial position while exploring new strategic initiatives for growth[182] - The company is positioned in the fine chemical industry, with a focus on polyurethane products, which are expected to see increased demand in various sectors[100] - The company is expanding its marketing strategy to include both domestic and international markets, aiming to increase its customer base and product reach[108] - The company plans to invest in technology innovation to improve production efficiency and reduce volatile organic compound emissions in the synthetic leather manufacturing process[105] Risks and Challenges - The company faces risks related to the economic conditions of downstream industries, which could impact the demand for its polyurethane products[113] - The company acknowledges the risk that its fundraising projects may not achieve the expected returns due to market uncertainties[117] - There is a risk associated with changes in tax incentive policies; if the company fails to pass the high-tech enterprise review, it will face a corporate income tax rate of 25%[119] - The cost of key raw materials (MDI, AA, and DMF) accounts for approximately 60% of the company's main business costs, making it vulnerable to price fluctuations[112]

[Important Notice](index=3&type=section&id=I.%20Important%20Notice) This section confirms the report's integrity and the responsibility of management, while noting that the financial statements are unaudited [Report Statement](index=3&type=section&id=1.1%20Report%20Statement) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume legal responsibility - The company's board of directors, supervisory board, and senior management pledge the truthfulness, accuracy, and completeness of the quarterly report, ensuring no false records, misleading statements, or major omissions, and assume individual and joint legal liabilities[5](index=5&type=chunk) [Financial Statements Unaudited](index=3&type=section&id=1.2%20Financial%20Statements%20Unaudited) This company's third-quarter report is unaudited - This company's third-quarter report is unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=II.%20Company%20Profile) This section provides an overview of the company's key financial performance, including significant asset and equity growth, improved cash flow, and details on shareholder structure and controlling interests [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) At the end of the reporting period, the company's total assets and net assets attributable to shareholders significantly increased year-on-year, with a notable improvement in net cash flow from operating activities; operating revenue and net profit attributable to parent company shareholders grew, though the weighted average return on net assets decreased [Overview of Consolidated Financial Data](index=3&type=section&id=2.1.1%20Overview%20of%20Consolidated%20Financial%20Data) As of the end of the reporting period, the company's total assets and net assets attributable to shareholders increased by 59.80% and 108.39% year-on-year, respectively; from the beginning of the year to the end of the reporting period, net cash flow from operating activities surged by 489.02% year-on-year, operating revenue grew by 20.18%, and net profit attributable to shareholders increased by 6.42% Key Financial Data for Q3 2018 | Metric | Current Period End/Year-to-Date (Jan-Sep) | Prior Year End/Prior Year-to-Date (Jan-Sep) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet (Period End):** | | | | | Total Assets | 1,787,503,575.10 CNY | 1,118,571,681.96 CNY | 59.80 | | Net Assets attributable to shareholders | 1,092,180,943.60 CNY | 524,103,838.57 CNY | 108.39 | | **Cash Flow Statement (Year-to-Date):** | | | | | Net cash flow from operating activities | 66,710,005.08 CNY | 11,325,614.20 CNY | 489.02 | | **Income Statement (Year-to-Date):** | | | | | Operating Revenue | 1,261,747,341.97 CNY | 1,049,849,087.76 CNY | 20.18 | | Net Profit attributable to shareholders | 91,383,695.69 CNY | 85,869,006.70 CNY | 6.42 | | Net Profit attributable to shareholders (excluding non-recurring items) | 87,254,618.22 CNY | 70,301,637.95 CNY | 24.11 | | Weighted Average ROE (%) | 14.69 | 18.09 | decreased by 3.40 percentage points | | Basic EPS (CNY/share) | 1.10 | 1.07 | 2.80 | | Diluted EPS (CNY/share) | 1.10 | 1.07 | 2.80 | [Non-recurring Gains and Losses and Amounts](index=4&type=section&id=2.1.2%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses primarily included government subsidies, non-current asset disposal gains/losses, and income tax impacts, totaling 4,129,077.47 CNY from the beginning of the year to the end of the reporting period Non-recurring Gains and Losses for Q3 2018 (Jan-Sep) | Item | Year-to-Date Amount (Jan-Sep) (CNY) | Explanation | | :--- | :--- | :--- | | Non-current asset disposal gains/losses | 24,250.00 CNY | | | Government subsidies included in current profit/loss | 4,824,346.36 CNY | Mainly special support for achievement transformation products | | Reversal of impairment provision for receivables subject to separate impairment testing | 82,869.50 CNY | | | Other non-operating income and expenses | -71,981.35 CNY | | | Income tax impact | -730,407.04 CNY | | | **Total** | **4,129,077.47 CNY** | | [Shareholder Information](index=6&type=section&id=2.2%20Shareholder%20Information) As of the end of the reporting period, the company had 19,843 shareholders; among the top ten shareholders, Shanghai Huidi Enterprise Group Co., Ltd. is the controlling shareholder, and the actual controllers, Qian Jianzhong and Yan Qun, jointly hold 100% equity in Huidi Group [Total Number of Shareholders and Top Ten Shareholders' Holdings](index=6&type=section&id=2.2.1%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings) As of the end of the reporting period, the company had 19,843 shareholders; among the top ten shareholders, Shanghai Huidi Enterprise Group Co., Ltd. held the highest proportion at 35.62%, and held all restricted shares - As of the end of the reporting period, the company had **19,843 households**[10](index=10&type=chunk) Top Ten Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End (shares) | Holding Ratio (%) | Number of Restricted Shares Held (shares) | Share Status | Quantity | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Huidi Enterprise Group Co., Ltd. | 38,000,000 | 35.62 | 38,000,000 | None | 0 | Domestic Non-State-Owned Legal Person | | Yan Qun | 24,000,000 | 22.50 | 24,000,000 | None | 0 | Domestic Natural Person | | Shanghai Zhanran Equity Investment Management Partnership (Limited Partnership) | 13,000,000 | 12.19 | 13,000,000 | None | 0 | Domestic Non-State-Owned Legal Person | | Shanghai Yongteng Equity Investment Management Partnership (Limited Partnership) | 5,000,000 | 4.69 | 5,000,000 | None | 0 | Domestic Non-State-Owned Legal Person | | Wu Chang | 590,200 | 0.55 | 0 | None | 0 | Domestic Natural Person | | Li Qingchun | 200,000 | 0.19 | 0 | None | 0 | Domestic Natural Person | | Tianjin Xiandao Beier Electric Co., Ltd. | 190,000 | 0.18 | 0 | None | 0 | Domestic Non-State-Owned Legal Person | | Wu Dequan | 120,000 | 0.11 | 0 | None | 0 | Domestic Natural Person | | Wu Qingzi | 105,700 | 0.10 | 0 | None | 0 | Domestic Natural Person | | Jie Zhidao | 102,700 | 0.10 | 0 | None | 0 | Domestic Natural Person | [Top Ten Unrestricted Shareholders' Holdings](index=6&type=section&id=2.2.2%20Top%20Ten%20Unrestricted%20Shareholders'%20Holdings) As of the end of the reporting period, Wu Chang held the largest number of unrestricted tradable shares at 590,200 shares; the actual controllers of Huidi Group, the company's controlling shareholder, Qian Jianzhong and Yan Qun, jointly hold 100% equity in Huidi Group, and Qian Jianzhong holds the general partner equity of Zhanran Partnership through Hongyan Investment Top Ten Unrestricted Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name | Number of Unrestricted Tradable Shares Held (shares) | Type and Quantity of Shares (RMB Common Shares) (shares) | | :--- | :--- | :--- | | Wu Chang | 590,200 | 590,200 | | Li Qingchun | 200,000 | 200,000 | | Tianjin Xiandao Beier Electric Co., Ltd. | 190,000 | 190,000 | | Wu Dequan | 120,000 | 120,000 | | Wu Qingzi | 105,700 | 105,700 | | Jie Zhidao | 102,700 | 102,700 | | Gong Jianzhong | 100,000 | 100,000 | | Hu Xiaolin | 94,700 | 94,700 | | Zang Junling | 80,000 | 80,000 | | Shan Guoli | 78,000 | 78,000 | - Huidi Group is the company's controlling shareholder, with actual controllers Qian Jianzhong and Yan Qun jointly holding **100% equity** in Huidi Group; additionally, Hongyan Investment, the general partner of Zhanran Partnership, is **100% owned** by actual controller Qian Jianzhong[12](index=12&type=chunk) [Preferred Shareholder Information](index=7&type=section&id=2.2.3%20Preferred%20Shareholder%20Information) The company had no preferred shareholders at the end of the reporting period - The company had no preferred shareholders at the end of the reporting period[12](index=12&type=chunk) [Significant Events](index=7&type=section&id=III.%20Significant%20Events) This section details major changes in financial statement items driven by IPO proceeds and operational factors, outlines the progress of key initiatives like structured deposits and subsidiary capital injection, and confirms no unfulfilled commitments or negative profit forecasts [Significant Changes in Key Financial Statement Items, Financial Indicators, and Reasons](index=7&type=section&id=3.1%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items,%20Financial%20Indicators,%20and%20Reasons) During the reporting period, several items in the company's balance sheet, income statement, and cash flow statement underwent significant changes, primarily influenced by IPO proceeds, increased investment in fundraising projects, adjustments to R&D expense super deduction ratios, and exchange gains [Changes in Balance Sheet Items](index=7&type=section&id=3.1.1%20Changes%20in%20Balance%20Sheet%20Items) Cash and cash equivalents, construction in progress, paid-in capital, and capital reserves significantly increased due to IPO proceeds; prepayments and other receivables grew due to rising raw material prices and increased deposits; taxes payable decreased due to adjustments in R&D expense super deduction ratios; and minority interests became zero due to the acquisition of subsidiary equity Changes in Key Balance Sheet Items (Current Period End vs. Prior Year End) | Item | Current Period End Amount (CNY) | Prior Year End Amount (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 778,260,382.50 | 368,182,072.13 | 111.38% | Mainly due to IPO proceeds in 2018 | | Prepayments | 33,637,480.33 | 23,570,246.72 | 42.71% | Mainly due to rising raw material prices, leading to increased prepayments | | Other receivables | 2,729,312.73 | 1,701,576.20 | 60.40% | Mainly due to deposits and guarantees | | Other current assets | 4,656,913.66 | 2,467,747.54 | 88.71% | Mainly due to VAT credit balance | | Construction in progress | 47,529,456.12 | 6,591,732.46 | 621.05% | Mainly due to increased investment in the IPO-funded project 'Annual Production of 180 thousand tons of Polyurethane Resin and Its Modified Products' in 2018 | | Short-term borrowings | 121,000,000.00 | 81,000,000.00 | 49.38% | Mainly due to supplementing working capital | | Advances from customers | 8,885,300.59 | 15,452,555.82 | -42.50% | Mainly due to changes in sales volume for customers with different settlement models | | Taxes payable | 15,686,608.09 | 24,353,882.28 | -35.59% | Mainly due to R&D expense super deduction ratio of 75% in 2018 vs. 50% in 2017 | | Other payables | 2,516,439.88 | 1,623,537.99 | 55.00% | Mainly due to increased rental expenses in 2018 | | Paid-in capital (Share capital) | 106,666,667.00 | 80,000,000.00 | 33.33% | New share capital from 2018 IPO | | Capital reserves | 715,849,430.15 | 263,500,914.04 | 171.67% | Mainly due to increased IPO proceeds in 2018 | | Retained earnings | 242,206,996.89 | 150,823,301.20 | 60.59% | Mainly due to current period sales profit | | Minority interests | 0.00 | 6,022,530.32 | -100.00% | Minority interest became zero as of September 30, 2018, due to the acquisition of minority equity in a subsidiary in 2018 | [Changes in Income Statement Items](index=9&type=section&id=3.1.2%20Changes%20in%20Income%20Statement%20Items) Taxes and surcharges increased due to higher VAT; financial expenses significantly decreased due to increased exchange gains; asset impairment losses doubled due to increased accounts receivable balances; investment income and asset disposal gains significantly reduced due to changes in wealth management products and land recovery; other income and non-operating income increased due to government subsidies and Commerce Commission subsidies Changes in Key Income Statement Items (Year-to-Date) | Item | Year-to-Date Amount (Jan-Sep) (CNY) | Prior Year-to-Date Amount (Jan-Sep) (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Taxes and surcharges | 3,050,712.88 | 2,245,175.07 | 35.88% | Mainly due to increased VAT | | Financial expenses | 204,403.44 | 2,635,624.10 | -92.24% | Mainly due to increased exchange gains in 2018 | | Asset impairment losses | 4,807,924.63 | 2,361,784.70 | 103.57% | Mainly due to increased accounts receivable balance in 2018, leading to higher provision for bad debts | | Investment income | 0.00 | 2,054,438.70 | -100.00% | Due to wealth management products purchased in 2017 generating income in 2017, while structured deposits purchased in 2018 had not yet generated income as of September 30, 2018 | | Asset disposal gains | 24,250.00 | 11,196,272.19 | -99.78% | Mainly due to asset disposal gains from government land use rights recovery in 2017 | | Other income | 4,811,046.36 | 3,409,952.35 | 41.09% | Mainly due to government subsidies | | Non-operating income | 41,918.65 | 23,357.97 | 79.46% | Mainly due to new Commerce Commission subsidies in 2018 | [Changes in Cash Flow Statement Items](index=10&type=section&id=3.1.3%20Changes%20in%20Cash%20Flow%20Statement%20Items) Net cash flow from operating activities significantly increased due to changes in customer credit terms and sales revenue; net cash flow from investing activities turned from positive to negative due to the recovery of wealth management products and structured deposits not yet matured; net cash flow from financing activities significantly increased due to the receipt of IPO proceeds Changes in Key Cash Flow Statement Items (Year-to-Date) | Item | Year-to-Date Amount (Jan-Sep) (CNY) | Prior Year-to-Date Amount (Jan-Sep) (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 66,710,005.08 | 11,325,614.20 | 489.02% | Mainly due to changes in sales revenue from customers with different credit terms | | Net cash flow from investing activities | -174,819,032.56 | 167,665,722.77 | -204.27% | Mainly due to the recovery of wealth management products purchased in 2017, while structured deposits purchased in 2018 had not yet matured | | Net cash flow from financing activities | 429,769,991.14 | -113,590,227.78 | -478.35% | Mainly due to IPO proceeds | [Progress of Significant Events](index=10&type=section&id=3.2%20Progress%20of%20Significant%20Events) The company used 120 million CNY of idle IPO proceeds to purchase bank structured deposits and injected 150 million CNY into its wholly-owned subsidiary, Fujian Huidi New Material Co., Ltd., to implement the IPO-funded project 'Annual Production of 180 thousand tons of Polyurethane Resin and Its Modified Products,' increasing the subsidiary's registered capital to 200 million CNY - The company used **120 million CNY** of idle IPO proceeds to purchase bank structured deposits, with the value remaining **120 million CNY** as of September 30, 2018[18](index=18&type=chunk) - The company injected **150 million CNY** into its wholly-owned subsidiary, Fujian Huidi New Material Co., Ltd., to implement the IPO-funded project 'Annual Production of **180 thousand tons** of Polyurethane Resin and Its Modified Products,' increasing the subsidiary's registered capital from **50 million CNY** to **200 million CNY**[17](index=17&type=chunk)[18](index=18&type=chunk) [Commitments](index=10&type=section&id=3.3%20Commitments) During the reporting period, the company had no overdue unfulfilled commitments - During the reporting period, the company had no overdue unfulfilled commitments[18](index=18&type=chunk) [Net Profit Forecast Warning](index=11&type=section&id=3.4%20Net%20Profit%20Forecast%20Warning) The company has not forecasted that the cumulative net profit from the beginning of the year to the end of the next reporting period might be a loss or undergo significant changes - The company has not forecasted that the cumulative net profit from the beginning of the year to the end of the next reporting period might be a loss or undergo significant changes compared to the same period last year[19](index=19&type=chunk) [Appendix](index=11&type=section&id=IV.%20Appendix) This section contains the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, providing detailed financial performance and position data [Financial Statements](index=11&type=section&id=4.1%20Financial%20Statements) This section provides the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements, detailing financial positions at the end and beginning of the reporting period, as well as operating results and cash flows from the beginning of the year to the end of the reporting period [Consolidated Balance Sheet](index=11&type=section&id=4.1.1%20Consolidated%20Balance%20Sheet) As of September 30, 2018, the company's total consolidated assets amounted to **1,787,503,575.10 CNY**, a 59.80% increase from the beginning of the year; total equity attributable to parent company owners was **1,092,180,943.60 CNY**, a 108.39% increase from the beginning of the year - As of September 30, 2018, the company's total consolidated assets were **1,787,503,575.10 CNY**, and total equity attributable to parent company owners was **1,092,180,943.60 CNY**[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Parent Company Balance Sheet](index=13&type=section&id=4.1.2%20Parent%20Company%20Balance%20Sheet) As of September 30, 2018, the parent company's total assets amounted to **1,756,234,234.07 CNY**, a 59.64% increase from the beginning of the year; total owner's equity was **1,082,088,181.65 CNY**, a 107.79% increase from the beginning of the year - As of September 30, 2018, the parent company's total assets were **1,756,234,234.07 CNY**, and total owner's equity was **1,082,088,181.65 CNY**[26](index=26&type=chunk)[27](index=27&type=chunk) [Consolidated Income Statement](index=15&type=section&id=4.1.3%20Consolidated%20Income%20Statement) From January to September 2018, the company achieved total consolidated operating revenue of **1,261,747,341.97 CNY**, a 20.18% year-on-year increase; net profit attributable to parent company owners was **91,383,695.69 CNY**, a 6.42% year-on-year increase - From January to September 2018, the company's total consolidated operating revenue was **1,261,747,341.97 CNY**, and net profit attributable to parent company owners was **91,383,695.69 CNY**[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Parent Company Income Statement](index=19&type=section&id=4.1.4%20Parent%20Company%20Income%20Statement) From January to September 2018, the parent company achieved operating revenue of **1,208,349,792.84 CNY**, a 19.43% year-on-year increase; net profit was **84,749,537.45 CNY**, a 1.45% year-on-year decrease - From January to September 2018, the parent company's operating revenue was **1,208,349,792.84 CNY**, and net profit was **84,749,537.45 CNY**[34](index=34&type=chunk)[35](index=35&type=chunk) [Consolidated Cash Flow Statement](index=21&type=section&id=4.1.5%20Consolidated%20Cash%20Flow%20Statement) From January to September 2018, the company's consolidated net cash flow from operating activities was **66,710,005.08 CNY**, net cash flow from investing activities was **-174,819,032.56 CNY**, and net cash flow from financing activities was **429,769,991.14 CNY** - From January to September 2018, the company's consolidated net cash flow from operating activities was **66,710,005.08 CNY**[37](index=37&type=chunk) - From January to September 2018, the company's consolidated net cash flow from investing activities was **-174,819,032.56 CNY**[38](index=38&type=chunk) - From January to September 2018, the company's consolidated net cash flow from financing activities was **429,769,991.14 CNY**[38](index=38&type=chunk) [Parent Company Cash Flow Statement](index=22&type=section&id=4.1.6%20Parent%20Company%20Cash%20Flow%20Statement) From January to September 2018, the parent company's net cash flow from operating activities was **44,275,390.00 CNY**, net cash flow from investing activities was **-188,465,213.30 CNY**, and net cash flow from financing activities was **433,760,491.14 CNY** - From January to September 2018, the parent company's net cash flow from operating activities was **44,275,390.00 CNY**[41](index=41&type=chunk) - From January to September 2018, the parent company's net cash flow from investing activities was **-188,465,213.30 CNY**[41](index=41&type=chunk) - From January to September 2018, the parent company's net cash flow from financing activities was **433,760,491.14 CNY**[41](index=41&type=chunk) [Audit Report](index=24&type=section&id=4.2%20Audit%20Report) This quarterly report is unaudited - This quarterly report is unaudited[42](index=42&type=chunk)