证券代码：603256 证券简称：宏和科技 公告编号：2023-009 宏和电子材料科技股份有限公司 宏和电子材料科技股份有限公司（以下简称"公司"）将于 2023 年 4 月 28 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 05 月 09 日 下午 14:00-15:00 举行 2022 年度业绩说明会，就投资者 关心的问题进行交流。 一、 说明会类型 会议召开时间：2023 年 05 月 09 日(星期二) 下午 14:00-15:00 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：上证路演中心网络互动 关于召开 2022 年年度业绩说明会的公告 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。 重要内容提示： 投资者可于 2023 年 04 月 28 日(星期四) 至 05 月 08 日(星期 一)16:00 前登录上证路演中心网站首页点击"提问预征 ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥120,727,406.64, a decrease of 42.44% compared to the same period last year[7]. - The net profit attributable to shareholders for Q3 2022 was ¥7,872,550.45, down 75.33% year-over-year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥544,445.60, a decline of 98.19% compared to the previous year[7]. - Basic earnings per share for Q3 2022 were ¥0.01, a decrease of 66.67% year-over-year[9]. - The diluted earnings per share for Q3 2022 were also ¥0.01, reflecting a 66.67% decline compared to the previous year[9]. - The total operating revenue for the first three quarters of 2022 was CNY 459,896,524.02, a decrease of 23.8% compared to CNY 603,821,081.42 in the same period of 2021[33]. - Net profit for the third quarter of 2022 was CNY 41,755,050.13, a decline of 58.6% compared to CNY 100,785,730.40 in the same quarter of 2021[36]. - The total comprehensive income for the period attributable to the parent company was CNY 41,718,729.31, compared to CNY 100,787,731.74 in the previous period[38]. - Basic and diluted earnings per share were both CNY 0.05, down from CNY 0.11 in the previous period[38]. Cash Flow - The cash flow from operating activities for the year-to-date period was ¥314,657,613.67, an increase of 377.09% compared to the same period last year[9]. - Cash inflow from operating activities totaled CNY 725,296,439.27, an increase from CNY 500,064,480.52 in the previous period[41]. - Net cash flow from operating activities was CNY 314,657,613.67, significantly higher than CNY 65,953,548.44 in the previous period[41]. - Cash inflow from investment activities was CNY 412,449,291.70, compared to CNY 72,676,355.17 in the previous period[41]. - Net cash flow from investment activities was negative at CNY -211,383,039.34, an improvement from CNY -492,854,528.60 in the previous period[41]. - Cash inflow from financing activities was CNY 416,467,965.81, up from CNY 315,476,568.03 in the previous period[43]. - The net cash flow from financing activities was CNY -11,843,269.28, a decrease from CNY 135,348,982.31 in the previous period[43]. - The company reported a net increase in cash and cash equivalents of CNY 104,132,391.43, contrasting with a decrease of CNY -290,925,951.50 in the previous period[43]. Assets and Liabilities - Total assets at the end of Q3 2022 were ¥2,514,871,472.23, representing a 1.83% increase from the end of the previous year[9]. - The equity attributable to shareholders at the end of Q3 2022 was ¥1,496,448,397.90, down 2.39% from the previous year[9]. - Current assets totaled RMB 884,831,224.31, down from RMB 921,647,300.85 in the previous period[26]. - Total liabilities as of the end of the reporting period were CNY 1,018,423,074.33, an increase of 8.8% from CNY 936,518,478.98 at the end of the previous year[31]. - The total equity attributable to shareholders was CNY 1,496,448,397.90, a decrease of 2.4% from CNY 1,533,148,425.39 in the previous year[31]. - The company's long-term borrowings decreased to CNY 403,920,055.95 from CNY 501,399,723.07, a reduction of 19.4%[29]. - Deferred income increased to CNY 94,863,327.49, up 19.0% from CNY 79,696,907.36 in the previous year[29]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 24,901[17]. - The largest shareholder, Far East International Limited, held 74.45% of the shares, totaling 658,405,037 shares[17]. Research and Development - Research and development expenses increased to CNY 29,035,809.86 in the first three quarters of 2022, up 34.2% from CNY 21,613,393.22 in the same period of 2021[33].

Financial Performance - The company reported no profit distribution or capital reserve transfer to increase share capital for the first half of 2022[6]. - The financial report for the first half of 2022 has not been audited, ensuring the accuracy and completeness of the financial data presented[5]. - The company's operating revenue for the first half of the year was ¥339,169,117.38, a decrease of 13.94% compared to the same period last year[23]. - Net profit attributable to shareholders was ¥33,882,499.68, down 50.80% year-over-year[23]. - The net profit after deducting non-recurring gains and losses was ¥28,641,342.93, reflecting a decline of 56.50% compared to the previous year[23]. - Basic earnings per share decreased by 50.00% to ¥0.04, while diluted earnings per share also fell by the same percentage[23]. - The weighted average return on equity dropped by 2.39 percentage points to 2.20%[23]. - The company received government subsidies amounting to ¥3,961,738.82, which contributed positively to its financial performance[24]. - The company achieved operating revenue of 339.17 million yuan, a decrease of 13.94% year-on-year[85]. - Net profit for the period was 33.88 million yuan, down 50.80% compared to the previous year, with earnings per share of 0.04 yuan[85]. - Total assets as of June 30, 2022, amounted to 2.673 billion yuan, an increase of 8.26% year-on-year[85]. - The company reported a weighted average return on equity of 2.20%, a decrease of 2.39% year-on-year[85]. Risks and Challenges - The company has outlined several risks in its report, which are detailed in the management discussion and analysis section[8]. - The company faces risks related to concentrated raw material suppliers, which could impact operational stability if major suppliers experience adverse changes[105]. - The price volatility of electronic yarn, which constitutes approximately 50%-60% of production costs, poses a risk to profit stability[106]. - The company faces high customer concentration risk, as its electronic cloth is primarily used in the production of copper-clad laminates, which are dominated by large enterprises[110]. - Intense industry competition may lead to price declines, posing risks to profit levels and overall performance[112]. - The ongoing trade friction between the US and China has resulted in increased tariffs on imported raw materials, which could adversely affect the company's operations[115]. - The company is at risk of profit decline due to significant increases in fixed asset depreciation and amortization following the establishment of its wholly-owned subsidiary[117]. - The company is exposed to exchange rate fluctuations, which could impact product pricing and profitability, necessitating measures to maintain acceptable risk levels[118]. - The COVID-19 pandemic has introduced uncertainties, affecting production and logistics, and leading to a slowdown in demand for consumer electronics[119]. Market Trends - The demand for electronic yarn in China is expected to reach approximately 932,000 tons by 2023, reflecting a significant growth trend[39]. - The PCB market in China is projected to grow to 86.4 billion yuan by 2026, driven by increasing demand for high-frequency and high-speed communication applications[49]. - The electronic fabric market faced oversupply conditions in the first half of 2022, leading to a decrease in prices and sales volume due to various economic factors[45]. - The electronic yarn price has decreased year-over-year, indicating a decline in market conditions compared to the first half of 2021[45]. - The company anticipates continued growth in the consumer electronics market, driven by technological innovations and increasing consumer demand[75]. - The company emphasizes the importance of multi-device connectivity and the growing market for electronic accessories, which is expected to drive further market development[76]. Corporate Governance - The company appointed Cai Ruizhen as an independent director on January 24, 2022, following the resignation of Ma Guozhu, which reduced the proportion of independent directors below one-third[123]. - The company has committed to not engaging in any business activities that may compete with its own operations, ensuring the protection of shareholder interests[146]. - The controlling shareholder, Wang Wenyang, and his daughter Grace Tsu Han Wong, have pledged not to engage in any competitive business activities during their tenure as actual controllers of the company[148]. - There are no undisclosed related party transactions during the reporting period, and any unavoidable transactions will be conducted on a fair and equitable basis[149]. - The company has committed to fair pricing in any related party transactions, adhering to market standards[149]. - The controlling shareholders will not utilize their positions to harm the interests of the company or its shareholders[149]. Environmental Compliance - The company reported that all wastewater discharges met standards, with COD at 178.00 mg/L, well below the limit of 500 mg/L[131]. - The company achieved a noise measurement of 55.70 dB at the southern boundary, which is within the daytime limit of 60 dB[132]. - The company’s waste disposal compliance rate is 100%, with hazardous waste properly managed and reported to the local environmental authority[131]. - The company’s boiler emissions for SO2 were below 2.00 mg/L, significantly lower than the limit of 10 mg/L[131]. - The company’s environmental management practices have been in compliance with national and local regulations throughout the first half of 2022[131]. - The company has implemented a self-monitoring program for pollutant emissions, ensuring compliance with environmental regulations through daily inspections and third-party testing[137]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[138]. - The company actively engages in pollution prevention and environmental protection, achieving full compliance with wastewater and waste gas discharge standards[140]. - The company has adopted energy-saving management practices and implemented clean production methods to reduce carbon emissions, in line with Shanghai's carbon management regulations[141]. Shareholder Information - The total number of shares increased from 877,800,000 to 884,370,000 due to the issuance of 6,570,000 restricted shares[184]. - The proportion of restricted shares increased from 84.51% to 84.62% after the issuance[180]. - The total number of shareholders reached 21,015 by the end of the reporting period[185]. - The largest shareholder, Far East International Limited, holds 658,405,037 shares, representing 74.45% of total shares[188]. - The company has no changes in the number of restricted shares held by the top ten shareholders during the reporting period[185]. - The company’s actual controller is Mr. Wang Wenyang and his daughter Grace Tsu Han Wong, who control several major shareholders[191]. - The company completed the registration of the new shares on January 21, 2022, with the issuance verified by KPMG[184]. - The increase in restricted shares is part of the company's incentive plan for 2021[184]. - The proportion of foreign capital holdings decreased from 84.51% to 83.88% after the issuance[180]. - The top ten restricted shareholders hold a total of 719,000,000 shares, with the largest shareholder, Yuan Yi International Limited, holding 658,405,037 shares[192]. Credit Facilities and Liabilities - The total guarantee amount reached RMB 1,210,000,000, accounting for 76.64% of the company's net assets[168]. - As of June 30, 2022, the subsidiary Huangshi Honghe has utilized RMB 547,155,413.12 of the RMB 700,000,000 comprehensive credit facility from Bank of China[173]. - The company approved a comprehensive credit facility of up to RMB 460,000,000 from China Construction Bank, with RMB 35,156,086.07 utilized as of June 30, 2022[173]. - The company has applied for a comprehensive credit facility of up to RMB 50,000,000 from Fubon Bank, which has not been utilized as of June 30, 2022[176]. Legal and Regulatory Matters - There were no significant lawsuits or arbitration matters during the reporting period[170]. - The company did not provide guarantees for shareholders, actual controllers, or their related parties[171]. - There were no significant related party transactions during the reporting period[162]. - The company has not experienced any non-standard audit opinions in the previous annual report[169]. - There were no major contracts or their performance issues during the reporting period[179]. - The company has not engaged in any bankruptcy reorganization matters[170].

Key Financial Data and Operating Conditions [Key Accounting Data and Financial Indicators](index=1&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's performance declined in Q1 2022, with a significant drop in net profit despite growth in total assets Key Operating Indicators for Q1 2022 | Indicator | Current Period | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | RMB 176,992,550.95 | -7.06% | | Net Profit Attributable to Shareholders | RMB 15,605,475.31 | -47.94% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | RMB 13,024,465.99 | -54.00% | | Net Cash Flow from Operating Activities | RMB -25,365,747.47 | 99.93% | | Basic Earnings Per Share (RMB/Share) | 0.02 | -33.33% | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period | Change from Prior Year-End (%) | | :--- | :--- | :--- | | Total Assets | RMB 2,595,126,500.56 | 5.08% | | Equity Attributable to Shareholders | RMB 1,551,785,976.45 | 1.22% | [Non-recurring Profit and Loss Items](index=2&type=section&id=%28%E4%BA%8C%29%20%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Non-recurring profit and loss totaled RMB 2.581 million, primarily from government subsidies and investment income Details of Non-recurring Profit and Loss for Q1 2022 | Item | Current Period Amount (RMB) | Note | | :--- | :--- | :--- | | Government Subsidies | 1,829,065.15 | Government subsidy income | | Investment Income from Bank's Structured Deposits | 782,085.81 | - | | Other Non-operating Income | 750,337.24 | Income from scrap sales and others | | Gain/Loss on Disposal of Non-current Assets | -73,787.46 | Loss on disposal of scrapped fixed assets | | Income Tax Impact | -706,691.42 | - | | **Total** | **2,581,009.32** | - | [Analysis of Changes in Financial Indicators](index=3&type=section&id=%28%E4%B8%89%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) Profit indicators declined significantly due to lower revenue and higher expenses, with cash flow impacted by changes in receivables and operating costs Explanation of Major Financial Indicator Changes | Item Name | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | -47.94% | Mainly due to decreased main business revenue and increased expenses this period | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -54.00% | Same as above | | Net Cash Flow from Operating Activities | N/A | Mainly due to an increase in notes receivable at Shanghai Honghe and increased operating expenses such as purchases and wages at Huangshi Honghe | | Basic/Diluted Earnings Per Share | -33.33% | Due to the decrease in net profit this period | Shareholder Information [Shareholder Holdings](index=4&type=section&id=%28%E4%B8%80%29%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had 21,023 common shareholders with a highly concentrated ownership structure led by the largest shareholder - At the end of the reporting period, the total number of common shareholders was **21,023**[16](index=16&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Number of Shares Held | | :--- | :--- | :--- | :--- | | Yuan Yi International Co., Ltd. | Foreign Legal Entity | 74.45 | 658,405,037 | | UNICORN ACE LIMITED | Foreign Legal Entity | 3.26 | 28,805,220 | | SHARP TONE INTERNATIONAL LIMITED | Foreign Legal Entity | 3.26 | 28,805,220 | | INTEGRITY LINK LIMITED | Foreign Legal Entity | 2.79 | 24,690,190 | | Mao Jiaming | Domestic Natural Person | 0.35 | 3,110,706 | - The company's Chairman Mr. Mao Jiaming, Director and General Manager Mr. Du Fu, and Chairman of the Supervisory Board Mr. Liao Mingxiong are all shareholders, but the company is unaware of any related party relationships among other non-restricted shareholders[19](index=19&type=chunk) Quarterly Financial Statements [Consolidated Balance Sheet](index=5&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Total assets reached RMB 2.595 billion, driven by non-current assets, while total liabilities increased due to higher short-term borrowings Key Items of the Consolidated Balance Sheet | Item | March 31, 2022 (RMB) | December 31, 2021 (RMB) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **2,595,126,500.56** | **2,469,666,904.37** | **+5.08%** | | Total Current Assets | 944,934,040.25 | 921,647,300.85 | +2.53% | | Total Non-current Assets | 1,650,192,460.31 | 1,548,019,603.52 | +6.60% | | **Total Liabilities** | **1,043,340,524.11** | **936,518,478.98** | **+11.41%** | | Total Current Liabilities | 452,012,140.41 | 354,669,698.59 | +27.45% | | Total Non-current Liabilities | 591,328,383.70 | 581,848,780.39 | +1.63% | | **Total Equity Attributable to Parent Company** | **1,551,785,976.45** | **1,533,148,425.39** | **+1.22%** | [Consolidated Income Statement](index=8&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Operating revenue decreased to RMB 177 million in Q1 2022, with net profit falling sharply due to rising R&D and financial expenses Key Items of the Consolidated Income Statement | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 176,992,550.95 | 190,445,391.75 | -7.06% | | Total Operating Costs | 156,684,095.65 | 152,441,846.52 | +2.78% | | Of which: R&D Expenses | 9,574,755.82 | 6,333,693.95 | +51.16% | | Financial Expenses | 8,192,189.21 | 2,548,319.65 | +221.47% | | Operating Profit | 15,278,578.53 | 35,532,764.71 | -57.00% | | **Net Profit** | **15,605,475.31** | **29,978,450.19** | **-47.94%** | | **Basic Earnings Per Share (RMB/Share)** | **0.02** | **0.03** | **-33.33%** | [Consolidated Cash Flow Statement](index=10&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The company experienced negative operating cash flow, with significant outflows for investments and inflows from financing activities Summary of Consolidated Cash Flow Statement | Item | Q1 2022 (RMB) | Q1 2021 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -25,365,747.47 | -12,687,517.56 | | Net Cash Flow from Investing Activities | -120,163,562.34 | -344,673,852.63 | | Net Cash Flow from Financing Activities | 122,682,161.36 | -5,481,272.90 | | **Net Increase in Cash and Cash Equivalents** | **-22,985,530.82** | **-362,663,675.09** | - The ending balance of cash and cash equivalents was **RMB 211,625,113.48**, a decrease from the beginning balance of RMB 234,610,644.30[38](index=38&type=chunk)[39](index=39&type=chunk)

Financial Performance - The company's consolidated net profit for 2021 was RMB 124,258,842.39, with a profit distribution plan proposing a cash dividend of RMB 0.984 per 10 shares, amounting to a total distribution of RMB 87,022,008.00, representing a distribution ratio of 70.03%[6] - The company's operating revenue for 2021 was CNY 808,159,530.55, representing a 30.23% increase compared to CNY 620,574,333.68 in 2020[27] - The net profit attributable to shareholders for 2021 was CNY 124,258,842.39, a 6.13% increase from CNY 117,078,791.90 in 2020[27] - The net cash flow from operating activities decreased by 25.66% to CNY 111,460,067.21 in 2021 from CNY 149,935,687.64 in 2020[27] - The total assets at the end of 2021 were CNY 2,469,666,904.37, an increase of 11.17% from CNY 2,221,506,507.79 at the end of 2020[27] - The basic earnings per share for 2021 was CNY 0.14, up 7.69% from CNY 0.13 in 2020[27] - The weighted average return on equity for 2021 was 8.28%, an increase of 0.19 percentage points from 8.09% in 2020[27] - The company reported a significant increase in financial expenses, up 605.93% to 23.29 million yuan, primarily due to increased interest costs[118] - The total operating cost for the current period is 518,232,028.13 CNY, a 31.07% increase compared to the previous year's total of 395,396,048.21 CNY[128] Governance and Compliance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[8] - The company has received a standard unqualified audit report from KPMG Huazhen, ensuring the authenticity and completeness of the financial report[5] - The board of directors has confirmed that all members attended the board meeting, ensuring proper governance and oversight[5] - The company operates under the supervision of the China Securities Regulatory Commission and adheres to the regulations set forth by the Shanghai Stock Exchange[19] - The company has established a comprehensive governance structure, with a dedicated board secretary and securities affairs representative to ensure effective communication with stakeholders[22] Market and Industry Trends - The GDP of China grew by 8.1% in 2021, significantly higher than the government's target of 6%[38] - The electronic information manufacturing industry in China saw a 15.7% increase in added value in 2021, ranking 6th among 41 major industries, marking the highest growth rate in nearly a decade[62] - The global smartphone market is anticipated to recover further with the development of 5G and foldable smartphone technologies, alongside economic growth[70] - The demand for high-end electronic fabrics is expected to continue growing, with a focus on thinner and higher functionality products[153] - The PCB industry in China grew from $29.73 billion in 2017 to $34.8 billion in 2020, with a compound annual growth rate (CAGR) of 5.4%, surpassing the global average growth rate[154][156] Product Development and Innovation - The company is focused on expanding its market presence and enhancing its product offerings in the electronic materials sector[18] - The company has shifted from relying on imported high-end raw materials to self-developing high-end electronic yarn products, effectively reducing production costs and enhancing supply chain control[46] - The company has established nine ongoing research projects focused on new products and technologies to enhance market share and product quality[139] - The company applied for 10 new invention patents during the reporting period, focusing on high-frequency and IC packaging substrate production methods[140] - The company aims to enhance its product offerings in high-end applications, including IC packaging substrates and high-frequency substrates, to meet customer needs and gain market favor[196] Challenges and Risks - The company emphasizes the importance of risk awareness regarding forward-looking statements related to its operational and strategic plans, advising investors to consider investment risks[7] - The company faces challenges from ongoing trade tensions and fluctuating market demands, necessitating flexible management and precise control strategies[40] - The global economic environment remains complex, with supply chain disruptions and rising commodity prices impacting the electronic fabric industry[51] Employee and Operational Management - The company has implemented an employee stock ownership plan to enhance employee engagement and commitment to the company's goals[44] - The company is committed to cultivating specialized talent to improve management capabilities and operational efficiency, ensuring a solid foundation for future growth[48] - The company has a professional management and technical team with an average industry experience of over 20 years, enhancing operational efficiency[110] Financial Position and Cash Flow - The net cash flow from investment activities in 2021 was -712,638,316.09 CNY, a year-on-year increase in net outflow of 859,570,429.29 CNY due to increased investments in construction projects and structured deposits[144] - The net cash flow from financing activities in 2021 was 136,063,384.85 CNY, showing a slight year-on-year increase of 1,923,879.22 CNY[144] - As of the end of the reporting period, cash and cash equivalents decreased by 58.35% to 291,637,840.11 CNY, primarily due to the use of raised funds[145] - Accounts receivable increased by 31.55% to 251,541,310.21 CNY, attributed to increased sales[145] - Long-term borrowings rose by 40.36% to 501,399,723.07 CNY, indicating increased financing for operations[147] Production and Capacity - The company specializes in the production and sales of high-end electronic-grade glass fiber cloth and ultra-fine yarn, achieving integrated production since 2021[55] - The design capacity for electronic yarn is 7,200 tons with a utilization rate of 60.65%[175] - The design capacity for electronic cloth is 13,200 million meters with a utilization rate of 98.87%[175] - The company successfully launched the ultra-fine electronic yarn project in 2021, achieving full production capacity by Q3 2021[176] Strategic Goals - The company plans to increase market share by innovating products and expanding into high-end markets, particularly in sectors like 5G, AI, and new energy vehicles[47] - The company aims to leverage scale and technological advantages to reduce procurement costs and control manufacturing expenses, contributing to sustainable development[200] - The strategy includes increasing production capacity for high-end products and accelerating new product development to capture more market share and replace imports[200]

Financial Performance - The company's operating revenue for Q3 2021 reached ¥209,733,228.44, representing a year-on-year increase of 36.48%[7] - Net profit attributable to shareholders for Q3 2021 was ¥31,914,762.17, an increase of 47.60% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥30,098,306.22, reflecting an increase of 81.35% year-on-year[7] - Total revenue for the first three quarters of 2021 reached ¥603,821,081.42, an increase from ¥460,651,264.47 in the same period of 2020, representing a growth of approximately 31%[34] - Net profit for the third quarter of 2021 was ¥100,785,730.40, up from ¥85,785,742.08 in the same quarter of 2020, reflecting a growth of approximately 17.5%[41] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to ¥2,436,589,570.25, which is a 9.68% increase from the end of the previous year[10] - Total assets amounted to approximately $2.22 billion, with non-current assets totaling about $1.10 billion[51] - Current liabilities reached approximately $319.73 million, while total liabilities were around $742.21 million[53] - Total liabilities increased to ¥927,605,254.79 from ¥742,208,124.07, marking a rise of approximately 25%[34] - The company's total equity reached ¥1,508,984,315.46, up from ¥1,479,298,383.72, reflecting a growth of about 2%[34] Shareholder Information - Total number of common shareholders at the end of the reporting period was 20,728[22] - The largest shareholder, Far East International Limited, holds 75.01% of shares, totaling 658,405,037 shares[22] - The company reported a total of 3,586,873 shares held by Guosen Securities, representing 0.41% of total shares[22] - The company’s chairman, Mao Jiaming, holds 2,910,706 shares, accounting for 0.33% of total shares[22] Cash Flow and Investments - The net cash flow from operating activities for the year-to-date period was ¥65,953,548.44, a decrease of 19.67% compared to the previous year[10] - Cash inflow from operating activities for the first nine months of 2021 was CNY 500,064,480.52, up from CNY 440,956,069.89 in the same period of 2020, representing a growth of approximately 13.4%[42] - Cash outflow from operating activities totaled CNY 434,110,932.08 in Q3 2021, compared to CNY 358,857,534.88 in Q3 2020, reflecting an increase of about 21%[45] - The net cash flow from investing activities was negative CNY 492,854,528.60 in Q3 2021, compared to a positive CNY 183,530,133.49 in Q3 2020, indicating a significant shift in investment strategy[45] - The company received CNY 4,640,500.07 in cash from investment income during the first nine months of 2021, compared to CNY 12,615,834.64 in the same period of 2020, a decline of approximately 63.2%[45] Operational Metrics - The weighted average return on equity for Q3 2021 was 2.14%, an increase of 0.58 percentage points compared to the previous year[10] - The basic earnings per share for Q3 2021 was ¥0.03, compared to ¥0.11 for the same period last year, showing a 10.00% increase[10] - The basic earnings per share for the third quarter of 2021 was ¥0.11, compared to ¥0.10 in the same quarter of 2020, indicating a 10% increase[41] - The diluted earnings per share for Q3 2021 was CNY 0.11, compared to CNY 0.10 in Q3 2020, indicating a year-over-year increase of 10%[42] Costs and Expenses - Total operating costs for the first three quarters of 2021 were ¥483,556,209.95, compared to ¥367,425,737.47 in 2020, indicating an increase of about 31.6%[34] - Research and development expenses for the third quarter of 2021 were ¥21,613,393.22, compared to ¥20,381,592.70 in the same quarter of 2020, indicating a slight increase in investment in innovation[37] Other Information - The company reported government subsidies amounting to ¥1,241,548.72 for the current period[10] - The company has no known related party transactions with the top ten unrestricted shareholders[25] - The company has not disclosed any significant new strategies or product developments during the reporting period[25] - The company holds fixed assets valued at approximately $931.16 million, indicating significant investment in physical resources[51] - The company has ongoing construction projects valued at approximately $35.62 million, suggesting future growth potential[51]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 394,087,852.98, representing a 28.38% increase compared to CNY 306,975,504.64 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 68,870,968.23, which is a 7.34% increase from CNY 64,163,032.10 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 65,848,109.21, reflecting a 14.03% increase from CNY 57,744,766.29 year-on-year[22]. - The basic earnings per share for the first half of 2021 were CNY 0.08, up 14.29% from CNY 0.07 in the same period last year[22]. - The weighted average return on net assets was 4.59%, an increase of 0.19 percentage points compared to 4.40% in the previous year[22]. - The company achieved a revenue of 394.09 million yuan, an increase of 28.38% year-on-year[73]. - The net profit reached 68.87 million yuan, reflecting a year-on-year increase of 7.34%, with earnings per share of 0.08 yuan[73]. - The total assets of the company amounted to 2.506 billion yuan, a year-on-year increase of 12.80%[76]. - The increase in revenue was primarily driven by higher sales volume and unit prices of products[76]. Cash Flow and Investments - The net cash flow from operating activities was CNY 1,575,964.58, showing a significant decrease of 98.38% compared to CNY 97,065,699.35 in the same period last year[22]. - Long-term equity investments increased by 87.48%, from ¥360,078,899.02 at the beginning of the year to ¥675,078,899.02 at the end of the period, primarily due to additional investments in subsidiaries[84]. - The company reported a significant increase in financial expenses, which surged by 260.30% to ¥8,791,241.77 from ¥2,439,974.43 year-on-year[77]. - The cash flow from financing activities rose by 271.83%, reaching ¥255,413,942.72 compared to ¥68,691,429.52 in the previous year[77]. Market and Industry Trends - The global electronic cloth market has shown steady growth, with a market size of approximately $19.5 billion in 2020, reflecting a growth rate of 10.5%[43]. - The PCB industry is expected to grow by 14% in 2021, driven by robust demand from telecommunications, consumer electronics, and new energy vehicles[62]. - The demand for high-end ultra-thin cloth is projected to continue increasing, driven by the trend towards miniaturization and smart features in consumer electronics[47]. - The domestic market for electronic-grade glass fiber accounts for approximately 21% of the overall demand in the fiberglass industry[35]. Operational Efficiency and Strategy - The company has integrated the production and operation of electronic-grade glass fiber ultra-fine yarn and cloth since 2021, enhancing operational efficiency[27]. - The company adopts a customer-oriented approach, ensuring timely production and delivery based on customer orders[34]. - The company utilizes an ERP system for comprehensive management, focusing on both planned and order-based production[34]. - The company has established a production line for ultra-fine yarn to achieve integrated operations in electronic yarn and cloth[64]. Risks and Challenges - The company has indicated potential risks in its future plans and development strategies, advising investors to be cautious[7]. - The company faces risks from high customer concentration, as its products are primarily used in the production of copper-clad laminates, which are dominated by large enterprises[93]. - The electronic cloth industry is experiencing intense competition, which may lead to price reductions and a subsequent decline in profit margins[96]. - Trade tensions, particularly between China and the U.S., pose risks to the company's operations and market demand[98]. - The ongoing COVID-19 pandemic has affected the company's operations, particularly due to increased logistics costs and delays in supply chains[102]. Environmental and Social Responsibility - Environmental protection investments amounted to CNY 1.9787 million in the first half of 2021[114]. - The company achieved compliance in wastewater discharge with a COD value of 102.00 mg/L, well below the limit of 500 mg/L[113]. - The company emphasizes pollution prevention and environmental responsibility, achieving all wastewater and air emissions within regulatory limits[124]. - The company actively supports poverty alleviation and rural revitalization efforts, exemplified by a visit to a designated poverty alleviation project, which enhances its social image[126]. Corporate Governance - The actual controller and major shareholders have committed to not engaging in any business activities that compete with the company, ensuring the protection of shareholder interests[129]. - The commitments made by the actual controller are effective and irrevocable during their tenure as major shareholders, ensuring compliance with corporate governance[131]. - The company has established a framework to manage potential conflicts of interest and competition from related parties, reinforcing its operational independence[134]. - There were no significant litigation or arbitration matters during the reporting period[142].

Financial Performance - The company's consolidated net profit for 2020 was RMB 117,078,791.90, with a profit distribution proposal of RMB 0.81 per share, totaling RMB 71,101,800, representing a distribution ratio of 60.73%[6]. - The company's operating revenue for 2020 was ¥620,574,333.68, a decrease of 6.35% compared to ¥662,674,768.89 in 2019[26]. - Net profit attributable to shareholders for 2020 was ¥117,078,791.90, an increase of 12.31% from ¥104,242,513.99 in 2019[26]. - The total assets at the end of 2020 were ¥2,221,506,507.79, reflecting a growth of 17.20% from ¥1,895,423,004.53 at the end of 2019[26]. - The cash flow from operating activities for 2020 was ¥149,935,687.64, down 14.29% from ¥174,930,421.86 in 2019[26]. - Basic earnings per share for 2020 remained at ¥0.13, unchanged from 2019[26]. - The weighted average return on equity for 2020 was 8.09%, a decrease of 0.29 percentage points from 8.38% in 2019[26]. - The company reported non-recurring gains of ¥12,383,453.41 for 2020, compared to ¥6,590,157.66 in 2019[30]. - The cash flow from operating activities in Q4 2020 was ¥67,837,152.63, following a negative cash flow of -¥14,967,164.34 in Q3 2020[29]. - The net profit attributable to shareholders in Q4 2020 was ¥31,293,049.82, showing a recovery from ¥21,622,709.98 in Q3 2020[29]. Corporate Governance - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[8]. - The company received a standard unqualified audit report from KPMG Huazhen, affirming the accuracy and completeness of the financial report[5]. - The board of directors and supervisory board members attended the meeting, ensuring governance compliance[5]. - The company has not reported any violations in decision-making procedures for external guarantees, maintaining regulatory compliance[8]. - The company is committed to ensuring the authenticity and accuracy of the annual report, with key management affirming the report's integrity[4]. Market and Business Strategy - The company plans to expand its market presence and enhance product development, although specific figures and timelines were not disclosed in the report[10]. - The company emphasizes the importance of risk awareness regarding future operational and strategic plans, advising investors to consider potential risks[7]. - The company primarily engages in the production and sales of mid-to-high-end electronic-grade fiberglass cloth, with no changes in its main business since establishment[37]. - The company aims to replace high-end imported products and reduce reliance on imports by producing high-quality electronic-grade fiberglass cloth domestically[48]. - The company has established a strong brand value and reputation in the high-end electronic fabric sector, leading to stable partnerships with domestic and international clients[52]. Research and Development - The company has established a research and development department to enhance its technological innovation capabilities, focusing on new product development and performance improvement[104]. - The company has established 6 new research projects during the reporting period, focusing on new products, processes, and technologies[78]. - The company has a professional technical team and has obtained multiple authorized invention patents, enhancing its competitive edge in the industry[47]. - The company has applied for 2 invention patents and received 1 invention patent authorization during the reporting period[78]. Environmental and Social Responsibility - The company invested CNY 4.92 million in environmental protection in 2020, focusing on new equipment and maintenance to enhance operational efficiency[199]. - The company’s wastewater treatment facilities are operational, ensuring that all wastewater is treated and meets discharge standards before entering municipal pipelines[199]. - The company has a 100% compliance rate for hazardous waste disposal, with all solid waste managed by qualified environmental handling companies[195]. - The company donated RMB 500,000 for poverty alleviation efforts, specifically for the construction of a kindergarten in Guanghe County, Gansu Province[188]. - The company plans to continue enhancing communication with the government and actively participate in poverty alleviation efforts[190]. Risks and Challenges - The company faces potential risks from intense industry competition, which may lead to price reductions and impact profit margins[134]. - The growth rate of the electronic information manufacturing industry has been declining, with a drop from 9.3% in 2019 to 7.7% in 2020, which may affect the demand for electronic cloth[135]. - The company is exposed to exchange rate fluctuations, which may impact product pricing and profitability, necessitating a focus on high-end products and cost management[139]. - Interest rate volatility poses a risk to financial expenditures and operational efficiency, affecting the company's capital utilization[139]. - The COVID-19 pandemic has disrupted operations, with supply chain issues and increased logistics costs impacting production and sales in the first half of 2020[142]. Shareholder Commitments - The actual controller and major shareholders have committed to not engaging in any business that competes directly or indirectly with the company[152]. - The commitments made by the actual controller are effective and irrevocable as long as they hold more than 5% of the company's shares[152]. - The company has maintained compliance with its commitments regarding related party transactions and competition since its initial public offering[155]. - The company’s major shareholder has committed to avoiding any investment in businesses that compete with the company[152]. Financial Management - The company has a cash dividend policy that mandates at least 30% of distributable profits be paid out as cash dividends annually, provided certain conditions are met[146]. - The company will continue to monitor the impact of external factors, including the pandemic and trade tensions, on its financial health and operational strategies[142]. - The company has invested RMB 670 million in structured deposits, with no overdue amounts[182]. - The company has a total of RMB 250 million in structured deposits with an annualized return of 3.60%, yielding actual returns of RMB 4.5 million[182].

Financial Performance - Operating revenue for the period was CNY 190,445,391.75, representing an increase of 28.61% year-on-year[12] - Net profit attributable to shareholders of the listed company was CNY 29,978,450.19, up 6.03% from the same period last year[12] - The net profit after deducting non-recurring gains and losses was CNY 28,311,507.31, an increase of 15.37% year-on-year[12] - The weighted average return on net assets increased by 0.05 percentage points to 2.01%[12] - Total operating revenue for Q1 2021 was 190,445,391.75, up from 148,079,963.47 in Q1 2020, representing a growth of approximately 28.6%[47] - Net profit for Q1 2021 was 29,978,450.19, compared to 28,274,037.56 in Q1 2020, indicating an increase of approximately 6.0%[49] - The total profit for Q1 2021 was 37,673,907.70, compared to 34,125,735.43 in Q1 2020, reflecting an increase of about 7.4%[49] - The total comprehensive income amounted to CNY 41,948,805.11, compared to CNY 31,003,238.13 in the previous year[54] Cash Flow - Net cash flow from operating activities was negative CNY 12,687,517.56, a decline of 165.70% compared to the previous year[12] - Cash inflows from operating activities totaled CNY 124,893,705.45, down from CNY 175,055,697.65 year-over-year[58] - The net cash flow from operating activities was negative at CNY -12,687,517.56, contrasting with a positive CNY 19,309,851.34 in the same period last year[58] - Cash outflows from investing activities reached CNY 346,317,955.51, compared to CNY 441,645,483.32 in the previous year[58] - The net cash flow from investing activities was CNY -344,673,852.63, compared to CNY -51,168,956.99 in the previous year[58] - Cash flow from financing activities showed a net outflow of -$833,787.14, a decrease from a net inflow of $41.27 million in the previous period[62] - Cash flow from operating activities was not detailed, but the overall cash and cash equivalents decreased by $393.98 million during the period[62] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,209,165,104.45, a decrease of 0.56% compared to the end of the previous year[12] - Total liabilities decreased from 742,208,124.07 to 699,890,407.82, a reduction of approximately 5.5%[41] - Total equity attributable to shareholders increased from 1,479,298,383.72 to 1,509,274,696.63, reflecting a growth of about 2.0%[41] - Current assets decreased from 1,110,541,191.86 to 926,507,033.11, a decline of approximately 16.5%[41] - Non-current assets increased from 617,487,526.44 to 870,949,813.96, representing an increase of about 40.9%[41] - The total assets rose from 1,728,028,718.30 to 1,797,456,847.07, an increase of approximately 4.0%[41] - The company's cash and cash equivalents decreased from 624,802,326.60 to 230,818,066.57, a decline of about 63.0%[41] - Accounts receivable increased from 193,135,424.85 to 226,085,616.16, reflecting a growth of approximately 17.1%[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,284[20] - The largest shareholder, Far East International Limited, held 75.01% of the shares[20] Expenses - Operating costs rose by 34.64% to ¥121,893,117.90 due to increased sales revenue[25] - Financial expenses surged by 109.01% to ¥2,548,319.65, primarily due to increased bank interest expenses[25] - The company reported a 31.51% increase in income tax expenses to ¥7,695,457.51, driven by increased profits[28] - Research and development expenses for Q1 2021 were 6,333,693.95, slightly down from 6,468,965.84 in Q1 2020, a decrease of about 2.1%[47] Other Income and Gains - Government subsidies recognized in the current period amounted to CNY 1,319,766.16[15] - Other income increased by 51.05% to ¥2,163,394.43, attributed to government subsidies and sales of scrap[25] - The company reported investment income of 2,969,652.78 for Q1 2021[47] Miscellaneous - The company reported a loss of CNY 22,250.82 from the disposal of fixed assets[15] - The company reported a total of 311,225.13 in lease liabilities, indicating ongoing commitments[43] - The company did not apply the new leasing standards retroactively, indicating a stable accounting approach[62] - There were no significant changes in the audit report status, as it was marked as not applicable[62]

Financial Performance - Net profit attributable to shareholders increased by 5.86% to CNY 85,785,742.08 year-to-date[18]. - Operating revenue decreased by 7.51% to CNY 460,651,264.47 year-to-date[18]. - The company reported a total profit of approximately ¥26.96 million for Q3 2020, compared to ¥24.82 million in Q3 2019, marking a growth of 8.6%[60]. - The net profit for Q3 2020 reached approximately ¥21.62 million, an increase of 6.2% from ¥20.37 million in Q3 2019[60]. - The net profit for Q3 2020 was approximately ¥24.43 million, an increase of 9.18% from ¥22.38 million in Q3 2019[65]. - The company's total equity increased to approximately ¥1.46 billion, up from ¥1.43 billion in the previous period, reflecting a growth of 5.5%[53]. Cash Flow - Net cash flow from operating activities decreased by 35.12% to CNY 82,098,535.01 year-to-date[18]. - The company reported a 35.12% decrease in net cash flow from operating activities, dropping from CNY 126,545,088.96 to CNY 82,098,535.01[34]. - The net cash flow from investment activities was 183,530,133.49, recovering from a negative cash flow of -360,415,864.32 in the previous period[71]. - The company's cash flow from operating activities for the first three quarters of 2020 was approximately ¥428.65 million, down from ¥464.93 million in the same period of 2019[67]. - The total cash inflow from operating activities was 440,956,069.89, slightly lower than 473,195,679.98 in the previous period[71]. Assets and Liabilities - Total assets increased by 10.65% to CNY 2,097,353,628.06 compared to the end of the previous year[18]. - Total liabilities increased to ¥649,361,974.55 from ¥470,022,163.92, marking a significant rise of about 38.2%[51]. - The total amount of short-term loans decreased by 35.05% from CNY 249,960,000.00 to CNY 162,357,000.00 due to repayments[32]. - The company's total assets decreased from ¥498.04 million in the first three quarters of 2019 to ¥460.65 million in the same period of 2020[62]. - Current liabilities reached approximately $571.58 million, including short-term borrowings of $249.96 million and accounts payable of $54.38 million[88]. Shareholder Information - The total number of shareholders at the end of the reporting period was 22,551[26]. - The largest shareholder, Far East International Limited, holds 75.01% of the shares[26]. - The total equity attributable to shareholders rose to ¥1,447,991,653.51 from ¥1,425,400,840.61, an increase of about 1.6%[47]. Investments and Income - The company reported a net gain from the disposal of non-current assets of CNY 2,364,018.76[22]. - The company’s investment income increased by 772.68% from CNY 853,301.89 to CNY 7,446,555.56, attributed to higher interest income from structured deposits[34]. - The company reported an investment income of approximately ¥1.70 million in Q3 2020, compared to ¥0.85 million in Q3 2019[65]. Changes in Assets - The company's accounts receivable financing decreased by 45.74% from CNY 23,478,281.84 to CNY 12,740,239.84 due to a reduction in bill transfers[32]. - Prepayments increased by 73.65% from CNY 2,822,484.73 to CNY 4,901,356.92, attributed to higher payments for raw materials and maintenance[32]. - Other current assets surged by 252.32% from CNY 8,224,172.21 to CNY 28,975,464.03, driven by an increase in deductible input tax[32]. - The construction in progress rose by 136.10% from CNY 242,753,543.19 to CNY 573,144,853.00, reflecting ongoing projects[32]. - The company’s intangible assets decreased by 54.64% from CNY 104,681,454.83 to CNY 47,485,591.73, following the receipt of government compensation for land use rights[32]. Government Support - The company received government subsidies amounting to CNY 2,523,542.33 during the reporting period[22].