Financial Performance - The company's operating revenue for the first half of 2020 was CNY 306,975,504.64, a decrease of 5.81% compared to CNY 325,927,589.67 in the same period last year [21] - The net profit attributable to shareholders of the listed company was CNY 64,163,032.10, an increase of 5.76% from CNY 60,668,696.94 in the previous year [21] - The net cash flow from operating activities was CNY 97,065,699.35, representing a 7.89% increase compared to CNY 89,969,216.46 in the same period last year [21] - The basic earnings per share for the first half of 2020 were CNY 0.07, a decrease of 12.50% compared to CNY 0.08 in the same period last year [22] - The diluted earnings per share were also CNY 0.07, reflecting the same decrease of 12.50% compared to CNY 0.08 in the previous year [22] - The weighted average return on net assets decreased to 4.40%, down by 1.10 percentage points from 5.50% in the previous year [24] - The company achieved operating revenue of 306.98 million yuan, a decrease of 5.81% year-on-year [46] - Net profit reached 64.16 million yuan, an increase of 5.76% year-on-year, with earnings per share of 0.07 yuan [46] - The average return on equity was 4.40%, a decrease of 1.10% year-on-year [46] - The company reported a total profit of CNY 76,450,252.35 for the first half of 2020, compared to CNY 71,691,231.72 in the same period of 2019, indicating a growth of 6.5% [162] - The company’s financial expenses for the first half of 2020 were CNY 2,439,974.43, significantly higher than CNY 345,013.83 in the previous year, indicating a substantial increase [162] Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,978,859,567.77, an increase of 4.40% from CNY 1,895,423,004.53 at the end of the previous year [21] - The net assets attributable to shareholders of the listed company were CNY 1,426,357,348.21, a slight increase of 0.07% from CNY 1,425,400,840.61 at the end of the previous year [21] - Total liabilities rose to ¥552,502,219.56 compared to ¥470,022,163.92, marking an increase of around 17.6% [151] - The total amount of restricted assets at the end of the period is 627,602,606.12, primarily due to guarantees and pledges [55] - The total current asset of 984,756,355.59 RMB as of June 30, 2020, compared to 1,063,363,411.09 RMB at the end of 2019 [146] - The company reported a total equity attributable to the parent company at the end of the reporting period is 1,439,074,335.07 RMB, an increase from 1,432,318,832.64 RMB at the beginning of the year [196] Cash Flow - The company reported a net cash flow from financing activities of 68,691,429.52, down from 186,481,471.36 in the same period last year [175] - The total cash inflow from investment activities was CNY 726,948,900.16, significantly higher than CNY 43,649,724.06 in the same period last year [175] - Cash outflow from investment activities totaled CNY 890,396,475.87, compared to CNY 107,323,311.40 in the previous year, resulting in a net cash outflow of CNY -163,447,575.71 [175] - The total cash and cash equivalents at the end of the period stood at CNY 272,611,640.56, a decrease from CNY 509,133,774.93 at the end of the previous year [175] - The company received CNY 670,000,000.00 from investment recoveries during the first half of 2020 [175] Market and Industry Context - The company primarily engages in the production and sales of high-end electronic-grade fiberglass cloth, with a focus on ultra-thin and extremely thin products [30] - The electronic-grade fiberglass cloth is widely used in high-tech electronic products, including smartphones, tablets, and automotive electronics [30] - The PCB industry is expected to grow at a compound demand growth rate of 3.7% in 2020, driven by developments in 5G and automotive electronics [38] - The overall demand for fiberglass in China is expected to improve gradually in 2020 due to recovery in real estate and infrastructure investment [38] - The company faces significant challenges in a competitive market characterized by oversupply in the electronic cloth industry [38] Environmental and Social Responsibility - The company invested CNY 1.927 million in environmental protection in the first half of 2020, with a focus on improving the operation quality of environmental protection facilities [123] - The company's wastewater treatment facility achieved a COD value that is 40% lower than the discharge limit, ensuring compliance with local standards [123] - The company has implemented a comprehensive environmental monitoring plan, including daily checks and third-party assessments to ensure pollutant discharge meets standards [126] - The company donated RMB 500,000 for poverty alleviation efforts, specifically for the construction of a kindergarten in Guanghe County, Gansu Province [111] - The company will continue to strengthen communication with the government and participate in poverty alleviation efforts [117] Corporate Governance and Shareholder Commitments - The company reported a commitment to avoid any direct or indirect competition with its own business, ensuring no similar businesses are controlled by its major shareholders [86] - The major shareholder, Wang Wenyang, and his daughter Grace Tsu Han Wong, have committed to not engage in any competitive activities that could harm the company or its shareholders [88] - The company has outlined a strategy to avoid conflicts of interest in investment directions and project selections [89] - The commitments made by the major shareholders are irrevocable and will remain in effect throughout their control period [88] - The company will ensure that its controlled enterprises do not engage in any financial misconduct or conceal important financial information during the period of control [90]

Financial Performance - The company's consolidated net profit for 2019 was RMB 104,242,513.99, with a profit distribution proposal of RMB 0.72 per 10 shares, totaling RMB 63,201,600, representing a distribution ratio of 60.63%[6]. - The company's operating revenue for 2019 was ¥662,674,768.89, a decrease of 19.89% compared to ¥827,191,839.03 in 2018[21]. - Net profit attributable to shareholders was ¥104,242,513.99, down 38.60% from ¥169,784,494.44 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥97,652,356.33, a decline of 42.34% compared to ¥169,364,872.07 in 2018[21]. - The company's total assets increased by 47.63% to ¥1,895,423,004.53 at the end of 2019, up from ¥1,283,881,470.26 at the end of 2018[21]. - The weighted average return on equity decreased to 8.38% in 2019, down 8.42 percentage points from 16.80% in 2018[22]. - Basic earnings per share for 2019 were ¥0.13, a decrease of 38.10% from ¥0.21 in 2018[22]. - The company's net assets attributable to shareholders increased by 32.78% to ¥1,425,400,840.61 at the end of 2019, compared to ¥1,073,481,099.87 at the end of 2018[21]. - The decline in profit was attributed to overall industry slowdown, decreased smartphone sales, intensified competition, and US-China trade tensions[22]. Operational Overview - The company operates subsidiaries including Huangshi Honghe and Wuxi Honghe, focusing on electronic materials technology[12]. - The company primarily engages in the production and sales of high-end electronic-grade fiberglass cloth, with a focus on ultra-thin and extremely thin products[33]. - The company has successfully developed and mass-produced high-performance ultra-thin and extremely thin products since 2004, forming a product structure centered on electronic-grade fiberglass cloth for printed circuit boards[34]. - The company produced approximately 120.29 million meters of electronic-grade glass fiber cloth and sold about 126.58 million meters, with sales volume increasing by 5.69% compared to the previous year[50]. - The company achieved operating revenue of approximately RMB 662.67 million, a decrease of 19.89% year-on-year, and a net profit attributable to shareholders of RMB 104.24 million, down 38.60% from the previous year[53]. - The company's gross profit margin was impacted by a decrease in product prices due to oversupply in the market and increased competition, leading to a compression of the price differential between product and raw material costs[47]. - The company maintained a focus on differentiated production strategies for ultra-thin and extremely thin fabrics, aiming to enhance core competitiveness as market conditions improve[47]. Research and Development - The company emphasizes its commitment to research and development in new products and technologies within the electronic materials sector[6]. - The total R&D expenditure was CNY 27,145,537.52, accounting for 4.10% of total revenue, with 131 R&D personnel, representing 20.44% of the total workforce[69]. - The company applied for 4 invention patents during the reporting period and obtained 1 patent authorization, bringing the total number of authorized patents to 8[51]. - The company has established a series of management procedures and incentive mechanisms to enhance its R&D capabilities[96]. Market and Industry Trends - The market for electronic-grade glass fiber cloth is currently oversupplied, with prices declining due to economic slowdown and trade tensions[84]. - Future trends indicate a shift towards thinner, more functional electronic-grade glass fiber cloth products, with an expected recovery in demand driven by sectors like automotive electronics and 5G communications[85]. - The electronic-grade glass fiber cloth industry is closely linked to the downstream copper-clad laminate and printed circuit board industries, which are affected by macroeconomic fluctuations and the development of the electronic information industry[126]. - In 2019, the growth rate of China's electronic information manufacturing industry decreased by 3.8% compared to the previous year, indicating a potential decline in overall demand for the company's products[126]. Environmental and Social Responsibility - The company is committed to maintaining high environmental standards and reducing carbon emissions in its production processes[119]. - The company invested CNY 1.48 million in 2019 to upgrade boiler equipment, improving thermal efficiency and reducing emissions from natural gas combustion[186]. - The company’s wastewater treatment facility processes wastewater from cleaning production equipment, ensuring compliance with discharge standards before releasing into municipal networks[186]. - The company has implemented a "three simultaneous" system for environmental protection, ensuring that environmental facilities are constructed and operated alongside new projects[187]. - The company conducts annual health check-ups for employees and provides occupational disease screenings for relevant staff[178]. Shareholder and Governance - The company has a cash dividend policy that mandates a minimum of 30% of the distributable profits to be distributed as cash dividends if certain conditions are met, including profitability and no major investment plans[134]. - The company prioritizes cash dividends, with a minimum of 80% of profits distributed as cash dividends during mature stages without major capital expenditures[134]. - The actual controlling shareholder Wang Wenyang and his daughter Grace Tsu Han Wong committed not to transfer or delegate the management of their shares for 36 months from the date of the company's stock listing[149]. - The company has committed to avoiding any undisclosed related party transactions during the IPO reporting period[148]. - The company will strictly adhere to legal regulations regarding related party transactions and will disclose any such transactions in a timely manner[148]. Financial Management - The company has engaged KPMG Huazhen LLP for its 2019 financial audit, with an audit fee of CNY 1,250,000[159]. - The company has not reported any overdue amounts related to its entrusted financial management activities[172]. - The company has engaged in structured deposits with a total amount of RMB 420,000,000, with an outstanding balance of RMB 335,000,000 at the end of the reporting period[172]. - The annualized return rate for the structured deposits was 3.60%[172].

2020 年第一季度报告 公司代码：603256 公司简称：宏和科技 宏和电子材料科技股份有限公司 2020 年第一季度报告 1 / 25 2020 年第一季度报告 一、 二、 11Í 四、 | --- | |----------------| | 目录 | | 重要提示 . | | 公司基本情况 . | | 重要事项 . | | 附录 . | 2 / 25 2020 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人毛嘉明、主管会计工作负责人吴学民及会计机构负责人（会计主管人员）胡利保 证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | --- | |-------------------------------------------------|------ ...

Financial Performance - Operating income for the period was ¥498,041,966.28, a decrease of 22.83% compared to the same period last year[18]. - Net profit attributable to shareholders of the listed company was ¥81,037,711.35, down 39.16% year-on-year[18]. - Basic earnings per share decreased to ¥0.10, down 41.18% from ¥0.17 in the previous year[20]. - The weighted average return on net assets was 6.82%, a decrease of 6.50 percentage points compared to the previous year[20]. - Total operating revenue for Q3 2019 was ¥172,114,376.61, a decrease of 24% compared to ¥226,612,333.58 in Q3 2018[55]. - Net profit for Q3 2019 was ¥20,369,014.41, a decline of 62% from ¥52,983,044.62 in Q3 2018[64]. - The company reported a total profit of ¥24,823,328.99 for Q3 2019, down from ¥62,265,652.96 in Q3 2018, indicating a challenging market environment[64]. - Total comprehensive income for Q3 2019 was CNY 22,378,767.02, a decrease of 57.5% from CNY 52,601,447.27 in Q3 2018[80]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,883,696,269.67, an increase of 46.72% compared to the end of the previous year[18]. - Current assets totaled ¥1,287,152,499.74, compared to ¥874,254,376.54, indicating a rise of about 47.2%[43]. - Total liabilities rose to ¥481,505,597.68 from ¥210,400,370.39, showing an increase of approximately 128.5%[46]. - Owner's equity increased to ¥1,402,190,671.99 from ¥1,073,481,099.87, representing a growth of about 30.6%[48]. - The total liabilities amounted to ¥480,349,455.92, compared to ¥209,953,567.74 in the previous period, showing a significant increase[55]. - The company reported accounts receivable of ¥226.60 billion and inventory valued at ¥138.17 billion[94]. Cash Flow - Net cash flow from operating activities for the year-to-date was ¥126,545,088.96, an increase of 29.51% compared to the same period last year[18]. - The net cash flow from investing activities decreased by 226.08% to -¥360,415,864.32, driven by increased investments in structured deposits and the Huangshi Honghe project[35]. - Cash flow from operating activities for the first three quarters of 2019 was CNY 464,933,062.83, down from CNY 526,107,232.30 in the same period of 2018[81]. - The total cash outflow from operating activities was 346,650,591.02 RMB, reduced from 441,942,146.19 RMB, reflecting a decrease of about 21.5%[85]. - The company received 350,274,754.73 RMB from new investments, showing strong capital inflow[87]. Shareholder Information - The total number of shareholders at the end of the reporting period was 34,734[26]. - The largest shareholder, Far East International, held 75.01% of the shares, totaling 658,405,037 shares[26]. Market and Strategic Initiatives - The company noted a decline in high-end smartphone sales and increased competition, affecting the overall demand in the electronic-grade glass fiber cloth industry[31]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[55].