Financial Performance - The company reported a total revenue of 500 million RMB for the first half of 2021, representing a 15% increase compared to the same period last year[19]. - The company's operating revenue for the first half of the year reached approximately ¥446.85 million, a 73.35% increase compared to the same period last year[21]. - Net profit attributable to shareholders was approximately ¥67.97 million, representing a significant increase of 685.80% year-over-year[21]. - The basic earnings per share (EPS) increased to ¥0.41, up 583.33% from ¥0.06 in the same period last year[22]. - The weighted average return on equity rose to 9.77%, an increase of 8.36 percentage points compared to the previous year[22]. - The company reported a total operating income of 446.8471 million yuan, a 73.35% increase year-on-year, and a net profit attributable to shareholders of 67.973 million yuan, up 685.80% from the previous year[45]. - The company achieved operating revenue of 217.93 million yuan and a net profit of 9.66 million yuan during the reporting period[60]. - The net profit for the first half of 2021 was ¥65,740,573.95, compared to ¥9,165,057.58 in the first half of 2020, representing a growth of 617.5%[130]. Cost and Expenses - Gross profit margin for the first half of 2021 was 30%, a decrease of 5% from the previous year, primarily due to rising raw material costs[19]. - Operating costs increased to ¥324.12 million, reflecting a 76.76% rise due to higher sales volume and raw material prices[50]. - Sales expenses surged by ¥13.95 million, a 69.57% increase, primarily due to significant advertising investments for the hot melt wall fabric business[50]. - Management expenses rose by ¥10.20 million, a 45.07% increase, mainly driven by higher salaries and the recruitment of high-end talent[50]. - Research and development expenses increased by 10% year-on-year, focusing on new adhesive technologies and applications[19]. - Research and development expenses increased by 198.71%, amounting to ¥16.37 million, due to higher material costs and personnel expenses[50]. Production and Capacity - The company plans to expand its production capacity by 20% in the next year to meet increasing market demand[8]. - The company has invested in 4 new production lines, adding approximately 27.6 million square meters of capacity[33]. - The company plans to accelerate the expansion of high-quality production capacity for photovoltaic films, leveraging supportive policies for renewable energy projects[43]. Market and Sales - Sales of photovoltaic packaging films grew by 43.42%, while sales of hot melt wall fabrics surged by 104.80% year-over-year[23]. - The sales revenue of the company's hot-melt wall cloth increased by 104.80% compared to the same period in 2020[34]. - The company expanded its dealer network to 439, an increase of 131 dealers compared to the end of 2020, with overall dealer sales up 154% year-on-year[34]. - In the electronic materials sector, the production volume of adhesive products reached 315.28 tons, a year-on-year increase of 278.12%[38]. - Sales revenue from electronic adhesives was 53.0038 million yuan, a year-on-year increase of 195.83%, with the product's gross margin at 51.85%[38]. Financial Position - The company maintains a strong cash position with no significant debt, allowing for potential future acquisitions[19]. - Total assets increased to approximately ¥1.77 billion, reflecting a growth of 25.33% from the previous year[21]. - The company reported a significant increase in trade financial assets, up 311.10% to ¥158.19 million, due to increased investments in financial products[55]. - The total equity attributable to the parent company at the end of the reporting period is CNY 1,118,690,338.79, an increase from CNY 696,578,681.89 at the beginning of the year, representing a growth of approximately 60.5%[147]. Risks and Challenges - The company is facing risks including macroeconomic fluctuations and raw material price volatility, which could impact future performance[8]. - The company faces risks including policy changes that could affect tax benefits and macroeconomic fluctuations impacting product demand[67]. - Safety production risks are present due to the chemical processes involved in manufacturing certain products[67]. - The overall raw material cost for the company's hot melt adhesive products accounts for over 80% of production costs, with fluctuations in petrochemical product prices impacting profitability[70]. - The company is experiencing increased accounts receivable collection periods due to macroeconomic pressures from the pandemic, which may lead to higher bad debt risks[70]. Environmental and Compliance - The company is committed to environmental protection and safety management, ensuring compliance with national standards to mitigate regulatory risks[72]. - The company has a wastewater treatment facility with a capacity of 150 tons per day, ensuring compliance with national discharge standards[81]. - The company implements comprehensive pollution control measures, including the use of closed and automated equipment to reduce emissions[81]. - The company has established a noise control system that meets the industrial noise emission standards[83]. - The company has a three-year emergency response plan for environmental incidents, with the latest version prepared in January 2021[85]. Corporate Governance - The board of directors confirmed that there are no significant omissions or misleading statements in the half-year report, ensuring transparency[9]. - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[7]. - The company has no significant litigation or arbitration matters during the reporting period, indicating a stable legal standing[90]. - The company has a good integrity status during the reporting period, with no unfulfilled court judgments or significant debts due[90]. Shareholder Information - The company completed a non-public issuance of 16,929,124 shares on March 17, 2021, increasing the total share capital to 169,809,124 shares[101]. - Following the profit distribution on July 16, 2021, the company distributed cash dividends of 20,716,713.13 RMB and increased share capital by 67,923,650 shares, resulting in a new total of 237,732,774 shares[103]. - The top shareholder, Li Zhelong, holds 55,191,591 shares, representing 32.50% of the total shares[110]. - The total number of shares held by the top ten shareholders is 92,000,000 shares, which is a significant portion of the company's equity[110]. - The company has a total of 16,929,124 shares under lock-up conditions, which will be released on September 22, 2021[106].

Dividend and Profit Distribution - The company plans to distribute a cash dividend of 1.22 CNY per 10 shares, resulting in a total cash dividend of approximately 20.48 million CNY (including tax) based on 167,829,578 shares[7]. - The cash dividend payout ratio for the year is 40.06%[7]. - The cash dividend for 2019 was 0.73 CNY per 10 shares, totaling 7,971,600.00 CNY, accounting for 46.92% of the net profit attributable to ordinary shareholders[144]. - The cash dividend for 2018 was 2.26 CNY per 10 shares, amounting to 17,628,000.00 CNY, which represented 50.12% of the net profit attributable to ordinary shareholders[144]. - The company committed to distributing no less than 30% of the annual distributable profit as cash dividends, as per the commitment made in September 2017[146]. - The company also made a commitment in July 2020 to distribute no less than 30% of the annual distributable profit as cash dividends following the acquisition of Yantai Taisheng[146]. - The company has fulfilled its commitments regarding cash dividends and profit distribution as of the reporting period[146]. - The company has not proposed any cash profit distribution plan despite having positive distributable profits during the reporting period[145]. Financial Performance - The company's operating revenue for 2020 was CNY 699,056,294.51, representing a 6.08% increase compared to CNY 659,004,575.61 in 2019[24]. - Net profit attributable to shareholders of the listed company surged by 261.83% to CNY 51,788,448.07 in 2020 from CNY 14,312,950.68 in 2019[24]. - The basic earnings per share increased to CNY 0.34 in 2020, up 277.78% from CNY 0.09 in 2019[25]. - The company's total assets reached CNY 1,412,889,114.00 at the end of 2020, a 14.56% increase from CNY 1,233,330,433.95 in 2019[24]. - The company's net assets attributable to shareholders decreased by 5.29% to CNY 653,904,086.61 at the end of 2020 from CNY 690,392,946.61 at the end of 2019[24]. - The weighted average return on equity rose to 7.26% in 2020, an increase of 4.96 percentage points from 2.30% in 2019[25]. - The company's overall gross margin increased by 2.13 percentage points to 30.16% in 2020[64]. Market and Product Development - The company is focused on developing new adhesive technologies and expanding its market presence[16]. - The company is focusing on the development of high-performance environmentally friendly adhesive materials, which are gaining recognition in various fields and have significant strategic value[33]. - The company’s new product, the hot melt wall fabric, utilizes a patented four-layer composite technology and addresses consumer pain points in home decoration, with a promising market outlook[33]. - The adhesive industry in China is projected to grow at an average annual rate of 4.2% in production and 4.3% in sales during the 14th Five-Year Plan period[37]. - The company is expanding its market presence through partnerships with leading property companies to enhance customer traffic channels and market share[35]. - The company aims to improve production efficiency and product quality in response to increasing domestic and international market demands[37]. - The company is actively expanding its product offerings, including new products like adhesive films to meet the rising demand in the protective clothing and reflective materials markets[46]. Research and Development - The company has made significant investments in R&D to develop new products and improve existing product lines, ensuring competitiveness in the market[64]. - The company added 17 new national authorized patents in 2020, including 15 invention patents[56]. - The company is focusing on enhancing its R&D capabilities to improve profitability, with specific product development in areas such as electronic adhesives for new energy, lightweight adhesives for automotive and rail transport, functional films, special nylon, and biodegradable materials[134]. - The company plans to develop a series of new polyurethane hot melt adhesives, including a long skin time wet curing type[93]. - The company is exploring dual-system curing adhesives to enhance production efficiency in electronic assembly and industrial motor assembly sectors[96]. Risk Management - The company faces significant risks including policy risk, macroeconomic fluctuations, and raw material price volatility, which may impact future performance[10]. - The company is addressing risks related to accounts receivable due to potential delays in customer payments, exacerbated by macroeconomic changes[140]. - The company is exposed to foreign exchange risks, particularly related to USD transactions for certain products and raw materials, which could affect financial performance[140]. - The company has implemented strategic reserves for certain raw materials to mitigate price volatility risks[109]. - The company is committed to environmental compliance and safety management, investing in sustainable practices to mitigate risks associated with regulatory changes[142]. Acquisitions and Partnerships - The company acquired 100% equity of Jiangsu Defarui for a total consideration of 88 million yuan, completing the acquisition on June 2020[115]. - The company purchased 65% equity of Yantai Taiseng Chemical Technology Co., Ltd. for a total price of 56.901 million yuan, with the acquisition completed in August 2020[116]. - The company plans to strengthen cooperation with property companies, targeting business partnerships with 30-40 property firms by the end of 2021 to enhance project execution capabilities[133]. Environmental and Compliance - The company has established a wastewater treatment facility with a capacity of 150 tons per day, ensuring compliance with national discharge standards[185]. - The company has implemented comprehensive pollution control measures, including the installation of online monitoring systems for VOCs and particulate matter[189]. - The company has a robust environmental management system in place, focusing on pollution prevention and sustainable practices[186]. - The company strictly adheres to environmental protection regulations and implements a "three simultaneous" system for new projects[194]. Shareholder and Governance - The company’s major shareholders have pledged to maintain control and stability in strategic decision-making during the lock-up period[149]. - The company’s board and senior management have committed to not engage in unfair benefit transfers or damage the company's interests[149]. - The compensation system for the board or remuneration committee will be linked to the execution of the company's return compensation measures[150].

Financial Performance - Operating revenue rose by 83.14% to CNY 224,954,709.71 year-on-year[6] - Net profit attributable to shareholders increased by 183.08% to CNY 18,660,301.17 compared to the same period last year[6] - Net profit after deducting non-recurring gains and losses surged by 227.15% to CNY 16,797,391.59[6] - Basic and diluted earnings per share both reached CNY 0.12, a 200% increase from the previous year[6] - Total operating revenue for Q1 2021 reached ¥224,954,709.71, a significant increase of 83% compared to ¥122,831,992.35 in Q1 2020[40] - Net profit for Q1 2021 was ¥17,844,611.75, representing a 164% increase from ¥6,748,170.64 in Q1 2020[42] - The company reported a total profit of ¥24,323,737.80 for Q1 2021, up from ¥9,033,304.59 in Q1 2020, reflecting a 169% increase[42] Assets and Liabilities - Total assets increased by 24.82% to CNY 1,763,527,726.62 compared to the end of the previous year[6] - The company's total current assets reached RMB 989,088,005.92, up from RMB 662,959,027.06 at the end of 2020[32] - Total liabilities amounted to ¥704,007,793.82, compared to ¥697,704,922.79, showing a slight increase of about 0.2%[34] - Shareholders' equity reached ¥1,059,519,932.80, up from ¥715,184,191.21, marking a significant increase of approximately 48%[34] - Current liabilities rose to ¥516,964,513.51 from ¥499,999,071.25, reflecting an increase of approximately 3.9%[33] Cash Flow - Cash flow from operating activities showed a significant improvement, with a net outflow of CNY 42,900,389.04 compared to a much smaller outflow of CNY 608,259.75 in the previous year[6] - Cash inflow from operating activities in Q1 2021 was ¥204,112,635.21, compared to ¥127,264,323.55 in Q1 2020, marking a 60% increase[47] - The net cash flow from operating activities for Q1 2021 was -42,900,389.04 RMB, compared to -608,259.75 RMB in Q1 2020, indicating a significant decline in operational performance[48] - The company reported a net increase in cash and cash equivalents of 267,670,599.45 RMB for Q1 2021, contrasting with a decrease of -16,827,338.07 RMB in Q1 2020[49] Shareholder Information - The total number of shareholders reached 5,700 by the end of the reporting period[9] - The largest shareholder, Li Zhelong, holds 32.50% of the shares, with 55,191,591 shares pledged[9] Research and Development - Research and development expenses surged by 143.38% to ¥6,580,865.26 from ¥2,703,967.96, reflecting the company's commitment to enhancing R&D investment[13] - The company incurred a tax expense of ¥6,479,126.05 in Q1 2021, compared to ¥2,285,133.95 in Q1 2020, which is an increase of 184%[42] Capital Raising and Investments - The total amount raised from the non-public offering was ¥386,999,774.64, with a net amount of ¥373,853,548.23 after deducting issuance costs[20] - The company completed a non-public offering, increasing its capital by 16,929,124 shares, which will not change the control of the company[21] - The company expects the fundraising projects to improve profitability and market share in the hot melt adhesive sector, contributing to sustainable development[21] Other Financial Metrics - The company reported a significant increase in prepayments, which rose by 182.88% to ¥42,516,842.74 from ¥15,030,155.27, mainly due to increased advance payments for imported raw materials[11] - The company’s sales expenses increased by 57.67% to ¥14,584,051.04 from ¥9,249,660.39, attributed to heightened promotional activities in the wall fabric division[12] - The company received a government subsidy of up to RMB 41 million related to the asset transfer, which will impact current profits[29]

Financial Performance - Operating income decreased by 5.40% to CNY 453,027,119.10 for the first nine months of the year[6] - Net profit attributable to shareholders increased by 101.20% to CNY 30,894,485.32 for the first nine months[6] - Basic earnings per share doubled to CNY 0.20 from CNY 0.10[8] - The company reported a net loss of CNY 680,443.57 from non-recurring items for the first nine months[11] - The company's revenue for Q3 2020 increased by 10.20% year-on-year[17] - Net profit for Q3 2020 was ¥22,933,437.58, significantly higher than ¥4,942,146.17 in Q3 2019, marking a year-over-year increase of 364.5%[30] - The company's net profit is expected to see significant growth compared to the same period last year due to improved operational conditions[18] Assets and Liabilities - Total assets increased by 5.19% to CNY 1,297,343,307.39 compared to the end of the previous year[6] - The total current assets as of September 30, 2020, amounted to ¥561,185,894.29, compared to ¥546,339,841.67 at the end of 2019[21] - The company's total assets increased to ¥1,297,343,307.39 as of September 30, 2020, up from ¥1,233,320,168.97 at the end of 2019[23] - The total liabilities rose to ¥654,296,694.64 as of September 30, 2020, compared to ¥537,641,871.88 at the end of 2019[22] - Total liabilities increased to ¥272,619,262.76 in Q3 2020 from ¥258,902,740.54 in Q3 2019, representing a growth of 5.5%[27] - Shareholders' equity decreased to ¥663,689,660.15 in Q3 2020 from ¥675,367,361.80 in Q3 2019, a decline of 1.0%[27] Cash Flow - Net cash flow from operating activities increased by 44.92% to CNY 29,553,791.64 for the first nine months[6] - Cash flow from operating activities for Q3 2020 was 29,553,791.64, a 44.92% increase compared to the same period last year[16] - The net cash flow from operating activities for Q3 2020 was ¥29,553,791.64, an increase from ¥20,393,155.78 in Q3 2019, representing a growth of approximately 45.5%[38] - Total cash inflow from operating activities for the first three quarters of 2020 was ¥263,792,725.43, compared to ¥276,856,224.78 in the same period of 2019, showing a decrease of about 4.2%[41] - The net cash flow from investing activities for Q3 2020 was -¥100,913,041.34, slightly improved from -¥105,469,412.70 in Q3 2019[39] - The net cash flow from financing activities for Q3 2020 was ¥46,904,357.00, up from ¥26,829,543.13 in Q3 2019, reflecting a growth of about 74.8%[39] - The total cash and cash equivalents at the end of Q3 2020 were ¥40,584,750.93, down from ¥57,559,351.33 at the end of Q3 2019, a decrease of approximately 29.5%[39] Shareholder Information - The total number of shareholders reached 5,827 by the end of the reporting period[12] - The largest shareholder, Li Zhelong, holds 36.10% of the shares, with 9,604,000 shares pledged[12] Market and Product Development - The company is focusing on expanding its market presence and enhancing product development strategies[6] - The gross profit margin for high-margin products exceeded 45%, with reactive adhesive products' revenue growing by 77.10% year-on-year[17] - Sales revenue for electronic adhesives and PUR products increased by 53.03% and 161.95% respectively[17] - Sales revenue from hot melt wall cloth distributors grew by 54.42% year-on-year[17] - The average gross profit margin for the first nine months of 2020 increased by 2.76% year-on-year, reaching 30.58%[17] Expenses - The company's financial expenses increased by 75.44% year-on-year, primarily due to increased borrowings[16] - Research and development expenses for Q3 2020 were ¥5,587,325.61, compared to ¥5,249,151.68 in Q3 2019, indicating an increase of 6.4%[30] - Financial expenses for Q3 2020 rose to ¥5,641,705.08 from ¥1,682,521.83 in Q3 2019, a significant increase of 235.5%[30] Inventory and Goodwill - The company reported a decrease in inventory to ¥150,413,330.43 as of September 30, 2020, from ¥153,706,732.57 at the end of 2019[21] - The goodwill increased by 92.82% to 75,437,242.44 due to the acquisition of a subsidiary[15] - Long-term equity investment increased to ¥75,437,242.44 as of September 30, 2020, compared to ¥39,122,242.44 at the end of 2019[22]

Financial Performance - The company's operating revenue for the first half of the year was ¥258.19 million, a decrease of 14.53% compared to ¥302.09 million in the same period last year[19]. - Net profit attributable to shareholders was ¥9.22 million, down 15.44% from ¥10.90 million year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥7.04 million, a decline of 28.96% from ¥9.91 million in the previous year[19]. - The company's basic earnings per share decreased by 20.00% to ¥0.08 from ¥0.10 year-on-year[20]. - The weighted average return on net assets fell by 0.27 percentage points to 1.50% compared to 1.77% in the previous year[20]. - The company's total assets rose by 2.63% to ¥1,101.03 million compared to ¥1,072.86 million at the end of the previous year[19]. - The company's net assets attributable to shareholders increased slightly by 0.21% to ¥610.54 million from ¥609.29 million at the end of the previous year[19]. - The company's cash flow from operating activities significantly increased to ¥15.42 million, compared to a negative cash flow of ¥4.50 million in the same period last year, representing a 442.36% improvement[19]. Market and Product Development - The company is focused on developing new products and technologies, particularly in the hot melt adhesive sector[10]. - Revenue from new products, specifically reactive adhesives, grew by 52.51% year-on-year, with electronic adhesives and PUR products increasing by 16.03% and 181.67% respectively[19]. - The company plans to focus on expanding its product offerings in the environmentally friendly adhesive market, particularly in the areas of hot melt wall coverings and reactive adhesives, which are expected to drive future growth[27]. - The company has shifted its business strategy to focus on distributors as the primary operating model, moving away from direct sales and engineering channels[29]. - The company is actively developing new products and expanding applications of hot melt adhesive films in safety protection and other new fields[39]. - The company plans to leverage the advantages of its hot-melt membrane wall cloth to expand market share in the home renovation sector, targeting a significant breakthrough in the old house renovation market[47]. Risks and Challenges - Major risks faced by the company include policy risks, economic slowdown due to COVID-19, and fluctuations in raw material prices[6]. - The ongoing COVID-19 pandemic poses risks to the company's financial status and operational performance due to global economic slowdown and supply chain disruptions[77]. - The company faces potential risks from policy changes affecting tax incentives for high-tech enterprises, which could impact profitability[76]. - The company faces risks of declining gross profit margins due to potential increases in direct labor costs and manufacturing expenses, as well as intensified market competition[78]. - The company has initiated legal actions against overdue accounts receivable to mitigate the risk of bad debts, which may increase due to macroeconomic pressures from the pandemic[79]. Corporate Governance and Compliance - The company has not engaged in non-operating fund occupation by controlling shareholders or provided guarantees in violation of regulations[6]. - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the report's integrity[7]. - The company maintains a good integrity status, with no significant debts or court judgments unmet during the reporting period[92]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period, indicating a focus on reinvestment[84]. - The company has not changed its accounting firm during the audit period, and there are no non-standard audit reports[89]. Subsidiaries and Acquisitions - The company operates several wholly-owned subsidiaries, including Kunshan Tianyang and Nantong Tianyang, enhancing its market presence[10]. - The company acquired Yantai Taisheng Fine Chemical Technology Co., Ltd., enhancing its position in the electronic industrial adhesive sector[54]. - The company acquired 100% equity of Jiangsu Defarui, establishing a complete industrial chain in the hot melt wall fabric market[56]. - The company is currently in the process of deregistering Hong Kong Tianyang due to underperformance in recent years[72]. Financial Management - The company has established a comprehensive risk management framework to address potential operational and market risks[6]. - The company has committed to strict environmental protection measures, ensuring compliance with national standards, and is investing in safety and environmental training[81]. - The company has a retained earnings balance of 147,561,656.46, which supports future growth initiatives[153]. - The company has set aside 31,200,000.00 for capital reserves, indicating a proactive approach to financial management[156]. Legal Matters - The company reported a significant lawsuit involving a claim of 1,290,725.00 RMB for product quality issues, currently in the first instance stage[91]. - Another lawsuit involves a claim of 1,277,576.87 RMB for unpaid goods, which is in the execution stage[90]. - The company has a total of 995,428.18 RMB in claims from a civil lawsuit regarding overdue payments, currently in the first instance stage[91]. Shareholder Information - The total number of shares increased from 109,200,000 to 152,880,000 after a cash dividend of 0.73 RMB per 10 shares and a capital reserve increase of 4 shares for every 10 shares held[115]. - The largest shareholder, Li Zhelong, holds 39,422,565 shares, representing 36.10% of total shares, with 19,667,492 shares pledged[120]. - The company appointed Qin Jiawei as the new financial officer on June 15, 2020, following the resignation of Zhang Xu[123].

Financial Performance - Operating revenue declined by 10.62% to CNY 122,831,992.35 year-on-year[5] - Net profit attributable to shareholders increased by 66.89% to CNY 7,217,178.32 compared to the same period last year[5] - Net profit excluding non-recurring gains and losses rose by 148.85% to CNY 5,749,921.78 year-on-year[5] - The company achieved a net profit growth of 148.85% after excluding non-recurring gains despite a slight decline in revenue[17] - Total operating revenue for Q1 2020 was ¥122,831,992.35, a decrease of 10.6% from ¥137,427,462.60 in Q1 2019[30] - Net profit for Q1 2020 increased to ¥7,373,353.38, representing a 55.0% increase compared to ¥4,748,786.22 in Q1 2019[31] - Basic and diluted earnings per share increased by 16.67% to CNY 0.07[5] - Basic and diluted earnings per share for Q1 2020 were both ¥0.07, compared to ¥0.06 in Q1 2019[32] Asset and Liability Changes - Total assets decreased by 2.53% to CNY 1,045,739,734.03 compared to the end of the previous year[5] - Total assets decreased from ¥1,072,856,430.20 to ¥1,045,739,734.03, a decline of approximately 2.6%[24] - Current liabilities decreased from ¥372,802,065.37 to ¥324,381,167.07, a reduction of about 13%[25] - Non-current liabilities increased from ¥84,577,488.51 to ¥98,508,337.26, an increase of approximately 16.4%[25] - Total liabilities decreased from ¥457,379,553.88 to ¥422,889,504.33, a decline of approximately 7.5%[25] - Total equity increased from ¥615,476,876.32 to ¥622,850,229.70, reflecting a growth of about 1.2%[26] Cash Flow Analysis - Cash flow from operating activities turned negative at CNY -2,420,197.29, a decline of 121.12% compared to the previous year[5] - The net cash flow from operating activities was negative at -¥2,420,197.29, a decline of 121.12% compared to the previous period[16] - Cash flow from operating activities in Q1 2020 was ¥119,342,758.42, slightly down from ¥121,393,951.59 in Q1 2019[34] - Net cash flow from operating activities was CNY -12,929,706.08 in Q1 2020, a significant decline from CNY 56,061,915.92 in Q1 2019[38] - The cash flow from operating activities was impacted by increased payments for goods and services, which rose significantly compared to the previous year[38] Expense Management - Sales expenses decreased by CNY 3,708,600 due to the closure of all direct stores and a shift in the business model for wall coverings[8] - Research and development expenses for Q1 2020 were ¥2,703,967.96, a decrease of 14.4% from ¥3,159,126.19 in Q1 2019[30] - Financial expenses in Q1 2020 were ¥2,685,057.04, down from ¥3,134,929.36 in Q1 2019[30] Inventory and Receivables - Accounts receivable decreased by 35.92% to ¥3,468,612.56 due to maturity of receivables[15] - Accounts receivable increased from ¥108,028,190.89 to ¥141,811,918.28, an increase of about 31%[27] - Inventory decreased from ¥80,151,648.46 to ¥26,282,229.57, a significant reduction of approximately 67%[27] Market Conditions and Future Outlook - The ongoing COVID-19 pandemic may continue to adversely affect the company's financial status and operational performance in the future[20] - The company expects significant improvement in asset impairment compared to 2019 due to completed capacity relocation and enhanced receivables management[19] - The company plans to leverage existing production capacity and technology advantages to enhance market share and expand into new products and applications[17] Investment and Financing Activities - Investment properties rose by 61.40% to ¥9,979,459.87 primarily from leasing out the Shanghai Tianyang factory[15] - Cash outflow for purchasing goods and services was CNY 98,227,002.75, up from CNY 51,871,595.30 in the previous year, indicating an increase of approximately 89.5%[38] - Financing cash inflow was CNY 79,000,000.00 in Q1 2020, down from CNY 102,060,938.30 in Q1 2019, representing a decrease of approximately 22.5%[39] - Net cash flow from financing activities was CNY -10,850,977.92 in Q1 2020, compared to CNY 1,900,622.81 in Q1 2019, indicating a decline[39]

Financial Performance - The company's operating revenue for 2019 was CNY 659,067,332.32, representing a 17.52% increase compared to CNY 560,823,120.00 in 2018[21]. - The net profit attributable to shareholders decreased by 51.70% to CNY 16,989,011.79 from CNY 35,174,937.19 in the previous year[21]. - The basic earnings per share dropped by 50.00% to CNY 0.16, down from CNY 0.32 in 2018[22]. - The total assets increased by 9.70% to CNY 1,072,856,430.20 at the end of 2019, compared to CNY 977,958,104.07 at the end of 2018[21]. - The net cash flow from operating activities for 2019 was CNY 45,796,041.30, an increase of 8.81% from CNY 42,086,771.23 in 2018[21]. - The company reported a total non-recurring loss of approximately -4.35 billion, compared to a profit of 4.15 billion in 2018[29]. - The company's revenue from non-operating income was approximately 590.39 million in 2019, indicating a significant contribution to overall financial performance[29]. - The company achieved operating revenue of CNY 659.07 million, a year-on-year increase of 17.52%[58]. - Net profit attributable to shareholders was CNY 16.99 million, down 51.70% year-on-year, while the net profit excluding non-recurring gains and losses decreased by 31.23% to CNY 21.34 million[58]. - The total revenue for the company reached ¥646,412,065.79, an increase of 15.89% compared to the previous year[64]. Dividend Distribution - The company plans to distribute a cash dividend of 0.73 CNY per 10 shares, totaling 7,971,600 CNY, and will increase its total share capital to 152,880,000 shares through a capital reserve conversion of 4 shares for every 10 shares held[5]. - In 2019, the cash dividend payout ratio was 46.92% of the net profit attributable to ordinary shareholders, which was 16,989,011.79 RMB[138]. - The company has a commitment to distribute no less than 30% of the distributable profit as cash dividends each year, as per the commitment made on September 27, 2017[140]. - In 2018, the cash dividend was 2.26 RMB per 10 shares, with a total payout of 17,628,000 RMB, representing 50.12% of the net profit attributable to ordinary shareholders[138]. - In 2017, the cash dividend was 2.58 RMB per 10 shares, with a total payout of 15,480,000 RMB, representing 50.96% of the net profit attributable to ordinary shareholders[138]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[139]. Risks and Challenges - The company faces significant risks including economic slowdown due to the COVID-19 pandemic, accounts receivable risks, raw material price fluctuations, and potential declines in gross margin[7]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting the importance of investment risk awareness[6]. - The company is addressing accounts receivable risks by strengthening customer credit investigations and management, and has initiated legal actions for overdue accounts[132]. - The cost of raw materials, which constitutes over 80% of production costs for hot melt adhesives, is subject to significant price fluctuations influenced by oil prices and exchange rates[132]. - The company anticipates challenges in capacity expansion if market growth does not meet expectations, potentially affecting projected earnings[133]. - The company is investing in safety and environmental compliance to mitigate risks associated with regulatory changes and operational safety[133]. Market and Product Development - The company is focused on expanding its product offerings in the hot melt adhesive sector, which includes various types of adhesives such as EVA and PUR[11]. - The company is expanding its product line to include environmentally friendly hot melt wall fabrics and reactive adhesives, targeting a growing market demand[32]. - The adhesive market is projected to grow at a compound annual growth rate (CAGR) of 5.3% globally from 2017 to 2022, with the Asia-Pacific region leading at 5.7%[35]. - The company plans to shift its sales strategy to focus on distributors, enhancing its market reach and operational efficiency[34]. - The company aims to embrace online sales channels, including live streaming, to integrate online and offline marketing efforts[34]. - The company is actively expanding its market share in the automotive interior sector, despite a 4.08% decline in sales volume in 2019 due to market downturns[41]. - The company is focusing on developing adhesive solutions for the rapidly growing electronic components market driven by 5G applications[44]. - The company is recognized as a key high-tech enterprise under the National Torch Program and has established a research team primarily composed of PhD and master's researchers[48]. Environmental and Compliance Efforts - The company is committed to replacing solvent-based adhesives with high-performance, environmentally friendly alternatives, aligning with stricter environmental regulations[36]. - The company has established an emergency response plan for environmental incidents, last updated in June 2019[177]. - Online monitoring systems for wastewater and air emissions have been installed to ensure compliance with environmental regulations[177]. - The company has implemented comprehensive pollution control measures, achieving compliance with air quality standards[174]. - The company has actively engaged in employee training to enhance skills and promote growth[171]. - Environmental management practices have been recognized by various stakeholders, reflecting the company's commitment to sustainability[171]. Legal and Regulatory Matters - The company is currently involved in multiple lawsuits, with claims totaling 9,865,418.09 RMB against Zhejiang Yuhui Sunshine Energy Co., Ltd. for overdue payments[152]. - The company has a pending claim of 1,271,191.89 RMB against Jian Kai Sunshine New Energy Technology Co., Ltd. for unpaid debts[152]. - The company has reported a total of 3,000,000.00 RMB in claims against Zhongdian Electric (Shanghai) Technology Co., Ltd. due to business transactions[152]. - The company has reported a total of 1,700,692.00 RMB in claims against Yangzhou Runbang New Energy Development Co., Ltd. for unpaid debts[152]. - The company has a total guarantee amount of RMB 126,000,404.27, which accounts for 20.68% of the company's net assets[166]. - The company provided guarantees totaling RMB 164,500,404.27 to subsidiaries during the reporting period[166]. Research and Development - The company has initiated several R&D projects in 2019, including the development of a copolyamide hot melt adhesive for metal and PVC bonding, and a low-temperature resistant modified polyester hot melt adhesive[90][91]. - The company has developed a new strategy to enhance its research and development capabilities, focusing on optimizing product processes and improving performance in practical applications[90]. - Research and development expenses amounted to 18,423,174.03 CNY, representing 2.80% of total revenue[75]. - The company has obtained 10 domestic patents in 2019, including 5 invention patents and 5 utility model patents, bringing the total to 92 authorized patents by the end of the reporting period[48]. Shareholder Information - The total number of ordinary shares increased from 78,000,000 to 109,200,000 after a capital reserve conversion of 4 shares for every 10 shares held[184]. - The earnings per share decreased from 0.32 RMB to 0.16 RMB following the share increase[188]. - The net asset value per share slightly decreased from 5.73 RMB to 5.58 RMB after the share increase[188]. - The total number of ordinary shareholders increased from 9,951 to 11,497 during the reporting period[190]. - The largest shareholder, Li Zhelong, holds 36.10% of the shares, with a total of 39,422,565 shares, of which 19,667,492 shares are pledged[192]. - The second-largest shareholder, Li Mingjian, holds 15.02% of the shares, totaling 16,400,475 shares, with 7,280,000 shares pledged[192].

Financial Performance - Operating revenue for the first nine months rose by 17.36% to CNY 478,896,980.02 compared to the same period last year[6] - Net profit attributable to shareholders decreased by 51.10% to CNY 15,355,326.19 for the first nine months[6] - Basic earnings per share dropped by 51.72% to CNY 0.14[6] - The weighted average return on equity decreased by 2.65 percentage points to 2.46%[6] - Total operating revenue for Q3 2019 reached ¥176,803,493.63, a 25.7% increase from ¥140,627,644.26 in Q3 2018[32] - Net profit for Q3 2019 was ¥4,942,146.17, a decrease of 62.8% compared to ¥13,286,200.98 in Q3 2018[33] - The company reported a total profit of ¥7,509,772.14 for Q3 2019, down 53.6% from ¥16,135,633.64 in Q3 2018[33] - The total profit for Q3 2019 was ¥15,001,550.34, slightly higher than ¥14,765,011.08 in Q3 2018, indicating a growth of 1.6%[36] Assets and Liabilities - Total assets increased by 5.93% to CNY 1,035,945,615.78 compared to the end of the previous year[6] - Other current assets increased by 91.59% to CNY 65,652,126.87 due to the purchase of financial products during the reporting period[14] - Investment properties rose by 321.31% to CNY 1,985,856.23, primarily due to the completion of renovations for rental purposes[14] - Fixed assets increased by 130.65% to CNY 402,141,261.83, mainly from the transfer of construction in progress for a 60,000-ton hot melt adhesive project[14] - The company's total current assets reached ¥495,628,307.57, up from ¥470,217,251.49 at the end of 2018, reflecting an increase of about 5.5%[24] - The total liabilities increased to ¥422,726,892.29 from ¥338,518,319.45, marking a rise of approximately 24.9%[26] - Total liabilities as of Q3 2019 were ¥233,769,934.80, compared to ¥140,979,946.09 in the same period last year, reflecting a 66% increase[30] Cash Flow - Cash flow from operating activities decreased by 23.15% to CNY 20,393,155.78 compared to the same period last year[6] - The net cash flow from operating activities decreased by 23.15% to CNY 20,393,155.78, attributed to increased management personnel and sales expenses[17] - Cash inflow from investment activities for the first nine months of 2019 was CNY 64,553,797.14, compared to CNY 29,806,110.05 in 2018, indicating an increase of approximately 116.5%[38] - Net cash flow from financing activities for the first nine months of 2019 was CNY 26,829,543.13, a decrease of approximately 67.3% from CNY 82,047,737.94 in 2018[38] - Cash and cash equivalents decreased to ¥61,163,782.87 from ¥117,762,350.09, a decline of about 48.2%[24] - Cash inflow from financing activities for the parent company was CNY 150,250,000.00 in the first nine months of 2019, down from CNY 202,217,772.69 in 2018[39] Shareholder Information - The number of shareholders at the end of the reporting period was 8,405[11] - The largest shareholder, Li Zhelong, holds 36.10% of the shares, with 39,422,565 shares pledged[11] Operational Challenges - The company faced a net loss of CNY 7,888,400 from equipment disposal during the relocation process, impacting profits for the first three quarters[18] - The company expects a profit impact of approximately CNY 3,000,000 in Q4 2019 due to remaining equipment disposal losses[20] - The company has initiated legal actions against overdue accounts receivable, which may significantly impact profits if not recovered[21] - The company plans to strengthen customer credit investigations and performance management to mitigate risks associated with overdue payments[21] Market and Product Performance - Sales revenue for the first three quarters grew by approximately 17.36% year-on-year, with specific product sales increasing: hot melt adhesive powder by 6.73%, EVA encapsulation film by 27.48%, and hot melt wall cloth by 60.79%[17] - EVA packaging film sales revenue is gradually increasing as a proportion of total revenue, but growth in the photovoltaic industry may slow due to policy impacts, affecting downstream customer payment situations[21] - The company’s production capacity has stabilized post-relocation, with sales volume and revenue for hot melt adhesive products increasing by 30.8% and 27.8% respectively in Q3 2019[17] - The company is not affected by the recent provincial environmental regulations, which may benefit its market share as competitors face potential shutdowns[19] Research and Development - Research and development expenses for Q3 2019 amounted to ¥5,249,151.68, an increase from ¥3,986,584.08 in Q3 2018[32] - Research and development expenses for Q3 2019 were ¥3,890,840.60, up from ¥3,055,888.36 in Q3 2018, representing a 27.2% increase[35] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[32]

Financial Performance - Revenue for the first half of the year reached ¥302,093,486.39, an increase of 12.97% compared to ¥267,413,529.17 in the same period last year[21]. - Net profit attributable to shareholders decreased by 42.67% to ¥10,904,908.05 from ¥19,019,872.37 year-on-year[21]. - Basic earnings per share fell by 41.18% to ¥0.10, down from ¥0.17 in the previous year[22]. - The net cash flow from operating activities dropped significantly to -¥4,503,407.07, compared to ¥1,210,358.92 in the same period last year, a decrease of 472.07%[21]. - The company's total assets increased by 6.29% to ¥1,039,483,231.19 from ¥977,958,104.07 at the end of the previous year[21]. - The weighted average return on equity decreased by 1.32 percentage points to 1.78% from 3.10% year-on-year[22]. - The decline in net profit was attributed to reduced sales volume of hot melt adhesive products by 438.58 tons due to production capacity relocation and increased sales expenses by approximately ¥4.6 million[22]. - The company achieved operating revenue of 302.09 million yuan, a year-on-year increase of 12.97%[41]. - The net profit attributable to shareholders was 10.90 million yuan, a year-on-year decrease of 42.67%[41]. Risks and Challenges - Major risks faced by the company include asset impairment risks due to capacity relocation, accounts receivable risks, fluctuations in raw material prices, and potential declines in gross profit margins[9]. - The company has established a risk warning for potential impacts from policy changes and environmental regulations[9]. - The company anticipates a significant decrease in cumulative net profit by the end of the next reporting period due to asset losses from the relocation and consolidation of production capacity[57]. - The company expects asset impairment risks due to the relocation of the 60,000-ton hot melt adhesive project, with estimated losses between CNY 7 million and CNY 10 million[58]. - The company faces risks related to accounts receivable collection, particularly due to potential slowdowns in the photovoltaic industry and impacts from the US-China trade war[59]. - The production cost of the company's hot melt adhesive products is heavily influenced by raw material prices, which account for over 80% of production costs[59]. - The company is exposed to foreign exchange risks, particularly related to USD transactions, which may impact financial performance[60]. - The company has reported a risk of declining gross margins if raw material prices rise significantly without corresponding price adjustments for products[61]. Corporate Governance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8]. - The report indicates that the financial report has not been audited, ensuring the accuracy and completeness of the financial data presented[5]. - The company has not reported any changes in its information disclosure practices during the reporting period[17]. - The company held two shareholder meetings during the reporting period, both of which complied with legal and regulatory requirements[64]. - There were no significant litigation or arbitration matters during the reporting period[70]. - The company has a good integrity status, with no significant debts or court judgments pending against it during the reporting period[75]. - The company has not disclosed any new employee incentive plans or stock options during the reporting period, indicating a focus on existing strategies[76]. - The company has not reported any environmental issues or significant changes in environmental information during the reporting period[89]. Subsidiaries and Market Presence - The company has a total of four wholly-owned subsidiaries and one controlling subsidiary, indicating a diversified operational structure[12]. - The company has established sales points in 4 municipalities and 16 provincial capitals, with over 100㎡ store areas, and has completed sales points in 44 cities above the prefecture level[28]. - The company has become one of the largest producers of PA and PES hot-melt adhesive products in China, with a strong competitive advantage in both domestic and international markets[35]. - The company is actively expanding its market presence through a strategy of "one city, one dealer, multiple stores" to enhance regional operations[28]. - The company has a leading market share in the garment interlining industry and has established long-term cooperation with the top three global suppliers[30]. Research and Development - The company is focusing on technological innovation to meet the demand for environmentally friendly adhesives, with products widely used in various industries[26]. - The company has established a qualified supplier database to manage raw material procurement effectively, ensuring alignment with production needs[26]. - The company has participated in the formulation of 10 industry standards, showcasing its strong R&D capabilities in the industry[30]. - The company is committed to developing new technologies and products, including low-odor, solvent-free coating materials[44]. - The company has obtained a total of 89 national authorized patents, including 75 invention patents and 14 utility model patents[36]. Financial Management - The company plans to borrow up to RMB 15 million from its subsidiary Yantai Xinyou to improve capital efficiency and reduce costs, with a current outstanding loan of RMB 7 million as of June 30, 2019[82]. - The company has provided guarantees totaling RMB 111 million, which accounts for 17.94% of its net assets[87]. - The company has a total of RMB 10 million in guarantees issued to subsidiaries during the reporting period[87]. - The company has engaged in various related party transactions, including sales agreements with subsidiaries, with transaction amounts generally below 10% of similar transactions[76]. - The company has made efforts to secure its financial interests through legal actions, which may impact its future cash flow and operational stability[72]. Share Capital and Equity - The total share capital increased from 78,000,000 shares to 109,200,000 shares after a capital reserve conversion of 4 shares for every 10 shares held[93]. - The largest shareholder, Li Zhelong, holds 39,422,565 shares, representing 36.1% of the total shares, with 19,667,492 shares pledged[96]. - Li Mingjian, the second-largest shareholder, holds 16,400,475 shares, representing 15.02% of the total shares, with 7,280,000 shares pledged[96]. - The total number of ordinary shareholders reached 8,138 by the end of the reporting period[94]. - The company has implemented a share distribution plan approved on May 10, 2019, which was executed on June 2019[93]. Accounting Policies - The financial statements are prepared in accordance with the enterprise accounting standards, reflecting the company's financial position and operating results accurately[145]. - The company uses RMB as its functional currency for accounting purposes[148]. - The company recognizes the income, expenses, and cash flows of subsidiaries from the acquisition date to the reporting date in its consolidated financial statements[152]. - The company measures expected credit losses based on the risk of default weighted by the expected loss of financial instruments[159]. - The company assesses credit risk based on various factors, including significant deterioration in the debtor's financial condition and overdue payments exceeding 30 days[163].

Financial Performance - Operating revenue for the first quarter reached CNY 137,427,462.60, a 7.67% increase year-on-year[7] - Net profit attributable to shareholders decreased by 22.67% to CNY 4,324,498.64 compared to the same period last year[7] - Net profit attributable to shareholders after deducting non-recurring gains and losses fell by 54.79% to CNY 2,310,607.01[7] - The weighted average return on equity decreased by 0.23 percentage points to 0.69%[7] - Basic earnings per share decreased by 14.29% to CNY 0.06[7] - Total revenue for Q1 2019 was CNY 137,427,462.60, an increase of 7.0% compared to CNY 127,638,623.08 in Q1 2018[33] - Net profit for Q1 2019 was CNY 4,748,786.22, a decrease of 22.6% from CNY 6,130,628.88 in Q1 2018[34] - Earnings per share for Q1 2019 were CNY 0.06, down from CNY 0.07 in Q1 2018[35] - Operating profit for Q1 2019 was CNY 5,560,220.78, down 24.1% from CNY 7,316,392.33 in Q1 2018[34] - The company reported a total comprehensive income of CNY 4,748,786.22 for Q1 2019, compared to CNY 6,130,628.31 in Q1 2018, a decrease of 22.6%[35] Assets and Liabilities - Total assets increased by 3.38% to CNY 1,011,000,045.44 compared to the end of the previous year[7] - Current assets totaled ¥483,623,810.31, compared to ¥470,217,251.49, reflecting an increase of about 2.9%[25] - Total liabilities amounted to ¥366,810,095.29, up from ¥338,518,319.45, marking an increase of around 8.3%[26] - Short-term borrowings increased to ¥145,014,667.20 from ¥130,128,740.22, a rise of about 11.4%[26] - Total equity attributable to shareholders reached ¥629,943,710.49, slightly up from ¥625,617,832.54, showing a marginal increase of 0.4%[27] - Total liabilities increased to CNY 169,029,721.79 in Q1 2019 from CNY 140,979,946.09 in Q1 2018, reflecting a growth of 19.9%[30] - Total equity increased to CNY 658,512,247.51 in Q1 2019 from CNY 651,807,439.48 in Q1 2018, a growth of 1.3%[30] Cash Flow - Cash flow from operating activities improved significantly, with a net cash inflow of CNY 11,459,505.42, a 177.04% increase compared to the previous year[7] - In Q1 2019, the company generated a net cash flow from operating activities of ¥11,459,505.42, compared to a negative cash flow of ¥14,874,777.57 in Q1 2018, marking a significant improvement[42] - Total cash inflow from operating activities was ¥130,820,949.69, up from ¥103,547,747.35 in the same period last year, representing an increase of approximately 26.3%[42] - The company reported a total cash outflow from operating activities of ¥119,361,444.27, slightly higher than ¥118,422,524.92 in Q1 2018[42] - Cash flow from investing activities showed a net outflow of ¥50,857,511.67, compared to a net outflow of ¥32,290,921.41 in Q1 2018, indicating increased investment activity[43] - Cash inflow from financing activities was ¥116,171,337.15, significantly higher than ¥44,113,811.77 in Q1 2018, reflecting a strong increase in borrowing[43] - The company repaid debts amounting to ¥100,675,011.32 during the quarter, compared to ¥7,310,889.84 in the same period last year[43] Shareholder Information - The total number of shareholders at the end of the reporting period was 8,819[10] - Major shareholders include Li Zhelong, holding 36.10% of shares, and Li Mingjian, holding 15.02%[10] Investments and Expenses - Sales expenses increased by 42.82% to ¥14,289,634.74, driven by efforts to expand the wall fabric market and increased sales personnel and exhibition costs[15] - Investment income decreased by 91.30% to ¥18,213.91, primarily due to interest received from financial products maturing in the previous year[15] - Research and development expenses decreased to CNY 3,159,126.19 in Q1 2019 from CNY 5,140,698.30 in Q1 2018, a reduction of 38.6%[34] - Employee compensation payments increased to ¥20,303,092.65 from ¥15,267,811.11 in Q1 2018, indicating a rise in workforce costs[42] Production and Relocation - The company is in the process of relocating production capacity from Kunshan to Nantong, with trial production already underway at the Nantong facility[21] - The company anticipates potential asset impairment due to the relocation of production equipment, with specific amounts pending professional evaluation[21] - The company is applying for local government subsidies related to the relocation, which, if successful, may provide additional compensation rewards[21] Other Financial Metrics - Other current assets increased by 89.69% to ¥65,002,226.16 due to the purchase of financial products during the reporting period[13] - Prepayments rose by 42.80% to ¥16,923,052.99 primarily from advance payments for EVA particles purchased from overseas[13] - Fixed assets surged by 119.88% to ¥383,350,242.52 mainly due to the completion of the 60,000-ton hot melt adhesive project in Nantong[13] - Deferred income rose by 30.65% to ¥21,336,886.91, attributed to government subsidies received for industrial support[13] - Cash and cash equivalents stood at ¥68,604,868.33, compared to ¥30,062,012.99, reflecting a significant increase of approximately 128.3%[28] - Accounts receivable decreased to ¥110,900,699.63 from ¥133,900,746.99, a decline of about 17.2%[28] - Non-current assets totaled ¥527,376,235.13, up from ¥507,740,852.58, indicating an increase of approximately 3.5%[25] - The company reported a total of ¥155,394,471.06 in undistributed profits, compared to ¥151,069,972.42, reflecting an increase of about 2.2%[26]