Financial Performance - The company's operating revenue for the first half of 2022 was CNY 457,757,806.34, representing an increase of 8.50% compared to CNY 421,905,550.71 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2022 was CNY 70,487,652.87, up 16.38% from CNY 60,566,271.36 in the previous year[18]. - Basic earnings per share for the first half of 2022 were CNY 0.39, reflecting a growth of 14.71% from CNY 0.34 in the same period last year[20]. - The company achieved operating revenue of 458 million RMB, a year-on-year increase of 8.5%[42]. - The net profit attributable to shareholders reached 70.49 million RMB, reflecting a growth of 16.38% compared to the previous year[38]. - The profit margin of approximately 15.3% for the first half of 2022, up from 14.2% in the first half of 2021[108]. Cash Flow and Assets - The net cash flow from operating activities decreased by 38.22%, amounting to CNY 46,764,048.48, compared to CNY 75,700,533.88 in the same period last year[18]. - Cash and cash equivalents at the end of the period amounted to ¥97,042,092.69, representing 7.90% of total assets, a decrease of 3.92% compared to the previous year[44]. - The total assets at the end of the reporting period were CNY 1,228,628,540.21, a slight increase of 0.64% from CNY 1,220,777,136.74 at the end of the previous year[18]. - The total current assets are ¥801,406,576.49, slightly down from ¥801,620,556.74 at the beginning of the period[99]. - The company's cash and cash equivalents at the end of the reporting period amount to ¥97,042,092.69, a decrease from ¥101,002,177.68 at the beginning of the period[99]. Investments and R&D - R&D expenses increased by 13.46% to 48.64 million RMB, indicating a commitment to innovation[42]. - The company holds 78 national patents, including 30 invention patents and 48 utility model patents, showcasing its strong R&D capabilities[36]. - The company plans to expand its market presence and invest further in new technologies and product development in the upcoming quarters[110]. Market and Industry Insights - The main business includes the manufacturing and sales of laser holographic products and platinum embossed optical products, focusing on high-value packaging for tobacco, liquor, and consumer goods[24]. - The packaging industry is influenced by the stability of the tobacco and liquor sectors, which are characterized by weak cyclicality due to the inelastic nature of these products[26]. - The company is positioned to benefit from the increasing demand for high-end liquor packaging as consumer preferences shift towards cultural consumption[32]. - The high-end daily consumer goods market is expanding due to rising income levels and changing consumer preferences, leading to increased demand for quality packaging[34]. Risk Management and Compliance - The company emphasizes the potential risks associated with forward-looking statements in the report, advising investors to be cautious[6]. - The company faces risks related to industry policies, particularly in the tobacco sector, which may impact sales and pricing of cigarette packaging[54]. - The company is actively responding to COVID-19 risks by implementing strict control measures to minimize the impact on procurement, production, and sales[57]. - The company has committed to maintaining compliance with environmental standards in its production processes, as evidenced by monitoring reports[64]. Shareholder and Governance Matters - The company plans to distribute a cash dividend of CNY 2.50 per 10 shares, totaling CNY 44,629,200.00 based on the total share capital as of June 30, 2022[5]. - The company has committed to not transferring or entrusting the management of shares held before the IPO for 36 months, with a maximum annual reduction of 25% after the lock-up period[77]. - The company has established a clear plan to manage potential conflicts of interest with its controlled entities[79]. - There were no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal environment for the company[85]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit and has implemented measures to manage emissions from its production processes[64]. - The company promotes environmental awareness among employees through training and education on pollution prevention and ecological protection[73]. - The company has established an emergency response plan for environmental incidents, enhancing its ability to manage and mitigate potential environmental risks[70]. Financial Reporting and Accounting Practices - The financial statements are prepared based on the going concern assumption, with no significant doubts regarding the company's ability to continue operations[142]. - The company adheres to the Chinese Accounting Standards and ensures that financial reports reflect its financial status accurately[144]. - The company recognizes deferred tax assets related to temporary differences only if conditions are met, with adjustments impacting goodwill and current profit and loss[150].

Financial Performance - The company's operating revenue for Q1 2022 was ¥250,589,869.09, representing a year-on-year increase of 34.26%[6] - The net profit attributable to shareholders was ¥33,997,964.70, reflecting a growth of 20.04% compared to the same period last year[6] - The net profit after deducting non-recurring gains and losses was ¥26,511,729.79, which is an increase of 12.90% year-on-year[6] - Basic earnings per share were reported at ¥0.19, up by 18.75% from the previous year[6] - Total revenue for Q1 2022 reached ¥250,589,869.09, an increase of 34.3% compared to ¥186,651,157.64 in Q1 2021[22] - Net profit for Q1 2022 was ¥34,004,409.28, compared to ¥28,020,711.48 in Q1 2021, representing a growth of 21.4%[23] - The net profit attributable to the parent company for Q1 2022 was ¥33,997,964.70, an increase from ¥28,321,342.62 in Q1 2021, representing a growth of approximately 20.5%[24] - The total comprehensive income attributable to the parent company for Q1 2022 was ¥33,932,771.08, compared to ¥28,355,454.34 in Q1 2021, indicating an increase of about 19.6%[24] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥1,249,527,211.65, a 2.36% increase from the end of the previous year[8] - Total assets as of March 31, 2022, were ¥1,249,527,211.65, compared to ¥1,220,777,136.74 at the end of 2021, showing a growth of 2.3%[20] - Total liabilities decreased to ¥245,281,053.84 from ¥250,545,881.27, a reduction of 2.1%[20] - The equity attributable to shareholders increased by 3.50% to ¥1,002,354,459.51[8] - The company's equity attributable to shareholders rose to ¥1,002,354,459.51 from ¥968,421,688.43, an increase of 3.5%[20] Cash Flow - The net cash flow from operating activities decreased by 12.80% to ¥37,705,634.70[6] - Cash inflows from operating activities for Q1 2022 totaled ¥177,810,686.46, compared to ¥147,107,471.13 in Q1 2021, marking an increase of approximately 20.9%[28] - The net cash flow from operating activities for Q1 2022 was ¥37,705,634.70, down from ¥43,241,985.76 in Q1 2021, a decrease of about 12.0%[28] - Cash and cash equivalents increased to ¥143,243,598.47 from ¥101,002,177.68, marking a growth of 42.0%[19] - Cash and cash equivalents at the end of Q1 2022 amounted to ¥119,153,503.22, compared to ¥67,592,344.66 at the end of Q1 2021, showing a significant increase of approximately 76.5%[31] - The net cash flow from investing activities for Q1 2022 was -¥5,491,914.45, an improvement from -¥44,463,577.46 in Q1 2021, indicating a reduction in cash outflow by about 87.7%[31] - The net cash flow from financing activities for Q1 2022 was ¥11,920,179.12, compared to -¥10,380,000.00 in Q1 2021, reflecting a positive turnaround[31] Costs and Expenses - Total operating costs for Q1 2022 were ¥222,495,750.07, up from ¥162,050,390.85 in Q1 2021, reflecting a 37.3% increase[23] - Research and development expenses in Q1 2022 amounted to ¥26,200,476.48, an increase from ¥21,391,451.89 in Q1 2021, indicating a 22.3% rise[23] - The company reported a gross profit of ¥28,094,118.02 for Q1 2022, compared to ¥24,218,467.44 in Q1 2021, reflecting a growth of 16.0%[23] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,572[12] Government Support - The company received government subsidies amounting to ¥6,614,395.81, which contributed positively to the financial results[10] Other Comprehensive Income - The company reported a decrease in other comprehensive income attributable to the parent company, with a net amount of -¥65,193.62 in Q1 2022 compared to ¥34,111.72 in Q1 2021[24]

Financial Performance - The company achieved operating revenue of CNY 876,705,373.83 in 2021, representing a year-on-year growth of 24.49%[31]. - The net profit attributable to shareholders of the listed company was CNY 111,191,801.84, an increase of 3.27% compared to the previous year[31]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 99,109,872.55, up by 5.08% year-on-year[31]. - Total assets at the end of 2021 reached CNY 1,220,777,136.74, reflecting an 11.04% increase from the previous year[31]. - The equity attributable to shareholders of the listed company was CNY 968,421,688.43, which is a 7.36% increase compared to the end of 2020[31]. - The basic earnings per share for 2021 was CNY 0.62, a rise of 3.33% from CNY 0.60 in 2020[21]. - The diluted earnings per share also stood at CNY 0.62, consistent with the basic earnings per share[21]. - The weighted average return on equity was 11.89%, a decrease of 0.52 percentage points from the previous year[21]. - The company maintained a positive cash flow from operating activities, amounting to CNY 126,788,767.32, which is a 21.44% increase year-on-year[31]. - The company reported a total revenue of RMB 1.32 billion for the fiscal year 2021, reflecting a year-on-year increase of 15%[160]. - The net profit attributable to shareholders was RMB 250 million, representing a growth of 20% compared to the previous year[160]. Dividend Distribution - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 44,629,200.00 CNY (including tax) based on a total share capital of 178,516,800 shares as of December 31, 2021[5]. Audit and Compliance - The company reported a standard unqualified audit opinion from Zhonghui Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[9]. - The internal control audit report received a standard unqualified opinion, indicating compliance with regulatory requirements[137]. - The audit report confirms that the financial statements fairly reflect the company's financial position as of December 31, 2021[194]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and increased market competition[8]. - The company faced challenges such as rising raw material prices and power restrictions but still exceeded its production and operational goals for 2021[31]. - The company is addressing the risk of raw material price fluctuations by enhancing research and implementing centralized procurement strategies[101]. - The company faces risks from potential stricter tobacco control policies that could impact the cigarette packaging industry, prompting a focus on new technologies and materials[100]. Research and Development - The company invested 87.64 million yuan in R&D, focusing on functional anti-counterfeiting materials and special new materials, achieving substantial progress in optical anti-counterfeiting technology[34]. - Research and development expenses amounted to CNY 87.64 million, reflecting a growth of 23.31% compared to the previous year[54]. - The company plans to continue enhancing its R&D capabilities and expanding its market presence in the anti-counterfeiting sector[50]. - The company is expanding its research and development efforts in laser holographic and platinum relief packaging materials to capture a larger market share[87]. Market Position and Strategy - The company specializes in laser holographic and platinum embossed optical products, with a focus on high-value applications in packaging for tobacco, alcohol, cosmetics, and pharmaceuticals[45]. - The company has established long-term relationships with major printing companies and holds a significant market share in the tobacco packaging sector[49]. - The company aims to expand its market share in social packaging, particularly in high-demand sectors such as alcohol, cosmetics, and daily consumer goods[94]. - The company has a strategic focus on the cigarette packaging market, leveraging its technical and design advantages to meet customer needs[94]. - The company plans to diversify its business by expanding into social packaging sectors such as liquor, cultural products, consumer electronics, and daily chemicals to mitigate risks from high customer concentration[101]. Environmental Responsibility - The company has implemented environmental monitoring and control measures, ensuring that emissions of particulate matter and sulfur dioxide are below regulatory limits[141]. - Waste gas treatment facilities are operating effectively, with emissions meeting the standards set by local regulations[141]. - The company implemented measures to reduce carbon emissions by adopting emission-free water-based coatings and partially replacing solvent-based coatings with UV coatings[151]. - The company has conducted environmental impact assessments for new projects, ensuring compliance with environmental regulations[146]. Corporate Governance - The company maintained independent operations and governance, ensuring no interference from the controlling shareholder, with a strict separation in personnel, assets, finance, and business[106]. - The board of directors and supervisory board operated in compliance with legal regulations, with independent directors holding a majority in key committees[107]. - The company has established mechanisms to prevent the controlling shareholder from misappropriating company assets[106]. - The company is committed to maintaining compliance with corporate governance standards set by regulatory authorities[107]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 12,399, a decrease from 12,572 at the end of the previous month[183]. - The largest shareholder, Zhejiang Xing Sheng Investment Management Co., Ltd., holds 56,456,585 shares, representing 31.63% of the total shares[185]. - The second-largest shareholder, Sun Jiancheng, holds 22,358,974 shares, accounting for 12.52% of the total shares[185]. - The company has established a lock-up period for its shares, with automatic extensions if share prices fall below the issue price during specified periods[155]. Employee and Talent Development - The company emphasizes the importance of talent development and aims to build a strong talent pipeline to support its growth[96]. - The company plans to invest no less than 10 million yuan annually in human resources starting from 2022, aiming to resolve talent gaps within three years[97]. - The total number of employees in the parent company and major subsidiaries is 607, with 389 in production, 30 in sales, 63 in technical roles, and 22 in finance[129]. Strategic Partnerships and Acquisitions - The company is actively pursuing strategic partnerships and potential acquisitions to drive future growth and innovation[160]. - The company has made significant investments in acquisitions, including CNY 72.14 million for a 54.46% stake in Ruimin Packaging[77]. - The company has absorbed and merged with subsidiaries Ruimin Packaging and Oke Chuangying, which were dissolved in November 2021[82]. Financial Management - The company has engaged in various wealth management products, with a total investment of RMB 27,500,000 in bank wealth management products[172]. - The company has a total of RMB 7,000,000 in structured bank deposits, with expected annual returns ranging from 1.49% to 4.31%[174]. - The company has successfully recovered all expected returns from its wealth management investments during the reporting period[174].

2021 年第三季度报告 证券代码：603607 证券简称：京华激光 浙江京华激光科技股份有限公司 2021 年第三季度报告 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： 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、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比 上年同期增 | 年初至报告期末 | 年初至报告期 末比上年同期 | | --- | --- | --- | --- | --- | | | | 减变动幅度 | | 增减变动幅度 | | | | (%) | | (%) | | 营业收入 | 172,689,654.35 | 10.01 | 594,595,205.06 | 28 ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 421,905,550.71, representing a 38.10% increase compared to CNY 305,507,655.37 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 was CNY 60,566,271.36, up 32.07% from CNY 45,859,262.12 in the previous year[17]. - The net cash flow from operating activities increased by 80.80% to CNY 75,700,533.88, compared to CNY 41,869,396.75 in the same period last year[17]. - The basic earnings per share for the first half of 2021 was CNY 0.34, a 30.77% increase from CNY 0.26 in the previous year[18]. - The company achieved a revenue of 421.91 million RMB in the first half of 2021, representing a year-on-year growth of 38.1%[34]. - The net profit attributable to shareholders reached 60.57 million RMB, an increase of 32.07% compared to the previous year[34]. - The sales revenue from the cigarette packaging business was 284.19 million RMB, showing a year-on-year increase of 19.90%[34]. - The company reported a total revenue of RMB 1.32 billion for the first half of 2021, representing a year-on-year increase of 15%[82]. - The net profit attributable to shareholders for the same period was RMB 250 million, up 20% compared to the previous year[82]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,135,398,589.33, reflecting a 3.27% increase from CNY 1,099,422,349.20 at the end of the previous year[17]. - The net assets attributable to shareholders at the end of the reporting period were CNY 917,912,158.07, which is a 1.76% increase from CNY 902,046,677.01 at the end of the previous year[17]. - The company's total assets at the end of the reporting period amounted to ¥946,754,170.05, slightly down from ¥956,193,391.53 at the end of 2020[108]. - Total liabilities increased to ¥176,945,975.80 from ¥175,211,538.09, indicating a rise of 1.0%[108]. - The company's total equity attributable to shareholders rose to RMB 917,912,158.07 from RMB 902,046,677.01, reflecting an increase of about 1.2%[104]. - The total owner's equity at the end of the reporting period was 780,981,853.44 RMB, with a capital reserve of 379,206,416.77 RMB and undistributed profits of 189,265,746.38 RMB[132]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and increased market competition, which may impact future performance[6]. - The company faces risks from potential changes in national industry policies that could negatively impact the tobacco market and its operations as a supplier of holographic anti-counterfeiting packaging materials[54]. - High customer concentration poses a risk, as the company has focused on serving a few major clients, which could adversely affect business if demand from these clients declines[54]. - Fluctuations in the prices of key raw materials, such as paper and coatings, could impact the company's profit margins and overall profitability[55]. - Increased market competition due to lower entry barriers in the tobacco industry may pose risks to the company's market position[55]. - The ongoing COVID-19 pandemic continues to present uncertainties for the company's normal operations due to global impacts[56]. Research and Development - R&D expenses rose by 48.09% to ¥42,870,684.38, attributed to increased investment in research and development projects[39]. - The company aims to enhance its technological capabilities and expand its market presence in the optical anti-counterfeiting sector[23]. - The company specializes in laser holographic and platinum embossed optical anti-counterfeiting products, holding 26 invention patents and 30 utility model patents[23]. - The company holds 26 national invention patents and has received multiple awards for technological advancements in anti-counterfeiting solutions[31]. Environmental Compliance - The company has implemented environmental measures to ensure compliance with pollution standards, with no reported exceedances in emissions[63]. - The company has not received any administrative penalties due to environmental issues, strictly adhering to environmental protection laws and regulations[71]. - The company has established a noise control system that complies with relevant standards[66]. - The company has completed environmental impact assessments for its projects, ensuring compliance with relevant requirements[67]. Shareholder Commitments - The controlling shareholder, Xing Sheng Investment, committed not to transfer or entrust the management of shares held before the company's listing for 36 months, with a maximum reduction of 25% of shares held at the end of the previous year after the lock-up period[77]. - The actual controller, Sun Jian, made a similar commitment regarding his shares, with the same conditions for reduction and lock-up period as the controlling shareholder[78]. - The company plans to maintain a strict adherence to the commitments made by its shareholders and management regarding share transfers and management[78]. - The company is committed to transparency and compliance with regulatory requirements regarding shareholding and management practices[78]. Market Outlook - The company anticipates increased demand for high-end laser holographic and platinum embossed packaging materials due to rising consumer expectations for aesthetics and anti-counterfeiting features[26]. - The packaging industry in China is expected to grow significantly, with a focus on high-tech, environmentally friendly, and decorative packaging materials[24]. - The future of the packaging industry will emphasize the development of surface functionalities such as anti-counterfeiting, aesthetics, and recyclability[25]. - The company is positioned to benefit from the stable demand in the cigarette packaging market, driven by trends towards mid-to-high-end products[28]. Governance and Compliance - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal environment[89]. - The company has no significant violations or penalties reported for the period, reflecting good governance practices[89]. - The company confirms that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[144]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements accurately reflect its financial position and operating results[146].

Group 1: Meeting Details - Meeting Date: May 13, 2021, from 15:00 to 17:00 [2][3] - Meeting Location: Online platform (http://rs.p5w.net) [2][3] - Meeting Format: Online communication [2][3] Group 2: Purpose and Participation - Purpose: To enhance communication with investors, especially small and medium investors, regarding governance, development strategy, operational status, and sustainability [3] - Participants: Company Chairman and General Manager Sun Jiancheng, Board Secretary Shao Bo, Chief Financial Officer Feng Yiping, and relevant staff [4] Group 3: Investor Engagement - Investors can submit questions by May 12, 2021, at 12:00 [5] - The company will address common investor concerns during the event [5] Group 4: Contact Information - Contact Department: Board Office [5] - Contact Phone: 0575-88122757 [5] - Email: Web@sx-jhjg.com [5]

Financial Performance - Operating income rose by 35.80% to CNY 186,651,157.64 year-on-year[6] - Net profit attributable to shareholders increased by 14.22% to CNY 23,481,483.04 compared to the same period last year[6] - Basic earnings per share improved by 14.29% to CNY 0.16[6] - Total revenue for Q1 2021 reached ¥186,651,157.64, a 35.8% increase from ¥137,445,418.95 in Q1 2020[30] - Net profit for Q1 2021 was ¥30,785,207.50, compared to ¥27,743,012.90 in Q1 2020, showing a growth of 7.3%[30] - The company's revenue for Q1 2021 was CNY 104,712,601.34, representing a 28.2% increase from CNY 81,696,113.73 in Q1 2020[34] - Net profit for Q1 2021 reached CNY 15,908,740.33, up 25.6% from CNY 12,731,037.83 in Q1 2020[34] - The gross profit margin improved to 29.5% in Q1 2021 compared to 25.8% in Q1 2020[34] Asset and Liability Management - Total assets increased by 4.12% to CNY 1,144,753,111.28 compared to the end of the previous year[6] - Total assets increased to CNY 1,144,753,111.28 from CNY 1,099,422,349.20, indicating overall growth in the company's asset base[20] - Total liabilities increased to ¥200,290,110.25 in Q1 2021 from ¥175,211,538.09 in Q1 2020, reflecting a rise of 14.4%[28] - Shareholders' equity reached ¥795,630,860.24 in Q1 2021, up from ¥780,981,853.44 in Q1 2020, indicating a growth of 1.8%[28] Cash Flow Analysis - Cash flow from operating activities surged by 82.27% to CNY 43,241,985.76 year-on-year[6] - The net cash flow from operating activities for Q1 2021 was ¥46,271,960.06, a significant increase from ¥7,276,736.20 in Q1 2020, representing a growth of approximately 535%[41] - Total cash inflow from operating activities was ¥94,035,321.04, compared to ¥84,996,439.96 in Q1 2020, representing an increase of approximately 10.5%[41] - The total cash outflow from operating activities was ¥47,763,360.98, a decrease from ¥77,719,703.76 in Q1 2020, showing improved cash management[41] Research and Development - Research and development expenses rose by 77.45% to CNY 21,391,451.89 from CNY 12,054,666.94, reflecting increased investment in R&D projects[15] - R&D expenses increased to ¥21,391,451.89 in Q1 2021, up 77.5% from ¥12,054,666.94 in Q1 2020, indicating a focus on innovation[30] - Research and development expenses increased to CNY 10,630,216.91, a 92.5% rise from CNY 5,524,731.44 in Q1 2020[34] Shareholder Information - The number of shareholders reached 11,847 by the end of the reporting period[12] - The largest shareholder, Zhejiang Xingsheng Investment Management Co., Ltd., holds 31.63% of the shares[12] Other Financial Metrics - The weighted average return on equity increased by 0.23 percentage points to 3.09%[6] - The company reported non-recurring gains of CNY 4,839,859.58 during the period[9] - Financial expenses showed a significant negative change of -206.64%, with a net expense of CNY -497,273.87 compared to CNY -162,170.48, mainly due to increased interest from working capital[15] - Operating costs for Q1 2021 were ¥162,050,390.85, up 40.8% from ¥115,047,504.59 in Q1 2020[30] - Gross profit for Q1 2021 was ¥24,600,766.79, compared to ¥22,397,914.36 in Q1 2020, reflecting a gross margin improvement[30]

Financial Performance - The company's operating revenue for 2020 was CNY 704,234,024.67, representing a 5.03% increase compared to CNY 670,537,099.64 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 107,672,242.09, a 2.49% increase from CNY 105,056,877.11 in 2019[21]. - The net profit excluding non-recurring gains and losses decreased by 1.45% to CNY 94,318,490.09 from CNY 95,703,186.17 in 2019[21]. - Cash flow from operating activities was CNY 104,408,110.13, down 31.91% from CNY 153,347,903.74 in 2019[21]. - Total assets at the end of 2020 were CNY 1,099,422,349.20, a 5.60% increase from CNY 1,041,086,191.78 at the end of 2019[21]. - The net assets attributable to shareholders increased by 8.27% to CNY 902,046,677.01 from CNY 833,152,431.86 in 2019[21]. - Basic earnings per share for 2020 was CNY 0.60, a 1.70% increase compared to CNY 0.59 in 2019[23]. - The weighted average return on equity decreased by 0.73 percentage points to 12.41% in 2020 from 13.14% in 2019[23]. - The net profit attributable to shareholders for Q4 2020 was CNY 38,230,723.09, with a total annual net profit of CNY 107,672,251.09[26]. - The company achieved a revenue of 704.23 million yuan in 2020, representing a year-on-year growth of 5.03%[51]. - Net profit attributable to shareholders of the parent company was 107.67 million yuan, up 2.49% year-on-year[55]. Cash Flow and Investments - Net cash flow from operating activities decreased by 31.91% year-on-year, primarily due to the use of notes receivable for payment and an increase in accounts payable[23]. - The investment activities generated a net cash flow of -68.08 million yuan, a significant improvement from the previous year's -180.10 million yuan[60]. - As of December 31, 2020, the company had a total of RMB 511 million in structured deposits, with a remaining balance of RMB 145 million[132]. - The company utilized its own funds to purchase bank structured deposits totaling RMB 511 million, all of which have matured and been fully recovered[132]. - The company reported a total of RMB 20 million in structured deposits from raised funds, which has also been fully recovered[132]. Operational Risks and Challenges - The company faces various operational risks, including policy changes, high customer concentration, and raw material price fluctuations[7]. - The company is at risk of losing tax incentives if it fails to requalify as a national high-tech enterprise, which could result in a 25% corporate income tax rate[109]. - The company faces risks from high customer concentration, as it has focused on a few major clients, which could impact business opportunities if demand decreases[107]. Research and Development - The company has developed 26 invention patents and 30 utility model patents, focusing on laser holographic anti-counterfeiting packaging materials[35]. - Research and development expenses rose by 10.87% to 71.08 million yuan, indicating a focus on innovation[59]. - The company plans to enhance its research and development capabilities by leveraging its design centers in Shenzhen and Shanghai to develop forward-looking and industry-leading technologies and products[104]. - The company is focusing on talent development by establishing a dual-channel promotion mechanism to nurture a talent pool that aligns with both corporate needs and individual growth[105]. Market Position and Strategy - The company operates a complete procurement, research and development, production, and sales system, focusing on customized production based on customer requirements[36]. - The company has established long-term partnerships with major tobacco brands, maintaining a leading market share in the packaging sector[47]. - The company aims to expand its market presence in sectors such as liquor packaging, cosmetics, daily necessities, cultural products, and electronics[101]. - The company emphasizes technological innovation and market expansion as key strategies for future growth[44]. Corporate Governance and Compliance - The company has maintained an independent governance structure, ensuring no interference from controlling shareholders in daily operations[191]. - The board of directors and supervisory board operate independently, adhering to legal regulations and ensuring compliance in their duties[192]. - The company has not faced any penalties from securities regulatory agencies in the past three years[184]. - The company follows a strict information disclosure policy to ensure timely and accurate communication with shareholders[192]. Shareholder Information - The company plans to distribute cash dividends of 2.5 yuan per 10 shares, totaling 44,629,200 yuan, based on the total share capital of 178,516,800 shares as of December 31, 2020[113]. - The company distributed a cash dividend of 2.5 RMB per 10 shares in 2020, totaling 44,629,200 RMB, which represents 41.45% of the net profit attributable to ordinary shareholders[114]. - The controlling shareholder has a plan to limit share reduction to 25% of the total shares held at the end of the previous year during the two years following the lock-up period[115]. - The company has established a commitment to avoid engaging in competitive businesses with its controlled entities[117]. Environmental and Safety Standards - The company strictly adhered to environmental protection laws and regulations, with no environmental incidents or pollution accidents reported during the reporting period[149]. - The company conducted regular environmental self-monitoring, with all pollutant emissions meeting national standards[147]. - The company has established an emergency response plan for environmental incidents to enhance its response capabilities and minimize potential damages[146]. Employee and Management Information - The company employed a total of 567 staff, with 256 in the parent company and 311 in major subsidiaries[185]. - The remuneration policy for senior management is based on a combination of basic salary and performance-based pay, with annual performance evaluations determining the latter[186]. - The company has established a training system tailored to different job categories, focusing on skill development and safety training[187].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on the Authenticity of the Report](index=3&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%AD%A3%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E3%80%81%E5%87%86%E7%A1%AE%E3%80%81%E5%AE%8C%E6%95%B4) The Board of Directors, Supervisory Committee, and senior management affirm the authenticity, accuracy, and completeness of this unaudited quarterly report - The Board of Directors, Supervisory Committee, directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the quarterly report's content, and bear individual and joint legal responsibility[5](index=5&type=chunk) - All company directors attended the board meeting to review the quarterly report[5](index=5&type=chunk) - This third-quarter report has **not been audited**[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of September 2020, total assets and net assets attributable to shareholders saw slight growth, while net operating cash flow and non-recurring net profit declined Overview of Key Financial Data for the First Three Quarters of 2020 | Indicator | As of 2020.9.30 | As of 2019.12.31 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,041,678,591.45 | 1,041,086,191.78 | 0.06 | | Net Assets Attributable to Shareholders | 864,062,454.68 | 833,152,431.86 | 3.71 | | Indicator | YTD (Jan-Sep 2020) | Prior YTD (Jan-Sep 2019) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | -36.50 | | Operating Revenue | 462,480,183.91 | 456,962,590.10 | 1.21 | | Net Profit Attributable to Shareholders | 69,441,519.00 | 68,714,509.82 | 1.06 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 58,320,204.52 | 61,866,183.04 | -5.73 | | Weighted Average Return on Equity (%) | 8.08 | 8.58 | Decreased by 0.50 percentage points | | Basic Earnings Per Share (Yuan/Share) | 0.39 | 0.38 | 2.63 | | Diluted Earnings Per Share (Yuan/Share) | 0.39 | 0.38 | 2.63 | Non-recurring Profit and Loss Items and Amounts for the First Three Quarters of 2020 | Item | Current Period (Jul-Sep) | Year-to-Date (Jan-Sep) | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -114,537.81 | -157,246.43 | | Government Grants Recognized in Current Profit/Loss | 3,680,704.75 | 7,171,383.24 | | Fair Value Change Gain/Loss & Investment Income from Financial Assets | 3,005,693.73 | 6,525,850.73 | | Other Non-operating Income and Expenses | -389,764.15 | -395,210.82 | | Income Tax Impact | -934,696.54 | -2,023,462.24 | | **Total** | **5,247,399.98** | **11,121,314.48** | [Shareholder Information](index=5&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting date, the company had 14,270 shareholders, with a high concentration of ownership held by the controlling shareholder and the chairman - The total number of shareholders is **14,270**[9](index=9&type=chunk) Top Ten Shareholders | Shareholder Name | Shares Held at Period End | Ownership (%) | Number of Restricted Shares | Pledged or Frozen Status (Shares) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Xingsheng Investment Management Co, Ltd | 56,456,585 | 31.63 | 56,456,585 | None (0) | | Sun Jiancheng | 22,358,974 | 12.52 | 22,358,974 | None (0) | | Qi Qifan | 4,773,384 | 2.67 | 4,773,384 | None (0) | | Feng Yiping | 4,161,511 | 2.33 | 4,161,511 | None (0) | | Yuan Jianfeng | 3,259,872 | 1.83 | 3,259,872 | None (0) | | Feng Yihong | 3,083,942 | 1.73 | 3,083,942 | None (0) | | Wang Fuqing | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Chen Jintong | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Jiang Jiangen | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Xiong Jianhua | 2,600,136 | 1.46 | 2,600,136 | Pledged (855,540) | - Xingsheng Investment is the company's controlling shareholder, with Sun Jiancheng holding a **67.81%** stake, Yuan Jianfeng holding **11.62%**, and Feng Yiping holding **10.30%**[10](index=10&type=chunk) [Significant Matters](index=6&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Changes in Financial Statement Items and Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) The company experienced significant fluctuations in various financial statement items, including decreases in prepayments and construction in progress, and a decline in operating cash flow Changes in Major Balance Sheet Items and Reasons | Item | Current Period End (2020.9.30) | Prior Year End (2019.12.31) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 514,003.59 | 847,984.42 | -39.39% | Expensing of prepayments from the beginning of the period | | Other Current Assets | 457,034.29 | 1,892,689.18 | -75.85% | Decrease in input tax credits to be deducted this period | | Construction in Progress | 19,290,301.92 | 36,991,282.51 | -47.85% | Transfer of plant construction in progress to fixed assets | | Other Payables | 13,387,633.60 | 26,612,787.54 | -49.69% | Payment of a portion of the outstanding equity acquisition款 from 2019 | | Share Capital | 178,516,800.00 | 127,512,000.00 | 40.00% | Capitalization of capital reserves to share capital | | Other Comprehensive Income | -184,631.43 | 93,264.75 | -297.96% | Difference in related party transaction amounts due to exchange rate fluctuations | Changes in Major Income Statement Items and Reasons | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | -998,123.02 | -1,642,314.08 | -39.22% | Decrease in interest income from deposits | | Other Income | 7,171,383.24 | 2,087,944.96 | 243.47% | Receipt of fiscal subsidies and economic rewards for the 2018 innovation-driven development strategy | | Gain on Asset Disposal | -157,246.43 | -361,528.71 | -56.51% | Fewer disposals of fixed assets in the current period | | Non-operating Income | 94,422.95 | 1,765,295.54 | -94.65% | Decrease in government subsidies unrelated to daily operations | Changes in Major Cash Flow Statement Items and Reasons | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | -36.50% | Decrease in collections due to outstanding accounts receivable from sales | | Net Cash Flow from Investing Activities | -71,990,900.04 | -155,086,251.79 | -53.58% | Decrease in cash paid for the acquisition of subsidiaries and other business units | [Progress of Significant Matters](index=7&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) No significant matters to report during the period - There is no progress on significant matters or analysis of their impact and solutions to disclose[14](index=14&type=chunk) [Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) No overdue unfulfilled commitments during the period - There are no overdue unfulfilled commitments within the reporting period[14](index=14&type=chunk) [Warning on Future Net Profit Forecast](index=7&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) No warning was issued regarding potential losses or significant changes in cumulative net profit - No warning or explanation was provided regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period[14](index=14&type=chunk) [Appendix](index=8&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) [Financial Statements](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited consolidated and parent company financial statements for the third quarter of 2020 [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, the company's consolidated total assets were 1.04 billion yuan, total liabilities were 175 million yuan, and total equity was 866 million yuan Key Data from Consolidated Balance Sheet (2020.9.30 vs 2019.12.31) | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,041,678,591.45 | 1,041,086,191.78 | | Total Current Assets | 613,018,693.15 | 623,661,329.06 | | Total Non-current Assets | 428,659,898.30 | 417,424,862.72 | | Total Liabilities | 175,470,634.07 | 207,704,279.72 | | Total Current Liabilities | 166,461,015.78 | 198,086,849.89 | | Total Non-current Liabilities | 9,009,618.29 | 9,617,429.83 | | Total Equity | 866,207,957.38 | 833,381,912.06 | | Total Equity Attributable to Parent Company | 864,062,454.68 | 833,152,431.86 | [Parent Company Balance Sheet](index=10&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, the parent company's total assets were 857 million yuan, total liabilities were 97 million yuan, and total equity was 761 million yuan Key Data from Parent Company Balance Sheet (2020.9.30 vs 2019.12.31) | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | Total Assets | 857,211,967.51 | 838,854,325.90 | | Total Current Assets | 401,033,737.85 | 391,043,496.19 | | Total Non-current Assets | 456,178,229.66 | 447,810,829.71 | | Total Liabilities | 96,682,281.12 | 155,652,312.91 | | Total Current Liabilities | 89,285,146.63 | 147,591,657.34 | | Total Non-current Liabilities | 7,397,134.49 | 8,060,655.57 | | Total Equity | 760,529,686.39 | 683,202,012.99 | [Consolidated Income Statement](index=12&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2020, consolidated revenue was 462 million yuan, up 1.21% YoY, while net profit attributable to the parent company was 69.44 million yuan, up 1.06% YoY Key Data from Consolidated Income Statement (Q3 & Jan-Sep 2020 vs Prior Year) | Item | 2020 Q3 (Jul-Sep) | 2019 Q3 (Jul-Sep) | 2020 Jan-Sep | 2019 Jan-Sep | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 156,972,528.54 | 160,284,696.82 | 462,480,183.91 | 456,962,590.10 | | Total Operating Costs | 139,101,382.08 | 135,970,534.54 | 399,269,486.02 | 391,344,790.96 | | Operating Profit | 25,234,777.82 | 27,109,958.38 | 78,769,216.24 | 74,282,880.82 | | Total Profit | 24,845,013.67 | 27,420,228.43 | 78,374,005.42 | 75,646,440.65 | | Net Profit | 23,418,160.87 | 24,927,980.66 | 70,577,513.99 | 68,875,430.77 | | Net Profit Attributable to Parent Company Shareholders | 23,582,256.88 | 25,183,060.45 | 69,441,519.00 | 68,714,509.82 | | Basic Earnings Per Share (Yuan/Share) | - | - | 0.39 | 0.38 | | Diluted Earnings Per Share (Yuan/Share) | - | - | 0.39 | 0.38 | [Parent Company Income Statement](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2020, the parent company's revenue was 297 million yuan, down 3.73% YoY, while net profit grew 222.08% to 116 million yuan, driven by investment income Key Data from Parent Company Income Statement (Q3 & Jan-Sep 2020 vs Prior Year) | Item | 2020 Q3 (Jul-Sep) | 2019 Q3 (Jul-Sep) | 2020 Jan-Sep | 2019 Jan-Sep | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 109,377,880.66 | 102,977,668.80 | 297,234,614.18 | 308,768,014.54 | | Operating Profit | 91,215,927.86 | 12,702,300.16 | 119,271,459.83 | 38,438,279.68 | | Total Profit | 91,043,548.93 | 12,822,300.21 | 119,075,082.09 | 39,599,983.66 | | Net Profit | 90,394,859.11 | 11,697,840.87 | 115,581,273.40 | 35,903,491.12 | | Investment Income | 80,868,306.84 | 2,712,367.13 | 83,597,550.69 | 5,151,873.98 | [Consolidated Cash Flow Statement](index=18&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first three quarters of 2020, consolidated net operating cash flow was 71.11 million yuan, a 36.50% YoY decrease Key Data from Consolidated Cash Flow Statement (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Jan-Sep 2020 (Yuan) | Jan-Sep 2019 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | | Net Cash Flow from Investing Activities | -71,990,900.04 | -155,086,251.79 | | Net Cash Flow from Financing Activities | -37,828,665.00 | -41,583,624.42 | | Net Increase in Cash and Cash Equivalents | -39,165,556.44 | -84,712,522.47 | | Cash and Cash Equivalents at End of Period | 44,690,380.83 | 65,402,824.06 | [Parent Company Cash Flow Statement](index=19&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first three quarters of 2020, the parent company's net operating cash flow was 69.47 million yuan, a 14.28% YoY decrease Key Data from Parent Company Cash Flow Statement (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Jan-Sep 2020 (Yuan) | Jan-Sep 2019 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 69,473,402.06 | 81,045,187.97 | | Net Cash Flow from Investing Activities | -57,560,040.02 | -128,193,795.88 | | Net Cash Flow from Financing Activities | -37,878,665.00 | -41,583,624.42 | | Net Increase in Cash and Cash Equivalents | -25,965,302.96 | -88,732,232.33 | | Cash and Cash Equivalents at End of Period | 25,782,039.86 | 52,168,936.39 | [Implementation of New Accounting Standards](index=21&type=section&id=4.2%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company did not adopt new revenue or lease standards in 2020, thus no adjustments were made - The adjustment of beginning-of-year financial statements for the first-time adoption of new revenue and lease standards from 2020 is not applicable[40](index=40&type=chunk) [Retrospective Adjustment for New Accounting Standards](index=21&type=section&id=4.3%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E5%89%8D%E6%9C%9F%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E7%9A%84%E8%AF%B4%E6%98%8E) No retrospective adjustments were necessary as new accounting standards were not adopted in 2020 - The retrospective adjustment of prior period comparative data for the first-time adoption of new revenue and lease standards from 2020 is not applicable[40](index=40&type=chunk) [Audit Report](index=21&type=section&id=4.4%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report is unaudited and therefore does not include an audit report - This quarterly report is **unaudited** and the audit report is not applicable[5](index=5&type=chunk)[40](index=40&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was ¥305,507,655.37, representing a 2.98% increase compared to ¥296,677,893.28 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was ¥45,859,262.12, up 5.35% from ¥43,531,449.37 in the previous year[20]. - Basic earnings per share for the first half of 2020 were ¥0.26, an increase of 8.33% compared to ¥0.24 in the same period last year[21]. - The company achieved operating revenue of CNY 305.51 million, a year-on-year increase of 2.98%[40]. - Net profit reached CNY 45.86 million, reflecting a growth of 5.35% compared to the previous year[35]. - The company reported a total profit for the first half of 2020 of ¥28.03 million, an increase of 4.7% from ¥26.78 million in the first half of 2019[117]. Cash Flow and Assets - The net cash flow from operating activities decreased by 33.31% to ¥41,869,396.75, down from ¥62,779,060.65 in the same period last year[20]. - Cash flow from operating activities was ¥41.87 million, down 33.3% from ¥62.78 million in the first half of 2019[120]. - The total assets at the end of the reporting period were ¥999,406,664.62, a decrease of 4.00% from ¥1,041,086,191.78 at the end of the previous year[20]. - Cash and cash equivalents at the end of the reporting period were CNY 13,192,350.00, restricted due to acceptance bill guarantees[43]. - The total cash and cash equivalents at the end of the period stood at ¥50,716,209.65, compared to ¥46,793,251.98 at the end of the previous year, indicating a 6.5% increase[124]. Research and Development - Research and development expenses amounted to CNY 28.95 million, an increase of 1.84% from the previous year[40]. - The company is investing 30 million in R&D for new technologies aimed at enhancing product efficiency[62]. - Research and development expenses for the first half of 2020 were CNY 28,949,963.87, compared to CNY 28,426,184.83 in the same period last year, showing an increase of 1.8%[113]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and high customer concentration risks[6]. - The concentration of customers is high, with a focus on a few major clients, which poses a risk if their product demand declines or if the company fails to win bids[54]. - Major raw material prices account for over 80% of the main business costs, and fluctuations in these prices can significantly impact profit margins and overall profitability[54]. Environmental Management - The company reported that all emissions from its waste gas treatment facilities met the required standards, with no exceedances noted in the monitoring results[74]. - 京华科技 has established a monitoring system for hazardous waste storage, ensuring compliance with pollution control standards[76]. - The company has implemented an emergency response plan for environmental incidents, enhancing its ability to manage such events[79]. - 京华科技 conducts regular environmental self-monitoring and has shown that emissions meet national standards[80]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 14,844[91]. - The largest shareholder, Zhejiang Xingsheng Investment, is a domestic non-state-owned legal entity[93]. - The company has a diverse shareholder base, including both natural persons and corporate entities[94]. - The total number of restricted shares at the beginning of the period was 78,797,656, with 31,519,062 shares released during the reporting period[90]. Strategic Direction - The company aims to leverage its technological advancements to enhance product performance and meet the evolving market demands[30]. - Future development in the packaging industry will emphasize the research and application of surface functions of packaging materials, such as anti-counterfeiting and environmental sustainability[30]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of 100 million allocated for potential deals[62]. Financial Reporting and Compliance - The company adheres to the accounting standards set by the Ministry of Finance and has confirmed that its financial statements accurately reflect its financial position and operating results[147]. - The financial statements are prepared in RMB, with a focus on transparency and compliance with auditing standards[106]. - The company operates under a continuous business assumption with no significant doubts regarding its ability to continue operations for the next 12 months[145].