Financial Performance - The company achieved a net profit of RMB 123,292,647.65 for the year 2022, with a total distributable profit of RMB 884,523,235.84 after accounting for retained earnings and reserves[3]. - The company's operating revenue for 2022 was ¥819,243,975.78, a decrease of 8.27% compared to ¥893,092,772.18 in 2021[16]. - Net profit attributable to shareholders for 2022 was ¥87,981,054.12, down 38.77% from ¥143,698,491.86 in 2021[16]. - The net cash flow from operating activities was ¥10,047,312.38, a significant decline of 94.43% compared to ¥180,504,622.50 in 2021[16]. - Basic earnings per share for 2022 was ¥0.1880, a decrease of 38.76% from ¥0.3070 in 2021[17]. - The company's total operating revenue for 2022 was CNY 819,242,484.63, a decrease of 8.24% compared to the previous year[42]. - The net profit attributable to shareholders was 87.98 million yuan, down 38.77% year-on-year, primarily due to a decline in pearl material sales and increased costs[38]. - The total comprehensive income for the year was CNY 111,131,626.25, a decrease of 28.6% from CNY 155,626,816.69 in the previous year[178]. Dividend Policy - The company will not distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year 2022, opting to retain profits for operational and investment needs[3]. - The company has decided not to distribute cash dividends for the year 2022, citing significant short-term and long-term borrowings and the need for funds for a new titanium dioxide project[110]. Investments and Growth Strategy - The company is in a critical growth phase, with significant investments required for the new 600,000-ton titanium dioxide project at its subsidiary, Zhengtai New Materials[3]. - The company plans to raise up to 3.85 billion yuan through a targeted stock issuance, primarily for the construction of a new 600,000 tons/year titanium dioxide project[26]. - The company aims to expand its market share and brand influence by increasing production capacity and accelerating the replacement of imported products[26]. - The company plans to establish an annual production capacity of 800,000 tons for high-end titanium dioxide and iron oxide, enhancing its competitive edge in the global market[37]. Research and Development - The company is focusing on high-end pearlescent materials development, leading innovations in new application fields such as PECVD pearlescent materials and nano titanium dioxide[27]. - The company has developed a series of high-end pearl materials and the world's first extraction method for titanium dioxide, filling a gap in the industry[34]. - Research and development expenses totaled CNY 35,923,773.74, accounting for 4.38% of total operating revenue[51]. Environmental and Sustainability Initiatives - The company is actively pursuing green energy initiatives, including a partnership for steam delivery using nuclear energy waste heat, contributing to its low-carbon strategy[28]. - The company invested ¥13,553.77 million in environmental protection during the reporting period[117]. - The company has established pollution prevention facilities, including wastewater treatment and dust removal systems, which are monitored 24/7[121]. - The company has implemented a rooftop distributed photovoltaic project to reduce carbon emissions and improve energy efficiency[128]. Corporate Governance - The board of directors and management have confirmed the authenticity and completeness of the annual report, with no significant omissions or misleading statements[2]. - The company has established a comprehensive corporate governance structure to protect shareholder rights and ensure compliance with regulations[82]. - The company has proposed revisions to its articles of association and various governance rules[87]. - The company has not faced any penalties from securities regulatory authorities in the past three years[95]. Risk Management - The report includes a detailed discussion of potential significant risks that the company may face, urging investors to be cautious[5]. - The company recognizes macroeconomic risks that could impact demand for its products, which are widely used in various industries closely related to daily life[73]. - The company faces significant competition from large international producers of titanium dioxide, and failure to expand high-end product capacity may increase competitive risks[76]. Audit and Compliance - The company has received a standard unqualified audit report from Dahua Certified Public Accountants, ensuring the accuracy of its financial statements[2]. - The audit report emphasized the importance of identifying and assessing risks of material misstatement due to fraud or error[164]. - The company confirmed that there were no major accounting errors that required correction during the reporting period[136]. Shareholder Information - The total number of ordinary shareholders increased from 7,367 to 8,756 during the reporting period[146]. - The largest shareholder, Xie Bingkun, holds 229,083,338 shares, accounting for 48.95% of the total shares[147]. - The total number of shares held by all directors at the end of the year was 271,857,975 shares, unchanged from the beginning of the year[89].

证券代码：603826 证券简称：坤彩科技 公告编号：2023-018 福建坤彩材料科技股份有限公司 关于召开 2022 年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 会议召开时间：2023 年 05 月 12 日(星期五) 下午 13:00-14:30 二、 说明会召开的时间、地点 （一） 会议召开时间：2023 年 05 月 12 日下午 13:00-14:30 （ 二 ） 会 议 召 开 地 点 ： 上 海 证 券 交 易 所 上 证 路 演 中 心 （ 网 址 ： http://roadshow.sseinfo.com/） （三） 会议召开方式：上证路演中心网络视频直播和网络互动 会 议 召 开 地 点 ： 上 海 证 券 交 易 所 上 证 路 演 中 心 （ 网 址 ： http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心视频直播和网络互动 投资者可于 2023 年 05 月 05 日（星期五）至 05 月 11 日（星期四）16:00 ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥247,002,826.77, representing a year-on-year increase of 16.31%[4] - The net profit attributable to shareholders for Q3 2022 was ¥23,314,332.59, a decrease of 44.04% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was ¥21,665,473.87, down 41.44% year-on-year[4] - The basic earnings per share for Q3 2022 was ¥0.0498, reflecting a decline of 44.04% compared to the previous year[5] - Total operating revenue for Q3 2022 was CNY 652.72 million, a decrease of 2.0% compared to CNY 668.03 million in the same period last year[19] - Net profit for Q3 2022 was CNY 84.68 million, down 36.4% from CNY 133.20 million in Q3 2021[20] - The company reported a total profit of CNY 95.00 million for Q3 2022, down 37.9% from CNY 152.96 million in Q3 2021[20] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,466,678,037.51, an increase of 18.89% from the end of the previous year[5] - As of September 30, 2022, the total assets of the company amounted to RMB 3,466,678,037.51, an increase from RMB 2,915,931,250.26 as of December 31, 2021, representing a growth of approximately 19%[14] - The company's current assets totaled RMB 1,064,012,110.23, up from RMB 912,669,839.11 in the previous year, indicating an increase of about 16.6%[14] - The company's total liabilities were RMB 1,661,285,683.08, which is an increase from RMB 1,196,057,432.70, marking a rise of about 39%[17] - The long-term borrowings increased to RMB 857,540,000.00 from RMB 565,950,000.00, representing a growth of approximately 51.5%[17] - The total equity attributable to shareholders reached RMB 1,793,271,398.88, up from RMB 1,711,663,061.57, indicating an increase of about 4.8%[18] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥48,047,095.47, down 63.61% compared to the previous year[5] - The net cash flow from operating activities was 48,047,095.47, a decrease of 63.7% compared to 132,033,854.64 in the previous year[23] - The total cash outflow from operating activities amounted to 606,446,688.72, up 37.4% from 441,447,872.91 in the same period last year[23] - The net cash flow from investing activities was -445,700,931.16, worsening from -360,843,349.85 year-over-year[23] - Cash inflow from financing activities was 647,000,000.00, an increase of 16.4% compared to 555,100,000.00 in the previous year[23] - The net cash flow from financing activities was 352,687,421.45, up 30.9% from 269,284,410.09 year-over-year[23] Expenses - Total operating costs increased to CNY 564.83 million, up 7.0% from CNY 527.88 million year-on-year[19] - Research and development expenses for Q3 2022 were CNY 26.14 million, up 4.9% from CNY 24.93 million in Q3 2021[19] - Sales expenses increased to CNY 26.23 million, a rise of 9.0% compared to CNY 23.94 million in the same period last year[19] - Tax expenses for Q3 2022 were CNY 10.32 million, a decrease of 47.8% from CNY 19.76 million in the same quarter last year[20] - Other comprehensive income after tax for Q3 2022 was CNY 1.95 million, down 64.2% from CNY 5.43 million in Q3 2021[21] - The company incurred tax payments of 40,323,064.53, a decrease of 33.3% from 60,478,962.94 in the previous year[23] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,564, with the largest shareholder holding 48.95% of the shares[10] - The company reported a total of 1,793,271,398.88 in total equity, which includes retained earnings of RMB 806,717,639.06, an increase from RMB 736,131,788.37[18] Operational Challenges - The decline in net profit was primarily due to a decrease in sales of pearlescent products and rising costs of raw materials and energy[8] - The company has not disclosed any new product developments or market expansion strategies in the current report[12]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2022, representing a year-on-year growth of 15%[11]. - The company's operating revenue for the first half of 2022 was approximately 405.72 million, a decrease of 10.96% compared to the same period last year[17]. - The net profit attributable to shareholders for the same period was approximately 57.09 million, reflecting a decline of 34.29% year-over-year[17]. - The basic earnings per share for the first half of 2022 was 0.1220, down 34.30% from 0.1857 in the previous year[18]. - The weighted average return on equity decreased by 2.11 percentage points to 3.28%[18]. - The net profit for the first half of 2022 was ¥60,177,154.87, down 33.43% from ¥90,384,937.59 in the previous year[105]. - The total comprehensive income for the first half of 2022 was ¥61,120,432.32, a decrease of 36.00% from ¥95,732,947.02 in the previous year[106]. Cash Flow and Assets - The financial report indicates a strong cash flow position, with cash reserves of 500 million RMB available for future investments[11]. - The net cash flow from operating activities increased by 9.98% to approximately 78.11 million[17]. - The company's inventory rose by 34.13% to approximately ¥720.49 million, primarily due to increased raw material stock for production[40]. - The company's total assets at the end of the reporting period were approximately 3.49 billion, an increase of 19.73% compared to the end of the previous year[17]. - The cash and cash equivalents at the end of the period were CNY 102,171,615.83, compared to CNY 72,360,829.81 at the end of the previous year, reflecting an increase of 41.2%[112]. Research and Development - The company is investing in R&D, with a budget increase of 25% for new technologies aimed at enhancing production efficiency[11]. - Research and development expenses increased by 3.53% to approximately ¥17.82 million, reflecting a commitment to innovation[37]. - The company has developed the world's first hydrochloric acid extraction method for titanium dioxide, breaking foreign monopolies in the industry[21]. Market Strategy and Expansion - User data showed a 20% increase in active customers, reaching 500,000 by the end of June 2022[11]. - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of 10% to 15%[11]. - Market expansion plans include entering Southeast Asian markets, targeting a 5% market share within the next two years[11]. - The company plans to establish an annual production capacity of 800,000 tons for high-end titanium dioxide and 800,000 tons for high-end iron oxide, enhancing its competitive edge in the global market[32]. Sustainability and Environmental Initiatives - The management highlighted the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[11]. - The company has implemented strict environmental protection measures and invested in pollution control facilities to comply with national standards, ensuring all pollutants are discharged within legal limits[61]. - The company has initiated a distributed photovoltaic project on factory rooftops to effectively utilize solar energy, reducing carbon dioxide emissions and improving energy efficiency[72]. Risks and Challenges - The company faces risks related to macroeconomic fluctuations that could impact demand for its products, including pearl materials and titanium dioxide[50]. - The company is exposed to price volatility risks for titanium dioxide and iron oxide, which are influenced by market conditions and raw material costs[51]. - The company’s production relies on imported natural mica, and any restrictions on exports could adversely affect operations[53]. Corporate Governance and Compliance - The financial statements were approved by the board of directors on August 25, 2022, indicating compliance with accounting standards[133]. - The company has not proposed any profit distribution or capital reserve transfer plans for the reporting period[59]. - There are no significant related party transactions disclosed in the interim announcements[82]. Shareholder Information - Total number of ordinary shareholders as of the end of the reporting period is 10,420[87]. - The largest shareholder, Xie Bingkun, holds 48.95% of the shares, totaling 229,083,338 shares[88]. - The company has a registered capital of 46,800,000 CNY and a total of 46,800,000 shares issued as of June 30, 2022[131].

Financial Performance - The company's operating revenue for Q1 2022 was ¥198,779,538.30, representing a decrease of 7.05% compared to the same period last year[4]. - The net profit attributable to shareholders was ¥26,685,223.38, down 39.37% year-on-year[4]. - Basic earnings per share were ¥0.0570, reflecting a decrease of 39.36% year-on-year[5]. - Net profit for Q1 2022 was ¥28,093,097.18, down 38.5% from ¥45,707,518.76 in Q1 2021[20]. - The total comprehensive income for Q1 2022 was ¥27,991,877.00, down from ¥46,235,446.29 in Q1 2021[21]. Cash Flow - The net cash flow from operating activities was negative at ¥16,864,485.62, a decline of 151.35% compared to the previous year[4]. - In Q1 2022, the company's operating cash inflow totaled ¥185,348,912.14, an increase from ¥160,084,035.48 in Q1 2021, representing a growth of approximately 15.5%[23]. - Cash outflow from operating activities increased to ¥202,213,397.76, up from ¥127,244,367.81 in Q1 2021, indicating a rise of about 58.8%[23]. - Investment activities generated a net cash outflow of -¥161,683,552.20, compared to -¥151,802,739.78 in Q1 2021, reflecting a decline in investment cash flow[24]. - The net cash flow from financing activities decreased to ¥151,062,664.88 from ¥178,853,060.05 in the previous year, a decline of approximately 15.6%[24]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,248,817,263.78, an increase of 11.42% from the end of the previous year[5]. - Total liabilities as of Q1 2022 amounted to ¥1,500,951,569.22, an increase of 25.4% from ¥1,196,057,432.70 in Q1 2021[18]. - The company's total current assets amount to RMB 1,037,851,892.15, an increase from RMB 912,669,839.11 in the previous year[14]. - The company has short-term borrowings of RMB 205,037,230.07, an increase from RMB 155,470,032.17 in the previous year[16]. - The company has a total non-current asset of RMB 2,210,965,371.63, compared to RMB 2,003,261,411.15 in the previous year[16]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 8,067[11]. - The largest shareholder, Xie Bingkun, holds 229,083,338 shares, representing 48.95% of the total shares[11]. Research and Development - Research and development expenses increased by 6.43%, indicating a focus on enhancing R&D investment[9]. - Research and development expenses for Q1 2022 were ¥8,940,544.45, an increase from ¥8,400,616.44 in Q1 2021[19]. Other Financial Metrics - The company's weighted average return on equity was 1.55%, a decrease of 1.23 percentage points compared to the previous year[5]. - The company reported a credit impairment loss of ¥1,181,001.36 in Q1 2022, compared to a gain of ¥203,277.69 in Q1 2021[20]. - The company reported a significant increase in cash payments for goods and services, totaling ¥136,262,548.08, compared to ¥75,241,950.11 in the previous year, marking an increase of approximately 81.3%[23].

Revenue and Profit - Revenue for Q3 2021 was RMB 212,374,343.69, an increase of 6.26% year-over-year, while year-to-date revenue reached RMB 668,026,411.03, up 25.43% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2021 was RMB 41,660,104.54, a decrease of 15.95% year-over-year, with year-to-date net profit at RMB 128,552,527.07, an increase of 10.06%[4] - Basic and diluted earnings per share for Q3 2021 were both RMB 0.0890, reflecting a decrease of 15.96% compared to the same period last year[5] - Total operating revenue for the first three quarters of 2021 reached ¥668,026,411.03, a 25.4% increase from ¥532,592,750.67 in the same period of 2020[16] - Net profit for the third quarter of 2021 was ¥133,201,872.41, compared to ¥118,787,051.74 in the same quarter of 2020, reflecting a growth of 12.0%[18] - The net profit attributable to shareholders of the parent company for the third quarter of 2021 was ¥128,552,527.07, an increase from ¥116,805,811.35 in the previous year[19] Assets and Liabilities - Total assets as of the end of Q3 2021 were RMB 2,757,227,492.89, representing a 21.57% increase from the end of the previous year[5] - The company’s total assets reached ¥2,757,227,492.89 at the end of the third quarter of 2021, up from ¥2,268,038,398.08 in the same period of 2020[15] - Total current assets increased to ¥862,197,747.55 from ¥721,312,027.74 year-over-year[13] - Current liabilities totaled ¥533,928,889.32, compared to ¥451,582,507.05 in the previous year[14] - The total liabilities as of the end of the third quarter of 2021 were ¥1,049,739,254.40, an increase from ¥698,517,205.09 at the end of the same quarter in 2020[15] - Long-term borrowings increased significantly to ¥484,290,000.00 from ¥219,330,000.00 year-over-year[14] Cash Flow - Cash flow from operating activities for the year-to-date period was RMB 132,033,854.64, an increase of 27.69% compared to the same period last year[4] - The company reported a net cash flow from operating activities of ¥132,033,854.64 for the first three quarters of 2021, compared to ¥103,398,900.27 in the same period of 2020, indicating a growth of 27.6%[21] - The net cash flow from investment activities was -360,843,349.85, compared to -287,055,329.72 in the previous year, indicating a significant increase in cash outflow[22] - Cash inflow from financing activities totaled 555,100,000.00, up from 266,705,500.00 year-over-year, reflecting strong financing efforts[22] - The net cash flow from financing activities was 269,284,410.09, compared to 118,413,876.61 in the previous year, showing improved financial management[22] - The cash and cash equivalents at the end of the period increased to 82,982,788.16 from 31,826,260.63, indicating a positive liquidity position[22] Shareholder Information - Total number of common shareholders at the end of the reporting period is 7,837[11] - The largest shareholder, Xie Bingkun, holds 229,083,338 shares, representing 48.95% of total shares[12] - The company’s total equity attributable to shareholders was RMB 1,696,282,178.10, an increase of 8.58% compared to the previous year[5] - The total equity attributable to shareholders of the parent company was ¥1,696,282,178.10, compared to ¥1,562,233,155.97 in the previous year, reflecting a growth of 8.6%[15] Expenses and Investments - Research and development expenses increased by 53.55% in Q3 2021, indicating a focus on innovation and product development[10] - Research and development expenses for the third quarter of 2021 amounted to ¥24,926,730.79, up 53.6% from ¥16,233,684.33 in the same quarter of 2020[18] - The company reported a significant increase in financial expenses by 120.80% due to increased loan interest expenses and foreign exchange losses[10] - The cash outflow for the acquisition of fixed assets, intangible assets, and other long-term assets was 369,314,505.28, up from 290,723,812.82, indicating ongoing investment in growth[22] Inventory and Receivables - The company reported a decrease in accounts receivable from ¥153,025,236.26 to ¥148,451,036.23[13] - Inventory levels rose to ¥511,144,904.87, up from ¥421,555,288.71[13] - The company experienced a 604.66% increase in accounts payable, primarily due to increased procurement payments during the period[8] Other Financial Metrics - Non-recurring gains for Q3 2021 amounted to RMB 4,662,654.91, with a year-to-date total of RMB 6,651,790.34[7] - The impact of exchange rate changes on cash and cash equivalents was -712,418.77, compared to -112,633.66 in the previous year, suggesting currency volatility[22] - The company did not apply the new leasing standards for the current year, indicating a potential area for future compliance and reporting[22]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥455,652,067.34, representing a 36.94% increase compared to ¥332,728,218.27 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was ¥86,892,422.53, up 29.23% from ¥67,237,945.75 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was ¥84,903,287.10, reflecting a 28.69% increase from ¥65,975,224.83 year-on-year[16]. - The basic earnings per share for the reporting period was ¥0.1857, up 29.23% from ¥0.1437 in the same period last year[17]. - The diluted earnings per share also stood at ¥0.1857, reflecting the same percentage increase of 29.23%[17]. - The weighted average return on net assets increased by 0.73 percentage points to 5.39% compared to 4.66% in the previous year[17]. - The company achieved an operating revenue of ¥455,652,067.34, representing a year-on-year growth of 36.94% as of June 30, 2021[33]. - The net profit attributable to shareholders reached ¥86,892,422.53, reflecting a year-on-year increase of 29.23%[33]. - The company reported a significant increase in cash and cash equivalents, totaling ¥81,906,471.31 as of June 30, 2021, compared to ¥57,850,292.05 at the end of 2020, reflecting a growth of approximately 41.5%[97]. - The total comprehensive income for the first half of 2021 was ¥95,732,947.02, compared to ¥73,453,399.63 in the same period of 2020, reflecting a 30% increase[105]. Cash Flow and Investments - The net cash flow from operating activities was ¥71,018,793.64, showing a decrease of 12.01% compared to ¥80,711,250.29 in the same period last year[16]. - The net cash flow from investing activities worsened by 38.23%, resulting in a cash outflow of ¥250,229,184.85 compared to ¥181,025,386.99 in the previous year[38]. - The net cash flow from financing activities surged by 205.25%, reaching ¥209,000,116.07, up from ¥68,467,816.27[37]. - The company reported cash inflows from operating activities of CNY 346,837,357.84, compared to CNY 310,444,822.41 in the first half of 2020, marking an increase of approximately 11.7%[110]. - The company incurred total cash outflows from investing activities of CNY 254,998,212.85, compared to CNY 184,693,870.09 in the previous year, indicating an increase of about 37.9%[110]. - The net cash flow from financing activities was CNY 209,000,116.07, significantly higher than CNY 68,467,816.27 in the same period of 2020, reflecting an increase of approximately 205.5%[111]. Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥2,614,841,082.27, a 15.29% increase from ¥2,268,038,398.08 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company were ¥1,654,568,707.52, which is a 5.91% increase from ¥1,562,233,155.97 at the end of the previous year[16]. - The total liabilities reached ¥950,127,881.09, up from ¥698,517,205.09, indicating a growth of around 36.0%[99]. - Current liabilities rose to ¥494,265,073.08 from ¥451,582,507.05, marking an increase of approximately 9.4%[99]. - The total equity at the end of the current period is 1,480,751,565.41 CNY, reflecting an increase from the previous period[121]. Research and Development - Research and development expenses rose significantly by 72.58%, totaling ¥17,214,908.01 compared to ¥9,975,107.73 in the prior year[37]. - The company has received numerous domestic and international invention patents, showcasing its strong technological reserves and product innovation capabilities[27]. - The company’s R&D center has been recognized as a provincial engineering technology research center, indicating its commitment to innovation[27]. Market Strategy and Competition - The company’s operational model combines "sales-driven production" and "order-based production" to meet market demands effectively[21]. - The company’s market strategy focuses on enhancing customer service through direct sales to major clients while maintaining a distribution model for broader market reach[21]. - The company anticipates that smaller competitors with lower bargaining power and outdated technology will gradually exit the market due to shrinking profit margins[23]. - The company aims to leverage its technological advantages and scale to capture a larger market share as the industry consolidates[23]. Environmental Compliance - The company is classified as a key pollutant discharge unit and has complied with environmental regulations, ensuring that all pollutants are discharged according to national standards[60]. - The company has established wastewater treatment facilities, dust removal facilities, and denitrification and desulfurization facilities, all of which are managed by dedicated personnel and monitored 24/7 to ensure compliance with emission standards[64]. - The total annual emissions of ammonia nitrogen are reported at 11 tons, with a permissible discharge concentration limit of 45 mg/L, and no exceedance of standards noted[63]. - The company has implemented a comprehensive environmental monitoring plan, including online monitoring systems linked to regulatory authorities for real-time data[67]. Corporate Governance and Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 9,004[84]. - The company has not engaged in any major related party transactions during the reporting period[80]. - The company has committed to ensuring that the IPO prospectus is free from false records and misleading statements, taking legal responsibility for its accuracy[75]. - The company has established a framework to avoid any potential business competition with its controlling shareholders[75]. Risks and Challenges - The company faces macroeconomic risks that could impact its performance, particularly due to the cyclical nature of the downstream industries related to its main product, pearlescent materials[47]. - The ongoing COVID-19 pandemic poses risks to the company's operations, prompting it to adapt its marketing strategies and maintain close communication with customers[51]. - The company is transitioning to the mainstream inorganic pigment market with its wholly-owned subsidiary, which may introduce production and management risks[52].

Financial Performance - In 2020, Kuncai Technology achieved operating revenue of RMB 749,891,528.58, representing a 21.54% increase compared to RMB 617,005,963.84 in 2019[16]. - The net profit attributable to shareholders of the listed company for 2020 was RMB 157,032,167.37, a 6.97% increase from RMB 146,803,431.65 in 2019[16]. - The net cash flow from operating activities for 2020 was RMB 161,904,403.30, up 15.16% from RMB 140,586,685.60 in 2019[16]. - As of the end of 2020, the total assets of Kuncai Technology were RMB 2,268,038,398.08, a 25.98% increase from RMB 1,800,249,505.57 at the end of 2019[16]. - The company's net assets attributable to shareholders reached RMB 1,562,233,155.97 at the end of 2020, reflecting an 11.40% increase from RMB 1,402,331,287.63 in 2019[16]. - The basic earnings per share for 2020 was CNY 0.3355, an increase of 6.95% compared to CNY 0.3137 in 2019[18]. - The diluted earnings per share for 2020 was also CNY 0.3355, reflecting the same growth rate of 6.95% from the previous year[18]. - The weighted average return on equity for 2020 was 10.58%, a decrease of 0.31 percentage points from 10.89% in 2019[18]. - The company reported a net profit of RMB 159,905,805.95 for the parent company in 2020, with a beginning retained earnings of RMB 494,201,680.71[4]. Profit Distribution and Retained Earnings - Kuncai Technology plans to retain its undistributed profits for operational and project investment needs, with no cash dividends or stock bonuses proposed for 2020[4]. - The company reported a net profit of CNY 157,032,167.37 in 2020, with no dividends distributed, resulting in a 0% payout ratio[81]. - The net profit available for distribution to shareholders at the end of 2020 was CNY 638,116,906.06, after accounting for a net profit of CNY 159,905,805.95 and a surplus reserve allocation of CNY 15,990,580.60[82]. - The company plans to use retained earnings primarily for daily operations and investment in projects, particularly for a high-end titanium dioxide project with an annual capacity of 200,000 tons[82]. - The company emphasized the importance of maintaining operational stability and risk resilience through the strategic use of retained earnings[82]. Research and Development - The company focuses on the research, production, and sales of pearlescent materials, which are widely used across various industries[25]. - The company emphasizes a market-oriented R&D mechanism to align innovation with market development trends[26]. - The company has established a comprehensive R&D system and has received numerous domestic and international patents, enhancing its technological innovation advantage[32]. - The company’s R&D expenses amounted to 26.80 million yuan, an increase of 32.65% year-on-year, representing 3.57% of operating revenue[48]. - The company is involved in the research and development of lithium battery anode and cathode materials, including lithium iron phosphate and lithium titanate[194]. Sales and Market Strategy - The company employs a sales model that combines distribution and direct sales to enhance service quality and industry influence[27]. - The company has over 200 domestic and international distributors, forming a robust sales network across three continents[34]. - The company has a rich product line, including industrial-grade, automotive-grade, and cosmetic-grade pearlescent materials, positioning it as one of the most diverse suppliers in the industry[36]. - The company aims to enhance its competitive edge by leveraging its global brand and network advantages, focusing on high-end user partnerships[62]. Environmental and Social Responsibility - The company has implemented pollution control facilities, including wastewater treatment and dust removal systems, which are monitored 24/7[110]. - The company has not faced any penalties for environmental violations during the reporting period[115]. - The company donated 600,000 yuan and 30,000 medical masks to support COVID-19 relief efforts[104]. - The company has actively participated in the "Hand in Hand to a Better Life" initiative to enhance poverty alleviation efforts in collaboration with local governments[99]. - The company has committed to improving educational resources in impoverished areas, with an investment of RMB 0.62 million for educational support[101]. Financial Position and Liabilities - The total liabilities reached CNY 698,517,205.09 in 2020, up from CNY 393,168,927.94 in 2019, which is an increase of approximately 77%[167]. - Short-term borrowings increased to CNY 218,201,985.01 in 2020, compared to CNY 165,169,750.00 in 2019, marking a rise of about 32%[167]. - The company's long-term borrowings rose to CNY 219,330,000.00 in 2020, compared to CNY 95,000,000.00 in 2019, marking an increase of about 131%[167]. - The total amount of guarantees provided by the company, including guarantees to subsidiaries, is RMB 91.33 million, which accounts for 5.82% of the company's net assets[97]. Governance and Management - The company has established a transparent performance evaluation and incentive mechanism for senior management, implementing an annual salary system[146]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to CNY 5.1795 million[131]. - The company maintains independence in financial, personnel, asset, business, and institutional aspects from its controlling shareholder[145]. - The company has not faced any major litigation or arbitration matters during the reporting period[94]. Audit and Compliance - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results as of December 31, 2020[155]. - There were no significant deficiencies in internal controls reported during the audit period[153]. - The internal control audit report received a standard unqualified opinion, indicating no major issues were found[154]. - The company has not reported any related party transactions that could compromise its independence or operational capabilities[151].

Financial Performance - Operating revenue rose by 29.28% to CNY 213,849,748.88 year-on-year[4] - Net profit attributable to shareholders increased by 24.54% to CNY 44,013,084.10 compared to the same period last year[4] - Basic earnings per share increased by 24.50% to CNY 0.0940 compared to the previous year[4] - The company reported a net profit excluding non-recurring gains and losses of CNY 42,607,293.82, up 22.72% year-on-year[4] - The company reported a net profit of ¥676,833,535.24, compared to ¥638,116,906.06, reflecting an increase of about 6.1%[20] - Net profit for Q1 2021 reached RMB 45,707,518.76, representing a 27.3% increase from RMB 35,945,066.96 in Q1 2020[23] - The company reported a total profit of RMB 51,650,600.21 for Q1 2021, an increase of 25.3% from RMB 41,218,261.87 in Q1 2020[22] - The company’s total comprehensive income for Q1 2021 was RMB 46,235,446.29, up from RMB 35,938,703.08 in Q1 2020, marking a growth of 28.5%[23] Assets and Liabilities - Total assets increased by 10.44% to CNY 2,504,838,495.27 compared to the end of the previous year[4] - Total liabilities increased to ¥889,081,855.99, up from ¥698,517,205.09, representing a growth of approximately 27.3% year-over-year[17] - Total equity reached ¥1,615,756,639.28, compared to ¥1,569,521,192.99, reflecting an increase of about 2.5%[17] - Current assets totaled ¥1,242,830,894.88, an increase from ¥1,104,005,358.20, marking a growth of approximately 12.6%[19] - Total non-current assets decreased slightly to ¥920,128,826.36 from ¥929,793,165.24, a decline of about 1.8%[19] - Total liabilities and equity amounted to ¥2,162,959,721.24, up from ¥2,033,798,523.44, representing an increase of approximately 6.3%[20] Cash Flow - Net cash flow from operating activities increased by 5.01% to CNY 32,839,667.67 year-to-date[4] - Net cash flow from financing activities increased by 305.72% to 178,853,060.05, compared to 44,083,033.34 in the same period last year, reflecting increased short-term and long-term loans[13] - Cash inflow from operating activities totaled ¥160,084,035.48 in Q1 2021, down from ¥173,061,988.54 in Q1 2020, indicating a decrease of about 7.5%[26] - The net cash flow from operating activities for Q1 2021 was ¥32,839,667.67, slightly up from ¥31,273,870.80 in Q1 2020, reflecting a growth of approximately 5%[27] - Cash outflow from investing activities was ¥151,802,739.78 in Q1 2021, compared to ¥110,931,191.94 in Q1 2020, marking an increase of about 36.9%[27] Shareholder Information - The total number of shareholders at the end of the reporting period was 8,284[7] - The top shareholder, Xie Bingkun, holds 48.95% of the shares, totaling 229,083,338 shares[8] Research and Development - Research and development expenses surged by 90.89% to 8,400,616.44, compared to 4,400,746.21 in the same period last year, indicating a significant increase in R&D investment[11] - Research and development expenses increased to RMB 8,400,616.44 in Q1 2021, up 90.5% from RMB 4,400,746.21 in Q1 2020[22] Other Financial Metrics - The weighted average return on equity rose by 0.29 percentage points to 2.78%[4] - Other income increased by 89.33% to 1,767,313.32, compared to 933,436.36, primarily due to an increase in government subsidies received[11] - The company reported a significant decrease in credit impairment losses, with a reduction of 111.49% to 203,277.69, compared to -1,768,584.57 in the previous year[12] - The company’s financial expenses for Q1 2021 were RMB 6,055,632.58, significantly higher than RMB 1,828,499.62 in Q1 2020, indicating increased borrowing costs[22] - The company’s sales expenses decreased to RMB 8,603,710.38 in Q1 2021 from RMB 9,467,232.03 in Q1 2020, a reduction of 9.1%[22]