Financial Performance - The company's operating revenue for Q3 2022 was ¥415,821,926.63, a decrease of 17.21% compared to the same period last year[5] - The net profit attributable to shareholders was ¥26,572,776.21, down 17.58% year-on-year[5] - The basic earnings per share for the period was ¥0.13, reflecting an 18.75% decrease compared to the previous year[6] - The net profit after deducting non-recurring gains and losses was ¥26,122,724.87, a decrease of 15.33% year-on-year[5] - Total operating revenue for the first three quarters of 2022 was CNY 1,371,229,264.33, a decrease of 3.3% from CNY 1,417,935,757.01 in the same period of 2021[22] - Net profit for the third quarter of 2022 was CNY 88,569,914.91, an increase of 2.5% compared to CNY 86,359,145.03 in the same quarter of 2021[23] - The company reported a gross profit margin of approximately 6.7% for the first three quarters of 2022, down from 6.8% in 2021[22] - The total comprehensive income for the third quarter of 2022 was approximately ¥88.57 million, compared to ¥86.36 million in the same period of 2021, representing an increase of about 2.5%[24] - Basic and diluted earnings per share for the third quarter of 2022 were both ¥0.44, up from ¥0.43 in the previous year, indicating a growth of approximately 2.3%[24] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥1,973,029,353.77, representing a 4.41% increase from the end of the previous year[6] - Total assets as of September 30, 2022, amounted to CNY 1,973,029,353.77, up from CNY 1,889,770,985.73 at the end of 2021[18] - Total liabilities as of September 30, 2022, were CNY 562,679,214.19, compared to CNY 366,884,554.59 at the end of 2021[19] - Current assets totaled CNY 1,370,227,467.18 as of September 30, 2022, an increase from CNY 1,286,769,262.26 in the previous year[17] Cash Flow - The company's cash flow from operating activities showed a net outflow of ¥23,020,986.35, primarily due to increased cash payments for raw materials[9] - Cash inflow from operating activities for the first three quarters of 2022 was approximately ¥1.58 billion, an increase of about 5.2% from ¥1.50 billion in the same period of 2021[26] - The net cash flow from operating activities for the first three quarters of 2022 was a negative ¥23.02 million, a decline from a positive ¥3.82 million in the same period of 2021[26] - The company reported a total cash outflow from operating activities of approximately ¥1.62 billion for the first three quarters of 2022, compared to ¥1.51 billion in the same period of 2021, reflecting an increase of about 7.4%[26] - Cash inflow from investment activities for the first three quarters of 2022 was approximately ¥469.16 million, compared to ¥274.17 million in the same period of 2021, showing an increase of about 71.1%[27] - The net cash flow from investment activities for the first three quarters of 2022 was a negative ¥5.33 million, down from a positive ¥47.81 million in the same period of 2021[27] - Cash inflow from financing activities for the first three quarters of 2022 was approximately ¥262.84 million, with a net cash flow from financing activities of ¥58.93 million, compared to a negative cash flow of ¥30.24 million in the same period of 2021[27] - The cash and cash equivalents at the end of the third quarter of 2022 amounted to approximately ¥38.94 million, an increase from ¥30.10 million at the end of the same period in 2021[27] Investments and Projects - The company plans to invest ¥3 billion in a project to build a production facility for 200,000 tons of specialty phenolic resin in Jiangsu Province[13] - The project is currently in the preliminary approval stage, with necessary permits and approvals being processed[13] Research and Development - Research and development expenses for the first three quarters of 2022 were CNY 48,559,768.83, compared to CNY 45,573,078.92 in the same period of 2021[23] Government Support - The company received government subsidies amounting to ¥648,292.13 during the reporting period[8] - The company received tax refunds of approximately ¥18.86 million in the first three quarters of 2022, compared to ¥5.97 million in the same period of 2021, indicating a significant increase of about 215%[26] Inventory and Cash Equivalents - The company’s cash and cash equivalents stood at CNY 51,541,543.54 as of September 30, 2022, compared to CNY 25,150,676.34 in the previous year[17] - The company’s inventory as of September 30, 2022, was CNY 87,352,760.01, a decrease from CNY 93,214,853.84 in the previous year[17] -

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 955,407,337.70, representing a 4.34% increase compared to CNY 915,658,367.51 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 61,997,138.70, up 14.55% from CNY 54,120,152.42 year-on-year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 59,363,054.77, reflecting a 19.95% increase from CNY 49,489,614.53 in the previous year[19]. - Basic earnings per share increased by 14.81% to CNY 0.31 compared to the same period last year[21]. - Diluted earnings per share also rose by 14.81% to CNY 0.31 year-on-year[21]. - The weighted average return on net assets improved by 0.28 percentage points to 4.08%[21]. - The company achieved a revenue of 955 million yuan in the first half of 2022, representing a year-on-year growth of 4.34%[42]. - The net profit attributable to the parent company was 62 million yuan, showing a year-on-year increase of 14.55%[42]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at CNY -136,372,225.62, compared to a positive CNY 27,455,691.26 in the same period last year, indicating a significant decline[19]. - The company reported a net cash flow from financing activities of CNY 261,523,924.72, a significant improvement from -CNY 30,240,000.00 in the previous year[43]. - Cash and cash equivalents increased by 312.99% to CNY 103,870,723.94, up from CNY 25,150,676.34 year-on-year[46]. - Accounts receivable rose by 90.89% to CNY 338,344,136.05 from CNY 177,244,774.39 in the previous year[46]. - The total assets at the end of the reporting period were CNY 2,151,065,071.90, which is a 13.83% increase from CNY 1,889,770,985.73 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased to CNY 1,384,204,157.46, down 9.11% from CNY 1,522,886,431.14 at the end of the previous year[20]. - Total liabilities increased to CNY 766,860,914.44, up from CNY 366,884,554.59, reflecting a growth of 108.5%[99]. - The company's equity attributable to shareholders decreased to CNY 1,384,204,157.46 from CNY 1,522,886,431.14, a decline of approximately 9.1%[99]. Research and Development - Research and development expenses rose by 7.71% to CNY 33,311,804.72 from CNY 30,928,696.72 in the previous year[43]. - The company holds a total of 36 authorized invention patents and 15 utility model patents, with one new invention patent granted during the reporting period[37]. - The company focuses on R&D and production of functional new materials, including casting process materials and special phenolic resins[32]. Market Position and Strategy - The company maintained a leading market share in self-hardening furan resin and cold box resin, ranking second and first respectively in the domestic market[26]. - The total production of the company's main products increased by 2.47% year-on-year, aligning with the growth in casting demand[27]. - The automotive industry accounted for 28.5% of casting demand in 2021, with a 2.7% increase in automotive casting production[30]. - The production model is based on "sales-driven production," allowing flexibility to meet diverse customer needs[34]. - The company has developed new materials such as self-hardening furan resin and cold core box release agent to maintain competitive advantages[38]. Environmental Compliance - The company has completed the change of its pollutant discharge permit and has been compliant with national and local pollution discharge standards, with no major environmental violations reported[64]. - The company is classified as a key pollutant discharging unit, which subjects it to stricter environmental regulations and oversight[64]. - The company has not reported any significant environmental penalties during the reporting period, indicating effective compliance with environmental laws[64]. - The total emissions amounted to 10,523 tons, with a pollution discharge limit of 39,765.72 tons, indicating compliance with regulatory standards[66]. - The company has implemented advanced wastewater treatment processes, including Fenton oxidation and biochemical treatment, ensuring efficient pollutant removal[70]. - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential pollution events[73]. Risk Management - The company has implemented a diversified risk management strategy to mitigate reliance on single products or markets[40]. - The company faces risks related to environmental protection and safety production compliance, particularly in the chemical manufacturing sector[54]. - The fluctuation in raw material prices, including furfural alcohol and phenol, significantly impacts production costs, with these materials constituting a large portion of overall expenses[56]. - High accounts receivable pose a risk to cash flow management, with a significant portion of current assets tied up in receivables, increasing the potential for bad debts[57]. - The ongoing COVID-19 pandemic has disrupted logistics and production operations in the Yangtze River Delta, potentially impacting the company's operational targets for the year[58]. Corporate Governance - The company committed to repurchase all newly issued shares at the original IPO price within 60 days if any false statements or omissions in the prospectus are confirmed by regulatory authorities[80]. - The company will compensate investors for losses within 60 days if the prospectus is found to contain misleading information that caused trading losses[81]. - The controlling shareholders and actual controllers will ensure no competitive business activities are conducted that could harm the company's interests during their control period[82]. - The company has established a commitment to avoid any non-operational fund occupation by controlling shareholders and related parties[82]. - The company will adhere to strict decision-making procedures for related transactions to protect shareholder interests[81]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 13,592[90]. - The largest shareholder, Wang Jinxing, holds 56,782,900 shares, representing 28.17% of the total shares[90]. - The second largest shareholder, Wang Quanxing, holds 52,334,600 shares, representing 25.96% of the total shares[90]. Financial Reporting and Compliance - The financial statements were approved by the board on August 25, 2022, indicating a commitment to transparency and regulatory compliance[136]. - The company adheres to the Chinese accounting standards, ensuring that its financial reports accurately reflect its financial position and performance[141]. - The company’s accounting period runs from January 1 to December 31, aligning with standard fiscal year practices[142].

2022 年第一季度报告 证券代码：603928 证券简称：兴业股份 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。 公司负责人王进兴、主管会计工作负责人陆佳及会计机构负责人（会计主管人员）陆佳保证季度 报告中财务报表信息的真实、准确、完整。 第一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减 | | --- | --- | --- | | | | 变动幅度(%) | | 营业收入 | 513,719,755.23 | 21.91 | | 归属于上市公司股东的净利润 | 38,614,451.62 | 145.53 | | 归属于上市公司股东的扣除非经常性 | 36,934,176.89 | 180.16 | | 损益的净利润 | | | | 经营活动产生的现金流量净额 | -96,873,101.97 | -749.86 | 1 / 11 苏州兴业材料科技股份有限公司 2022 年 ...

Financial Performance - The company's operating revenue for 2021 was approximately CNY 1.97 billion, representing a year-on-year increase of 34.99% compared to CNY 1.46 billion in 2020[20]. - The net profit attributable to shareholders of the listed company was approximately CNY 129.67 million, an increase of 8.25% from CNY 119.79 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was approximately CNY 122.13 million, reflecting a 9.61% increase from CNY 111.43 million in 2020[21]. - The company's total assets at the end of 2021 reached approximately CNY 1.89 billion, a 15.26% increase from CNY 1.64 billion at the end of 2020[21]. - The net assets attributable to shareholders of the listed company increased to approximately CNY 1.52 billion, up 8.76% from CNY 1.40 billion in the previous year[21]. - The net cash flow from operating activities was approximately CNY 14.55 million, a significant decrease of 88.97% compared to CNY 131.96 million in 2020[21]. - The company achieved a revenue of 1.972 billion RMB in 2021, representing a year-on-year growth of 34.99% due to increased product prices and sales volume[51]. - Operating costs rose to 1.692 billion RMB, a 39.72% increase year-on-year, primarily driven by high raw material prices throughout the year[51]. - The net profit attributable to the parent company was 130 million RMB, up 8.25% year-on-year, supported by higher product prices and sales growth[51]. Market Position and Products - The company maintains a leading market position in the casting resin sector, holding the second and first market shares for self-hardening furan resin and cold box resin, respectively[35]. - The company’s main products include casting resins and curing agents, which are essential materials in high-end manufacturing sectors[40]. - The company achieved a sales volume of 86,700 tons of casting resin in 2020, representing a 17.01% increase year-on-year, while the sales volume slightly decreased to 84,800 tons in 2021[36]. - The company successfully developed and applied dry powder coating technology, achieving sales of 17,938 tons, a year-on-year increase of 12.81%[32]. - The company has developed new materials such as odorless synthetic self-hardening furan resin and LTM-6B cold core box release agent to maintain competitive product advantages[46]. Research and Development - The company’s R&D expenses increased by 35.37% to 62 million RMB, reflecting its commitment to innovation and product development[52]. - The company has obtained 33 invention patents and 7 utility model patents, with 15 invention patent applications currently under review[87]. - The company is focusing on technological innovation, cost reduction, and environmental protection in its R&D efforts, completing multiple projects to enhance product functionality[87]. - The company is actively involved in the formulation of 13 industry standards, showcasing its leadership in the sector[87]. Risk Management - The company has detailed various risks and countermeasures in its report, urging investors to pay attention to investment risks[6]. - The company operates a diversified risk management model, reducing reliance on single products or markets by developing a wide range of products across various industries[49]. - The company is facing increasing demands for high-performance and high-quality castings from key industries such as automotive and aerospace, which may benefit larger resin binder enterprises[109]. - The company is monitoring the ongoing risks from the COVID-19 pandemic and international political-economic instability, which could disrupt its supply chain and operations[120]. Corporate Governance - The company has established a comprehensive internal management and control system to maximize shareholder interests[123]. - The company strictly adheres to relevant laws and regulations regarding corporate governance and information disclosure[123]. - The company has not engaged in any related party transactions that could affect its independence[123]. - The company has a structured process for determining the remuneration of non-independent directors and supervisors based on diligence and performance[130]. Environmental Compliance - The company has established a pollution prevention facility, maintaining efficient operation to ensure compliance with discharge standards[161]. - The company has effectively managed hazardous waste disposal through qualified third-party services, ensuring compliance with regulations[161]. - The company has implemented measures to reduce carbon emissions, including utilizing high-temperature condensate for heating and energy-saving technologies[169]. - The company emphasizes green manufacturing and sustainable development, adhering to environmental regulations and promoting eco-friendly practices[171]. Shareholder Relations - The company plans to implement a three-year shareholder dividend return plan from 2021 to 2023[125]. - The company’s profit distribution policy emphasizes a stable return to investors, with at least 10% of the annual distributable profit allocated for cash dividends[146]. - The company has committed to conducting at least one profit distribution each year, with the possibility of mid-term cash dividends based on current profitability and cash flow[145]. - The company plans to distribute cash dividends of 10 RMB per 10 shares, totaling 201.6 million RMB, with a cash dividend ratio of 155.47% for the year 2021[148].

Financial Performance - The company's operating revenue for Q3 2021 was ¥502,277,389.50, representing a year-on-year increase of 23.82%[2] - The net profit attributable to shareholders for Q3 2021 was ¥32,238,992.61, a decrease of 9.29% compared to the same period last year[2] - The net profit after deducting non-recurring gains and losses for Q3 2021 was ¥30,853,384.96, down 7.56% year-on-year[2] - The company reported a significant increase in operating revenue year-to-date, up 34.58%, driven by increased product sales and rising raw material prices[6] - Total revenue for the first three quarters of 2021 reached ¥1,417,935,757.01, a significant increase from ¥1,053,632,343.18 in the same period of 2020, representing a growth of approximately 34.5%[17] - Operating profit for the third quarter was ¥101,114,616.90, down from ¥129,377,632.87 in the previous year, indicating a decrease of about 21.8%[18] - Net profit for the first three quarters of 2021 was ¥86,359,145.03, compared to ¥106,871,333.24 in the same period of 2020, reflecting a decline of approximately 19.2%[18] - The total comprehensive income attributable to the parent company for Q3 2021 was CNY 86,359,145.03, compared to CNY 106,871,333.24 in Q3 2020, reflecting a decrease of approximately 19.2%[19] Assets and Liabilities - The total assets as of September 30, 2021, amounted to ¥1,801,452,123.87, reflecting a 9.87% increase from the end of the previous year[3] - Total assets as of the end of the third quarter amounted to ¥1,801,452,123.87, up from ¥1,639,625,135.46 at the end of the previous year, an increase of approximately 9.9%[13] - Total liabilities increased to ¥344,363,140.81 from ¥239,398,354.46, representing a growth of about 43.8%[13] - The company's total equity reached ¥1,457,088,983.06, compared to ¥1,400,226,781.00 in the previous year, showing an increase of approximately 4.1%[14] - The total equity attributable to shareholders increased to ¥1,457,088,983.06, a rise of 4.06% from the previous year-end[3] Earnings and Expenses - The weighted average return on equity for Q3 2021 was 2.24%, a decrease of 0.35 percentage points compared to the same period last year[3] - The company's basic earnings per share for Q3 2021 was ¥0.16, down 11.11% year-on-year[3] - Basic and diluted earnings per share for Q3 2021 were both CNY 0.43, down from CNY 0.53 in Q3 2020, indicating a decline of about 18.9%[19] - Research and development expenses increased to ¥45,573,078.92 in 2021 from ¥31,175,398.36 in 2020, marking a rise of about 46.2%[18] - The company reported a financial expense of ¥658,194.06, which increased from ¥435,658.72 in the previous year, reflecting a rise of approximately 50.9%[18] Cash Flow - The cash flow from operating activities for the year-to-date period decreased by 96.67%, totaling ¥3,824,654.73, primarily due to increased cash payments for raw materials[6] - Cash inflow from operating activities for the first three quarters of 2021 was CNY 1,509,156,951.34, an increase of 30.7% compared to CNY 1,154,264,794.53 in the same period of 2020[23] - Net cash flow from operating activities for the first three quarters of 2021 was CNY 3,824,654.73, a significant decrease of 96.7% from CNY 114,910,049.69 in the previous year[23] - Cash inflow from investment activities for the first three quarters of 2021 was CNY 274,172,351.24, down 50.9% from CNY 556,233,012.83 in the same period of 2020[23] - Net cash flow from investment activities for the first three quarters of 2021 was CNY 47,812,014.07, compared to a negative cash flow of CNY 37,575,320.61 in the same period of 2020[24] - Cash and cash equivalents at the end of Q3 2021 totaled CNY 30,097,486.81, down 38.4% from CNY 48,779,482.68 at the end of Q3 2020[24] - The company reported a cash outflow of CNY 30,240,000.00 for financing activities in Q3 2021, an improvement from a cash outflow of CNY 40,320,000.00 in Q3 2020[24] Government Support and Standards - The company received government subsidies amounting to ¥456,532.12 during the reporting period, contributing to its financial performance[5] - The company has not applied the new leasing standards starting from 2021, indicating a potential area for future financial reporting adjustments[24] - The company did not report any net profit from subsidiaries prior to the merger in the current or previous periods[19]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥915,658,367.51, representing a 41.31% increase compared to ¥647,982,828.09 in the same period last year[19]. - The net profit attributable to shareholders of the listed company decreased by 24.13% to ¥54,120,152.42 from ¥71,331,557.61 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥49,489,614.53, down 25.99% from ¥66,871,248.17 in the same period last year[19]. - Basic earnings per share decreased by 22.86% to CNY 0.27 compared to the same period last year[20]. - Weighted average return on equity dropped by 1.48 percentage points to 3.80%[20]. - The company achieved a sales revenue of 915.66 million RMB in the first half of 2021, representing a year-on-year growth of 41.31% due to increased product sales and rising raw material prices[46]. - The net profit for the same period was 54.41 million RMB, a decrease of 23.72% compared to the previous year, primarily due to the significant rise in raw material prices outpacing product price increases[46]. - In Q2 2021, the company reported a sales revenue of 494.26 million RMB and a net profit of 38.68 million RMB, indicating improved profitability compared to Q1 2021 and Q4 2020[41]. Cash Flow and Assets - The net cash flow from operating activities was ¥27,455,691.26, a significant decrease of 73.42% compared to ¥103,312,373.91 in the previous year[19]. - The company's total assets at the end of the reporting period amounted to 1,760,000,000.00 RMB, with cash and cash equivalents increasing by 445.01% to 47,444,496.34 RMB, representing 2.69% of total assets[48]. - Accounts receivable rose by 16.04% to 640,004,559.60 RMB, accounting for 36.26% of total assets, with no significant changes reported during the period[48]. - Inventory increased by 13.00% to 94,945,411.24 RMB, which is 5.38% of total assets, with no major changes noted[48]. - The company reported a significant increase in prepaid expenses, which rose by 106.06% to 24,804,084.90 RMB, primarily due to increased material payments[48]. Investment and Projects - The company plans to invest in a new project covering approximately 447 acres in the Taixing Economic Development Zone, aiming to establish a modern "garden-style" production base for organic synthetic resins and new materials[42]. - The company plans to invest 3 billion RMB in a new project in Jiangsu Province, with funding sourced from its own or self-raised funds[49]. - A new subsidiary, Xingye Taizhou, was registered with a capital of 500 million RMB, with the company holding a 99% stake[51]. Research and Development - Research and development expenses rose by 67.53% to 30.93 million RMB, reflecting increased costs of raw materials and additional R&D projects by subsidiaries[46]. - The company focuses on developing functional new materials, including casting process materials and specialty phenolic resins[31]. - The company is focusing on personalized, ecological, and functional resin products, aligning with market trends and customer needs[44]. Market Position and Competition - The company maintains a competitive position in the casting resin market, holding the second and first market shares for self-hardening furan resin and cold box resin, respectively[24]. - The automotive industry remains the largest consumer of castings, accounting for 28.9% of total casting demand in 2020[27]. - The company has successfully entered partnerships with Fortune 500 companies and top 100 foundries in China, establishing itself as a qualified supplier[38]. Risk Management - The report includes a detailed discussion of various risks faced during production and operations, along with corresponding countermeasures[6]. - The company employs a diversified risk management strategy, reducing reliance on single products or markets by developing a wide range of products across various industries[39]. - The company faces significant risks related to raw material price fluctuations, which can adversely affect production costs and profits[58]. Environmental Compliance - The company has been listed as a key pollutant discharge unit, but there were no major environmental violations or penalties during the reporting period[66]. - The company has implemented a wastewater treatment process that includes pre-treatment, Fenton oxidation, and biochemical treatment, ensuring that treated water meets discharge standards before being sent to local treatment facilities[72]. - The company has established an environmental self-monitoring plan, with third-party monitoring confirming compliance with discharge standards[78]. Corporate Governance - The company has established measures to prevent related party transactions that could harm shareholder interests, ensuring fair market pricing[85]. - The company has a long-term commitment to compensate investors for losses incurred due to false statements in the prospectus, with a 60-day timeline for compensation post-judgment[85]. - The company has maintained its total share capital structure without any changes during the reporting period[96]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 11,695[97]. - The top two shareholders are Wang Jinxing with 56,782,900 shares (28.17%) and Wang Quanxing with 52,334,600 shares (25.96%)[98]. - The company distributed 40,320,000.00 in profits to shareholders during the reporting period, indicating a commitment to shareholder returns[140].

Financial Performance - Operating revenue rose by 63.53% to CNY 421,402,259.42 year-on-year[5] - Net profit attributable to shareholders decreased by 37.47% to CNY 15,727,243.05 compared to the same period last year[5] - The company's operating revenue for Q1 2021 reached ¥421,402,259.42, representing a 63.53% increase compared to ¥257,694,152.21 in the same period last year[12] - Net profit for Q1 2021 was CNY 15,727,243.05, a decrease of 37.5% from CNY 25,153,150.74 in Q1 2020[24] - The total comprehensive income for Q1 2021 was ¥17,739,850.93, down 46.5% from ¥33,096,660.57 in Q1 2020[28] Cash Flow - The net cash flow from operating activities dropped by 75.66% to CNY 14,906,674.35[5] - The net cash flow from operating activities decreased by 75.66% to ¥14,906,674.35, mainly due to increased cash payments for raw material purchases[13] - The net cash flow from operating activities for Q1 2021 was ¥14,906,674.35, a decrease of 75.7% from ¥61,243,541.85 in Q1 2020[30] - Net cash flow from operating activities decreased to $3.50 million in Q1 2021 from $52.08 million in Q1 2020, a decline of 93.3%[35] - The total net increase in cash and cash equivalents for Q1 2021 was $4.99 million, down from $22.45 million in Q1 2020, a decrease of 77.8%[35] Assets and Liabilities - Total assets increased by 4.14% to CNY 1,707,432,108.46 compared to the end of the previous year[5] - The company's total assets as of March 31, 2021, amounted to ¥1,707,432,108.46, up from ¥1,639,625,135.46 at the end of 2020[16] - The total liabilities increased to ¥291,248,867.62 from ¥239,398,354.46, reflecting a rise in accounts payable and other current liabilities[17] - Total liabilities increased to CNY 231,453,177.55 in Q1 2021, up from CNY 170,801,925.82 in Q1 2020[22] Cash and Cash Equivalents - Cash and cash equivalents increased by 142.09% to CNY 21,074,712.21 due to operational funding needs[11] - The company's cash and cash equivalents were CNY 14,366,071.47 as of March 31, 2021, compared to CNY 5,376,801.55 at the end of 2020[20] - Cash and cash equivalents at the end of Q1 2021 totaled $10.37 million, down from $29.86 million at the end of Q1 2020, a decrease of 65.3%[35] Operating Costs and Expenses - Operating costs increased by 88.22% to ¥369,535,116.40, primarily due to rising raw material prices and the reclassification of freight costs under the new revenue recognition standards[12] - Management expenses increased by 49.24% to ¥13,689,692.06, driven by higher business expenses as revenue grew[12] - Research and development expenses rose by 63.35% to ¥13,143,339.83, attributed to increased material costs and additional R&D projects by subsidiaries[12] - Research and development expenses for Q1 2021 were CNY 13,143,339.83, up from CNY 8,046,316.90 in Q1 2020[24] Shareholder Information - The number of shareholders reached 12,180 at the end of the reporting period[9] Other Financial Metrics - The weighted average return on equity decreased by 0.77 percentage points to 1.12%[5] - The deferred income tax liabilities increased by 93.33% to ¥621,902.06, primarily due to the fair value appreciation of trading financial assets[12] - The company reported a significant decrease in investment income, down 97.22% to ¥17,406.51, due to lower redemption amounts from financial products compared to the previous year[12] - Other income rose by 35.14% to ¥2,332,743.23, mainly from increased VAT refunds compared to the same period last year[12]

Financial Performance - The company's operating revenue for 2020 was approximately ¥1.46 billion, representing a 13.28% increase compared to ¥1.29 billion in 2019[23]. - The net profit attributable to shareholders for 2020 was approximately ¥119.79 million, a decrease of 9.67% from ¥132.61 million in 2019[23]. - The net profit after deducting non-recurring gains and losses was approximately ¥111.43 million, down 9.36% from ¥122.93 million in 2019[23]. - The net cash flow from operating activities was approximately ¥131.96 million, a slight decrease of 0.20% compared to ¥132.23 million in 2019[23]. - The total assets at the end of 2020 were approximately ¥1.64 billion, an increase of 6.53% from ¥1.54 billion at the end of 2019[23]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.40 billion, reflecting a 6.01% increase from ¥1.32 billion at the end of 2019[23]. - Basic earnings per share decreased by 10.61% to CNY 0.59 compared to CNY 0.66 in 2019[24]. - Diluted earnings per share also decreased by 10.61% to CNY 0.59 from CNY 0.66 in 2019[24]. - The company's main business revenue increased by 13.51% to 1.44 billion RMB, while main business costs rose by 24.56% to 1.20 billion RMB[66]. - The company's net profit attributable to shareholders was 120 million yuan, a decrease of 9.67% year-on-year, primarily due to a significant increase in raw material prices in Q4[51]. Dividend Policy - The company plans to distribute a cash dividend of ¥1.5 per 10 shares, totaling approximately ¥30.24 million[5]. - The cash dividend amount proposed for 2020 is lower than 30% of the net profit attributable to shareholders, primarily due to significant funding needs for a new project in Jiangsu Province, with an investment of 3 billion RMB over approximately 450 acres[135]. - The company adheres to a stable profit distribution policy, with a commitment to distribute at least 10% of the annual distributable profit in cash dividends, contingent on meeting specific conditions[131]. - In 2019, the company distributed a total of 40.32 million yuan in cash dividends, representing 30.40% of the net profit attributable to shareholders[134]. - The board of directors has approved the dividend distribution plan, which will be submitted for shareholder approval at the annual general meeting[135]. Risk Management - The company has detailed various risks and countermeasures in its report, urging investors to be cautious[9]. - The company faces risks from global economic recovery uncertainties and stricter environmental regulations impacting production capabilities[123][124]. - The company has a high proportion of accounts receivable, which poses a risk of bad debts if major clients experience financial difficulties, potentially affecting operational performance[127]. - The company is subject to risks from potential adjustments in national industrial policies, which could adversely affect business scale and performance if the equipment manufacturing industry slows down[126]. - The company faces risks related to the use of hazardous chemicals such as toluene and phenol, which could lead to production stoppages or economic liabilities if safety protocols are not followed[125]. Research and Development - The company focuses on the R&D, production, and sales of functional new materials, including casting process materials and special phenolic resins[31]. - The company is recognized as a high-tech enterprise and has established partnerships with renowned universities to drive technological advancements and product development[43]. - R&D expenses increased by 5.33% to approximately 45.90 million RMB, indicating a commitment to innovation[62]. - The company has obtained 31 invention patents and 6 utility model patents, with 17 invention patents and 1 utility model patent applications currently under review[94]. - The company is actively involved in the research and development of bio-additive manufacturing materials to improve the biological performance of implantable materials[13]. Market Position and Strategy - The company maintains a competitive edge through product differentiation, stable quality, and energy-saving measures, supported by certifications such as ISO9001 and AS9100D[45]. - The company is positioned to benefit from national policies promoting innovation and development in high-tech sectors, including new materials and advanced manufacturing[84]. - The company aims to expand its product line in functional new materials and composite new materials, enhancing its market share in high-value applications[120]. - The company has established strong business relationships with major clients, including Fortune 500 companies and top 100 foundries in China, enhancing its market position[47]. - The company is focusing on environmental investments, including VOCs emission treatment improvements to enhance waste gas processing efficiency[57]. Environmental Compliance - The company has maintained compliance with environmental regulations, with no major violations reported during the year[172]. - The total wastewater discharge in 2020 was 15,085 tons, with a chemical oxygen demand of 1.536 tons, and total nitrogen of 4.612 tons, all within the permitted limits[174]. - The total emissions of volatile organic compounds (VOCs) in 2020 were 1.005 tons, significantly below the annual permitted limit of 5.386 tons[176]. - The company has implemented a multi-stage biological treatment process for wastewater, ensuring that treated water meets standards before being discharged to local treatment facilities[178]. - A new biological MUB treatment process for organic waste gas is expected to be operational by May 2021, enhancing waste gas treatment efficiency[179]. Corporate Governance - The company has established a comprehensive internal governance structure to comply with the new Securities Law, but risks remain if these protocols are not strictly followed[128]. - The company has a diverse board with members having extensive experience in various industries, including casting and chemical engineering[200]. - The company is committed to enhancing its governance structure by including independent directors with diverse expertise[200]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[146]. - The company has not reported any major contracts or guarantees that require disclosure during the reporting period[151]. Community Engagement - The company signed a partnership agreement with Anjiaping Village in Yunnan Province, providing 200,000 RMB for infrastructure support as part of its poverty alleviation efforts[164]. - A total of 734,800 RMB was spent on poverty alleviation initiatives during the reporting period, including donations to various educational and charitable projects[164]. - The company has committed to providing job opportunities for local disabled individuals and elderly farmers as part of its future poverty alleviation plans[168]. - The company has actively engaged in community service and social responsibility initiatives, including donations for pandemic prevention efforts[169]. - The company employed 78 disabled individuals, providing them with stable employment and support[171].

Financial Performance - Net profit attributable to shareholders rose by 11.33% to CNY 106,871,333.24 for the first nine months of the year[5] - Operating revenue for the first nine months increased by 10.69% to CNY 1,053,632,343.18 compared to the same period last year[5] - Total revenue for Q3 2020 reached ¥405,649,515.09, a 29.6% increase from ¥312,797,650.32 in Q3 2019[21] - Net profit for the first three quarters of 2020 was ¥121,108,366.23, compared to ¥106,929,475.83 in the same period of 2019, reflecting a growth of 13.2%[21] - Total revenue for the first nine months of 2020 reached CNY 1,146,933,426.73, up from CNY 1,083,645,495.95 in the same period of 2019, reflecting a growth of approximately 5.8%[30] - Operating profit for Q3 2020 was ¥42,874,452.22, up from ¥32,328,122.45 in Q3 2019, marking a 32.5% increase[22] - Net profit for Q3 2020 was ¥35,539,775.63, compared to ¥26,388,224.68 in Q3 2019, representing a growth of 34.8%[23] Assets and Liabilities - Total assets increased by 5.70% to CNY 1,626,786,847.08 compared to the end of the previous year[5] - Total liabilities increased to 239,023,100.51 RMB from 218,235,481.40 RMB, indicating a rise in financial obligations[17] - The company's total assets as of September 30, 2020, were 1,626,786,847.08 RMB, up from 1,539,094,248.10 RMB at the end of 2019[16] - Total assets as of September 30, 2020, amounted to ¥1,566,083,592.27, an increase from ¥1,475,043,003.62 at the end of 2019[20] - Total liabilities increased to ¥189,939,540.47 from ¥171,738,889.67, reflecting a growth of 10.6%[19] - The company's equity attributable to shareholders was CNY 1,320,858,766.70, consistent with the previous year[40] Cash Flow - The net cash flow from operating activities decreased by 22.29% to CNY 114,910,049.69 year-to-date[5] - Cash flow from investing activities improved to -37,575,320.61 RMB from -69,037,644.66 RMB, primarily due to reduced fixed asset investments as subsidiaries resumed normal production[12] - Cash flow from financing activities decreased to -40,320,000.00 RMB from -116,046,690.85 RMB, mainly because there were no bank borrowings during the period[12] - The company generated a net cash flow from operating activities of CNY 114,910,049.69 in the first nine months of 2020, down from CNY 147,870,716.53 in the same period of 2019[31] - Investment activities resulted in a net cash outflow of CNY 37,575,320.61 for the first nine months of 2020, an improvement from a net outflow of CNY 69,037,644.66 in the same period of 2019[32] Shareholder Information - The number of shareholders reached 12,422, with the top ten shareholders holding a combined 88.69% of shares[9] - Shareholders' equity reached ¥1,376,144,051.80, up from ¥1,303,304,113.95, indicating a growth of 5.6%[20] Investment and Financial Assets - Cash and cash equivalents increased by 312.63% to CNY 48,779,490.71 due to the purchase of large-denomination time deposits[11] - Trading financial assets increased by 110.96% to CNY 175,084,637.01 as a result of increased investment in financial products[11] - Investment income rose by 72.10% to 4,350,603.50 RMB from 2,527,955.37 RMB, attributed to increased purchases of financial products[12] - Fair value gains on financial assets amounted to 1,189,359.24 RMB, reflecting an increase in the fair value of trading financial assets[12] - The company reported a significant increase in cash recovered from investments, totaling CNY 551,800,000.00 in the first three quarters of 2020, compared to CNY 169,266,000.00 in the same period of 2019, an increase of 225.5%[34] Tax and Expenses - Tax payable increased by 40.62% to 13,457,432.33 RMB compared to 9,570,045.01 RMB in the previous year, primarily due to an increase in corporate income tax payable[12] - The company reported a tax expense of ¥7,230,676.59 for Q3 2020, up from ¥5,974,854.06 in Q3 2019, which is a 21.0% increase[22] - R&D expenses for the first three quarters of 2020 were ¥31,175,398.36, slightly down from ¥31,968,543.50 in the same period of 2019[21] - Research and development expenses for Q3 2020 were ¥12,254,895.55, up from ¥10,087,228.04 in Q3 2019, indicating a 21.5% increase[26] Changes in Accounting Standards - The company adopted new revenue recognition standards starting January 1, 2020, which did not impact prior financial results[41] - The adjustment of CNY 1,227,560.02 from "prepayments" to "contract liabilities" reflects compliance with the new revenue standard[46]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 647,982,828.09, representing a 1.40% increase compared to CNY 639,067,036.04 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2020 was CNY 71,331,557.61, which is a 2.47% increase from CNY 69,610,715.24 in the previous year[19]. - The net cash flow from operating activities increased by 58.59% to CNY 103,312,373.91, compared to CNY 65,142,911.97 in the same period last year[19]. - The total assets at the end of the reporting period were CNY 1,577,625,161.57, reflecting a 2.50% increase from CNY 1,539,094,248.10 at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were CNY 1,352,271,343.97, which is a 2.38% increase from CNY 1,320,858,766.70 at the end of the previous year[20]. - The basic earnings per share for the first half of 2020 remained stable at CNY 0.35, unchanged from the same period last year[21]. - The weighted average return on equity decreased by 0.23 percentage points to 5.28% compared to 5.51% in the previous year[21]. Risk Management - The company has established a risk management model through product diversification across various applications and sales regions[39]. - The company has detailed various risks and countermeasures in its report, urging investors to pay attention to investment risks[6]. - The company faces risks from the ongoing COVID-19 pandemic, which could impact downstream clients and subsequently affect its production and operations[54]. - The company has a significant reliance on raw materials such as furfural, phenol, MDI, formaldehyde, and urea, which constitute a large portion of production costs, making it vulnerable to price fluctuations[56]. - The company is subject to stringent environmental regulations, which may require additional investments in compliance, potentially increasing operational costs[56]. - The company’s accounts receivable balance is high, posing a risk to cash flow management, especially if major clients experience financial difficulties[58]. Business Operations - The main business focuses on the research, production, and sales of functional new materials, including casting process materials and acrylic chemical materials[26]. - The production model is based on "sales-driven production," allowing for flexible adjustments to meet diverse customer needs[28]. - The company provides personalized and professional casting process solutions alongside its product offerings, catering to the "one-stop procurement" needs of customers[27]. - The company has established a stable long-term relationship with key raw material suppliers, ensuring sufficient supply and reducing operational risks from price fluctuations[27]. - The company aims to enhance market competitiveness by continuously developing new products and improving existing ones through collaboration with renowned universities[34]. Environmental Compliance - The company achieved zero excess emissions for wastewater, waste gas, and noise during the reporting period[79]. - The company has implemented a multi-stage biochemical treatment process for wastewater, ensuring compliance with national and local discharge standards[84]. - The company holds valid pollution discharge permits for all its facilities, ensuring compliance with environmental regulations[86]. - The company’s environmental monitoring results for wastewater, waste gas, and noise emissions have consistently met the required standards[88]. Corporate Governance - The company has no plans for profit distribution or capital reserve transfer to share capital for the half-year period[4]. - There are no non-operating fund occupation situations by controlling shareholders or related parties[6]. - The company has not faced any major litigation or arbitration matters during the reporting period[68]. - The company has retained Rongcheng Accounting Firm for the 2020 financial and internal control audit[68]. - There were no significant related party transactions reported during the period[69]. Social Responsibility - The company signed a pairing assistance agreement with Anjiaping Village in Huize County, Yunnan Province, providing a total of RMB 200,000 for infrastructure improvements[72]. - The company donated RMB 100,000 to Wenchang Experimental Middle School in Suzhou for improving educational conditions and supporting students[72]. - A total of RMB 37.27 million was allocated for social poverty alleviation efforts during the reporting period[74]. - The company plans to continue supporting local employment for disabled individuals and contribute to local economic development[76]. - The company has committed to helping local impoverished communities achieve poverty alleviation goals through various initiatives[75]. Future Outlook - The company plans to strengthen innovation capabilities and focus on the development of environmentally friendly new products[44]. - The company is actively seeking land resources for future project development in mature chemical parks[44]. - The company is planning to expand its market presence in Southeast Asia, targeting a 30% increase in market penetration by the end of 2021[65]. - A strategic acquisition is in progress, which is anticipated to enhance the company's technological capabilities and broaden its product offerings[66]. - The company provided a positive outlook for the next quarter, projecting a revenue increase of 25% based on current market trends and user engagement[65].