Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥372.91 million, representing an increase of 8.14% compared to the same period last year[20]. - The net profit attributable to shareholders of the listed company was approximately ¥102.29 million, reflecting a growth of 5.66% year-on-year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥95.79 million, which is a 1.62% increase from the previous year[20]. - The net cash flow from operating activities was approximately ¥152.72 million, showing a slight increase of 1.47% compared to the same period last year[20]. - The total assets of the company at the end of the reporting period were approximately ¥2.36 billion, an increase of 10.55% from the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were approximately ¥1.68 billion, a decrease of 1.29% compared to the end of the previous year[20]. - Basic earnings per share decreased by 20.51% to CNY 0.62 compared to the same period last year[21]. - Diluted earnings per share also decreased by 20.51% to CNY 0.62 compared to the same period last year[21]. - Weighted average return on equity dropped by 8.80 percentage points to 5.82% from 14.62% in the previous year[21]. Market and Industry Insights - The automotive market saw over 10 million passenger vehicles sold in the first half of 2021, despite challenges like chip shortages and rising raw material prices[28]. - New energy vehicle sales reached over 1 million units, with a penetration rate increasing from 5.4% to 9.4%[28]. - Future economic stability is expected to support automotive consumption, although uncertainties remain due to global recovery and chip supply issues[29]. Research and Development - The company focuses on R&D in chromium-free tanning and low VOC emissions, positioning itself as a technology leader in automotive interior materials[30]. - Research and development expenses increased by 84.64% to 37.23 million yuan, driven by the recruitment of R&D talent and ongoing investment in leather and water-based ultra-fiber development[36]. - The company holds a total of 79 patents, including 8 invention patents, enhancing its competitive edge in the industry[30]. Financial Position and Cash Flow - The company’s financing activities generated a net cash flow of 147.61 million yuan, a significant increase of 419.06% due to increased bank borrowings[36]. - Cash and cash equivalents increased to ¥968,317,040.60, representing 41.07% of total assets, up from 34.50% at the end of the previous year[38]. - Accounts receivable decreased by 35.28% to ¥156,645,125.94, attributed to a decline in revenue in Q2 2021 compared to Q4 2020[38]. - Short-term borrowings rose significantly by 933.76% to ¥303,045,461.01, primarily due to increased bank financing[38]. - The company reported a net cash flow from financing activities net amount of CNY 147,609,298.39, recovering from a net outflow of CNY 46,264,067.61 in the first half of 2020[133]. Environmental Compliance - The company has established a comprehensive environmental management system and achieved ISO14001 certification, ensuring compliance with pollution discharge standards[58]. - The company has implemented a three-tier wastewater treatment system, effectively managing wastewater and solid waste according to environmental regulations[60]. - The company reported no exceedance of pollution discharge limits, demonstrating adherence to environmental standards[59]. - Environmental protection expenditures may rise as stricter regulations are anticipated, requiring increased investment in environmental measures[48]. Shareholder and Governance Matters - The company has committed to not transferring or entrusting shares held prior to the IPO for a period of 36 months[67]. - The company has a lock-up period for major shareholders, which extends to 36 months from the date of listing[68]. - The company will comply with regulations set by the China Securities Regulatory Commission and the Shanghai Stock Exchange regarding shareholding reductions[75]. - The controlling shareholder has committed not to interfere with the company's management or infringe on its interests, ensuring the fulfillment of return compensation measures[93]. Risk Factors - The company faces risks related to fluctuations in raw material costs, particularly for automotive interior leather, which could impact profit margins[46]. - High customer concentration risk exists, as the company's performance is closely tied to the demand from major automotive manufacturers and suppliers[46]. - The automotive industry downturn poses a risk to the company's product demand, with a potential decline in sales revenue if the market continues to shrink[48]. - Fluctuations in exchange rates could affect the cost of imported raw materials and revenue from foreign sales, impacting overall financial performance[48]. Accounting and Financial Reporting - The company adheres to the enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position and operating results[158]. - The accounting period for the company runs from January 1 to December 31 each year[159]. - The company’s financial statements are prepared based on the principle of continuous operation[155]. - The company assesses expected credit losses based on the risk of default, with the loss amount being the present value of the difference between all contractual cash flows and expected cash flows[173].

Financial Performance - Net profit attributable to shareholders increased by 102.31% to CNY 72,307,344.55 year-on-year[8] - Operating revenue rose by 61.93% to CNY 203,512,448.18 compared to the same period last year[8] - Basic earnings per share increased by 51.72% to CNY 0.44 compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses increased by 90.45% to CNY 65,630,556.50 year-on-year[8] - The company reported a significant increase in other income, which rose by 257.40% to ¥7,263,048.48 from ¥2,032,193.94, attributed to increased government subsidies[22] - The net profit for Q1 2021 reached ¥72,307,344.55, up 102.0% from ¥35,741,076.67 in Q1 2020[40] - The total profit for Q1 2021 was ¥79,216,661.25, which is a 90.5% increase from ¥41,569,373.19 in Q1 2020[40] Assets and Liabilities - Total assets increased by 5.18% to CNY 2,243,102,252.70 compared to the end of the previous year[8] - Total assets as of March 31, 2021, amounted to ¥2,243,102,252.70, up from ¥2,132,625,723.77 at the end of 2020[30] - Total liabilities as of March 31, 2021, were ¥336,625,937.31, compared to ¥315,261,993.94 at the end of 2020, reflecting a rise of 6.4%[35] - Total liabilities increased from CNY 426,641,248.95 to CNY 459,375,085.00, an increase of CNY 32,733,836.05[52] - The company’s total equity as of March 31, 2021, was ¥1,583,379,269.44, up from ¥1,519,793,316.64 at the end of 2020, indicating a growth of 4.2%[36] Cash Flow - Net cash flow from operating activities increased by 43.72% to CNY 134,143,368.47 year-on-year[8] - The net cash flow from operating activities in Q1 2021 was CNY 134.1 million, compared to CNY 93.3 million in Q1 2020, indicating a year-over-year increase of approximately 43.7%[45] - The cash inflow from sales of goods and services was approximately CNY 346.7 million, a significant increase from CNY 210.0 million in Q1 2020, representing a growth of about 64.8%[44] - The total cash outflow from investment activities in Q1 2021 was CNY 59.96 million, up from CNY 46.99 million in Q1 2020, reflecting an increase of about 27.5%[45] - The net cash flow from financing activities in Q1 2021 was CNY 60.8 million, a turnaround from a negative cash flow of CNY 57.4 million in Q1 2020[48] Shareholder Information - The number of shareholders reached 11,094 at the end of the reporting period[11] - The top shareholder, Zhuang Junxin, holds 25.30% of the shares, totaling 42,000,000 shares[11] Research and Development - Research and development expenses rose by 73.19% to ¥15,365,111.63, up from ¥8,871,799.85, indicating increased investment in technology innovation[22] - The company reported a significant increase in R&D expenses, which rose to ¥15,365,111.63 in Q1 2021 from ¥8,871,799.85 in Q1 2020, marking a growth of 73%[38] Operating Costs - Operating costs increased to ¥105,849,898.85, reflecting a 58.55% rise from ¥66,759,301.82 in the same period last year[22] - Total operating costs for Q1 2021 were ¥132,988,721.88, up from ¥85,468,611.17 in Q1 2020, reflecting a 55.5% increase[38] Other Financial Metrics - The weighted average return on net assets decreased by 1.50 percentage points to 4.16%[8] - The gross profit margin improved to 42.5% in Q1 2021 compared to 40.0% in Q1 2020[41] - The company recorded other comprehensive income after tax of ¥140,571.08, compared to a loss of ¥3,974.53 in Q1 2020[40] - The company’s financial expenses showed a significant improvement, with a net financial income of ¥2,516,064.51 in Q1 2021 compared to an expense of ¥594,819.04 in Q1 2020[41]

Financial Performance - The company's operating revenue for 2020 was CNY 808,233,625.13, representing a year-over-year increase of 22.81% compared to CNY 658,132,443.89 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 220,510,223.95, which is a 22.97% increase from CNY 179,316,925.91 in 2019[21]. - The net profit excluding non-recurring gains and losses was CNY 214.03 million, reflecting a growth of 27.95% year-on-year[44]. - The company reported a net profit of CNY 61,154,742.86 in Q4 2020, with total revenue for the quarter at CNY 240,740,668.19[24]. - The total assets at the end of 2020 reached CNY 2,132,625,723.77, a 126.06% increase from CNY 943,404,300.03 at the end of 2019[21]. - The basic earnings per share for 2020 was CNY 1.72, up 19.44% from CNY 1.44 in 2019[22]. - The weighted average return on equity for 2020 was 27.69%, a decrease of 6.53 percentage points from 34.22% in 2019[22]. - The company reported a total revenue of 4,200 million for the year, maintaining the same level as the previous year[188]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2020, representing a growth of 15% year-over-year[189]. Dividend and Shareholder Information - The board proposed a cash dividend of 7.5 RMB per 10 shares, totaling 124.5 million RMB based on a total share capital of 166 million shares as of December 31, 2020[5]. - The company has not distributed profits in 2018 and 2019 due to development needs, with a cash dividend policy in place to ensure stable returns to shareholders[88]. - The company has committed to a 36-month lock-up period for shares held by major shareholders, including the actual controller and significant shareholders[90]. - The company will publicly disclose any failure to meet lock-up commitments and provide reasons for such failures[92]. - The company’s major shareholders include Mingxin Asset and Dechuang Management, who have also made long-term commitments regarding share transfers[91]. - The company plans to release 42 million restricted shares for trading on November 24, 2023, held by major shareholders[180]. - The total remuneration for all directors, supervisors, and senior management was 8.8372 million yuan[194]. Risk Management - The report includes a detailed risk description in the section discussing operational conditions and analysis, highlighting potential risks faced by the company[7]. - The company faces risks from raw material price fluctuations, particularly for leather, which significantly impacts gross margins[80]. - High customer concentration poses a risk, as the company's performance is closely tied to the demand from major automotive manufacturers[81]. - The company has established a strict accounts receivable management system to mitigate risks associated with increasing accounts receivable[82]. - Environmental protection expenditures may rise due to stricter regulations, potentially impacting operational costs[83]. - The automotive industry's downturn could lead to decreased demand for the company's products, affecting sales and revenue[83]. Environmental and Sustainability Initiatives - The company emphasizes the importance of environmental protection in its production processes, aligning with global trends towards sustainable practices[11]. - The company has established a clean production system for natural leather manufacturing, focusing on green technology and low VOC emissions[155]. - The company has invested in research and development for environmentally friendly leather materials and production processes, successfully mastering advanced technologies[155]. - The company has implemented strict environmental management practices and has obtained ISO14001 certification[155]. - The company has a commitment to employee welfare, providing support for continuing education and housing assistance[155]. - The management team emphasized the importance of sustainability, committing to a 40% reduction in carbon emissions by 2025[191]. Research and Development - The company has invested heavily in technology research and development, resulting in 73 patents, including 6 invention patents and 66 utility model patents as of December 31, 2020[36]. - The company focuses on the research, clean production, and sales of new materials for automotive interiors, forming an integrated business system from material research to end application[32]. - New product development efforts are focused on innovative leather solutions, with an investment of 50 million allocated for R&D in 2021[190]. Operational Efficiency and Strategy - The company has established a modern and systematic operational system through continuous investment in intelligent, digital, and lean production[37]. - The company aims to enhance its brand image and customer recognition while expanding its market presence[37]. - The company plans to strictly manage raised funds and accelerate the construction speed of investment projects to achieve expected benefits[113]. - The company aims to enhance operational efficiency, targeting a reduction in production costs by 10% through process optimization initiatives[190]. - The management team remains committed to strategic acquisitions to drive growth and improve operational efficiency in the coming years[188]. Financial Management - The company has engaged in various types of financial management, including non-guaranteed floating income and dynamic income types[129]. - The company has successfully completed several financial management projects, demonstrating effective asset recovery strategies[136]. - The expected annualized return rate for entrusted financial management is between 2.9% and 3.2%[148]. - The company has not reported any overdue amounts in its financial management activities, reflecting strong performance in asset management[126]. - The company has confirmed that all funds from the financial management projects have been recovered, indicating a strong performance in asset management[138]. Corporate Governance - The company has established measures to resolve competition and related party transactions involving its actual controller and major shareholders[91]. - The company will adhere to regulations set by the China Securities Regulatory Commission regarding share transfer restrictions for directors and senior management[92]. - The company has maintained compliance with legal procedures in its financial management practices, ensuring transparency and accountability[132]. - The company has a total of 1,000 million in entrusted financial management amounts due to mature in December 2020[152]. - The company has not reported any significant related party transactions during the reporting period[124]. Market and Industry Trends - In 2020, China's automotive production and sales reached 25.225 million and 25.311 million units, respectively, with a year-on-year decline of 2% and 1.9%[34]. - The automotive industry showed resilience in 2020, with a significant recovery in production and sales after the initial impact of the COVID-19 pandemic[40]. - New energy vehicle sales in 2020 exceeded 1.2 million units, marking a year-on-year growth of 14.6%[74]. - The company aims to become a leader in automotive interior materials, focusing on high-value products and expanding into the electric vehicle market[76].