Dividend and Share Capital - The company plans to distribute a cash dividend of 10 RMB per 10 shares, totaling 100 million RMB (including tax) based on a total share capital of 100 million shares as of December 31, 2021, resulting in a cash dividend payout ratio of 55.43%[6]. - The company intends to increase its share capital by 3 shares for every 10 shares held, raising the total share capital from 100 million to 130 million shares[6]. - The company will increase its total share capital to 130 million shares by distributing 3 additional shares for every 10 shares held, using capital reserves[128]. - The company’s cash dividend policy requires that at least 10% of the annual distributable profit be distributed in cash, and the cumulative cash distribution over the last three years must be at least 30% of the average annual distributable profit[124]. - The company’s cash dividend ratio will vary based on its development stage, with a minimum of 80% for mature stages without major capital expenditures[125]. - The board of directors will consider industry characteristics, development stage, and operational needs when proposing cash dividend policies[125]. - The total distributable profit as of December 31, 2021, is RMB 361,924,845.85, with a net profit attributable to shareholders of RMB 180,408,690.23 for the year[127]. - The company emphasizes continuous and stable returns to investors while ensuring sustainable development[127]. Financial Performance - The company achieved operating revenue of CNY 642,617,939.96 in 2021, representing a 74.22% increase compared to the previous year[27]. - Net profit attributable to shareholders reached CNY 180,408,690.23, a growth of 67.77% year-over-year, primarily due to a significant increase in sales of sealing materials[28]. - The net cash flow from operating activities was CNY 30,639,685.94, a decrease of 62.37% from the previous year, mainly due to increased cash payments for materials and semi-finished products[28]. - Total assets at the end of 2021 amounted to CNY 1,239,596,428.89, up 138.35% from the end of the previous year, driven by funds raised from a public stock issuance and increased inventory and accounts receivable[28]. - The net assets attributable to shareholders increased to CNY 1,143,958,956.69, reflecting a 137.37% growth year-over-year, attributed to capital raised from stock issuance and increased net profit[28]. - Basic earnings per share rose to CNY 1.97, a 37.76% increase compared to the previous year, driven by the growth in net profit[26]. - The weighted average return on equity decreased to 20.20%, down 4.55 percentage points from the previous year[27]. - The company reported quarterly revenues of CNY 152,216,672.69, CNY 182,261,226.01, CNY 159,442,310.40, and CNY 148,697,730.86 for Q1, Q2, Q3, and Q4 respectively[29]. - The net profit attributable to shareholders for the fourth quarter was CNY 29,988,900.67, showing a decline compared to earlier quarters[30]. Research and Development - The company holds 22 core technology patents, including 11 invention patents, and has participated in the formulation of over 10 national and industry standards[52]. - The company is actively involved in R&D projects, including high-strength water pool materials and new yacht materials, enhancing its technological advantages[52]. - Research and development expenses increased by 80.75% to 22.19 million yuan, reflecting a commitment to innovation[61]. - The company has developed several new products, including anti-static reinforced duct fabric and flame-retardant environmentally friendly materials[106]. - The company has a strong focus on R&D, with multiple patents related to composite materials and production processes[106]. Market and Competitive Position - The company continued to expand both domestic and international markets, utilizing online communication to overcome restrictions from the pandemic, and maintained a good growth momentum in business scale[37]. - The company focused on product innovation and development of new technologies to meet specialized, differentiated, and customized market demands[37]. - The industry faced challenges in 2021, with a 13.3% decline in revenue for large-scale enterprises in the industrial textile sector, while the company managed to grow its revenue significantly[39]. - The company operates in a textile industry cluster in Haining, Zhejiang, enhancing its competitive advantage[58]. - The company faces market competition risks, requiring continuous improvement in product R&D and quality to maintain its competitive advantage[91]. Governance and Compliance - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, including rules for shareholder meetings and board operations[131]. - The company is committed to optimizing its governance structure and improving internal control mechanisms to enhance overall operational efficiency[98]. - The company held 4 shareholder meetings during the reporting period, ensuring compliance with relevant laws and regulations[99]. - The board of directors convened 8 meetings, adhering to the company's articles of association and procedural rules[100]. - The supervisory board held 8 meetings, ensuring independent oversight of the board's operations and company finances[100]. - The company strictly follows information disclosure obligations, ensuring transparency and timely communication with shareholders[100]. - The company has not reported any significant deficiencies in internal control during the reporting period[132]. Environmental Responsibility - The company has implemented environmental protection measures, including the installation of pollution control facilities, to ensure compliance with environmental standards[135]. - The company has conducted third-party monitoring of pollutant emissions, with results meeting the required standards[136]. - The company has undertaken a low-nitrogen transformation project for its natural gas boiler to effectively reduce nitrogen oxide emissions[138]. - The company has replaced some diesel forklifts with new energy forklifts to further decrease carbon emissions[138]. - The company donated 100,000 yuan to local charitable initiatives during the reporting period[139]. Shareholder Structure and Commitments - 华生投资 holds 1,781.25 million shares, accounting for 17.81% of the company[107]. - 华册投资 holds 375.00 million shares, representing 3.75% of the company[107]. - The controlling shareholder commits to not reducing their holdings of the issuer's shares for 36 months from the date of the issuer's stock listing[148]. - The controlling shareholder must disclose their reduction plan 15 trading days prior to the first sale, including the number of shares, source, time, method, price range, and reason for reduction[146]. - The company has committed to ensuring that the prospectus does not contain any false records, misleading statements, or major omissions, and will bear legal responsibility for its authenticity, accuracy, and completeness[166]. - The company has signed commitments to optimize investment returns and protect the rights of investors, particularly minority shareholders, by not transferring benefits unfairly or engaging in unrelated investments[171]. - The company will disclose any failure to fulfill commitments and apologize to shareholders and the public if it does not meet its obligations[173]. Audit and Financial Reporting - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team, including the CEO and accounting head[5]. - The company has appointed Tianjian Accounting Firm as the auditor for the 2021 fiscal year, with an audit fee of 600,000 RMB[180]. - There were no significant lawsuits or arbitration matters reported for the year[181]. - The company has not engaged in any significant related party transactions during the reporting period[183].

Financial Performance - The company's revenue for Q3 2021 reached ¥159,442,310.40, representing a year-over-year increase of 54.81%[5] - Net profit attributable to shareholders for Q3 2021 was ¥46,000,444.21, up 44.84% compared to the same period last year[5] - Year-to-date revenue as of Q3 2021 totaled ¥493,920,209.10, reflecting a significant increase of 110.09% year-over-year[5] - Year-to-date net profit attributable to shareholders reached ¥148,080,884.61, marking a 113.46% increase compared to the previous year[5] - Basic earnings per share for Q3 2021 were ¥0.48, an increase of 14.29% year-over-year[6] - The company's gross profit for the first three quarters of 2021 was RMB 205,361,296.39, compared to RMB 102,182,917.10 in the previous year, indicating a gross margin improvement[19] - The net profit for Q3 2021 was CNY 150,419,789.56, a significant increase from CNY 70,380,958.63 in Q3 2020, representing a growth of approximately 113%[20] - The total profit for Q3 2021 was CNY 174,770,989.42, compared to CNY 81,935,556.86 in Q3 2020, reflecting an increase of approximately 113%[20] Assets and Equity - Total assets at the end of Q3 2021 amounted to ¥1,220,079,332.67, a 134.60% increase from the previous year[6] - Shareholders' equity attributable to the company reached ¥1,113,970,056.02, up 131.15% year-over-year[6] - As of September 30, 2021, the total assets of the company amounted to RMB 1,220,079,332.67, up from RMB 520,065,051.68 at the end of 2020, reflecting a growth of approximately 134.0%[17] - The total equity of the company reached RMB 1,113,970,056.02 as of September 30, 2021, compared to RMB 481,922,445.40 at the end of 2020, representing an increase of approximately 131.0%[17] Cash Flow - The cash flow from operating activities showed a significant decline of 97.79% year-to-date, primarily due to increased prepayments for raw materials[10] - Cash flow from operating activities for the first three quarters of 2021 was CNY 827,739.28, a decrease from CNY 37,454,700.05 in the same period of 2020[22] - The company’s total cash inflow from operating activities was CNY 418,658,448.80 in the first three quarters of 2021, compared to CNY 224,727,305.69 in the same period of 2020, showing a growth of approximately 86%[21] - Cash and cash equivalents as of September 30, 2021, were RMB 544,575,603.78, a significant increase from RMB 116,425,086.30 at the end of 2020, indicating a growth of approximately 367.0%[15] - Cash and cash equivalents at the end of Q3 2021 totaled CNY 544,575,603.78, a significant increase from CNY 101,520,013.77 at the end of Q3 2020[22] Liabilities - The company's total liabilities as of September 30, 2021, were RMB 106,109,276.65, compared to RMB 38,142,606.28 at the end of 2020, indicating an increase of about 178.0%[17] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 7,533[12] Research and Development - Research and development expenses for the first three quarters of 2021 totaled RMB 15,482,232.74, which is a 113.5% increase from RMB 7,267,632.51 in the same period of 2020[19] Financing Activities - The company raised CNY 512,354,000.00 from financing activities in Q3 2021, compared to CNY 1,000,000.00 in Q3 2020, indicating a substantial increase in financing[22] Other Information - The company has not disclosed any new product launches or technological developments in the provided content, focusing instead on financial performance metrics[15] - There are no significant mergers or acquisitions reported in the current financial period, as indicated in the content provided[15] - The company reported a non-recurring gain of ¥2,279,955.17 for Q3 2021, contributing to the overall profit[10] - The company experienced a credit impairment loss of CNY -5,749,197.14 in Q3 2021, compared to CNY -2,239,366.40 in Q3 2020, indicating a worsening in credit quality[20]

Financial Performance - The company achieved operating revenue of RMB 334.48 million, a 153.19% increase compared to the same period last year[17]. - The net profit attributable to shareholders reached RMB 102.48 million, reflecting a 164.71% growth year-on-year[17]. - The basic earnings per share increased to RMB 1.23, up 136.54% from the previous year[18]. - The weighted average return on equity was 14.77%, an increase of 5.24 percentage points compared to the same period last year[18]. - Total assets at the end of the reporting period were RMB 1,122.41 million, a 115.82% increase from the end of the previous year[18]. - The net cash flow from operating activities was RMB 4.15 million, a decrease of 85.63% compared to the same period last year[19]. - The net assets attributable to shareholders increased to RMB 1,066.03 million, a 121.20% rise from the end of the previous year[18]. - The gross profit margin was 6.0%, a decrease of 7.2 percentage points year-on-year[37]. - Research and development expenses increased by 82.48% to 9.28 million RMB, reflecting a focus on innovation[49]. - The company reported a comprehensive income total of CNY 102,481,383.38 for the first half of 2021[137]. Revenue and Growth Drivers - The company attributed revenue and profit growth to a significant increase in the sales of airtight materials during the reporting period[19]. - The export value of industrial textiles reached 3.5 billion USD, a year-on-year increase of 38.0%[37]. - The company plans to implement projects such as the "450 million square meters of filament base cloth construction project" to strengthen its core competitiveness[47]. Research and Development - The company has established a high-level R&D team, focusing on independent research and development in plastic composite materials, particularly airtight materials[35]. - The company holds 21 core technology patents, including 11 invention patents, enhancing its competitive edge[39]. - The company is enhancing product research and technological innovation, aiming to improve existing production processes and explore new product applications to create additional profit growth points[59]. Production and Sales Strategy - The company specializes in the research, production, and sales of plastic composite materials, with main products categorized into airtight materials and flexible materials[24]. - Key products include air-tight materials such as filament air cushion materials and inflatable yacht materials, which are used in sports and leisure applications[25]. - The company employs a procurement model that ensures a safety stock of one to two months for key raw materials, optimizing costs through centralized purchasing[31]. - The production model is primarily self-manufactured, with a focus on "production based on sales" to meet short delivery times for customers[32]. - The sales strategy includes direct sales to downstream customers and participation in various domestic and international trade shows to enhance market presence[34]. Financial Position and Assets - Cash and cash equivalents increased by 379.58% to ¥558,349,657.97, representing 49.75% of total assets, primarily due to funds raised from public offerings[51]. - Accounts receivable rose by 63.25% to ¥217,301,748.99, accounting for 19.36% of total assets, driven by increased operating revenue[51]. - Inventory increased by 40.32% to ¥84,170,031.97, making up 7.50% of total assets, due to higher raw material purchases and increased orders[51]. - Contract liabilities grew by 91.05% to ¥1,680,171.46, representing 0.15% of total assets, mainly due to an increase in advance payments received[51]. - The company’s fixed assets increased by 15.95% to ¥107,412,172.92, representing 9.57% of total assets[51]. Risks and Challenges - The company faces risks from market competition, particularly in the production of air-tight materials and flexible materials, which could impact revenue and profit[56]. - The company is exposed to risks from fluctuations in raw material prices, which significantly affect production costs[58]. - The company faces risks related to product substitution if it cannot timely update production processes and technology standards according to market demands[60]. - High research and development costs in the plastic composite materials industry may adversely affect profitability if substantial results are not achieved[60]. - The company has implemented varying credit policies based on customer cooperation duration and transaction amounts, which may lead to increased accounts receivable and cash flow risks[60]. Shareholder Commitments and Governance - The company has committed to a share lock-up period of 36 months from the date of its IPO, during which shareholders cannot transfer or manage their shares[80]. - Shareholders are restricted from selling more than 25% of their total shares held annually while serving as directors or senior management, with additional restrictions on buying and selling within specified timeframes[77]. - The company has established a long-term commitment to avoid conflicts of interest and related party transactions[76]. - The commitments made by shareholders are designed to ensure stability and confidence in the company's stock post-IPO[80]. - The company has received commitments from major shareholders to adhere to these restrictions, reinforcing governance and compliance measures[80]. Accounting and Financial Reporting - The financial report indicates that the company adheres to the accounting standards and accurately reflects its financial status and operating results[143]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months[142]. - The company’s financial statements are prepared based on the principle of continuous operation[141]. - The company has established specific accounting policies for financial instruments, fixed asset depreciation, and revenue recognition[142]. - The company recognizes dividends from equity instruments as profit or loss, while other gains or losses are recorded in other comprehensive income[151]. Lease and Taxation - The company does not apply expected credit loss measurement for certain financial instruments, including long-term receivables and debt investments[165]. - The main tax rates applicable include a 5% and 13% VAT, a 15% corporate income tax, and a 12% property tax on rental income[200]. - The company does not have any tax incentives applicable at this time[200].