Financial Performance - The company's operating revenue for 2020 was RMB 1,055,278,399.58, a decrease of 11.41% compared to 2019[23]. - The net profit attributable to shareholders for 2020 was RMB 193,401,395.66, down 28.32% from the previous year[23]. - The net cash flow from operating activities was RMB 270,215,534.08, reflecting a decline of 12.91% year-on-year[23]. - Basic earnings per share for 2020 were RMB 0.53, a decrease of 28.38% compared to 2019[24]. - The weighted average return on equity was 11.25%, down 6.07 percentage points from the previous year[24]. - The gross profit margin for silica products was 36.32%, a decrease of 3.82 percentage points compared to the previous year[63]. - The net profit attributable to shareholders was CNY 193,401,400, a decline of 28.32% year-on-year, primarily due to foreign exchange losses of approximately CNY 40 million[55]. - Total assets at the end of 2020 reached CNY 2,710,329,900, reflecting a year-on-year growth of 34.62%[55]. Dividend Policy - The company plans to distribute a cash dividend of 5 RMB per 10 shares to all shareholders based on the total share capital as of the dividend distribution date[8]. - The company has established a cash dividend policy, distributing at least 20% of the annual distributable profit in cash dividends[131]. - In 2020, the company distributed cash dividends amounting to RMB 207,009,000, representing 107.04% of the net profit attributable to ordinary shareholders[133]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[7]. - The company is committed to ensuring the accuracy and completeness of the financial report[6]. - The company has not reported any instances of fund occupation or collection progress during the reporting period[149]. - The company has not experienced any significant accounting errors or changes in accounting policies that would impact its financial statements[150]. - The company has established a comprehensive internal management and control system, ensuring compliance with relevant laws and regulations, and has been recognized as one of the top ten industrial tax contributors in Xishan District in 2020[170]. Risk Management - The company has detailed risk factors related to its future development in the report[10]. - The company emphasizes that forward-looking statements do not constitute a substantive commitment to investors[9]. - The company faces risks from raw material price fluctuations, particularly sulfur and soda ash, which significantly impact production costs[120]. - The company has a comprehensive risk disclosure in the "Discussion and Analysis of Operating Conditions" section[10]. Research and Development - The company has established a research institute to enhance R&D capabilities and core competitiveness in silica products[35]. - The company has successfully developed three new products and applications during the reporting period, laying a solid foundation for future capacity release[53]. - Total R&D investment was ¥32,516,899.76, accounting for 3.08% of total operating revenue[73]. - The number of R&D personnel was 63, representing 9.60% of the total workforce[73]. - The company emphasizes technological innovation and plans to explore new energy-saving and environmentally friendly silica products[117]. Production and Capacity - The company is headquartered in Wuxi, Jiangsu Province, with a focus on silicon chemical products[19]. - The company’s total silica production capacity ranks third globally, with a core factory in Wuxi having a capacity of 150,000 tons, among the highest in the world[49]. - The company has become a leader in the domestic precipitated silica industry, maintaining a research and development investment ratio of over 3% of revenue in recent years[41]. - The company achieved a design capacity of 33,000 tons for the silica project with a capacity utilization rate of 59.87%[95]. - In May 2020, the Thailand factory commenced production, adding a capacity of 45,000 tons, and in December 2020, the Fujian factory added 55,000 tons[98]. Market and Sales - The sales model is integrated, with over 85% of sales conducted through direct sales contracts[35]. - The company’s products are recognized by major global tire manufacturers, with significant market presence in the rubber industry[43]. - The company reported a revenue of RMB 941,587,048.90 from direct sales, reflecting a decrease of 10.39% year-on-year[106]. - The company’s five largest customers accounted for 22.11% of total annual sales, while the five largest suppliers represented 34.12% of total annual purchases[69]. Environmental Responsibility - The company has implemented a green development strategy, focusing on ultra-low emissions and resource recycling, with its main products being green materials used in the production of eco-friendly tires[171]. - The company achieved a chemical oxygen demand (COD) discharge of 22.86 tons, which is below the limit of 40 mg/L, indicating compliance with environmental standards[177]. - The company has successfully reduced nitrogen oxide emissions to 2.49 tons, adhering to the limit of 200 mg/m3 as per the inorganic chemical industry pollution discharge standards[179]. - The company has committed to environmental protection by implementing clean production practices throughout its product lifecycle, effectively reducing waste and emissions[176]. Corporate Governance - The controlling shareholder, Huawei International, committed not to transfer or manage shares for 36 months post-IPO, with an automatic extension of 6 months if stock prices fall below the IPO price for 20 consecutive trading days within the first 6 months[137]. - The actual controller also agreed to similar share transfer restrictions for 36 months post-IPO, with a 6-month extension under the same conditions as above[137]. - Directors and senior management committed to not transfer shares for 12 months post-IPO, with a 6-month extension if stock prices fall below the IPO price for 20 consecutive trading days[140]. - The company has made long-term commitments regarding profit distribution, which are detailed in the prospectus disclosed on the Shanghai Stock Exchange[140]. Social Responsibility - The company has actively engaged in social responsibility initiatives during the challenging economic conditions of 2020[169]. - The company donated a total of RMB 1.2 million to support COVID-19 relief efforts, including RMB 200,000 specifically for Wuhan and RMB 500,000 for the charity in Xishan District[172].

Financial Performance - Operating revenue for the reporting period was CNY 338,395,298.18, representing a growth of 43.50% year-on-year[11]. - Net profit attributable to shareholders was CNY 67,004,025.28, an increase of 88.99% compared to the same period last year[11]. - Basic earnings per share increased to CNY 0.16, a rise of 62% compared to the previous year[11]. - The company reported a total profit of approximately ¥81.99 million for Q1 2021, compared to ¥43.88 million in Q1 2020, marking an increase of 87.0%[47]. - Net profit for Q1 2021 reached approximately ¥67.00 million, representing an increase of 89.2% compared to ¥35.45 million in Q1 2020[47]. - The company reported a net profit margin improvement, with undistributed profits rising to ¥1,095,104,782.62 from ¥1,037,697,079.56, an increase of about 5.5%[38]. Cash Flow - Net cash flow from operating activities was CNY 105,793,529.47, up 109.06% year-on-year[11]. - The net cash flow from operating activities was RMB 105,793,529.47, significantly up from RMB 50,603,685.56 in the same period last year, marking a 108.5% increase[58]. - The total cash outflow from operating activities was RMB 158,863,630.55, down 36.2% from RMB 249,010,501.54 in Q1 2020[58]. - The cash outflow for purchasing goods and services was RMB 87,729,484.19, down 51.6% from RMB 181,257,679.36 in the same quarter last year[58]. - The company recorded a financial expense of approximately -¥3.82 million in Q1 2021, compared to -¥3.18 million in Q1 2020[44]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 2,840,342,524.51, an increase of 4.80% compared to the end of the previous year[11]. - Total liabilities increased to ¥382,283,473.24, up from ¥310,519,562.87, representing a growth of approximately 23.1%[33]. - Total equity rose to ¥2,458,059,051.27, compared to ¥2,399,810,358.57, reflecting an increase of about 2.4%[33]. - Current assets totaled ¥1,836,153,609.05, an increase from ¥1,720,955,543.44, marking a growth of approximately 6.7%[37]. - Accounts receivable increased to ¥349,276,387.88 from ¥301,809,916.35, showing a rise of about 15.7%[37]. Shareholder Information - The total number of shareholders at the end of the reporting period was 24,312[14]. - The top shareholder, Huawei International Development Limited, holds 59.86% of the shares[14]. Operating Costs and Expenses - The company's operating costs rose by 53.18% to ¥233,920,732.06, attributed to increased sales volume and the pandemic's effects in the previous year[20]. - The company's sales expenses decreased significantly by 93.13% to ¥987,271.72, as sales freight was reclassified to operating costs[20]. - Research and development expenses increased to approximately ¥11.39 million in Q1 2021, up 64.1% from ¥6.91 million in Q1 2020[44]. Other Income and Expenses - The company received government subsidies amounting to CNY 4,128,326.93 related to its normal business operations[13]. - Non-operating income and expenses totaled CNY 3,011,316.78 after tax effects[13]. - The company's other income rose by 104.92% to ¥1,347,704.31, mainly due to an increase in tax refunds[20]. - The company's credit impairment losses increased by 266.71% to -¥1,402,972.59, primarily due to an increase in accounts receivable and higher bad debt provisions[20].