Group 1: Company Overview and Market Position - The company specializes in high-dispersion silica, which is primarily customized based on client specifications, with only a few companies globally mastering the core manufacturing technology [1] - Major competitors in the international market include Evonik, PPG, and Solvay, with significant market shares held by these companies [1] - The company has a high customer retention rate, with international clients typically engaging in long-term contracts [1] Group 2: Production Capacity and Utilization - The company has a total production capacity of 75,000 tons, distributed across several production bases, including Wuxi, Anhui, Thailand, and Fujian [1] - The capacity utilization rate is relatively low, particularly in the Thailand factory due to delays in customer inspections caused by the pandemic [1] - The company anticipates a significant increase in production capacity in Thailand as pandemic restrictions ease [2] Group 3: Impact of Commodity Prices - The company's products are not directly linked to crude oil prices, but rising energy costs due to natural gas price fluctuations may impact overall costs [2] - The company has a diversified energy composition, which helps manage energy cost fluctuations [2] Group 4: Future Development Strategy - The company plans to implement fundraising projects to expand production capacity and achieve self-sufficiency in raw materials [3] - There is a focus on global expansion, with the Thailand subsidiary serving as a model for future overseas investments [3] - The company aims to develop high-value-added products and enter new application fields, breaking the technological monopoly of foreign chemical companies [3] Group 5: Thailand Factory Investment and Profitability - The first phase of the Thailand factory, which produces high-dispersion silica, had an investment of $45 million, with future investments expected to be lower [3] - The operational costs in Thailand are more stable compared to domestic costs, providing a competitive advantage [3] - The company is preparing for the second phase of the Thailand factory based on the gradual release of production capacity and increasing customer demand [3]

Financial Performance - The company's operating revenue for Q3 2021 was ¥331,458,900.63, representing a year-on-year increase of 17.66%[6] - The net profit attributable to shareholders for the same period was ¥67,636,352.30, reflecting a growth of 24.26% compared to the previous year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥66,357,956.05, up 24.29% year-on-year[6] - The basic earnings per share for Q3 2021 was ¥0.16, an increase of 9.64% from the same period last year[6] - Total operating revenue for the first three quarters of 2021 reached ¥1,035,551,771.30, a significant increase of 43.4% compared to ¥722,451,329.74 in the same period of 2020[25] - Net profit for the first three quarters of 2021 was ¥209,796,597.69, representing a 46.2% increase from ¥143,609,271.62 in 2020[28] - Earnings per share for the first three quarters of 2021 was ¥0.51, compared to ¥0.39 in the same period of 2020[28] - The company reported a total comprehensive income of ¥182,128,669.64 for the first three quarters of 2021, compared to ¥123,042,658.20 in 2020[28] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥2,718,902,446.37, showing a slight increase of 0.32% compared to the previous year[8] - As of September 30, 2021, the company's current assets totaled approximately RMB 1.76 billion, a slight increase from RMB 1.73 billion as of December 31, 2020, reflecting a growth of about 2%[20] - Total liabilities increased to approximately RMB 344.87 million from RMB 310.52 million, reflecting a growth of about 11%[22] - The company's total equity attributable to shareholders decreased to approximately RMB 2.37 billion from RMB 2.40 billion, a decline of about 1%[22] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥256,086,590.30, which increased by 54.31% compared to the same period last year[6] - Cash flow from operating activities generated ¥256,086,590.30, up from ¥165,952,753.08 in the first three quarters of 2020[31] - The net cash flow from investing activities was -$403.09 million, compared to -$128.73 million in the previous period[34] - The net cash flow from financing activities was -$207.75 million, an increase from -$81.19 million year-over-year[34] - The total cash and cash equivalents at the end of the period amounted to $793.88 million, up from $515.96 million in the previous period[34] - The company experienced a negative impact of -$2.77 million from exchange rate fluctuations on cash and cash equivalents[34] - The company distributed dividends and interest payments totaling $209.11 million, significantly higher than $76.76 million in the previous period[34] Operational Efficiency and Strategy - The company plans to expand its market presence through new product development and strategic partnerships in the upcoming quarters[24] - The company has allocated resources for research and development, focusing on innovative technologies to enhance product offerings[24] - The company aims to improve operational efficiency and reduce costs through process optimization and technology integration[24] Research and Development - Research and development expenses rose to ¥37,493,582.48, a 73% increase compared to ¥21,682,224.99 in the same period last year[25] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,532, with the largest shareholder holding 59.35% of the shares[14] - The company raised ¥624,715,956.65 from its IPO in December 2020, leading to an increase in total shares and a dilution of earnings per share[9] Miscellaneous - The weighted average return on equity for the reporting period was 2.88%, a decrease of 0.31 percentage points year-on-year[6] - The company reported a net profit margin of approximately 38% for the first nine months of 2021, consistent with the previous year's performance[24] - The company's cash and cash equivalents decreased to approximately RMB 798.91 million from RMB 1.17 billion, representing a decline of about 32%[18] - Accounts receivable increased to approximately RMB 354.10 million, up from RMB 315.51 million, indicating a growth of about 12%[18] - Inventory rose to approximately RMB 145.74 million, compared to RMB 116.38 million, marking an increase of about 25%[20] - Total operating costs increased to ¥788,524,329.46, up 39.3% from ¥566,144,023.81 in the previous year[25] - The company’s total operating profit for the first three quarters of 2021 was ¥251,332,334.39, an increase from ¥156,868,138.79 in 2020[25] - The company’s tax expenses for the first three quarters of 2021 were ¥43,979,709.59, compared to ¥18,500,445.13 in the same period last year[25] - The beginning cash and cash equivalents balance was $1.15 billion, indicating a strong liquidity position at the start of the period[34] - The cash flow from operating activities was not detailed but is critical for assessing overall performance[34] - The company has not adopted the new leasing standards as of the reporting date[34] - The financial report was presented by key executives including the company leader and accounting heads, ensuring accountability and transparency[34]

Financial Performance - The company reported no profit distribution or capital reserve transfer for the first half of 2021[6]. - The financial report for the first half of 2021 has not been audited[5]. - The company's operating revenue for the first half of the year reached ¥704,092,870.67, representing a 59.75% increase compared to the same period last year[22]. - Net profit attributable to shareholders was ¥142,160,254.01, marking a 59.41% increase year-over-year[22]. - Basic earnings per share increased to ¥0.34, a rise of 41.67% compared to the same period last year[22]. - The total operating revenue for the first half of 2021 reached ¥704,092,870.67, a 59.8% increase compared to ¥440,746,225.95 in the same period of 2020[135]. - Net profit for the first half of 2021 was ¥142,160,248.06, representing a 59.4% increase from ¥89,178,354.30 in the first half of 2020[136]. - The total profit for the first half of 2021 was approximately ¥133 million, a 12.7% increase from ¥118 million in the same period of 2020[141]. Research and Development - The company has invested over 3% of its operating revenue in R&D annually, enhancing its technological leadership in precipitated silica[30]. - The company has obtained 33 invention patents and 114 utility model patents, covering production equipment and technology[32]. - Research and development expenses increased to ¥23,744,580.93, up from ¥12,908,385.12 in the first half of 2020, indicating a focus on innovation[135]. - The company has made significant investments in R&D, with R&D expenses increasing by 83.95% to 12.91 million yuan, focusing on expanding silica applications in various fields[41]. Production and Capacity - The company has a total production capacity of 330,000 tons, ranking third globally in the silica industry[27]. - The production volume of silica products was 123,861 tons, with sales volume at 124,351 tons, marking a significant year-on-year increase of approximately 49%[39]. - 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[36]. Market and Sales - The company focuses on high-performance materials for green tires and animal feed carriers, with significant growth in both export and domestic sales[27]. - The sales volume of high-dispersible silica surged by about 84% year-on-year, reaching a historical high, driven by the recovery of overseas markets and the increase in domestic tire greenification rates[39]. - The company achieved operating revenue of 704.09 million yuan, a year-on-year increase of 59.75%[39]. Financial Position - Cash and cash equivalents decreased by 38.26% to ¥724,990,838.43, accounting for 27.08% of total assets[45]. - Trade receivables increased by 21.77% to ¥384,199,826.96, representing 14.35% of total assets[45]. - Inventory rose by 17.78% to ¥137,082,352.46, making up 5.12% of total assets[45]. - Total assets decreased from ¥2,710,329,921.44 to ¥2,676,796,180.14, a decline of approximately 1.24%[126]. - Total liabilities increased from ¥310,519,562.87 to ¥361,393,765.54, an increase of approximately 16.36%[127]. Environmental Compliance - The company reported actual emissions of chemical oxygen demand at 13.47 tons, which is compliant with the local discharge standards[71]. - The company’s wastewater treatment facility has a processing capacity of 2,300 tons per day and is operating normally[75]. - The company has implemented a self-monitoring plan for environmental protection, ensuring compliance with national and local pollutant discharge standards[82]. - The company has upgraded its coal-fired boilers to gas boilers to improve energy efficiency and reduce pollutant emissions[87]. Corporate Governance - The board of directors confirmed that all members attended the meeting, ensuring the accuracy and completeness of the report[5]. - The company has committed to maintaining stock lock-up periods for its major shareholders for 36 months post-IPO, ensuring stability in shareholding[90]. - The company has committed to not transferring or misusing company assets for personal investments or consumption activities[93]. - There are no significant lawsuits or arbitration matters reported during the reporting period[99]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[136]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[193]. - Market expansion efforts are underway, targeting new geographical regions to increase market share and revenue streams[193].

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].