Financial Performance - The company's operating revenue for 2020 was CNY 897,427,292.29, a decrease of 11.48% compared to CNY 1,013,854,511.82 in 2019[26]. - The net profit attributable to shareholders for 2020 was CNY 122,670,826.07, down 21.69% from CNY 156,648,721.74 in 2019[26]. - The net cash flow from operating activities decreased by 56.50% to CNY 96,244,805.81 from CNY 221,272,727.98 in 2019[26]. - The basic earnings per share for 2020 was CNY 0.44, a decline of 30.16% from CNY 0.63 in 2019[29]. - The weighted average return on equity decreased by 10.56 percentage points to 10.94% in 2020 from 21.50% in 2019[29]. - The total assets increased by 63.73% to CNY 1,850,930,889.04 at the end of 2020 from CNY 1,130,477,891.58 at the end of 2019[26]. - The net assets attributable to shareholders increased by 108.11% to CNY 1,683,249,745.66 at the end of 2020 from CNY 808,814,816.86 at the end of 2019[26]. - The company reported a significant increase in cash flow from investing activities due to the initial public offering in August 2020[29]. - The company experienced a decline in customer demand due to the impact of the COVID-19 pandemic, affecting revenue[29]. Dividend Policy - The company plans to distribute a cash dividend of 3 RMB per 10 shares, totaling 99.6 million RMB for the year 2020, which represents 81.19% of the net profit attributable to ordinary shareholders[157]. - The cash dividend policy stipulates that the cash distribution should not be less than 10% of the distributable profit for the year, with higher percentages based on the company's development stage and capital expenditure plans[152]. - The company has established a stable profit distribution policy, prioritizing cash dividends while ensuring sustainable development and operational capability[150]. - In 2020, the company did not issue any stock dividends or bonus shares, maintaining a focus on cash distribution[157]. - The company’s cash dividend conditions include positive distributable profits, a clean audit report, sufficient cash reserves, and no major capital expenditure plans exceeding specified thresholds[149]. Audit and Compliance - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants[5]. - The company emphasizes the importance of accurate financial reporting and has declared the completeness of its financial statements[4]. - The company has confirmed no non-operating fund occupation by controlling shareholders or related parties[8]. - The company has not reported any violations in decision-making procedures regarding external guarantees[8]. - The company has confirmed that all board members attended the board meeting[5]. - The company has stated that there are no significant omissions or misleading statements in the annual report[4]. Market Position and Strategy - The company maintains a leading position in the functional silane industry, contributing over 90% of its revenue from silane coupling agents, primarily used in rubber and tire, construction, and textile industries[40]. - The company has achieved a production capacity of 43.05 million tons/year for functional silanes, with a production output of 27.85 million tons, marking a year-on-year growth of 6.6%[44]. - The company is recognized as a high-tech enterprise and has established three R&D departments, enhancing its competitive edge in the market[45]. - The company has implemented a "sales-driven production" model, ensuring production aligns with market demand and customer specifications[41]. - The company is focused on sustainable development through a circular economy model, integrating production processes to enhance environmental friendliness[40]. Research and Development - The company has obtained 20 authorized invention patents, including 5 new patents in 2020, and has over 20 new products and technologies[55]. - The company’s R&D expenses decreased by 27.66% to CNY 25.37 million in 2020[56]. - Research and development expenses totaled ¥25.37 million, accounting for 2.83% of total revenue, with 166 R&D personnel representing 15.70% of the total workforce[73]. - The company intends to focus on R&D to expand its product range of functional silanes, leveraging its research capabilities to enhance market competitiveness[119]. Risks and Challenges - The company has outlined potential risks in its future development in the report[8]. - The company recognizes potential risks from ongoing global changes, including the impact of the pandemic and rising raw material prices, and plans to adapt its operational strategies accordingly[124]. - The company faces risks from macroeconomic fluctuations and downstream capacity oversupply, which could negatively impact product demand, sales prices, and quantities sold[129]. - The company is experiencing intensified market competition, necessitating continuous market exploration and technological advancements to maintain its competitive edge[131]. - There is a risk of talent loss, particularly among core technical personnel, which could adversely affect ongoing technology development projects[134]. Environmental and Safety Measures - The company has established a complete safety production and environmental protection system, investing in various safety and environmental facilities[51]. - Environmental protection measures are in place, but the company still faces risks of pollution incidents and increased compliance costs due to stricter regulations[141]. Financial Management - The company has entrusted cash asset management with a total of RMB 500 million from raised funds and RMB 118.66 million from self-owned funds[197]. - The unexpired balance of entrusted financial management amounts to RMB 371 million for raised funds and RMB 92.32 million for self-owned funds[197]. - The company has a total of RMB 46 million in entrusted financial management with an annualized return rate of 1.89%[199]. - The company has invested RMB 16 million in a bank financial product with an annualized return rate of 1.95%, which is yet to be recovered[199]. Shareholder Commitments - The company guarantees that there are no competitive business situations with related parties and will not engage in any competing businesses in the future[173]. - Related parties must notify the issuer of any competitive business opportunities and will not provide support to competing entities[173]. - The company must ensure that no funds, assets, or resources are occupied by related parties without proper return or regulation[173]. - Any violation of the commitments by the company or related parties will result in all related gains being returned to the issuer, with future dividends suspended until compliance[173].

Financial Performance - Net profit attributable to shareholders of the listed company was CNY 97,690,767.40, a decrease of 15.01% year-on-year[18]. - Operating revenue for the period was CNY 698,438,741.14, down 8.29% from the same period last year[18]. - The net profit after deducting non-recurring gains and losses was CNY 83,519,711.85, a decrease of 27.07% year-on-year[18]. - Basic earnings per share decreased by 17.39% to CNY 0.38[21]. - The weighted average return on net assets was 10.37%, down 5.87 percentage points from the previous year[21]. - Net profit attributable to shareholders for Q3 2020 was ¥28,438,680.72, down from ¥34,675,397.53 in Q3 2019, indicating a decrease of approximately 17.5%[57]. - The company reported a total profit of CNY 28,864,170.97 for Q3 2020, down from CNY 32,605,944.73 in Q3 2019, indicating a decline of about 11.3%[64]. - The company’s total comprehensive income for Q3 2020 was ¥28,635,092.78, compared to ¥35,565,974.07 in Q3 2019, indicating a decrease of about 19.5%[57]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,976,132,777.60, an increase of 74.81% compared to the end of the previous year[18]. - The company's total equity increased by 33.33% to RMB 332,000,000.00, resulting from the public issuance of shares[32]. - The company's total liabilities increased significantly, reflecting ongoing investments in new projects and financial products[34]. - Total liabilities were reported at ¥318,157,571.77, slightly down from ¥321,663,074.72, indicating a decrease of around 1.6%[45]. - The total assets of the company increased to ¥1,991,887,160.53 from ¥1,098,919,904.20, showing a growth of about 81.5%[50]. - The total liabilities rose to ¥295,790,181.65, compared to ¥228,155,032.02 in the previous period, marking an increase of approximately 29.7%[50]. - Total current liabilities represent approximately 19.7% of total assets, suggesting a manageable short-term financial obligation[90]. Cash Flow - The net cash flow from operating activities was CNY 101,188,875.25, a decline of 34.65% compared to the previous year[18]. - Cash inflow from operating activities for the first three quarters of 2020 was CNY 508,749,356.81, a decrease of 4.0% compared to CNY 533,824,460.68 in the same period of 2019[69]. - Cash inflow from investment activities totaled CNY 721,542,138.78, significantly higher than CNY 237,323,418.98 in the previous year, marking an increase of 203.5%[73]. - Cash inflow from financing activities reached CNY 890,704,360.00, a substantial increase from CNY 137,787,029.80 in the previous year[73]. - The ending balance of cash and cash equivalents was CNY 626,841,414.69, up from CNY 68,572,541.48 at the end of the previous year[73]. Shareholder Information - The total number of shareholders at the end of the reporting period was 34,477[26]. - Major shareholders include Hongbai Chemical Co., Ltd. with a 22.78% stake and Hongbai (Asia) Group Co., Ltd. with a 19.32% stake[26]. Government Subsidies and Other Income - The company reported government subsidies related to normal business operations amounting to CNY 5,206,836.11[22]. - Other income surged by 1905.19% to RMB 21,626,877.12, primarily due to an increase in government subsidies related to revenue[32]. - The company received cash related to operating activities amounting to RMB 38,427,509.96, a 246.43% increase, due to government subsidies[34]. Investment and R&D - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[34]. - Research and development expenses for Q3 2020 were ¥10,084,049.41, a decrease from ¥11,073,131.60 in Q3 2019, reflecting a decline of approximately 8.9%[54]. - The company reported a significant increase in long-term investments, with long-term equity investments rising to ¥115,652,530.00 from ¥5,652,530.00, a growth of approximately 1945%[49].