Dividend Distribution - The company plans to distribute a cash dividend of 6.5 yuan per 10 shares, totaling approximately 52 million yuan, which represents 86.64% of the net profit attributable to shareholders for 2019[5]. - The total share capital for the dividend calculation is based on 80 million shares, subject to adjustment based on the actual number of shares on the dividend record date[5]. - The company does not plan to increase capital reserves or issue bonus shares, with remaining undistributed profits carried forward to the next fiscal year[5]. - The company’s board of directors has approved the profit distribution plan, pending approval from the shareholders' meeting[5]. - The cash dividend proposal for 2019 has been approved by the board and requires shareholder approval at the upcoming general meeting[138]. - The company has maintained a consistent cash dividend policy, with previous distributions of RMB 1.66 per share in 2018 and RMB 3.5 per share in 2017[139]. - The company’s cash dividend distribution plan is aligned with the guidelines set by the China Securities Regulatory Commission and the Shanghai Stock Exchange[136]. - The company commits to distributing cash dividends of no less than 10% of the distributable profits for the year, provided there are no significant investment plans or cash expenditures[150]. - The company will distribute dividends at least once a year, subject to meeting the necessary conditions[150]. Financial Performance - The company's operating revenue for 2019 was CNY 255,014,004.76, a decrease of 2.76% compared to 2018[20]. - Net profit attributable to shareholders decreased by 9.47% to CNY 60,021,564.87, while the net profit after deducting non-recurring gains and losses fell by 18.49% to CNY 50,985,332.26[22]. - The net cash flow from operating activities increased by 30.43% to CNY 82,897,770.47, attributed to improved collection of accounts receivable and reduced inventory[22]. - The company's total assets at the end of 2019 reached CNY 910,314,153.68, a significant increase of 138.82% from the previous year[20]. - The net assets attributable to shareholders increased by 150.25% to CNY 864,975,466.83, primarily due to the successful issuance of new shares[23]. - Basic and diluted earnings per share decreased by 20% to CNY 0.88, while the basic earnings per share after deducting non-recurring gains and losses fell by 27.88% to CNY 0.75[21]. - The company reported total sales revenue of CNY 20,980,000.00 and a net profit of CNY 17,483,002.37 for the year 2019, reflecting a significant increase in performance compared to the previous year[67]. - The company achieved a revenue of 255.01 million yuan in 2019, a decrease of 2.76% compared to the previous year[79]. - The net profit attributable to the parent company was 60.02 million yuan, down 9.47% year-on-year[79]. Research and Development - The company's R&D expenditure accounted for 6.86% of operating revenue, an increase of 0.51 percentage points compared to 2018[21]. - The total R&D expenditure for the period was ¥17,483,002.37, representing 6.86% of the company's operating revenue[59]. - The company has 102 R&D personnel, accounting for 16.59% of the total workforce[59]. - The company has accumulated 52 domestic and international patents during the reporting period, including 6 invention patents and 37 utility model patents, bringing the total to 171 patents as of December 31, 2019[55]. - The company is focusing on R&D for CVD diamond products, which have applications in various fields including semiconductor, optical, and medical devices[48][50]. - The company has completed several R&D projects, enhancing its competitive edge in the diamond tool market[62]. - The company is actively developing high-precision tools for PCB processing to meet the increasing demand for micro-drilling tools, aiming to replace foreign imports and reduce tool consumption in the PCB industry[47]. - The company is working on a micro PCD drill for high-quality drilling in semiconductor materials, positioning itself at the forefront of industry technology[65]. Market Strategy and Expansion - The company plans to enhance its market expansion and product development strategies in response to the challenges faced in the consumer electronics and automotive industries[22]. - The company aims to expand its market presence by enhancing its product offerings and improving manufacturing capabilities[32]. - The company plans to explore strategic partnerships and potential acquisitions to drive growth and market expansion[32]. - The company is focusing on expanding its market share in new sectors such as automotive glass and medical glass, while also investing in new product and technology development[86]. - The company is actively seeking to optimize its supply chain management to mitigate risks from rising raw material costs, which are significant to its main business costs[88]. - The company has established long-term relationships with qualified suppliers for raw materials, ensuring a stable supply chain for PCD and PCBN composite materials[36]. - The company has established a project department for aerospace tools, focusing on the development and sales of tools for aircraft components, indicating a strategic expansion into the aerospace market[47]. Operational Risks and Governance - The company has detailed various operational risks and corresponding countermeasures in the report, emphasizing the importance of risk awareness for investors[4]. - The audit report issued by Tianjian Accounting Firm confirms the financial statements are accurate and complete, with no significant omissions[4]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures regarding external guarantees[7]. - The company has implemented 16 management system revisions to enhance governance and ensure compliance with relevant laws and regulations[84]. - The company is addressing potential management risks associated with rapid business expansion by improving internal control systems and management frameworks[88]. - The company has a strong commitment to product safety, ensuring that no substandard products are produced or sold, in compliance with relevant laws and regulations[180]. Shareholder Commitments and Compliance - The company has a clear plan for the use of undistributed profits, focusing on long-term development while considering shareholder interests[141]. - The company reported a commitment from actual controller Yang Nuo to support business development and adhere to share lock-up commitments, with a maximum of 25% of shares allowed for transfer in the two years following the lock-up period[143]. - Shareholders Li Shuhui and Tang Wenlin committed to not transferring shares for 12 months post-IPO and to extend the lock-up period by 6 months if share prices fall below the IPO price for 20 consecutive trading days[144]. - The company will announce any share transfers three trading days in advance, ensuring compliance with securities regulations[143]. - The company has established a policy that any share transfers by executives during their tenure cannot exceed 25% of their total holdings annually[144]. - The company has a structured approach to managing share transfers to maintain investor confidence and regulatory compliance[143]. - The company emphasizes adherence to legal and regulatory requirements regarding share transfers and disclosures[143]. Environmental and Social Responsibility - The company has obtained ISO 14001:2015 environmental management system certification, ensuring compliance with environmental protection laws and regulations[182]. - The company has invested in pollution control equipment, such as smoke purification and coolant purification systems, to enhance environmental standards in production[182]. - The company actively participates in social responsibility initiatives, including establishing scholarships at several universities to support education[181]. Financial Management and Cash Flow - The company reported a substantial increase in cash and cash equivalents, reaching CNY 437,794,276.43, which constitutes 48.09% of total assets, primarily due to funds raised from the listing on the Sci-Tech Innovation Board[70]. - The company utilized a total of RMB 1.19 billion in cash management, with RMB 100 million from self-owned funds and RMB 319 million from temporarily idle raised funds[165]. - The company approved the use of up to RMB 335 million of temporarily idle raised funds for cash management, ensuring no impact on project progress or normal operations[165]. - The company has not reported any overdue amounts in its cash management activities[165]. Corporate Structure and Share Capital - As of December 31, 2019, the company had a total share capital of 80 million shares after a public offering of 20 million shares[187]. - The company’s stock structure includes 61,256,721 restricted shares and 18,743,279 unrestricted shares, with a significant portion held by domestic natural persons[185]. - The company approved the public issuance of 20,000,000 A-shares, representing 25.00% of the total share capital after the change, with a fundraising total of RMB 533,600,000[188]. - The total share capital increased to 80,000,000 shares, with a capital reserve increase of RMB 449,271,143.44[195]. - The total number of ordinary shareholders increased from 7,755 to 8,527 during the reporting period[196].

Financial Performance - Net profit attributable to shareholders decreased by 12.14% to CNY 40,438,202.43 for the first three quarters compared to the same period last year[8]. - Operating income for the first three quarters was CNY 184,871,676.73, a slight decrease of 0.60% year-on-year[8]. - Total operating revenue for Q3 2019 was CNY 62,055,632.45, a decrease of 8.5% compared to CNY 67,943,141.14 in Q3 2018[25]. - Net profit for Q3 2019 was CNY 13,050,277.49, down 31.1% from CNY 18,986,295.87 in Q3 2018[26]. - Total profit for the first three quarters of 2019 was ¥20,561,564.90, a decline of 53.7% from ¥44,300,788.06 in the same period of 2018[28]. - Earnings per share (EPS) for Q3 2019 was CNY 0.18, compared to CNY 0.32 in Q3 2018, reflecting a decline of 43.8%[27]. Expenses and Costs - The company experienced a 19.57% increase in selling expenses due to expanded market development efforts[8]. - Management expenses rose by 28.84% due to increased listing costs and employee salaries[8]. - Total operating costs increased to CNY 47,363,963.94 in Q3 2019, up 9.1% from CNY 43,165,060.36 in Q3 2018[25]. - The company’s total operating costs for the first three quarters of 2019 were ¥55,318,582.90, a decrease of 10.5% from ¥61,756,051.65 in the first three quarters of 2018[28]. Assets and Liabilities - Total assets increased by 131.95% to CNY 884,115,284.76 compared to the end of the previous year[7]. - The company’s total assets as of September 30, 2019, were significantly impacted by the completion of construction projects, leading to a 32.01% decrease in construction in progress[15]. - Total liabilities decreased slightly to ¥34,595,596.36 from ¥35,525,295.35, a reduction of 2.6%[21]. - The company’s long-term investments increased to ¥276,302,824.02 from ¥116,302,824.02, showing a growth of 137.6%[23]. - The company reported accounts payable of ¥23,254,743.73, an increase from ¥19,033,759.38, which is a rise of 22.9%[20]. Cash Flow - The net cash flow from financing activities was ¥460,374,905.62, a significant change from -¥10,283,239.64 in the previous period, mainly due to increased fundraising[17]. - The company reported a net cash outflow from investing activities of ¥23,714,841.82 in the first three quarters of 2019, compared to a net outflow of ¥43,661,778.83 in the same period of 2018[33]. - Operating cash flow for the first three quarters of 2019 was ¥52,891,948.35, an increase of 25.5% compared to ¥42,077,966.21 in the first three quarters of 2018[32]. - The company’s net increase in cash and cash equivalents was ¥489,788,779.11, primarily driven by the influx of raised funds[17]. Shareholder Information - The total number of shareholders reached 9,568 by the end of the reporting period[12]. - The largest shareholder, Chen Jifeng, holds 47.75% of the shares, totaling 38,196,240 shares[12]. - The total equity attributable to shareholders was CNY 770,205,601.04, compared to CNY 293,419,377.44 in the previous year[25]. Government Support - The company received government subsidies totaling CNY 4,847,892.69, primarily related to construction projects[9]. Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[27].