Financial Performance - The company achieved operating revenue of CNY 1,150,709,066.63 in 2021, representing a year-on-year growth of 31.29%[24]. - Net profit attributable to shareholders reached CNY 247,121,741.23, an increase of 11.41% compared to the previous year[24]. - The net profit after deducting non-recurring gains and losses grew by 18.67% year-on-year, amounting to CNY 218,456,469.44[24]. - Cash flow from operating activities increased significantly by 87.25%, totaling CNY 221,133,458.56[24]. - Basic earnings per share rose to CNY 0.74, reflecting a 12.12% increase from the previous year[25]. - The company's total assets at the end of 2021 were CNY 4,854,631,977.93, a 7.09% increase from the end of 2020[24]. - The weighted average return on equity improved to 7.40%, up by 0.53 percentage points from the previous year[25]. - The company reported a significant increase in investment income from joint ventures compared to the previous year, contributing to the net profit growth[27]. Research and Development - The company is investing in research and development, with a budget allocation of approximately $5 million for the development of advanced water treatment technologies[16]. - Research and development expenses accounted for 4.54% of operating revenue, slightly down from 4.58% in 2020[25]. - The total R&D investment for the year was approximately ¥52.21 million, representing a 30.16% increase compared to the previous year[75]. - The company applied for a total of 35 patents during the reporting period, with 26 patents granted, including 7 invention patents and 19 utility model patents[73]. - The company has developed a comprehensive "RDPA" research and development system focused on membrane technology applications, enhancing its core competitiveness[53]. Market Expansion and Strategy - The company is expanding its market presence in seawater desalination, targeting coastal regions to provide fresh water for residential and industrial use[15]. - The company has set a revenue growth target of 15% for the upcoming fiscal year, driven by new product launches and market expansion initiatives[16]. - The company is actively pursuing strategic partnerships and acquisitions to enhance its technological capabilities and market reach[16]. - The company is expanding its production bases across five locations, including Fujian, to alleviate capacity pressure at the Xiamen facility[35]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[158]. Technological Innovation - The company reported a significant focus on membrane technology, including microfiltration, ultrafiltration, nanofiltration, and reverse osmosis, which are essential for water treatment processes[14]. - The company has developed a new graphene membrane technology aimed at enhancing water purification efficiency and reducing operational costs[15]. - The company has innovated various advanced inorganic non-metallic membrane materials and high-performance composite membranes, which can replace imported products and offer superior performance[45]. - The company has established a postdoctoral research station and a provincial membrane separation engineering technology center, focusing on membrane separation technology and new membrane material development since 2002[89]. Corporate Governance and Compliance - The company has not reported any violations of decision-making procedures regarding external guarantees[9]. - The company has received a standard unqualified audit report from the accounting firm[8]. - The internal control system is in place and has been evaluated without significant deficiencies during the reporting period[193]. - The company emphasizes the protection of minority shareholders' rights through its clear and transparent dividend distribution process[189]. - The company has updated its articles of association in accordance with the latest laws and regulations, strengthening the responsibilities of independent directors[197]. Environmental Responsibility - The company is committed to achieving compliance with environmental standards, aiming for a 20% reduction in pollutant discharge from its operations by the end of the next fiscal year[16]. - The company operates multiple key pollutant discharge units across various provinces, including Henan, Hubei, Fujian, and Jiangxi, ensuring compliance with local environmental standards[198]. - The company’s wastewater treatment plants have specific discharge limits, such as CODcr ≤ 912.5 tons/year and ammonia nitrogen ≤ 146 tons/year for Xiaogan San Da Water Co., Ltd.[199]. - The company integrates ESG principles into its business strategy, focusing on sustainable development and environmental responsibility[196]. Shareholder and Investor Relations - The company plans to use part of the raised funds to permanently supplement working capital, as approved in the first temporary shareholder meeting[148]. - The company established good investor relations through various communication channels, including investor calls and website interactions[145]. - All resolutions from the four shareholder meetings held during the reporting period were approved without any rejections[149]. - The company is committed to maintaining transparency in its financial dealings and has adhered to relevant policies regarding shareholding[152]. Operational Efficiency - The company reported a 30% increase in operational efficiency due to the implementation of continuous ion exchange technology in its processes[15]. - The company has implemented upgrades and expansions in its water investment operations, applying membrane technology in several wastewater treatment plants, enhancing both treatment standards and revenue[44]. - The company has established stable partnerships with several domestic and international suppliers for raw materials, ensuring a reliable procurement process[47]. Risks and Challenges - The company faces risks related to technological upgrades and the need for continuous innovation to remain competitive in the membrane technology application industry[92]. - The company is exposed to accounts receivable risks due to slow sales returns and long account aging, particularly in its water investment and operation business[93]. - The ongoing COVID-19 pandemic continues to pose uncertainties that may affect client contracts and marketing budgets[97]. - The company is facing intensified competition in the membrane technology application industry due to the entry of large foreign firms[96].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 294,413,320.57, representing a year-on-year increase of 50.22%[5] - The net profit attributable to shareholders for Q3 2021 was CNY 76,232,123.29, an increase of 21.35% compared to the same period last year[5] - The net profit after deducting non-recurring gains and losses for Q3 2021 was CNY 69,702,880.52, up 32.53% year-on-year[6] - The company's revenue for the year-to-date period was CNY 697,589,749.03, representing a year-on-year increase of 31.96%[5] - The net profit attributable to shareholders for the year-to-date period was CNY 209,901,204.39, reflecting a growth of 24.26% compared to the same period last year[5] - Total operating revenue for the first three quarters of 2021 reached ¥697,589,749.03, a 32% increase from ¥528,635,459.19 in the same period of 2020[21] - Net profit for the third quarter of 2021 was ¥211,512,701.16, compared to ¥170,850,786.25 in the same quarter of 2020, representing a 24% increase[22] - Earnings per share (EPS) for the third quarter was ¥0.63, up from ¥0.51 in the previous year[23] Cash Flow and Liquidity - The cash flow from operating activities for the year-to-date period reached CNY 47,957,229.66, showing a significant increase of 186.81%[6] - The company's cash and cash equivalents as of September 30, 2021, amount to ¥941,390,982.50, down from ¥1,193,976,534.34 as of December 31, 2020, reflecting a decrease of approximately 21%[16] - The company's cash and cash equivalents at the end of the third quarter were not disclosed, but the increase in net profit suggests improved liquidity[22] - The company's operating cash flow for the first three quarters of 2021 was ¥47,957,229.66, a significant increase from ¥16,721,032.34 in the same period of 2020, representing a growth of approximately 187.5%[24] - Cash and cash equivalents at the end of the period stood at ¥924,775,074.44, down from ¥878,198,581.25 in the same period last year[25] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to CNY 4,621,078,733.74, reflecting a growth of 1.94% compared to the end of the previous year[6] - The company's total liabilities as of the end of the third quarter were ¥1,136,510,960.98, a slight decrease from ¥1,193,271,407.12 at the end of the previous year[19] - The total equity attributable to shareholders increased to ¥3,443,330,091.67 from ¥3,300,204,887.28, marking a growth of approximately 4.3%[19] - Total cash inflow from investment activities decreased to ¥958,003,835.63 in 2021 from ¥2,558,444,228.87 in 2020, indicating a decline of about 62.5%[25] Shareholder Information - The total number of common shareholders at the end of the reporting period is 13,841[13] - The largest shareholder, Sanda Membrane Technology (Singapore) Co., Ltd., holds 144,770,450 shares, representing 43.36% of total shares[13] - The company has a total of 85,682,350 unrestricted circulating shares held by Qingyuan (China) Co., Ltd.[14] Research and Development - Research and development expenses totaled CNY 10,922,897.89 for Q3 2021, accounting for 3.71% of operating revenue, a decrease of 1 percentage point year-on-year[6] - Research and development expenses for the first three quarters were ¥29,246,913.08, compared to ¥24,774,176.48 in the same period of 2020, indicating a 18% increase[21] Investment Activities - Investment income for the third quarter was ¥55,080,979.21, significantly higher than ¥29,812,181.29 in the same quarter of the previous year[22] - The net cash flow from investment activities was negative at -¥336,845,649.57, compared to a positive cash flow of ¥82,288,269.54 in the previous year[25] Operational Costs - Total operating costs amounted to ¥521,029,183.33, up from ¥385,592,448.23, reflecting a 35% increase year-over-year[21] Future Outlook - The company has not disclosed any significant new product developments or market expansion strategies during the reporting period[15] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2021, representing a year-on-year increase of 20%[1]. - The net profit attributable to shareholders reached RMB 15 million, up 25% compared to the same period last year[1]. - The company achieved operating revenue of CNY 403.18 million in the first half of the year, representing a year-on-year increase of 21.20% compared to CNY 332.65 million in the same period last year[21]. - Net profit attributable to shareholders reached CNY 133.67 million, up 25.99% from CNY 106.10 million in the previous year[22]. - The basic earnings per share increased to CNY 0.40, reflecting a growth of 25.00% compared to CNY 0.32 in the same period last year[20]. - The company reported a total profit for the first half of 2021 of CNY 151,026,381.78, compared to CNY 122,412,638.59 in the previous year, representing an increase of approximately 23.3%[167]. - The total comprehensive income for the first half of 2021 was CNY 134,723,068.67, compared to CNY 107,359,957.50 in the previous year, indicating an increase of about 25.5%[168]. - The company reported a net profit margin improvement, with net profit for the first half of 2021 expected to be higher than the previous year, although specific figures were not disclosed[165]. Research and Development - The company is investing RMB 10 million in R&D for new membrane technologies aimed at enhancing separation efficiency[1]. - The company’s R&D investment accounted for 4.54% of operating revenue, slightly down from 4.67% in the previous year[20]. - The total R&D investment amounted to ¥18,324,015.19, representing a 17.87% increase compared to the previous period[60]. - The company has a total of 136 valid patents, including 73 invention patents and 62 utility model patents as of June 30, 2021[59]. - The company has developed multiple leading products in membrane materials, including nanofiltration membranes, ceramic membranes, and hollow fiber membranes, which are essential for industrial liquid separation and water treatment[29]. - The company has developed innovative membrane separation processes, filling multiple gaps in domestic and international membrane application technologies, particularly in the pharmaceutical and food industries[50]. - The company has established a comprehensive technology development platform based on a "target-oriented, reverse thinking" R&D principle, enhancing its core competitiveness[57]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 15% for the second half of 2021, driven by new product launches and market expansion strategies[1]. - The company has expanded its user base by 30%, now serving over 500,000 customers[1]. - Market expansion efforts include entering two new regional markets, expected to contribute an additional RMB 5 million in revenue[1]. - The company aims to expand its market presence through strategic partnerships and technological innovations in water treatment solutions[12]. - The company plans to continue expanding its market presence and enhancing its product offerings in membrane technology applications and water investment operations[27]. - The company is actively expanding its market presence by monitoring government project approvals and leveraging existing operational efficiencies in regions where it has established projects[42]. Environmental Compliance and Sustainability - The company operates multiple key pollutant discharge units across various provinces, including Henan, Hubei, Fujian, Jiangxi, Anhui, and Jilin, indicating a significant environmental footprint[101]. - The company reported no instances of exceeding the approved pollutant discharge limits across its facilities, demonstrating compliance with environmental regulations[101]. - The company is committed to maintaining compliance with environmental standards, including a total nitrogen limit of ≤369.5625 tons/year and total phosphorus limit of ≤12.31875 tons/year for one of its plants[106]. - The company has established and is operating pollution prevention facilities that have passed environmental acceptance by local authorities[109]. - The company has developed emergency response plans for sudden environmental incidents, ensuring rapid and effective responses to potential pollution events[111]. Financial Position and Cash Flow - The company has maintained a strong cash position with RMB 50 million in cash reserves, ensuring liquidity for future investments[1]. - The company reported a significant increase in cash flow from investment activities, with a net cash inflow of 12.31 million yuan, compared to a net outflow of 125.15 million yuan in the previous year[81]. - The company’s total assets decreased by 1.59% to CNY 4.46 billion from CNY 4.53 billion at the end of the previous year[22]. - The company’s total assets as of June 30, 2021, were ¥3,146,024,312.11, slightly up from ¥3,131,123,818.99 at the end of 2020[164]. - The company’s cash flow from operating activities improved significantly, with a net outflow of 8.18 million yuan, an improvement of 41.61% compared to the previous year[81]. - The ending balance of cash and cash equivalents was 1,158,433,240.98 RMB, compared to 643,618,006.62 RMB at the end of the first half of 2020, showing an increase of approximately 80%[175]. Corporate Governance and Shareholder Commitments - The company has committed to not transferring or managing shares for a period of 36 months post-IPO, ensuring stability in shareholding[115]. - The company will not sell shares below the initial public offering price, with adjustments made for any dividends or capital increases prior to the sale[121]. - The company’s controlling shareholder and actual controllers promised to avoid any direct or indirect competition with the company and its subsidiaries[125]. - The company will minimize or avoid related party transactions, adhering to market rules and ensuring fairness and transparency in necessary transactions[127]. - The company’s commitment to avoid competition is irrevocable and will remain effective during the tenure of the controlling shareholders[126].

Financial Performance - Operating revenue for the period reached CNY 159.87 million, representing a year-on-year increase of 19.49%[5] - Net profit attributable to shareholders was CNY 63.23 million, an increase of 8.43% compared to the same period last year[5] - Basic and diluted earnings per share were both CNY 0.19, an increase of 11.76% compared to the previous year[5] - Total operating revenue for Q1 2021 was CNY 159,865,970.07, an increase of 19.5% compared to CNY 133,788,301.28 in Q1 2020[24] - The net profit for Q1 2021 reached CNY 10,329,221.05, representing a 16.3% increase compared to CNY 8,878,547.33 in Q1 2020[28] - The total profit for Q1 2021 was CNY 11,640,621.96, compared to CNY 9,333,201.50 in Q1 2020, marking a 24.7% increase[28] Cash Flow - The net cash flow from operating activities was negative CNY 33.74 million, worsening by 50.26% year-on-year[5] - The cash flow from operating activities for Q1 2021 was CNY 143,718,366.16, an increase from CNY 126,099,645.87 in Q1 2020[30] - The net cash flow from operating activities for Q1 2021 was -33,737,697.76 RMB, compared to -22,452,386.62 RMB in Q1 2020, indicating a decline in operational cash flow[31] - Total cash inflow from investment activities was 100,227,945.21 RMB, significantly lower than 706,388,309.69 RMB in the previous year, reflecting reduced investment recovery[31] - The net cash flow from investment activities was -226,279,410.27 RMB, compared to -213,597,442.94 RMB in Q1 2020, showing a continued outflow trend[31] - The total cash outflow from financing activities was 2,665,748.91 RMB, compared to 22,274,448.68 RMB in the previous year, indicating a significant reduction in financing outflows[32] Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 4.53 billion, a decrease of 0.03% compared to the end of the previous year[5] - The total assets as of March 31, 2021, were RMB 4,531,955,561.93, slightly down from RMB 4,533,102,478.72 as of December 31, 2020[18] - Total liabilities as of March 31, 2021, were CNY 1,128,336,951.80, down from CNY 1,193,271,407.12 at the end of 2020[20] - Current liabilities totaled CNY 727,290,522.61, a decrease of 9.1% from CNY 800,692,336.08 in the previous period[20] - Shareholders' equity increased to CNY 3,403,618,610.13 as of March 31, 2021, compared to CNY 3,339,831,071.60 at the end of 2020[20] Research and Development - The R&D investment accounted for 5.00% of operating revenue, up from 4.86% in the previous year[5] - R&D expenses for Q1 2021 amounted to CNY 7,990,682.42, representing an increase of 22.8% from CNY 6,504,689.88 in Q1 2020[24] - Research and development expenses increased to CNY 4,515,127.79 in Q1 2021, compared to CNY 3,860,405.61 in Q1 2020, reflecting a 17% rise[27] Shareholder Information - The total number of shareholders at the end of the reporting period was 13,598[11] - The largest shareholder, Sanda Membrane Technology (Singapore) Co., Ltd., held 43.36% of the shares[11] Financial Position - The company's cash and cash equivalents amounted to RMB 941,691,635.66, down from RMB 1,193,976,534.34 as of December 31, 2020, indicating a decrease of approximately 21.06%[17] - Cash and cash equivalents decreased to CNY 759,294,232.19 from CNY 1,025,321,405.86 at the end of 2020, indicating a liquidity contraction[21] - Cash and cash equivalents at the end of Q1 2021 stood at 916,024,351.50 RMB, down from 650,135,820.04 RMB in Q1 2020[32] Other Financial Metrics - The weighted average return on equity increased by 0.07 percentage points to 1.90%[5] - The company's financial expenses decreased by 56.56% to RMB 1,091,778.73 from RMB 2,513,306.32, due to increased interest income and reduced interest expenses from lower borrowings[14] - The fair value changes in financial assets resulted in a loss of RMB 3,431,506.85, down 53.3% from RMB 7,347,811.24 in the previous year[14] - The company incurred credit impairment losses of CNY 5,218,244.76 in Q1 2021, compared to CNY 1,577,342.82 in Q1 2020, indicating a significant rise in credit risk[27]

Financial Performance - The company achieved operating revenue of CNY 876,447,101.03 in 2020, representing an increase of 18.12% compared to the previous year[24]. - Net profit attributable to shareholders decreased by 19.82% to CNY 221,805,911.11, primarily due to reduced investment income from joint ventures[22]. - The net cash flow from operating activities fell by 50.03% to CNY 118,098,323.81, largely impacted by the pandemic[24]. - Total assets increased by 7.16% to CNY 4,533,102,478.72 at the end of 2020[22]. - Basic earnings per share decreased by 38.32% to CNY 0.66 in 2020[23]. - The weighted average return on equity dropped by 9.53 percentage points to 6.87%[23]. - The company reported a quarterly revenue of CNY 347,811,641.84 in Q4 2020, the highest among the quarters[26]. - The company reported a total profit of CNY 37,716,252.07 for the year, a significant increase from CNY 6,946,929.07 in the previous year, representing a growth of approximately 442%[30]. Dividend Policy - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, totaling 66,776,000 RMB, which represents 30.11% of the net profit attributable to shareholders for 2020[5]. - The cash dividend policy stipulates a minimum distribution of 30% of distributable profits for the year, after covering losses and legal reserves[136]. - The company has established a differentiated cash dividend policy based on its development stage, with a minimum cash dividend ratio of 80% for mature stages without major capital expenditures[135]. - The cash dividend distribution plan has been approved by the board and requires shareholder meeting approval for implementation[138]. - The company has maintained compliance with its cash dividend principles and policies, ensuring transparency and protection of minority shareholders' rights[138]. Research and Development - The company has developed advanced inorganic non-metal membrane materials and high-performance composite membrane materials, establishing a comprehensive membrane industry chain[34]. - The company’s investment in research and development has led to industry-leading positions in multiple membrane products, including nanofiltration cores and hollow fiber membranes[36]. - The company has established a "RDPA" research and development system focused on membrane technology applications, emphasizing a comprehensive technical development platform for research, development, pilot testing, and application[49]. - R&D investment totaled approximately ¥40.12 million, representing a 1.77% increase from the previous year, with R&D expenses accounting for 4.58% of operating revenue, down from 5.31%[68]. - The total R&D personnel count has increased to 198, representing 19.04% of the total workforce, with an average salary of 143,648.36 RMB[79]. Operational Risks and Compliance - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The report includes a standard unqualified audit opinion from the accounting firm Rongcheng[4]. - There are no non-operational fund occupations by controlling shareholders or related parties reported[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has not reported any significant accounting errors or changes in accounting policies that would impact its financial statements[153]. Environmental Commitment - The annual report highlights the company's commitment to clean production methods, aiming to reduce pollution and improve resource utilization efficiency[12]. - The company operates multiple wastewater treatment plants, adhering to the Class A and Class B standards of the "Urban Wastewater Treatment Plant Pollutant Discharge Standards" (GB18918-2002) with specific discharge limits for CODcr, ammonia nitrogen, total nitrogen, and total phosphorus[189][190]. - The company has established emergency response plans for sudden environmental incidents, ensuring rapid and effective responses to potential pollution events[194]. - The company has no reported incidents of non-compliance with pollutant discharge standards across its facilities[189][190]. Market Position and Strategy - Future outlook includes expanding market presence and exploring potential mergers and acquisitions to strengthen competitive positioning[12]. - The company has a market share exceeding 60% in the petrochemical PTA sector, indicating a leading position in water treatment business[84]. - The company is focusing on the development of new products and technologies to enhance market competitiveness and expand into new markets[72]. - The company is committed to becoming a global leader in membrane technology development and application, focusing on sustainable manufacturing and clean production[128]. Related Party Transactions - The company has committed to minimizing or avoiding related party transactions, ensuring compliance with market rules and fair practices[154]. - The company engaged in a related party lease transaction with San Da Membrane Technology Park Development (Xiamen) Co., Ltd., with an expected amount of RMB 240 million and an actual amount of RMB 249.82 million[159]. - The company has retained Rongcheng Accounting Firm for the 2020 financial and internal control audit, with a remuneration of RMB 1,200,000[154]. Future Investments and Projects - The company plans to invest raised funds in projects related to inorganic ceramic nanofiltration membranes and water purification systems, which may take time to yield economic benefits[100]. - The company is currently developing several projects, including a composite nanofiltration membrane with an expected total investment of ¥2.5 million, with a current investment of approximately ¥1.23 million[71]. - The company has obtained the necessary administrative approvals for overseas investment related to the membrane materials and technology R&D center project[179].

Financial Performance - Net profit attributable to shareholders decreased by 26.17% to CNY 168,919,996.86 year-on-year[6] - Operating revenue for the first nine months was CNY 528,635,459.19, a slight increase of 0.62% compared to the same period last year[6] - Basic earnings per share dropped by 43.96% to CNY 0.51[7] - The gross profit margin for the reporting period was 40.80%, slightly down from 41.15% in the previous year[7] - Total operating revenue for Q3 2020 was approximately $195.99 million, a decrease of 1.4% compared to $199.42 million in Q3 2019[29] - Net profit for Q3 2020 reached approximately $63.49 million, representing a 12.5% increase from $56.38 million in Q3 2019[30] - Total profit for Q3 2020 was approximately $71.50 million, up from $67.04 million in Q3 2019, marking a 3.7% increase[30] - The company reported a total comprehensive income of approximately $63.49 million for Q3 2020, compared to $56.38 million in Q3 2019[31] Cash Flow - The net cash flow from operating activities decreased by 91.94% to CNY 16,721,032.34 compared to the same period last year[6] - The company's cash flow from operating activities decreased by 91.94% to RMB 16,721,032.34, primarily due to reduced sales receipts and increased material procurement costs[20] - The company reported a net cash flow from operating activities of ¥16,721,032.34 for the first three quarters of 2020, a decrease from ¥207,332,825.84 in the same period of 2019[36] - The total operating cash inflow for the first three quarters of 2020 was 372,570,208.61 RMB, down 36.7% from 588,766,643.32 RMB in the same period of 2019[39] - The company’s cash flow from investment activities generated a net cash inflow of 242,465,835.37 RMB in Q3 2020, compared to 34,780,550.08 RMB in Q3 2019, highlighting improved investment returns[40] Assets and Liabilities - Total assets increased by 4.6% to CNY 4,424,644,153.65 compared to the end of the previous year[6] - Total liabilities decreased by 48.26% for short-term borrowings, amounting to RMB 40,044,244.41, due to repayment of bank loans[19] - Current liabilities rose to CNY 744,815,505.92 from CNY 654,638,402.25, reflecting an increase of approximately 13.8%[22] - Total liabilities increased to CNY 1,145,608,109.61 from CNY 1,038,236,073.64, marking a growth of around 10.3%[23] - Shareholders' equity reached CNY 3,279,036,044.04, up from CNY 3,191,655,257.79, which is an increase of about 2.7%[23] - The total liabilities and shareholders' equity amounted to CNY 4,424,644,153.65, consistent with the total assets[23] Investment and Expenses - Research and development expenses accounted for 4.69% of operating revenue, a decrease of 0.21 percentage points year-on-year[7] - Financial expenses decreased by 41.82% to RMB 8,798,660.74, attributed to increased interest income[19] - The company reported a significant increase in other payables by 178.05% to RMB 11,527,046.08, indicating a rise in guarantee deposits[19] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[34] Inventory and Receivables - Inventory increased by 57.84% to RMB 474,914,602.28 from RMB 300,888,139.44, reflecting a rise in orders and ongoing projects[19] - Accounts receivable financing increased by 44.34% to RMB 44,571,346.53 compared to RMB 30,880,132.82 at the end of 2019[19] - Accounts receivable increased to CNY 108,179,235.83 from CNY 104,612,263.83, showing a growth of about 3.4%[26] Changes in Accounting Standards - The company executed a new accounting standard starting January 1, 2020, impacting the reporting of contract assets and liabilities[44] - The cumulative impact of the new revenue standard will adjust the financial statement amounts at the beginning of 2020, but prior period data will not be adjusted[50] - The company is classified as a domestic listed enterprise under the new revenue standard guidelines issued by the Ministry of Finance[50]

Financial Performance - The company reported a total revenue of RMB 100 million for the first half of 2020, representing a year-on-year increase of 15%[1]. - The company achieved operating revenue of CNY 332,646,018.53 in the first half of 2020, representing a 2.06% increase compared to the same period last year[18]. - Net profit attributable to shareholders decreased by 38.65% to CNY 106,099,091.77 compared to the previous year[18]. - Basic earnings per share dropped by 53.62% to CNY 0.32 compared to the same period last year[19]. - The company's total assets increased by 1.78% to CNY 4,305,175,813.67 compared to the end of the previous year[18]. - The company reported a total comprehensive income of approximately 106.1 million for the current period, compared to 1.26 million in the previous period, indicating a substantial increase[173]. - The total comprehensive income for the period amounted to 97,144,186.13 RMB[190]. - The total equity attributable to owners at the end of the period was 2,522,585,850.44 RMB[190]. Research and Development - Research and development efforts have led to the introduction of two new membrane technologies, expected to enhance efficiency by 25%[1]. - The financial report indicates a commitment to research and development, particularly in the production of key intermediates like 7-ACA and 6-APA for antibiotic manufacturing[11]. - The company has developed a comprehensive "RDPA" research and development system, emphasizing innovation in membrane materials and wastewater treatment processes[39]. - The company applied for 24 patents and was granted 9 patents during the reporting period, including 1 invention patent and 9 utility model patents[57]. - The total R&D investment for the period was ¥15,546,528.94, representing 4.67% of the operating revenue[59]. Market Expansion and Strategy - The company projects a revenue growth of 10% for the second half of 2020, driven by new product launches and market expansion strategies[1]. - The company is planning to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2021[1]. - The company aims to expand its market presence through innovative water treatment solutions and strategic partnerships[12]. - The company is actively pursuing mergers and acquisitions as part of its growth strategy, aiming to strengthen its market position[174]. Operational Efficiency - The company has implemented cost-control measures that are expected to reduce operational expenses by 5% in the upcoming quarters[1]. - The company has established a strong operational framework, including BOT and TOT models, to enhance its wastewater treatment service offerings[12]. - The company emphasizes the importance of achieving high-quality recycled water standards through advanced treatment technologies[11]. - The company operates under a business model that includes providing integrated membrane technology solutions and ongoing operational support to clients[32]. Environmental Commitment - The company reported a significant focus on clean production methods to reduce pollution and improve resource utilization efficiency[11]. - The company is committed to maintaining its status as a key player in environmental protection within the water treatment sector[119]. - The company has established a comprehensive pollution prevention system across its subsidiaries to mitigate environmental impact[118]. - The company strictly adheres to national environmental protection laws and regulations, with no violations or pollution incidents reported during the reporting period[128]. Financial Health and Risks - The net cash flow from operating activities was negative at CNY -14,004,939.13, a decline of 107.22% from the previous year[18]. - The company faces risks related to technological upgrades and the need for continuous innovation in a competitive market, which could impact its market position and profitability[81]. - The company is aware of the potential volatility in investment returns from its long-term equity investment in Shandong Tianli Pharmaceutical Co., which may be influenced by market price fluctuations and operational performance[85]. Shareholder and Governance Matters - The controlling shareholder, Singapore San Da Membrane, committed to not transferring or entrusting the management of shares for 36 months post-IPO[99]. - The company commits to strictly follow the profit distribution policy approved by the shareholders' meeting, ensuring profit distribution to shareholders as per the company's articles of association and the three-year dividend return plan after listing[104]. - The company has established a plan to ensure compliance with share transfer restrictions[99]. - The company emphasizes the importance of protecting investor rights and will apologize for any non-compliance with commitments[102]. Technological Advancements - The introduction of microfiltration (MF), ultrafiltration (UF), nanofiltration (NF), and reverse osmosis (RO) technologies enhances the company's water treatment capabilities[12]. - The company has developed a range of membrane technology products, including nanofiltration cores, ceramic membranes, and hollow fiber membranes, which are leading in the industry[26]. - The company is currently developing several projects, including a flat composite nanofiltration membrane with a projected total investment of ¥2,500,000, which has achieved a permeation flux of over 40 LMH at 0.69 MPa pressure[61]. Compliance and Legal Matters - There were no significant litigation or arbitration matters during the reporting period[108]. - The company did not experience any bankruptcy reorganization matters during the reporting period[108]. - The company has not disclosed any significant contracts or their performance during the reporting period[112].

Financial Performance - Operating revenue for the current period was ¥133,788,301.28, representing a decrease of 11.67% year-on-year[6] - Net profit attributable to shareholders was ¥58,315,652.32, an increase of 9.74% compared to the same period last year[6] - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥47,855,800.09, a decrease of 5.74% year-on-year[6] - Basic and diluted earnings per share were both ¥0.17, down 22.73% from the previous year[6] - The company reported a 41.58% decrease in selling expenses, amounting to ¥2,849,278.54 from ¥4,877,403.73[14] - The financial expenses decreased by 54.41% to ¥2,513,306.32 from ¥5,512,362.82 due to increased interest income[14] - Total operating revenue for Q1 2020 was ¥19,814,760.10, a decrease of 59.8% compared to ¥49,238,181.80 in Q1 2019[26] - Net profit for Q1 2020 reached ¥8,878,547.33, up 21.1% from ¥7,334,595.06 in Q1 2019[27] - Total comprehensive income for Q1 2020 was ¥8,878,547.33, compared to ¥7,334,595.06 in Q1 2019, reflecting a growth of 21.1%[27] Assets and Liabilities - Total assets at the end of the reporting period reached ¥4,291,978,987.57, an increase of 1.47% compared to the end of the previous year[6] - The company's total assets amounted to ¥4,291,978,987.57, a slight increase from ¥4,229,891,331.43[20] - The total liabilities stood at ¥1,041,414,548.47, compared to ¥1,038,236,073.64 previously[19] - The company's total assets as of March 31, 2020, were CNY 2,938,799,659.87, slightly up from CNY 2,931,159,993.15 at the end of 2019[22] - Current assets totaled CNY 2,414,678,123.05, a marginal increase from CNY 2,406,536,054.54 at the end of 2019[22] - The total liabilities were recorded at 1,038,236,073.64 RMB, with current liabilities amounting to 654,638,402.25 RMB[37] - The company's total equity reached 3,191,655,257.79 RMB, indicating a stable equity position[37] Cash Flow - The company reported a net cash flow from operating activities of -¥22,452,386.62, a decrease of 147.71% compared to the same period last year[6] - The net cash flow from operating activities decreased by 147.71% to -¥22,452,386.62 from ¥47,063,896.51 due to the impact of the pandemic[14] - Investment activities generated a net cash flow of -¥213,597,442.94, an increase of 254.34% compared to -¥60,280,481.51[14] - Operating cash flow for Q1 2020 was negative at -¥22,452,386.62, compared to positive cash flow of ¥47,063,896.51 in Q1 2019[30] - Total cash inflow from operating activities was ¥137,721,123.03, down from ¥161,733,223.96 in Q1 2019[29] - The company incurred total cash outflow from investing activities of ¥919,985,752.63, compared to ¥60,280,481.51 in Q1 2019[30] Shareholder Information - The total number of shareholders at the end of the reporting period was 20,137[11] - The largest shareholder, 三达膜技术（新加坡）有限公司, held 43.36% of the shares[11] Research and Development - Research and development expenses accounted for 4.86% of operating revenue, an increase of 0.81 percentage points[6] - Research and development expenses for Q1 2020 were ¥3,860,405.61, an increase of 20.1% from ¥3,213,825.79 in Q1 2019[26] Inventory and Accounts Receivable - The company reported a decrease in accounts receivable to CNY 61,081,824.76 from CNY 104,612,263.83, a reduction of 41.6%[22] - Inventory increased to CNY 188,099,155.84, up 34.8% from CNY 139,432,749.66 at the end of 2019[22] - The company’s accounts receivable decreased by 81,113,213.62 RMB, indicating improved cash collection efforts[35] - The inventory level remained stable at 300,888,139.44 RMB, reflecting consistent stock management[36]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% growth compared to the previous year[21]. - The company achieved operating revenue of CNY 742.01 million in 2019, a year-on-year increase of 25.78% compared to CNY 589.91 million in 2018[22]. - Net profit attributable to shareholders reached CNY 276.67 million, reflecting a 52.58% increase from CNY 181.32 million in the previous year[22]. - Basic earnings per share rose to CNY 1.07, up 48.61% from CNY 0.72 in 2018[23]. - The company's total assets increased by 76.35% to CNY 4.23 billion at the end of 2019, compared to CNY 2.40 billion at the end of 2018[22]. - The net assets attributable to shareholders surged by 122.44% to CNY 3.16 billion, up from CNY 1.42 billion in 2018[22]. - The cash flow from operating activities reached CNY 236.32 million, a significant increase of 134.99% compared to CNY 100.57 million in 2018[22]. - The company reported a diluted earnings per share of CNY 1.07, consistent with the basic earnings per share[23]. Dividend Policy - The company plans to distribute a cash dividend of 2.50 RMB per 10 shares, totaling approximately 83,470,000 RMB, which represents 30.17% of the net profit attributable to shareholders for 2019[4]. - The profit distribution plan for 2019 has been approved by the board and requires shareholder meeting approval for finalization[129]. - The company has committed to distributing at least 30% of its distributable profits as cash dividends in profitable years[127]. - The independent directors have reviewed and supported the profit distribution plan, ensuring the protection of minority shareholders' rights[129]. - The cumulative distributable profit of the parent company as of December 31, 2019, was approximately ¥550.43 million[128]. Research and Development - The company invested a total of ¥39,416,824.11 in R&D during the reporting period, which represents 5.31% of its operating revenue[63]. - The company applied for 35 patents and was granted 10 patents during the reporting period, including 3 invention patents and 7 utility model patents[62]. - The company has developed a series of high-performance composite membrane materials and advanced inorganic non-metallic membrane materials, including a high-strength zirconia ceramic ultrafiltration membrane with a particle size of 10-30nm[61]. - The company has established a comprehensive technology development platform based on a "target-oriented, reverse thinking" R&D principle, enhancing its core competitiveness through expanded R&D efforts[59]. - The company has focused on clean production processes and wastewater resource recovery technologies, developing innovative solutions for industries such as vitamins, starch sugars, and antibiotics[60]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[21]. - A strategic acquisition of a local competitor is in progress, which is anticipated to add an additional 200 million RMB in annual revenue[21]. - The company aims to achieve a sales revenue of 880 million RMB in 2020, driven by market opportunities in drinking water purification and wastewater treatment[121]. - The company intends to enhance its marketing network and expand into key industries such as pharmaceuticals, food, and petrochemicals[123]. Operational Efficiency and Risks - The company faces risks related to core competitiveness, particularly in technology upgrades and iterations, which are critical in the technology-intensive membrane application industry[83]. - There is a risk of research and development failures and challenges in converting technological achievements into marketable products, which could adversely affect the company's operating performance[83]. - The company is exposed to accounts receivable risks due to slow sales collections influenced by downstream customer cash flow and industry conditions, particularly in economically underdeveloped regions[84]. - The company’s main clients may experience significant fluctuations, impacting the demand for customized membrane equipment, which could lead to operational performance volatility[84]. Environmental Compliance - The company is committed to maintaining compliance with the GB18918-2002 standards, which is crucial for environmental sustainability and operational integrity[201, 202, 203, 204, 205, 206, 207, 208, 209, 210]. - The company has implemented environmental monitoring measures, including both manual and online continuous monitoring of pollutants[177]. - The company’s wastewater treatment facilities are required to meet specific discharge standards, including CODcr limits of 274 tons/year and total nitrogen limits of 82.13 tons/year for certain plants[173]. - The company has established emergency response plans for environmental incidents to mitigate potential impacts on the surrounding environment[176]. Corporate Governance - The company maintains a robust governance structure, ensuring compliance with laws and regulations, and has established a comprehensive internal management system[163]. - The company has committed to reducing related party transactions and will strictly adhere to market rules during necessary transactions[144]. - The company has implemented new financial instrument standards effective January 1, 2019, reclassifying non-trading equity investments as other equity instrument investments[146]. - The company has changed its auditing firm to Rongcheng Accounting Firm, maintaining the audit fee at RMB 1,200,000[148].