Financial Performance - In 2022, the company's operating revenue declined significantly due to macroeconomic downturn, resulting in a net profit decrease of 77.10%[4] - In 2022, the company's operating revenue was CNY 393.65 million, a decrease of 20.27% compared to CNY 493.70 million in 2021[21] - The net profit attributable to shareholders was CNY 21.51 million, down 77.10% from CNY 93.93 million in the previous year[21] - The basic earnings per share decreased to CNY 0.18, a decline of 76.92% from CNY 0.78 in 2021[23] - The net cash flow from operating activities dropped by 71.22% to CNY 19.51 million, compared to CNY 67.79 million in 2021[24] - The gross profit margin for the reporting period was 33.09%, a decrease of 9.45 percentage points year-on-year[97] - Revenue from automotive aftermarket repair coatings was 195.01 million RMB, down 35.78% year-on-year[99] - Revenue from new automotive interior and exterior parts and body coatings was 142.95 million RMB, an increase of 28.32% year-on-year[99] Shareholder Returns - The company repurchased a total of 1,199,906 shares for a total amount of RMB 16,104,020.96, which accounted for 74.87% of the net profit attributable to shareholders[5] - The company plans not to distribute cash dividends for the 2022 fiscal year, opting instead to retain undistributed profits for future allocation[5] - The company plans to maintain a cash dividend policy where at least 10% of the distributable profit will be distributed in cash annually, with specific ratios depending on the development stage and capital expenditure plans[184] - The company’s cash dividend distribution for the year was not less than 30% of the average distributable profit over the last three years[184] Research and Development - The company is in a phase of continuous R&D investment and market development, indicating a focus on long-term growth despite current challenges[4] - Research and development expenses accounted for 6.08% of operating revenue, an increase of 0.73 percentage points from 5.35% in 2021[23] - The company invested a total of ¥23,953,003.99 in R&D during the reporting period, a decrease of 9.36% compared to ¥26,425,953.50 in the previous year[70] - The company has 58 invention patents and 17 utility model patents, with 168 invention patents under application[34] - The company is currently working on 5 key R&D projects, with total expected investments ranging from ¥130 million to ¥160 million for each project[73] - The company has developed a fast-drying intermediate paint for automotive repairs, which significantly reduces drying time and improves operational efficiency[63] Market Conditions and Risks - There is a risk of continued performance decline or losses if market demand does not recover, compounded by rising labor costs[4] - The company experienced a significant decline in terminal consumer market demand, impacting revenue and increasing production costs due to rising raw material prices[24] - The company faces risks from rising labor costs and fluctuating prices of raw materials, which constitute 70% of production costs[89] - The company has outlined various risks and corresponding mitigation measures in the report, emphasizing the importance of monitoring market conditions[4] Corporate Governance - The company has established a clear governance structure with defined roles and responsibilities among shareholders, the board, and management[155] - The total remuneration for the chairman and general manager, Zhu Zhongmin, was 846,100 RMB[158] - The company has not reported any issues regarding independence or operational autonomy from its controlling shareholders[155] - The company’s board of directors must provide detailed explanations if no cash dividend proposal is made despite positive distributable profits[191] Strategic Focus - The company is currently focused on enhancing its core competitiveness and maintaining stable operations amid economic challenges[4] - The company aims to enhance production capacity and improve product quality through the new plant project, integrating into the customer value chain[37] - The company plans to continue expanding its market presence and enhancing its product offerings through ongoing R&D efforts[74] - The company has a strategic focus on R&D, maintaining an independent team to continuously innovate and develop high-end automotive coatings[45] Operational Efficiency - The company has established a flat direct sales network with 9 subsidiaries and offices, covering key markets such as Beijing, Shanghai, and Guangzhou[85] - The company has a mature marketing network that extends to lower-tier cities, enhancing its market penetration[85] - The company plans to strengthen its management system to improve operational efficiency and risk management[151] - The company emphasizes collaboration with upstream suppliers for material development, enhancing its core competencies in polymer chemical materials[80]

2022 年第三季度报告 证券代码：688129 证券简称：东来技术 东来涂料技术（上海）股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上 年同期增减变 | | 年初至报告期末 | | --- | --- | --- | --- | --- | | | | | 年初至报告期末 | 比上年同期增减 | | | | 动幅度(%) | | 变动幅度(%) | | 营业收入 | 105,915,006.12 | -9.98 | 267,842,325.63 | -18.20 | ...

Financial Performance - The company reported a total revenue of RMB 200 million for the first half of 2022, representing a year-on-year increase of 15%[20]. - The gross profit margin for the reporting period was 30%, which is a slight decrease from 32% in the same period last year[20]. - Basic earnings per share decreased by 55.56% to CNY 0.16 compared to the same period last year[21]. - Net profit attributable to shareholders decreased by 55.86% to CNY 19.21 million, while net profit excluding non-recurring gains and losses decreased by 75.26% to CNY 8.19 million[23]. - Operating revenue fell by 22.81% to CNY 161.93 million compared to the same period last year[23]. - The company reported a net profit margin of approximately 5.0% for the first half of 2022, compared to 12.0% in the same period of 2021[160]. - The net profit for the first half of 2022 was CNY 19,210,866.50, down 56.0% from CNY 43,519,412.26 in the first half of 2021[162]. - The company reported a total of 53,352,000 restricted shares eligible for trading starting from October 23, 2023[145]. Research and Development - The company is investing RMB 50 million in R&D for new eco-friendly coating technologies aimed at reducing VOC emissions by 25%[20]. - The proportion of R&D investment to operating revenue increased by 0.83 percentage points to 6.50%[21]. - The company has a fully independent R&D team and system, continuously investing in the development of automotive coatings, industrial coatings, and color development, aiming to meet the standards of high-end automotive brands[35]. - The company achieved a total R&D investment of ¥10,531,894.06, a decrease of 11.53% compared to the previous year's ¥11,904,071.40[58]. - The company obtained 4 new invention patents during the reporting period, bringing the total number of invention patents to 54[56]. - The company is currently working on 5 key R&D projects with a total expected investment of ¥725 million, of which ¥367.69 million has been invested to date[60]. - The company has developed a high-performance water-based two-component epoxy primer with improved sanding properties, fast drying speed, and high hardness compared to existing technologies[51]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 20% for the second half of 2022, driven by new product launches and market expansion strategies[20]. - Market expansion efforts include entering two new provinces in China, which are expected to contribute an additional RMB 30 million in revenue by the end of 2022[20]. - The company aims to expand its market presence and enhance product offerings in the automotive and electronics sectors[27]. - The company is focusing on expanding its market presence through innovative product development and environmentally friendly technologies[52]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of 100 million allocated for potential deals[110]. Governance and Compliance - The company has maintained a stable governance structure with all board members confirming the accuracy of the financial report[11]. - There are no significant non-operating fund occupations by controlling shareholders or related parties reported[8]. - The company has maintained compliance with environmental regulations, with no incidents of pollution reported during the reporting period[99]. - The company has implemented regular inspections and third-party assessments to ensure environmental protection measures are effective[99]. - The company has not faced any administrative penalties related to environmental issues[99]. Risks and Challenges - The company faced challenges due to pandemic-related restrictions, impacting production and market demand[21]. - The company faces risks related to rising labor costs, intellectual property protection, and fluctuations in raw material prices[78]. - The company is facing potential risks related to safety production and environmental protection due to the nature of its chemical products[82]. Shareholder and Capital Management - The company announced no profit distribution or capital reserve transfer for the first half of 2022, with no dividends or stock bonuses planned[95]. - The company has committed to a share lock-up period of 36 months from the date of listing, during which no shares will be transferred or managed by others[102]. - The company will not repurchase shares held by the controlling shareholder during the lock-up period[103]. - The company will publicly disclose any failure to fulfill commitments and compensate investors for losses incurred due to non-compliance[107]. Product Development and Innovation - The company is focused on high-performance coatings for automotive and 3C consumer electronics, with a strong emphasis on R&D[27][29]. - The company has developed a technology for ultra-fast drying intermediate paint for automotive repairs, which saves energy and reduces construction time[50]. - The company has introduced a fast-drying automotive repair paint that can be polished within 25 minutes at room temperature, enhancing operational efficiency[51]. - The company has developed a new VOC water-based paint cleaner that is more environmentally friendly and cost-effective compared to existing technologies[54]. Financial Position and Assets - The company's total assets as of June 30, 2022, were 995.43 million yuan, a slight decrease of 0.28% compared to the same period last year[73]. - The total current assets decreased from CNY 917,172,695.63 to CNY 837,041,217.53, representing a decline of approximately 8.7%[153]. - Cash and cash equivalents decreased significantly from CNY 665,335,459.00 to CNY 69,322,971.35, a drop of about 89.6%[153]. - The company reported a total of 184 patent applications, with 72 patents granted to date[56].

Revenue and Profit - Revenue for Q1 2022 was CNY 76,476,430.92, representing a decrease of 19.92% compared to the same period last year[5] - Net profit attributable to shareholders was CNY 11,027,121.07, down 41.14% year-on-year[5] - Net profit excluding non-recurring gains and losses decreased by 60.57% to CNY 7,231,082.24[5] - Basic and diluted earnings per share were both CNY 0.09, down 43.75% year-on-year[5] - Total revenue for Q1 2022 was CNY 76,476,430.92, a decrease of 20% compared to CNY 95,495,368.63 in Q1 2021[17] - Net profit for Q1 2022 was CNY 11,027,121.07, a decline of 41% from CNY 18,733,747.82 in Q1 2021[19] - Basic and diluted earnings per share for Q1 2022 were CNY 0.09, down from CNY 0.16 in Q1 2021[19] Cash Flow and Assets - Operating cash flow turned negative at CNY -23,380,974.24, a decline of 451.36% compared to the previous year[5] - The company's cash and cash equivalents decreased significantly from ¥665,335,459.00 to ¥60,548,254.09, indicating a reduction of about 90.9%[14] - The total cash and cash equivalents at the end of Q1 2022 were CNY 60,548,254.09, down from CNY 91,468,231.23 at the end of Q1 2021[24] - The company’s cash flow from operating activities turned negative, contrasting with a positive cash flow of CNY 6,654,368.94 in Q1 2021[22] - The company reported a significant increase in cash paid for purchasing goods and services, totaling CNY 87,812,327.96, compared to CNY 60,764,700.77 in the previous year[22] - The company’s cash flow challenges are reflected in the overall net decrease in cash and cash equivalents of -CNY 604,787,204.91 for the quarter[24] Research and Development - R&D expenses totaled CNY 5,790,028.97, accounting for 7.57% of revenue, an increase of 1.04 percentage points[6] - Research and development expenses were CNY 5,790,028.97 in Q1 2022, down from CNY 6,235,456.70 in Q1 2021, indicating a potential shift in R&D focus[18] Assets and Liabilities - Total assets at the end of the reporting period were CNY 983,700,618.69, a decrease of 1.45% from the end of the previous year[6] - Total assets decreased to CNY 983,700,618.69 in Q1 2022 from CNY 998,179,453.09 in Q1 2021[16] - Total liabilities decreased to CNY 106,769,803.91 in Q1 2022 from CNY 134,383,324.84 in Q1 2021[16] - Non-current liabilities totaled CNY 3,818,377.35 in Q1 2022, slightly up from CNY 3,755,364.55 in Q1 2021[16] Market and Strategic Direction - The decline in profits was primarily attributed to the outbreak of COVID-19 in Shanghai and rising raw material prices[7] - The company increased inventory reserves significantly due to rising procurement costs[7] - The company has not disclosed any new product developments or market expansion strategies in the current report[12] - There are no significant changes in the company's strategic direction or mergers and acquisitions mentioned in the report[12] Shareholder Information - The company has a major shareholder, Shanghai Donglai Technology Co., Ltd., holding 44.46% of shares, and another significant shareholder, Zhu Zhongmin, holding 17.27%[10] - The company reported a total of 1,500,000 shares lent out through margin trading as of the reporting period[11] Financial Performance - The weighted average return on equity was 1.28%, a decrease of 1.08 percentage points[5] - The company reported a financial expense of CNY -513,379.75 in Q1 2022, an improvement from CNY -968,784.78 in Q1 2021[18] - Deferred tax assets were CNY 5,077,197.09 in Q1 2022, a decrease from CNY 5,572,034.82 in Q1 2021, reflecting changes in tax strategy[16]

Financial Performance - The net profit attributable to shareholders for 2021 was RMB 93.9262 million, with a proposed cash dividend of RMB 2.4 per 10 shares, totaling RMB 28.8 million, which represents 30.66% of the net profit[5]. - The company has not yet achieved profitability since its listing[4]. - The company's operating revenue for 2021 was ¥493.70 million, representing a 21.01% increase compared to ¥407.99 million in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥93.93 million, up 19.88% from ¥78.35 million in 2020[20]. - The net asset attributable to shareholders increased by 9.27% to ¥863.80 million at the end of 2021, compared to ¥790.53 million at the end of 2020[20]. - Total assets rose by 12.63% to ¥998.18 million at the end of 2021, compared to ¥886.21 million at the end of 2020[20]. - The basic earnings per share for 2021 was ¥0.78, a decrease of 4.88% from ¥0.82 in 2020[21]. - The net cash flow from operating activities for 2021 was ¥67.79 million, a decrease of 27.34% from ¥93.29 million in 2020[20]. - The company reported non-recurring gains of ¥20.95 million in 2021, compared to ¥7.73 million in 2020[25]. - The gross profit margin for the main business was 42.54%, a decrease of 3.07 percentage points compared to the previous year[103]. Research and Development - The R&D expenditure as a percentage of operating revenue was 5.35% in 2021, down from 6.26% in 2020[22]. - The company achieved a total R&D investment of ¥26,425,953.50 in 2021, representing a 3.48% increase from ¥25,536,368.36 in the previous year[71]. - The company obtained 8 new invention patents during the reporting period, bringing the total number of invention patents to 50[68]. - The company has developed core technologies in environmentally friendly water-based coatings, achieving significant advantages in safety and VOC reduction[63]. - The company continues to invest in R&D to enhance existing products and develop new ones, reflecting its commitment to innovation and market leadership[68]. - The company has invested a total of ¥485.12 million in the research of UV light absorbers and functional coatings, with an ongoing development of four invention patents[73]. - The company has developed a water-based infrared stealth coating, which is positioned as a leading product in the domestic market and advanced internationally, showcasing its competitive edge in high-tech materials[75]. Market and Industry Insights - The automotive paint industry in China had a market size of approximately $4.5 billion in 2019, accounting for 25% of the global market[51]. - The expected annual growth rate for the automotive paint market in China is 4.9%, with a projected market size of $5.6 billion by 2025[51]. - The automotive aftermarket repair coatings segment accounted for over 60% of the company's main business revenue, emphasizing its significance to overall performance[96]. - The automotive aftermarket repair coatings industry has high technical barriers, making it difficult for new entrants to replicate existing products quickly[55]. - The company is focusing on green and efficient technologies, including fully water-based products and high solid content coatings[59]. Operational and Strategic Initiatives - The company plans to maintain the total distribution amount unchanged even if the total share capital changes before the dividend record date[5]. - The company plans to continue expanding its market presence and invest in new product development to drive future growth[19]. - The company aims to enhance its market position by leveraging its unique competitive advantages and broad development prospects in the automotive repair coatings sector[58]. - The company is committed to long-term R&D processes, as evidenced by its advanced water-based automotive repair coatings and other innovative products that lead the global market[82]. - The company plans to enhance its internal management system, including risk control and internal audit mechanisms, to mitigate operational risks[147]. Corporate Governance and Management - The management has confirmed the accuracy and completeness of the financial report[5]. - There are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The report includes a standard unqualified audit opinion from Lixin Certified Public Accountants[4]. - The company has maintained independence and operational capability without any significant issues related to its controlling shareholder[157]. - The board of directors and senior management have maintained their shareholdings without any changes during the reporting period[161]. Employee and Talent Management - The number of R&D personnel increased to 78, representing 11.43% of the total workforce, up from 11% in the previous year, highlighting a commitment to innovation[80]. - The average salary for R&D personnel rose to 11.14 million RMB, an increase from 9.6 million RMB in the previous year, reflecting the company's investment in talent[80]. - The company has a competitive salary and benefits policy, linking employee compensation directly to their contributions and performance, with a focus on a performance-centered incentive system[186]. - The company has implemented a series of training programs to enhance employee skills and corporate culture, including onboarding and skills training[187]. Risks and Challenges - The company faces environmental risks due to increasing regulatory requirements and potential cost increases related to environmental compliance[98]. - The company's accounts receivable at the end of the reporting period stood at CNY 112.2568 million, representing 11.25% of total assets, highlighting potential bad debt risks[92]. - The company's inventory net amount was CNY 76.4907 million, making up 7.66% of total assets, indicating risks related to inventory turnover[93]. - The company enjoys a 15% corporate income tax rate as a high-tech enterprise, which could be adversely affected by changes in tax policies[94].

Financial Performance - The net profit attributable to shareholders for 2020 was RMB 78.3533 million, with a cash dividend distribution plan of RMB 2 per 10 shares, totaling RMB 24 million, which represents 30.63% of the net profit[5]. - The company's operating revenue for 2020 was CNY 407.99 million, a decrease of 12.75% compared to CNY 467.60 million in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 78.35 million, down 4.43% from CNY 81.99 million in 2019[20]. - The net cash flow from operating activities increased by 32.99% to CNY 93.29 million, primarily due to a reduction in accounts receivable and decreased expenses during the COVID-19 pandemic[25]. - The company's total assets at the end of 2020 reached CNY 886.21 million, reflecting a 121.22% increase from CNY 400.60 million at the end of 2019, mainly due to funds raised from the IPO[25]. - The weighted average return on equity decreased to 19.35% in 2020, down 10.64 percentage points from 29.99% in 2019[21]. - The basic earnings per share for 2020 was CNY 0.82, a decrease of 9.89% compared to CNY 0.91 in 2019[21]. - The net assets attributable to shareholders increased by 161.42% to CNY 790.53 million at the end of 2020, compared to CNY 302.40 million at the end of 2019[25]. - The company achieved a total revenue of 407.99 million RMB and a net profit attributable to shareholders of 78.35 million RMB in 2020, with earnings per share of 0.82 RMB[29]. Research and Development - Research and development expenses accounted for 6.26% of operating revenue in 2020, an increase of 0.49 percentage points from 5.77% in 2019[22]. - The company achieved a total R&D investment of ¥25,536,368.36 in 2020, a decrease of 5.33% compared to ¥26,975,287.81 in the previous year[64]. - R&D investment accounted for 6.26% of total revenue, an increase of 0.49 percentage points from 5.77% in the previous year[64]. - The company applied for 22 new invention patents and obtained 7 patents during the reporting period, bringing the total to 152 applied and 42 obtained[62]. - The company is currently developing a water-based scratch-resistant matte black paint, with a total investment of ¥155 million and a patent application submitted[66]. - The company has developed a high-quality pearl effect paint, with a patent application number 201611246235.4[61]. - The company is focusing on the development of safety and environmentally friendly water-based cleaning agents, which are produced by mixing volatile organic solvents and water[59]. - The company has a total of 170 patents, including 60 granted patents across various categories[62]. Market Position and Strategy - The company is positioned as a representative Chinese brand in a market dominated by five major international brands, indicating a unique competitive advantage[52]. - The automotive coatings industry in China is expected to grow at an average annual rate of 4.9%, reaching a market size of $5.6 billion by 2025[45]. - The company plans to continue expanding its market presence and invest in new product development to drive future growth[25]. - The company has established partnerships with new energy vehicle manufacturers like NIO and XPeng, collaborating on color design and customization for vehicle exteriors[164]. - The company aims to enhance its market position in the automotive aftermarket repair paint sector by developing new customers and increasing product offerings to existing clients, targeting a larger market share[162]. - The company plans to invest CNY 40,000 million in a new project for "10,000 tons of water-based environmentally friendly automotive coatings" to enhance production capacity and quality[94]. Operational Risks and Management - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The report includes a forward-looking statement risk disclaimer, indicating uncertainties in future plans and strategies[6]. - The company is committed to enhancing its management system, including risk control and internal audit mechanisms, to mitigate operational risks and improve overall management efficiency[171]. - The company will focus on talent recruitment and training to optimize employee structure and enhance skills, aiming to support rapid future growth[172]. Shareholder and Dividend Policies - The company emphasizes a cash dividend policy, ensuring that at least 10% of the distributable profit is allocated as cash dividends annually, with a cumulative minimum of 30% over three years[177]. - The company will maintain a stable cash dividend policy, with specific conditions for adjustments based on future investment plans and financial performance[178]. - The company reported a net profit of RMB 78.35 million for 2020, with a proposed cash dividend of RMB 2 per 10 shares, totaling RMB 24 million, which represents 30.63% of the net profit attributable to shareholders[179]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[184]. Compliance and Governance - The company has adhered to relevant laws and regulations regarding the transfer of shares by controlling shareholders[186]. - The company has established measures to ensure compliance with shareholding commitments, including returning any profits gained from unfulfilled commitments to the company[191]. - The company is subject to restrictions on share reduction during investigations or penalties by regulatory authorities[190]. - The company must disclose the details of any share reduction plan, including the number of shares, source, and reasons for reduction[190].

Financial Performance - The company's operating revenue for Q3 2021 was ¥117,663,280.91, representing a year-over-year increase of 6.57%[5] - The net profit attributable to shareholders for Q3 2021 was ¥20,584,909.05, a decrease of 13.17% compared to the same period last year[5] - The basic earnings per share for Q3 2021 was ¥0.17, down 34.02% due to an increase in the number of shares issued and a decline in net profit[10] - The net profit attributable to shareholders for the year-to-date period was ¥64,104,321.31, an increase of 16.96% compared to the same period last year[5] - Total operating revenue for the first three quarters of 2021 reached ¥327,453,709.68, an increase of 16.6% compared to ¥280,852,730.07 in the same period of 2020[19] - Net profit for the first three quarters of 2021 was ¥64,104,321.31, representing a 16.5% increase from ¥54,809,263.34 in the same period of 2020[21] Research and Development - Research and development expenses totaled ¥6,462,271.15 for Q3 2021, an increase of 43.11% year-over-year, accounting for 5.49% of operating revenue[6] - Research and development expenses for the first three quarters of 2021 were ¥18,366,342.55, up from ¥15,371,234.74 in the same period of 2020[19] Cash Flow and Liquidity - The cash flow from operating activities for the year-to-date period decreased by 51.15%, primarily due to increased procurement costs from rising raw material prices[10] - Cash and cash equivalents decreased significantly to ¥97,259,031.68 from ¥569,873,310.18, indicating a decline of about 83%[15] - Net cash flow from operating activities decreased to CNY 25,762,530.15 in Q3 2021, down 51.1% from CNY 52,736,098.32 in Q3 2020[24] - Cash inflow from investment activities surged to CNY 779,351,972.83 in Q3 2021, compared to CNY 10,530,870.54 in Q3 2020[24] - The company reported a net decrease in cash and cash equivalents of CNY -472,614,278.50 in Q3 2021, contrasting with an increase of CNY 57,140,705.20 in Q3 2020[25] Assets and Liabilities - Total assets at the end of Q3 2021 were ¥928,153,505.10, reflecting a 4.73% increase from the end of the previous year[6] - Total current assets as of September 30, 2021, amounted to ¥848,559,579.77, an increase from ¥812,635,454.94 at the end of 2020, reflecting a growth of approximately 4.5%[15] - Total liabilities at the end of the third quarter of 2021 were ¥95,462,820.39, slightly down from ¥95,685,323.65 in the previous year[17] - Non-current assets totaled ¥79,593,925.33, an increase from ¥73,577,123.85 in the previous year[17] Shareholder Information - The company reported a total of 6,212 ordinary shares outstanding at the end of the reporting period[12] - The largest shareholder, Shanghai Donglai Technology Co., Ltd., holds 53,352,000 shares, representing 44.46% of total shares[12] - The second-largest shareholder, Zhu Zhongmin, owns 20,718,000 shares, accounting for 17.27%[12] Other Notable Information - The company has not disclosed any significant new product developments or market expansion strategies during the reporting period[14] - There are no significant mergers or acquisitions reported in the current financial period[14]

Financial Performance - The company's operating revenue for the first half of the year reached ¥209.79 million, representing a year-on-year increase of 23.08%[20]. - Net profit attributable to shareholders increased by 39.93% to ¥43.52 million compared to the same period last year[21]. - The basic earnings per share rose to ¥0.36, up 2.86% from ¥0.35 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥33.11 million, an increase of 11.89% year-on-year[20]. - The company reported a total revenue of 2,810.00 million RMB for the period, with a net profit of 1,190.40 million RMB, representing a year-on-year increase of 73.01%[68]. - The net profit attributable to the parent company was 43.52 million yuan, reflecting a year-on-year growth of 39.93%[80]. - The company reported a total of 53,352,000 shares held by Shanghai Donglai Technology Co., Ltd., with a lock-up period ending on October 23, 2023[157]. Research and Development - The company achieved a total R&D investment of ¥11,904,071.40, representing a 9.66% increase compared to the previous period's ¥10,855,749.86[59]. - R&D investment accounted for 5.67% of total revenue, a decrease of 0.70 percentage points from the previous year's 6.37%[59]. - The company obtained 4 new invention patents during the reporting period, bringing the total number of invention patents to 152[55]. - The company has a fully independent R&D team focused on high-end automotive coatings, continuously investing in technology to meet international standards[34]. - The company is focusing on developing new products, including high-performance coatings with improved durability and aesthetic qualities, targeting the automotive industry[72]. Market Position and Strategy - The company is listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board under the stock code 688129[18]. - The automotive paint market in China was valued at approximately $4.5 billion in 2019, with a projected annual growth rate of 4.9%, potentially reaching $5.6 billion by 2025[42]. - Major competitors in the automotive aftermarket repair coatings market include international brands such as PPG, BASF, Axalta, and AkzoNobel, indicating high industry barriers and stable competition[45]. - The company has established a unique competitive advantage as the only Chinese brand in the "5+3+2+1" market structure of automotive repair coatings, which includes 5 European and American brands, 3 Japanese brands, and 2 Korean brands[49]. - The company emphasizes long-term market accumulation to maintain stable sales channels and a comprehensive service network, which poses challenges for new entrants[47]. Environmental and Social Responsibility - The company strictly complied with environmental laws and regulations, with no incidents of environmental pollution reported during the reporting period[112]. - The company actively participates in poverty alleviation and rural revitalization initiatives, demonstrating its commitment to social responsibility[113]. - The company's environmentally friendly products reduce VOC emissions and improve worker safety, aligning with industry trends towards sustainability[50]. - The company has established a mechanism for regular environmental inspections and third-party assessments to ensure compliance with environmental standards[112]. Corporate Governance - The board of directors confirmed that all members attended the board meeting, ensuring the report's authenticity and completeness[5]. - The company has not faced any issues with more than half of the directors being unable to guarantee the report's authenticity[11]. - The company has not violated decision-making procedures for external guarantees[10]. - The company has committed to adhering to relevant laws and regulations regarding the transfer of shares by major shareholders and executives[118]. Financial Position and Assets - The company's total assets grew by 2.63% to ¥909.52 million compared to the end of the previous year[20]. - Cash and cash equivalents decreased by 74.87% to ¥143,233,094.39, primarily due to significant investments in financial products during the reporting period[101]. - The net value of accounts receivable at the end of the reporting period was CNY 80.72 million, accounting for 8.88% of total assets, posing a potential bad debt risk[96]. - The company has a production capacity of 10,000 tons for oil-based coatings and 2,000 tons for water-based coatings, facing risks from the industry's shift towards water-based products[92]. Shareholder Commitments and Stock Management - The company has implemented a stock lock-up commitment for 36 months from the date of listing, prohibiting the transfer or management of shares held prior to the IPO[116]. - The company will disclose any share reduction plans 15 trading days prior to the first sale, including details such as quantity and price range[120]. - The company has committed to holding shares according to Chinese laws and regulations, with a lock-up period of 4 years for core technical personnel[122]. - The company will initiate a share repurchase plan within 10 trading days if stock price stabilization measures are triggered, with the repurchase price not exceeding the latest audited net asset value per share[123].

Financial Performance - Operating revenue rose by 47.28% to CNY 95,495,368.63 year-on-year[6] - Net profit attributable to shareholders increased by 93.09% to CNY 18,733,747.82 compared to the same period last year[6] - Basic earnings per share improved by 45.45% to CNY 0.16 per share[6] - The company's operating revenue for Q1 2021 was CNY 95,495,368.63, an increase of 47.3% compared to CNY 64,817,530.78 in Q1 2020[29] - The net profit for Q1 2021 reached CNY 18,733,747.82, representing an increase of 93.1% from CNY 9,702,110.00 in Q1 2020[28] - The company's operating profit for Q1 2021 was CNY 21,960,083.43, compared to CNY 11,583,369.09 in Q1 2020, marking an increase of 89.5%[28] - The total profit for Q1 2021 was CNY 21,938,072.15, an increase of 89.5% from CNY 11,571,080.26 in Q1 2020[28] - The total comprehensive income for Q1 2021 was CNY 18,733,747.82, compared to CNY 9,702,110.00 in Q1 2020, reflecting a growth of 93.1%[28] Cash Flow - Cash flow from operating activities surged by 191.07% to CNY 6,654,368.94 year-to-date[6] - The net cash flow from operating activities for Q1 2021 was CNY 6,654,368.94, compared to CNY 2,286,212.68 in Q1 2020, showing a significant improvement[33] - The company achieved a net cash inflow from operating activities of CNY 117,036,519.69 in Q1 2021, compared to CNY 102,369,373.06 in Q1 2020, reflecting a growth of 14.3%[33] - Total cash inflow from operating activities was ¥116,746,963.75, up from ¥102,198,991.93 in the same period last year, representing a growth of 14.2%[35] - The net cash flow from investing activities was -¥480,135,632.23, a significant decrease from ¥10,081,513.56 in Q1 2020[36] - The company experienced a net decrease in cash and cash equivalents of -¥470,073,039.20 for Q1 2021, contrasting with an increase of ¥16,150,520.12 in Q1 2020[36] Assets and Liabilities - Total assets increased by 0.95% to CNY 894,615,144.01 compared to the end of the previous year[6] - The total assets as of March 31, 2021, were RMB 894,615,144.01, compared to RMB 886,212,578.79 at the end of 2020[19] - The total monetary funds decreased by 83.95% to RMB 91,468,231.23 from RMB 569,873,310.18 at the beginning of the year[13] - The trading financial assets surged by 999.01% to RMB 533,607,022.00, compared to RMB 48,553,244.30 at the start of the year[13] - The total liabilities decreased from RMB 95,182,337.00 to RMB 84,140,166.27, indicating a reduction in current liabilities[19] - Total liabilities decreased to ¥73,001,842.64 in Q1 2021 from ¥80,498,220.38 in Q1 2020, a reduction of approximately 9.3%[23] Shareholder Information - The total number of shareholders reached 7,177 by the end of the reporting period[10] - The largest shareholder, Shanghai Donglai Technology Co., Ltd., holds 44.46% of the shares[10] Expenses - Research and development expenses as a percentage of operating revenue decreased by 1.90 percentage points to 6.53%[6] - The company's sales expenses increased by 34.64% to RMB 13,775,144.09 from RMB 10,231,360.75 in the previous year[14] - Research and development expenses increased to ¥6,235,456.70 in Q1 2021 from ¥5,467,130.55 in Q1 2020, representing a 14% rise[27] - The company's income tax expenses rose by 71.45% to RMB 3,204,324.33, compared to RMB 1,868,970.26 in the previous year[14] - The other income decreased by 91.55% to RMB 102,361.80, down from RMB 1,210,982.76 in the same period last year[14] Inventory and Prepayments - Inventory levels rose to ¥73,849,655.80 in Q1 2021 from ¥63,321,916.98 in Q1 2020, marking a 16.5% increase[22] - The prepayments increased by 420.07% to RMB 2,705,829.36 from RMB 520,285.63, indicating new procurement prepayments[13]

Financial Performance - The net profit attributable to shareholders for 2020 was RMB 78.3533 million, with a proposed cash dividend of RMB 2 per 10 shares, totaling RMB 24 million, which accounts for 30.63% of the net profit[5]. - The company's operating revenue for 2020 was CNY 407.99 million, a decrease of 12.75% compared to CNY 467.60 million in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 78.35 million, down 4.43% from CNY 81.99 million in 2019[20]. - The basic earnings per share for 2020 was CNY 0.82, a decrease of 9.89% from CNY 0.91 in 2019[21]. - The company reported non-operating income of CNY 7.73 million for 2020, compared to CNY 8.08 million in 2019[27]. - The gross profit margin for the reporting period was 47.37%, an increase of 1.61% compared to the previous year[113]. - The gross profit margin for the overall business was 47.37%, which represents an increase of 1.62 percentage points year-on-year[116]. - The company reported a significant decrease in revenue across several regions, particularly in Northeast and North China, due to the impact of the pandemic[117]. Assets and Liabilities - The total assets at the end of 2020 reached CNY 886.21 million, reflecting a 121.22% increase from CNY 400.60 million at the end of 2019, mainly due to the funds raised from the IPO[25]. - The company's total assets as of December 31, 2020, were CNY 88,621.26 million, an increase of 121.22% compared to the previous year[91]. - The total liabilities increased by 36.05% to 19.10 million RMB, primarily due to the accrual of employee salaries and performance bonuses[133]. - The company's cash and cash equivalents at the end of the period amounted to 569.87 million RMB, representing 64.30% of total assets, an increase of 412.18% compared to the previous period[133]. Research and Development - The R&D expenditure as a percentage of operating revenue increased to 6.26% in 2020, up from 5.77% in 2019[22]. - The company achieved a total R&D investment of ¥25,536,368.36 in 2020, a decrease of 5.33% compared to ¥26,975,287.81 in the previous year[64]. - The company applied for 22 new invention patents and obtained 7 patents during the reporting period, bringing the total to 152 applied and 42 obtained[62]. - The company is focusing on optimizing coating formulas to enhance the aesthetic and protective functions of automotive coatings, which are critical for commercial value[81]. - The company has established various collaborative models with upstream suppliers for joint R&D, enhancing its innovation capabilities[81]. Market Position and Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[25]. - The company is positioned within a competitive landscape dominated by five major international brands, with only Donglai Technology representing a Chinese brand[52]. - The company aims to enhance its market position in the automotive aftermarket repair paint sector by increasing customer acquisition and expanding its market share through direct sales and authorized dealer management[162]. - The company plans to develop high-performance, environmentally friendly products, transitioning from oil-based to water-based paints, in response to stricter VOC emission regulations[164]. Operational Risks and Compliance - The company has outlined various operational risks and corresponding mitigation measures in the report[4]. - The report includes a forward-looking statement risk declaration, indicating uncertainties in future plans and strategies[6]. - The company has not reported 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 is committed to enhancing its management system, including risk control and internal audit mechanisms, to mitigate operational risks[171]. Shareholder and Dividend Policies - The company emphasizes a cash dividend policy, ensuring that at least 10% of the distributable profit is allocated as cash dividends annually, with a cumulative minimum of 30% over three years[177]. - The cash dividend payout ratio for 2020 was 30.63%, reflecting a commitment to returning value to shareholders[183]. - The company did not propose any cash profit distribution plan for the reporting period despite having positive distributable profits[184]. - The company has committed to a 36-month lock-up period for major shareholders starting from the date of listing, preventing them from transferring or managing their shares[186]. Innovations and New Technologies - The company has developed an environmentally friendly water-based two-component automotive repair paint with reduced VOC emissions and improved safety for workers[56]. - The company is focusing on expanding its product line with new technologies aimed at improving performance and environmental sustainability[58][59]. - The company is developing a high-adhesion water-based transfer coating, which is expected to have excellent performance and broad applications in automotive interiors[72]. - The company is investing in a digital color technology platform, integrating features like electronic color measurement and cloud computing, to enhance manufacturing intelligence and information sharing[167]. Sales and Distribution - The sales model is primarily direct sales, with automotive aftermarket repair coatings sold directly to OEMs and authorized 4S stores[42]. - The company has established a flat direct sales network with 9 branches covering key regional markets[88]. - The company adopts a regional distribution model for areas not covered by its direct sales team, with authorized dealers primarily serving automotive 4S stores[44].