Financial Performance - The company achieved operating revenue of RMB 316.62 million in 2021, representing a year-on-year increase of 14%[20]. - Net profit attributable to shareholders reached RMB 66.40 million, up 20.13% compared to the previous year[20]. - The company reported a total revenue of 4,301.33 million RMB, with a gross profit of 1,810.10 million RMB and a net profit of 2,402.05 million RMB for the year[102]. - The company reported a revenue of 1.5 billion yuan for the fiscal year 2021, representing a year-over-year growth of 20%[184]. - The gross margin improved to 35%, up from 30% in the previous year, reflecting better cost management and pricing strategies[184]. Research and Development - Research and development expenses accounted for 5.72% of operating revenue, an increase of 0.36 percentage points from the previous year[21]. - R&D investment reached 18.101 million yuan, a year-on-year increase of 21.56%[31]. - The company increased its R&D personnel from 51 to 61, representing 18.37% of the total workforce, up from 12.94% in the previous year[105]. - Total R&D expenses amounted to 1,115.74 million RMB, with an average salary of 18.29 million RMB per R&D employee, compared to 15.16 million RMB previously[105]. - The company has developed 10 core technologies, including ePTFE membrane manufacturing and modification technologies, leading to stable production and sales of high-tech products[94]. Market Position and Strategy - The company operates in a niche market characterized by high technical barriers and high gross margins[12]. - The company is focusing on expanding its market presence in the new energy vehicle sector, leveraging its advanced material technologies to capture a larger share of this growing market[100]. - The company plans to continue investing in R&D, but faces risks related to the uncertainty of new product development outcomes[112]. - The company aims to customize products based on specific customer requirements, enhancing its competitive edge in the market[100]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in sales in that region[186]. Acquisitions and Investments - The company acquired 60% of Dayin Xisheng's equity in cash, expanding its aerogel business into the military sector[34]. - The company acquired 60% of Shanghai Dayin Xisheng New Materials Co., Ltd. for an investment of 156 million yuan, enhancing its market position in new materials[153]. - The company plans to acquire 60% equity of Shanghai Dayin Xisheng New Materials Co., Ltd. as part of its strategic expansion[194]. - The company has established partnerships with external research institutions, such as Zhejiang University and Changzhou University, to enhance its R&D capabilities[109]. - The company completed a strategic acquisition of a local competitor, enhancing its production capacity by 40%[186]. Operational Efficiency - The company primarily adopts a self-production model, with production plans based on customer orders and existing material inventory, ensuring efficient production scheduling[56]. - The company has established a strict supplier selection and rating system, ensuring strong bargaining power due to large order volumes and a wide selection of suppliers[55]. - The company has implemented a comprehensive information disclosure system to ensure timely and accurate communication with shareholders[172]. - The company emphasizes improving management efficiency and operating profit through cost awareness and innovative management techniques[163]. - The company has established a sound internal control system and governance structure, ensuring compliance with relevant laws and regulations[166]. Governance and Compliance - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report, with all board members present at the meeting[8]. - The company has established various committees under the board to provide professional opinions for decision-making[169]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[169]. - The company has not encountered any significant issues regarding independence from its controlling shareholder[172]. - The company has a clear succession plan in place, with new appointments aimed at strengthening management capabilities[181]. Product Development and Innovation - The company focuses on the development of advanced materials such as ePTFE and aerogels, which have unique properties for various applications[12]. - The company has established a comprehensive ePTFE membrane technology system, enabling the production of customized composite materials to meet diverse customer needs[106]. - The company has taken the lead in drafting industry standards for ePTFE membranes, indicating its advanced technical capabilities in various applications[84]. - The company has developed high-performance flexible circuit boards for 5G/6G communication, with a revenue contribution of 599.21 million, positioning itself as a leader in this critical technology[100]. - The company is conducting research on aerogel insulation materials for electric vehicles, with a total investment of ¥1.5 million and achieving practical patent certification[99]. Risks and Challenges - The company faces various operational risks, which are detailed in the "Management Discussion and Analysis" section of the report[4]. - The company is exposed to risks from raw material price fluctuations, particularly those linked to the oil and chemical industries[117]. - The company has a high customer concentration risk, primarily serving major automotive manufacturers[116]. - The company’s total liabilities increased due to the use of RMB 84 million in bank loans for the acquisition[22]. - The company plans to implement a new marketing strategy that is expected to increase brand awareness by 20% in the next year[186].

Revenue and Profit - Revenue for Q3 2021 was CNY 68,309,867.14, a decrease of 9.05% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was CNY 9,450,477.48, down 39.60% year-on-year[3]. - The basic earnings per share for Q3 2021 was CNY 0.14, a decrease of 53.45% compared to the same period last year[3]. - Total operating revenue for Q3 2021 reached ¥210,863,015.22, an increase of 13.5% compared to ¥185,225,318.66 in Q3 2020[22]. - Net profit for Q3 2021 was ¥43,318,884.04, representing a 30.0% increase from ¥33,317,002.90 in Q3 2020[23]. - The total comprehensive income attributable to the parent company for Q3 2021 was ¥43,422,551.05, compared to ¥33,317,002.90 in Q3 2020, representing a year-over-year increase of approximately 30.4%[24]. Assets and Liabilities - Total assets increased by 34.10% to CNY 824,560,021.66, attributed to the acquisition of 60% equity in Shanghai Dayin Xisheng New Materials Co., Ltd.[4][7]. - The company's total assets as of Q3 2021 amounted to ¥824,560,021.66, compared to ¥614,863,231.70 in the same period last year, reflecting a growth of 34.0%[18]. - Total liabilities increased to ¥230,996,033.00 in Q3 2021, up from ¥60,063,057.29 in Q3 2020, indicating a significant rise[18]. - The company’s total liabilities as of September 30, 2021, are not specified but are critical for assessing financial health[16]. Cash Flow - Cash flow from operating activities for the year-to-date period was CNY 51,857,020.21, up 95.61% year-on-year[3][7]. - The net cash flow from operating activities for the first three quarters of 2021 was ¥51,857,020.21, up from ¥26,509,818.27 in the same period of 2020, indicating a growth of about 95.5%[25]. - Cash inflow from operating activities totaled ¥196,209,365.28 for the first nine months of 2021, compared to ¥140,176,569.77 in 2020, reflecting an increase of approximately 40%[25]. - The company reported a net cash outflow from investing activities of ¥174,511,187.56 for the first three quarters of 2021, compared to a net outflow of ¥23,617,231.95 in the same period of 2020[25]. - The cash and cash equivalents at the end of Q3 2021 stood at ¥98,303,413.90, a significant increase from ¥9,787,120.17 at the end of Q3 2020[25]. - The company raised ¥183,000,000.00 through borrowings in Q3 2021, compared to ¥80,000,000.00 in Q3 2020, indicating a growth of 128.8% in financing activities[25]. - The net cash flow from financing activities for Q3 2021 was ¥97,045,302.78, a significant improvement from a net outflow of ¥7,825,350.11 in Q3 2020[25]. Research and Development - R&D investment totaled CNY 4,465,663.87, an increase of 25.56% compared to the same period last year, representing 6.54% of revenue[4]. - Research and development expenses for Q3 2021 were ¥11,868,615.56, compared to ¥10,046,511.41 in Q3 2020, showing an increase of 18.1%[22]. - The company developed a new high-performance aerospace cable insulation material, which has passed the certification by Jiangsu Provincial Department of Industry and Information Technology, filling a domestic gap in the market[12]. - The company aims to replace imported materials with domestically produced high-performance aerospace cable insulation materials, enhancing local manufacturing capabilities[12]. - The company’s strategic acquisition and product development initiatives are expected to drive future growth in the aerospace and new materials sectors[13]. Inventory and Receivables - The company’s inventory increased to RMB 66,073,413.50 from RMB 43,518,711.33, reflecting a rise of approximately 51.8%[16]. - Accounts receivable decreased to RMB 87,545,861.47 from RMB 107,796,485.83, showing a decline of about 18.7%[16]. - The company’s prepayments rose to RMB 4,510,428.18 from RMB 2,348,246.68, marking an increase of approximately 92.0%[16]. Management Expenses - Management expenses increased significantly due to higher financial advisory fees and employee welfare costs[7].

Financial Performance - The company's operating revenue for the first half of 2021 was RMB 142,553,148.08, representing a year-on-year increase of 29.45% compared to RMB 110,120,088.67 in the same period last year[18]. - The net profit attributable to shareholders of the listed company reached RMB 33,972,073.57, a significant increase of 92.26% from RMB 17,669,494.47 in the previous year[18]. - The net cash flow from operating activities increased by 72.22% to RMB 31,900,748.37, driven by sales growth and improved accounts receivable collection[20]. - The basic earnings per share rose to RMB 0.49, up 44.12% from RMB 0.34 in the same period last year[19]. - The company's total assets increased by 6.59% to RMB 655,393,259.85 compared to RMB 614,863,231.70 at the end of the previous year[18]. - The company reported a weighted average return on net assets of 6.07%, a slight decrease of 0.22 percentage points from 6.29% in the previous year[19]. - The net profit growth was attributed to continuous technological innovation, increased R&D investment, and the successful sales of core technology products such as ePTFE microvent products and CMD[19]. - The company reported a non-recurring profit of 4,559,157.41 RMB, primarily from government subsidies and other non-operating income[22]. - The company reported a non-recurring loss of 33,970.95 RMB from other operating income and a tax impact of -804,634.29 RMB[22]. - The company achieved total revenue of 142.55 million yuan, an increase of 29.45% compared to the same period last year[52]. - The net profit attributable to shareholders was 33.97 million yuan, up 92.26% year-on-year, while the net profit after deducting non-recurring gains and losses was 29.41 million yuan, an increase of 67.96%[52]. Research and Development - Research and development expenses accounted for 5.19% of operating revenue, a decrease of 0.7 percentage points from the previous year[19]. - Total R&D investment reached ¥7,402,951.69, an increase of 14.07% compared to the previous period, while the proportion of R&D investment to operating income decreased to 5.19% from 5.89%[38]. - The company has a total of 188 patents, including 37 invention patents, 145 utility model patents, and 2 design patents as of the end of the reporting period[36]. - The company applied for 15 new patents during the reporting period, including 8 invention patents[37]. - The company is currently developing a composite material technology for electric vehicle thermal insulation pads, with a total investment of ¥550,000 and ¥214,490 invested in the current period[41]. - The company has achieved significant progress in the development of ePTFE low-resistance membrane materials, with a total investment of ¥1,500,000 and ¥200,360 invested in the current period[41]. - The company is also researching high-performance CCL materials for 5G communication, with a total investment of ¥2,500,000 and ¥325,450 invested in the current period[41]. - The company has developed high-performance drying agents with a moisture absorption capacity of up to 200% of their own weight, addressing issues related to the main material of magnesium chloride[40]. - The company continues to focus on new materials and applications, aiming for import substitution in the niche market[40]. - The company has made advancements in the manufacturing technology of ePTFE membranes, enhancing their properties for various applications[40]. - The company has established collaborations with Zhejiang University for the development of SiO2 aerogel materials, achieving low thermal conductivity below 0.017 W/(m·K)[40]. Product Development and Market Expansion - The company specializes in high-performance composite materials, focusing on ePTFE membranes and SiO2 aerogels, with applications in automotive, consumer electronics, and new energy sectors[24]. - The ePTFE micro-permeable products have achieved import substitution and established stable partnerships with well-known domestic and international automotive lighting manufacturers[25]. - The company has developed a pressure relief valve for new energy vehicle battery packs, which is crucial for ensuring safety during battery operation[26]. - The CMD product addresses condensation issues in confined spaces and has potential applications in various industries, including automotive and 5G outdoor base stations[29]. - The company possesses 10 core technologies, enabling it to produce customized ePTFE membranes and components, significantly broadening its application fields[34]. - The company is expanding its product offerings to include applications in medical health, aerospace, and power communication sectors[24]. - The company’s sealing products, including seals and damping pads, are widely used in the automotive and home appliance industries[32]. - New products such as MEMS acoustic film and TRT cable film have been launched, expanding the product line to meet diverse customer needs[56]. - The company has established partnerships with several high-quality clients, achieving significant results in market expansion for core technology products[57]. Financial Position and Liabilities - The company's total liabilities included a significant increase in short-term borrowings, which rose to ¥49,047,590.28 from ¥500,427.78 in the previous year[79]. - The company’s total liabilities amounted to ¥101,621,011.87, compared to ¥60,063,057.29, reflecting an increase of about 69.2%[131]. - The total equity attributable to shareholders decreased slightly to ¥553,772,247.98 from ¥554,800,174.41, a decline of approximately 0.2%[131]. - The company reported a significant increase in accounts receivable, with figures rising to ¥85,626,487.16 from ¥107,483,183.94, a decrease of approximately 20.3%[132]. - The company’s cash and cash equivalents increased to ¥149,728,987.84, representing 22.85% of total assets, up from 20.17% in the previous year[79]. - The company’s accounts receivable decreased by 20.06% to ¥86,174,906.27 from ¥107,796,485.83 in the previous year[79]. - The company reported a total of ¥12,000,000.00 in trading financial assets as of June 30, 2021, which was not present in the previous year's report[129]. Corporate Governance and Compliance - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during this reporting period[6]. - The company has established environmental protection facilities that are operating normally, with no significant pollution incidents reported[94]. - The company has implemented measures to manage waste, including the treatment of wastewater and the handling of solid waste[91][92]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[95]. - The company has not initiated any employee stock ownership plans or other incentive measures during this period[88]. - There were no significant lawsuits or arbitration matters during the reporting period[106]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[105]. - There were no major related party transactions reported during the period[106]. - The company has not faced any violations or penalties involving its directors, supervisors, or senior management[106]. - The company has committed to avoiding competition with its controlled enterprises in product and business expansion[104]. - The company has not disclosed any related party transactions that have progressed or changed after being announced[107]. - The company has not engaged in any refinancing or equity incentive commitments during the reporting period[104]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 3,125[119]. - Zhang Yun holds 19,511,467 shares, representing 27.87% of the total shares[121]. - Jiangsu Southern Bearing Co., Ltd. holds 9,000,030 shares, accounting for 12.86% of the total shares[121]. - Changzhou Saifu High-tech Venture Capital Center holds 8,094,724 shares, which is 11.56% of the total shares[121]. - The total number of restricted shares at the beginning of the period was 55,617,360, with 726,560 shares released during the period[118]. - The total number of restricted shares at the end of the period is 54,890,800[118]. - The largest shareholder, Zhang Yun, has no pledged or frozen shares[121]. - The company has a total of 54,890,800 restricted shares remaining after the reporting period[118]. Future Outlook - The company remains optimistic about its business prospects and plans to hold its shares long-term[102]. - The company intends to reduce its holdings of shares within 24 months after the lock-up period, with a selling price not lower than the initial offering price[102]. - The company will avoid related party transactions with its controlling subsidiaries as much as possible[102]. - The company guarantees that it will not use related party transactions to illegally transfer funds or profits[102]. - The company will ensure that the prices of related party transactions are fair and comparable to those with independent third parties[102]. - The company will adhere to the regulations regarding share reduction and information disclosure[102]. - The company emphasizes the importance of maintaining clear controlling shareholders and actual controllers after the lock-up period[102]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations for the next 12 months[167]. - The company adheres to the accounting standards for enterprises, ensuring that its financial reports accurately reflect its financial position and operating results[170]. - The company has a short operating cycle, using 12 months as the standard for classifying the liquidity of assets and liabilities[172]. - The company’s accounting records are maintained in Renminbi (CNY) as its functional currency[173]. - Financial assets are classified into three categories upon initial recognition: (1) measured at amortized cost; (2) measured at fair value with changes recognized in other comprehensive income; (3) measured at fair value with changes recognized in profit or loss[179]. - Financial liabilities are classified into four categories upon initial recognition: (1) measured at fair value with changes recognized in profit or loss; (2) financial liabilities arising from the transfer of financial assets that do not meet derecognition criteria; (3) financial guarantee contracts and loan commitments at below market interest rates; (4) measured at amortized cost[180].

Financial Performance - Net profit attributable to shareholders increased by 166.49% to CNY 16,075,966.83 year-on-year[7] - Operating revenue rose by 62.15% to CNY 68,699,005.74 compared to the same period last year[7] - Basic earnings per share increased by 109.09% to CNY 0.23[7] - The company reported a net profit of CNY 17,037,209.66 for Q1 2021, reflecting a substantial increase from the previous year[27] - The net profit for Q1 2021 reached CNY 16,075,966.83, representing a significant increase of 166.5% from CNY 6,032,392.92 in Q1 2020[31] - The total profit for Q1 2021 was CNY 18,519,056.48, compared to CNY 6,349,889.06 in Q1 2020, marking an increase of 192.1%[31] - The company's operating profit for Q1 2021 was CNY 18,539,133.26, a substantial rise from CNY 6,456,362.64 in the same period last year, reflecting an increase of 187.5%[31] - The total comprehensive income for Q1 2021 was CNY 16,075,966.83, compared to CNY 6,032,392.92 in Q1 2020, reflecting an increase of 166.5%[32] Revenue and Costs - Revenue for the current period reached ¥68,699,005.74, a 62.15% increase compared to ¥42,367,460.22 in the same period last year, primarily due to increased sales of core technology products[14] - Operating costs amounted to ¥33,819,506.47, reflecting a 59.59% increase from ¥21,191,549.55, corresponding to the rise in revenue[14] - Total operating revenue for Q1 2021 was CNY 68,699,005.74, an increase of 62.0% compared to CNY 42,367,460.22 in Q1 2020[27] - Total operating costs for Q1 2021 were CNY 51,661,796.08, up 46.4% from CNY 35,292,119.67 in Q1 2020[27] - Gross profit for Q1 2021 was CNY 17,037,209.66, representing a gross margin of approximately 24.8%[27] Research and Development - Research and development expenses accounted for 6.18% of operating revenue, up from 5.77%[7] - Research and development expenses increased by 73.64% to ¥4,244,417.16 from ¥2,444,311.50, indicating a significant investment in R&D[14] - R&D expenses increased to CNY 4,244,417.16 in Q1 2021, compared to CNY 2,444,311.50 in Q1 2020, reflecting a growth of 73.5%[27] - Research and development expenses for Q1 2021 were CNY 4,244,417.16, up from CNY 2,444,311.50 in Q1 2020, showing a growth of 73.5%[31] Cash Flow and Financial Position - The net cash flow from operating activities increased by 34.34% to CNY 17,963,591.29[7] - Cash inflow from operating activities in Q1 2021 was CNY 64,819,484.84, compared to CNY 54,649,629.12 in Q1 2020, indicating an increase of 18.5%[34] - Net cash flow from operating activities for Q1 2021 was CNY 22,819,834.03, an increase of 67.3% compared to CNY 13,628,590.44 in Q1 2020[36] - Total cash inflow from operating activities was CNY 68,396,078.99, an increase of 25.4% from CNY 54,460,704.45 in Q1 2020[36] - Cash and cash equivalents increased to CNY 155,035,790.93 as of March 31, 2021, compared to CNY 118,928,082.40 at the end of 2020[24] - The ending balance of cash and cash equivalents reached CNY 155,035,790.93, up from CNY 8,284,774.36 at the end of Q1 2020[37] Shareholder Information - The number of shareholders reached 3,269 at the end of the reporting period[11] - The top shareholder, Zhang Yun, holds 27.87% of the shares, totaling 19,511,467 shares[11] Assets and Liabilities - Total assets increased by 9.35% to CNY 672,373,088.76 compared to the end of the previous year[7] - Total assets as of March 31, 2021, amounted to CNY 679,143,630.90, an increase from CNY 616,237,204.31 at the end of 2020[25] - Total liabilities as of March 31, 2021, were CNY 106,690,562.38, compared to CNY 59,760,965.82 at the end of 2020, indicating a significant increase[25] - Shareholders' equity totaled CNY 572,453,068.52 as of March 31, 2021, up from CNY 556,476,238.49 at the end of 2020[26] Investment Activities - The company signed a framework agreement to acquire 60% of Shanghai Dayin Xisheng New Materials Co., Ltd., with ongoing due diligence and asset evaluation[18] - Cash management activities included the use of idle funds for wealth management, with a maximum of ¥90 million approved for investment[16] - Total cash inflow from investment activities was CNY 245,934,468.74, significantly higher than CNY 64,600.00 in the same period last year[36] - Cash outflow from investment activities totaled CNY 280,565,998.70, compared to CNY 15,893,947.36 in Q1 2020, resulting in a net cash flow from investment activities of -CNY 34,631,529.96[36] Financing Activities - Short-term borrowings rose dramatically by 9702.18% to ¥49,052,830.78 from ¥500,427.78, indicating a significant increase in bank loans[15] - Cash inflow from financing activities was CNY 98,000,000.00, up from CNY 15,000,000.00 in Q1 2020[36] - Net cash flow from financing activities was CNY 48,028,549.77, a significant improvement from -CNY 3,735,809.92 in the previous year[37] - The company reported a cash outflow of CNY 49,971,450.23 for financing activities, compared to CNY 18,735,809.92 in Q1 2020[37]

Financial Performance - The basic earnings per share for 2020 was CNY 1.00, representing a 20.48% increase compared to CNY 0.83 in 2019[19] - The diluted earnings per share for 2020 was also CNY 1.00, reflecting the same 20.48% growth from the previous year[19] - The basic earnings per share after deducting non-recurring gains and losses was CNY 0.97, up 16.87% from CNY 0.83 in 2019[19] - Net profit attributable to shareholders was CNY 55,271,336.92, an increase of 26.37% compared to the previous year[21] - Operating revenue for 2020 was CNY 277,734,747.28, representing a year-on-year growth of 13.23%[21] - Operating profit reached 64.07 million yuan, reflecting a year-on-year growth of 26.14%[84] - The company achieved operating revenue of 277.73 million yuan, a year-on-year increase of 13.23%[101] - Net profit attributable to shareholders was 55.27 million yuan, marking a 26.37% increase year-on-year[101] Assets and Liabilities - Total assets increased by 44.66% compared to the beginning of the period, primarily due to the company's initial public offering, which led to an increase in cash funds[20] - By the end of 2020, net assets attributable to shareholders reached CNY 554,800,174.41, up 96.77% from the previous year[21] - Total assets increased by 44.66% to ¥614,863,231.70 from ¥425,051,304.49[188] - Total liabilities decreased by 58.03% to ¥60,063,057.29 from ¥143,102,729.96[188] - The asset-liability ratio improved to 9.77% from 33.67%, a reduction of 23.90%[188] Research and Development - Research and development expenses accounted for 5.36% of operating revenue, a decrease of 0.54 percentage points from 5.90% in 2019[19] - R&D investment totaled approximately ¥14.89 million, representing a 2.88% increase from the previous year, with R&D expenses accounting for 5.36% of total revenue[71] - The company has developed 10 core technologies, including precision die-cutting and specialized automation equipment, enhancing product quality and production efficiency[66] - The company has established a joint research center with Zhejiang University to tackle the mass production technology of SiO2 aerogel, enhancing its research capabilities[44] - The company has achieved a total of 264 intellectual property applications, with 186 granted, including 7 new invention patents and 5 granted during the reporting period[69] Market and Product Development - The company’s ePTFE micro-porous materials are applied in various industries, including automotive, consumer electronics, and new energy, with plans to expand into healthcare, aerospace, and power communication sectors[27] - The company is actively expanding into the consumer electronics market with its waterproof sound-permeable membrane products, which have already reached advanced industry levels and are used by brands like Xiaomi and Huawei[55] - The company is focusing on expanding its market presence in the fields of new energy power batteries and coaxial cables, aiming for advanced technology levels in these sectors[68] - The potential market space for ePTFE membrane products in the automotive and consumer electronics sectors exceeds ¥5 billion, indicating significant growth opportunities[126] Corporate Governance and Shareholder Relations - The company has established a comprehensive corporate governance structure and improved its internal control system to protect the rights of shareholders and creditors[168] - The company has implemented a cash dividend policy to reward shareholders and investors[168] - The company maintains a profit distribution policy that ensures at least 10% of the distributable profit is allocated as cash dividends in the first three years post-IPO[139] - The company’s profit distribution policy aims for continuity and stability, balancing shareholder returns with sustainable development[138] - The company has a structured communication process with shareholders, especially minority shareholders, to gather feedback on profit distribution proposals[145] Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[4] - The company has appointed Tianjian Accounting Firm as the auditor for the 2020 fiscal year, with a remuneration of CNY 1,000,000[153] - The company has not reported any significant environmental pollution incidents during the reporting period, with all environmental protection measures functioning effectively[176] - The company has not made any changes to its accounting policies or estimates during the reporting period[152] Investment and Fund Utilization - The total amount of raised funds is RMB 284.90 million, with RMB 165.42 million invested in the current year[164] - The cumulative amount of raised funds invested to date is RMB 165.42 million, which is 53.41% of the committed investment for the high-durability water pressure sound-permeable ePTFE project[164] - The company has utilized RMB 6 million and RMB 40 million of temporarily idle raised funds to purchase wealth management products from Industrial and Commercial Bank of China and CITIC Securities, respectively[166] Employee and Community Engagement - The company has created a good working environment for employees, ensuring fair compensation and promoting a culture of respect and inclusivity[169] - The company actively supports local economic development and has been a major taxpayer in the region, providing numerous job opportunities[173]

Financial Performance - Net profit attributable to shareholders increased by 37.60% to CNY 33,317,002.90 for the period from January to September[6] - Operating revenue for the first nine months rose by 10.38% to CNY 185,225,318.66 compared to the same period last year[6] - Basic and diluted earnings per share increased by 36.96% to CNY 0.63[7] - Total revenue for Q3 2020 reached ¥75,105,229.99, a significant increase from ¥55,409,604.28 in Q3 2019, representing a growth of approximately 35.5%[28] - Operating profit for Q3 2020 was ¥18,482,968.87, compared to ¥9,446,282.86 in Q3 2019, indicating an increase of about 95.5%[29] - Net profit for the first three quarters of 2020 was ¥33,317,002.90, up from ¥24,213,400.92 in the same period of 2019, reflecting a growth of approximately 37.5%[29] - The net profit for Q3 2020 was ¥15,245,898.87, up 78.5% from ¥8,554,705.16 in Q3 2019[33] - The total comprehensive income for Q3 2020 was ¥15,245,898.87, compared to ¥8,554,705.16 in Q3 2019, reflecting a growth of 78.5%[33] Assets and Liabilities - Total assets increased by 2.70% to CNY 436,521,365.21 compared to the end of the previous year[6] - Total assets as of September 30, 2020, amounted to ¥436,521,365.21 million, compared to ¥425,051,304.49 million as of the previous year[23] - The company's total liabilities decreased slightly to ¥142,300,124.13 million from ¥143,102,729.96 million year-over-year[22] - Total liabilities as of September 30, 2020, were ¥146,647,497.41, slightly down from ¥146,992,408.01 at the end of 2019[26] - The total equity increased to ¥296,845,444.47 as of September 30, 2020, from ¥284,121,015.56 at the end of 2019, reflecting a growth of about 4.5%[26] - The company's total assets as of the end of Q3 2020 were not disclosed, but the focus remains on maintaining a strong balance sheet[32] Cash Flow - Net cash flow from operating activities decreased by 8.54% to CNY 26,509,818.27 for the first nine months[6] - Cash flow from investing activities showed a net outflow of ¥23,617,231.95 million, an increase of 84.15% compared to the previous year, due to higher cash payments for fixed and intangible asset acquisitions[16] - The net cash flow from investing activities was -23,617,231.95 RMB for the first nine months of 2020, worsening from -12,824,797.40 RMB in the same period of 2019[35] - The ending cash and cash equivalents balance for Q3 2020 was 9,787,120.17 RMB, down from 17,700,820.39 RMB in Q3 2019, a decrease of 44.8%[35] - The company reported a net cash decrease of 5,034,921.74 RMB in Q3 2020, compared to an increase of 8,737,339.14 RMB in Q3 2019[35] Shareholder Information - The company had a total of 19 shareholders as of the report date[11] - The largest shareholder, Zhang Yun, holds 37.16% of the shares[12] Research and Development - R&D investment as a percentage of operating revenue decreased by 1.06 percentage points to 5.42%[7] - Research and development expenses for Q3 2020 were ¥3,556,700.50, compared to ¥4,149,597.19 in Q3 2019, showing a decrease of about 14.3%[29] Other Income and Expenses - Interest income decreased by 42.49% to ¥12,656.76 million due to a reduction in bank deposit balances[15] - Other income increased by 86.08% to ¥392,611.50 million, attributed to an increase in government subsidies[15] - Asset disposal gains rose by 196.79% to ¥70,190.95 million, reflecting an increase in fixed asset disposals[15] - The company reported a decrease in financial expenses to ¥1,179,551.27 in Q3 2020 from ¥712,287.19 in Q3 2019, indicating improved cost management[32] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32] - The outlook for the remainder of 2020 remains positive, with expectations for continued revenue growth and profitability improvements[32] Accounting Standards - The company has adopted new revenue and lease standards starting in 2020, impacting the financial statements[39] - The company adjusted its financial reporting to reflect new revenue recognition standards effective January 1, 2020, impacting contract liabilities[42] - The company has not applied the new leasing standards retrospectively[47]