Financial Performance - The company's operating revenue for 2020 was approximately ¥1.20 billion, a decrease of 16.86% compared to ¥1.45 billion in 2019[36]. - The net profit attributable to shareholders for 2020 was approximately ¥186.41 million, down 43.46% from ¥329.73 million in 2019[36]. - The net cash flow from operating activities decreased by 80.70% to approximately ¥91.13 million in 2020, compared to ¥472.13 million in 2019[36]. - The company's total assets increased by 10.84% to approximately ¥2.94 billion at the end of 2020, up from ¥2.65 billion at the end of 2019[36]. - The return on equity (ROE) for 2020 was 7.31%, a decrease of 14.9 percentage points from 22.21% in 2019[36]. - The basic earnings per share for 2020 was ¥0.81, a decline of 51.50% compared to ¥1.67 in 2019[36]. - The net profit after deducting non-recurring gains and losses was approximately ¥163.80 million, down 47.68% from ¥313.09 million in 2019[36]. - The company's net assets attributable to shareholders increased by 3.45% to approximately ¥2.61 billion at the end of 2020[36]. - The company experienced a significant decline in gross profit margin and related government subsidies during the reporting period, impacting overall profitability[39]. - The company's operating revenue for Q4 was 413,312,291.38 RMB, showing a significant increase compared to Q3's 383,469,965.51 RMB, representing a growth of approximately 7.2%[40]. - The net profit attributable to shareholders for Q4 reached 69,909,970.60 RMB, up from 58,896,991.80 RMB in Q3, indicating a growth of about 18.5%[40]. - The net cash flow from operating activities in Q4 was 223,783,210.60 RMB, a substantial recovery from the negative cash flow of -86,326,529.98 RMB in Q3[40]. - The company reported a total of 6,904,169.98 RMB in government subsidies recognized in 2020, which positively impacted the net profit[42]. - The company achieved a total revenue of ¥1,202,178,945.26, representing a decrease of 16.86% compared to the previous year[115]. - The net profit attributable to shareholders was ¥186,414,420.41, down 43.46% year-over-year[115]. - Operating costs amounted to ¥910,729,967.83, a decrease of 3.55% from the previous year[117]. - The net cash flow from operating activities was ¥91,133,245.61, reflecting a significant decline of 80.70% compared to the previous year[117]. Research and Development - Research and development expenses accounted for 6.03% of operating revenue in 2020, an increase of 1.66 percentage points from 4.37% in 2019[39]. - The total R&D investment for the year was approximately ¥72.43 million, representing a 14.70% increase from the previous year, with R&D expenses accounting for 6.03% of operating revenue[78][79]. - The company has initiated 15 R&D projects during the reporting period, with 8 projects meeting their expected R&D assessment goals[79]. - The company’s R&D team consists of industry veterans, contributing to the long-term development and optimization of copper foil manufacturing processes[66]. - The company has developed multiple core technologies for lithium battery copper foil, including ultra-thin and extremely thin copper foil manufacturing technology, additive technology, and cathode roller grinding technology[66][67][71]. - The company applied for 53 technology patents during the reporting period, including 47 invention patents, and obtained 44 patents, bringing the total number of patents to 256[77][78]. - The company’s proprietary additive technology significantly enhances the tensile strength and elongation of lithium battery copper foil, making it suitable for various types of lithium-ion battery anodes[71][74]. - The company has achieved a high level of technical capability in the industry, with its core technologies being recognized as advanced and protected by patents[71][74]. - The company has invested significantly in R&D, establishing a technology research center and collaborating with universities to maintain its technological edge in the industry[64]. Market and Competitive Landscape - The company faces risks related to new product and technology development, requiring continuous innovation to meet market demands in the increasingly competitive copper foil industry[7]. - The company’s main products are ultra-thin and extremely thin lithium battery copper foils, with a significant dependency on lithium-ion battery manufacturers, leading to risks from concentrated downstream applications[11]. - The company’s core technology in lithium battery copper foil has certain gaps compared to leading domestic and international competitors, which could impact its market position if not addressed[10]. - The company is actively exploring domestic and international markets for lithium-ion batteries and printed circuit boards to mitigate risks associated with the pandemic[15]. - The company’s ability to adapt to market opportunities and technological advancements is crucial for maintaining its competitive edge in the copper foil market[13]. - The competitive landscape includes companies like Nord Investment Co. and Guangdong ChaoHua Technology, with Nord holding a significant market share in the domestic power lithium battery copper foil sector[61]. - The company has established long-term partnerships with major domestic lithium-ion battery manufacturers, becoming a core supplier of lithium battery copper foil[61]. - The market trend indicates a growing demand for ultra-thin copper foil (≤6μm) as a key raw material for lithium-ion batteries, with a focus on enhancing energy density and battery capacity[65]. - The company is facing competitive pressure as new production capacities from other manufacturers are gradually being released[97]. - The company is sensitive to macroeconomic changes; any significant economic downturn could negatively affect demand in the lithium-ion battery and PCB industries, leading to slower business growth[108]. - The company is positioned as a leading supplier of lithium battery copper foil in China, benefiting from the rapid growth of the lithium-ion battery industry driven by the booming electric vehicle market[158]. Risk Factors - The company acknowledges the risk of declining gross margins due to potential adverse changes in product pricing and raw material costs amid intensified market competition[14]. - The company faces risks from potential market fluctuations in copper prices, which could affect sales revenue and gross margins[106]. - The concentration of the company's product structure and downstream application fields poses a risk; any decline in sales of lithium battery copper foil due to market competition or technological changes could significantly impact performance[106]. - There is a risk that hydrogen fuel cell technology could potentially replace lithium-ion batteries, which may impact the company's market position if it fails to adapt[107]. - The company has a high demand for working capital due to the capital-intensive nature of the copper foil industry, and rising copper prices could increase cash flow pressure[106]. - The company emphasizes risk management and has strengthened its internal control systems to mitigate operational risks[97]. - The company is facing risks related to environmental regulations and potential increases in compliance costs[114]. Production and Operations - The company adopts a direct sales model, with a stable supply chain for raw materials like copper wire and sulfuric acid, ensuring consistent production capabilities[54]. - The production strategy is based on "sales-driven production," aligning manufacturing schedules with customer orders to optimize efficiency[55]. - The company has established a stable production capacity for ultra-thin and extremely thin electrolytic copper foil, contributing to its position as a core supplier for major power battery manufacturers[64]. - The company focuses on producing ultra-thin copper foil greater than 6 microns to meet the increasing demand from the rapidly growing electric vehicle industry[97]. - The company plans to enhance its production capacity and has recruited 234 new employees, including 85 with a college degree or higher[97]. - The company plans to enhance production capacity and meet downstream customer demand by increasing standard copper foil production[121]. Dividend Policy - The company plans to distribute a cash dividend of 2.5 yuan per 10 shares, totaling approximately 57.72 million yuan based on the current total share capital of 230,876,000 shares[17]. - The company emphasizes a stable profit distribution policy, with a minimum cash distribution of 30% of the average distributable profit over three years[168]. - The company will prioritize cash dividends when conditions are met, with a minimum of 80% cash distribution in mature stages without major investment plans[168]. - The company has not proposed a cash distribution plan for the reporting period despite positive profits, which is not applicable in this case[172]. - The company’s profit distribution policy requires independent directors to provide clear opinions on cash dividend proposals[169]. - The company will review its future dividend distribution plan at least every three years, requiring approval from independent directors and the board[169]. Corporate Governance and Compliance - The company guarantees that the prospectus does not contain any false records, misleading statements, or major omissions, and assumes individual and joint legal responsibility for its authenticity, accuracy, and completeness[187]. - The company commits to not transferring benefits to other units or individuals under unfair conditions and will not use company assets for unrelated investments or consumption activities[190]. - The remuneration system for directors and senior management will be linked to the execution of the company's compensation measures[190]. - The company will ensure that the public offering of shares and listing on the Sci-Tech Innovation Board does not involve any fraudulent issuance[192]. - The company will publicly explain any failure to fulfill commitments in shareholder meetings and designated publications[182].

Financial Performance - Operating revenue decreased by 32.76% to CNY 788,866,653.88 for the period from January to September[17] - Net profit attributable to shareholders decreased by 56.57% to CNY 116,504,449.81 for the same period[17] - Basic earnings per share dropped by 65.28% to CNY 0.50[17] - The company's operating revenue for the current period was RMB 788,866,653.88, a decrease of 32.76% from RMB 1,173,272,162.64 in the same period last year, mainly due to the impact of the pandemic[35] - The company's net profit for Q3 2020 was CNY 58,441,898.24, a decrease from CNY 87,441,313.70 in Q3 2019, representing a decline of approximately 33.3%[66] - Net profit for the first three quarters of 2020 was approximately ¥137.35 million, a decrease of 56.5% compared to ¥315.67 million in the same period of 2019[57] - Operating profit for Q3 2020 was approximately ¥68.86 million, down 33.7% from ¥103.87 million in Q3 2019[57] Cash Flow and Liquidity - Net cash flow from operating activities was negative at CNY -132,649,964.99, a decrease of 173.24% compared to the previous year[17] - The net cash flow from operating activities for the first three quarters of 2020 was -132,649,964.99 RMB, compared to 181,110,636.72 RMB in the same period of 2019, indicating a significant decline[72] - Total cash outflow from operating activities was 763,490,680.14 RMB, compared to 978,838,845.31 RMB in the same period of 2019, showing a decrease of 22.0%[72] - The company reported a total cash inflow of 275,431,035.34 RMB in the third quarter of 2020, compared to 181,916,013.48 RMB in the same quarter of 2019[74] - The cash and cash equivalents at the end of the period amounted to 931,672,706.04 RMB, compared to 230,496,068.61 RMB at the end of the same period in 2019[74] Assets and Liabilities - Total assets increased by 9.75% to CNY 2,912,626,627.50 compared to the end of the previous year[17] - The total liabilities amounted to RMB 351,705,059.46, a substantial increase from RMB 110,170,028.92, indicating a growth of approximately 219.5%[47] - The company's cash and cash equivalents increased by 32.86% to RMB 931,672,706.04 compared to RMB 701,241,670.70 at the end of the previous year, primarily due to an increase in time deposits[30] - Accounts receivable rose by 96.82% to RMB 168,352,786.90, driven by increased sales[32] - The total liabilities to equity ratio suggests a balanced capital structure, supporting future growth initiatives[91] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,929[26] - The top shareholder, Guangdong Jiayuan Investment Co., Ltd., held 27.43% of the shares[26] - The total equity attributable to shareholders reached RMB 2,540,824,127.22, up from RMB 2,523,596,357.41, reflecting a slight increase of about 0.7%[47] Research and Development - R&D investment as a percentage of operating revenue increased by 2.41 percentage points to 6.10%[19] - Research and development expenses for Q3 2020 were approximately ¥20.47 million, an increase of 15.5% from ¥17.71 million in Q3 2019[57] - Research and development expenses increased to CNY 20,465,705.35 in Q3 2020, compared to CNY 17,708,186.84 in Q3 2019, reflecting a growth of approximately 9.9%[66] Investment Activities - The company reported a significant increase in investment income to RMB 19,415,091.87 from RMB 300,410.01, reflecting a growth of 6,362.86% due to increased interest from financial products[35] - Cash inflow from investment activities totaled 2,946,020,280.39 RMB in 2020, a substantial increase from 100,300,410.01 RMB in 2019[72] - The company received 2,876,900,000.00 RMB from investment recoveries, a significant increase from 100,000,000.00 RMB in the previous year[78] Financial Ratios and Performance Metrics - The weighted average return on net assets decreased by 18.49 percentage points to 4.59%[17] - The company's total comprehensive income for Q3 2020 was CNY 58,441,898.24, down from CNY 87,441,313.70 in Q3 2019, indicating a decline of approximately 33.3%[68] - The financial expenses for Q3 2020 showed a significant decrease, with a net financial expense of CNY -3,892,858.81 compared to CNY 1,032,543.14 in Q3 2019[66]

Research and Development - The company has developed a strong R&D team and maintains a leading position in technology innovation within the copper foil industry, but faces risks related to new product and technology development due to increasing competition and quality demands [6]. - The main product is ultra-thin lithium battery copper foil, with a focus on producing copper foil as thin as 6μm, but there is a technology gap compared to leading domestic and international competitors [9]. - The company focuses on R&D for thinner and higher-strength copper foil products to optimize product structure and enhance quality [42]. - The core technologies include ultra-thin and extremely thin electrolytic copper foil manufacturing technology, additive technology, and cathode roller grinding technology, all developed in-house [43][44]. - The company applied for 47 technology patents during the reporting period, including 42 invention patents and 5 utility model patents, and obtained 8 authorized utility model patents [54]. - The company achieved expected goals in ongoing projects, primarily focused on lithium-ion battery applications, indicating strong market demand [54]. - The company has developed a new method for manufacturing ultra-thin electrolytic copper foil, which enhances the capacity and cycle life of lithium-ion batteries [49]. - The company has introduced a new additive technology for electrolytic copper foil, improving tensile strength and elongation, suitable for various lithium-ion battery applications [49]. - The company has made advancements in cathode roller grinding technology, aimed at producing ultra-low profile copper foil [49]. - The company has implemented a new copper dissolution technology that enhances speed and reduces pollution, improving material utilization [51]. - The company has developed a series of new cleaning devices for copper powder, ensuring high-quality copper foil production [51]. - The company has achieved a significant milestone in R&D with a focus on energy exchange control systems for electrolytic copper foil production [54]. - The total R&D investment amounted to ¥27,625,042.78, representing 6.81% of the operating revenue [54]. - Research and development expenses accounted for 6.81% of operating revenue, an increase of 3.44 percentage points compared to the previous year [28]. Financial Performance - The company's operating revenue for the first half of 2020 was CNY 405,396,688.37, a decrease of 46.79% compared to CNY 761,941,567.53 in the same period last year [28]. - The net profit attributable to shareholders for the same period was CNY 57,607,458.01, down 68.11% from CNY 180,661,864.82 year-on-year [28]. - The net profit after deducting non-recurring gains and losses decreased by 77.19%, amounting to CNY 40,449,726.37 [28]. - The basic earnings per share dropped by 75.96% to CNY 0.25, while the diluted earnings per share also fell to CNY 0.25 [28]. - The net cash flow from operating activities was negative at CNY -46,323,435.01, a decline of 123.54% compared to the previous year [28]. - The company's total assets increased by 2.16% to CNY 2,711,083,630.10, while the net assets attributable to shareholders decreased by 1.65% to CNY 2,481,927,135.42 [28]. - The decline in revenue was primarily attributed to the impact of the pandemic, which delayed the resumption of work and production by downstream customers [29]. - The decrease in gross profit margin was also a significant factor affecting the net profit [29]. - The company reported a non-recurring profit of 17,157,731.64, after adjustments for taxes and minority interests [34]. - The company achieved a main business revenue of RMB 405.40 million, a decrease of 46.79% compared to the same period last year [101]. - The net profit attributable to shareholders was RMB 57.61 million, down 68.11% year-on-year [101]. - Operating costs decreased by 35.10% to RMB 316.05 million, primarily due to reduced sales volume [101]. - The company's cash and cash equivalents increased by 350.25% to RMB 896.15 million, primarily due to funds raised from the initial public offering [105]. Market and Competition - The company’s revenue is primarily derived from lithium battery copper foil, and any adverse changes in policies supporting the new energy vehicle industry could negatively impact operational performance [8]. - The company is experiencing intensified market competition, with existing players expanding capacity and new entrants increasing competition, which may lead to price fluctuations and affect profitability [13]. - The company’s product structure is concentrated, primarily serving lithium-ion battery manufacturers, which poses risks if sales decline due to market competition or technological advancements [10]. - The competitive landscape in the lithium copper foil market is intensifying, with new entrants and existing players expanding capacity, which may affect the company's profitability [80]. - The market for electrolytic copper foil is expected to continue growing, driven by demand from the new energy vehicle and 5G industries [42]. - The company is focused on improving operational efficiency and exploring new market opportunities in response to the challenging environment [29]. - The company has established a strong customer base, focusing on high-end lithium battery copper foil and PCB products, which has led to an increasing market share [64]. Operational Challenges - The company has faced operational delays due to the COVID-19 pandemic, but has adapted by shifting to online marketing and maintaining communication with customers [15]. - The company acknowledges the risk of declining gross margins due to potential adverse changes in product pricing and raw material costs [14]. - The company emphasizes the importance of retaining core technical personnel to ensure stability and continuity in product development and manufacturing [7]. - The company emphasizes risk management and has strengthened its internal control system to mitigate operational risks [74]. - The company faces risks related to the development of new products and technologies, as well as potential delays in research and development [74]. - The company is exposed to risks from the concentration of its product structure and downstream application fields, primarily focusing on lithium-ion battery manufacturers [78]. - The company is at risk of declining gross margins due to potential adverse changes in product pricing and raw material costs [81]. - The company must adapt its management capabilities to accommodate its expanding operational scale, which poses management risks [82]. - The sales amount of the top five customers accounted for 81.48% of the company's operating revenue during the reporting period, indicating a growing customer concentration risk [83]. Corporate Governance and Compliance - The report includes forward-looking statements that are subject to uncertainties and do not constitute a commitment to investors [16]. - The company has not proposed any profit distribution or capital increase plans for the reporting period [16]. - The company is recognized as a high-tech enterprise, benefiting from a reduced corporate income tax rate of 15%, but changes in relevant laws could adversely affect its performance [91]. - The company has committed to strictly adhere to all public commitments made during the IPO process [129]. - The company guarantees that the prospectus does not contain any false records or misleading statements and will bear legal responsibility for any losses incurred by investors due to such issues [132]. - The company will compensate investors for losses incurred due to unfulfilled commitments, as per legal and regulatory requirements [129]. - The company has retained its auditing firm for the 2020 financial year, ensuring consistent financial oversight [165]. - The company has not reported any major related party transactions during the reporting period, maintaining operational integrity [168]. Environmental and Social Responsibility - The company has established a wastewater treatment station, ensuring that the discharge of production wastewater complies with the "Pollutant Discharge Standards for Battery Industry" (GB30484-2013) and domestic sewage meets the tertiary standards of the "Comprehensive Sewage Discharge Standards" (GB8978-1996) [180]. - The company has a total of 11 emission outlets for waste gas, with a sulfuric acid mist concentration of 5 mg/m³, which is compliant with the local standard for air pollutants [180]. - The company has implemented a self-monitoring plan for environmental compliance, with results submitted to local environmental authorities [185]. - The company has not experienced any environmental pollution incidents or disputes during the reporting period [180]. - The company actively participated in poverty alleviation efforts, donating RMB 150,000 for public welfare projects in May 2020 [172]. - The company employed 5 disabled individuals as part of its poverty alleviation initiatives, addressing employment challenges in impoverished families [173]. - The company continues to align its operations with national poverty alleviation policies, contributing to local economic development [174]. - The company is committed to fulfilling its corporate social responsibility by actively engaging in community support and development initiatives [174].

Financial Performance - Operating revenue for the first quarter was CNY 147,674,107.71, representing a 55.91% decrease year-on-year due to delays in downstream customers' resumption of work and production caused by the COVID-19 pandemic[17]. - Net profit attributable to shareholders was CNY 23,720,058.30, down 70.37% from the same period last year[20]. - Basic earnings per share were CNY 0.10, a decrease of 78.26% compared to CNY 0.46 in the same period last year[17]. - Total operating revenue for Q1 2020 was ¥147,674,107.71, a decrease of 56% compared to ¥334,921,234.10 in Q1 2019[52]. - Net profit for Q1 2020 was ¥23,787,738.30, a decline of 70% from ¥80,053,365.60 in Q1 2019[54]. - Total profit for Q1 2020 was ¥28,019,160.89, a decrease of 70% from ¥93,848,079.36 in Q1 2019[52]. - Total operating costs for Q1 2020 were ¥130,989,836.74, down 46% from ¥242,989,274.95 in Q1 2019[52]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 4,407,190.07, a decline of 103.23% compared to the previous year[17]. - Cash flow from operating activities for Q1 2020 was negative at approximately -¥4.41 million, compared to positive cash flow of ¥136.34 million in Q1 2019[62]. - The cash inflow from operating activities was 153,953,651.11 RMB, while cash outflow was 158,327,321.31 RMB, indicating a challenging operational environment[66]. - The company’s cash and cash equivalents at the end of Q1 2020 stood at 741,313,009.53 RMB, up from 158,021,360.18 RMB in the same period last year[68]. - The net increase in cash and cash equivalents for Q1 2020 was 135,947,257.23 RMB, compared to 109,946,327.71 RMB in Q1 2019[68]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 2,663,730,715.41, a 0.38% increase compared to the end of the previous year[17]. - The company's total current assets amounted to CNY 2,005,457,932.51, slightly down from CNY 2,016,447,838.62 at the end of the previous year[37]. - Total liabilities decreased to ¥96,351,938.91 from ¥110,170,028.92, representing a decline of about 12.5%[42]. - Current liabilities decreased to ¥33,572,723.66 from ¥45,849,020.97, a reduction of approximately 26.8%[40]. - The company's total liabilities decreased to ¥135,726,235.66 in Q1 2020 from ¥144,569,212.12 in Q1 2019, a reduction of approximately 6%[52]. Research and Development - The company's R&D investment accounted for 8.15% of operating revenue, an increase of 4.87 percentage points year-on-year[17]. - R&D expenses increased to ¥12,032,804.80 in Q1 2020, up 10% from ¥10,994,295.50 in Q1 2019[52]. - Research and development expenses increased to approximately ¥12.03 million in Q1 2020, up 9.5% from ¥10.99 million in Q1 2019[57]. Shareholder Information - The total number of shareholders at the end of the reporting period was 14,129[23]. - The company's equity attributable to shareholders increased to ¥2,547,316,415.71 from ¥2,523,596,357.41, an increase of about 0.94%[42]. - Total equity increased to ¥2,575,226,816.78 in Q1 2020, compared to ¥2,551,670,668.33 in Q1 2019, reflecting a growth of about 1%[52]. Future Outlook and Strategic Initiatives - The company has resumed production since February 10, 2020, and is taking measures to mitigate the temporary adverse effects of the external economic environment[20]. - The company plans to continue increasing production and sales of ultra-thin copper foil and PCB copper foil to improve capacity utilization[20]. - The company has not reported any significant changes in its future outlook or strategic initiatives during the conference call[34].

Dividend Distribution - The company plans to distribute a cash dividend of 4.3 RMB per 10 shares, totaling approximately 99.28 million RMB based on the current total share capital of 230,876,000 shares[13]. - The company distributed a cash dividend of 1.1 yuan per 10 shares, totaling 19,038,360 yuan, which represents 10.79% of the net profit attributable to shareholders for the year 2018[167]. - In 2019, the company distributed cash dividends amounting to RMB 99,276,680, representing 30.11% of the net profit attributable to ordinary shareholders[170]. - The cash dividend per 10 shares for 2019 was RMB 4.3, compared to RMB 1.1 in 2018, indicating a significant increase in shareholder returns[170]. - The company has established a three-year dividend return plan to ensure reasonable investment returns for shareholders and enhance transparency in dividend distribution decisions[170]. - The company’s profit distribution policy mandates that at least 30% of the average distributable profit over three years must be distributed in cash, unless special circumstances prevent this[167]. - The company’s cash dividend distribution is prioritized, with a minimum of 80% for mature stages without major investment plans, and 40% if there are significant investment plans[167]. - The board of directors must consider independent directors' opinions and public investors' feedback when formulating dividend proposals[167]. - The company must review its future dividend distribution plan at least every three years, requiring approval from more than half of the independent directors[167]. - The company’s cash dividend policy execution is strictly in accordance with its articles of association, ensuring compliance with legal and regulatory requirements[167]. - The company’s profit distribution decision-making process includes detailed analysis of operational conditions and financing environment prior to proposing dividend plans[167]. - The company’s cash dividend distribution plan for 2018 was approved by the board and shareholders, ensuring transparency and compliance with regulations[167]. - The company must disclose reasons for not distributing cash dividends or for distributions below the stipulated percentage, along with the intended use of retained earnings[167]. - The company’s cash dividend policy allows for stock dividends if cash distributions exceed 15% of the distributable profit for the year[167]. - The company has committed to maintaining a stable and transparent dividend mechanism to support sustainable development[170]. - The company’s board of directors approved the dividend distribution plan at the meetings held on March 25, 2019, and April 9, 2019[170]. - The company has not engaged in share repurchase activities that would count towards cash dividends during the reporting period[170]. - The company’s profit distribution plan is aimed at enhancing shareholder value and ensuring compliance with relevant regulations[170]. - The company’s independent directors have expressed their agreement with the dividend distribution plan, ensuring alignment with shareholder interests[170]. Financial Performance - The company's operating revenue for 2019 was CNY 1,446,049,703.58, representing a 25.38% increase compared to CNY 1,153,305,551.31 in 2018[28]. - The net profit attributable to shareholders for 2019 was CNY 329,730,148.10, an increase of 86.89% from CNY 176,431,125.38 in 2018[28]. - The net cash flow from operating activities reached CNY 472,132,435.80, a significant increase of 249.92% compared to CNY 134,924,948.57 in 2018[28]. - The company's total assets increased to CNY 2,653,761,067.12 by the end of 2019, up 161.88% from CNY 1,013,356,732.68 at the end of 2018[28]. - The net assets attributable to shareholders rose to CNY 2,523,596,357.41, reflecting a 258.80% increase from CNY 703,335,059.88 in 2018[28]. - Basic earnings per share for 2019 were CNY 1.67, a 63.73% increase from CNY 1.02 in 2018[28]. - Research and development expenses accounted for 4.37% of operating revenue in 2019, up from 3.32% in 2018[28]. - The company reported a quarterly operating revenue of CNY 33,492.12 million in Q1 2019, with a net profit of CNY 8,005.34 million[31]. - The company received government subsidies amounting to CNY 11,674,230.84 in 2019, which were closely related to its normal business operations[32]. - The company reported a total profit of 16,636,614.78 RMB for the period, with a significant increase of 2,046,889.52 RMB compared to the previous period[33]. - The fair value changes of trading financial assets resulted in a profit of 2,838,906.19 RMB, indicating a strong performance in this area[36]. - The company achieved a main business revenue of CNY 1,446,049,703.58, representing a year-on-year growth of 25.38%[120]. - Net profit attributable to shareholders reached CNY 32,973,01, an increase of 86.89% compared to the same period last year[120]. - Gross profit margin improved to 34.70%, an increase of 7.49 percentage points year-on-year[123]. - Research and development expenses rose to CNY 63,148,840.94, reflecting a 65.02% increase from the previous year[120]. - Operating cash flow net amount increased significantly to CNY 472,132,435.80, a growth of 249.92% year-on-year[120]. - The company reported a significant increase in sales volume for products under 6 microns, with a year-on-year growth of 362.52%[127]. - The revenue from the East China region increased by 58.52%, driven by enhanced cooperation with local clients[126]. - The company experienced a 19.10% increase in direct material costs for lithium battery copper foil, totaling CNY 747,200,440.33[127]. - Investment activities resulted in a net cash outflow of CNY 1,152,973,724.73, a significant increase of 548.65% compared to the previous year[120]. - Financing activities generated a net cash inflow of CNY 1,288,502,904.50, marking a dramatic increase of 1,769.35% year-on-year[120]. - The company's total sales revenue reached 130,817.52 million RMB, accounting for 90.47% of the annual sales total from the top five customers[130]. - The top customer contributed 98,127.43 million RMB, representing 67.86% of the total sales revenue[130]. - The total procurement amount from the top five suppliers was 78,545.80 million RMB, which accounted for 88.85% of the annual procurement total[132]. - Research and development expenses increased to 63,148,840.94 RMB, up from 38,266,746.26 RMB, reflecting a significant investment in technology and industry-specific research[135]. - Operating cash flow net amount was 472,132,435.80 RMB, a 249.92% increase compared to the previous year[137]. - The company raised 1,288,502,904.50 RMB through financing activities, primarily from its initial public offering on the Sci-Tech Innovation Board[137]. - The total assets at the end of the period were 701,241,670.70 RMB, representing 26.42% of total assets, a significant increase from the previous year's 48,580,055.13 RMB[142]. - The company reported a decrease in accounts receivable due to the reclassification of bank acceptance bills, which dropped by 34.44%[142]. - The inventory increased to 155,131,742.87 RMB, a 50.91% rise attributed to additional stock during the Spring Festival period[142]. - The company experienced a significant increase in management expenses, totaling 31,890,485.87 RMB, primarily due to salary increases and costs associated with the IPO[132]. - The company's intangible assets increased to ¥41,393,140.43, a 1.56% rise compared to the previous period, primarily due to new acquisitions[144]. - Short-term borrowings decreased to ¥0 from ¥94,000,000, reflecting a 100% reduction as a result of repaying bank loans[144]. - Accounts payable decreased by 38.15% to ¥27,124,768.51, attributed to an increase in payment frequency during the current period[144]. - Deferred income rose significantly by 176.12% to ¥61,080,921.81, mainly due to receiving additional subsidy funds[144]. Technological Innovation and R&D - The company emphasizes the importance of continuous technological innovation to meet the increasing quality and process requirements in the copper foil industry[7]. - The company has a stable R&D team with strong professional capabilities, which is crucial for maintaining its competitive advantage in production processes and core technologies[8]. - The company has established mechanisms to encourage technological innovation and ensure effective organization of R&D work[8]. - The company acknowledges the risk of core technical personnel turnover, which could adversely affect product development and manufacturing[8]. - The company has invested heavily in R&D, establishing a technology research center and being recognized as a national high-tech enterprise[56]. - The company has developed several core technologies, including ultra-thin and extremely thin electrolytic copper foil manufacturing technology, which is applied in its main business[59]. - The company aims to optimize product structure and upgrade its industry through the large-scale production of 4μm and 5μm lithium battery copper foil products[54]. - The company achieved a total R&D investment of ¥63,148,840.94, which represents 4.37% of its operating revenue[70]. - The company applied for 24 technology patents during the reporting period, with 8 invention patents and 8 utility model patents granted[69]. - The company has ongoing projects with a total expected investment of ¥51,000,000, of which ¥49,000,000 has been invested to date[73]. - The company’s R&D personnel count is 88, accounting for 10.55% of the total workforce[70]. - The company’s new product development focuses on high-performance ultra-thin electrolytic copper foil for lithium-ion batteries, filling domestic gaps and reaching international advanced levels[69]. - The company has developed a non-contact liquid temperature real-time detection device, which is part of its innovation in electrolytic copper foil production[69]. - The company’s RD01 project has reached its expected goals with an investment of ¥3,094,916.11, primarily aimed at high-density lithium-ion battery applications[73]. - The RD02 project has received ¥11,614,594.21 in funding and is also focused on high-density lithium-ion battery applications, meeting customer demand[73]. - The company’s R&D investment is entirely expensed, with no capitalized R&D expenditures reported[70]. - The company’s technology advancements in electrolytic copper foil production have been recognized with a third prize in the China Nonferrous Metals Industry Association Science and Technology Award[69]. - The company achieved a total revenue of 74 million RMB, with a significant increase in R&D projects, including 7 major technology projects[75]. - The company introduced 38 new technical personnel with college degrees in 2019, enhancing its talent pool for innovation[90]. - The company is focused on human resource management to attract and retain talent, which is crucial for its operational stability amid rising labor costs[118]. - The company is committed to becoming a leading enterprise in the new energy materials sector, focusing on innovation and quality[88]. - The company emphasizes technological innovation and has developed several key technologies for copper foil production, enhancing its market competitiveness[81]. - The company has a diverse product structure, producing both ultra-thin lithium battery copper foil and standard copper foil for PCBs[82]. - The management team has over 20 years of industry experience, contributing to strong technical innovation and market responsiveness[80]. Market Position and Competition - The main business profit primarily comes from the production and sales of lithium battery copper foil, which has seen a rapid increase in demand due to the growth of lithium-ion batteries in consumer electronics and electric vehicles[9]. - The company faces risks related to the volatility of the lithium-ion battery industry, particularly due to changes in government subsidies and market maturity[9]. - The company’s product structure is concentrated on ultra-thin lithium battery copper foil, making it vulnerable to market competition and technological advancements[11]. - The company is recognized as a leading enterprise in the domestic high-performance lithium battery copper foil industry, collaborating with major domestic manufacturers[46]. - The industry is characterized by high technical barriers, with significant expertise required in various production processes, including copper solution purification and surface treatment technologies[45]. - The market for ultra-thin copper foil is expanding, with the company positioned to capitalize on the growing demand in the lithium-ion battery sector[44]. - The company has established long-term partnerships with lithium-ion battery manufacturers and has been recognized multiple times as an excellent supplier of lithium battery copper foil by CATL[48]. - The company is positioned as a leading supplier of lithium battery copper foil, benefiting from the rapid growth of the lithium-ion battery market driven by government policies[156]. - The company anticipates continued growth in the lithium copper foil market, supported by strong R&D capabilities and industry partnerships[156]. - The company is focused on enhancing its competitive edge and profitability in the rapidly growing new energy vehicle sector[156]. - The company aims to become a leading innovator in the lithium-ion battery copper foil industry, focusing on high-performance products and personalized customer needs[157]. - The company plans to deepen its market presence in the domestic lithium battery copper foil sector while optimizing business processes and accelerating R&D efforts[161]. - The company is committed to reducing manufacturing costs through technological innovation, ensuring a competitive edge in the market[160]. - The company will optimize procurement channels and improve supplier quality systems to enhance product quality and delivery times[161]. - The focus will be on expanding into high-end digital 3C batteries and energy storage batteries, providing reliable copper foil products to premium clients[157]. - The company acknowledges the potential risk of hydrogen energy and other new energy sources replacing lithium-ion batteries, which could adversely affect its market position and profitability[108]. - The company faces operational risks due to the need for management capabilities to scale with business growth post-IPO[97]. - The company faces risks from intensified market competition in the lithium battery copper foil sector, which may lead to price fluctuations and impact profitability[105]. Environmental and Regulatory Compliance - The company has established a systematic pollution management system to comply with environmental regulations, but faces risks related to potential environmental incidents[117]. - The company guarantees that the prospectus does not contain any false records, misleading statements, or major omissions, and will bear individual and joint legal responsibility for its authenticity, accuracy, and completeness[182]. - If the prospectus contains false records or major omissions leading to investor losses, the company will compensate investors according to the final decision of the China Securities Regulatory Commission or the People's Court[185]. - The company will strictly fulfill all public commitments made during the initial public offering and actively accept social supervision[179]. - In the event of non-fulfillment of commitments, the company will publicly explain the reasons and apologize to shareholders and the public investors[180]. - The company will stop paying salaries and dividends to individuals who fail to fulfill commitments until they are completed[181]. - The company will initiate procedures to repurchase all newly issued shares if it is determined that there are false records or major omissions in the prospectus[184]. - The repurchase price will not be lower than the issuance price plus the interest of the bank's current deposit during the period from issuance to repurchase[185]. - The company will ensure that no unfair conditions are imposed on other units or individuals regarding the repurchase of shares[186]. - The company will link the remuneration system of directors and senior management to the execution of compensation measures[187]. - The company will comply with any new regulatory requirements regarding compensation measures and commitments issued by the China Securities Regulatory Commission[186]. - The company committed to not interfering with operational management and to fulfill compensation measures as per regulatory requirements[188]. - The company guarantees that the public offering of shares on the Sci-Tech Innovation Board does not involve any fraudulent issuance[191]. - The company will initiate share repurchase procedures if it fails to meet listing conditions, with repurchase prices not lower than the issuance price plus bank interest[191]. - The company plans to stabilize its stock price through measures such as share buybacks, not exceeding 10% of the previous year's net profit[194]. - The controlling shareholders and actual controllers are required to comply with regulations when increasing their holdings to stabilize the stock price[194]. - The company will publicly explain any failure to implement stock price stabilization measures and apologize to investors[196]. - The total amount used for share repurchases must not exceed the total funds raised from the initial public offering[194]. - The company will ensure that the stock distribution remains compliant with listing conditions after implementing stock price stabilization measures[194]. - The company will compensate investors for losses incurred due to failure to fulfill public commitments[196]. - The company will adhere to the latest regulations from the China Securities Regulatory Commission regarding compensation measures[188]. - The company commits to ensuring stable development and protecting investor interests, with specific measures outlined for stock price stabilization if not adhered to[197]. - After the lock-up period, the company plans to gradually reduce shareholdings, with a maximum of 25% of total shares held before the public offering to be sold each year[200]. - The company will disclose any share reduction plans 15 trading days in advance if using centralized bidding, and 3 trading days in advance for other methods[200].

Financial Performance - Operating revenue for the first nine months was CNY 1,173,272,162.64, up 48.52% from the same period last year[17]. - Net profit attributable to shareholders of the listed company was CNY 268,285,574.11, representing a 152.39% increase year-on-year[17]. - Basic earnings per share reached CNY 1.44, a rise of 136.07% compared to the previous year[17]. - The company reported a gross profit margin of approximately 33.6% for the first three quarters of 2019, compared to 25.2% in the same period of 2018[67]. - Operating profit for the first three quarters of 2019 was ¥315,620,892.42, up from ¥126,369,653.53 in the same period of 2018, representing a growth of 150.1%[70]. - Net profit for Q3 2019 was ¥87,623,709.29, up from ¥55,700,174.67 in Q3 2018, representing a 57.3% increase[61]. Assets and Liabilities - Total assets reached CNY 2,555,054,947.58, an increase of 152.14% compared to the end of the previous year[17]. - Total liabilities decreased to CNY 92,903,164.16 from CNY 310,021,672.80, a reduction of about 70%[48]. - Current assets totaled CNY 1,946,027,951.98, up from CNY 382,438,995.55 in December 2018, indicating a growth of about 409.5%[42]. - Total liabilities reached $310,021,672.80, with current liabilities at $213,403,613.87 and non-current liabilities at $96,618,058.93[86]. - Total equity stood at $730,163,960.10, including undistributed profits of $345,722,043.34[92]. Cash Flow - Net cash flow from operating activities for the first nine months was CNY 181,110,636.72, an increase of 40.10% year-on-year[17]. - The total cash outflow for operating activities was 978,838,845.31 CNY, compared to 642,082,285.38 CNY in the previous period, reflecting an increase of about 52.5%[75]. - The cash inflow from financing activities was 1,680,390,264.15 CNY, while cash outflow totaled 410,059,505.56 CNY, leading to a net cash flow from financing activities of 1,270,330,758.59 CNY[80]. Shareholder Information - The total number of shareholders at the end of the reporting period was 23,885[23]. - The top ten shareholders held a combined 63,324,400 shares, representing 27.43% of the total shares[26]. - Shareholders' equity rose significantly to CNY 2,462,151,783.42 from CNY 703,335,059.88, an increase of approximately 249.5%[48]. Research and Development - Research and development expenses rose by 62.15% to RMB 43,349,569.42, reflecting the company's commitment to enhancing its R&D efforts[35]. - R&D expenses for Q3 2019 were ¥17,708,186.84, compared to ¥11,165,115.74 in Q3 2018, an increase of 58.5%[58]. Tax and Government Subsidies - The company recognized government subsidies amounting to CNY 5,817,123.86 for the year-to-date[19]. - The company’s tax payments increased by 531.40% to RMB 102,885,670.99, reflecting higher sales volumes and corresponding tax obligations[35]. - The company reported a tax expense of ¥16,208,725.12 for Q3 2019, compared to ¥9,644,452.47 in Q3 2018, which is an increase of 67.5%[61]. Investment Activities - The company’s investment payments surged by 1,877.30% to RMB 1,350,139,930.56, primarily due to the purchase of financial products[35]. - The company reported a capital reserve of CNY 1,606,783,441.22, up from CNY 155,013,931.79, indicating a growth of about 935.5%[48].