Financial Performance - The company's operating revenue increased by 52.58%, primarily driven by growth in raw material trading, modified plastic particles, and diffusion board businesses[19]. - Basic earnings per share decreased by 50.62% to CNY 0.60 compared to CNY 1.22 in the same period last year[20]. - The weighted average return on net assets dropped by 11.56 percentage points to 4.07% from 15.63% year-on-year[20]. - The net profit attributable to shareholders decreased by 37.03% year-on-year, primarily due to rising raw material costs and a profit surge in meltblown PP, non-woven fabrics, and breathable membranes during the same period last year[21]. - The net cash flow from operating activities decreased by 225.04% year-on-year, mainly due to an increase in accounts receivable and prepayments[21]. - Operating revenue for the reporting period was approximately RMB 1.225 billion, representing a 52.58% increase compared to the same period last year[21]. - The net assets attributable to shareholders increased by 124.16% compared to the end of the previous year, reaching approximately RMB 1.464 billion[21]. - Total assets increased by 74.45% compared to the end of the previous year, amounting to approximately RMB 2.929 billion[21]. - The company reported a total revenue of 7,657 million RMB for the first half of 2021, with a net profit of 1,820.1 million RMB, representing a significant increase compared to the previous period[55]. - The company reported a total profit of CNY 66,451,572.64 for the first half of 2021, compared to CNY 117,365,220.32 in the first half of 2020, a decrease of 43.4%[189]. Research and Development - Research and development expenditure accounted for 3.91% of operating revenue, an increase of 0.95 percentage points compared to the previous year[20]. - Research and development (R&D) expenses reached approximately ¥47.90 million, a 101.35% increase compared to ¥23.79 million in the previous period, representing 3.91% of operating revenue[49]. - The increase in R&D investment is attributed to the expansion of application scenarios for flame retardants and modified plastic particles, as well as an increase in R&D personnel and salary adjustments[50]. - The company has established a comprehensive R&D model focusing on the "modified plastic additives + modified plastic particles + modified plastic products" industry chain, emphasizing both independent and collaborative innovation[36]. - The company has established a research platform through collaboration with domestic universities and research institutes, enhancing its R&D capabilities[59]. Market and Product Development - The company has initiated the construction of a new chemical materials production base in Chizhou, expected to achieve a production capacity of 50,000 tons of halogen-free flame retardants within three years[29]. - The company is actively developing new products in response to the increasing demand for environmentally friendly materials, adhering to the 4R1D principles of plastic sustainability[40]. - The company is developing new products, including halogen-free flame retardants and modified polyethylene materials, with a total investment of ¥1.30 billion for the halogen-free flame retardant project[52]. - The company aims to achieve a production scale of 240 tons per year for laundry capsule packaging film, with an investment of ¥800 million in the project[52]. - The company is also working on biodegradable materials, with an investment of ¥675 million aimed at developing industrialized PLA materials for various applications[52]. Risk Management - The company has outlined various risk factors and corresponding countermeasures in the report[4]. - The company faces a risk of core technology infringement, which could impact its competitive advantage in the modified plastics industry[70]. - The gross margin for flame retardants and modified plastic products is expected to decline by approximately 3-4 percentage points with a 5% increase in raw material prices[70]. - The company's foreign sales accounted for 43.11% of its main business revenue, exposing it to exchange rate fluctuation risks[74]. - The optical products business, particularly PS diffusion boards, has a high customer concentration risk, with major clients contributing significantly to revenue[71]. Environmental and Compliance - The company has implemented measures to control noise pollution from production equipment, ensuring compliance with industrial noise emission standards[105]. - The company has committed to not transferring or managing shares for 36 months post-IPO, ensuring stability in shareholding[112]. - The company has publicly disclosed important production and treatment facility information on the national pollutant discharge permit management information platform[108]. - The company has adhered to national policies on environmental protection and is advancing green production initiatives[109]. - The company received environmental impact assessment approval for the expansion project of producing 2.48 million pieces of PHC honeycomb boards and 8,000 tons of GMT boards on February 10, 2021[106]. Shareholder and Governance - The company has undergone changes in its board of directors, with new appointments including Meng Yuezhong as an independent director and Mei Jing as the board secretary[94]. - The company has held three shareholder meetings during the reporting period, ensuring compliance with legal and regulatory requirements[93]. - The largest shareholder, Guangzhou Shipan Stone Investment Management Co., Ltd., holds 36,800,000 shares, accounting for 39.43% of the total shares[166]. - The company has established a consensus action agreement among its major shareholders, enhancing governance stability[170]. - The company will not reduce its holdings during the lock-up period and will follow the conditions set in the IPO prospectus[120]. Financial Position - Cash and cash equivalents at the end of the period reached ¥750,806,554.41, accounting for 25.63% of total assets, a significant increase of 341.98% compared to the previous year[78]. - Accounts receivable amounted to ¥741,843,219.17, representing 25.33% of total assets, with a year-on-year increase of 37.21% due to revenue growth[78]. - Inventory increased to ¥292,143,508.38, which is 9.97% of total assets, reflecting a 33.19% rise from the previous year due to higher stock levels of products and semi-finished goods[78]. - Total liabilities increased, with short-term borrowings at ¥469,177,849.03, accounting for 16.02% of total assets, up 27.80% from the previous year[78]. - The company's total assets as of June 30, 2021, were CNY 2,301,012,433.38, an increase from CNY 1,253,044,374.39 at the end of 2020[182].

Financial Performance - Operating revenue rose by 78.62% to CNY 570,882,563.44 compared to the same period last year[5] - Net profit attributable to shareholders decreased by 8.8% to CNY 26,293,062.06 compared to the same period last year[5] - Basic earnings per share decreased by 12.20% to CNY 0.36 compared to the same period last year[7] - The company reported a net profit margin improvement, with retained earnings increasing to ¥435,476,421.53 from ¥409,183,359.47, a rise of approximately 6.4%[22] - Net profit for Q1 2021 was ¥32,478,120.46, a decrease of 8.4% from ¥35,390,970.77 in Q1 2020[29] - The net profit attributable to shareholders of the parent company was ¥26,293,062.06, down from ¥28,830,471.86 in the same period last year[30] - Earnings per share for Q1 2021 were ¥0.36, compared to ¥0.41 in Q1 2020[30] Assets and Liabilities - Total assets increased by 50.62% to CNY 2,528,915,340.79 compared to the end of the previous year[5] - Current assets rose to ¥1,945,473,564.93, compared to ¥1,160,003,212.97, marking an increase of about 67.5%[20] - Total liabilities reached ¥970,590,565.79, up from ¥933,257,488.49, indicating a growth of approximately 4.8%[21] - Total current assets reached CNY 1,160,003,212.97 as of Q1 2021, reflecting a significant asset base[45] - Total liabilities increased to CNY 955,084,083.74, with current liabilities accounting for CNY 834,917,961.91[46] Shareholder Information - Net assets attributable to shareholders increased by 123.41% to CNY 1,459,136,372.32 compared to the end of the previous year[5] - The total number of shareholders reached 9,402 by the end of the reporting period[11] - The top ten shareholders held a total of 39.43% of the shares, with the largest shareholder holding 36,800,000 shares[11] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 95,527,522.36, a decrease of 2,245.74% compared to the same period last year[5] - Cash received from sales of goods and services increased by 59.62% year-on-year, attributed to revenue growth and improved customer collections[16] - Cash inflows from operating activities amounted to ¥423,421,914.82, up from ¥272,991,803.34 in the same period last year, representing an increase of about 55.2%[38] - The net cash flow from operating activities was negative at -¥95,527,522.36, a significant decline from a positive ¥4,451,967.87 in Q1 2020[38] - The company experienced a substantial increase in cash inflows from financing activities, totaling ¥936,097,933.16, compared to ¥87,938,719.45 in Q1 2020, marking an increase of approximately 964.5%[39] Research and Development - Research and development expenses accounted for 3.43% of operating revenue, a decrease of 0.07 percentage points[7] - Research and development expenses increased by 75% year-on-year, reflecting the company's intensified R&D efforts[16] - Research and development expenses increased to ¥19,554,786.86 in Q1 2021, up from ¥11,174,174.42 in Q1 2020, reflecting a focus on innovation[29] Operational Costs - Operating costs rose by 92.79% year-on-year, corresponding to the increase in operating revenue and rising raw material prices[16] - Total operating costs for Q1 2021 were ¥534,039,809.31, up 93.1% from ¥276,895,037.13 in Q1 2020[28] Future Plans - The company plans to expand its market presence and invest in new product development to drive future growth[20] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[29] - The company's management indicated a focus on expanding market presence and enhancing product development strategies in future quarters[35]

Financial Performance - The company's operating revenue for 2020 was CNY 1,924,446,040.90, representing a year-on-year increase of 30.53%[21]. - The net profit attributable to shareholders for 2020 was CNY 158,755,369.76, reflecting a year-on-year growth of 60.33%[21]. - The total assets increased by 31.76% year-on-year, reaching CNY 1,679,027,793.46 by the end of 2020[22]. - The basic earnings per share for 2020 was CNY 2.27, up 57.50% compared to 2019[23]. - The company's net cash flow from operating activities for 2020 was CNY 66,301,944.46, an increase of 5.10% from the previous year[22]. - The return on equity (ROE) increased to 27.34%, up 5.39 percentage points from 2019[23]. - The net profit margin for 2020 was 11.76%, down from 14.14% in 2019 and 15.96% in 2018[188]. - The total profit reached 238 million RMB, reflecting a growth of 74.59% year-on-year[98]. Dividend Distribution - The proposed profit distribution plan for 2020 is to distribute a cash dividend of 2 RMB per 10 shares, totaling 18,666,666.80 RMB, which accounts for 11.76% of the net profit attributable to shareholders[5]. - The company did not propose a cash profit distribution plan for ordinary shareholders despite having positive distributable profits[189]. - The company’s retained earnings and their intended use have not been specified in the report[189]. Research and Development - Research and development expenses accounted for 3.10% of operating revenue in 2020, slightly up from 3.08% in 2019[24]. - The company has obtained a total of 31 invention patents related to flame retardants, indicating a strong commitment to research and development[36]. - R&D investment increased by 31.49% year-on-year, totaling CNY 59.69 million in 2020, which accounted for 3.10% of operating revenue[63]. - The number of R&D personnel increased to 196, accounting for 17% of the total workforce[73]. - The company has established a research and development team to develop fully biodegradable plastic products and recyclable packaging materials in response to the plastic ban policy[139]. Market Position and Strategy - The company has established strategic partnerships with numerous well-known domestic and international enterprises, enhancing its market position in high-performance plastics and resins[34]. - The company aims to lead in the new materials modification technology sector and actively participates in the global high-end manufacturing system[34]. - The company is actively involved in the international high-end supply chain, enhancing its market share and brand recognition[43]. - The company plans to continue expanding its market presence and investing in new product development to sustain growth[24]. - The company aims to expand its market share by actively developing new materials and applications[85]. Operational Efficiency - The company employs a "sales-driven production" model, aligning production schedules with customer orders to optimize efficiency[39]. - The company achieved a production efficiency improvement of over 30% by adopting a one-step method for synthesizing triazine organic compounds[58]. - The production capacity for halogen-free flame retardants is 11,000 tons with a utilization rate of 82.24%, while the modified plastic particles have a capacity of 66,000 tons and a utilization rate of 93.52%[156]. - The production capacity for diffusion boards increased from 11 to 16 production lines, raising annual capacity by 45% to 50,000 tons[157]. Risk Management - The company has outlined potential risks in its report, which investors should be aware of when considering future plans and strategies[6]. - The company faced a risk of core technology infringement, with 143 authorized patents related to flame retardants and modified plastics[90]. - The company has implemented strategies to mitigate foreign exchange risks through forward foreign exchange contracts[130]. Corporate Governance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not indicated any special arrangements for corporate governance or significant matters that would affect the report's accuracy[7]. - The company emphasizes the importance of accurate financial reporting and has made declarations to ensure the integrity of its financial statements[5]. Product Development - The company is focusing on the development of lightweight materials, as indicated by government policies promoting advancements in the automotive sector[137]. - The company is committed to the development of halogen-free flame retardants to reduce toxic gas emissions during material combustion[170]. - The company is focusing on the production of halogen-free flame retardants, with a project completion rate of 100% and customer recognition in the market[67]. - The company has developed a core technology system covering "modified additives + modified plastic particles + modified plastic products," enhancing its competitive edge in the market[57]. Investment and Expansion - The company has established production bases in multiple locations, including Guangdong, Anhui, Hunan, and Jiangsu, to enhance capacity and efficiency[86]. - The company is exploring upstream integration by acquiring raw material producers for flame retardants and establishing production bases for GPPS, MS, and EPS[176]. - The company plans to increase investment in biodegradable plastics, introducing PBAT and PLA, and establishing production bases overseas for lactic acid and polylactic acid[172]. Compliance and Regulations - The company commits to comply with regulations from the China Securities Regulatory Commission regarding share transfer restrictions[200]. - The lock-up period for major shareholders is set for 36 months from the date of listing, during which they cannot transfer or manage their shares[194]. - The company will ensure that any share transfers after the lock-up period will not be below the issue price[200].