Financial Performance - The company's operating revenue for the first half of 2022 was ¥935,491,902.32, a decrease of 11.45% compared to ¥1,056,459,539.52 in the same period last year[20]. - Net profit attributable to shareholders increased by 10.10% to ¥78,192,246.22 from ¥71,021,286.85 year-on-year[20]. - The net cash flow from operating activities improved significantly to ¥85,454,415.52, a 692.26% increase from -¥14,428,589.15 in the previous year[20]. - Basic and diluted earnings per share rose by 10.53% to ¥0.21 from ¥0.19 in the same period last year[20]. - Total assets decreased by 4.24% to ¥2,043,855,569.72 from ¥2,134,453,973.10 at the end of the previous year[20]. - Net assets attributable to shareholders increased by 5.20% to ¥1,202,162,049.47 from ¥1,142,719,340.70 at the end of the previous year[20]. - The company's revenue for the reporting period was ¥935,491,902.32, a decrease of 11.45% compared to ¥1,056,459,539.52 in the same period last year[39]. - The cost of goods sold decreased by 12.66% to ¥757,676,356.27 from ¥867,545,680.88 year-on-year[39]. - Research and development expenses increased by 5.33% to ¥35,633,080.72, compared to ¥33,829,732.91 in the previous year[39]. - The gross profit margin for the manufacturing sector was 18.63%, reflecting a slight increase of 1.10% compared to the previous year[43]. - The total profit for the first half of 2022 was CNY 90,937,501.65, an increase of 11.67% compared to CNY 81,831,985.48 in the same period of 2021[128]. - The company's operating profit was CNY 90,932,186.89, which is an increase of 10.3% from CNY 82,241,804.44 in the first half of 2021[128]. - The company reported a significant decrease in asset impairment losses, which were CNY -5,537,008.95 compared to CNY 33,614.34 in the previous year[128]. Market Position and Strategy - The semiconductor packaging and testing industry in China has experienced rapid growth, with domestic equipment and packaging materials gradually increasing their market share[28]. - The company specializes in the development, production, and sales of semiconductor packaging materials, including lead frames and bonding wires, with no significant changes in its main business since establishment[29]. - The company has a leading position in the domestic market for lead frames and bonding wires, covering over 60% of major domestic semiconductor packaging enterprises[31]. - The company has developed a range of new products through independent research and development, supported by a provincial-level R&D center and a postdoctoral workstation[32]. - The company holds 35 invention patents and 98 utility model patents, indicating a strong focus on innovation and technology advancement[34]. - The company has improved production efficiency by 4 times through the development of a high-speed selective continuous electroplating process, achieving over 80% online reuse rate of electroplating wastewater[35]. - The company has established a stable customer base and sales network, enhancing its brand image and customer trust in the industry[34]. - The company plans to increase efforts in overseas market development while continuing to expand its domestic market presence[34]. - The company has a cost advantage over foreign competitors in terms of equipment utilization, labor costs, and delivery times, while also benefiting from favorable raw material procurement conditions[37]. - The company has been recognized as one of the most influential enterprises in the semiconductor industry by multiple organizations, highlighting its competitive strength and market position[34]. Risk Management - The company has outlined potential risks and countermeasures in its management discussion section[3]. - The semiconductor industry, which the company operates in, is cyclical and significantly impacts the company's performance due to market demand fluctuations and competitive pressures[58]. - The company is exposed to risks from price fluctuations of key raw materials such as copper, gold, and silver, which constitute a significant portion of its production costs[58]. - The company has implemented strategies such as zero inventory for key raw materials and centralized procurement to mitigate raw material price volatility risks[58]. - The company faces foreign exchange risks due to its export activities and imported raw materials, which can affect its revenue and costs[58]. - The company has established a comprehensive risk management system for its hedging operations, which includes measures to mitigate liquidity, credit, and operational risks[52]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit and has implemented pollution control measures to ensure compliance with discharge standards[70]. - The company has maintained normal operation of pollution control facilities, ensuring that wastewater and exhaust emissions meet standards[70]. - The company has achieved a water reuse rate of over 85%, contributing to its sustainable development strategy[74]. - There were no administrative penalties due to environmental issues during the reporting period[73]. - The company has implemented a comprehensive emergency response plan for environmental incidents, which has been filed with the environmental protection bureau[73]. Corporate Governance - The company has appointed new management, including Zheng Fang as General Manager and Zhou Rongkang as Deputy General Manager, effective April 6, 2022[65]. - The company has undergone a board restructuring, with several new directors elected on March 8, 2022[64]. - The company conducted two annual shareholder meetings, ensuring separate voting for minority investors on significant matters[73]. - The company emphasizes investor relations management and has actively engaged with investors through various channels[73]. - The company has not engaged in any significant equity or asset sales during the reporting period[54][55]. - There were no significant fundraising activities reported during the period[53]. Financial Position and Assets - The company's cash and cash equivalents decreased by 163.62% to a net outflow of ¥4,318,374.19, compared to a net inflow of ¥6,788,024.30 in the previous year[39]. - The company’s total assets included cash and cash equivalents of ¥177,589,863.24, which accounted for 8.69% of total assets, down from 10.12% at the end of the previous year[46]. - The total assets of the company reached CNY 1.2 billion, indicating a year-over-year increase of 9.7%[141]. - The total liabilities of the company were reported at CNY 623 million, which is a decrease of 1.2% compared to the previous year[141]. - The total amount of guarantees provided by the company accounts for 12.31% of its net assets[95]. - The company has entrusted 30 million yuan in bank wealth management products, with no overdue amounts reported[96]. Shareholder Information - The total number of shareholders at the end of the reporting period is 61,006, with no preferred shareholders[105]. - The number of restricted shares increased from 7,780,500 to 10,374,000 due to the lock-up period following the resignation of a director[103]. - The proportion of restricted shares increased from 2.07% to 2.76% of total shares[101]. - The total number of unrestricted shares decreased from 367,503,500 to 364,910,000, representing 97.93% to 97.24% of total shares[102]. - The company has not issued any new shares or conducted any buybacks during the reporting period[102]. Accounting and Financial Reporting - The financial report for the first half of 2022 has not been audited[117]. - The financial statements were approved by the board of directors on August 19, 2022, ensuring compliance with accounting standards[156]. - The company adheres to the accounting principles set forth by the Ministry of Finance, reflecting its financial status accurately[156]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[154]. - The company’s accounting period runs from January 1 to December 31 each year[157]. - The company uses RMB as its functional currency for accounting purposes[159].

Financial Performance - The company's revenue for Q1 2022 was ¥441,353,818.24, a decrease of 6.85% compared to ¥473,833,242.54 in the same period last year[3] - Net profit attributable to shareholders was ¥30,149,679.92, representing a 32.71% increase from ¥22,717,801.10 year-on-year[3] - Total operating revenue for Q1 2022 was ¥441,353,818.24, a decrease of 6.8% from ¥473,833,242.54 in Q1 2021[15] - Net profit for Q1 2022 reached ¥30,149,679.92, representing a 32.4% increase compared to ¥22,717,801.10 in Q1 2021[16] - The company reported a total comprehensive income of ¥30,149,679.92 for Q1 2022, compared to ¥22,717,801.10 in Q1 2021[16] Earnings and Shareholder Equity - Basic earnings per share rose to ¥0.08, up 33.33% from ¥0.06 in the same period last year[3] - Basic and diluted earnings per share for Q1 2022 were both ¥0.08, up from ¥0.06 in the same period last year[17] - The company's equity attributable to shareholders increased by 2.64% to ¥1,172,869,020.62 from ¥1,142,719,340.70 at the end of the previous year[3] - Total equity attributable to shareholders increased to ¥1,172,869,020.62 from ¥1,142,719,340.70 in the previous year[14] Cash Flow and Operating Activities - The net cash flow from operating activities improved to -¥13,998,790.72, a 57.16% increase compared to -¥32,675,439.94 in the previous year[3] - Cash flow from operating activities showed a net outflow of ¥13,998,790.72, an improvement from a net outflow of ¥32,675,439.94 in Q1 2021[18] - Cash received from sales of goods and services was ¥402,179,942.55, an increase from ¥325,155,577.36 in the previous year[18] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,072,317,709.59, a decrease of 2.91% from ¥2,134,453,973.10 at the end of the previous year[3] - Total current assets decreased from 1,300,005,382.16 yuan at the beginning of the year to 1,237,697,154.28 yuan at the end of the period, a decline of approximately 4.82%[12][13] - Total liabilities increased from 1,200,000,000 yuan to 1,250,000,000 yuan, indicating a rise of about 4.17%[13] - Total liabilities decreased to ¥899,448,688.97 from ¥991,734,632.40 year-over-year[14] Expenses - The company reported a significant increase in sales expenses, which rose by 982.26% to ¥247.25 million due to higher employee compensation and business entertainment costs[7] - Total operating costs for Q1 2022 were ¥411,077,945.86, down 5.6% from ¥435,400,985.34 in the previous year[15] - Research and development expenses for Q1 2022 totaled ¥15,744,507.99, slightly up from ¥14,365,482.41 in Q1 2021[15] Shareholder Information - Total number of common shareholders at the end of the reporting period is 52,781[9] - The largest shareholder, Ningbo Pulisai Electronic Co., Ltd., holds 19.72% of shares, totaling 74,009,208 shares, which are frozen[9] - There are no reported financing or margin trading activities among the top 10 shareholders[10] Investment Activities - The net cash flow from investing activities increased by 68.27% to ¥546.98 million, primarily due to reduced cash payments for fixed asset purchases[7] - The net cash flow from investment activities was -2,541,791.17 CNY for Q1 2022, compared to -8,011,626.18 CNY in Q1 2021, indicating an improvement[20] - The total cash inflow from investment activities was 65,891.21 CNY in Q1 2022[20] Financing Activities - Cash inflow from financing activities totaled 165,000,000.00 CNY in Q1 2022, up from 162,000,000.00 CNY in Q1 2021[20] - The net cash flow from financing activities was 4,618,787.50 CNY in Q1 2022, a decrease from 45,481,609.07 CNY in Q1 2021[20] - The cash outflow for financing activities was 160,381,212.50 CNY in Q1 2022, compared to 116,518,390.93 CNY in Q1 2021[20] Other Information - The company did not report any new strategies or product developments during the quarter[3] - The company has not disclosed any new product developments or market expansion strategies during the reporting period[10] - The company did not conduct an audit for the Q1 2022 report[21]

Financial Performance - The company's operating revenue for 2021 was ¥2,194,615,906.01, representing a 41.71% increase compared to ¥1,548,632,508.79 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥181,236,420.71, a significant increase of 106.11% from ¥87,930,951.38 in 2020[21]. - The net profit after deducting non-recurring gains and losses was ¥167,470,658.29, up 121.37% from ¥75,651,573.71 in 2020[21]. - The company reported a diluted earnings per share of ¥0.48 for 2021, which is an increase of 108.70% compared to ¥0.23 in 2020[22]. - In 2021, the company achieved total revenue of CNY 2,194,615,906.01, representing a growth of 41.71% compared to the previous year[48]. - The company's net profit attributable to shareholders reached CNY 181,236,420.71, an increase of 106.11% year-on-year[48]. - The company reported a total distributable profit of CNY 492,629,453.80 for the period[140]. - The cash dividend accounted for 100% of the total profit distribution amount[140]. Market and Industry Context - The company is significantly affected by the semiconductor industry's cyclical nature, which impacts its operational performance due to market demand fluctuations and intense product competition[4]. - The global semiconductor industry sales reached $555.9 billion in 2021, a 26.2% increase from $440.4 billion in 2020, indicating strong market growth[32]. - The trend in the semiconductor packaging market is shifting towards high-density packaging, with advanced packaging materials expected to become mainstream[33]. - 国家政策支持集成电路产业发展，预计行业将保持快速增长态势[41]. - 中国集成电路进口额达到出口额的3倍，自给率仍处于较低水平，国产化程度亟待提高[42]. Raw Material and Risk Management - Major raw materials, including copper, gold, and silver, constitute a high proportion of the company's product costs, making it vulnerable to price volatility in these materials[4]. - The company has implemented risk mitigation strategies for raw material price fluctuations, including zero inventory for key materials, optimizing supplier configurations, centralized procurement, and hedging[4]. - The company has a risk exposure to exchange rate fluctuations due to its export sales and imported raw materials, which can affect revenue and costs[4]. - The company emphasizes the importance of closely monitoring market demand trends and actively adjusting product structures to mitigate operational risks[4]. - The company aims to effectively mitigate risks associated with raw material price fluctuations through its derivative investments[83]. Research and Development - 公司拥有35项发明专利和106项实用新型专利，研发人员达到120人[44]. - The company's R&D investment increased by 30.49% to ¥80,346,701.13 in 2021, compared to ¥61,572,582.94 in 2020, representing 3.66% of total revenue[68]. - The number of R&D personnel rose to 120 in 2021, a 13.21% increase from 106 in 2020, with a slight decrease in the proportion of R&D staff to total employees from 11.50% to 11.30%[68]. - The company plans to invest in R&D projects, including two major technology projects in Ningbo, focusing on advanced packaging technology and key materials[91]. - The company is committed to becoming a significant global supplier of semiconductor metal materials while enhancing its core competitiveness[90]. Corporate Governance and Management - The company has established a comprehensive risk management system for its hedging activities, ensuring compliance with relevant laws and regulations[83]. - The company has a complete and independent production, supply, and sales system, with no reliance on the controlling shareholder[104]. - The company has three independent directors on its board, ensuring compliance with legal and regulatory requirements[101]. - The company has a comprehensive internal control system and governance structure that meets the standards set by relevant laws and regulations[100]. - The company has a clear strategy for shareholder returns for the period 2021-2023, which was discussed in the shareholders' meeting[107]. Environmental and Social Responsibility - The company has committed to strict compliance with environmental regulations, ensuring that wastewater and exhaust emissions meet standards[153]. - The company has achieved a water reuse rate of over 85%, contributing to its sustainable development strategy[160]. - The company donated 300,000 yuan annually to the "Kangqiang Charity Poverty Alleviation Fund" to support poverty alleviation and rural revitalization efforts[161]. - The company has implemented a comprehensive emergency response plan for environmental incidents and conducts annual drills[155]. Future Outlook and Strategic Plans - The company aims to achieve a revenue target of 1.8 billion in 2022, although this is subject to market demand and other uncertainties[91]. - The company plans to strengthen its safety management training to ensure stable safety production conditions[94]. - The company is expanding its product line to include high-end packaging materials such as QFN etching frames and bonding wires[90]. - The company plans to distribute cash dividends amounting to at least 10% of the annual distributable profit for the years 2021-2023[170]. - The company will implement a stock incentive plan to enhance shareholder value and align interests[169].

Group 1: Event Overview - Ningbo Kangqiang Electronics Co., Ltd. will participate in the "Ningbo District 2021 Annual Listed Company Investor Online Collective Reception Day" themed event [2] - The event is scheduled for November 18, 2021, from 15:00 to 17:00 [2] - The online platform for the event is https://rs.p5w.net/ [2] Group 2: Objectives and Goals - The event aims to enhance communication between listed companies and investors, particularly small and medium-sized investors [2] - It seeks to improve the transparency of listed companies and promote standardized operations [2] - The initiative is guided by the Ningbo Securities Regulatory Bureau and organized in collaboration with Shenzhen Panorama Network Co., Ltd. [2] Group 3: Participation and Engagement - Company executives will participate in the event to engage in "one-to-many" communication with investors [2] - Topics for discussion will include corporate governance, development strategy, operational status, and sustainable development [2] - Investors are encouraged to actively participate in the event [2]

本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没 有虚假记载、误导性陈述或重大遗漏。 重要内容提示: 宁波康强电子股份有限公司 2021 年第三季度报告 证券代码：002119 证券简称：康强电子 公告编号：2021-035 宁波康强电子股份有限公司 2021 年第三季度报告 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准 确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带 的法律责任。 | | 本报告期 | 本报告期比上年同期增 | 年初至报告期末 | 年初至报告期末比上年 | | --- | --- | --- | --- | --- | | | | 减 | | 同期增减 | | 营业收入（元） | 604,207,769.56 | 42.91% | 1,660,667,309.08 | 54.01% | | 归属于上市公司股东的 净利润（元） | 53,316,491.04 | 169.64% | 124,337,777.89 | 73.60% | | 归属于上市公司股东 ...

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,056,459,539.52, representing a 61.16% increase compared to ¥655,534,766.32 in the same period last year[18]. - The net profit attributable to shareholders was ¥71,021,286.85, up 36.97% from ¥51,850,002.20 year-on-year[18]. - The net profit after deducting non-recurring gains and losses increased by 84.74%, reaching ¥70,153,887.48 compared to ¥37,973,501.74 in the previous year[18]. - The basic earnings per share rose to ¥0.19, a 35.71% increase from ¥0.14 in the same period last year[18]. - The total revenue from the manufacturing sector was ¥1,048,937,275.60, accounting for 99.29% of total revenue, with a year-on-year growth of 61.84%[41]. - Domestic sales contributed ¥832,797,446.60, representing 78.83% of total revenue, with a growth of 60.65% year-on-year[41]. - The total profit for the first half of 2021 was ¥81,831,985.48, an increase of 32.1% from ¥61,929,624.05 in the first half of 2020[137]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,045,810,586.87, an 11.85% increase from ¥1,829,046,813.59 at the end of the previous year[18]. - The net assets attributable to shareholders increased by 6.31%, amounting to ¥1,032,465,025.16 compared to ¥971,201,122.31 at the end of the previous year[18]. - The company's total liabilities reached CNY 1,013,345,561.71, up from CNY 857,845,691.28, indicating a growth of approximately 18.1%[129]. - Current liabilities rose to CNY 830,854,804.27, compared to CNY 690,333,532.69, reflecting an increase of about 20.3%[129]. - The company's financial liabilities at the beginning of the period were 4,148,200, with a decrease of 1,114,755 during the reporting period[48]. Cash Flow - The net cash flow from operating activities was negative at -¥14,428,589.15, a decline of 133.85% compared to ¥42,619,880.07 in the same period last year[18]. - The company reported a net increase in cash and cash equivalents of ¥6,788,024.30, a decrease of 83.03% compared to ¥39,989,025.31 in the previous year[38]. - Total cash inflow from operating activities in the first half of 2021 was 761,455,842.31 RMB, up from 506,390,057.83 RMB in the first half of 2020, representing a 50.2% increase[145]. - Cash outflow from operating activities increased to 775,884,431.46 RMB in the first half of 2021, compared to 463,770,177.76 RMB in the same period of 2020, marking a 67.2% rise[145]. - The ending balance of cash and cash equivalents was 114,360,592.72 RMB at the end of the first half of 2021, compared to 125,707,931.19 RMB at the end of the first half of 2020[146]. Research and Development - The company has invested in R&D, holding 34 invention patents and 80 utility model patents, which enhances its competitive edge in technology and innovation[34][35]. - Research and development expenses rose by 5.10% to ¥33,829,732.91 from ¥32,187,828.77[38]. - The company has a strong talent pool with 124 R&D and technical personnel, which supports its ongoing innovation and product development efforts[34]. Market Position and Strategy - The company specializes in the development, production, and sales of semiconductor packaging materials, including lead frames and bonding wires, with a leading position in the domestic market for these products[26][28][34]. - The company has established a stable customer base with a coverage rate of 60% among major domestic semiconductor packaging enterprises, and it is expanding its efforts in overseas markets[31][34]. - The company has optimized its product structure to focus on high-density etched lead frames, aligning with industry trends towards high integration and performance[33]. - The company plans to actively expand its domestic and international customer base to minimize the pandemic's impact[62]. Risk Management - The management has highlighted potential risks and future operational plans in the report, emphasizing the importance of investor awareness regarding investment risks[4]. - The company is significantly affected by the semiconductor industry's cyclical nature, with performance closely tied to market demand and pricing fluctuations[61]. - Major raw materials, including copper, gold, and silver, constitute a high proportion of the company's product costs, making it vulnerable to price volatility[61]. - The company has implemented risk mitigation strategies for raw material price fluctuations, including zero inventory for key materials and centralized procurement[61]. - The ongoing COVID-19 pandemic continues to pose uncertainties for both domestic and international markets, affecting product exports[62]. Corporate Governance and Compliance - The company has established a multi-tier governance structure including a board of directors and various specialized committees[164]. - The company prepares financial statements based on the going concern assumption and adheres to the accounting standards issued by the Ministry of Finance[166]. - There are no significant doubts regarding the company's ability to continue as a going concern for the next 12 months[167]. - The company confirms that its financial statements comply with the accounting standards and accurately reflect its financial position, operating results, and cash flows[169]. Social Responsibility - The company contributed 300,000 yuan to the "Kangqiang Charity Poverty Alleviation Fund" to support poverty alleviation and rural revitalization efforts[75]. - There were no significant environmental penalties or violations reported during the period[74].

Financial Performance - The company's revenue for Q1 2021 was CNY 473,833,242.54, representing a 71.57% increase compared to CNY 276,167,362.69 in the same period last year[7]. - Net profit attributable to shareholders was CNY 22,717,801.10, a 100.07% increase from CNY 11,354,864.40 year-on-year[7]. - The net profit after deducting non-recurring gains and losses was CNY 25,108,563.11, up 200.97% from CNY 8,342,633.50 in the previous year[7]. - The basic earnings per share increased to CNY 0.06, doubling from CNY 0.03 in the same quarter last year[7]. - Total operating revenue for Q1 2021 reached CNY 473,833,242.54, a significant increase from CNY 276,167,362.69 in the previous period[37]. - Net profit for Q1 2021 was CNY 22,717,801.10, up from CNY 11,354,864.40 in the same period last year, indicating a growth of 100%[39]. - The company reported a total profit of CNY 27,438,126.96 for the quarter, compared to CNY 13,725,072.56 in the previous year, marking a substantial increase[39]. - The net profit for the first quarter of 2021 was CNY 18,962,916.59, compared to CNY 3,602,914.24 in the same period last year, representing an increase of approximately 426%[43]. - Operating profit for the first quarter reached CNY 22,809,506.01, significantly higher than CNY 4,377,012.02 in the previous year, indicating a growth of about 420%[43]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,900,870,877.92, a 3.93% increase from CNY 1,829,046,813.59 at the end of the previous year[7]. - The company's total assets reached CNY 1,846,071,316.39, up from CNY 1,785,889,350.25, reflecting growth in the company's asset base[38]. - The total liabilities of the company were CNY 906,951,954.51, compared to CNY 857,845,691.28, marking an increase of around 5.7%[31]. - Total liabilities increased to CNY 1,029,059,899.19 from CNY 987,840,849.64, showing a rise in financial obligations[38]. - The company's equity attributable to shareholders reached CNY 993,918,923.41, up from CNY 971,201,122.31, which is an increase of approximately 2.6%[32]. - The company's total liabilities to equity ratio stood at approximately 0.91, reflecting a slight increase from the previous period[31]. Cash Flow - The net cash flow from operating activities was negative CNY 32,675,439.94, a decline of 389.59% compared to a positive CNY 11,283,451.81 in the same period last year[7]. - Cash flow from operating activities decreased by 43.9589 million yuan, a decrease of 389.59%, mainly due to an increase in operating receivables and inventory[15]. - The company incurred a total operating cash outflow of CNY 377,520,719.45, compared to CNY 226,835,302.55 in the previous year, marking an increase of approximately 66%[47]. - The financing activities generated a net cash inflow of CNY 45,481,609.07, compared to CNY 16,033,490.13 in the same period last year, showing an increase of approximately 184%[48]. - The net cash flow from financing activities increased to 56,784,388.81 from 33,265,994.44 year-over-year[51]. - The cash outflow for the acquisition of fixed assets and other long-term assets was 5,288,313.16, a decrease from 6,793,970.90 year-over-year[51]. - The cash paid for debt repayment was 99,000,000.00, compared to 54,000,000.00 in the previous year[51]. Shareholder Information - The company reported a total of 42,445 common shareholders at the end of the reporting period[11]. - The largest shareholder, Ningbo Pulisais Electronic Co., Ltd., held 19.72% of the shares, amounting to 74,009,208 shares, which are currently frozen[11]. Operational Metrics - Operating costs increased by 169.1356 million yuan, an increase of 77.08%, mainly due to sales growth during the period[15]. - Management expenses increased by 8.4057 million yuan, an increase of 51.92%, primarily due to increased employee compensation and depreciation expenses[15]. - Research and development expenses for the quarter were CNY 14,365,482.41, slightly down from CNY 15,261,172.92 year-over-year[38]. Other Financial Metrics - The weighted average return on equity was 2.31%, up from 1.26% in the previous year[7]. - Credit impairment losses increased by 4.5459 million yuan, an increase of 568.56%, mainly due to increased bad debt provisions resulting from revenue growth[15]. - Investment income decreased by 0.9057 million yuan, a decrease of 411.87%, mainly due to losses from ineffective hedging during the period[15].

Financial Performance - The company's operating revenue for 2020 was CNY 1,548,632,508.79, representing a 9.19% increase compared to CNY 1,418,269,645.18 in 2019[17] - The net profit attributable to shareholders for 2020 was CNY 87,930,951.38, a decrease of 5.02% from CNY 92,582,917.83 in 2019[17] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 75,651,573.71, down 2.79% from CNY 77,823,042.74 in the previous year[17] - The net cash flow from operating activities was CNY 160,491,983.07, a significant increase of 2,008.24% compared to a negative cash flow of CNY 8,410,488.04 in 2019[17] - Basic earnings per share for 2020 were CNY 0.23, down 8.00% from CNY 0.25 in 2019[17] - The diluted earnings per share also stood at CNY 0.23, reflecting the same 8.00% decrease compared to the previous year[17] - The weighted average return on net assets was 9.44%, a decline of 1.47% from 10.91% in 2019[17] - The company's operating profit for 2020 was ¥83,028,848.36, a decrease of 25.44% year-on-year[39] - The total profit for 2020 was ¥93,250,296.32, down 5.87% from the previous year[39] Revenue Breakdown - Revenue from lead frame products was 886,978,189.52 CNY, accounting for 57.27% of total revenue, with a year-on-year growth of 10.76%[46] - The domestic market contributed 1,266,816,100.87 CNY, which is 81.80% of total revenue, showing a 12.84% increase year-on-year[46] - The sales volume of lead frames increased by 1.63% to 1,238.33 million units, while production volume decreased by 1.24% to 1,209.14 million units[47] - The company's gross profit margin for lead frame products was 25.41%, a decrease of 3.87% compared to the previous year[46] Assets and Liabilities - Total assets at the end of 2020 were CNY 1,829,046,813.59, an increase of 0.97% compared to CNY 1,811,443,649.36 at the end of 2019[18] - Net assets attributable to shareholders at the end of 2020 were CNY 971,201,122.31, representing an 8.80% increase from CNY 892,652,229.93 at the end of 2019[18] - Accounts receivable increased to ¥376,518,795.88, representing 20.59% of total assets, up from 19.84% in the previous year[66] - Inventory rose to ¥330,252,160.83, making up 18.06% of total assets, compared to 16.78% at the beginning of the year[66] Cash Flow - Operating cash inflow totaled ¥1,291,189,486.98 in 2020, representing a 17.42% increase from ¥1,099,604,707.70 in 2019[60] - Investment cash inflow surged by 296.36% to ¥72,527,037.95 in 2020, up from ¥18,298,369.82 in 2019[60] - The net increase in cash and cash equivalents was ¥21,853,662.54, a 547.45% increase from -¥4,884,023.03 in 2019[61] Research and Development - The company has 33 invention patents and 78 utility model patents, showcasing its strong R&D capabilities[33] - Research and development expenses for 2020 were 61,572,582.94 CNY, a decrease of 5.48% from the previous year[57] - The number of R&D personnel decreased by 17.83% to 106 in 2020, accounting for 11.50% of total employees[58] - The company plans to enhance its R&D capabilities by introducing 1-2 PhD candidates and establishing an academic workstation in 2021[92] Market Position and Strategy - The company has maintained a stable customer base with a coverage rate of 60% among major domestic semiconductor packaging enterprises[30] - The company’s main products include lead frames and bonding wires, which are essential materials for semiconductor packaging[26] - The company operates under a "sales-driven production" model, adjusting production plans based on market demand and inventory levels[30] - The company aims to achieve a revenue target of 1.78 billion RMB in 2021, contingent on market demand and other factors[92] Risk Management - The company has established a risk-hedging mechanism to address the volatility in raw material prices, which include copper, gold, and silver[4] - The company faces risks related to market fluctuations in the semiconductor industry, which is cyclical and can impact pricing and performance[96] - The company has established a risk management mechanism to mitigate the impact of raw material price fluctuations, including strategies like zero inventory and centralized procurement[96] Legal Matters - The company was awarded a judgment of RMB 637.5 million for the return of goods and compensation for losses in a lawsuit against Aomet Technology[121] - The court upheld the original ruling on September 18, 2020, maintaining the judgment against Aomet Technology[122] - Aomet Technology was ordered to return RMB 278.6 million and compensate for losses as per the court's decision[123] - The total amount involved in the lawsuits against Aomet Technology exceeds RMB 1 billion across multiple claims[123] Environmental Commitment - The company has achieved an 80% online reuse rate for electroplating wastewater, demonstrating its commitment to environmental sustainability[34] - The company has implemented a comprehensive emergency response plan for environmental incidents and conducts annual drills[153] - The company has established a pollution prevention facility that operates normally, ensuring that wastewater and air emissions meet regulatory standards[151] Shareholder Information - The total number of shares outstanding is 375,284,000, with 97.93% being unrestricted shares[162] - The largest shareholder, Ningbo Pulisai Electronic Co., Ltd., holds 19.72% of shares, totaling 74,009,208 shares, which are currently frozen[165] - The company does not have a controlling shareholder or actual controller, indicating a dispersed shareholding structure[167][169] Management and Governance - The company has a strong leadership team with extensive experience in the semiconductor and electronic components industry, including Zheng Kangding, who has over 30 years of experience[181] - The company has experienced management changes, with several executives holding multiple positions across different subsidiaries[188] - The company has a performance-based salary structure for senior management, which includes basic and performance pay determined by the board[191] Employee Information - The total number of employees in the company is 922, with 751 in the parent company and 171 in major subsidiaries[195] - The professional composition includes 693 production personnel, 18 sales personnel, 106 technical personnel, 10 financial personnel, and 95 administrative personnel[195] - The company conducted 34 training activities in 2020, training a total of 746 participants, focusing on various business training topics[198]

Financial Performance - Operating revenue for the reporting period was ¥422,785,362.68, representing a year-on-year growth of 13.31%[7] - Net profit attributable to shareholders of the listed company decreased by 36.09% to ¥19,773,577.14[7] - Net profit after deducting non-recurring gains and losses was ¥14,934,478.44, down 40.84% year-on-year[7] - Basic earnings per share decreased by 37.50% to ¥0.05[7] - The weighted average return on net assets was 2.09%, a decrease of 1.49% compared to the previous year[7] - The net profit for the third quarter was CNY 19,773,577.14, down from CNY 30,941,234.82 year-over-year, representing a decrease of approximately 36%[42] - The total profit for the third quarter was CNY 23,962,761.45, compared to CNY 37,053,907.57 in the previous period, indicating a decline of about 35%[42] - The net profit attributable to the parent company for the third quarter was CNY 71,623,579.34, down from CNY 79,122,671.33, reflecting a decrease of about 9.4% year-over-year[50] - The total profit for the third quarter was CNY 85,892,385.50, compared to CNY 93,952,470.00 in the previous year, a decrease of about 8.6%[50] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,834,090,588.59, an increase of 1.25% compared to the end of the previous year[7] - The company's current assets totaled CNY 1,019,654,750.88, compared to CNY 989,190,832.50 at the end of 2019, reflecting a growth of approximately 3.5%[32] - The total liabilities of the company as of September 30, 2020, were not explicitly stated but can be inferred from the balance sheet[33] - Total liabilities reached CNY 918,791,419.43, with current liabilities at CNY 793,245,053.74 and non-current liabilities at CNY 125,546,365.69[66] - The company's total assets as of September 30, 2020, were CNY 1,664,459,966.36, compared to CNY 1,557,061,004.36 at the end of 2019[37] Cash Flow - Net cash flow from operating activities increased by 109.15% to ¥73,035,523.75[7] - Cash flow from operating activities increased by 33.6331 million yuan, an increase of 41.00%, mainly due to the recovery of operating receivables and insurance claims received[15] - Cash inflow from investment activities totaled CNY 62,469,195.48, compared to CNY 16,652,634.99 in Q3 2019, marking a significant increase[59] - Net cash flow from financing activities was negative CNY 109,909,525.33, compared to negative CNY 22,945,150.32 in the same quarter last year[59] Shareholder Information - Net assets attributable to shareholders of the listed company increased by 6.97% to ¥954,893,750.27[7] - The total number of ordinary shareholders at the end of the reporting period was 47,446[11] - The largest shareholder, Ningbo Pulisai Electronic Co., Ltd., held 19.72% of the shares, totaling 74,009,208 shares[11] Operational Changes - The company has completed the relocation of its production line from Jiangyin to Ningbo, with compensation payments totaling 13.7752 million yuan by the report date[16] - The company won a lawsuit against Shenzhen Aomeite Technology Co., which is required to return 11.211 million yuan in goods and compensation for losses[17] Research and Development - The company plans to continue investing in R&D, with expenses amounting to CNY 13,662,227.56 in Q3 2020, slightly down from CNY 15,933,088.75 in the previous year[41] - Research and development expenses for the third quarter amounted to CNY 8,192,395.50, slightly down from CNY 8,978,384.90 year-over-year[45] Revenue Recognition and Accounting Policies - The company has implemented new revenue recognition standards effective from January 1, 2020, impacting the classification of prepayments[67] - The new revenue recognition standard was implemented starting January 1, 2020, affecting the classification of contract liabilities[72] - The company reported no significant changes in accounting policies related to derivative financial instruments compared to the previous reporting period[24] Non-Operating Income - The company reported a significant increase in non-operating income, up 1116.88 million yuan, an increase of 3966.40%, mainly due to insurance claims received for a fire incident[15]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥655,534,766.32, representing a 0.54% increase compared to ¥652,033,707.96 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥51,850,002.20, an increase of 7.61% from ¥48,181,436.51 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥37,973,501.74, which is a significant increase of 43.51% compared to ¥26,460,203.58 last year[22]. - The total profit reached ¥61,929,624.05, reflecting an 8.84% growth year-over-year[39]. - The net profit excluding non-recurring gains and losses surged by 43.51% to ¥37,973,501.74[39]. - The company reported a comprehensive income total of 51,850,002.2 CNY for the current period[160]. - The total comprehensive income for the first half of 2020 was CNY 51,850,002.20, compared to CNY 48,181,436.51 in the same period of 2019, showing an increase of approximately 5.54%[146]. - The net profit for the first half of 2020 was not disclosed in the provided content, but the retained earnings increased to CNY 389,904,554.34 from CNY 347,436,611.14, a growth of 12.1%[138]. - The company reported a decrease in retained earnings of 28,868.0 million yuan, indicating potential challenges in profitability[170]. Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,872,713,569.79, up 3.38% from ¥1,811,443,649.36 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company increased by 4.76% to ¥935,120,173.13 from ¥892,652,229.93 at the end of the previous year[22]. - Cash and cash equivalents at the end of the reporting period were 159,829,013.2, representing 8.53% of total assets, an increase from 8.31% year-over-year[51]. - Accounts receivable increased to 381,328,761.9, accounting for 20.36% of total assets, up from 20.13% year-over-year[51]. - Inventory stood at 296,949,186.9, representing 15.86% of total assets, a slight decrease from 16.02% year-over-year[51]. - Short-term borrowings rose to 621,855,252.3, making up 33.21% of total liabilities, an increase from 29.57% year-over-year[51]. - Total liabilities increased to CNY 937,593,396.66 from CNY 918,791,419.43, representing a growth of 2.9%[137]. - The total value of restricted assets was 134,865,145.39, primarily due to guarantees and collateral for loans[54]. Cash Flow - The company reported a net cash flow from operating activities of ¥42,619,880.07, which is a decrease of 9.52% compared to ¥47,102,928.92 in the previous year[22]. - The company reported a net cash increase of ¥39,989,025.31, a remarkable 945.28% increase compared to the previous year[43]. - Cash flow from operating activities for the first half of 2020 was CNY 42,619,880.07, down 9.4% from CNY 47,102,928.92 in the first half of 2019[154]. - The total cash inflow from operating activities was CNY 506,390,057.83, down from CNY 564,209,233.32 in the first half of 2019[153]. - The company reported a net cash outflow from investing activities of CNY -27,954,850.41, an improvement from CNY -39,764,469.63 in the first half of 2019[154]. - The net cash flow from financing activities increased to 71,133,492.85 CNY, compared to a negative flow of -20,496,895.06 CNY previously[157]. Market and Operational Strategy - The company plans to closely monitor market demand and actively adjust product structure to mitigate risks associated with market fluctuations[5]. - The ongoing COVID-19 pandemic has impacted the global semiconductor market, but the company aims to expand its domestic and international customer base to minimize the effects[9]. - The company is focusing on expanding its overseas market presence while maintaining its growth in the domestic market[35]. - The company has established a risk management system to mitigate risks associated with commodity price fluctuations, including strategies like zero inventory for key raw materials and hedging through futures contracts[68]. - Major raw materials such as copper, gold, and silver constitute a significant portion of the company's costs, and fluctuations in their prices can impact overall profitability[68]. Research and Development - The company holds 31 invention patents and 80 utility model patents, showcasing its commitment to innovation in semiconductor packaging materials[34]. - The company achieved a significant increase in production efficiency by developing a high-speed selective continuous electroplating process, increasing plating speed by 4 times[35]. - The company is focusing on enhancing its R&D capabilities to drive innovation and competitiveness in the market[165]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 48,704[118]. - The total number of shares was 375,284,000, with 7,780,500 shares (2.07%) under limited sale conditions and 367,503,500 shares (97.93%) under unrestricted sale conditions[116]. - The largest shareholder, Ningbo Pulisais Electronic Co., Ltd., held 74,009,208 shares, accounting for 19.72% of total shares[119]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[120]. Legal and Compliance - The company is involved in significant litigation with a total claim amount of 637.5 million yuan, with ongoing appeals[78]. - Another litigation involves a claim of 278.6 million yuan, also under appeal[79]. - A claim of 108 million yuan is pending in court, with the defendant appealing the decision[80]. - The company has faced a counterclaim for 112.5 million yuan, which is also under appeal[80]. - A separate claim of 72 million yuan is pending, with no final judgment yet[80]. - The company has not reported any overdue commitments from major stakeholders during the reporting period[74]. Governance and Compliance - The company has established a multi-tier governance structure, including a board of directors and various specialized committees[172]. - The financial statements are prepared based on the going concern assumption, with no significant doubts regarding the company's ability to continue operations for the next 12 months[175]. - The company adheres to the accounting policies and estimates as per the relevant accounting standards, including revenue recognition and credit loss assessments[176].