Financial Performance - The company's operating revenue for 2020 was CNY 314,563,718.67, a decrease of 17.88% compared to CNY 383,055,009.25 in 2019[16] - The net profit attributable to shareholders in 2020 was CNY 7,309,799.46, a significant improvement of 102.51% from a loss of CNY 291,491,352.09 in 2019[16] - The net cash flow from operating activities increased by 41.04% to CNY 27,597,848.76 in 2020, compared to CNY 19,567,057.66 in 2019[16] - Basic and diluted earnings per share for 2020 were CNY 0.04, recovering from a loss of CNY 1.46 per share in 2019[16] - The total assets at the end of 2020 were CNY 626,524,542.55, a decrease of 4.30% from CNY 654,651,989.30 at the end of 2019[16] - The net assets attributable to shareholders increased by 1.20% to CNY 142,051,055.37 at the end of 2020, compared to CNY 140,361,986.87 at the end of 2019[16] - The company reported a significant reduction in non-recurring losses, with the net profit excluding non-recurring items at CNY -30,548,203.88, an improvement of 89.42% from CNY -288,644,049.54 in 2019[16] - The weighted average return on net assets was 5.18% in 2020, a recovery from -101.72% in 2019[16] Revenue Breakdown - Total revenue for Q1 was ¥58.38 million, Q2 was ¥86.44 million, Q3 was ¥91.81 million, and Q4 was ¥77.93 million[20] - Net profit attributable to shareholders for Q1 was -¥6.45 million, Q2 was ¥7.42 million, Q3 was -¥0.70 million, and Q4 was ¥7.05 million[20] - Non-recurring gains and losses totaled ¥37.86 million in 2020, compared to -¥2.85 million in 2019[22] - The internet advertising marketing business generated revenue of ¥17,181,451.17, down 71.16% year-on-year, with a net loss of ¥674,168.17, a decrease of 114.13%[36] - The chemical raw materials and chemical products manufacturing sector accounted for 92.91% of total revenue, with a revenue of ¥292,259,355.38, down 8.11% year-on-year[39] Cost and Expenses - The company’s main business cost for internet marketing advertising decreased by 71.71% to CNY 11,287,295.27 from CNY 39,896,470.05 in 2019[46] - The company’s total sales expenses decreased by 59.65% to CNY 10,068,967.87 in 2020 from CNY 24,952,785.03 in 2019[51] - The company’s management expenses decreased by 3.44% to CNY 50,554,656.80 in 2020 from CNY 52,356,386.93 in 2019[51] Research and Development - The total R&D expenditure in 2020 was CNY 9,979,238.68, a decrease of 28.60% compared to CNY 13,976,536.69 in 2019, representing 3.17% of total revenue[52] - The company is committed to R&D in environmentally friendly inks, leveraging its strong technical capabilities[29] - The company focused on developing water-based and UV inks, launching products such as environmentally friendly inks and water-soluble plastic inks during the reporting period[35] Market and Industry Trends - The ink manufacturing sector is shifting towards more eco-friendly products like water-based and UV inks due to regulatory support[27] - The internet advertising marketing sector is experiencing rapid growth, driven by increasing internet user numbers and technological advancements[27] - The internet advertising segment experienced a significant decline in revenue due to the prolonged impact of the COVID-19 pandemic, leading to adjustments in the company's market development strategy[68] Strategic Initiatives - The company has established a stable procurement network and efficient production processes to optimize resource allocation[26] - The company aims to enhance production management and invest in new intelligent and automated production lines to improve efficiency and reduce emissions[70] - A major asset restructuring project is underway, with the company seeking to acquire shares in He Sanli Company to enhance market competitiveness and sustainable profitability[70] Risk Management - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[4] - The company faces risks from macroeconomic fluctuations, which may impact overall business operations due to the ongoing global pandemic and complex international situation[71] - Rising operational costs due to fluctuating raw material prices and high labor costs are expected to pressure profit margins[72] Corporate Governance - The company has maintained its accounting firm, Da Hua Accounting Firm, for 14 consecutive years, with an audit fee of RMB 750,000[90] - The board consists of 6 directors, including 3 independent directors, ensuring compliance with corporate governance standards[152] - The company has established a comprehensive human resources management system to ensure fair treatment and protect employee rights, providing a stable work environment[116] Environmental Responsibility - The company emphasizes environmental protection and has implemented energy-saving measures, achieving compliance with pollution discharge standards[117] - The company has a wastewater treatment facility with a capacity of 10 tons per day, ensuring that treated water meets discharge standards[121] - The company has six sets of VOCs treatment facilities, which are currently operating normally and are regularly maintained[122] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,032, with 9,812 being ordinary shareholders[137] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of shares, totaling 51,999,959 shares, with 51,990,000 shares pledged[137] Audit and Compliance - The audit opinion issued by Da Hua Accounting Firm was a standard unqualified opinion[192] - The company confirmed that there were no major defects in non-financial reporting[188] - The internal control self-assessment report indicated that all units included in the evaluation accounted for 100% of the company's total assets and revenue[186]

Financial Performance - The company's operating revenue for 2020 was ¥314,563,718.67, a decrease of 17.88% compared to ¥383,055,009.25 in 2019[18]. - The net profit attributable to shareholders in 2020 was ¥7,309,799.46, a significant improvement of 102.51% from a loss of ¥291,491,352.09 in 2019[18]. - The net cash flow from operating activities increased by 41.04% to ¥27,597,848.76 in 2020, compared to ¥19,567,057.66 in 2019[18]. - The basic earnings per share for 2020 was ¥0.04, recovering from a loss of ¥1.46 per share in 2019, marking a 102.74% increase[18]. - The company reported a decrease in revenue after deductions, with the adjusted operating revenue for 2020 at ¥309,440,806.55 compared to ¥377,622,744.70 in 2019[18]. - The net profit attributable to shareholders was negative in Q1 and Q3, with a loss of ¥6,452,290.39 in Q1 and ¥701,973.42 in Q3, but turned positive in Q2 and Q4 with profits of ¥7,417,644.21 and ¥7,046,419.06 respectively[22]. - The company reported a non-recurring gain of ¥37,858,003.34 in 2020, compared to a loss of ¥2,847,302.55 in 2019[24]. - The company reported a significant decline in overall performance due to the impact of the COVID-19 pandemic, with a focus on adapting to new marketing trends such as short video and live streaming[76]. Assets and Liabilities - Total assets at the end of 2020 were ¥626,524,542.55, down 4.30% from ¥654,651,989.30 at the end of 2019[18]. - The net assets attributable to shareholders increased by 1.20% to ¥142,051,055.37 at the end of 2020, compared to ¥140,361,986.87 at the end of 2019[18]. - The company's revenue for the chemical raw materials and chemical products manufacturing industry was approximately ¥292.26 million, representing a year-on-year decrease of 8.11%[44]. - The total cost of main business for the chemical raw materials and chemical products manufacturing industry was approximately ¥223.01 million, down 8.28% from the previous year[48]. - The company provided a guarantee of 1.52 billion CNY for its subsidiary, which represents 107% of the company's net assets[115]. Business Segments - The main business segments include ink manufacturing and internet advertising marketing, with a focus on high-end printing inks and innovative advertising solutions[27]. - The ink manufacturing sector is shifting towards more environmentally friendly products, such as water-based and UV inks, in response to regulatory trends[29]. - The internet advertising marketing sector is experiencing rapid growth, driven by increasing internet user numbers and evolving marketing channels, despite intense competition[29]. - The internet advertising marketing business generated revenue of ¥17,181,451.17, a significant decline of 71.16% year-on-year, with a net loss of -¥674,168.17, down 114.13% year-on-year[38]. Research and Development - The R&D team is focused on developing eco-friendly ink products, enhancing the company's competitive edge in the market[31]. - The company developed new products including water-based inks and UV inks, focusing on green and environmentally friendly trends[37]. - The company has invested 50 million RMB in R&D for new technologies aimed at improving product efficiency[162]. Operational Challenges - The company faced challenges in its ink manufacturing business due to macroeconomic downturns and rising raw material prices[36]. - The company is addressing rising operational costs due to fluctuating raw material prices and increasing labor costs by optimizing internal management and enhancing communication with upstream and downstream enterprises[75]. - The company acknowledges intensified competition in the ink industry, driven by rapid development and policy optimization, and plans to adopt scientific competition strategies to maintain market share[75]. Corporate Governance - The company has maintained a continuous relationship with its accounting firm, Da Hua Accounting Firm, for 14 years, with an audit fee of RMB 750,000[94]. - The company has not engaged in any investor communication or interviews during the reporting period[78]. - The company’s board of directors consists of seven members, including three independent directors, ensuring compliance with legal requirements[172]. - The company held four shareholder meetings during the reporting period, ensuring equal rights for all shareholders[171]. Future Outlook - The company plans to focus on the development of environmentally friendly inks, aligning with market trends towards sustainable products[71]. - The company aims to optimize its business structure and adjust operational strategies to achieve sustainable growth[36]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2023[162]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance production capacity by 30%[162]. Cash Flow and Financing - Operating cash inflow decreased by 18.18% to ¥302.99 million in 2020 compared to ¥370.32 million in 2019[58]. - Net cash flow from financing activities decreased by 58.01% to -¥39.35 million in 2020, mainly due to increased repayment of bank loans[59]. - Cash and cash equivalents increased by 306.98% to ¥18.04 million in 2020 compared to a decrease of ¥8.71 million in 2019[59]. Environmental and Social Responsibility - The company has established a wastewater treatment facility with a capacity of 10 tons per day, ensuring compliance with environmental standards[125]. - The company has upgraded its VOCs treatment facilities, with new equipment expected to be operational by 2021[125]. - The company maintains a strong commitment to environmental protection, ensuring that it is not classified as a key pollutant discharge unit[123]. Shareholder Information - The controlling shareholder, Shenzhen Dashing Asset Management Co., Ltd., holds 51,999,959 shares, representing 26.00% of the total share capital, with 99.98% of these shares pledged[98]. - The total number of shareholders at the end of the reporting period was 10,032, an increase from 9,812 at the end of the previous month[141]. - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., holds 26.00% of the shares, totaling 51,999,959 shares, which are pledged[141]. Internal Controls and Audit - The audit opinion issued was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position as of December 31, 2020[195]. - The company maintained effective internal controls related to financial statements as of December 31, 2020, according to the internal control audit report[190]. - The internal control evaluation report disclosed no major deficiencies in financial or non-financial reporting[189].

Financial Performance - Operating revenue for the reporting period was CNY 101,275,394.96, down 11.46% year-on-year[9] - Net profit attributable to shareholders was a loss of CNY 701,973.42, representing an increase in loss of 87.65% compared to the same period last year[9] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 418,143.03, an increase in loss of 92.90% year-on-year[9] - Basic earnings per share were CNY -0.004, a decrease of 87.65% year-on-year[9] - The weighted average return on net assets was -0.17%, down from 1.18% in the previous year[9] - The total operating revenue for Q3 2020 was CNY 101,275,394.96, a decrease of 11.5% compared to CNY 114,379,425.53 in the same period last year[44] - The total operating costs for Q3 2020 were CNY 101,761,261.29, down from CNY 117,543,143.74, reflecting a reduction of 13.5%[45] - The net profit for Q3 2020 was a loss of CNY 701,973.42, an improvement from a loss of CNY 5,685,674.75 in Q3 2019[46] Assets and Liabilities - Total assets at the end of the reporting period were CNY 610,910,736.51, a decrease of 6.68% compared to the end of the previous year[9] - The company's total assets as of September 30, 2020, amounted to CNY 610,910,736.51, a decrease from CNY 654,651,989.30 at the end of 2019, representing a decline of approximately 6.67%[36] - The company's current assets totaled CNY 204,148,657.15, down from CNY 228,158,995.99 at the end of 2019, indicating a decrease of about 10.55%[36] - The company's total liabilities were CNY 475,900,798.38, down from CNY 514,290,002.43, representing a decrease of about 7.46%[38] - The total current liabilities increased to CNY 305,254,162.04 from CNY 273,666,328.25, representing an increase of 11.5%[42] - The company's total liabilities were ¥514,290,002.43, remaining stable compared to the previous year[72] Cash Flow - The net cash flow from operating activities was CNY 5,816,656.34, down 28.01% compared to the same period last year[9] - Cash and cash equivalents increased by 217.26%, primarily due to increased net cash generated from operating activities and lower cash outflows from financing activities[17] - The company reported a 58.15% decrease in net cash flow from investing activities, mainly due to increased construction projects at a subsidiary[17] - The company’s financing activities generated a net cash flow increase of 34.97%, primarily due to the repayment of bank loans[17] - The net cash flow from operating activities for Q3 2020 was ¥11,528,453.19, a decrease of 82.7% compared to ¥66,566,969.23 in Q3 2019[66] - The total cash inflow from financing activities was ¥75,000,000.00, down 37.5% from ¥120,000,000.00 in the previous year[67] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,395[13] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of the shares[13] Strategic Developments - The company reported no significant changes in its strategy or new product developments during the reporting period[16] - The company plans to acquire 100% equity of Hunan Nuclear Sanli Technology Engineering Co., Ltd. through a combination of issuing shares and cash payments[20] - The company intends to issue shares and pay cash to acquire 100% equity of Zhejiang Qichen Technology Co., Ltd. and 45% equity of Hunan Nuclear Sanli Technology Co., Ltd.[22] Other Financial Metrics - Cash and cash equivalents increased to CNY 15,618,148.27 from CNY 9,386,986.96, reflecting a growth of approximately 66.67%[36] - Accounts receivable decreased slightly to CNY 137,821,305.15 from CNY 141,818,006.50, a reduction of about 2.23%[36] - Inventory decreased to CNY 43,489,843.66 from CNY 44,839,521.93, showing a decline of approximately 3.02%[36] - The company reported a financial expense of CNY 4,722,846.37, down from CNY 7,252,403.99, indicating a decrease of 34.0%[45] - The company reported a credit impairment loss of CNY 172,224.33 million, a decrease from CNY 5,139,608.00 million in the previous period[49]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥167,867,511.35, a decrease of 24.53% compared to ¥222,421,991.75 in the same period last year[17]. - The net profit attributable to shareholders was ¥965,353.82, representing a significant increase of 111.22% from a loss of ¥8,600,581.88 in the previous year[17]. - The net cash flow from operating activities increased by 55.33% to ¥20,067,556.99, compared to ¥12,919,020.30 in the same period last year[17]. - Basic earnings per share improved to ¥0.005, up 111.63% from a loss of ¥0.043 per share in the previous year[17]. - The company's total revenue for the reporting period was 160,332,437.05, a decrease of 12.29% compared to the same period last year[44]. - The company reported a net profit attributable to the parent company increased by 111.22%, mainly due to cost savings from reduced labor and rent during the subsidiary's shutdown[46]. - The total comprehensive income for the first half of 2020 was -13,588,437.48 RMB, indicating a significant decrease compared to the previous period[165]. Assets and Liabilities - Total assets at the end of the reporting period were ¥593,923,024.96, a decrease of 9.28% from ¥654,651,989.30 at the end of the previous year[17]. - The net assets attributable to shareholders decreased by 2.33% to ¥137,085,959.48 from ¥140,361,986.87 at the end of the previous year[17]. - The company's total assets as of June 30, 2020, amounted to CNY 481.36 million, a decrease from CNY 494.85 million at the end of 2019[138]. - The total liabilities as of June 30, 2020, were CNY 273.76 million, slightly up from CNY 273.67 million at the end of 2019[138]. - The total equity attributable to shareholders was CNY 137.09 million, down from CNY 140.36 million at the end of 2019[134]. Cash Flow - The company's cash and cash equivalents increased by 75.93%, reaching 16,514,775.36[46]. - The cash flow from operating activities increased by 55.33%, attributed to faster collection of sales payments[46]. - The net cash flow from operating activities for the first half of 2020 was ¥7,377,697.64, a decrease of 54.8% compared to ¥16,325,812.61 in the same period of 2019[152]. - Total cash inflow from financing activities was ¥227,000,000.00, an increase of 30.5% from ¥174,000,000.00 in the previous year[150]. - The ending balance of cash and cash equivalents was ¥16,504,775.36, down from ¥24,651,696.35 at the end of the previous year[151]. Business Operations - The company operates primarily in ink manufacturing and internet advertising marketing, with a focus on high-end gravure, flexo, and screen printing inks[25]. - The ink manufacturing business employs a "sales-driven production" model, allowing for customized production based on client orders, which enhances efficiency and reduces costs[26]. - The internet advertising marketing business has faced challenges due to the COVID-19 pandemic, leading to a decline in overall performance as advertisers postponed or reduced budgets[27]. - The company has established a stable procurement network with suppliers, optimizing resource allocation through a "production-driven procurement" model[26]. - The internet advertising segment is expected to face challenges due to the ongoing impact of the COVID-19 pandemic, potentially leading to a decline in profitability[62]. Research and Development - The research and development team is focused on creating new environmentally friendly inks, improving the company's competitive edge in the market[30]. - The company focused on developing new ink products, including water-based and UV inks, to enhance product competitiveness and meet market demand[36]. - The company's research and development expenses were ¥4,513,137.20, a decrease of 20.66% year-on-year, reflecting adjustments in response to market conditions[40]. Strategic Planning - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company plans to continue focusing on sustainable development and enhancing operational efficiency in the face of ongoing economic uncertainties[35]. - The company aims to develop new environmentally friendly inks to enhance product performance and market competitiveness[61]. - The company plans to optimize resource allocation and improve its main business to achieve profitability in 2020[62]. Risks and Challenges - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of market conditions[4]. - The company faced risks from macroeconomic fluctuations, industry competition, and raw material price volatility, which could impact overall business operations[61]. - The company has been warned of potential delisting risks due to consecutive years of negative net profits, emphasizing the need for financial recovery[62]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,087[111]. - Shenzhen Dazheng Asset Management Co., Ltd. holds 26.00% of the shares, totaling 51,999,959 shares, with 51,990,000 shares pledged[111]. - The company completed the cancellation of its wholly-owned subsidiary Kashgar Risheng Cultural Media Co., Ltd. in June 2020[102]. Compliance and Governance - The semi-annual financial report has not been audited[71]. - The company has not engaged in any significant mergers or acquisitions during the reporting period[55]. - The company continues to comply with regulatory requirements regarding related party transactions and disclosures[84].

Financial Performance - The company's operating revenue for 2019 was ¥383,055,009.25, a decrease of 21.41% compared to ¥487,438,097.33 in 2018[17] - The net profit attributable to shareholders was -¥291,491,352.09, representing a significant decline of 763.78% from -¥33,745,975.10 in the previous year[17] - The net cash flow from operating activities was ¥19,567,057.66, down 75.08% from ¥78,513,662.37 in 2018[17] - The total assets at the end of 2019 were ¥654,651,989.30, a decrease of 31.66% from ¥957,886,287.66 at the end of 2018[17] - The net assets attributable to shareholders decreased by 67.57% to ¥140,361,986.87 from ¥432,770,588.74 in 2018[17] - The basic earnings per share for 2019 was -¥1.46, a decline of 758.82% compared to -¥0.17 in 2018[17] - The weighted average return on equity was -101.72%, down 94.35% from -7.37% in the previous year[17] - The company achieved total revenue of ¥383,055,009.25 in 2019, a decrease of 21.41% year-on-year[35] - The net profit attributable to shareholders was -¥291,491,352.09, a decline of 763.78% compared to the previous year, primarily due to stricter environmental policies and a sluggish external market[35] Business Segments - The internet advertising marketing business experienced a decline in revenue due to reduced advertising budgets from clients amid economic uncertainties, particularly influenced by the "China-US trade war"[28] - The internet advertising business generated revenue of ¥59,574,155.79, down 54.74% year-on-year, with net profit decreasing by 84.65%[37] - The ink manufacturing segment accounted for 83.03% of total revenue, with a revenue of ¥318,048,588.91, reflecting a 9.00% decrease from the previous year[41] - The ink manufacturing business faced significant pressure due to increased competition, rising raw material costs, and environmental compliance costs, impacting profit margins[27] Cash Flow and Assets - The company's cash and cash equivalents decreased by 48.14% year-on-year, primarily due to significant net cash outflows from financing activities[29] - The goodwill decreased by 99.27% at the end of the period compared to the beginning, mainly due to impairment related to the acquisition of Beijing Xuanxiang Siyue Media Co., Ltd.[29] - The company’s deferred tax assets decreased by 49.58%, attributed to the write-off of previously recognized deferred tax assets from its wholly-owned subsidiary Zhengzhou Letong[29] - As of the end of 2019, cash and cash equivalents decreased to 9,386,986.96 yuan, accounting for 1.43% of total assets, down from 1.89% at the beginning of the year[60] - Accounts receivable increased to 141,818,006.50 yuan, representing 21.66% of total assets, up from 15.18% at the beginning of the year[60] - Fixed assets accounted for 57.62% of total assets at the end of 2019, a significant increase from 42.58% at the beginning of the year[60] Strategic Initiatives - The company plans to adapt its internet advertising strategies to market changes, focusing on technology-driven solutions to mitigate the impact of traditional advertising revenue declines[32] - The company plans to enhance customer service and develop new clients in different sectors to mitigate the impact of economic downturns and rising raw material costs[36] - The company plans to enhance its product structure by focusing on water-based and UV products, increasing R&D investment[71] - The company aims to optimize its production processes and introduce automated production lines to improve efficiency and reduce emissions[71] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[143] Risk Management - The company has outlined potential risks and countermeasures in its report, emphasizing the uncertainty of future plans[4] - The company acknowledges risks from macroeconomic fluctuations and plans to adjust its business strategies accordingly[72] - The competitive landscape in the ink manufacturing industry is intensifying, prompting the company to refine its competitive strategies[72] Governance and Management - The company experienced a leadership change with the departure of several key executives, including the president and financial director, all due to the expiration of their terms[141] - The current management team includes experienced professionals with backgrounds in investment, finance, and management, enhancing the company's strategic direction[143][144][145][146][147] - The company has established a performance evaluation system to ensure a clear reward and punishment mechanism for employees[156] - The company held 4 shareholder meetings during the reporting period, ensuring compliance with legal regulations and equal rights for all shareholders, especially minority shareholders[160] Environmental and Compliance - The company has implemented VOCs treatment facilities and is committed to environmental protection, with six sets of facilities in operation[116] - The company plans to upgrade its VOCs collection facilities and end-treatment processes to reduce pollutant emissions[116] - The company is committed to maintaining safety production standards and has implemented measures to mitigate risks associated with flammable materials used in manufacturing[73] Financial Reporting and Audit - The audit opinion issued was a standard unqualified opinion, confirming that the financial statements fairly reflect the company's financial position[183] - The company has established internal control measures to prevent fraud and ensure accurate financial reporting[177] - The audit procedures included evaluating the reasonableness of key assumptions used in the goodwill impairment testing against historical performance and industry standards[188]

Financial Performance - The company's operating revenue for Q1 2020 was ¥64,925,685.87, a decrease of 39.86% compared to ¥107,953,398.91 in the same period last year[9] - The net profit attributable to shareholders was -¥6,452,290.39, representing an 87.31% decline from -¥3,444,705.03 in the previous year[9] - Basic and diluted earnings per share were both -¥0.032, an 88.24% decrease compared to -¥0.017 in the same period last year[9] - Operating revenue decreased by 39.86%, primarily due to a reduction in sales orders impacted by the COVID-19 pandemic[16] - Operating profit decreased by 169.85%, and net profit decreased by 87.31%, mainly due to a year-on-year decline in sales of ink and internet advertising businesses caused by the global pandemic[16] - The company's net loss for Q1 2020 was CNY 7,100,699.84, compared to a net loss of CNY 1,518,672.58 in Q1 2019, indicating a significant increase in losses[43] - The total comprehensive income for Q1 2020 was a loss of CNY 6.45 million, compared to a loss of CNY 3.44 million in the same quarter of the previous year[45] Cash Flow - The net cash flow from operating activities was ¥3,731,621.17, down 69.27% from ¥12,144,022.29 year-on-year[9] - Cash flow from operating activities decreased by 69.27%, primarily due to a reduction in various operating expenses influenced by the pandemic[16] - The company's operating cash flow for Q1 2020 was CNY 3.73 million, down from CNY 12.14 million in Q1 2019, reflecting a decline of approximately 69.32%[52] - Net cash flow from operating activities was CNY 1,278,915.44, down 90.3% from CNY 13,259,610.61 in the previous year[55] - Cash inflow from financing activities was CNY 134,000,000.00, an increase of 91.4% from CNY 70,000,000.00 in Q1 2019[53] - Net cash flow from financing activities was -CNY 3,645,668.63, compared to -CNY 20,734,772.83 in the previous year, indicating an improvement[53] Assets and Liabilities - Total assets at the end of the reporting period were ¥612,474,485.78, a reduction of 6.44% from ¥654,651,989.30 at the end of the previous year[9] - The company's current assets totaled CNY 193,093,215.75, down from CNY 228,158,995.99 at the end of 2019, indicating a decrease of about 15.37%[34] - The total liabilities as of March 31, 2020, were CNY 277,226,841.66, slightly up from CNY 273,666,328.25 at the end of 2019[40] - The company's total liabilities were CNY 305,093,406.83, with current liabilities at CNY 232,000,000.00, unchanged from the previous period[35] - The total equity decreased to CNY 213,121,678.47 from CNY 221,188,190.51, showing a decline of about 3.2%[40] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,083[12] - Shenzhen Dashing Asset Management Co., Ltd. held 26.00% of the shares, making it the largest shareholder[12] - The company has fulfilled all commitments made to shareholders and has no overdue commitments[23] Government Support and Subsidies - The company received government subsidies amounting to ¥73,375.32 during the reporting period[10] - Other income decreased by 61.9%, mainly due to a reduction in government subsidies received during the reporting period[16] Operational Changes and Future Outlook - The company decided to terminate the major asset restructuring due to uncertainties in the future operations of the target company influenced by the pandemic and global economic conditions[18] - The company will continue to monitor market conditions and adjust strategies accordingly to protect shareholder interests[18] Research and Development - The company’s R&D expenses for Q1 2020 were CNY 2,007,477.57, slightly down from CNY 2,144,885.73 in Q1 2019[43] - Research and development expenses for Q1 2020 were CNY 0.37 million, down from CNY 0.51 million in the same period last year, indicating a decrease of approximately 28.43%[47] Compliance and Audit - The company has not undergone an audit for the first quarter report, indicating preliminary figures[62] - The report does not provide specific user data or future outlook details[63] - No new products, technologies, market expansions, or mergers were mentioned in the available reports[63]

Financial Performance - Operating revenue for the reporting period was CNY 114,379,425.53, a decline of 4.77% year-on-year[9] - Net profit attributable to shareholders of the listed company was a loss of CNY 5,685,674.75, representing a decrease of 422.43% compared to the same period last year[9] - Basic earnings per share were -CNY 0.028, a decrease of 460.00% compared to the same period last year[9] - Operating profit decreased by 393.94%, and net profit attributable to the parent company decreased by 665.33%, mainly due to increased interest expenses on unpaid investment funds and a decline in sales and gross margin of the internet business compared to the same period last year[17] - Net profit for Q3 2019 was a loss of CNY 5,685,674.75, compared to a loss of CNY 1,088,321.62 in Q3 2018, representing a significant increase in losses[41] - The company reported a total comprehensive loss of CNY 14.29 million for the period, compared to a comprehensive income of CNY 2.53 million in the same quarter last year[51] - Net profit for Q3 2019 was ¥70,879,141.01, a significant improvement compared to a net loss of ¥20,386,419.63 in the same period last year[54] - The total profit for the period was a loss of CNY 10.11 million, compared to a loss of CNY 2.82 million in the same quarter last year[50] Assets and Liabilities - Total assets at the end of the reporting period were CNY 921,912,059.77, a decrease of 3.76% compared to the end of the previous year[9] - Current assets totaled CNY 232,657,386.91, down from CNY 244,174,086.06, indicating a decrease of about 4.73%[31] - Total liabilities decreased to CNY 503,532,925.66 from CNY 525,115,698.92, a reduction of approximately 4.1%[33] - The company's total liabilities as of Q3 2019 amounted to CNY 267,582,168.25, a decrease from CNY 385,785,190.74 in the previous year[38] - Total assets amounted to 957,886,287.66 CNY, with current assets at 244,174,086.06 CNY and non-current assets at 713,712,201.60 CNY[66] - The total liabilities were 525,115,698.92 CNY, with current liabilities at 524,615,698.92 CNY and non-current liabilities at 500,000.00 CNY[68] Cash Flow - The net cash flow from operating activities was CNY 8,080,024.47, down 76.25% year-on-year[9] - Cash and cash equivalents decreased by 29.36%, primarily due to reduced operating cash flow and decreased cash outflows related to investment and financing activities compared to the same period last year[17] - Net cash flow from operating activities decreased by 68.51%, primarily due to reduced sales and increased accounts receivable collection periods[17] - Cash flow from operating activities for the period was ¥20,999,044.77, down from ¥66,688,175.32 in the previous year[58] - Cash flow from investing activities showed a net outflow of ¥2,730,218.64, compared to a net outflow of ¥48,889,591.54 in the previous year[58] - Cash flow from financing activities resulted in a net outflow of ¥23,583,032.41, compared to a net outflow of ¥30,613,414.76 in the previous year[59] Shareholder Information - Net assets attributable to shareholders of the listed company were CNY 418,379,134.11, down 3.33% from the previous year[9] - The total number of common shareholders at the end of the reporting period was 15,609[13] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of the shares, totaling 51,999,959 shares[13] - The company's equity attributable to shareholders decreased to CNY 418,379,134.11 from CNY 432,770,588.74, a decrease of approximately 3.33%[33] Investment Activities - The company plans to acquire 100% equity of Wuhan Zhongke Xinwei Information Technology Co., Ltd. through a combination of issuing shares and cash payment[18] - The company is following up on a previous transaction involving the acquisition of Precision Capital Pte. Ltd., which is still pending completion[18] - The company reported a significant investment income of CNY 89.03 million, indicating strong performance in this area[53] Operational Efficiency - The company is focusing on improving operational efficiency and reducing costs in response to the current financial challenges[49]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥222,421,991.75, a decrease of 8.58% compared to ¥243,284,986.00 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was -¥8,600,581.88, representing a decline of 337.89% from ¥3,615,398.15 in the previous year[17]. - The net cash flow from operating activities was ¥12,919,020.30, down 60.46% from ¥32,671,517.57 in the same period last year[17]. - The basic earnings per share were -¥0.043, a decrease of 338.89% compared to ¥0.0180 in the previous year[17]. - The company's revenue for the reporting period was ¥222,421,991.75, a decrease of 8.58% compared to ¥243,284,986.00 in the same period last year[38]. - The cost of goods sold was ¥171,056,373.66, down 8.90% from ¥187,760,819.43 year-on-year[38]. - Research and development expenses decreased by 37.76% to ¥5,688,427.86, primarily due to reduced R&D projects at the wholly-owned subsidiary Beijing Xuanxiang Siyue[38]. - The total operating revenue for the first half of 2019 was CNY 222,421,991.75, a decrease of 8.5% compared to CNY 243,284,986.00 in the same period of 2018[123]. - Net profit for the first half of 2019 was a loss of CNY 8,600,581.88, compared to a profit of CNY 3,615,398.15 in the first half of 2018[124]. Business Segments - The company operates in two main business segments: chemical ink manufacturing and internet advertising marketing[25]. - The internet marketing business revenue was CNY 36,520,685.32, accounting for 16.42% of total operating revenue, while the ink chemical business revenue was CNY 182,802,448.93, making up 82.19%[33]. - The ink manufacturing business saw an increase in sales and improved gross margins during the first half of 2019[25]. Cash Flow and Liquidity - The company’s cash and cash equivalents increased by 36.19% year-on-year, despite a decrease in operating cash flow, due to reduced cash outflows from investment and financing activities[27]. - Cash and cash equivalents at the end of the first half of 2019 totaled CNY 24,651,696.35, an increase from CNY 22,065,281.77 at the end of the previous year[133]. - The net increase in cash and cash equivalents was ¥6,550,736.61, a significant improvement of 121.80% compared to a decrease of ¥30,042,605.26 in the previous year[38]. - The company reported cash inflows from financing activities of CNY 174,000,000.00, compared to CNY 214,000,000.00 in the first half of 2018[133]. - The cash outflow from financing activities was 175,065,171.78 CNY, resulting in a net cash flow of -28,065,171.78 CNY from financing[136]. Assets and Liabilities - Total assets at the end of the reporting period were ¥940,956,883.34, a decrease of 1.77% from ¥957,886,287.66 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were ¥424,109,666.51, down 2.00% from ¥432,770,588.74 at the end of the previous year[17]. - Total liabilities decreased to CNY 286,946,833.06 from CNY 385,785,190.74, a reduction of 25.6%[121]. - The company's current assets totaled RMB 242,774,456.61, slightly down from RMB 244,174,086.06 at the end of 2018, indicating a decrease of about 0.57%[114]. - Short-term borrowings rose to RMB 247,000,000.00, which is 26.25% of total assets, an increase of 3.19% year-on-year[46]. Strategic Initiatives - The company plans to acquire 100% equity of Wuhan Zhongke Xinwei Information Technology Co., Ltd. through a combination of issuing shares and cash payment, indicating a strategic move for market expansion[34]. - The company is actively developing new products, focusing on water-based and UV inks, to enhance product performance and meet market demands[29]. - The company has implemented a series of cost control measures, including restructuring and optimizing the marketing team, to maintain stable operations amid rising raw material costs and stricter environmental regulations[33]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 16,227, with no preferred shares having voting rights restored[99]. - The largest shareholder, Shenzhen Dasing Asset Management Co., Ltd., holds 26.00% of the shares, totaling 51,999,959 shares, which are currently pledged[99]. - The total number of shares is 200,000,000, with 199,962,031 shares being unrestricted[97]. Compliance and Governance - The half-year financial report has not been audited[67]. - There were no significant litigation or arbitration matters during the reporting period[69]. - The company did not experience any penalties or rectification situations during the reporting period[71]. - The company has not engaged in significant equity or non-equity investments during the reporting period[48][49]. - The financial statements for the reporting period were approved by the board of directors on August 24, 2019[157]. Environmental and Social Responsibility - The company continues to respond to national environmental policies by developing eco-friendly inks and maintaining compliance with environmental regulations during production[30]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities and complies with national environmental regulations[89]. - The company has not initiated any targeted poverty alleviation efforts during the reporting period and has no plans for future initiatives[90].

Financial Performance - The company's operating revenue for 2018 was ¥487,438,097.33, a decrease of 8.38% compared to ¥532,046,547.77 in 2017[16]. - The net profit attributable to shareholders was -¥33,745,975.10, representing a decline of 416.92% from ¥10,648,159.54 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥34,091,357.66, down 543.74% from ¥7,682,660.86 in 2017[16]. - The basic earnings per share for 2018 was -¥0.17, a decrease of 440.00% compared to ¥0.05 in 2017[16]. - The total assets at the end of 2018 were ¥957,886,287.66, a decrease of 12.34% from ¥1,092,699,738.66 at the end of 2017[16]. - The net assets attributable to shareholders decreased by 11.87% to ¥432,770,588.74 from ¥491,052,365.56 in 2017[16]. - The net cash flow from operating activities was ¥78,513,662.37, a decrease of 3.52% compared to ¥81,378,000.60 in the previous year[16]. - The weighted average return on equity was -7.37%, down from 0.21% in 2017[16]. - The company reported a quarterly revenue of ¥124,050,176.95 in Q4 2018, with a net profit of -¥36,273,051.63 for the same quarter[20]. - The company reported a non-operating income of 345,382.56 in 2018, a significant decrease from 2,965,498.68 in 2017, indicating a decline in non-recurring gains[21]. Business Segments - The ink manufacturing business faced challenges in 2018, with performance declining due to high raw material costs and increased competition, necessitating a focus on improving profitability[26]. - The internet advertising marketing segment maintained stable operations, with efforts to innovate and enhance the DSP digital advertising platform, aiming to become a leading player in the market[25]. - The internet advertising segment generated a revenue of ¥131,635,666.64, down 28.18% from ¥183,298,200.77 in the previous year[44]. - The company’s ink manufacturing business saw a slight increase in revenue from the chemical raw materials and chemical products manufacturing sector, which accounted for 71.70% of total revenue in 2018[44]. Research and Development - The company’s R&D efforts in 2018 focused on water-based and UV inks, aiming to optimize product performance and enhance its independent development capabilities[31]. - The total R&D expenditure for 2018 was ¥17.74 million, representing a 5.99% increase year-on-year and accounting for 3.64% of total revenue[57]. - The company’s technical research and development efforts focused on product quality improvement and compliance with stricter environmental regulations[38]. Marketing and Customer Relations - The company has established strong customer loyalty, serving major clients such as Coca-Cola and Pepsi, which enhances its market position and risk resilience[32]. - The company’s marketing strategies included optimizing customer structure and enhancing service quality, which helped reduce labor costs and improve cash flow[37]. - The company’s advertising business manages 200 million daily traffic from quality portals and covers 300 million online users, showcasing its extensive reach in the digital advertising space[30]. Financial Management and Investments - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company’s major asset restructuring plan involves acquiring 100% of Wuhan Zhongke Xinwei Information Technology Co., Ltd., with the transaction still in preparation stages as of the end of 2018[41]. - The company reported a significant increase in interest payable from CNY 10,528,870.25 to CNY 23,376,755.34, an increase of about 121.5%[195]. - The company’s financing cash inflow increased by 19.70% to ¥287 million, primarily due to increased bank loan repayments[60]. Environmental and Regulatory Compliance - The company is committed to developing environmentally friendly inks, aligning with industry trends towards sustainability and compliance with stricter environmental regulations[26]. - The company has implemented ISO9001 and ISO4001 management systems to ensure product quality and environmental compliance, enhancing operational efficiency[31]. - The company faces environmental policy risks due to stricter regulations on ink production, which may impact future performance[75]. - The company adheres to environmental protection regulations and does not belong to the key pollutant discharge units as identified by environmental protection authorities[120]. Shareholder and Governance - The controlling shareholder increased their stake to 26.00% of the total share capital, reflecting confidence in the company's future prospects[40]. - The company has maintained a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[95]. - The board of directors includes independent members, ensuring compliance and oversight in corporate governance[143][144]. - The company has established a transparent performance evaluation and incentive mechanism for its directors and senior management to enhance motivation and retain talent[159]. Employee Management - The company emphasizes a fair and just treatment of employees, maintaining a reasonable compensation and benefits system[116]. - The company focuses on enhancing employee capabilities and career development, aligning personal growth with corporate goals[116]. - The company has established a compensation system that balances internal fairness and external competitiveness[152]. - The company emphasizes employee training and development to enhance business capabilities and management levels, with a focus on internal training programs in 2018[153]. Internal Control and Audit - The audit opinion issued by DaHua Accounting Firm was a standard unqualified opinion, confirming the fair presentation of financial statements[179]. - The internal control evaluation report indicated that 100% of the total assets and operating income of the evaluated units were included in the consolidated financial statements[171]. - The company reported no significant internal control deficiencies during the reporting period[171]. - The internal control assessment was consistent with the board's self-evaluation report, indicating effective internal controls[175].

Revenue and Profit - Revenue for Q1 2019 was CNY 107,953,398.91, a decrease of 3.42% compared to CNY 111,776,861.43 in the same period last year[7] - Net profit attributable to shareholders was CNY -3,444,705.03, an improvement of 18.69% from CNY -4,236,526.10 year-on-year[7] - Operating profit increased by 31.68%, and net profit rose by 18.69%, mainly due to a reduction in provisions for bad debts[14] - The company reported a total comprehensive loss of CNY 3,444,705.03 for Q1 2019, compared to a loss of CNY 4,236,526.10 in the previous period[37] - Operating profit for Q1 2019 was a loss of CNY 2,434,203.33, an improvement from a loss of CNY 3,562,806.32 in the previous period[36] Cash Flow - Net cash flow from operating activities decreased by 79.57% to CNY 12,144,022.29 from CNY 59,446,393.38 in the previous year[7] - The net cash flow from operating activities decreased by 79.57%, primarily due to financial support received from major shareholders in the previous year[14] - Cash inflow from financing activities increased to ¥70,000,000.00, up 45.83% from ¥48,000,000.00 in the previous period[45] - The company reported a net increase in cash and cash equivalents of -¥9,390,797.13, compared to -¥37,698,416.24 in the previous period, indicating a reduced cash outflow[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 921,406,503.58, down 3.81% from CNY 957,886,287.66 at the end of the previous year[7] - Total current assets decreased from CNY 244,174,086.06 to CNY 213,877,927.57, a decline of approximately 12.38%[26] - Total liabilities decreased from CNY 525,115,698.92 to CNY 491,085,323.90, a decline of about 6.48%[27] - Current liabilities decreased from CNY 524,615,698.92 to CNY 490,710,323.90, a reduction of approximately 6.46%[27] - Non-current assets totaled CNY 707,528,576.01, slightly down from CNY 713,712,201.60, a decrease of about 0.26%[26] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,425[10] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of the shares, totaling 51,999,959 shares[10] - The company's equity attributable to shareholders decreased from CNY 432,770,588.74 to CNY 430,321,179.68, a slight decrease of about 0.34%[28] Research and Development - R&D expenses decreased by 59.26%, primarily due to reduced direct investment in R&D projects[14] - Research and development expenses for Q1 2019 were CNY 2,144,885.73, significantly reduced from CNY 5,264,413.88 in the previous period[34] Financial Expenses - Financial expenses increased by 31.97%, mainly due to a rise in interest rates on unpaid investment funds compared to the same period last year[14] - The company incurred financial expenses of CNY 6,645,594.88, an increase from CNY 5,035,536.59 in the previous period[34] Other Financial Metrics - Basic and diluted earnings per share improved by 19.05% to CNY -0.017 from CNY -0.021[7] - Total operating costs for Q1 2019 were CNY 110,540,824.96, down 5.1% from CNY 116,445,494.75 in the previous period[34] - Cash and cash equivalents decreased by 51.88%, primarily due to the repayment of bank loans during the reporting period[14] Corporate Actions - The company is in the process of a major asset restructuring, planning to acquire 100% equity of Wuhan Zhongke Xinwei Information Technology Co., Ltd.[15] - The company has committed to avoiding competition with its subsidiaries and ensuring fair treatment in related transactions[17] Audit Status - The first quarter report was not audited[55]