Financial Performance - The company's operating revenue for the first half of 2022 was CNY 197,692,653.92, representing a 7.97% increase compared to CNY 183,108,062.89 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 11,137,155.09, a decrease of 27.04% from a loss of CNY 8,766,314.71 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 11,595,150.11, which is a 14.32% increase in loss compared to CNY 10,143,014.65 in the same period last year[21]. - The basic earnings per share were CNY -0.056, a decrease of 27.27% compared to CNY -0.044 in the same period last year[21]. - The diluted earnings per share were also CNY -0.056, reflecting the same percentage decrease of 27.27%[21]. - The total comprehensive income for the first half of 2022 was a loss of CNY 11,137,155.09, compared to a loss of CNY 8,766,314.71 in the same period of 2021[150]. - The company reported a net loss of CNY 232.72 million for the first half of 2022, compared to a loss of CNY 221.58 million in the same period of 2021[142]. Cash Flow and Assets - The net cash flow from operating activities was CNY 4,120,748.89, showing a slight increase of 2.80% from CNY 4,008,506.07 in the previous year[21]. - The total assets at the end of the reporting period were CNY 663,269,677.89, reflecting a 1.12% increase from CNY 655,893,509.49 at the end of the previous year[21]. - The company's cash and cash equivalents decreased from 12,597,866.35 yuan at the beginning of the year to 7,682,835.76 yuan by June 30, 2022, a decline of approximately 38.5%[140]. - The total current assets increased from 282,225,578.88 yuan to 302,470,107.62 yuan, reflecting a growth of about 7.1%[140]. - The company's cash inflow from operating activities for the parent company in the first half of 2022 was CNY 16,888,530.62, slightly up from CNY 16,132,941.37 in the first half of 2021[158]. Operational Efficiency and Costs - The cost of goods sold increased by 8.37% to ¥161,679,976.85 from ¥149,186,430.19, resulting in a gross margin decrease[37]. - Research and development expenses rose significantly by 41.80% to ¥7,127,347.18, driven by increased investment in new product development[37]. - The company has implemented a production model based on "sales-driven production" and "fixed reserve," allowing for personalized and differentiated products[30]. - Rising operational costs due to high raw material prices are compressing profit margins, prompting the company to enhance cost control measures[54]. Market and Strategic Initiatives - The company is responding to the "dual control of energy consumption" policy by investing in production process control and end-of-pipe treatment equipment upgrades[32]. - The company plans to adjust its development strategy in response to market changes and enhance its internet advertising business layout[55]. - The company is committed to developing an environmentally friendly economy, focusing on energy conservation and emission reduction, and has invested in research for eco-friendly water-based inks and UV inks[71]. - The company has established a stable procurement network with long-term relationships with major suppliers, ensuring sufficient raw material supply[30]. Environmental and Compliance - The company has received ISO-45001 certification and successfully passed audits for ISO9001 and ISO14001, enhancing its manufacturing capabilities[33]. - The company has established a hazardous waste management system, including agreements with qualified third parties for proper disposal[65]. - The company emphasizes employee rights and has established a comprehensive human resources management system to support staff development and welfare[70]. - No administrative penalties were reported during the reporting period due to environmental issues[69]. Shareholder and Governance - The company plans not to distribute cash dividends or bonus shares, nor to increase capital from reserves[4]. - The company emphasizes the protection of shareholder rights by ensuring accurate and complete information disclosure, enhancing communication with investors through platforms like Interactive Easy, and organizing annual performance briefings[71]. - The company has not engaged in any employee stock ownership plans or incentive measures during the reporting period, indicating a focus on operational stability[60]. Asset Restructuring and Acquisitions - The company is in the process of a major asset restructuring, aiming to acquire 100% equity of Zhejiang Qichen Technology Co., Ltd. and 45% equity of Hunan Hexinli Technology Engineering Co., Ltd.[89]. - The restructuring plan was approved by the board on October 23, 2020, and has undergone multiple reviews and approvals since then[90][91][92]. - The company has received feedback from the China Securities Regulatory Commission regarding its restructuring application, which it is addressing[92]. - The company plans to issue shares and pay cash to finance the acquisition, pending regulatory approval[115]. Financial Reporting and Compliance - The semi-annual financial report has not been audited, indicating that the financial results are still subject to review[79]. - The financial statements were approved by the board of directors on August 26, 2022[180]. - The company ensures that all financial reporting complies with the relevant accounting standards and regulations[197].

Financial Performance - Revenue for Q1 2022 was CNY 100,811,353.50, an increase of 12.55% compared to CNY 89,570,470.12 in the same period last year[3] - Total operating revenue for Q1 2022 was CNY 100,811,353.50, an increase of 12.8% compared to CNY 89,570,470.12 in the same period last year[23] - Net profit attributable to shareholders was a loss of CNY 4,581,416.41, a decrease of 39.95% from a loss of CNY 3,273,608.71 year-on-year[3] - Net loss for Q1 2022 was CNY 4,581,416.41, compared to a net loss of CNY 3,273,608.71 in Q1 2021, reflecting a deterioration in profitability[24] - The total comprehensive income attributable to the parent company was -4,581,416.41 CNY, compared to -3,273,608.71 CNY in the previous period, indicating a decline[25] - Basic and diluted earnings per share were both -0.023 CNY, down from -0.016 CNY in the previous period[25] Cash Flow and Liquidity - Operating cash flow increased by 176.15%, reaching CNY 2,264,395.89, compared to a negative cash flow of CNY 2,973,774.96 in the previous year[3] - Net cash flow from operating activities was 2,264,395.89 CNY, a significant improvement from -2,973,774.96 CNY in the previous period[28] - Total cash inflow from operating activities was 61,146,435.09 CNY, down 28.2% from 85,130,911.28 CNY in the previous period[28] - Cash outflow from operating activities totaled 58,882,039.20 CNY, a decrease of 33.2% compared to 88,104,686.24 CNY in the previous period[28] - Cash flow from investing activities was -952,236.11 CNY, compared to -1,826,788.69 CNY in the previous period, showing a reduced outflow[29] - Cash flow from financing activities resulted in a net outflow of -2,821,153.41 CNY, compared to -14,355,033.35 CNY in the previous period, indicating improved cash management[29] - The ending balance of cash and cash equivalents was 11,088,872.72 CNY, an increase from 8,267,415.13 CNY in the previous period[29] - The company received 122,000,000.00 CNY in cash from borrowings during the period[29] Assets and Liabilities - Total assets at the end of the reporting period were CNY 687,933,772.35, up 4.88% from CNY 655,893,509.49 at the end of the previous year[3] - Total assets as of the end of Q1 2022 were CNY 687,933,772.35, up from CNY 655,893,509.49 at the beginning of the year, representing a growth of 4.9%[21] - Total liabilities increased to CNY 585,553,036.88 from CNY 549,790,000.45, an increase of 6.5%[20] - The company's total equity attributable to shareholders decreased to CNY 102,380,735.47 from CNY 106,103,509.04, a decline of 3.4%[21] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 9,474[9] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., holds 26.00% of the shares, totaling 51,999,959 shares[9] Business Operations and Strategy - The company reported a 27.75% increase in notes receivable, attributed to more customers using acceptance bills for settlement[7] - The company experienced a 39.95% decline in net profit due to increased ink material costs and a decrease in internet advertising revenue[7] - Research and development expenses for Q1 2022 were CNY 3,265,807.40, up from CNY 2,695,549.88 in Q1 2021, indicating a 21.2% increase[23] - The company plans to acquire 100% equity of Zhejiang Qichen Technology Co., Ltd. and 45% equity of Hunan Nuclear Sanli Technology Engineering Co., Ltd. through a combination of issuing shares and cash payment[10] - The company has received feedback from the China Securities Regulatory Commission (CSRC) regarding its asset purchase application, which was not approved on December 31, 2021[13] - The company is continuing to push forward with the asset acquisition plan despite the CSRC's disapproval, coordinating with relevant parties to complete necessary audits and documentation[14] - The company acquired 75% equity of Beijing Xuanxiang Siyue Media Advertising Co., Ltd. for RMB 273 million in 2015, later increasing its stake to 100%[15] - The company agreed to extend the payment deadline for outstanding equity acquisition payments and interest to June 30, 2022, with a reduced interest rate of 3.85%[17] Inventory and Receivables - Accounts receivable increased to CNY 158,220,407.01 from CNY 136,652,850.15 at the beginning of the year, indicating a rise of 15.7%[20] - Inventory decreased to CNY 51,826,268.13 from CNY 57,037,360.97, a decline of 9.1%[20] Audit and Reporting - As of March 31, 2022, the company is preparing its consolidated balance sheet for the first quarter[18] - The company did not conduct an audit for the first quarter report[30]

Financial Performance - The company's operating revenue for 2021 was ¥387,741,377.38, representing a 23.26% increase compared to ¥314,563,718.67 in 2020[20]. - The net profit attributable to shareholders for 2021 was -¥37,146,987.85, a decrease of 608.18% from ¥7,309,799.46 in 2020[20]. - The net cash flow from operating activities decreased by 42.00% to ¥16,005,627.67 in 2021 from ¥27,597,848.76 in 2020[20]. - The basic earnings per share for 2021 was -¥0.19, a decline of 575.00% from ¥0.04 in 2020[20]. - Total assets at the end of 2021 were ¥655,893,509.49, an increase of 4.69% from ¥626,524,542.55 at the end of 2020[20]. - The net assets attributable to shareholders decreased by 25.31% to ¥106,103,509.04 at the end of 2021 from ¥142,051,055.37 at the end of 2020[20]. - The company reported a weighted average return on equity of -29.94% in 2021, down from 5.18% in 2020[20]. - The net profit after deducting non-recurring gains and losses was -¥39,446,530.49 in 2021, a 29.13% increase in loss compared to -¥30,548,203.88 in 2020[20]. Revenue Breakdown - The ink manufacturing business generated revenue of ¥375,959,207.04, accounting for 96.96% of total revenue, with a year-on-year growth of 28.64%[48]. - The internet advertising marketing business reported revenue of ¥7,091,300.37, a significant decline of 58.73% year-on-year, with a net loss of -¥2,297,764.34, down 240.83%[46]. - The company's total revenue for the first quarter was ¥89,570,470.12, while the fourth quarter revenue was ¥96,615,026.76, showing a quarterly fluctuation[25]. Cost and Expenses - In 2021, the cost of raw materials amounted to ¥289,507,495.98, representing 89.95% of operating costs, an increase of 43.30% compared to ¥202,073,775.96 (84.86%) in 2020[55]. - The company's main business cost for internet marketing and advertising decreased by 56.40% to ¥4,925,599.38 in 2021 from ¥11,287,295.27 in 2020[56]. - The management expenses increased by 19.41% to ¥60,369,572.91 in 2021 from ¥50,554,656.80 in 2020[61]. Research and Development - Research and development expenses for 2021 were ¥9,874,844.05, a slight decrease of 1.05% from ¥9,979,238.68 in 2020[61]. - The proportion of R&D investment to operating revenue decreased from 3.17% in 2020 to 2.55% in 2021, a decline of 0.62%[65]. - The number of R&D personnel increased by 18.75% from 32 in 2020 to 38 in 2021[65]. - The R&D team focuses on developing new products such as PVC and composite water-based inks, with successful advancements in smoke packaging and UV products[41]. Market Challenges - The ink manufacturing sector faces challenges due to rising raw material costs and supply chain issues, impacting overall profitability[31]. - The internet advertising market is experiencing a slowdown in growth, influenced by reduced advertising budgets from various industries due to the pandemic[32]. - The overall industry outlook remains cautious, with the need for strategic adjustments to navigate economic uncertainties and industry challenges[31]. Environmental Compliance - The company reported a significant environmental compliance issue, with unaddressed losses reaching one-third of the total paid-in capital for the year 2019, which was rectified in February 2021[127]. - The company invested in upgrading its VOCs treatment facilities, adding a new zeolite rotary concentrator and catalytic combustion system with a design capacity of 100,000 m³/h to enhance emission control[131]. - The company established a real-time monitoring system for both air and water emissions to ensure compliance with environmental standards[132]. Corporate Governance - The governance structure of the company complies with relevant laws and regulations, ensuring the protection of shareholder rights and interests[89]. - The company actively engages with stakeholders, focusing on environmental protection and social responsibility while maintaining steady growth[88]. - The company has established a transparent and effective performance evaluation and incentive mechanism for its management team to attract and retain talent[88]. Shareholder Information - The total number of shareholders at the end of the reporting period was 10,581, an increase from 9,943 at the end of the previous month, representing a growth of approximately 6.4%[197]. - The largest shareholder, Shenzhen Dasing Asset Management Co., Ltd., holds 51,999,959 shares, accounting for 26.00% of total shares, with no changes reported during the period[198]. - The company has not proposed any cash dividend distribution or stock bonus for the reporting period, despite having positive distributable profits[120]. Future Outlook - The company plans to focus on developing and promoting new environmentally friendly ink products in 2022, aligning with national policies supporting sustainable development[79]. - The company aims to enhance its internet advertising marketing business by adjusting its market development strategy and expanding its customer base[80]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth of 25%[104].

Revenue and Profitability - Revenue for Q3 2021 was CNY 108,018,287.73, an increase of 6.66% year-over-year[3] - Net profit attributable to shareholders was a loss of CNY 3,768,418.65, a decrease of 436.83% compared to the same period last year[3] - The total operating revenue for Q3 2021 was CNY 291,126,350.62, an increase of 8.3% compared to CNY 269,142,906.31 in the same period last year[23] - The net profit for Q3 2021 was a loss of CNY 12,534,733.36, compared to a profit of CNY 263,380.40 in the previous year, indicating a significant decline in profitability[25] - The total comprehensive income for the third quarter was -12,534,733.36 CNY, compared to 263,380.40 CNY in the previous period[26] - Basic and diluted earnings per share were both -0.063 CNY, a decrease from 0.001 CNY in the previous period[26] Cash Flow and Liquidity - Net cash flow from operating activities decreased by 59.04%, totaling CNY 10,603,465.10 year-to-date[3][7] - Cash inflow from operating activities totaled 252,569,282.94 CNY, an increase from 223,854,946.53 CNY year-over-year[29] - Cash outflow from operating activities was 241,965,817.84 CNY, compared to 197,970,733.20 CNY in the previous period[29] - The ending cash and cash equivalents balance was 14,931,785.16 CNY, down from 15,618,148.27 CNY in the previous period[30] - The company experienced a 45.55% decrease in cash and cash equivalents, primarily due to increased cash outflows from operating activities[6][7] - Cash inflow from financing activities was 195,000,000.00 CNY, a decrease from 227,000,000.00 CNY year-over-year[30] - Cash outflow from financing activities totaled 214,102,133.52 CNY, compared to 242,335,323.28 CNY in the previous period[30] - The net cash flow from financing activities was -19,102,133.52 CNY, compared to -15,335,323.28 CNY in the previous period[30] Assets and Liabilities - Total assets at the end of the reporting period were CNY 619,456,545.64, a decrease of 1.13% from the end of the previous year[3] - The total assets decreased to CNY 619,456,545.64 from CNY 626,524,542.55, a decline of 1.1%[22] - The total liabilities remained relatively stable at CNY 487,995,584.45, compared to CNY 484,473,487.18, showing a slight increase of 1.1%[21] - The company's accounts receivable increased to CNY 162,190,238.26 from CNY 109,716,906.90, representing a growth of 47.5%[20] - Inventory levels rose to CNY 55,086,772.01, compared to CNY 48,201,719.72, marking an increase of 14.5%[20] Operational Performance - The gross profit margin declined due to increased costs of ink materials and a decrease in revenue from internet advertising projects[6] - The total operating costs amounted to CNY 300,239,542.12, up from CNY 268,534,810.69, reflecting a year-over-year increase of 11.8%[23] - Research and development expenses for the quarter were CNY 7,691,328.62, slightly down from CNY 7,992,261.97, indicating a focus on cost management[23] - The company reported a financial expense of CNY 12,291,543.37, down from CNY 14,554,309.91, reflecting improved cost control in financing[23] Strategic Initiatives - The company plans to acquire 100% equity of Zhejiang Qichen Technology Co., Ltd. and 45% equity of Hunan Nuclear Sanli Technology Engineering Co., Ltd. through a combination of issuing shares and cash payments[11] - The company has received feedback from the China Securities Regulatory Commission regarding its asset restructuring plan, with ongoing discussions to address the feedback[13] - The company is actively working with intermediaries to respond to regulatory feedback on its major asset restructuring, with the approval timeline remaining uncertain[13] - The company’s major asset restructuring proposal was approved in multiple board meetings throughout 2021, indicating a strategic focus on growth through acquisitions[12] - The company’s strategic initiatives include market expansion through acquisitions and restructuring to enhance operational capabilities[11] Related Party Transactions - The company has engaged in significant related party transactions, including debt transfer agreements to clarify financial obligations[16] Other Information - The company has no significant new product developments or market expansion strategies reported in this quarter[3][6] - The third quarter report was not audited[31]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥183,108,062.89, representing a 9.08% increase compared to ¥167,867,511.35 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥8,766,314.71, a significant decrease of 1,008.09% from ¥965,353.82 in the previous year[20]. - The net cash flow from operating activities was ¥4,008,506.07, down 80.02% from ¥20,067,556.99 in the same period last year[20]. - The total assets at the end of the reporting period were ¥649,853,278.63, an increase of 3.72% from ¥626,524,542.55 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased by 5.04% to ¥134,886,328.58 from ¥142,051,055.37 at the end of the previous year[20]. - The basic earnings per share were -¥0.044, a decline of 980.00% compared to ¥0.005 in the same period last year[20]. - The company reported a net profit decline of 1008.09%, primarily due to increased ink material costs and underperformance in internet advertising projects[37]. - The company reported a net loss of CNY 193,202,930.19, compared to a loss of CNY 184,436,615.48 in the previous period[123]. Revenue Segmentation - The ink manufacturing segment accounted for ¥177,185,394.49, or 96.77% of total revenue, with a year-on-year growth of 10.51%[35]. - The internet advertising marketing segment generated revenue of ¥3,713,788.30, down 27.72% year-on-year[30]. - The company's revenue for the chemical raw materials and chemical manufacturing industry was approximately CNY 177.19 million, representing a year-on-year increase of 10.51%[36]. Cash Flow and Liquidity - The company experienced a significant decline in cash and cash equivalents, with a net decrease of ¥14,925,985.58, a drop of 309.70% year-on-year[33]. - The company's cash and cash equivalents decreased by 54.43%, primarily due to reduced operating cash flow and significant repayment of bank loans during the reporting period[37]. - The ending balance of cash and cash equivalents was 12,497,026.55 CNY, down from 16,504,775.36 CNY at the end of the previous period[140]. - The net cash flow from operating activities dropped by 80.02%, reflecting increased cash outflows compared to the same period last year[37]. Operational Challenges - The gross margin for the ink business declined by approximately 6.51% due to significant increases in raw material prices[29]. - The company is facing increased competition in the ink industry due to heightened safety and environmental regulations, which may impact its market position[50]. - The company is implementing measures to manage the risks associated with rising raw material prices, including titanium dioxide and pigments, which are affecting production costs[50]. - The company anticipates that the ongoing COVID-19 pandemic and market conditions may lead to a decline in its internet advertising business profitability in the coming year[51]. Research and Development - Research and development expenses increased by 11.37% to ¥5,026,161.11, reflecting the company's commitment to developing environmentally friendly inks[33]. - The company is focusing on the development of water-based and UV inks to align with market trends towards environmentally friendly products[30]. - The company plans to continue its focus on research and development to enhance product offerings and market expansion strategies[155]. Environmental and Safety Measures - Zhuhai Letong New Materials Technology Co., Ltd. was listed as a key pollutant discharge unit in Zhuhai City for 2021, increasing investment in environmental protection facilities to reduce emissions[59]. - The company added a new zeolite rotary concentrator and catalytic combustion facility for VOCs treatment with a design capacity of 100,000 m³/h, replacing the original six sets of activated carbon adsorption systems[60]. - The company has established a hazardous waste management system and signed disposal agreements with qualified third parties, ensuring compliance with hazardous waste regulations[60]. - The company is committed to enhancing safety management practices to mitigate risks associated with the use of flammable materials in its manufacturing processes[51]. Shareholder and Corporate Governance - The company actively communicates with shareholders and investors through annual performance briefings and online platforms to ensure transparency and protect shareholder rights[65]. - The total number of common shareholders at the end of the reporting period is 10,338[106]. - Shenzhen Dashing Asset Management Co., Ltd. holds 26.00% of the shares, totaling 51,999,959 common shares[107]. - The company has not engaged in any significant asset or equity sales during the reporting period[45]. Future Plans and Strategic Initiatives - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[149]. - The company is exploring potential mergers and acquisitions to strengthen its market presence and diversify its product offerings[149]. - The company has outlined potential risks and countermeasures in the report, emphasizing the importance of risk awareness for investors[5]. Financial Reporting and Compliance - The semi-annual financial report has not been audited[71]. - The financial statements prepared by the company comply with the requirements of the enterprise accounting standards, reflecting the financial position, operating results, and cash flows accurately[171]. - The company has evaluated its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its sustainability[169].

Financial Performance - The company's revenue for Q1 2021 was ¥89,570,470.12, representing a 37.96% increase compared to ¥64,925,685.87 in the same period last year[9] - The net profit attributable to shareholders was -¥3,273,608.71, an improvement of 49.26% from -¥6,452,290.39 year-on-year[9] - The basic earnings per share improved to -¥0.016, a 50.00% increase from -¥0.032 in the same period last year[9] - Operating revenue increased by 37.96%, attributed to a significant impact from the pandemic in the same period last year[17] - Operating profit rose by 46.16%, and net profit attributable to shareholders increased by 49.26%, mainly due to effective pandemic control in 2021[17] - Total operating revenue for Q1 2021 was CNY 89,570,470.12, an increase of 37.9% compared to CNY 64,925,685.87 in the same period last year[43] - Net loss for Q1 2021 was CNY 3,273,608.71, a reduction in loss of 49.2% compared to CNY 6,452,290.39 in Q1 2020[45] - Operating profit for Q1 2021 was a loss of CNY 3,536,458.64, improving from a loss of CNY 6,568,620.77 in the previous year[45] Cash Flow - The net cash flow from operating activities was -¥2,973,774.96, a significant decline of 179.69% compared to ¥3,731,621.17 in the previous year[9] - Cash inflow from operating activities totaled 85,130,911.28 CNY, a significant increase of 49.8% compared to 56,840,539.24 CNY in the prior period[53] - Cash outflow from operating activities was 88,104,686.24 CNY, up from 53,108,918.07 CNY, resulting in a net cash flow from operating activities of -2,973,774.96 CNY, compared to 3,731,621.17 CNY previously[53] - The company reported a 293.76% decrease in net cash flow from financing activities, primarily due to significant loan repayments[17] - Cash flow from investing activities resulted in a net outflow of -1,826,788.69 CNY, worsening from -569,761.45 CNY in the previous period[54] - Cash flow from financing activities showed a net outflow of -14,355,033.35 CNY, compared to -3,645,668.63 CNY in the prior period[54] - The ending balance of cash and cash equivalents was 8,267,415.13 CNY, down from 8,903,178.05 CNY[54] - Cash and cash equivalents decreased by 69.85%, primarily due to a reduction in net cash flow from operating activities[17] Assets and Liabilities - Total assets at the end of the reporting period were ¥584,151,348.95, down 6.76% from ¥626,524,542.55 at the end of the previous year[9] - Current assets totaled CNY 196,439,837.38, down 16.09% from CNY 234,083,266.75 at the end of 2020[35] - Total liabilities as of the end of Q1 2021 were CNY 285,710,613.21, slightly up from CNY 285,516,462.18 at the end of the previous quarter[41] - Current liabilities decreased to CNY 444,519,310.66, down 8.25% from CNY 484,473,487.18[37] - The total equity attributable to shareholders was CNY 139,632,038.29, a decrease of 1.94% from CNY 142,051,055.37[38] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 11,065[13] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., holds 26.00% of the shares, totaling 51,999,959 shares[13] Research and Development - Research and development expenses grew by 34.28%, reflecting increased investment in new product development to meet market demands[17] - Research and development expenses for Q1 2021 were CNY 2,695,549.88, an increase of 34.3% from CNY 2,007,477.57 in Q1 2020[44] Other Financial Metrics - The company reported non-operating income and expenses totaling ¥423,868.51 for the period[10] - Other income increased by 148.19%, mainly due to a rise in government subsidies received during the reporting period[17] - The company reported a credit impairment loss of CNY -1,072,524.64 in Q1 2021, compared to a gain of CNY 458,703.75 in Q1 2020[44] - The total comprehensive income for the first quarter was -8,070,072.99 CNY, showing a slight decrease from -8,066,512.04 CNY in the previous period[50] - Basic and diluted earnings per share both stood at -0.0040 CNY, consistent with the previous period[50] Corporate Actions - The company plans to actively promote a major asset restructuring project involving the acquisition of 100% equity in Zhejiang Qichen Technology Co., Ltd.[20] - The company has completed the deregistration of its wholly-owned subsidiary, Zhengzhou Letong New Materials Co., Ltd., due to various operational challenges[19]

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].