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]

Financial Performance - The company's operating revenue for 2018 was CNY 487,438,097.33, representing a decrease of 8.38% compared to CNY 532,046,547.77 in 2017[16]. - The net profit attributable to shareholders for 2018 was a loss of CNY 33,745,975.10, a decline of 416.92% from a profit of CNY 10,648,159.54 in 2017[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 34,091,357.66, down 543.74% from a profit of CNY 7,682,660.86 in 2017[16]. - The basic earnings per share for 2018 was -CNY 0.17, a decrease of 440.00% compared to CNY 0.05 in 2017[16]. - The total assets at the end of 2018 were CNY 957,886,287.66, a decrease of 12.34% from CNY 1,092,699,738.66 at the end of 2017[16]. - The net assets attributable to shareholders at the end of 2018 were CNY 432,770,588.74, down 11.87% from CNY 491,052,365.56 at the end of 2017[16]. - The net cash flow from operating activities for 2018 was CNY 78,513,662.37, a decrease of 3.52% from CNY 81,378,000.60 in 2017[16]. - The company reported a quarterly revenue of CNY 124,050,176.95 in Q4 2018, with a net loss of CNY 36,273,051.63 for the same quarter[20]. Business Challenges and Strategies - The company's ink manufacturing business faced challenges in 2018, with performance declining due to high raw material costs and increased competition[26]. - The company plans to enhance its profitability in the ink sector by optimizing resource allocation and investing in technology development[26]. - 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 indicated potential risks in future plans and market conditions, which may affect performance[4]. - The overall advertising market growth has slowed due to economic factors, but internet advertising remains a key growth area for the future[27]. - The company recognizes challenges in the ink industry, including raw material cost fluctuations and funding bottlenecks, which impact profit levels[71]. Research and Development - The company’s R&D efforts in 2018 focused on water-based and UV inks, aiming to improve product performance and enhance its competitive edge[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 internet advertising marketing segment maintained stable operations, focusing on innovative DSP technology and aiming to become a leading digital advertising platform in China[25]. - 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 has established strong partnerships with major clients, including Coca-Cola and Pepsi, which bolsters its market position and customer loyalty[32]. Financial Management and Investments - The company plans to acquire 100% equity of Wuhan Zhongke Xinwei Information Technology Co., Ltd., with the transaction still in preparation stages as of the end of 2018[41]. - 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 has secured credit facilities totaling CNY 28.14 million from various banks, backed by collateral from its subsidiaries[64]. - 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%[196]. Corporate Governance and Compliance - The company adheres to legal regulations and governance standards, ensuring compliance with the requirements of the China Securities Regulatory Commission[156]. - The board of directors consists of seven members, including three independent directors, and held six meetings during the reporting period to ensure effective governance[157]. - The company maintains complete independence from its controlling shareholder in business, personnel, assets, institutions, and finances, ensuring no conflicts of interest[160]. - The audit committee reviewed financial statements and internal audit plans, confirming compliance with accounting standards and reflecting the company's financial status accurately[166]. Employee Management and Development - The total number of employees in the company is 338, with 67 in the parent company and 271 in major subsidiaries[150]. - The company aims to establish a competitive compensation and benefits system to attract and retain talent[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]. Environmental and Social Responsibility - The company adheres to environmental protection as a key part of its sustainable development strategy, ensuring compliance with national regulations and promoting resource utilization[120]. - The company actively fulfills its social responsibilities, focusing on employee rights and welfare, and has established a reasonable compensation and benefits system[116]. - The company has not initiated any poverty alleviation programs during the reporting period and has no subsequent plans[119].

Financial Performance - Operating revenue for the reporting period was CNY 120,102,934.38, down 24.50% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 1,088,321.62, a decline of 123.30% compared to the same period last year[8] - Basic earnings per share were -CNY 0.0050, a decrease of 121.74% compared to the same period last year[8] - Operating profit decreased by 119.09%, total profit decreased by 124.37%, and net profit decreased by 78.83% due to rising ink raw material costs and a decline in sales and gross profit from internet marketing advertising[16] - The estimated net profit for 2018 is projected to be between -36 million to -24 million RMB, indicating a significant loss compared to a net profit of 10.6482 million RMB in 2017[23] - The decrease in performance is attributed to external market economic downturns, stricter financing environments, and rising raw material costs for inks, leading to reduced gross profit[23] - Sales revenue is expected to decline year-on-year due to cyclical macroeconomic fluctuations and the ongoing transformation of the company's internet marketing and advertising business[23] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,029,744,995.42, a decrease of 5.76% compared to the end of the previous year[8] - Prepaid accounts increased by 122.14% due to higher advance payments for procurement of materials[16] - Other current assets decreased by 81.56% primarily due to a reduction in VAT input credits from subsidiaries compared to the same period last year[16] - The company’s accounts payable to employees decreased by 80.15% due to the fulfillment of commitments related to excess rewards for the management team of a subsidiary[16] Cash Flow - The net cash flow from operating activities was CNY 34,016,657.75, an increase of 408.96% year-on-year[8] - Cash flow from operating activities increased by 32.91% due to improved cash collection from sales compared to the previous year[16] - The net cash flow from investment activities decreased by 265.23% due to increased investment payments compared to the previous year[16] - The company’s cash and cash equivalents net increase decreased by 48.14% primarily due to higher investment payments compared to the previous year[16] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,154[12] - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., held 26.00% of the shares, amounting to 51,999,959 shares[12] - No repurchase transactions were conducted by the top ten shareholders during the reporting period[13] - The company has committed to not reducing its shareholdings within 12 months following the completion of shareholding increase commitments[22] - The company is currently in the process of fulfilling its commitments made during the initial public offering and other financing activities[22] Corporate Actions and Compliance - The company plans to acquire 100% equity of Wuhan Zhongke Xinwei Information Technology Co., Ltd. through a combination of issuing shares and cash payments[17] - The company received an inquiry letter from the Shenzhen Stock Exchange regarding the major asset restructuring, and has coordinated responses with relevant parties[18] - The company is actively following up on the major asset restructuring and will disclose relevant announcements in a timely manner[18] - There were no instances of non-compliance with external guarantees during the reporting period[25] - The company reported no non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[26] - There were no entrusted financial management activities during the reporting period[27] - The company has not reported any research, communication, or interview activities during the reporting period[27]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥243,284,986, a decrease of 1.84% compared to ¥247,838,101.67 in the same period last year[16]. - The net profit attributable to shareholders was ¥3,615,398.15, down 50.23% from ¥7,263,704.98 year-on-year[16]. - The net profit after deducting non-recurring gains and losses was ¥3,344,479.27, a decrease of 14.57% compared to ¥3,914,719.58 in the previous year[16]. - The net cash flow from operating activities was ¥32,671,517.57, down 24.88% from ¥43,492,822.59 in the same period last year[16]. - The total assets at the end of the reporting period were ¥1,027,887,904.28, a decrease of 5.93% from ¥1,092,699,738.66 at the end of the previous year[16]. - The weighted average return on net assets was 0.73%, down from 1.50% in the previous year[16]. - The company reported a significant decline in cash and cash equivalents, down 297.77% due to increased investment payments[40]. - The company reported a significant increase in investment cash flow outflows, totaling -¥46,223,791.54, a 250.35% increase compared to the previous year[35]. - The company experienced a 106.05% decline in operating profit, primarily due to rising raw material costs and decreased sales in the internet business[40]. - The company expects a net profit for the first nine months of 2018 to range between CNY 2 million and CNY 4 million, a decrease of 83.24% to 66.48% compared to the previous year[53]. Revenue Breakdown - Revenue from the chemical raw materials and chemical manufacturing industry increased by 6.99% to ¥180,017,170.21, accounting for 73.99% of total revenue[37]. - Internet marketing advertising revenue decreased by 22.21% to ¥59,892,791.82, representing 24.62% of total revenue[37]. - The internet advertising marketing business saw a revenue decrease of 22.21% compared to the previous year, attributed to intensified competition and evolving marketing models[32]. Cost Management - The company implemented measures to control operating costs and improve cash flow, resulting in a 24.88% decrease in cash flow from operating activities to ¥32,671,517[35]. - The increase in raw material prices has led to reduced gross margins and lower sales in the internet business, impacting overall profitability[53]. - The company is enhancing its marketing strategies to attract new customers and improve service quality amid rising raw material prices[31]. Strategic Initiatives - The company plans to continue developing its internet advertising business, focusing on data analysis and programmatic advertising to enhance marketing effectiveness[24]. - The company is committed to improving the production process of inks and accelerating the research and development of environmentally friendly inks[24]. - The company continues to support innovation in ink products, focusing on performance optimization and customer collaboration[32]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2020[173]. - New product development initiatives are expected to contribute an additional 200 million RMB in revenue by the end of 2019[174]. Shareholder Information - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[5]. - The total number of ordinary shareholders at the end of the reporting period is 16,418[95]. - The largest shareholder, Shenzhen Dashing Asset Management Co., Ltd., holds 26.00% of the shares, totaling 51,999,959 shares[95]. - The second largest shareholder, Huang Zhongzhu, holds 3.04% with 6,088,521 shares[95]. Compliance and Governance - The half-year financial report has not been audited[63]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[65]. - There were no significant related party transactions during the reporting period[68]. - The company has fulfilled all commitments made by its actual controller and shareholders during the reporting period[61]. Asset Management - The company maintained a stable management of fixed assets, intangible assets, and construction in progress, with no significant changes reported[26]. - The company reported a decrease in the general risk reserve of CNY 3,240,000.00 for the current period[142]. - The total amount of capital reserves increased by CNY 253,425.15 during the current period[139]. Financial Reporting - The financial statements were approved by the board of directors on August 27, 2018[153]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial position accurately[159]. - The company’s accounting period runs from January 1 to December 31 each year[160]. Market Conditions - The company faces risks from market competition in the ink industry, which is increasing pressure on profit margins[54]. - Environmental policy adjustments may raise production costs due to stricter compliance requirements, affecting overall profitability[55]. - The internet advertising marketing sector is experiencing heightened competition, necessitating ongoing technology development to maintain market position[54].

Financial Performance - The company's operating revenue for 2017 was CNY 532,046,547.77, representing a 2.27% increase compared to CNY 520,244,454.55 in 2016[17] - The net profit attributable to shareholders for 2017 reached CNY 10,648,159.54, a significant increase of 1,107.66% from CNY 881,718.57 in 2016[17] - Basic earnings per share for 2017 were CNY 0.05, reflecting a 1,150.00% increase from CNY 0.0040 in 2016[17] - The company reported a decrease in net profit after deducting non-recurring gains and losses, which was CNY 7,682,660.86, down by 3.25% from CNY 7,940,394.22 in 2016[17] - The company's operating profit for 2017 was CNY 732,331.44, a significant decrease of 94.51% compared to 2016[34] - The company achieved a sales revenue of CNY 532,046,547.77 and a net profit attributable to shareholders of CNY 10,648,159.54[75] Cash Flow and Investments - The net cash flow from operating activities was CNY 81,378,000.60, down by 9.18% from CNY 89,598,695.07 in the previous year[17] - The total cash inflow from financing activities was approximately ¥239.78 million, with a slight decrease of 0.92% compared to the previous year[53] - The total cash inflow from investment activities was 5,305,600.00 CNY, down from 17,972,007.06 CNY, reflecting a significant decline of 70.5%[193] - The net cash flow from financing activities was -46,720,654.55 CNY, an improvement from -90,848,066.20 CNY in the previous year, indicating a reduction in cash outflow by 48.5%[194] - The total cash and cash equivalents at the end of the period increased to 52,107,887.03 CNY, compared to 31,478,535.65 CNY at the beginning of the period, marking a net increase of 65.5%[194] Assets and Liabilities - Total assets at the end of 2017 amounted to CNY 1,092,699,738.66, a decrease of 2.93% from CNY 1,125,677,981.64 at the end of 2016[17] - The total amount of accounts receivable at the end of 2017 was ¥164.50 million, representing 15.05% of total assets, a slight decrease from 15.47% in 2016[56] - The total liabilities decreased to CNY 449,497,142.73 from CNY 465,805,184.72, representing a reduction of about 3.49%[182] - Owner's equity totaled CNY 558,462,563.22, down from CNY 579,792,957.84, indicating a decrease of approximately 3.69%[182] Revenue Segmentation - The internet advertising marketing segment achieved revenue of ¥183,298,200.77, a growth of 17.06% from ¥156,588,218.31 in the previous year, contributing 34.45% to total revenue[40] - The chemical raw materials and chemical products manufacturing segment generated revenue of ¥345,379,653.23, which is a decrease of 4.57% from ¥361,933,582.84 in 2016, accounting for 64.92% of total revenue[40] - The company's major product, gravure ink, generated revenue of ¥336,634,606.81, reflecting a decrease of 2.33% from ¥344,672,690.91 in 2016[40] Operational Challenges and Strategies - The company faced challenges in its ink business due to a downturn in the domestic ink printing industry, rising raw material prices, and intense market competition[27] - The internet advertising marketing business performed well, compensating for the decline in ink business revenue and profits, thus improving overall operational performance[27] - The company plans to enhance marketing efforts and improve service capabilities to expand sales and develop new customers[64] - The company aims to maintain product competitiveness by focusing on new product research and development, optimizing product performance, and improving quality[64] Corporate Governance and Compliance - The company has maintained a completely independent operational system, with no reliance on the controlling shareholder for business activities[148] - The company has established an independent financial department and accounting system, ensuring no funds are misappropriated by the controlling shareholder[149] - The company emphasizes transparency in information disclosure, adhering to regulations and enhancing communication with investors[146] - The company actively engages with stakeholders, focusing on environmental protection and social responsibility[146] Research and Development - The company is recognized as a national high-tech enterprise, emphasizing R&D and innovation in its product offerings[31] - The company's total R&D expenditure for 2017 was ¥16.74 million, a decrease of 3.30% compared to 2016, representing 3.15% of the total revenue[51] - The company is actively involved in research and development to introduce new products in the chemical industry[132] Employee and Management Structure - The company employed a total of 441 staff, with 110 in the parent company and 331 in major subsidiaries[138] - The professional composition of employees includes 117 production personnel, 29 sales personnel, 65 technical personnel, and 68 management personnel[138] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 2.6559 million[137] Future Outlook - Future outlook indicates a commitment to innovation and technology development to meet market demands[132] - The company plans to explore potential mergers and acquisitions to strengthen its market position[132] - The financial strategy includes maintaining stable revenue while exploring new growth opportunities[132]