中顺洁杀 || //(0) 2022 度 报 告 第 三 季 !! 中顺洁柔纸业股份有限公司 2022 年第三季度报告 证券代码：002511 证券简称：中顺洁柔 公告编号：2022-52 中顺洁柔纸业股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重 大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、 误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息 的真实、准确、完整。 3.第三季度报告是否经过审计 □是 否 2 中顺洁柔纸业股份有限公司 2022 年第三季度报告 一、主要财务数据 （一） 主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | --- | --- | |------------------------------------------------------|-------|------ ...

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 4,367,618,113.61, representing a year-on-year increase of 2.82% compared to CNY 4,247,641,836.38 in the same period last year[30]. - The net profit attributable to shareholders of the listed company decreased by 44.09% to CNY 227,639,705.35 from CNY 407,161,317.15 in the previous year[30]. - The net profit after deducting non-recurring gains and losses was CNY 220,565,031.66, down 44.72% from CNY 398,988,234.69 in the same period last year[30]. - The basic earnings per share fell by 45.16% to CNY 0.17 from CNY 0.31 in the previous year[30]. - The total assets at the end of the reporting period were CNY 7,853,365,188.84, an increase of 4.39% from CNY 7,523,281,973.84 at the end of the previous year[30]. - The net assets attributable to shareholders of the listed company increased by 2.71% to CNY 5,036,519,666.94 from CNY 4,903,552,661.58 at the end of the previous year[30]. - The net cash flow from operating activities was CNY 699,549,725.75, a decrease of 5.19% compared to CNY 737,865,788.19 in the same period last year[30]. - The weighted average return on net assets was 4.53%, down from 7.98% in the previous year, a decrease of 3.45%[30]. Dividend and Shareholder Returns - The company plans not to distribute cash dividends or issue bonus shares[8]. - The company has committed to cash dividends under conditions that meet the requirements, considering industry characteristics and operational factors[141]. Market Position and Strategy - The company aims to enhance its market position by focusing on health-oriented products and expanding its online sales channels for personal care items[41]. - The company has positioned itself as a leading brand in the high-end living paper market, recognized for its strong brand and product quality[48]. - The company has established a comprehensive marketing network covering most cities in China, utilizing multiple sales channels including e-commerce and new retail[58]. - The company is actively establishing a digital transformation foundation to optimize internal processes and enhance management efficiency[52]. - The company is expanding its product structure to increase the sales share of high-end, high-margin products, responding to rising consumer demand for premium products[54]. Product Development and Innovation - The company continues to innovate in product development, introducing new items such as travel-friendly hygiene products and high-quality facial tissues[45]. - The company has established a diversified product portfolio, including brands such as Jierou, Taiyang, and Duoleimi, covering various personal care and household paper products[39]. - The company has implemented a strategy to provide customized cleaning solutions for various commercial spaces, including offices and hotels[46]. Environmental Sustainability - The company has maintained a commitment to environmental sustainability by using biodegradable materials in its products[45]. - The company is committed to environmental protection and has adopted advanced technologies to meet national standards for emissions[66]. - The company has implemented comprehensive environmental protection measures, ensuring compliance with national and local regulations[127]. - Wastewater treatment facilities utilize anaerobic and aerobic processes, achieving compliance with discharge standards[127]. - The company has established a water reuse system to minimize wastewater discharge, enhancing sustainability efforts[127]. - The company has successfully renewed and modified its pollutant discharge permits as required by national regulations[128]. - The company implemented a total of 19 clean production plans to reduce carbon emissions, achieving significant results in pollution reduction and resource utilization efficiency[135]. Risks and Challenges - The living paper industry in China is experiencing pressure due to rising raw material costs and intense market competition, although growth rates remain above the global average[47]. - The company faces a risk of significant fluctuations in pulp prices, which account for 40%-60% of production costs, due to global economic cycles and supply-demand mismatches[94]. - The company is exposed to foreign exchange risks due to imports and exports denominated in USD, HKD, and EUR, and employs strategies to hedge against currency fluctuations[95]. - The company reported a significant impact on logistics and supply chain operations due to the pandemic, affecting both procurement and sales[105]. - The company has faced certain risks as a downstream player in the life paper industry due to the pandemic's impact on logistics[105]. Corporate Governance and Compliance - The company has not reported any discrepancies between financial results under international and Chinese accounting standards[31][32]. - The company has no other non-recurring loss items beyond those already disclosed[35]. - The company has no significant litigation or arbitration matters during the reporting period[150]. - The company’s related party transactions were conducted at market fair prices, ensuring compliance with pricing principles[161]. - The company’s rental agreements were approved by independent directors, ensuring transparency and governance[173]. Financial Management and Investments - The company has engaged in entrusted financial management with a total amount of 4,500, sourced from its own funds, with no overdue amounts or impairments reported[186]. - The company’s subsidiary, Jiangmen Zhongshun Paper Co., Ltd., has been re-certified as a high-tech enterprise, allowing it to enjoy a preferential corporate income tax rate of 15% for three years[189]. - The company has made no significant contracts during the reporting period, reflecting a focus on internal operations[187]. Shareholder and Stock Management - The company’s stock option plan allowed for the exercise of 31,205 options and 1,041,903 reserved options during the reporting period[199]. - The company plans to repurchase shares with a total amount between 180 million and 360 million RMB, at a price not exceeding 31.515 RMB per share[200]. - The stock option incentive plan saw the cancellation of 139,428 shares, representing 0.01% of the total share capital, due to unexercised options[115].

Financial Performance - The company's revenue for Q1 2022 was ¥1,884,339,300.88, a decrease of 10.36% compared to ¥2,102,126,213.63 in the same period last year[6] - Net profit attributable to shareholders was ¥133,346,264.70, down 50.82% from ¥271,122,802.99 year-on-year[6] - Basic and diluted earnings per share were both ¥0.10, a decrease of 52.38% from ¥0.21 in the same period last year[6] - Total operating revenue for Q1 2022 was CNY 1,884,339,300.88, a decrease of 10.4% from CNY 2,102,126,213.63 in the same period last year[40] - Net profit attributable to the parent company was CNY 133,346,264.70, down 50.8% from CNY 271,122,802.99 in the previous year[43] - Total operating costs for Q1 2022 were CNY 1,738,812,664.25, down 2.3% from CNY 1,780,296,793.30 in the previous year[40] Cash Flow - The net cash flow from operating activities was ¥247,480,435.23, representing a decline of 26.10% compared to ¥334,905,166.23 in the previous year[6] - Total cash inflow from operating activities is ¥2,033,965,816.49, down from ¥2,292,569,505.14, reflecting a decline of 11.3%[50] - Cash outflow from operating activities totals ¥1,786,485,381.26, compared to ¥1,957,664,338.91 in the previous period, indicating a decrease of 8.7%[50] - The net cash flow from investing activities is -¥207,345,904.35, worsening from -¥127,917,948.06 in the previous period[50] - Cash inflow from financing activities is ¥43,847,319.15, an increase from ¥10,255,276.29 in the previous period[50] - The net cash flow from financing activities is ¥34,952,619.53, compared to -¥267,836,615.33 in the previous period, showing a significant improvement[50] Assets and Liabilities - Total assets at the end of the reporting period were ¥7,319,188,356.35, down 2.71% from ¥7,523,281,973.84 at the end of the previous year[6] - Total current assets as of March 31, 2022, amount to ¥3,579,881,992.70, a decrease from ¥3,752,485,973.34 at the beginning of the year[30] - Total liabilities decreased to CNY 2,274,247,357.73 from CNY 2,616,483,261.29, representing a reduction of 13.1%[39] - The total amount of current liabilities was CNY 2,118,263,017.15, down 13.9% from CNY 2,459,919,353.11[36] - The accounts payable increased to ¥400,228,927.06 from ¥334,969,632.58[33] - The company reported a decrease in accounts payable from CNY 829,113,780.31 to CNY 741,278,632.32, a decline of 10.6%[36] Shareholder Information - The company reported a total of 141,508 common shareholders at the end of the reporting period[20] - Guangdong Zhongshun Paper Group Co., Ltd. holds 28.61% of shares, totaling 375,655,958 shares[24] Other Financial Metrics - The weighted average return on equity was 2.68%, a decrease of 2.66% compared to 5.34% in the same period last year[6] - Financial expenses increased by 56.85% to ¥1,940,083.31 due to increased exchange rate losses[17] - The company has a short-term loan of ¥38,500,000.00 as of March 31, 2022[33] - The company paid ¥130,061,335.22 in taxes, a decrease from ¥142,572,370.03 in the previous period[50] - The company invested ¥248,770,349.25 in capital expenditures, compared to ¥187,982,975.15 in the previous period, reflecting an increase of 32.2%[50] - The company received ¥41,239,541.68 from other investment-related cash, down from ¥50,000,000.00 in the previous period[50]

Financial Performance - The company's operating revenue for 2021 was ¥9,149,870,464.80, representing a year-over-year increase of 16.95% compared to ¥7,823,528,416.32 in 2020[29]. - The net profit attributable to shareholders for 2021 was ¥581,097,222.93, a decrease of 35.85% from ¥905,889,081.41 in 2020[29]. - The basic earnings per share for 2021 was ¥0.45, down 35.71% from ¥0.70 in 2020[31]. - The total assets at the end of 2021 were ¥7,523,281,973.84, reflecting a slight increase of 0.60% from ¥7,478,439,747.77 at the end of 2020[31]. - The net assets attributable to shareholders decreased by 2.75% to ¥4,903,552,661.58 at the end of 2021, down from ¥5,042,146,076.42 at the end of 2020[31]. - The company reported a net profit excluding non-recurring gains and losses of ¥567,912,188.04 for 2021, down 36.30% from ¥891,552,986.81 in 2020[31]. - In 2021, the company achieved operating revenue of 9.15 billion yuan, a year-on-year increase of 16.95%[70]. - The net profit attributable to shareholders was 581 million yuan, a decrease of 35.85% year-on-year due to rising material and energy costs[70]. Cash Flow and Investments - The net cash flow from operating activities increased by 59.33% to ¥1,319,579,606.83 in 2021, compared to ¥828,200,862.25 in 2020[31]. - The net cash flow from investment activities decreased by 69.47% to -¥647,153,182.12, primarily due to reduced financial principal receipts and increased equipment payments[104]. - The net cash flow from financing activities dropped by 1,230.07% to -¥919,188,204.07, mainly due to decreased cash from borrowings and increased share repurchase payments[104]. - The company's total investment during the reporting period was ¥708,619,852.14, reflecting a 26.16% increase compared to ¥561,677,417.02 in the previous year[115]. Market Position and Strategy - The company is positioned as a leading player in the domestic consumer paper industry, belonging to the first tier of the market[56]. - The company is focusing on optimizing its product structure, increasing the sales proportion of high-end and high-margin products, and enhancing brand marketing strategies[57]. - The company is expanding its market presence in Southeast Asia, North Asia, Australia, the Middle East, and North America[56]. - The company aims to provide comprehensive cleaning and hygiene solutions for various commercial spaces, including offices and hotels[55]. - The company is committed to continuous innovation in product development, including the introduction of alcohol wipes and disposable towels[57]. - The company has launched a new brand strategy to enhance its product matrix and improve competitiveness in the high-end market[72]. Risk Factors and Challenges - The company faced operational pressure due to rising raw material prices, intense market competition, and supply chain disruptions caused by the pandemic[43]. - The living paper industry experienced a slowdown in growth due to excess capacity, although the growth rate remained above the global average[43]. - The cost of pulp, which constitutes 40%-60% of the company's production costs, poses a significant risk due to price volatility influenced by global economic conditions[134]. - The company faces risks from regional market competition, as the life-use paper market is characterized by low unit value and high transportation costs[136]. - The company has faced challenges in maintaining operational efficiency due to disruptions in the supply chain caused by the pandemic[141]. Corporate Governance and Management - The company has established independent operational capabilities across business, personnel, assets, institutions, and finance, ensuring no reliance on the controlling shareholder[160]. - The company has emphasized the importance of independent directors, with the election of new members to ensure diverse perspectives in decision-making[187]. - The company has a clear ownership structure with complete control over its assets, ensuring no asset occupation by the controlling shareholder[161]. - The company has experienced significant changes in its board and management personnel, with several resignations and appointments noted[176]. - The management team is actively engaged in stock trading, reflecting confidence in the company's future performance[177]. Research and Development - The company has invested in R&D to innovate and upgrade its product offerings, focusing on user experience and product quality[73]. - Research and development expenses rose by 11.39% to ¥211,964,212.18, accounting for 2.32% of operating revenue[100]. - The number of R&D personnel increased by 3.02% to 409, with a slight decrease in the proportion of R&D personnel to total employees[100]. - Research and development investments increased by 30%, totaling 150 million RMB, to enhance product innovation and technology[150]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating over ¥14 million in cash and materials in 2021[79]. - The company has implemented strict fire safety management protocols and has a dedicated safety management department to mitigate risks associated with flammable materials used in production[138]. - The company is committed to continuous improvement in safety and health standards to protect its workforce and minimize operational risks[138].

Financial Performance - The company's operating revenue for Q3 2021 was ¥2,027,210,890.87, an increase of 4.54% year-on-year[7]. - The net profit attributable to shareholders for Q3 2021 was ¥77,263,562.65, a decrease of 64.72% compared to the same period last year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥77,203,406.36, down 64.12% year-on-year[7]. - Total operating revenue for the third quarter reached ¥6,274,852,727.25, an increase of 12.9% compared to ¥5,555,315,729.00 in the same period last year[38]. - The net profit for the current period is ¥484,429,525.85, down from ¥671,693,102.07, indicating a decrease of approximately 28%[44]. - The total profit for the current period is ¥553,005,077.13, down from ¥809,163,096.57, representing a decrease of about 31.6%[41]. - The basic earnings per share decreased to ¥0.3729 from ¥0.5207, a decline of about 28.3%[44]. Cash Flow - The cash flow from operating activities for the year-to-date period increased by 113.73% to ¥879,123,088.92[7]. - Cash flow from operating activities generated ¥879,123,088.92, compared to ¥411,319,559.28 in the previous period, showing an increase of approximately 113.4%[48]. - The company achieved cash inflow from operating activities totaling ¥6,418,925,777.49, compared to ¥5,638,166,644.61 in the previous period, an increase of about 13.8%[48]. - The net cash flow from investing activities was -470,455,111.32, compared to -181,654,869.00 in the previous period[51]. - The total cash inflow from financing activities was 219,155,847.75, down from 408,990,730.32 in the previous period[51]. - The net cash flow from financing activities was -732,257,420.73, compared to a positive flow of 95,494,533.77 in the previous period[51]. - The company reported a cash outflow of 654,187,119.81 related to financing activities, significantly higher than 45,439,244.79 in the previous period[51]. Assets and Liabilities - Total assets at the end of the reporting period were ¥7,481,516,961.44, a slight increase of 0.04% from the end of the previous year[10]. - Current assets decreased to ¥3,708,521,863.32 from ¥4,039,920,737.33, reflecting a decline of approximately 8.2%[31]. - Total liabilities rose to ¥2,629,398,655.27 from ¥2,436,293,671.35, marking an increase of approximately 7.9%[37]. - Non-current assets increased to ¥3,772,995,098.12 from ¥3,438,519,010.44, showing a growth of about 9.7%[34]. - The total current liabilities reached 2,288,761,714.65, reflecting an increase from the previous period[57]. - The total liabilities were 2,446,905,325.66, indicating a rise compared to the previous reporting period[57]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 160,792[23]. - Guangdong Zhongshun Paper Group Co., Ltd. holds 28.58% of shares, totaling 375,655,958 shares[23]. - Zhongshun Company holds 20.28% of shares, totaling 266,504,789 shares[23]. - Hong Kong Central Clearing Limited holds 4.48% of shares, totaling 58,934,472 shares[23]. - The top ten shareholders include individuals and entities with varying percentages, with the largest being Guangdong Zhongshun Paper Group Co., Ltd.[23]. - The company has a repurchase account holding 24,952,887 shares, representing 1.9% of total shares[26]. - The company has not disclosed any significant changes in shareholder relationships among the top ten shareholders[26]. - There are no preferred shareholders reported for the company[27]. - The company has been actively repurchasing shares, with multiple announcements regarding share buybacks throughout July and August 2021[27]. - The company is under the control of Mr. Deng Yingzhong and related parties, indicating a concentrated ownership structure[26]. Operating Costs and Expenses - The company's gross profit margin was impacted by a 31.32% increase in operating costs year-to-date, primarily due to rising material prices and increased freight costs[18]. - The total operating costs increased to ¥5,728,586,896.00 from ¥4,755,419,712.84, reflecting a rise of about 20.4%[41]. - Sales expenses increased to ¥1,385,553,454.23 from ¥1,342,148,313.68, reflecting a rise of approximately 3.2%[41]. - Research and development expenses rose to ¥147,516,610.83 from ¥137,574,572.36, marking an increase of about 7.0%[41]. Investment Income - The company reported a 90.62% decrease in investment income year-to-date, attributed to reduced financial product returns[18]. - The company reported a decrease in investment income to ¥358,473.15 from ¥3,821,920.79, a decline of approximately 90.6%[48]. Other Financial Information - The company has a capital reserve of approximately $907 million[60]. - Total equity attributable to the parent company's owners is approximately $5.04 billion[60]. - Unallocated profits amount to approximately $2.86 billion[60]. - Total liabilities and equity amount to approximately $7.48 billion[60]. - The company has not audited the third quarter report[61]. - The company implemented a new leasing standard starting January 1, 2021[60].

Financial Performance - The company's operating revenue for the reporting period was ¥4,247,641,836.38, representing a 17.46% increase compared to ¥3,616,201,399.80 in the same period last year[29]. - The net profit attributable to shareholders of the listed company was ¥407,161,317.15, a decrease of 10.06% from ¥452,699,484.61 in the previous year[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥398,988,234.69, down 10.65% from ¥446,535,737.96 year-on-year[29]. - The net cash flow from operating activities increased by 46.24% to ¥737,865,788.19 from ¥504,558,588.33 in the previous year[29]. - The total assets at the end of the reporting period were ¥7,138,935,102.92, a decrease of 4.54% from ¥7,478,439,747.77 at the end of the previous year[29]. - The net assets attributable to shareholders of the listed company were ¥4,851,858,577.42, down 3.77% from ¥5,042,146,076.42 at the end of the previous year[29]. - The basic earnings per share decreased by 10.77% to ¥0.3140 from ¥0.3519 in the previous year[29]. - The diluted earnings per share decreased by 10.20% to ¥0.3109 from ¥0.3462 in the previous year[29]. - The weighted average return on equity was 7.98%, down 2.48% from 10.46% in the previous year[29]. - The company reported a significant decrease in financing cash flow, down 1,680.24% to -¥815,627,674.59, mainly due to reduced cash from borrowings and increased share repurchase payments[63]. Market Position and Strategy - The company is positioned as a leading player in the domestic household paper industry, with a strong market presence and recognition from consumers and capital markets[46]. - The company aims to optimize its product structure by increasing the sales proportion of high-end and high-margin products, particularly in the Face, Lotion, and natural wood series[50]. - The company has expanded its market reach to Southeast Asia, the Middle East, Europe, and the United States, indicating a robust international presence[47]. - The company emphasizes continuous brand building and quality assurance to maintain its position in the high-end household paper market[46]. - The company has established three major brands: Jierou, Taiyang, and Duoleimi, focusing on a wide range of products including toilet paper, wet wipes, and personal care items[39]. Product Development and Innovation - The Face series of products has been upgraded to a 4-layer thick tissue, enhancing user experience and brand image[39]. - The company launched the OKBEBE series in early 2021, targeting newborn care with high-standard, skin-friendly products[44]. - Research and development expenses rose by 7.21% to ¥97,414,812.32, reflecting the company's commitment to product innovation[63]. - The company has introduced a variety of personalized health products, including makeup wipes and disinfectant wipes, to meet evolving consumer demands[45]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities[113]. - The company has not reported any major environmental issues during the reporting period[112]. - The company has implemented a comprehensive environmental management system, including regular monitoring and third-party assessments to ensure compliance with environmental laws[123]. - The company has committed to continuous improvement in its environmental practices, including regular training and updates to emergency response measures[120]. - The company donated over 1 million yuan in materials to frontline pandemic workers in Shijiazhuang in February 2021[132]. - The company provided assistance totaling over 250,000 yuan to 21 families and individuals facing difficulties from January to June 2021[133]. - The company organized a donation of over 1.6 million yuan in relief materials to disaster areas in Henan in July 2021[133]. Shareholder Engagement and Governance - The company held several shareholder meetings with participation rates ranging from 53.68% to 57.22% during the reporting period, indicating active investor engagement[98]. - The company has committed to not reducing shareholdings during the specified commitment periods, ensuring stability in share ownership[139]. - The company has implemented a compensation plan for employees who purchased shares, ensuring they are compensated for any losses incurred during a specified period[139]. - The company has not engaged in any violations regarding external guarantees during the reporting period[143]. Related Party Transactions - The total amount of related party transactions for the reporting period was 273.28 million RMB, with a significant portion (25.49%) related to rental payments to actual controllers[154]. - The company’s related party transactions were conducted at market fair prices, ensuring compliance with pricing principles[157]. - The total rental amount for properties leased from actual controllers was within the approval limits set by the board of directors[171]. - The company reported no non-operating related party debts or other significant related party transactions during the reporting period[160][162]. Future Outlook and Plans - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by the end of 2022[200]. - New product launches are expected to contribute an additional 200 million yuan in revenue for the second half of 2021[200]. - The company has revised its full-year revenue guidance to 3.2 billion yuan, reflecting a growth rate of 18%[200]. - A strategic acquisition of a local competitor is anticipated to enhance the company's market position and is expected to close by Q4 2021[200].

Financial Performance - The company's operating revenue for 2020 was CNY 7,823,528,416.32, representing a 17.91% increase from CNY 6,634,914,352.68 in 2019[32]. - The net profit attributable to shareholders for 2020 was CNY 905,889,081.41, a 50.02% increase compared to CNY 603,832,650.83 in 2019[32]. - The net profit after deducting non-recurring gains and losses was CNY 891,552,986.81, up 51.44% from CNY 588,728,468.59 in the previous year[32]. - The basic earnings per share for 2020 was CNY 0.70, an increase of 48.94% from CNY 0.47 in 2019[32]. - The total assets at the end of 2020 were CNY 7,478,439,747.77, a 24.10% increase from CNY 6,026,271,823.64 at the end of 2019[32]. - The net assets attributable to shareholders at the end of 2020 were CNY 5,042,146,076.42, reflecting a 23.67% increase from CNY 4,077,004,459.23 in 2019[32]. - The cash flow from operating activities for 2020 was CNY 828,200,862.25, a decrease of 39.12% compared to CNY 1,360,374,901.86 in 2019[32]. - The company reported a weighted average return on equity of 19.86% for 2020, up from 16.42% in 2019[32]. - The fourth quarter revenue was CNY 2,268,212,687.32, with a net profit of CNY 234,195,979.34 attributable to shareholders[38]. Product Development and Market Strategy - The company launched new product lines including the Face oil painting series and the OKBEBE baby care brand, enhancing its product portfolio[46][50]. - The company aims to expand its market presence through a dual-brand strategy with the Sun brand targeting high-quality, cost-effective products[47]. - The company has positioned itself as a leading player in the domestic living paper industry, focusing on high-end products and brand building[52]. - The company’s product structure optimization has led to increased sales of high-margin products, particularly in the Face, Lotion, and natural wood series[57]. - The company has diversified its product offerings to include medical masks and various personal care items, responding to market demands[51]. - The company launched new products such as antibacterial paper, alcohol disinfectant wipes, and mouthwash, contributing to sales growth[71]. - The company has strengthened its e-commerce channel, achieving significant results in online sales during the pandemic[72]. Financial Management and Shareholder Returns - The company plans to distribute a cash dividend of 1 RMB per 10 shares (including tax) to all shareholders[10]. - The cash dividend amount for 2020 was ¥130,106,877.80, representing 14.36% of the net profit attributable to ordinary shareholders[158]. - The total cash dividend, including other methods, was ¥157,787,599.56, which accounted for 100.24% of the distributable profit[164]. - The company has established a three-year shareholder return plan (2020-2022) to ensure the continuity and stability of its dividend policy[152]. - The company’s cash dividend policy is compliant with its articles of association and shareholder resolutions, ensuring transparency and clarity in decision-making processes[153]. - The company completed a share repurchase of 1,895,900 shares by May 21, 2020, as part of its ongoing capital management strategy[157]. - The total amount spent on share repurchases in 2020 was RMB 27,680,721.76, which is considered equivalent to cash dividends for the purpose of calculating the annual cash dividend ratio[157]. Risk Management - The company faces risks related to fluctuations in pulp prices, which significantly impact its production costs[5]. - The company is exposed to exchange rate risks due to its reliance on USD, HKD, and EUR for imports and exports[5]. - The company acknowledges the impact of the global pandemic on logistics and transportation, affecting both procurement and sales operations[10]. - The company has implemented strict fire safety management systems to mitigate risks associated with flammable materials used in production[9]. Operational Efficiency - The company has maintained ISO45001 certification for occupational health and safety management, reducing risks to employee health[9]. - The company has a nationwide production base layout, improving transportation efficiency and reducing costs[60]. - The company has implemented advanced quality management systems, ensuring high product quality and safety standards[63]. - The company established a comprehensive marketing network covering most county-level cities, enhancing its sales capabilities[59]. Research and Development - The company’s investment in research and development has been pivotal in maintaining its competitive edge in the market[52]. - Research and development (R&D) investment amounted to ¥190,298,633.61, representing a 7.89% increase from the previous year, and accounted for 2.43% of operating revenue[103]. - The number of R&D personnel decreased by 9.36% to 397, with R&D personnel accounting for 6.00% of the total workforce[103]. Market Trends and Future Outlook - The company anticipates significant growth in the high-end consumer paper market due to rising living standards and consumption trends, despite ongoing pressures from trade tensions and raw material price fluctuations[128]. - The overall market for consumer paper in China is expected to grow steadily, driven by leading companies expanding production and upgrading equipment[128]. - The demand for consumer paper products is expected to increase significantly, necessitating the expansion of production capacity and the adoption of large-scale, automated production equipment that meets energy-saving and pollution-reduction standards[130]. - Domestic companies have captured a significant share of the consumer paper market, with increasing competitiveness in international markets, exporting to 29 countries and regions[132]. Corporate Governance - The company emphasizes the protection of minority shareholders' rights and ensures they have adequate opportunities to express their opinions[150]. - The company has engaged with various institutional investors during its earnings calls, reflecting its commitment to transparency and investor relations[144]. - The company has not faced any delisting or bankruptcy reorganization issues during the reporting period[182]. - There were no significant accounting errors that required retrospective restatement during the reporting period[179]. - The company has no major litigation or arbitration matters during the reporting period[186].

Financial Performance - The company's operating revenue for Q1 2021 was ¥2,102,126,213.63, representing a 25.81% increase compared to ¥1,670,909,073.75 in the same period last year[9] - Net profit attributable to shareholders for Q1 2021 was ¥271,122,802.99, a 47.81% increase from ¥183,429,517.35 in the previous year[9] - The basic earnings per share for Q1 2021 was ¥0.2091, up 46.63% from ¥0.1426 in the same period last year[9] - Operating profit increased to ¥329,891,965.25, compared to ¥231,353,850.73 in the previous period, reflecting a growth of 42.5%[84] - The company reported a significant increase in sales revenue, with cash received from customers amounting to 2,255,658,189.93, up from 1,672,054,264.73[96] Cash Flow - The net cash flow from operating activities for Q1 2021 was ¥334,905,166.23, showing a slight increase of 1.32% compared to ¥330,547,734.57 in the previous year[9] - The net cash flow from operating activities was $62,329,286.12, a significant decrease of 89.9% compared to the previous period's $618,457,525.87[102] - Cash inflow from operating activities totaled $665,758,183.32, down 33.1% from $994,642,303.33 in the prior period[102] - Cash outflow from operating activities increased to $603,428,897.20, up 60.3% from $376,184,777.46 year-over-year[102] - Cash inflow from investment activities totaled 60,065,027.09, compared to 137,877,808.10 in the prior period[99] - Cash outflow from investment activities was 187,982,975.15, down from 287,260,806.49 year-over-year[99] - The net cash flow from investing activities was $31,971,629.79, a recovery from a negative cash flow of $616,952,627.24 in the previous period[105] - Cash outflow from investing activities decreased significantly to $18,335,397.30 from $824,780,427.34, indicating a reduction in capital expenditures[105] - The net cash flow from financing activities was -$210,664,767.88, worsening from -$28,006,035.43 in the prior period[105] Assets and Liabilities - Total assets at the end of Q1 2021 were ¥7,327,573,419.58, a decrease of 2.02% from ¥7,478,439,747.77 at the end of the previous year[9] - Current liabilities decreased from ¥2,285,288,859.92 to ¥2,054,021,303.83, a reduction of approximately 10.09%[67] - Total liabilities decreased from ¥2,436,293,671.35 to ¥2,219,522,399.15, a decrease of about 8.93%[67] - Owner's equity increased from ¥5,042,146,076.42 to ¥5,108,051,020.43, an increase of approximately 1.31%[70] Shareholder Information - The top shareholder, Guangdong Zhongshun Paper Group Co., Ltd., held 28.63% of the shares, while the second-largest shareholder, Zhongshun Company, held 20.31%[14] - The company did not engage in any repurchase transactions during the reporting period[20] - The company initiated a share repurchase plan, acquiring 8,983,877 shares, representing 0.6848% of total share capital, with a total transaction amount of CNY 216,125,181.33[34] - The company plans to repurchase shares using self-owned funds ranging from 180 million to 360 million RMB, aimed at stock incentive plans or employee shareholding plans[45] Investments and Projects - A new high-end paper project with a total investment of approximately CNY 2.55 billion is planned to expand production capacity and meet future market demand[35] - The company has established a new high-end paper project with a capacity of 400,000 tons, indicating ongoing investment in production capacity[44] - The company has completed the registration of a wholly-owned subsidiary, further expanding its operational capabilities[44] - The company has received a high-tech enterprise certificate for its wholly-owned subsidiary, enhancing its technological credentials[44] Other Financial Metrics - The company's total tax expenses increased by CNY 19,081,102.77, a growth of 49.10%, due to an increase in total profit[32] - Research and development expenses for the current period were ¥46,934,742.68, an increase from ¥40,578,693.56 in the previous period[81] - Total operating costs for the current period were ¥1,780,296,793.30, up from ¥1,443,987,930.50 in the previous period[81] - Financial expenses decreased by CNY 5,478,761.02, a decline of 265.17%, mainly due to increased bank interest income and reduced exchange losses[24] - Investment income decreased by CNY 415,773.01, a decline of 57.52%, mainly due to reduced financial product returns[26]

Financial Performance - Net profit attributable to shareholders reached ¥218,993,617.46, up 34.41% year-on-year[12] - Operating revenue for the period was ¥1,939,114,329.20, reflecting a 17.70% increase compared to the same period last year[12] - Basic earnings per share rose to ¥0.1698, an increase of 32.24% year-on-year[12] - The weighted average return on net assets was 4.95%, an increase of 0.38% compared to the previous year[12] - Total operating revenue for the third quarter reached ¥1,939,114,329.20, an increase of 17.7% compared to ¥1,647,490,771.94 in the same period last year[105] - Total operating revenue for the period was approximately CNY 1.94 billion, an increase from CNY 1.65 billion in the previous period, representing a growth of about 17.7%[107] - Net profit for the period reached approximately CNY 218.99 million, compared to CNY 162.93 million in the previous period, indicating a growth of about 34.5%[110] - The company reported an operating profit of approximately CNY 270.46 million, up from CNY 197.20 million, reflecting an increase of about 37.1%[110] - The total profit for the period was approximately CNY 270.68 million, compared to CNY 197.45 million in the previous period, indicating a growth of about 37.0%[110] - Net profit for the current period was ¥671,693,102.07, representing a 53.3% increase from ¥437,807,689.13 in the same period last year[126] - The company reported a total profit of ¥809,163,096.57, compared to ¥535,367,442.38 in the previous period, marking a growth of 50.9%[124] Assets and Liabilities - Total assets increased to ¥7,181,257,807.39, a growth of 19.17% compared to the end of the previous year[12] - Cash and cash equivalents increased by ¥339,648,471.38, a growth of 48.26% due to increased sales revenue[28] - Accounts receivable notes increased by ¥1,917,030.80, a significant growth of 634.98% due to more bank acceptance bills received from customers[28] - Inventory at the end of the reporting period increased by ¥772,068,592.79, a growth of 78.27%, mainly due to an increase in raw material inventory[31] - Total liabilities increased to ¥2,398,954,649.75, up from ¥1,949,267,364.41, reflecting a growth of approximately 23%[76] - Current liabilities totaled ¥2,259,898,262.12, compared to ¥1,814,383,425.65, marking an increase of about 24.5%[76] - Non-current liabilities amounted to ¥139,056,387.63, slightly up from ¥134,883,938.76, indicating a growth of approximately 3.2%[75] - The total current liabilities rose to CNY 3,845,834,996.47, compared to CNY 2,743,986,156.21 at the end of 2019, marking an increase of around 40.2%[67] Cash Flow - The net cash flow from operating activities was -¥93,239,029.05, a decline of 130.60%[12] - Net cash flow from operating activities decreased by ¥628,339,897.77, a decline of 60.44%, primarily due to increased payments for materials and taxes[38] - Net cash flow from investing activities increased by ¥339,174,392.39, a growth of 65.12%, mainly due to increased financial management principal received[38] - Cash inflow from operating activities reached CNY 5,638,166,644.61, an increase from CNY 5,319,467,881.36 year-over-year[136] - The net cash flow from operating activities was CNY 411,319,559.28, down from CNY 1,039,659,457.05 in the previous period[139] - Cash outflow from investing activities totaled CNY 351,376,920.99, compared to CNY 522,011,515.70 in the prior year[142] - The net cash flow from financing activities was CNY 95,494,533.77, a significant improvement from a net outflow of CNY 276,152,215.78 in the previous period[145] Expenses - Sales expenses increased by ¥397,337,611.49, a growth of 42.05%, due to increased sales revenue and marketing investments[36] - Research and development expenses were approximately CNY 46.71 million, slightly down from CNY 54.41 million, a decrease of about 14.2%[107] - Sales expenses rose to approximately CNY 494.08 million from CNY 337.04 million, an increase of around 46.6%[107] - The financial expenses showed a significant improvement, with a net income of -¥11,079,705.58 compared to a loss of ¥25,759,205.53 last year[124] Shareholder and Management Information - The company completed the first unlock of restricted stock under the 2018 stock option and restricted stock incentive plan, involving 5,593,428 shares, accounting for 0.43% of the total share capital[42] - The company adjusted the pre-tax annual salary of co-general manager Dai Zhenji to no more than ¥10 million to attract talent and achieve strategic goals[43] - The company’s subsidiaries expanded their business scope to include "wholesale and sales: food" and completed the necessary registration changes[43] Compliance and Governance - The company has no overdue or unfulfilled commitments from major shareholders or related parties during the reporting period[48] - The company has not engaged in any securities or derivative investments during the reporting period[49][50] - The company has not reported any violations regarding external guarantees during the reporting period[55] - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[56]

Raw Material and Production Costs - The company's main raw material, pulp, accounts for 40%-60% of production costs, exposing it to significant price volatility risks[7] - In the first half of 2020, pulp prices continued to show a downward trend due to weakened demand in the Chinese market and global trade disputes[7] - The international price of pulp decreased, leading to a reduction in production costs and an improvement in gross profit margin[67] Financial Performance - The company's operating revenue for the reporting period was CNY 3,616,201,399.80, representing a 13.99% increase compared to CNY 3,172,389,026.96 in the same period last year[34] - The net profit attributable to shareholders was CNY 452,699,484.61, a significant increase of 64.69% from CNY 274,874,634.43 in the previous year[34] - The net profit after deducting non-recurring gains and losses was CNY 446,535,737.96, up 65.59% from CNY 269,657,245.92 year-on-year[34] - The basic earnings per share increased to CNY 0.3519, reflecting a growth of 62.77% compared to CNY 0.2162 in the previous year[37] - The total assets at the end of the reporting period were CNY 6,612,703,642.31, an increase of 9.73% from CNY 6,026,271,823.64 at the end of the previous year[37] - The net assets attributable to shareholders rose to CNY 4,532,240,640.94, marking an 11.17% increase from CNY 4,077,004,459.23 at the end of the previous year[37] - The company reported a net cash flow from operating activities of CNY 504,558,588.33, a decrease of 31.35% compared to CNY 734,985,638.36 in the previous year[34] - Cash flow from operating activities decreased by 31.35% to CNY 504.56 million, primarily due to increased payments for materials and taxes[72] Market Position and Strategy - The company is positioned as a leading player in the domestic life paper industry, benefiting from national policies aimed at sustainable development[9] - The life paper market in China is characterized by regional competition, with national brands expected to gain an advantage in the mid-to-high-end product segments[7] - The company is focused on optimizing resource allocation and enhancing product quality in response to stricter environmental regulations[9] - The company has established a comprehensive marketing network covering most county-level cities in China, enhancing profitability through a multi-channel approach[57] - The company has a nationwide production base layout, reducing transportation costs and improving efficiency[58] - The company is focusing on market expansion strategies, including potential mergers and acquisitions to enhance its market presence[161] - The company is planning to expand its market presence in Asia, targeting a 20% increase in market share by the end of the fiscal year[1] Product Development and Innovation - The company has expanded its business scope to include the production and sale of first-class medical devices and daily chemical products[32] - The company has introduced new product lines, including the Face series and Lotion series, focusing on innovative features and consumer needs[46] - The company launched the "Cotton Soft Towel" product made from 100% new cotton, designed for dual use, particularly suitable for newborns and women consumers[48] - The "Golden Respect" series uses 100% imported virgin wood pulp, offering thicker and more resilient paper products[48] - The company has developed a new personal care brand "Duo Lei Mi" in June 2019, focusing on high-quality cotton-based products for women[51] - The company launched new products including masks and disinfectant wipes, contributing to sales growth during the pandemic[65] - Research and development expenses increased by 41.88% to CNY 90.86 million, indicating a commitment to innovation[72] - The company is focusing on the development of new products, particularly in the technology sector, with an investment of $50 million allocated for R&D[1] Environmental Responsibility - The company emphasizes environmental protection, achieving waste discharge standards that exceed national requirements[61] - The company reported a total wastewater discharge of 144.59 tons, with a COD concentration of 141.5 mg/L, well below the standard of ≤200 mg/L[172] - The company achieved a total nitrogen discharge of 2.65 tons from wastewater, with an ammonia nitrogen concentration of 5.35 mg/L, below the standard of ≤8 mg/L[172] - The company has installed online monitoring facilities for wastewater treatment at four subsidiaries, ensuring compliance with local environmental regulations[178] - The company has implemented a comprehensive environmental management system, including regular monitoring of wastewater and air emissions, to meet legal requirements[183] - The company has established a water reuse system to minimize wastewater discharge, utilizing treated water for production processes[177] - The company is classified as a key pollutant discharge unit by environmental protection authorities[170] Corporate Social Responsibility - The company donated CNY 10.8 million and provided hygiene products to support pandemic prevention efforts, demonstrating corporate social responsibility[69] - The company donated 10,000 masks and other protective materials worth 35,000 CNY to support anti-epidemic efforts in Yunmeng County, Xiaogan City[187] - The company contributed 100,000 CNY in cash during the "Guangdong Province Poverty Alleviation Day" event in Luoding City, Guangdong Province[188] - Total financial support for poverty alleviation amounted to 10,000 CNY, with material donations valued at 35,000 CNY[191] - The company plans to continue its poverty alleviation efforts based on its situation and work arrangements[192] - The company has engaged in various poverty alleviation initiatives, including cash donations and material support, reflecting its commitment to corporate social responsibility[187][188] - The company has allocated 13.5 million CNY for targeted poverty alleviation projects[191] - The company is actively participating in government-led poverty alleviation programs, aligning with national policies[187] Governance and Compliance - The company has ongoing litigation involving amounts such as 660.37 thousand yuan and 2,932.01 thousand yuan, with some cases awaiting second-instance judgments[117] - The company has not experienced any major litigation or arbitration matters during the reporting period[115] - The company has a commitment to not engage in competition with its own shareholders, ensuring compliance with relevant laws and regulations[110] - The company has a commitment from its directors and senior management to limit the transfer of shares to no more than 25% of their total holdings during their tenure and for six months after leaving[110] - The company has not conducted an audit for its semi-annual financial report[113] - The company has implemented a stock option and restricted stock incentive plan, approved on December 18, 2018, to promote sustainable development and protect shareholder interests[123] Employee and Shareholder Engagement - The company successfully completed the first unlock of its stock incentive plan, releasing 5,593,428 shares to motivate employees[68] - The company reported a successful completion of its stock option plan, with 1 million shares unlocked[49] - The company has adjusted the exercise price of its stock options, which is expected to incentivize employee performance[46] Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue increase of 15%[1] - The company has announced a reduction in capital, which is anticipated to improve financial flexibility[54] - The company is in the process of appointing a new co-general manager to strengthen its leadership team[57]