Group 1: Financial Performance - The company achieved a revenue of 65.889 million yuan in Q3 2022, representing a year-on-year growth of 52.84% [4] - The net profit attributable to shareholders was 8.03461 million yuan, with a year-on-year increase of 30.76% [4] Group 2: Leather Business Overview - The existing leather business saw growth in both revenue and profit during Q3 2022 [4] - Domestic sales accounted for over 90% of the leather business, while overseas sales were less than 10% due to the impact of international market conditions [4] Group 3: Automotive Leather Supply - Hongxing Automotive Leather is a core supplier of genuine leather materials for several domestic new energy vehicle brands, including NIO and Li Auto [4] - The demand for automotive leather orders has increased due to the rapid growth in new energy vehicle sales, with a rising market penetration rate [4] Group 4: Order Expansion - Hongxing Automotive Leather maintains stable orders from existing clients and is actively expanding its customer base [4]

证券代码：002674 证券简称：兴业科技 兴业皮革科技股份有限公司 投资者关系活动记录表 编号：2022-015 | --- | --- | --- | --- | --- | --- | --- | |--------------------------|----------------------------|-----------------------------------------------------------------------------------------------------------|-------|-------|--------------|-------| | | | | | | | | | 投 资 者关 系活 | □特定对象调研 | □分析师会议 | | | | | | 动类别 | | □媒体采访 □业绩说明会 | | | | | | | | □新闻发布会 □路演活动 | | | | | | | □现场参观 | | | | | | | | ■电话交流会 | | | | | | | 参 与 单位 名称 | | 开源证券、华夏基金、融通基金、海富通基金、恒生前海 ...

证券代码：002674 证券简称：兴业科技 兴业皮革科技股份有限公司 投资者关系活动记录表 编号：2022-013 | --- | --- | --- | --- | |----------------------------|----------------------------|-----------------------|--------------------------------------------------------| | | | | | | 投 资 者关 系活 | □特定对象调研 | □分析师会议 | | | 动类别 | □媒体采访 □业绩说明会 | | | | | □新闻发布会 □路演活动 | | | | | □现场参观 | | | | | ■电话交流会 | | | | 参 与 单位 名称 及人员姓名 | 澜庭资本 | | 天风证券、上海煜德投资管理中心（有限合伙）、华宝基金、 | | 时间 2022 | 年 10 月 25 日 | 上午 9：00-10 ： 00 | | | 地点 兴业科技 | 办公楼 | | | | 上 市 公司 接待 人员姓名 | 董事会秘书：吴美莉 | | ...

Financial Performance - The company's operating revenue for Q3 2022 was ¥659,887,197.66, representing a 52.84% increase compared to the same period last year[5] - The net profit attributable to shareholders for Q3 2022 was ¥80,346,130.80, a 30.67% increase year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥77,324,400.57, up 32.80% from the previous year[5] - Total operating revenue for Q3 2022 reached CNY 1,400,566,030.98, an increase of 13.33% compared to CNY 1,235,431,425.99 in the same period last year[35] - Net profit for Q3 2022 was CNY 140,776,786.59, a decrease of 20.51% from CNY 177,046,750.18 in Q3 2021[36] - The total comprehensive income for the third quarter was CNY 136,530,777.36, a decrease from CNY 165,429,635.69 in the same period last year[37] - Basic and diluted earnings per share were both CNY 0.4514, down from CNY 0.6076 year-over-year[37] Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,765,022,192.96, an increase of 13.84% compared to the end of the previous year[6] - The company's total assets increased to CNY 3,765,022,192.96, compared to CNY 3,307,169,863.45 at the end of the previous year, reflecting a growth of 13.83%[35] - Current liabilities rose to CNY 1,241,246,659.37, a significant increase of 96.36% from CNY 631,502,404.23[34] - The total liabilities of the company were CNY 1,317,861,529.50, an increase of 34.38% compared to CNY 980,795,307.50[34] Cash Flow - The company's cash flow from operating activities for the year-to-date was ¥48,364,215.49, down 34.35% from the same period last year[16] - Cash inflow from operating activities totaled CNY 1,403,060,282.13, compared to CNY 1,480,297,339.41 in the previous year[39] - The net cash flow from operating activities was CNY 48,364,215.49, a decline from CNY 73,669,215.80 year-over-year[39] - Cash inflow from financing activities was CNY 221,829,386.98, down from CNY 494,459,260.70 in the previous year[40] - The net cash flow from financing activities was CNY 11,570,287.22, compared to -CNY 57,645,606.75 in the same period last year[40] Investments and Financial Management - The company reported a significant increase in accounts receivable, which rose by 89.96% to ¥435,575,461.95 due to the consolidation of newly acquired subsidiaries[11] - The company has invested 160.40 million CNY in bank financial products, with no overdue amounts reported[18] - The company has a total of 3,000 million CNY in principal-protected financial products with a floating return rate of 3.10%[20] - The company has a total of 10,000 million CNY in principal-protected financial products with a floating return rate of 3.10%[20] - The company is actively managing its investment portfolio to mitigate risks associated with idle funds[24] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,841[26] - The largest shareholder, Hezi Wanxing Equity Investment, holds 29.04% of the shares, with 84,744,000 shares pledged[27] Government Subsidies - The company received government subsidies totaling ¥18,976,958.66, a 116.91% increase compared to the previous year[14] Research and Development - The company reported a decrease in research and development expenses to CNY 35,110,770.66, down from CNY 36,614,472.20, indicating a reduction of 4.1%[35]

Financial Performance - The company reported significant financial metrics in the 2022 semi-annual report, with a focus on revenue and profit growth[16]. - The company's revenue for the reporting period was ¥740,678,833.32, a decrease of 7.84% compared to ¥803,682,412.12 in the same period last year[22]. - Net profit attributable to shareholders was ¥51,393,858.78, down 55.64% from ¥115,847,939.88 year-on-year[22]. - The cash flow from operating activities was ¥21,925,409.84, reflecting a significant decline of 77.69% compared to ¥98,289,987.22 in the previous year[22]. - Basic earnings per share decreased to ¥0.1761, down 55.63% from ¥0.3969 in the same period last year[22]. - Total assets increased by 4.94% to ¥3,470,618,179.40 from ¥3,307,169,863.45 at the end of the previous year[22]. - The weighted average return on equity decreased to 2.23%, down 3.09 percentage points from 5.32%[22]. - The company achieved operating revenue of 741 million yuan, a year-on-year decrease of 7.84%[38]. - Net profit attributable to shareholders was 51.30 million yuan, down 55.64% year-on-year[38]. - Net cash flow from operating activities was 21.93 million yuan, a decline of 77.69% compared to the previous year[38]. Market and Expansion Strategies - The company is actively pursuing market expansion strategies, although specific figures and targets were not disclosed in the provided content[3]. - The company plans to expand production capacity to meet increasing orders from domestic automotive brands, leveraging its financial and procurement advantages[32]. - The company has entered the supplier system of several well-known domestic automotive manufacturers, establishing a strong customer base[43]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of up to 1 billion allocated for potential deals[173]. - Market expansion plans include entering three new international markets by Q4 2022, targeting a 15% increase in market share[173]. Research and Development - The company is engaged in research and development of new products and technologies to enhance its competitive edge in the leather industry[3]. - The company is investing 500 million in research and development for new technologies aimed at enhancing product efficiency[173]. - New product launches are expected to contribute an additional 1.5 billion in revenue by the end of the fiscal year[173]. - New product development initiatives are underway, with an investment of 500 million allocated for R&D in innovative leather technologies[176]. Environmental Compliance and Initiatives - The company emphasizes environmental protection and has established a comprehensive wastewater treatment and recycling system[37]. - The company has implemented a comprehensive wastewater treatment plan to comply with environmental regulations and minimize pollution[118]. - The company has achieved over 95% effective recycling rate for chromium and sulfur-containing wastewater in the leather production process[123]. - The company installed a photovoltaic power generation system at the Andong plant, generating 861,200 kWh of solar power in the first half of 2022[134]. - The company has developed emergency response plans for environmental incidents, which have been reviewed and approved by experts[130]. Governance and Compliance - The company has a structured governance framework in place, ensuring compliance and accountability within its operations[4]. - The company is committed to maintaining transparency and accuracy in its financial disclosures, as confirmed by its board and management[2]. - The company adheres to legal regulations to protect the rights of shareholders and creditors, ensuring compliance with corporate governance structures[135]. - The company has established a framework to manage related party transactions fairly and reasonably, adhering to market rules and principles[139]. Risks and Challenges - The management discussed potential risks and countermeasures in the operational environment, emphasizing the importance of risk awareness for investors[3]. - The company faces risks related to environmental policies, which may lead to increased operational costs due to stricter pollution control measures[101]. - Fluctuations in the price of raw materials, particularly cowhide, significantly impact the company's profitability[103]. - The ongoing US-China trade tensions could lead to increased tariffs on leather products, affecting sales and procurement costs[107]. - The COVID-19 pandemic continues to impact global economic conditions, potentially affecting sales of leather goods[108]. Shareholder Information - The total number of shares is 291,862,944, with 2,996,292 shares (1.03%) being limited sale shares and 288,866,652 shares (98.97%) being unrestricted sale shares[182]. - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 29.04% of the shares, totaling 84,744,000 shares, with 42,290,000 shares pledged[188]. - The second-largest shareholder, Wu Guoshi, owns 13.59% of the shares, amounting to 39,666,886 shares, with 16,910,000 shares pledged[188]. - The report indicates that there were no changes in the holdings of directors, supervisors, and senior management during the reporting period[191]. Related Party Transactions - The company reported a significant related party transaction amounting to 10.37 million yuan for environmental services, representing 27.8% of similar transactions[152]. - The company engaged in a related party transaction for leather procurement, with a transaction amount of 23.85 million yuan, accounting for 0.16% of similar transactions[152]. - The pricing principle for waste disposal services was set at 40 yuan per ton, with a total transaction amount of 670,000 yuan approved[152]. Financial Management - The company aims to reduce its debt-to-equity ratio to below 1.5 by the end of 2022 through strategic financial management[173]. - The company has entrusted financial management with a total amount of CNY 129,510 million, with an outstanding balance of CNY 38,610 million[171]. - The total approved guarantee amount for subsidiaries is CNY 36,800 million, with an actual guarantee balance of CNY 2,215.85 million at the end of the reporting period[168].

Financial Performance - The company's operating revenue for Q1 2022 was ¥259,303,191.93, a decrease of 5.83% compared to ¥275,355,337.22 in the same period last year[4] - Net profit attributable to shareholders was ¥3,889,511.86, down 80.55% from ¥19,998,217.65 year-on-year[4] - The company's basic earnings per share decreased by 80.58% to ¥0.0133 from ¥0.0685 in the same period last year[4] - Operating profit decreased significantly to CNY 5,993,554.41 from CNY 24,582,879.31, reflecting a decline of 75.6%[31] - Net profit for the period was CNY 4,047,434.81, down 79.8% from CNY 19,937,996.02 in the same period last year[31] - The total comprehensive income for the period was CNY 4,060,385.92, down 79.7% from CNY 19,972,045.93[32] Cash Flow - The net cash flow from operating activities was -¥24,387,959.06, a decline of 247.57% compared to ¥16,526,390.88 in the previous year[12] - Cash flow from operating activities showed a net outflow of CNY 24,387,959.06, compared to a net inflow of CNY 16,526,390.88 in the previous period[35] - The net cash flow from investment activities was 263,870,182.52 CNY, a significant improvement compared to -590,054,103.93 CNY in the previous period[36] - The total cash inflow from financing activities amounted to 13,575,562.91 CNY, compared to 2,113,649.54 CNY previously[36] - The net cash flow from financing activities was 9,300,017.74 CNY, recovering from -53,197,743.62 CNY in the last period[36] - The company reported a net increase in cash and cash equivalents of 248,593,462.22 CNY, contrasting with a decrease of 625,875,683.46 CNY in the previous period[36] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥3,269,702,591.50, a decrease of 1.13% from ¥3,307,169,863.45 at the end of the previous year[4] - Total current assets amount to ¥2,426,820,778.58, a decrease from ¥2,511,740,760.64 at the beginning of the year, representing a decline of approximately 3.4%[26] - Total assets decreased to ¥3,269,702,591.50 from ¥3,307,169,863.45, indicating a reduction of 1.1%[31] - Total liabilities decreased to ¥939,267,649.63 from ¥980,795,307.50, a reduction of about 4.2%[27] - The company has a long-term loan of ¥299,500,000.00, unchanged from the previous period[27] - The total equity remains stable at ¥1,266,748,214.10, consistent with the previous reporting period[27] Shareholder Information - Total number of common shareholders at the end of the reporting period is 11,950[20] - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 29.04% of shares, totaling 84,744,000 shares, with 36,690,000 shares pledged[20] Government Subsidies and Other Income - The company received government subsidies amounting to ¥12,961,009.40, an increase of 1978.11% compared to ¥623,691.17 in the previous year[11] - Other income rose significantly to CNY 12,961,009.40 from CNY 623,691.17, marking an increase of 1985.5%[31] Investment Activities - The company’s investment activities generated a net cash flow of ¥263,870,182.52, a 144.72% increase compared to -¥590,054,103.93 in the previous year[12] - The company reported a recovery of ¥153.3 million from a wealth management product with a return rate of 3.04%[17] - The company has a total of ¥99.1 million in bank wealth management products sourced from its own funds, with a return rate of 3.03%[16] - The company has a total of ¥21.66 million recovered from a wealth management product with a return rate of 2.55%[17] - The company has a total of ¥40.37 million recovered from a wealth management product with a return rate of 2.89%[17] - The company has a total of ¥51.95 million that remains unrecovered from a wealth management product with a return rate of 2.05%[17]

Financial Performance - The company's operating revenue for 2021 was ¥1,726,346,976.76, an increase of 18.21% compared to ¥1,460,440,505.08 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥181,310,919.79, representing a growth of 56.93% from ¥115,537,730.38 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥169,426,359.26, up 65.37% from ¥102,451,065.20 in 2020[20]. - The basic earnings per share for 2021 was ¥0.6212, a 58.87% increase from ¥0.3910 in 2020[20]. - The company's total assets at the end of 2021 were ¥3,307,169,863.45, a 7.06% increase from ¥3,089,073,627.58 at the end of 2020[21]. - The net assets attributable to shareholders increased by 7.86% to ¥2,300,125,427.67 at the end of 2021 from ¥2,132,531,117.02 at the end of 2020[21]. - The company reported a net cash flow from operating activities of ¥134,810,041.01, a decrease of 24.79% from ¥179,252,491.64 in 2020[20]. - The company reported a net profit of CNY 190,130,456.47 for the year 2021, with a distributable profit of CNY 544,170,913.12[196]. - The cash dividend proposed is CNY 87,558,883.20, which represents 100% of the total distributable profit[193]. - The company has a total of 291,862,944 shares, proposing a cash dividend of CNY 3.00 per 10 shares (including tax)[196]. Production and Capacity - The company has a production capacity of nearly 150 million square feet of cowhide leather annually, serving high-end domestic and international brands[33]. - The company has the capacity to produce nearly 1.5 million square feet of top-grain leather annually, benefiting from large-scale raw material procurement and strong bargaining power with suppliers[39]. - The company has an annual processing capacity of 3.2 million raw hides, ensuring compliance with environmental regulations and maintaining production capacity[42]. - The company's total production capacity remained at 14,720,000 square feet, with a capacity utilization rate of 70.53%, up from 66.27% in the previous year[79]. - The company sold 10,527.28 million square feet of top-grain leather, marking a 13.46% increase in sales volume year-on-year[62]. Research and Development - The company has established a dual R&D system, with a national-level technology center and product development teams in each division, focusing on innovative leather processing technologies and market trends[43]. - The company has received 94 authorized patents, including 67 invention patents, and has participated in the formulation of over 14 national and industry standards[44]. - Research and development expenses increased by 18.64% year-on-year, amounting to 50,030,602.28 CNY[72]. - The company completed the development of six new product projects, including high-end eco-friendly leather, which aims to enhance product quality and market competitiveness[92]. - The number of R&D personnel increased by 10.93% from 183 to 203, with R&D personnel now constituting 11.00% of the total workforce[94]. - The company introduced and developed 10 new technologies and materials, completing 6 projects aimed at improving clean production and green manufacturing levels[93]. Market and Sales - The company expanded its market channels by integrating online sales and live streaming, enhancing customer service and product development[51]. - The company's export sales reached 223 million yuan, with a year-on-year increase of 106.62% due to the return of orders from Southeast Asia[54]. - The revenue from the Guangdong region was 507 million yuan, showing a growth of 17.27% compared to the previous year[58]. - The gross profit margin for the leather industry was 25.29%, which increased by 5.68 percentage points compared to the previous year[60]. - The gross profit margin for direct sales was 25.44%, while for distribution sales it was 23.12%, showing an increase of 5.77 percentage points and 5.89 percentage points respectively compared to the previous year[84]. Environmental and Compliance - The company emphasizes environmental protection, implementing advanced wastewater treatment solutions and achieving compliance with local environmental standards[41]. - The natural leather industry aligns with national environmental policies, promoting circular economy development and addressing environmental issues[127]. - The company faces risks from stricter environmental regulations that may increase operational costs due to the need for enhanced pollution control measures[134]. Governance and Management - The company has a total of 7 board members, with 3 independent directors, ensuring compliance with governance standards[148]. - The company has implemented a robust internal audit system to oversee daily operations effectively[151]. - The company has established various specialized committees within the board to enhance governance and operational efficiency[148]. - The company has not reported any changes in the number of shares held by independent directors during the reporting period[170]. - The company has a strong leadership team with extensive experience in the leather industry, including the president, Sun Huiyong, who has over 20 years of management experience[168]. Financial Strategy and Investments - The company has not engaged in any significant asset or equity sales during the reporting period, indicating a stable asset base[121]. - The company has not utilized any fundraising during the reporting period, indicating a self-sustaining financial strategy[120]. - The company has invested 180 billion Indonesian Rupiah, equivalent to approximately 8,070,897.02 RMB, in its wholly-owned subsidiary, indicating ongoing investment in international markets[114]. - The total amount of financial liabilities reported was 0.00, suggesting no outstanding debts at the end of the reporting period[109]. Risks and Challenges - The fluctuation of raw material prices, particularly cowhide, poses a significant risk to the company's profitability[136]. - The company is exposed to exchange rate risks due to its reliance on imported raw materials, primarily settled in foreign currencies[137]. - Changes in fashion trends may reduce the demand for natural leather in footwear, prompting the company to diversify into bag and furniture leather markets[140]. - The impact of COVID-19 has led to a decline in global economic activity, affecting sales of leather products such as shoes and bags[142].

Financial Performance - The company's operating revenue for Q3 2021 was ¥431,749,013.87, representing a 2.08% increase year-over-year, while the year-to-date revenue reached ¥1,235,431,425.99, up 44.91% compared to the same period last year[5] - Net profit attributable to shareholders for Q3 2021 was ¥61,489,899.61, a significant increase of 41.80% year-over-year, with a year-to-date net profit of ¥177,337,839.49, reflecting a remarkable growth of 290.15%[5] - The basic earnings per share for Q3 2021 was ¥0.2107, up 41.79% year-over-year, and the diluted earnings per share also stood at ¥0.2107, marking the same percentage increase[5] - Total operating revenue for Q3 2021 reached CNY 1,235,431,425.99, a significant increase of 45% compared to CNY 852,548,321.18 in Q3 2020[33] - Net profit for Q3 2021 was CNY 177,046,750.18, representing a 290% increase from CNY 45,306,063.90 in Q3 2020[34] - The total comprehensive income for the third quarter of 2021 was CNY 165,720,725, compared to CNY 45,323,185.77 in the same period last year, representing a significant increase[35] Assets and Liabilities - The company's total assets at the end of Q3 2021 were ¥3,215,218,523.64, a 4.08% increase from the previous year-end, while total equity rose to ¥2,298,251,842.02, up 7.77%[6] - Total assets as of September 30, 2021, amounted to CNY 3,215,218,523.64, compared to CNY 3,089,073,627.58 at the end of 2020[31] - The company has a total of 845 million in liabilities as of September 30, 2021[27] - The total liabilities decreased to CNY 897,320,096.87 from CNY 946,490,715.75 year-over-year[30] - Current liabilities were reported at CNY 910,910,172.42, showing the company's short-term financial obligations[43] Cash Flow - Cash flow from operating activities for the year-to-date period was ¥73,669,215.80, reflecting a 26.28% increase compared to the previous year[5] - Operating cash flow net amount increased to ¥73,669,215.80, a growth of 26.28% compared to the previous period due to increased cash receipts from sales[15] - Cash inflow from operating activities reached CNY 1,480,297,339.41, compared to CNY 727,607,012.25 in the previous year, indicating a growth of approximately 103.5%[38] - The net cash flow from operating activities was CNY 73,669,215.80, an increase from CNY 58,337,970.28 in the same quarter last year[38] - Cash outflow from investing activities totaled CNY 1,452,542,244.37, compared to CNY 26,614,961.36 in the previous year, reflecting a substantial increase in investment activities[39] - The net cash flow from investing activities was negative at CNY -425,339,450.45, compared to CNY -24,831,184.06 in the same period last year[39] - Cash inflow from financing activities was CNY 494,459,260.70, down from CNY 578,871,349.67 year-over-year[39] - The net cash flow from financing activities was negative at CNY -57,645,606.75, compared to CNY -12,886,521.98 in the previous year[39] Research and Development - The company reported a significant increase in research and development expenses, which amounted to ¥36,614,472.20 for Q3 2021, representing a 41.88% increase year-over-year[13] - Research and development expenses for Q3 2021 were CNY 36,614,472.20, up from CNY 25,807,352.38 in Q3 2020, indicating a focus on innovation[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 10,936[23] - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 29.04% of shares, totaling 84,744,000 shares[23] - The second-largest shareholder, Wu Guoshi, owns 14.47% of shares, amounting to 42,246,886 shares[23] - The company has a total of 6.29% of shares held by foreign entity Rongtong International Limited, which equals 18,369,800 shares[23] Financial Management - The company received government subsidies totaling ¥8,748,841.98, which is a 213.06% increase compared to the previous year, contributing positively to other income[14] - The company has no overdue amounts in its entrusted financial management activities, indicating effective liquidity management[17] - The company reported a financial structure with a floating rate of 3.00% and a total of 75.62 million in a specific agreement[20] - The company has a total of 147.5 million in a structured agreement with a fixed rate of 2.85%[20] - The company has a total of 134.6 million in a structured agreement with a fixed rate of 2.70%[20] - The company holds long-term equity investments valued at CNY 100,909,676.79, demonstrating commitment to strategic partnerships[42] - The company is actively managing its financial assets, with a focus on low-risk, principal-protected investments[19] - The company is committed to maintaining a robust financial position while exploring new investment opportunities[15]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥803,682,412.12, representing an increase of 87.08% compared to ¥429,587,203.73 in the same period last year[20]. - The net profit attributable to shareholders of the listed company reached ¥115,847,939.88, a significant increase of 5,439.23% from ¥2,091,407.95 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥107,801,831.26, up 5,583.38% from ¥1,896,789.67 in the same period last year[20]. - The net cash flow from operating activities was ¥98,289,987.22, an increase of 724.44% compared to ¥11,922,094.38 in the previous year[20]. - Basic earnings per share were ¥0.3969, reflecting a growth of 5,570.00% from ¥0.0070 in the same period last year[20]. - The total assets at the end of the reporting period were ¥3,200,101,626.74, a 3.59% increase from ¥3,089,073,627.58 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were ¥2,236,793,032.47, up 4.89% from ¥2,132,531,117.02 at the end of the previous year[20]. - The weighted average return on net assets increased to 5.32%, up 5.23 percentage points from 0.09% in the previous year[20]. Revenue and Sales - The company achieved operating revenue of 803.68 million yuan, representing a year-on-year growth of 87.08%[34]. - Net profit reached 115.85 million yuan, a significant increase of 5,439.23% year-on-year[34]. - Operating cash flow net amount was 98.29 million yuan, up 724.44% compared to the previous year[34]. - The company's revenue for the reporting period reached ¥803,682,412.12, representing an increase of 87.08% compared to ¥429,587,203.73 in the same period last year, primarily due to the recovery in market demand and increased sales volume[53]. - Operating costs increased by 63.80% to ¥595,366,575.86 from ¥363,475,409.26, attributed to the same factors of market demand recovery and increased sales volume[53]. - The revenue from the cowhide leather industry accounted for ¥783,295,200.74, which is 97.46% of total revenue, with a year-on-year growth of 88.10%[56]. - The gross profit margin for cowhide leather sales improved to 26.74%, an increase of 10.18 percentage points compared to the previous year[58]. - The revenue from the Zhejiang region was ¥254,694,918.95, showing a significant increase of 117.19% year-on-year[56]. - The company reported a 195.08% increase in revenue from international markets, totaling ¥115,210,056.49[58]. Production and Capacity - The company has a production capacity of nearly 150 million square feet of cowhide leather annually[28]. - The company is currently expanding its production capacity with the Baotai Leather Factory under construction, adjusting the pace based on market conditions[61]. - The capacity utilization rate increased to 74.15%, up 32.62 percentage points from 41.53% in the same period last year[61]. - The company's inventory turnover days for cow leather is 162 days, with a year-on-year increase in inventory balance by 32.81% due to increased production and sales volume[75]. - The total inventory balance as of June 30, 2021, is CNY 619,672,072.40, an increase from CNY 511,182,809.44 at the end of the previous year, reflecting a year-on-year increase of 21.2%[85]. Research and Development - The company has established a dual R&D system to enhance product development speed and meet market demands[39]. - The company has established a dual R&D system with a national enterprise technology center and product development teams, focusing on resource sharing and collaboration[46]. - Research and development expenses rose by 39.93% to ¥22,561,410.57 from ¥16,123,165.61, reflecting the company's commitment to enhancing its R&D capabilities[53]. Environmental Compliance - The company has obtained environmental permits for its subsidiaries, ensuring compliance with stringent environmental regulations and enhancing its competitive position as non-compliant firms are eliminated from the market[44]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[124]. - The company reported a COD discharge concentration of 177.933 mg/L, which is below the standard of 300 mg/L, with a total discharge of 196.2 tons[124]. - The company has established a comprehensive wastewater treatment system that includes a biological treatment process to remove COD and ammonia nitrogen[125]. - The company achieved a 95% effective recycling rate for chromium-containing wastewater in the leather production process[129]. - The company has implemented measures to treat foul-smelling gases generated during the wastewater treatment process, ensuring emissions meet standards[132]. - The company has a dedicated system for treating dust generated during leather processing, ensuring compliance with emission standards[132]. - The company has established a comprehensive pollution prevention and control plan, focusing on reducing wastewater discharge and promoting recycling[125]. - The company has a systematic approach to managing and treating various types of wastewater generated during leather processing[126]. - The company has implemented measures to reduce noise pollution, including regular maintenance of equipment and acoustic control measures[133]. - Solid waste generated during production includes general solid waste and hazardous solid waste, with efforts made for resource recycling[134]. - The company has been operating wastewater treatment processes since 2008, with various facilities in place for environmental compliance[134]. - No administrative penalties were received due to environmental issues during the reporting period[137]. - The company has established an emergency response plan for environmental incidents, with regular drills conducted[135]. - All environmental protection facilities, including wastewater and waste gas treatment systems, are operating normally[137]. - The company adheres to national pollution discharge standards for wastewater, waste gas, solid waste, and noise[137]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,422[188]. - The company has a total of 291,862,944 shares, with 98.97% being unrestricted shares[182]. - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 29.04% of the shares, totaling 84,744,000[188]. - The second-largest shareholder, Wu Guoshi, owns 14.47% of the shares, amounting to 42,246,886[188]. - The company has a total of 2,996,292 restricted shares, representing 1.03% of the total shares[182]. - The top 10 shareholders include Shihezi Wanxing Equity Investment Partnership (Limited Partnership) holding 84,744,000 shares, accounting for 7.20% of total shares[189]. - The company reported no changes in the shareholding of directors, supervisors, and senior management during the reporting period[191]. - There were no changes in the controlling shareholder or actual controller during the reporting period[192][193]. - The company did not issue any preferred shares during the reporting period[196]. - The top 10 shareholders did not engage in any repurchase transactions during the reporting period[190]. Risks and Challenges - The company faces risks related to environmental regulations, which may increase operational costs if stricter standards are implemented[106]. - The company is exposed to raw material price fluctuations, particularly in the procurement of cowhide, which could adversely affect profitability[108]. - The company is addressing potential risks from the COVID-19 pandemic, which could impact domestic consumption and export of leather products[114]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the financial report, ensuring no significant omissions or misleading statements[2]. - The company has maintained its management team without any changes during the reporting period[119]. - There were no non-operating fund occupations by controlling shareholders or other related parties during the reporting period[146]. - The company did not experience any bankruptcy reorganization matters during the reporting period[151]. - There were no violations regarding external guarantees during the reporting period[147]. - The semi-annual financial report was not audited[148]. - The company did not have any major related transactions during the reporting period[161]. - There were no asset or equity acquisitions or sales related transactions during the reporting period[157]. - The company did not engage in any joint external investment related transactions during the reporting period[158]. - There were no related debt and credit transactions during the reporting period[159]. - The company did not have any major contracts or leasing matters during the reporting period[162]. Financial Management - The total amount of entrusted financial management reached 116,750,000 CNY, with an unexpired balance of 61,500,000 CNY[172]. - The annualized return on self-owned funds for bank financial products was reported at 6% for the year 2021[172]. - The company has no overdue amounts or impairment provisions for entrusted financial management[172]. - The company provided guarantees totaling 6,985.35 million CNY to shareholders and related parties[168]. - The actual guarantee total accounted for 5.51% of the company's net assets[168]. - The company approved a total external guarantee amount of 30,000 million CNY during the reporting period[168]. - The actual guarantee amount for the reporting period was 12,332.4 million CNY[168]. - The company had a guarantee amount of 5,347.05 million CNY for debt obligations exceeding 70% of the guarantee objects' asset-liability ratio[168]. - The company did not report any violations of procedures in providing guarantees[168]. - There were no indications of potential joint liability for guarantees that had not yet expired[168].

Group 1: Event Details - The company will participate in the "2021 Annual Fujian Listed Companies Investor Online Reception Day" [2] - The event will be held on May 14, 2021, from 15:30 to 17:00 [2] - The online platform for the event is provided by Shenzhen Qianjing Network Co., Ltd. [2] Group 2: Company Representatives - The attendees from the company include President Sun Huiyong, CFO Li Guangqing, and Board Secretary Wu Meili [2] - The company encourages investors to actively participate in the event [2] Group 3: Commitment to Transparency - The company and its board guarantee the authenticity, accuracy, and completeness of the disclosed information [2] - There are no false records, misleading statements, or significant omissions in the announcement [2]