Financial Performance - The company's operating revenue for Q3 2021 was CNY 418,256,696, representing an increase of 18.66% compared to CNY 352,495,821 in the same period last year[2]. - Net profit attributable to shareholders for Q3 2021 was CNY 90,859,653, an increase of 15.88% from CNY 78,409,666 in the previous year[2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 87,159,997, up 25.20% from CNY 69,618,165 in the same period last year[2]. - The basic earnings per share for Q3 2021 was CNY 0.2661, reflecting an increase of 8.04% compared to CNY 0.2463 in the previous year[4]. - The diluted earnings per share for Q3 2021 was CNY 0.2661, an increase of 9.46% from CNY 0.2431 in the previous year[4]. - Net profit increased by 40.70% to $956,339,733.80 due to higher net income for the period[9]. - Total operating revenue for the current period reached ¥1,171,018,900.93, an increase of 20.8% compared to ¥969,104,597.70 in the previous period[32]. - Net profit for the current period was ¥276,650,526.18, representing a 36.8% increase from ¥202,145,007.56 in the same period last year[35]. Assets and Liabilities - The total assets as of September 30, 2021, were CNY 2,275,759,307, a 34.69% increase from CNY 1,689,640,260 at the end of the previous year[4]. - Total non-current assets reached CNY 1,402,618,657.94, up from CNY 1,016,402,376.31, indicating a growth of about 37.9%[24]. - The total liabilities increased to ¥780,950,152.14, compared to ¥486,245,114.86 in the previous period, indicating a significant rise in financial obligations[32]. - Total current assets amounted to CNY 673,237,883.51, a slight increase from CNY 673,124,550.18[46]. - Current liabilities totaled $393,463,772.01, remaining unchanged from the previous period[49]. Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 397,593,897, an increase of 33.63% from CNY 297,541,981 in the same period last year[2]. - Operating cash inflow for the current period reached CNY 1,148,963,195.75, an increase of 32.5% compared to CNY 866,395,721.91 in the previous period[40]. - Cash inflow from financing activities was CNY 318,705,442.57, compared to CNY 185,607,185.72 in the previous period, marking a significant increase[43]. - Net cash flow from financing activities was negative at CNY -11,258,866.38, an improvement from CNY -121,686,965.32 in the previous period[43]. Expenses and Investments - Research and development expenses rose by 36.25% to $52,054,185.38 reflecting increased investment in R&D[12]. - Cash paid for purchasing goods and services rose by 42.30% to $485,579,804.22 as a result of increased cash purchases of materials[12]. - The company reported a decrease in sales expenses to ¥13,366,427.40 from ¥28,377,007.12, indicating improved cost management[32]. Shareholder Information - The number of common shareholders at the end of the reporting period was 14,080[19]. - The largest shareholder, Bi Xinde, holds 28.64% of the shares, with a total of 97,755,405 shares[20]. - The company reported no participation in financing or securities lending activities among the top 10 shareholders[20]. Market and Operational Focus - The company has maintained a strong focus on market expansion and product development, as evidenced by the increase in R&D spending[32]. - The company continues to focus on maintaining its financial stability amid changing market conditions[51]. - The third quarter report was not audited, indicating a preliminary financial assessment[53].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 752,762,204.93, representing a 22.08% increase compared to CNY 616,608,775.99 in the same period last year[26]. - The net profit attributable to shareholders of the listed company reached CNY 185,790,873.08, a 53.24% increase from CNY 121,244,454.05 in the previous year[26]. - The net cash flow from operating activities was CNY 271,018,678.53, up 44.07% from CNY 188,120,514.42 in the same period last year[26]. - Basic earnings per share were CNY 0.5514, reflecting a 43.48% increase from CNY 0.3843 in the previous year[26]. - Total assets at the end of the reporting period were CNY 1,972,631,915.79, a 16.75% increase from CNY 1,689,640,259.82 at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company were CNY 1,403,493,766.55, up 16.63% from CNY 1,203,395,144.96 at the end of the previous year[26]. - The weighted average return on net assets was 14.33%, an increase of 1.73% compared to 12.60% in the previous year[26]. - The gross profit margin for the main business increased to 38.66%, up from the previous year's margin[80]. - The sales revenue from trade products surged by 233.80% to CNY 61,771,069.21, compared to CNY 18,505,267.32 in the same period last year[77]. - The company's export revenue reached CNY 418,329,174.43, accounting for 55.57% of total revenue, with a year-on-year growth of 27.50%[77]. Risks and Challenges - The company faces risks including raw material price fluctuations, market competition, and potential impacts from COVID-19[5]. - The company faces significant market competition risks, which may impact sales and profitability due to the overall economic environment[105]. - Raw material price volatility poses a risk to production costs, with the company actively adjusting procurement strategies to mitigate this impact[105]. - Environmental protection regulations may increase operational costs, and the company is committed to enhancing its environmental management systems[106]. - Safety production risks are present due to the nature of materials used in production, and the company has implemented measures to prevent accidents[106]. - The company is exposed to policy risks that could affect operational performance, particularly in the cellulose ether industry[107]. - Capital expenditures for project construction may lead to increased depreciation and operational costs, impacting short-term profitability[107]. - The ongoing US-China trade tensions could affect export sales, with potential impacts on revenue and profit margins[109]. - The company anticipates that the international COVID-19 situation may temporarily affect product export sales, depending on the progression of global pandemic control measures[109]. Market Position and Product Development - The company is positioned as a major domestic producer of non-ionic cellulose ether, with HPMC being its largest product by sales volume, primarily used in construction, pharmaceuticals, and food sectors[43]. - The pharmaceutical-grade cellulose ether market is projected to grow significantly, driven by the increasing demand for HPMC plant capsules, which account for over 99% of the raw materials used in their production[38]. - The demand for cellulose ether in the construction materials sector is expected to increase due to rising urbanization and environmental requirements, aligning with national infrastructure development plans[37]. - The market for food-grade cellulose ether is anticipated to expand as consumer awareness of health foods increases, despite its current low usage in China's food production[43]. - The company has identified the development of new drug formulations and excipients as a key growth area, in line with national industrial development policies[42]. - The company has successfully developed and started mass production of HPMC (CR grade) for drug sustained-release applications, recognized as a provincial technology innovation project in 2012[62]. - The company has developed HPMC plant capsules, which account for over 90% of the raw materials used in HPMC plant capsules, indicating a significant market potential for this product[49]. - The company is focusing on the development of non-ionic cellulose ether products, which are essential for various applications in construction, pharmaceuticals, and food industries[44]. - The market for HPMC plant capsules is expected to grow significantly in the coming years due to their advantages of safety, stability, and environmental friendliness[50]. Environmental Compliance and Sustainability - The company is classified as a key pollutant discharge unit by the environmental protection department[128]. - Total wastewater discharge for COD is 28.52 tons, with a concentration range of 35.5 to 271 mg/L, meeting the national standards[128]. - Total wastewater discharge for ammonia nitrogen is 1.677 tons, with a concentration range of 1.85 to 10.8 mg/L, also meeting the national standards[128]. - Total emissions of particulate matter from waste gas are 4.440 tons, with a concentration range of 1.8 to 7.6 mg/m³, compliant with regional air pollution standards[128]. - The company has implemented advanced wastewater treatment technologies, including a four-effect desalination device, to reduce wastewater discharge and environmental impact[133]. - The company has no exceedances in pollutant emissions, demonstrating compliance with relevant environmental standards[128]. - Solid waste management includes recycling of general solid waste and proper disposal of hazardous waste through authorized companies[134]. - Noise control measures have been implemented, including indoor layout adjustments and sound insulation, to mitigate noise from production processes[134]. - The company emphasizes environmental protection through improved organizational structure and continuous investment in pollution control facilities[132]. - The company’s wastewater treatment station utilizes an "anaerobic + aerobic" process to ensure compliance with national discharge standards[134]. - The company has completed environmental impact assessments for all fundraising investment projects and other ongoing projects, meeting relevant environmental protection requirements[137]. - The company has no administrative penalties related to environmental issues during the reporting period[137]. - The company emphasizes environmental protection and sustainable development, with no incidents of exceeding emissions standards or major safety and environmental accidents in the first half of 2021[142]. Corporate Governance and Shareholder Relations - The company has established an interactive platform with investors to ensure fair and timely information disclosure, protecting the rights of shareholders and creditors[138]. - The company has implemented various welfare measures to create a comfortable working environment for employees, ensuring their rights are protected[138]. - The company actively participates in social welfare and charity activities, supporting local education, culture, science, health, and poverty alleviation[143]. - The annual shareholders' meeting had a participation rate of 50.86% on April 7, 2021[113]. - The company plans not to distribute cash dividends or issue bonus shares for the semi-annual period[115]. - The company has not engaged in any significant related party transactions during the reporting period[156]. - The company has not experienced any major lawsuits or arbitration matters during the reporting period[154]. - The company has not incurred any non-compliance external guarantees during the reporting period[149]. - The total guarantee amount approved during the reporting period is 80,000, with an actual occurrence of 7,200[173]. - The actual guarantee balance at the end of the reporting period is 5,100, which represents 3.63% of the company's net assets[177]. - The company has no entrusted financial management during the reporting period[181]. - There are no significant contracts related to daily operations during the reporting period[182]. - The company has not provided guarantees in violation of regulations during the reporting period[180]. - The company has no significant matters related to subsidiaries during the reporting period[186]. Equity Incentive Plan - The first phase of the equity incentive plan includes 85 participants, with 82 meeting the conditions for unlocking their restricted shares[121]. - A total of 2.09088 million restricted shares were unlocked, accounting for 1.0978% of the company's total share capital[121]. - The second phase of the equity incentive plan saw 1.98144 million restricted shares unlocked, representing 1.0412% of the total share capital[122]. - The third phase of the equity incentive plan allowed for the unlocking of 4.465152 million restricted shares, which is 1.3080% of the total share capital[124]. - The first phase of the equity incentive plan saw one participant's 15,360 restricted shares repurchased and canceled due to personal reasons[195]. - The third release period of the first phase of the equity incentive plan allowed 446.5152 thousand shares to be listed for trading on June 23, 2021, involving 72 participants[194]. - The total number of restricted shares held by shareholder Bi Yudong increased to 18,085,104 shares after the release of 7,446,807 shares[196]. - Shareholder Yang Chao had 0 restricted shares remaining after the release of 26,112 shares on June 23, 2021[196]. - Shareholder Tan Zaiying's restricted shares increased from 384,000 to 652,800 shares, with an additional 268,800 shares released on June 23, 2021[199]. - The company’s equity incentive plan has resulted in significant changes to the shareholding structure and earnings per share metrics[195].

Financial Performance - The company's operating revenue for Q1 2021 was ¥329,138,210.19, representing a 24.84% increase compared to ¥263,642,943.19 in the same period last year[10] - Net profit attributable to shareholders for Q1 2021 was ¥79,839,112.59, a significant increase of 107.50% from ¥38,476,155.10 in the previous year[10] - The net profit after deducting non-recurring gains and losses was ¥78,487,879.86, up 95.61% from ¥40,124,481.80 year-on-year[10] - Basic earnings per share for Q1 2021 were ¥0.4028, reflecting a 94.31% increase from ¥0.2073 in the same quarter last year[10] - The net profit attributable to shareholders for the first half of 2021 is projected to be approximately 181.87 million yuan, representing a 50% increase compared to the same period last year[37] - The basic earnings per share is expected to be 0.5398 yuan, reflecting a growth of 40.46% year-on-year[37] - The company anticipates achieving 50%-70% of its performance forecast due to enhanced market development efforts and significant improvements in product structure and application technology[37] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,757,382,441.56, which is a 4.01% increase from ¥1,689,640,259.82 at the end of the previous year[10] - Total assets increased to CNY 1,757,382,441.56, up from CNY 1,689,640,259.82, representing a growth of approximately 4.1%[54] - Non-current assets totaled CNY 1,071,975,586.22, an increase from CNY 1,016,402,376.31, reflecting a growth of about 5.5%[54] - Current liabilities decreased to CNY 383,336,902.16 from CNY 393,463,772.01, a reduction of approximately 2.9%[54] - Total liabilities amounted to CNY 472,520,884.60, down from CNY 486,245,114.86, indicating a decrease of around 2.8%[54] - Total liabilities decreased to ¥353,284,610.23 from ¥358,715,340.18, a reduction of approximately 1.2%[64] - Owner's equity increased to CNY 1,284,861,556.96 from CNY 1,203,395,144.96, showing a growth of about 6.8%[57] - Total equity increased to ¥1,171,915,854.44, up from ¥1,121,405,691.06, marking a growth of 4.5%[64] Cash Flow - The net cash flow from operating activities was ¥82,389,348.13, showing a slight increase of 0.32% from ¥82,126,496.95 in the previous year[10] - Cash inflow from operating activities totaled 331,235,772.37, compared to 253,002,110.21 in the previous period, reflecting an increase of about 30.9%[88] - The cash flow from financing activities resulted in a net outflow of 51,720,709.13, compared to a net outflow of 61,801,632.70 in the previous period, indicating an improvement[91] - The cash and cash equivalents at the end of the period amounted to 128,805,665.42, down from 130,533,499.44 in the previous period[91] - The company received 6,527,558.45 in tax refunds, compared to 1,271,956.03 in the previous period, marking a significant increase[84] - The company paid 23,187,763.06 in taxes, up from 15,427,813.20 in the previous period, reflecting a rise of approximately 50.5%[88] Expenses - Total operating costs amounted to ¥238,460,201.54, up from ¥216,433,408.97, reflecting a rise of 10.9%[69] - Research and development expenses increased by 34.14% to CNY 14,577,110.46 due to higher R&D investments[23] - Financial expenses surged by 904.11% to CNY 1,732,088.16 mainly due to increased foreign exchange gains in the previous year[23] - Tax expenses increased by 91.43% to CNY 14,005,098.51 as a result of higher profits[26] - Cash paid for purchasing goods and services increased by 62.42% to CNY 159,895,998.10 due to higher material purchases[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,269[14] - The company reported a significant increase in retained earnings, which reached ¥599,849,217.58, up from ¥550,696,588.34, reflecting a growth of 8.9%[64] Inventory and Receivables - Accounts receivable decreased by 35.28% to CNY 2,520,960.95 due to the maturity and payment of commercial acceptance bills[22] - Other receivables increased by 164.91% to CNY 2,949,436.90 primarily due to an increase in deposits paid[22] - Inventory rose by 45.41% to CNY 159,800,057.68 as a result of increased stock of finished products[22] - The accounts receivable rose to approximately 223.32 million yuan, compared to 219.19 million yuan at the end of 2020[48] - Inventory increased significantly to approximately 159.80 million yuan, up from 109.90 million yuan at the end of 2020[48] Other Financial Information - The company reported a fair value change loss of 175,800 yuan for its derivative investments during the reporting period[36] - The company has established internal control measures for its forward foreign exchange settlement business to mitigate risks associated with currency fluctuations[36] - The company has not engaged in any entrusted financial management during the reporting period[40] - The company reported a credit impairment loss of -175,800.00, compared to -2,085,500.00 in the previous period, indicating a decrease in losses[82] - The company adjusted its financial statements to reflect the new leasing standards, impacting the reporting of long-term assets[96] - The company has adjusted its reporting of long-term lease assets to comply with new accounting standards, impacting the presentation of financial statements[108]

Financial Performance - The company's operating revenue for 2020 was ¥1,308,887,972.69, representing a 17.62% increase compared to ¥1,112,844,778.13 in 2019[23] - Net profit attributable to shareholders for 2020 was ¥252,234,001.26, a 60.02% increase from ¥157,621,906.31 in 2019[23] - The net profit after deducting non-recurring gains and losses was ¥239,408,919.86, up 58.19% from ¥151,347,068.14 in 2019[23] - The net cash flow from operating activities reached ¥387,177,260.51, an increase of 84.15% compared to ¥210,256,274.56 in 2019[23] - Basic earnings per share for 2020 were ¥1.35, reflecting a 58.82% increase from ¥0.85 in 2019[23] - Operating profit increased by 58.20% to CNY 294.57 million, while net profit attributable to shareholders rose by 60.02% to CNY 252.23 million[84] - The cellulose ether division generated revenue of CNY 1,012.66 million, contributing significantly to overall performance[84] - Total operating revenue for the year 2020 was approximately CNY 1.31 billion, representing a year-on-year increase of 17.62% compared to CNY 1.11 billion in 2019[96] - Main business revenue accounted for 99.88% of total revenue, with a significant increase of 17.70% year-on-year[96] - Overseas revenue reached CNY 671.99 million, marking a 26.13% increase from the previous year, and accounted for 51.34% of total revenue[97] Market and Industry Insights - The market demand for cellulose ether is expected to grow due to increased urbanization and infrastructure development in China[41] - The pharmaceutical-grade cellulose ether market shows significant potential, particularly for HPMC used in plant capsules, which accounts for over 90% of the raw materials[42] - The demand for pharmaceutical-grade HPMC is expected to grow significantly as plant capsules become a key direction for the hollow capsule industry upgrade in China[43] - The market for pharmaceutical-grade cellulose ether, crucial for controlled-release formulations, is dominated by a few international companies, which limits its application in China's pharmaceutical industry[45] - The food-grade cellulose ether market in China is still in the promotion stage, with low usage rates due to high prices and limited consumer awareness[46] Production and Technological Advancements - The company has developed a full range of non-ionic cellulose ether products over 20 years, becoming the largest supplier in China and the fourth largest globally[47] - The company’s production capabilities and technological advancements position it well to meet the growing demand for cellulose ethers in both domestic and international markets[47] - The company has developed a large-scale, continuous production process for HPMC plant capsules, which are considered a safer and more stable alternative to animal gelatin capsules[53] - The company’s cellulose ether products have achieved quality standards comparable to international brands, enabling them to replace imported products[71] - The cellulose ether reconstruction project, with a capacity of 20,000 tons/year, was put into trial production in September 2018, utilizing advanced equipment and fully automated control systems[67] Research and Development - Research and development expenses increased by 28.24% to ¥58,703,197.37, driven by increased investment in R&D[111] - The number of R&D personnel increased by 21.21% to 160, with R&D personnel accounting for 12.32% of the total workforce[111] - The company has been recognized as a high-tech enterprise since 2009 and has passed several re-evaluations, indicating a strong commitment to R&D and innovation[69] Shareholder and Dividend Policies - The company plans to distribute 7 shares for every 10 shares held as a capital reserve, with no cash dividends declared[6] - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profit to be distributed as cash dividends annually, provided certain conditions are met[154] - The company has not issued any cash dividends for the 2020 fiscal year, reflecting a focus on stock dividends instead[158] - The company’s cumulative cash dividends over the last three years must not be less than 30% of the average annual distributable profit[154] Investments and Financial Management - The company invested CNY 305 million to upgrade production lines and enhance smart manufacturing capabilities, increasing plant capsule production capacity to 35 billion capsules per year[85] - The company has committed to fulfilling all promises made by its actual controllers and shareholders during the reporting period[166] - The total amount raised through a private placement was RMB 149,999,987.70, with a net amount of RMB 146,688,064.78 after deducting issuance costs[138] - The company is in a rapid construction phase for its cellulose ether project, requiring significant self-funding for ongoing investments[161] Environmental and Operational Efficiency - The company emphasizes environmental protection, achieving significant reductions in water and energy consumption through technological upgrades[75] - The company has established internal control measures to mitigate risks associated with foreign exchange fluctuations and customer defaults[133] - The company will enhance internal controls and information management systems to integrate various business units for better resource sharing[149]

Financial Performance - Net profit attributable to shareholders was ¥78,409,666.04, representing an increase of 82.05% year-on-year[10]. - Operating revenue for the period was ¥352,495,821.71, reflecting a year-on-year growth of 18.80%[10]. - Basic earnings per share increased to ¥0.4187, a rise of 80.32% year-on-year[10]. - The net profit after deducting non-recurring gains and losses was ¥69,618,164.64, up 64.57% year-on-year[10]. - The estimated cumulative net profit for the year is projected to be between 236.43 million and 283.72 million RMB, representing a growth of 50% to 80% compared to the previous year's 157.62 million RMB[36]. - The net profit for the current period is CNY 60,631,152.28, compared to CNY 27,913,425.98 in the previous period, indicating a significant increase of approximately 117.5%[80]. - The total profit for the current period was ¥237,747,121.79, compared to ¥148,278,781.16 in the previous period, marking a 60.2% increase[89]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,541,901,608.99, an increase of 4.05% compared to the end of the previous year[10]. - Total current assets as of September 30, 2020, amount to 576.66 million RMB, a decrease from 629.55 million RMB at the end of 2019[47]. - Total non-current assets as of September 30, 2020, are valued at 965.25 million RMB, up from 852.38 million RMB at the end of 2019[50]. - Total liabilities are reported at 536.82 million RMB, slightly down from 547.99 million RMB at the end of 2019[53]. - The company's equity attributable to shareholders is 1.01 billion RMB, an increase from 914.49 million RMB at the end of 2019[56]. - The total liabilities to equity ratio is approximately 0.57, indicating a balanced capital structure[124]. Cash Flow - The net cash flow from operating activities was ¥109,421,466.71, up 66.59% compared to the same period last year[10]. - Cash received from government subsidies and bid deposits increased by 158.86% to ¥28,867,949.69[29]. - Net cash flow from operating activities reached ¥297,541,981.13, compared to ¥146,821,422.10 in the previous period, indicating a significant increase of 102.5%[99]. - Cash outflow for investment activities surged to ¥401,637,314.30 from ¥127,585,713.88, reflecting a rise of 214.5%[102]. - The company reported a net cash decrease of ¥85,438,222.61, contrasting with a net increase of ¥30,675,332.32 in the previous period[102]. Shareholder Information - The total number of shareholders at the end of the reporting period was 9,179[14]. - The largest shareholder, Bi Xinde, holds 30.02% of the shares, amounting to 57,099,161 shares[14]. Expenses - Total operating costs amounted to CNY 267,849,230.38, up from CNY 246,080,586.48 year-over-year[68]. - Research and development expenses increased to CNY 13,713,832.77, compared to CNY 11,210,638.98 in the same period last year[68]. - Financial expenses increased by 46.75% to ¥10,329,164.96, mainly due to higher exchange losses[27]. - The income tax expense for the current period is CNY 10,418,681.86, compared to CNY 5,026,617.54 in the previous period, reflecting an increase of approximately 107.8%[78]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[89].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 616,608,775.99, representing a 15.89% increase compared to the same period last year[24]. - The net profit attributable to shareholders of the listed company was CNY 121,244,454.05, a 50.71% increase year-on-year[24]. - The net cash flow from operating activities reached CNY 188,120,514.42, marking a significant increase of 131.85% compared to the previous year[24]. - Basic earnings per share rose to CNY 0.6534, reflecting a 49.01% increase from the same period last year[24]. - The company's main business revenue reached CNY 616.43 million, accounting for 99.97% of total revenue, with a year-on-year increase of 16.23%[60]. - Export revenue amounted to CNY 328.09 million, representing 53.21% of total revenue, with a year-on-year growth of 22.98%[63]. - The gross profit margin for the main business increased by 4.26% to 37.55% compared to the same period last year[60]. - The company expects a cumulative net profit of ¥18,527.9 million for the period from the beginning of the year to the next reporting period, representing a growth of 50% compared to the previous year's ¥12,351.93 million[87]. - The basic earnings per share are projected to be ¥0.9949, an increase of 48.34% from ¥0.6707 in the previous year[87]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,528,861,972.38, an increase of 3.17% from the end of the previous year[24]. - The net assets attributable to shareholders of the listed company were CNY 925,827,021.39, showing a 1.24% increase compared to the previous year[24]. - The total assets of the company included cash and cash equivalents of CNY 195.97 million, which accounted for 12.82% of total assets, up from 7.99% in the previous year[64]. - The company’s long-term borrowings decreased by 5.96% to CNY 75.10 million compared to the previous year[64]. - The company has restricted assets totaling ¥59,504,714.62, including cash of ¥13,113,347.94 and intangible assets of ¥41,077,001.24 due to long-term loan pledges[69]. Research and Development - The company has developed capabilities in producing high-end non-ionic cellulose ethers, which are widely used in construction, pharmaceuticals, food, and daily chemicals[35]. - The company continues to engage in the research and development of graphite chemical equipment and environmentally friendly functional monomers, diversifying its product offerings[39]. - The company has made significant investments in R&D, with over ten technology reserves in plant capsule HPMC and other specialized products[42]. - The company's R&D investment increased by 22.09% to CNY 24.49 million compared to the same period last year[56]. Market and Product Development - The company has initiated the production of HPMC plant capsules, which are expected to meet the growing demand in the pharmaceutical industry due to their safety and stability advantages over traditional gelatin capsules[39]. - The company’s pharmaceutical-grade cellulose ethers are crucial for controlled-release formulations, with a significant market potential as domestic demand for plant capsules is expected to rise[39]. - The company has established a strong brand reputation in the cellulose ether market, recognized as a "Shandong Famous Brand" and a "Shandong Province Famous Trademark"[46]. - The company has a diverse customer base, with products sold to over 70 countries, including major clients in the construction and pharmaceutical industries[46]. Environmental and Social Responsibility - The company has implemented advanced wastewater treatment technologies, significantly reducing water consumption and environmental impact[44]. - The company is committed to poverty alleviation, focusing on education and employment opportunities for impoverished individuals[141]. - In 2020, the company plans to continue its collaboration with local governments to advance targeted poverty alleviation efforts[143]. - The company has taken measures to mitigate environmental risks associated with production, including improving pollution control facilities[90]. Risks and Challenges - The company faces risks including raw material price fluctuations, market competition, and impacts from the COVID-19 pandemic[6]. - The company has faced risks related to market competition and raw material price fluctuations, which may impact sales and profitability[88][90]. - The company is actively responding to the COVID-19 pandemic by implementing safety measures and resuming operations since February 10, 2020, while monitoring the impact on export sales[92]. Shareholder Structure and Stock Incentives - The total number of common shareholders at the end of the reporting period was 8,198[170]. - The largest shareholder, Bi Xinde, holds 30.01% of the shares, totaling 57,099,161 shares[170]. - The company has implemented an employee stock incentive plan, which was approved in 2018, to enhance employee motivation and retention[104]. - The stock incentive plan included significant allocations to key executives, with the largest allocation being 268,800 shares to Yang Bingang, valued at 115,200 million RMB[158]. - The total value of stock incentives granted in the first half of 2020 was approximately 1,200 million RMB, reflecting a commitment to long-term growth[161]. Corporate Governance - The company has not engaged in any major related party transactions during the reporting period[112]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[178]. - The company’s financial report for the first half of 2020 has not been audited[199].

Financial Performance - The company's operating revenue for Q1 2020 was ¥263,642,943.19, representing a 13.45% increase compared to ¥232,385,596.27 in the same period last year[10] - The net profit attributable to shareholders was ¥38,476,155.10, a 34.96% increase from ¥28,508,610.55 in the previous year[10] - The basic earnings per share (EPS) was ¥0.2073, up 33.40% from ¥0.1554 in the previous year[10] - Net profit for the current period was ¥39,920,114.79, up 36.3% from ¥29,283,097.86 in the same period last year[66] - Operating profit for the current period was ¥48,675,633.42, a 43.7% increase from ¥33,845,931.97 in the previous period[66] - The total profit for the current period was ¥47,236,093.69, an increase of 42.1% from ¥33,240,359.80 in the previous period[66] - The total comprehensive income amounted to CNY 20,827,712.38, an increase from CNY 15,683,905.88 in the previous period, reflecting a growth of approximately 32.3%[76] Cash Flow - The net cash flow from operating activities surged to ¥82,126,496.95, marking a significant increase of 1,582.91% compared to ¥4,880,023.42 in the same period last year[10] - Cash inflow from operating activities reached CNY 253,002,110.21, compared to CNY 199,928,066.55 in the prior period, indicating an increase of about 26.5%[77] - Cash outflow for purchasing goods and services was CNY 98,444,709.65, down from CNY 120,718,452.89, showing a decrease of approximately 18.4%[80] - The cash flow from investment activities showed a net outflow of CNY 63,404,684.72, worsening from a net outflow of CNY 29,215,293.68 in the previous period[84] - The cash flow from financing activities resulted in a net outflow of CNY 61,801,632.70, compared to a net inflow of CNY 28,268,951.68 in the prior year[83] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,446,231,318.21, a decrease of 2.41% from ¥1,481,924,303.11 at the end of the previous year[10] - The total liabilities decreased to CNY 470,219,579.24 from CNY 547,987,574.88, representing a reduction of approximately 14.2%[48] - Current liabilities totaled CNY 327,083,366.72, down from CNY 396,034,292.72, indicating a decrease of about 17.4%[48] - Non-current liabilities decreased to CNY 143,136,212.52 from CNY 151,953,282.16, a decline of approximately 5.8%[48] - Cash and cash equivalents decreased to CNY 99,263,928.42 from CNY 172,001,098.14, a decline of approximately 42.3%[52] Shareholder Information - The company had a total of 12,646 common shareholders at the end of the reporting period[14] - The top shareholder, Bi Xinde, held 30.01% of the shares, with a total of 57,099,161 shares, of which 20,697,600 shares were pledged[14] - The total equity attributable to shareholders increased to CNY 955,117,907.95 from CNY 914,486,856.90, reflecting a growth of about 4.4%[51] Investment and Income - The company received government subsidies amounting to ¥1,407,288.61 during the reporting period[10] - Investment income rose by 1531.61% due to increased income from long-term equity investments accounted for using the equity method[26] - Cash received from investment income increased by 159.00% due to higher returns from financial investments[26] - Other income for the current period was reported at ¥1,407,288.61, down from ¥2,002,443.21 in the previous period, a decrease of 29.6%[66] - Investment income for the current period was ¥3,209,371.06, a significant increase from ¥196,700.00 in the previous period[66] Expenses - Research and development expenses increased to ¥10,867,233.99, representing a 21% rise from ¥8,985,156.11 in the previous period[66] - Tax expenses for the current period amounted to ¥7,315,978.90, up from ¥3,957,261.94 in the previous period, indicating an increase of 84.5%[66] - Financial expenses decreased by 97.34% due to increased foreign exchange gains[26] - The company reported a financial expense of ¥172,499.11, significantly lower than ¥6,494,099.94 in the previous period[66] Changes in Financial Position - Trading financial assets decreased by 100.00% due to floating losses from forward foreign exchange contracts[26] - Accounts receivable financing decreased by 43.64% primarily due to the reclassification of receivables to financial assets measured at fair value[26] - Long-term equity investments increased by 100.00% as a result of capital increase in the U.S. subsidiary[26] - Other non-current assets surged by 1307.99% due to increased prepayments for land transfer fees by a subsidiary[26] - Long-term receivables increased significantly to CNY 148,801,952.02 from CNY 95,694,679.07, representing a growth of approximately 55.5%[55] Compliance and Standards - The company reclassified inventory to contract assets and prepayments to contract liabilities as per the new revenue standards effective January 1, 2020[94] - The company has implemented new revenue recognition standards since January 1, 2020, affecting the classification of contract assets and liabilities[101] - The first quarter report was not audited, which may impact the reliability of the financial data presented[102]

Financial Performance - The company's operating revenue for 2019 was CNY 1,112,844,778.13, representing a 21.87% increase compared to CNY 913,114,502.19 in 2018[25] - The net profit attributable to shareholders of the listed company reached CNY 157,621,906.31, a significant increase of 114.72% from CNY 73,406,778.56 in the previous year[25] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 151,347,068.14, up 109.16% from CNY 72,361,040.73 in 2018[25] - The net cash flow from operating activities was CNY 210,256,274.56, an increase of 115.62% compared to CNY 97,514,530.30 in the previous year[25] - Basic earnings per share were CNY 0.8542, reflecting a 113.50% increase from CNY 0.6401 in 2018[25] - Diluted earnings per share were CNY 0.8276, up 111.45% from CNY 0.6262 in the previous year[25] - The weighted average return on net assets was 19.03%, an increase from 10.31% in 2018[25] - The operating profit reached CNY 186.20 million, representing a significant growth of 108.57% compared to the previous year[69] - The net profit attributable to shareholders of the parent company was CNY 157.62 million, an increase of 114.72% year-on-year[69] - The cellulose ether division generated revenue of CNY 861.07 million, while the graphite equipment division contributed CNY 38.26 million[69] Assets and Liabilities - Total assets at the end of 2019 reached ¥1,481,924,303.11, representing a 12.11% increase compared to the adjusted total assets of ¥1,321,806,686.28 at the end of 2018[28] - Net assets attributable to shareholders of the listed company were ¥914,486,856.90 at the end of 2019, reflecting a 20.80% increase from the adjusted net assets of ¥757,044,982.22 at the end of 2018[28] - The company's fixed assets amounted to ¥719,308,594.71, representing 48.54% of total assets[97] - The total amount of cash outflow from investment activities decreased by 45.96% to ¥135,501,956.39, indicating reduced capital expenditures[95] - The financial liabilities at the end of the period were ¥263,200, with no significant changes in asset measurement attributes during the reporting period[101] Market and Product Development - The main business focus is on the research, production, and sales of non-ionic cellulose ether products, with a strong competitive position in the domestic and global markets[43] - The company has developed a full range of construction-grade, pharmaceutical-grade, and food-grade non-ionic cellulose ether products, enhancing its market presence[43] - The construction-grade HPMC is primarily used in dry-mixed mortar applications, improving water retention and workability of construction materials[46] - The company has achieved significant growth in production technology and product quality stability, becoming the largest cellulose ether supplier in China and the fourth largest globally[43] - The market demand for HPMC plant capsules is expected to grow significantly due to increasing safety awareness and regulatory actions against substandard gelatin capsules in China[49] - The company’s cellulose ether production project has a capacity of 50 billion capsules per year, indicating substantial production capabilities[50] - The company aims to become a leading supplier in the corrosion prevention industry by expanding into the non-ferrous metal sector[73] - The cellulose ether production capacity is expected to reach 80,000 tons per year, maintaining a top three global market position[120] Research and Development - The company has established a research center for cellulose ether technology, emphasizing its commitment to innovation and development[56] - The company has received multiple high-tech enterprise certifications, reflecting its ongoing investment in research and development[56] - The company introduced nearly 20 high-end professional management and technical talents in 2019 to enhance overall management and R&D capabilities[73] - The proportion of R&D investment to operating revenue was 4.11%, up from 3.90% in the previous year[91] - R&D expenses rose by 28.45% to ¥45,774,296.59, reflecting increased investment in innovation[91] Risk Management - The company faces risks including raw material price fluctuations, market competition, and environmental risks, which are detailed in the report[8] - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, urging investors to be aware of investment risks[7] - The company is actively managing risks related to market competition, raw material price fluctuations, and environmental regulations[126][128] - The company emphasizes safety production measures to mitigate risks associated with flammable and explosive materials during manufacturing[129] - The COVID-19 pandemic has caused temporary impacts on product export sales, with the extent of the impact depending on the progress of international pandemic control measures[130] Dividend Policy - The company plans to distribute a cash dividend of CNY 4 per 10 shares, based on a total of 190,296,960 shares[8] - The company has a profit distribution policy that prioritizes cash dividends, aiming for at least 10% of distributable profits to be distributed in cash annually[137] - The cash dividend for 2018 was 2.0 CNY per 10 shares, totaling 23,812,800 CNY, which was 32.44% of the net profit attributable to shareholders[142] - The company has a policy to ensure that cash dividends account for at least 20% of the distributable profits when significant capital expenditures are planned[145] - The cash dividend distribution plan is subject to approval by the shareholders' meeting[145] Compliance and Governance - The company has committed to strict compliance with regulations regarding profit distribution proposals and timely disclosures[140] - The company’s board of directors is responsible for ensuring that minority shareholders have opportunities to express their opinions and that their rights are protected[140] - The company has maintained compliance with all commitments made regarding share reduction and other obligations during the reporting period[173] - The company has a long-term commitment to transparency and accountability in its financial disclosures[160] - There were no significant omissions or misleading statements identified in the company's financial reports[160] Subsidiary Performance - The subsidiary HERSHEY completed the installation and commissioning of the second capsule workshop, enhancing production capabilities[70] - The subsidiary Heshil Company reported a 41.40% increase in sales revenue and a 53.11% increase in net profit due to stable production line operations[118] - The subsidiary Fuchuan Company experienced a 159.84% increase in sales revenue and an 802.02% increase in net profit, attributed to production line upgrades and cost reductions[119] International Strategy - The company has expanded its customer base, with products sold to over 70 countries and regions, including Germany, France, and the United States[59] - The overseas market revenue was ¥532,793,955.77, which constituted 47.88% of total revenue, showing a growth of 22.44% compared to ¥435,162,582.94 in 2018[76] - The company plans to enhance its international strategy and diversify its operations through capital operations and market resource integration[73] - Sales revenue from exports to the U.S. accounted for no more than 4% of total revenue, indicating a relatively small exposure to U.S. trade tensions[130]

Financial Performance - Net profit attributable to shareholders increased by 73.55% to CNY 43,070,108.68 compared to the same period last year[10]. - Operating revenue rose by 24.39% to CNY 296,709,027.84 compared to the same period last year[10]. - Basic earnings per share increased by 71.62% to CNY 0.2322 compared to the same period last year[10]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 65.71% to CNY 42,302,235.33 compared to the same period last year[10]. - The company's net profit increased, leading to a 104.87% rise in income tax expenses, totaling CNY 21,796,469.66[27]. - The company reported a total profit of ¥84,655,008.22, compared to ¥58,218,856.97 in the previous period, indicating a growth of about 45%[92]. - Net profit for the current period was ¥43,923,242.62, representing a 70.7% increase from ¥25,741,881.16 in the same period last year[67]. - Net profit for the period was ¥126,482,311.50, representing a 112.3% increase from ¥59,551,679.51 in the previous period[84]. Assets and Liabilities - Total assets increased by 7.61% to CNY 1,422,355,342.40 compared to the end of the previous year[10]. - The company's total equity increased by 59.97%, reaching CNY 190,464,000.00, due to capital reserve transfers[26]. - The company's total liabilities increased by 32.31%, with short-term borrowings reaching CNY 49,428,571.40[26]. - Total liabilities decreased from CNY 549,721,828.34 to CNY 526,854,232.83, a reduction of approximately 4%[50]. - The company's total assets increased from CNY 1,286,498,150.80 to CNY 1,310,586,105.60, reflecting a growth of approximately 1.9%[62]. - The company's total liabilities amounted to CNY 375,030,032.69, indicating a stable financial position despite fluctuations in cash flow[115]. - The company’s total liabilities increased to CNY 505,519,007.31, with non-current liabilities at CNY 165,938,598.80[129]. Cash Flow - Net cash flow from operating activities surged by 156.86% to CNY 65,682,362.10 compared to the same period last year[10]. - Cash received from operating activities decreased by CNY 23,431,638.32, a decline of 67.75%, mainly due to reduced government subsidies and bid guarantees[30]. - The net cash flow from operating activities was $104,195,288.77, an increase from $57,962,076.07 in the previous period, reflecting a significant improvement[105]. - Cash flow from operating activities generated ¥146,821,422.10, a significant increase from ¥19,915,733.22 in the previous period[96]. - The total cash inflow from investment activities was $46,285,753.10, compared to $82,574,799.87 in the prior period, indicating a decrease in investment returns[106]. Shareholder Information - The company reported a total of 13,363 shareholders at the end of the reporting period[16]. - The largest shareholder, Bi Xinde, holds 29.98% of the shares, totaling 57,099,161 shares[16]. Research and Development - The company's R&D expenses increased by 33.39%, totaling CNY 31,269,906.08, reflecting higher investment in research and development[27]. - Research and development expenses rose to ¥11,210,638.98, a 20.5% increase from ¥9,303,209.96 in the previous period[64]. - R&D expenses increased to ¥23,472,230.30 from ¥20,807,438.30, representing a growth of approximately 8%[92]. Tax and Government Subsidies - The company received government subsidies amounting to CNY 3,567,410.20 during the reporting period[11]. - The company received tax refunds totaling CNY 8,152,826.88, an increase of 687.20% compared to the same period last year, primarily due to increased export tax rebates[30]. - Tax expenses increased significantly to ¥8,658,564.29, compared to ¥4,413,796.45 in the previous period, marking a 96.5% rise[67]. Future Outlook - The company expects a net profit for 2019 to increase by 50% to 130%, with an estimated range of CNY 14,681.36 million to CNY 16,883.56 million[32]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[64].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 532,077,226.57, representing a 25.43% increase compared to the same period last year[23]. - The net profit attributable to shareholders of the listed company reached CNY 80,449,225.27, a significant increase of 151.40% year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 84,022,683.55, up 169.49% from the previous year[23]. - The net cash flow from operating activities was CNY 81,139,060.00, showing a substantial increase of 1,534.65% compared to the same period last year[23]. - Basic earnings per share were CNY 0.4385, reflecting a 151.43% increase from CNY 0.1744 in the previous year[23]. - Total assets at the end of the reporting period amounted to CNY 1,400,211,257.19, a 5.93% increase from the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 832,964,310.27, which is a 10.03% increase compared to the previous year[23]. - The weighted average return on net assets was 10.14%, up from 4.63% in the same period last year[23]. - The company's revenue reached RMB 532.08 million, a year-on-year increase of 25.43%[58]. - Net profit attributable to shareholders was RMB 80.45 million, up 151.40% year-on-year[58]. - Research and development investment increased by 40.84% to RMB 20.06 million[58]. - The main business revenue from cellulose ether products increased by 48.53% to RMB 498.83 million[58]. - The company’s gross profit margin for main business revenue improved to 33.29%, an increase of 7.95% compared to the previous year[61]. Market Position and Product Development - The company has developed capabilities to produce high-end grades of cellulose ether, specifically HPMC, for construction, pharmaceutical, and food industries[34]. - The market demand for HPMC plant capsules is expected to grow significantly, driven by increasing consumer safety awareness and regulatory scrutiny on gelatin capsules[37]. - The company has established a continuous production process for HPMC plant capsules, enhancing its competitive edge in the market[37]. - The main applications of the company's products include construction materials, pharmaceuticals, and food additives, with a focus on improving product performance and resource efficiency[34]. - The company has a strong position in the cellulose ether market, with a focus on environmentally friendly additives that comply with national energy-saving and environmental protection policies[34]. - The company has a competitive advantage in the cellulose ether industry due to over a decade of research and technological accumulation[34]. - The company has over 20 technology reserves, including HPMC for pharmaceutical coatings and food additives, which help optimize product structure and maintain technological leadership[42]. - The company’s cellulose ether products meet international standards, with quality indicators reaching those of renowned international competitors, enabling the replacement of imported products[44]. - The "Heda" brand has established a high-quality image in the cellulose ether market, recognized as a "Shandong Famous Brand" and a "Shandong Province Famous Trademark"[45]. - The company has a diverse customer base, exporting products to over 60 countries, including Germany, the Netherlands, and Brazil, demonstrating a strong market presence[46]. Environmental and Social Responsibility - The company emphasizes environmental protection, achieving industrial water recycling and significantly reducing wastewater and emissions[50]. - The company has been recognized as a high-tech enterprise since 2009, with continuous R&D investments enhancing its competitive advantage[43]. - The company actively engages in poverty alleviation efforts, focusing on education and employment opportunities for impoverished families[137]. - The company collaborates with local government to implement targeted poverty alleviation programs, demonstrating a commitment to social responsibility[138]. - The company has implemented advanced wastewater treatment technologies, including a four-effect desalination device, significantly reducing wastewater discharge and resource usage[132]. - The company has passed environmental impact assessments for all fundraising projects and construction projects, ensuring compliance with relevant environmental protection standards[136]. - The company has established a comprehensive environmental monitoring plan, with testing conducted by an external agency[136]. Risks and Challenges - The company faces risks including raw material price fluctuations and market competition, which are detailed in the report[6]. - The company reported a non-operating loss of ¥3,573,458.28, primarily due to other operating income and expenses of -¥7,573,233.35[30]. - The company faces market competition risks but maintains a significant technological and scale advantage domestically, with plans to optimize main products and accelerate new product development to enhance profitability[90]. - The company is actively managing raw material price volatility risks, focusing on controlling procurement and exploring alternative materials to mitigate production cost impacts[92]. - Environmental risks are acknowledged, with the company emphasizing its commitment to improving pollution control measures and enhancing environmental management systems[92]. - The company is investing significantly in projects, which may lead to increased depreciation and operational costs, potentially impacting short-term profitability[93]. Shareholder and Equity Management - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has implemented an employee stock incentive plan to align employee interests with company performance[105]. - The company completed the registration of restricted stock under the first phase of the equity incentive plan on June 14, 2018, with the listing date set for June 15, 2018[108]. - A total of 209,088 shares of restricted stock were approved for unlocking and circulation on June 26, 2019, following the first unlocking period of the equity incentive plan[108]. - The company plans to repurchase and cancel 19,200 shares of restricted stock at a price of 5.79 CNY per share due to one incentive object leaving the company[108]. - The total guarantee amount approved for subsidiaries is 10,000 CNY, with an actual guarantee amount of 3,000 CNY during the reporting period, representing 3.60% of the company's net assets[122]. - There were no significant related party transactions or major contracts during the reporting period[109][110][124]. - The company has no violations regarding external guarantees during the reporting period[123]. - The first unlocking conditions of the equity incentive plan were met, allowing 82 out of 85 incentive objects to unlock their shares[108]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[110]. - The company has no significant environmental protection issues reported during the period[125]. - The company’s independent directors confirmed the legality and effectiveness of the equity incentive plan adjustments[108]. Operational Efficiency and Investments - The company has not reported any significant changes in fixed assets, intangible assets, or construction in progress during the reporting period[39]. - The company continues to engage in the research and production of graphite chemical equipment and fine chemical products, expanding its product portfolio[38]. - The company invested in an automated warehouse with a capacity of 5 billion capsules, enhancing storage efficiency[57]. - Financial expenses increased by 206.55% to RMB 7.00 million, primarily due to interest expenses from loans related to the cellulose ether renovation project[58]. - Cash and cash equivalents at the end of the reporting period amounted to ¥111,864,583.36, representing 7.99% of total assets, a decrease of 1.83% from the previous year[66]. - Accounts receivable increased to ¥219,288,517.11, accounting for 15.66% of total assets, an increase of 0.65% year-on-year[66]. - Inventory decreased to ¥141,642,183.46, making up 10.12% of total assets, down by 1.11% compared to the same period last year[66]. - Fixed assets rose significantly to ¥705,988,885.91, representing 50.42% of total assets, an increase of 25.25% due to the completion of a cellulose ether renovation project[66]. - Short-term borrowings decreased to ¥108,000,000.00, accounting for 7.71% of total assets, down by 3.77% year-on-year[66]. - Long-term borrowings decreased to ¥152,142,857.16, representing 10.87% of total assets, a decrease of 2.89% from the previous year[66]. - Total investment during the reporting period was ¥40,209,677.45, a significant decrease of 71.43% compared to ¥140,729,807.23 in the same period last year[72]. - The subsidiary Heershi Company reported a 53.69% increase in sales revenue and a 48.11% increase in net profit, attributed to stable production line operations and improved product recognition[86]. - Subsidiary Fuchuan Company reported a sales revenue increase of 227.65% year-on-year and a net profit increase of 535.95%, attributed to production line upgrades, technology updates, increased output and sales volume, higher product prices, and reduced production costs[88]. - For the first three quarters of 2019, the company expects a net profit increase of over 50% year-on-year, with the net profit range for shareholders estimated between ¥10,227.35 million and ¥11,363.72 million, compared to ¥5,681.86 million in the same period of 2018[89].