Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥305.51 million, representing a 35.14% increase compared to ¥226.06 million in the same period last year[21]. - The net profit attributable to shareholders was approximately ¥50.47 million, up 13.34% from ¥44.53 million in the previous year[21]. - The net profit after deducting non-recurring gains and losses was approximately ¥47.06 million, reflecting a 19.34% increase from ¥39.44 million year-on-year[21]. - The total revenue for the period reached ¥305,509,104.99, a year-on-year increase of 35.14% from ¥226,061,870.45[39]. - The company's net profit attributable to shareholders was CNY 50,470,279.12, reflecting a year-on-year increase of 13.34%[32]. - The total profit for the first half of 2021 was CNY 62,368,184.17, up from CNY 52,857,927.54 in the previous year, reflecting a growth of approximately 18%[124]. - The company's operating profit for the first half of 2021 was CNY 60,515,727.91, compared to CNY 52,866,705.74 in the same period of 2020, marking an increase of around 14.5%[124]. - The total comprehensive income for the first half of 2021 was CNY 54,879,015.34, compared to CNY 44,924,674.36 in the first half of 2020, showing an increase of approximately 22.2%[124]. Cash Flow and Investments - The net cash flow from operating activities decreased by 12.34% to approximately ¥34.16 million, down from ¥38.97 million in the same period last year[21]. - The company's cash and cash equivalents increased by 390.49% to CNY 71,873,222.98, attributed to structured deposits[37]. - The total cash inflow from operating activities was CNY 271,299,519.87, compared to CNY 189,077,105.00 in the first half of 2020, reflecting a growth of approximately 43.5%[131]. - The net cash inflow from investment activities for the first half of 2021 was CNY 110,980,025.39, a significant improvement from a net outflow of CNY -2,680,557.78 in the previous year[133]. - The net cash outflow from investment activities was CNY 268,301,159.62, compared to CNY 12,568,252.33 in the previous year, indicating a substantial increase in investment expenditures[132]. - The cash inflow from sales of goods and services was CNY 118,272,931.21, an increase from CNY 94,492,801.84 in the first half of 2020[133]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥1.41 billion, an increase of 11.29% from ¥1.26 billion at the end of the previous year[21]. - The company's total liabilities as of June 30, 2021, amounted to CNY 239.53 million, an increase of 25.2% from CNY 191.35 million at the end of 2020[115]. - The equity attributable to shareholders of the parent company decreased to CNY 1,013.96 million from CNY 1,042.20 million, a decline of 2.7%[115]. - The company's total equity as of June 30, 2021, was CNY 1,165.58 million, an increase of 8.8% from CNY 1,071.17 million at the end of 2020[115]. - The company's cash and cash equivalents increased to CNY 285,833,238.68 from CNY 213,960,015.70, reflecting a growth of 33.5%[112]. Research and Development - The company’s R&D investment increased by 79% to CNY 10,303,921.03, driven by new projects from subsidiaries[37]. - Research and development expenses increased to CNY 10.30 million, representing a 78.5% rise from CNY 5.76 million in the previous year[122]. - Research and development expenses for the first half of 2021 amounted to CNY 7,079,347.24, up from CNY 5,756,485.61 in the first half of 2020, which is an increase of approximately 23%[127]. Market and Sales Performance - The sales volume of industrial detonators reached 31,224,850 units, up 2.3% year-on-year, while the sales of digital electronic detonators surged by 110.2% to 3,933,040 units[32]. - The company’s industrial explosives sales reached 204,360 tons, marking a year-on-year growth of 4.76%[30]. - Revenue from industrial explosives was ¥117,108,821.73, representing a 49.99% increase compared to ¥78,077,603.92 in the same period last year[39]. - The blasting service segment saw revenue growth of 64.81%, totaling ¥40,227,865.42, up from ¥24,408,446.56[39]. - Revenue from detonators was ¥126,818,503.24, reflecting a 29.80% increase from ¥97,704,488.47[41]. Risks and Challenges - The company acknowledges risks including macroeconomic and policy risks, safety production risks, rising raw material prices, and intense market competition[5]. - The company faces risks from rising raw material prices, particularly ammonium nitrate, which has seen continuous price increases[60]. - The company has not experienced any major safety incidents since its establishment, despite operating in a high-risk industry[60]. Corporate Governance and Compliance - The company has not engaged in any derivative investments during the reporting period[57]. - The semi-annual financial report was not audited[76]. - There were no significant litigation or arbitration matters during the reporting period[79]. - The company has not disclosed any significant changes in its major controlling or participating companies during the reporting period[59]. - The company has established an emergency response plan for environmental incidents and conducts regular drills[69]. Shareholder Information - The company had a total of 200 million shares outstanding, with 75% being restricted shares[98]. - The largest shareholder, Qin Yuezhong, holds 30.60% of the shares, totaling 61,200,000 shares[100]. - The second largest shareholder, Changzhi Fangyuan Investment Co., Ltd., holds 26.58%, totaling 53,150,000 shares[100]. - Total number of common shareholders at the end of the reporting period is 17,528[100]. Miscellaneous - The company actively participates in social responsibility initiatives, including poverty alleviation efforts in local villages[70]. - The company has a diversified operational structure with multiple subsidiaries engaged in various aspects of the explosive industry[150]. - The company is committed to adhering to the accounting standards set by the Ministry of Finance, ensuring the accuracy of its financial reporting[152].

Financial Performance - The company's operating revenue for Q1 2021 was ¥97,311,052.74, representing a 56.06% increase compared to ¥62,356,284.11 in the same period last year[9] - The net profit attributable to shareholders was ¥3,327,127.49, up 7.83% from ¥3,085,654.43 year-on-year[9] - The net profit after deducting non-recurring gains and losses reached ¥1,569,212.33, a significant increase of 245.13% compared to a loss of ¥1,081,242.14 in the previous year[9] - Total revenue for Q1 2021 reached CNY 97,311,052.74, a 56% increase compared to CNY 62,356,284.11 in Q1 2020[20] - Total operating income for the first quarter was CNY 49,875,160.36, an increase from CNY 30,558,447.08 in the previous year, representing a growth of approximately 63.2%[52] - Net profit for the first quarter reached CNY 3,128,765.51, compared to CNY 2,884,382.41 in the same period last year, reflecting an increase of about 8.5%[49] - The total profit for the first quarter was CNY 4,293,414.32, compared to CNY 3,603,660.36 in the same period last year, representing an increase of about 19.2%[49] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥1,379,508,889.12, reflecting a 9.27% increase from ¥1,262,524,644.20 at the end of the previous year[9] - The total assets as of March 31, 2021, amounted to CNY 1,379,508,889.12, compared to CNY 1,262,524,644.20 at the end of 2020, reflecting an increase of about 9.27%[42] - The total liabilities decreased to CNY 185,081,694.20 from CNY 191,351,385.50, indicating a reduction of approximately 3.52%[41] - The total current liabilities decreased to CNY 155,171,892.88 from CNY 161,401,684.18, a reduction of about 3.93%[41] Cash Flow - The net cash flow from operating activities was -¥11,776,955.98, a decrease of 21.76% compared to -¥9,672,602.92 in the same period last year[9] - The net cash flow from operating activities was -11,776,955.98 CNY, compared to -9,672,602.92 CNY in the previous period, indicating a decline in operational performance[57] - Cash inflow from financing activities was 24,000,000.00 CNY, with a net cash flow from financing activities of 24,000,000.00 CNY, compared to -1,453,546.56 CNY in the previous period[58] - The net cash flow from investment activities was -12,585,496.82 CNY, compared to -5,928,228.01 CNY in the previous period, reflecting increased investment outflows[58] Expenses - Operating costs increased by 59% to CNY 60,365,635.87 in Q1 2021 from CNY 38,015,482.93 in Q1 2020, driven by higher sales volume[20] - The total operating costs rose to CNY 96,610,792.57, compared to CNY 63,332,684.92 in the previous year, which is an increase of approximately 52.5%[48] - R&D expenses rose by 88% to CNY 4,141,766.50 in Q1 2021, reflecting new R&D projects initiated by subsidiaries[20] - Research and development expenses increased to CNY 4,141,766.50 from CNY 2,203,957.47, marking an increase of about 88.4%[48] - The company's tax expenses for the quarter were CNY 1,164,648.81, compared to CNY 719,277.95 in the previous year, reflecting an increase of about 62.0%[49] Shareholder Information - The total number of shareholders at the end of the reporting period was 20,046, with the top ten shareholders holding significant stakes[13] - The company did not engage in any repurchase transactions during the reporting period[14] Government Subsidies and Other Income - The company received government subsidies amounting to ¥2,181,452.57 during the reporting period, which are closely related to its business operations[10] - The company reported a significant decrease in other income, down 83% to CNY 181,452.57, due to reduced government subsidies received[21] - Other income for the quarter was CNY 181,452.57, a decrease from CNY 1,096,676.42 in the previous year, indicating a decline of approximately 83.5%[48] Investments - Long-term equity investments increased by 183.66% to CNY 30,889,588.55 as of March 31, 2021, attributed to new investment companies expanding into military business[18] - The company reported a total cash management investment of 39,500,000 RMB, with an unexpired balance of 36,865,000 RMB[33] - The company has invested 12,700,000 RMB from its own funds and 26,800,000 RMB from raised funds in bank wealth management products[33] Miscellaneous - The company has not reported any significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[34] - There were no major contracts or significant operational changes reported for the first quarter of 2021[32] - The company has not experienced any expected inability to recover principal or other impairment risks in its entrusted financial management[33] - The company has not engaged in any research, communication, or interview activities during the reporting period[35]

Financial Performance - The company's operating revenue for 2020 was CNY 556,401,246.98, representing an increase of 11.24% compared to CNY 500,187,591.56 in 2019[15]. - The net profit attributable to shareholders for 2020 was CNY 96,910,273.70, a growth of 26.97% from CNY 76,324,557.46 in 2019[15]. - The net profit after deducting non-recurring gains and losses was CNY 83,569,907.52, up 13.87% from CNY 73,390,584.34 in 2019[15]. - The net cash flow from operating activities was CNY 103,172,653.77, reflecting a 9.92% increase from CNY 93,859,350.71 in 2019[15]. - The total assets at the end of 2020 reached CNY 1,262,524,644.20, a significant increase of 54.29% from CNY 818,298,942.83 at the end of 2019[15]. - The net assets attributable to shareholders increased to CNY 1,042,203,636.53, marking a 69.99% rise from CNY 613,087,691.91 in 2019[15]. - The basic earnings per share for 2020 was CNY 0.600, up 17.65% from CNY 0.510 in 2019[15]. - The diluted earnings per share also stood at CNY 0.600, reflecting the same growth of 17.65% compared to CNY 0.510 in 2019[15]. - The weighted average return on equity was 13.09%, slightly down from 13.23% in 2019[15]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 4 per 10 shares to all shareholders, based on a total share capital of 200,000,000 shares as of the end of 2020[3]. - The company distributed cash dividends of 80,000,000 RMB for the fiscal year 2020, representing 82.55% of the net profit attributable to ordinary shareholders[91]. - For the fiscal year 2020, the dividend distribution plan was set at 4 RMB per 10 shares, based on a total share capital of 200,000,000 shares[92]. - The cash dividend amount for 2019 was 12,000,000 RMB, which accounted for 15.72% of the net profit attributable to ordinary shareholders[91]. - The cash dividend amount for 2018 was also 12,000,000 RMB, representing 18.22% of the net profit attributable to ordinary shareholders[91]. - The company has maintained a consistent cash dividend policy over the past three years, with clear standards and procedures in place[90]. - The total distributable profit for 2020 was 220,779,234.89 RMB, with the cash dividend constituting 100% of the profit distribution[93]. - The company has not proposed any cash dividend distribution plan for the reporting period despite having positive distributable profits[91]. - The cash dividend policy aligns with the company's articles of association and has been executed in accordance with shareholder resolutions[90]. - The independent directors have actively participated in the formulation of the profit distribution policy, ensuring the protection of minority shareholders' rights[90]. - The company plans to carry forward any undistributed profits to future periods after the cash dividend distribution[93]. Operational Highlights - The company produced and sold over 70 million industrial detonators in 2020, ranking among the top three in the industry[28]. - The company received government subsidies amounting to approximately 10.85 million yuan in 2020, a significant increase from 4.47 million yuan in 2019[20]. - The cash flow from operating activities in Q3 was approximately 56.22 million yuan, indicating strong operational cash generation capabilities[19]. - The company has established advanced production lines for digital electronic detonators and high-strength detonating cords, enhancing its technological leadership in the industry[27]. - The overall profit of the civil explosives industry in 2020 was approximately 6.944 billion yuan, with a year-on-year growth of 12.20%[24]. - The production of electronic detonators increased by 96.48% in 2020, indicating a shift towards more advanced products in the industry[24]. - The company’s cash and cash equivalents increased due to higher revenue and net cash inflow from operations[28]. - The company achieved a gross margin of 49.81% for industrial detonators, 50.05% for industrial explosives, and 53.79% for blasting services[45]. - The company has a complete business chain and strong capabilities in R&D, production, sales, and storage of civil explosive materials, supporting its import and export business[31]. - The company holds 33 national patents and is recognized as a high-tech enterprise by the Shanxi Provincial Science and Technology Department[35]. Market Expansion and Strategy - The company’s subsidiary engaged in import and export activities covers over 20 countries and regions, expanding its market presence internationally[23]. - The company aims to increase its export business and become one of the top three exporters in the industry, with a focus on technology and talent output[80]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[100]. - A strategic acquisition of a local competitor is expected to be finalized by Q3 2021, which will enhance the company's product offerings and market reach[96]. - The company is focusing on promoting digital electronic detonators and expanding production capacity as a new growth point[82]. - The company plans to invest 100 million RMB in R&D for new technologies over the next three years[102]. - The company is actively monitoring market trends to adjust its strategies accordingly, ensuring competitiveness in the industry[175]. Research and Development - R&D expenses rose by 28.74% to ¥15,606,804.08 in 2020, compared to ¥12,122,349.22 in 2019, representing 2.80% of total revenue[61]. - The number of R&D personnel remained stable at 133, with a slight increase in the R&D personnel ratio from 7.09% to 7.82%[61]. - The company completed 4 out of 7 R&D projects aimed at improving safety and reliability of detonating devices in 2020[60]. - The company is investing 100 million RMB in research and development to drive innovation in its product line[118]. Corporate Governance and Compliance - The management emphasized adherence to regulatory requirements and transparency in financial disclosures, ensuring compliance with all relevant laws[105]. - The company has established an independent and complete financial accounting system in accordance with current accounting standards and regulations[198]. - The company has not faced any penalties from securities regulatory agencies in the past three years[182]. - The company has a strict remuneration decision-making process based on industry standards and job responsibilities[183]. - The board of directors consists of 7 non-independent directors and 4 independent directors, with 9 board meetings held during the reporting period[193]. - The company has established a monitoring committee to oversee the remuneration and performance of its directors and senior management[183]. - The company has a clear asset ownership structure, with no illegal occupation of assets by shareholders or related parties[197]. Social Responsibility - The company donated anti-epidemic materials worth CNY 300,000, including N95 masks and disinfectant alcohol, to the Hongze County Red Cross Society[140]. - The company provided financial assistance of CNY 27,800 from its party members for epidemic relief efforts[140]. - The company engaged in targeted poverty alleviation by supporting two impoverished villages, providing employment assistance to 2 households and medical aid to 7 households[141]. - The company invested CNY 40,000 for village appearance improvement in Shenhou Village and distributed poverty alleviation flour worth CNY 13,888 to villagers[141]. Environmental Responsibility - The company has implemented strict environmental protection measures and has not experienced any environmental pollution incidents during the reporting period[150]. - The company has established an emergency response plan for environmental incidents, which has been filed with the local environmental authority[146]. - The company conducts annual noise monitoring and biannual monitoring of organized waste gas emissions[147]. - The company has adhered to environmental laws and regulations in all new, modified, and expanded projects[146]. - The company has improved its environmental protection and pollution prevention systems in accordance with legal and evaluation requirements[150].

Financial Performance - Operating revenue for the current period reached CNY 173,393,885.27, a 20.41% increase compared to the same period last year[7] - Net profit attributable to shareholders was CNY 24,708,798.91, reflecting a growth of 13.35% year-on-year[7] - The company's operating revenue for the third quarter reached CNY 186,967,858.70, an increase of 35% compared to CNY 138,573,918.81 in the same period last year[51] - Net profit for the third quarter was CNY 72,483,474.85, representing a 14.5% increase from CNY 63,525,385.85 year-over-year[49] - The profit attributable to the parent company's shareholders was CNY 69,239,599.73, up from CNY 60,853,327.07, marking a growth of 13.9%[49] - Total comprehensive income for the current period was ¥27,558,800.49, compared to ¥23,215,510.56, reflecting an increase of about 18.5%[41] Assets and Liabilities - Total assets increased by 53.33% to CNY 1,254,687,394.51 compared to the end of the previous year[7] - The total current assets increased to CNY 821,329,611.27 from CNY 367,889,390.39, marking a growth of about 123.5% year-over-year[30] - The total liabilities of the company amounted to CNY 216,483,561.02, compared to CNY 183,086,265.93, which is an increase of about 18.2%[32] - The total current liabilities increased to CNY 187,041,298.93 from CNY 153,369,635.94, which is an increase of approximately 21.9%[32] - The company reported a total non-current asset value of CNY 433,357,783.24, down from CNY 450,409,552.44, indicating a decrease of about 3.8%[31] Cash Flow - Net cash flow from operating activities surged by 144.45% to CNY 56,223,049.28 during the reporting period[7] - Cash flow from operating activities increased by 30.88% to CNY 95,194,023.29, mainly due to increased revenue collections[16] - The net cash flow from operating activities for Q3 2020 was CNY 95,194,023.29, an increase of 30.7% compared to CNY 72,734,597.96 in Q3 2019[56] - The net cash flow from financing activities was CNY 327,247,270.65, compared to a negative cash flow of CNY 14,034,756.59 in the same period last year[57] - The total cash and cash equivalents at the end of Q3 2020 reached CNY 556,356,139.82, a substantial increase from CNY 124,280,963.51 at the end of Q3 2019[57] Shareholder Information - The total number of shareholders at the end of the reporting period was 45,668[10] - The top shareholder, Qin Yuezhong, holds 30.60% of the shares, totaling 61,200,000 shares[10] - The company issued 50 million shares at CNY 8.22 per share, raising a total of CNY 411,000,000, with a net amount of CNY 340,599,035.22 after deducting issuance costs[20] Expenses and Income - Financial expenses increased by 455.01% to CNY 218,317.88 due to exchange rate losses[15] - Investment income rose by 43.48% to CNY 14,980,698.15, attributed to the recognition of investment gains from the disposal of other equity instruments[15] - Total operating costs increased to ¥140,091,745.88 from ¥113,788,185.52, reflecting a rise of about 23.1%[39] - Research and development expenses amounted to ¥3,961,065.79, slightly up from ¥3,117,907.93, indicating an increase of approximately 27%[39] Equity and Retained Earnings - Net assets attributable to shareholders rose by 65.27% to CNY 1,013,271,090.31 year-on-year[7] - The equity attributable to the owners of the parent company rose to CNY 1,013,271,090.31 from CNY 613,087,691.91, representing an increase of approximately 65.4%[33] - The company’s retained earnings grew to CNY 373,363,254.77 from CNY 316,123,655.04, reflecting an increase of about 18.1%[33] - The company’s capital reserve increased significantly to CNY 376,310,902.07 from CNY 85,546,603.07, marking a growth of approximately 339.5%[32] Market Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[49]