Financial Performance - The company's operating revenue for 2022 was ¥1,894,498,415.87, representing a 5.39% increase compared to ¥1,797,567,793.70 in 2021[26]. - The net profit attributable to shareholders for 2022 was ¥212,841,838.34, a significant increase of 119.49% from ¥96,971,521.81 in 2021[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥214,867,387.01, up 123.33% from ¥96,208,577.94 in the previous year[26]. - The cash flow from operating activities for 2022 was ¥349,314,103.46, a remarkable increase of 419.99% compared to -¥109,164,941.48 in 2021[26]. - The basic earnings per share for 2022 was ¥2.07, reflecting a 120.21% increase from ¥0.94 in 2021[26]. - The total assets at the end of 2022 were ¥2,484,500,756.43, which is a 9.29% increase from ¥2,273,328,629.29 at the end of 2021[26]. - The net assets attributable to shareholders at the end of 2022 were ¥1,459,143,117.49, up 14.64% from ¥1,272,779,540.95 at the end of 2021[26]. - The company reported a weighted average return on equity of 15.46% for 2022, an increase of 7.64% compared to 7.82% in 2021[26]. - The company's total revenue for 2022 was approximately CNY 1.89 billion, representing a year-on-year increase of 5.39%[63]. - The revenue from SPC flooring accounted for 78.10% of total revenue, with a year-on-year growth of 11.17%[63]. - The company reported a net profit of CNY 213 million for 2022[61]. Shareholder Returns - The company reported a cash dividend of 3.00 RMB per 10 shares (including tax) for a total of 100,822,220 shares after deducting repurchased shares[4]. - The total cash dividend amount, including other methods, is RMB 56,436,596.60, which accounts for 100% of the total profit distribution[158]. - The company proposed a cash dividend distribution plan for 2022, distributing RMB 3.00 per 10 shares, totaling RMB 30,246,666.00 (including tax) to shareholders[159]. Risks and Challenges - The company faces major risks including US-China trade friction, changes in export tax rebate policies, exchange rate fluctuations, raw material price volatility, and accounts receivable collection risks[4]. - The decline in exports to the US and Europe was attributed to reduced consumer demand due to international economic inflation and increased competition from Southeast Asian countries like Vietnam[35]. - The company faces risks from potential changes in export tax rebate policies that could significantly impact its operating performance[107]. - The company is also exposed to risks from U.S.-China trade tensions, which could adversely affect its sales performance[107]. - The company has a high proportion of raw materials in its main business costs, particularly PVC resin powder, and any significant price fluctuations in these materials could adversely affect performance[108]. Market Position and Strategy - The company is positioned as a major supplier in the global PVC flooring market, benefiting from increased demand in Europe and the US[34]. - The company has enhanced its international competitiveness through improvements in product design and production technology, leveraging cost advantages in the supply chain[34]. - The company is actively expanding its market presence in emerging economies, where consumer spending power is increasing[42]. - The company has established strong partnerships with major flooring brands and retailers in developed markets, including KINGFISHER and HORNBACH[48]. - The company is focusing on increasing production capacity at its new PVC flooring production base, which has a planned annual output of 20 million square meters[104]. - The company plans to expand its product line and become a comprehensive supplier of interior decoration materials over the next five to ten years[103]. Research and Development - The company is committed to continuous product development and innovation, focusing on high-performance flooring products[47]. - The company has completed several key R&D projects aimed at enhancing product performance and market competitiveness, including lightweight and high-performance flooring products[75]. - R&D investment amounted to ¥47,435,392.54 in 2022, a decrease of 1.48% from ¥48,150,348.78 in 2021, representing 2.50% of operating revenue[76]. - The company has invested 50 million RMB in R&D for new technologies aimed at improving production efficiency[138]. Corporate Governance - The company emphasizes investor relations management, ensuring transparent communication and protecting shareholders' rights through various channels[116]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[114]. - The company adheres to strict corporate governance practices, ensuring the separation of powers and responsibilities between the board, management, and shareholders[114]. - The company has established a performance evaluation and incentive mechanism for management, ensuring accountability and transparency in management practices[115]. - The company has a comprehensive audit committee that reviews the effectiveness of financial reporting and internal controls[117]. Environmental and Social Responsibility - The company has extended its pollutant discharge permit since September 2022, ensuring compliance with environmental protection laws and regulations[168]. - The company has implemented measures to reduce carbon emissions, although specific details on the effectiveness of these measures were not disclosed[168]. - The company actively engages in social responsibility initiatives, including regular blood donation activities and providing employment opportunities for disabled individuals[176]. - The company has received recognition as a "Charity Star Advanced Unit" in Haining City for its contributions to social welfare[176]. Future Outlook - The company anticipates a gradual recovery in revenue and user engagement in the next fiscal year, projecting a growth rate of approximately 20%[127]. - Future guidance estimates a revenue growth of 25% for 2023, aiming for a total of 1.875 billion RMB[186]. - The company plans to implement stock repurchase measures to stabilize share prices, including repurchasing shares and increasing holdings by major shareholders[189]. - The company aims to ensure that the stock's equity distribution complies with legal listing conditions during the repurchase process[189].

证券代码：003011 证券简称：海象新材 浙江海象新材料股份有限公司 投资者关系活动记录表 编号：2020-001 | --- | --- | --- | |-----------------------|----------------------|-----------------------------------------------------------| | | | | | | ☑ | 特定对象调研 □分析师调研 | | 投资者关系 | □ | 媒体采访 □业绩说明会 | | 活动类别 | □ 新闻发布会 | □路演 | | | □ 现场参观 □其他 | | | 时间 | 2020 年 | 11 月 4 日 14 时 0 分至 16 时 15 分 | | 地点 | | 公司办公楼三楼会议室 | | | | 华泰柏瑞基金、中融基金、融通基金、英大信托、泰康资产、谢 | | 参与单位名称 | | 诺投资、锐意资本、丰岭资本、南方基金、国泰君安等机构。 | | | 董事长：王周林 | | | 上市公司 接待人员姓名 | 董秘：金俊 | | | | 证券事务代表：戴娜波 | | 1 | --- | ...

证券代码：003011 证券简称：海象新材 1 浙江海象新材料股份有限公司 投资者关系活动记录表 编号：2021-001 | --- | --- | --- | |-----------------------|----------------------------------------------------------------------|------------------------------------------------------| | 投资者关系 \n活动类别 | □特定对象调研 \n□媒体采访 \n□新闻发布会 \n□现场参观 | □分析师调研 \n☑ 业绩说明会 \n□路演 \n□其他 | | 时间 | 2021 年 4 月 29 | 日 14 时 00 分至 16 时 00 分 | | 地点 | | 全景网"投资者关系互动平台"（ http://ir.p5w.net ） | | 参与单位名称 | 参与公司 2020 | 年度网上业绩说明会的投资者 | | 上市公司 接待人员姓名 | 董事长、总经理：王周林先生 独立董事：王磊先生 保荐代表人：奚一宇先生 | 董事、副总经理、 ...

证券代码：003011 证券简称：海象新材 浙江海象新材料股份有限公司 投资者关系活动记录表 编号：2021-002 | --- | --- | --- | |-----------------------|----------------------------------|------------------------------------------------| | | 特定对象调研 | □分析师调研 | | 投资者关系 | □媒体采访 | □业绩说明会 | | 活动类别 | □新闻发布会 | □路演 | | | □现场参观 | □其他 | | 时间 | 2021 年 10 月 22 | 日 13 时 0 分至 14 时 30 分 | | 地点 | | 公司办公楼三楼会议 | | | | 太平洋证券、中泰证券、长江证券、农银汇理基金、 | | 参与单位名称 | 资、海螺创投、天风证券、东方证券 | 龙全投资、鑫巢资本、涌德瑞烜、行知创投、思悦投 | | | | | | | 董事、副总经理：王淑芳女士 | | | 上市公司 接待人员姓名 | 女士 | 董事、副总经理、财务负责人、董事会秘书：王雅琴 ...

证券代码：003011 证券简称：海象新材 1 浙江海象新材料股份有限公司 投资者关系活动记录表 编号：2022-002 | --- | --- | --- | |-------------------------|------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | 特定对象调研 | □分析师调研 | | 投资者关系 | □媒体采访 | □业绩说明会 | | 活动类别 | □新闻发布会 | □路演 | | | □现场参观 | 其他 电话会议 | | 时间 | 2022 年 5 月 4 | 日 14 时 00 分至 15 时 00 分 ...

Company Overview and Performance - Zhejiang Haixiang New Materials Co., Ltd. was established in 2013 and has expanded internationally with subsidiaries in the USA, Vietnam, Hong Kong, Germany, and Shanghai [3] - The company primarily produces PVC flooring, categorized into LVT, WPC, and SPC types, which offer advantages in safety, environmental protection, functionality, and convenience [3] Production Capacity - Current domestic production capacity is 21 million square meters of PVC flooring annually, approximately 800 cabinets per month [3] - The first factory in Vietnam has a designed capacity of 8 million square meters (350 cabinets/month), and the second factory has a capacity of 7 million square meters (300 cabinets/month) [3] - A new project for a production base with a capacity of 20 million square meters is underway, with the third factory in Vietnam also in planning stages [3] Financial Performance - For the first half of 2022, revenue from LVT flooring was 85.88 million CNY (8.98% of total revenue), WPC flooring was 133.53 million CNY (13.96%), and SPC flooring was 726.83 million CNY (76.00%) [3] - Compared to the same period in 2021, LVT revenue decreased from 124.38 million CNY (15.05%), WPC increased from 106.78 million CNY (12.92%), and SPC increased from 586.21 million CNY (70.94%) [3] - Overall revenue growth for the first half of 2022 was 15.73%, a slowdown compared to 43.98% in 2021, attributed to a slowing PVC market [3][4] Market Analysis - Export data shows a growth in export quantity of chlorinated polyvinyl chloride flooring products: 17.60% in 2020, 26.59% in 2021, and 4.44% in 2022 [4] - PVC flooring is gradually replacing tiles and solid wood products in the European and American markets, indicating significant growth potential [4] Competitive Landscape - The company’s competitive advantages include strong R&D capabilities, high product quality, and a diversified distribution channel [5] - Current order levels have decreased compared to previous years, with future demand uncertain due to market conditions [4][5] Pricing and Profitability - The company employs a pricing strategy that combines cost-plus and market-based pricing, with no significant differences across product lines [6] - Gross margin improved from 15.33% in Q1 to 20.45% in Q2 of 2022, primarily due to currency fluctuations [7] Future Outlook - The company plans to adjust investment strategies for new projects based on market conditions and economic factors [5] - The impact of geopolitical events, such as sanctions on PVC products from Xinjiang, has not yet affected the company [7]

Financial Performance - The company's revenue for Q3 2022 was ¥476,450,575.53, representing a 0.30% increase year-over-year, while the year-to-date revenue reached ¥1,432,839,824.02, up 10.10% compared to the same period last year[5] - Net profit attributable to shareholders for Q3 2022 was ¥58,867,978.12, a significant increase of 142.02% year-over-year, with a year-to-date net profit of ¥133,272,110.85, up 73.23%[5] - Total operating revenue for the period reached ¥1,432,839,824.02, an increase of 10.1% compared to ¥1,301,406,327.40 in the previous period[20] - Net profit for the period was ¥133,272,110.85, representing a significant increase of 73.2% from ¥76,934,234.50 in the same period last year[21] - The total comprehensive income for the third quarter was CNY 189,122,530.28, compared to CNY 74,798,916.08 in the same period last year, representing an increase of approximately 152.5%[22] Earnings Per Share - The basic earnings per share for Q3 2022 was ¥0.5733, reflecting a 138.88% increase compared to the same period last year, while the diluted earnings per share also stood at ¥0.5733[5] - Basic and diluted earnings per share increased to CNY 1.2980, compared to CNY 0.75 in the same quarter last year, reflecting a growth of 73.1%[22] Assets and Liabilities - The total assets at the end of Q3 2022 amounted to ¥2,453,060,453.90, which is a 7.91% increase from the end of the previous year[5] - The company's total assets increased to ¥2,453,060,453.90, compared to ¥2,273,328,629.29, marking a growth of 7.9%[19] - Current liabilities totaled ¥974,355,505.58, slightly up from ¥954,715,938.15, indicating a 2.7% increase[19] - Non-current liabilities rose to ¥47,605,677.09 from ¥45,833,150.19, reflecting a 3.9% increase[19] - The company's equity attributable to shareholders reached ¥1,431,099,271.23, an increase of 12.5% from ¥1,272,779,540.95[19] Cash Flow - The company's cash flow from operating activities for the year-to-date period was ¥152,721,910.23, showing a substantial increase of 172.83% compared to the same period last year[9] - The net cash flow from operating activities was CNY 152,721,910.23, a significant improvement from a net outflow of CNY 209,700,427.39 in the previous year[24] - The total cash inflow from operating activities was CNY 1,603,998,252.50, compared to CNY 1,320,046,444.72 in the previous year, marking an increase of approximately 21.5%[24] - The net cash flow from financing activities decreased by 84.28% to ¥41,483,365.00, mainly due to increased cash payments for debt repayment[10] - The net cash flow from financing activities was CNY 41,483,365.00, a decrease from CNY 263,876,474.91 in the same quarter last year[24] Investments and Expenses - Long-term equity investments increased by 42.25% to ¥48,631,666.37, indicating growth in the company's investment activities[9] - The net value of fixed assets rose by 55.99% to ¥731,426,791.59, attributed to the completion of construction projects during the reporting period[9] - Research and development expenses were reported at ¥34,731,644.93, a slight decrease from ¥35,243,576.40, indicating a focus on cost management[21] - The company reported a financial expense of -¥14,836,641.10, a significant improvement compared to ¥6,743,212.69 in the previous period[21] Shareholder Information - The total number of common shareholders at the end of the reporting period is 11,921[12] - Wang Zhoulin holds 27.08% of shares, totaling 27,809,460 shares[12] - The company has a significant shareholder agreement, with Wang Zhoulin and Jingmei Investment forming a concerted action relationship, holding a combined 52.82%[13] - The company plans for a share reduction by supervisor Shen Caixing, with a maximum of 600,000 shares to be sold, representing 0.58% of total shares[14] - 924,226 shares held by Chen Jianli were released from restrictions, accounting for 0.90% of total shares[15] Compliance and Governance - The company has appointed new representatives for continuous supervision, ensuring compliance with regulatory requirements[13] - The company is actively managing its shareholder structure and compliance with regulatory changes[14] - The company has no preferred shareholders as of the latest report[13] - The company's total assets and liabilities will be detailed in the upcoming financial statements[16]

Financial Performance - The company's operating revenue for the first half of 2022 was ¥956,389,248.49, representing a 15.73% increase compared to ¥826,388,692.56 in the same period last year[24]. - The net profit attributable to shareholders was ¥74,404,132.73, up 41.42% from ¥52,610,855.20 year-on-year[24]. - Basic and diluted earnings per share increased by 42.08% to ¥0.7246 from ¥0.51 in the same period last year[24]. - The total assets at the end of the reporting period reached ¥2,556,299,866.87, a 12.45% increase from ¥2,273,328,629.29 at the end of the previous year[24]. - The net assets attributable to shareholders increased by 5.79% to ¥1,346,489,488.77 from ¥1,272,779,540.95 at the end of the previous year[24]. - The weighted average return on equity was 5.66%, up from 4.28% in the previous year[24]. - The total comprehensive income for the first half of 2022 was CNY 104.51 million, compared to CNY 49.31 million in the first half of 2021[164]. - The total comprehensive income for the period was reported at 4.228 billion yuan, highlighting strong operational performance[182]. Cash Flow and Financial Position - The net cash flow from operating activities improved significantly to ¥51,761,906.49, a 134.26% increase from a negative cash flow of ¥151,092,481.33 in the previous year[24]. - Cash and cash equivalents at the end of the reporting period amounted to ¥319.71 million, representing 12.51% of total assets, a decrease of 1.91% compared to the previous year[63]. - Accounts receivable increased to ¥422.10 million, accounting for 16.51% of total assets, up 2.59% year-on-year, primarily due to business scale growth during the reporting period[63]. - The company's total liabilities reached ¥1,209,810,378.10, up from ¥1,000,549,088.34, representing a growth of about 20.9%[156]. - The ending cash and cash equivalents balance was ¥307,253,834.82, down from ¥455,100,558.32 at the end of the first half of 2021[171]. Market and Industry Position - The company is positioned as a major supplier in the global PVC flooring market, leveraging its production cost advantages and industry experience[32]. - The PVC flooring market in China remains underdeveloped, with a low market share in the overall flooring materials sector[33]. - The company is a leading PVC flooring manufacturer and exporter in China, focusing on R&D, production, and sales of PVC flooring products[40]. - The company’s products are widely used in public buildings and residential areas, including malls, hotels, hospitals, and schools[40]. - The company is positioned to capitalize on the increasing demand for sustainable and recyclable building materials[39]. Risks and Challenges - The company faces risks including US-China trade tensions, fluctuations in raw material prices, and changes in export tax rebate policies[4]. - The ongoing COVID-19 pandemic has increased operational costs and management risks, particularly affecting export business to major clients in the US, Canada, and Germany[88]. - The ongoing Russia-Ukraine conflict has negatively impacted global economic conditions, leading to suppressed consumer demand in Europe and other regions[89]. Research and Development - The company plans to increase R&D investment, including the construction of a research center, to maintain its technological edge in functional formulations and design[49]. - The company has initiated research and development for new materials, aiming to enhance its competitive edge in the market[180]. - The company has maintained its R&D investment at ¥22,120,007.41, a slight decrease of 1.61% from ¥22,482,722.87 in the previous year[55]. Strategic Initiatives - Future strategies include market expansion and potential new product development[4]. - The company plans to enhance customer communication and evaluate clients regularly to mitigate collection risks[86]. - The company aims to improve operational efficiency through the adoption of new technologies in its production processes[176]. - The company is exploring potential mergers and acquisitions to accelerate its market expansion strategy[180]. Corporate Governance and Compliance - The company has established a comprehensive quality management system in place to monitor production processes and ensure product quality[46]. - The company adheres to general laws and regulations, including the Product Quality Law and Consumer Rights Protection Law, which govern its operations[34]. - The company has not reported any significant changes in accounting policies regarding derivative investments compared to the previous reporting period[71]. Shareholder and Capital Management - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company raised a total of RMB 70,920.78 million through the public offering of 18.34 million shares at RMB 38.67 per share, with a net amount of RMB 61,445.54 million after deducting fees[74]. - The company’s major shareholders include Wang Zhoulin with 27,809,460 shares and Hai Ning Jing Mei Investment Management Partnership with 11,550,000 shares, both under lock-up agreements until September 30, 2023[139].

Revenue and Profitability - The company's revenue for Q1 2022 was ¥404,179,017.16, representing an increase of 11.46% compared to ¥362,606,849.33 in the same period last year[3] - Net profit attributable to shareholders decreased by 32.68% to ¥17,212,520.75 from ¥25,568,750.42 year-on-year[3] - Total operating revenue for Q1 2022 was CNY 404,179,017.16, an increase of 11.5% compared to CNY 362,606,849.33 in Q1 2021[19] - Net profit for Q1 2022 was CNY 17,212,520.75, a decrease of 32.8% from CNY 25,568,750.42 in Q1 2021[21] - Basic and diluted earnings per share for Q1 2022 were CNY 0.17, down from CNY 0.25 in Q1 2021[22] - The company reported a total comprehensive income of CNY 3,640,692.49 for Q1 2022, down from CNY 17,903,039.68 in Q1 2021[22] Cash Flow and Financial Activities - The net cash flow from operating activities improved significantly to ¥16,330,734.41, a turnaround from a negative cash flow of ¥99,833,686.22 in the previous year, marking a 116.36% increase[3] - Cash inflow from operating activities totaled CNY 463,939,508.46, compared to CNY 326,631,445.95 in the previous year, reflecting a significant increase[23] - The total cash outflow from investment activities was ¥88,711,535.86, compared to ¥144,489,321.40 in the same period last year, indicating a reduction in investment spending[24] - Cash inflow from financing activities amounted to ¥335,465,120.97, up from ¥193,827,441.65 in Q1 2021, reflecting increased borrowing[24] - The net cash flow from financing activities was ¥82,115,982.67, a decrease from ¥149,391,559.59 in the previous year, suggesting a shift in financing strategy[24] - The company reported a net increase in cash and cash equivalents of ¥11,101,855.00 for Q1 2022, contrasting with a decrease of ¥8,494,006.69 in Q1 2021[25] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,329,656,231.34, up 2.48% from ¥2,273,328,629.29 at the end of the previous year[3] - The company’s total liabilities increased, with accounts payable decreasing to CNY 205,376,675.05 from CNY 249,336,931.82, a decline of about 17.63%[17] - Total liabilities as of Q1 2022 were CNY 1,030,682,399.32, an increase from CNY 1,000,549,088.34 in Q1 2021[19] - The company’s equity position remains strong, with total equity reflecting the growth in total assets and the capital increase activities undertaken[15] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 9,742[9] - The largest shareholder, Wang Zhoulin, holds 27.08% of the shares, totaling 27,809,460 shares[9] Operational Efficiency - The company recorded a 90.69% increase in other income, amounting to ¥5,327,135.54, attributed to enhanced tax refunds for welfare enterprises[6] - Financial expenses surged by 188.67% to ¥3,828,116.77, primarily due to increased interest expenses[6] - Research and development expenses for Q1 2022 were CNY 8,824,338.99, a decrease of 13.9% from CNY 10,275,511.88 in Q1 2021[19] - The company paid ¥39,369,530.21 in employee-related cash payments, down from ¥45,924,277.71 in the previous year, reflecting cost management efforts[24] - The company’s cash outflow for taxes was ¥6,624,512.90, a decrease from ¥8,662,092.93 in Q1 2021, indicating improved tax efficiency[24] - The company’s cash outflow for other operating activities was ¥40,198,529.77, down from ¥45,267,053.54 in the same period last year, suggesting operational efficiency improvements[24] Investment and Capital Activities - The company completed a capital increase of USD 40 million to its wholly-owned subsidiary, Vietnam Haixin New Materials Co., Ltd., raising its registered capital from USD 69 million to USD 109 million[12] - The company holds 100% equity in Vietnam Haixin, which remains consolidated in the company's financial statements[12]

Financial Performance - The company's operating revenue for 2021 was ¥1,797,567,793.70, representing a 46.87% increase compared to ¥1,223,943,244.11 in 2020[21]. - The net profit attributable to shareholders decreased by 48.50% to ¥96,971,521.81 in 2021 from ¥188,287,509.85 in 2020[21]. - The net cash flow from operating activities was negative at -¥109,164,941.48, a decline of 157.44% compared to ¥190,055,860.92 in 2020[21]. - Basic and diluted earnings per share fell by 58.41% to ¥0.94 in 2021 from ¥2.26 in 2020[21]. - Total assets increased by 30.47% to ¥2,273,328,629.29 at the end of 2021, up from ¥1,742,467,891.34 at the end of 2020[22]. - The net assets attributable to shareholders rose by 5.15% to ¥1,272,779,540.95 at the end of 2021, compared to ¥1,210,486,241.25 at the end of 2020[22]. - The company reported a total of ¥432.02 billion in PVC flooring exports in 2021, marking a 12.2% increase from 2020[30]. - The weighted average return on equity decreased to 7.82% in 2021 from 28.52% in 2020, a drop of 20.70%[21]. - The company experienced a decline in net profit after deducting non-recurring gains and losses, which was ¥96,208,577.94 in 2021, down 43.20% from ¥169,380,258.26 in 2020[21]. - The company reported a total of ¥762,943.87 in non-recurring gains in 2021, significantly lower than ¥18,907,251.59 in 2020[27]. Risks and Challenges - The company faces several risks including US-China trade friction, changes in export tax rebate policies, exchange rate fluctuations, raw material price volatility, accounts receivable collection risks, and COVID-19 pandemic risks[6]. - The company is monitoring raw material price volatility, particularly for PVC, which could affect profitability, and is maintaining strong relationships with suppliers[110]. - The ongoing COVID-19 pandemic presents potential risks to export operations, with the company closely tracking developments to minimize adverse effects[111]. - Changes in export tax rebate policies could significantly affect the company's financial performance, as export tax rebates constitute a large portion of revenue[109]. - Currency fluctuations, particularly in USD and EUR, pose risks to the company's export business, with measures in place to mitigate these impacts[109]. - The company faces risks from U.S.-China trade tensions, with a potential 25% tariff impacting operations, prompting a strategy to expand its Vietnam factory to mitigate risks[108]. Business Operations - The company operates several wholly-owned subsidiaries, including Kimay Floors Inc. in the US and Vietnam Haixin New Materials Co., Ltd.[13]. - The company employs an ODM production model, primarily serving international flooring brands and retailers, which helps reduce inventory risks and capital occupation[46]. - The company maintains a dual supplier strategy for raw materials to ensure supply chain stability, typically sourcing from multiple qualified suppliers[45]. - The production process for LVT, WPC, and SPC flooring involves multiple steps including material preparation, pressing, and quality inspection, ensuring high product standards[39][41]. - The company has established partnerships with well-known international brands such as KINGFISHER and HORNBACH, enhancing its market presence[48]. Research and Development - The company holds 21 patents, including 5 invention patents and 1 design patent, and has established a research and development center to promote new technology and product development[55]. - Research and development expenses rose by 30.13% to ¥48,150,348.78, reflecting increased direct investment and employee compensation in the R&D department[71]. - The company plans to increase R&D investment to innovate products, processes, and technologies to meet higher customer demands[104]. - Investment in R&D has increased by 15%, focusing on developing new materials and technologies to enhance product offerings[192]. Market Presence and Strategy - The company is a leading PVC flooring manufacturer and exporter in China, focusing on R&D, production, and sales of PVC flooring products widely used in various public and residential buildings[37]. - The company has a diversified customer base across multiple countries, including the USA, Netherlands, Germany, and Canada, indicating a strong market presence[103]. - The company aims to enhance its brand influence and expand its product line to become a comprehensive supplier in the interior decoration materials sector over the next five to ten years[104]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[187]. Governance and Management - The company has established a clear governance structure, with a board of 7 members, including 3 independent directors, complying with legal requirements[115]. - The company has a performance evaluation and incentive mechanism for management, ensuring transparency and fairness in the hiring process[116]. - The company maintains an independent financial structure, with a complete accounting system and independent decision-making in financial management[120]. - The company has a dedicated audit committee that oversees financial reporting and internal controls, enhancing governance effectiveness[118]. - The company has implemented measures to improve internal control systems, ensuring operational efficiency and risk management[118]. Employee and Social Responsibility - The company has a competitive salary and benefits policy to attract and retain talent, with a performance-based salary increase system[157]. - The total number of employees at the end of the reporting period was 1,545, with 1,119 in the parent company and 426 in major subsidiaries[155]. - The company actively engages in social responsibility initiatives, including regular blood donation activities and providing employment opportunities for disabled individuals[176]. - The company has established an independent labor union to represent and protect workers' interests[172]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[188]. - The company aims to improve operational efficiency, targeting a reduction in production costs by 15% through automation and process optimization[186]. - The company is committed to sustainability, with a goal to reduce carbon emissions by 30% over the next five years[188]. - A strategic acquisition of a local competitor was announced, expected to enhance production capacity by 30%[188].