Financial Performance - The company's revenue for Q1 2021 was ¥293,609,333.47, representing a 60.09% increase compared to ¥183,403,150.18 in the same period last year[9] - Net profit attributable to shareholders was ¥58,446,627.55, up 30.40% from ¥44,820,108.48 year-on-year[9] - The basic earnings per share increased by 30.32% to ¥0.1371 from ¥0.1052 in the previous year[9] - Operating revenue for Q1 2021 reached ¥293.61 million, an increase of 60.09% compared to ¥183.40 million in Q1 2020[20] - The company's operating profit for Q1 2021 was CNY 67,893,637.48, an increase of 26.4% compared to CNY 53,721,212.92 in the same period last year[51] - Total profit for Q1 2021 reached CNY 68,080,681.39, up from CNY 53,264,974.68, reflecting a growth of 27.8% year-over-year[51] - The company reported a net profit margin improvement, with net profit for Q1 2021 showing a positive trend compared to the previous year[50] - The company's total comprehensive income for Q1 2021 was CNY 58,446,627.55, which is the same as the net profit due to no other comprehensive income items[52] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,125,565,718.89, a 2.51% increase from ¥2,073,475,299.49 at the end of the previous year[9] - The total current assets were reported at CNY 1,167,682,246.93, compared to CNY 1,113,851,453.17 at the end of 2020, representing a growth of approximately 4.8%[41] - The total liabilities decreased to CNY 284,211,112.90 in Q1 2021 from CNY 290,864,969.05 in the previous year[44] - The total non-current liabilities were CNY 8,961,037.32, slightly down from CNY 9,175,852.10 year-over-year, indicating effective liability management[44] Cash Flow - The net cash flow from operating activities was ¥31,460,342.01, showing a slight increase of 0.09% compared to ¥31,430,717.39 in the previous year[9] - Cash inflow from operating activities was CNY 229,393,667.60, compared to CNY 143,396,084.38 in the previous year, showing a growth of 60.0%[58] - The net cash flow from investment activities was negative at CNY -889,648.94, a significant decline from CNY 155,120,188.60 in the same period last year, indicating higher investment outflows[59] - The company reported a net cash outflow from financing activities of CNY -353,257.82, compared to CNY -203,596.00 in Q1 2020, indicating increased financing costs[60] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 40,586[12] - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., held 23.33% of the shares, totaling 99,423,360 shares[12] - The company plans to repurchase and cancel 704,640 shares of restricted stock at a price of CNY 1.86 per share due to non-compliance with vesting conditions[30] - The first phase of the employee stock ownership plan still holds 8,031,638 shares, accounting for 1.88% of the total share capital, with an extension of the plan's duration by 24 months until June 29, 2023[32] Research and Development - R&D expenses increased by 86.93% to ¥13.68 million, up from ¥7.32 million in Q1 2020[20] - The company plans to continue enhancing R&D efforts in advanced polymer materials and high-performance composite materials, targeting new application fields such as electronics and biomedicine[24] - Research and development expenses increased to CNY 13,682,797.77 in Q1 2021, compared to CNY 7,319,640.12 in Q1 2020, reflecting a focus on innovation[50] Operational Efficiency - Operating costs rose to ¥200.82 million, reflecting an 81.08% increase from ¥110.90 million in the same period last year[20] - The gross profit margin was significantly impacted by rising raw material prices, prompting the company to focus on high-end product applications and market share expansion[23] - The company experienced a credit impairment loss of CNY 1,070,130.44, compared to a gain of CNY 127,098.04 in the previous year, indicating a shift in credit quality[55] - The company’s total profit margin improved, reflecting better cost management and operational efficiency[51]

Financial Performance - The company's operating revenue for 2020 was approximately ¥959.68 million, a slight decrease of 0.05% compared to ¥960.11 million in 2019[28]. - The net profit attributable to shareholders for 2020 increased by 25.10% to approximately ¥232.58 million, up from ¥185.91 million in 2019[28]. - The net profit after deducting non-recurring gains and losses was approximately ¥228.01 million, reflecting a growth of 28.93% compared to ¥176.85 million in the previous year[28]. - The basic earnings per share for 2020 was ¥0.55, representing a 25.00% increase from ¥0.44 in 2019[28]. - The total assets of the company at the end of 2020 were approximately ¥2.07 billion, an increase of 9.35% from ¥1.90 billion at the end of 2019[28]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.78 billion, up 7.71% from ¥1.65 billion at the end of 2019[28]. - The net cash flow from operating activities for 2020 was approximately ¥265.48 million, a decrease of 13.85% compared to ¥308.15 million in 2019[28]. - The company reported quarterly revenues of ¥183.40 million, ¥237.03 million, ¥254.39 million, and ¥284.86 million for Q1, Q2, Q3, and Q4 respectively in 2020[30]. - The weighted average return on equity for 2020 was 13.46%, an increase of 1.70% from 11.76% in 2019[28]. - The company reported a total non-operating income of CNY 4,564,565.79 in 2020, a decrease of 49.5% from CNY 9,065,469.00 in 2019[34]. Market and Competition - The polyurethane adhesive market remains competitive, with increasing pressure from new entrants and established multinational companies, necessitating a focus on solvent-free product development and market promotion[11]. - The company is facing risks related to operational management as it expands its business, which may complicate decision-making and risk control processes[10]. - The company acknowledges the systemic and non-systemic risks associated with stock market fluctuations and is focused on delivering value to shareholders[13]. - The company is actively developing environmentally friendly products in the construction and energy-saving sectors, responding to increasing market demand[57]. - The automotive adhesive market has seen the introduction of targeted high-end products, achieving mass application and significant market penetration[48]. Research and Development - The company emphasizes the importance of technological innovation in adhesive products, aiming to enhance safety and environmental standards to maintain competitive advantage in the market[9]. - The company has focused on high-performance polyurethane adhesive materials since its establishment in 1999, offering over 100 products across various applications including packaging and transportation[36]. - The company increased its R&D investment, introducing solvent-free and high-solid functional adhesive products to enhance competitiveness[42]. - R&D investment amounted to CNY 52.75 million, representing 5.50% of operating revenue, with 66 R&D personnel, 39.39% of whom hold master's degrees or higher[67]. - The company has applied for 171 invention patents, with 132 granted and 39 accepted, and 42 utility model patents, with 32 granted[67]. Operational Efficiency and Risk Management - The company is committed to improving operational efficiency and risk management as it adapts to changes in its organizational structure[10]. - The company is closely monitoring external economic conditions and adjusting strategies to mitigate risks associated with macroeconomic uncertainties and policy changes[14]. - The company has implemented a robust credit control system and enhanced its information technology infrastructure to improve operational efficiency[80]. - The company is focused on replacing imported brands with its own products, aiming to rapidly increase market share in the coming period[82]. - The company is aware of stock market risks influenced by various external factors, emphasizing the importance of maintaining strong operational performance[135]. Profit Distribution and Shareholder Returns - The company plans to distribute a cash dividend of 3 RMB per 10 shares (including tax) based on a total of 425,524,433 shares, with no bonus shares issued[16]. - The company has a profit distribution policy prioritizing cash dividends to ensure reasonable returns for investors, particularly small shareholders[141]. - The total distributable profit for the company as of December 31, 2020, is RMB 216,157,911.24, after accounting for a legal surplus reserve of RMB 16,793,818.34[148]. - The company’s profit distribution plan for 2020 was approved by the board and will be submitted to the shareholders' meeting for final approval[148]. - In 2020, the cash dividend amount was approximately 127.66 million, representing 54.89% of the net profit attributable to ordinary shareholders[152]. Environmental and Social Responsibility - The company is committed to developing environmentally friendly products and production processes, focusing on low VOC emissions and renewable materials[196]. - The company donated a total of 466,100 CNY in medical supplies during the COVID-19 pandemic, significantly reducing the risk of infection for healthcare workers[197]. - The company has signed labor contracts with all employees and provides comprehensive social insurance, ensuring employee rights are protected[193]. - The company established a food safety department to enhance product quality control, ensuring compliance with national quality standards in food and pharmaceutical packaging[195]. - The company has fulfilled its social responsibilities in various aspects, including shareholder rights, employee rights, and environmental safety[189].

Financial Performance - Net profit attributable to shareholders increased by 32.33% to CNY 66,452,337.55 for the reporting period[8] - Operating income for the reporting period was CNY 254,388,280.39, a slight increase of 1.61% year-on-year[8] - Basic earnings per share decreased by 5.42% to CNY 0.1781[8] - The weighted average return on equity was 3.84%, an increase of 0.66% compared to the previous year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 65,801,697.20, up by 32.96% year-on-year[8] - Total operating revenue for Q3 2020 was CNY 254,388,280.39, an increase of 1.4% compared to CNY 250,349,757.05 in Q3 2019[45] - Net profit for Q3 2020 was CNY 66,452,337.55, up 32.3% from CNY 50,215,842.43 in the same period last year[47] - Total comprehensive income for the current period is CNY 66,452,337.55, compared to CNY 50,215,842.43 in the previous period, showing an increase of about 32.3%[51] Assets and Liabilities - Total assets increased by 4.85% to CNY 1,988,026,587.49 compared to the end of the previous year[8] - The company's total assets decreased to CNY 1,539,415,524.35 from CNY 1,643,247,934.01, a decline of about 6.3%[42] - Current assets totaled CNY 281,114,416.15, down from CNY 381,876,512.86, indicating a decrease of approximately 26.4%[41] - The total liabilities decreased to CNY 60,343,057.18 from CNY 71,667,300.09, a reduction of about 15.8%[43] - The company's total liabilities were not explicitly detailed in the provided documents, but the total current liabilities were reported at 231,068,660.40 CNY[71] - Total liabilities amounted to CNY 241,136,755.97, with total equity at CNY 1,654,972,384.37, resulting in total assets of CNY 1,896,109,140.34[72] Cash Flow - The net cash flow from operating activities was CNY 90,716,374.93, up by 11.27% compared to the same period last year[8] - Cash and cash equivalents increased by 237.39 million yuan, a growth of 300.60%, mainly due to a decrease in purchased bank wealth management products[20] - The cash flow from operating activities was CNY 221,150,600.83, down from CNY 246,477,100.14 in the previous year, indicating a decrease of 10.2%[63] - The total cash inflow from operating activities was CNY 572,917,908.60, compared to CNY 635,298,521.09 in the same period last year, a decrease of 9.8%[63] - The company recorded a net cash flow from investment activities of CNY 1,150,147,680.00, significantly higher than CNY 742,910,000.00 in the previous year[63] - The company reported a total cash inflow from investment activities of 1,163,178,937.82 CNY, while cash outflow was 1,069,811,457.26 CNY, resulting in a net cash inflow of 93,367,480.56 CNY[64] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 45,786[12] - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., held 23.33% of the shares[12] - The total number of restricted shares at the beginning of the period was 56,868,821, with 47,297,171 shares released during the period, resulting in 15,314,714 shares remaining restricted[17] - The company has a total of 2,223,600 shares held by other restricted shareholders, with 1,186,560 shares released during the period[17] - The company’s executives have a total of 1,855,680 shares locked, with a release schedule of 25% on the first trading day of each year[16] - The company plans to release 40%, 30%, and 30% of the restricted shares in three phases based on performance assessments, starting from January 10, 2019[16] Expenses and Income - Management expenses decreased by 42.03 million yuan, a decline of 59.88%, mainly due to high performance bonuses and share-based payment expenses in the previous period[21] - Investment income increased by 34.77 million yuan, a growth of 48.95%, mainly due to increased returns from purchased bank wealth management products[21] - The company reported an investment income of CNY 3,991,620.67, compared to CNY 3,337,117.02 in the previous year, marking an increase of about 19.7%[46] - The company reported investment income of CNY 1,630,961.33 for the current period, down from CNY 2,332,588.05 in the previous period, reflecting a decrease of about 30.1%[50] Compliance and Governance - The company has no overdue commitments from major stakeholders during the reporting period, indicating compliance with obligations[28] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period, ensuring financial integrity[32] - The company has not undergone an audit for the third quarter report[76]

Financial Performance - The company's operating revenue for the reporting period was RMB 420,430,414.65, a decrease of 12.67% compared to the same period last year[31]. - The net profit attributable to shareholders of the listed company was RMB 111,210,945.25, an increase of 24.15% year-on-year[31]. - The net profit after deducting non-recurring gains and losses was RMB 109,351,254.78, reflecting a growth of 22.66% compared to the previous year[31]. - The net cash flow from operating activities was RMB 130,434,225.90, down by 20.92% from the same period last year[31]. - The total assets at the end of the reporting period amounted to RMB 2,019,389,182.22, representing a 6.50% increase from the end of the previous year[31]. - The net assets attributable to shareholders of the listed company were RMB 1,768,112,641.60, up by 6.84% compared to the previous year[31]. - The basic earnings per share for the reporting period was RMB 0.4171, an increase of 24.17% year-on-year[31]. - The weighted average return on net assets was 6.50%, up from 5.76% in the previous year[31]. - The company's operating costs decreased by 17.62% to approximately ¥236.13 million, reflecting cost management efforts during the pandemic[67]. - The company reported a significant increase in cash and cash equivalents, rising by 115.86% to approximately ¥19.88 million, driven by improved cash flow from financing and investment activities[68]. Market Strategy and Innovation - The company emphasizes the importance of technological innovation in adhesive products to maintain competitive advantage, focusing on safety and environmental standards[9]. - The company is facing risks related to market competition and product iteration, particularly with the shift from solvent-based to solvent-free products, and aims to enhance its position in functional products[11]. - The company aims to enhance its research and development capabilities by attracting top talent and fostering industry partnerships[9]. - The company is focused on proactive market research to adapt to changing consumer demands and regulatory requirements[12]. - The company is actively developing eco-friendly adhesive products in response to rising environmental regulations in the transportation sector, with a focus on low VOC emissions[45]. - The company is aligning its market strategy towards the growing demand for new energy vehicles, ensuring stability in technology and production during the transition from traditional fuel vehicles[47]. - The building and energy-saving sectors are shifting towards green and environmentally friendly products, with the company introducing innovative solutions in woodworking and construction applications[48]. Operational Risks and Management - The company plans to closely monitor raw material price fluctuations, which are influenced by oil prices and other factors, to mitigate potential impacts on product costs and gross margins[7]. - The company acknowledges the risk of goodwill impairment related to its acquisition of Wuhan Huasen, which could adversely affect current profits if future performance does not meet expectations[17]. - The company is committed to optimizing its management structure and resource allocation to address operational risks associated with business expansion[10]. - The company is aware of the macroeconomic uncertainties and their potential impact on its operations, particularly due to the COVID-19 pandemic and changing policies[15]. - The company has established long-term relationships with suppliers to stabilize raw material procurement, despite the unpredictable nature of price fluctuations[7]. - The company is closely monitoring external economic conditions and adjusting strategies to mitigate risks associated with macroeconomic uncertainties[98]. Shareholder and Equity Information - The company has not declared any cash dividends or stock bonuses for the current period[18]. - The company has not disposed of any significant assets or equity during the reporting period[88][89]. - The company has not engaged in any investor communication activities during the reporting period[100]. - The company has fulfilled its commitments regarding share transfer restrictions, with a lock-up period of 36 months post-issuance[106]. - The company has adhered to the share lock-up agreements as per the regulations of the China Securities Regulatory Commission and Shenzhen Stock Exchange[106]. - The company granted 5.988 million restricted stocks in January 2019, accounting for 2.30% of the total share capital, with a grant price of 3.59 CNY per share[115]. - The total number of ordinary shareholders at the end of the reporting period is 20,980[150]. - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., holds 23.30% of the shares, totaling 62,139,600 shares[150]. Environmental and Social Responsibility - The company has established an environmental monitoring plan and has been compliant with environmental protection laws and regulations without any violations[135]. - The company donated medical supplies worth 469,500 CNY to frontline hospitals during the pandemic and contributed 15,000 CNY for local village development[136]. - The company’s waste gas treatment facilities are operating normally, ensuring compliance with environmental standards[134]. - The company reported a significant increase in total revenue compared to the previous period[200]. - The user data showed a growth trend in customer engagement and retention[200]. - Future outlook indicates plans for market expansion and new product development[200].

北京高盟新材料股份有限公司 2020 年第一季度报告全文 北京高盟新材料股份有限公司 2020 年第一季度报告 2020-025 2020 年 04 月 1 北京高盟新材料股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人何宇飞、主管会计工作负责人史向前及会计机构负责人(会计主 管人员)梁彦声明：保证季度报告中财务报表的真实、准确、完整。 2 北京高盟新材料股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 183,403,150.18 | 254,620,503.63 | -27.97% | | 归属于上市公司股东的净利润（元） | 44,820,10 ...

Financial Performance - Operating revenue for the reporting period was ¥250,349,757.05, a decrease of 5.46% year-on-year[8] - Net profit attributable to shareholders surged by 69.29% to ¥50,215,842.43 for the reporting period[8] - Basic earnings per share rose by 65.47% to ¥0.1883[8] - The net profit attributable to shareholders is expected to increase by approximately 118.2% to 147.9%, with an estimated profit of around RMB 183.57 million to RMB 207.47 million[27] - Total operating revenue for Q3 2019 was CNY 250,349,757.05, a decrease of 5.5% compared to CNY 264,800,486.34 in the same period last year[43] - Net profit for Q3 2019 was CNY 50,215,842.43, representing an increase of 69.3% from CNY 29,663,277.29 in Q3 2018[44] - Total operating revenue for the period was ¥731,780,896.49, a decrease of 4.6% compared to ¥767,361,963.04 in the previous period[49] - Net profit for the period increased to ¥139,792,829.94, up 109.0% from ¥66,597,032.57 in the previous period[51] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,822,171,361.08, an increase of 3.05% compared to the previous year[8] - Net assets attributable to shareholders increased by 5.95% to ¥1,607,154,163.92[8] - Total current assets increased to CNY 860,591,147.07 as of September 30, 2019, up from CNY 802,912,856.44 at the end of 2018, representing a growth of approximately 7.3%[33] - Total liabilities decreased from CNY 251,377,395.90 to CNY 215,017,197.16, reflecting a decline of approximately 14.4%[35] - Owner's equity increased to CNY 1,607,154,163.92 from CNY 1,516,888,519.89, representing a growth of about 5.9%[36] Cash Flow - Cash flow from operating activities for the year-to-date reached ¥246,477,100.14, an increase of 70.14%[8] - Operating cash flow net amount increased by RMB 101.61 million, a growth of 70.14% compared to the same period last year, mainly due to increased cash inflow from operating activities[21] - Cash flow from operating activities was ¥622,939,725.79, compared to ¥592,137,716.30 in the previous period, showing an increase of 5.2%[58] - The net cash flow from operating activities for Q3 2019 was ¥246,477,100.14, an increase of 70.2% compared to ¥144,868,548.90 in Q3 2018[59] Shareholder Information - The company reported a total of 13,525 ordinary shareholders at the end of the reporting period[11] - The top shareholder, Gaojin Technology Industry Group Co., Ltd., holds 23.30% of the shares, totaling 62,139,600 shares[11] - The company did not engage in any repurchase transactions among the top shareholders during the reporting period[12] Expenses and Income - Management expenses increased by CNY 28.75 million, a rise of 69.37% compared to the same period last year[19] - Financial expenses decreased by RMB 1.39 million, a reduction of 71.89%, mainly due to decreased exchange losses[27] - Other income increased by RMB 1.95 million, a growth of 250.23%, primarily due to increased government subsidies[27] - Research and development expenses for the quarter were CNY 15,630,197.14, down 30.8% from CNY 22,586,244.25 in Q3 2018[43] Investments - Investment income increased by CNY 3.74 million, an increase of 111.21% compared to the same period last year[19] - The company reported an investment income of CNY 3,337,117.02, significantly higher than CNY 791,359.93 in the previous year[43] - The company reported investment income of ¥7,102,955.83, compared to ¥3,362,907.57 in the previous period, an increase of 111.5%[49] Stock and Dividends - The company plans to implement a stock incentive plan, granting 5.988 million restricted stocks at a price of RMB 3.59 per share, accounting for 2.30% of the total share capital[22] - The company distributed a cash dividend of RMB 2.10 per 10 shares, totaling RMB 55.99 million, as approved at the 2018 annual general meeting[26]

Financial Performance - Total revenue for the reporting period was CNY 481,431,139.44, a decrease of 4.20% compared to the same period last year[29]. - Net profit attributable to shareholders increased by 138.61% to CNY 89,576,987.51 from CNY 37,541,195.85 in the previous year[29]. - Basic earnings per share increased by 133.26% to CNY 0.3359 from CNY 0.1440[29]. - Operating profit reached 111.13 million yuan, an increase of 60.95 million yuan year-on-year, with a growth rate of 121.49%[41]. - The company reported a significant increase in other current assets from RMB 193,249,099.48 to RMB 327,287,364.92, an increase of about 69.5%[152]. - The total profit for the first half of 2019 was CNY 185,627,882.63, a significant increase from CNY 72,751,155.50 in the same period of 2018, representing a growth of approximately 155.5%[167]. - The net profit for the first half of 2019 was CNY 185,627,882.63, compared to CNY 72,833,211.04 in the previous year, indicating a year-over-year increase of about 154.7%[168]. - The company reported cash inflow from sales of goods and services of CNY 410,263,054.76 in the first half of 2019, an increase from CNY 384,044,010.00 in the same period of 2018, representing a growth of about 6.8%[169]. Research and Development - The company plans to enhance its research and development capabilities to keep up with industry trends and improve its core competitiveness[9]. - The company invested 24.92 million yuan in R&D, accounting for 5.18% of operating revenue, emphasizing its commitment to innovation[44]. - The company has applied for 152 invention patents, with 131 granted, showcasing its strong focus on technological advancement[44]. - The company emphasizes the importance of R&D to maintain competitiveness in the adhesive market, particularly in response to safety and environmental standards[77]. Market Conditions - The company reported a decline in the automotive market, with production and sales down by 13.7% and 12.4% respectively in the first half of 2019 compared to the same period last year[14]. - The company is facing increased pressure from competition in the polyurethane adhesive market, which remains fragmented despite rising industry concentration[11]. - The company is actively expanding its market presence in key regions such as Beijing, Shanghai, and Guangzhou, focusing on polyurethane products[56]. Operational Management - The company is committed to improving operational management to handle the complexities arising from business expansion[10]. - The company is closely monitoring external economic conditions and adjusting its strategies to mitigate risks associated with receivables and investments[14]. - The company has established long-term stable relationships with suppliers to mitigate the risks associated with raw material price fluctuations, which have shown unpredictable trends[7]. - The company maintains long-term partnerships with over 20 first-tier automotive manufacturers, enhancing customer loyalty and reducing supplier switching costs[45]. Environmental and Compliance Issues - The company has faced administrative penalties totaling RMB 860,000 for environmental compliance issues, which have since been rectified[93][94]. - The company is classified as a key pollutant discharge unit, with volatile organic compounds emissions recorded at 1.182 tons against a total allowable discharge of 5.624 tons, with no exceedance reported[110]. - The environmental protection facilities, including wastewater and RTO exhaust treatment systems, are operating normally[111]. - The company has not reported any significant environmental incidents or violations during the reporting period[113]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for the current period[17]. - A stock incentive plan was implemented in January 2019, granting 5.988 million restricted shares at a price of RMB 3.59 per share, with performance targets set for net profit growth of 100%, 130%, and 150% over three years[96]. - The company issued 5,988,000 new shares as part of the restricted stock incentive plan, increasing the total number of shares from 260,651,171 to 266,639,171[124]. - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., holds 23.30% of the shares, totaling 62,139,600 shares[133]. Financial Position - Total assets at the end of the reporting period were CNY 1,737,165,714.70, a decrease of 1.76% from the previous year-end[29]. - The company's total liabilities decreased from RMB 251,377,395.90 to RMB 182,383,073.21, a reduction of about 27.4%[154]. - The company's equity attributable to shareholders increased from RMB 1,516,888,519.89 to RMB 1,554,782,641.49, an increase of approximately 2.5%[154]. - The company’s total registered capital after the issuance of new shares is RMB 266,639,171[131]. Future Outlook - The company forecasts a cumulative net profit of ¥12.34 million to ¥14.14 million for the year, representing a growth of 85.23% to 112.26% compared to the previous year[75]. - Basic earnings per share are expected to rise to ¥0.4626 to ¥0.5301, reflecting an increase of 81.06% to 107.48% year-on-year[75]. - The company anticipates a net profit of ¥3.38 million for the period from July to September, which is an increase of 13.88% compared to ¥2.97 million in the same period last year[75].

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) [Statement on Report Authenticity](index=2&type=section&id=1.1%20Statement%20on%20Report%20Authenticity) The company's Board, Supervisory Board, and senior management collectively affirm the truthfulness, accuracy, and completeness of this quarterly report - The company's management, including the Board of Directors, Supervisory Board, and senior executives, collectively guarantee the truthfulness, accuracy, and completeness of this quarterly report[5](index=5&type=chunk) - The company's principal officer, head of accounting, and head of the accounting department all declare the financial statements are true, accurate, and complete[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) [Key Accounting Data and Financial Indicators](index=3&type=section&id=2.1%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2019, total operating revenue grew 1.97% to **255 million RMB**, with net profit attributable to shareholders increasing **91.49%** to **41.7 million RMB**, and operating cash flow surging **637.90%** to **67.94 million RMB** Key Financial Indicators for Q1 2019 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (RMB) | 254,620,503.63 | 249,704,290.43 | 1.97% | | Net Profit Attributable to Shareholders (RMB) | 41,695,480.28 | 21,774,111.02 | 91.49% | | Net Cash Flow from Operating Activities (RMB) | 67,940,458.71 | 9,207,228.16 | 637.90% | | Basic Earnings Per Share (RMB/share) | 0.16 | 0.08 | 100.00% | | Weighted Average Return on Net Assets | 2.71% | 1.48% | 1.23% | | Total Assets (RMB) | 1,730,108,946.11 | - | -2.16% (vs. prior year-end) | | Net Assets Attributable to Shareholders (RMB) | 1,560,739,680.17 | - | 2.89% (vs. prior year-end) | Details of Non-Recurring Gains and Losses | Item | Amount from Year-Beginning to End of Reporting Period (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -354,671.72 | | Government Grants Included in Current Profit/Loss | 1,379,000.00 | | Other Non-Operating Income and Expenses | -628,387.18 | | Less: Income Tax Impact | 192,487.38 | | **Total** | **203,453.72** | [Shareholder Information](index=4&type=section&id=2.2%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period-End) As of the reporting period end, the company had **12,542** common shareholders, with Gaoxin Technology Industry Group Co., Ltd. being the largest at **23.30%** ownership - At the end of the reporting period, the company had a total of **12,542** common shareholders[12](index=12&type=chunk) Top Five Shareholders' Shareholding Status | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Gaoxin Technology Industry Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 23.30% | 62,139,600 | | Qingdao Gaomeng Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 9.58% | 25,542,000 | | Guangzhou Chengxin Investment Holding Co., Ltd. | Domestic Non-State-Owned Legal Person | 5.40% | 14,403,292 | | Wuhan Huisen Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.16% | 11,103,699 | | Tang Xiaolin | Domestic Natural Person | 3.26% | 8,689,676 | - Related party relationships or concerted action agreements exist among shareholders, such as Gaoxin Technology Industry Group and Guangzhou Chengxin Investment Holding being controlled by the same ultimate beneficial owner; Wuhan Huisen Investment, Tang Xiaolin, and Hu Yuyou are concerted parties[13](index=13&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=2.2.1%20Changes%20in%20Restricted%20Shares) Total restricted shares increased from **57.45 million** to **63.44 million** during the period, mainly due to the grant of **5.99 million** equity incentive restricted shares Overview of Restricted Share Changes | Item | Number of Shares | | :--- | :--- | | Restricted Shares at Beginning of Period | 57,452,804 | | Restricted Shares Released in Current Period | 375 | | Restricted Shares Increased in Current Period | 5,988,000 | | Restricted Shares at End of Period | 63,440,429 | - The primary reason for the increase in restricted shares was the implementation of an equity incentive plan, adding executive restricted shares and equity incentive restricted shares[16](index=16&type=chunk)[17](index=17&type=chunk) [Significant Matters](index=7&type=section&id=Item%203.%20Significant%20Matters) [Analysis of Significant Changes in Financial Data](index=7&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20and%20Their%20Reasons) Significant financial changes include a **218.26%** increase in administrative expenses, an **80.69%** decrease in financial expenses, a **637.90%** surge in operating cash flow, and a substantial outflow in investing cash flow due to M&A payments - Key Balance Sheet Changes: - **Other payables**: Decreased by **98.59%** from the beginning of the year, primarily due to the payment of the remaining acquisition balance for Huasen Plastics[19](index=19&type=chunk) - **Taxes payable**: Increased by **105.80%** from the beginning of the year, primarily due to an increase in corporate income tax payable[19](index=19&type=chunk) - Key Income Statement Changes: - **Administrative expenses**: Increased by **218.26%** year-over-year, primarily due to higher performance bonuses accrued in the current period[20](index=20&type=chunk) - **Financial expenses**: Decreased by **80.69%** year-over-year, primarily due to reduced exchange losses and interest expenses in the current period[20](index=20&type=chunk) - **Other income**: Increased by **430.38%** year-over-year, primarily due to increased government grants[20](index=20&type=chunk) - Key Cash Flow Statement Changes: - **Net cash flow from operating activities**: Increased by **637.90%** year-over-year, primarily due to increased cash received from operating activities[22](index=22&type=chunk)[24](index=24&type=chunk) - **Net cash flow from investing activities**: Decreased by **1,012.77%** year-over-year, primarily due to increased investment outflows, such as the final payment for the Huasen Plastics acquisition[22](index=22&type=chunk)[24](index=24&type=chunk) [Business Review and Outlook](index=8&type=section&id=3.2%20Business%20Review%20and%20Outlook) In Q1 2019, profitability significantly improved due to lower raw material costs and efficiency gains, with revenue reaching **255 million RMB** and net profit surging **91.49%** to **41.7 million RMB**, while future focus is on R&D for high-value products and new market expansion - During the reporting period, the company's profitability significantly improved, primarily due to declining raw material prices, the return of product gross margins to reasonable levels, and the implementation of internal quality and efficiency enhancement measures[23](index=23&type=chunk) - The company will continue to combine organic growth with external expansion, increasing R&D investment to explore new application areas such as electronic and semiconductor materials, high-end automotive equipment materials, and biomedical materials[24](index=24&type=chunk) Sales to Top Five Customers | Period | Total Sales to Top Five Customers (RMB) | Percentage of Operating Revenue | | :--- | :--- | :--- | | January-March 2019 | 97,253,349.89 | 38.20% | | January-March 2018 | 76,877,663.68 | 30.79% | [Progress of Significant Matters](index=9&type=section&id=3.3%20Progress%20of%20Significant%20Matters) The company reported progress on several key matters, including the ongoing Amcor procurement agreement, the lock-up period for the first employee stock plan, the completion of the 2018 restricted stock grant, and a proposed equity acquisition in Beijing Kehua Microelectronics Materials Co., Ltd - The 300 million RMB master procurement agreement signed with Amcor is still being fulfilled, with approximately **76.8 million RMB** executed as of the end of the reporting period[26](index=26&type=chunk) - The 2018 Restricted Stock Incentive Plan completed registration on January 10, 2019, granting **5.988 million** restricted shares to **83** incentive recipients at a grant price of **3.59 RMB/share**[27](index=27&type=chunk)[28](index=28&type=chunk) - The company signed an external investment framework agreement in January 2019, proposing to acquire a **3.67%** equity stake in Beijing Kehua Microelectronics Materials Co., Ltd. for no more than **19.98 million RMB**, with the transaction pending a final agreement[29](index=29&type=chunk) [Financial Statements](index=12&type=section&id=Item%204.%20Financial%20Statements) [Financial Statements](index=12&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2019, encompassing the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=12&type=section&id=4.1.1%20Consolidated%20Balance%20Sheet) As of March 31, 2019, total assets were **1.73 billion RMB** (down **2.16%**), total liabilities were **169 million RMB** (down **32.62%** due to M&A payments), and equity attributable to owners of the parent company was **1.56 billion RMB** (up **2.89%**) Key Consolidated Balance Sheet Items | Item | March 31, 2019 (RMB) | December 31, 2018 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,730,108,946.11 | 1,768,265,915.79 | -2.16% | | Total Liabilities | 169,369,265.94 | 251,377,395.90 | -32.62% | | Total Equity Attributable to Parent Company Owners | 1,560,739,680.17 | 1,516,888,519.89 | 2.89% | [Consolidated Income Statement](index=18&type=section&id=4.1.2%20Consolidated%20Income%20Statement) In Q1 2019, total operating revenue reached **255 million RMB** (up **1.97%**), total operating costs decreased **8.22%** to **205 million RMB**, and net profit attributable to owners of the parent company surged **91.49%** to **41.7 million RMB** Key Consolidated Income Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 254,620,503.63 | 249,704,290.43 | 1.97% | | Total Operating Costs | 204,628,198.94 | 222,961,066.62 | -8.22% | | Operating Profit | 52,682,152.57 | 27,457,351.90 | 91.87% | | Net Profit | 41,695,480.28 | 21,774,111.02 | 91.49% | | Basic Earnings Per Share | 0.16 | 0.08 | 100.00% | [Consolidated Cash Flow Statement](index=22&type=section&id=4.1.3%20Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities surged **637.90%** to **67.94 million RMB**, while investing activities saw a **145 million RMB** net outflow due to M&A payments and wealth management product purchases, with no financing activity Key Consolidated Cash Flow Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 67,940,458.71 | 9,207,228.16 | 637.90% | | Net Cash Flow from Investing Activities | -144,808,707.93 | -13,013,374.14 | -1,012.77% | | Net Cash Flow from Financing Activities | 0.00 | -342,562.50 | Not Applicable | | Net Increase in Cash and Cash Equivalents | -78,794,969.20 | -7,385,480.27 | -967.00% | [Notes on Financial Statement Adjustments](index=26&type=section&id=4.2%20Notes%20on%20Financial%20Statement%20Adjustments) The company adopted new financial instrument, revenue, and lease standards effective January 1, 2019, which did not impact the opening balances of the consolidated and parent company balance sheets - The company adopted new financial instrument, revenue, and lease standards for the first time, but according to the adjustment notes, this accounting policy change did not result in adjustments to relevant items in the 2019 opening financial statements[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Audit Report](index=29&type=section&id=4.3%20Audit%20Report) The company's Q1 2019 report is unaudited - This quarterly report is unaudited[65](index=65&type=chunk)

Raw Material Costs and Procurement - The company faced significant pressure from rising raw material prices, which have been increasing since the end of 2016, impacting product costs and profit margins[6]. - The company plans to enhance negotiations with long-term suppliers and control raw material procurement to manage costs effectively[6]. - The company has implemented a proactive procurement strategy for raw materials expected to rise in price, effectively controlling costs[36]. - The company maintains long-term relationships with suppliers to ensure stable procurement of raw materials, primarily petroleum-based[36]. - The company faces risks from raw material price volatility, which has been increasing since the end of 2016, potentially impacting product costs and profit margins[110]. Financial Performance - The company's operating revenue for 2018 was ¥1,016,347,696.22, representing a 19.06% increase compared to ¥853,608,371.88 in 2017[26]. - The net profit attributable to shareholders for 2018 was ¥83,681,217.92, a significant increase of 93.15% from ¥43,323,516.73 in 2017[26]. - The net cash flow from operating activities reached ¥229,346,822.23 in 2018, marking a 364.91% increase from ¥49,331,548.19 in 2017[26]. - The basic earnings per share for 2018 was ¥0.32, up 77.78% from ¥0.18 in 2017[26]. - The total assets at the end of 2018 were ¥1,768,265,915.79, a 2.19% increase from ¥1,730,430,765.69 at the end of 2017[26]. Research and Development - The company has over 100 types of adhesive products, including polyurethane adhesives for various applications in packaging, printing, and automotive industries[35]. - Significant investment in R&D has led to the development of high-concentration coating composite adhesives, reducing VOC emissions for downstream customers[40]. - The company has applied for a total of 154 invention patents, with 132 granted and 22 accepted, along with 19 utility model patents, all granted[49]. - The company's R&D investment for the reporting period was CNY 51.24 million, accounting for 5.04% of operating revenue[49]. - The company increased its R&D investment to ¥51,235,080.17 in 2018, representing 5.04% of operating revenue, down from 5.70% in 2017[89]. Market Adaptation and Product Development - The adhesive market is experiencing rapid technological advancements, and the company aims to attract top talent to maintain its competitive edge in innovation[7]. - The company is closely monitoring market changes to adapt its product offerings, particularly focusing on environmentally friendly products as solvent-based products decline[10]. - The company launched a new dual-component water-based acrylic composite adhesive, enhancing its product offerings in the soft packaging sector[41]. - The company launched a series of new products, including solvent-free polyurethane structural adhesives and environmentally friendly hot melt adhesives, targeting various construction and energy-saving applications[59]. - The company has successfully developed a dual-component water-based adhesive that addresses the low strength issues of single-component water-based adhesives, expanding its application range[57]. Risk Management and Internal Controls - The company emphasizes the importance of risk management and internal controls as it expands its business operations[8]. - The company acknowledges the impact of macroeconomic factors and regulatory changes on its business performance and is taking steps to mitigate these risks[12]. - The company is aware of the risks associated with goodwill impairment from its acquisition of Wuhan Huason Plastic Co., which has met performance commitments from 2016 to 2018[14]. - The company is at risk of not keeping pace with rapid technological advancements in the adhesive market, which could affect its competitive edge[111]. - The company acknowledges the risk of goodwill impairment related to its acquisition of Wuhan Huasen Plastic Co., which could adversely affect its profits if future performance does not meet expectations[116]. Shareholder Returns and Profit Distribution - The company reported a cash dividend of 2.10 RMB per 10 shares, with no bonus shares issued, based on a total of 266,639,171 shares[14]. - The company has a profit distribution policy prioritizing cash dividends, aiming to distribute at least 10% of the annual distributable profit in cash[120]. - The company has consistently distributed cash dividends over the past three years, with the amounts being RMB 42,720,000 in 2016, RMB 52,130,234.20 in 2017, and RMB 55,994,225.91 in 2018[127]. - The company’s cash dividend distribution for 2018 represents 100% of the total profit distribution amount[124]. - The company ensures that minority shareholders have opportunities to express their opinions regarding profit distribution[124]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[200]. - The independent directors have confirmed their agreement with the profit distribution proposal for 2018[126]. - The company has established a commitment to compensate for any economic losses incurred due to violations of the stated commitments[133]. - The company has pledged to adhere to fair and transparent principles in any future related transactions, ensuring that no preferential treatment is given compared to third-party transactions[133]. - The company has confirmed that it will not engage in any business activities that could directly or indirectly compete with its own operations in the future[134]. Social Responsibility and Environmental Compliance - The company invested a total of RMB 7.837 million in environmental safety equipment and systems in 2018 to ensure compliance with safety and environmental standards[169]. - The company donated RMB 100,000 to the Beijing University of Chemical Technology Education Foundation for scholarships and RMB 112,500 for local poverty alleviation efforts during the reporting period[170]. - The company does not belong to the key pollutant discharge units as per environmental protection department announcements, and all waste gas and water treatment systems are operating normally[172]. - The company has established an environmental risk prevention system and conducts regular self-monitoring of environmental impacts[172]. - The company actively participates in charity fundraising activities, demonstrating its commitment to social responsibility[170].

Financial Performance - Operating revenue for the reporting period was CNY 264,800,486.34, an increase of 1.93% year-on-year, while revenue for the year-to-date reached CNY 767,361,963.04, up 30.79%[9] - Net profit attributable to shareholders for the reporting period was CNY 29,663,277.29, a decrease of 2.07% year-on-year, with year-to-date net profit at CNY 66,597,032.57, an increase of 39.07%[9] - Basic earnings per share for the reporting period were CNY 0.1138, down 2.07% year-on-year, while year-to-date basic earnings per share increased by 22.31% to CNY 0.2555[9] - Total operating revenue for the period was CNY 264,800,486.34, an increase from CNY 259,797,454.70 in the previous period, representing a growth of approximately 1.9%[40] - Net profit for the period was CNY 29,663,277.29, slightly down from CNY 30,291,479.53, reflecting a decrease of approximately 2.1%[42] - Operating profit for the period was CNY 56,698,666.91, up from CNY 46,225,003.54, reflecting a growth of 22.8% year-over-year[54] - The net profit for Q3 2018 was CNY 57,301,966.07, an increase of 23.9% compared to CNY 46,496,444.14 in Q3 2017[54] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 144,868,548.90, a significant increase of 635.25%[9] - Cash flow from operating activities generated a net amount of CNY 144,868,548.90, significantly higher than CNY 19,703,401.14 in the previous year, indicating a growth of 634.5%[55] - Total cash inflow from operating activities was CNY 598,439,308.26, compared to CNY 421,921,612.45 in the same period last year, representing a 41.9% increase[55] - Cash outflow for operating activities totaled CNY 453,570,759.36, compared to CNY 402,218,211.31 in the same period last year, reflecting a 12.8% increase[55] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,715,885,048.58, a decrease of 0.84% compared to the end of the previous year[9] - The total amount of restricted shares at the end of the period was 57,336,179 shares, with no shares released during the reporting period[16] - The total liabilities decreased from RMB 274,961,646.51 to RMB 245,949,131.03, indicating improved financial stability[35] - The company's cash and cash equivalents decreased from RMB 146,157,608.85 to RMB 102,280,872.95[33] - The company's current assets totaled RMB 732,527,322.02, showing an increase from RMB 720,729,111.04 at the beginning of the period[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,530[12] - The largest shareholder, Gaojin Technology Industry Group Co., Ltd., held 23.84% of the shares[12] - The company has an ongoing employee stock ownership plan, with a total subscription amount not exceeding ¥112 million, and the lock-up period is 36 months[23] Research and Development - Research and development expenses increased by ¥14.39 million, a growth of 57.13%, totaling ¥39.59 million in the first nine months of 2018[20] - Research and development expenses rose significantly to CNY 22,586,244.25, compared to CNY 12,045,931.10 in the previous period, marking an increase of about 87.5%[40] Tax and Dividend - The company’s tax expenses increased by ¥11.69 million, a rise of 106.74%, totaling ¥22.65 million[21] - The company implemented a cash dividend policy, distributing RMB 2.00 per 10 shares, totaling RMB 52,130,234.20, which was executed on July 4, 2018[27] Market Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[48]