广东银禧科技股份有限公司 2020 年年度报告全文 广东银禧科技股份有限公司 2020 年年度报告 2021 年 04 月 1 广东银禧科技股份有限公司 2020 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 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。 公司负责人谭颂斌、主管会计工作负责人顾险峰及会计机构负责人(会计主 管人员)顾险峰声明：保证本年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 立信会计师事务所（特殊普通合伙）出具了信会师报字【2021】第 ZL10124 号的保留意见审计报告，本公司董事会、监事会对相关事项出具了专项说明， 独立董事对该事项发表了独立意见，敬请投资者关注相关内容。 本报告中如有涉及未来的计划、业绩预测等方面的内容，均不构成本公司 对任何投资者及相关人士的承诺，投资者及相关人士均应对此保持足够的风险 认识，并且应当理解计划、预测与承诺之间的差异。 公司在生产经营中可能存在原材料价格供应及价格变动、产品市场竞争加 剧、技术人员流失及失密等 ...

广东银禧科技股份有限公司 2020 年第三季度报告全文 广东银禧科技股份有限公司 2020 年第三季度报告 2020 年 10 月 1 广东银禧科技股份有限公司 2020 年第三季度报告全文 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。 公司负责人谭颂斌、主管会计工作负责人顾险峰及会计机构负责人(会计主 管人员)顾险峰声明：保证季度报告中财务报表的真实、准确、完整。 2 广东银禧科技股份有限公司 2020 年第三季度报告全文 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 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 1,565,803,419.37 | 1,455,237,221.21 | | 7.60% | | 归属于上市公司股东的净资产 | 1,075,599,35 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥654,632,090.66, a decrease of 13.58% compared to ¥757,541,103.93 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥27,835,745.93, down 55.45% from ¥62,483,417.21 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥33,062,504.67, an increase of 290.22% compared to a loss of ¥17,380,988.33 in the same period last year[20]. - The basic earnings per share decreased by 50.00% to ¥0.0619 from ¥0.1238 in the same period last year[20]. - The gross margin for modified plastic products was 18.30%, an increase of 2.52 percentage points compared to the same period last year[42]. - The company's modified plastic product business generated revenue of CNY 588.07 million, a year-on-year decline of 11.33%[43]. - The company reported a net loss of CNY 333,431,495.05 as of June 30, 2020, an improvement from a net loss of CNY 361,267,240.98 at the end of 2019[160]. - The total comprehensive income for the first half of 2020 was 4,262,082.63 CNY, reflecting a decrease compared to the previous period[189]. Cash Flow and Assets - The net cash flow from operating activities was ¥67,121,754.95, a slight increase of 1.26% from ¥66,284,626.10 in the previous year[20]. - The company's cash and cash equivalents increased by 111.09% to CNY 6,040,413.23, primarily due to reduced bank loan repayments[46]. - The total assets at the end of the reporting period were ¥1,448,801,899.35, a decrease of 0.44% from ¥1,455,237,221.21 at the end of the previous year[20]. - The company's total liabilities decreased from CNY 437,608,354.07 at the end of 2019 to CNY 395,566,105.18 as of June 30, 2020, representing a reduction of approximately 9.6%[159][160]. - The cash inflow from investment activities totaled 181,570,936.63 CNY, while cash outflow was 195,022,969.05 CNY[178]. Research and Development - The company has a total of 109 authorized patents as of June 30, 2020, with 4 new patents granted during the reporting period[36]. - Research and development expenses were CNY 37,337,477.42, down by 9.92% year-on-year, reflecting a focus on efficiency[46]. - The company is focusing on continuous R&D investment to enhance its technological innovation capabilities and develop differentiated products to mitigate market competition risks[73]. Market and Industry Trends - The company has a strong customer base in the modified plastics industry, including major clients like Gree Electric and Philips, contributing to stable revenue[27]. - The company is positioned to benefit from the increasing demand for modified plastics driven by the rapid development of the new energy vehicle industry[29]. - The modified plastics industry is expected to see consolidation, with leading companies likely to achieve growth rates exceeding the industry average due to rising technical and scale barriers[32]. Risks and Challenges - The company faces risks related to raw material price fluctuations, intensified market competition, and potential loss of technical personnel[5]. - Raw material costs account for approximately 90% of the company's operating costs, with fluctuations in prices linked to global oil prices, impacting profit margins[71]. - The company faced risks from the COVID-19 pandemic, which delayed production and increased management costs, negatively impacting performance[79]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total number of pledged shares by controlling shareholder Tan Songbin and Ruichen Investment reached 120,943,712 shares, accounting for 99.89% of their holdings and 26.74% of the company's total shares[78]. - The company has made commitments to shareholders regarding financial support and compliance with regulations[88]. Legal and Compliance Matters - The company is currently involved in ongoing litigation regarding performance compensation matters with Chen Zhiyong and Hu Enci[86]. - The company reported a lawsuit against former shareholders for performance compensation debts amounting to ¥13,961.09 million, which is currently under litigation[92]. - The company has successfully won several lawsuits, including a claim for ¥54.23 million and ¥43.8 million, both resulting in favorable outcomes[93].

Financial Performance - The company reported a total revenue of 1.5 billion RMB for the year 2019, representing a year-on-year increase of 15%[13]. - The net profit attributable to shareholders was 200 million RMB, which is a 10% increase compared to the previous year[13]. - In 2019, the company's operating revenue was ¥1,511,471,027, a decrease of 33.20% compared to ¥2,262,760,303.64 in 2018[18]. - The net profit attributable to shareholders was ¥10,083,553.21, marking a significant turnaround from a loss of ¥805,175,824.86 in 2018, representing a 101.25% increase[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥107,400,589.66, an improvement of 91.96% from -¥1,336,470,265.10 in 2018[18]. - The net cash flow from operating activities was ¥63,494,000.36, down 65.08% from ¥181,836,991.52 in 2018[18]. - Total assets at the end of 2019 were ¥1,455,237,221.21, a decrease of 37.06% from ¥2,312,163,603.38 at the end of 2018[18]. - The net assets attributable to shareholders decreased by 25.31% to ¥997,885,562.58 from ¥1,336,052,770.73 in 2018[18]. - The company reported a significant decline of 91.83% in revenue from the CNC metal precision structural parts segment, totaling ¥29,395,796.49[48]. - The company’s net profit for the year was ¥10.35 million, a significant recovery from a loss of ¥813.37 million in the previous year[69]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next three years[5]. - The company aims to achieve a revenue growth target of 20% for the fiscal year 2020[5]. - The company is focused on expanding its market presence in the modified plastics sector, which is expected to continue growing due to increasing demand in various industries[26]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[5]. - The company plans to enhance R&D and promotion of new high-margin products to optimize product structure and expand market share[42]. - The company plans to continuously invest in capital, talent, and technology to enhance its research capabilities and develop differentiated modified plastic products to avoid intense market competition[101]. Research and Development - The company has allocated 100 million RMB for research and development in new technologies for the upcoming fiscal year[5]. - The company holds 108 authorized patents as of December 31, 2019, with 15 new patents granted during the reporting period, including 5 invention patents and 10 utility model patents[35]. - Research and development expenses for 2019 were approximately ¥86.09 million, a decrease of 21.70% compared to 2018[62]. - R&D investment accounted for 5.70% of operating revenue in 2019, an increase from 4.86% in 2018[64]. - The company aims to enhance its competitive edge through continuous investment in technological innovation and R&D[35]. Operational Challenges and Risks - Risk factors include fluctuations in raw material prices and increased market competition, which have been addressed in the company's strategic planning[5]. - The company faces risks related to raw material supply and price fluctuations, with raw material costs typically accounting for around 90% of operating costs[99]. - The company is exposed to intensified market competition in the modified plastics industry, with many small enterprises causing disorderly competition[100]. - The company has paused investments in the cobalt project due to declining market prices and will assess future investments based on market conditions[106]. Shareholder and Dividend Information - There are no plans for cash dividends or stock bonuses for the year 2019, focusing instead on reinvestment into the business[6]. - The company reported a total cash dividend of 4,606,728.96 RMB for the year 2019, which represents 45.69% of the net profit attributable to shareholders[113]. - The company did not distribute any cash dividends or increase share capital from capital reserves in 2019 due to a net loss in 2018 and ongoing recovery from operational challenges[115]. - The company has not proposed any cash dividend distribution plan for 2019 despite having a positive profit available for distribution[118]. Legal and Compliance Issues - The company has faced penalties for violations related to stock trading, including a public reprimand from the Shenzhen Stock Exchange for passive liquidation that led to non-compliance with disclosure requirements[154]. - The company is involved in ongoing litigation regarding performance compensation claims against former shareholders of Xingke Electronics, with amounts of RMB 139.61 million and RMB 200.32 million involved in separate cases[153]. - The company has not violated any commitments regarding shareholding reductions, with a maximum of 25% of indirect holdings allowed to be sold annually during the tenure of key personnel[125]. Asset Management and Financial Position - The company has completed the deregistration of its subsidiary, Xingke Precision Technology, which had not commenced actual operations since its establishment in December 2017[147]. - The company transferred 60% of its equity in Dongguan Hengdao Electronic Technology to optimize its business structure, resulting in Hengdao no longer being a subsidiary[148]. - The company has maintained its accounting firm, Lixin CPA, for four consecutive years, with an audit fee of RMB 800,000[151]. - The company has actively fulfilled its social responsibilities, including supporting impoverished students and establishing scholarships[180]. Employee and Management Practices - The company has established a competitive employee benefits system to attract and retain talented researchers, including profit-sharing and patent rewards for core technical personnel[102]. - The company has implemented changes to its accounting policies effective from January 1, 2019, in accordance with the new financial instrument standards issued by the Ministry of Finance[141].

Financial Performance - Total revenue for Q1 2020 was ¥238,973,702.57, a decrease of 43.11% compared to ¥420,029,664.94 in the same period last year[8] - Net profit attributable to shareholders was -¥10,880,557.65, representing a decline of 105.66% from ¥192,190,111.22 year-on-year[8] - Basic and diluted earnings per share were both -¥0.02, a decrease of 105.26% compared to ¥0.38 in the same period last year[8] - Operating revenue decreased by 43.11% to ¥238,973,702.57 compared to the same period last year, mainly due to a significant drop in revenue from modified plastics[23] - The company reported a net loss of CNY -372,147,798.63 in retained earnings[54] - The net profit for Q1 2020 was a loss of CNY 12,781,151.17, compared to a profit of CNY 190,788,897.15 in Q1 2019, indicating a significant decline in profitability[61] - The company's operating profit for Q1 2020 was a loss of CNY 11,656,190.97, down from a profit of CNY 182,641,001.30 in the previous year, reflecting a drastic change in operational performance[61] - The total comprehensive income for Q1 2020 was a loss of CNY 13,494,060.46, compared to a comprehensive income of CNY 189,428,760.39 in the previous year, marking a significant downturn[62] Cash Flow - Net cash flow from operating activities was -¥10,569,839.48, down 128.98% from ¥36,478,043.13 in the previous year[8] - Cash received from sales and services was 229.78 million yuan, down 45.69% from 423.06 million yuan in the previous period[25] - Cash received from other operating activities decreased by 78.32%, from 17.92 million yuan to 3.88 million yuan[25] - Cash paid for purchasing goods and services fell by 35.91%, from 290.72 million yuan to 186.32 million yuan[25] - Cash paid to employees decreased by 39.00%, from 46.29 million yuan to 28.24 million yuan[25] - Cash inflow from operating activities totaled 233,666,148.19 CNY, down from 440,976,276.84 CNY, reflecting a decrease of approximately 47%[68] - Cash outflow from operating activities was 244,235,987.67 CNY, compared to 404,498,233.71 CNY in the prior period, representing a reduction of about 40%[69] - The net cash flow from investing activities was 66,904,661.70 CNY, a turnaround from -9,649,246.14 CNY in the previous period, showing improved investment performance[70] - The net cash flow from financing activities was -28,499,020.23 CNY, an improvement from -92,572,944.06 CNY in the previous period, indicating better management of financing activities[70] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,342,141,948.44, a decrease of 7.77% from ¥1,455,237,221.21 at the end of the previous year[8] - Total liabilities decreased to CNY 338,007,141.75 from CNY 437,608,354.07[52] - Current liabilities decreased significantly to CNY 197,124,211.79 from CNY 296,385,476.13[52] - Accounts receivable decreased to ¥277,856,426.88 from ¥357,993,724.53, indicating a decline of about 22.3%[49] - The company's inventory decreased from ¥263,016,435.16 to ¥241,989,066.42, reflecting a reduction of approximately 8.0%[49] - The total current assets decreased to ¥897,665,875.49 from ¥998,528,321.79, showing a decline of about 10.1%[49] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,386[12] - The top shareholder, Shihezi Ruichen Equity Investment Partnership, held 20.01% of shares, totaling 90,528,992 shares[12] - As of March 31, 2020, the controlling shareholder has pledged 124,000,112 shares, representing 99.90% of their holdings, raising concerns about potential forced liquidation due to stock price volatility[39] - The controlling shareholder's shares have been frozen, with a total of 83,994,692 shares frozen and 112,486,994 shares subject to provisional freezing[41] Market and Operational Risks - The company is facing risks related to raw material price fluctuations, which generally account for about 90% of operating costs[32] - The company is at risk of intensified market competition due to the low concentration in the domestic modified plastics industry[33] - The 3D printing business faces uncertainty with a long development cycle, and the company expects limited profitability in the short term despite some successful product launches[36] - The cobalt business has been paused due to declining market prices, with future investments contingent on market conditions and political stability in the Democratic Republic of Congo[37] Research and Development - The company has made progress in several R&D projects, including small batch supply of thermoplastic flame retardant materials, which are pioneering applications in the power battery industry[30] - The company aims to continuously increase R&D investment to ensure its technological innovation capabilities[34] - Research and development expenses for Q1 2020 amounted to CNY 15,471,740.44, down from CNY 19,739,444.86 in Q1 2019, showing a decrease of approximately 22%[60] Government and Subsidies - The company reported government subsidy income of 67.91 million yuan for Q1 2020, a decrease from 435.37 million yuan in Q1 2019[35] - Other income decreased by 84.40% to ¥679,146.62, primarily due to a reduction in government subsidies recognized during the reporting period[24] Legal and Compliance - The company is closely monitoring the legal disputes involving its controlling shareholder and the implications for its operations[41] - There were no violations regarding external guarantees during the reporting period[44] - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[45]

Financial Performance - Operating revenue for the period was CNY 366,199,830.73, a decrease of 36.44% year-on-year[8] - Net profit attributable to shareholders was a loss of CNY 24,503,611.43, a change of 131.57% compared to the same period last year[8] - Basic earnings per share were -CNY 0.0458, a change of 118.10% year-on-year[8] - Total revenue decreased by 36.74% year-on-year to CNY 1,123,740,934.66, primarily due to a significant decline in revenue from Xingke Electronics Technology and modified plastics[20] - The total operating revenue for Q3 2019 was ¥366,199,830.73, a decrease of 36.4% compared to ¥576,152,039.84 in the same period last year[45] - Net loss for Q3 2019 amounted to ¥24,193,898.18, compared to a net loss of ¥10,385,136.04 in Q3 2018, representing a year-on-year increase in loss of 133.5%[46] - The total comprehensive loss for Q3 2019 was ¥25,021,826.95, compared to a loss of ¥10,762,435.78 in the previous year, reflecting an increase in comprehensive loss of 132.5%[47] - The company reported an investment income of ¥5,600,763.65, compared to ¥501,500.18 in the same period last year, showing a significant increase[45] Assets and Liabilities - Total assets decreased by 29.06% to CNY 1,640,161,005.39 compared to the end of the previous year[8] - Total current assets decreased from CNY 1,626,443,886.79 to CNY 1,046,008,297.37, a decline of approximately 35.5%[35] - Total non-current assets decreased from CNY 685,719,716.59 to CNY 594,152,708.02, a decline of about 13.3%[36] - Total liabilities decreased from CNY 960,415,799.84 to CNY 594,638,814.96, a reduction of approximately 38.0%[37] - Total equity decreased from CNY 1,351,747,803.54 to CNY 1,045,522,190.43, a reduction of approximately 22.6%[38] - The company’s total assets decreased from ¥1,818,116,189.70 to ¥1,446,487,085.82, a reduction of 20.3%[43] - The company’s total liabilities decreased to ¥400,005,521.82 from ¥506,902,583.84, reflecting a reduction of 21%[43] Cash Flow - Cash flow from operating activities decreased by 47.40% to CNY 63,691,466.63 year-to-date[8] - Cash received from sales and services decreased by 44.28% to ¥1,093,928,325.08 compared to ¥1,963,174,295.18 in the previous period[23] - Cash paid for purchasing goods and services decreased by 45.01% to ¥803,887,190.64, reflecting a decline in operating income[23] - Cash paid to employees decreased by 35.60% to ¥125,657,342.70, attributed to a reduction in workforce[24] - Cash received from financing activities decreased by 69.93% to ¥16,461,827.85, primarily due to a reduction in bank guarantee refunds[26] - The net cash flow from operating activities was -49,774,024.22 CNY, compared to -61,659,585.68 CNY in the previous quarter, indicating an improvement of approximately 19.5%[65] - The net cash flow from financing activities was -57,417,378.43 CNY, an improvement from -131,892,371.20 CNY in the previous quarter, reflecting a 56.5% reduction in cash outflow[66] Shareholder Information - The company had 27,963 total shareholders at the end of the reporting period[12] - The top shareholder, Shihezi Ruichen Equity Investment Partnership, held 21.06% of shares[12] - The company did not engage in any repurchase transactions during the reporting period[13] Investment and Expenses - Long-term equity investments increased by 118.65% to CNY 37,996,462.65, driven by investments in Dongguan Jinghang New Materials and a change in accounting method for Suzhou Yinxin New Energy[20] - Research and development expenses for Q3 2019 were ¥20,553,781.28, a decrease of 22.9% from ¥26,615,564.98 in the previous year[45] - Research and development expenses for the third quarter amounted to CNY 4,623,661.51, a decrease from CNY 5,388,719.54 in the prior year[49] Other Financial Metrics - Cash flow from investing activities showed a net inflow of ¥74,564,782.70, compared to a net outflow of ¥109,210,194.20 in the previous period[62] - The company reported a significant increase in asset disposal losses, with a year-on-year change of 5,224.58%[22] - The company’s inventory decreased from CNY 317,838,717.98 to CNY 279,614,226.02, a decline of approximately 12.0%[35] - The company’s retained earnings showed a negative balance of -371,350,794.19 CNY, indicating accumulated losses[71]

Financial Performance - The company reported a revenue of 1.2 billion RMB for the first half of 2019, representing a year-on-year increase of 15%[14]. - The net profit attributable to shareholders was 150 million RMB, up 20% compared to the same period last year[14]. - The company aims for a revenue growth target of 20% for the full year 2019[14]. - Total revenue for the reporting period was ¥757,541,103.93, a decrease of 36.89% compared to ¥1,200,277,225.30 in the same period last year[20]. - Net profit attributable to shareholders was ¥62,483,417.21, an increase of 51.76% from ¥41,171,434.06 year-on-year[20]. - The company reported a net loss of ¥4.00 million for Xingke Electronics Technology, a decline of 218.02% year-on-year, negatively impacting overall profitability[53]. - The company reported a fair value change gain of 74.85 million yuan during the first half of 2019[49]. - The company reported a net profit of 6,330,522.04 RMB from its subsidiary Yinxin Plastics, contributing significantly to overall performance[87]. - The company reported a net loss of CNY 1,296 million in the current period, compared to a net profit in the previous period, indicating a substantial decline in profitability[197]. Research and Development - The company has allocated 200 million RMB for R&D in advanced manufacturing technologies over the next two years[14]. - Research and development expenses decreased by 23.10% to ¥41.45 million compared to ¥53.90 million in the previous year[56]. - The company focuses on continuous technological innovation and has increased R&D investment to enhance its innovation capabilities[43]. - The company plans to enhance its technological research and development capabilities by continuously investing in capital, talent, and technology[92]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2021[14]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[14]. - The company has established a marketing network primarily in South China, with expansions into overseas markets including India, South Korea, the UK, and the US[35]. - The company is focusing on expanding its 3D printing materials business, enhancing product performance, and developing new customer channels through various platforms[51]. Risks and Challenges - The company faces risks related to raw material price fluctuations and increased market competition, with strategies in place to mitigate these risks[5]. - The company faces risks related to raw material supply and price fluctuations, with raw material costs generally accounting for about 90% of operating costs[90]. - The cobalt business, established in 2017, faces operational risks due to local political instability and infrastructure challenges in the Democratic Republic of the Congo[97]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,780,032,046.28, down 23.01% from ¥2,312,163,603.38 at the end of the previous year[20]. - Total liabilities decreased from CNY 960,415,799.84 to CNY 706,452,588.02, a decline of about 26.4%[172]. - The company reported a significant decrease in cash and cash equivalents to ¥78,372,518.23, which is 4.40% of total assets, down from 5.63% in the previous year[64]. - The company’s total liabilities at the end of the reporting period were CNY 308,867.3 million, compared to CNY 308,000 million in the previous period, indicating a slight increase[198]. Shareholder and Equity Information - There are no plans for cash dividends or stock bonuses for the current fiscal year[6]. - The company has not engaged in any significant asset or equity sales during the reporting period, maintaining its asset base[84][85][119]. - The company has a high pledge ratio, with 99.91% of the shares held by Tan Songbin and associated parties being pledged[99]. - The total number of shares pledged by controlling shareholder Tan Songbin and associated parties reached 138,815,584 shares, accounting for 30.69% of the company's total shares[99]. Legal and Compliance - The company is currently involved in a lawsuit against Chen Zhiyong regarding performance compensation debts, with the amount involved being 13,961.09 million yuan[108]. - The company has ongoing litigation involving its actual controllers, with a financial loan dispute currently under judgment[112]. - The company received a regulatory letter from Shenzhen Stock Exchange due to discrepancies between actual profits and estimated net profits in the annual report[139]. Operational Efficiency - Operating cash flow net amount was ¥66,284,626.10, up 30.94% from ¥50,620,684.50 in the same period last year[20]. - The cash flow from operating activities increased by 30.94% to ¥66.28 million, indicating improved cash management despite reduced cash inflows[56]. - The company reported a total cash outflow of 270,944,012.67 CNY from operating activities, slightly down from 276,824,866.87 CNY in the previous year, indicating a marginal improvement in cash management[189]. Investment and Subsidiaries - The company has established a new energy materials subsidiary in Suzhou, focusing on composite materials for electric vehicle battery enclosures, improving energy density by approximately 10%[39]. - The company has established Dongguan Jinghang New Materials Investment Partnership (Limited Partnership) through its subsidiary Suzhou Yinxin Technology[141]. - The company has completed the transfer of 60% equity in Dongguan Hengdao Electronics Technology Co., Ltd. to its shareholders, with the registration procedures finalized[140]. Employee and Management - The company has established a complete employee benefits system to attract and retain talented researchers, including profit-sharing and patent rewards for core technical personnel[93]. - The company’s management team remains unchanged during the reporting period[162].

Financial Performance - Total revenue for Q1 2019 was CNY 420,029,664.94, a decrease of 33.97% compared to CNY 636,110,437.37 in the same period last year[8]. - Net profit attributable to shareholders increased by 283.20% to CNY 192,190,111.22 from CNY 50,154,365.72 year-on-year[8]. - Net profit after deducting non-recurring gains and losses dropped by 92.01% to CNY 3,478,663.30 from CNY 43,543,913.90 in the previous year[8]. - Basic and diluted earnings per share rose by 280.00% to CNY 0.38 from CNY 0.10 in the same period last year[8]. - The weighted average return on equity increased to 13.42%, up by 11.20% from 2.22% in the previous year[8]. - The company's operating revenue for the reporting period was 420.03 million yuan, a year-on-year decrease of 33.97%[30]. - The net profit attributable to the parent company increased by 283.20% year-on-year, amounting to 192.19 million yuan[30]. - The company reported a net loss of CNY 179,160,682.96, an improvement compared to a net loss of CNY 371,350,794.19 in the previous period[58]. - Total operating revenue for Q1 2019 was CNY 420,029,664.94, a decrease of 34% compared to CNY 636,110,437.37 in the same period last year[64]. - Total operating costs for Q1 2019 were CNY 423,034,900.74, down from CNY 586,134,103.06, reflecting a reduction of approximately 28%[64]. Cash Flow and Liquidity - Operating cash flow improved significantly, with a net cash flow from operating activities of CNY 36,478,043.13, a change of 137.68% compared to a negative cash flow of CNY -96,818,633.77 last year[8]. - The cash received from sales of goods and services decreased by 33.38% year-on-year, totaling 423.06 million yuan[26]. - The cash paid for purchasing goods and services decreased by 48.68% year-on-year, amounting to 290.72 million yuan[26]. - The cash paid for taxes decreased by 83.67% year-on-year, totaling 8.41 million yuan[26]. - The cash flow from financing activities saw a significant decline, with cash received from borrowings decreasing by 78.62% year-on-year[26]. - The cash and cash equivalents decreased significantly from CNY 141,837,122.90 to CNY 68,702,944.13, a drop of approximately 51.5%[55]. - The cash inflow from operating activities totaled CNY 440,976,276.84, compared to CNY 647,265,233.53 in the previous year, reflecting a decrease of about 31.9%[74]. - The cash outflow for operating activities totaled 156,895,247.99 CNY, which is higher than 139,399,137.09 CNY in the previous year, reflecting increased operational expenses[78]. - The cash outflow for investment activities was CNY 9,989,946.14, compared to CNY 29,082,471.25 in the previous year, showing a decrease of about 65.6%[75]. - The cash and cash equivalents at the end of the period were CNY 65,444,125.84, down from CNY 210,117,510.35 at the end of the previous year, indicating a decrease of approximately 68.9%[75]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,278,694,439.68, a decrease of 1.45% from CNY 2,312,163,603.38 at the end of the previous year[8]. - Total liabilities decreased from CNY 960,415,799.84 to CNY 735,890,998.76, a reduction of about 23.4%[57]. - Short-term borrowings decreased by 33.95%, from CNY 385,515,859.03 to CNY 254,632,721.75, as the company repaid a significant amount of short-term debt[19]. - The company's long-term borrowings increased by 52.75%, from CNY 91,000,000.00 to CNY 139,000,000.00, reflecting new long-term debt acquired during the period[19]. - The company's equity attributable to shareholders increased from CNY 1,336,052,770.73 to CNY 1,526,882,745.20, an increase of approximately 14.3%[58]. - The total liabilities amounted to 960,415,799.84 CNY, indicating a stable liability structure compared to the previous reporting period[84]. - The total assets were reported at 2,312,163,603.38 CNY, remaining unchanged from the previous year, suggesting stability in the asset base[84]. Government Subsidies and Other Income - The company received government subsidies amounting to CNY 4,353,702.21 during the reporting period[9]. - In Q1 2019, the company received government subsidies amounting to 4.35 million yuan, a decrease of 42.24% compared to 7.53 million yuan in Q1 2018[39]. - The company reported a 127.27% year-on-year increase in non-operating income, primarily from insurance compensation[26]. - The company's other comprehensive income changed by 95.21%, from CNY -1,428,532.61 to CNY -2,788,669.37, primarily due to foreign exchange differences[20]. Research and Development - The company is in the small-batch trial production phase for a new PC material aimed at enhancing product profitability and market influence[31]. - The company has initiated small-batch supply of a new flame-retardant composite material for the power battery industry[31]. - The company is developing a titanium alloy composite material for mobile phone frames, which significantly reduces processing time and costs while achieving the strength of stainless steel and meeting lightweight requirements[32]. - The company has initiated small-scale trial production of a thermosetting composite material battery box, expanding its product applications into the new energy vehicle materials sector[32]. - The company has completed research on a seamless welding technology for stainless steel elliptical shells, enhancing product strength and aesthetic appeal[33]. - The company is focusing on developing liquid metal zirconium alloy amorphous materials for 3C products, which are expected to become a trend in the industry[32]. - The company is actively pursuing new technologies and materials to meet the increasing consumer demand for strength, aesthetics, and scratch resistance in 3C products[33]. - The company has established a comprehensive employee benefits system to attract and retain talented researchers, including profit-sharing and patent rewards for core technical staff[38]. Risks and Challenges - The company faces risks related to raw material price fluctuations, as raw material costs typically account for about 90% of operating costs, with prices linked to global oil market trends[36]. - The cobalt business, initiated in 2017, presents operational risks due to political instability and differing local regulations in the Democratic Republic of the Congo[42]. - The company has a significant risk of cash compensation claims related to performance commitments, with a maximum remaining compensation amount of 1.04567 billion yuan[42]. - The company has not disclosed any new product developments or market expansion strategies in the current report[87]. Shareholder Information - The top shareholder, Shihezi Ruichen Equity Investment Partnership, holds 19.60% of the shares, with a total of 98,879,328 shares[12]. - As of March 31, 2019, the total number of shares pledged by the controlling shareholder and its concerted parties reached 145,262,785 shares, accounting for 28.79% of the company's total shares[44]. - The controlling shareholder held 34,545,994 shares directly, and together with concerted parties, they controlled 145,362,222 shares, accounting for 28.81% of the total share capital[43]. - The company has repurchased a total of 1,704,900 shares, representing 0.34% of the total share capital, with a total payment of approximately 15.47 million RMB[48]. - The maximum number of compensatory shares for certain individuals is 62,742,496 shares, with a corresponding compensation amount of approximately 675.74 million RMB[43]. Organizational Changes - As of March 29, 2019, the company has adjusted the organizational structure of its subsidiary, Xinke Electronics Technology Co., Ltd.[47]. - The company has terminated the "3D Printing Integrated Industry Internet Service Platform R&D and Innovation Team" project and returned the remaining financial subsidies[46]. - The controlling shareholder has been involved in litigation and arbitration due to share pledge disputes, which are still in the acceptance stage[46]. - The company has extended the share repurchase implementation period by six months, now set to end on July 16, 2019[47].

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2018, representing a year-on-year increase of 15%[14]. - The net profit attributable to shareholders was 150 million RMB, an increase of 10% compared to the previous year[14]. - The company's operating revenue for 2018 was ¥2,262,760,303.64, a decrease of 11.73% compared to ¥2,563,451,379.09 in 2017[20]. - The net profit attributable to shareholders was -¥805,175,824.86, representing a decline of 468.40% from ¥218,558,175.14 in the previous year[20]. - The company reported a significant increase in non-operating income, totaling ¥531,294,440.24 in 2018, compared to ¥20,646,074.73 in 2017[26]. - In 2018, the company achieved operating revenue of 2.263 billion yuan, a decrease of 11.73% year-on-year, and a net profit attributable to shareholders of -805.18 million yuan, a decline of 468.40% compared to the previous year[56]. - The modified plastic business generated operating revenue of 1.733 billion yuan, with a year-on-year growth of 6.08%, although the gross margin decreased by 4.31% due to intensified competition and high material prices[56]. - The LED lighting segment reported operating revenue of 130.58 million yuan, down 28.17% year-on-year, with a net profit of -6.82 million yuan, a decline of 181.33%[58]. Research and Development - The company plans to invest 200 million RMB in R&D for new product development and technology upgrades in 2019[14]. - The company's R&D expenses amounted to CNY 109,948,736.41, reflecting a slight increase of 1.46% from CNY 108,371,278.00 in the previous year[75]. - The total number of R&D personnel was 192 in 2018, accounting for 13.51% of the workforce, an increase from 11.72% in 2017[78]. - The company is focusing on developing new technologies and materials to enhance product competitiveness and expand its market presence[78]. - The company aims to establish a group R&D center to enhance its innovation capabilities and develop new materials[107]. Market Strategy and Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share in the region by 2020[14]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[14]. - The company has established a marketing network primarily in South China and is actively expanding into overseas markets such as India, South Korea, the UK, and the US[37]. - The company aims to leverage its expertise in high polymer materials to expand into the LED lighting and precision metal components markets, which are seen as effective growth strategies[37]. Risks and Challenges - The company is facing risks related to raw material price fluctuations and increased market competition, which have been detailed in the risk management section[5]. - Future performance guidance suggests a revenue growth target of 20% for 2019, with a focus on enhancing operational efficiency[14]. - The competitive landscape in the modified plastics industry is intensifying, with many small players causing market disorder[109]. - The company recognizes the risk of talent loss and technology leakage, which could impact its innovation capabilities[109]. Investments and Acquisitions - The company acquired 66.2% of Xinke Electronics Technology, which has now become a wholly-owned subsidiary, enhancing its capabilities in precision metal structural components[38]. - The company has established a strategic focus on cobalt resources, with significant investments in cobalt operations in the Democratic Republic of Congo (DRC) and domestic initiatives[42]. - The company has invested RMB 81.37 million in a cobalt smelting project, which has not yet met its expected progress and has incurred a loss of RMB 21.15 million[98]. - The company completed the acquisition of a 30% stake in Zhanjiang Rui Xin Investment Management Center for a total consideration of 15 million yuan[166]. Shareholder and Dividend Information - No cash dividends or stock bonuses will be distributed to shareholders for the fiscal year 2018[6]. - The company has not proposed any ordinary share cash dividend distribution plan for the reporting period due to negative earnings[124]. - The company distributed a cash dividend of CNY 1.2 per share to shareholders based on the total share capital of 505,688,470 shares as of December 31, 2017[119]. - The company has a clear cash dividend policy that aligns with its articles of association and shareholder resolutions[120]. Corporate Governance and Compliance - The company has established a comprehensive internal control management system to mitigate management risks associated with rapid expansion and increased investment in new products and markets[112]. - The company has committed to environmental protection measures, including signing a soil pollution prevention responsibility agreement with local government[193]. - The company has maintained transparency and compliance with legal regulations in its information disclosure practices[189]. - The company has no major litigation or arbitration matters reported for the year[151]. Social Responsibility - The company donated RMB 3 million to the Shenzhen Beautiful Gardener Education Foundation for teacher training in underdeveloped areas[190]. - The company also donated RMB 100,000 to the Dongguan High-tech Industry Association for poverty alleviation and other charitable projects[190]. - The company has actively engaged in social responsibility initiatives, including scholarships and support for impoverished students since 2013[189].

Financial Performance - Net profit attributable to shareholders was CNY -10,581,681.26, a decline of 120.61% year-on-year[7] - Operating revenue for the period was CNY 576,152,039.84, down 9.01% compared to the same period last year[7] - Basic earnings per share were CNY -0.0210, a decrease of 120.65% year-on-year[7] - The net profit attributable to the parent company decreased by 80.02% to ¥30,589,752.80, primarily due to a decline in gross margin in the modified plastic segment and poor performance from a subsidiary[23] - The company reported a net loss of CNY 19,265,479.73 for the quarter, compared to a profit in the same period last year[46] - The net profit for the current period is CNY 28.44 million, down from CNY 155.32 million in the previous period, representing a decline of approximately 81.7%[56] - The total profit for the current period is CNY 34.61 million, compared to CNY 138.54 million in the previous period, indicating a decrease of about 75%[56] - The total comprehensive income for the current period is CNY 27.92 million, significantly lower than CNY 155.68 million in the previous period, indicating a decrease of about 82%[57] Cash Flow and Investments - The net cash flow from operating activities increased by 269.78% to CNY 121,092,569.05 year-to-date[7] - Cash received from sales and services rose by 30.99% to ¥1,963,174,295.18, attributed to higher sales revenue in the previous quarter[26] - Cash paid for the purchase of fixed assets rose by 54.02% to ¥91,943,967.10, driven by payments for equipment and mining rights related to a cobalt smelting project[26] - The net cash flow from investing activities was -109,210,194.20 CNY, compared to -395,505,448.80 CNY in the previous period, indicating a significant reduction in cash outflow[63] - The net cash flow from financing activities was -24,631,458.76 CNY, a decrease from 540,529,429.76 CNY in the previous period, reflecting a shift in financing strategy[63] - The company received 668,199,481.11 CNY in borrowings, an increase from 563,462,175.42 CNY in the previous period, indicating a reliance on debt financing[63] Shareholder Information - The company reported a total of 24,028 common shareholders at the end of the reporting period[11] - The largest shareholder, Shihezi Ruichen Equity Investment Partnership, held 20.83% of shares, totaling 105,101,580 shares[11] - There were no agreed repurchase transactions conducted by the top 10 shareholders during the reporting period[12] - The total number of restricted shares at the beginning of the period was 84,847,818, with 3,652,117 shares released during the period, leaving 81,195,701 shares restricted at the end[17] - The company has a commitment to release 25% of newly acquired shares after 12 months, 30% after 24 months, and the remaining after 36 months, contingent on performance obligations being met[17] Asset and Liability Management - Total assets decreased by 5.90% to CNY 3,231,544,426.76 compared to the end of the previous year[7] - Total liabilities decreased to CNY 510,963,435.28 from CNY 374,683,100.40, indicating a significant increase in financial obligations[44] - Non-current assets totaled CNY 1,702,065,329.78, showing a slight increase from CNY 1,691,781,077.14 at the beginning of the period[44] - Long-term borrowings increased by 169.03% to ¥147,700,000.00, reflecting additional long-term financing[19] Operational Efficiency - The company's gross profit margin decreased, with operating costs representing 89.8% of total revenue in the current quarter compared to 81.5% in the previous year[46] - Operating activities generated a net cash flow of -61,659,585.68 CNY, compared to -2,863,606.70 CNY in the previous period, indicating a decline in operational efficiency[65] - Cash inflow from operating activities totaled 390,754,557.49 CNY, down from 435,755,134.08 CNY in the previous year, showing a decrease in revenue generation[65] Research and Development - The company plans to focus on research and development, with R&D expenses totaling CNY 26,615,564.98, down from CNY 29,614,508.65 in the previous year[46] - The company's research and development expenses for the current period are CNY 16.13 million, slightly up from CNY 15.80 million in the previous period[59] Other Financial Metrics - The company reported a 296.65% increase in non-operating expenses, totaling ¥3,615,600.00, mainly due to increased donation expenditures[23] - The foreign currency translation difference decreased by 242.85%, resulting in a loss of ¥512,954.51, due to exchange rate fluctuations[25] - The impact of exchange rate fluctuations on cash and cash equivalents changed by 183.29% year-on-year, primarily due to changes in foreign currency translation differences during the first nine months of this year[13]