Financial Performance - In 2021, the company experienced a significant increase in raw material procurement costs, leading to a substantial rise in operating costs and resulting in a loss for the year[4]. - The company's operating revenue for 2021 was CNY 857,959,380.90, a decrease of 3.05% compared to CNY 884,959,565.29 in 2020[28]. - The net profit attributable to shareholders for 2021 was a loss of CNY 110,660,928.76, representing a decline of 221.22% from a profit of CNY 91,285,666.66 in 2020[28]. - The net cash flow from operating activities was a negative CNY 210,413,189.29, down 240.54% from CNY 149,722,800.60 in the previous year[28]. - The total assets at the end of 2021 amounted to CNY 1,300,898,386.70, an 8.98% decrease from CNY 1,429,321,443.08 at the end of 2020[28]. - The net assets attributable to shareholders decreased by 9.75% to CNY 911,018,198.04 from CNY 1,009,415,970.09 in 2020[28]. - The basic earnings per share for 2021 was CNY -0.23, compared to CNY 0.19 in 2020, marking a decline of 221.05%[28]. - The company reported a total non-operating income of 12,786,672.54 in 2021, a decrease of 10.3% from 14,248,197.15 in 2020[34]. - Government subsidies recognized in the current period amounted to 6,136,768.28 in 2021, up 45.5% from 4,206,293.61 in 2020[34]. - The company experienced a significant increase in non-recurring losses, with a total of CNY 123,447,601.30 for 2021, compared to CNY 77,037,469.51 in 2020, reflecting a 260.24% increase[28]. Market and Industry Trends - The competitive landscape in the automotive coating market is intensifying, with a few companies, including the company, dominating the market[9]. - The company’s main business revenue is closely tied to the automotive industry, making it vulnerable to macroeconomic fluctuations[8]. - In 2021, the Chinese coatings industry produced approximately 38 million tons, with a revenue forecast exceeding 460 billion yuan, reflecting a 16% year-on-year growth[84]. - The price of raw materials for coatings has surged significantly, with key materials like titanium dioxide increasing by nearly 50% year-on-year, impacting overall production costs[85]. - The automotive repair paint market is expected to grow due to an increase in vehicle ownership, with the number of registered vehicles reaching 395 million in 2021, including 30.2 million cars[106]. Research and Development - The company has significantly increased its human resource expenditures by hiring several senior management personnel and core technical staff to support its dual-track strategy of "scientific research-driven and industrial transformation"[5]. - The company has developed a complete product system for cathodic electrophoretic paint, competing effectively with international brands in core technology and product performance[42]. - The company has 11 R&D personnel for cathodic electrophoretic coatings, with 3 invention patents and 6 utility model patents, indicating strong R&D capabilities[63]. - The company is focusing on R&D for functional new materials, including coatings for autonomous driving and aerogel insulation coatings, to enhance product value and competitiveness[76]. - The company established a joint research center with Fudan University to tackle technical challenges in resin, coatings, and related new materials, enhancing R&D capabilities and product technology[76]. Strategic Initiatives - The company aims to develop environmentally friendly coatings, with a target of 70% of total production by 2025, aligning with national sustainability goals[83]. - The company is transitioning from a traditional manufacturing profit model to a "full coating solution service provider," enhancing its integrated coating business[58]. - The company is actively expanding its presence in the passenger vehicle paint market, having established a wholly-owned subsidiary to optimize management and improve operational efficiency[100]. - The company aims to implement a dual-track strategy from 2022 to 2026, focusing on "research-driven and industrial transformation" to enhance technology development in new materials and expand its business through joint ventures and acquisitions[154]. - The company is committed to green production and environmental sustainability, increasing the proportion of water-based paints and improving production processes[169]. Operational Challenges - The company faces risks from fluctuating raw material prices, which have a significant impact on operating costs[7]. - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[29]. - The company emphasizes the importance of retaining talent and effective internal training to mitigate human resource risks[171]. - Potential risks include macroeconomic fluctuations affecting demand, rising raw material costs, and challenges in product development and market expansion[170]. Governance and Management - The company maintains independence from its controlling shareholders in terms of assets, business, personnel, finance, and organization, ensuring a complete business system and independent operational capability[186]. - The company has implemented a robust internal control system to ensure the normal operation of its production and management activities[186]. - The company emphasizes the importance of stakeholder interests, aiming for a balance among social, shareholder, corporate, and employee benefits[183]. - The company reported a change in financial leadership with the appointment of Sui Jingyuan as the new Chief Financial Officer on August 9, 2021, after the resignation of Yan Jiahua[195]. - The company emphasizes the importance of professional backgrounds in its leadership, with members having experience in major corporations like 3M and Kimberly-Clark[197].

Financial Performance - Net profit attributable to shareholders surged by 432.22% to CNY 50,250,101.05 for the current period[7] - Operating revenue rose by 28.81% to CNY 257,365,243.87 for the current period[7] - Basic earnings per share increased by 431.34% to CNY 0.1068[7] - The company reported a net profit of CNY 396,191,886.18, up from CNY 332,717,725.75, indicating an increase of about 19.1%[40] - Net profit for Q3 2020 was ¥49,741,189.22, compared to ¥9,700,769.54 in the previous year, reflecting a significant increase of approximately 413.5%[47] - The company reported a total profit of CNY 71,495,880.02, compared to CNY 27,052,946.30 in the same period last year, an increase of 164.5%[55] - The company expects a net profit attributable to shareholders of approximately 84.22 million CNY for the year, representing a growth of 179.98% compared to the previous year[28] Assets and Liabilities - Total assets increased by 18.09% to CNY 1,389,497,930.29 compared to the end of the previous year[7] - Current assets totaled CNY 1,063,437,310.42, up from CNY 795,355,515.36, indicating a growth of about 33.6% year-over-year[37] - Total liabilities increased significantly, with accounts payable rising by 64.26% to ¥188,108,038.21 due to increased raw material purchases[19] - Total liabilities rose to CNY 410,737,125.74 from CNY 237,668,182.98, marking an increase of about 72.5%[39] - The total liabilities increased to ¥402,751,084.37 from ¥237,776,481.52, showing a rise of approximately 69.3%[46] Cash Flow - Net cash flow from operating activities showed a significant decline, reaching -CNY 56,479,183.02, a decrease of 449.74%[7] - The net cash flow from operating activities was -56,479,183.02 CNY, a decrease compared to 16,148,950.63 CNY in the previous period[63] - Cash inflow from investment activities totaled 590,616,171.95 CNY, with cash outflow at 705,788,591.43 CNY, leading to a net cash flow of -115,172,419.48 CNY[64] - The company experienced a net cash decrease of 149,273,559.57 CNY during the period, compared to a decrease of 82,678,854.28 CNY previously[64] Shareholder Information - The top shareholder, Hainan Dahe Enterprise Management Co., Ltd., holds 19.23% of the shares, totaling 94,076,600 shares[11] - The total number of ordinary shareholders at the end of the reporting period was 15,781[11] - There were no repurchase transactions conducted by the top ten shareholders during the reporting period[12] Investments and Incentives - The company approved the 2020 Restricted Stock Incentive Plan, granting 19.1653 million shares at a price of 2.91 CNY per share to 14 incentive objects[22] - The company confirmed an investment income of approximately 31.0781 million CNY from a performance compensation payment received from an investment fund[29] - Investment income increased by 471.08% to ¥26,416,522.73, mainly from performance compensation received from an investment fund[19] Operational Insights - Management expenses increased by 57.36% to ¥47,802,516.88, influenced by new office leases and increased operational costs[19] - The company maintained close communication with existing major customers to enhance product share and meet diverse demands[29] - The company plans to expand its market presence and invest in new technologies to enhance product offerings and operational efficiency[38] Compliance and Governance - The company did not report any violations regarding external guarantees during the reporting period[31] - The company did not experience any non-operational fund occupation by controlling shareholders or related parties during the reporting period[32] - The company’s stock incentive plan received independent approval from the board of directors and the supervisory board[22] Miscellaneous - The company implemented new revenue and lease standards starting in 2020, affecting prior comparative data[77] - The company has not audited the Q3 report[77]

Financial Performance - Revenue for Q3 2021 was CNY 183,678,265.51, a decrease of 28.63% compared to the same period last year[3]. - Net profit attributable to shareholders was CNY -41,392,001.89, a decline of 182.37% year-on-year[3]. - Basic earnings per share were CNY -0.0846, down 179.21% from the previous year[3]. - The net profit for Q3 2021 was -64,045,521.06 CNY, a significant decline compared to the net profit of 65,566,004.47 CNY in the same period last year, representing a year-over-year decrease of approximately 197.6%[34]. - Operating profit for Q3 2021 was -72,513,935.46 CNY, compared to an operating profit of 67,774,868.42 CNY in Q3 2020, indicating a decline of around 207.2%[34]. - The total comprehensive income for Q3 2021 was -64,045,521.06 CNY, compared to 65,566,004.47 CNY in Q3 2020, reflecting a decrease of around 197.6%[35]. Assets and Liabilities - Total assets at the end of the period were CNY 1,380,207,334.38, a decrease of 3.44% from the end of the previous year[4]. - As of September 30, 2021, the company's total assets amounted to CNY 1,380,207,334.38, a decrease from CNY 1,429,321,443.08 at the end of 2020[29][31]. - The company's total liabilities as of September 30, 2021, were CNY 389,915,107.06, down from CNY 398,628,311.97 at the end of 2020[31]. - Total current assets amounted to approximately CNY 1,071,022,061.98, with a decrease of CNY 909,877.03 compared to the previous period[42]. - The total non-current assets increased to CNY 358,299,381.10, reflecting an increase of CNY 8,888,623.30[43]. - Total current liabilities were CNY 391,289,385.20, remaining unchanged from the previous period[43]. Cash Flow - Cash flow from operating activities was CNY -215,357,431.00, a decline of 281.30% year-on-year[3]. - The net cash flow from operating activities decreased significantly to -215,357,431.00 RMB, a change of 281.30% compared to the previous year, primarily due to the expansion of trade operations by a subsidiary[11]. - The cash flow from operating activities showed a net outflow of -215,357,431.00 CNY, worsening from -56,479,183.02 CNY in the same quarter last year[38]. - Investment activities generated a net cash inflow of 33,207,203.70 CNY, a recovery from a net outflow of -115,172,419.48 CNY in Q3 2020[38]. Costs and Expenses - Operating costs increased by 37.48% to CNY 568,703,211.14, primarily due to rising raw material prices[9]. - The total operating costs for the current period were CNY 733,266,204.70, which is a significant increase from CNY 552,030,984.23 in the previous period[33]. - Research and development expenses rose by 20.76% to CNY 26,554,948.40, reflecting increased investment in core technologies[9]. - Research and development expenses increased to 26,554,948.40 CNY in Q3 2021 from 21,989,875.52 CNY in Q3 2020, reflecting a growth of about 20.5%[34]. - The company reported a credit impairment loss of -5,014,081.87 RMB, an increase of 396.93% compared to the previous period, attributed to extended aging of receivables and higher provisions for bad debts[10]. - The income tax expense was -4,367,132.66 RMB, a decrease of 173.65% year-on-year, primarily due to a significant reduction in taxable income compared to the same period last year[10]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,019, with no preferred shareholders[13]. - The largest shareholder, Hainan Dahe Enterprise Management Co., Ltd., holds 15.04% of the shares, amounting to 73,576,600 shares, with 26,543,000 shares frozen[13]. Strategic Initiatives - The company plans to invest 50 million yuan to establish a wholly-owned subsidiary to develop the passenger vehicle original paint market, enhancing its product offerings and market presence[21]. - The company is focused on expanding its presence in the passenger vehicle original paint market as a key component of its current and future development strategy[21]. - The company is actively pursuing certification work with passenger vehicle manufacturers to expand its market share in the passenger vehicle original paint sector[20]. - The company has significantly increased its investment in R&D and core technical personnel to support its dual strategy of "automotive coatings + high-tech new materials"[20]. - The company announced a price increase of 10%-20% for its cathodic electrophoretic paint products starting from September 1, 2021, due to cost pressures and long-term customer relationships[25]. - The company is implementing strict cost control measures across all departments and strengthening strategic cooperation with core raw material suppliers to reduce product costs[26]. Management Changes - The company appointed several senior executives to strengthen talent empowerment and management, including Ma Xin as the Chief Executive Officer, who has over 20 years of human resources management experience[23]. - The company appointed Ms. Sui Jingyuan as Chief Financial Officer to enhance the financial management system and promote a transition to a performance-oriented financial model[24]. - The company appointed Mr. Ge Lefan as Vice President to enhance market development and management in the industrial sector, focusing on powder coatings, engineering machinery, and commercial vehicle coatings[24]. Market Conditions - In Q3 2021, the commercial vehicle production and sales decreased by 33.2% and 30.2% in July, 46.2% and 42.8% in August, and 35.2% and 33.6% in September year-on-year, significantly impacting the company's performance[18]. - From January to September 2021, the company's raw material procurement costs increased by approximately 120 million yuan compared to the same period last year, primarily due to rising global chemical raw material prices[18]. - The average market price of epoxy resin rose by 67.96% year-on-year to 31.56 yuan/kg, and bisphenol A increased by 133.82% to 23.99 yuan/kg in the same period[19]. Other Information - The company did not report any new product or technology developments during the quarter[10]. - There were no significant mergers or acquisitions reported in the current period[10]. - The company has not provided specific future guidance or market expansion strategies in the current report[10]. - The company incurred financial expenses of 527,970.30 CNY in Q3 2021, compared to a financial income of -444,967.54 CNY in the same period last year[34]. - The third quarter report was not audited, indicating preliminary financial results[46].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥479,506,144.83, representing a 42.39% increase compared to ¥336,761,435.66 in the same period last year[32]. - The net profit attributable to shareholders was -¥17,768,567.29, a decrease of 215.71% from ¥15,355,959.38 in the previous year[32]. - The net cash flow from operating activities was -¥171,079,718.36, a decline of 311.07% compared to ¥81,052,943.56 in the same period last year[32]. - The total assets at the end of the reporting period were ¥1,465,632,865.47, reflecting a 2.54% increase from ¥1,429,321,443.08 at the end of the previous year[32]. - The company's main business revenue increased by 40%-45% compared to the same period last year, reaching a historical high since its listing[81]. - In the first half of 2021, the company's electrophoretic coating business generated revenue of 264 million yuan, a year-on-year increase of 26.44%, while the topcoat business revenue reached 203 million yuan, up 68.06% year-on-year[85]. - The electrophoretic coating business accounted for 55.15% of total revenue, while the topcoat business represented 42.25%, reflecting a strategic shift towards higher-margin products[85]. - Operating costs increased by 67.75% to ¥397.03 million from ¥236.68 million, primarily due to rising global chemical raw material prices and increased procurement costs[100]. - Research and development expenses rose by 10.15% to ¥16.18 million from ¥14.69 million, attributed to the implementation of a stock incentive plan[100]. - The gross profit margin for the main business was 24.95%, a decrease of 7.60% compared to the previous year[103]. Market and Industry Trends - The company's main revenue source is automotive OEM coatings, which are closely tied to the macroeconomic environment and the automotive industry's performance, indicating potential risks from economic fluctuations[6]. - The automotive paint industry is experiencing a shift towards environmentally friendly products, with new national standards for VOCs implemented in December 2020 and February 2021, guiding the industry's development direction[77]. - The demand for automotive coatings is expected to grow, driven by factors such as economic development, increased consumer income, and favorable policies for new energy vehicles[79]. - In the first half of 2021, the automotive market showed a stable growth trend, with production and sales of automobiles reaching 12.57 million and 12.89 million units, respectively, representing year-on-year growth of 24.2% and 25.6%[79]. Raw Material and Procurement Challenges - In the first half of 2021, the company experienced a significant increase in raw material procurement costs, with major materials like epoxy resin and bisphenol A reaching historical highs, impacting gross margins negatively[5]. - The prices of key raw materials such as epoxy resin and bisphenol A have surged, with bisphenol A increasing by 129.03% year-on-year, reaching a historical high of 30 yuan/kg in April 2021[78]. - The company's procurement strategy includes locking in raw material prices when they are low, particularly for bulk materials like epoxy resin and bisphenol A[57]. - The company faces risks from rising raw material prices, which have significantly increased compared to the same period last year, impacting gross margins[126]. Environmental and Safety Compliance - The company is committed to enhancing safety production measures, given the inherent risks associated with chemical manufacturing processes[10]. - Environmental protection regulations are becoming stricter, which may lead to increased operational costs for the company[12]. - The company emphasizes environmental protection and plans to increase investments in environmental compliance due to stricter regulations, which may impact operational performance[133]. - The company has implemented a comprehensive environmental monitoring plan, with monthly and quarterly testing for various pollutants, ensuring compliance with emission standards[149]. - The company has established a comprehensive waste management system, including physical and biological treatment processes for wastewater before discharge[149]. - The total emissions of non-methane total hydrocarbons from the company were 0.021 tons, well below the approved limit of 0.633 tons, indicating no exceedance[144]. - The company reported a total wastewater COD emission of 0.3294 tons, significantly lower than the approved limit of 4.64 tons, with no exceedance[144]. - The company has a total nitrogen wastewater emission of 0.0023 tons, which is well below the approved limit of 11.184 tons, indicating no exceedance[144]. - The company has received environmental impact evaluation approvals for its automotive paint research and production base, with the latest approval obtained in November 2020[149]. Research and Development Initiatives - The company is focusing on developing high solid content coatings (HSC) to meet environmental standards and improve product performance[24]. - The company has a high-quality R&D team that focuses on practical product technology upgrades based on customer needs, enhancing the technical content and application value of its products[70]. - The company is actively developing water-based B1B2 process topcoats for passenger vehicles, which have been successfully launched in multiple customer lines[89]. - The intelligent coating laboratory, operational since April 2020, integrates advanced spraying technology and provides robust support for future business expansion and quality control, particularly for water-based paint products[67]. - The company has committed to improving the proportion of water-based paints in its product offerings and enhancing R&D efforts in this area[133]. Strategic Developments and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the reporting period, indicating a focus on reinvestment[13]. - The company appointed a new president, Yuan Xiang, on May 28, 2021, to focus on governance and strategic development[137]. - The company has established "Jinlitai University" to enhance talent development, offering 139 courses and training 933 employees since its launch in May 2021[98]. - The company is transitioning from a traditional manufacturing profit model to a "full coating solution service provider," enhancing its service offerings to meet customer demands[61]. - The core management team, with backgrounds from leading companies like Nippon Paint and BASF, is focused on enhancing the company's competitive edge through strategic planning and technology[62]. Legal and Regulatory Matters - The company is currently involved in a significant arbitration case with a claim amount of 26.699 million RMB, which is not expected to result in liabilities[162]. - The actual controller of the company is under investigation for alleged contract fraud, with the case currently under review by the prosecution[163]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[156]. - The company has not engaged in any major related party transactions during the reporting period[164]. - The company has not undergone any bankruptcy reorganization during the reporting period[160]. - The company has not issued any major guarantees during the reporting period[173]. Community Engagement - The company donated 150,000 RMB to the local government for poverty alleviation and elderly welfare in Q2 2021[152].

Financial Performance - The company reported a profit distribution plan, proposing a cash dividend of 0.2 RMB per 10 shares (including tax) based on a total of 489,205,300 shares[11]. - The company's operating revenue for 2020 was ¥884,959,565.29, representing an increase of 8.78% compared to ¥813,501,962.57 in 2019[22]. - The net profit attributable to shareholders for 2020 was ¥91,285,666.66, a significant increase of 203.47% from ¥30,080,764.63 in 2019[22]. - The net profit after deducting non-recurring gains and losses was ¥77,037,469.51, up 384.57% from ¥15,898,225.86 in 2019[22]. - The net cash flow from operating activities reached ¥149,722,800.60, an increase of 129.06% compared to ¥65,363,862.58 in 2019[22]. - The total assets at the end of 2020 were ¥1,429,321,443.08, reflecting a growth of 21.47% from ¥1,176,646,533.61 at the end of 2019[23]. - The net assets attributable to shareholders increased to ¥1,009,415,970.09, a rise of 10.95% from ¥909,804,083.09 at the end of 2019[23]. - The basic earnings per share for 2020 was ¥0.19, representing a 216.67% increase from ¥0.06 in 2019[23]. - The weighted average return on equity for 2020 was 9.55%, up from 3.36% in 2019[23]. Market and Industry Trends - The main business revenue primarily comes from automotive coatings, which are closely tied to the macroeconomic environment and the automotive industry's performance[4]. - The competitive landscape in the automotive coatings market is intensifying, with a few domestic companies, including the company, competing against international giants[7]. - The automotive industry saw a total production and sales of 25.23 million and 25.31 million vehicles respectively in 2020, with a year-on-year decline of 2% and 1.9%, indicating a narrowing of the decline compared to the previous year[62]. - The commercial vehicle segment experienced a production and sales volume of 5.23 million and 5.13 million units respectively, driven by factors such as the elimination of National III vehicles and increased infrastructure investment[63]. - The automotive market is expected to recover in 2021, with projected sales exceeding 26 million vehicles, representing a year-on-year growth of 4%[65]. - The total output of the coatings industry was 25.49 million tons, a year-on-year increase of 2.6%, while the main business income was 300.08 billion yuan, down from 313.23 billion yuan in the previous year[60]. - The implementation of the mandatory national standard GB-24409 (2020) and the recommended standard GTB-38597 (2020) has set strict VOC content requirements for vehicle coatings, impacting production and sales practices in the industry[60]. - The demand for environmentally friendly automotive coatings is stable, with a focus on advanced coating technologies and low VOC coatings in China's automotive industry[173]. Research and Development - The company is investing in research and development to enhance product quality and meet evolving market demands for environmentally friendly and high-performance coatings[7]. - The company is focused on developing eco-friendly processes, such as a low-energy, green pre-treatment process for coatings[16]. - The company has established a dedicated research and development platform for core resin production, enhancing its ability to adapt to customer needs and improve product performance[70]. - The company has developed a comprehensive product matrix of "full system electrophoretic paint + full process topcoat" to meet diverse customer needs and comply with stringent environmental regulations[77]. - The company is focused on continuous R&D in water-based coatings and high-solid content coatings to strengthen its core technology barriers and optimize product offerings[85]. - The company has launched an intelligent coating laboratory in April 2020, which supports the development of new water-based paint products and enhances quality control[73]. - The company achieved a self-manufacturing rate of over 85% for its core water-based coating resins, indicating the completion of its water-based resin system[71]. - The company has developed the KNT6000 series of high solid content products, which comply with national standards and have shown a 60% reduction in VOCs emissions compared to traditional solvent-based coatings[91]. Operational Efficiency and Strategy - The company is transitioning from a traditional manufacturing profit model to a "full coating solution service provider," enhancing its integrated coating business[56]. - The company emphasizes a direct sales model to build long-term relationships with major clients, enhancing its ability to respond to market demands[80]. - The company has implemented lean production concepts and tools, identifying over 20 improvement projects that have successfully reduced production costs and increased efficiency[102]. - The production smart upgrade includes automated systems that enhance production efficiency and product quality while significantly reducing VOC emissions, contributing to environmental compliance[103]. - The company is pursuing a dual strategy focused on automotive coatings and high-tech new materials, establishing a subsidiary to expand into lightweight metal surface treatment[105]. - The company plans to enhance its production process with fully automated control systems for liquid material dosing and packaging[187]. - The company implemented a MES-KANBAN system for visual management of the entire production process, improving production efficiency and product quality control[187]. Environmental and Safety Considerations - The company emphasizes safety in production, but there are inherent risks due to the nature of chemical manufacturing[9][10]. - Environmental protection regulations are becoming stricter, potentially increasing operational costs and impacting financial performance[11]. - The company is committed to reducing costs and increasing efficiency through improved core resin self-manufacturing and tighter collaboration with key raw material suppliers[183]. - The company is focused on developing environmentally friendly industrial coatings in response to increasing environmental regulations, which presents both challenges and opportunities for growth[61]. - The company emphasizes a culture of safety and environmental responsibility, with initiatives to enhance supplier quality and risk assessment[104]. Financial Management and Investments - The company reported a significant increase in cash and cash equivalents, with a year-end balance of 272.46 million yuan, up 60.22% from the previous year, primarily due to higher net cash inflows from operating activities[69]. - The company's intangible assets increased by 45.01% year-on-year, reflecting ongoing investments in long-term projects and the acquisition of new technologies[69]. - The company has established a customer credit rating system to optimize customer structure and improve accounts receivable management[98]. - The company’s procurement strategy includes locking in raw material prices when they are low, particularly for key materials like epoxy resin[54]. - The company plans to increase its investment in Shanghai Jindu by 51 million yuan, maintaining its 51% ownership[160]. - The company has reported a total of 47,397,763 in prepayments, representing 3.32% of total assets, an increase from 13,261,201, which was 1.13% of total assets in the previous period[139]. Challenges and Risks - The company faces risks from fluctuations in raw material prices, which significantly impact production costs and gross margins[5][6]. - The company acknowledges risks related to product development failures and market expansion not meeting expectations[194]. - The company is facing uncertainty regarding the approval of its new capacity projects, which poses investment risks[112]. - The company faces risks including macroeconomic fluctuations affecting downstream demand and rising raw material costs impacting product costs[191].

Financial Performance - The company's revenue for Q1 2021 was ¥239,616,106.05, representing a 108.96% increase compared to ¥114,672,890.24 in the same period last year[9] - Net profit attributable to shareholders reached ¥22,039,568.70, a significant increase of 5,533.89% from ¥391,196.61 in the previous year[9] - The net profit after deducting non-recurring gains and losses was ¥19,954,552.02, compared to a loss of ¥87,100.23 in the same period last year, marking a 23,009.87% increase[9] - The basic earnings per share rose to ¥0.0451, up 5,537.50% from ¥0.0008 in the previous year[9] - The company's operating revenue for Q1 2021 reached ¥239.62 million, an increase of 108.96% compared to ¥114.67 million in Q1 2020[20] - The company reported a net profit for Q1 2021 of ¥20,282,850.01, a substantial increase from ¥743,084.66 in the previous year[70] - The total comprehensive income for the period was CNY 25,356,467.49, reflecting the net profit[75] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,501,597,708.30, reflecting a 5.06% increase from ¥1,429,321,443.08 at the end of the previous year[9] - The company's total assets amounted to CNY 1,501,597,708.30, an increase from CNY 1,429,321,443.08 at the end of 2020, reflecting a growth of approximately 5.04%[60] - The total liabilities of the company as of March 31, 2021, were CNY 445,451,554.57, up from CNY 398,628,311.97, which is an increase of about 11.71%[59] - The company's total liabilities rose to ¥443,380,518.62 from ¥395,172,507.35, showing an increase in financial obligations[65] - The company's equity attributable to shareholders increased to CNY 1,036,625,711.40 from CNY 1,009,415,970.09, reflecting a growth of approximately 2.69%[60] Cash Flow - The net cash flow from operating activities was negative at -¥149,085,954.32, a decline of 403.51% compared to ¥49,119,936.88 in the same period last year[9] - The cash flow from operating activities showed a net outflow of CNY -149,085,954.32, contrasting with a net inflow of CNY 49,119,936.88 in the previous period[79] - The cash inflow from investment activities was significantly lower than the cash outflow, indicating a cautious approach to capital expenditures in the current period[82] Operating Costs and Expenses - Operating costs for Q1 2021 were ¥179.37 million, reflecting a 113.62% increase from ¥83.97 million in the same period last year[21] - The total operating costs amounted to CNY 181,130,409.91, significantly higher than CNY 83,967,610.46 in the previous period, indicating increased operational activity[73] - The company’s tax and surcharges increased by 103.09% to ¥389,433.48, reflecting higher VAT obligations[21] - The company’s asset impairment losses increased by 133.03% to ¥31,668.23, due to higher inventory levels and related provisions[21] Investments and Development - The company’s capital expenditures on fixed assets rose by 171.82% compared to the previous year, indicating increased investment in long-term assets[23] - Research and development expenses for Q1 2021 were ¥6,524,303.94, slightly higher than ¥6,160,704.16 in the previous year, reflecting ongoing innovation efforts[69] - The company is investing in talent development by attracting external technical experts and fostering internal talent through training programs[34] Market Strategy and Operations - The company plans to focus on water-based technology and core resin self-manufacturing as part of its dual-line strategy to enhance competitiveness[30] - The company is focusing on expanding its market presence in the passenger vehicle segment and exploring opportunities in the 3C electronics and engineering machinery sectors[33] - The company achieved a self-manufacturing rate of core resins of approximately 85% during the reporting period, significantly reducing costs by replacing previously purchased resins[32] Risks and Challenges - The company faces risks related to macroeconomic fluctuations, which could impact order volumes and cash flow[41] - The company is exposed to raw material price volatility, which could adversely affect its gross margin due to rising procurement costs[42] Environmental and Regulatory Commitment - The company emphasizes its commitment to environmental protection, although it acknowledges potential risks related to stricter regulations in the future[47] - The company is focused on sustainable development by increasing the proportion of water-based coatings and improving environmental protection measures[40]

上海金力泰化工股份有限公司 上海金力泰化工股份有限公司 2020 年第三季度报告全文 上海金力泰化工股份有限公司 2020 年第三季度报告 2020 年 10 月 1 上海金力泰化工股份有限公司 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。 公司负责人景总法、主管会计工作负责人严家华及会计机构负责人(会计主 管人员)沈旭东声明：保证季度报告中财务报表的真实、准确、完整。 2 上海金力泰化工股份有限公司 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 □ 是 √ 否 | 项目 | 本报告期 | 年初至报告期末 | | | --- | --- | --- | --- | | 支付的优先股股利 | 0.00 | | 0.00 | | 用最新股本计算的全面摊薄每股收益（元/股） | 0.1027 | | 0.1341 | 非经常性 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥336,761,435.66, a decrease of 7.07% compared to ¥362,390,076.46 in the same period last year[19]. - The net profit attributable to shareholders was ¥15,355,959.38, down 5.36% from ¥16,226,358.61 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was ¥10,360,540.02, representing a significant decline of 32.47% compared to ¥15,342,350.41 in the previous year[19]. - The basic earnings per share were ¥0.0326, a decrease of 5.51% from ¥0.0345 in the same period last year[19]. - The diluted earnings per share also stood at ¥0.0326, reflecting the same percentage decrease of 5.51%[19]. - The weighted average return on net assets was 1.67%, down from 1.83% in the previous year[19]. - The company reported a significant increase in other income by 64.63% to CNY 2,304,944.11, mainly due to government subsidies[76]. - Investment income decreased by 210.06% to -CNY 3,547,931.15, attributed to the absence of prior year gains from equity transfers[80]. - The company reported a net loss of 5,401,725.32 RMB from its equity investment in Jiaxing Lingrui Investment Partnership[106]. Cash Flow and Assets - The net cash flow from operating activities increased dramatically by 399.75%, reaching ¥81,052,943.56, compared to a negative cash flow of -¥27,039,788.90 in the same period last year[19]. - Cash and cash equivalents increased by 34.05%, reaching ¥227,957,913.38 at the end of the period, compared to ¥170,050,827.08 at the end of the previous period[49]. - The company's total assets at the end of the reporting period were ¥1,288,243,078.00, reflecting a growth of 9.48% from ¥1,176,646,533.61 at the end of the previous year[19]. - The company's total liabilities rose to CNY 338,143,312.12, compared to CNY 237,668,182.98 at the end of 2019, indicating an increase of approximately 42.3%[192]. - Accounts receivable decreased by 54.85%, with a balance of ¥2,148,675.92, down from ¥4,759,196.06, primarily due to a reduction in commercial acceptance bills[49]. - The company reported a decrease in inventory to CNY 101,168,087.83, which is 7.85% of total assets, down by 1.79% from the previous year[83]. Research and Development - The company focuses on high-performance industrial coatings, particularly in the automotive sector, with over 20 years of experience[26]. - The company aims to enhance its market presence through continuous R&D and product innovation in the coatings industry[26]. - The company has developed a new coating technology that addresses issues in traditional coating methods, achieving a paint utilization rate of over 95%[31]. - Research and development expenses increased by 3.76% to CNY 14,691,416.77, reflecting ongoing investment in innovation[76]. - The company established a resin R&D platform and initiated self-manufacturing of basic resins for electrophoretic and topcoat paints, enhancing its core resin capabilities[50]. Market Strategy and Operations - The company is transitioning from a traditional manufacturing model to a "full coating solution service provider," promoting an integrated coating business model[43]. - The company is actively seeking market cooperation and optimizing product and customer structures to enhance competitiveness and stabilize business development[44]. - The company has established a comprehensive marketing service network with over 40 offices and more than 100 technical service personnel[59]. - The company aims to extend its industrial chain in the "chemical new materials - surface treatment materials" sector, enhancing its core competitiveness[72]. - The company is actively exploring customer demands in the new energy vehicle sector to mitigate the impact of macroeconomic fluctuations on its business[109]. Environmental and Social Responsibility - The company emphasizes environmental protection and plans to increase investments in this area, which may impact operational performance due to stricter regulations[116]. - The company has established an emergency response plan for environmental incidents, approved by local authorities[149]. - The company donated a total of 200,000 RMB (approximately 30,000 USD) for poverty alleviation and welfare activities in the first half of 2020[154]. - The company has committed to ongoing charitable activities based on annual operational performance, focusing on social responsibility[156]. - The company has implemented pollution control facilities, ensuring that emissions meet regulatory requirements[146]. Shareholder and Governance - The largest shareholder, Ningxia Huajin Asset Management Co., Ltd., holds 20.00% of the total shares, amounting to 94,076,600 shares[169]. - The second-largest shareholder, Shaoxing Keqiao Lingying Industrial Co., Ltd., holds 10.00% of the total shares, amounting to 47,034,000 shares[169]. - The company approved the 2020 restricted stock incentive plan, granting 19.1653 million shares at a price of 2.91 CNY per share to 14 eligible participants[130]. - The company has implemented a 75% lock-up on shares held by certain directors and executives as of January 7, 2020[163]. - The company did not engage in any related party transactions during the reporting period[132].

Business Overview - The company's main business revenue primarily comes from automotive and industrial coatings, with significant exposure to domestic commercial vehicle manufacturers[7]. - The company is focused on expanding its market presence and enhancing product offerings to meet evolving customer demands for environmentally friendly and high-performance coatings[10]. - The company has been focusing on high-performance industrial coatings for over 20 years, with products widely used in various vehicle types and construction applications[36]. - The company is a leading enterprise in the domestic cathodic electrophoretic coating field, with a complete product system covering passenger vehicles, commercial vehicles, agricultural machinery, engineering machinery, motorcycles/electric vehicles, and automotive parts[40]. - The company has established itself as a leading domestic brand in high-performance industrial coatings, providing comprehensive coating solutions beyond international competitors[36]. Financial Performance - The company's operating revenue for 2019 was ¥813,501,962.57, representing a 0.59% increase compared to ¥808,740,496.43 in 2018[26]. - The net profit attributable to shareholders in 2019 was ¥30,080,764.63, a significant increase of 171.63% from ¥11,074,247.10 in 2018[26]. - The net cash flow from operating activities improved to ¥65,363,862.58 in 2019, compared to a negative cash flow of ¥26,968,283.60 in 2018, marking a 342.37% increase[26]. - The basic earnings per share rose to ¥0.0640 in 2019, up 166.67% from ¥0.024 in 2018[26]. - The total assets at the end of 2019 were ¥1,176,646,533.61, reflecting a 2.32% increase from ¥1,149,923,690.16 at the end of 2018[26]. Market Dynamics - The competitive landscape in the automotive coatings market is intensifying, with both international and domestic players vying for market share, necessitating continuous innovation and quality improvement[10]. - The ongoing supply-side reforms in the chemical industry may lead to increased concentration in the upstream supply chain, affecting procurement costs and profit margins[8]. - The total output of the paint industry in China for 2019 was 24.39 million tons, a year-on-year increase of 2.6%, while the main business income was CNY 313.23 billion, a decrease of 0.6% compared to the previous year[58]. - The automotive paint output accounted for 10% of the total paint output, approximately 2.44 million tons, with a market share of about CNY 14 billion[58]. - The global automotive paint and coatings market is projected to grow at a compound annual growth rate of over 4% from 2019 to 2026, reaching approximately USD 28.4 billion by 2026[58]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, which are closely tied to crude oil prices and market supply-demand dynamics[8]. - The company reported a high accounts receivable balance, indicating pressure on cash flow, although major clients are large, reputable automotive manufacturers[11]. - The company has a high inventory level due to proactive stockpiling based on customer forecasts, which poses a risk of inventory obsolescence if market conditions change[12]. - The company is committed to environmental protection, but stricter regulations may increase operational costs and impact financial performance[15]. Research and Development - The company has developed a comprehensive product matrix for electrophoretic and topcoat paints, competing effectively with international brands[68]. - The company has established a resin R&D platform and initiated in-house production of basic resins for electrophoretic and topcoat paints[64]. - The intelligent coating laboratory supports expansion into high-end passenger vehicle markets with advanced testing and application capabilities[65]. - The company has patented 7 invention patents and 16 utility model patents for its wheel hub paint products, which are recognized as industry benchmarks and have been certified by major automotive manufacturers[45]. - In 2019, the company's R&D investment amounted to ¥28,672,789.58, representing 3.52% of total revenue, an increase from 3.29% in 2018[101]. Environmental and Social Responsibility - The company is committed to environmental sustainability by increasing the proportion of water-based paints and improving production processes in compliance with environmental regulations[146]. - The company has implemented the ISO14001 environmental management system to enhance its environmental protection efforts[200]. - The company has strengthened its social responsibility management for suppliers to mitigate operational risks[200]. - The company emphasizes the importance of creating a positive corporate culture and fulfilling social responsibilities to enhance brand influence[143]. Shareholder and Corporate Governance - The board approved a profit distribution plan, proposing a cash dividend of 0.1 RMB per 10 shares based on a base of 470,340,000 shares[15]. - The controlling shareholder, Ningxia Huajin Asset Management Co., Ltd., increased its shareholding by 23,525,600 shares, representing 5.00% of the total share capital, completing the increase by December 13, 2019[161]. - The company plans to increase its shareholding by no less than 5% and no more than 10% of the total share capital within a specified period[161]. - The company has committed to avoiding any business competition with its controlling shareholder and its subsidiaries[160]. - The company has fulfilled its commitments regarding the independence of personnel, assets, finances, and operations[159]. Operational Efficiency - The company aims to improve operational efficiency by implementing a divisional management system and optimizing supply chain and marketing services[144]. - Cost optimization strategies are expected to enhance product gross margins through management cost reduction, sales cost management, and production cost optimization[145]. - The company plans to establish a training institution, Jinlitai Academy, to cultivate management and technical talents, ensuring sustainable development through enhanced human resources[143]. Financial Management - The company reported a total investment of 420 million yuan in financial assets, with a fair value change of -2,390,459.8 yuan during the reporting period[115]. - The company has engaged in low-risk financial products with various banks, achieving returns ranging from 2.40% to 3.80%[193]. - The company has successfully recovered all invested amounts in financial products during the reporting period[195]. - The company has not encountered any expected inability to recover principal in entrusted financial management[197]. - The company has not reported any overdue amounts from entrusted financial management during the reporting period[184].

Financial Performance - Total revenue for Q1 2020 was ¥114,672,890.24, a decrease of 35.03% compared to ¥176,506,361.50 in the same period last year[9] - Net profit attributable to shareholders was ¥391,196.61, down 91.84% from ¥4,792,737.82 year-on-year[9] - Net profit after deducting non-recurring gains and losses was -¥87,100.23, a decline of 102.05% compared to ¥4,248,434.91 in the previous year[9] - Basic earnings per share decreased to ¥0.0008, down 92.16% from ¥0.0102 year-on-year[9] - Operating profit was CNY 1,293,744.19, down 75.78% year-on-year, while total profit decreased by 79.88% to CNY 1,048,675.58[23] - Net profit for Q1 2020 was CNY 743,084.66, a decline of 83.06% compared to CNY 4,375,763.23 in Q1 2019[68] - The total comprehensive income for Q1 2020 was CNY 743,084.66, a decrease of 83.06% from CNY 4,375,763.23 in Q1 2019[69] Cash Flow and Liquidity - Operating cash flow for the period was ¥49,119,936.88, an increase of 288.29% from -¥26,087,348.83 in the same period last year[9] - The company's net cash and cash equivalents decreased by 30.26% to ¥118,586,683.98 from ¥170,050,827.08, mainly due to the use of self-owned funds to purchase low-risk, high-liquidity bank financial products[20] - Cash received from investment redemption surged by 569.86% to CNY 241,150,000.00, attributed to the maturity of low-risk, high-liquidity bank financial products[22] - The net cash flow from operating activities was CNY 49,119,936.88, a significant improvement from a negative CNY 26,087,348.83 in the same period last year[76] - Cash inflow from operating activities totaled CNY 240,346,214.27, up from CNY 213,629,016.31 in the previous year, representing an increase of approximately 12.5%[76] - The cash outflow from operating activities decreased to CNY 191,226,277.39 from CNY 239,716,365.14, indicating a reduction of about 20.2%[76] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,136,458,625.66, a decrease of 3.42% from ¥1,176,646,533.61 at the end of the previous year[9] - Current assets totaled CNY 760,668,296.18, down from CNY 795,355,515.36, indicating a decrease of about 4.4%[58] - Total liabilities decreased to CNY 196,737,190.37 from CNY 237,668,182.98, a decline of about 17.2%[60] - The company's equity increased to CNY 939,721,435.29 from CNY 938,978,350.63, a marginal increase of approximately 0.08%[61] Operational Efficiency and Cost Management - The company's sales expenses decreased by 31.53% to ¥13,214,172.61 from ¥19,298,964.67, reflecting reduced operational costs during the pandemic[20] - Management expenses increased by 43.85% to CNY 13,708,261.24, mainly due to new office leases and increased business expenses related to market expansion[21] - Cost optimization strategies are being implemented to increase product gross margin, including management cost reduction and production cost optimization[43] - The company aims to enhance operational efficiency through divisional management, lean production, and improved marketing services to boost profitability[42] Market and Product Development - The company launched a new green cathodic electrophoretic coating product, which has been successfully used by well-known domestic automotive manufacturers[26] - A new high-performance weather-resistant cathodic electrophoretic coating was introduced, achieving international leading standards in outdoor exposure resistance[27] - The company developed a water-based 1C1B automotive topcoat, which allows for mixed-line production, reducing customer production costs[27] - The company is focusing on the high-end passenger vehicle market, particularly targeting the needs of new energy vehicle manufacturers, as China is the largest market for new energy vehicles[39] Risks and Challenges - The company faces risks from macroeconomic fluctuations that could impact orders and cash flow, particularly in the automotive and industrial coatings sectors[45] - Raw material price volatility poses a risk to gross margins, as chemical raw materials are significantly affected by oil prices and market supply-demand dynamics[45] - Increased competition in the automotive coatings market necessitates advancements in product technology and quality to maintain a competitive edge[47] Shareholder Information - The total number of shareholders at the end of the reporting period was 18,551[13] - The largest shareholder, Ningxia Huajin Asset Management Co., Ltd., held 20.00% of the shares, totaling 94,076,600 shares[13] Research and Development - Research and development expenses for Q1 2020 were CNY 6,160,704.16, a decrease of 15.85% compared to CNY 7,321,784.86 in Q1 2019[67] - The company has optimized its water-based industrial coatings, achieving high recognition from customers in various fields, including automotive parts and general industrial corrosion protection[31] - The company aims to enhance R&D efforts and seek alternative raw materials to mitigate the impact of price fluctuations on gross margins[46]