山东同大海岛新材料股份有限公司 2020 年第三季度报告全文 山东同大海岛新材料股份有限公司 2020 年第三季度报告 2020 年 10 月 1 山东同大海岛新材料股份有限公司 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。 公司负责人孙俊成、主管会计工作负责人于洪亮及会计机构负责人(会计主 管人员)姜海强声明：保证季度报告中财务报表的真实、准确、完整。 2 山东同大海岛新材料股份有限公司 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） | 716,273,628.58 | | 759,432,289.49 | -5.68% | | 归属于上市公司股东的净资产 | 628 ...

证券代码：300321 证券简称：同大股份 公告编号：2020-058 山东同大海岛新材料股份有限公司 关于参加山东辖区上市公司投资者网上集体接待日活动的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 为进一步加强与投资者的互动交流工作，构建和谐投资者关系，山东同大海 岛新材料股份有限公司（以下简称"公司"）将参加 "山东辖区上市公司 2020 年投资者网上集体接待日"活动，现将有关事项公告如下： 本次集体接待日活动将通过深圳市全景网络有限公司提供的网上平台举行， 投资者可以登录"全景·路演天下"网站（http://rs.p5w.net），参与公司本次 投资者集体接待日活动，活动时间为 2020 年 9 月 29 日（星期二）下午 15:00 至 16:55。 届时公司董事会秘书于洪亮先生、公司证券事务代表魏增宝先生将通过网络 在线交流形式与投资者进行沟通，欢迎广大投资者积极参与。 特此公告。 山东同大海岛新材料股份有限公司 董事会 2020 年 9 月 24 日 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥195,421,103.58, a decrease of 14.13% compared to ¥227,585,976.27 in the same period last year[19]. - The net profit attributable to shareholders was ¥7,832,462.55, down 54.53% from ¥17,224,674.90 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥5,850,271.64, a decline of 62.17% compared to ¥15,464,910.44 in the same period last year[19]. - The net cash flow from operating activities was ¥13,839,742.06, which is a 61.19% decrease from ¥35,663,875.53 in the previous year[19]. - The basic earnings per share were ¥0.0882, down 54.54% from ¥0.1940 in the same period last year[19]. - Operating profit was 9.15 million yuan, down 54.65% year-on-year, while total profit decreased by 54.36% to 9.35 million yuan[38]. - The company reported a significant increase in investment activities cash flow, which was -¥29,939,294.95, up 215.78% from -¥9,481,189.93 in the previous year[42]. - The total profit for the period was CNY 9,352,449.32, a decrease of 54.4% from CNY 20,491,260.93 in the previous year[130]. Assets and Liabilities - Total assets at the end of the reporting period were ¥747,100,960.24, a decrease of 1.62% from ¥759,432,289.49 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 4.26% to ¥622,771,444.72 from ¥650,458,982.17 at the end of the previous year[19]. - Total liabilities increased from CNY 108,973,307.32 at the end of 2019 to CNY 124,329,515.52 as of June 30, 2020, an increase of 14.03%[122]. - The company's total equity decreased from CNY 650,458,982.17 at the end of 2019 to CNY 622,771,444.72 as of June 30, 2020, a decline of 4.26%[123]. Research and Development - The company has invested significantly in research and development to enhance its technological innovation capabilities, focusing on core business areas[38]. - Research and development expenses amounted to ¥9,865,342.19, down 10.02% from ¥10,963,437.79 in the previous year[42]. - The company is focused on enhancing its R&D capabilities to mitigate risks associated with complex production processes and potential technological bottlenecks[59]. Market and Customer Management - Accounts receivable increased by 50.65% compared to the beginning of the year, primarily due to extended payment terms for some customers affected by the pandemic[32]. - The company has established a customer credit management mechanism to minimize the risk of bad debts from accounts receivable[61]. - The company emphasizes the importance of collecting market information and customer demand to adapt to market changes and avoid losing market share[59]. Environmental and Compliance - The company has a strong emphasis on environmental protection, consistently exceeding national standards in its production processes[33]. - The company is not listed as a key pollutant discharge unit by environmental protection authorities and complies with relevant environmental laws[91]. - The financial report adheres to the requirements of the accounting standards, reflecting the company's financial position and operating results accurately[147]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company did not experience any penalties or rectification situations during the reporting period[77]. - There were no significant litigation or arbitration matters during the reporting period[75]. - The integrity status of the company and its controlling shareholders was reported as good, with no significant debts due for repayment[78]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the accrual basis of accounting, in accordance with the relevant accounting standards[144]. - The company recognizes revenue when control of goods or services is transferred to the customer, which is when the customer can direct the use and obtain almost all economic benefits[193]. - The company applies a revenue recognition policy that considers factors such as variable consideration and significant financing components[194]. - The company recognizes contract liabilities and employee compensation as liabilities in the period services are provided[188]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 6,046[100]. - The largest shareholder, Shandong Tongda Group Co., Ltd., holds 32.86% of the shares, amounting to 29,180,769 shares[100]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[103].

Financial Performance - The company's operating revenue for 2019 was CNY 456.34 million, a decrease of 2.74% compared to 2018[21]. - Net profit attributable to shareholders increased by 37.03% to CNY 39.46 million in 2019[21]. - The net cash flow from operating activities surged by 178.08% to CNY 108.78 million[21]. - Basic earnings per share rose by 37.03% to CNY 0.4444[21]. - Total assets at the end of 2019 amounted to CNY 759.43 million, reflecting a 3.38% increase from 2018[21]. - The company's net assets attributable to shareholders increased by 5.54% to CNY 650.46 million[21]. - The total operating costs were 366.64 million yuan, down 3.91% year-on-year[39]. - The gross profit margin for the artificial leather industry improved to 19.87%, up by 1.19% from the previous year[46]. - The total comprehensive income attributable to the parent company was CNY 39,463,064.32, an increase from CNY 28,798,197.26 in the previous year, reflecting a growth of approximately 37%[192]. Cash Flow and Dividends - The company plans to distribute cash dividends of 4 RMB per 10 shares to shareholders, reflecting a commitment to returning value to investors[9]. - The net cash flow from investment activities was negative at -¥16,347,927.11, although cash inflows from financial products increased compared to the previous year[57]. - The cash dividend payout ratio for 2019 was 90.01% of the net profit attributable to the parent company[76]. - The company declared a cash dividend of 4 RMB per 10 shares, totaling 35,520,000 RMB for the year 2019, which represents 100% of the distributable profit[72]. - The company has consistently maintained a cash dividend distribution of over 80% during its mature development stage, with no significant capital expenditure plans[72]. Research and Development - The company’s R&D focuses on ecological ultra-fiber synthetic leather, which is widely used across various industries[29]. - R&D investment for 2019 was ¥23,155,974.02, accounting for 5.07% of total revenue, with participation in drafting 4 industry standards[54]. - The company is committed to accelerating new product development and optimizing production processes to maintain industry-leading technology levels[66]. Market and Customer Management - The company emphasized the importance of continuous product development to meet market demands, highlighting the risk of losing market share if unable to innovate[5]. - The company is focused on adapting to market changes and customer needs through proactive product planning and marketing strategies[5]. - The company plans to focus on market promotion of new products, including the "Super棒" and "Rainbow" series, which emphasize high fidelity and no color migration[40]. - The company is positioned to benefit from the shift towards third-generation ecological high-fidelity materials as lower-tier synthetic leather production is increasingly restricted[31]. Operational Efficiency and Management - The company has committed to enhancing its management capabilities and talent acquisition to support future growth and operational efficiency[6]. - The company has established a strong management team and a comprehensive management system to enhance operational efficiency and adaptability to market changes[35]. - The company aims to reduce costs across various operational aspects, including procurement, production, and energy consumption, to improve efficiency[66]. Compliance and Governance - The company has maintained a commitment to transparency and accountability in its financial practices, ensuring all obligations are met without any outstanding issues[82]. - The company has adhered to new accounting standards effective from January 1, 2019, which may impact financial reporting and disclosures going forward[84]. - The company has confirmed that it will not establish subsidiaries with similar business scopes to avoid conflicts of interest, reaffirming this commitment since May 2012[80]. - The company has reported no penalties or claims related to unpaid social insurance or housing funds during the reporting period, reflecting good compliance practices[81]. Shareholder Information - Total number of shareholders increased to 7,585 from 6,675 in the previous month, indicating a growth of approximately 13.6%[115]. - The largest shareholder, Shandong Tongda Group, holds 32.86% of shares, totaling 29,180,769 shares, with no change in the number of shares held during the reporting period[116]. - The company has not conducted any repurchase transactions among the top ten shareholders during the reporting period[116]. - The total number of shares held by the top ten unrestricted shareholders is 46,000,000 shares, representing a significant portion of the company's equity[116]. Internal Controls and Audit - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2019[165]. - The audit opinion issued was a standard unqualified opinion, indicating no material misstatements were found[170]. - The company has established internal control measures to ensure the accuracy and reliability of financial reporting[175]. - No significant internal control deficiencies were identified during the reporting period[162]. Risks and Challenges - The company reported a significant increase in production costs due to enhanced environmental regulations, which may impact future profitability[4]. - The company is facing potential risks related to changes in heating sources due to local government regulations, which could increase operational costs[9]. - The company is actively monitoring exchange rate fluctuations, particularly the USD/RMB rate, to minimize potential impacts on net profit from foreign currency transactions[7].

Financial Performance - Total operating revenue for Q1 2020 was CNY 90,493,073.56, an increase of 3.79% compared to CNY 87,186,754.77 in the same period last year[8] - Net profit attributable to shareholders was CNY 5,282,724.54, reflecting a 2.96% increase from CNY 5,131,074.61 year-on-year[8] - Net profit after deducting non-recurring gains and losses decreased by 2.36% to CNY 3,993,209.56 from CNY 4,089,566.26 in the previous year[8] - Total operating costs for Q1 2020 were CNY 84,306,473.67, up from CNY 81,686,021.07 in the previous period[43] - Basic and diluted earnings per share for Q1 2020 were both CNY 0.0595, compared to CNY 0.0578 in the previous period[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 775,023,807.78, up 2.05% from CNY 759,432,289.49 at the end of the previous year[8] - Total liabilities increased to CNY 119,282,101.07 from CNY 108,973,307.32, indicating a rise of about 11.97%[40] - The company's equity attributable to shareholders was CNY 655,741,706.71, up from CNY 650,458,982.17, showing a growth of approximately 0.49%[40] - The total current assets were CNY 432,094,012.48, an increase from CNY 413,309,266.61 in the previous period[40] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 15,171,343.28, a slight improvement of 3.84% compared to the outflow of CNY 15,777,931.38 in the same period last year[8] - The net cash flow from operating activities for Q1 2020 was -15,171,343.28 CNY, slightly improved from -15,777,931.38 CNY in the same period last year[47] - Total cash inflow from operating activities was 58,190,824.56 CNY, down from 68,088,145.99 CNY year-over-year[47] - Cash outflow from operating activities totaled 73,362,167.84 CNY, compared to 83,866,077.37 CNY in Q1 2019, indicating a reduction of approximately 12.5%[47] - The net cash flow from investing activities was -27,267,180.54 CNY, a significant decline from -3,122,555.68 CNY in the previous year[48] - Cash inflow from investment activities was 20,288,787.67 CNY, slightly lower than 20,457,013.70 CNY in Q1 2019[48] - Cash outflow from investment activities increased to 47,555,968.21 CNY, up from 23,579,569.38 CNY year-over-year[48] - The cash and cash equivalents at the end of the period stood at 151,414,228.18 CNY, compared to 87,492,930.96 CNY at the end of Q1 2019, reflecting a growth of approximately 73%[48] Accounts Management - Accounts receivable grew by 55.89% compared to the beginning of the year, indicating extended payment terms for some customers[19] - The company has implemented measures to manage accounts receivable risks, including establishing a customer credit management mechanism[30] - Accounts receivable rose significantly from ¥47,732,914.26 to ¥74,411,036.65, marking an increase of about 55.93%[37] Operational Insights - The company experienced a 100% increase in trading financial assets due to increased purchases of financial products[19] - Prepayments increased by 176.58% compared to the beginning of the year, aimed at locking in prices for materials[19] - Other income rose by 77.14% year-on-year, primarily due to an increase in government subsidies[19] - The company's sales to the top five customers accounted for a 5.47% increase compared to the same period last year, maintaining stability in future operations[22] - The total procurement from the top five suppliers increased by 6.67% compared to the same period last year, indicating stable supply chain management[22] Risk Management - The company is facing potential risks from market fluctuations and environmental regulations, which may increase operational costs and impact profitability[25] - The company is actively monitoring market trends and customer needs to mitigate risks and adapt its product planning and marketing strategies[25] - The company is coordinating with local government regarding potential changes in heating sources due to environmental regulations, which may affect operational costs[27] - The company emphasizes the importance of environmental compliance, with no major safety incidents or environmental violations reported during the reporting period[24] Research and Development - Research and development expenses for Q1 2020 were CNY 3,993,303.17, a decrease from CNY 4,517,231.09 in the previous period[43] Audit and Compliance - The company did not undergo an audit for the Q1 2020 report[49] - The company reported a cash flow impact from exchange rate changes of 90,915.75 CNY, an improvement from -213,084.22 CNY in the previous year[48]

Financial Performance - The company's operating revenue for 2019 was CNY 456.34 million, a decrease of 2.74% compared to 2018[21]. - Net profit attributable to shareholders for 2019 was CNY 39.46 million, an increase of 37.03% year-over-year[21]. - The net cash flow from operating activities increased by 178.08% to CNY 108.78 million in 2019[21]. - Basic earnings per share for 2019 were CNY 0.4444, reflecting a 37.03% increase from the previous year[21]. - Total assets at the end of 2019 amounted to CNY 759.43 million, up 3.38% from 2018[21]. - The company's net assets attributable to shareholders increased by 5.54% to CNY 650.46 million by the end of 2019[21]. - The total operating costs were 366.64 million yuan, down 3.91% compared to the previous year[40]. - The gross profit margin for the artificial leather industry was 19.87%, down from 21.06% in the previous year[47]. - The total comprehensive income attributable to the parent company was CNY 39,463,064.32, an increase from CNY 28,798,197.26 in the previous year, representing a growth of approximately 37%[189]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 4 RMB per 10 shares to shareholders, reflecting its commitment to returning value to investors[9]. - The cash dividend distribution for 2018 was approved, with a total cash dividend of ¥5,328,000 distributed at a rate of ¥0.6 per 10 shares[71]. - The cash dividend payout ratio for 2019 was 90.01% of the net profit attributable to ordinary shareholders[76]. - The company has consistently maintained a cash dividend distribution of over 80% in its profit distribution plans during its mature development stage[73]. - The net cash flow from financing activities was negative at CNY -5,328,000.00, slightly worse than the previous year's negative CNY -4,973,317.41[192]. Market and Product Development - The company emphasizes the importance of staying ahead in product development to avoid losing market share, particularly in the rapidly evolving microfiber leather sector[5]. - The company is actively monitoring market trends and customer needs to adapt its product planning and marketing strategies accordingly[5]. - The company plans to focus on market promotion of new products, including the "Super棒" and "Rainbow" series, which emphasize high fidelity and no color migration[41]. - The company aims to enhance its product offerings and explore potential mergers and acquisitions to drive growth[200]. Risk Management - The company has maintained a strong focus on customer credit management to mitigate the risk of bad debts, implementing measures to track customer financial health[7]. - The company is taking steps to mitigate foreign exchange risks due to its high export ratio and reliance on USD transactions[8]. - The company reported no major safety incidents or environmental violations during the reporting period, indicating effective risk management practices[4]. - The company is facing potential risks related to changes in heating sources due to local government regulations, which could increase operational costs[9]. Research and Development - The company is recognized as a high-tech enterprise, continuously increasing investment in research and development to strengthen its technological capabilities[37]. - R&D investment in 2019 was ¥23,155,974.02, representing 5.07% of total revenue, with no capitalized R&D expenses[55]. - The company plans to enhance product performance and expand into new application areas based on existing R&D achievements[55]. Corporate Governance - The company has committed to not engaging in similar business activities as its listed subsidiaries to avoid potential competition, a promise that has been strictly adhered to since May 2, 2012[80]. - The company has maintained a long-term commitment to transparency and compliance with financial reporting standards, as evidenced by its adherence to new accounting guidelines[86]. - The company has established a comprehensive talent management system for skill training, including internal and external training programs[142]. - The company has a clear governance structure with designated roles for each board member, enhancing accountability[134]. Shareholder Information - The total number of shareholders increased to 7,585 from 6,675 in the previous month, indicating a growth of approximately 13.6%[115]. - Shandong Tongda Group holds a 32.86% stake, amounting to 29,180,769 shares, and is the largest shareholder[116]. - The second-largest shareholder, Huasheng Baili Investment Development (Beijing) Co., Ltd., owns 10.95% of the shares, totaling 9,726,923 shares[116]. - The company has no preferred shares or convertible bonds outstanding during the reporting period[122][125]. Internal Controls and Audit - The internal control audit report confirmed that the company maintained effective internal controls over financial reporting as of December 31, 2019[165]. - The audit opinion issued was a standard unqualified opinion, indicating that the financial statements fairly represent the company's financial position[170]. - The company has not identified any major internal control deficiencies that could impact its operations[165]. - The management is responsible for ensuring that the financial statements fairly reflect the company's financial position and for maintaining effective internal controls[177].

Financial Performance - Net profit attributable to shareholders increased by 39.13% year-on-year to ¥8,887,401.61, while revenue decreased by 4.13% to ¥106,329,544.22[8] - The basic earnings per share rose by 39.22% to ¥0.1001, reflecting improved profitability[8] - The net profit for the third quarter was CNY 8,887,401.61, an increase of 39.2% compared to CNY 6,387,707.06 in the previous year[33] - The total profit for the quarter was CNY 10,254,405.61, up from CNY 7,320,344.83, reflecting a growth of 40.5%[32] - The operating profit for the quarter was CNY 10,251,207.56, up from CNY 7,378,064.83, indicating a growth of 38.4%[32] Cash Flow - The net cash flow from operating activities showed a significant increase of 984.60%, amounting to ¥60,890,114.53[8] - Net cash flow from operating activities for the period was 60.89 million yuan, an increase of 984.60% compared to the same period last year, mainly due to reduced cash payments for goods and services[18] - The company achieved a net cash flow from operating activities of CNY 230,237,327.40, slightly down from CNY 230,538,192.87 in the previous year[39] - The net cash flow from operating activities for Q3 2019 was ¥60,890,114.53, a significant increase compared to ¥5,614,051.57 in Q3 2018, representing a year-over-year growth of approximately 982%[40] - The cash outflow for operating activities totaled ¥201,384,792.70, down from ¥289,905,439.22 in Q3 2018, showing improved cash management[40] Assets and Liabilities - Total assets at the end of the reporting period reached ¥737,486,723.43, an increase of 0.39% compared to the end of the previous year[8] - The company's net assets attributable to shareholders increased by 3.37% to ¥637,107,994.36[8] - Total liabilities decreased to 100.38 million yuan from 118.30 million yuan at the end of 2018[28] - Cash and cash equivalents at the end of the period grew by 53.01% to ¥180,770,200, mainly due to reduced cash payments for purchases[16] - The total cash and cash equivalents at the end of Q3 2019 reached ¥178,770,195.15, a significant increase from ¥57,137,312.70 at the end of Q3 2018[41] Investment and Expenses - Investment income for the period was 1.34 million yuan, a year-on-year increase of 504.76%, primarily driven by increased wealth management returns[17] - The company reported an investment income of CNY 1,035,671.23, compared to CNY 178,000.00 in the previous year, marking a significant increase[32] - Research and development expenses were CNY 16,875,727.21, slightly down from CNY 17,250,606.92, showing a decrease of 2.2%[36] - Financial expenses for the period amounted to -3.02 million yuan, a year-on-year decrease of 5148.23%, mainly due to increased foreign exchange gains and bank interest income[17] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 7,325[12] - The top shareholder, Shandong Tongda Group Co., Ltd., holds 32.86% of the shares, with 25,720,000 shares pledged[12] Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[32] Compliance and Audit - The company has no overdue commitments or violations regarding external guarantees during the reporting period[21] - The company did not undergo an audit for the Q3 report, which may affect the perception of financial reliability[42] - The company has not applied new financial instrument standards or new revenue standards for the current reporting period[42]

Financial Performance - Total revenue for the reporting period was CNY 227,585,976.27, a decrease of 0.60% compared to the same period last year[26]. - Net profit attributable to shareholders increased by 48.06% to CNY 17,224,674.90 from CNY 11,633,815.91 in the previous year[26]. - Basic earnings per share rose by 48.09% to CNY 0.1940, up from CNY 0.1310[26]. - The total profit reached RMB 20.49 million, representing a year-on-year increase of 49.51%[49]. - Net profit attributable to shareholders was RMB 17.22 million, up 48.06% compared to the previous year[49]. - The company achieved operating revenue of RMB 227.59 million, a year-on-year decrease of 0.6%[49]. - The gross profit margin for the ultra-fiber base cloth product was 23.68%, an increase of 8.35% year-on-year[52]. Cash Flow and Investments - Net cash flow from operating activities surged by 446.01% to CNY 35,663,875.53, compared to CNY 6,531,702.17 in the same period last year[26]. - Cash flow from operating activities increased significantly to RMB 35.66 million, a 446.01% rise[50]. - The net cash flow from investment activities was -¥9,481,189.93 in the first half of 2019, an improvement compared to -¥12,537,979.17 in the same period of 2018[132]. - Cash inflow from investment activities increased significantly to ¥20,645,013.70 in 2019 from ¥5,244,020.83 in 2018, marking an increase of approximately 294%[132]. - The cash received from the disposal of fixed assets and other long-term assets was ¥538,000.00 in 2019, compared to ¥200,000.00 in 2018, indicating a growth of 169%[132]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 726,840,484.46, a decrease of 1.06% from the previous year-end[26]. - Total liabilities were CNY 98,619,891.71, down from CNY 118,297,424.82 year-on-year[123]. - The total equity attributable to shareholders of the parent company increased to CNY 628,220,592.75 from CNY 616,323,917.85[123]. Market Position and Strategy - The company has a notable market presence in the mid-to-high-end segment of the synthetic leather market, with exports to Europe, America, and Southeast Asia[38]. - The company is positioned to benefit from the ongoing transition in the synthetic leather industry, as lower-grade artificial leather production faces increasing restrictions[36]. - The company plans to continue investing in new product development to meet market demands despite facing challenges in talent retention and market competition[9]. - The company operates an internationally advanced production line for synthetic leather, focusing on modernization and cost reduction through continuous equipment upgrades[42]. Research and Development - The company has invested heavily in R&D, increasing its technological innovation capabilities and establishing a strong R&D team to support product development[41]. - Research and development investment amounted to RMB 10.96 million, a decrease of 4.77% year-on-year[49]. - The company is focusing on technology innovation to meet new market demands and enhance product offerings[48]. Risks and Challenges - The company faces risks related to raw material price fluctuations, which could impact gross margins and profitability[7]. - Accounts receivable increased by 59.75% to CNY 80,279,858.21, raising concerns about potential bad debts[8]. - The company plans to continue investing in environmental management systems to comply with national regulations, aiming to mitigate safety and environmental risks[68]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 7,715[104]. - The company has a total of 88,800,000 shares, with 6.82% being limited shares and 93.18% being unrestricted shares[102]. - The largest shareholder, Shandong Tongda Group Co., Ltd., holds 32.86% of the shares, totaling 29,180,769 shares[104]. Compliance and Governance - The company has not experienced any major litigation or arbitration matters during the reporting period, reflecting a stable legal environment[80]. - The company has not reported any major environmental violations, adhering strictly to environmental protection laws[95]. - The company has not engaged in any significant mergers or acquisitions during the reporting period, maintaining its current operational structure[89].

Financial Performance - Total revenue for the first quarter was CNY 87,186,754.77, a decrease of 12.36% compared to the same period last year[7]. - Net profit attributable to shareholders increased significantly to CNY 5,131,074.61, representing a growth of 1,689.83% year-on-year[7]. - The net profit after deducting non-recurring gains and losses was CNY 4,089,566.26, a substantial improvement from a loss of CNY 457,694.07 in the previous year[7]. - The basic earnings per share rose to CNY 0.0578, up 1,706.25% from CNY 0.0032 in the same quarter last year[7]. - Total operating revenue for Q1 2019 was ¥87,186,754.77, a decrease of 12.3% compared to ¥99,484,601.69 in the previous period[39]. - Net profit for Q1 2019 was ¥5,131,074.61, significantly up from ¥286,678.69 in the same period last year, marking an increase of 1681.5%[41]. - Earnings per share (EPS) increased to ¥0.0578 from ¥0.0032, representing a growth of 1712.5%[42]. Expenses and Costs - Sales expenses decreased by 35.97% year-on-year, primarily due to reduced export business commissions[15]. - Financial expenses dropped by 91.05% compared to the previous year, mainly due to exchange losses from currency fluctuations last year[15]. - Total operating costs decreased to ¥82,369,807.71 from ¥100,029,303.14, reflecting a reduction of 17.7%[39]. - Research and development expenses decreased to ¥4,517,231.09 from ¥5,178,050.03, a reduction of 12.8%[39]. - Sales expenses decreased to ¥1,194,868.89 from ¥1,866,053.65, a decline of 36%[39]. Assets and Liabilities - The company's total assets decreased by 1.77% to CNY 721,584,560.89 compared to the end of the previous year[7]. - As of March 31, 2019, the company's total assets amounted to CNY 721,584,560.89, a decrease from CNY 734,621,342.67 at the end of 2018[35]. - The company's cash and cash equivalents decreased to CNY 97,492,930.96 from CNY 118,139,266.04 at the end of 2018, representing a decline of approximately 17.0%[35]. - Accounts receivable increased to CNY 94,953,662.97 from CNY 109,158,883.40, with accounts receivable specifically rising from CNY 50,253,731.96 to CNY 63,563,665.16, indicating a growth of about 26.6%[35]. - Inventory levels rose to CNY 97,478,480.93, up from CNY 78,731,211.83, reflecting an increase of approximately 23.8%[35]. - Current liabilities decreased to CNY 85,118,871.47 from CNY 102,697,104.51, a reduction of about 17.2%[37]. - The company's total liabilities decreased to CNY 100,129,568.43 from CNY 118,297,424.82, indicating a decline of approximately 15.3%[37]. - The equity attributable to owners remained stable at CNY 88,800,000.00, with capital reserves unchanged at CNY 238,063,314.26[37]. Cash Flow - The net cash flow from operating activities was negative at CNY -15,777,931.38, worsening by 15.77% compared to the previous year[7]. - Cash flow from operating activities showed a net outflow of ¥15,777,931.38, worsening from a net outflow of ¥13,628,448.18 in the previous period[45]. - The net cash flow from investment activities was -3,122,555.68, compared to -5,107,000.00 in the previous period[46]. - The net increase in cash and cash equivalents was -19,113,571.28, down from -21,951,076.39 in the previous period[46]. - The ending balance of cash and cash equivalents was 87,492,930.96, compared to 100,115,593.93 at the end of the previous period[46]. Market Strategy and Risks - The company adopted a production strategy based on sales, resulting in a diversified order situation characterized by a large number of small orders, primarily focusing on ultra-fine leather and ultra-fine synthetic leather[17]. - The total procurement amount from the top five suppliers decreased by 7% compared to the same period last year, maintaining stability without adverse effects on future operations[18]. - The sales revenue from the top five customers accounted for 1.6% less of the total operating income compared to the previous year, indicating stable customer concentration with no negative impact on future operations[19]. - The company is actively seizing market opportunities and integrating existing resources to enhance operational efficiency and market competitiveness, aiming for sustainable development[20]. - The company faces risks from exchange rate fluctuations, particularly with the potential volatility of the RMB against the USD, which could impact profitability; measures include various settlement methods to mitigate exchange losses[21]. - Increased safety and environmental risks due to stricter government regulations may raise production costs, potentially affecting profitability; the company is committed to complying with safety and environmental laws[22]. - The company has established a comprehensive safety and environmental management system to ensure compliance with national standards and regulations[23]. Corporate Governance - The company has committed to not establishing any new subsidiaries or holding companies with similar business scopes to avoid competition[28]. - There were no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[30][31]. - The company has adhered to its commitments regarding profit distribution, ensuring that cash dividends will not be less than 20% of the distributable profits for the year[29]. - The company reported a tax expense of ¥911,176.39, compared to ¥44,352.52 in the previous period, indicating a significant increase in tax obligations[41].

Financial Performance - The company's operating revenue for 2018 was ¥469,213,838.72, representing a 7.43% increase compared to ¥436,750,584.30 in 2017[23]. - The net profit attributable to shareholders for 2018 was ¥28,798,197.26, up 17.62% from ¥24,484,663.33 in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥25,014,907.28, a 31.50% increase from ¥19,023,058.93 in 2017[23]. - The net cash flow from operating activities increased by 56.07% to ¥39,117,985.19 in 2018 from ¥25,064,866.44 in 2017[23]. - The total assets at the end of 2018 were ¥734,621,342.67, a 1.81% increase from ¥721,589,835.65 at the end of 2017[23]. - The net assets attributable to shareholders at the end of 2018 were ¥616,323,917.85, reflecting a 3.96% increase from ¥592,853,720.59 at the end of 2017[23]. - The company's total cash and cash equivalents decreased by ¥15.46 million, a reduction of 45.22% year-on-year[58]. - The company reported a total comprehensive income of 28,798,197.26 CNY for the year[183]. Dividend Distribution - The company reported a profit distribution plan of 0.60 RMB per 10 shares for all shareholders, based on a total of 88,800,000 shares[12]. - The cash dividends in 2018, 2017, and 2016 were consistent, indicating a stable dividend policy despite fluctuations in net profit percentages[76]. - In 2018, the cash dividend amount was 5,328,000, representing 18.50% of the net profit attributable to ordinary shareholders[76]. - The total cash dividend for 2018 represents a consistent policy aligned with the company's charter and shareholder interests[72]. Environmental Compliance - The company has established a comprehensive environmental management system to comply with national environmental laws and regulations, with no major safety or environmental violations reported during the reporting period[7]. - The company emphasizes the importance of adhering to environmental laws and regulations to reduce safety and environmental risks in its operations[9]. - The company aims to maintain compliance with environmental regulations while managing production costs effectively[9]. - The company has invested significantly in upgrading its boiler system for three consecutive years to meet environmental standards, mitigating risks related to energy supply[11]. Market and Industry Position - The company operates in the ecological ultra-fiber synthetic leather industry, which is experiencing growth due to increasing environmental regulations and demand for high-fidelity materials[31]. - The ecological ultra-fiber synthetic leather is positioned as a substitute for natural leather and early-generation synthetic leathers, with significant growth potential in various applications[33]. - The company is recognized as a leading player in the ultra-fiber synthetic leather industry, alongside competitors like Huafeng Super Fiber and Shuangxiang Co., Ltd[32]. - The company expanded its market presence, with overseas sales accounting for 37.00% of total revenue, amounting to CNY 173.64 million, a 4.53% increase from the previous year[46]. Research and Development - R&D investment amounted to ¥24.07 million, up 9.35% year-on-year, accounting for 5.13% of total operating revenue[54]. - The company holds 10 core patented technologies and has participated in the formulation of 16 national and industry standards[36]. - The company completed 4 patent applications and received over CNY 1 million in government support and awards[40]. - The company completed the optimization of 8 mainstream product processes and developed 9 new products during the reporting period[54]. Risk Management - The company is closely monitoring raw material prices, which are influenced by supply-side reforms and economic cycles, to mitigate potential cost pressures[10]. - The company plans to continue exploring energy supply solutions to address potential risks associated with energy sourcing and costs[11]. - The company is prepared to engage in forward foreign exchange transactions to hedge against currency fluctuations that could impact its financial performance[6]. - The company’s risk management strategy includes monitoring foreign currency exposure to mitigate potential financial impacts[200]. Corporate Governance - The company has established a robust governance structure with independent committees for strategy, remuneration, audit, and nominations[135]. - The company has a clear and transparent information disclosure policy, ensuring timely and accurate communication with investors[136]. - The company maintains effective internal controls over financial reporting as of December 31, 2018, with no significant deficiencies identified[150]. - The audit opinion for the financial statements was a standard unqualified opinion, indicating fair representation of the company's financial position and results for the year ended December 31, 2018[156]. Employee and Management Information - The total number of employees in the company is 582, with 387 in production, 16 in sales, 102 in technical roles, 7 in finance, and 70 in administration[129]. - The total remuneration for directors, supervisors, and senior management in 2018 amounted to 2.4621 million yuan[128]. - The company has implemented a comprehensive talent management system, including internal and external training programs to enhance employee skills[131]. - The company’s board of directors consists of nine members, including three independent directors, ensuring compliance with relevant laws and regulations[135].