Financial Performance - The company's revenue for Q3 2022 was ¥439,888,560.11, representing a 16.81% increase year-over-year[5] - The net profit attributable to shareholders for Q3 2022 was ¥988,056.58, a 20.81% increase compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥6,865,472.43, a decrease of 71.14% year-over-year[5] - The company reported a net loss of CNY 10,151,994.03 for the third quarter of 2022, compared to a net loss of CNY 6,690,163.45 in the same period last year[27] - Total comprehensive income attributable to the parent company was CNY 2,364,692.93, down from CNY 52,553,017.32 year-over-year[27] - The net profit attributable to shareholders of the parent company was 2.36 million yuan, a significant decrease from 52.55 million yuan in the previous period[26] - The company reported a net loss of 7.79 million yuan for the current period, compared to a net profit of 45.86 million yuan in the previous period[26] Assets and Liabilities - The total assets at the end of Q3 2022 were ¥3,575,212,830.96, a decrease of 0.44% compared to the end of the previous year[5] - As of September 30, 2022, total assets amounted to 3.58 billion yuan, a slight decrease from 3.59 billion yuan at the beginning of the year[24][25] - The company’s total liabilities decreased from 1.59 billion yuan to 1.46 billion yuan, reflecting a reduction in financial obligations[25] Cash Flow - The cash flow from operating activities for the year-to-date was ¥37,073,334.97, an increase of 140.63% compared to the same period last year[5] - Operating cash inflow for the period was CNY 1,626,813,568.46, slightly down from CNY 1,634,115,091.65 in the previous year[29] - The net cash flow from operating activities was CNY 37,073,334.97, a significant improvement from a net outflow of CNY 91,245,367.97 in the same quarter last year[29] - Cash and cash equivalents at the end of the period totaled CNY 602,871,610.02, down from CNY 654,181,313.00 at the end of the previous year[30] - The company experienced a net cash outflow of CNY 173,890,044.17 in cash and cash equivalents during the quarter[30] - Investment activities resulted in a net cash outflow of CNY 220,981,185.37, compared to a net outflow of CNY 334,311,310.52 in the previous year[29] - Financing activities generated a net cash inflow of CNY 1,818,154.86, a decrease from CNY 749,625,951.83 year-over-year[29] Shareholder Information - The total number of common shareholders at the end of the reporting period is 18,204[15] - The largest shareholder, Chen Linsen, holds 18.35% of shares, totaling 47,659,390 shares[15] - The second-largest shareholder, Yu Zhangxing, holds 8.19% of shares, totaling 21,272,004 shares[15] - The third-largest shareholder, Shenzhen Deep Venture Capital, holds 5.19% of shares, totaling 13,487,397 shares[15] - The fourth-largest shareholder, China Merchants Bank, holds 4.97% of shares, totaling 12,911,711 shares[16] - The fifth-largest shareholder, Jiangsu Sudav Investment, holds 4.08% of shares, totaling 10,605,910 shares[16] Incentive Plans - The company plans to grant 6 million restricted stock options under the 2021 incentive plan, with an initial grant of 5.5 million shares[18] - The grant price for the restricted stock is set at 14.54 yuan per share[19] - A total of 240.90 thousand shares of previously granted restricted stock were canceled due to performance targets not being met[20] - The company is actively progressing with the 2021 restricted stock incentive plan[20] - The actual controller and participating directors and senior management plan to increase their shares by at least 26.45 million yuan within 6 months, with a maximum price of 30 yuan per share[21] - As of August 30, 2022, the increase plan has seen an indirect increase of 21.78 million yuan, totaling 1,266,500 shares, which accounts for 0.49% of the total share capital[21] Expenses - The company’s financial expenses decreased by 95.27% to ¥1,081,974.97, primarily due to increased foreign exchange gains[12] - The company’s investment income increased significantly by 1064.52% to ¥4,209,573.17, attributed to higher returns from purchased financial products[12] - Research and development expenses increased to 99.83 million yuan from 84.63 million yuan, indicating a focus on innovation and development[26] - Total operating costs increased to 1.35 billion yuan from 1.14 billion yuan, resulting in a rise of about 18.2%[25][26]

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2022, representing a year-on-year increase of 15% compared to RMB 435 million in the same period of 2021[16]. - The company's revenue for the reporting period was ¥880,449,344.63, representing a 9.85% increase compared to ¥801,468,831.63 in the same period last year[22]. - The company anticipates a revenue growth forecast of 20% for the second half of 2022, driven by new product launches and increased market demand[16]. - The company reported a significant increase in revenue, achieving a total of 1,045.33 million CNY in the first half of 2022[138]. - The company reported a year-on-year revenue increase of 43% in the first half of 2022 compared to the same period in 2021[155]. - The company achieved operating revenue of RMB 74.58 million and a net profit of RMB 3.87 million during the reporting period[98]. - The company reported a total revenue of 1,259.7 million for the first half of 2022, reflecting a significant growth compared to previous periods[156]. Profitability and Margins - The gross profit margin improved to 35% in the first half of 2022, up from 30% in the same period last year[16]. - The net profit attributable to shareholders decreased significantly by 97.34% to ¥1,376,636.35 from ¥51,735,142.28 year-on-year[22]. - The gross margin for micro-nano optical products was 16.68%, showing a decrease of 6.26% year-on-year, while reflective materials had a gross margin of 12.50%, down 15.09%[63]. - Operating costs rose to approximately ¥742.38 million, a 23.27% increase compared to the previous year, attributed to rising labor and transportation costs amid revenue growth[61]. Research and Development - The company plans to invest RMB 100 million in R&D for new product development and technology innovation in 2022[16]. - The company has obtained 600 patent authorizations as of June 30, 2022, including 149 invention patents, 406 utility model patents, and 45 design patents, showcasing its strong R&D capabilities[53]. - The company is actively pursuing new product development in areas such as flexible foldable capacitive touch, Mini LED transparent electrode films, and 5G transparent antennas[33]. - Research and development expenses increased by 19.08% to approximately ¥64.97 million, reflecting the company's commitment to expanding new markets and product development[61]. Market Expansion and Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 25% increase in market share by the end of 2023[16]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market presence, with a budget of RMB 200 million allocated for this purpose[16]. - The company is actively expanding into the large-size touch device market, with its flexible transparent conductive film products gaining recognition from leading brands and international manufacturers[45]. - The company is focusing on expanding its optical product line and enhancing its manufacturing capabilities[78]. User Engagement and Growth - User data indicates a 20% increase in active users for the company's main product line, reaching 1 million active users by June 2022[16]. - The company has reported a significant increase in user data, indicating a growing customer base and market interest[75]. - User data indicates a consistent increase in customer engagement, with a notable rise in active users contributing to revenue growth[156]. Financial Management and Investments - No cash dividends will be distributed for the current fiscal year, as the company focuses on reinvestment for growth[5]. - The company has invested in a micro-nano optical light guide plate industrialization project, which has begun mass production, alleviating previous capacity constraints and supporting continuous revenue growth[44]. - The company has made significant investments totaling ¥37,500,000 during the reporting period, marking a 100% increase compared to the same period last year[72]. - The company is utilizing self-raised funds for its projects, ensuring financial stability and project sustainability[77]. Risk Management - The company has identified key risks including supply chain disruptions and market competition, with strategies in place to mitigate these risks[4]. - The company is facing financial risks due to a large debt scale and the need for substantial funding for ongoing projects, which may affect cash flow and operational performance[104]. Environmental and Social Responsibility - The company has implemented measures to ensure compliance with environmental regulations, including the operation of four RTO incinerators with a waste gas treatment efficiency of over 99%[120]. - The company emphasizes the importance of fulfilling social responsibilities while pursuing economic benefits and protecting shareholder interests[125]. - The company aims for sustainable development and growth, ensuring a harmonious relationship with employees, society, and the environment[125]. Shareholder and Governance - The company held its first extraordinary general meeting in 2022 with a participation rate of 36.77% on April 15, 2022[109]. - The stock incentive plan approved in 2021 involved granting 5.49 million restricted stocks at a price of 14.54 CNY per share[115]. - The company has a commitment to ensure that the information disclosure documents related to the incentive plan do not contain false records or misleading statements[138]. - Major shareholder Chen Linsen holds 18.35% of the shares, totaling 47,659,390 shares, with 35,744,542 shares under lock-up[181].

Financial Performance - The company achieved operating revenue of 1,736.79 million yuan in 2021, an increase of 24.74% compared to the previous year[4]. - Operating profit was -376.91 million yuan, a decline of 792.49% year-on-year; net profit attributable to shareholders was -349.63 million yuan, down 761.95%[4]. - The decline in performance was primarily due to a significant drop in sales of high-margin products, particularly micro-prism reflective materials, affected by rising commodity prices and project delays caused by the pandemic[4]. - The parent company's net profit for 2021 was -134.17 million yuan, a decrease of 445.91% year-on-year, mainly due to underperformance of subsidiary Hua Risheng[5]. - The company made a substantial impairment provision of 309.62 million yuan for goodwill based on the performance of Hua Risheng[4]. - The net profit attributable to shareholders was -¥349,626,181.80 in 2021, a decrease of 761.95% from a profit of ¥52,817,506.16 in 2020[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥380,039,999.21, compared to a profit of ¥9,649,500.81 in the previous year, marking a decline of 4,038.44%[20]. - The net cash flow from operating activities was ¥10,914,216.81, down 77.70% from ¥48,942,107.60 in 2020[20]. - The total assets at the end of 2021 were ¥3,591,159,026.01, an increase of 16.46% from ¥3,083,562,965.19 at the end of 2020[20]. - The net assets attributable to shareholders increased by 28.55% to ¥1,997,522,482.62 at the end of 2021, up from ¥1,553,864,246.08 in 2020[20]. - The basic earnings per share for 2021 was -¥1.4396, a decrease of 716.00% from ¥0.2337 in 2020[20]. - The weighted average return on equity was -20.47% in 2021, down from 3.45% in 2020, indicating a significant decline in profitability[20]. Revenue Breakdown - The consumption electronic materials segment saw revenue growth of 59.13%, reaching 573.64 million CNY, driven by increased orders for high-efficiency optical plates[63]. - The reflective materials segment reported a revenue decline of 16.00%, totaling 353.95 million CNY, primarily due to reduced demand in road engineering related to the pandemic[66]. - Domestic revenue accounted for 92.48% of total revenue, amounting to ¥1,606,202,782.26, with a year-on-year growth of 30.29%[86]. - The revenue from micro-nano optical products was ¥1,340,351,356.64, accounting for 77.17% of total revenue, with a significant year-on-year growth of 40.86%[84]. - The sales volume of micro-nano optical products increased by 46.39% to 22,888.63 million square meters in 2021, while production volume rose by 33.31% to 21,199.03 million square meters[89]. Investment and R&D - The company has invested in a micro-nano optical guide plate industrialization project, which has begun mass production, alleviating previous capacity constraints[36]. - The company is focusing on technological innovation in the micro-nano optical industry, developing multiple series of lithography machines and imprinting equipment[33]. - The company has invested in the field of nano-textured optical films, primarily applied in mid-to-high-end smartphone back panels, and has quickly entered the domestic market with brands like Huawei and Xiaomi[38]. - The company has established a robust R&D team with 15 PhDs and 63 Masters, contributing to multiple national projects and winning several national and provincial awards[70]. - The R&D investment amount for 2021 was ¥129,333,527.50, which is 7.45% of the operating revenue, up from 6.70% in 2020[100]. - Research and development expenses accounted for 15% of total revenue, reflecting the company's commitment to innovation[162]. Strategic Initiatives - The company has established a strategic cooperation framework with a leading packaging solutions provider to promote the development of environmentally friendly packaging materials[62]. - The company is actively developing capacitive touch solutions for large-sized smart terminal devices, with significant recognition from leading brands and manufacturers[37]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[162]. - The company plans to enhance marketing efforts for micro-prism products and promote environmentally friendly production processes to expand its market share in reflective materials[80]. - The company is committed to becoming a leading domestic and internationally recognized manufacturer of micro-nano functional devices and high-end intelligent equipment[139]. Governance and Management - The company has established a comprehensive governance structure, including a board of directors and various committees, to ensure compliance with legal and regulatory requirements[153]. - The company has maintained operational independence from its controlling shareholder, ensuring autonomy in business and financial matters[155]. - The company’s board of directors includes members with terms ending in 2024, indicating stability in leadership[158]. - The company has a diverse board with members aged between 37 and 74, ensuring a range of perspectives[159]. - The company has a clear structure for executive compensation, with no additional allowances for directors and supervisors[169]. Risks and Challenges - The company is facing significant financial risk due to large debt levels, with funding for projects like high-performance flexible touch screens relying on debt financing, necessitating careful financial planning[148]. - The company has a goodwill amount of ¥82.01 million remaining after multiple impairments, which poses a risk of further impairment if the performance of the acquired entity deteriorates[147]. - The company exports primarily in USD, exposing it to exchange rate fluctuations that could adversely affect profits, prompting the use of financial instruments for hedging[148]. - Increased environmental protection expenditures are anticipated due to stricter regulations, which may also present new market opportunities for the company[149]. Employee and Compensation - The total number of employees at the end of the reporting period is 2,773, with 306 in the parent company and 2,467 in major subsidiaries[182]. - The professional composition includes 2,071 production personnel, 112 sales personnel, 416 technical personnel, 41 financial personnel, and 133 administrative personnel[182]. - Employee compensation consists of basic salary, performance pay, and position pay for certain roles, with compliance to national labor laws for social insurance and housing fund contributions[184]. - The company adheres to a performance-based salary distribution mechanism, linking employee compensation to company performance and individual capabilities[183]. Shareholder Engagement - The company did not distribute any cash dividends or issue bonus shares for the fiscal year 2021, with a total distributable profit of ¥132,782,581.21[189]. - The company plans to hold its annual general meeting, demonstrating transparency and engagement with shareholders[173]. - The board has emphasized the importance of considering the interests of minority shareholders in decision-making processes[176].

Financial Performance - The company's revenue for Q1 2022 was CNY 397,578,903.71, representing a 9.94% increase compared to CNY 361,618,140.66 in the same period last year[3] - The net profit attributable to shareholders was a loss of CNY 23,246,017.11, a decrease of 254.68% from a profit of CNY 15,028,924.79 in the previous year[3] - The company reported a net loss of CNY 26,679,319.09, compared to a net profit of CNY 11,742,167.21 in the previous year[29] - Total operating revenue for the first quarter was CNY 397,578,903.71, an increase of 9.9% compared to CNY 361,618,140.66 in the previous year[28] - Total operating costs rose to CNY 430,848,825.49, up 24.1% from CNY 346,890,704.74 in the same period last year[28] - The total comprehensive income for the period was -26,679,319.09 CNY, compared to 11,742,167.21 CNY in the previous period[30] Cash Flow and Assets - The net cash flow from operating activities improved to -CNY 59,199,867.68, a 46.37% increase compared to -CNY 110,387,015.84 in the same period last year[10] - Cash inflow from operating activities totaled 588,019,391.97 CNY, up from 420,606,575.60 CNY year-over-year[33] - The total cash outflow from operating activities was 647,219,259.65 CNY, compared to 530,993,591.44 CNY in the previous period[33] - The net cash flow from investing activities was -201,305,177.39 CNY, compared to -119,517,915.74 CNY in the previous period[33] - The net cash flow from financing activities was -16,144,617.29 CNY, a decrease from 82,458,271.47 CNY in the previous period[34] - Cash and cash equivalents decreased to CNY 567,956,647.26 from CNY 814,962,812.52, a decline of 30.3%[25] - Current assets totaled CNY 2,260,240,116.18, down 4.9% from CNY 2,376,705,043.32 at the start of the year[25] - The total assets at the end of the reporting period were CNY 3,516,349,210.44, down 2.08% from CNY 3,591,159,026.01 at the end of the previous year[3] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,413[11] - The company reported a total of 92,305,266 shares held by major shareholders, with 33,613,445 shares under lock-up[17] - The top shareholder, Shenzhen Zhengyuan Investment Co., Ltd., holds 13,487,397 shares, which are subject to lock-up until February 14, 2022[15] - A major shareholder, Yu Zhangxing, holds 21,272,004 shares (8.19% of total shares) and plans to reduce holdings by up to 5 million shares (1.93% of total shares) within six months[22] Expenses and Liabilities - Management expenses increased by 34.77% to CNY 36,368,795.24, primarily due to the accrual of equity incentive expenses[8] - The company experienced a 50.96% increase in financial expenses, amounting to CNY 9,030,053.58, primarily due to the impact of RMB exchange rate fluctuations[8] - The total liabilities decreased to CNY 1,531,233,618.57 from CNY 1,586,441,849.13, a reduction of 3.5%[26] - The company’s equity attributable to shareholders decreased to CNY 1,981,354,199.61 from CNY 1,997,522,482.62, a decline of 0.8%[26] Research and Development - Research and development expenses for the quarter were CNY 30,432,811.66, compared to CNY 28,279,905.61 in the previous year, reflecting an increase of 7.6%[29] - The company is leading a national key research project in the field of naked-eye 3D technology, focusing on ultra-thin wide-angle vector light field display technology, which has been approved and is progressing well[21] Subsidiary Performance - In Q1 2022, the subsidiary Changzhou Huari Sheng Reflective Materials Co., Ltd. achieved revenue of CNY 10.5667 million, representing a year-on-year growth of 69.67%[18] Joint Ventures and Collaborations - The company has established a joint venture, Suzhou Liwei Optical Technology Co., Ltd., with Gao Wei Electronics to develop optical materials and devices, with ongoing progress in production line construction[19] - The company has completed the transfer of shares in Suzhou Zhongwei Lianchuang Micro-Nano Manufacturing Innovation Center to enhance collaboration and secure funding support for new technology development[20] Stock and Share Unlocking - The company reported a total of 35,744,542 restricted shares held by executive Chen Linsen, which will be unlocked at a rate of 25% annually during his term[15] - The company has a total of 15,954,003 restricted shares held by executive Yu Zhangxing, with a similar unlocking schedule as Chen Linsen[15] - The report highlights that the company has a total of 1,786,926 restricted shares held by executive Zhu Zhijian, also subject to the same unlocking conditions[15] - The company has a total of 2,255,298 shares held by Beijing Chengtong Jin控 Investment Co., Ltd., which are subject to lock-up[15]

Financial Performance - The company achieved operating revenue of 1,736.79 million yuan in 2021, an increase of 24.74% compared to the previous year[4] - The operating profit was -376.91 million yuan, a decline of 792.49% year-on-year, while the net profit attributable to shareholders was -349.63 million yuan, down 761.95%[4] - The decline in performance was primarily due to a significant drop in sales of high-margin products, particularly micro-prism reflective materials, affected by rising commodity prices and project delays caused by the pandemic[4] - The parent company reported a net profit of -134.17 million yuan, a year-on-year decrease of 445.91%, mainly due to underperformance of the subsidiary Huarisheng[5] - The company made a substantial impairment provision of 309.62 million yuan for goodwill based on Huarisheng's revenue and profit situation[4] - The net profit attributable to shareholders was -¥349,626,181.80, a decrease of 761.95% from ¥52,817,506.16 in the previous year[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥380,039,999.21, a decline of 4,038.44% compared to ¥9,649,500.81 in 2020[20] - The net cash flow from operating activities was ¥10,914,216.81, down 77.70% from ¥48,942,107.60 in the previous year[20] - The total assets at the end of 2021 were ¥3,591,159,026.01, an increase of 16.46% from ¥3,083,562,965.19 at the end of 2020[20] - The net assets attributable to shareholders increased by 28.55% to ¥1,997,522,482.62 from ¥1,553,864,246.08 in 2020[20] - The basic earnings per share for 2021 was -¥1.4396, a decrease of 716.00% from ¥0.2337 in 2020[20] - The company reported a quarterly operating revenue of ¥558,749,396.71 in Q4 2021, the highest among the four quarters[23] - The company experienced a significant decline in net profit in Q4 2021, reporting -¥402,179,199.12 attributable to shareholders[23] - The weighted average return on net assets was -20.47% in 2021, a decrease of 23.92% from 3.45% in 2020[20] - The company reported a government subsidy of ¥30,042,019.72 in 2021, an increase of 41.3% from ¥21,259,137.89 in 2020[26] Subsidiary Performance - The subsidiary Weiwang Technology's light guide material business grew by 59.13% in revenue, but profit growth was only 33.14% due to rising raw material costs[5] - The company’s subsidiary, Weiwang Technology, has seen rapid revenue growth and increased market share in the light guide materials sector, with a 10%-20% improvement in light efficiency for LCD backlight modules[35] - The company’s subsidiary, Weiyida, achieved revenue of 106.96 million CNY, a year-on-year increase of 61.25%[65] - Changzhou Huari Sheng Reflective Materials reported a revenue of 353.95 million yuan but faced a net loss of 72.14 million yuan[137] - Suzhou Weiyeda Touch Technology reported a revenue of 106.96 million yuan but incurred a net loss of 33.34 million yuan[134] - Jiangsu Weige New Materials Technology generated a revenue of 149.93 million yuan with a net profit of 20.73 million yuan[135] - Suzhou Maita Optoelectronics had a revenue of 18.99 million yuan with a net loss of 9.87 million yuan[138] Product Development and Innovation - The company has made breakthroughs in consumer electronics businesses such as light guide plates and conductive films, with ongoing developments detailed in the report[5] - The company has developed an environmentally friendly 3D transfer material for packaging, which is biodegradable and has a surface structure depth of up to 50 microns[34] - The company’s new optical printing materials are primarily used in the packaging of tobacco and cosmetics, with stable demand driven by the growth of the consumer goods market[34] - The company is actively expanding into the large-size touch device market, with its flexible touch products gaining recognition from major brands like Hisense and BOE[36] - The company is focusing on technological innovation to meet downstream market demands, launching products in public safety materials and new printing materials[32] - The company has invested in a micro-nano optical light guide plate industrialization project, which has broken previous capacity bottlenecks and supports ongoing revenue growth[35] - The company aims to focus on innovation and has developed a core equipment for the micro-nano manufacturing industry, namely the lithography machine[140] - The company plans to explore applications of micro-nano structured products in new fields, including large-size flexible displays and augmented/virtual reality[140] Market and Competitive Position - The company is the sole designated supplier of anti-counterfeiting films for driving licenses and vehicle registration certificates in China, with an annual demand exceeding 100 million units[33] - The company has established four major business segments: public safety and new printing materials, consumer electronics new materials, reflective materials, and high-end intelligent equipment, leveraging strong R&D capabilities[40] - The company has established business relationships with major panel manufacturers, including Microsoft and Huawei, enhancing its market presence in the new display optical materials sector[82] - The company plans to strengthen marketing efforts for micro-prism products and aims to break the monopoly of foreign companies in the reflective materials market[81] - The company is committed to becoming a leading domestic and internationally renowned manufacturer of micro-nano functional devices and high-end intelligent equipment[140] Financial Management and Governance - The board approved a profit distribution plan with no cash dividends or bonus shares, and no capital reserve conversion to shares[6] - The company highlighted potential risks in its future operations and outlined corresponding countermeasures in the management discussion section[6] - The company emphasizes that any forward-looking statements regarding future plans and performance forecasts do not constitute commitments to investors[5] - The company has implemented various governance structures and internal controls to ensure compliance with legal and regulatory requirements[154] - The board of directors has established specialized committees to oversee strategic, audit, and compensation matters, ensuring effective governance[155] - The company maintains independence from its controlling shareholder in terms of operations, assets, and finances, ensuring autonomous business capabilities[156] - The company has a structured remuneration decision-making process based on performance evaluations and profitability[170] - The total remuneration paid to directors, supervisors, and senior management in 2021 amounted to CNY 2.8094 million[170] Risks and Challenges - The company acknowledges risks from macroeconomic changes and COVID-19, and will adjust operations accordingly while seizing opportunities in remote work and infrastructure markets[147] - The company faces management risks due to rapid expansion and acquisitions, necessitating improved operational management and market development strategies[147] - Financial risks are present due to significant debt levels, with funding for projects relying on debt financing, necessitating careful financial planning[149] - The company is exposed to foreign exchange risks as export transactions are primarily settled in USD, which could adversely affect profits if the RMB depreciates significantly[149] - Increased environmental protection expenditures are anticipated due to stricter regulations, which may also present new market opportunities[150] Employee and Organizational Structure - The total number of employees at the end of the reporting period was 2,773, with 306 in the parent company and 2,467 in major subsidiaries[183] - The professional composition includes 2,071 production personnel, 112 sales personnel, 416 technical personnel, 41 financial personnel, and 133 administrative personnel[183] - The educational background of employees shows 15 with doctoral degrees, 63 with master's degrees, 316 with bachelor's degrees, and 2,379 with associate degrees or other qualifications[183] - The company adheres to a performance-based salary distribution mechanism, which includes basic salary, performance salary, and position salary for certain roles[184] - The company complies with national laws and regulations regarding social insurance and housing provident fund contributions for employees[185] Internal Control and Audit - The internal control self-evaluation report was fully disclosed on April 27, 2022[200] - Major defects in internal control are identified if they significantly reduce work efficiency or increase uncertainty[200] - The audit committee and internal audit's supervision of internal controls were found to be ineffective[200] - The company has not rectified major defects in internal control within a reasonable timeframe[200] - The report indicates that there are other internal control deficiencies beyond major and important defects[200]

Financial Performance - The company's revenue for Q3 2021 was ¥376,575,283.28, representing a 3.99% increase year-over-year, while the year-to-date revenue reached ¥1,178,044,114.91, up 26.21% compared to the same period last year[3] - The net profit attributable to shareholders for Q3 2021 was ¥817,875.04, a significant decrease of 95.94% year-over-year, but the year-to-date net profit was ¥52,553,017.32, an increase of 55.62%[3] - The company reported total operating revenue of RMB 1,178,044,114.91 for the current period, compared to RMB 933,376,832.49 in the previous period, indicating significant growth[34] - The net profit for Q3 2021 was CNY 45.86 million, representing a 63% increase from CNY 28.18 million in the same period last year[36] - The total profit for Q3 2021 was CNY 55.61 million, an increase of 60% from CNY 34.69 million in Q3 2020[36] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of -¥91,245,367.97 for the year-to-date, reflecting a decline of 333.24% compared to the previous year[3] - The net cash flow from operating activities for the first nine months of 2021 was -91,245,367.97 RMB, a decrease of 333.24% compared to -21,060,987.88 RMB in the same period of 2020, primarily due to increased procurement payments for inventory production[12] - The net cash flow from financing activities increased by 135.12% to 749,625,951.83 RMB in 2021 from 318,825,704.88 RMB in 2020, mainly due to funds raised from issuing shares to specific investors[12] - The company’s cash and cash equivalents increased by 91.12% to ¥673,281,313.00, primarily due to funds raised from a specific stock issuance[9] - The company reported a total cash and cash equivalents balance of CNY 654.18 million at the end of Q3 2021, compared to CNY 164.74 million at the end of Q3 2020[40] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥3,891,419,052.50, which is a 26.20% increase from the end of the previous year[3] - The company’s total liabilities decreased to RMB 1,484,136,625.12 from RMB 1,513,655,916.20, indicating a reduction in financial leverage[32] - The company’s equity attributable to shareholders increased to RMB 2,394,316,265.22 as of September 30, 2021, compared to RMB 1,553,864,246.08 at the end of 2020, reflecting strong retained earnings[32] - Total current assets amounted to approximately CNY 1.68 billion as of Q3 2021[43] - Total non-current assets reached approximately CNY 1.40 billion, resulting in total assets of approximately CNY 3.08 billion[44] Research and Development - The company’s R&D expenses for the first nine months of 2021 were ¥84,625,654.84, a 35.37% increase compared to the same period in 2020, indicating a focus on new technology and product development[10] - Research and development expenses increased to CNY 84.63 million in Q3 2021, up from CNY 62.52 million in Q3 2020, reflecting a growth of 35%[35] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,050, with no preferred shareholders having restored voting rights[14] - The largest shareholder, Chen Linsen, holds 18.40% of the shares, amounting to 47,782,590 shares, with 37,678,492 shares pledged[14] - The company has a total of 37,678,492 restricted shares held by Chen Linsen, which will be unlocked at a rate of 25% annually during his term[17] - The top ten shareholders collectively hold a significant portion of the company's shares, with the second-largest shareholder, Yu Zhangxing, owning 8.19% or 21,272,004 shares[14] - The controlling shareholder, Chen Linshen, plans to reduce his holdings by up to 3 million shares, representing 1.16% of the total share capital, within a six-month window starting September 22, 2021[29] Strategic Initiatives - The company plans to use the raised funds to increase capital in its wholly-owned subsidiary, Wei Wang Technology, and invest in the optical-grade sheet project[21] - The company approved a change in the implementation method of the optical-grade sheet project to purchasing a factory instead of leasing[22] - The company is actively pursuing strategic cooperation in optical technology fields, including TOF and AR, to enhance its market position[28] - The company has made progress in key industrialization projects, including micro-nano new material manufacturing and high-performance flexible touch screens[25] Inventory and Production - The company’s inventory at the end of Q3 2021 was ¥725,241,051.68, reflecting a 48.95% increase, attributed to expanded business scale and increased material stocking[9] - The company’s inventory rose to RMB 725,241,051.68 from RMB 486,901,688.80, indicating increased production or stockpiling[30] - The production and sales of the micro-nano new material project and the first phase of the optical guide plate project are continuously increasing[25] Other Financial Metrics - The weighted average return on equity for the year-to-date was 2.99%, an increase of 0.77% compared to the previous year[3] - The company experienced a foreign exchange loss of -573,465.70 RMB, an improvement of 31.08% compared to -832,049.52 RMB in the previous year[12] - The company’s goodwill was approximately CNY 391.63 million, highlighting its acquisition strategy[44] - The company’s stock incentive plan is progressing smoothly, with adjustments made to the list of incentive targets and share allocations[24]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15% compared to the same period in 2020[14]. - The net profit attributable to shareholders for the first half of 2021 was RMB 200 million, an increase of 20% year-on-year[14]. - The company's operating revenue for the reporting period was ¥801,468,831.63, representing a 40.30% increase compared to ¥571,261,554.23 in the same period last year[22]. - The net profit attributable to shareholders was ¥51,735,142.28, a significant increase of 279.22% from ¥13,642,551.05 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥38,906,917.31, reflecting a 473.56% increase from ¥6,783,370.83 year-on-year[22]. - The company reported a basic earnings per share of ¥0.23, up 283.33% from ¥0.06 in the same period last year[22]. - Operating profit reached 52.65 million yuan, up 230.77% compared to the same period last year[49]. - Total profit amounted to 59.41 million yuan, reflecting a growth of 301.70% year-on-year[49]. - The company reported a net profit margin of 25% for the first half of 2021, showcasing effective cost management strategies[155]. - The total operating revenue for the first half of 2021 reached CNY 801,468,831.63, a significant increase of 40.2% compared to CNY 571,261,554.23 in the first half of 2020[193]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in sales in this region by the end of 2022[14]. - The company is actively pursuing strategic acquisitions to enhance its product offerings and market share, with a target of completing at least two acquisitions by the end of 2021[14]. - The company plans to continue expanding its market presence and enhancing its product offerings in the upcoming periods[83]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its product offerings[156]. - The company aims to break the monopoly of foreign companies in the reflective materials market by enhancing its marketing efforts and promoting environmentally friendly production processes[67]. Research and Development - Research and development expenses for the first half of 2021 amounted to RMB 150 million, accounting for 12.5% of total revenue, reflecting the company's commitment to innovation[14]. - The company has developed multiple series of lithography machines and imprinting equipment, focusing on core technology breakthroughs in micro-nano optics[31]. - Research and development investment increased by 51.93% to ¥54,559,591.69, reflecting the company's commitment to enhancing its technological capabilities[71]. - The company continues to focus on platform technology research and development, enhancing its capabilities in micro-nano manufacturing equipment[53]. - The company has maintained a strong competitive advantage in R&D, with a well-established team and a focus on original innovation in the micro-nano optical manufacturing field[56]. Product Development - The company has launched a new line of micro-nano optical products, which is expected to contribute an additional RMB 300 million in revenue by the end of 2021[14]. - The company launched new products including public safety materials, new printing materials, and flexible transparent conductive films, aligning with market demand[31]. - The company has successfully developed a "3D optical transfer paper" for customized packaging materials, enhancing its competitive position in the packaging market[66]. - The company has developed a biodegradable 3D transfer material that is gradually replacing traditional packaging materials in the consumer goods sector[45]. Financial Position and Liabilities - Total assets at the end of the reporting period were ¥3,274,718,746.67, a 6.20% increase from ¥3,083,562,965.19 at the end of the previous year[23]. - The company's total liabilities increased, reflecting its ongoing investments and expansion strategies[77]. - Cash and cash equivalents at the end of the reporting period amounted to ¥268,638,100.38, representing 8.20% of total assets, a decrease of 3.22% from the previous year[78]. - Accounts receivable increased to ¥734,534,204.90, accounting for 22.43% of total assets, reflecting a slight increase of 0.12% year-over-year due to enhanced receivables management[78]. - Inventory rose to ¥637,028,140.40, which is 19.45% of total assets, showing a significant increase of 3.66% as the company actively expanded its market presence[78]. Risks and Challenges - The company has identified potential risks related to supply chain disruptions and is implementing measures to mitigate these risks, including diversifying suppliers[4]. - The company faces macroeconomic risks due to uncertainties in global economic growth, impacting various sectors including public card, packaging, and consumer electronics[107]. - There is a significant goodwill impairment risk due to the acquisition of Huari Sheng, which could adversely affect the company's financial performance if Huari Sheng's operations deteriorate[111]. - The company is facing financial risks due to rapid debt growth and the need for substantial funding for projects like high-performance flexible touch screens and micro-nano optical guide plates, with measures in place to manage these risks[112]. Corporate Governance and Compliance - The company has not distributed cash dividends or bonus shares for the half-year period, nor has it increased capital through reserves[122]. - The company emphasizes social responsibility, adhering to laws and regulations while striving for economic and social benefits[126]. - The company has committed to avoiding substantial competition with its own subsidiaries and will cease any competing operations if necessary[129]. - The company has ensured that there are no violations regarding the use of funds from the listed company or its subsidiaries during the reporting period[129]. - The company has pledged to minimize and regulate related party transactions, adhering to fair market principles and legal requirements[130].

Financial Performance - The company's revenue for Q1 2021 was ¥361,618,140.66, representing a 37.27% increase compared to ¥263,442,078.60 in the same period last year[7]. - Net profit attributable to shareholders was ¥15,028,924.79, a significant increase of 215.92% from ¥4,757,170.73 in the previous year[7]. - The net profit after deducting non-recurring gains and losses reached ¥12,255,490.87, marking a 426.10% increase from ¥2,329,517.38 year-on-year[7]. - The basic earnings per share (EPS) was ¥0.066, up 230.00% from ¥0.02 in the same period last year[7]. - The total operating revenue for Q1 2021 was CNY 361,618,140.66, an increase of 37.4% compared to CNY 263,442,078.60 in the same period last year[52]. - The total profit for Q1 2021 was CNY 15,229,298.47, up from CNY 6,490,282.92 in the same period last year, marking an increase of approximately 134.5%[54]. - The total comprehensive income for Q1 2021 was CNY 11,742,167.21, compared to CNY 4,209,551.46 in the same period last year, reflecting an increase of approximately 179.5%[59]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,233,584,763.46, an increase of 4.87% from ¥3,083,562,965.19 at the end of the previous year[7]. - The total liabilities increased to CNY 1,648,996,719.26 from CNY 1,513,655,916.20, representing a rise of 8.9%[46]. - The company's total non-current assets decreased from CNY 1,446,028,871.26 to CNY 1,402,034,986.11, a decline of about 3.04%[69]. - The company's equity attributable to shareholders reached CNY 1,570,110,817.87, up from CNY 1,553,864,246.08, reflecting an increase of 1.0%[47]. Cash Flow - The net cash flow from operating activities was -¥110,387,015.84, which is an increase of 838.20% compared to -¥11,765,783.71 in the same period last year[7]. - The cash inflow from operating activities amounted to CNY 420,606,575.60, compared to CNY 302,107,333.00 in the previous period, representing an increase of approximately 39.2%[61]. - The total cash outflow from operating activities was CNY 530,993,591.44, compared to CNY 313,873,116.71 in the prior period, marking an increase of about 69.5%[62]. - The ending cash and cash equivalents balance was CNY 183,452,371.61, down from CNY 102,792,215.07 in the previous period[63]. Research and Development - The company increased its research and development expenses by 71.98% to CNY 28.28 million, indicating a stronger focus on innovation and product development[20]. - Research and development expenses increased to CNY 28,279,905.61 in Q1 2021, compared to CNY 16,443,498.45 in the same period last year, indicating a growth of about 72%[53]. - The company has obtained a total of 460 patent authorizations, including 129 invention patents, indicating a strong commitment to innovation[25]. Market and Economic Conditions - The company is closely monitoring macroeconomic risks, with the IMF projecting global economic growth of 6% in 2021 and 4.4% in 2022, while China's economy is expected to grow by 8.4%[26]. - The company is exposed to financial risks due to increasing debt levels and potential changes in credit policies affecting funding sources[29]. Investments and Projects - The company plans to raise up to 800 million RMB through a private placement to fund projects including optical-grade sheet materials and micro-nano optical manufacturing[31]. - The high-performance flexible touch screen and module project, along with the micro-nano optical guide plate industrialization project, are currently in the construction phase, with the former having begun trial operations at the end of 2020[31]. - The company is expanding its production capacity in micro-nano new materials and optical guiding plates, which is expected to drive future revenue growth[24]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,572[11]. - The company conducted a site visit with institutional investors on January 15, 2021, discussing project investments and future development[40].

Financial Performance - The company reported a total revenue of RMB 226,048,841 for the year 2020, with no cash dividends or stock bonuses distributed to shareholders [4]. - The company's operating revenue for 2020 was ¥1,392,279,392.33, representing a 7.33% increase from ¥1,297,169,218.28 in 2019 [17]. - The net profit attributable to shareholders decreased by 47.65% to ¥52,817,506.16 in 2020, down from ¥100,887,607.89 in 2019 [17]. - The net profit after deducting non-recurring gains and losses was ¥9,649,500.81, a decline of 89.16% compared to ¥89,048,155.72 in 2019 [17]. - The total assets increased by 26.26% to ¥3,083,562,965.19 at the end of 2020, up from ¥2,442,238,848.09 at the end of 2019 [17]. - The company reported a basic earnings per share of ¥0.2337, down 47.64% from ¥0.4463 in 2019 [17]. - The company achieved a total operating revenue of 139,227.94 million CNY in 2020, representing a year-on-year growth of 7.33% [64]. - The net profit attributable to shareholders decreased by 47.65% to 5,281.75 million CNY compared to the previous year [64]. - The company reported a net profit available for distribution to ordinary shareholders of 52,817,506.16 in 2020, with a profit distribution ratio of 0.00% [152]. Research and Development - The company is focused on the research and development of new technologies, particularly in the field of micro-nano optics and reflective materials [10]. - The company has obtained 423 patent authorizations, including 126 invention patents, showcasing its strong R&D capabilities in the micro-nano optical manufacturing field [53]. - The R&D team has grown to include 12 PhDs and 59 Masters, contributing to the company's leadership in micro-nano optical technology [52]. - The company invested CNY 93.23 million in R&D in 2020, with 201 new patent applications filed, enhancing its intellectual property system [69][70]. - The company is actively developing new technologies such as nano waveguide optical field lenses and maskless lithography, which are expected to enhance its competitive edge in the long term [86]. Market Expansion and Strategy - The company plans to expand its market presence and enhance its product offerings through the development of customized micro-nano optical products [10]. - The company has established four major business segments, including public safety and new printing materials, consumer electronics new materials, reflective materials, and high-end intelligent equipment [28]. - The company aims to enhance its core competitiveness by promoting the industrialization of next-generation augmented reality (AR) applications and developing micro-nano 3D optical field printing systems [126]. - The company plans to expand financing channels and strengthen production capacity and R&D capabilities through stock issuance [68]. - The company is in a rapid expansion phase, with several projects, including high-performance flexible touch screens and micro-nano optical guide plates, set to gradually commence production in 2021 [130]. Product Development and Innovation - The company expanded its product offerings by developing new materials for public safety and new printing materials, including anti-counterfeiting films and 3D transfer materials [27]. - The company is focusing on continuous innovation in fields such as nano waveguide optical lenses and maskless lithography, aiming to strengthen its market position [28]. - The company’s optical materials for consumer electronics are gradually replacing traditional printed and injection-molded light guide plates, showcasing advantages such as shorter development cycles and lower mold costs [31]. - The company’s high-end micro-nano optical equipment is self-developed, providing core technical support for product development and maintenance [36]. - The company has developed an environmentally friendly 3D transfer material that is biodegradable and energy-efficient, enhancing its competitive edge in the packaging sector [43]. Financial Management and Risks - The company has identified potential risks in its future operations and has outlined corresponding mitigation strategies in its management discussion section [4]. - The company is actively managing financial risks associated with increasing debt levels and plans to utilize various financing methods to maintain a reasonable debt level [137]. - The company will implement measures to mitigate foreign exchange risks, particularly due to its export business being primarily settled in USD [138]. - The company reported that accounts receivable reached 687.84 million RMB, accounting for 40.91% of current assets and 22.31% of total assets, indicating potential cash flow risks [134]. Corporate Governance and Compliance - The company’s financial report has been verified for accuracy and completeness by its board and senior management [3]. - The company has engaged Lixin Certified Public Accountants for auditing services, with a fee of 2.3 million yuan for the year [165]. - The company has not reported any violations of commitments made by its actual controllers and shareholders during the reporting period [153]. - The company has taken steps to ensure that any related party transactions are conducted at fair market prices to protect the interests of all shareholders [155]. Environmental and Social Responsibility - The company has complied with environmental protection laws and standards, investing in RTO and other environmental equipment, which may also create new market opportunities [139]. - The company has established a wastewater treatment facility and RTO incinerator to manage environmental impacts, complying with national pollution discharge standards [192]. - The company actively fulfilled social responsibilities during the COVID-19 pandemic by donating reflective vests to charitable organizations [190].

Financial Performance - Operating revenue for the reporting period was ¥362,115,278.26, reflecting a year-on-year growth of 13.52%[7] - Net profit attributable to shareholders decreased by 22.50% to ¥20,128,444.51 compared to the same period last year[7] - Basic earnings per share were ¥0.09, down 25.00% from the previous year[7] - The weighted average return on net assets was 1.32%, a decrease of 0.47% compared to the previous year[7] - Total operating revenue for Q3 2020 was CNY 362,115,278.26, an increase from CNY 318,979,454.17 in the same period last year[48] - Net profit for Q3 2020 was CNY 16,948,785.09, a decrease from CNY 27,958,520.82 in Q3 2019[50] - The net profit attributable to the parent company for the year-to-date was CNY 33,770,995.56, down from CNY 60,606,667.71 in the previous year[58] - The total comprehensive income attributable to the parent company's owners was CNY 20,128,444.51, compared to CNY 25,971,348.66 in the previous period[51] Cash Flow - The net cash flow from operating activities was -¥16,951,926.72, a significant decline of 96.48%[7] - The net cash flow from operating activities for the first nine months of 2020 was -CNY 21.1 million, a significant decline of 1002.81% compared to -CNY 1.9 million in the same period last year, mainly due to increased procurement payments[24] - Cash flow from operating activities showed a net outflow of ¥21,060,987.88, compared to a smaller outflow of ¥1,909,763.08 in Q3 2019[65] - Cash inflow from operating activities totaled ¥1,168,757,975.46, up from ¥983,557,093.04 in the previous year[65] - Net cash flow from operating activities was -CNY 97,893,037.15, worsening from -CNY 59,122,988.98 year-over-year[67] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,848,540,775.21, an increase of 16.64% compared to the previous year[7] - The company's total assets as of September 30, 2020, were CNY 1,978,861,105.62, compared to CNY 1,871,962,542.39 at the end of 2019[46] - The company's total liabilities increased to CNY 1.31 billion from CNY 917.69 million at the end of 2019[42] - The company's total liabilities rose to CNY 539,199,573.30 from CNY 410,617,399.00 in the previous year[46] - Total assets amounted to CNY 2,442,238,848.09, remaining stable compared to the previous period[74] - Total liabilities were CNY 917,689,276.17, unchanged from the previous period[74] Shareholder Information - The company reported a total of 15,514 common shareholders at the end of the reporting period[11] - The largest shareholder, Chen Linsen, holds 22.22% of the shares, with 37,678,492 shares pledged[11] - The company has implemented a strict profit distribution policy in accordance with its articles of association, ensuring the protection of minority shareholders' rights[31] Research and Development - Research and development expenses increased by 38.19% to CNY 62.5 million from CNY 45.2 million, reflecting the company's commitment to enhancing R&D investment[22] - Research and development expenses for Q3 2020 were CNY 26,606,179.66, significantly higher than CNY 11,069,799.29 in Q3 2019[49] - Research and development expenses amounted to ¥26,501,976.23, slightly down from ¥27,942,100.66 in the previous year[60] Financial Management - The company received government subsidies amounting to ¥13,438,210.21 during the reporting period[8] - The company plans to raise up to CNY 800 million through a private placement to fund the optical-grade sheet project and supplement working capital[25] - The company has invested CNY 40.2 million of the CNY 41.7 million raised from previous financing, representing 99.49% of the total[28] - The company’s short-term borrowings increased by 55.44% to CNY 699.5 million from CNY 450 million, driven by funding needs for investment projects[19] Inventory and Receivables - Inventory rose by 34.77% to CNY 490.7 million from CNY 364.1 million, attributed to increased material stocking due to business expansion[19] - Accounts receivable financing decreased by 43.86% to CNY 36.8 million from CNY 65.5 million, primarily due to reduced acceptance bill collections caused by the pandemic[19] - The company's accounts receivable increased to CNY 629.98 million from CNY 587.93 million at the end of 2019[40] Operational Changes - The micro-nano new material manufacturing project has officially commenced production, positively impacting the company's performance[27] - The company has established part of the production line for high-performance flexible touch screens and modules, which is currently in trial operation[27] Compliance and Governance - There were no significant changes in the classification of non-recurring gains and losses during the reporting period[9] - There were no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[33][34] - The company has not undergone an audit for the third quarter report, indicating that the figures are unaudited[79] - The company is implementing new revenue and leasing standards starting in 2020, which may affect future financial reporting[78]