保定乐凯新材料股份有限公司 2019 年第三季度报告全文 保定乐凯新材料股份有限公司 2019 年第三季度报告 2019 年 10 月 1 保定乐凯新材料股份有限公司 2019 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。 公司负责人张新明、主管会计工作负责人崔胜威及会计机构负责人(会计主 管人员)郝宝云声明：保证季度报告中财务报表的真实、准确、完整。 2 保定乐凯新材料股份有限公司 2019 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 | --- | --- | --- | --- | --- | |-----------------------------------------------------|----------------|-------------------------|----------------|-------------- ...

Financial Performance - Total revenue for the reporting period was ¥123,998,737.43, an increase of 3.38% compared to the same period last year[25]. - Net profit attributable to shareholders was ¥48,170,658.60, reflecting a growth of 5.01% year-over-year[25]. - Net profit after deducting non-recurring gains and losses was ¥45,370,533.64, up 7.53% from the previous year[25]. - Net cash flow from operating activities decreased by 22.77% to ¥36,507,325.51 compared to the same period last year[25]. - The company's sales revenue for information anti-counterfeiting materials reached RMB 115.62 million, a decrease of 2.30% compared to the same period last year[51]. - Sales revenue for electronic functional materials was RMB 8.38 million, representing a significant increase of 425.30% year-on-year[51]. - The company achieved a gross margin of 61.01% for information anti-counterfeiting materials, which is an increase of 1.10% compared to the previous year[51]. Market Risks - The company faces risks due to the concentration of its market in the domestic railway passenger transport sector, which may significantly impact performance if orders from China Railway Corporation decrease[5]. - There is a risk of declining product prices for thermal magnetic tickets as market competition increases, potentially affecting the company's gross margin and profitability[6]. - The company is facing risks due to the decline in demand for magnetic stripe cards as a result of the EMV migration policy, which aims to enhance payment security and reduce fraud[86]. - The company's main product, thermal magnetic tickets, has a concentrated market primarily in the domestic railway passenger transport sector, which poses a risk if orders from China Railway Corporation decrease significantly[87]. Product Development and R&D - The company has increased its R&D investment and now holds 28 patents, including 18 invention patents[40]. - The company has expanded its product offerings in electronic functional materials, including electromagnetic wave protection films and pressure testing films[37]. - New product sales, such as electromagnetic wave protective films and pressure testing films, have begun but have not yet significantly impacted overall performance; the company acknowledges the risk of sales not meeting expectations[9]. - The company plans to expand its market share by developing new applications for magnetic stripe products and enhancing its product offerings to mitigate the impact of EMV migration[86]. - The company will increase R&D investment and accelerate the development and market introduction of new products to adapt to market changes and enhance competitiveness[88]. Investment and Fund Management - The total amount of raised funds is RMB 111.53 million, with RMB 9.63 million invested during the reporting period[59]. - Cumulative investment of raised funds reached RMB 32.64 million, with a remaining balance of RMB 92.64 million[59]. - 82.80% of the raised funds have been repurposed, totaling RMB 92.35 million[59]. - The project "Research and Development Base for Electronic Materials" has a total investment commitment of RMB 92.35 million, with 0% investment progress reported as of the end of the period[61]. - The "R&D Center Construction Project" has a total investment commitment of RMB 31 million, with 105.28% investment progress reported, totaling RMB 32.64 million[61]. - The company has redirected 92.35 million RMB of raised funds to the "Leka New Materials Electronic Materials R&D and Industrial Base Project" to enhance resource allocation and accelerate project development[70]. Shareholder Commitments and Governance - The company does not plan to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment rather than shareholder returns[9]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, ensuring stability in shareholding[101]. - The company will not reduce its holdings of shares by more than 50% within 24 months after the lock-up period, with the reduction price not lower than the issue price[102]. - The company has pledged to avoid any competition with its main business activities and will not engage in any competitive activities directly or indirectly[109]. - The company will ensure that any related transactions with its controlled companies will be conducted on a fair and reasonable basis, adhering to the company's articles of association[115]. - The company has committed to maintaining the stability of its stock price for 36 months from the date of listing[119]. Environmental Compliance - The company has maintained compliance with environmental standards, with wastewater COD emissions at 41 mg/L, below the standard of ≤50 mg/L[174]. - The wastewater treatment plant has been operational since January 2015, functioning normally[178]. - The new RTO organic waste gas treatment facility was completed and put into use in 2019, replacing existing facilities[178]. - The company installed a VOCs online monitoring system for continuous monitoring of emissions at the new RTO facility[178]. - The company has not reported any exceedances in its self-monitoring environmental plan during the reporting period[182]. Shareholder Structure - The largest shareholder, China Lucky Group Co., Ltd., holds 30.61% of the shares, totaling 37,590,154 shares[196]. - Sun Huiming, a natural person, owns 3.22% of the shares, amounting to 3,959,272 shares[196]. - Liu Yanfeng, another natural person, holds 2.46% of the shares, which is 3,024,600 shares[196]. - Qu Guojun possesses 1.29% of the shares, totaling 1,590,174 shares[196]. - China Agricultural Bank's subsidiary holds 1.22% of the shares, equating to 1,495,672 shares[196]. - The top ten unrestricted shareholders do not have any related party relationships or act in concert[199].

Financial Performance - Total operating revenue for Q1 2019 was ¥72,578,647.24, an increase of 3.70% compared to ¥69,991,328.31 in the same period last year[8]. - Net profit attributable to shareholders was ¥29,928,798.89, a decrease of 2.02% from ¥30,544,650.41 year-on-year[8]. - Net profit excluding non-recurring gains and losses was ¥28,975,704.89, up by 5.49% from ¥27,467,641.07 in the previous year[8]. - Basic earnings per share for Q1 2019 were ¥0.2437, a decrease of 2.01% from ¥0.2487 in the same period last year[8]. - The weighted average return on equity was 4.72%, down from 5.27% in the previous year[8]. - The company reported a net profit of 20 million RMB for Q1 2019, representing a 15% increase year-over-year[56]. - The company expects a revenue growth of 10% for the next quarter, projecting total revenue to reach 200 million RMB[56]. - The total profit before tax was ¥35,210,354.99, compared to ¥35,934,882.84, showing a decrease of approximately 2%[132]. - The total comprehensive income for the period was 29,928,777.49, compared to 30,544,650.41 in the previous period, showing a decrease of around 2%[143]. Cash Flow - Net cash flow from operating activities was ¥8,112,469.22, down 34.69% from ¥12,420,584.14 in the same period last year[8]. - The company's cash flow from operating activities decreased by 34.69%, amounting to 8.11 million yuan, mainly due to higher cash payments for raw materials[25]. - Cash inflow from operating activities totaled 58,902,655.35, slightly down from 59,764,117.25 in the previous period[148]. - Cash outflow from operating activities was 50,790,186.13, compared to 47,343,533.11 in the previous period, representing an increase of approximately 7%[148]. - The net cash flow from investment activities was -8,595,619.90, an improvement from -11,083,939.19 in the previous period[150]. - The cash and cash equivalents at the end of the period were 14,440,258.13, down from 22,857,461.84 in the previous period, indicating a decrease of about 37%[150]. Assets and Liabilities - Total assets at the end of the reporting period were ¥694,387,792.32, an increase of 4.73% from ¥663,031,717.81 at the end of the previous year[8]. - Total current assets increased to ¥512,274,236.35 as of March 31, 2019, up from ¥491,181,870.69 at the end of 2018, representing a growth of approximately 4.4%[109]. - Total liabilities increased to ¥45,639,964.78 from ¥44,212,698.20, representing a rise of about 3.2%[115]. - Owner's equity rose to ¥648,747,827.54, up from ¥618,819,019.61, indicating an increase of approximately 4.8%[118]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,706, with the largest shareholder, China Lucky Group, holding 30.61%[12]. - A total of 1,005,750 shares, accounting for 1.64% of the total share capital, will be voluntarily locked up for 36 months from the date of listing[78]. - After the lock-up period, shareholders are restricted to transferring no more than 25% of their total shares each year during their tenure[79]. - The company has committed to maintaining a cash dividend payout ratio of at least 20% of its distributable profits for the next three years[56]. Strategic Initiatives - The company plans to expand into new material products, including information anti-counterfeiting materials and electronic functional materials, to enhance its competitive edge[34]. - The company is actively working to mitigate the impact of the EMV migration policy on its magnetic stripe product demand by exploring new application areas[33]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next two years[56]. - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 40%[56]. - Research and development expenses increased by 12% to support innovation and product enhancement initiatives[56]. Compliance and Governance - All directors and senior management have confirmed that the prospectus does not contain false records or misleading statements, and they will bear compensation responsibilities if any losses occur due to such issues[87]. - The company will publicly explain any failure to fulfill commitments made in the prospectus and apologize to shareholders and the public[90]. - The company will accept supervision from social and regulatory bodies and will correct any issues in a timely manner[75]. - The company has committed to using raised funds in accordance with the outlined plans, ensuring transparency and accountability[93].

Financial Performance - The company reported a stable growth in revenue, primarily driven by the consistent sales of thermal magnetic tickets, which are entirely sold to printing enterprises under China Railway Corporation[7]. - The company's operating revenue for 2018 was ¥264,459,595.89, representing a year-on-year increase of 2.41% compared to ¥258,233,136.25 in 2017[28]. - The net profit attributable to shareholders for 2018 was ¥103,062,780.20, a decrease of 1.26% from ¥104,378,756.34 in 2017[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥97,134,722.84, down 2.37% from ¥99,492,155.09 in 2017[28]. - The company's total assets increased by 8.23% to ¥663,031,717.81 at the end of 2018, compared to ¥612,640,114.37 at the end of 2017[28]. - The net assets attributable to shareholders rose by 9.55% to ¥618,819,019.61 at the end of 2018, up from ¥564,876,239.41 at the end of 2017[28]. - The company achieved total operating revenue of 264.46 million yuan in 2018, representing a year-on-year increase of 2.41%[57]. - The total non-recurring gains and losses for 2018 amounted to ¥5,928,057.36, compared to ¥4,886,601.25 in 2017[34]. Market Risks and Challenges - The company faces risks due to the concentration of its market, as a significant reduction in orders from China Railway Corporation could severely impact its operating performance[7]. - The company acknowledges the risk of new products not achieving expected sales volumes due to increasing market competition and potential price declines[10]. - The implementation of the EMV migration policy is expected to decrease the demand for magnetic stripe cards, which may impact future revenue; the company plans to explore other applications for magnetic stripes to mitigate this risk[10]. - The company has signed long-term sales contracts for its main products, but potential price declines in the thermal magnetic ticket market could negatively affect its gross margin and profitability[9]. Product Development and Innovation - New product launches, such as electromagnetic wave protection films and pressure testing films, have begun mass production, but their sales performance has not yet significantly impacted overall business results[10]. - The company is actively working to expand its market share and develop new magnetic stripe products to counteract the effects of the EMV migration policy[10]. - The company has actively expanded its product development in electromagnetic wave protection films and pressure testing films, achieving stable formulations and beginning mass production[40]. - The company aims to enhance its R&D capabilities and accelerate the construction of the Sichuan Meishan electronic materials R&D and industrial base project[108]. - The company plans to increase investment in new product development and improve production processes to enhance product quality and reduce costs[109]. Profit Distribution and Shareholder Returns - The company proposed a profit distribution plan, distributing cash dividends of 3.00 RMB per 10 shares and issuing 3 bonus shares for every 10 shares held, based on a total of 122,800,000.00 RMB[10]. - The company distributed cash dividends of RMB 36,840,000, accounting for 35.75% of the net profit attributable to ordinary shareholders in 2018[126]. - The cash dividend per 10 shares was RMB 3.00 (including tax), with a stock bonus of 3 shares and a capital reserve increase of 2 shares per 10 shares[125]. - The total distributable profit for the year was RMB 396,573,980.27, with cash dividends representing 100% of the total profit distribution[122]. - The company’s profit distribution policy mandates a minimum cash dividend ratio of 20% for growth-stage companies with significant capital expenditure[122]. Research and Development - The company’s R&D expenses for the reporting period amounted to 28.61 million yuan, an increase of 34.28% year-on-year[51]. - R&D expenses increased by 34.28% year-on-year to ¥28,611,280.86, representing 10.82% of total revenue[73][76]. - The company has established a strong R&D team by hiring foreign experts and introducing experienced talent[44]. - The company’s R&D personnel accounted for 22.73% of total employees, with a total of 60 R&D staff in 2018[77]. Market Presence and Competition - The company is the largest producer of magnetic stripe products in China, holding over half of the domestic market share and being a key player in the international market[39]. - Domestic revenue reached ¥251,240,285.72, accounting for 95.00% of total revenue, with a year-on-year increase of 2.38%[60]. - International revenue was ¥13,219,310.17, representing 5.00% of total revenue, with a year-on-year increase of 3.03%[60]. - The company is expanding its market presence, targeting a 10% increase in market share within the next year through strategic partnerships and marketing initiatives[178]. Financial Management and Compliance - The company’s financial report emphasizes the importance of maintaining accurate and complete financial disclosures to ensure investor confidence[5]. - There were no significant changes in accounting policies that would affect the financial statements, ensuring consistency in reporting[188]. - The company has not faced any penalties or rectification issues during the reporting period[198]. - The company has not experienced any issues with the use and disclosure of raised funds[96]. Strategic Commitments - The company has committed to avoiding any competition with its subsidiaries and will not engage in any business that may compete with its main operations[133]. - The company has committed to strict adherence to all promises made in the prospectus, with measures in place for any potential breaches[171]. - The company promises to distribute at least 20% of its distributable profits as dividends, with cash dividends accounting for no less than 20% of the total distribution[163].

Financial Performance - Operating revenue for the reporting period was ¥65,484,652.50, reflecting a year-on-year growth of 6.47%[7] - Net profit attributable to shareholders was ¥24,245,382.58, up 6.08% from the same period last year[7] - The basic earnings per share for the reporting period was ¥0.1974, representing a 6.07% increase year-on-year[7] - The gross margin improved to 35%, up from 32% in the previous quarter[26] - Year-to-date net profit reached CNY 70,115,781.04, an increase of 2.4% compared to CNY 68,438,888.08 in the same period last year[60] - The total comprehensive income for Q3 2018 was CNY 24,245,382.58, reflecting a growth of 6.1% from CNY 22,856,000.84 in the same quarter last year[57] Assets and Liabilities - Total assets at the end of the reporting period reached ¥628,528,401.20, an increase of 2.59% compared to the end of the previous year[7] - Cash and cash equivalents increased by 181.28% to ¥80,872,370.73 compared to the end of the previous year[19] - The total liabilities decreased to CNY 42,656,380.75 from CNY 47,763,874.96, indicating a reduction of about 10.5%[53] - The company's non-current assets increased to CNY 163,979,470.78 from CNY 145,625,745.21, representing an increase of about 12.6%[52] Cash Flow - Cash flow from operating activities for the year-to-date was ¥73,778,154.91, down 11.72% compared to the previous year[7] - Net cash flow from investing activities improved by 128.80% to ¥26,778,651.01 compared to the same period last year[19] - The net increase in cash and cash equivalents for the period was ¥48,797,240.39, compared to a decrease of ¥52,999,166.35 in the previous period[64] Research and Development - R&D expenses grew by 37.42% to ¥20,541,562.20, driven by increased investment in new product development[19] - R&D expenses for Q3 2018 amounted to CNY 7,656,675.54, a significant increase of 59.1% from CNY 4,816,257.84 in Q3 2017[54] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,089[11] - The largest shareholder, China Lucky Group Company, held 30.61% of the shares[11] - Shareholder returns are expected to increase, with a proposed dividend of $0.50 per share for Q4 2018[25] - The company distributed a cash dividend of CNY 4.00 per 10 shares, totaling CNY 49,120,000.00, based on a total share capital of 122,800,000 shares[43] Strategic Plans and Outlook - The company provided a positive outlook for Q4 2018, projecting a revenue increase of 10% to 12%[27] - New product launches are expected to contribute an additional 5% to overall revenue in the next quarter[25] - Market expansion plans include entering two new international markets by the end of 2018[27] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $50 million allocated for potential deals[25] Compliance and Commitments - The company has committed to avoiding any competitive activities with its controlling companies, ensuring no direct or indirect competition in the market[28] - The company will not engage in any business that may harm the interests of its shareholders, maintaining a focus on fair and equitable transactions[30] - The company has pledged to adhere to its commitments regarding related party transactions, ensuring transparency and compliance with legal procedures[31] - The company will ensure that any related party transactions are conducted at fair market prices, adhering to principles of equality and voluntariness[30] Audit and Reporting - The third quarter report was not audited[65] - The company confirmed that the prospectus does not contain any false records or misleading statements, ensuring compliance with disclosure obligations[40]

Financial Performance - The total operating revenue for the first half of 2018 was CNY 119,942,615.48, representing a 0.66% increase compared to CNY 119,151,253.64 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 45,870,398.46, a 0.63% increase from CNY 45,582,887.24 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 42,193,943.79, showing a decrease of 3.52% from CNY 43,735,368.93 in the previous year[23]. - The net cash flow from operating activities was CNY 47,269,241.23, down 15.23% from CNY 55,764,749.90 in the same period last year[23]. - The basic earnings per share were CNY 0.3735, reflecting a 0.62% increase from CNY 0.3712 in the previous year[23]. - The company's revenue for the reporting period was CNY 119,942,615.48, representing a year-on-year increase of 0.66% compared to CNY 119,151,253.64 in the previous year[40]. - The sales revenue from thermal magnetic tickets was CNY 84,346,300, a decrease of 7.77% compared to the same period last year[37]. - The sales revenue from magnetic stripe products was CNY 19,614,900, an increase of 1.77% year-on-year[37]. - Research and development expenses for the period amounted to CNY 12,884,900, reflecting a year-on-year increase of 27.18%[37]. - The company reported a total revenue of 1.2 billion RMB for the first half of 2018, representing a year-on-year increase of 15%[85]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the first half of 2018, representing a year-on-year growth of 20%[75]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 607,026,618.07, a decrease of 0.92% from CNY 612,640,114.37 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 561,626,637.87, down 0.58% from CNY 564,876,239.41 at the end of the previous year[23]. - The company's current assets totaled RMB 451,363,706.16, down from RMB 467,014,369.16 at the start of the period, indicating a decrease of approximately 3.4%[142]. - Cash and cash equivalents decreased from RMB 28,751,649.36 to RMB 26,887,122.05, reflecting a decline of about 6.5%[141]. - Accounts receivable stood at RMB 69,131,627.89, down from RMB 71,627,200.32, representing a decrease of approximately 3.5%[141]. - Inventory increased slightly from RMB 37,816,737.06 to RMB 38,331,346.93, showing an increase of about 1.4%[141]. - The total liabilities of the company were not explicitly stated in the provided documents, but accounts payable increased significantly from RMB 1,043,616.20 to RMB 7,766,416.60, indicating a substantial rise[142]. Research and Development - The company plans to actively develop new products such as electromagnetic wave protection films and pressure testing films to drive future growth[9]. - The company has a total of 27 patents, including 16 invention patents and 11 utility model patents[37]. - The construction of the R&D center increased the in-progress construction projects by CNY 16,796,800, a rise of 92.41% compared to the end of the previous year[32]. - The company is actively expanding into new material products such as electromagnetic wave protection films and pressure testing films, enhancing its product structure[31]. - Research and development investment increased by 27.18% to ¥12,884,886.66 compared to the previous year[43]. - The company plans to invest 200 million CNY in research and development to innovate new technologies and improve existing products[78]. - The company has allocated 100 million RMB for R&D in new technologies aimed at improving product efficiency and sustainability[86]. Market and Growth Strategy - The company faces risks related to the concentration of its market in the domestic railway passenger transport sector, which could impact revenue stability[5]. - The implementation of EMV migration policies may lead to a decline in demand for magnetic stripe products, prompting the company to explore new application areas[8]. - The company anticipates that the growth rate of the thermal sensitive magnetic ticket market demand will stabilize, influenced by the promotion of new electronic ticketing systems[52]. - The company is expanding its market presence, targeting an increase in market share by 10% in the next fiscal year through strategic partnerships and marketing initiatives[79]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget allocation of 500 million CNY for this purpose[76]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q4 2018, which is expected to enhance production capacity by 30%[87]. Shareholder and Corporate Governance - The company did not distribute cash dividends or issue new shares during the reporting period[69]. - The company has fulfilled all commitments made during the asset restructuring and initial public offering processes[70]. - The company has committed to not engaging in any business that competes with its own operations, ensuring no conflicts of interest[73]. - The company will not transfer or delegate the management of its shares for 36 months following the stock listing[74]. - The company has pledged to publicly disclose any reasons for non-compliance with its commitments in shareholder meetings and through public announcements[73]. - The company will adhere to all legal and regulatory requirements regarding information disclosure and investor protection[72]. - The company has established a commitment to avoid any actions that could harm the interests of its shareholders[73]. Environmental Compliance - The company generated 1.862 tons of hazardous waste, which is managed according to regulations and disposed of by a third-party environmental company[109]. - The company has established wastewater treatment facilities that have been operational since January 2015, ensuring compliance with environmental standards[109]. - The company has implemented RTO and UV photolysis facilities for air pollution control, operational since January 2015 and November 2017 respectively[109]. - There were no significant environmental violations reported, with all emissions within the regulatory standards[107]. - The company has conducted regular third-party monitoring of wastewater, waste gas, and noise as per national regulations[112]. Financial Management - The company has cumulatively invested ¥2,447.99 million of the raised funds, with a remaining balance of ¥9732.52 million[49]. - The company has invested a total of CNY 35,836.20 million in entrusted financial management, with CNY 19,035.75 million remaining in bank financial products and CNY 12,000 million in broker financial products[56]. - The company reported a total of 12,000 million in entrusted financial management, with a return rate of 4.40% and 5.15% for different agreements[57]. - The company does not engage in derivative investments or entrusted loans during the reporting period[58][59]. - The company has not reported any overdue amounts in its entrusted financial management activities[56]. Compliance and Audit - The half-year financial report has not been audited, indicating a lack of external validation for the financial data presented[91]. - The financial report for the first half of 2018 was not audited, which may affect the reliability of the financial data presented[139]. - The company operates under the assumption of continuous operation, with no significant doubts regarding its ability to continue operations in the next 12 months[165]. - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the company's financial status accurately[167].

Market Risk and Revenue Stability - The company's main product, thermal magnetic tickets, is entirely sold to printing enterprises under China Railway Corporation, indicating a concentrated market risk[5] - The revenue from thermal magnetic tickets has shown stable growth, but any significant changes in demand from the railway passenger market could adversely affect the company's income stability[5] - The company has long-term sales contracts with printing enterprises, but increased bargaining power of downstream customers may lead to price declines, impacting gross margin and profitability[7] - The implementation of EMV migration policies is expected to decrease the demand for magnetic stripe products, which may affect future revenue; the company plans to explore other applications for magnetic stripes to mitigate this risk[8] - The successful launch of new products, such as electromagnetic wave protection films and pressure testing films, is crucial for future growth; failure to develop these products timely could negatively impact returns on prior R&D investments[9] Financial Performance - The company's operating revenue for 2017 was ¥258,233,136.25, a decrease of 1.23% compared to 2016[22] - Net profit attributable to shareholders was ¥104,378,756.34, down 3.33% from the previous year[22] - The net profit after deducting non-recurring gains and losses was ¥99,492,155.09, a decrease of 1.77% year-on-year[22] - The total assets increased by 12.81% to ¥612,640,114.37 at the end of 2017 compared to the end of 2016[22] - The cash flow from operating activities was ¥117,496,336.87, a decrease of 1.73% from the previous year[22] Product Development and R&D - The company is actively expanding its market share and developing new magnetic stripe products to counteract the effects of EMV migration[8] - The company is actively developing new materials such as electromagnetic wave protection films and pressure testing films to enhance product structure[31] - Research and development (R&D) investment reached ¥21,307,197.49, representing 8.25% of operating revenue, with a focus on product upgrades and new product development[52] - The number of R&D personnel was 59, accounting for 22.78% of the total workforce, with R&D investment showing a slight decrease in percentage compared to the previous year[53] Profit Distribution and Dividends - The profit distribution plan approved by the board proposes a cash dividend of 4.00 RMB per 10 shares (before tax) based on 122,800,000 shares[10] - The cash dividend represents 47.06% of the net profit attributable to shareholders, which was RMB 104,378,756.34 for 2017[82] - The company maintains a profit distribution policy that requires a minimum of 20% of distributable profits to be allocated as dividends when conditions are met[76] - In 2017, the company had a total distributable profit of RMB 352,937,475.38, with cash dividends accounting for 100% of the distribution[79] Market Expansion and Strategic Initiatives - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[83] - A strategic acquisition of a smaller competitor is in progress, which is expected to enhance the company's production capacity by 30%[84] - The company has committed to investing 200 million RMB in research and development over the next three years to drive technological advancements[85] - The company aims to enhance product quality and reduce costs through improved production processes and raw material quality control[71] Governance and Compliance - The financial report emphasizes the importance of maintaining accurate and complete financial disclosures to ensure investor confidence and compliance with legal responsibilities[3] - The company has engaged Zhongqin Wanxin Accounting Firm for auditing services, ensuring transparency and reliability in financial reporting[21] - The company has established a sound corporate governance structure in compliance with relevant laws and regulations, ensuring independent operation from its controlling shareholder[169] - The company has a structured decision-making process for profit distribution, involving independent directors and external supervisors[77] Environmental and Social Responsibility - The company has established a wastewater treatment station that has been operational since January 2015, ensuring compliance with environmental standards[129] - The company has implemented RTO and UV photolysis facilities for air pollution control, operational since January 2015 and November 2017, respectively[129] - The company has developed a talent strategy focused on employee health management and safety training[124] - The company actively engages with investors through various communication channels to enhance investor confidence[124] Shareholder Structure and Management - The company reported a total of 38,530.37 million CNY in entrusted financial management, with 20,530.37 million CNY in bank financial products and 18,000 million CNY in securities financial products[120] - The total number of common shareholders at the end of the reporting period was 16,577, an increase from 15,879 at the end of the previous month, indicating a growth of approximately 4.4%[141] - The company has a comprehensive remuneration policy that includes specific incentives for technical and sales personnel to boost motivation and performance[165] - The management team is stable and fulfills its duties in accordance with the company's management systems, with no violations reported[171] Internal Controls and Audit - The company maintained effective internal controls related to financial statements as of December 31, 2017, according to the internal control audit report[190] - There were no significant defects in financial or non-financial reports, indicating a strong compliance with internal control standards[190] - The audit opinion issued was a standard unqualified opinion, confirming the fair presentation of the financial statements[194] - The company has implemented various audit procedures to ensure the accuracy of revenue recognition, including testing internal controls and comparing current and prior year revenues[199]

Financial Performance - Total revenue for Q1 2018 was ¥69,991,328.31, a slight increase of 0.27% compared to ¥69,803,133.63 in the same period last year[7] - Net profit attributable to shareholders was ¥30,544,650.41, reflecting a 0.15% increase from ¥30,497,987.72 year-over-year[7] - Net profit excluding non-recurring items decreased by 6.52% to ¥27,467,641.07 from ¥29,384,595.83 in the previous year[7] - Operating cash flow for the period was ¥12,420,584.14, down 13.21% from ¥14,311,257.28 in the same quarter last year[7] - The company reported a significant increase in revenue for Q1 2018, with a year-over-year growth of 25%[32] - The net profit for the same period was 30.54 million yuan, reflecting a year-on-year growth of 0.15%[25] - Total operating revenue for Q1 2018 was CNY 69,991,328.31, a slight increase from CNY 69,803,133.63 in the same period last year, representing a growth of approximately 0.27%[61] - The total operating profit for the quarter was CNY 35,935,746.34, compared to CNY 35,642,470.69 in the same period last year, indicating an increase of about 0.82%[62] Assets and Liabilities - Total assets increased by 5.10% to ¥643,860,557.29 from ¥612,640,114.37 at the end of the previous year[7] - Net assets attributable to shareholders rose by 5.41% to ¥595,420,889.82 from ¥564,876,239.41 at the end of the last year[7] - Total liabilities increased slightly to CNY 48,439,667.47 from CNY 47,763,874.96, reflecting a growth of approximately 1.42%[59] - Cash and cash equivalents at the end of Q1 2018 were CNY 29,593,160.59, compared to CNY 28,751,649.36 at the beginning of the period, reflecting a growth of approximately 2.93%[57] Market and Competition - The company faces risks related to concentrated market demand for thermal magnetic tickets, primarily from the domestic railway passenger transport sector[9] - There is a risk of price decline for thermal magnetic tickets due to increased competition and customer bargaining power[10] - The company is actively developing new products such as electromagnetic wave protection films and pressure testing films to drive future growth[12] - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2018[36] Shareholder Commitments - A commitment to shareholder returns was reiterated, with plans for a dividend increase of 15% in the next fiscal year[36] - The company plans to maintain a cash dividend level of no less than 20% of the distributable profit for the year[41] - The company aims to increase cash dividends to not less than the level prior to the issuance in the first two accounting years after the issuance[41] - The company will compensate investors for losses incurred due to false statements in the prospectus, with compensation amounts determined through negotiation or regulatory authority[40] Investment and R&D - The company is investing heavily in R&D, with a budget increase of 40% for new technology development in 2018[33] - The thermal sensitive magnetic ticket production line expansion project has a total investment of CNY 8,053.01 million, with no progress reported as of March 31, 2018[50] - The R&D center construction project has a total investment of CNY 3,100 million, with CNY 613.37 million invested, achieving 63.84% of the planned investment[50] Operational Efficiency - Sales expenses increased by 50.40% to RMB 1,526,368 compared to RMB 1,014,872 in the same period last year, mainly due to higher transportation and exhibition costs[23] - Financial expenses decreased by 140.89% to -RMB 820,796 from -RMB 340,735, mainly due to increased interest income[23] - Investment income rose by 245.08% to RMB 3,620,874 compared to RMB 1,049,294 in the same period last year[23] Future Outlook - The company provided a positive outlook for the upcoming quarters, projecting a revenue growth of 20% for the full year 2018[34] - New product launches are expected to contribute an additional 10% to revenue in the next quarter, with two new products scheduled for release[35] - The company confirmed that the prospectus does not contain any false records or misleading statements[45]

Revenue and Profitability - The company's revenue growth is significantly driven by the stable sales of thermal magnetic tickets, which are entirely sold to printing enterprises under China Railway Corporation[5]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[81]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2017, representing a year-over-year increase of 10%[151]. - The company achieved a total operating revenue of CNY 258.23 million, a decline of 1.23% from CNY 261.44 million in the previous year[43]. - The net profit attributable to shareholders for 2017 was ¥104,378,756.34, down 3.33% from the previous year[23]. - The company reported a net profit margin of 12% for 2017, up from 10% in the previous year[151]. - The company plans to increase cash dividends, aiming for a level not lower than the previous year's standard after the completion of the current issuance[92]. Research and Development - The company is actively developing new products such as electromagnetic wave protection films and pressure testing films, which are seen as potential growth drivers[9]. - The company has made significant progress in R&D projects, including electromagnetic wave protection films and magnetic water treatment resins, entering trial production stages[38]. - The company has committed to investing 100 million RMB in R&D for new technologies over the next three years[83]. - The company has obtained 4 new patents during the reporting period, bringing the total number of patents to 27[35]. - The company has a total of 9 board members, including 3 independent directors[147]. Market and Sales Strategy - The company is focused on expanding its market share in other applications for magnetic stripe products to mitigate the impact of EMV migration[8]. - The company is actively pursuing market expansion, targeting an increase in international sales by 30% over the next year[81]. - The company plans to enhance its online sales channels, aiming for a 40% increase in e-commerce revenue by the end of the next fiscal year[81]. - The company is expanding its market presence, targeting a 25% increase in market share in the Asia-Pacific region over the next two years[98]. - The company aims to enhance product quality and reduce costs through improved production processes and quality control measures[69]. Financial Position and Cash Flow - The total assets at the end of 2017 increased by 12.81% to ¥612,640,114.37 compared to the end of 2016[23]. - The cash flow from operating activities for 2017 was ¥117,496,336.87, a decrease of 1.73% from 2016[23]. - The total current assets increased from ¥396,673,664.10 at the beginning of the year to ¥467,014,369.16 at the end of the year, representing an increase of approximately 17.7%[199]. - Cash and cash equivalents decreased from ¥84,262,582.84 to ¥28,751,649.36, a decline of about 65.9%[199]. - The company has ongoing projects reflected in construction in progress, which increased from ¥7,436,876.84 to ¥18,175,847.38, a growth of about 144.5%[200]. Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[3]. - The company has established a framework for managing related party transactions to prevent conflicts of interest[86]. - The company has committed to maintaining the integrity and accuracy of its financial disclosures[89]. - The independent directors have not raised any objections to company matters during the reporting period, indicating a consensus on governance[175]. - The company has adhered to all commitments made to minority shareholders, ensuring transparency and trust[98]. Dividend Policy - The company plans to distribute a cash dividend of 4.00 RMB per 10 shares (including tax) based on 122,800,000 shares[10]. - The cash dividend represents 47.06% of the net profit attributable to ordinary shareholders, which is RMB 104,378,756.34 for 2017[79]. - The total distributable profit for the year 2017 is RMB 352,937,475.38, with cash dividends accounting for 100% of the profit distribution[77]. - The company maintains a profit distribution policy that requires a minimum cash dividend ratio of 20% when there are significant capital expenditure arrangements[74]. Operational Efficiency - The company reduced inventory for magnetic stripe products by 71.43%, optimizing stock management[46]. - The company has strengthened internal management systems, enhancing risk control and operational efficiency across various departments[39]. - The company is implementing cost-cutting measures aimed at reducing operational expenses by 8% in the next fiscal year[151]. - The company has established an annual training plan focusing on management, technical skills, and legal training to enhance employee capabilities[159]. Shareholder Structure - The total number of shares before the change was 122,800,000, with 38.70% being restricted shares and 61.30% being unrestricted shares[128]. - The largest shareholder, China Lucky Group Co., Ltd., holds 30.61% of the shares, totaling 37,590,154 shares, with no change during the reporting period[134]. - The company has a total of 47,517,880 restricted shares, with 853,762 shares being unlocked, resulting in 46,664,124 remaining[131]. - The company has not issued any new securities or made significant changes to its asset and liability structure during the reporting period[132]. Risk Management - The company acknowledges the risk of declining prices for thermal magnetic tickets due to increased bargaining power of downstream customers[7]. - The company has not sold any significant assets or equity during the reporting period[65][66]. - The company confirmed that it will not use related transactions to transfer profits from its subsidiary, ensuring the protection of shareholder rights[88]. - The company will ensure that any related transactions are conducted on a fair and reasonable basis, adhering to market prices[87].

Financial Performance - Net profit attributable to shareholders decreased by 5.84% to ¥22,856,000.84 for the current period[9] - Operating revenue for the current period was ¥61,507,948.55, reflecting a growth of 7.07% year-on-year[9] - Basic earnings per share decreased by 5.87% to ¥0.1861[9] - The weighted average return on net assets was 4.42%, down by 0.93% compared to the previous year[9] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥21,742,646.07, a decrease of 3.00% year-on-year[9] - The company reported a total comprehensive income of CNY 22,856,000.84 for Q3 2017, compared to CNY 24,274,199.41 in the previous year[54] - Net profit for Q3 2017 was CNY 22,856,000.84, a decrease of 5.8% from CNY 24,274,199.41 in Q3 2016[53] - Basic and diluted earnings per share for the current period were both ¥0.5573, down from ¥0.6235 in the previous period, indicating a decline of approximately 10.6%[58] Assets and Liabilities - Total assets increased by 7.31% to ¥582,743,633.18 compared to the end of the previous year[9] - Cash and cash equivalents decreased by 55.78% to ¥37,259,504.10 from ¥84,262,582.84 due to increased investments in financial products[19] - Accounts receivable notes increased by 57.17% to ¥1,556,134.75 from ¥990,080.00 at the end of the previous year[19] - Other current assets rose by 39.67% to ¥284,223,912.81 from ¥203,497,708.79, attributed to an increase in financial products[19] - Construction in progress surged by 122.25% to ¥16,528,340.12 from ¥7,436,876.84, reflecting investments in the R&D center[19] - Total liabilities as of Q3 2017 amounted to CNY 53,807,262.03, an increase from CNY 45,730,873.22 in the previous year[51] - Total equity attributable to shareholders of the parent company was CNY 528,936,371.15, up from CNY 497,337,483.07 year-on-year[51] Cash Flow - The net cash flow from operating activities increased by 16.68% to ¥83,571,290.18 year-to-date[9] - Cash flow from operating activities generated a net amount of ¥83,571,290.18, an increase of 16.5% compared to ¥71,621,301.13 in the previous period[60] - Cash inflow from investment activities totaled ¥506,489,579.19, significantly higher than ¥214,150,328.55 in the previous period, marking an increase of approximately 136.5%[60] - The net cash flow from investment activities was -¥92,976,854.65, worsening from -¥30,612,177.39 in the previous period[60] - Cash flow from financing activities resulted in a net outflow of -¥42,836,087.61, compared to -¥41,692,678.28 in the previous period, indicating a slight increase in outflow[61] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,638[13] - The largest shareholder, China Lucky Group Company, held 30.61% of the shares[13] - The company distributed a cash dividend of CNY 3.00 per 10 shares, totaling CNY 36.84 million, based on a total share capital of 122,800,000 shares[40] - The company confirmed that all commitments made to minority shareholders were fulfilled on time[39] Future Outlook and Strategy - The company expects a revenue growth of 10% for the next quarter, projecting a total revenue of approximately 1.65 billion CNY[26] - New product development includes the launch of a high-performance material expected to generate an additional 200 million CNY in revenue next year[27] - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share within the next two years[24] - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 30%[25] - The company is investing 100 million CNY in R&D for new technologies aimed at improving product efficiency[26] Compliance and Commitments - The management emphasized the importance of adhering to legal compliance in all financial disclosures and transactions[26] - The company has committed to ensuring the authenticity, accuracy, and completeness of the information disclosed in the prospectus, bearing corresponding legal responsibilities[30] - The company will publicly disclose any specific reasons for failing to fulfill its commitments and will accept supervision from social and regulatory departments[29] - The company has committed to compensating investors for any losses incurred due to false statements or omissions in the prospectus, with compensation amounts determined by agreements with investors or regulatory authorities[31]