Financial Performance - The company's operating revenue for 2021 was ¥387,131,927.41, a decrease of 5.85% compared to ¥411,206,776.59 in 2020[17]. - The net profit attributable to shareholders in 2021 was ¥14,812,776.06, a significant increase of 107.82% from a loss of ¥189,379,916.24 in 2020[17]. - The net cash flow from operating activities was -¥71,283,894.15, representing a decline of 261.51% compared to ¥44,135,966.39 in 2020[17]. - Basic earnings per share improved to ¥0.120 in 2021 from -¥1.5 in 2020, marking an increase of 108.00%[17]. - The total assets at the end of 2021 were ¥411,394,823.22, reflecting a 2.12% increase from ¥402,873,555.38 at the end of 2020[17]. - The net assets attributable to shareholders increased by 24.55% to ¥83,058,015.06 at the end of 2021, up from ¥66,687,129.17 at the end of 2020[17]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to -¥48,370,245.13 in 2021 compared to -¥186,024,622.77 in 2020, an improvement of 74.00%[17]. - The company reported a total revenue of 1,000 million in 2021, marking a significant increase compared to the previous year[115]. - The company achieved a gross margin of 35% in 2021, reflecting improved operational efficiency[116]. Revenue and Sales - The total revenue for 2021 was ¥387,131,927.41, a decrease of 5.85% compared to ¥411,206,776.59 in 2020[70]. - The revenue from special polyethylene and cross-linked polyethylene cable materials was ¥187,869,143.39, accounting for 48.53% of total revenue, down 6.43% from the previous year[70]. - The revenue from special PVC cable materials increased by 8.81% to ¥119,937,701.22, representing 30.99% of total revenue[70]. - The sales volume of high-voltage wire and cable materials decreased by 25.37% to 39,250 tons, while production volume fell by 24.93% to 38,326 tons[74]. - The total sales amount from the top five customers was CNY 133,027,541.97, accounting for 34.36% of the annual sales total[77]. Research and Development - The company’s R&D center is recognized as a provincial high-tech research center, equipped with advanced testing equipment, indicating a strong commitment to innovation and quality[39]. - Research and development investment amounted to ¥22,048,518.97 in 2021, representing 5.70% of operating revenue, a decrease from 8.46% in 2020[81]. - The company has set a R&D plan for 2022, including the development of halogen-free low-smoke cable materials and other specialized products, with completion timelines extending into 2023[95]. - The company is actively seeking to expand its market presence and enhance its product offerings through continuous R&D efforts[64]. - The company emphasizes the importance of continuous innovation and product upgrades to remain competitive in the high polymer cable materials market[97]. Market and Industry Trends - The macroeconomic environment has shown a steady improvement, positively impacting the wire and cable industry, which is expected to enhance market demand[28]. - The company anticipates growth opportunities driven by national strategies such as "Belt and Road" and "dual carbon" initiatives, which are expected to benefit the wire and cable sector[29]. - The wire and cable market is projected to expand significantly due to increased investments in infrastructure, including rail transit and 5G networks[31]. - The demand for environmentally friendly cables is expected to rise due to stricter regulations against non-eco-friendly materials like PVC, creating new market opportunities[32]. - The company is positioned to benefit from the rapid development of new energy and environmental protection cables, aligning with national strategic goals[32]. Governance and Management - The company has established a complete and independent governance structure, ensuring compliance with relevant laws and regulations, and protecting the rights of all shareholders[102]. - The board of directors consists of 9 members, including 3 independent directors, ensuring effective governance and decision-making processes[102]. - The company has implemented a performance-based compensation mechanism for senior management to attract and retain talent[103]. - The company maintains a robust internal control system to manage risks and ensure compliance with financial regulations[103]. - The company has a structured remuneration system based on performance evaluations for its directors and management[126]. Legal and Compliance Issues - The company is facing bankruptcy liquidation proceedings initiated by Gao Xing Group due to its inability to repay due debts, indicating a significant financial strain[173]. - The company has initiated legal proceedings to recover the 1,495.4 million CNY in interest owed by Gao Changhong, with a repayment period expected to be specified[173]. - The company is involved in a lawsuit regarding unauthorized borrowing and guarantees made by the former actual controller Gao Changhong[180]. - The company has been under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure, with no final conclusion reached as of the audit report date[179]. - The company has recognized a provision for liabilities amounting to CNY 61.116 million due to lawsuits related to repayment or compensation obligations[179]. Employee and Workforce Management - The total number of employees at the end of the reporting period was 248, with 125 in production, 23 in sales, 41 in technology, 6 in finance, and 53 in administration[141]. - The educational background of employees included 2 with postgraduate degrees, 21 with bachelor's degrees, and 225 with college diplomas or below[141]. - The company implemented a stock incentive plan in June 2021, which was approved by the board and aimed at motivating core talents[146]. - The annual training plan focused on new employee onboarding and systematic business capability enhancement for various positions[143]. - The company emphasizes the importance of linking employee salaries to performance to enhance satisfaction and encourage long-term commitment[142]. Financial Position and Cash Flow - Operating cash inflow totaled ¥176,991,060.91 in 2021, down 48.66% from ¥344,711,520.25 in 2020[83]. - Investment cash inflow increased significantly by 395.53% to ¥122,282,813.63 in 2021[84]. - Financing cash inflow reached ¥470,875,000.00, a 100.37% increase from ¥235,000,000.00 in 2020[84]. - The company reported a significant increase in cash and cash equivalents net increase to ¥2,361,952.93, compared to a decrease of ¥95,614,629.68 in 2020[84]. - The company has a pending amount of CNY 69.622 million from equity transfer agreements, expected to be settled by December 31, 2023[189].

Financial Performance - The company's revenue for Q3 2021 was ¥111,418,079.33, a decrease of 2.33% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was ¥10,178,282.81, an increase of 159.95% year-on-year[3]. - Basic earnings per share for Q3 2021 was ¥0.0791, up 159.03% from the same period last year[3]. - Total revenue for the third quarter was ¥275,863,238.19, a decrease of 11.87% compared to ¥312,920,790.19 in the previous period[23]. - Net profit for the quarter was ¥17,568,635.53, a significant recovery from a net loss of ¥33,036,797.40 in the same period last year[24]. - The net profit attributable to the parent company was ¥17,618,606.39, a decrease from a loss of ¥33,165,574.02 in the previous year[25]. - The total comprehensive income attributable to the parent company was ¥17,618,606.39, compared to a loss of ¥33,165,574.02 in the same period last year[25]. Cash Flow - The net cash flow from operating activities for the year-to-date was -¥68,493,960.23, a decline of 280.77% compared to the previous year[9]. - Operating cash inflow from sales was ¥130,875,312.33, down from ¥248,747,922.81 year-on-year, indicating a decline of approximately 47.4%[28]. - The net cash flow from operating activities was -¥68,493,960.23, contrasting with a positive cash flow of ¥37,889,380.98 in the previous year[28]. - The net cash flow from investing activities was ¥72,133,699.46, an increase from ¥23,451,703.58 year-on-year[29]. - Cash flow from financing activities resulted in a net outflow of -¥2,607,210.33, compared to a larger outflow of -¥156,597,301.24 in the previous year[29]. - The total cash and cash equivalents at the end of the period were ¥1,622,469.98, up from ¥948,354.08 at the end of the previous year[29]. Assets and Liabilities - Total assets at the end of the reporting period were ¥410,573,783.62, reflecting a 1.91% increase from the end of the previous year[3]. - The company's total assets increased to ¥410,573,783.62 from ¥402,873,555.38, showing a growth of 1.73%[20]. - Current assets rose to ¥200,761,258.00, up from ¥180,124,325.28, marking an increase of 11.06%[20]. - The total liabilities decreased to ¥315,893,048.06 from ¥338,561,628.92, a reduction of 6.67%[21]. - The company's cash and cash equivalents increased significantly to ¥16,301,719.98 from ¥995,587.61, a growth of 1535.73%[20]. Shareholder Information - The company had a total of 7,901 ordinary shareholders at the end of the reporting period[11]. - The top 10 unrestricted shareholders hold a total of 66,000,000 shares, with the largest shareholder, Gaoxing Holdings Group Co., Ltd., holding 20,405,445 shares[12]. - The company has a total of 4.92% of shares held by the natural person shareholder, Lv Junkun, amounting to 6,333,728 shares[12]. - The company has implemented a stock incentive plan, with a total of 2,830,850 shares released from restrictions during the reporting period[15]. - The company’s total share capital increased due to the issuance of restricted stock, reflecting its commitment to employee incentives and retention[16]. Expenses - The company’s sales expenses decreased by 45% to ¥6,824,094.75, primarily due to reclassification of transportation costs[8]. - Research and development expenses were ¥16,602,064.33, down from ¥20,890,819.68, a decrease of 20.00%[24]. Credit and Impairment - The company reported a significant increase in credit impairment losses, which rose by 3415% to ¥52,359,836.45 due to the recovery of funds from a third party[8]. - The company reported a credit impairment loss of ¥52,359,836.45, compared to ¥1,489,593.72 in the previous period, indicating a significant increase in credit risk[24]. Corporate Actions - The company completed the grant registration of the 2021 restricted stock incentive plan on September 10, 2021, issuing 2,075,000 shares, increasing the total share capital from 126,673,000 shares to 128,748,000 shares[16]. - The company plans to establish a wholly-owned subsidiary, Hangzhou Rongzhu Trading Co., Ltd., with a registered capital of RMB 30 million, to support its long-term development strategy[17]. - The company has completed the business registration for its new subsidiary, indicating progress in its expansion strategy[17]. Audit and Compliance - The company has appointed Tianjian Accounting Firm (Special General Partnership) as its auditor for the 2021 fiscal year, with the decision approved at the sixth extraordinary general meeting on October 15, 2021[16]. - The company did not undergo an audit for the third quarter report[31]. - The report indicates that the company has not applied the new leasing standards for the current year[30].

Financial Performance - The company's operating revenue for the reporting period was ¥164,445,158.86, a decrease of 17.30% compared to the same period last year[28]. - The net profit attributable to shareholders was ¥7,440,323.58, representing a significant increase of 145.96% year-over-year[28]. - The net cash flow from operating activities was -¥44,758,383.17, a decline of 163.45% compared to the previous year[28]. - The basic earnings per share increased to ¥0.0587 from -¥0.1278, marking a 145.93% improvement[28]. - The weighted average return on equity rose to 10.57%, a substantial increase of 261.58% from -6.54% in the previous year[28]. - Total assets at the end of the reporting period were ¥414,429,909.83, an increase of 2.87% from the end of the previous year[28]. - The net assets attributable to shareholders increased to ¥74,127,452.75, reflecting an 11.16% growth compared to the previous year[28]. - The company's operating costs were ¥152,178,970.73, down 16.62% year-on-year, attributed to a decline in sales[52]. - The company reported a net cash flow from investing activities of ¥70,824,313.15, an increase of 199.33% year-on-year, due to the recovery of funds previously occupied by third parties[52]. - The company reported a net loss of CNY -275,723,215.35, slightly improved from CNY -283,163,538.93 in the previous period[146]. Legal and Compliance Issues - The company has initiated legal proceedings against Kuaixiu Technology for failing to meet profit commitments, seeking RMB 77 million in equity transfer payments[11]. - The company has faced risks from unauthorized loans and guarantees made by its former actual controller, leading to legal actions and financial impacts[13]. - Legal actions are ongoing to recover outstanding payments from former shareholders and related parties, indicating potential risks in receivables[69]. - The company has incurred significant impacts on its operations due to lawsuits and has provisioned for expected liabilities related to illegal loans and guarantees[70]. - The company is facing legal actions due to the unauthorized use of its seal for guarantees by the former actual controller[94]. - The company has been involved in multiple lawsuits related to the borrowing and guarantee contracts signed by the former actual controller[96]. Market and Operational Strategy - The company focuses on R&D and product upgrades in the high polymer materials sector, essential for maintaining competitive advantage in various industries[9]. - The cable industry is expected to benefit from significant market opportunities due to rapid urbanization and industrialization in China[39]. - The company employs a customized production model based on customer orders, ensuring alignment with market demands[36]. - The company has established long-term strategic partnerships with major cable clients, allowing for rapid adjustments to product formulations based on customer requirements[49]. - The company has established a pandemic response team to mitigate risks associated with COVID-19, focusing on market expansion and operational efficiency[67]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[172]. Financial Management and Risks - Fluctuations in raw material prices, particularly from petroleum derivatives, have adversely affected procurement plans, with ongoing measures to mitigate these risks[7]. - Accounts receivable risks exist despite a customer base primarily consisting of state-owned enterprises and listed companies, with potential bad debts due to client credit deterioration[10]. - Accounts receivable management is critical, with measures in place to assess credit risk and enhance collection efforts[68]. - The company has a strong technical advantage in polymer materials, which is crucial for meeting the diverse performance requirements across various application fields[45]. - Investment income decreased by 3,355,299.14, accounting for -45.40% of total profit, primarily due to losses from the subsidiary Hangzhou High-tech Cultural Industry and interest expenses on notes[55]. - Asset impairment totaled 1,000,000.00, representing -13.53% of total profit, mainly due to inventory write-downs[55]. Shareholder and Governance Matters - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[14]. - A stock incentive plan was approved on June 3, 2021, aimed at motivating core talent and ensuring sustainable development[79]. - The company held several shareholder meetings with participation rates of 15.71% and 14.08% for the temporary and annual meetings respectively[74]. - The independent directors believe the stock incentive plan will not harm the interests of shareholders, particularly minority shareholders[79]. - The company has implemented a lock-up period for executives, allowing them to transfer no more than 25% of their shares annually while in office[125]. - The total number of shares is 126,673,000, with 94.42% being unrestricted shares[122]. Environmental and Social Responsibility - The company has not faced any environmental penalties during the reporting period and is not classified as a key pollutant discharge unit by environmental authorities[84]. - The company has implemented various environmental management systems, including ISO14001 and ISO9001 certifications, to ensure compliance with environmental regulations[87]. - The company is committed to employee welfare, providing health check-ups and holiday benefits, while ensuring compliance with labor laws[86]. - The company actively promotes green production and has implemented advanced equipment to improve production processes for energy conservation[84]. Future Outlook - Future guidance suggests a cautious outlook, with expectations of gradual recovery in the market conditions[172]. - The company is committed to improving its financial health through strategic investments and cost management initiatives[172]. - The overall revenue for the first half of the year showed a significant decline, necessitating a review of operational strategies[169]. - The company has identified opportunities for mergers and acquisitions to strengthen its market position[172].

Financial Performance - The company's operating revenue for the reporting period was ¥164,445,158.86, a decrease of 17.30% compared to the same period last year[27]. - Net profit attributable to shareholders was ¥4,866,997.85, representing a significant increase of 130.06% year-over-year[27]. - The net profit after deducting non-recurring gains and losses was ¥12,894,068.76, an increase of 180.12% compared to the previous year[27]. - The net cash flow from operating activities was -¥34,625,551.67, a decline of 149.08% compared to the same period last year[27]. - The total assets at the end of the reporting period were ¥414,429,909.83, an increase of 2.87% from the end of the previous year[27]. - The net assets attributable to shareholders increased by 11.16% to ¥74,127,452.75 compared to the end of the previous year[27]. - The company's operating revenue decreased, leading to a 16.62% decline in operating costs, amounting to ¥152,178,970.73 compared to ¥182,511,528.21 in the previous period[49]. - Sales expenses were reduced by 40.04%, totaling ¥4,896,608.55, primarily due to decreased business entertainment costs[49]. - The company reported an investment loss of -¥5,878,654.31, which accounted for -120.79% of total profit, attributed to losses from the disposal of a subsidiary[51]. Market and Competitive Position - The company operates in a competitive market for polymer materials used in cables, with a focus on continuous R&D and product upgrades to maintain its market position[8]. - The company has established a strong position in the domestic market for cable materials, with advanced production processes and a diverse product range[8]. - The cable industry in China is expected to benefit from significant market opportunities due to rapid urbanization and major infrastructure projects, indicating a long-term growth cycle[39]. - The correlation coefficient between the cable industry’s total output value and GDP is 0.98, highlighting the industry's close relationship with macroeconomic trends[39]. - The company has a diverse product line in the cable polymer materials sector, with over 200 varieties across seven major product series[34]. - The company has established long-term strategic partnerships with major cable clients, allowing for rapid adjustments to formulations based on customer requirements[46]. Risks and Legal Challenges - The company reported significant risks due to the ongoing COVID-19 pandemic, which may impact supply chains, production, operations, market demand, and logistics[5]. - Fluctuations in raw material prices, particularly those derived from petroleum and plastic futures, have adversely affected the company's procurement plans, despite measures taken to mitigate these risks[6]. - The company has a concentration of accounts receivable from high-quality clients, but there remains a risk of bad debts due to potential credit deterioration among customers[9]. - As of the report date, the company has not received outstanding payments totaling 76 million yuan for equity transfer and 20.9 million yuan for dividends from a subsidiary, indicating a risk in receivables recovery[11]. - The company has faced legal challenges related to unauthorized loans and guarantees made by a former controlling shareholder, which have impacted its operations[12]. - The company is actively pursuing legal action to recover outstanding payments from former shareholders and related parties, reflecting its commitment to financial prudence[10]. - The company has recognized expected liabilities related to illegal loans and guarantees made by the original actual controller[67]. - The company has taken legal action to recover funds related to illegal guarantees and loans, aiming to mitigate losses[67]. Research and Development - The company emphasizes the importance of maintaining technological innovation and production management to avoid adverse market conditions[8]. - The company has been recognized as a "Provincial High-tech R&D Center" and has advanced testing equipment, enhancing its research and development capabilities[43]. - The company’s products exhibit high extrusion performance, improving customer production efficiency, with flame-retardant materials achieving an oxygen index exceeding 38%[44]. - The company’s ongoing investment in R&D and technology accumulation has established a complete formulation system, enhancing its competitive edge in the industry[42]. - The company plans to increase R&D investment and develop new products to create additional profit growth points[65]. Corporate Governance and Shareholder Relations - The company has established a sound corporate governance structure to protect the rights of shareholders and creditors, ensuring transparency and compliance with information disclosure requirements[84]. - The company emphasizes employee rights protection, providing health check-ups and holiday benefits, and fostering a supportive work environment for talent development[85]. - The company approved the 2021 Restricted Stock Incentive Plan, which aims to create a long-term incentive mechanism for core talents, ensuring no harm to the interests of shareholders, especially minority shareholders[76]. - The number of incentive objects for the 2021 plan was adjusted from 15 to 9, and the number of restricted stocks granted was reduced from 3.3 million shares to 2.075 million shares due to voluntary waivers by 6 incentive objects and partial waivers by 3[79]. - The company has not engaged in any significant related party transactions during the reporting period[102]. Cash Flow and Financial Management - The company's cash and cash equivalents increased significantly to ¥45,510,476.10, representing 10.98% of total assets, up from 0.25% in the previous period[54]. - The company has a pending claim of 14.954 million yuan related to a contract dispute, with no current impact on profits but future effects dependent on execution outcomes[99]. - The company is actively pursuing outstanding payments from various parties, indicating a focus on improving cash flow management[99]. - The cash flow from operating activities showed a net outflow of CNY -34,625,551.67, a decline from a net inflow of CNY 70,546,430.94 in the same period of 2020[161]. - The total cash inflow from financing activities increased to 385,500,000.00 CNY in the first half of 2021, compared to 200,000,000.00 CNY in the same period of 2020, marking a growth of 92.75%[166]. Environmental and Regulatory Compliance - The company has not been classified as a key pollutant discharge unit and has not faced any environmental penalties during the reporting period, adhering to national regulations and promoting green production[83]. - The company has implemented various environmental management systems and certifications, including ISO14001 and ISO9001, to ensure compliance with environmental protection laws[86]. Future Outlook and Strategic Initiatives - The company plans to expand its market presence through new product development and technological advancements in the upcoming quarters[175]. - The company aims to enhance its operational efficiency and reduce costs by implementing new strategies in production and supply chain management[175]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[175].

Financial Performance - The company reported a significant increase in revenue, with total sales reaching RMB 1.2 billion, representing a year-on-year growth of 15%[20]. - The gross profit margin improved to 30%, up from 28% in the previous year, indicating better cost management and pricing strategies[20]. - The company anticipates a revenue growth of 12% for the next fiscal year, driven by new product launches and market expansion[20]. - The company's operating revenue for 2020 was ¥411,206,776.59, a decrease of 41.02% compared to ¥697,250,232.16 in 2019[25]. - The net profit attributable to shareholders was -¥189,379,916.24, an improvement of 35.26% from -¥292,511,942.66 in the previous year[25]. - The net cash flow from operating activities was ¥44,135,966.39, a significant increase of 198.16% compared to -¥44,962,064.84 in 2019[25]. - The total assets at the end of 2020 were ¥402,873,555.38, down 50.48% from ¥813,635,176.00 at the end of 2019[25]. - The net assets attributable to shareholders decreased by 73.96% to ¥66,687,129.17 from ¥256,067,045.41 in 2019[25]. - The company reported a basic earnings per share of -¥1.50, improving by 35.06% from -¥2.31 in 2019[25]. - The company reported non-recurring losses totaling -¥3,355,293.47 for 2020, compared to -¥106,054,780.25 in 2019[30]. Research and Development - The company invested RMB 150 million in R&D, focusing on new polymer materials, which is a 20% increase compared to last year[20]. - The company’s R&D center is recognized as a provincial high-tech research center, equipped with advanced testing equipment to support product development[49]. - The company has initiated 11 R&D projects in 2020, focusing on various advanced polymer materials for cable applications[78]. - Research and development expenses for 2020 were 34,794,427.71 CNY, accounting for 8.46% of total revenue, which is an increase from 5.65% in 2019[78]. - The company has a total of 33 effective patents in polymer materials, including 7 invention patents[61]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[20]. - The company is focusing on market expansion in East China and Southwest regions to optimize resource allocation and reduce management costs[59]. - The company is focusing on high polymer materials for cable production, primarily serving sectors such as rail transportation, communication, electrical equipment, construction, and renewable energy, benefiting from national strategies like "Belt and Road" and "Supply-Side Structural Reform"[95]. - The company plans to enhance its R&D capabilities and production efficiency, focusing on mid-range and some low-end high polymer cable materials, with several R&D projects scheduled from January 2021 to December 2022[98]. Legal and Compliance Issues - The company is addressing legal risks related to unauthorized loans taken by a former executive, which may impact financial stability[13]. - The company has recognized a provision for bad debts amounting to RMB 76 million due to potential collection issues with receivables[12]. - The company has faced litigation due to the financial issues related to its former actual controller, impacting its financial stability[115]. - The company has initiated legal proceedings against Gao Changhong due to the non-repayment of borrowed funds, which has resulted in the need to fulfill compensation or repayment obligations[115]. - The company has a contingent liability of 93.78 million yuan, which has not been rectified as of the audit report date, impacting the assessment of financial status and cash flow[116]. Operational Efficiency - The company employs a "sales-driven production" model, aligning production with customer orders and contracts[42]. - The company has established a comprehensive supplier management and quality control system, conducting annual evaluations to ensure the quality and supply capability of raw materials[43]. - The company has upgraded its production lines with high automation, improving efficiency and ensuring product quality through rigorous inspection processes[55]. - The company has strengthened its internal control management to prevent past issues related to debt crises and regulatory violations[59]. - The company has not engaged in any abnormal production stoppages during the reporting period[62]. Financial Management and Shareholder Relations - The company will not distribute cash dividends or issue bonus shares for the current fiscal year, focusing on reinvestment for growth[14]. - The total cash dividend for 2020 was 0 yuan, representing 0.00% of the net profit attributable to ordinary shareholders[109]. - The company has not proposed any cash dividend distribution plan for 2020 due to the negative net profit, aligning with relevant regulations and its articles of association[106]. - The company has a long-term commitment to avoid any direct or indirect occupation of company funds[112]. - The company has established a governance structure to protect the rights of shareholders and creditors, including a board of directors and a supervisory board[147]. Employee and Management Structure - The total number of employees in the parent company is 269, with 158 in production, 23 in sales, 47 in technical roles, 6 in finance, and 35 in administration[196]. - The total pre-tax remuneration for the board of directors and senior management during the reporting period amounted to 649.41 million CNY[195]. - The company emphasizes a compensation management system that links salary to performance, aiming to enhance employee satisfaction and retention[198]. - The company has established an annual training plan focusing on new employee orientation and skills enhancement for existing staff to boost overall competitiveness[199]. - The company has seen a turnover in its supervisory board, with new members elected to enhance oversight functions[184]. Risk Management - The company faced risks related to raw material price fluctuations, particularly from petroleum derivatives, which could adversely affect operational costs[101]. - The company has a significant risk of accounts receivable collection due to business expansion, despite a focus on high-quality clients[101]. - The company has implemented measures to mitigate risks from market competition in the high polymer cable materials sector[101]. - The company has not engaged in any investor communication activities during the reporting period[103]. Corporate Social Responsibility - The company emphasizes social responsibility, contributing to pandemic relief efforts and engaging in community service activities[150]. - The company has not experienced any major production safety incidents or environmental accidents during the reporting period[150]. - A total of 12 safety training sessions and 6 examinations were conducted to enhance employee safety awareness[150].

Financial Performance - The company's operating revenue for 2020 was ¥411,206,776.59, a decrease of 41.02% compared to ¥697,250,232.16 in 2019[24]. - The net profit attributable to shareholders was -¥189,379,916.24, an improvement of 35.26% from -¥292,511,942.66 in the previous year[24]. - The net cash flow from operating activities was ¥44,135,966.39, a significant increase of 198.16% compared to -¥44,962,064.84 in 2019[24]. - The total assets at the end of 2020 were ¥402,873,555.38, down 50.48% from ¥813,635,176.00 at the end of 2019[24]. - The net assets attributable to shareholders decreased by 73.96% to ¥66,687,129.17 from ¥256,067,045.41 in 2019[24]. - The company reported a basic earnings per share of -¥1.50, improving by 35.06% from -¥2.31 in 2019[24]. - The company reported non-operating losses of -¥3,355,293.47 in 2020, compared to -¥106,054,780.25 in 2019, indicating a reduction in non-recurring losses[30]. - The company’s gross profit margin for industrial products was 5.37%, reflecting a decrease of 2.64% year-on-year[65]. - The sales volume of cable materials was 52,594 tons in 2020, a decline of 34.81% from 80,684 tons in 2019[66]. - The production volume of cable materials was 52,812 tons, down 33.88% from 79,874 tons in the previous year[66]. Research and Development - The company focuses on the R&D, production, and sales of polymer materials for cables, with applications in various sectors including power and transportation, emphasizing the need for continuous innovation to maintain competitive advantage[6]. - The company is investing heavily in R&D to meet new performance requirements for its specialized polymer cable materials, facing market expansion risks for new products[9]. - The company has a total of 33 effective patents in polymer materials, with ongoing collaborations with universities and research institutions for technological innovation[60]. - Research and development expenses for 2020 were CNY 34,794,427.71, accounting for 8.46% of total revenue, an increase from 5.65% in 2019[75]. - The company is focusing on product technology research and development, with key personnel like Wu Wei leading these efforts[183]. Market and Industry Trends - The cable industry is a crucial sector in China's economy, accounting for one-quarter of the electrical industry’s output value, with over 2,000 types of cables available[44]. - The cable industry is closely linked to GDP growth, with a correlation coefficient of 0.98, indicating a strong cyclical relationship with the national economy[46]. - The company is positioned to benefit from the ongoing urbanization and infrastructure development initiatives, which are expected to drive demand for various types of cables[94]. - The company anticipates significant growth opportunities in the cable industry due to the increasing demand for environmentally friendly cables as regulations tighten against non-eco-friendly materials[93]. - The demand for cables in the rail and urban rail transportation sectors is rapidly increasing, with a total operational length of urban rail reaching 3,618 kilometers by the end of 2015, and an investment completion amount of 368.3 billion yuan, a year-on-year increase of 27%[92]. Corporate Governance and Legal Issues - The company has faced legal challenges due to unauthorized loans and guarantees made by a former controlling shareholder, which may impact financial stability[12]. - The company has initiated legal proceedings against Gao Changhong for the recovery of the occupied funds, which were not repaid as scheduled[111]. - The company has a total estimated liability of RMB 93.7827 million due to litigation and guarantees related to the former actual controller, Gao Changhong[112]. - The company has been involved in significant litigation, with a total claim amount of RMB 3,979.12 million, which has been settled through mediation[117]. - The company has established a governance structure consisting of a shareholders' meeting, board of directors, and supervisory board to protect the rights of shareholders and creditors[143]. Financial Risks and Management - The company reported a total of 76 million RMB in unpaid profit distributions from a previous equity transfer, indicating potential liquidity risks[10]. - The company anticipates a substantial increase in fixed asset depreciation following the completion of fundraising projects, which may negatively affect profitability if the projects do not meet expected returns[7]. - The company faces risks related to raw material price fluctuations, particularly from petroleum derivatives, which significantly impact procurement costs[98]. - The company has a risk of increasing accounts receivable due to business expansion, despite clients being primarily large state-owned and listed companies[99]. - The company has implemented measures to mitigate risks from market competition and ensure continuous improvement in technology and product quality[98]. Strategic Initiatives - The company plans to divest its entertainment segment to focus on the development of its core business in polymer materials for cables, following a significant impairment of its investment in Xiamen Kuaiyou Network Technology Co., Ltd.[49]. - The company aims to sell 35% of its stake in Xiamen Kuaiyou Network Technology Co., Ltd. to concentrate resources on the East China and Southwest markets[95]. - The company has implemented a "Five Five Strategy" to optimize its business and enhance core competitiveness in response to market challenges[56]. - The company is committed to improving cost efficiency and management through the application of new technologies and materials, aiming to reduce production costs and waste[96]. - The company is actively adapting to the changing economic environment and government policies to seize new development opportunities[91]. Shareholder Relations and Capital Management - The company has not distributed cash dividends or bonus shares, opting to retain earnings for reinvestment[13]. - The company reported a net profit attributable to shareholders of -189.38 million yuan for the year 2020, with no cash dividends distributed[102]. - The company has not proposed any cash dividend distribution plan for 2020 due to the negative net profit, which aligns with relevant regulations and the company's articles of association[103]. - The company actively engaged with investors, maintaining transparency and enhancing investor relations through regular communication[58]. - The company has a fundraising management policy that regulates the use and supervision of raised funds, although the former actual controller misappropriated company funds, negatively impacting operations[197]. Human Resources and Employee Management - The company employed a total of 269 staff members, with 158 in production, 23 in sales, 47 in technical roles, 6 in finance, and 35 in administration[189]. - The company emphasizes a performance-based salary system, linking basic salaries and performance bonuses to enhance employee satisfaction and retention[191]. - The company has established a comprehensive training plan focusing on new employee orientation and skills enhancement for existing staff[192]. - The company has a total of 4 employees with a postgraduate degree or higher, 24 with a bachelor's degree, and 241 with an associate degree or below[190]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 6,494,193.75[186].

2021 年 04 月 1 杭州高新橡塑材料股份有限公司 2021 年第一季度报告全文 杭州高新橡塑材料股份有限公司 2021 年第一季度报告全文 杭州高新橡塑材料股份有限公司 2021 年第一季度报告 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。 公司负责人蒋鹏、主管会计工作负责人蒋鹏及会计机构负责人(会计主管人 员)屈舟萍声明：保证季度报告中财务报表的真实、准确、完整。 2 杭州高新橡塑材料股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增 | | --- | --- | --- | --- | | | | | 减 | | 营业收入（元） | 69,526,880.41 | 75,878,799.42 | -8.37% | | 归属于上市公司股东的净利润（元） | -7,755,1 ...

Financial Performance - Operating revenue for the period was ¥114,072,490.51, down 39.45% year-on-year[6] - Net profit attributable to shareholders was -¥16,977,287.80, an increase of 29.59% in losses compared to the same period last year[6] - Basic earnings per share were -¥0.1340, a decrease of 29.57% compared to the previous year[6] - The company reported a net profit excluding non-recurring gains and losses of -¥16,861,057.40, a decrease of 35.03% year-on-year[6] - The company reported a net loss of CNY -126,949,196.71, compared to a loss of CNY -93,783,622.69 in the previous period[35] - The net profit for Q3 2020 was a loss of CNY 16,977,287.80, compared to a loss of CNY 23,338,113.94 in the previous year, showing an improvement of approximately 27.5%[43] - The total comprehensive income for Q3 2020 was a loss of CNY 16,977,287.80, compared to a loss of CNY 23,338,113.94 in the same period last year, indicating a reduction in losses of approximately 27.5%[43] - The company reported a total of 24,550 million yuan in guarantees, accounting for 85.92% of the latest audited net assets[27] Assets and Liabilities - Total assets decreased by 29.01% to ¥577,625,389.72 compared to the previous year-end[6] - Total liabilities decreased from CNY 527,869,308.56 to CNY 354,723,918.33, a reduction of approximately 33%[34] - Current liabilities decreased from CNY 406,530,696.49 to CNY 233,385,306.26, reflecting a decline of around 43%[34] - The total owner's equity decreased from CNY 285,765,867.44 to CNY 222,901,471.39, a decline of approximately 22%[35] - The company’s cash and cash equivalents decreased from CNY 21,781,723.64 to CNY 10,678,196.01, a drop of about 51%[36] - The company reported a total asset value of CNY 813,635,176.00 as of the reporting date[67] - The total liabilities amounted to CNY 348,571,879.31 in short-term borrowings[67] Shareholder Information - The total number of common shareholders at the end of the reporting period is 8,247[12] - The largest shareholder, Gao Xing Holding Group, holds 29.85% of shares, totaling 37,814,980 shares, which are frozen and pledged[12] - China Shuangfan Investment Holding Group (Hong Kong) Limited holds 15.00% of shares, totaling 19,000,000 shares, with 18,999,997 shares pledged[12] - The top ten shareholders include four entities with a combined holding of 61.11%[12] - The company has not conducted any repurchase transactions during the reporting period[13] Cash Flow and Financing - Cash flow from operating activities was ¥37,889,380.98, down 38.73% year-to-date[6] - The company's cash and cash equivalents decreased by 90.04% to ¥11,219,192.97 due to repayment of bank loans[19] - The net cash flow from operating activities was CNY 37,889,380.98, a decrease of 38.7% compared to CNY 61,844,133.56 in the previous period[59] - The net cash flow from investing activities was CNY 23,451,703.58, a significant improvement from a negative CNY 232,967,292.98 in the previous period[60] - The net cash flow from financing activities was negative CNY 156,597,301.24, slightly worse than negative CNY 140,102,457.84 in the previous period[60] Operational Challenges - Operating revenue fell by 41.90% to ¥312,920,790.2, attributed to the impact of the COVID-19 pandemic and the sale of a subsidiary[19] - The company expects annual operating revenue to decline significantly, forecasting between ¥400 million to ¥500 million for the year[24] - The company has initiated legal proceedings against a former controlling shareholder for outstanding funds amounting to ¥14,954,000, which may impact cash flow[21] - The company has a pending lawsuit against a major shareholder for the recovery of 14.95 million yuan in misappropriated funds[29] - The major shareholder, Gao Changhong, has not repaid the misappropriated funds, which are currently under legal proceedings[29] - The company is actively pursuing legal action to recover misappropriated funds, indicating ongoing financial challenges[29] Research and Development - Research and development expenses in Q3 2020 were CNY 9,335,986.09, significantly lower than CNY 17,712,049.00 in the same quarter last year, reflecting a decrease of about 47.3%[41] - Research and development expenses amounted to 20,890,819.68 CNY, a decrease from 28,892,449.11 CNY year-over-year, representing a reduction of about 27.7%[53] Other Financial Metrics - The company recorded a significant increase in other income by 10,879.72% to ¥640,356.08 from the sale of scrap machinery[20] - Investment income decreased by 57.28% to ¥1,868,887.72 due to the implementation of new financial instrument standards[19] - The company reported an investment loss of CNY -1,716,208.81 in Q3 2020, contrasting with a gain of CNY 4,375,165.77 in the previous year[46] - The company incurred credit impairment losses of 1,489,593.72 CNY, compared to a gain of 12,860,578.23 CNY in the previous year, indicating a significant deterioration in credit quality[50]

Financial Performance - The company's operating revenue for the reporting period was ¥198,848,299.68, a decrease of 43.22% compared to the same period last year [26]. - The net profit attributable to shareholders was -¥16,188,286.22, representing a decline of 252.90% year-over-year [26]. - The net cash flow from operating activities increased by 19.49% to ¥70,546,430.94 compared to the previous year [26]. - Total assets decreased by 30.13% to ¥568,526,002.87 from the end of the previous year [26]. - The company's long-term equity investments increased by 6.12% due to the recognition of investment income from Xiamen Kuaiyou Network Technology Co., Ltd. [37]. - The company reported a significant increase in financial expenses by 102.47% to CNY 4.81 million, mainly due to interest income from fund borrowing in the previous year [45]. - The company reported a net profit margin of 3.98% for the reporting period, indicating a stable financial condition despite market challenges [60]. - The company reported a net loss of CNY 109,971,908.91 as of June 30, 2020, compared to a loss of CNY 93,783,622.69 at the end of 2019 [127]. - The company's total comprehensive income for the first half of 2020 was -15,623,897.55 CNY, compared to 9,675,735.30 CNY in the first half of 2019 [139]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 19.49% to CNY 70.55 million, primarily due to the recovery of overdue accounts receivable [45]. - The company reported a cash and cash equivalents balance of 6,292,958.88 CNY at the end of the first half of 2020, down from 249,158,058.64 CNY at the end of the first half of 2019 [144]. - The total cash inflow from financing activities was 368,000,000.00 CNY, while the cash outflow was 414,500,670.90 CNY, resulting in a net cash flow of -46,500,670.90 CNY [147]. - The company experienced a significant decrease in cash and cash equivalents, with a net decrease of 8,175,289.06 CNY during the reporting period [147]. Investment and R&D - The company has invested heavily in R&D to meet new performance requirements for its high-performance polymer cable materials, indicating a commitment to innovation despite market expansion risks [10]. - Research and development expenses amounted to CNY 11.55 million, reflecting a slight increase of 3.35% year-on-year [45]. - The company emphasizes the importance of continuous R&D investment to maintain competitiveness in the polymer materials market for cable applications [63]. Risks and Challenges - The company reported a risk of cash flow impact due to the violation of borrowing and guarantee regulations by the former actual controller, which has led to lawsuits and potential financial liabilities [12]. - The company is facing risks from increased fixed asset depreciation following the completion of fundraising projects, which may lead to a decline in profits if post-production benefits do not meet expectations [8]. - The company faces risks from fluctuations in raw material prices, particularly those derived from petroleum, which could adversely affect procurement plans [62]. - The company has ongoing litigation involving amounts of 2,300,000, 288,000, and 3,691,120 CNY, all of which are currently in trial and have not been executed [73]. Shareholder and Equity Information - The total number of shareholders at the end of the reporting period was 7,327 [105]. - Highxing Holdings Group Co., Ltd. holds 30.60% of the shares, with 38,759,980 shares pledged and frozen [105]. - The company has not reported any share repurchase or issuance activities during the period [100]. - The new controlling shareholder is Lü Junkun, a domestic individual, effective from April 7, 2020 [108]. Corporate Governance and Compliance - The company has not conducted any related party transactions during the reporting period [80]. - The company has fulfilled all commitments made by its actual controller and shareholders during the reporting period [76]. - The company has not experienced any bankruptcy restructuring matters during the reporting period [72]. - The financial statements are prepared based on the principle of continuous operation and comply with the requirements of enterprise accounting standards [168]. Market Position and Strategy - The company has a strong market position in the production of cable materials, with a focus on technological innovation and product upgrades to maintain competitiveness [7]. - The company plans to actively develop new customers and enhance market expansion efforts to mitigate the impact of the COVID-19 pandemic on business operations [61]. - The company emphasizes establishing long-term stable relationships with clients to enhance cooperation and mutual growth in the cable materials market [34]. - The company plans to expand its sales model to include agency sales to achieve sales targets amid market competition and changes due to the pandemic [34].

Financial Performance - Total revenue for Q1 2020 was ¥75,878,799.42, a decrease of 56.63% compared to ¥174,967,593.74 in the same period last year[7] - Net profit attributable to shareholders was -¥12,554,120.49, representing a decline of 526.06% from a profit of ¥2,946,581.52 in the previous year[7] - The company's operating revenue for Q1 2020 was ¥75,878,799.42, a decrease of 56.63% compared to ¥174,967,593.74 in the previous year, primarily due to the impact of the COVID-19 pandemic[18] - The net profit for Q1 2020 was -¥12,878,888.23, representing a decline of 496.55% from a profit of ¥3,247,739.93 in the same period last year[19] - Net loss for Q1 2020 was CNY -12,878,888.23, contrasting with a net profit of CNY 3,247,739.93 in the same period last year[40] - The company reported a total comprehensive income of -12,238,975.48 CNY for the first quarter, compared to 2,633,130.92 CNY in the previous year[45] Cash Flow - The net cash flow from operating activities increased by 495.56% to ¥71,212,911.12, compared to ¥11,957,277.57 in the same period last year[7] - Cash flow from operating activities increased significantly to ¥71,212,911.12, up 495.56% from ¥11,957,277.57 in the previous year, mainly due to reduced procurement costs and recovery of accounts receivable[19] - The company's cash and cash equivalents decreased by 73.40% to ¥29,969,215.18 from ¥112,666,425.85, primarily due to funds being used for loan repayments[18] - The company's cash flow from operating activities was impacted, leading to a decrease in cash reserves[40] - The net cash flow from investment activities was 79,050,879.13, compared to -139,741.00 in the previous period[52] - The net cash flow from financing activities was -131,483,307.79, compared to -36,130,511.51 in the previous period[52] Assets and Liabilities - Total assets at the end of the reporting period were ¥656,419,379.34, a decrease of 19.32% from ¥813,635,176.00 at the end of the previous year[7] - The company's current assets decreased to CNY 301,885,716.72 from CNY 458,924,133.41, indicating a reduction of approximately 34.2%[30] - The total liabilities decreased to CNY 383,532,400.13 from CNY 527,869,308.56, reflecting a decline of about 27.4%[32] - The total equity attributable to shareholders decreased to CNY 243,512,924.92 from CNY 256,067,045.41, a decline of about 4.9%[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,549[10] - The largest shareholder, Gao Xing Holdings Group, held 30.60% of the shares, amounting to 38,759,980 shares, which are currently pledged[10] Expenses - The company's sales expenses fell by 52.39% to ¥4,714,358.24 from ¥9,901,735.86, reflecting the decline in revenue[18] - The financial expenses decreased by 65.87% to ¥2,455,122.12 from ¥7,192,750.66, due to reduced loans and interest income from discounted acceptance bills[18] - Total operating costs for Q1 2020 amounted to CNY 91,150,662.96, compared to CNY 171,736,903.83 in the prior period[39] - Research and development expenses increased to CNY 6,449,897.69 from CNY 5,102,513.73 year-over-year, indicating a focus on innovation despite financial losses[39] Other Financial Metrics - Basic and diluted earnings per share were both -¥0.0991, down 525.32% from ¥0.0233 in the previous year[7] - The weighted average return on equity was -5.03%, down 5.05% from 0.02% in the previous year[7] - The company reported an asset impairment loss of -¥5,700,000.00, a significant increase of 1264.74% compared to the previous year, due to provisions for inventory depreciation[19] Future Outlook - The company plans to explore market expansion strategies and new product development to recover from the current financial downturn[40] Audit and Compliance - The company did not undergo an audit for the first quarter report[53] - The company has not applied the new revenue and leasing standards for the first quarter of 2020[53]