Group 1: Company Overview - The company adopts a direct sales and agency model for its sales strategy, particularly in the South China region, where it has production bases [1] - The company has been deeply involved in the plasticization field for nearly 20 years, providing integrated solutions for high-end chemical and electronic materials [2] Group 2: Business Advantages - Key advantages in the board and rod material business include: 1. Stable and high-quality raw material supply 2. Market synergy with existing customers 3. Unique comprehensive laboratory in the industry 4. Excellent team 5. Resource integration platform and brand effect [2] Group 3: Financial Performance - The gross profit margin for board and rod materials is approximately 20%, with expectations for continuous improvement as application fields expand [2] - The company has implemented an incentive plan for 71 individuals, granting 1.9402 million restricted stocks at a price of 19.60 yuan per share, completed on October 29, 2021 [2] Group 4: Production and Delivery - The production cycle for board and rod products is about 10 to 15 days, with sales based on existing inventory rather than made-to-order [2] Group 5: Future Strategies - The company plans to enhance gross profit margins in electronic materials by deepening supply chain services and increasing customer loyalty [2]

[Major Financial Data](index=1&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) [(I) Major Accounting Data and Financial Indicators](index=1&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's operating performance for Q3 2022 and year-to-date significantly declined, with revenue decreasing by 16.38% and net profit attributable to shareholders sharply down by 66.27% year-over-year, while net cash flow from operating activities strongly increased by 134.63% Key Financial Indicators for Q1-Q3 2022 | Indicator | Year-to-Date (YTD) as of Reporting Period End | YTD Change vs. Same Period Last Year | | :--- | :--- | :--- | | Operating Revenue (CNY) | 1.68 billion | -16.38% | | Net Profit Attributable to Shareholders (CNY) | 10.69 million | -66.27% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (CNY) | 3.20 million | -88.85% | | Net Cash Flow from Operating Activities (CNY) | 87.05 million | 134.63% | | Basic EPS (CNY/share) | 0.06 | -71.43% | | Weighted Average ROE | 1.03% | -5.62% | Key Balance Sheet Indicators as of Q3 2022 End | Indicator | As of Reporting Period End | Change vs. End of Last Year | | :--- | :--- | :--- | | Total Assets (CNY) | 1.75 billion | -11.77% | | Total Equity Attributable to Shareholders (CNY) | 1.05 billion | 2.12% | [(II) Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E9%9D%9E%E5%B8%B8%E8%A7%84%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Year-to-date non-recurring gains and losses totaled **7.48 million Yuan**, primarily from government grants of **4.73 million Yuan** and non-current asset disposal gains of **3.13 million Yuan**, which were the main profit contributors Non-recurring Gains and Losses Items Year-to-Date | Item | Amount Year-to-Date (CNY) | Primary Source | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 3.13 million | Disposal of non-current assets | | Government Grants Recognized in Current Profit/Loss | 4.73 million | Various government subsidies received | | Other Non-operating Income/Expenses and Investment Gains/Losses | 1.15 million | Investment management, overdue interest, etc | | **Total** | **7.48 million** | - | [(III) Changes and Reasons for Major Accounting Data and Financial Indicators](index=2&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) The company's financial position significantly changed during the reporting period, with substantial increases in notes receivable, construction in progress, and intangible assets reflecting business model adjustments and investment expansion; R&D expenses surged by 124% while net profit declined over 60%; operating cash flow significantly improved from negative to positive, but financing cash flow saw a large outflow due to debt repayment [Balance Sheet Item Changes](index=2&type=section&id=Balance%20Sheet%20Item%20Changes) The balance sheet indicates the company is in an expansion and restructuring phase, with notes receivable surging by **222.32%** due to increased commercial acceptance bills, construction in progress and intangible assets growing by **177.79%** and **77.20%** respectively from infrastructure investment and land acquisition, and new goodwill from acquisitions, while liabilities decreased due to active debt management - Notes receivable at period-end increased by **222.32%** compared to the beginning of the year, primarily due to an increase in unexpired commercial acceptance bills held[8](index=8&type=chunk) - Construction in progress and intangible assets increased by **177.79%** and **77.20%** respectively, mainly due to increased infrastructure investment and land use right acquisition[8](index=8&type=chunk) - Goodwill increased from zero to **42.11 million Yuan**, primarily due to the acquisition of subsidiaries during the reporting period[8](index=8&type=chunk) - Short-term borrowings and notes payable decreased by **31.71%** and **70.00%** respectively, reflecting the company's debt repayment activities[8](index=8&type=chunk) [Income Statement Item Changes](index=3&type=section&id=Income%20Statement%20Item%20Changes) Income statement changes reveal challenges to the company's profitability; despite investment income surging by **160.36%** from subsidiary equity disposal, R&D expenses increased by **124.28%** year-over-year, indicating increased investment, ultimately leading to a **60.66%** decline in net profit due to revenue downturn - R&D expenses increased by **124.28%** year-over-year, primarily due to increased R&D investment during the reporting period[9](index=9&type=chunk) - Investment income increased by **160.36%** year-over-year, mainly due to the disposal of subsidiary equity during the reporting period[9](index=9&type=chunk) - Asset impairment losses shifted from **-1.51 million Yuan** in the same period last year to **3.26 million Yuan** this period, primarily due to the reversal of inventory impairment provisions[10](index=10&type=chunk) - Net profit decreased by **60.66%** year-over-year, reflecting a decline in the company's overall profitability[10](index=10&type=chunk) [Cash Flow Statement Item Changes](index=4&type=section&id=Cash%20Flow%20Statement%20Item%20Changes) Cash flow structure significantly changed, with net cash flow from operating activities improving by **134.63%** from a **251 million Yuan** net outflow to an **87 million Yuan** net inflow, mainly due to reduced procurement; however, net cash flow from financing activities shifted from a **412 million Yuan** net inflow to a **164 million Yuan** net outflow, a **139.73%** decrease, due to bank loan repayments - Net cash flow from operating activities increased by **134.63%** year-over-year, turning positive, primarily due to a decrease in cash paid for goods and services during the reporting period[10](index=10&type=chunk) - Net cash outflow from investing activities increased by **29.41%**, mainly due to increased expenditures for asset acquisition, construction in progress, and subsidiary purchases year-over-year[10](index=10&type=chunk) - Net cash flow from financing activities decreased by **139.73%** year-over-year, shifting from positive to negative, primarily due to the repayment of bank borrowings during the reporting period[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) [(I) Total Number of Common Shareholders, Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Shareholding](index=4&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the end of the reporting period, the company had **10,574** common shareholders; the ownership structure is relatively concentrated, with the top two shareholders, Hua Qingcui and Shao Yunan, a married couple, holding a combined **41.33%**; several top ten individual shareholders have pledged their shares, and some shareholders have familial relationships - As of the end of the reporting period, the company had **10,574** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Share Status | Pledged Shares Quantity | | :--- | :--- | :--- | :--- | | Hua Qingcui | 21.42% | Pledged | 21,222,000 | | Shao Yunan | 19.91% | Pledged | 16,130,000 | | Hua Qingchun | 3.54% | - | 0 | | Xinfeng High-tech Zone Investment Development Co., Ltd. | 3.22% | - | 0 | | Ganzhou Development Private Equity Fund No. 2 Investment Partnership | 3.22% | - | 0 | | Ma Yuan | 2.47% | Pledged | 2,550,000 | | Hua Qingbai | 2.19% | Pledged | 2,300,000 | - Key shareholders have related party relationships: Hua Qingcui and Shao Yunan are a married couple, Ma Yuan and Hua Qingbai are a married couple, and Hua Qingchun, Hua Qingcui, and Hua Qingbai are siblings[13](index=13&type=chunk) [Other Significant Matters](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Company's Significant Business Activities](index=5&type=section&id=Company%27s%20Significant%20Business%20Activities) During the reporting period, the company actively pursued strategic initiatives, expanding business through investments and acquisitions while divesting non-core assets; it acquired land use rights for **17.54 million Yuan** to build an East China R&D and manufacturing base, and acquired a **65%** stake in Guangdong Hengshengtong Technology for **45 million Yuan** to expand electronic materials trading, also disposing of full or controlling equity in four subsidiaries to optimize asset structure - The company acquired land use rights for **17.54 million Yuan** through bidding, for the construction of the "East China R&D and Manufacturing Base Project for Electronic Information New Materials"[14](index=14&type=chunk) - The company acquired a **65%** stake in Guangdong Hengshengtong Technology Co., Ltd., which primarily engages in electronic materials trading, for **45 million Yuan** using its own funds[14](index=14&type=chunk) - During the reporting period, the company disposed of equity in four subsidiaries (Beijing Century Haoke Trade, Dongguan Tongyi New Materials, Guangzhou Chuangyi Technology Services, Shenzhen Tongyi Zhixian Technology), which are no longer included in the consolidated financial statements[15](index=15&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=%E5%9B%9B%E3%80%81%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [1. Consolidated Balance Sheet](index=6&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets were **1.75 billion Yuan**, down **11.77%** from the beginning of the year, and total liabilities were **678 million Yuan**, down **27.70%**, primarily due to decreased cash and cash equivalents, and significant reductions in short-term borrowings and notes payable, while equity attributable to the parent company slightly increased by **2.12%** to **1.05 billion Yuan** Key Items of Consolidated Balance Sheet | Item | September 30, 2022 (CNY) | January 1, 2022 (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 1.75 billion | 1.98 billion | -11.77% | | Total Liabilities | 678 million | 938 million | -27.70% | | Total Equity Attributable to Parent Company Shareholders | 1.05 billion | 1.03 billion | 2.12% | [2. Consolidated Income Statement (Year-to-Date)](index=8&type=section&id=2.%20Consolidated%20Income%20Statement%20(Year-to-Date)) In Q1-Q3 2022, total operating revenue was **1.68 billion Yuan**, down **16.38%** year-over-year, with total operating costs at **1.68 billion Yuan**, down **15.0%**; despite positive contributions like investment income, operating profit sharply declined to **15.84 million Yuan**, a **58.57%** decrease, and net profit attributable to parent company shareholders plummeted by **66.27%** to **10.69 million Yuan** Key Items of Consolidated Income Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1.68 billion | 2.01 billion | -16.38% | | Operating Profit | 15.84 million | 38.23 million | -58.57% | | Total Profit | 16.18 million | 38.73 million | -58.23% | | Net Profit Attributable to Parent Company Shareholders | 10.69 million | 31.68 million | -66.27% | [3. Consolidated Cash Flow Statement (Year-to-Date)](index=10&type=section&id=3.%20Consolidated%20Cash%20Flow%20Statement%20(Year-to-Date)) In Q1-Q3 2022, the company's cash flow showed divergence: net cash flow from operating activities significantly improved to **87.05 million Yuan** from a **251 million Yuan** net outflow last year, mainly due to reduced procurement; net cash outflow from investing activities increased to **155 million Yuan**; and net cash flow from financing activities shifted to a **164 million Yuan** net outflow from a **412 million Yuan** net inflow last year, primarily due to debt repayment, resulting in a **224 million Yuan** net decrease in cash and cash equivalents at period-end Key Items of Consolidated Cash Flow Statement (Year-to-Date) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 87.05 million | -251.37 million | Net inflow increased by 338 million | | Net Cash Flow from Investing Activities | -155.45 million | -120.13 million | Net outflow increased by 35 million | | Net Cash Flow from Financing Activities | -163.57 million | 411.69 million | Shifted from net inflow to net outflow | | Net Increase in Cash and Cash Equivalents | -224.03 million | 41.38 million | Net decrease of 265 million |

Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,081,016,965.15, a decrease of 22.21% compared to ¥1,389,739,897.18 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥3,709,849.09, down 82.24% from ¥20,886,747.21 in the previous year[19]. - Basic and diluted earnings per share were both ¥0.02, reflecting an 85.71% decrease from ¥0.14 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was ¥159,779.90, a decline of 99.11% from ¥17,977,248.85 in the same period last year[19]. - The company's total revenue for the reporting period was 65,239.89 million, compared to 60,714.01 million in the previous period, indicating a growth of approximately 8.3%[71]. - The net profit for the first half of 2022 was CNY 5,231,273.38, a significant decline of 77% from CNY 22,798,020.81 in the first half of 2021[157]. - The company reported a total comprehensive income of CNY 7,677,376.72, compared to CNY 8,108,146.86 in the previous year, reflecting a decrease of about 5.3%[162]. Cash Flow and Investments - The net cash flow from operating activities improved to ¥64,725,192.12, a significant increase of 142.55% compared to a negative cash flow of ¥152,121,180.69 in the same period last year[19]. - The company's net cash flow from investing activities decreased by 65.53% to -24,226,097.69 CNY due to investments in fixed assets and long-term equity investments[51]. - The net cash flow from financing activities turned negative at -237,343,083.21 CNY, a decrease of 192.96%, primarily due to repayment of bank loans[51]. - The company reported a cash outflow for debt repayment of 330,869,807.24 CNY, compared to 138,785,971.69 CNY in the previous period[167]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,626,026,160.73, a decrease of 17.88% from ¥1,980,137,178.11 at the end of the previous year[19]. - The company's total liabilities decreased from CNY 938,384,763.29 to CNY 576,869,556.24, a reduction of approximately 38.5%[151]. - The company's equity increased slightly from CNY 1,041,752,414.82 to CNY 1,049,156,604.49, reflecting a growth of about 0.7%[151]. Research and Development - R&D investment surged by 163.01% to CNY 8.08 million, reflecting the company's commitment to enhancing its product development capabilities[50]. - The company has obtained 2 invention patents and 18 utility model patents, with additional patents pending, showcasing its strong R&D capabilities[42]. - The company is currently developing new products in the field of engineering plastics, with several projects expected to be completed by December 31, 2023[69]. Market Position and Strategy - The company aims to provide material solutions to 10 major industries, 100 excellent brands, and 10,000 outstanding SMEs, striving to become a leading provider in the high-end chemical and electronic materials sector[30]. - The company has established long-term partnerships with several global suppliers, including Celanese, LG Chem, and Samsung SDI, enhancing its competitive advantage[36]. - The company is actively exploring new material fields and developing domestic alternative materials to mitigate procurement risks[81]. Risk Management - The company does not foresee any significant risks that could adversely affect its production, operation, financial status, or ongoing profitability[3]. - The company is implementing a comprehensive risk management system to monitor macroeconomic trends and market competition, aiming to mitigate the impact of external market changes on business and future development[89]. - The company is focusing on improving accounts receivable management and has established a customer risk monitoring mechanism to reduce bad debt risks associated with accounts receivable[86]. Shareholder and Capital Structure - The company has not distributed cash dividends or bonus shares for the half-year period, nor has it increased share capital from capital reserves[95]. - The company has implemented a restricted stock incentive plan, granting 1.9402 million shares to 71 individuals, representing 1.28% of the total share capital[96]. - The total number of shareholders and their respective holdings has not been disclosed in the recent report[134]. Compliance and Governance - There were no significant environmental penalties or violations reported during the period, indicating compliance with environmental regulations[101]. - The financial report for the first half of 2022 was not audited[147]. - The company has not engaged in any major related party transactions during the reporting period[111].

Financial Performance - The company's revenue for Q1 2022 was ¥507.33 million, a decrease of 11.31% compared to ¥572.03 million in the same period last year[3]. - The net profit attributable to shareholders was a loss of ¥4.97 million, representing a decline of 147.02% from a profit of ¥10.56 million in the previous year[3]. - The company reported a basic earnings per share of -¥0.0273, a decrease of 139.17% from ¥0.0697 in the same period last year[3]. - Net profit for Q1 2022 was a loss of CNY 4,356,043.93, compared to a profit of CNY 12,956,550.43 in Q1 2021, representing a significant decline[22]. - The total equity attributable to shareholders of the parent company was CNY 1,020,772,951.36, slightly down from CNY 1,026,361,248.33[20]. Cash Flow - The net cash flow from operating activities improved to ¥21.97 million, a significant increase of 116.13% compared to a negative cash flow of ¥136.22 million in the same period last year[3]. - Cash inflow from operating activities was CNY 576,743,694.75, an increase from CNY 424,734,819.66 in the same period last year[24]. - The net cash flow from operating activities for Q1 2022 was ¥21,973,271.02, a significant improvement compared to a net outflow of ¥136,219,788.69 in Q1 2021[26]. - The total cash and cash equivalents at the end of Q1 2022 stood at ¥482,837,392.41, down from ¥129,075,452.76 at the end of Q1 2021[26]. - The cash outflow for operating activities was ¥554,770,423.73, slightly lower than ¥560,954,608.35 in the previous year[26]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1.80 billion, down 9.13% from ¥1.98 billion at the end of the previous year[3]. - The total liabilities decreased to CNY 762,483,291.23 from CNY 938,384,763.29, reflecting a reduction in financial obligations[20]. - The company’s non-current assets totaled approximately RMB 318.66 million, showing a slight decrease from RMB 322.01 million at the beginning of the year[18]. - The company’s short-term borrowings decreased from RMB 483.64 million to RMB 416.02 million, a reduction of about 13.9%[18]. Research and Development - Research and development expenses increased by 78.97% to ¥5.15 million, reflecting a rise in investment in R&D activities[6]. - Research and development expenses increased to CNY 5,145,858.12, up from CNY 2,875,265.46 year-over-year, indicating a focus on innovation[21]. - The company plans to establish a new R&D and manufacturing base for electronic information new materials in Jiangxi, with a land area of 96,930.58 square meters, acquired for RMB 8.15 million[14]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,641[9]. - The top shareholder, Hua Qing Cui, holds 21.42% of the shares, amounting to 38,966,758 shares[9]. Market Conditions - In Q1 2022, the company recorded a slight loss due to the impact of the ongoing COVID-19 pandemic and the Russia-Ukraine conflict, with a significant reduction in order volume and increased costs across business segments[13]. Investment Activities - Total cash inflow from investment activities was ¥303,510,958.90, up from ¥10,013,458.18 in the previous year, indicating a strong increase in investment recovery[26]. - The net cash flow from investment activities was -¥6,186,436.43, an improvement from -¥19,846,741.56 in Q1 2021[26]. - The company reported cash outflows for investment activities totaling ¥309,697,395.33, compared to ¥29,860,199.74 in Q1 2021[26]. Financial Expenses - Financial expenses surged by 169.81% to ¥7.57 million, primarily due to an increase in bank borrowings[6]. - The company experienced a 42.76% reduction in taxes and surcharges, amounting to ¥373,999.09, attributed to decreased revenue[6]. Audit Information - The company did not undergo an audit for the Q1 2022 report[27].

Financial Performance - The company reported a loss of approximately 45 million RMB due to overall production losses, primarily caused by prolonged power restrictions in Huizhou, which reduced production capacity by 40%[6]. - The company's operating revenue for 2021 was CNY 2,918,366,268.40, representing a 31.66% increase compared to CNY 2,216,513,161.18 in 2020[23]. - The net profit attributable to shareholders was a loss of CNY 26,380,439.33 in 2021, a decrease of 218.04% from a profit of CNY 22,349,344.29 in 2020[23]. - The net cash flow from operating activities was a negative CNY 233,210,361.34, worsening by 125.00% compared to a negative CNY 103,646,960.39 in 2020[23]. - The total assets at the end of 2021 were CNY 1,980,137,178.11, an increase of 133.50% from CNY 848,009,926.73 at the end of 2020[23]. - The basic and diluted earnings per share were both CNY -0.17 in 2021, a decline of 213.33% from CNY 0.15 in 2020[23]. - The weighted average return on equity was -4.89% in 2021, down from 4.88% in 2020, indicating a significant decline in profitability[23]. - The company reported a total revenue of CNY 2,918,031,243.91 after deducting certain income, compared to CNY 2,216,107,618.04 in 2020[24]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as the net profit for the last three accounting years has been negative[23]. Production and Capacity - The company plans to steadily advance production project construction in 2022, aiming to improve product capacity and yield rates, with expectations of significant operational performance improvement as capacity is gradually released[6]. - The company has established a flexible supply chain to reduce inventory costs and improve supply efficiency for downstream brand partners[57]. - The company established two new production bases in Jiangxi and Jiangsu, with the Jiangxi base starting production in Q4 2021 and expected to gradually ramp up production in 2022[62]. - The company has upgraded its production lines to include automated and intelligent manufacturing processes for composite materials[39]. - The composite materials project is still in the early production stage, with profitability not yet achieved due to production constraints and increased costs[63]. Market and Industry Trends - The engineering plastics market in China is projected to grow from 590,000 tons in 2019 to 680,000 tons in 2022, with a compound annual growth rate of 6.7%[34]. - The integrated circuit industry in China saw sales grow from ¥433.6 billion in 2016 to ¥884.8 billion in 2020, with a compound annual growth rate of 19.64%[36]. - The composite materials market in China is expected to grow significantly, with current plastic-steel ratios indicating substantial room for development[37]. - The company’s market position is strengthened by the increasing demand for engineering plastics and electronic materials in sectors like 5G, automotive, and consumer electronics[47]. Partnerships and Collaborations - The company has established partnerships with major firms such as DJI and Lens Technology, focusing on high-quality engineering plastics and composite materials[39]. - The company has established long-term partnerships with renowned suppliers such as Celanese, Samsung SDI, and Teijin, enhancing its competitive edge in the market[48]. - The company is actively developing high-end products including PAI, PI, and high-temperature nylon, aiming to enhance domestic production capabilities[39]. Research and Development - The company has obtained 2 invention patents and 14 utility model patents, with additional patents pending[54]. - The company is developing new high-performance materials, including high wear-resistant PA6 and PVDF specialty products, with some expected to achieve mass production in 2022[65]. - The company is focusing on niche markets such as mobile terminals, consumer electronics, and new energy vehicles to build a dual-driven development model[120]. - The company plans to establish a high-level R&D center to create a shared platform for material innovation, focusing on flame-retardant and lightweight materials[122]. Governance and Management - The board approved a profit distribution plan, proposing a cash dividend of 0.30 RMB per 10 shares (including tax) to all shareholders, based on a total of 181,918,573 shares[8]. - The board of directors has been restructured, now consisting of 7 members, including 3 independent directors, ensuring compliance with governance standards[1]. - The company has established a complete and independent corporate governance structure, with no mixed operations or shared offices with the controlling shareholder[147]. - The company has implemented a comprehensive internal control system to effectively mitigate operational risks and achieve control objectives[188]. Financial Management and Risks - The company is focusing on improving cash flow management to mitigate liquidity risks, especially with rising short-term borrowing and potential increases in market interest rates[133]. - The company faces risks related to market demand fluctuations and raw material procurement, which could impact performance[124][125]. - There is a risk of bad debts from accounts receivable, which could significantly impact cash flow if major clients face financial difficulties[131]. - The company is implementing a comprehensive risk management system to monitor macroeconomic trends and adjust strategic directions in response to global trade uncertainties[135]. Employee and Community Engagement - The company has established the Shenzhen Tongyi Charity Foundation with an initial fund of CNY 2 million, focusing on supporting vulnerable groups and educational initiatives[197]. - In 2021, the charity foundation donated CNY 208,000, primarily to the Guangdong Education Foundation and for flood relief efforts in Henan[197]. - The company emphasizes the protection of minority shareholders' rights and adheres to legal regulations for corporate governance[195]. - The company has engaged in community charity activities, including donations and support for local economic development[197].

Group 1: Event Details - The event is titled "Communicating Value, Creating a Good Ecology" and is organized by the Shenzhen Stock Exchange Association and Shenzhen Panorama Network Co., Ltd. [1] - The online collective reception day will take place on November 30, 2021, from 14:00 to 17:00, with interaction time between the company and investors from 15:30 to 17:00 [1] - Investors can participate via the "Panorama Roadshow" website or by following the WeChat public account "Panorama Finance" [1] Group 2: Company Commitment - Shenzhen Tongyi Industrial Co., Ltd. ensures that the information disclosed is true, accurate, complete, and free from false records, misleading statements, or significant omissions [1] - The company's board secretary, Ms. Li Tao, will communicate with investors through online text interaction [1]

Financial Performance - The company's revenue for Q3 2021 was ¥622,056,985.40, representing a 15.86% increase year-over-year, and a total revenue of ¥2,011,796,882.58 for the year-to-date, up 19.34% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was ¥10,794,373.99, a significant increase of 73.35% year-over-year, with a year-to-date net profit of ¥31,681,121.20, up 52.83%[3]. - Total operating revenue for Q3 2021 reached CNY 2,011,796,882.58, an increase of 19.3% compared to CNY 1,685,788,525.50 in the same period last year[23]. - Net profit for Q3 2021 was CNY 33,759,780.06, representing a 62.1% increase from CNY 20,819,146.19 in Q3 2020[24]. - Earnings per share for Q3 2021 were CNY 0.21, up from CNY 0.14 in the previous year[25]. Cash Flow and Financing - The company's cash flow from operating activities showed a net outflow of ¥99,243,995.30 for Q3 2021, a decline of 287.17% compared to the same period last year, and a year-to-date net outflow of ¥251,365,175.99, down 919.05%[3]. - The net cash flow from financing activities was ¥411,685,412.40, a significant increase attributed to new bank loans[10]. - Total cash inflow from financing activities amounted to 842,650,676.78 CNY, compared to 173,999,641.48 CNY in the same period last year, reflecting a substantial increase in financing efforts[29]. - The net cash flow from financing activities was 411,685,412.40 CNY, a significant increase from 2,357,662.58 CNY in the previous year, highlighting improved financing conditions[29]. Assets and Liabilities - Total assets at the end of Q3 2021 reached ¥1,494,031,695.26, an increase of 76.18% compared to the end of the previous year[3]. - Total liabilities increased to CNY 996,174,057.02 in Q3 2021, up from CNY 372,346,512.86 in the same period last year, marking a rise of 167.5%[21]. - The company reported a total equity of CNY 497,857,638.24 as of Q3 2021, up from CNY 475,663,413.87 in Q3 2020, indicating a growth of 4.3%[21]. - The company’s total liabilities increased to 458,268,202.86 CNY, up from 372,346,512.86 CNY, indicating a rise in financial obligations[33]. - The total assets increased to 933,931,616.73 CNY, compared to 848,009,926.73 CNY, showing growth in the company's asset base[33]. Operational Metrics - The company reported a significant increase in accounts receivable, which rose by 47.06% to ¥657,928,438.66, attributed to expanded business scale and increased revenue[7]. - The company's inventory increased by 111.92% to ¥124,316,436.13, driven by expanded business operations and production cycle preparations[7]. - Operating costs for Q3 2021 were CNY 1,972,189,117.51, an increase of 18.7% from CNY 1,660,918,701.10 in Q3 2020[23]. - The company experienced a significant increase in interest expenses, which rose to CNY 16,915,597.09 in Q3 2021 from CNY 6,044,058.11 in Q3 2020, an increase of 179.5%[24]. Research and Development - Research and development expenses decreased by 50.33% to ¥4,686,815.19, as the manufacturing sector was in the initial development stage[9]. - Research and development expenses decreased to CNY 4,686,815.19 in Q3 2021 from CNY 9,436,483.60 in Q3 2020, a reduction of 50.4%[23]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 9,490[13]. - The largest shareholder, Hua Qingcui, holds 25.70% of shares, totaling 38,966,758 shares, with 29,225,068 shares pledged[13]. Other Information - The company received government subsidies amounting to ¥3,340,154.16, a 94.52% increase compared to the previous period, contributing to other income[9]. - The company plans to adjust the total fundraising amount for the issuance of A-shares to no more than ¥65,239.89 million[14]. - The stock incentive plan involves granting 1,940,200 restricted shares at a price of ¥19.60 per share to 71 incentive targets[15]. - The company has completed the deregistration of two subsidiaries to reduce management costs[16]. - The long-term equity investment increased to ¥83,706,233.53 from ¥52,106,980.44, showing a growth of 60.8%[19]. - The company implemented the new leasing standards starting January 1, 2021, affecting financial statements from that date onward[34]. - The cumulative impact of the new leasing standards only adjusted the beginning retained earnings and other related items for the year of first-time adoption, without adjusting comparative period information[34]. - The third quarter report for 2021 was not audited[36].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,389,739,897.18, representing a 20.96% increase compared to ¥1,148,883,616.63 in the same period last year[21]. - The net profit attributable to shareholders was ¥20,886,747.21, up 44.02% from ¥14,502,673.91 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥17,977,248.85, reflecting a 22.79% increase from ¥14,640,346.84 in the previous year[21]. - The basic earnings per share increased by 40.00% to ¥0.14 from ¥0.10 in the same period last year[21]. - The company's revenue for the reporting period reached ¥1,389,739,897.18, representing a year-on-year increase of 20.96% compared to ¥1,148,883,616.63[46]. - The operating costs increased to ¥1,290,882,107.81, reflecting a 20.13% rise due to the increase in revenue[46]. - The company reported a net increase in cash and cash equivalents of ¥33,648,386.34, which is a 48.17% increase from ¥22,709,789.44 in the previous period[46]. - The company reported a net profit for the first half of 2021 of ¥22,798,020.81, representing a 62.56% increase from ¥14,059,996.33 in the first half of 2020[156]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,400,074,900.04, a 65.10% increase from ¥848,009,926.73 at the end of the previous year[21]. - The total liabilities increased to CNY 913,752,900.26 from CNY 372,346,512.86, marking a rise of about 145.0%[148][149]. - The company's equity attributable to shareholders rose to CNY 468,287,194.06 from CNY 461,266,690.85, showing a slight increase of approximately 1.4%[149]. - Cash and cash equivalents increased to ¥132,878,807.31, representing 9.49% of total assets, up from 9.42% last year[54]. - Accounts receivable rose to ¥775,177,285.99, accounting for 55.37% of total assets, an increase of 2.61% due to expanded business scale and increased revenue[54]. - Inventory increased to ¥110,962,640.16, making up 7.93% of total assets, up 1.01% as a result of expanded business scale and production cycle preparations[54]. - Short-term borrowings surged to ¥467,170,289.33, representing 33.37% of total assets, an increase of 11.44% due to additional bank loans[54]. Research and Development - Research and development expenses decreased by 53.64% to ¥3,071,519.23, attributed to the initial development phase of the manufacturing sector[46]. - The company has received two invention patents and one utility model patent, showcasing its strong independent research and development capabilities[39]. - The company is committed to a "one body, two wings" development strategy, focusing on its own product R&D, production, and sales while empowering new material enterprises[32]. Market and Business Strategy - The company is focusing on expanding its market presence in the medical sector while deepening its existing market relationships[38]. - The company has established long-term partnerships with several global suppliers, including major brands like Huawei, VIVO, and Xiaomi, enhancing its competitive advantage[35]. - The domestic market for chemical and electronic materials is becoming increasingly competitive, with a growing demand for high-performance materials driven by technological advancements[34]. - The company aims to leverage its accumulated resources and industry insights to replicate its business model in new market segments[31]. Risk Management - The company faces market demand fluctuation risks, particularly in sectors like mobile terminals and smart appliances, and plans to enhance R&D and supply chain flexibility to mitigate these risks[72]. - The company is exposed to raw material procurement risks due to high supplier concentration and plans to diversify suppliers and develop domestic alternatives[73]. - The company is establishing a comprehensive risk management system to address international trade risks stemming from the ongoing global pandemic[81]. Corporate Governance - The company did not distribute cash dividends or bonus shares for the half-year period[87]. - There were no changes in the board of directors, supervisors, or senior management during the reporting period[86]. - The company has fulfilled its commitments to minority shareholders regarding the 2017 restricted stock incentive plan[95]. - The company did not engage in any major related party transactions during the reporting period[103]. Legal and Compliance - The company reported a total of 2,167.86 million yuan in minor lawsuits, primarily related to sales and storage contracts, with 562.32 million yuan already settled[101]. - The company has no significant litigation or arbitration matters during the reporting period[101]. - The financial report for the first half of 2021 was not audited[144]. Shareholder Information - Major shareholders Chen Zuoxing and Wu Shuyong reduced their holdings by 1,037,500 shares and 842,000 shares, respectively, through block trading[126]. - The total number of common shareholders at the end of the reporting period is 15,726[131]. - Major shareholders include Hua Qingcui with 25.70% (38,966,758 shares) and Shao Yunan with 23.89% (36,211,265 shares)[131].

Financial Performance - The company's revenue for Q1 2021 was ¥572,031,440.05, representing an increase of 11.83% compared to ¥511,504,058.47 in the same period last year[7]. - Net profit attributable to shareholders was ¥10,562,582.63, up 10.19% from ¥9,585,627.65 year-on-year[7]. - The net profit after deducting non-recurring gains and losses decreased by 9.50% to ¥8,831,164.07 from ¥9,758,541.43 in the previous year[7]. - Basic earnings per share increased by 10.28% to ¥0.0697 from ¥0.0632 year-on-year[7]. - The total comprehensive income for the period was CNY 13,197,769.72, compared to CNY 10,308,667.24 in the previous year, reflecting a growth of approximately 28.3%[57]. - The company's operating profit for Q1 2021 was CNY 16,075,519.85, an increase from CNY 12,859,849.74 in the same period last year, representing a growth of approximately 25.7%[56]. - The total profit for the period was CNY 16,405,159.88, compared to CNY 12,357,473.64 in the previous year, indicating an increase of about 32.9%[56]. Cash Flow and Assets - The net cash flow from operating activities was -¥136,219,788.69, a significant decline of 427.41% compared to -¥25,828,290.47 in the same period last year[7]. - Cash and cash equivalents increased by 71.26% to 136.85 million yuan from 79.91 million yuan[18]. - The ending balance of cash and cash equivalents was CNY 129.08 million, up from CNY 110.81 million in the previous period[65]. - Total assets at the end of the reporting period reached ¥1,181,904,171.65, a 39.37% increase from ¥848,009,926.73 at the end of the previous year[7]. - The company's total assets increased to CNY 896,040,908.13 from CNY 671,651,737.86 year-over-year, indicating growth in asset base[51]. - The company reported a significant increase in inventory, which rose to 100,240,596.40 RMB from 58,661,466.26 RMB, marking an increase of approximately 70.8%[46]. - Total liabilities rose to CNY 704,035,271.57 from CNY 372,346,512.86, reflecting increased financial obligations[49]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,817[11]. - The largest shareholder, Hua Qingcui, holds 25.70% of the shares, amounting to 38,966,758 shares, with 29,225,068 shares pledged[11]. - The company plans to reduce its shares by up to 2,174,415 shares, accounting for 1.43% of the total share capital, but only 29,000 shares were actually reduced by March 8, 2021[35]. Risk Management and Strategic Initiatives - The company is focusing on enhancing its technical service capabilities and extending its business depth and breadth in response to market demand fluctuations[24]. - The company aims to mitigate raw material procurement risks by actively entering new material fields and developing domestic alternative materials[25]. - The company is implementing measures to manage financial risks, including improving accounts receivable management and establishing a customer risk monitoring mechanism[28]. - The company is addressing international trade risks by establishing a comprehensive risk control system to monitor macroeconomic trends[30]. - The company is committed to developing domestic alternative materials to ensure sufficient supply in response to the impact of the COVID-19 pandemic[31]. Investments and Financing - The company achieved a monthly production capacity exceeding 500 tons for the "Special Engineering Plastic Extrusion Molding Project" in Q1 2021, generating revenue of 15.7471 million RMB[23]. - The total amount of funds raised from the issuance of A-shares was adjusted to not exceed 65239.89 million RMB[32]. - The company plans to apply for a comprehensive credit limit of up to 2 billion RMB from financial institutions[34]. - The company is in the process of applying for a comprehensive credit line from banks and providing guarantees to subsidiaries[37]. - Cash inflow from financing activities reached CNY 242.66 million, significantly higher than CNY 20.16 million in the previous period[65]. - Net cash flow from financing activities was CNY 214.68 million, a substantial increase from negative CNY 2.45 million year-over-year[65]. Research and Development - Research and development expenses for Q1 2021 were CNY 2,875,265.46, compared to CNY 2,357,372.28 in the previous period, reflecting increased investment in innovation[55]. - Research and development expenses increased to CNY 4,069,505.35 from CNY 3,413,176.30, showing a growth of about 19.2% year-over-year[59].

Financial Performance - The company's operating revenue for 2020 was ¥2,216,513,161.18, representing a 24.01% increase compared to ¥1,787,353,342.15 in 2019[16]. - The net profit attributable to shareholders decreased by 43.30% to ¥22,349,344.29 in 2020 from ¥39,416,598.55 in 2019[16]. - The net cash flow from operating activities was negative at -¥103,646,960.39, a decline of 511.25% compared to ¥25,202,864.34 in 2019[16]. - The total assets at the end of 2020 were ¥848,009,926.73, down 7.21% from ¥913,936,629.23 at the end of 2019[16]. - The company reported a basic earnings per share of ¥0.15, a decrease of 42.31% from ¥0.26 in 2019[16]. - The company achieved operating revenue of 2,216.51 million CNY, a year-on-year increase of 24.01%[35]. - The net profit attributable to shareholders was 22.35 million CNY, a year-on-year decrease of 43.30%[35]. - The electronic materials business generated sales revenue of 1,311.63 million RMB, accounting for 59.18% of total revenue, with a growth of 195.68% year-on-year[51]. - The engineering plastics business reported sales revenue of 793.67 million RMB, representing 35.81% of total revenue, a decline of 36.87% year-on-year[52]. Risk Management - The company has not identified any significant risks that could adversely affect its production, operation, financial status, or ongoing profitability[4]. - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements and the differences between plans, forecasts, and commitments[4]. - The company has a comprehensive risk management strategy outlined in the report, detailing potential risks and corresponding countermeasures[4]. - The company faces market demand fluctuation risks, particularly in sectors like mobile terminals and smart home appliances, and plans to increase R&D efforts and enhance supply chain flexibility to mitigate these risks[131]. - The company is addressing raw material procurement risks by expanding into new material fields and developing domestic suppliers to ensure a stable supply[132]. - The company has identified risks related to fundraising projects, including potential delays and lower-than-expected returns, and is committed to advancing these projects according to plan[134]. - The company is aware of financial risks, including bad debt and foreign exchange risks, and is implementing measures to manage these risks effectively[137]. - The company is actively monitoring the impact of the COVID-19 pandemic on its operations and is adjusting strategies to maintain operational efficiency and supply chain stability[140]. Research and Development - The company is focusing on R&D and production in the fields of special engineering plastics and modified plastics to enhance its core competitiveness[29]. - The company has received two invention patents and one utility model patent, reflecting its strong R&D capabilities in high-end materials[41]. - The company has developed innovative materials in areas such as 5G, biodegradable materials, and lightweight automotive materials, with several patents filed[53]. - The company is focusing on high-functionality and intelligent electronic materials to meet the evolving demands of the technology sector[107]. - The company is building a high-level R&D center focused on lightweight, spray-free, and special functional materials for industries such as 3C, 5G, automotive, and home appliances[127]. - Research and development expenses for 2020 were ¥11,292,401.19, a decrease of 6.19% compared to 2019[76]. - The number of R&D personnel increased to 21, representing 6.56% of the total workforce[78]. Strategic Initiatives - The company aims to expand its business model into new market segments by leveraging its existing resource network and industry insights[28]. - The company has established strategic partnerships to provide comprehensive technical support and services across the entire supply chain[28]. - The company plans to raise up to 650 million RMB through a private placement to enhance its core competitiveness, with projects including special engineering plastics extrusion and modification[59]. - The company plans to implement fundraising projects to extend its business chain, focusing on high-end engineering plastics and precision injection products[125]. - The company aims to deepen its market presence in mobile terminals, consumer electronics, smart home appliances, new energy vehicles, and 5G sectors, establishing a dual-driven development model[126]. - The company plans to combine organic growth with external development by investing in new materials, particularly high-tech and import substitution materials, to drive sustainable growth[129]. Shareholder Relations - The company reported a commitment to ensure the accuracy and completeness of its IPO prospectus and other disclosure materials, with no false records or misleading statements[154]. - The company has established a cash dividend policy to ensure the continuity and stability of profit distribution, protecting the rights of minority investors[144]. - The company distributed a cash dividend of RMB 0.8 per 10 shares, totaling RMB 12,127,904.88 for the year 2020[149]. - The cash dividend amount represented 27.18% of the total distributable profit of RMB 44,622,492.63[145]. - The company has ensured that minority shareholders had sufficient opportunities to express their opinions and that their legal rights were fully protected[145]. - The company has committed to repurchase shares if its prospectus is found to contain false records or misleading statements, with a repurchase price not lower than the original transfer price[155]. - The company’s management will publicly explain any failure to fulfill commitments at the shareholders' meeting and will stop receiving dividends until the commitments are fulfilled[155]. Corporate Governance - The company’s management has pledged to link their compensation system to the execution of measures to compensate for any dilution of returns[154]. - The company’s board of directors and senior management are legally responsible for the accuracy and completeness of the information disclosed[155]. - The company has not faced any penalties or rectification issues during the reporting period[165]. - The company has not encountered any bankruptcy reorganization matters during the reporting period[165]. - The company has not received any non-standard audit reports for the reporting period[158]. - The company has made changes to its accounting policies in accordance with new regulations effective from 2020, including adjustments to bad debt provisions and asset depreciation[160]. Community Engagement and Social Responsibility - The company donated 500,000 RMB worth of medical protective clothing to support frontline medical workers during the COVID-19 pandemic[195]. - The company established the Shenzhen Tongyi Charity Foundation with an initial fund of 2 million RMB to support vulnerable groups and promote environmental protection[195]. - The company actively participates in community charity activities and has been recognized for its contributions to social welfare[195]. - The company is committed to integrating social responsibility into its development strategy for harmonious growth with society[193]. - The company emphasizes energy-saving and environmental protection in its business and R&D directions, focusing on projects like non-spray coating and lightweight materials[194].