南京三超新材料股份有限公司 2022 年第三季度报告 证券代码：300554 证券简称：三超新材 公告编号：2022-080 南京三超新材料股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、误导性陈述或重 大遗漏，并承担个别和连带的法律责任。 适用 □不适用 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、 完整。 3.第三季度报告是否经过审计 □是 否 1 南京三超新材料股份有限公司 2022 年第三季度报告 一、主要财务数据 （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 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比 | | --- | --- | --- | --- | --- | | | | 增减 | | 上年同期增减 | | 营业收入（元） | 100,120,122.87 | ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥186,705,438.16, representing a 46.23% increase compared to ¥127,677,857.81 in the same period last year[22]. - The net profit attributable to shareholders of the listed company decreased by 88.44% to ¥1,235,183.83 from ¥10,685,195.14 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was -¥1,504,288.31, a decline of 115.69% compared to ¥9,584,888.77 in the same period last year[22]. - The net cash flow from operating activities was -¥44,927,444.13, down 148.49% from ¥92,651,090.65 in the previous year[22]. - Basic earnings per share were ¥0.0132, a decrease of 88.44% from ¥0.1142 in the same period last year[22]. - The company's total revenue from sales of goods and services dropped by 64.59% to ¥71,855,262.52, attributed to a decrease in cash from accepted bills and discounts[45]. - The company's total revenue for Nanjing Sanchao New Materials Co., Ltd. in the first half of 2022 was 188.38 million yuan, with a net profit of 27.70 million yuan[63]. - The company reported a total revenue of CNY 631.26 million, with no gains from sales during the reporting period[58]. - The total revenue for the first half of 2022 reached 757.85 million, representing a 95.1% increase compared to the previous year[171]. Assets and Liabilities - Total assets at the end of the reporting period were ¥827,500,552.62, an increase of 8.05% from ¥765,839,564.96 at the end of the previous year[22]. - The total liabilities increased to 330,473,858.39 yuan from 270,677,401.50 yuan, indicating a rise in financial leverage[150]. - The company's total equity as of June 30, 2022, was ¥531,637,894.18, compared to ¥529,733,552.02 at the beginning of the year, indicating a marginal increase of approximately 0.36%[154]. - The company's cash and cash equivalents decreased by 19.73% to ¥17,180,716.34 compared to the previous period[45]. - The accounts receivable increased by 4.74% to ¥135,743,355.47, indicating growth in sales but also potential cash flow challenges[52]. Investment and R&D - The company plans to invest ¥521 million in a new project in Jiangsu Jinhu County to expand diamond wire production capacity, targeting an annual output of 41 million kilometers[40]. - The company's R&D investment increased by 64.46% to ¥14,094,410.92 compared to the previous period, reflecting a significant commitment to innovation[45]. - The company has accumulated 30 patents related to diamond grinding wheel technology and established a research center in Japan to enhance product development capabilities[38]. - The company is focusing on technological advancements and innovation to maintain competitive advantage in the market[172]. Operational Challenges - The company faced production capacity constraints due to uncompleted equipment for its projects, impacting its performance during the reporting period[34]. - The prices of raw materials such as nickel and diamond powder increased, affecting production costs and gross margins[34]. - The company faces various operational risks, which are detailed in the report[3]. - The company faces risks from rising raw material prices, which have significantly impacted production costs and profit margins in the first half of 2022[77]. - The company is actively addressing the uncertainties related to the international arbitration case with Nakamura Superhard, which could significantly impact its financial performance[77]. Corporate Governance and Compliance - The company has implemented a comprehensive management system certified by ISO9001, ISO14001, and ISO45001, enhancing its management capabilities[42]. - The company has not engaged in any significant litigation or arbitration matters during the reporting period[98]. - The company has not conducted any related party transactions during the reporting period[101]. - The company has not reported any significant guarantees during the reporting period[110]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements accurately reflect its financial position and operating results[184]. Shareholder Information - The total number of shares is 93,613,367, with 30.21% being restricted shares and 69.79% being unrestricted shares[121]. - The largest shareholder, Zou Yuyao, holds 39.74% of the shares, totaling 37,206,385 shares[125]. - The total number of ordinary shareholders at the end of the reporting period is 9,832[125]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[130]. Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[172]. - The company aims to enhance its competitive position through strategic mergers and acquisitions in the upcoming quarters[174]. - The company plans to continue focusing on R&D to drive future growth despite the current financial challenges[160].

Financial Performance - The company's revenue for Q1 2022 was ¥77,294,902.17, representing a 20.21% increase compared to ¥64,299,188.26 in the same period last year[3] - The net profit attributable to shareholders was -¥5,644,434.34, a decrease of 200.87% from ¥5,595,496.07 in the previous year[3] - The total equity attributable to shareholders decreased by 1.22% to ¥489,143,605.25 from ¥495,162,163.46 at the end of the previous year[3] - Total operating revenue for the first quarter was CNY 77,294,902.17, an increase of 20.2% compared to CNY 64,299,188.26 in the previous year[17] - Net profit for the quarter was a loss of CNY 5,724,300.13, compared to a profit of CNY 5,595,496.07 in the previous year[18] - The total comprehensive income for the first quarter was -6,098,424.00 CNY, compared to 5,550,583.45 CNY in the same period last year[19] Cash Flow - The net cash flow from operating activities was -¥18,416,655.69, down 154.30% from ¥33,914,023.58 in the same period last year[3] - Net cash flow from operating activities was -18,416,655.69 CNY, a significant decline from 33,914,023.58 CNY in the previous year[22] - Cash inflow from investment activities was 145,000,000.00 CNY, compared to 125,474,500.00 CNY in the prior period, resulting in a net cash flow of 31,316,652.72 CNY from investments[22] - Cash and cash equivalents at the end of the period totaled 35,504,406.20 CNY, down from 81,385,973.92 CNY at the end of the previous year[23] - The company reported a decrease in cash received from sales of goods and services, totaling 43,380,147.91 CNY, down from 87,483,286.59 CNY year-over-year[21] - Total cash outflow from operating activities was 63,176,192.39 CNY, compared to 55,109,160.01 CNY in the previous year[22] - The company raised 6,600,000.00 CNY through financing activities, with cash inflow from investments and borrowings[23] Assets and Liabilities - The total assets at the end of the reporting period were ¥781,837,388.91, an increase of 2.09% from ¥765,839,564.96 at the end of the previous year[3] - Current assets totaled CNY 420,975,821.33, slightly up from CNY 417,337,631.56 at the start of the year[14] - Total liabilities increased to CNY 290,973,649.45 from CNY 270,677,401.50 at the beginning of the year[15] - The company reported a significant increase in accounts receivable, which rose to CNY 104,169,986.91 from CNY 89,331,664.45[14] - The company’s fixed assets increased to CNY 269,053,205.97, compared to CNY 250,879,844.02 at the beginning of the year[14] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,861[7] - The largest shareholder, Zou Yuyao, holds 39.74% of the shares, totaling 37,206,385 shares[7] Research and Development - Research and development expenses increased to CNY 7,058,287.58, up 67.5% from CNY 4,208,698.79 year-over-year[18] Other Information - The company received government subsidies amounting to ¥817,767.60 during the reporting period[5] - The company did not conduct an audit for the first quarter report[24] - The company experienced a significant decline in net cash flow from operating activities, indicating potential challenges in revenue generation[22]

Financial Performance - The company's operating revenue for 2021 was approximately ¥248.45 million, a decrease of 3.84% compared to ¥258.38 million in 2020[20]. - The net profit attributable to shareholders for 2021 was a loss of approximately ¥75.01 million, representing a decline of 474.48% from a profit of ¥20.03 million in 2020[20]. - The company reported a basic earnings per share of -¥0.8013 for 2021, a decline of 474.44% from ¥0.2140 in 2020[20]. - The weighted average return on equity was -14.03% for 2021, a decrease of 17.79% compared to 3.76% in 2020[20]. - The company's total revenue for 2021 was approximately ¥248.45 million, a decrease of 3.84% compared to ¥258.38 million in 2020[49]. - The revenue from superhard material products accounted for 97.74% of total revenue, totaling approximately ¥242.83 million, down 3.72% from ¥252.21 million in 2020[49]. - The company reported a non-recurring net profit of -80.96 million yuan, down 588.42% year-on-year[42]. - The company achieved operating revenue of 248.45 million yuan, a year-on-year decrease of 3.84%[42]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to approximately ¥103.26 million, an increase of 975.04% compared to a negative cash flow of ¥11.80 million in 2020[20]. - The total assets of the company decreased by 17.34% to approximately ¥765.84 million at the end of 2021, down from ¥926.51 million at the end of 2020[20]. - The company's net assets attributable to shareholders decreased by 13.86% to approximately ¥495.16 million at the end of 2021, compared to ¥574.86 million at the end of 2020[20]. - The company's cash and cash equivalents decreased by CNY 48,914,162.70, showing a 12.96% improvement compared to the previous year[63]. - The inventory increased by 4.56% to CNY 91,915,783.14, mainly due to an increase in finished products and raw materials[66]. Market and Industry Trends - The photovoltaic industry saw a record installation of 55 GW in 2021, with expectations to reach 75-90 GW in 2022, indicating strong market growth[31]. - The demand for diamond wire, used in cutting silicon materials, is projected to reach 100 million kilometers in 2022, reflecting increased demand in the photovoltaic sector[31]. - The semiconductor industry has shown remarkable growth, and the company anticipates strong sales for its diamond tools used in this sector[83]. - The company aims to enhance its market share in silicon slicing wire and expand into new applications such as magnetic materials and glass cutting[83]. Research and Development - The company has accumulated 72 authorized patents, including 18 invention patents, and has 18 additional patents under application[35]. - R&D investment reached ¥24.21 million, accounting for 9.75% of revenue, reflecting a 39.89% increase year-on-year despite revenue decline[47]. - The R&D department is currently working on 5 new patents, focusing on advanced materials technology[110]. - The company plans to launch several new products, including a high-precision diamond cutting blade, which is expected to enhance market competitiveness and revenue[59]. Strategic Initiatives - The company plans to enhance cost control and expand into the semiconductor market to improve its competitive position[5]. - The company aims to improve product quality and reduce manufacturing costs through ongoing technological upgrades and talent acquisition[47]. - The company plans to replace imported equipment with domestic silicon wafer cutting equipment to enhance production capacity and market share[46]. - The company has established a new subsidiary, Jiangsu Sanjing Semiconductor Materials Co., Ltd., focusing on diamond tools for semiconductor wafer processing[37]. Governance and Compliance - The company has implemented a robust internal control system and governance structure, ensuring compliance with relevant laws and regulations[92]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards[93]. - The company actively engages with investors through various channels, enhancing communication and transparency[96]. - The company has established an independent financial accounting department with a standardized financial accounting system, ensuring independent financial decision-making[99]. Shareholder and Remuneration Policies - The company emphasizes a stable profit distribution policy, prioritizing cash dividends over stock dividends when conditions allow[130]. - The company reported a total distributable profit of 108,055,296.72 CNY, with a cash dividend amount of 0 CNY, resulting in a cash dividend ratio of 0.00%[135]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 491.57 million RMB[115]. - The company aims to align executive bonuses with the achievement of annual operational goals and assessment plans[113]. Risks and Challenges - The company acknowledges potential risks in its future development and encourages investors to be aware of these risks[5]. - The company faces risks related to rising raw material prices, which have increased significantly since the second half of 2020, impacting profit margins[87]. - The competitive landscape in the diamond wire industry is intensifying, which may lead to price and margin pressures[85]. Employee and Operational Insights - The total number of employees at the end of the reporting period was 691, with 162 in the parent company and 529 in major subsidiaries[126]. - The company implemented a salary adjustment plan for 2021 based on operational performance and employee capabilities, aiming to enhance recruitment efficiency[127]. - The training plan for the year was completed successfully, focusing on improving skills in various areas including production management and quality control[129].

Revenue and Profitability - The company's revenue for Q1 2022 was ¥77,294,902.17, representing a 20.21% increase compared to ¥64,299,188.26 in the same period last year[4] - The net profit attributable to shareholders was a loss of ¥5,644,434.34, a decline of 200.87% from a profit of ¥5,595,496.07 in the previous year[4] - The total operating revenue for the first quarter was CNY 77,294,902.17, an increase of 20.2% compared to CNY 64,299,188.26 in the previous year[18] - Net profit for the quarter was a loss of CNY 5,724,300.13, compared to a profit of CNY 5,595,496.07 in the previous year[19] - The total comprehensive income for the first quarter was -6,098,424.00 CNY, compared to 5,550,583.45 CNY in the same period last year[20] Cash Flow - The net cash flow from operating activities was negative at ¥18,416,655.69, a decrease of 154.30% compared to ¥33,914,023.58 in the same period last year[4] - Cash inflow from operating activities was 44,759,536.70 CNY, down from 89,023,183.59 CNY year-over-year[22] - The net cash flow from operating activities was -18,416,655.69 CNY, compared to 33,914,023.58 CNY in the same period last year[23] - Cash inflow from investment activities was 145,000,000.00 CNY, an increase from 125,474,500.00 CNY year-over-year[23] - The net cash flow from investment activities was 31,316,652.72 CNY, compared to -14,020,289.94 CNY in the previous year[23] - Cash inflow from financing activities totaled 6,600,000.00 CNY, with a net cash flow of 6,565,960.00 CNY, compared to -1,465,229.99 CNY last year[24] - The ending cash and cash equivalents balance was 35,504,406.20 CNY, down from 81,385,973.92 CNY year-over-year[24] Assets and Liabilities - The total assets at the end of the reporting period were ¥781,837,388.91, an increase of 2.09% from ¥765,839,564.96 at the end of the previous year[4] - The company's total assets reached CNY 781,837,388.91, compared to CNY 765,839,564.96 at the beginning of the year, reflecting a growth of 2.5%[16] - Current assets totaled CNY 420,975,821.33, slightly up from CNY 417,337,631.56 at the start of the year[16] - Total liabilities increased to CNY 290,973,649.45 from CNY 270,677,401.50, marking a rise of 7.5%[16] Shareholder Equity and Earnings - The equity attributable to shareholders decreased by 1.22% to ¥489,143,605.25 from ¥495,162,163.46 at the end of the previous year[4] - The basic earnings per share were -¥0.0603, compared to ¥0.0598 in the same period last year, reflecting a decline of 200.84%[4] - The diluted earnings per share were also -¥0.0603, down 210.64% from ¥0.0545 in the previous year[4] - Basic and diluted earnings per share were both -0.0603 CNY, a decrease from 0.0598 CNY and 0.0545 CNY respectively in the previous year[20] - The weighted average return on equity was -1.15%, a decrease of 2.12% from 0.97% in the same period last year[4] Expenses - Total operating costs rose to CNY 85,667,008.64, up 46.1% from CNY 58,622,744.76 in the same period last year[18] - Research and development expenses increased to CNY 7,058,287.58, up 67.5% from CNY 4,208,698.79 year-over-year[19] Other Information - The company reported non-recurring gains and losses totaling ¥739,570.17 for the period[6] - The company did not have any other non-recurring gains or losses that met the definition criteria[6] - The company reported a significant increase in accounts receivable, which rose to CNY 104,169,986.91 from CNY 89,331,664.45, a growth of 16.6%[15] - Inventory levels increased to CNY 97,617,856.73, up from CNY 91,915,783.14, indicating a growth of 6.1%[15] - The company has not undergone an audit for the first quarter report[25]

Financial Performance - The company's profit significantly declined in 2021 due to a drop in diamond wire product prices, rising raw material costs, and substantial asset impairment provisions[5]. - The company's operating revenue for 2021 was ¥248,452,404.38, a decrease of 3.84% compared to ¥258,379,491.43 in 2020[20]. - The net profit attributable to shareholders was -¥75,010,965.42, representing a decline of 474.48% from ¥20,030,740.07 in the previous year[20]. - The net cash flow from operating activities improved significantly to ¥103,263,132.95, a 975.04% increase from -¥11,800,942.86 in 2020[20]. - The total assets at the end of 2021 were ¥765,839,564.96, down 17.34% from ¥926,506,270.11 at the end of 2020[20]. - The company reported a basic earnings per share of -¥0.8013, a decrease of 474.44% compared to ¥0.2140 in 2020[20]. - The net profit after deducting non-recurring gains and losses was -¥80,956,660.14, a decline of 588.42% from ¥16,575,322.80 in 2020[20]. - The weighted average return on net assets was -14.03%, a decrease of 17.79% from 3.76% in the previous year[20]. - The company achieved operating revenue of 248.45 million yuan, a year-on-year decrease of 3.84%, and a net profit attributable to shareholders of -75.01 million yuan, down 474.48% year-on-year[42]. Market and Industry Outlook - The demand for diamond wire, used in silicon wafer cutting, is expected to reach 100 million kilometers in 2022 due to the growth in the photovoltaic industry[30]. - The photovoltaic industry saw a record addition of 55 GW of new capacity in 2021, with expectations to reach 75-90 GW in 2022[30]. - The company faced significant pressure on product prices due to intense competition and plans for capacity expansion among peers in the diamond wire production sector[30]. - The semiconductor industry has shown remarkable growth, and the company anticipates strong sales for its diamond tools used in this sector[83]. - The company aims to increase the production capacity of silicon slicing wire to 10 million kilometers per year, with a focus on domestic equipment procurement to replace Japanese machinery[82]. Research and Development - The company focuses on the research, production, and sales of diamond and cubic boron nitride tools, aiming to become a leading supplier of precision superhard material products in China[32]. - The company has accumulated 72 authorized patents, including 18 invention patents, and has established a comprehensive patent system in diamond wire and diamond grinding wheels[35]. - R&D expenses amounted to 24.21 million yuan, representing 9.75% of operating revenue, an increase of 39.89% year-on-year, supporting ongoing technological innovation[47]. - The company is developing several new products, including a metal bond soft blade and high-precision diamond hard blades, aimed at enhancing market competitiveness[60]. - The company plans to upgrade its production lines, targeting a 30% increase in production speed and stable product quality[60]. Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management[4]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operation from the controlling shareholder[92]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with governance standards[93]. - The company has implemented a performance evaluation and incentive mechanism that aligns with its development status[95]. - The company actively engages with investors through various channels, enhancing communication and transparency[96]. Risk Management - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments to mitigate investment risks[5]. - The company faces risks from intensified market competition, which could lead to price and margin pressures on its products[85]. - The company faces risks related to rising raw material prices, which have increased significantly since the second half of 2020, impacting profit margins[87]. Subsidiaries and Expansion - The company has a wholly-owned subsidiary, Jiangsu Sanchao Diamond Tool Co., Ltd.[13]. - A new subsidiary, Jiangsu Sanjing Semiconductor Materials Co., Ltd., was established to develop and sell diamond tools for semiconductor wafer processing, with some products already in small-scale sales[37]. - The company established a new subsidiary, Jiangsu Sanjing Semiconductor Materials Co., Ltd., with a registered capital of 50 million RMB[158]. Profit Distribution and Financial Policies - No cash dividends, stock bonuses, or capital increases from reserves will be distributed for the year[6]. - The company reported a total distributable profit of 108,055,296.72 CNY, with a cash dividend amount of 0 CNY, resulting in a cash dividend ratio of 0.00%[135]. - The company plans to prioritize cash distribution of profits, with a minimum of 10% of distributable profits to be distributed in cash if no major investments or cash expenditures occur[131]. - The company has established a long-term stable profit distribution policy to provide reasonable returns to investors[147]. Employee and Talent Management - The total number of employees at the end of the reporting period was 691, with 162 in the parent company and 529 in major subsidiaries[126]. - The company implemented a salary adjustment plan for 2021, focusing on performance and competency, which successfully attracted talent[127]. - The company emphasizes talent development and employee rights, providing competitive compensation and a safe working environment[148]. Environmental and Social Responsibility - The company has established a comprehensive wastewater treatment system and air pollution control measures, meeting national environmental standards[145]. - The company actively engages in social responsibility, ensuring fair treatment of shareholders and employees, and maintaining transparency in operations[147]. - The company has not been listed as a key pollutant discharge unit by environmental authorities in 2021[146]. Financial Management and Reporting - The company has no major internal control deficiencies as of December 31, 2021, indicating effective management and compliance[139]. - The company reported zero significant defects in financial reporting for the year 2021[142]. - The current domestic accounting firm, Tianheng Accounting Firm, has been engaged for 8 consecutive years, with an audit fee of 600,000 RMB[159].

Financial Performance - The company's revenue for Q3 2021 was ¥59,843,258.79, a decrease of 6.49% compared to the same period last year[4] - The net profit attributable to shareholders was ¥478,281.65, down 95.55% year-on-year, while the net profit after deducting non-recurring gains and losses was -¥1,481,998.45, a decline of 115.47%[4] - Total operating revenue for Q3 2021 was CNY 187.52 million, a decrease of 4.4% compared to CNY 195.88 million in Q3 2020[24] - Net profit for Q3 2021 was CNY 11.16 million, down 52.9% from CNY 23.66 million in Q3 2020[26] - Basic earnings per share for Q3 2021 were CNY 0.1193, down from CNY 0.2528 in Q3 2020[27] - The weighted average return on equity was 0.08%, down 1.96% year-on-year[4] Cash Flow - The operating cash flow for the year-to-date period reached ¥110,737,281.79, representing a significant increase of 910.31%[4] - The net cash flow from operating activities was 110,737,281.79, a significant improvement compared to the previous period's negative cash flow of -13,666,031.80[30] - Cash inflow from operating activities totaled 273,815,924.45, up from 203,141,293.69 in the previous period, indicating a growth of approximately 34.6%[30] - Cash outflow from operating activities decreased to 163,078,642.66 from 216,807,325.49, reflecting a reduction of about 24.8%[30] - The net cash flow from investment activities was -79,818,166.04, worsening from -9,468,087.77 in the previous period[31] - Cash inflow from investment activities surged to 407,801,232.41, compared to 30,197,086.64 in the previous period, marking an increase of over 1,250%[30] - Total cash outflow from investment activities increased to 487,619,398.45 from 39,665,174.41, indicating a rise of approximately 1,227%[30] - The net cash flow from financing activities was -82,326,038.80, a decline from a positive cash flow of 53,575,124.82 in the previous period[31] Assets and Liabilities - Total assets at the end of the reporting period were ¥835,249,404.56, a decrease of 9.85% from the end of the previous year[5] - The company's total assets decreased to CNY 835.25 million from CNY 926.51 million at the end of the previous period[24] - Total liabilities decreased to CNY 252.16 million, down from CNY 351.65 million in the previous year[24] - The company's cash and cash equivalents were not explicitly stated but total current assets decreased to CNY 425.68 million from CNY 511.67 million[24] Shareholder Information - Total number of common shareholders at the end of the reporting period is 11,225[14] - The largest shareholder, Zou Yuyao, holds 39.74% of shares, totaling 37,206,385 shares[14] - The company has a total of 40,776,432 restricted shares at the end of the reporting period[17] - Zou Yuyao's restricted shares remain unchanged at 27,904,789 due to executive lock-up[17] Research and Development - The company's R&D expenses increased to ¥15,817,067.81, reflecting a growth of 39.74% compared to the same period last year[11] - Research and development expenses rose to CNY 15.82 million, an increase of 39.5% compared to CNY 11.32 million in the previous year[24] Other Information - The company has disclosed significant events on the Giant Tide Information Network for investor reference[18] - The company has completed the board and supervisory board elections in May 2021[19] - The company is subject to regulations regarding the transfer of shares by departing executives, limiting them to 25% of their holdings annually[17] - The company reported a credit impairment loss of CNY 1.71 million, compared to a loss of CNY 1.52 million in the previous year[26] - Other comprehensive income showed a loss of CNY 0.85 million, compared to a loss of CNY 0.015 million in the same period last year[27] - The company reported cash and cash equivalents of ¥26,602,534.09 as of September 30, 2021, down from ¥75,410,763.79 at the end of 2020[21] - Trading financial assets increased to ¥138,000,000.00 from ¥95,474,500.00 year-over-year[21] - Accounts receivable decreased to ¥81,890,128.20 from ¥100,827,438.07 year-over-year[21]

Financial Performance - The company's operating revenue for the reporting period was ¥127,677,857.81, a decrease of 3.19% compared to the same period last year[32]. - The net profit attributable to shareholders was ¥10,685,195.14, down 17.23% year-on-year[32]. - The net profit after deducting non-recurring gains and losses was ¥9,584,888.77, reflecting a decline of 16.97% compared to the previous year[32]. - The total assets at the end of the reporting period were ¥865,112,185.56, a decrease of 6.63% from the end of the previous year[32]. - The company's financial expenses decreased by 42.15% to ¥1.39 million, mainly due to reduced bank loan interest expenses[49]. - The company's total equity at the end of the reporting period was ¥582,155,802.72, showing a slight increase from ¥574,855,917.08 at the end of the previous year[158]. - The company's cash and cash equivalents rose to ¥107,501,120.32 from ¥75,410,763.79, marking an increase of 42.6%[155]. - The company's total liabilities decreased by 19.5% from ¥351,650,353.03 to ¥282,956,382.84, indicating improved financial stability[157]. Customer Concentration and Market Risks - The company's revenue from the top five customers accounted for 52.22% of total sales, indicating a high customer concentration risk[10]. - The company is exposed to fluctuations in downstream market demand, particularly in the photovoltaic and magnetic materials sectors[8]. - The company reported a risk of declining product prices and gross margins due to intensified market competition in the diamond wire industry[7]. - The company faced price and sales volume declines in silicon wafer diamond wire due to increased competition and cost pressures in the photovoltaic industry[39]. - The company emphasized the importance of technological advancements and product quality to maintain competitiveness in the rapidly evolving market[13]. Production and Operational Challenges - The production costs were impacted by significant increases in raw material prices, which could further squeeze profit margins if prices continue to rise[14]. - The company faced risks related to the performance of equipment suppliers for its fundraising projects, which could delay production[15]. - The company has experienced challenges in meeting acceptance standards for equipment due to COVID-19, affecting production timelines[15]. - The company has implemented procurement and supplier management procedures to ensure quality and control costs[40]. - The company has implemented cost control measures to mitigate the impact of rising raw material prices on production costs[76]. Research and Development - Research and development expenses increased by 23.14% to ¥8.57 million, reflecting the company's commitment to innovation[49]. - The company has accumulated a total of 71 authorized patents, including 17 invention patents, enhancing its competitive edge in diamond tool technology[41]. - The company is committed to continuous technological advancement to improve production efficiency and product quality, aiming to enhance core competitiveness[72]. Cash Flow and Financing Activities - The net cash flow from operating activities was ¥92,651,090.65, a significant increase of 3,301.95% compared to the same period last year[32]. - The company raised a total of ¥195,000,000.00 through convertible bonds, with a net amount of ¥188,377,830.19 after deducting issuance costs[59]. - The company has temporarily used idle raised funds to purchase financial products amounting to ¥100,000,000.00 as of June 30, 2021[62]. - The company reported a tax expense of ¥583,849.76 for the first half of 2021, compared to a tax benefit of -¥447,754.67 in the first half of 2020[168]. Shareholder and Equity Information - The total share capital as of June 30, 2021, was 93,612,501 shares, with convertible bonds available for conversion into shares since February 1, 2021[31]. - The number of restricted shares held by insiders increased from 38,455,879 to 40,776,432, representing a rise from 41.09% to 43.56% of total shares[127]. - Major shareholder Zou Yuyao holds 39.75% of shares, totaling 37,206,385 shares[130]. - The company distributed a cash dividend of 0.4 RMB per 10 shares to all shareholders[144]. Compliance and Governance - The company does not belong to the list of key pollutant discharge units and has not faced any administrative penalties for environmental issues during the reporting period[88]. - The company has established comprehensive wastewater and waste gas treatment systems, meeting national pollution discharge standards[88]. - There were no significant lawsuits or arbitration matters during the reporting period, with only minor cases involving a total amount of 642,900 RMB[99]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[94]. Future Outlook and Strategic Plans - The company plans to not distribute cash dividends or issue bonus shares for the reporting period[17]. - The company plans to invest in a project to produce 10 million km of diamond wire saws, with a total commitment of ¥18,337.78 million, of which ¥693.23 million has been invested, achieving 44.55% of the planned progress[60]. - The company plans to strengthen credit risk management and enhance collection efforts to minimize bad debt risks[74]. - The company plans to continue focusing on market expansion and new product development to drive future growth[163].

Financial Performance - The company's revenue for Q1 2021 was ¥64,299,188.26, representing a 4.89% increase compared to ¥61,299,603.82 in the same period last year[8]. - Net profit attributable to shareholders was ¥5,595,496.07, a significant increase of 142.01% from ¥2,312,083.90 year-on-year[8]. - The net profit after deducting non-recurring gains and losses was ¥5,117,520.13, up 158.17% from ¥1,982,223.56 in the previous year[8]. - Basic earnings per share increased to ¥0.0598, up 142.11% from ¥0.0247 in the previous year[8]. - Total operating revenue for Q1 2021 was CNY 64,299,188.26, an increase from CNY 61,299,603.82 in the previous period[52]. - Net profit for Q1 2021 reached CNY 5,595,496.07, compared to CNY 2,312,083.90 in the same period last year, representing a growth of 142.5%[54]. - Operating profit reached CNY 2,572,557.11, contrasting with an operating loss of CNY 1,576,843.54 in the previous year[58]. - The total profit amounted to CNY 2,430,577.45, compared to a total loss of CNY 1,702,893.38 in the prior year[58]. Cash Flow and Assets - The net cash flow from operating activities was ¥33,914,023.58, a remarkable turnaround from a negative cash flow of ¥12,664,272.63 in the same period last year, marking a 367.79% improvement[8]. - Cash flow from operating activities generated a net amount of CNY 33,914,023.58, recovering from a negative cash flow of CNY 12,664,272.63 in the same quarter last year[62]. - The company's cash and cash equivalents increased to CNY 96,953,656.35 from CNY 75,410,763.79, representing a growth of approximately 28.5%[44]. - The ending balance of cash and cash equivalents was 29,391,607.41 CNY, down from 34,068,205.75 CNY at the beginning of the period[66]. - The total amount of raised funds is CNY 18,837.78 million, with CNY 693.23 million invested in the current quarter[35]. - Cumulative investment of raised funds reached CNY 8,669.95 million, with a project completion rate of 44.55% for the annual production of 10 million km ultra-fine diamond wire saws[35]. Shareholder Information - The company reported a total of 11,436 common shareholders at the end of the reporting period[12]. - The top shareholder, Zou Yuyao, holds 39.75% of the shares, amounting to 37,206,385 shares[12]. - Net assets attributable to shareholders rose to ¥580,406,500.53, reflecting a 0.97% increase from ¥574,855,917.08 at the end of the previous year[8]. Operational Challenges and Strategies - The company faced delays in the "annual production of 10 million km ultra-fine diamond wire saw production project" due to equipment commissioning issues caused by the COVID-19 pandemic[21]. - The company plans to enhance production efficiency and product quality to mitigate risks from intensified market competition and price declines[25]. - The company will focus on controlling operational risks and improving product competitiveness through continuous technological advancements and new product development[26]. - The company is actively enhancing credit policy management and monitoring customer financial conditions to mitigate accounts receivable risks[28]. - The company is facing potential delays in production due to equipment commissioning issues with a supplier, which may affect project timelines[30]. - The company plans to strengthen internal cost control measures to counteract rising raw material costs[29]. Market and Customer Insights - The top five customers accounted for 60.51% of total sales revenue, indicating a high market concentration risk[27]. - The top five suppliers' total procurement amount decreased by 9.05% to 15.65 million yuan, accounting for 37.21% of total procurement[23]. - The top five customers' total sales decreased by 10.03% to 39.04 million yuan, representing 60.72% of total sales[23]. - The company has a proactive approach to maintaining relationships with key customers and developing new ones to mitigate client-related risks[27]. Research and Development - The company reported a significant increase in research and development expenses, totaling CNY 4,208,698.79, compared to CNY 3,476,780.98 in the previous year[53]. - The company is committed to continuous technological advancements to improve product performance and quality, addressing the risk of rapid product obsolescence[29]. - The company is actively working on new product development and technology advancements in the ultra-fine diamond wire saw sector[35]. Compliance and Governance - The company has committed to ensuring investor protection and will compensate for any losses caused by false statements in the prospectus[33]. - The company has fulfilled its commitments to minority shareholders as of the reporting date[34]. - There were no violations regarding external guarantees during the reporting period[37]. - The company did not report any non-operating fund occupation by controlling shareholders or related parties during the reporting period[38].

Revenue and Profitability - The company's operating revenue for 2020 was CNY 258,379,491.43, representing a 15.02% increase compared to CNY 224,634,480.36 in 2019[28]. - The net profit attributable to shareholders for 2020 was CNY 20,030,740.07, a significant increase of 103.26% from CNY 9,854,638.28 in 2019[28]. - The net profit after deducting non-recurring gains and losses was CNY 16,575,322.80, reflecting a 165.57% increase from CNY 6,241,461.46 in 2019[28]. - The company achieved a revenue of 258.38 million yuan in 2020, representing a year-on-year growth of 15.02%[49]. - Net profit attributable to shareholders reached 20.03 million yuan, a significant increase of 103.26% compared to the previous year[49]. - The sales revenue of diamond wire products grew by 20.06% to 218.37 million yuan, contributing positively to overall performance[55]. Accounts Receivable and Cash Flow - As of December 31, 2020, accounts receivable amounted to 114.55 million RMB, representing 44.33% of sales revenue, an increase of 26.16% from the beginning of the year[12]. - The company emphasized the need for effective management of accounts receivable to mitigate collection risks[13]. - The company experienced a net cash flow from operating activities of CNY -11,800,942.86 in 2020, a decrease of 117.93% compared to CNY 65,814,628.86 in 2019[28]. - Operating cash inflows decreased by 27.19% to ¥223,001,068.61, while cash outflows decreased by 2.36% to ¥234,802,011.47[71]. - The net increase in cash and cash equivalents was -¥56,194,956.95, reflecting a 170.79% decline compared to the previous year[71]. Market and Competition - The company noted a risk of declining product prices and gross margins due to intensified market competition in the diamond wire industry[7]. - The company acknowledged potential adverse impacts from fluctuations in downstream market demand, particularly in the photovoltaic and sapphire industries[10]. - The company faced risks from rising raw material prices, which impacted production costs and profit margins[15]. - The company is focused on expanding its market presence in emerging applications such as magnetic materials and glass cutting[92]. Research and Development - The company is focused on expanding its market presence and enhancing product offerings through ongoing research and development efforts[10]. - The company has accumulated 66 authorized patents, including 17 invention patents, establishing a comprehensive patent system in diamond wire and diamond grinding wheel products[42]. - The company has initiated the development of precision diamond grinding wheels for semiconductor applications, targeting completion of product trials in 2021[92]. - The company will maintain a high level of R&D investment, focusing on improving production efficiency and product quality, particularly in diamond wire and grinding wheel technologies[93]. Production and Operational Challenges - The company experienced delays in equipment commissioning due to COVID-19, affecting the production schedule of the new diamond wire saw production line[17]. - The annual production project of 1 million km diamond wire saw did not meet expected returns due to market competition and price declines, resulting in a gross profit drop[84]. - Equipment supply risks have arisen due to delays in equipment commissioning from Nakamura Superhard, affecting the production timeline of the project aimed at producing 10 million km of ultra-fine diamond wire annually[97]. - The company improved production efficiency by nearly 30% through technological upgrades, leading to a significant reduction in production costs[51]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of 0.4 RMB per 10 shares (including tax) to all shareholders[17]. - The total cash dividend amount (including other methods) for the reporting period is CNY 3,744,372.48, which accounts for 18.69% of the net profit attributable to ordinary shareholders[111]. - The cash dividend payout ratio for 2020 is 100% of the profit distribution total[109]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditure phases[109]. Environmental and Social Responsibility - The company has established comprehensive wastewater treatment systems and air pollution control facilities, meeting the relevant environmental discharge standards[152]. - The company has implemented an emergency response plan for environmental incidents, with regular drills conducted annually[154]. - The company emphasizes compliance with environmental regulations and has completed environmental impact assessments as required[153]. - The company has actively fulfilled its social responsibilities, ensuring transparency and fairness in its operations and communications with investors[146]. Financial Position and Investments - The company's total assets at the end of 2020 were CNY 926,506,270.11, a slight increase of 0.44% from CNY 922,417,241.13 at the end of 2019[28]. - The company reported a total investment commitment of CNY 35,509.78 million, with actual investment of CNY 24,955.74 million, achieving 70.3% of the planned investment[84]. - The company has not reported any significant changes in the measurement attributes of its main assets during the reporting period[77]. - The company has not made any significant related party transactions during the reporting period[127]. Employee and Management Structure - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 3.6149 million[195]. - The company employed a total of 570 staff, with 131 in the parent company and 439 in major subsidiaries[196]. - The company plans to continue enhancing its training programs in 2021, focusing on skill development and management training to improve overall employee capabilities[199]. - The company has a commitment from its directors and senior management to release 25% of their restricted shares annually based on the previous year's holdings[162].