Financial Performance - The company achieved a net profit of 15 million yuan in 2020, meeting the performance commitment for the acquisition of 100% equity in Gaoshi Electric Research[12]. - The company's operating revenue for 2020 was CNY 543,961,732.98, representing a 19.52% increase from CNY 455,112,179.64 in 2019[32]. - The net profit attributable to shareholders for 2020 was CNY 56,830,528.78, a 50.20% increase compared to CNY 37,837,085.18 in 2019[32]. - The basic earnings per share for 2020 was CNY 0.36, reflecting a 50.00% increase from CNY 0.24 in 2019[32]. - The total revenue for 2020 was approximately ¥543.96 million, representing a year-over-year increase of 19.52% from ¥455.11 million in 2019[120]. - The electronic chemicals segment accounted for ¥542.54 million, or 99.74% of total revenue, with a growth of 19.77% compared to the previous year[120]. - PCB ink sales reached ¥504.46 million, making up 92.74% of total revenue, with a year-over-year increase of 20.02%[120]. - The company reported a total profit of 1,991,269.66 in the current period, compared to 1,224,169.02 in the previous period, indicating a significant increase[41]. R&D and Product Development - The company is focused on developing mid-to-high-end photoresists, facing challenges in technology and funding during the R&D process[8]. - The company is committed to increasing R&D investment to enhance product development capabilities and maintain competitive advantages[8]. - The company has a strong R&D team with nearly 20 years of experience in solder mask ink development, positioning it at a world-class level in product R&D technology[107]. - The company launched 5 new invention patents during the reporting period, enhancing its technological portfolio[84]. - The company is actively developing new products, including high-resolution chip-specific photoresists, in collaboration with academic institutions[110]. - The company has successfully launched several products, including liquid photosensitive solder mask ink and specialty inks, which are tailored for specific customer needs[110]. - The company aims to enhance its product offerings and market expansion efforts, particularly focusing on photoresist, which is identified as a key growth area[103]. Market and Industry Position - The company specializes in the research, production, and sales of electronic chemicals, including PCB photosensitive inks and photoresists, which are critical for the electronics industry[44]. - The PCB ink market is expected to grow continuously, driven by the development of the information technology infrastructure and urbanization in China[69]. - The demand for photoresists is anticipated to increase significantly with the growth of integrated circuits and display technologies[70]. - The company has established long-term stable partnerships with major domestic PCB manufacturers, enhancing its market position[77]. - The company has established a comprehensive market marketing system and maintains long-term stable partnerships with several well-known PCB manufacturers in China[61]. Financial Commitments and Shareholder Returns - The company plans to distribute a cash dividend of 0.8 yuan per 10 shares, with a capital reserve conversion of 2 shares for every 10 shares held[13]. - The company announced a cash dividend of RMB 0.80 per 10 shares, totaling RMB 12,540,267.92 for the year 2020, which represents 22.07% of the net profit attributable to ordinary shareholders[187][193]. - The total distributable profit for the year was RMB 233,785,255.79, with the cash dividend amounting to 100% of the total profit distribution[191]. - The company has a history of consistent dividend payments, with cash dividends of RMB 1.00, RMB 0.70, and RMB 0.80 per 10 shares in the years 2018, 2019, and 2020 respectively[192]. Acquisitions and Goodwill - The company reported a goodwill of 128,117,613.97 yuan following the acquisition of Gaoshi Electric Research, which will be subject to annual impairment testing[13]. - The company completed the acquisition of Guangdong Gaoshi Electric Research Technology Co., Ltd. on December 28, 2020, acquiring 100% equity[131]. - The target company achieved a net profit of CNY 28.27 million in 2020, exceeding the performance commitment of CNY 15 million[164]. Operational Efficiency and Management - The company plans to fully implement the ERP system across all modules to enhance operational efficiency and management capabilities[175]. - The company is committed to enhancing its internal organizational structure and decision-making processes to improve operational efficiency and employee motivation[179]. - The company emphasizes the importance of optimizing corporate governance and enhancing management capabilities to improve competitiveness and cohesion[104]. Risks and Challenges - The company has a significant reliance on raw materials, with resin and photoinitiators experiencing notable price fluctuations, impacting production stability and profitability[9]. - The company faces risks related to the concentration of its product application fields, which may affect operational performance during economic downturns[7]. - The company acknowledges the risk of underperformance in meeting the promised financial targets from acquisitions, which could impact shareholder interests[12]. Environmental and Compliance Efforts - The company is actively involved in environmental compliance, with valid permits for pollution discharge until June 10, 2025[116]. - The company has obtained various certifications, including ISO9001 and ISO14001, with validity extending into 2021[116]. - The company has committed to developing environmentally friendly products in response to increasing regulatory requirements[168].

Financial Performance - Operating revenue for the period was ¥143,321,782.61, representing a year-on-year growth of 22.20%[8] - Net profit attributable to shareholders was ¥18,360,136.98, a significant increase of 134.70% year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥18,258,026.38, up 136.26% compared to the same period last year[8] - Basic earnings per share were ¥0.12, reflecting a growth of 140.00% year-on-year[8] - The weighted average return on net assets was 3.77%, an increase of 115.43% compared to the previous year[8] - Net profit rose by 56.70% to ¥41,185,090.14 driven by business growth and stable gross margin[19] - The total operating revenue for the current period is approximately CNY 143.43 million, an increase of 25.2% compared to CNY 114.65 million in the previous period[63] - The net profit for the current period is CNY 18.36 million, representing a significant increase of 134.5% from CNY 7.82 million in the previous period[59] - The basic and diluted earnings per share for the current period are both CNY 0.12, up from CNY 0.05 in the previous period[63] - Operating profit for the current period is CNY 20.40 million, an increase of 85.5% compared to CNY 10.99 million in the previous period[59] - The total comprehensive income for the current period is CNY 18.36 million, compared to CNY 7.82 million in the previous period[59] Assets and Liabilities - Total assets at the end of the reporting period reached ¥770,404,089.58, an increase of 8.65% compared to the end of the previous year[8] - The total liabilities rose to CNY 274,200,885.48, compared to CNY 245,630,982.01, indicating an increase of about 11.6% year-over-year[41] - The total equity attributable to shareholders increased to CNY 496,203,204.10 from CNY 463,418,114.46, reflecting a growth of approximately 7.1% year-over-year[44] - Accounts receivable rose to ¥212,876,377.51, up from ¥196,318,670.08, indicating increased sales[35] - The cash and cash equivalents rose to CNY 72,784,377.99 from CNY 55,883,626.29, indicating an increase of about 30.3% year-over-year[45] - The company's fixed assets decreased slightly to CNY 143,492,128.27 from CNY 140,946,687.65, a change of about -0.4% year-over-year[38] - The total current liabilities increased to CNY 270,022,735.76 from CNY 241,126,020.78, reflecting a growth of approximately 12.0% year-over-year[41] Cash Flow - The net cash flow from operating activities was ¥10,169,532.88, an increase of 8.94% year-on-year[8] - Cash received from government subsidies increased by 46.09% to ¥3,802,481.56[20] - Cash inflow from operating activities totaled CNY 158,746,377.79, up from CNY 151,144,374.95, indicating a rise of about 5%[87] - The net cash flow from operating activities decreased to CNY 14,342,996.55 from CNY 20,494,802.12, a decline of approximately 30%[87] - Cash outflow from investing activities was CNY 33,301,543.47, down from CNY 49,162,505.93, showing a reduction of about 32%[90] - The net cash flow from investing activities was negative at CNY -13,293,324.31, compared to CNY -19,133,407.98 in the previous period, an improvement of approximately 30.7%[90] - Cash and cash equivalents at the end of the period were CNY 26,087,211.22, down from CNY 33,599,566.29, a decrease of about 22.4%[90] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 36,757[12] - Major shareholders include Lin Haiwang with a 13.60% stake and Yang Yuchun with a 12.92% stake[12] Expenses - Research and development expenses for the current period are CNY 6.71 million, slightly up from CNY 6.29 million in the previous period[63] - The total operating costs for the current period are CNY 123.28 million, an increase of 16.7% from CNY 105.65 million in the previous period[63] - Tax expenses decreased to ¥5,531,475.26 from ¥8,839,747.27 in the previous period, a reduction of 37.5%[74] - Sales expenses increased to ¥35,580,508.43, up 16.2% from ¥30,598,291.65 in the previous period[71] - Management expenses rose to ¥20,225,578.19, compared to ¥18,799,977.07 in the previous period, marking a 7.6% increase[71] Strategic Developments - The company plans to acquire 100% equity of Guangdong Gaoshi Electric Research Technology Co., Ltd. through issuing shares and convertible bonds[23] - The company received approval from the Shenzhen Stock Exchange for the issuance of shares and convertible bonds for asset acquisition[24] Other Information - The company received government subsidies amounting to ¥1,798,805.89 during the reporting period[8] - The company did not apply new revenue and lease standards for the financial statements starting from 2020, indicating no retrospective adjustments were made[97] - The third quarter report was not audited, which may affect the reliability of the financial data presented[97]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 234,189,274.09, representing a 12.26% increase compared to CNY 208,605,024.03 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was CNY 22,824,953.16, an increase of 23.64% from CNY 18,460,186.66 in the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY 21,373,422.46, up 23.91% from CNY 17,248,744.22 year-on-year[25]. - The basic earnings per share increased by 25.00% to CNY 0.15 from CNY 0.12 in the same period last year[25]. - The company achieved a revenue of 234.19 million yuan, representing a year-on-year growth of 12.26%[65]. - The net profit attributable to shareholders was 22.83 million yuan, an increase of 23.64% compared to the previous year[65]. - Basic earnings per share rose to 0.15 yuan, reflecting a growth of 25.00% year-on-year[65]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 695,539,210.19, a decrease of 1.91% from CNY 709,049,096.47 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company increased by 3.11% to CNY 477,843,067.62 from CNY 463,418,114.46 at the end of the previous year[25]. - Cash and cash equivalents decreased by 39.71% from ¥67.34 million to ¥40.60 million, mainly due to increased cash purchases during the pandemic[49]. - Accounts receivable reached ¥208,509,999.79, accounting for 29.98% of total assets, a decrease of 1.94% from the previous year[84]. - Inventory stood at ¥79,519,126.26, making up 11.43% of total assets, with an increase of 0.28% compared to the previous year[84]. - Long-term equity investments were valued at ¥29,005,318.83, representing 4.17% of total assets, a decrease of 1.38% from the previous year[84]. - Fixed assets totaled ¥144,285,680.92, accounting for 20.74% of total assets, a decrease of 3.90% compared to the previous year[84]. - Total liabilities decreased from 245,630,982.01 to 217,696,142.57, a decline of around 11.4%[199]. Cash Flow - The net cash flow from operating activities was CNY 4,173,463.67, a significant decrease of 62.60% compared to CNY 11,160,191.23 in the same period last year[25]. - The net cash flow from operating activities decreased by 62.60% to approximately ¥4.17 million due to increased raw material procurement payments[80]. - Cash and cash equivalents at the end of the reporting period amounted to ¥40,604,368.89, representing 5.84% of total assets, a decrease of 0.17% compared to the previous year[84]. Research and Development - R&D expenses amounted to 11.81 million yuan, accounting for 5.04% of total revenue[67]. - The company has a dual R&D model, focusing on both independent development and collaboration with external technology resources, including hiring foreign technical experts[40][42]. - The company has developed high-performance inks for LDI applications, which have met customer standards and are now in mass production[66]. - The company is advancing projects for inkjet printing inks and solder mask inks, with core resin synthesis and product formulation already completed[67]. - R&D investment for the period was approximately ¥11.81 million, reflecting a 2.88% increase year-on-year[80]. Market Position and Products - The company's main business focuses on the R&D, production, and sales of electronic chemicals, including PCB photoresist inks and specialty inks, with applications across various sectors such as telecommunications and consumer electronics[35]. - The company's product line includes a complete range of PCB photoresist inks, enhancing its market position and reducing operational risks[56]. - The company anticipates that the demand for high-end materials will continue to diversify and evolve rapidly due to increasing competition and consumer upgrades in the terminal market[48]. - The sales volume of PCB photoresist ink reached 6,704.90 tons, with a year-on-year growth rate of 14.99%[76]. - The gross margin for PCB ink was 29.17%, with a slight increase of 0.12% compared to the previous year[83]. - The company holds approximately 13% market share in the domestic PCB photoresist ink market[76]. Shareholder Information - The total number of shares increased from 120,000,000 to 156,000,000 after a capital increase of 36,000,000 shares through a bonus issue[149]. - As of the end of the reporting period, the total number of ordinary shareholders was 41,978[157]. - The largest shareholder, Lin Haiwang, holds 13.60% of the shares, totaling 20,149,580 shares, with an increase of 4,895,632 shares during the reporting period[157]. - The second-largest shareholder, Yang Yuchun, holds 12.92% of the shares, totaling 20,149,580 shares, with an increase of 4,649,905 shares during the reporting period[157]. - The company has a total of 78,860,178 restricted shares after the recent changes[153]. Risks and Challenges - The company faces risks related to concentrated product application areas, new product development, market competition, and fluctuations in raw material prices[6]. - Raw materials accounted for over 93% of the company's main business costs during the reporting period, highlighting the impact of raw material price fluctuations on profitability[102]. Legal and Compliance - The company reported a total of 240.54 million yuan involved in litigation matters during the reporting period, with no expected liabilities formed[115]. - The company successfully won lawsuits against Shenzhen Huaxiang Rongzheng Electronics Co., Ltd. and Wuping Tongcheng Electronics Technology Co., Ltd., recovering approximately 12 million yuan in some cases[112]. - The company has not engaged in any significant asset or equity sales during the reporting period[91]. - There were no significant penalties or rectifications imposed on the company during the reporting period[117]. - The company has not reported any major environmental protection issues and is not classified as a key pollutant discharge unit[135].

Financial Performance - The company's operating revenue for 2019 was ¥455,112,179.64, representing a 7.58% increase compared to ¥423,039,858.12 in 2018[32]. - The net profit attributable to shareholders for 2019 was ¥37,837,085.18, a decrease of 10.21% from ¥42,139,729.97 in 2018[32]. - The net profit after deducting non-recurring gains and losses was ¥36,612,916.16, which is a 2.55% increase from ¥35,701,650.11 in 2018[32]. - The total assets at the end of 2019 were ¥709,049,096.47, showing a significant increase of 32.22% from ¥536,261,365.68 at the end of 2018[32]. - The basic earnings per share for 2019 was ¥0.32, down 8.57% from ¥0.35 in 2018[32]. - The company reported a net cash flow from operating activities of ¥14,312,789.04, which is a 2.74% increase compared to ¥13,931,147.26 in 2018[32]. - The company received government subsidies amounting to ¥1,640,392.53 in 2019, down from ¥5,378,845.55 in 2018[38]. - The company achieved a revenue of CNY 455.11 million in 2019, representing a year-on-year growth of 7.58%[84]. - The net profit attributable to shareholders decreased by 10.21% year-on-year, amounting to CNY 37.84 million[84]. - The company maintained a market share of approximately 13% in the PCB photoresist market, with sales volume increasing by 12.06% to 13,484.75 tons[86]. Research and Development - The company emphasizes the need for continuous R&D investment to maintain competitive advantages and meet customer demands for product performance[8]. - The company is committed to enhancing its R&D capabilities to develop new products and technologies to sustain its market position[8]. - R&D expenses totaled CNY 23.52 million, accounting for 5.17% of total revenue, reflecting the company's commitment to innovation[85]. - Research and development expenses increased by 8.99% to ¥23,522,684.54, with no significant changes reported[110]. - The company has successfully developed LDI liquid photoresist, which has started mass production after passing tests from multiple PCB manufacturers[111]. - The company has completed the development and mass production of 3D curved glass color photoresist, securing 3 patents, including 2 invention patents, enhancing its leading position in the 3C digital field[116]. - The company has launched high-resolution LDI (Laser Direct Imaging) photosensitive ink, which has been widely applied in PCB processing, improving efficiency and reducing costs for PCB manufacturers[120]. - The company has initiated a project for high-performance solder mask ink for automotive PCBs, completing the core resin design and formulation development[122]. - The company has developed a high-efficiency, high-performance plug ink to address existing industry defects, with customer trials currently underway[121]. Market and Industry Trends - The company faces risks related to the concentration of its product applications in the PCB and flat panel display industries, which may impact performance during economic downturns[7]. - The PCB ink industry is expected to experience continuous growth driven by the deepening of information construction, urbanization, and the upgrading of consumption structures in China[62]. - The electronic chemical products industry is characterized by rapid technological advancements and high-quality requirements, necessitating continuous product updates and performance improvements[61]. - The domestic demand for photoresists is expected to increase significantly with the growth of related end-use products[68]. - The company anticipates continued growth in the PCB industry, which will drive demand for its products in the coming years[86]. Product Development and Offerings - The company has developed three main product lines: PCB photoresist inks, photoresists and supporting chemicals, and specialty inks, with various specifications for electronic chemical products[45]. - The company's photoresist products are primarily used in flat panel displays, LEDs, and integrated circuits, highlighting their application in high-tech industries[45]. - The company’s specialty inks are utilized in precision processing fields such as touch screens and smart phones, indicating a focus on high-value applications[45]. - The company has launched mid-to-low-end products in photoresists but faces challenges in developing high-end products due to technical and financial constraints[8]. Financial Management and Governance - The company plans to distribute a cash dividend of 0.7 yuan per 10 shares (including tax) and to increase capital by converting 3 shares for every 10 shares held[14]. - The cash dividend represents 22.20% of the net profit attributable to ordinary shareholders, which was 37,837,085.18 yuan for the year 2019[184]. - The total distributable profit for the year was 189,542,890.53 yuan, with cash dividends accounting for 100% of the total profit distribution[181]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of 1.00 yuan per 10 shares in 2017 and 2018, and 0.70 yuan in 2019[184]. - The company is actively optimizing its governance structure to improve management efficiency and internal controls[95]. - The company has established a scientific organizational and management model to enhance human resources, production, marketing, and corporate culture management[176]. Strategic Initiatives - The company plans to enhance its market presence in the photoresist and specialty ink sectors, particularly focusing on the high-margin photoresist products[86]. - The company intends to attract high-level management and technical talent over the next three years to support its growth strategy[169]. - The company will pursue both organic growth and acquisitions to strengthen its strategic layout and maintain its leading position in the electronic photoresist chemical industry[170]. - The company recognizes the trend towards environmental protection in electronic chemicals and plans to develop non-toxic and low-pollution products[160]. - The company is adapting to the increasing demand for personalized customer solutions in the electronic chemicals market[161].

Financial Performance - Total revenue for Q1 2020 was ¥93,944,842.02, a decrease of 8.41% compared to ¥102,568,930.72 in the same period last year[8]. - Net profit attributable to shareholders was ¥8,004,077.75, down 16.20% from ¥9,551,931.36 year-on-year[8]. - Basic earnings per share decreased by 12.50% to ¥0.07 from ¥0.08 in the same period last year[8]. - The company achieved operating revenue of ¥93,944,842.02, a year-on-year decrease of 8.41%[24]. - The net profit attributable to shareholders was ¥8,004,077.75, down 16.20% compared to the previous year[24]. - Total operating revenue for the current period is ¥93,944,842.02, a decrease of 8.3% from ¥102,568,930.72 in the previous period[73]. - Net profit for the current period is ¥8,004,077.75, a decrease of 16.2% compared to ¥9,551,931.36 in the previous period[79]. - Earnings per share for the current period is ¥0.07, down from ¥0.08 in the previous period[83]. Cash Flow and Liquidity - Net cash flow from operating activities increased significantly by 232.36%, reaching ¥3,379,061.26 compared to ¥1,016,678.27 in the previous year[8]. - Cash flow from operating activities generated a net amount of 3,379,061.26, significantly higher than 1,016,678.27 in the previous period[91]. - The company’s cash flow from investing activities showed a net outflow of 4,032,063.91, slightly improved from a net outflow of 4,209,755.58 in the previous period[94]. - The company reported a decrease in cash and cash equivalents by 653,002.65, compared to a decrease of 3,193,077.31 in the previous period[97]. - The total cash and cash equivalents at the end of the period amounted to $24,428,405.94, compared to $25,270,408.42 at the end of the previous period, indicating a decrease[101]. Assets and Liabilities - Total assets at the end of the reporting period were ¥700,466,948.74, a decline of 1.21% from ¥709,049,096.47 at the end of the previous year[8]. - Total liabilities decreased to ¥229,044,756.53 from ¥245,630,982.01, a reduction of about 6.77%[61]. - Total liabilities amount to ¥297,989,613.59, a decrease from ¥331,737,727.06 in the previous period[71]. - The company’s total current liabilities stood at $241,126,020.78, with no changes reported[105]. - The company’s total non-current liabilities were recorded at $4,504,961.23, remaining unchanged[105]. Shareholder Information - The top shareholder, Lin Haiwang, holds 13.60% of the shares, with a total of 16,318,773 shares[11]. - There were no significant changes in the number of shareholders or shareholding structure during the reporting period[11]. - The company has no outstanding commitments from major shareholders or related parties during the reporting period[50]. - There are no violations regarding external guarantees during the reporting period[50]. - The company reported no non-operational fund occupation by controlling shareholders or related parties during the reporting period[51]. Government Subsidies and Income - The company received government subsidies amounting to ¥239,817.17 during the reporting period[8]. - The company received government subsidies, leading to a 179.79% increase in non-operating income to ¥285,379.84[21]. Research and Development - The company is committed to increasing R&D investment to enhance product development capabilities and maintain competitive advantages[33]. - The company added 2 new authorized invention patents, bringing the total to 33 patents, including 31 invention patents[26]. - Research and development expenses for the current period are ¥5,693,257.39, slightly up from ¥5,592,155.73 in the previous period[76]. Market and Strategic Outlook - The company anticipates significant market opportunities in the electronic chemical industry driven by national policies and strategic emerging industries[25]. - The company faces risks related to concentrated product application fields and market competition affecting profit margins[31][34]. - The company plans to focus on market expansion and new product development in the upcoming quarters[86]. Operational Projects - The company is actively pursuing the acquisition of 100% equity in Guangdong Gaoshi Electric Research Technology Co., with due diligence ongoing and the audit date adjusted to December 31, 2019, to reflect more current financial data[37]. - The fundraising project for "photoresist materials and supporting chemicals" was initially scheduled to be operational by December 31, 2018, but has been postponed, with the current expected completion date set for March 31, 2020[37]. - The PCB photoresist ink project was completed in June 2019 but has not fully utilized its capacity, leading to short-term profit losses due to insufficient revenue to cover fixed asset depreciation and costs[44]. - The "photoresist materials and supporting chemicals" project has completed its main construction and is currently in the equipment installation and debugging phase, expected to reach operational status by March 31, 2020[44].

Financial Performance - The company's operating revenue for 2019 was ¥455,112,179.64, representing a 7.58% increase compared to ¥423,039,858.12 in 2018[32]. - The net profit attributable to shareholders for 2019 was ¥37,837,085.18, a decrease of 10.21% from ¥42,139,729.97 in 2018[32]. - The net profit after deducting non-recurring gains and losses was ¥36,612,916.16, which is a 2.55% increase from ¥35,701,650.11 in 2018[32]. - The total assets at the end of 2019 were ¥709,049,096.47, showing a significant increase of 32.22% from ¥536,261,365.68 at the end of 2018[32]. - The basic earnings per share for 2019 was ¥0.32, down 8.57% from ¥0.35 in 2018[32]. - The company reported a net cash flow from operating activities of ¥14,312,789.04, which is a 2.74% increase from ¥13,931,147.26 in 2018[32]. - The company’s weighted average return on equity was 8.40% in 2019, down from 9.97% in 2018[32]. - The company’s total liabilities increased, reflecting its market expansion strategy and investment in new technologies[32]. Research and Development - The company emphasizes the need for continuous R&D investment to maintain competitive advantages and market expansion[8]. - The company continues to focus on the R&D of electronic chemical products, which are critical for the electronics industry[44]. - The company employs a dual R&D model, focusing on independent research and development while also collaborating with external technology resources, including hiring a Japanese technical expert for photoresist product development[48][50]. - R&D expenses amounted to 2,352.27 million yuan, accounting for 5.17% of total operating revenue[85]. - Research and development investment in 2019 amounted to ¥23,522,684.54, accounting for 5.17% of operating revenue, showing a slight increase from 5.10% in 2018[123]. - The company has completed the construction of its R&D center, which is now operational, further strengthening its technological capabilities[90]. - The company is focused on enhancing its R&D capabilities, aiming to develop high-end photosensitive chemical materials and increase the number of patents[168]. Market Position and Strategy - The company maintained a leading position in the PCB photoresist market with a market share of approximately 13%[86]. - The company plans to enhance its market presence through strategic partnerships and potential acquisitions in the electronic materials sector[44]. - The company plans to enhance its market expansion efforts in the photoresist and specialty ink sectors, particularly focusing on high-margin products[86]. - The PCB ink industry is expected to experience continuous growth driven by advancements in information technology, urbanization, and rising consumer income, leading to increased demand for new products[62]. - The company has established a loyal customer base among medium and large PCB manufacturers, enhancing its brand effect and ensuring stable long-term development[78]. Risks and Challenges - The company faces risks related to the concentration of its product applications in the PCB and flat panel display industries, which may impact performance during economic downturns[7]. - The company acknowledges the risk of declining gross margins due to intensified competition from both domestic and foreign firms[9]. - The company is exposed to risks of bad debts due to the increasing level of accounts receivable as its business grows[10]. - The company recognizes the trend towards environmental-friendly products in the electronic chemicals sector, aligning its development with stricter regulations on harmful substances[160]. Financial Management and Governance - The company plans to distribute a cash dividend of 0.7 yuan per 10 shares (before tax) and to increase capital by 3 shares for every 10 shares held[14]. - The total distributable profit for the year was 189,542,890.53 yuan, with cash dividends representing 100% of the profit distribution[181]. - The company's cash dividend payout ratio for 2019 was 22.20% of the net profit attributable to ordinary shareholders[184]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of 12,000,000 yuan in 2017 and 2018, and 8,400,000 yuan in 2019[184]. - The company is committed to ensuring reasonable returns for all shareholders while balancing long-term interests and sustainable development[183]. - The company has established a robust employee assessment and incentive mechanism to support future growth and compliance with listing requirements[176]. Product Development and Innovation - The company has developed three main product lines: PCB photoresist inks, photoresists and supporting chemicals, and specialty inks, with a focus on electronic chemical products[45]. - The company successfully launched LDI liquid photoresist, enhancing product competitiveness and economic benefits[111]. - The high-performance solder mask for automotive circuit boards has completed core resin design and testing, breaking foreign brand monopolies[112]. - The company has completed the development and mass production of 3D curved glass color photoresist, securing 3 patents, including 2 invention patents, enhancing its leading position in the 3C digital field[116]. - A high-resolution positive photoresist for flat panel displays has been developed, with successful pilot production and continuous bulk orders from customers, aiming to increase market share in the flat panel display industry[117]. - The company has launched high-resolution LDI (Laser Direct Imaging) photosensitive ink, which has been widely applied in PCB processing, improving efficiency and reducing costs[120]. Asset Management - The company's fixed assets increased significantly from 36 million to 140.947 million, primarily due to the completion of construction projects[69]. - Cash and cash equivalents rose from 44.44 million to 67.35 million, mainly due to the recovery of financial products amounting to 10 million[69]. - Accounts receivable increased from 160.63 million yuan in 2017 to 196.32 million yuan in 2019, reflecting the company's expanding business scale[13]. - Inventory grew from 61.36 million to 85.15 million, mainly due to the commissioning of a new factory[69]. - The company’s accounts receivable rose to ¥196,318,670.08, representing 27.69% of total assets, a decrease of 5.74% in proportion compared to the previous year[129].

Financial Performance - Net profit attributable to shareholders decreased by 34.28% to ¥7,822,861.37 for the reporting period[8] - Basic earnings per share decreased by 30.00% to ¥0.07 for the reporting period[8] - The weighted average return on equity was 1.75%, down by 1.08% compared to the previous year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,727,869.44, a decrease of 32.77%[8] - Net profit for the current period was ¥7,822,861.37, a decrease of 34.7% from ¥11,902,861.66 in the previous period[62] - Net profit fell to ¥15,840,302.22 from ¥20,331,200.34, reflecting a decrease of approximately 22.1%[87] - Total profit decreased to ¥18,635,649.69 from ¥23,919,059.23, a drop of around 22.0%[87] - The total comprehensive income attributable to the parent company was ¥26,283,048.03, down from ¥31,156,638.17, a decline of 15.5%[83] Revenue and Costs - Operating revenue for the period was ¥117,284,679.62, reflecting a 2.39% increase year-on-year[8] - Total operating revenue for the current period reached ¥117,284,679.62, an increase of 2.3% compared to ¥114,551,198.93 in the previous period[59] - Total operating costs increased to ¥105,648,588.62, up 7.5% from ¥98,557,016.92 in the previous period[59] - Total operating revenue for the current period reached ¥325,889,703.65, an increase of 4.9% compared to ¥311,174,323.99 in the previous period[77] - Total operating costs amounted to ¥291,705,485.35, up from ¥277,409,377.45, reflecting a rise of 5.2%[77] Assets and Liabilities - Total assets increased by 16.15% to ¥622,872,401.72 compared to the end of the previous year[8] - Total assets increased to CNY 622,872,401.72, up from CNY 536,261,365.68 year-over-year, representing a growth of approximately 16.1%[48] - Non-current assets totaled CNY 209,971,562.72, compared to CNY 173,312,726.58 in the previous year, marking an increase of about 21.3%[48] - Current liabilities rose to CNY 166,293,810.84, significantly higher than CNY 93,668,346.77, reflecting an increase of approximately 77.6%[45] - The total liabilities reached CNY 170,909,888.55, compared to CNY 98,581,900.53, indicating a growth of around 73.3%[45] - Owner's equity amounted to CNY 451,962,513.17, up from CNY 437,679,465.15, showing an increase of about 3.5%[48] Cash Flow - The net cash flow from operating activities increased significantly by 177.90% to ¥20,494,802.12 year-to-date[8] - Cash flow from operating activities generated ¥20,494,802.12, significantly up from ¥7,374,924.58, marking an increase of approximately 177.5%[91] - Cash inflow from investment activities was ¥30,029,097.95, down from ¥182,098,013.73, indicating a decrease of about 83.5%[96] - Cash outflow for investment activities totaled ¥49,162,505.93, compared to ¥178,845,239.01, a reduction of approximately 72.6%[96] - The company reported a total cash inflow from operating activities of $142,968,958.88, compared to $135,905,277.42 in the previous period, showing growth in operational cash generation[100] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,636[12] - Major shareholders include Lin Haiwang with 13.60% ownership and Yang Yuchun with 12.92% ownership[12] Investments - Long-term equity investments reached ¥30,000,000.00, marking a 100% increase due to an investment in Ningxia Wokailong Company[22] - Investment cash outflows totaled ¥30,000,000.00, representing a 100% increase due to the equity investment in Ningxia Wokailong Company[26] - The company plans to acquire 100% equity of Guangdong Gaoshi Electric Research Technology Co., Ltd. through a combination of issuing shares, convertible bonds, and cash payments[27] Expenses - Management expenses increased by 55.42% to ¥18,799,977.07, attributed to higher costs from the new factory[23] - Research and development expenses increased to ¥6,293,641.97, up 12.7% from ¥5,583,338.77 in the previous period[59] - Research and development expenses increased to ¥17,777,225.40, compared to ¥16,170,835.21, marking a growth of 9.9%[77] - Sales expenses rose to ¥30,598,291.65, up from ¥24,367,964.26, indicating a 25.6% increase[77] Government Subsidies - The company received government subsidies amounting to ¥1,529,276.05 during the reporting period[8] - Non-operating income fell by 91.60% to ¥338,473.05, primarily due to a reduction in government subsidies received compared to the previous year[23]

Financial Performance - The company reported a total revenue of RMB 150 million for the first half of 2019, representing a year-on-year increase of 20%[18]. - Total revenue for the reporting period was ¥208,605,024.03, an increase of 6.09% compared to the same period last year[26]. - The company achieved a revenue of 208.61 million, representing a 6.09% increase compared to the same period last year[66]. - The company has set a revenue target of RMB 320 million for the full year 2019, which would require a 25% increase in the second half[18]. - The company's total revenue for PCB ink was 194,121,679.71 RMB, with a year-on-year increase of 4.68%, while the gross margin was 29.05%[87]. Profitability - Gross profit margin for the first half of 2019 was 35%, a decrease of 5% compared to the same period last year, primarily due to increased competition in the market[18]. - Net profit attributable to shareholders decreased by 4.12% to ¥18,460,186.66 from ¥19,253,776.51 in the previous year[26]. - Net profit after deducting non-recurring gains and losses increased by 29.10% to ¥17,248,744.22, compared to ¥13,360,487.19 in the same period last year[26]. - Basic and diluted earnings per share decreased by 6.25% to ¥0.15 from ¥0.16 in the previous year[26]. - The net profit attributable to shareholders decreased by 4.12% to 18.46 million, with basic earnings per share remaining stable at 0.15 yuan[66]. Research and Development - The company plans to invest RMB 30 million in R&D for new product development in the second half of 2019, focusing on advanced PCB materials[18]. - The company focuses on the R&D of electronic chemical products, including PCB photosensitive inks and photoresists, which are critical for the electronics industry[36]. - The company employs a dual R&D model, combining independent research with external collaborations, including hiring foreign technical experts[43][45]. - R&D expenses amounted to 11.48 million, accounting for 5.50% of total revenue, reflecting the company's commitment to innovation[67]. - The company is developing new products, including mid-to-high-end photoresists, but faces challenges in R&D investment and technical difficulties[120]. Market Expansion and Strategy - Market expansion efforts include entering two new regional markets in Southeast Asia by the end of 2019[18]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach[18]. - The company plans to expand its market presence in photoresists and specialty inks, particularly focusing on high-margin products like photoresists[76]. - The company has established long-term stable relationships with major domestic PCB manufacturers, enhancing its market position[60]. - The company maintains a direct sales model to better serve its customers and reduce intermediaries[51]. Financial Position - Total assets at the end of the reporting period were ¥540,133,508.33, a slight increase of 0.72% from ¥536,261,365.68 at the end of the previous year[29]. - Net assets attributable to shareholders increased by 1.48% to ¥444,139,651.81 from ¥437,679,465.15 at the end of the previous year[29]. - Cash and cash equivalents decreased by 6.48%, amounting to 32,444,345.74 RMB, due to investments and cash input into fundraising projects[88]. - Accounts receivable remained stable, with a slight decrease of 1.62%, totaling 172,433,291.34 RMB[88]. - The company's accounts receivable increased from 160.63 million yuan in 2017 to 172.93 million yuan in June 2019, reflecting a growing business scale and associated risks of bad debts[122]. Risks and Challenges - The company faces risks related to concentrated product applications and fluctuations in raw material prices, which may impact future performance[18]. - The company has faced risks related to concentrated product application fields, particularly in the PCB and flat panel display industries, which may affect operational performance[119]. - Raw material costs accounted for over 93% of the company's main business costs from 2017 to June 2019, with significant price fluctuations in key materials like resins and photoinitiators impacting profitability[125]. - The company has faced legal disputes, including a case against Shenzhen Huaxiangrong Electronics for 1.0911 million yuan in unpaid debts, which resulted in a favorable judgment for the company[134]. Investment and Capital Expenditure - The company invested 30 million in Ningxia Wokailong New Materials Co., acquiring a 12% stake[52]. - The company has successfully completed the fundraising projects, with a total investment of RMB 139,679,413.24 as of June 30, 2019[77]. - The company's fixed assets increased by 9,649 million RMB, primarily due to the completion of infrastructure projects and equipment installation from fundraising projects, resulting in a 263.57% increase[86]. - The company has invested a total of RMB 47,843,352.98 in the PCB photoresist ink project and related chemical materials[104]. - The company will increase its wholly-owned subsidiary Huizhou Rongda's registered capital by RMB 8 million for the "Photoresist Project" construction[160]. Shareholder Information - The total number of shares remains at 120 million, with 66.57% being restricted shares and 33.43% being unrestricted shares[165]. - Total number of common shareholders at the end of the reporting period was 10,797[169]. - The largest shareholder, Lin Haiwang, holds 13.60% of shares, totaling 16,318,773 shares[169]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[175]. - There were no changes in the controlling shareholder or actual controller during the reporting period[176].

Financial Performance - Total revenue for Q1 2019 was ¥102,568,930.72, representing a 12.12% increase compared to ¥91,478,147.92 in the same period last year[8] - Net profit attributable to shareholders was ¥9,551,931.36, up 9.99% from ¥8,684,464.09 year-on-year[8] - Net profit excluding non-recurring gains and losses increased by 43.08% to ¥9,446,692.88 from ¥6,602,401.60 in the previous year[8] - Basic and diluted earnings per share rose by 14.29% to ¥0.08 from ¥0.07 year-on-year[8] - The company reported a total comprehensive income of ¥9,551,931.36 for the current period, compared to ¥8,684,464.09 in the previous period[76] Cash Flow - Operating cash flow decreased significantly by 64.77% to ¥1,016,678.27 from ¥2,885,973.55 in the same period last year[8] - Cash inflow from operating activities totaled 46,450,361.32, up from 44,093,863.58 in the previous period, reflecting a growth of approximately 5.3%[87] - The net cash flow from operating activities was 1,016,678.27, down from 2,885,973.55, showing a decline of about 64.8%[87] - The cash flow from financing activities resulted in a net outflow of -10,182,273.09, compared to an inflow of 224,807.74 in the previous period, indicating a significant shift[98] Assets and Liabilities - Total assets at the end of the reporting period were ¥532,770,524.10, a decrease of 0.65% from ¥536,261,365.68 at the end of the previous year[8] - Total current assets decreased from ¥362,948,639.10 to ¥329,408,880.02, a decline of approximately 9%[53] - Total non-current assets increased from ¥173,312,726.58 to ¥203,361,644.08, an increase of about 17%[53] - Total liabilities decreased from ¥98,581,900.53 to ¥85,538,657.18, a reduction of approximately 13%[56] - Total equity increased from ¥437,679,465.15 to ¥447,231,866.92, reflecting a growth of about 2%[59] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,192[12] - The top shareholder, Lin Haiwang, holds 13.60% of the shares, amounting to 16,318,773 shares, with 13,370,000 shares pledged[12] Investment and Projects - The company reported a 100% increase in long-term equity investments, reaching 30 million yuan, indicating new external equity investments[18] - The company plans to extend the construction period for the "Printed Circuit Board Photosensitive Ink Project" to June 30, 2019, due to delays in project acceptance and adjustments in procurement processes[34] - The construction period for the "Photoresist Materials and Supporting Chemicals Project" has also been extended to December 31, 2019, to meet high market demands through product and process optimization[34] - The PCB photoresist project has completed the main construction but is pending acceptance, which may delay the project's implementation[41] Risks and Challenges - The company faces risks related to concentrated product application fields, particularly in the PCB and flat panel display industries[27] - The company is challenged by the need for continuous R&D investment to develop new products, especially in the high-end segment of photoresists[28] - The company is at risk of declining gross margins due to increasing competition from both domestic and foreign firms[29] - Raw material costs, which account for over 93% of the company's main business costs, are subject to significant price fluctuations, impacting profitability[33] Research and Development - Research and development expenses were ¥4,720,554.61, compared to ¥4,258,739.74 in the previous period, indicating a 10.8% increase[77] Compliance and Auditing - The first quarter report was not audited[99] - The company has not applied the new financial instruments, revenue, and leasing standards adjustments[99]

Financial Performance - The company's operating revenue for 2018 was ¥423,039,858.12, representing a 16.42% increase compared to ¥363,361,457.43 in 2017[31]. - The net profit attributable to shareholders for 2018 was ¥42,139,729.97, up 14.37% from ¥36,845,829.49 in 2017[31]. - The net profit after deducting non-recurring gains and losses was ¥35,701,650.11, a 14.04% increase from ¥31,305,044.64 in 2017[31]. - The company's total assets at the end of 2018 were ¥536,261,365.68, reflecting a 6.06% increase from ¥505,636,916.30 at the end of 2017[31]. - The net assets attributable to shareholders increased by 7.40% to ¥437,679,465.15 at the end of 2018 from ¥407,539,735.18 at the end of 2017[31]. - The basic earnings per share for 2018 was ¥0.35, a 12.90% increase compared to ¥0.31 in 2017[31]. - The company reported a net cash flow from operating activities of ¥13,931,147.26, down 30.56% from ¥20,062,885.71 in 2017[31]. - The company received government subsidies amounting to ¥5,378,845.55 in 2018, compared to ¥3,464,235.85 in 2017[37]. - The company achieved operating revenue of CNY 423.04 million, a year-on-year increase of 16.42%[97]. - The net profit attributable to shareholders was CNY 42.14 million, reflecting a growth of 14.37% compared to the previous year[85]. Research and Development - The company emphasizes the need for continuous R&D investment to maintain competitive advantages and meet customer demands for product performance[8]. - The company has maintained its focus on the R&D and production of electronic chemicals, including PCB photoresists and specialty inks, with applications across various electronic industries[40]. - The company adopts a primary self-research model while also collaborating with external technology resources for product development[44]. - The company has established a unified management system for R&D, led by a technical director and project managers, focusing on market demand and product performance improvement[45]. - The company has engaged a Japanese technical expert as a senior technical advisor for the development of photoresist products, accelerating the market introduction of these products[46]. - Research and development expenses amounted to CNY 21.58 million, representing 5.1% of operating revenue[86]. - Research and development investment amounted to ¥21,582,171.13 in 2018, accounting for 5.10% of operating revenue, with a total of 65 R&D personnel, representing 19.23% of the workforce[121]. Market and Competition - The company is exposed to competition from both local and foreign firms, which may lead to further declines in gross profit margins if not addressed[9]. - The company faces risks related to concentrated product application fields, primarily in the PCB and flat panel display industries, which may affect operational performance during market fluctuations[7]. - The company is actively monitoring the market for potential risks associated with economic downturns that could impact the PCB and flat panel display sectors[7]. - The company expects continuous growth in the PCB ink industry driven by the expansion of the computer, communication equipment, and consumer electronics sectors[58]. - The demand for photoresist is anticipated to increase significantly due to the rapid development of integrated circuits and related applications[59]. - The company has a strong competitive edge in technology, having mastered core technologies in resin synthesis and photosensitive agent synthesis, which are critical for the production of electronic photosensitive chemical materials[69]. - The company has completed the basic formula design and customer validation for high-resolution positive photoresist for flat panel displays, successfully obtaining small batch orders[120]. Production and Operations - The company has launched mid-to-low-end products in photoresist but faces challenges in developing high-end products due to technical and financial constraints[8]. - The company's production plans are based on market demand, inventory levels, and past sales performance, with adjustments made for specialized ink products based on customer orders[50]. - The company has implemented a "product + service" solution strategy, enhancing customer loyalty and ensuring product quality through rapid formula adjustments and technical support[78]. - The company plans to address capacity constraints by launching a new production line for PCB photoresist ink with an annual capacity of 10,000 tons by June 2019, and a production line for photoresists and supporting chemicals with an annual capacity of 1,000 tons by mid-2020[163]. - The company has developed and started mass production of colored photoresist for 3D curved glass, applying for 2 patents, enhancing brand recognition in the mobile phone sector[117]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares (including tax) based on a total of 120 million shares[13]. - The distributable profit for the company is CNY 166,388,522.57[178]. - The total cash dividend amount accounts for 100.00% of the profit distribution[178]. - The cash dividend plan for 2018 is CNY 12,000,000.00, distributed at CNY 1.00 per 10 shares[179]. - In 2018, the cash dividend represented 28.48% of the net profit attributable to ordinary shareholders[179]. - The company has committed to a minimum cash dividend ratio of 20% for profit distribution during its growth phase[178]. - The company has maintained a consistent cash dividend distribution strategy over the past three years[179]. Investment and Funding - The company has not reported any significant changes in the use of raised funds, with a total of ¥13,972.36 million raised through IPO, of which ¥5,685.27 million has been utilized[137]. - The company raised a total of RMB 164.8 million by issuing 20 million shares at RMB 8.24 per share, with a net amount of RMB 139.72 million after deducting issuance costs[138]. - The actual usage of raised funds during the reporting period was RMB 56.85 million, with a total investment amount of RMB 280.25 million planned for the projects[139]. - The PCB photosensitive ink project has achieved an investment progress of 102.56% as of June 30, 2019, with a cumulative investment of RMB 102.56 million[140]. - The company has not sold any significant assets or equity during the reporting period[152][153]. Strategic Focus - The company is focusing on developing environmentally friendly electronic chemicals in response to stricter regulations and market demands for non-toxic products[158]. - The company is committed to expanding its market presence by pursuing both organic growth and strategic acquisitions of complementary businesses[168]. - The company emphasizes the importance of personalized customer demands, leading to increased requirements for R&D support and technical services from suppliers[160]. - The company is transitioning towards the mid-to-high-end market segment in response to industry consolidation trends and the need for specialized products[161]. - The company aims to create a competitive high-end brand in the photoresist chemical materials sector by continuously innovating and improving product quality[162].