Financial Performance - The company's operating revenue for 2021 was CNY 785,773,696.25, representing a 44.45% increase compared to CNY 543,961,732.98 in 2020[41]. - The net profit attributable to shareholders for 2021 was CNY 40,002,025.76, a decrease of 29.61% from CNY 56,830,528.78 in 2020[41]. - The net cash flow from operating activities increased by 152.89% to CNY 50,416,869.22 in 2021, compared to CNY 19,936,142.41 in 2020[41]. - The total assets at the end of 2021 were CNY 1,174,364,280.95, reflecting a 16.11% increase from CNY 1,011,401,807.13 at the end of 2020[41]. - The basic earnings per share for 2021 was CNY 0.21, down 30.00% from CNY 0.30 in 2020[41]. - The company reported a quarterly revenue of CNY 215,362,519.36 in Q4 2021, showing a consistent growth trend throughout the year[45]. - The net profit attributable to shareholders in Q4 2021 was a loss of CNY 2,507,029.75, contrasting with profits in the earlier quarters[45]. - The company’s weighted average return on equity for 2021 was 7.10%, down from 11.65% in 2020, indicating a decline in profitability[41]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 34,982,503.04, a decrease of 36.21% from CNY 54,839,259.12 in 2020[41]. - The company reported a non-operating income of CNY 5,019,522.72 in 2021, a significant increase from CNY 1,991,269.66 in 2020, representing a growth of approximately 152.5%[48]. - The government subsidies recognized during the reporting period amounted to CNY 5,362,770.80, compared to CNY 2,044,755.96 in 2020, indicating a year-over-year increase of about 162.5%[48]. Market and Industry Trends - The company operates primarily in the PCB and flat panel display industries, which are sensitive to market fluctuations and demand for high-performance materials[7]. - The domestic market for display and semiconductor photoresists is expected to grow significantly due to the rapid development of the display and semiconductor industries in China[64]. - The PCB photoresist market is estimated to account for approximately 4% of the PCB production value, indicating a stable correlation between the two markets[60]. - The company has identified a growing demand for high-performance photoresists, particularly in the semiconductor sector, as processing dimensions continue to shrink below 10 nanometers[63]. - The company’s market presence is concentrated in the Yangtze River Delta and Pearl River Delta regions, which account for 30% to 35% of the national PCB industry scale[66]. - The electronic chemicals industry is characterized by high added value and strict quality requirements, directly impacting the performance of electronic components[59]. R&D and Product 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 faced challenges in developing high-end products, particularly in the display and semiconductor photoresist sectors, which require substantial R&D investment and time[8]. - 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 as a senior technical advisor[84]. - The company is actively developing environmentally friendly coatings, indicating a commitment to sustainability in product offerings[98]. - The company is developing several new products, including high-performance solder mask inks for 5G communication boards, which are expected to fill market gaps and enhance product competitiveness[152]. - The company plans to enhance its market position through ongoing R&D projects and potential new product launches in the semiconductor and display sectors[152]. - The company has a robust R&D team with nearly 20 years of experience in solder mask ink development, ensuring high-level product development capabilities[91]. Acquisitions and Investments - The company acquired 100% equity of Gaoshi Electric Research, with performance commitments of net profits not less than 15 million yuan, 17.5 million yuan, and 20 million yuan for 2020, 2021, and 2022 respectively, which were met in 2021[15]. - The company has recognized goodwill of 128.12 million yuan from the acquisition of Gaoshi Electric Research, which is subject to annual impairment testing[16]. - The company completed the acquisition of Guangdong Zhengqi Materials Co., Ltd. on November 9, 2021, with an acquisition cost of ¥14,280,000, obtaining a 51% stake[144]. - The company invested 14.28 million RMB in Guangdong Zhengqi New Materials Co., holding 51% of its equity post-investment[125]. - The company established a wholly-owned subsidiary in Zhuhai with a registered capital of 30 million RMB to enhance its strategic layout[125]. Operational Efficiency and Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring the independence of its board and management from controlling shareholders[195]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[196]. - The company has implemented effective measures to safeguard the rights of its shareholders and ensure transparent communication with stakeholders[200]. - The company’s management structure was optimized, enhancing governance and internal control systems to improve operational efficiency[129]. - The company is committed to strengthening its internal control systems and decision-making processes to enhance governance and operational efficiency[187]. Financial Risks and Challenges - The company reported significant risks related to raw material price fluctuations, particularly for resins and photoinitiators, which could impact production stability and profitability[9]. - The company faces risks of declining gross margins due to intensified market competition and the need to enhance technical capabilities and brand influence[13]. - Accounts receivable increased from 196.32 million yuan in 2019 to 333.41 million yuan in 2021, reflecting the company's expanding business scale and potential risks associated with collection[14]. - The main raw materials include resins, monomers, solvents, pigments, and additives, with most sourced directly from manufacturers[85]. - The procurement of raw materials is based on production plans and inventory conditions, with the average prices for key raw materials showing significant increases, such as Raw Material One rising from 65.93 to 69.42 yuan[91]. - The company’s raw material costs increased due to rising prices, with raw materials accounting for 90.62% of the total operating costs for PCB photoresist ink[141]. Sales and Marketing - The company primarily adopts a direct sales model, establishing long-term and stable partnerships with well-known domestic PCB manufacturers[87]. - The company has established a comprehensive marketing system to better serve customers and reduce intermediaries, enhancing operational efficiency[87]. - The company has been recognized as an excellent supplier by multiple enterprises, enhancing its brand effect and customer loyalty[113]. - Total sales amount from the top five customers reached ¥161,998,990.56, accounting for 20.62% of the annual total sales[147]. - Total purchase amount from the top five suppliers was ¥177,490,101.94, representing 31.89% of the annual total purchases[147]. Future Outlook - The company aims to increase production capacity to 23,000 tons in 2022[182]. - The company plans to fully implement the ERP system across various modules to enhance operational efficiency[183]. - The company aims to strengthen its position in the high-end market as the electronic chemicals industry undergoes consolidation[178]. - The company is focused on enhancing its independent R&D capabilities, aiming to develop high-end photosensitive chemical materials to meet market demands and improve product quality[184]. - The company plans to attract high-level management and technical talent over the next three years to support its rapid development needs[185]. - The company aims to improve its strategic layout through both organic growth and acquisitions of complementary businesses to maintain its leading position in the electronic photosensitive chemical industry[186].

Revenue and Profitability - Revenue for Q3 2021 reached ¥207,838,301.67, an increase of 45.02% compared to the same period last year[4] - Net profit attributable to shareholders was ¥17,906,501.88, a decrease of 2.47% year-on-year[4] - The net profit excluding non-recurring gains and losses was ¥16,778,210.94, down 8.00% from the previous year[4] - The company reported a basic earnings per share of ¥0.10, unchanged from the previous year[4] - The company experienced a 51.10% increase in total revenue for the year-to-date, amounting to ¥570,411,176.89[14] - Total operating revenue for the third quarter reached CNY 570,411,176.89, a significant increase of 51.1% compared to CNY 377,511,056.70 in the same period last year[36] - The company reported a net profit of CNY 47,998,665.74 for the quarter, slightly up from CNY 46,198,047.19 year-over-year[36] - The net profit for the current period is CNY 42,509,055.51, an increase from CNY 41,185,090.14 in the previous period, representing a growth of approximately 3.22%[39] - The total profit for the current period is CNY 48,583,321.98, compared to CNY 46,716,565.40 in the previous period, indicating an increase of about 4.00%[39] - The basic earnings per share for the current period is CNY 0.23, up from CNY 0.22 in the previous period, reflecting a growth of 4.55%[42] Assets and Liabilities - Total assets increased by 10.55% to ¥1,118,093,643.01 compared to the end of the previous year[7] - The company's total assets reached CNY 1,118,093,643.01, up from CNY 1,011,401,807.13, indicating a growth of 10.5%[32] - Total liabilities increased to CNY 541,420,058.36, compared to CNY 499,553,163.89, marking an 8.3% rise[32] - Shareholders' equity attributable to the parent company rose by 12.66% to ¥576,673,584.65[7] - The equity attributable to shareholders rose to CNY 576,673,584.65, up from CNY 511,848,643.24, reflecting a growth of 12.7%[32] Cash Flow - Cash flow from operating activities for the year-to-date was ¥62,678,164.91, a significant increase of 336.99%[4] - Cash inflow from operating activities totaled CNY 288,108,991.99, significantly higher than CNY 158,746,377.79 in the previous period, marking an increase of approximately 81.55%[44] - The net cash flow from operating activities is CNY 62,678,164.91, compared to CNY 14,342,996.55 in the previous period, showing a substantial increase of about 338.36%[44] - The cash flow from investing activities resulted in a net outflow of CNY -32,103,651.47, worsening from CNY -13,293,324.31 in the previous period[47] - The cash flow from financing activities showed a net outflow of CNY -1,642,704.71, compared to CNY -10,379,400.00 in the previous period, indicating an improvement[47] - The ending cash and cash equivalents balance is CNY 63,361,603.02, up from CNY 26,087,211.22 in the previous period, representing an increase of approximately 142.67%[47] Expenses and Investments - Research and development expenses increased by 56.26% to ¥28,953,849.44, reflecting ongoing investment in innovation[14] - Research and development expenses increased to CNY 28,953,849.44, representing a 56.4% rise from CNY 18,529,305.51 in the previous year[36] - The company plans to invest approximately $600 million in projects related to photosensitive dry film and semiconductor photoresists in Zhuhai, with fixed asset investment around $440 million[25] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 34,137, with no preferred shareholders reported[19] - The top five shareholders collectively hold approximately 58.33% of the company's shares, indicating a concentrated ownership structure[22] - Cash dividends distributed increased by 49.83% to approximately $12.59 million, reflecting a commitment to returning value to shareholders[18] Government Subsidies - The company received government subsidies totaling ¥4,333,580.57 year-to-date, contributing to other income growth[8] - Government subsidies received rose by 194.90% to approximately $11.21 million during the reporting period[18]

Financial Performance - The company reported a revenue of 300 million RMB for the first half of 2021, representing a year-on-year increase of 15%[23] - The net profit attributable to shareholders was 50 million RMB, up 20% compared to the same period last year[23] - The company's operating revenue for the current period is ¥362,572,875.22, representing a year-on-year increase of 54.82% compared to ¥234,189,274.09 in the same period last year[33] - The net profit attributable to shareholders for the current period is ¥24,602,553.63, which is an increase of 7.79% from ¥22,824,953.16 in the previous year[33] - The company's basic earnings per share for the current period is ¥0.13, reflecting an increase of 8.33% from ¥0.12 in the same period last year[33] - The net profit after deducting non-recurring gains and losses was approximately 22.19 million, representing a 3.83% increase year-on-year[193] Research and Development - The company plans to invest 10 million RMB in R&D for new product development in the next fiscal year[23] - The company continues to focus on the R&D of electronic chemical products, including PCB photoresists and specialty inks, which are critical for the electronics industry[43] - The company employs a dual R&D model, combining independent research with external collaborations, including hiring a Japanese technical expert for product development[48][50] - The company's R&D investment reached ¥18,360,274.49, a 55.40% increase compared to the previous year, driven by expenses from newly acquired enterprises and increased share-based payment expenses[68] Market Expansion - User data indicates a 25% increase in active customers, reaching 1 million by the end of June 2021[23] - The company has expanded its market presence in Southeast Asia, achieving a 30% growth in sales in that region[23] - The company is focused on expanding its market presence through strategic acquisitions and partnerships, as evidenced by the acquisition of Gaoshi Electric Research[165] Financial Position - The total assets at the end of the current period are ¥1,073,934,956.47, reflecting a growth of 6.18% from ¥1,011,401,807.13 at the end of the previous year[33] - The net assets attributable to shareholders at the end of the current period are ¥554,081,698.16, which is an increase of 8.25% from ¥511,848,643.24 at the end of the previous year[33] - Cash and cash equivalents at the end of the reporting period amounted to ¥84,464,536.37, accounting for 7.86% of total assets, an increase of 2.60% from the previous year[73] - Accounts receivable stood at ¥307,409,543.53, representing 28.62% of total assets, with a slight increase of 0.28% year-on-year[73] - Inventory increased to ¥121,745,815.52, making up 11.34% of total assets, which is an increase of 2.29% from the previous year[73] Risks and Challenges - Risks identified include fluctuations in raw material prices and the potential underperformance of acquisition targets[6] - The company faces risks related to concentrated product application fields, particularly in the PCB and flat panel display industries, which may impact performance due to market fluctuations[88] - The company is challenged by the risks associated with new product development, particularly in achieving high-end product specifications[89] - Raw material price volatility poses a significant risk, as raw materials constitute a large portion of the company's production costs[90] - There are uncertainties regarding the fulfillment of performance commitments by the acquired entity, which could impact the company's financial stability[93] Shareholder Information - The total number of common shareholders at the end of the reporting period is 32,797[171] - The largest shareholder, Lin Haiwang, holds 13.53% of shares, totaling 25,457,286 shares, with a decrease of 4,242,881 shares during the period[171] - The second-largest shareholder, Yang Yuchun, holds 12.85% of shares, totaling 24,179,504 shares, with a decrease of 4,029,917 shares during the period[171] - The company has not experienced any changes in its controlling shareholder during the reporting period[179] Corporate Governance - The company has not faced any environmental penalties during the reporting period and complies with relevant environmental laws[104] - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[115] - The company has not engaged in any significant litigation or arbitration matters during the reporting period[122] - There were no changes in the board of directors, supervisors, or senior management during the reporting period[99] Capital Structure - The company issued 753,349 new shares, increasing the total shares to 156,753,349[144] - The total share capital after the capital increase is 188,104,018 shares, with a distribution of cash dividends of RMB 0.8 per 10 shares[153] - The total number of restricted shares at the end of the period was 76,993,544 shares, with 17,433,621 shares released during the period[164] - The company completed the issuance of 1,248,000 convertible bonds with a face value of 100 yuan per bond, totaling 124.8 million yuan, with a registration date of January 26, 2021[167] Operational Efficiency - The net cash flow from operating activities has significantly increased by 421.49%, reaching ¥21,764,318.96 compared to ¥4,173,463.67 in the same period last year[33] - The company has established long-term stable relationships with major domestic PCB manufacturers, enhancing its brand effect and ensuring sustainable development[63] - The company has a complete product line, including PCB photosensitive inks and solder masks, positioning it as one of the most comprehensive producers in the industry[62] - The company has adopted a direct sales model to better serve customers and reduce intermediaries, responding to changes in downstream customer demand[56]

Financial Performance - The company's revenue for Q1 2021 was ¥172,066,050.78, representing an increase of 83.16% compared to ¥93,944,842.02 in the same period last year[8]. - Net profit attributable to shareholders for Q1 2021 was ¥17,118,000.90, up 113.87% from ¥8,004,077.75 in the previous year[8]. - Basic and diluted earnings per share for Q1 2021 were both ¥0.11, reflecting a growth of 120.00% from ¥0.05 in the same quarter last year[8]. - The company achieved operating revenue of CNY 172.07 million, a year-on-year increase of 83.16%, primarily due to the consolidation of Gaoshi's financial statements[30]. - The net profit attributable to shareholders of the listed company was CNY 17.12 million, representing a year-on-year growth of 113.87%, mainly due to the consolidation of Gaoshi's financial statements[30]. - The company reported a total comprehensive income of CNY 17,118,000.90 for the period, compared to CNY 8,004,077.75 in the previous year, indicating a growth of 113.4%[78]. Cash Flow - The net cash flow from operating activities reached ¥14,821,891.02, a significant increase of 338.64% compared to ¥3,379,061.26 in Q1 2020[8]. - Operating cash inflows totaled CNY 103.74 million, a 122.41% increase, attributed to higher collections and government subsidies received[26]. - The company's cash flow from operating activities showed a net inflow of CNY 14.82 million, a 338.64% increase, indicating improved cash management[26]. - Cash and cash equivalents at the end of the period amounted to CNY 97.03 million, an increase of 82.32% from the beginning of the period, driven by increased collections and the acquisition of Gaoshi[23]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,042,003,861.20, an increase of 3.03% from ¥1,011,401,807.13 at the end of the previous year[8]. - The company's total liabilities decreased to CNY 487,199,554.28 from CNY 499,553,163.89, showing a reduction of about 2.71%[57]. - The company's equity attributable to shareholders increased to CNY 554,804,306.92, up from CNY 511,848,643.24, marking a growth of approximately 8.37%[60]. - The company's total liabilities to equity ratio improved to approximately 0.88, down from 0.97, indicating a stronger equity position relative to liabilities[57]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,763[12]. - Major shareholders include Lin Haiwang with 13.53% and Yang Yuchun with 12.85% of the shares[12]. Research and Development - Research and development expenses increased by 59.02% compared to the previous period[30]. - Research and development expenses amounted to CNY 9,053,275.35, compared to CNY 5,693,257.39 in the previous year, an increase of about 59.5%[72]. - The company has increased its patent portfolio, with a total of 40 patents, including 38 invention patents and 2 utility model patents, as of the reporting period[32]. Risks and Challenges - The company faces risks related to concentrated product application areas, particularly in the PCB and flat panel display industries, which may impact profitability due to market fluctuations[35]. - The company is at risk of declining gross margins due to increasing competition from both domestic and foreign manufacturers in the electronic chemicals sector[36]. - Raw material costs, which constitute a significant portion of the company's expenses, have been volatile, impacting production stability and profitability[40]. - The company has seen an increase in accounts receivable, which poses a risk to its financial stability if major customers face operational difficulties[39]. Government Support - The company received government subsidies amounting to ¥1,520,315.26 during the reporting period[8]. - The electronic chemicals industry in China is expected to experience significant growth due to government support and investment in strategic emerging industries[31]. Other Financial Information - The company has issued 1,248,000 convertible bonds, with a total share count of 156,753,349 shares post-issuance[41]. - The company did not report any violations regarding external guarantees or non-operational fund occupation by major shareholders during the reporting period[47]. - The company did not apply the new leasing standards for the financial statements starting from 2021[97]. - The first quarter report for 2021 was not audited[99].

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].