Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2018, representing a year-on-year growth of 25%[1]. - Total revenue for the first half of 2018 reached ¥713,141,456.56, an increase of 27.18% compared to ¥560,753,680.95 in the same period last year[28]. - Net profit attributable to shareholders was ¥86,213,095.95, representing a 49.98% increase from ¥57,482,130.73 year-on-year[28]. - The net profit after deducting non-recurring gains and losses was ¥82,368,404.13, up 45.85% from ¥56,476,441.64 in the previous year[28]. - The basic earnings per share increased to ¥0.4790, a rise of 45.81% compared to ¥0.3285 in the same period last year[28]. - The company's operating profit reached CNY 107,109,569.83, reflecting a year-on-year increase of 58.80%[57]. - The total operating costs were CNY 611,326,685.78, which is a 24.0% increase from CNY 493,176,903.93 in the same period last year[175]. - The company reported a total comprehensive income for the first half of 2018 of CNY 88,362,456.35, up 53.2% from CNY 57,707,457.63 in the previous year[176]. Investment and Development - The company plans to invest 200 million RMB in new product development and technology upgrades in the next fiscal year, aiming to enhance its competitive edge in the market[1]. - The company aims to become a globally recognized supplier of polymer material aging resistance solutions, driven by innovation and market expansion strategies[37]. - The company plans to enhance its innovation-driven development model with the establishment of a new R&D center[47]. - The company reported a significant increase in R&D investment, which increased by 37.13% to CNY 33,543,344.05, driven by enhanced efforts in developing new products, processes, and applications[63]. - The company has established a strong customer base, including global leaders such as BASF and DuPont, enhancing its market position[50]. Market Expansion - The company is expanding its market presence in Southeast Asia, with plans to establish a new distribution center in Singapore by Q4 2018[1]. - The company has established a significant competitive advantage through its management team, technical innovation, and global marketing network, enhancing brand recognition in regions like Europe, the USA, Japan, and South Korea[40]. - The company's sales model includes direct sales and distribution, with subsidiaries in Hong Kong, the USA, Germany, and Japan to serve global clients effectively[38]. - The company has established Rianlon Japan Co., Ltd. to expand into the Japanese polymer material anti-aging additives market, which is expected to positively impact overall operations and performance[92]. Financial Position - The total assets at the end of the reporting period were ¥1,692,461,145.73, reflecting a growth of 13.53% from ¥1,490,758,731.95 at the end of the previous year[28]. - The company's cash and cash equivalents increased by 49.07% compared to the beginning of the period, mainly due to the maturity of raised funds[42]. - The company's total liabilities reached CNY 702,799,484.61, up from CNY 569,517,464.41, indicating a rise of about 23.3%[167]. - Owner's equity increased to CNY 989,661,661.12 from CNY 921,241,267.54, reflecting a growth of approximately 7.4%[168]. Risks and Challenges - The company faces risks related to raw material price fluctuations, which have increased by approximately 10% due to international oil price volatility[1]. - The company reported a 5% increase in accounts receivable, raising concerns about potential collection risks as business scales[1]. - The company is currently managing several construction projects, with delays expected due to stricter environmental regulations impacting project timelines[1]. - The company is experiencing management challenges due to rapid expansion, necessitating enhanced training and recruitment of skilled personnel[98]. Environmental Compliance - The company emphasizes strict adherence to environmental protection and safety production measures to mitigate risks associated with flammable and explosive chemical materials used in production[93]. - The company has implemented measures to ensure that all emissions meet environmental standards, with no exceedance reported for various pollutants[128][129]. - The company has established a robust environmental management system to monitor and control emissions effectively[128][129]. Shareholder Information - The company’s total share capital is 180,000,000 shares, with 75% of shares subject to trading restrictions[143]. - The first employee stock ownership plan was approved on March 19, 2018, during the first employee representative meeting[110]. - The plan was officially approved at the second extraordinary shareholders' meeting on April 12, 2018[112]. - The company reported no significant asset or equity sales during the reporting period[89][90]. Operational Efficiency - The company has implemented measures to manage accounts receivable risks, including performance assessments for sales personnel and categorizing clients based on their financial health[97]. - The company has not encountered any overdue or unrecoverable amounts in its entrusted wealth management activities[86]. - The company has engaged qualified units for the treatment of hazardous solid waste, ensuring compliance with regulations[129].

Financial Performance - Total revenue for Q1 2018 was CNY 323,360,251.97, representing a 13.60% increase compared to CNY 284,648,109.13 in the same period last year[6]. - Net profit attributable to shareholders was CNY 35,488,367.06, up 16.41% from CNY 30,484,913.82 year-on-year[6]. - Basic earnings per share decreased by 28.83% to CNY 0.1972 from CNY 0.2771 in the previous year[6]. - The total operating revenue for the first quarter was CNY 323,360,251.97, an increase of 13.6% compared to CNY 284,648,109.13 in the same period last year[47]. - The total operating costs amounted to CNY 281,859,061.48, up from CNY 248,678,855.83, reflecting a year-over-year increase of 13.3%[47]. - The company's total profit for Q1 2018 was CNY 43,097,743.80, reflecting a growth of 20.5% from CNY 35,635,418.83 in Q1 2017[48]. - The gross profit margin improved to 11.5% in Q1 2018, compared to 10.5% in Q1 2017[51]. - The financial expenses for Q1 2018 were CNY 6,482,831.45, significantly higher than CNY 2,107,607.59 in Q1 2017, marking an increase of 208.5%[51]. Cash Flow - The net cash flow from operating activities was negative at CNY -40,978,383.50, a decline of 533.98% compared to CNY 9,442,379.59 in the same period last year[6]. - The company's cash flow from operating activities rose by 389.18% to CNY 3,870,528.72, mainly due to government subsidies and deposit refunds[23]. - Total cash inflow from operating activities was 241,126,442.49 CNY, while cash outflow was 282,104,825.99 CNY, resulting in a net cash flow deficit[55]. - The company reported a net increase in cash and cash equivalents of -58,246,682.61 CNY, contrasting with an increase of 267,992,619.80 CNY in the previous period[56]. - Cash and cash equivalents decreased from 253,954,993.34 RMB at the beginning of the period to 195,225,620.29 RMB at the end of the period, representing a decline of approximately 23%[39]. Assets and Liabilities - Total assets increased by 5.42% to CNY 1,571,572,858.55 from CNY 1,490,758,731.95 at the end of the previous year[6]. - The total liabilities increased to CNY 614,411,140.61 from CNY 569,517,464.41, representing a rise of 7.9%[41]. - The owner's equity totaled CNY 957,161,717.94, up from CNY 921,241,267.54, marking a growth of 3.9%[42]. - Accounts receivable increased from 197,395,977.95 RMB to 218,560,596.83 RMB, indicating a growth of about 10.6%[39]. - Inventory rose from 282,319,338.80 RMB to 330,211,858.12 RMB, reflecting an increase of approximately 17%[39]. Investments and Projects - The company received government subsidies amounting to CNY 635,050.04 during the reporting period[7]. - The company approved the first employee stock ownership plan on March 22, 2018, to enhance employee engagement and align interests with shareholders[25]. - The project for the expansion of the antioxidant production facility has not yet commenced, with 0% progress reported[30]. - The second phase of the UV absorber project has achieved 93.33% completion, with RMB 5.96 million invested to date[30]. - The new R&D center project has only reached 14.08% completion, with RMB 319.49 million invested[30]. Risks and Challenges - The company faced risks related to raw material cost fluctuations, which significantly impact production costs[9]. - The company reported an increase in accounts receivable, raising concerns about potential collection risks due to economic changes[10]. - The company is experiencing management challenges due to rapid business expansion, necessitating a higher demand for skilled personnel[10]. Profit Distribution - The adjusted profit distribution plan for 2017 proposes a cash dividend of RMB 1.09 per 10 shares, totaling RMB 19,620,000, based on a total share capital of 180,000,000 shares[26]. - There were no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[35][36].

Financial Performance - The company's operating revenue for 2017 was CNY 1,142,409,913.44, representing a 41.33% increase compared to CNY 808,312,727.20 in 2016[22]. - The net profit attributable to shareholders for 2017 was CNY 130,500,277.88, which is a 44.08% increase from CNY 90,577,461.79 in 2016[22]. - The net profit after deducting non-recurring gains and losses was CNY 125,291,737.68, up 43.83% from CNY 87,109,252.86 in 2016[22]. - The total assets at the end of 2017 reached CNY 1,490,758,731.95, a 65.10% increase from CNY 902,964,701.95 at the end of 2016[22]. - The net assets attributable to shareholders increased by 77.63% to CNY 896,170,460.61 from CNY 504,509,251.66 in 2016[22]. - The basic earnings per share for 2017 was CNY 0.74, a decrease of 26.73% compared to CNY 1.01 in 2016[22]. - The weighted average return on equity for 2017 was 16.01%, down from 19.72% in 2016[22]. - The net cash flow from operating activities was CNY 31,396,413.38, an increase of 30.84% from CNY 23,995,643.76 in 2016[22]. - The company reported a net profit of RMB 80,339,956.16 for the year 2017 after accounting for a 10% statutory surplus reserve[120]. - The cash dividend payout ratio for 2017 is 14.21% of the net profit attributable to ordinary shareholders, which was RMB 130,500,277.88[123]. Market and Business Environment - The overall macroeconomic environment showed signs of recovery, leading to increased market demand, but uncertainties remain that could affect performance[5]. - The company’s export business is significantly affected by exchange rate fluctuations, with the RMB appreciating during the reporting period, impacting international competitiveness[5]. - The company’s reliance on international markets makes it vulnerable to changes in export tax policies[5]. - The domestic market for anti-aging agents is expected to grow due to increasing demand from downstream industries like coatings, plastics, and rubber, positioning the company favorably in a long-term beneficial environment[103]. - The company faces risks related to raw material cost fluctuations, which significantly impact production costs due to high dependency on direct materials[4]. - The company is exposed to environmental and safety production risks due to the use of flammable and explosive chemical materials in its anti-aging agent production process[110]. Strategic Initiatives and Growth Plans - The company aims to become a globally recognized supplier of polymer material aging solutions, focusing on innovation-driven development[32]. - The company has established strong partnerships with global leaders in polymer materials, including BASF, DuPont, and LG Chem, enhancing its market position[30]. - The company aims to enhance its U-PACK product offerings and global customer collaboration capabilities to become a leader in the global anti-aging technology field[38]. - The company is focused on optimizing product structure and enhancing supply capabilities to address production capacity constraints[54]. - The company plans to accelerate the construction of a new R&D center and strengthen its innovation-driven development model[44]. - The company is actively investing in projects across its subsidiaries, including Li'anlong (Zhongwei) New Materials Co., Ltd. and Zhejiang Changshan Kerun New Materials Co., Ltd., to enhance production capacity[106]. Research and Development - The company has a robust R&D framework, collaborating with universities and research institutions to enhance its technological capabilities[32]. - Research and development expenses amounted to ¥53,040,872.03, representing 4.64% of total revenue, an increase from 4.22% the previous year[79]. - The company completed the development of five new products and twelve new processes for existing products during the year[75]. - The company plans to increase R&D investment to strengthen technological innovation and enhance competitive capabilities[152]. Risk Management - The company has implemented sufficient provisions for bad debts, but remains exposed to risks if major clients face financial difficulties[5]. - The company has implemented measures to manage accounts receivable risks, including performance assessments for sales personnel and legal actions for debt collection[112]. - The company is focused on enhancing its brand influence and customer relationships to effectively transfer the risks associated with raw material price fluctuations[109]. - The company is committed to refining its management systems to adapt to rapid growth and ensure compliance with safety and environmental regulations[107]. Environmental and Safety Compliance - The company emphasizes the importance of EHS (Environment, Health, and Safety) management, committing to improve safety and environmental standards as part of its sustainable development strategy[108]. - The company maintained compliance with environmental regulations, ensuring that wastewater and emissions met national standards, with no exceedances reported[187]. - The company reported no exceedance in emissions, with VOCs emissions totaling 34.28 tons and toluene and xylene combined emissions at 4.192 tons[184]. - The company’s pollution control facilities are operational and will see increased investment to ensure stable compliance with emission standards[186]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of RMB 1.03 per share, totaling RMB 18,540,000, based on a total share capital of 180,000,000 shares[120]. - The company has committed to strictly adhere to its profit distribution policies, including cash dividend policies, ensuring the sustainability of profit distribution decisions[125]. - The company will implement a stable cash dividend plan and improve the profit distribution system, particularly focusing on cash dividends[153]. - The company has established a commitment to maintain and develop its continuous profitability capabilities[127]. Acquisitions and Investments - The company acquired 70% of Zhejiang Changshan Kerun New Materials Co., Ltd. through equity transfer and capital increase, enhancing its production capacity in polymer material aging resistance agents[55]. - The company has committed to investing in high polymer materials and anti-aging agents, indicating a focus on expanding its product offerings in this sector[90]. - The company is undergoing significant investments for global expansion, impacting cash flow from investment activities[80]. Corporate Governance - The company emphasized the importance of independent decision-making and the legal responsibilities of its board of directors[132]. - The company will ensure that any unavoidable related party transactions comply with relevant laws and regulations[128]. - The company has made a long-term commitment to not harm the legal rights of its shareholders through related party transactions[128].

Financial Performance - Operating revenue for the reporting period reached CNY 310,195,030.83, a year-on-year increase of 47.97%[8] - Net profit attributable to shareholders was CNY 35,910,204.06, up 45.82% year-on-year[8] - Net profit after deducting non-recurring gains and losses was CNY 35,152,970.63, an increase of 43.75% year-on-year[8] - The company’s net profit increased by 37.62% to CNY 324,386,259.71, attributed to improved operational performance during the reporting period[17] - The net profit attributable to the parent company was CNY 93,392,334.79, up 27.2% from CNY 73,456,800.93 in the same period last year[44] - The total comprehensive income for the period was CNY 93,355,335.53, compared to CNY 74,097,800.04 in the same period last year, indicating a growth of 26.0%[44] Assets and Liabilities - Total assets increased by 48.99% to CNY 1,345,314,001.13 compared to the end of the previous year[8] - The total liabilities of the company amounted to CNY 449,694,372.27, up from CNY 398,389,643.23, indicating a rise of approximately 12.9%[28] - The company's total liabilities increased to ¥377,113,548.82 from ¥346,735,520.29, which is an increase of approximately 8.0%[32] - The company's total assets increased significantly, with fixed assets rising by 32.37% to CNY 289,982,858.87, due to the completion of investment projects[17] - As of September 30, 2017, the total assets of Tianjin Lianlong New Materials Co., Ltd. reached CNY 1,345,314,001.13, an increase from CNY 902,964,701.95 at the beginning of the period, reflecting a growth of approximately 48.9%[26] Cash Flow - Cash flow from operating activities increased significantly by 499.94% to CNY 23,331,641.28 year-to-date[8] - The company reported a net cash flow from operating activities of CNY 23,331,641.28, significantly higher than CNY 3,888,985.73 in the previous period[48] - The company's operating cash flow for the period was 38,858,475.45 yuan, compared to a negative cash flow of -6,857,370.02 yuan in the previous period, indicating a significant improvement[53] - Total cash and cash equivalents at the end of the period reached 348,940,442.26 yuan, up from 110,217,171.55 yuan at the beginning of the period, reflecting a net increase of 238,723,270.71 yuan[51][53] - The company received 284,700,000.00 yuan from investment activities, contributing to a net cash inflow from financing activities of 319,052,844.51 yuan[54] Shareholder Information - The total number of shareholders at the end of the reporting period was 13,560[12] - The equity attributable to the owners of the parent company increased to CNY 869,591,584.01 from CNY 504,509,251.66, reflecting a growth of around 72.3%[29] Expenses - Financial expenses surged by 871.63% to CNY 7,972,719.76, primarily due to increased interest expenses from additional borrowings and foreign exchange losses from the depreciation of the US dollar[17] - The company incurred management expenses of CNY 55,573,148.01, which is an increase of 65.0% from CNY 33,621,236.11 in the previous period[43] - The company incurred sales expenses of ¥23,153,052.03, which is an increase from ¥12,282,590.34, reflecting a rise of about 88.5%[35] Investments and Subsidiaries - The company established a subsidiary in Zhuhai to invest in a polymer material anti-aging agent project, with a total investment of approximately CNY 2 billion, including CNY 1.2 billion in fixed assets[19] - The company acquired a 70% stake in Zhejiang Changshan Kerun New Materials Co., Ltd., enhancing its market supply capacity and product structure[18] Earnings Per Share - Basic earnings per share decreased by 27.08% to CNY 0.1995 compared to the same period last year[8] - Earnings per share (EPS) for the third quarter was reported at ¥0.1995, down from ¥0.2736 in the previous year[36] - The basic and diluted earnings per share were both CNY 0.5286, down from CNY 0.8162 in the previous period[44]

Financial Performance - Total revenue for the reporting period reached ¥560,753,680.95, an increase of 47.42% compared to ¥380,374,658.03 in the same period last year[21]. - Net profit attributable to shareholders was ¥57,482,130.73, up 17.72% from ¥48,830,122.47 year-on-year[21]. - Net profit after deducting non-recurring gains and losses was ¥56,476,441.64, reflecting a 20.79% increase from ¥46,757,287.76 in the previous year[21]. - Basic earnings per share decreased by 39.46% to ¥0.3285 from ¥0.5426 in the previous year[21]. - Total assets increased by 33.51% to ¥1,205,521,777.73 from ¥902,964,701.95 at the end of the previous year[22]. - Net assets attributable to shareholders rose by 63.56% to ¥825,168,928.06 from ¥504,509,251.66 at the end of the previous year[22]. - The company reported a total comprehensive income of CNY 57,707,457.63, compared to CNY 49,055,119.42 in the previous year, an increase of 17.5%[180]. - The company reported a total revenue of 2,141.7 million RMB for the first half of 2017, representing a 3.82% increase compared to the approved transaction amount of 6,500 million RMB[125]. Cash Flow and Investments - The net cash flow from operating activities was -¥13,629,370.13, a decline of 233.71% compared to ¥10,193,601.64 in the same period last year[21]. - Cash flow from financing activities increased by 668.46% to ¥251,718,855.76, primarily due to new share issuance[55]. - The company has temporarily invested CNY 150 million of its raised funds in financial products and CNY 30 million in seven-day notice deposits[66]. - The company reported a total cash inflow from financing activities of CNY 436,299,098.48, compared to CNY 176,928,012.39 in the previous year[188]. - The cash outflow for investing activities was CNY 38,277,068.99, which increased from CNY 22,315,567.15 in the same period last year[187]. - The total cash and cash equivalents at the end of the period reached 255,034,635.85 CNY, up from 90,309,890.62 CNY at the beginning of the period, showing a net increase of 178,793,739.00 CNY[191]. Market and Competition - The company faces significant competition in the polymer materials chemical additives industry, particularly from international giants like BASF, impacting product pricing and gross margins[4]. - The company has a high proportion of export business, making it vulnerable to exchange rate fluctuations and changes in national export tax rebate policies, which can negatively impact performance[6]. - The company is positioned as a leading player in the polymer material aging resistance additives industry in China and has significant influence globally[36]. - The company faces risks from intensified market competition, particularly from international giants like BASF, which may pressure product pricing and profit margins[80]. Research and Development - The company has established itself as a leader in the research and development of anti-aging agents for polymer materials, but risks of technology leakage and talent loss could adversely affect operations[6]. - The company specializes in providing polymer material aging resistance chemical additives, including antioxidants and light stabilizers, and has established partnerships with major global manufacturers such as BASF and DuPont[29]. - The company has a strong focus on R&D, employing a "self-research + cooperative research" model, and has been recognized as a technology center by the Tianjin government[32]. - R&D expenses for the first half of the year amounted to ¥24,460,556.41, an increase of 80.57% year-on-year[55]. - The company aims to enhance its innovation-driven development model by upgrading its R&D center and recruiting top talent globally[41]. Corporate Governance and Compliance - The company has introduced new governance structures and compliance measures post-IPO to enhance corporate governance[48]. - The company is committed to avoiding related party transactions that could harm the interests of its shareholders[93]. - The company will strictly adhere to laws and regulations regarding related party transactions, ensuring fairness and transparency[93]. - The company has established a long-term commitment to protect the rights and interests of minority investors[91]. - The company will ensure that any related party transactions are conducted under fair and reasonable conditions, adhering to normal commercial practices[98]. Environmental and Safety Measures - The company emphasizes the importance of environmental and safety measures in its production processes to mitigate risks associated with flammable chemical materials[5]. - The company is classified as a key pollutant discharge unit and has reported no exceedances in wastewater and air emissions during the reporting period[139][140]. - The company reported a wastewater discharge of 72,660 m³ with a COD emission of 67.60 tons, meeting the national discharge standards[141]. - The company plans to enhance its environmental management and investment to ensure stable compliance with pollutant discharge standards[141]. Future Outlook and Strategic Plans - The company has set a future outlook with a revenue target of 3 billion RMB for the full year 2017, which would require a 25% increase in the second half of the year[114]. - New product development includes the launch of two innovative materials expected to contribute an additional 200 million RMB in revenue by the end of 2017[113]. - The company plans to expand its market presence by entering three new international markets by Q4 2017, aiming for a 10% increase in overall market share[114]. - A strategic acquisition is in progress, targeting a company with an estimated valuation of 500 million RMB, which is expected to enhance the company's product portfolio and market reach[113]. - The company has committed to increasing R&D investment by 30% in 2017 to strengthen its competitive edge and innovation capabilities[113].

Financial Performance - Total revenue for Q1 2017 reached ¥284,648,109.13, an increase of 46.62% compared to ¥194,144,425.70 in the same period last year[8] - Net profit attributable to shareholders was ¥30,484,913.82, up 21.72% from ¥25,044,630.93 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥30,259,980.95, reflecting a 24.76% increase from ¥24,254,130.92 in the previous year[8] - The total profit reached ¥35,635,418.83, reflecting a growth of 23.20% year-over-year[22] - The growth in revenue and profit was driven by stable contributions from previous business, continuous growth in the spandex industry, and increased market share in new products[23] - The company reported a significant increase in cash flow from operating activities, indicating improved operational efficiency[78] - The net profit for the first quarter of 2017 was CNY 30,538,174.85, representing an increase of 28.7% compared to CNY 23,726,916.45 in the same period last year[82] Cash Flow and Assets - Operating cash flow for the period was ¥9,442,379.59, a significant rise of 92.76% compared to ¥4,898,435.46 in the same period last year[8] - The net cash received from operating activities was CNY 181,785,610.55, up 35.05% from CNY 134,605,613.92 year-on-year, primarily due to increased operating revenue[21] - The company's cash and cash equivalents increased by 177.61% to CNY 397,510,817.51, mainly due to funds raised from new share issuance[18] - The total assets at the end of the reporting period amounted to ¥1,166,146,749.35, representing a 29.15% increase from ¥902,964,701.95 at the end of the previous year[8] - The company's cash management plan allows for the temporary use of up to 180 million yuan of idle raised funds for cash management, including time deposits and low-risk investment products[62] Risks and Challenges - The company faces risks from intensified market competition, particularly from international giants like BASF, which may pressure product pricing and profit margins[10] - Fluctuations in raw material procurement costs pose a risk, as direct materials constitute a significant portion of the main business costs[10] - The company faces risks from intensified market competition, fluctuations in raw material costs, and potential safety and environmental issues[30][31] Shareholder Commitments and Governance - The company committed to a 36-month lock-up period for major shareholders, ensuring no transfer or repurchase of shares during this time[33] - The company has a long-term commitment to profit distribution policies, including cash dividends, to protect the rights of minority investors[34] - The company emphasizes the importance of timely, truthful, and accurate information disclosure regarding profit distribution decisions[35] - The company has established a profit distribution decision-making process that will be presented at shareholder meetings[35] - The company committed to avoiding related party transactions with its subsidiaries to ensure fair trading practices[36] Investment and Development Plans - The company plans to maintain stable growth in main business revenue and profit, focusing on product innovation and expanding market share[25] - The company plans to increase R&D investment to strengthen technological innovation and enhance competitive capabilities[56] - The company intends to maintain strong customer development efforts with top global companies, including the Global 500 and the top 50 chemical companies[56] Fundraising and Project Updates - The total amount of raised funds is CNY 27,160.74 million, with no funds utilized in the current quarter[61] - The cumulative amount of raised funds used is CNY 0, indicating no changes in fund allocation[61] - The project to expand the annual production of antioxidant agents by 11,500 tons has not yet commenced construction[61] - The project for producing 6,000 tons of UV absorbers (Phase II) has started construction using self-raised funds but is not yet completed[61] Compliance and Transparency - The company assures that there are no false records or misleading statements in the documents related to its public offering, which is crucial for maintaining investor trust[49] - The company has committed to compensating investors for any losses incurred due to unfulfilled commitments in securities trading[50] - The company has established a framework to ensure compliance with legal requirements for its public offering, reinforcing its commitment to regulatory standards[50]

Financial Performance - The company's operating revenue for 2016 was CNY 808,312,727.20, representing a 33.66% increase compared to CNY 604,731,953.57 in 2015[18]. - The net profit attributable to shareholders for 2016 was CNY 90,577,461.79, up 22.93% from CNY 73,682,755.49 in 2015[18]. - The net profit after deducting non-recurring gains and losses was CNY 87,109,252.86, reflecting a 23.26% increase from CNY 70,672,960.65 in 2015[18]. - The total assets at the end of 2016 were CNY 902,964,701.95, a 39.84% increase from CNY 645,692,551.76 at the end of 2015[18]. - The net assets attributable to shareholders increased by 21.79% to CNY 504,509,251.66 from CNY 414,257,383.91 at the end of 2015[18]. - The basic earnings per share for 2016 were CNY 1.0064, up 22.93% from CNY 0.8187 in 2015[18]. - The diluted earnings per share for 2016 were also CNY 1.0064, reflecting the same growth of 22.93% from CNY 0.8187 in 2015[18]. - The weighted average return on equity for 2016 was 19.72%, slightly up from 19.48% in 2015[18]. - The company reported a significant increase in total assets and net assets, indicating strong growth and financial health[18]. - The company's total revenue for the four quarters was approximately 194.14 million, 186.23 million, 209.64 million, and 218.30 million respectively, showing a growth trend in the latter half of the year[21]. - The net profit attributable to shareholders for the four quarters was approximately 25.04 million, 23.79 million, 24.63 million, and 17.12 million, indicating a decline in the fourth quarter[21]. - The net cash flow from operating activities decreased by 70.27% to CNY 23,995,643.76 from CNY 80,715,745.50 in 2015[18]. - The company achieved total operating revenue of ¥808,312,727.20, representing a year-on-year growth of 33.66%[53]. - The net profit attributable to shareholders reached ¥90,577,461.79, with a year-on-year increase of 22.93%[53]. - Total assets at the end of the reporting period were ¥902,964,701.95, up 39.84% from the previous year[53]. Dividend Distribution - The company reported a cash dividend of 1.05 RMB per 10 shares, with a capital reserve increase of 5 shares for every 10 shares held[5]. - The board of directors has approved a profit distribution plan based on a total share capital of 120 million shares[5]. - The cash dividend accounted for 100% of the total profit distribution[123]. - The company has not distributed ordinary share dividends in the previous two years, with the current proposal being the first in three years[126]. - The company has a total share capital of 120,000,000 shares, with a capital reserve plan to increase share capital by 5 shares for every 10 shares held[125]. - The company’s net profit for the reporting period was RMB 88,034,559.59[125]. - The company has complied with its dividend distribution policy as per its articles of association and shareholder resolutions[123]. - The company emphasizes the importance of a cash dividend system to enhance investor return mechanisms and protect the rights of small investors[130]. - The company is committed to maintaining sustainable profitability and ensuring the continuity of profit distribution to investors[131]. - The company will avoid related transactions with its controlling subsidiaries as much as possible, adhering to relevant laws and regulations[132]. - The company has established a future dividend return plan to guide its profit distribution policies[130]. Market Position and Competition - The company faces significant competition in the polymer materials industry, particularly from international giants like BASF, impacting pricing and profit margins[4]. - The company acknowledges the risks associated with intensified market competition and the need for continuous innovation to maintain its market position[4]. - The company has established strong partnerships with global leaders in the polymer materials industry, including BASF and DuPont, enhancing its market position[27]. - The company aims to become a leading enterprise in the global anti-aging field by continuously improving product series and differentiation[39]. - The company aims to maintain a competitive edge by enhancing customer satisfaction and loyalty through its U-PACK service capabilities[49]. - The company aims to achieve continuous growth in main business revenue and profit based on current growth rates[106]. - The goal is to become the industry leader in the domestic market for polymer material anti-aging technology, achieving the highest market share for antioxidant and light stabilizer products[107]. - The company plans to have over 75% of its sales revenue come from Fortune 500 companies and establish long-term partnerships with the top 20 global polymer material companies[107]. Research and Development - The company focuses on innovation-driven development, maintaining a dual approach of independent and collaborative research and development[31]. - The company is committed to innovation-driven development, with 25.74% of its workforce being technical personnel, including 1 PhD and 30 Master's degree holders[43]. - The company developed 9 new product projects in 2016, with 8 invention patents granted and 7 new applications submitted[76]. - The company plans to upgrade its R&D center to a research institute and enhance collaboration with Tianjin University, focusing on new generation light stabilizers[97]. - The company aims to enhance its product structure and market competitiveness through the development of new technologies and products, particularly in the U-PACK segment[75]. - The company is investing in new technology development, allocating 50 million towards R&D initiatives aimed at enhancing product efficiency[200]. Operational Efficiency and Management - The company emphasizes the importance of environmental and safety measures in its production processes to mitigate risks associated with flammable and explosive materials[4]. - The company has a stable procurement model based on demand, ensuring efficient supply chain management[32]. - The sales model combines direct sales and distribution, allowing the company to cater to both large global clients and regional customers effectively[34]. - The company is focused on improving management and controlling costs to enhance overall performance[148]. - The management emphasized the importance of maintaining operational efficiency, aiming for a 5% reduction in costs over the next fiscal year[200]. Corporate Governance and Compliance - The company has established a governance structure to protect shareholder rights, achieving a response rate of over 90% on the investor interaction platform since its listing in 2017[179]. - The company has committed to a cash dividend plan that aligns with its profit distribution system, ensuring timely and reasonable returns to investors[149]. - The company has not encountered any non-standard audit reports during the reporting period[153]. - The company will ensure timely information disclosure regarding any related transactions[135]. - The company has committed to maintaining the independence of its operations and decision-making processes[135]. - The company guarantees that it will not refuse to fulfill commitments due to changes in position or resignation, ensuring long-term accountability[140]. Environmental and Social Responsibility - The company practices sustainable development through continuous innovation and optimization of processes, significantly reducing production costs and emissions[182]. - The company is not listed as a key pollutant discharge unit by environmental protection authorities[183]. - The company actively participates in social welfare, including scholarships for underprivileged students and donations to those in need[181]. Future Outlook - The company plans to expand its antioxidant and light stabilizer production capacity to meet the demands of large clients for a complete product series[98]. - The company is establishing a global marketing service network and plans to set up an operating company in Japan to penetrate advanced coating and film material markets[98]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could add 300 million in annual revenue[200]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%, aiming for a total revenue between 1.65 billion and 1.68 billion[200].