Financial Performance - The company's operating revenue for 2020 was ¥900,255,186.07, representing an increase of 11.85% compared to ¥804,898,109.37 in 2019 [20]. - The net profit attributable to shareholders for 2020 was ¥137,309,895.84, a growth of 44.05% from ¥95,324,016.84 in 2019 [20]. - The net profit after deducting non-recurring gains and losses was ¥124,032,991.03, which is a 57.99% increase from ¥78,505,926.53 in 2019 [20]. - The basic earnings per share for 2020 was ¥0.91, up 44.44% from ¥0.63 in 2019 [20]. - The total assets at the end of 2020 amounted to ¥1,166,236,014.48, reflecting a 13.72% increase from ¥1,025,548,438.93 at the end of 2019 [20]. - The company reported a net cash flow from operating activities of ¥111,776,621.65, which is a 7.70% increase compared to ¥103,789,952.21 in 2019 [20]. - The company's total operating revenue for 2020 was ¥900,255,186.07, representing an increase of 11.85% compared to ¥804,898,109.37 in 2019 [54]. - The net profit attributable to the parent company was 137.31 million yuan, reflecting a growth of 44.05% compared to the previous year [43]. Dividend Distribution - The company plans to distribute a cash dividend of 4 RMB per 10 shares to all shareholders, based on a total of 15,067,300 shares [6]. - The cash dividend for 2020 represents 43.89% of the net profit attributable to the shareholders of the listed company [128]. - The company has maintained a consistent dividend policy over the past three years, with cash dividends of 1.10 RMB, 1.50 RMB, and 4 RMB per 10 shares for 2018, 2019, and 2020 respectively [127]. - The total distributable profit for the year was 436,201,237.15 RMB, with the cash dividend accounting for 100% of the profit distribution [126]. - The cash dividend distribution plan was approved at the annual general meeting held on May 22, 2020 [125]. Risk Management - The company emphasizes the importance of risk awareness regarding raw material supply and price fluctuations, exchange rate risks, and environmental protection [6]. - The company has disclosed potential risks in its future development outlook section, which investors should pay attention to [6]. - The company recognizes the risk of intensified industry competition and is preparing to address potential challenges in quality control and product liability [117]. - The company faces risks related to safety production and the transportation of hazardous chemicals, which require high operational standards [118]. - The company is actively monitoring market trends and potential risks to inform its future development strategies [121]. Research and Development - The company focuses on continuous R&D investment, enhancing its capabilities in new materials and production automation [34]. - Research and development investment for 2020 was 29.91 million yuan, with a total of 35 patents filed, including 29 invention patents [43]. - The company has formed a collaborative R&D system with universities and research institutions, improving its innovation efficiency [40]. - The company is currently in the process of developing new products and technologies, although specific details were not disclosed in the provided content [84]. - The company is committed to innovation-driven and sustainable development strategies in line with national policies [104]. Market Presence and Strategy - The company has a diverse customer base across various industries, including polyurethane, textiles, and electronics, indicating strong market presence [29]. - The company achieved an international market export revenue of 10.19% of its main business income in 2020 [34]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year [135]. - The company plans to enhance its production management to control operational costs and improve economic efficiency [115]. - The company aims to enhance its competitive strength and profitability, striving for dual improvements in revenue and profit levels [159]. Compliance and Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management [5]. - The company has adhered to the guidelines set by the China Securities Regulatory Commission regarding profit distribution policies [125]. - The company will publicly disclose specific reasons for any failure to fulfill commitments made in the prospectus, along with an apology to shareholders and the public [161]. - The company has established a framework to ensure compliance with the commitments made during its initial public offering [162]. - The company confirmed that all commitments made to minority shareholders were fulfilled on time [171]. Environmental and Safety Management - The company has established a dedicated safety and environmental protection department, with no administrative penalties reported during the period [46]. - The company is focusing on green transformation in the chemical industry, promoting clean production and resource recycling [106]. - Environmental protection costs are increasing due to stricter pollution control standards, which may impact the company's normal operations as production scales up [119]. - The company has improved its production processes to control pollutants, but the increasing scale of production may lead to higher emissions of waste materials [119]. - The company has faced increased safety review requirements for projects involving hazardous materials following a major chemical accident in Jiangsu province [93].

Financial Performance - Net profit attributable to shareholders increased by 34.19% to CNY 40,495,986.81 for the reporting period[7] - Operating revenue for the reporting period was CNY 235,196,408.25, reflecting a 14.79% increase year-on-year[7] - The net profit after deducting non-recurring gains and losses was CNY 35,159,369.14, up 26.92% compared to the same period last year[7] - Basic earnings per share rose by 34.10% to CNY 0.2694 for the reporting period[7] - The weighted average return on net assets increased to 4.47%, up 0.68% from the previous year[7] - The net profit for Q3 2020 was CNY 39,722,548.05, representing a 32.4% increase from CNY 30,042,944.87 in Q3 2019[43] - The company's total operating revenue for the current period is CNY 619,358,290.64, an increase from CNY 598,786,265.45 in the previous period, representing a growth of approximately 0.96%[49] - The net profit for the current period is CNY 93,919,788.13, compared to CNY 66,870,759.77 in the previous period, indicating a significant increase of approximately 40.5%[51] Assets and Liabilities - Total assets increased by 7.91% to CNY 1,106,646,700.12 compared to the end of the previous year[7] - Current assets totaled CNY 753,369,510.78, compared to CNY 699,466,811.94 at the end of 2019, reflecting a growth of approximately 7.7%[33] - The company's equity stood at CNY 953,352,880.14, up from CNY 880,360,213.95 at the end of 2019[35] - The total liabilities as of September 30, 2020, were CNY 138,197,000.91, an increase from CNY 127,045,714.91, reflecting a rise of 8.5%[39] - Total liabilities amounted to CNY 145,188,224.98, with current liabilities at CNY 117,527,397.63 and non-current liabilities at CNY 27,660,827.35[68] Cash Flow - The net cash flow from operating activities was negative at CNY -33,510,435.81, a decrease of 277.58% compared to the same period last year[7] - The cash flow from operating activities generated a net amount of CNY 68,415,916.74, down 20% from CNY 85,465,579.72 in the previous period[59] - The net cash flow from operating activities for the period was ¥46,498,027.04, a decrease of 66.3% compared to ¥137,580,378.71 in the previous period[61] - Total cash inflow from investment activities was ¥193,209,170.85, while cash outflow was ¥402,886,350.03, resulting in a net cash flow of -¥209,677,179.18, worsening from -¥123,534,490.02 in the previous period[61] Shareholder Information - The total number of shareholders at the end of the reporting period was 12,021[10] - The largest shareholder, Yu Zizhou, holds 24.29% of the shares, totaling 36,597,117 shares[10] - The company completed the repurchase and cancellation of 7,000 restricted stocks, reducing total shares from 15,068,000 to 15,067,300[21] Government Subsidies - The company received government subsidies amounting to CNY 2,524,552.94, which are closely related to its business operations[8] - The company received a government subsidy of ¥300,000 for the R&D building project on September 14, 2020[22] Research and Development - Research and development expenses for Q3 2020 were CNY 11,481,616.28, which is a substantial increase of 94.5% compared to CNY 5,906,918.89 in Q3 2019[42] - Research and development expenses for the current period amount to CNY 22,242,645.35, an increase from CNY 18,647,224.74 in the previous period, representing a growth of about 19%[49] Other Financial Metrics - The company's financial activities included a 59.57% increase in cash payments related to investment activities, totaling ¥433,000,000.00 compared to ¥271,360,000.00 in the previous year[19] - The company's income tax payable increased by 200.93% to ¥10,122,790.54 from ¥3,363,821.21, mainly due to an increase in corporate income tax[19] - The company reported a profit before tax of CNY 44,797,555.79, compared to CNY 34,271,307.78 in the previous year, indicating a growth of 30.5%[43]

Corporate Governance - The legal representative of the company is Yu Zizhou[13]. - All directors attended the board meeting to review the report[4]. - The company has not changed its registered address or contact information during the reporting period[15]. - The company has not reported any changes in its information disclosure practices during the reporting period[16]. - The company has not engaged in any related party transactions during the reporting period[98]. - The company did not experience any major litigation or arbitration matters during the reporting period[89]. - The company has not reported any major product liability claims or legal disputes since its establishment[77]. - The company has not engaged in derivative investments or entrusted loans during the reporting period[70][71]. - The company has not sold any major assets or equity during the reporting period[72][73]. - The company did not have any penalties or rectification situations during the reporting period[90]. - The company has not reported any changes in fundraising projects during the reporting period[61]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[134]. - The company has not engaged in any repurchase transactions among its top 10 shareholders during the reporting period[133]. - The company has not reported any changes in its board of directors, supervisors, or senior management during the reporting period[144]. Financial Performance - The company's operating revenue for the reporting period was ¥384,161,882.39, a decrease of 2.47% compared to the same period last year[18]. - Net profit attributable to shareholders increased by 49.31% to ¥55,398,849.73, while the net profit after deducting non-recurring gains and losses rose by 66.14% to ¥48,659,622.11[18]. - Basic earnings per share increased by 48.79% to ¥0.3681, and diluted earnings per share rose by 48.87% to ¥0.3680[18]. - Total assets at the end of the reporting period reached ¥1,092,723,380.72, reflecting a growth of 6.55% compared to the end of the previous year[18]. - The company's cash and cash equivalents decreased by 130.76 million yuan, a decline of 67.76%, primarily due to investments in financial products[32]. - The company reported a net profit of 1,300 million CNY with an annualized return rate of 4.80% for its financial products[64]. - The company achieved a net income of 14.7 million, reflecting a 13.56% increase compared to the previous period[67]. - The company reported a total comprehensive income of 37,787,139.00 RMB for the first half of 2020[184]. Research and Development - Research and development investment for the first half of 2020 was 10.76 million yuan, with a total of 40 patents held, including 28 invention patents[39][40]. - The company focuses on R&D in fine chemical new materials, with core technologies in some products being at a leading domestic level[31]. - The company plans to invest in the expansion of its technology research and development center to enhance product innovation capabilities[78]. - The company is focusing on developing new technologies to enhance product offerings and meet market demands[68]. Market and Sales - The company emphasizes a direct sales model and customer-centric service to enhance market penetration and customer relationships[28]. - The international market export revenue accounted for 9.91% of the main business income in the first half of 2020, highlighting the company's efforts in market expansion[31]. - The company aims to enhance its market share and brand influence through optimized marketing channels and increased brand promotion[40]. - The company exported products worth 38.06 million yuan in the first half of 2020, expanding its customer base internationally[34]. Environmental Management - The company is classified as a key pollutant discharge unit by environmental protection authorities[111]. - Total COD emissions were reported at 2.848 tons per year, with no exceedance of discharge standards[111]. - The company has implemented strict environmental protection measures, ensuring all pollution control facilities are operational and compliant with environmental impact assessments[115]. - The company has engaged third-party services for soil and groundwater monitoring, ensuring compliance with environmental standards[119]. - The company has established a contract with a qualified hazardous waste disposal unit for the proper handling of hazardous waste generated during production[119]. Financial Management - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[5]. - The total amount of raised funds was CNY 21,822,000, with CNY 167,210 used in the reporting period[56]. - The company has a total of CNY 11,639,090 remaining in raised funds as of June 30, 2020, including investment income and bank interest[56]. - The company is expected to maintain a low-risk investment strategy for its financial products in 2020[66]. - The company is actively managing its financial assets to ensure a stable return amidst market fluctuations[66]. Share Capital and Ownership - The company’s total share capital decreased from 150,682,000 shares to 150,680,000 shares due to the repurchase and cancellation of restricted stock[93]. - The largest shareholder, Yu Zizhou, holds 24.91% of the shares, amounting to 37,539,617 shares[132]. - A total of 60,493,766 restricted shares were released during the reporting period, leaving 40,242,169 restricted shares[130]. - The company’s registered capital changed from RMB 150,682,000 to RMB 150,680,000 following the cancellation of restricted stock[93]. Operational Efficiency - The company is in the process of relocating its R&D office to a more advantageous location to enhance operational efficiency and market competitiveness[59]. - The company has initiated a strategy to enhance operational efficiency and optimize resource allocation[68]. - The company aims to improve its overall operational management and market competitiveness through the expansion of its R&D facilities[59]. Risk Management - The company has detailed the risks it faces and corresponding countermeasures in the report[4]. - The company faces risks from intensified industry competition, particularly in the surfactant market, which may affect its market position[76]. - Environmental protection and safety production risks are significant concerns due to the nature of the chemicals handled by the company[79].

[Company Overview and Shareholder Information](index=3&type=section&id=Section%202%20Company%20Basic%20Information) This section provides an overview of the company's key financial data, shareholder structure, and changes in restricted shares during the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2020, the company's total operating revenue decreased by 18.26% year-over-year, but net profit attributable to shareholders increased by 35.54%, and non-recurring net profit surged by 67.25%, driven by higher gross profit and investment income, with operating cash flow turning positive Q1 2020 Key Financial Indicators | Indicator | Current Period | Prior Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (RMB) | 167,469,781.07 | 204,883,868.21 | -18.26% | | Net Profit Attributable to Shareholders (RMB) | 19,765,999.98 | 14,583,323.29 | 35.54% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items (RMB) | 17,155,912.79 | 10,257,700.02 | 67.25% | | Net Cash Flow from Operating Activities (RMB) | 42,938,338.62 | -12,683,453.79 | Not Applicable | | Basic Earnings Per Share (RMB/share) | 0.13 | 0.10 | 30.00% | | Total Assets (RMB) | 1,093,386,528.49 | 1,025,548,438.93 (Prior Year-End) | 6.61% | Q1 2020 Non-recurring Gains and Losses | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Government Grants | 410,246.30 | - | | Investment Income from Financial Assets | 4,417,175.22 | Primarily investment income from wealth management products | | Net Other Non-operating Income/Expenses | -1,773,729.71 | Primarily charitable donations | | **Total** | **2,610,087.19** | - | [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period%20End) As of the reporting period end, the company had 9,843 common shareholders, with the top ten shareholders collectively holding 51.02% of shares, indicating a relatively concentrated ownership structure, led by Yu Zizhou with a 25.44% stake - At the end of the reporting period, the company had **9,843** common shareholders[11](index=11&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Yu Zizhou | 25.44% | 38,335,317 | | Xu Changsheng | 6.09% | 9,180,205 | | Yang Sixue | 4.62% | 6,956,456 | | Hao Sizhen | 2.63% | 3,962,425 | | Dong Xiaohong | 2.38% | 3,588,744 | | Shi Chenghua | 2.37% | 3,566,887 | | Hao Yun | 2.33% | 3,516,183 | | China-Belgium Direct Equity Investment Fund | 1.87% | 2,820,768 | | Hao Meilin | 1.75% | 2,641,499 | | Jiangsu Gaotou Xinhai Venture Capital Co., Ltd. | 1.54% | 2,318,169 | [Changes in Restricted Shares](index=5&type=section&id=III.%20Changes%20in%20Restricted%20Shares) During the reporting period, the company saw a significant release of restricted shares, totaling 60,486,766 shares, including 47,231,876 shares from initial public offering restrictions and partial executive lock-up shares, reducing the period-end restricted share count to 40,242,169 shares - During the reporting period, due to initial public offering restrictions and executive lock-ups, the company released a total of **60,486,766** restricted shares, reducing the period-end restricted share count from **100,728,935** shares at the beginning of the period to **40,242,169** shares[15](index=15&type=chunk) - The remaining **47,231,876** shares held by **36** shareholders from the initial public offering restrictions were released on February 13, 2020[14](index=14&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Section%203%20Significant%20Matters) This section provides an in-depth analysis of the company's financial performance, operational highlights, research and development progress, and key risks, along with updates on significant corporate events and the use of raised funds [Analysis of Significant Changes in Financial Position](index=7&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20and%20Their%20Causes) During the reporting period, several balance sheet items experienced significant changes, with a substantial decrease in monetary funds primarily due to the purchase of wealth management products, leading to a corresponding surge in other current assets, while accounts receivable rose due to sales seasonality and construction in progress increased from ongoing investment in the Huai'an project Key Balance Sheet Item Changes (March 2020 vs. End of 2019) | Item | Change Rate | Primary Reason for Change | | :--- | :--- | :--- | | Monetary Funds | -76.98% | Primarily due to using idle monetary funds to purchase wealth management products | | Accounts Receivable | 84.08% | Primarily due to sales seasonality | | Other Current Assets | 78.47% | Primarily due to increased purchases of wealth management products | | Construction in Progress | 77.35% | Primarily due to increased construction in progress in Huai'an | | Notes Payable | 184.08% | Primarily due to increased issuance of bank acceptance bills | - Investment income surged by **929.14%** year-over-year, primarily due to increased returns from wealth management products[19](index=19&type=chunk) [Operating Review and Outlook](index=7&type=section&id=II.%20Business%20Review%20and%20Outlook) Despite a year-over-year decline in Q1 operating revenue, the company achieved significant net profit growth by improving gross sales margin and investment income, while continuously advancing multiple high-value-added new material R&D projects and addressing risks such as industry competition, quality control, and environmental safety [Operating Performance](index=7&type=section&id=Specific%20Factors%20Driving%20Business%20Revenue%20Changes%20During%20the%20Reporting%20Period) In Q1 2020, the company achieved operating revenue of **RMB 167.47 million**, a year-over-year decrease of **18.26%**, but net profit attributable to the parent company reached **RMB 19.77 million**, a **35.54%** increase year-over-year, primarily driven by higher gross sales margin and investment income from wealth management products - The increase in net profit during the reporting period was primarily due to higher gross sales margin and increased income from wealth management products[20](index=20&type=chunk) [R&D Project Progress](index=7&type=section&id=Progress%20and%20Impact%20of%20Key%20R%26D%20Projects) The company is actively advancing **10** key R&D projects to enhance product competitiveness and added value, with several projects like polyetheramine BS-1 and epoxy-terminated allyl polyether entering pilot-scale production, while polyetheramine gasoline detergents and microchannel reaction synthesis flame retardants are in the lab-scale phase, aiming to fill domestic gaps, innovate technologies, and reduce environmental pollution - The company has multiple R&D projects in the pilot-scale production phase, including the development of **polyetheramine BS-1**, **epoxy-terminated allyl polyether**, and **alcohol ether alkyl glycosides**, aiming to provide data for industrial production and fill domestic gaps[20](index=20&type=chunk)[21](index=21&type=chunk) - Several projects are in the lab-scale phase, focusing on cutting-edge areas such as polyetheramine gasoline detergents, microchannel reaction synthesis technology, and silane-modified polyether silicone rubber, with the goal of enhancing product performance and achieving energy-efficient and safe production[21](index=21&type=chunk)[22](index=22&type=chunk) [Major Suppliers and Customers](index=9&type=section&id=Changes%20and%20Impact%20of%20the%20Company%27s%20Top%205%20Suppliers%20During%20the%20Reporting%20Period) During the reporting period, the concentration of both the top five suppliers and top five customers decreased, with procurement from the top five suppliers falling from **46.72%** to **40.36%**, and sales to the top five customers significantly dropping from **10.6%** to **4.96%**, indicating a more diversified customer and supplier base Changes in Top Five Suppliers and Customers | Item | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Top Five Suppliers' Procurement Share | 40.36% | 46.72% | -6.36% | | Top Five Customers' Sales Share | 4.96% | 10.6% | -5.64% | [Risk Factors and Countermeasures](index=9&type=section&id=Significant%20Risk%20Factors%20Adversely%20Affecting%20the%20Company%27s%20Future%20Operations) The company faces key operational risks including intensified industry competition, product quality control, new product R&D failure or technological obsolescence, and safety production and environmental protection risks, all of which could adversely impact its business, financial condition, and reputation - Intensified industry competition: The polyetheramine industry attracts new entrants due to high gross margins, while alkyl glycosides face competition from substitutes[23](index=23&type=chunk) - New product R&D and technology substitution risks: The company may lose its technological and market leadership if it fails to accurately grasp industry trends or effectively promote new technologies[25](index=25&type=chunk) - Safety production and environmental risks: The company's production involves hazardous chemicals and high-temperature, high-pressure processes, posing risks of safety accidents and "three wastes" (waste gas, waste water, and industrial residue) emission treatment[26](index=26&type=chunk) [Progress of Significant Matters](index=10&type=section&id=III.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) During the reporting period, the company made two significant advancements: multiple new projects are under construction at Huai'an Chenhua New Materials Co., Ltd., including polyether, polyetheramine, and flame retardant projects; and on February 13, 2020, the company released most of its pre-IPO restricted shares, with 56,797,732 shares becoming tradable - Multiple new projects are under construction at the Huai'an subsidiary, including **8,000 tons** of polyether, **1,500 tons** of capped polyether, **13,000 tons** of polyetheramine, and **20,000 tons** of flame retardant projects[27](index=27&type=chunk) - On February 13, 2020, a portion of the company's shares issued before its initial public offering were released from restrictions, with **56,797,732** shares becoming tradable, representing **37.6943%** of the company's total share capital[27](index=27&type=chunk)[28](index=28&type=chunk) [Use of Raised Funds](index=11&type=section&id=V.%20Comparison%20Table%20of%20Raised%20Funds%20Usage) As of the reporting period end, cumulative raised funds invested totaled **RMB 114.23 million**, with an investment progress of approximately **52%**, while the "R&D Building Project" lagged due to site changes but has entered the implementation phase, and the company adjusted the location and total investment for the original "R&D Center Expansion Project" to align with new strategic layouts, with unused funds primarily allocated to wealth management products and special accounts Progress of Committed Investment Projects Using Raised Funds | Committed Investment Project | Adjusted Total Investment (RMB 10,000) | Cumulative Investment as of Period End (RMB 10,000) | Investment Progress | | :--- | :--- | :--- | :--- | | Annual Production of 15,000 Tons of Alkyl Glycosides Project | 5,900.45 | 5,179.98 | 87.79% | | Annual Production of 5,000 Tons of Polyetheramine Project | 6,915.55 | 1,242.89 | 17.97% | | R&D Building Project | 4,006 | 0 | 0.00% | | Supplement Working Capital | 5,000 | 5,000 | 100.00% | - The "R&D Building Project" (formerly the R&D Center Expansion Project) experienced delays due to a change in implementation location as the company sought a more advantageous transportation site, but it entered the implementation phase in 2020[30](index=30&type=chunk) - Of the **RMB 116.16 million** in unused raised funds, the majority (**RMB 107.60 million**) was used to purchase various brokerage wealth management products[32](index=32&type=chunk) [Financial Statements and Notes](index=14&type=section&id=Section%204%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first quarter of 2020, including balance sheets, income statements, and cash flow statements, along with explanations for financial statement adjustments and the audit status [Consolidated Financial Statements](index=14&type=section&id=1.%20Consolidated%20Balance%20Sheet) This section presents the company's consolidated balance sheet, income statement, and cash flow statement for Q1 2020, with key data indicating growth in total assets, an increase in total liabilities, and steady growth in owner's equity, while the income statement reflects a trend of declining revenue but increasing profit, and the cash flow statement shows significant improvement in operating cash flow but substantial investment outflows Consolidated Financial Statements Summary (Q1 2020) | Statement Item | Period-End/Current Period Amount (RMB) | | :--- | :--- | | **Balance Sheet** | | | Total Assets | 1,093,386,528.49 | | Total Liabilities | 191,143,602.02 | | Equity Attributable to Parent Company Owners | 874,054,291.87 | | **Income Statement** | | | Total Operating Revenue | 167,469,781.07 | | Total Profit | 22,066,634.75 | | Net Profit Attributable to Parent Company Owners | 19,765,999.98 | | **Cash Flow Statement** | | | Net Cash Flow from Operating Activities | 42,938,338.62 | | Net Cash Flow from Investing Activities | -204,324,098.83 | | Net Increase in Cash and Cash Equivalents | -147,740,624.98 | [Parent Company Financial Statements](index=17&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) This section provides the parent company's balance sheet, income statement, and cash flow statement for Q1 2020, with its financial position and operating results generally consistent with consolidated trends, but specific figures reflecting the parent company's standalone operations [Explanation of Financial Statement Adjustments](index=27&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) In accordance with Ministry of Finance requirements, the company adopted new revenue recognition standards effective January 1, 2020, primarily reclassifying amounts related to sales of goods and services previously in "Advances from Customers" to "Contract Liabilities," with no impact on total assets or net profit - Effective January 1, 2020, the company adopted new revenue recognition standards, reclassifying advances from customers related to sales of goods and services to contract liabilities[67](index=67&type=chunk)[70](index=70&type=chunk) Accounting Standard Change Adjustment Example (Consolidated Statement) | Item | December 31, 2019 | Adjustment Amount | January 01, 2020 | | :--- | :--- | :--- | :--- | | Advances from Customers | 6,192,594.16 | -6,192,594.16 | 0 | | Contract Liabilities | 0 | 6,192,594.16 | 6,192,594.16 | [Audit Opinion](index=31&type=section&id=III.%20Audit%20Report) The company's Q1 2020 report is unaudited - The company's first-quarter report is unaudited[71](index=71&type=chunk)

Financial Performance - The company's operating revenue for 2019 was ¥804,898,109.37, representing a 2.30% increase from ¥786,803,315.11 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥95,324,016.84, a 10.59% increase compared to ¥86,198,035.33 in 2018[18]. - The net cash flow from operating activities increased by 49.40% to ¥103,789,952.21 in 2019 from ¥69,471,230.08 in 2018[18]. - The total assets at the end of 2019 were ¥1,025,548,438.93, a 14.84% increase from ¥893,032,948.07 at the end of 2018[18]. - The company's basic earnings per share for 2019 was ¥0.63, up 10.53% from ¥0.57 in 2018[18]. - The company reported a total of ¥16,818,090.31 in non-recurring gains and losses for 2019, compared to ¥12,322,850.54 in 2018[25]. - In 2019, the company achieved total operating revenue of CNY 804.90 million, a year-on-year increase of 2.3%[43]. - The net profit attributable to the parent company was CNY 95.32 million, reflecting a growth of 10.59% compared to the previous year[43]. - The company reported a gross margin of 25.87% for the fine chemical new materials sector, a decrease of 2.63% compared to the previous year[52]. - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2019, representing a year-over-year growth of 15%[126]. Dividend Distribution - The company plans to distribute a cash dividend of 1.5 RMB per 10 shares to all shareholders, based on a total of 150,680,000 shares[4]. - The cash dividend for 2018 was 1.10 yuan per 10 shares, amounting to 16,575,020 yuan (including tax)[119]. - The cash dividend for 2017 was 1.00 yuan per 10 shares, totaling 15,000,000 yuan (including tax)[119]. - The cash dividend in 2019 accounted for 23.71% of the net profit attributable to ordinary shareholders[120]. Research and Development - Research and development investment for 2019 was CNY 24.17 million, with a total of 30 patents obtained during the period[43]. - The company has a professional R&D team of 93 members, enabling it to respond quickly to market demands and develop new products[39]. - The company is currently in the trial production phase for several new products, including soft foam silicone oil and reactive flame-retardant polyether products[64]. - The company aims to develop high-performance, high-value-added fine chemical products, supported by various national development plans[99]. - The company plans to increase R&D investment in polyurethane catalysts, which are crucial for the development of the polyurethane industry, thereby ensuring sustained demand[106]. Market Expansion and Strategy - The company aims to expand the production scale of surfactants, flame retardants, and polyurethane functional additives to meet the growing market demand over the next three years[105]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next three years[126]. - A strategic acquisition of a local competitor was announced, expected to enhance production capacity by 30% and reduce operational costs[127]. - The company is committed to expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[80]. - The company is focused on expanding its market presence and enhancing competitiveness through strategic partnerships and technological advancements[98]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and forecasts, as detailed in the section on potential operational risks[4]. - The company acknowledges risks related to product liability claims and the potential impact on its business and reputation[112]. - The company faces risks associated with the transportation of hazardous chemicals, which could affect its raw material supply[112]. - The company recognizes the risk of intensified market competition due to the rapid growth of the fine chemical industry and plans to increase R&D investment to meet customer demands[148]. Financial Management - The company has implemented a fundraising management system to ensure that raised funds are properly allocated and managed[148]. - The company plans to enhance the efficiency of fund utilization from the fundraising projects to achieve expected benefits and improve profitability[149]. - The company is committed to maintaining a low-risk profile in its financial management activities[189]. - The company has reported a total of 1,000 million yuan in fixed-income products with an annualized return of 4.00%[190]. Corporate Governance - The company strictly fulfilled the share restriction commitments made during the initial public offering, with the commitment period lasting from February 13, 2017, to February 13, 2020[121]. - The company commits to comply with relevant laws and regulations regarding share reduction during the lock-up period[125]. - The company will stop paying salaries to directors and senior management who fail to fulfill their commitments for 10 trading days[140]. - The company guarantees to assume compensation responsibilities for any losses caused to investors due to unfulfilled commitments[155]. Environmental Commitment - The company has implemented measures to control pollution and improve environmental protection in its production processes[112]. - The company is committed to sustainability initiatives, with a goal to reduce carbon emissions by 30% over the next five years[162]. - The company is dedicated to advancing its silicone rubber project, expanding its applications in emerging fields such as electronics and renewable energy[106]. Subsidiaries and Investments - The company has established two new subsidiaries in 2019: Nanjing Chenhua New Materials Technology Co., Ltd. and Yangzhou Chenhua New Materials Sales Co., Ltd., which were included in the consolidated financial statements for the year[171]. - The company made a significant equity investment of ¥62,844,500.00 in Huai'an Chenhua New Materials Co., Ltd., acquiring a 100% stake[79]. - The company has not made any significant equity investments during the reporting period, focusing instead on internal growth and project development[81].

扬州晨化新材料股份有限公司 2019 年第三季度报告全文 扬州晨化新材料股份有限公司 2019 年第三季度报告 2019-100 2019 年 10 月 1 扬州晨化新材料股份有限公司 2019 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 扬州晨化新材料股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 980,350,778.86 | | 893,032,948.07 | 9.78% | | 归属于上市公司股东的净资产 | 812,943,122.69 | | 755,340,368.90 | 7.63% | | （元） | | | | | | | 本报告期 | ...

Financial Performance - Total revenue for the reporting period was ¥393,901,992.31, a decrease of 0.11% compared to the same period last year[18]. - Net profit attributable to shareholders increased by 13.26% to ¥37,104,468.51 from ¥32,758,996.36 in the previous year[18]. - Operating cash flow increased significantly by 493.44% to ¥42,270,181.27, compared to ¥7,122,909.84 in the same period last year[18]. - Basic earnings per share rose by 13.28% to ¥0.2474, while diluted earnings per share increased by 13.19% to ¥0.2472[18]. - Total assets at the end of the reporting period were ¥902,885,177.88, reflecting a 1.10% increase from the previous year[18]. - The company’s net assets attributable to shareholders increased by 3.23% to ¥779,753,599.82 compared to the end of the previous year[18]. - The company achieved operating revenue of 393.90 million yuan, a slight decrease of 0.11% compared to the same period last year[40]. - The net profit attributable to the parent company was 37.10 million yuan, an increase of 13.26% year-on-year[40]. - Research and development investment amounted to 12.74 million yuan, representing 3.23% of operating revenue[40]. - The company reported a total revenue of 1,500 million for the first half of 2019, reflecting a year-on-year increase of 20%[72]. - The total revenue for the first half of 2019 was 28,256 million RMB, with a net profit of 1,034 million RMB, representing a growth of 9.88% compared to the previous period[77]. Cash Flow and Financial Management - The net cash flow from operating activities surged by 493.44% to RMB 42.27 million, compared to RMB 7.12 million in the same period last year[47]. - The company's total cash inflow from operating activities was significantly higher than the cash outflow, leading to a positive cash flow situation for the first half of 2019[172]. - The cash flow from financing activities showed a net outflow of -¥16,589,984.40, an improvement from -¥30,518,104.98 in the previous year, indicating a reduction in cash outflow by approximately 45.5%[173]. - The company has engaged in high-risk entrusted financial management, with specific amounts and safety concerns noted[69]. - The expected annualized return for the financial products is 4.40% for 998 million yuan and 4.00% for 1,000 million yuan[71]. Research and Development - The company focuses on R&D in new materials and processes, with some core technologies at a leading domestic level[31]. - Research and development investment increased by 15.08% to RMB 12.74 million, up from RMB 11.07 million in the previous year[47]. - The company has achieved industry-leading product quality in China, with its alkyl glycosides and flame retardants obtaining EU REACH certification for overseas markets[87]. - The company plans to enhance its R&D capabilities by investing in the expansion of its technology research and development center to support continuous innovation[87]. Subsidiaries and Market Presence - The company has subsidiaries including 淮安晨化 and 南京晨化, which contribute to its operational capabilities[9]. - The company established a wholly-owned subsidiary, Nanjing Chenhua New Materials Technology Co., Ltd., with an investment of RMB 5 million, which obtained its business license on July 17, 2019[85]. - The company is focused on expanding its market presence through enhanced marketing strategies and product customization[41]. - The company plans to expand its market presence in 2020, targeting a 10% increase in market share[72]. Compliance and Governance - The financial report ensures the accuracy and completeness of the financial data presented, with the responsible parties affirming their accountability[3]. - The board of directors confirmed that all members attended the meeting to review the report, ensuring governance compliance[4]. - The company emphasizes its commitment to transparency and adherence to regulatory requirements in its disclosures[16]. - The company has not engaged in any related party transactions during the reporting period[104]. Environmental and Safety Measures - The company has established a wastewater treatment station that meets the standards for discharge into the town's sewage treatment company after pre-treatment[116]. - The company has implemented various environmental protection measures, including the installation of online monitoring for COD and pH values, and the construction of a 2,000 m² simple greenhouse to address outdoor storage issues[116]. - The company has not reported any violations of environmental protection laws and regulations during the reporting period[117]. - The company faces risks related to safety production and environmental protection, particularly concerning the handling of hazardous chemicals and waste emissions[89]. Shareholder Information - The total number of shares after the reduction of restricted stock will be 150,680,000 shares, with registered capital decreasing from 150.682 million RMB to 150.680 million RMB[130]. - The total number of common shareholders at the end of the reporting period is 11,048[132]. - The largest shareholder, Yu Zizhou, holds 25.44% of the shares, totaling 38,335,317 shares[132]. - The company has not conducted any repurchase transactions among its top ten shareholders during the reporting period[133]. Risks and Challenges - The company has not experienced any major product liability claims or related legal disputes since its establishment, but risks remain in this area[88]. - The company anticipates significant competition in the surfactant industry, particularly in the mid-end amino polyether segment, due to its high gross margin attracting new market participants[86]. - The company has completed REACH registration for several products, enabling sales in the EU market, which supports international business growth[31].

Financial Performance - The company's operating revenue for 2018 was ¥786,803,315.11, representing an increase of 11.86% compared to ¥703,400,869.93 in 2017[17]. - The net profit attributable to shareholders for 2018 was ¥86,198,035.33, a growth of 9.27% from ¥78,887,694.74 in 2017[17]. - The net cash flow from operating activities increased significantly by 92.43% to ¥69,471,230.08 in 2018, compared to ¥36,102,333.89 in 2017[17]. - The total assets at the end of 2018 reached ¥893,032,948.07, marking a 9.63% increase from ¥814,565,647.91 at the end of 2017[17]. - The company's basic earnings per share for 2018 was ¥0.5742, up 6.33% from ¥0.54 in 2017[17]. - The company reported a weighted average return on equity of 12.00% for 2018, down from 12.97% in 2017[17]. - The company achieved total operating revenue of 786.80 million yuan in 2018, representing a year-on-year growth of 11.86%[50]. - The net profit attributable to the parent company was 86.20 million yuan, an increase of 9.27% compared to the previous year[43]. - The gross profit margin for the fine chemical new materials industry was 22.29%, a decrease of 1.50% compared to the previous year[53]. Dividend Distribution - The company plans to distribute a cash dividend of 1.10 RMB per 10 shares to all shareholders, based on a total of 150,682,000 shares[4]. - The cash dividend distribution accounted for 100% of the total distributable profit of 259.404 million CNY[108]. - The company reported a cash dividend of 1.00 CNY per 10 shares for the year 2017, totaling 15 million CNY[109]. - In 2018, the cash dividend amount was 16,575,020.00, representing 19.23% of the net profit attributable to ordinary shareholders[111]. - In 2017, the cash dividend amount was 15,000,000.00, which accounted for 19.01% of the net profit attributable to ordinary shareholders[111]. - In 2016, the cash dividend amount was 10,000,000.00, corresponding to 18.01% of the net profit attributable to ordinary shareholders[111]. Research and Development - The company has a professional R&D team of 82 members, including 4 core technical personnel, enhancing its ability to meet customer demands[39]. - Research and development investment reached 24.85 million yuan, accounting for 3.16% of operating revenue, with a total of 34 patents filed during the period[43]. - The company added 4 national patents during the reporting period, bringing the total to 34 patents, including 29 invention patents[39]. - The company is currently in the trial production phase for several R&D projects, including high-efficiency alkyl glycosides for daily chemicals and curing agents for epoxy resins[64][65]. - The company plans to continue investing in high value-added products to strengthen its competitive advantage in the industry[45]. - The company plans to enhance R&D investment in polyurethane catalysts, which are crucial for the development of the polyurethane industry, thereby ensuring sustained demand and growth[98]. Market Presence and Strategy - The company has a diverse customer base across various industries, including polyurethane, textiles, and electronics, indicating strong market presence[27]. - The company's international market export revenue accounted for 11.48% of main business income in 2018, steadily rising from 10.67% in 2016 and 9.78% in 2017[33]. - The company exported products worth 89.92 million yuan in 2018, with export amounts increasing from 62.42 million yuan in 2016 and 68.40 million yuan in 2017[36]. - The company is focusing on expanding its market share and brand influence through optimized marketing channels and enhanced service tracking[88]. - The company aims to expand the production scale of surfactants, flame retardants, and polyurethane functional additives to meet the growing market demand over the next three years[96]. - The company plans to enhance its main business to improve overall market competitiveness and profitability[138]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and forecasts, as stated in the report[4]. - The company has faced risks related to quality control and product liability, which are critical as production scales up[102]. - The company acknowledges potential risks related to the decline in net profit growth rate and net asset return rate due to the public offering[137]. - The company is exposed to risks from increasing competition in the surfactants industry, particularly in high-margin segments[101]. - The company acknowledges the risks associated with market demand fluctuations and raw material price volatility, which could significantly impact profitability[141]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[3]. - The company has established a mechanism to ensure that any share reductions comply with the initial public offering price and relevant regulations[115]. - The company has committed to maintaining transparency in shareholding changes and will report any changes to shareholders[114]. - The company has established measures to compensate investors for any losses incurred due to non-fulfillment of commitments[118]. - The company will strictly adhere to relevant laws and regulations regarding related party transactions to ensure transparency and compliance[125]. Sustainability and Social Responsibility - The company is committed to maintaining a sustainable growth strategy while enhancing shareholder value[184]. - The company actively engages in social responsibility initiatives, including support for underprivileged children and students, and was awarded the "Chinese Red Cross Compassion Medal" in 2018[199]. - The management emphasized a commitment to sustainability, aiming to reduce production waste by 15% over the next three years[151]. - The company is focusing on the development of eco-friendly products in response to increasing consumer demand for safety and environmental protection[94]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[147]. - Future guidance includes maintaining a focus on sustainability, with plans to reduce carbon emissions by 15% over the next five years[146]. - The company plans to continue its research and development efforts to innovate new materials and technologies[184]. - The company is exploring potential mergers and acquisitions to strengthen its market position[185].

Financial Performance - Total revenue for Q1 2019 was CNY 204,883,868.21, representing a 12.36% increase compared to CNY 182,338,035.88 in the same period last year[7] - Net profit attributable to shareholders was CNY 14,583,323.29, up 22.39% from CNY 11,915,834.21 year-on-year[7] - Basic earnings per share increased by 25.00% to CNY 0.10 from CNY 0.08 in the previous year[7] - The total profit for the period was 15.87 million yuan, an increase of 20.07% compared to the previous year[16] - Net profit for the current period was ¥14,499,460.01, representing a 21.8% increase from ¥11,915,834.21 in the previous period[49] - Total operating revenue for the current period reached ¥204,883,868.21, an increase of 12.4% compared to ¥182,338,035.88 in the previous period[46] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 889,343,045.34, a 9.31% increase from CNY 813,595,267.27 at the end of the previous year[7] - Total assets decreased from ¥893,032,948.07 to ¥889,343,045.34, a decline of approximately 0.77%[38] - Current liabilities decreased from ¥105,436,610.24 to ¥89,772,764.06, a reduction of about 14.92%[39] - Non-current liabilities decreased from ¥24,256,262.34 to ¥17,648,951.96, a decrease of approximately 27.06%[39] - Total liabilities decreased from ¥129,692,872.58 to ¥107,421,716.02, a decline of around 17.14%[39] - Owner's equity increased from ¥763,340,075.49 to ¥781,921,329.32, an increase of approximately 2.43%[40] Cash Flow - The net cash flow from operating activities was negative at CNY -12,683,453.79, compared to CNY -2,155,870.67 in the same period last year[7] - Operating cash inflow for the current period was CNY 115,176,189.75, a decrease of 6.5% from CNY 123,477,281.50 in the previous period[55] - Cash and cash equivalents decreased from CNY 114,976,925.65 on December 31, 2018, to CNY 50,815,179.78 on March 31, 2019[37] - Cash and cash equivalents decreased from ¥88,949,656.48 to ¥46,686,198.35, a decline of about 47.5%[42] - Cash outflow from investment activities totaled CNY 86,139,959.93, down 17.3% from CNY 104,030,947.26 in the previous period[56] Research and Development - Research and development expenses increased by 43.33% to 6.56 million yuan, primarily due to increased investment in new product development[15] - The company successfully completed the research and development of several key projects, including high-efficiency alkyl glycosides and polyether amine curing agents[17] - The company plans to enhance its market competitiveness through the development of new technologies and products, aiming to break foreign technology monopolies[17] - The company plans to expand its R&D capabilities by investing in a new R&D building, covering an area of approximately 12,776 square meters[25] - Research and development expenses rose to ¥6,560,521.73, up 43.4% from ¥4,577,014.05 in the previous period[46] Shareholder Information - The company had a total of 11,567 common shareholders at the end of the reporting period[11] - The largest shareholder, Yu Zizhou, held 25.44% of the shares, totaling 38,335,317 shares[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] Market and Production - The company established a new branch in Shanghai, obtaining the business license on January 25, 2019[23] - The production base in Huai'an completed three projects, including 13,200 tons of end amino polyether and 15,000 tons of alkyl glycoside, which have entered trial production[23] - The company is in the trial production phase for its 15,000 tons alkyl glycoside project, which is part of its fundraising investment projects[23] Compliance and Risk Management - The company emphasizes strict quality control, with its products achieving industry-leading status in China and obtaining EU REACH certification for certain products[20] - The company has not faced any major product liability claims or related legal issues since its establishment, but recognizes the potential risks in the future[20] - The company is aware of the increasing environmental protection standards and the associated costs as it expands production[22] - The company is committed to addressing safety production risks associated with hazardous chemicals used in its manufacturing processes[22]

Financial Performance - Operating revenue for the reporting period was ¥206,032,268.58, reflecting a year-on-year growth of 15.51%[7] - Net profit attributable to shareholders was ¥31,124,626.13, representing a significant increase of 36.05% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥26,928,361.19, up by 32.83% year-on-year[7] - Basic earnings per share for the reporting period was ¥0.2066, an increase of 30.84% compared to the same period last year[7] - The weighted average return on equity was 4.32%, an increase of 0.78% compared to the previous year[7] - Total operating revenue for the third quarter reached CNY 206,032,268.58, an increase from CNY 178,361,355.82 in the previous period[40] - Net profit for the third quarter was CNY 31,124,626.13, representing a growth of 36.16% from CNY 22,878,178.95 in the previous year[43] - The total profit for the third quarter was CNY 34,600,403.49, an increase of 33.67% from CNY 25,927,795.04 in the previous year[43] - The company's operating revenue for the third quarter reached ¥618,592,618.71, an increase from ¥513,247,531.81 in the previous period[53] - Net profit for the third quarter was ¥63,883,622.49, compared to ¥62,019,528.44 in the same period last year, reflecting a growth of approximately 3%[50] - The total profit for the third quarter was ¥72,229,575.24, up from ¥70,248,414.25 in the previous year, indicating an increase of about 2.8%[50] Assets and Liabilities - Total assets at the end of the reporting period reached ¥877,803,735.77, an increase of 7.76% compared to the end of the previous year[7] - Total assets as of the end of the period were CNY 877,803,735.77, compared to CNY 814,565,647.91 at the beginning of the year[35] - Total liabilities increased to CNY 144,904,485.63 from CNY 130,768,220.34, reflecting a rise of 10.4%[35] - Owner's equity rose to CNY 732,899,250.14, up from CNY 683,797,427.57, marking an increase of 7.2%[35] - Cash and cash equivalents decreased by 86.72% to ¥23,867,121.73 from ¥179,728,839.12 due to investment in financial products[20] - The ending balance of cash and cash equivalents decreased to ¥23,867,121.73 from ¥179,425,181.78 at the beginning of the period[58] - The company’s cash and cash equivalents at the end of the period were significantly lower than the previous year’s balance of ¥148,751,169.70[58] Cash Flow - The company reported a net cash flow from operating activities of ¥22,004,859.60 for the year-to-date[7] - Operating cash flow increased to ¥22,004,859.60 from a negative cash flow of ¥20,998,944.40, driven by an increase in accounts payable for procurement[20] - The net cash flow from operating activities for the third quarter was ¥28,370,430.85, compared to a net outflow of ¥23,820,505.54 in the same period last year, indicating a significant improvement[60] - Total cash inflow from investment activities was ¥281,893,689.59, while cash outflow was ¥429,118,516.23, resulting in a net cash flow of -¥147,224,826.64 for the quarter[57] - The company reported a total cash inflow from financing activities of ¥4,959,850.57, with cash outflow amounting to ¥35,619,464.98, leading to a net cash flow of -¥30,659,614.41[61] - The cash flow from investment activities for the year-to-date was -¥127,393,257.69, showing a decrease from -¥235,157,996.83 in the previous year[60] Shareholder Information - The total number of shareholders at the end of the reporting period was 12,231[11] - The largest shareholder, Yu Zizhou, holds 25.44% of the shares, totaling 38,335,317 shares[11] Research and Development - R&D expenses grew by 67.66% to ¥16,861,243.57 from ¥10,056,760.19, reflecting increased investment in research and development[20] - Research and development expenses for the quarter were CNY 5,790,428.41, slightly higher than CNY 5,587,057.58 in the previous period[40] - Research and development expenses for the third quarter were CNY 5,790,428.41, slightly up from CNY 5,587,057.58 year-on-year[45] Other Financial Metrics - Non-recurring gains and losses amounted to ¥7,034,645.25, primarily from government subsidies and investment income[8] - Other current assets rose by 63.62% to ¥323,446,095.35 from ¥197,680,866.69, attributed to the investment of idle cash in financial products[20] - Fixed assets increased by 74.31% to ¥95,360,667.33 from ¥54,710,181.52, mainly due to the increase in fixed assets of the subsidiary Huai'an Chenhua[20] - The company reported other income of CNY 6,556,752.12, an increase from CNY 4,634,739.96 year-on-year[46] - The company recorded other income of ¥12,530,876.36, an increase from ¥10,461,338.98 in the previous period[53] - The company experienced an asset impairment loss of CNY 705,082.63 in the third quarter, down from CNY 1,849,998.12 in the previous year[45] - The gross profit margin improved to 21.63% in the third quarter, compared to 24.73% in the same period last year[45] - Gross profit margin for the period is approximately 11.1%, compared to the previous period's margin[40]