证券代码：300637 证券简称：扬帆新材 浙江扬帆新材料股份有限公司投资者关系活动记录表 编号：2018-003 | --- | --- | --- | |----------------|----------------------------|------------------------------------| | | | | | | √ 特定对象调研 □分析师会议 | | | | □媒体采访 | □业绩说明会 | | 投资者关系 | □ 新闻发布会 □路演活动 | | | 活动类别 | □现场参观 | | | | □ 其他 | | | | 广发证券 | 吴鑫然； 太平洋证券 张波； | | | 中信证券 | 朱晓； 申万宏源 金铁桥； | | | 光大证券 | 徐亮、郭立胜； 富国基金 宋哲建； | | 参与单位名称及 | 国元证券 | 李朝松、毛正； 中融人寿 苗华； | | 人员姓名（排名 | 晖鸿投资 | 腾尧、叶啸剑； 茂典资产 唐忠杰； | | 不分大小前后） | 财通证券资管 | 邵沙锞； 松檀资本 徐彦锋； | | | 城投资本 | 包红政； 未来资产 王灵君； | | | 方际资 ...

Company Overview - The company has two production bases, one marketing company, and four R&D centers [3] - Main product series include thiol compounds and photoinitiators, with core competencies in full industry chain advantages and over 30 years of industry experience [3] Market Insights - The global demand for light-curing products was 533,000 tons in 2015, with the company holding a 50%-60% market share of the photoinitiator 907, equating to a production capacity of 2,000 tons [3][4] - The company anticipates an increase in production capacity to nearly 3,000 tons under ideal conditions [4] Pricing and Supply Dynamics - The price increase of photoinitiator 907 is attributed to rising upstream raw material costs, stricter environmental policies, and a decrease in market supply [4] - TPO prices rose from 100,000 CNY/ton to over 400,000 CNY/ton due to supply shortages from major suppliers [5][6] Future Projections - The Inner Mongolia project is expected to have a production capacity of 29,000 tons, including 11,000 tons of photoinitiators and 18,000 tons of pharmaceutical intermediates [6] - The market for TPO is estimated at 5,000 tons currently, with future capacity expected to reach around 8,000 tons [6] Shareholder Activity - The company disclosed that a shareholder plans to reduce holdings by no more than 2 million shares within the next six months [4] - Other shareholders have already reduced their stakes significantly, with some locked in for a period [4] Acquisition Strategy - The company is open to acquisitions in related industries, prioritizing those that align with its business model and offer synergistic benefits [5]

Revenue and Profit - Revenue for Q3 2022 reached ¥183,172,502.70, an increase of 16.39% compared to the same period last year[4] - Net profit attributable to shareholders was -¥2,216,767.80, a decrease of 24.17% year-on-year[4] - Net profit excluding non-recurring items was -¥2,566,464.94, down 8.22% from the previous year[4] - Total operating revenue for Q3 2022 reached CNY 593,054,621.33, an increase of 25.0% compared to CNY 474,651,935.08 in the same period last year[16] - Net profit attributable to shareholders of the parent company was CNY 11,137,965.35, a significant increase of 59.4% from CNY 6,995,118.84 in the previous year[18] - The total comprehensive income for the period was CNY 4,467,316.09, up from CNY 2,286,949.67, representing a growth of 95.5%[18] Cash Flow - Cash flow from operating activities for the year-to-date reached ¥79,825,795.82, a significant increase of 900.17%[4] - The cash inflow from operating activities for Q3 2022 was CNY 567,107,290.42, an increase from CNY 531,617,184.43 in Q3 2021, representing a growth of approximately 6.7%[21] - The net cash flow from operating activities was CNY 79,825,795.82, significantly higher than CNY 7,981,250.51 in the same period last year, indicating a substantial improvement[21] - The total cash outflow for operating activities was CNY 487,281,494.60, a decrease from CNY 523,635,933.92 in the previous year, showing a reduction of about 6.9%[21] - The company received CNY 60,396,322.01 in tax refunds, significantly higher than CNY 15,130,380.92 in Q3 2021, indicating improved cash flow from tax-related activities[21] Expenses - R&D expenses for the first nine months of 2022 totaled ¥32,407,174.17, up 54.87% year-on-year due to increased personnel and direct investment[9] - Sales expenses for the first nine months increased by 47.47% to ¥5,278,917.60, primarily due to higher marketing costs[9] - Research and development expenses increased to CNY 32,407,174.17, up 55.0% from CNY 20,925,926.31 in the same quarter last year[16] Assets and Liabilities - Total assets at the end of Q3 2022 were ¥1,372,789,233.05, a decrease of 1.91% from the end of the previous year[4] - Total current assets as of September 30, 2022, amount to ¥395,967,174.59, a decrease from ¥440,433,525.16 at the beginning of the year[14] - Total liabilities decreased to CNY 603,427,079.78 from CNY 633,451,884.66, reflecting a reduction of 4.0%[16] - The company's total equity increased slightly to CNY 769,362,153.27 from CNY 766,074,599.15, indicating a growth of 0.2%[16] Shareholder Information - Total number of common shareholders at the end of the reporting period is 13,660[10] - Zhejiang Yangfan Holding Group Co., Ltd. holds 23.69% of shares, totaling 55,606,200 shares, with 37,859,999 shares pledged[10] - SFC CO., LTD. holds 15.84% of shares, totaling 37,175,400 shares[10] Borrowings - Short-term borrowings increased by 35.80% to ¥333,405,805.05, reflecting a rise in financing needs[8] - Short-term borrowings as of September 30, 2022, amount to ¥333,405,805.05, an increase from ¥245,516,128.14[14] Inventory - Inventory as of September 30, 2022, is ¥206,224,736.53, an increase from ¥191,519,421.57[14] Investment Activities - The cash outflow from investing activities totaled CNY 93,730,832.59, down from CNY 168,435,032.78 in Q3 2021, reflecting a decrease of about 44.4%[21] - The net cash flow from investing activities was -CNY 70,401,329.50, an improvement compared to -CNY 113,390,161.26 in the previous year[21] - The company reported a cash inflow of CNY 23,300,000.00 from other investment activities, down from CNY 55,000,000.00 in Q3 2021, indicating a decrease of approximately 57.6%[21] Future Outlook - Future outlook and performance guidance were not explicitly mentioned in the provided content[11] - The company continues to focus on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[16]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 409,882,118.63, representing a 29.19% increase compared to CNY 317,269,757.86 in the same period last year[22]. - The net profit attributable to shareholders was CNY 13,354,733.15, up 34.65% from CNY 9,918,438.32 year-on-year[22]. - The net cash flow from operating activities reached CNY 71,921,998.54, a significant increase of 206.17% compared to CNY 23,490,915.29 in the previous year[22]. - Basic earnings per share increased by 50.00% to CNY 0.06 from CNY 0.04 in the same period last year[22]. - The gross profit margin for the overall business was 21.31%, with the gross profit margin for photoinitiators at 11.01% and for thiol compounds at 27.30%[82]. - The company's operating costs increased by 28.12% to ¥322.54 million, primarily due to the rise in revenue[80]. - The company's total assets decreased to CNY 1,081,207,220.90 from CNY 1,134,896,488.50, a decline of 4.7%[183]. - The company's total equity attributable to shareholders was reported at 234,235,000.00 yuan, reflecting a stable equity position despite fluctuations in cash flow[195]. Market and Industry Insights - The company focuses on fine chemicals, primarily producing photoinitiators and intermediates, which are widely used in pharmaceuticals, pesticides, and dyes[30]. - The radiation curing industry has shown continuous growth since 2016, with significant opportunities arising from the "dual carbon" strategy initiated in 2021, expanding applications in semiconductor, display, and communication sectors[31]. - The demand for photoinitiators is driven by the rapid development of radiation curing materials, which are more efficient, economical, and environmentally friendly compared to traditional high VOC solvent-based products[33]. - The Chinese pharmaceutical market is expected to reach RMB 2.3 trillion by 2025, with a compound annual growth rate (CAGR) of 7.20% from 2021 to 2025[40]. - The market size of China's pharmaceutical intermediates reached RMB 209 billion in 2020, projected to exceed RMB 290 billion by 2026[41]. Product Development and Innovation - The company is actively developing new products suitable for UV-LED light sources, including cationic photoinitiators and certain macromolecular photoinitiators, in response to market demand[34]. - The company has developed a full range of thiol compounds, which are essential for various applications in pharmaceuticals, pesticides, and dyes, enhancing its market position[46]. - The company is focusing on the development of new products such as macromolecular photoinitiators and sulfur-containing fine chemicals, with positive feedback from clients on trial products[64][66]. - The company emphasizes research and development, implementing a structured new product development process with clear technical and business review standards[53]. Operational Efficiency and Cost Management - The company maintains a competitive edge through a full industry chain advantage, ensuring lower costs and higher product quality[48]. - The company’s production model includes continuous production for stable customers and customized production for high-margin thiol compounds[50]. - The Inner Mongolia production base has achieved stable operation and is gradually ramping up production, significantly reducing production costs and enhancing product competitiveness[63]. - The company is committed to enhancing production automation and reducing the proportion of frontline operators to improve operational efficiency and cost control[105]. Environmental and Safety Management - The company has established a unified sales management model, with its wholly-owned subsidiary, Shouerfu Trading, handling external negotiations, quotations, and customer service[52]. - The company has constructed a new 20,000 m³/h regenerative thermal oxidizer for waste gas treatment, which is currently operating normally and meeting discharge standards[119]. - The company has established emergency response plans for environmental incidents, which have been filed with local environmental protection departments[124]. - Safety education and training were conducted at three levels, ensuring all operational personnel received necessary qualifications[131]. Risk Management - The company faces risks from macroeconomic factors, including the impact of COVID-19 and international political instability, which could affect operational performance[99]. - The company is addressing market competition risks by leveraging its full industry chain advantages and exploring new profit growth points[102]. - Rising labor costs pose a risk to profit levels as the company requires high-quality talent amid increasing competition, prompting the implementation of effective assessment and incentive systems to stabilize the management team and core employees[104]. - The company faces increased risks from raw material price fluctuations due to expanded production scale and global macroeconomic uncertainties, which could lead to a decline in profitability if costs cannot be passed on to downstream customers[103]. Shareholder and Governance Information - The total number of ordinary shareholders at the end of the reporting period is 13,939[164]. - Zhejiang Yangfan Holding Group Co., Ltd. holds 23.69% of the shares, amounting to 55,606,200 shares, with 38,859,999 shares pledged[164]. - There are no changes in the company's board of directors, supervisors, or senior management during the reporting period, ensuring stability in leadership[112]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period, indicating a focus on other growth strategies[114].

Financial Performance - The company's revenue for Q1 2022 was ¥231,037,818.81, representing a 39.22% increase compared to ¥165,949,576.30 in the same period last year[3] - Net profit attributable to shareholders decreased by 18.29% to ¥11,614,748.46 from ¥14,213,796.86 year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥11,607,892.53, down 19.01% from ¥14,332,867.81 in the previous year[3] - Total operating revenue for Q1 2022 was CNY 231,037,818.81, an increase of 39.0% compared to CNY 165,949,576.30 in Q1 2021[19] - Net profit for Q1 2022 was CNY 11,614,748.46, a decrease of 18.5% from CNY 14,213,446.90 in Q1 2021[20] - The company reported a total comprehensive income of CNY -2,548,958.88 for Q1 2022, compared to CNY 13,939,416.35 in Q1 2021[20] - The company's basic earnings per share fell by 16.67% to ¥0.05 from ¥0.06 in the same period last year[3] - The basic and diluted earnings per share for Q1 2022 were both CNY 0.05, down from CNY 0.06 in Q1 2021[20] Assets and Liabilities - The company's total assets increased by 2.76% to ¥1,438,130,215.22 from ¥1,399,526,483.81 at the end of the previous year[3] - Total assets increased to ¥1,438,130,215.22 from ¥1,399,526,483.81, reflecting a growth of about 2.8%[15] - Total liabilities rose to ¥675,336,341.78 from ¥633,451,884.66, indicating an increase of about 6.6%[16] - The company's total equity remains stable at ¥234,750,130.00[16] Cash Flow - Cash flow from operating activities was ¥30,266,165.35, a slight decrease of 2.80% compared to ¥31,138,086.37 in the same period last year[3] - The company reported a significant increase of 423.23% in cash received from operating activities, totaling ¥846.48 million, mainly due to the release of frozen funds[9] - Cash and cash equivalents at the end of Q1 2022 amounted to CNY 86,043,976.30, an increase from CNY 60,915,488.97 at the end of Q1 2021[24] - The net cash flow from financing activities for Q1 2022 was CNY 22,621,948.49, slightly up from CNY 22,094,553.60 in Q1 2021[24] Research and Development - The company's R&D expenses rose by 42.50% to ¥1,225.11 million, driven by increased salaries and material costs[8] - Research and development expenses for Q1 2022 were CNY 12,251,077.27, up 42.5% from CNY 8,597,114.91 in Q1 2021[19] Shareholder Information - The total number of common shareholders at the end of the reporting period is 14,268[10] - Zhejiang Yangfan Holding Group Co., Ltd. holds 23.69% of shares, totaling 55,606,200 shares[10] Inventory and Receivables - Accounts receivable rose to ¥91,780,437.13 from ¥79,984,537.57, an increase of about 14.4%[14] - Inventory decreased slightly to ¥188,577,681.87 from ¥191,519,421.57, a decline of approximately 1.5%[15] Borrowings - Short-term borrowings increased by 40.75% to ¥34,556.81 million, attributed to an increase in bank working capital loans[7] - Short-term borrowings increased significantly to ¥345,568,069.32 from ¥245,516,128.14, an increase of approximately 40.7%[16]

Financial Performance - The company's operating performance experienced a significant decline compared to the previous year, consistent with industry trends[6]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves[7]. - The financial report has been confirmed as true, accurate, and complete by the company's management[5]. - The company maintains its core competitiveness and major financial indicators have not undergone significant adverse changes[6]. - Future plans and development strategies are subject to risks, and investors are advised to be aware of these risks[6]. - The company has not reported any major changes in its main business operations during the reporting period[6]. - The company's operating revenue for 2021 was ¥720,861,862.33, representing a 45.80% increase compared to ¥494,410,008.76 in 2020[21]. - The net profit attributable to shareholders decreased by 76.13% to ¥6,600,130.88 in 2021 from ¥27,649,214.30 in 2020[21]. - The net profit after deducting non-recurring gains and losses was ¥8,921,264.30, down 64.62% from ¥25,217,231.35 in the previous year[21]. - The net cash flow from operating activities was ¥43,854,515.59, a decrease of 32.26% compared to ¥64,739,758.59 in 2020[21]. - The total assets at the end of 2021 were ¥1,399,526,483.81, an increase of 13.58% from ¥1,232,225,820.64 at the end of 2020[21]. - The company reported a basic earnings per share of ¥0.03, down 75.00% from ¥0.12 in 2020[21]. - The weighted average return on equity decreased to 0.87% in 2021 from 3.56% in 2020, a decline of 2.69 percentage points[21]. Market and Industry Trends - The company is focused on the radiation curing industry, with significant growth potential in UV curing products due to increasing environmental regulations[31]. - There is a growing demand for new types of photoinitiators suitable for UV LED light sources, prompting increased R&D investment[32]. - The Chinese pharmaceutical market is expected to reach RMB 1.7 trillion in 2021, with a compound annual growth rate (CAGR) of 5.40% from 2016 to 2021[39]. - The demand for pesticide intermediates has shown significant growth, with the global pesticide market sales increasing from USD 25.7 billion in 2001 to USD 57.5 billion in 2020, reflecting an average annual growth of 4%[40]. - The market for pharmaceutical intermediates in China is projected to exceed RMB 290 billion by 2026, driven by the expanding pharmaceutical industry[39]. - The printing and dyeing industry in China achieved a production volume of 60.58 billion meters in 2021, marking a year-on-year growth of 11.76%[40]. Research and Development - The company is leveraging its product and technical advantages to innovate in the fields of UV curing materials and light initiators, responding to the growing demand in various industries[34]. - The company is focusing on the development of UV-LED light initiators and low-migration light initiators, with a production capacity of over 30,000 tons per year for chlorinated titanium dioxide[34]. - The company has established a provincial-level R&D center equipped with top domestic research facilities[67]. - The company is actively promoting the innovation and R&D of new photoinitiators based on its industrial chain and process technology advantages[66]. - Key R&D focuses include new synthesis technologies for sulfur-containing fine chemicals and the development of environmentally friendly formulations suitable for UV-LED light sources[122]. - The company has completed the development of 1 product for the oxime ester photoinitiator, which has passed scientific achievement identification, aiming to develop high-purity, low-cost industrial production technology[98]. - The company has completed the development of 2 products in the free radical photoinitiator series, which will expand the application range and positively impact future operations[99]. Production and Capacity - The company has two production bases in Zhejiang and Inner Mongolia, enhancing its competitive advantage and global influence in the photoinitiator sector[58]. - The production capacity utilization rate for photoinitiators is 29.01%, with a designed capacity of 15,000 tons[66]. - The company has invested in a new production line for photoinitiators with a capacity of 11,000 tons, which has been completed and put into operation[66]. - The Inner Mongolia production base officially commenced production in May 2021, with a designed annual capacity of 29,000 tons for photoinitiators and pharmaceutical intermediates[81]. - The company aims to become a leading global supplier of UV-curable new materials, focusing on thiol compounds and expanding into pharmaceuticals, pesticides, dyes, and electronics[117]. - In 2022, the company plans to steadily release production capacity at its Inner Mongolia base, targeting a production capacity of 29,000 tons per year for photoinitiators and pharmaceutical intermediates[118]. Financial Management - The company's total operating costs rose to ¥585,579,927.67, reflecting a 61.61% increase year-on-year[87]. - The total investment amount for the reporting period was ¥150,529,715.91, reflecting a decrease of 18.98% from the previous year's investment of ¥185,798,613.50[109]. - The company's long-term borrowings decreased by 6.34% to ¥35,500,000.00, primarily due to the reduction of long-term borrowings maturing in over one year[105]. - The company reported a significant increase in financial expenses by 42.07%, primarily due to increased loan interest payments[97]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 5.1555 million[165]. - The remuneration decision process involves the Board's Compensation and Assessment Committee, with final approval from the Board and shareholders[163]. Governance and Compliance - The company has a governance structure with a clear distinction between independent and non-independent directors[152]. - The board of directors held a total of 5 meetings during the reporting period, with all members actively participating[167]. - The audit committee conducted 5 meetings, ensuring compliance with legal regulations and maintaining high standards of internal control[170]. - The company is committed to maintaining transparency and accountability in its financial reporting and governance practices[170]. - The company has established a comprehensive internal control system that effectively covers major aspects of its operations, with no significant omissions identified[181]. - The internal control self-assessment report indicated that 100% of the total assets and operating income of the evaluated units were included in the company's consolidated financial statements[183]. Environmental Responsibility - The company has a wastewater treatment facility with a capacity of 300 tons per day, utilizing advanced treatment processes to ensure compliance with discharge standards[188]. - The company reported a total of 6.909 tons of COD and 0.159 tons of NH3-N discharged from its wastewater, both within the regulatory limits[187]. - The company has implemented a pollution prevention facility that operates continuously, ensuring effective treatment of wastewater and emissions[188]. - The company is actively pursuing green factory initiatives, focusing on automation and production process optimization to enhance sustainability[196]. - No administrative penalties were imposed on the company during the reporting period, indicating compliance with environmental regulations[195]. Human Resources - The total number of employees at the end of the reporting period was 894, with 205 in the parent company and 689 in major subsidiaries[173]. - The professional composition includes 643 production personnel, 20 sales personnel, 118 technical personnel, 21 financial personnel, and 92 administrative personnel[174]. - The company aims to attract and retain key talent through competitive compensation and incentive systems[175]. - In 2021, the company focused on internal training, particularly for new employees and middle management, to enhance professional skills and corporate competitiveness[177]. Risks and Challenges - The company faces risks from macroeconomic factors, including the impact of COVID-19 on production and logistics, which could affect performance[125]. - Rising raw material prices and labor costs pose risks to profitability, prompting the company to enhance cost control measures and improve operational efficiency[129][131]. - The company is addressing market competition risks by leveraging its entire industry chain and exploring new profit growth points[128].

Financial Performance - The company's revenue for Q3 2021 reached ¥157,382,177.22, representing a 56.61% increase compared to the same period last year[3] - The net profit attributable to shareholders was a loss of ¥2,923,319.48, a significant decline of 614.04% year-over-year[3] - The net profit after deducting non-recurring gains and losses was also a loss of ¥2,796,272.34, down 1,494.50% from the previous year[3] - Total operating revenue for Q3 2021 reached ¥474,651,935.08, a 47.3% increase from ¥322,331,610.07 in Q3 2020[20] - Operating profit for Q3 2021 was ¥4,697,811.53, down 76.2% from ¥19,714,294.51 in the same period last year[20] - Net profit attributable to the parent company was ¥6,995,118.84, compared to ¥19,298,954.78 in Q3 2020, reflecting a decrease of 63.7%[21] - The company reported a comprehensive income total of ¥2,286,949.67 for Q3 2021, compared to ¥4,584,544.49 in the same quarter last year[21] - The company experienced a net profit margin of approximately 1.21% in Q3 2021, down from 5.99% in Q3 2020[20] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥1,319,802,413.31, reflecting a 7.11% increase from the end of the previous year[3] - The company's total current assets as of September 30, 2021, amounted to CNY 388,850,726.56, an increase from CNY 350,786,366.46 at the end of 2020[16] - The total assets of the company reached CNY 1,319,802,413.31, compared to CNY 1,232,225,820.64 at the end of 2020[16] - Total liabilities amounted to ¥545,336,241.75, an increase from ¥471,933,288.68 year-on-year[20] - The company's total equity reached ¥774,466,171.56, up from ¥760,292,531.96 in the previous year[20] Cash Flow - The cash flow from operating activities for the first nine months was ¥7,981,250.51, down 78.99% compared to the same period last year[3] - Operating cash inflow for the period reached ¥531,617,184.43, up from ¥382,118,889.61 in the previous period, representing an increase of approximately 39.2%[23] - Net cash flow from operating activities was ¥7,981,250.51, a decrease of 78.9% compared to ¥37,993,218.02 in the same period last year[23] - Cash outflow from investing activities totaled ¥168,435,032.78, compared to ¥148,293,961.20 in the previous period, indicating an increase of about 13.5%[25] - Net cash flow from investing activities was -¥113,390,161.26, an improvement from -¥148,258,961.20 year-over-year[25] - Cash inflow from financing activities amounted to ¥458,933,868.08, slightly up from ¥442,040,000.00 in the previous period, reflecting an increase of approximately 3.1%[25] - Net cash flow from financing activities was ¥83,770,141.21, an increase of 41.8% compared to ¥59,127,007.17 in the same period last year[25] - The ending balance of cash and cash equivalents was ¥30,820,247.89, down from ¥31,587,325.17 in the previous period[25] Production and Costs - The company's operating income for the first nine months of 2021 was ¥474,651,935.08, up 47.26% year-over-year, driven by increased production and sales from new projects[7] - The company experienced a 69.78% increase in operating costs, totaling ¥383,626,425.03, attributed to rising material prices and increased production[7] - The company's production base in Inner Mongolia is gradually ramping up, but production has not yet reached design capacity, affecting cost advantages[12] - The company is experiencing increased production costs due to rising prices of upstream raw materials for photoinitiators, which are expected to stabilize in Q4[12] - The company's "expansion and renovation" project and the first phase of the Inner Mongolia production base are progressing steadily, leading to increased financial costs[13] - The Inner Mongolia Yangfan Phase I project has entered trial production, with an annual capacity of 18,075 tons of fine chemicals[14] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,506[10] - Zhejiang Yangfan Holding Group Co., Ltd. holds 23.69% of shares, with 55,606,200 shares pledged at 35,960,000[10] Research and Development - Research and development expenses for Q3 2021 were ¥20,925,926.31, slightly up from ¥19,184,485.60 in Q3 2020[20] Pricing Strategy - The company is implementing a more flexible pricing strategy to increase market share, impacting short-term product margins[12] - The company anticipates that the value of ongoing projects will gradually materialize in Q4[12] Government Support - The company received government subsidies amounting to ¥290,418.24 during the reporting period, contributing to its financial performance[5] Earnings Per Share - Basic and diluted earnings per share for Q3 2021 were both ¥0.03, down from ¥0.08 in Q3 2020[21]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 317,269,757.86, representing a 43.02% increase compared to CNY 221,838,066.39 in the same period last year[25]. - The net profit attributable to shareholders of the listed company decreased by 47.05% to CNY 9,918,438.32 from CNY 18,730,256.57 year-on-year[25]. - The net profit after deducting non-recurring gains and losses was CNY 8,809,816.82, down 51.53% from CNY 18,177,176.27 in the previous year[25]. - The net cash flow from operating activities was CNY 23,490,915.29, a decrease of 4.59% compared to CNY 24,622,250.12 in the same period last year[25]. - Basic and diluted earnings per share were both CNY 0.04, down 50.00% from CNY 0.08 in the same period last year[25]. - The weighted average return on net assets decreased to 1.30% from 2.41% in the previous year, a decline of 1.11%[25]. - The gross margin for the overall business was 20.65%, down 12.72% year-on-year, with the gross margin for photoinitiators specifically declining by 18.59%[76]. - The company reported a net loss of CNY 7,042 million for the period[197]. - The net profit attributable to shareholders was -23.48 million, indicating a loss during this reporting period[200]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,320,956,244.94, an increase of 7.20% from CNY 1,232,225,820.64 at the end of the previous year[25]. - The total liabilities of the company were CNY 558,882,307.64, which is an increase from CNY 471,933,288.68 at the end of 2020, marking a rise of around 18.4%[175]. - The company's short-term borrowings increased to CNY 208,467,511.27 from CNY 175,202,079.57, reflecting a growth of approximately 19.0%[175]. - The company's total equity attributable to shareholders of the parent company was CNY 623,154,607.96, a decrease from CNY 641,434,351.99 at the end of 2020, representing a decline of 2.1%[180]. - The total owner’s equity at the end of the period was CNY 774,355.19 million, showing a significant decrease from the previous year[199]. Market and Product Development - The company has developed a comprehensive product line of thiol compounds, with applications in pharmaceuticals, pesticides, and dyes, enhancing its market potential[35]. - The company is expanding its product offerings in the UV curing agent market, focusing on UV-LED light sources and low migration curing agents, with a production capacity of over 30,000 tons per year for radiation curing coatings[46]. - The company is actively developing new products in the UV curing field, including high-performance free radical and cationic photoinitiators, to meet the growing demand in various industries[46]. - The company is focusing on innovation in the thiol compound sector, which has a high technical barrier and is widely used in pharmaceuticals, pesticides, and dyes[51]. - The company is committed to continuous product development and technological innovation to maintain its competitive edge in expanding application fields[103]. Research and Development - Research and development expenses rose by 9.71% to CNY 16.15 million, reflecting ongoing investment in new product development[74]. - The company has been granted a total of 26 invention patents and 36 utility model patents, enhancing its research and development capabilities[61]. - The company is classified as a high-tech enterprise and is investing in R&D capabilities to support future growth[103]. Environmental and Safety Measures - The company has implemented comprehensive safety and environmental protection measures, ensuring sustainable production and a competitive advantage in the market[64]. - The company has established wastewater treatment facilities with a capacity of 300 tons/day, ensuring compliance with discharge standards[116]. - The company has implemented advanced wastewater treatment processes, including micro-electrolysis and catalytic oxidation, to ensure wastewater meets regulatory standards[118]. - The company has established emergency response plans for environmental incidents and conducts regular drills to enhance response capabilities[125]. - No administrative penalties were reported for environmental issues during the reporting period[127]. Strategic Planning and Risks - The company has outlined potential risks and corresponding measures in its management discussion section, emphasizing the importance of investor awareness regarding these risks[6]. - The company is facing increased market competition due to the rapid expansion of the light curing technology application field, which may affect future profitability[98]. - The company plans to further develop the domestic market and optimize management to reduce production costs amid the ongoing COVID-19 pandemic[100]. - Rising labor costs due to increasing wages for skilled professionals and frontline workers pose a risk to profit margins, prompting the company to enhance its incentive systems and talent acquisition strategies[101]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,402, with no preferred shareholders[159]. - Zhejiang Yangfan Holding Group Co., Ltd. holds 23.69% of the shares, with a decrease of 2,320,000 shares during the reporting period[159]. - The company reported no significant events that required disclosure during the reporting period[148].

Financial Performance - The company's operating performance experienced a significant decline compared to the previous year, with key financial indicators remaining stable and consistent with industry trends[6]. - The company's operating revenue for 2020 was ¥494,410,008.76, a decrease of 3.38% compared to ¥511,692,670.37 in 2019[18]. - The net profit attributable to shareholders for 2020 was ¥27,649,214.30, down 72.64% from ¥101,063,547.78 in 2019[18]. - The net profit after deducting non-recurring gains and losses was ¥25,217,231.35, a decline of 73.20% from ¥94,086,527.88 in 2019[18]. - The basic earnings per share for 2020 was ¥0.12, a decrease of 72.73% compared to ¥0.44 in 2019[18]. - Operating profit was ¥34,687,483.64, down 68.57% year-on-year, while total profit decreased by 74.58% to ¥29,057,055.84[70]. - The gross profit margin decreased to 26.71%, down 13.65 percentage points compared to the previous year[93]. - The company faced challenges due to weakened market demand from downstream industries, particularly in Europe and the U.S. due to the COVID-19 pandemic[71]. - Increased costs were noted due to rising raw material prices and enhanced environmental investments, alongside higher R&D expenditures[71]. Dividend Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 0.3 CNY (including tax) for every 10 shares based on a total of 234,750,130 shares, with no bonus shares issued[6]. - The cash dividend accounted for 100% of the total distributable profit of 156,983,728.86 CNY[156]. - The cash dividend for 2020 represented 25.47% of the net profit attributable to the shareholders of the listed company[161]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends of 37,067,400 CNY in 2018 and 23,475,013 CNY in 2019[161]. - There were no adjustments or changes to the cash dividend policy during the reporting period[155]. Business Operations and Strategy - The company operates in a stable industry environment, with no major risks affecting its ongoing operations[6]. - The report indicates that the company has not made any significant changes to its main business during the reporting period[6]. - The company is a major supplier of photoinitiators and thiol compounds, with products used in various industries including electronics, printing, and biomedical applications[28]. - The company is focusing on the development of UV-LED light initiators and low migration light initiators, which are key areas for new product innovation[32]. - The company aims to expand its influence in the global light initiator market, leveraging the upcoming production capacity in Inner Mongolia[34]. - The company has established a robust R&D management process, dividing product development into several clear stages[44]. - The company is actively engaged in the research and development of high-performance light initiators and other key raw materials for light curing applications[32]. Market and Competition - The market for light initiators is expected to grow due to the increasing application of light curing technology across various industries, driven by environmental protection concerns[33]. - The demand for thiol compounds is increasing in the pharmaceutical industry, indicating a broad market potential for the company's products[38]. - The company holds a stable market share in the thiol compound sector, with limited competition from domestic players[36]. - The domestic light initiator industry is experiencing consolidation, with major players emerging due to intense market competition[34]. - The company faces risks related to market competition, as the demand for photoinitiators is rapidly expanding, and new competitors are entering the market[143]. Research and Development - The company has a total of 23 invention patents and 38 utility model patents, with ongoing applications for 10 invention patents and 2 utility models[60]. - The company has significantly increased its fixed assets due to the conversion of construction projects into fixed assets[57]. - The company increased R&D investment, leading to the commercial promotion of new products such as cationic thiosulfate salt photoinitiators and the new product 637A[76]. - Research and development expenses rose by 9.61% to CNY 28,381,228.04, indicating a focus on innovation[101]. - The company has completed industrial technology accumulation for its cationic sulfonium salt photoinitiators, which are recognized for their high solubility and efficiency[102]. Risk Management and Compliance - The company continues to face major risk factors, and the report outlines corresponding countermeasures in the section discussing future development prospects[6]. - The company has established a comprehensive safety management system, including regular safety inspections and a risk control system[50]. - The company is monitoring raw material price fluctuations closely, as production costs are significantly affected by these changes, and is taking measures to mitigate risks[144]. - The company is committed to safety and environmental protection, implementing advanced production processes and strict compliance with regulations to minimize risks[147]. - The company emphasizes environmental protection and adheres to relevant laws and regulations, integrating eco-friendly practices into its operations[200]. Corporate Governance - The company’s independent directors fulfilled their responsibilities in the decision-making process for the cash dividend distribution[155]. - The company has not encountered any issues or discrepancies in the use and disclosure of raised funds[127]. - The company has not engaged in any related party transactions during the reporting period[179]. - The company has implemented an employee stock incentive plan, granting 3.3 million restricted stocks to 190 incentive objects, later adjusted to 175 due to voluntary waivers[174]. - The company reported no significant penalties or rectification issues during the reporting period[172].

[Important Notice](index=2&type=section&id=Important%20Notice) The company's Board of Directors, Supervisory Board, and all senior management guarantee the truthfulness and completeness of this quarterly report, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibilities[3](index=3&type=chunk) - The company's responsible person, the person in charge of accounting work, and the head of the accounting department ensure the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[4](index=4&type=chunk) [Company Profile](index=3&type=section&id=Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure [Key Accounting Data and Financial Indicators](index=3&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2021, the company achieved significant growth and turned loss into profit, with revenue up 69.55% and net profit reaching RMB 14.21 million, alongside a 2187.13% surge in operating cash flow 2021 Q1 Key Financial Indicators | Indicator | Current Reporting Period | Prior Year Same Period | Year-over-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 165,949,576.30 | 97,873,931.32 | 69.55% | | Net Profit Attributable to Shareholders (RMB) | 14,213,796.86 | -3,126,374.71 | Turned Loss into Profit | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 14,332,867.81 | -2,641,962.92 | Turned Loss into Profit | | Net Cash Flow from Operating Activities (RMB) | 31,138,086.37 | 1,361,449.19 | 2,187.13% | | Basic Earnings Per Share (RMB/share) | 0.06 | -0.01 | Turned Loss into Profit | | Weighted Average Return on Net Assets | 1.85% | -0.40% | Increased by 2.25 percentage points | | Total Assets (RMB) | 1,264,348,413.64 | - | Increased by 2.61% from prior year-end | | Net Assets Attributable to Shareholders (RMB) | 774,140,115.96 | - | Increased by 1.82% from prior year-end | - During the reporting period, the company's non-recurring gains and losses totaled **-RMB 119,070.95**, primarily including non-current asset disposal gains/losses, government subsidies, and other non-operating income/expenses[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=Shareholder%20Information) As of the reporting period end, the company had 13,606 common shareholders, with Zhejiang Yangfan Holdings and SFC Co., Ltd. as the top two, indicating a relatively concentrated ownership structure - As of the end of the reporting period, the total number of common shareholders was **13,606**[11](index=11&type=chunk) Top Two Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Zhejiang Yangfan Holdings Group Co., Ltd. | 23.69% | 55,606,200 | | SFC CO., LTD. | 15.84% | 37,175,400 | - Yangfan Holdings and SFC are shareholders controlled by the actual controller; Oriental Fortune Capital (Wuhu) Equity Investment Fund (Limited Partnership) and Oriental Fortune Capital (Wuhu) No. 2 Equity Investment Fund (Limited Partnership) are parties acting in concert[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Significant%20Events) This section details major changes in financial data and provides an overview of business performance and outlook [Significant Changes in Key Financial Data and Reasons](index=6&type=section&id=Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Reasons) Multiple financial indicators significantly changed due to business recovery, with balance sheet items like receivables and payables fluctuating, profit and cost rising with sales, and cash flows increasing from sales and purchases Balance Sheet Major Changes | Account | Change Percentage | Main Reasons | | :--- | :--- | :--- | | Notes Receivable | 154.36% | Increase in unexpired acceptance bills | | Prepayments | 66.12% | Increase in advance payments for raw materials | | Construction in Progress | 38.32% | Continued investment in construction projects | | Notes Payable | 107.80% | Increase in payment for construction projects via acceptance bills | | Accounts Payable | -45.92% | Decrease in payables for construction projects | | Non-current Liabilities Due Within One Year | 99.69% | Increase in borrowings | Income Statement Major Changes | Account | Change Percentage | Main Reasons | | :--- | :--- | :--- | | Operating Revenue | 69.55% | Sales revenue rebounded this period due to COVID-19 impact in prior period | | Operating Costs | 73.47% | Costs increased proportionally with sales revenue rebound | | Selling Expenses | -36.36% | Under new revenue standards, freight costs are included in operating costs | | Financial Expenses | 46.92% | Impact of USD exchange rate on exchange gains/losses | Cash Flow Statement Major Changes | Account | Change Percentage | Main Reasons | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 101.33% | Increased sales revenue and collections | | Cash Paid for Goods and Services | 98.81% | Increased purchases this period due to low base in prior year | | Cash Paid for Debt Repayment | 284.80% | Increased repayment of matured loans | [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) The company achieved a strong Q1 2021 turnaround driven by increased sales orders from economic recovery, though mercaptan compound business profitability was impacted by trial operations, with future scale advantages expected - The company's turnaround from loss to profit was primarily due to effective domestic epidemic control, economic recovery, increased sales orders, and significant year-over-year improvements in revenue and performance[19](index=19&type=chunk)[20](index=20&type=chunk) - The mercaptan compound business, with Inner Mongolia Yangfan in trial operation, experienced low capacity and high costs, impacting overall profitability. It is expected that after stable production, the company's industrial chain and scale advantages will gradually emerge[20](index=20&type=chunk) Top Five Suppliers and Customers Changes | Item | Current Reporting Period | Prior Year Same Period | Year-over-year Change | | :--- | :--- | :--- | :--- | | Total Procurement from Top Five Suppliers (RMB) | 32,349,373.43 | 8,921,608.86 | 262.60% | | Total Sales to Top Five Customers (RMB) | 37,491,160.98 | 23,284,612.76 | 61.01% | [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the consolidated balance sheet, income statement, and cash flow statement for the reporting period [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets were RMB 1.26 billion (+2.61%), total liabilities RMB 490 million (+3.87%), and owner's equity RMB 774 million (+1.82%), indicating a stable financial structure Consolidated Balance Sheet Core Data (As of March 31, 2021) | Indicator | Period-end Balance (RMB) | Beginning of Year Balance (RMB) | Change from Beginning of Year | | :--- | :--- | :--- | :--- | | Total Assets | 1,264,348,413.64 | 1,232,225,820.64 | +2.61% | | Total Liabilities | 490,208,647.64 | 471,933,288.68 | +3.87% | | Owner's Equity Attributable to Parent Company | 774,140,115.96 | 760,292,531.96 | +1.82% | [Consolidated Income Statement](index=15&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, total operating revenue reached RMB 166 million (+69.55%), with total operating costs at RMB 150 million (+48.40%), leading to a net profit of RMB 14.21 million, a significant improvement from the prior year's loss Consolidated Income Statement Core Data (2021 Q1) | Indicator | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-over-year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 165,949,576.30 | 97,873,931.32 | +69.55% | | Total Operating Costs | 150,226,802.39 | 101,234,832.78 | +48.40% | | Net Profit Attributable to Parent Company Shareholders | 14,213,796.86 | -3,126,374.71 | Turned Loss into Profit | | Basic Earnings Per Share | 0.06 | -0.01 | Turned Loss into Profit | [Consolidated Cash Flow Statement](index=19&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2021 operating cash flow was RMB 31.14 million (+2187.13%), driven by increased sales collections, while investment cash outflow decreased by 40.3%, and financing cash inflow was RMB 22.09 million, with period-end cash at RMB 60.92 million Consolidated Cash Flow Statement Core Data (2021 Q1) | Indicator | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-over-year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 31,138,086.37 | 1,361,449.19 | +2187.13% | | Net Cash Flow from Investing Activities | -44,931,946.41 | -75,279,936.47 | Net outflow decreased by 40.3% | | Net Cash Flow from Financing Activities | 22,094,553.60 | 119,009,646.74 | Net inflow decreased by 81.4% | | Period-end Cash and Cash Equivalents Balance | 60,915,488.97 | 128,892,151.07 | -52.74% | [Audit Report Explanation](index=22&type=section&id=Audit%20Report%20Explanation) The company's 2021 first quarter financial report is unaudited - The company's first quarter report is unaudited[55](index=55&type=chunk)