苏州晶瑞化学股份有限公司 2018 年第三季度报告全文 苏州晶瑞化学股份有限公司 第一节 重要提示 2018 年第三季度报告 2018-111 2018 年 10 月 1 苏州晶瑞化学股份有限公司 2018 年第三季度报告全文 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。 公司负责人吴天舒、主管会计工作负责人程欢瑜及会计机构负责人(会计主 管人员)雷秀娟声明：保证季度报告中财务报表的真实、准确、完整。 2 苏州晶瑞化学股份有限公司 2018 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） | 1,172,994,089.92 | | 912,159,417.43 | 28.60% | | 归属于上市公司股东的净资产 | 492, ...

Financial Performance - Total revenue for the first half of 2018 reached ¥366,554,786.09, representing a 50.32% increase compared to ¥243,856,292.01 in the same period last year[20]. - Net profit attributable to shareholders was ¥23,914,446.11, up 67.16% from ¥14,306,315.41 year-on-year[20]. - Net profit after deducting non-recurring gains and losses was ¥18,582,173.80, reflecting a 54.66% increase from ¥12,014,885.75 in the previous year[20]. - Operating cash flow net amount was ¥18,094,871.46, a significant increase of 1,605.37% compared to a negative cash flow of ¥1,202,018.48 last year[20]. - Basic earnings per share rose to ¥0.1592, a 31.57% increase from ¥0.1210 in the same period last year[20]. - Total assets at the end of the reporting period were ¥1,125,551,434.58, up 23.39% from ¥912,159,417.43 at the end of the previous year[20]. - Net assets attributable to shareholders increased to ¥473,851,658.15, a 6.24% rise from ¥446,029,866.15 at the end of the previous year[20]. - The company reported a total profit of CNY 28,115,944.49, up from CNY 25,949,303.07, reflecting a growth of 4.5% year-on-year[190]. - Operating profit for the first half was CNY 26,580,423.54, slightly up from CNY 25,730,619.88, indicating a growth of 3.3%[188]. Revenue Breakdown - The company's revenue for the first half of 2018 reached CNY 119.48 million for ultra-pure reagents, a 34.57% increase year-over-year[31]. - The revenue from photoresists was CNY 41.89 million, reflecting an 18.48% year-over-year growth[31]. - Functional materials generated CNY 33.04 million in revenue, up 12.38% compared to the previous year[31]. - The revenue from lithium battery binders was CNY 114.18 million, marking a 32.10% increase year-over-year[31]. - The company achieved total revenue of CNY 366.55 million in the first half of 2018, a year-on-year increase of 50.32%[53]. Investment and R&D - The company invested CNY 16.24 million in R&D, an increase of 25.81% from the previous year[53]. - The company holds a total of 38 patents, including 34 invention patents, reflecting significant progress in R&D capabilities[49]. - The company is developing new fine chemicals and has initiated a project for 87,000 tons of new materials for optoelectronic displays and semiconductors[50]. - The company plans to invest 200 million RMB in research and development for innovative technologies over the next year[107]. Operational Risks - The company faces various operational risks, which are detailed in the report[5]. - The company faces risks related to market demand fluctuations and competition, particularly in the microelectronics chemical industry, which may impact future revenue and profit margins[84]. - The fluctuation in raw material prices poses a risk to the company's cost structure, influenced by external factors such as oil and coal prices[88]. - The company is at risk of talent loss due to increasing competition for skilled personnel, which could impact its operational capabilities[93]. Corporate Governance and Commitments - The board of directors and management guarantee the accuracy and completeness of the financial report[4]. - The company has committed to fulfilling all promises made in the prospectus and application documents, ensuring the ability to meet these commitments[100]. - Shareholders holding more than 5% of the company's shares have also made commitments to fulfill their obligations as stated in the prospectus[100]. - The company has established a compensation system linked to the performance of the company, ensuring that executive compensation is tied to the company's performance recovery measures[101]. Environmental and Safety Measures - The company has implemented strict safety and environmental measures to mitigate risks associated with the production of hazardous chemicals, ensuring compliance with national regulations[87]. - The company has established an environmental and safety management department to ensure compliance with environmental laws and safety production standards[115]. - The company is committed to enhancing its environmental management systems to comply with increasing regulatory standards and reduce potential environmental risks[87]. Shareholder Relations and Dividends - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[6]. - The profit distribution policy has been revised to prioritize cash dividends over stock dividends, with a minimum cash distribution of 15% of the distributable profit for the year[119]. - The company plans to conduct mid-term cash dividends based on actual profitability and funding needs when conditions permit[120]. - The company has committed to enhancing investor returns and protecting the interests of minority shareholders through improved profit distribution mechanisms[117]. Market Expansion and Strategy - The company focuses on the research, production, and sales of microelectronic chemicals, with key products including ultra-pure reagents, photoresists, functional materials, and lithium battery binders[114]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2019[104]. - A strategic acquisition of a local competitor is expected to be finalized by Q4 2018, which is anticipated to enhance the company's production capacity by 15%[105]. Financial Health and Liabilities - Total liabilities increased to CNY 578,794,461.36 from CNY 466,129,551.28, reflecting a growth of around 24.1%[181]. - Cash and cash equivalents decreased to CNY 140,431,784.34 from CNY 223,983,218.96, a decline of approximately 37.3%[179]. - Accounts receivable increased to CNY 254,963,708.64 from CNY 224,885,598.57, representing a growth of about 13.4%[179]. - Short-term borrowings increased to CNY 209,256,519.80 from CNY 187,681,469.80, an increase of about 11.4%[181]. Compliance and Legal Matters - The company has not faced any penalties or corrective actions during the reporting period, reflecting compliance with regulatory standards[127]. - There are no significant litigation or arbitration matters reported during the reporting period, ensuring a stable legal environment for the company[126]. - The company has not engaged in any business that competes with its main operations during the reporting period[101].

Financial Performance - Total revenue for Q1 2018 was CNY 161,918,843.96, representing a 45.87% increase compared to CNY 110,999,994.01 in the same period last year[7] - Net profit attributable to shareholders was CNY 9,285,114.23, up 43.21% from CNY 6,483,352.34 year-on-year[7] - The net profit after deducting non-recurring gains and losses was CNY 6,305,619.61, reflecting a 22.67% increase from CNY 5,140,219.19 in the previous year[7] - Basic earnings per share increased by 7.35% to CNY 0.1052 from CNY 0.098 in the previous year[7] - The company achieved operating revenue of 161,918.84 million yuan, an increase of 45.87% compared to the same period last year[26] - The net profit attributable to shareholders was 928.51 million yuan, up 43.21% from the previous year[25] - The gross profit margin decreased to 25.89%, down 2.21 percentage points compared to the same period last year[26] - The total profit for the current period was ¥11,438,347.93, compared to ¥10,230,006.63 in the previous period, showing an increase of approximately 11.8%[51] Assets and Liabilities - The company's total assets increased by 18.40% to CNY 1,079,971,857.35 from CNY 912,159,417.43 at the end of the previous year[7] - The net assets attributable to shareholders rose by 3.81% to CNY 463,021,653.85 compared to CNY 446,029,866.15 at the end of the previous year[7] - The company’s total assets grew from CNY 912,159,417.43 to CNY 1,079,971,857.35, an increase of about 18%[45] - Total liabilities increased from CNY 466,129,551.28 to CNY 551,073,333.19, reflecting a growth of approximately 18%[44] - The company's total equity rose from CNY 446,029,866.15 to CNY 528,898,524.16, an increase of approximately 18%[45] Cash Flow - The company reported a negative net cash flow from operating activities of CNY -5,161,469.99, an improvement of 44.05% from CNY -9,225,676.09 in the same period last year[7] - Cash flow from operating activities improved to -516.15 million yuan, a 44.05% reduction in losses compared to the previous year[25] - The cash flow from operating activities showed a total inflow of 147,502,861.74 CNY, compared to 63,407,379.27 CNY in the previous period[58] - The company experienced a net decrease in cash and cash equivalents of 96,511,585.63 CNY during the period[59] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,588[19] - The largest shareholder, New Silver International (Hong Kong), holds 20,769,551 shares, representing 23.53% of total shares[19] - The second-largest shareholder, Xu Ning, holds 9,838,166 shares, representing 11.15% of total shares, with all shares pledged[19] - The company has not conducted any repurchase transactions among the top 10 ordinary shareholders during the reporting period[21] Strategic Initiatives and Risks - The company plans to enhance its core competitiveness through technology and product innovation, focusing on ultra-pure reagents and photoresists[10] - The company faces risks related to market demand fluctuations, safety production, environmental protection, and quality control, which could impact future performance[10][11] - The company aims to strengthen its receivables management to mitigate risks associated with bad debts and cash flow pressures[13] - The company will enhance R&D management and strengthen market intelligence analysis to mitigate risks associated with project implementation[15] - The company faces a risk of talent loss due to increasing industry competition, which may impact production and operations if core technical personnel leave[16] - The company aims to optimize its human resources management system to attract and retain top talent in response to competitive pressures[16] Investments and Acquisitions - The company acquired 73.9808% of Jiangsu Yangheng Chemical Co., Ltd. for a total cash investment of 81.97 million CNY, increasing its ownership to 80%[30] - After the acquisition and capital increase, Jiangsu Yangheng's registered capital rose from 7.1856 million CNY to 9.3482 million CNY[31] - The investment in the ultra-pure reagent and photoresist technology renovation project was 59.37 million CNY, with 46.27 million CNY already utilized, achieving a progress rate of 77.93%[35] - The R&D center project had a total investment of 13.37 million CNY, with 3.60 million CNY utilized, reaching a progress rate of 73.32%[35] Compliance and Governance - The company has implemented a confidentiality mechanism to protect sensitive information and ensure compliance with regulations[15] - The company has not encountered any overdue commitments from actual controllers, shareholders, or related parties during the reporting period[33] - There were no violations regarding external guarantees during the reporting period[37] - The company reported no non-operating fund occupation by controlling shareholders or related parties[38] - The company has not changed the use of raised funds, with no cumulative changes reported[36] - The company will actively prepare the application report for re-certification as a high-tech enterprise to ensure a smooth process[17]

Financial Performance - The company's operating revenue for 2017 was CNY 534,539,259.03, representing a 21.52% increase compared to CNY 439,877,860.07 in 2016[19]. - The net profit attributable to shareholders for 2017 was CNY 36,176,549.89, which is a 6.72% increase from CNY 33,897,786.13 in 2016[19]. - The net profit after deducting non-recurring gains and losses was CNY 32,052,895.40, up 20.63% from CNY 26,570,562.52 in 2016[19]. - The total assets at the end of 2017 reached CNY 912,159,417.43, a 56.20% increase from CNY 583,970,286.31 at the end of 2016[19]. - The net assets attributable to shareholders increased by 53.59% to CNY 446,029,866.15 from CNY 290,410,509.51 in 2016[19]. - The basic earnings per share for 2017 was CNY 0.4576, a decrease of 10.64% compared to CNY 0.5121 in 2016[19]. - The weighted average return on equity for 2017 was 9.63%, down from 12.23% in 2016[19]. - The net cash flow from operating activities was negative CNY 27,547,747.23, a significant decline from positive CNY 26,528,287.15 in 2016[19]. Revenue and Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.00 CNY per 10 shares and a capital reserve conversion of 7 shares for every 10 shares held[5]. - The cash dividend accounted for 48.79% of the net profit attributable to ordinary shareholders in 2017, which was 36,176,549.89 yuan[134]. - The company has not proposed any cash dividend distribution plan for the past three years, despite having positive distributable profits[134]. - The company’s distributable profit for the reporting period was 77,402,835.19 yuan, with a cash dividend ratio of 0.00%[130]. - The total number of shares for the capital reserve increase is 61,774,954, resulting in a new total share count of 150,024,889 after the increase[132]. Investments and Acquisitions - The company completed the acquisition of 73.98% of Jiangsu Yangheng's equity, increasing its stake to 80%, enhancing its product line in ultra-pure high-purity reagents[49]. - The company established a wholly-owned subsidiary, Shan Feng Holdings (Suzhou) Co., Ltd., with an investment of RMB 100 million[187]. - The company acquired 73.9808% equity of Jiangsu Yangheng Chemical Co., Ltd. for a cash consideration of RMB 81.97 million and an additional cash investment of RMB 33.35 million to increase its registered capital[186]. Research and Development - The company holds a total of 36 patents, including 32 invention patents, reflecting its strong R&D capabilities[51]. - The company’s R&D investment for 2017 was ¥28,340,900, reflecting a commitment to innovation and technology advancement[67]. - The number of R&D personnel decreased to 68, accounting for 24.91% of the total workforce, down from 27.63% in 2016[70]. - The company plans to continue increasing R&D investment and explore new collaborative models with universities and research institutions[69]. Market Position and Industry Outlook - The company is a leading player in the microelectronic chemicals industry, with a focus on high-purity reagents, photoresists, functional materials, and lithium battery binders[36]. - The microelectronic chemicals sector is expected to see robust growth, supported by national policies promoting new energy and advanced electronic information technologies[37]. - The global microelectronics chemicals market is primarily dominated by companies from Europe, the USA, Japan, and the Asia-Pacific region, with significant players including Dow Chemical, BASF, and JSR[99]. - The demand for ultra-pure reagents and functional materials is increasing due to advancements in IC technology and the manufacturing of high-definition displays[103]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report, highlighting potential operational risks[5]. - The company faces risks related to market demand fluctuations and competition, which could impact revenue and profits[115]. - The company has a significant accounts receivable balance, which poses liquidity risks and potential bad debt issues[120]. - The company is at risk of losing its technological edge in the microelectronics chemicals industry if R&D capabilities do not keep pace with market demands[121]. Governance and Compliance - The board of directors confirmed the accuracy and completeness of the financial report, ensuring no misleading statements or significant omissions[4]. - The company has established a governance structure to ensure compliance with securities laws and regulations[140]. - The company has committed to fair and market-based pricing for any necessary related party transactions, ensuring compliance with relevant laws and regulations[136]. - The company has established a fundraising management system to ensure the effective use of raised funds and compliance with regulations[149]. Environmental and Social Responsibility - The company has invested significantly in safety and environmental protection measures, achieving multiple certifications in environmental management and safety standards[182]. - The company actively participates in social responsibility initiatives, including funding educational resources for a local school with approximately RMB 30,000[181]. - The company does not belong to the key pollutant discharge units as per environmental protection department listings[185].

Financial Performance - Total assets increased to ¥711,581,631.80, representing a 21.85% increase compared to the previous year[9] - Net assets attributable to shareholders rose to ¥415,656,012.64, a 43.13% increase year-over-year[9] - Operating revenue for the period reached ¥141,131,185.77, up 21.05% from the same period last year[9] - Net profit attributable to shareholders was ¥8,750,836.79, reflecting a 1.65% increase year-over-year[9] - Net profit excluding non-recurring items was ¥7,912,118.24, a significant increase of 27.27% compared to the previous year[9] - Basic and diluted earnings per share were both ¥0.0992, down 23.75% from the same period last year[9] - The weighted average return on equity was 2.04%, a decrease of 34.30% year-over-year[9] - The company reported a net cash flow from financing activities of ¥101.21 million, a significant increase of 444.60% due to successful fundraising from the IPO[18] - The company reported a significant increase in revenue for Q3 2017, with a year-over-year growth of 25%[24] - The company reported a revenue of 1.5 billion RMB for Q3 2017, representing a year-over-year growth of 20%[26] - Net profit for the period was CNY 13,238,382.23, compared to CNY 12,042,343.97 in the previous year, reflecting a growth of approximately 9.95%[46] - The company’s total profit for the period was ¥41,925,269.73, an increase of 20.4% from ¥34,692,762.90 in the previous period[54] Cash Flow - The net cash flow from operating activities showed a negative value of -¥20,183,776.63, indicating a decline of 860%[9] - The cash inflow from operating activities totaled CNY 264,992,318.50, an increase of 25.9% compared to CNY 210,246,812.43 in the previous period[61] - The net cash flow from operating activities was negative at CNY -20,183,776.63, a decline from a positive CNY 2,655,771.57 in the same period last year[61] - The cash inflow from investment activities was CNY 37,179,586.26, down 41.3% from CNY 63,330,949.01 in the previous period[62] - The net cash flow from investment activities was CNY -47,417,772.90, worsening from CNY -41,942,759.74 in the previous year[62] - The cash inflow from financing activities was CNY 172,792,900.00, significantly higher than CNY 51,169,011.11 in the same period last year[62] - The net cash flow from financing activities was CNY 101,207,338.52, compared to a negative CNY -29,369,357.75 in the previous year[62] - The total cash and cash equivalents at the end of the period reached CNY 112,057,928.24, a substantial increase from CNY 32,469,735.99 at the end of the previous period[62] Shareholder Information - The company received government subsidies amounting to ¥5,710,784.79 during the reporting period[10] - The total number of ordinary shareholders at the end of the reporting period was 10,552[13] - The company has committed to a 36-month lock-up period for major shareholders to stabilize stock performance post-IPO[26] - The company has a lock-up period for major shareholders, requiring them to submit reduction plans five trading days in advance[27] - The company is adhering to regulations regarding stock reduction, ensuring compliance with the Company Law and Securities Law[29] - The company has committed to a profit distribution policy post-IPO, as detailed in the prospectus[29] - The company has a long-term commitment to ensure the accuracy and completeness of its financial disclosures[29] - The company has confirmed that all commitments made to minority shareholders are being fulfilled on time[29] Operational Developments - The company plans to acquire 45.44% equity of its subsidiary Suzhou Ruihong for a total consideration of ¥58.83 million, with payments to foreign shareholders being processed[19] - The company established a wholly-owned subsidiary, Meishan Jingrui Electronic Materials Co., Ltd., which completed its business registration on September 15, 2017[19] - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of 2018[24] - A strategic acquisition of a local competitor is in progress, expected to enhance production capacity by 30%[24] - The company plans to invest 5 million in R&D for new technologies aimed at improving production efficiency by 15%[24] - The company has committed to reducing operational costs by 10% over the next year through various efficiency initiatives[24] - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[26] Product Development - New product development includes the launch of a new chemical product line, projected to contribute an additional 10% to overall revenue in the next fiscal year[24] - New product development includes the introduction of two innovative chemical products expected to contribute an additional 200 million RMB in revenue[26] - The management emphasized a focus on R&D, allocating 15% of revenue towards innovation and technology advancements[26] Financial Position - The company's cash and cash equivalents increased by 41.99% to ¥112.56 million, primarily due to funds raised from the initial public offering[17] - Other receivables surged by 1224.88% to ¥1.45 million, mainly due to increased payments for land performance guarantees and customer bidding deposits[17] - Other current assets rose by 436.65% to ¥26.07 million, attributed to an increase in unexpired bank wealth management products and the transfer of listing-related intermediary fees[17] - The company's total equity increased by 33.33% to ¥88.25 million, primarily due to funds raised from the IPO[17] - The company reported a 47.54% increase in taxes payable to ¥5.52 million, driven by higher sales revenue[17] - The company recorded a 100% increase in other income to ¥5.18 million, reflecting government subsidies related to daily operations[17] - The company's total liabilities decreased to 224,254,201.01 CNY from 229,641,542.74 CNY, showing a reduction of about 2%[39] - The equity attributable to the parent company increased to 415,656,012.64 CNY from 290,410,509.51 CNY, reflecting a significant growth of approximately 43%[40]

Dividend Distribution - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total of 88,249,935 shares[4]. - The board of directors has approved the profit distribution plan, which includes no bonus shares and no capital reserve conversion into share capital[4]. - The profit distribution plan has been approved by the board and aligns with company regulations, ensuring the protection of minority shareholders' rights[96]. - The company plans to distribute cash dividends of 2.0 yuan per 10 shares, totaling 17,649,987 yuan, with a cash dividend payout ratio of 100%[94]. Financial Performance - Total operating revenue for the first half of 2017 was CNY 243,856,292.01, representing a 24.93% increase compared to CNY 195,200,583.79 in the same period last year[19]. - Net profit attributable to shareholders was CNY 14,306,315.41, a 3.68% increase from CNY 13,798,957.37 year-on-year[19]. - Net profit after deducting non-recurring gains and losses was CNY 12,014,885.75, up 9.08% from CNY 11,014,888.41 in the previous year[19]. - The company achieved operating revenue of 243.86 million yuan in the first half of 2017, an increase of 24.93% compared to the same period last year[44]. - The net profit attributable to shareholders was 14.31 million yuan, up 3.68% year-on-year, while the net profit excluding non-recurring gains and losses increased by 9.08% to 12.01 million yuan[44]. - The company reported a revenue of 1.5 billion RMB for the first half of 2017, representing a year-on-year growth of 20%[104]. - The company reported a revenue of 1.2 billion RMB for the first half of 2017, representing a year-on-year growth of 15%[109]. - The company expects a revenue growth of 25% for the second half of 2017, driven by new product launches and market expansion strategies[106]. - The company expects a revenue growth of 10% for the second half of 2017, projecting a total revenue of approximately 2.4 billion RMB for the full year[111]. Research and Development - The company is actively involved in the research and development of new products and technologies related to microelectronics and lithium battery materials[10]. - The company has a strong R&D team that has led over 20 national and provincial technology projects, contributing to the development of industry standards and enhancing its innovation capabilities[36]. - The company focuses on strengthening R&D capabilities, particularly in ultra-pure hydrogen peroxide and photoresist products, to achieve domestic substitution of imported products[46]. - The company is investing 100 million RMB in R&D for innovative technologies aimed at improving product efficiency[109]. - Research and development expenses increased by 30% in the first half of 2017, focusing on innovative chemical products[107]. Market Expansion - The company is focused on expanding its market presence and enhancing its product offerings in the electronic chemicals sector[10]. - The company plans to expand its market share in both domestic and international markets, targeting 10% and 20% respectively for equipment and materials[11]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2018[106]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2019[110]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[4]. - The report includes a detailed description of potential risks faced by the company and corresponding countermeasures[4]. - The company faces risks related to market demand fluctuations and competition, particularly from strong competitors in the microelectronics chemicals industry[76]. - To mitigate risks, the company will enhance technological and product innovation, focusing on ultra-pure reagents and photoresist development[77]. - Safety production and environmental control risks are present due to the nature of some products being hazardous chemicals, which could lead to safety incidents[78]. - Raw material price fluctuations pose a risk to production costs, influenced by the prices of crude oil and other related industries[80]. - The company plans to implement strict cost management and improve production automation to control expenses and enhance profit levels[81]. Financial Health - Total assets at the end of the reporting period reached CNY 705,732,938.36, a 20.85% increase from CNY 583,970,286.31 at the end of the previous year[19]. - Net assets attributable to shareholders increased by 46.38% to CNY 425,101,714.01 from CNY 290,410,509.51 at the end of the previous year[19]. - Cash and cash equivalents increased to ¥177,983,434.00, accounting for 25.22% of total assets, significantly up from 13.57% the previous year[56]. - The company has seen an increase in cash due to funds raised from its initial public offering, contributing to its financial stability[33]. - The company reported a net cash flow from financing activities of 107,526,735.84 CNY, a substantial recovery from -37,230,874.24 CNY in the previous period, showcasing improved financial health[187]. Corporate Governance - The company maintains a competitive edge through advanced technology and product quality, ensuring high precision and efficiency in production[34]. - The company has established an environmental and safety management department to oversee compliance with safety and environmental regulations[79]. - The management team emphasized a commitment to sustainable practices, aiming for a 20% reduction in carbon emissions by 2020[109]. - The board has approved a new incentive plan linked to performance metrics, aiming to align executive compensation with company growth targets[115]. - The company has committed to reducing related party transactions by 25% to ensure fair market practices and protect shareholder interests[112]. Shareholder Information - The total number of shareholders at the end of the reporting period was 14,358[152]. - The company reported a normal performance of share repurchase commitments made during the initial public offering, with a commitment period of 36 months starting from May 23, 2017[98]. - The company will not transfer or entrust others to manage its shares for 12 months following the initial public offering, ensuring stability in shareholding[101]. - The company has a commitment that during the tenure of its executives, the annual transfer of shares will not exceed 25% of their directly or indirectly held shares[102]. Operational Efficiency - The company's production processes are standardized despite the custom nature of microelectronic chemicals, allowing for flexible manufacturing and reduced production cycles[29]. - The company has achieved mass production of i-line photoresist, a core product widely used by IC manufacturers, utilizing step-and-repeat projection exposure technology with a resolution of 0.35μm[27]. - The gross margin improved to 35%, up from 30% in the same period last year, due to cost optimization measures[107].