Financial Performance - Total revenue for the reporting period reached ¥874,108,684.35, representing a 74.91% increase compared to ¥499,739,369.76 in the same period last year[19]. - Net profit attributable to shareholders decreased by 22.20% to ¥23,605,916.36 from ¥30,342,846.28 year-on-year[19]. - Net cash flow from operating activities improved significantly, with a net amount of ¥11,431,993.33, compared to a negative cash flow of ¥7,767,117.02 in the previous year, marking a 247.18% increase[19]. - Total assets increased by 18.99% to ¥1,688,364,947.94 from ¥1,418,870,006.47 at the end of the previous year[19]. - The company's weighted average return on equity decreased to 2.81% from 3.79% year-on-year, reflecting a decline of 0.98%[19]. - The company achieved operating revenue of CNY 87,410.87 million in the first half of 2019, an increase of CNY 37,436.93 million, representing a year-on-year growth of 74.91%[95]. - The net profit attributable to shareholders was CNY 2,360.59 million, a decrease of CNY 673.69 million, reflecting a year-on-year decline of 22.20%[95]. - Operating costs rose to ¥760,415,394.88, an 88.39% increase from ¥403,633,195.61, primarily due to increased revenue[104]. Research and Development - The report highlights the company's focus on research and development in new products and technologies, although specific figures are not provided in the extracted content[12]. - R&D investment reached CNY 2,471.88 million, accounting for 2.83% of operating revenue, which is a 55.50% increase compared to the previous period[96]. - The company has developed a total of 6,086 product formulas, which are considered a core competitive advantage, allowing for customized solutions to meet client needs[64]. - The number of R&D personnel increased to 205, accounting for 4.74% of the total workforce, up from 3.61% in the previous year[97]. - The company aims to enhance its R&D capabilities by collaborating with universities and research institutions[147]. - The company has obtained 7 high-tech product certifications from Guangdong Province, all issued in December 2017, with a validity of three years[85]. - The company has acquired 18 invention patents related to environmentally friendly modified materials, with more patents under review[87]. Business Operations - The company has subsidiaries engaged in various sectors, including plastic technology and supply chain management, reflecting its diversified business model[9]. - The main business activities include low-carbon, environmentally friendly polymer materials, supply chain management, and automotive parts[27]. - The company adopts a "sales-driven production" model, organizing product development and production based on customer orders[38]. - The company has established long-term cooperative relationships with well-known international brands such as CROCS, SKECHERS, and AMAZON, providing them with environmentally friendly modified materials and related technical services[30]. - The company has established long-term partnerships with well-known brands such as CROCS, Amazon, and Walmart, enhancing its market influence and customer base[82]. - The supply chain management business covers over 30 products, including EVA, PP, and PVC, with a focus on new materials supply chain services[74]. - The company has developed a comprehensive supplier evaluation system to manage and assess suppliers dynamically[42]. Financial Management - The company reported a plan not to distribute cash dividends, issue bonus shares, or increase capital using reserves[5]. - The company has not experienced significant changes in the feasibility of its projects during the reporting period[129]. - The company has committed to a project for supplementing working capital with a total investment of CNY 8,000 million, which has been fully utilized[128]. - The company has a total of CNY 4,000 million temporarily allocated for working capital[125]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[164]. - The total amount of raised funds is CNY 27,821.02 million, with CNY 2,751.84 million invested during the reporting period and a cumulative investment of CNY 22,646.30 million[122]. Risk Management - The company emphasizes the importance of understanding the risks associated with forward-looking statements and the potential discrepancies between plans and actual outcomes[4]. - The company faces risks related to fluctuations in raw material prices, particularly for petrochemical products, which may impact production costs and profits[143]. - The company has identified risks related to the confidentiality of its core technology, which is largely unprotected by patents[145]. - The company will monitor raw material price trends and adjust procurement strategies to mitigate negative impacts[143]. Legal and Compliance - The company is involved in multiple lawsuits with a total amount of approximately ¥1,000.00 million, including claims against various companies for unpaid goods, with amounts such as ¥251.00 million and ¥180.26 million[157][158]. - The company has ongoing litigation with the Dongguan Qihui Plastic Hardware Co., Ltd. for ¥92.13 million and the Suzhou Haolichen Trading Co., Ltd. for ¥251.00 million, both of which are currently in execution[157]. - The company has reported no media scrutiny or penalties during the reporting period, indicating a stable operational environment[159][160]. - The company has engaged in related party transactions, including a service fee agreement with Zhaoqing South China Recycled Resources Co., Ltd. for ¥12.67 million[163]. Shareholder Information - The total number of shares before the recent change was 160,020,000, with a reduction of 7,500,000 shares due to the lifting of restrictions[183]. - The total number of ordinary shareholders at the end of the reporting period is 10,591[188]. - Dongguan Yonglv Industrial Investment Co., Ltd. holds 40.78% of shares, totaling 65,250,000 shares, with no changes during the reporting period[188]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[190]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period[195].

Financial Performance - The company's operating revenue for 2018 was approximately ¥1.09 billion, representing a 44.13% increase compared to ¥757.65 million in 2017[16]. - The net profit attributable to shareholders for 2018 was approximately ¥55.50 million, a decrease of 9.86% from ¥61.58 million in 2017[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥46.98 million, down 18.35% from ¥57.54 million in 2017[16]. - The total assets at the end of 2018 were approximately ¥1.42 billion, an increase of 36.91% compared to ¥1.04 billion at the end of 2017[16]. - The basic earnings per share for 2018 was ¥0.35, a decrease of 30.00% from ¥0.50 in 2017[16]. - The company reported a net cash flow from operating activities of approximately ¥25.42 million, down 27.96% from ¥34.98 million in 2017[16]. - The gross profit margin decreased by 5 percentage points year-on-year, primarily due to rising material costs and a 12.54% decline in gross margin for modified engineering plastics[87]. - The company achieved a net profit of RMB 64,002,022.10 for the year 2018, with a legal surplus reserve of RMB 6,400,202.21[173]. Dividend Policy - The company reported a profit distribution plan based on a total of 160,020,000 shares, proposing a cash dividend of 0.66 RMB per 10 shares (including tax) and no bonus shares[5]. - The proposed cash dividend for 2018 is RMB 0.66 per 10 shares, totaling RMB 10,561,320.00, which represents 19.03% of the net profit attributable to shareholders[175]. - The company has committed to distributing at least 20% of the annual distributable profit in cash dividends, subject to board approval[172]. - The company will ensure that any adjustments to the profit distribution policy protect shareholder rights and comply with regulatory requirements[169]. - The company will conduct cash dividend distributions annually after the shareholders' meeting, with the possibility of proposing interim cash dividends based on profitability and funding needs[166]. Research and Development - The company invested 36.29 million yuan in R&D in 2018, which accounted for 3.32% of its operating revenue[77]. - The company has developed 5,296 product formulas, including 2,122 for EVA and 1,729 for TPR, indicating a strong emphasis on R&D capabilities[153]. - The company holds 14 invention patents related to environmentally friendly modified materials, with several more pending review[77]. - The number of R&D personnel increased to 90, representing 3.61% of the total workforce, up from 60 and 2.65% in 2017[89]. - The company’s R&D department is responsible for developing and maintaining product formulas, which allows for customization to meet customer requirements[61]. Market and Competition - The company is subject to various risk factors and has outlined corresponding countermeasures in its future development outlook[5]. - The competitive landscape requires the company to enhance its R&D capabilities and optimize production processes to maintain market competitiveness[47]. - The company acknowledges market competition risks in the modified materials industry, particularly from small enterprises and foreign petrochemical giants[150]. - The company is focused on enhancing its core competitiveness through increased R&D investment and product innovation to mitigate market competition risks[151]. Production and Operations - The company operates on a "sales-driven production" model, where production is organized based on customer orders and requirements[32]. - The procurement strategy involves establishing long-term relationships with multiple suppliers to ensure a stable supply of core raw materials like EVA and SBS[35]. - The company adopts a "make-to-order" production model, ensuring efficient control over the entire process from order acceptance to delivery, supported by a comprehensive ERP system[36]. - The production process for EVA and TPR materials involves critical steps such as formulation development, mixing, and quality control to meet customer specifications[51][57]. Financial Management - Cash and cash equivalents increased by 190.10% compared to the beginning of the period, mainly due to increased cash received from sales[73]. - The company reported a significant adjustment in its financial statements due to changes in accounting policies, impacting the receivables and payables categories[182]. - The company has committed to compensating investors for any losses incurred due to false statements in the prospectus[181]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[182]. Investments and Subsidiaries - The company expanded its investment in 2018, totaling 166.34 million yuan, establishing 4 wholly-owned subsidiaries and 2 joint ventures[81]. - The company made a significant equity investment of CNY 15,300,000 in Dongguan Guoli Fei Knitting Products Co., acquiring a 51% stake[125]. - The total amount of equity investments during the reporting period reached CNY 164,737,500, with a reported loss of CNY 3,646,978.79 from these investments[126]. - The newly established subsidiaries, Guangdong Guoli New Power Technology Co., Ltd. and Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd., are expected to create synergies with the company's engineering modified plastics business in the automotive sector[147]. Risk Management - The company faces risks from raw material price fluctuations, which are linked to global oil prices, potentially impacting production costs and profits[149]. - Export sales accounted for 30.16% of the company's total revenue during the reporting period, exposing the company to foreign exchange risks due to fluctuations in the USD[156]. - The company has established a dynamic management system for its suppliers, ensuring that only qualified suppliers remain in the supply chain[35]. Compliance and Governance - The company has established a mechanism for independent directors to provide opinions on profit distribution proposals, ensuring transparency and accountability[171]. - The company has not experienced significant changes in its operating model or influencing factors during the reporting period[48]. - The company has not experienced any significant changes in project feasibility or major asset and equity sales during the reporting period[142][143].

Financial Performance - Total revenue for Q1 2019 was CNY 368,139,847.28, representing a 52.50% increase compared to CNY 241,398,708.95 in the same period last year[7]. - Net profit attributable to shareholders decreased by 58.73% to CNY 8,580,001.31 from CNY 20,792,109.89 year-on-year[7]. - Basic earnings per share fell by 61.54% to CNY 0.05 from CNY 0.13 in the previous year[7]. - The company's operating revenue for the first quarter reached CNY 368.14 million, representing a year-on-year increase of 52.50% due to the addition of new subsidiaries in the consolidation scope[17]. - The net profit attributable to the parent company was CNY 8.58 million, a decrease of 58.73% compared to the previous year, primarily due to a decline in gross margin and increased asset impairment losses[18]. - The company reported a total profit of CNY 7,696,546.48 for Q1 2019, down from CNY 26,008,246.00 in Q1 2018[53]. - Net profit for Q1 2019 was CNY 7,251,668.52, a decrease of 65.0% compared to CNY 20,718,830.58 in Q1 2018[53]. Cash Flow and Assets - The net cash flow from operating activities was negative at CNY -6,686,276.57, a decline of 19.57% compared to CNY -5,591,806.72 in the same period last year[7]. - Cash received from sales of goods and services amounted to CNY 349.97 million, up 59.73% from the previous year, driven by increased sales[19]. - The total cash inflow from operating activities was CNY 365,115,469.40, an increase of 57.0% compared to CNY 232,401,651.44 in the previous period[58]. - The ending cash and cash equivalents balance was CNY 201,258,439.19, up from CNY 104,307,179.19 in the previous period[59]. - Current assets increased to CNY 931.76 million as of March 31, 2019, up from CNY 851.96 million at the end of 2018, representing a growth of approximately 9.4%[42]. - Total assets increased by 10.70% to CNY 1,570,686,676.60 from CNY 1,418,870,006.47 at the end of the previous year[7]. - Total liabilities increased to CNY 681.49 million from CNY 573.33 million, a rise of 18.9%[44]. Investments and Expenditures - The company reported non-operating income of CNY 460,115.19, primarily from investment management gains[9]. - The total amount of raised funds invested in the current quarter is RMB 27,821.02 million, with a cumulative investment of RMB 20,904.89 million[34]. - The EVA environmental modification materials project has a total commitment of RMB 16,320.37 million, with 63.37% of the investment completed by the end of the reporting period[34]. - The R&D center technology renovation project has a total commitment of RMB 3,500.65 million, with 73.22% of the investment completed by the end of the reporting period[34]. - The working capital supplement project has a total commitment of RMB 8,000 million, with 100% of the investment completed[34]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,895[12]. - The largest shareholder, Dongguan Yonglv Industrial Investment Co., Ltd., held 40.78% of the shares, with 33,800,000 shares pledged[12]. - The actual controllers of the company hold significant shares, which may influence decision-making and pose governance risks[30]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly for SBS, EVA, and other petrochemical products, which are linked to overall oil market prices[26]. - The company is at risk of core technology leakage due to reliance on non-patented technology, which could weaken market competitiveness[28]. - Government subsidies significantly impact the company's financial results, and any changes in policy could adversely affect operations[30]. - The company is monitoring potential risks from leased properties with ownership issues, which could lead to operational disruptions[29]. Research and Development - The company has developed 5,577 formulas across five major series and 12 product categories, including 2,244 formulas for EVA and 1,788 for TPR[28]. - The company holds 14 invention patents, 17 domestic trademarks, and 11 foreign trademarks, with ongoing applications for additional patents[27]. - The company plans to enhance R&D investment and strengthen core competitiveness to mitigate market competition risks[27]. - Research and development expenses for Q1 2019 were CNY 9,662,831.61, an increase of 24.1% from CNY 7,782,839.91 in the previous year[51]. Market Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[47]. - The company is focusing on enhancing its technological capabilities and exploring potential mergers and acquisitions to strengthen its competitive position[48].

Financial Performance - Operating revenue for the reporting period reached CNY 261,161,116.81, a year-on-year increase of 59.23%[8] - Net profit attributable to shareholders was CNY 11,062,151.07, reflecting a growth of 4.35% year-on-year[8] - The net profit after deducting non-recurring gains and losses decreased by 29.10% to CNY 7,147,236.08 compared to the same period last year[8] - Basic earnings per share decreased by 22.22% to CNY 0.07[8] - The weighted average return on equity was 1.37%, down by 0.83% from the previous year[8] - The company's net profit for the current period was ¥7,471,977.55, compared to ¥12,203,409.15 in the previous period, reflecting a decrease of approximately 38.3%[37] - The net profit for the current period was ¥15,401,432.51, compared to ¥9,511,280.58 in the previous period, indicating a year-over-year increase of about 62.0%[41] - The total profit for the current period was ¥12,868,800.72, up from ¥11,219,941.35 in the previous period, reflecting an increase of approximately 14.7%[40] - The company's operating profit for the current period was ¥44,907,353.82, slightly up from ¥43,933,219.33 in the previous period, indicating a growth of approximately 2.2%[43] - The operating profit for the current period was ¥54,226,401.71, an increase of 46.2% from ¥37,100,240.43 in the previous period[46] Cash Flow - The net cash flow from operating activities was negative at CNY -25,426,353.89, a decline of 138.95%[8] - The total cash flow from operating activities was negative at -¥25,426,353.89, a decline from a positive cash flow of ¥65,286,251.37 in the previous period[49] - The net cash flow from financing activities improved by 528.82% to ¥175,475,693.65, mainly from increased bank loans[20] - The net cash flow from financing activities was CNY 158,155,433.19, compared to a negative CNY -40,920,126.47 in the same period last year[53] - The company's cash flow from operating activities was impacted by increased payments for goods and services, totaling CNY 704,339,133.02, compared to CNY 369,497,599.19 in the previous period[52] Assets and Liabilities - Total assets increased by 22.57% to CNY 1,270,213,808.48 compared to the end of the previous year[8] - The company's cash and cash equivalents increased by 124.71% to ¥119,664,380.61 due to new bank loans[19] - Accounts receivable rose by 64.34% to ¥50,167,791.27, primarily due to outstanding bills[19] - Total liabilities increased to ¥470,189,162.24 from ¥266,438,350.61, reflecting a rise of approximately 76.3%[36] - The company's fixed assets increased to ¥335,395,983.72 from ¥296,918,237.25, reflecting a growth of 12.9%[33] Shareholder Information - The company had a total of 14,515 common shareholders at the end of the reporting period[12] - The largest shareholder, Dongguan Yonglv Industrial Investment Co., Ltd., held 40.78% of the shares, amounting to 65,250,000 shares[12] Research and Development - Research and development expenses rose by 30.30% to ¥24,361,724.25, reflecting higher investment in R&D[19] - The company reported R&D expenses of ¥8,465,849.21, up from ¥6,866,892.57, which is an increase of approximately 23.3%[37] - Research and development expenses for the current period amounted to ¥7,452,325.96, compared to ¥5,725,991.99 in the previous period, marking an increase of about 30.1%[40] - Research and development expenses increased to ¥22,278,431.23, up from ¥15,059,478.51, indicating a focus on innovation[46] Investments - The company invested ¥5,100 million to establish Guangdong Guoli Supply Chain Management Co., Ltd., acquiring a 51% stake[23] - The company also invested ¥3,000 million to set up Dongguan Guoli Tengyun Intelligent Technology Co., Ltd., holding a 30% stake[23] Other Financial Metrics - The company reported a total of CNY 6,173,672.67 in non-recurring gains and losses for the year-to-date[9] - The company reported a tax expense of ¥6,232,495.92 for the current period, compared to ¥6,106,374.32 in the previous period, reflecting a slight increase of about 2.1%[44] - The company recorded other income of ¥3,218,105.11 in the current period, which was not reported in the previous period, indicating new revenue streams[40] - The company received ¥225,000,000.00 related to other investment activities, indicating potential growth opportunities[50] Inventory and Receivables - Inventory increased to ¥149,902,329.11 from ¥137,893,085.47, reflecting a growth of 8.2%[32] - Accounts receivable rose to ¥385,293,188.21 from ¥305,813,254.02, marking an increase of 26%[32] - The company experienced a 4910.66% increase in asset impairment losses, totaling ¥9,179,307.22, due to higher accounts receivable[19] Audit and Compliance - The report for the third quarter was not audited, which may affect the reliability of the financial data presented[54]

Financial Performance - The company reported a revenue of 100 million RMB for the first half of 2018, representing a 15% increase compared to the same period in 2017[12]. - The net profit attributable to shareholders was 20 million RMB, an increase of 10% year-on-year[12]. - Total operating revenue for the reporting period reached ¥499,739,369.76, an increase of 43.27% compared to ¥348,804,168.63 in the same period last year[19]. - Net profit attributable to shareholders was ¥30,342,846.28, reflecting a growth of 10.12% from ¥27,554,881.86 year-on-year[19]. - The company aims to achieve a revenue target of 250 million RMB for the full year 2018, with a projected growth rate of 20%[12]. - The gross profit margin for modified engineering plastics decreased by 17.35% due to rising raw material costs and selective order acceptance[94]. - The company reported a net profit impact of -1,641,459.56 from the establishment of GuoLi Feizhi, indicating the financial implications of new investments[137]. Research and Development - The company is investing 30 million RMB in R&D for new product development, focusing on environmentally friendly materials[12]. - Research and development expenses for the first half of 2018 amounted to ¥15.90 million, representing 3.18% of total revenue of ¥499.74 million[84]. - The company has developed a total of 4,422 product formulas across three major series, which are a key component of its core competitiveness[69]. - The company has achieved 26 successful transformations from 46 R&D projects, with 13 invention patents granted and 31 under review[85]. - The company plans to enhance its R&D capabilities to meet the growing demand for low-carbon and environmentally friendly materials, driven by increasing consumer awareness and regulatory policies[56]. - The company’s R&D investment has been consistently increasing, ensuring continuous improvement in technological innovation capabilities[83]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region by the end of 2019[12]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market share[12]. - The company operates on a "sales-driven production" model, tailoring production based on customer orders and providing technical support to clients[38]. - The company focuses on direct sales to customers, necessitating strong technical knowledge to support product selection and processing[38]. - The company exports finished shoes directly to overseas clients, mainly in Asia, leveraging its import and export rights[50]. Product Development and Quality - The company focuses on the research, production, and sales of low-carbon, environmentally friendly polymer materials, with major products including EVA and TPR modified materials[27]. - The EVA and TPR materials produced are characterized by their environmental friendliness and non-toxicity, aligning with sustainable development goals[32]. - The company’s products have passed third-party testing, ensuring high quality and stability, which enhances brand influence in the industry[29]. - The modified plastics produced are compliant with national low-carbon environmental standards, positioning the company in a key growth sector[35]. - The production processes for EVA and TPR materials involve critical steps such as formulation development and quality control to ensure product performance meets customer specifications[58]. Financial Management - The company's cash and cash equivalents increased by 78.96% compared to the beginning of the period, mainly due to the maturity of idle fundraising investments in financial products[78]. - The company's prepayments increased by 140.89% compared to the beginning of the period, primarily due to an increase in advance payments for materials[78]. - The company's short-term borrowings increased by 104.39% compared to the beginning of the period, driven by increased working capital loans due to sales growth[78]. - The company has committed to investing RMB 16,320.37 million in the EVA project, with 56.93% of the investment completed by the end of the reporting period[122]. - The company has also committed RMB 3,500.65 million for the R&D center technology transformation project, with 35.77% of the investment completed[122]. Risks and Challenges - The company has identified key risks including market competition and supply chain disruptions, with strategies in place to mitigate these risks[4]. - The company faces risks from raw material price fluctuations, particularly for SBS, EVA, and recycled materials, which are linked to global oil prices[140]. - The company has a risk of losing government subsidies, which are based on new product development and market expansion, potentially impacting operational results if these subsidies are eliminated[142]. - Export sales accounted for 35.09% of total revenue, exposing the company to foreign exchange risks due to fluctuations in the USD exchange rate[144]. Legal and Compliance - The company is involved in a lawsuit with Dongguan Xinwang Industrial Investment Co., Ltd. for overdue payments amounting to 336,655.02 CNY[151]. - The company has a pending case against Guangdong Longji Electric Co., Ltd. for overdue payments totaling 1,057,460.00 CNY[153]. - The company has incurred litigation costs related to the aforementioned cases, including a total of 24,990.22 CNY in court fees[151]. - The company has disclosed ongoing litigation matters in its annual report and other public disclosures[151]. Shareholder Information - The total number of shares increased from 106,680,000 to 160,020,000 due to a capital reserve conversion and cash dividend distribution[180]. - The basic and diluted earnings per share for the reporting period were both RMB 0.19, down from RMB 0.23 in the previous year[182]. - The total number of restricted shares at the end of the period is 120,000,000, with 40,000,000 shares released during the current period[185]. - The total number of shareholders at the end of the reporting period is 16,365[187].

Dividend Policy and Profit Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders, based on a total of 106,680,000 shares[5]. - The cash dividend distribution plan for 2017 includes a cash dividend of RMB 1.50 per 10 shares, totaling RMB 16,002,000.00, which represents 100% of the profit distribution[172]. - The cash dividend for 2017 accounts for 25.99% of the net profit attributable to ordinary shareholders, which was RMB 61,578,056.71[177]. - The company has a cash dividend policy that aims to distribute at least 80% of the distributable profits in mature stages without major investments, and at least 40% when there are significant investment plans[161][162]. - The company plans to review its dividend policy at least every three years, considering the opinions of independent directors and public investors[159]. - The company has established a mechanism for profit distribution that requires board approval and independent director input before submission to the shareholders' meeting[166]. - The cash dividend distribution aligns with the guidelines from the China Securities Regulatory Commission encouraging stable returns for investors[172]. - The company plans to retain undistributed profits for future distribution, indicating a strategy for long-term growth[172]. - The company ensured compliance with its articles of association and shareholder resolutions regarding the cash dividend policy[171]. - The cash dividend distribution process was transparent and allowed minority shareholders to express their opinions[171]. Financial Performance - The company's operating revenue for 2017 was ¥757,651,004.98, representing a 20.01% increase compared to ¥631,337,302.96 in 2016[16]. - The net profit attributable to shareholders for 2017 was ¥61,578,056.71, a 3.03% increase from ¥59,767,430.73 in 2016[16]. - Total assets at the end of 2017 reached ¥1,036,359,231.57, a 41.81% increase from ¥730,811,735.75 at the end of 2016[16]. - The net assets attributable to shareholders increased by 75.65% to ¥788,873,442.60 from ¥449,110,836.47 in 2016[16]. - The company reported a basic earnings per share of ¥0.75, down 2.60% from ¥0.77 in 2016[16]. - The total cash inflow from operating activities was CNY 734.72 million, a 5.50% increase from CNY 696.39 million in 2016[111]. - The net cash flow from operating activities decreased by 62.98% to CNY 34.98 million compared to CNY 94.50 million in the previous year[111]. - The company reported a significant increase in financial expenses, rising by 132.21% to CNY 13.93 million due to increased foreign exchange losses[108]. - The total cash outflow from investment activities surged by 137.58% to CNY 305.40 million, primarily due to ongoing project investments[111]. - The company had a net cash flow from financing activities of CNY 182.99 million, a 70.31% increase from CNY 107.45 million in the previous year[111]. Research and Development - The company invested 28.11 million yuan in R&D in 2017, accounting for 3.71% of its revenue, which is a 39.75% increase from the previous year[89]. - The company has developed a total of 3,771 product formulas, which are a key component of its core competitiveness[64]. - The company is actively engaged in R&D for EVA and TPR environmentally modified materials, which are widely used in high-end shoe materials and electronic products[48]. - The company has developed a significant number of technical standards and formulations for modified recycled engineering plastics, responding to customer-specific requirements[49]. - The company aims to enhance its R&D capabilities and optimize product formulations to meet the growing demand for low-carbon and environmentally friendly materials[53]. - The number of R&D personnel increased to 60, representing 2.65% of the total workforce[110]. - The company holds 13 invention patents and 1 utility model patent, with 27 invention patents currently under review[109]. Market and Product Development - The company is focused on expanding its market presence and developing new products and technologies[5]. - The company’s main business involves the R&D, production, and sales of low-carbon, environmentally friendly, and recycled polymer materials[23]. - The company has established long-term cooperative relationships with well-known international brands such as CROCS, AMAZON, and WALMART[25]. - The company’s main products include EVA and TPR environmentally modified materials, which are widely used in various industries[23]. - The company operates on a "sales-driven production" model, tailoring production based on customer orders and providing technical support to clients[33]. - The company aims to achieve reasonable profits by supplying modified environmental materials and products to both domestic and international customers[36]. - The company plans to increase production capacity and market share while expanding into new material application fields in 2018[138]. - In 2018, the company aims to enhance R&D efforts and promote the industrialization of high-value products[141]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report[5]. - The company faces risks from raw material price fluctuations, particularly for petrochemical products[144]. - The competitive landscape in the modified materials industry is challenging due to low market concentration and the presence of numerous small enterprises[145]. - The company is at risk of relocation due to ownership issues with three leased properties, which could lead to operational losses and relocation costs[149]. - The company relies on government subsidies for new product development and market expansion, and the removal of these subsidies could negatively impact operational results[151]. - The actual controllers of the company hold 40.78% of the shares, which poses a risk of improper control over major decisions affecting the company's strategy and operations[152]. - The company has committed to ensuring the accuracy and completeness of its IPO prospectus, with legal responsibilities for any misleading statements or omissions[182]. - The company has confirmed that all commitments made to minority shareholders have been fulfilled on time[183]. Operational Efficiency - The company has strengthened project management and resource allocation to enhance operational efficiency and profitability[93]. - The company has a dedicated quality control team stationed at subcontractors to monitor production processes and ensure product quality[40]. - The production model is based on "sales-driven production," where products are developed and produced according to customer orders, ensuring efficient control over quality, cost, and delivery[39]. - The procurement strategy involves assessing customer demand and inventory levels to determine the quantity and type of raw materials needed for production[37]. Legal and Regulatory Matters - The company has initiated legal proceedings against Xinwang Industrial for the recovery of overdue payments, with the court ruling that the case does not currently meet execution conditions[191]. - The company is involved in multiple legal disputes, including a case against Haier Chemical Engineering Plastic Co., Ltd. for 1,631,650.00 CNY in unpaid goods[192]. - The company reported no penalties or rectification measures during the reporting period[194]. - There were no related party debt and credit transactions during the reporting period[200].

Financial Performance - Total revenue for Q1 2018 reached ¥241,398,708.95, representing a 45.23% increase compared to ¥166,218,798.79 in the same period last year[8] - Net profit attributable to shareholders was ¥20,792,109.89, up 40.83% from ¥14,763,574.80 year-on-year[8] - Basic earnings per share increased by 5.56% to ¥0.19 from ¥0.18 in the previous year[8] - The company achieved operating revenue of RMB 241.40 million, a year-on-year increase of 45.23% driven by growth in finished shoe sales[26] - Net profit reached RMB 20.72 million, reflecting a year-on-year growth of 40.43%[29] - The company reported a net profit of CNY 177,999,899.60 for Q1 2018, up from CNY 157,207,789.71 in the previous year, indicating a growth of 13.3%[46] - The company's operating revenue for Q1 2018 was RMB 227,579,151.09, an increase of 64.5% compared to RMB 138,319,125.06 in the same period last year[55] - The gross profit margin improved to 22.0%, compared to 18.0% in the previous year, indicating better cost management[55] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,147,715,261.91, a 10.74% increase from ¥1,036,359,231.57 at the end of the previous year[8] - Total assets increased significantly, with cash and cash equivalents rising by 96.09% to RMB 104.42 million due to new short-term borrowings[25] - The company's total equity at the end of Q1 2018 was CNY 813,656,636.96, compared to CNY 789,882,450.51 at the beginning of the period, an increase of 3.0%[46] - Total liabilities increased to CNY 334,058,624.95 from CNY 246,476,781.06, representing a rise of 35.4%[45] - The company’s total liabilities increased, with long-term borrowings rising by 45.99% to RMB 63.49 million due to new borrowings[25] Cash Flow - The company reported a net cash flow from operating activities of -¥5,591,806.72, a decline of 116.55% compared to ¥33,781,846.32 in the same period last year[8] - The company reported a net cash inflow from operating activities of RMB 219,104,946.32, compared to RMB 166,603,178.31 in the previous year, reflecting a 31.5% increase[58] - Total cash inflow from operating activities was 232,401,651.44 RMB, while cash outflow was 237,993,458.16 RMB, resulting in a net cash flow deficit[59] - Cash flow from investment activities showed a net outflow of -46,474,818.96 RMB, compared to -35,243,898.76 RMB in the previous period[60] - Cash inflow from financing activities was 140,757,500.00 RMB, with a net cash flow of 103,423,277.14 RMB after outflows[60] Shareholder Information - The actual controller of the company, Shao Jiantang and Yang Na, holds 40.78% of the shares through Yonglv Investment, with Shao serving as chairman and core technical personnel[17] - The company has a total of 19,260 common shareholders at the end of the reporting period[20] - The top 10 shareholders hold a combined 80.78% of the shares, with Yonglv Investment holding 40.78% and pledging 30 million shares[20] - The top shareholder, Yonglv Investment, has 43.5 million shares, all of which are subject to a lock-up period[20] - The company has not conducted any repurchase transactions among the top 10 common shareholders during the reporting period[21] Research and Development - The company holds 13 invention patents and 1 utility model patent, with 27 invention patents currently under review[12] - The company has developed 4,029 formulas across its product lines, including 1,764 for EVA and 1,437 for TPR[14] - Government subsidies received amounted to ¥137,500, which are crucial for supporting R&D and market expansion efforts[9] - The company is committed to increasing R&D investment and enhancing product innovation to maintain competitive advantage[14] Risk Management - The company faces risks related to raw material price fluctuations, which are linked to global oil prices and market demand[10] - The company has established a sound corporate governance structure to mitigate risks from the actual controller's influence[17] - The company will strictly implement receivables management policies to minimize losses from uncollectible accounts[18] - The company will enhance the collection efforts of accounts receivable to ensure timely warnings and minimize losses[18] - The company has not faced any significant risks or difficulties that would adversely affect its future operations[33] Inventory and Receivables - As of March 31, 2018, the company's accounts receivable amounted to 290.94 million RMB, representing 42.42% of current assets and 25.35% of total assets, with a bad debt provision of 19.25 million RMB[18] - Accounts receivable increased to CNY 290,942,057.99 from CNY 275,285,913.07, indicating a growth in sales or credit terms[43] - Inventory decreased to CNY 118,730,975.42 from CNY 137,893,085.47, suggesting improved inventory management or sales performance[43] - The company experienced an increase in management expenses to RMB 14,921,202.90, up from RMB 7,355,031.59 in Q1 2017, indicating higher operational costs[55]