Revenue and Profitability - Revenue for Q3 2021 was CNY 530,867,622.70, an increase of 5.97% compared to the same period last year[4] - Net profit attributable to shareholders was a loss of CNY 23,784,161.54, a decrease of 279.93% year-on-year[4] - Basic earnings per share for Q3 2021 was -CNY 0.11, down 257.14% from the previous year[5] - Total operating revenue for Q3 2021 was CNY 1,449,551,837.71, a decrease of 4.3% compared to CNY 1,514,482,696.35 in the same period last year[26] - Net profit for Q3 2021 was a loss of CNY 112,667,627.96, compared to a profit of CNY 46,099,494.67 in Q3 2020[28] - Basic earnings per share for Q3 2021 was -0.57, compared to 0.24 in the same period last year[29] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,452,606,214.45, a decrease of 0.64% from the end of the previous year[5] - As of September 30, 2021, the total current assets amounted to CNY 1,558,013,210, a decrease from CNY 1,872,843,856.03 at the end of 2020, representing a decline of approximately 16.7%[21] - Total assets as of the end of Q3 2021 were CNY 2,452,606,214.45, slightly down from CNY 2,468,496,034.22 at the end of the previous quarter[24] - Total liabilities decreased to CNY 1,494,747,236.89 from CNY 1,587,765,884.70 year-on-year[24] Cash Flow - The net cash flow from operating activities for the year-to-date was -CNY 86,804,597.80, a decline of 202.27% compared to the same period last year[4] - The net cash flow from operating activities was -86,804,597.80, compared to 84,876,479.80 in the previous period, indicating a significant decline[32] - Total cash inflow from operating activities was 1,333,824,428.56, down from 1,429,768,116.85, reflecting a decrease of approximately 6.7%[32] - Cash outflow from operating activities totaled 1,420,629,026.36, an increase from 1,344,891,637.05, representing a rise of about 5.6%[32] - Cash inflow from investment activities was 191,364,347.93, down from 458,051,146.20, a decrease of approximately 58.3%[32] - Cash outflow from investment activities was 417,564,927.49, compared to 675,465,843.64, showing a reduction of about 38.2%[32] - The net cash flow from investment activities was -226,200,579.56, slightly worse than -217,414,697.44 in the previous period[32] - Cash inflow from financing activities was 323,574,174.97, up from 276,813,171.61, indicating an increase of approximately 16.8%[33] - Cash outflow from financing activities totaled 287,587,274.88, compared to 214,660,018.69, reflecting an increase of about 34.0%[33] - The net cash flow from financing activities was 35,986,900.09, down from 62,153,152.92, indicating a decline of approximately 42.3%[33] - The ending cash and cash equivalents balance was 197,317,839.19, down from 278,086,027.78, representing a decrease of about 29.0%[33] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 13,493[14] - The total number of restricted shares at the end of the period was 4,947,772, down from 5,181,292 at the beginning of the period, indicating a reduction of approximately 4.5%[17] Investments and Expenses - Research and development expenses for Q3 2021 were CNY 90,109,474.09, an increase of 15.5% from CNY 77,889,931.22 in Q3 2020[27] - The company reported a significant increase in financial expenses, totaling CNY 12,060,877.63, compared to a negative financial expense of -CNY 4,351,961.79 in the previous year[27] - The company received government subsidies amounting to CNY 2,067,172.00 during the reporting period[7] Asset Composition - The company's cash and cash equivalents decreased by 52.84% compared to the beginning of the period, primarily due to the gradual investment of raised funds[12] - The company's cash and cash equivalents decreased to CNY 271,851,039.48 from CNY 576,410,475.25, indicating a reduction of about 52.9%[21] - Accounts receivable increased to CNY 782,638,773.58 from CNY 682,074,926.81, reflecting a growth of approximately 14.7%[22] - Inventory decreased to CNY 138,298,770.61 from CNY 226,813,225.12, showing a decline of about 39%[22] - Fixed assets increased to CNY 422,007,729.83 from CNY 331,099,352.68, representing a growth of about 27.5%[22] - The company reported a significant increase in long-term construction projects, with amounts rising to CNY 232,354,288.17 from CNY 115,567,239.77, a growth of approximately 101.5%[22] - The company holds other equity investments valued at CNY 30,354,818, unchanged from the previous period[22] - Deferred income tax assets amounted to CNY 49,070,408.06, compared to CNY 13,551,370.90 in the same period last year[23] - The total equity attributable to shareholders of the parent company was CNY 957,858,977.56, up from CNY 880,730,149.52 year-on-year[24]

Financial Performance - The company reported a total revenue of RMB 500 million for the first half of 2021, representing a year-on-year increase of 15%[16]. - The net profit attributable to shareholders was RMB 80 million, up 20% compared to the same period last year[16]. - The company's operating revenue for the reporting period was ¥918,684,215.01, a decrease of 9.36% compared to ¥1,013,517,377.93 in the same period last year[22]. - The net profit attributable to shareholders was -¥88,883,466.42, representing a decline of 370.32% from ¥32,881,062.35 in the previous year[22]. - The net cash flow from operating activities was -¥64,155,319.43, a decrease of 251.69% compared to ¥42,293,095.56 in the same period last year[22]. - The total comprehensive income for the first half of 2021 was a loss of CNY 89.58 million, compared to a gain of CNY 35.37 million in the same period last year[191]. - The company reported a net profit of -¥2,121.46 million for the first half of 2021, indicating a loss[53]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2021, representing a year-on-year growth of 25%[110]. - The company reported a basic earnings per share of -0.460 for the first half of 2021, compared to 0.170 in the same period of 2020[191]. Research and Development - The company plans to invest RMB 100 million in R&D for new product development in the next fiscal year[16]. - The company is focusing on R&D in new technologies, including optical lens technology and Mini-LED technology, to enhance its competitive edge and expand product applications[33]. - Research and development investment increased by 12.45% to ¥56,325,651.35, reflecting the company's commitment to enhancing R&D capabilities[40]. - The company plans to invest 300 million RMB in research and development for new technologies over the next two years[110]. - The company is focusing on the development of Mini-LED technology, with plans to launch new products by Q4 2021[16]. Market Expansion and Strategy - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 30% increase in market share by 2023[16]. - The company is expanding its product application fields to include automotive, industrial control, and wearable products to reduce customer concentration risk[71]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market presence[16]. - The company is considering strategic acquisitions to bolster its market position, with a target of identifying at least three potential candidates by the end of the year[112]. - The company is expanding its market presence, targeting an increase in market share by 5% in the next year through strategic partnerships and marketing initiatives[110]. Financial Management and Investment - The company has not reported any changes in fundraising projects or significant asset sales during the reporting period[63][67]. - The total investment amount for the reporting period was ¥219,134,510.74, representing a 77.03% increase compared to the previous year's investment of ¥123,785,160.79[50]. - The company has committed to reducing operational costs by 10% through efficiency improvements and cost management strategies in 2021[110]. - The company plans to enhance its R&D capabilities and product innovation to keep pace with rapid updates in terminal application products, focusing on technologies like optical lens, Mini-LED, and VR[76]. - The company is focusing on managing the operation of raised funds to achieve expected benefits from its investment projects[106]. Risk Management - The company has identified risks related to customer concentration and raw material price fluctuations, which may impact future performance[5]. - The company emphasizes the risk of raw material price fluctuations, which could adversely affect profitability if significant price changes or shortages occur[75]. - The company is facing risks from intensified market competition due to international trade tensions and political uncertainties, which could impact its operational performance[73]. - The ongoing US-China trade tensions pose risks to the company's operations, particularly in the electronic consumer goods sector, prompting the company to expand its domestic customer base and explore new application fields[78]. Corporate Governance and Compliance - The company emphasizes compliance with national laws and regulations, ensuring transparency and timely information disclosure to investors[98]. - The management emphasized the importance of maintaining investor confidence and transparency in all operations and commitments[112]. - The company is committed to ensuring compliance with relevant regulations regarding shareholding reductions and disclosures[103]. - The company has commitments from shareholders regarding stock lock-up periods, with a voluntary lock-up lasting until November 29, 2021, for certain shareholders[101]. Shareholder Information - The company has not distributed cash dividends or bonus shares for the half-year period, nor has it increased capital through reserves[87]. - The company approved a cash dividend of RMB 0.8 per 10 shares, totaling RMB 9,641,785.6, and a capital reserve conversion of 72,313,392 shares, increasing total shares to 192,835,712[141]. - The company plans to issue 4.4 million restricted stock options as part of its employee incentive program, with 3.54 million shares granted to 75 initial recipients[88]. - The company has not engaged in entrusted financial management, derivative investments, or entrusted loans during the reporting period[64][65][66]. Operational Challenges - The company is closely monitoring the COVID-19 pandemic situation, ready to adjust strategies to ensure stable operations and maintain communication with customers and suppliers[80]. - The overall price level of the company's main products has been declining, influenced by customer pressure and intensified industry competition[72]. - The company reported a significant increase in financial expenses, which reached CNY 7.49 million, compared to a negative CNY 2.49 million in the first half of 2020[189].

Financial Performance - Revenue for Q1 2021 was CNY 466,912,104.30, a decrease of 2.16% compared to CNY 477,233,864.93 in the same period last year[8] - Net profit attributable to shareholders was a loss of CNY 34,655,687.21, representing a decline of 457.93% from a profit of CNY 9,682,221.34 in the previous year[8] - The net profit after deducting non-recurring gains and losses was a loss of CNY 36,228,804.91, down 958.17% from CNY 4,221,656.67 in the same period last year[8] - Basic earnings per share were CNY -0.29, a decrease of 458.02% from CNY 0.081 in the same period last year[8] - Diluted earnings per share were CNY -0.26, down 420.99% from CNY 0.081 in the previous year[8] - The weighted average return on equity was -4.01%, a decline of 5.20% compared to 1.19% in the same period last year[8] - The company reported a significant increase in financial expenses, with interest expenses rising to CNY 4.55 million from CNY 0.36 million in the previous year[62] - The total comprehensive income for Q1 2021 was a loss of CNY 34.09 million, compared to a gain of CNY 12.04 million in the same quarter last year[60] Cash Flow - The net cash flow from operating activities was CNY 35,882,189.83, an increase of 1.48% compared to CNY 35,358,349.36 in the previous year[8] - Cash flow from operating activities was CNY 484.49 million, an increase from CNY 461.99 million in the same period last year, indicating improved cash generation[66] - The net cash flow from operating activities for Q1 2021 was ¥35,882,189.83, compared to ¥35,358,349.36 in Q1 2020, reflecting a slight increase[67] - Total cash inflow from investment activities was ¥133,309,209.11, while cash outflow was ¥250,750,808.89, resulting in a net cash flow from investment activities of -¥117,441,599.78[68] - The net cash flow from financing activities was ¥30,408,373.36, an increase from ¥15,381,225.38 in the previous year[68] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,506,048,632.44, up 1.52% from CNY 2,468,496,034.22 at the end of the previous year[8] - Net assets attributable to shareholders decreased by 1.54% to CNY 867,197,548.67 from CNY 880,730,149.52 at the end of the previous year[8] - The company's current assets decreased to CNY 1,758,859,102.68 from CNY 1,872,843,856.03, representing a decline of about 6.06%[48] - The total liabilities as of March 31, 2021, were CNY 1,759,859,102.68, compared to CNY 1,872,843,856.03 at the end of the previous year, indicating a decrease of approximately 6.06%[48] - The company's fixed assets increased to CNY 366,606,756.52 from CNY 331,099,352.68, reflecting a growth of about 10.69%[49] Market and Competition - Net profit attributable to shareholders decreased by 457.93% year-on-year, primarily due to intensified industry competition and significant product price declines[20] - The overall price level of the company's main products has shown a downward trend, influenced by customer pressure and intensified industry competition[27] - Market competition has intensified due to international trade tensions, which may adversely affect the company's operating performance if it fails to maintain its competitive edge[28] - The company aims to reduce customer concentration risk by expanding into new markets and developing new products such as AR/VR and smartwatches[26] Strategic Initiatives - The company plans to continue expanding product application areas and enhance innovation strategies to improve product added value[20] - The company is focusing on the development of Mini-LED technology for automotive displays and monitors, aiming for industrial breakthroughs[22] - The company is committed to enhancing operational efficiency and management capabilities to optimize production processes and decision-making mechanisms[24] - The company is actively developing new products in emerging markets, including AR/VR and wearable devices, to seize growth opportunities[33] Operational Challenges - Fluctuations in raw material prices could negatively impact profitability; the company will focus on cost control and technological innovation to mitigate this risk[29] - Rapid updates in terminal application products, especially in the smartphone sector, pose a risk; the company will invest in technology to keep pace with market demands[30] - If the rollout of 5G technology does not meet expectations, it may slow down smartphone sales, impacting the company's product sales and profitability[32]

Financial Performance - The company's operating revenue for 2020 was CNY 2,012,343,285.76, an increase of 18.27% compared to CNY 1,701,423,451.80 in 2019[18]. - The net profit attributable to shareholders decreased by 49.06% to CNY 43,456,139.63 in 2020 from CNY 85,313,921.85 in 2019[18]. - The basic earnings per share dropped by 50.68% to CNY 0.36 in 2020, down from CNY 0.73 in 2019[18]. - The total assets increased by 29.87% to CNY 2,468,496,034.22 at the end of 2020, compared to CNY 1,900,698,867.13 at the end of 2019[18]. - The net profit after deducting non-recurring gains and losses was CNY 12,458,504.38, a decrease of 78.89% from CNY 59,024,154.55 in 2019[18]. - The company reported a total of CNY 30,997,635.25 in non-recurring gains for 2020, compared to CNY 26,289,767.30 in 2019[23]. - The company's fixed assets increased by 23.53% compared to the previous year, primarily due to expanded production and increased equipment investment[36]. - The company reported a net cash flow from operating activities of CNY 66,038,391.47, a 3.00% increase from CNY 64,112,464.26 in 2019[18]. - The company reported a gross margin of 12.28% for the backlight display module segment, a decrease of 3.10% compared to the previous year[68]. - The total operating costs for 2020 amounted to ¥1,762,446,502, which is a 23.09% increase compared to ¥1,435,701,954 in 2019[73]. Dividend Policy - The company reported a cash dividend of 0.8 RMB per 10 shares (including tax) and a capital reserve increase of 6 shares per 10 shares for all shareholders[4]. - The total distributable profit for the year is RMB 300,020,854.61, with cash dividends accounting for 100% of the profit distribution[152]. - The company will issue 6 additional shares for every 10 shares held as a capital reserve transfer[154]. - The cash dividend distribution policy requires a minimum of 20% cash dividends for companies in a growth stage with significant capital expenditure plans[152]. - The cash dividend payout ratio for 2020 was 22.19% of the net profit attributable to shareholders[158]. - The cash dividend payout ratio for 2019 was 20.35% of the net profit attributable to shareholders[158]. - The cash dividend payout ratio for 2018 was 44.93% of the net profit attributable to shareholders[158]. - The company aims to maintain a stable and sustainable dividend policy, balancing short-term and long-term interests of shareholders[141]. Risk Management - The company emphasizes the importance of risk awareness regarding customer concentration, product price decline, intensified market competition, and raw material price fluctuations[5]. - The top five customers accounted for 87.31% of total annual sales, with the largest customer contributing 34.00%[75]. - The company faces customer concentration risk, relying on major clients like BOE and TCL, and plans to diversify its product applications to mitigate this risk[129]. - The overall price level of the company's main products has been declining, influenced by market competition and customer pressures, necessitating improvements in production efficiency and product line expansion[130]. - The company is exposed to raw material price volatility risks, which could impact profitability, and is focusing on cost control and technological innovation to mitigate this[132]. Research and Development - The company invested 108.89 million yuan in R&D, a year-on-year increase of 28.69%, focusing on Mini-LED and Micro-LED technologies[49]. - The Mini-LED backlight technology achieved breakthroughs in applications for automotive displays, tablets, and notebooks, with small batch shipments realized[50]. - The company has filed for 139 new patents, including 74 invention patents, to protect its innovations in Mini-LED and other core technologies[54]. - The company is actively pursuing Mini-LED and Micro-LED technologies, with 95 related patent applications filed in 2020, reflecting a commitment to innovation and market leadership[80]. - The company plans to increase R&D investment in Mini-LED technology, focusing on its industrialization in the automotive display and monitor markets[120]. Market Expansion - The company aims to expand its product applications in the rapidly growing 5G and 8K ultra-high-definition display markets[28]. - The company is actively pursuing new market opportunities in the automotive and VR sectors, aligning with its strategic growth plans[47]. - The company intends to expand its market presence in mid-size products, leveraging its integrated supply chain advantages[122]. - The company will continue to strengthen its existing mobile backlight product market to increase market share[123]. - The company is actively expanding into new markets and product applications, including AR/VR and wearable devices, to capture emerging opportunities[136]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[4]. - The company has a stable management team with over 10 years of industry experience, enabling timely responses to customer needs and market trends[44]. - The company has commitments from major shareholders regarding shareholding restrictions and conditions for potential stock sales[159]. - The company has established a commitment to avoid any actions that may harm the legitimate rights and interests of its shareholders[169]. - The company has promised to adhere to the latest regulations from the China Securities Regulatory Commission regarding compensation measures and commitments[171]. Operational Efficiency - The company emphasizes improving operational efficiency and management capabilities to enhance overall performance[124]. - The company has implemented a comprehensive set of production management systems to ensure product quality and safety standards are met[33]. - The company maintains a procurement model of "production-based ordering," ensuring stable quality and supply by collaborating with multiple suppliers[31]. - The company’s production model is characterized by "customization and batch production," responding to client orders through an ERP system[33]. Financial Management - The company reported a significant increase in financing activities, with net cash flow from financing activities rising by 3,870.53% to ¥373,773,866.71 in 2020[83]. - The company’s total assets increased, with cash and cash equivalents at year-end reaching 576,410,475 yuan, representing 23.35% of total assets, up from 23.09% at the beginning of the year[89]. - The company’s short-term borrowings increased to 100,137,569 yuan, accounting for 4.06% of total assets, compared to 1.56% previously[90]. - The company has committed to taking legal and effective measures to ensure compliance with related party transaction decision-making procedures[169]. Shareholder Engagement - The company emphasizes communication with minority shareholders regarding profit distribution proposals, ensuring their opinions are considered[167]. - The board of directors will propose adjustments to the cash dividend ratio based on the company's development stage and capital expenditure plans[166]. - The company has committed to transparency in the use of raised funds, with detailed reports available for stakeholders[101]. - The company will disclose detailed information about its cash dividend policy and its execution in the annual report[167].

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) - The company's Board of Directors, Supervisory Board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities[4](index=4&type=chunk) - The company's principal, chief financial officer, and head of the accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) [Key Accounting Data and Financial Indicators](index=3&type=section&id=Item%202.1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the reporting period, the company's third-quarter operating revenue and net profit both achieved year-on-year growth, while the cumulative net profit from the beginning of the year to the end of the reporting period decreased by **34.68%**, primarily due to a significant **66.32%** decline in net profit attributable to shareholders after deducting non-recurring gains and losses, with net cash flow from operating activities significantly increasing by **82.13%**, indicating healthy cash flow from core operations Key Financial Indicators | Indicator | Year-to-Date (YTD) (RMB) | YoY Change | Current Period (Q3) (RMB) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,514,482,696.35 | 27.52% | 500,965,318.42 | 23.50% | | Net Profit Attributable to Shareholders of Listed Company | 46,099,494.67 | -34.68% | 13,218,432.32 | 54.46% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 18,203,994.47 | -66.32% | 1,756,102.96 | -43.64% | | Net Cash Flow from Operating Activities | 84,876,479.80 | 82.13% | 42,583,384.24 | 455.30% | | Basic Earnings Per Share (RMB/share) | 0.38 | -37.41% | 0.11 | 49.46% | | Total Assets (RMB) | 2,134,043,615.58 | 12.28% (vs. end of prior year) | - | - | - From the beginning of the year to the end of the reporting period, the company's non-recurring gains and losses totaled **RMB 27,895,500.20**, primarily from government subsidies (**RMB 31,550,120.41**)[9](index=9&type=chunk)[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=Item%202.2.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period-End) As of the end of the reporting period, the company had a total of **11,560** common shareholders, with a highly concentrated equity structure where the largest shareholder, Wu Xinli, holds **48.99%** of shares, and related parties and concerted actions exist among the top ten shareholders - As of the end of the reporting period, the company had a total of **11,560** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares | | :--- | :--- | :--- | :--- | | Wu Xinli | 48.99% | 58,671,920 | 58,671,920 | | Shenzhen Xinshengjie Investment Co., Ltd. | 12.69% | 15,200,000 | 15,200,000 | | Zhongtou Changchun Venture Capital Fund Management Co., Ltd. | 5.46% | 6,539,520 | 6,539,520 | | Gongqingcheng Jinhu Zhongcheng Investment Management Partnership | 3.34% | 4,000,080 | 0 | | Lv Xiaoxia | 1.78% | 2,128,000 | 2,128,000 | - Shareholder relationship explanation: Wu Xinli and Lv Xiaoxia are a married couple; Zhongtou Changchun Venture Capital Fund and Changchun Ronghuidada Investment Management Center are parties acting in concert[13](index=13&type=chunk) [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) [Significant Changes in Key Financial Data and Reasons](index=6&type=section&id=Item%203.1.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Reasons) During the reporting period, several of the company's financial data points underwent significant changes, with construction in progress surging by **995.87%** due to investments in the Huizhou fundraising project, management expenses increasing by **95.32%** due to equity incentives and pandemic-related work stoppage losses, and net cash flow from financing activities rising by **210.33%** due to increased short-term borrowings Significant Changes in Balance Sheet Items | Item | Change from Beginning of Period | Primary Reason | | :--- | :--- | :--- | | Construction in Progress | +995.87% | Increased investment in Huizhou fundraising project | | Short-term Borrowings | +233.33% | Increased revolving loans | | Long-term Deferred Expenses | +266.69% | Increased factory renovation | Significant Changes in Income Statement Items | Item | YoY Change | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | +27.52% | Business expansion | | Management Expenses | +95.32% | Equity incentive expenses and pandemic-related work stoppage losses | | Financial Expenses | -46.97% | Decreased interest income, increased bank borrowings | Significant Changes in Cash Flow Statement Items | Item | YoY Change | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | +82.13% | Increased operating revenue | | Net Cash Flow from Investing Activities | -122.01% | Increased equipment investment and Huizhou fundraising project investment | | Net Cash Flow from Financing Activities | +210.33% | Increased short-term borrowings | [Progress of Significant Events](index=6&type=section&id=Item%203.2.%20Progress%20of%20Significant%20Events) During the reporting period, the company advanced several significant capital operations, including the approval of its application for issuing convertible corporate bonds to unspecified targets by the Shenzhen Stock Exchange ChiNext Listing Committee, the initiation of multiple repurchase and cancellation procedures for restricted shares granted but unvested to departed incentive recipients, and the ongoing process of granting reserved restricted shares to incentive recipients - The company's application for issuing convertible corporate bonds to unspecified targets was approved by the ChiNext Listing Committee of the Shenzhen Stock Exchange on **August 27, 2020**[19](index=19&type=chunk) - The company initiated multiple repurchase and cancellation procedures for restricted shares of departed incentive recipients during the reporting period, with relevant procedures currently underway[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The company announced on **September 15, 2020**, the grant of reserved restricted shares to incentive recipients, with the granting process not yet completed[22](index=22&type=chunk) [Fulfillment of Commitments](index=8&type=section&id=Item%203.3.%20Fulfillment%20of%20Commitments) The report details various commitments made by the company, its actual controllers, shareholders, and directors, supervisors, and senior management in equity incentives, initial public offerings, and refinancing activities, covering share lock-up, reduction intentions, share price stability, profit distribution, and avoidance of horizontal competition, with all commitments being fulfilled normally during the reporting period without overdue non-fulfillment - Equity incentive commitments set company-level performance targets for three fiscal years from 2019-2021, requiring a growth of no less than **20%** in 2020 and no less than **50%** in 2021, based on 2018 operating revenue[26](index=26&type=chunk)[27](index=27&type=chunk) - Initial public offering commitments: Actual controllers Wu Xinli and Lv Xiaoxia, among others, committed to a **36-month** lock-up period from the listing date, expiring on **November 29, 2021**[27](index=27&type=chunk)[28](index=28&type=chunk) - Share price stability commitment: Within three years after listing, if the company's stock closing price falls below the net asset per share of the previous year for **20** consecutive trading days, measures such as company buybacks, controlling shareholder increase holdings, and director/supervisor/senior management increase holdings will be triggered to stabilize the share price[30](index=30&type=chunk) [Other Significant Events](index=23&type=section&id=Item%203.4.%20Other%20Significant%20Events) The company did not provide a forecast for its 2020 operating performance, had no irregular external guarantees or non-operating fund occupation by the controlling shareholder during the reporting period, and hosted one institutional on-site research visit on September 30 - The company did not provide a forecast for its **2020** operating performance[42](index=42&type=chunk) - During the reporting period, the company had no irregular external guarantees or non-operating fund occupation by the controlling shareholder[42](index=42&type=chunk)[43](index=43&type=chunk) - The company hosted an on-site research visit by institutional investors on **September 30, 2020**[44](index=44&type=chunk) [Financial Statements](index=24&type=section&id=Item%204.%20Financial%20Statements) [Financial Statements](index=24&type=section&id=Item%204.1.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements as of September 30, 2020, showing continuous growth in asset size and operating revenue, but a decline in profitability from the beginning of the year to the end of the reporting period, with significant cash outflows from investing activities primarily for fixed assets and project construction [Consolidated Balance Sheet](index=24&type=section&id=Item%204.1.1.%20Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets were **RMB 2.134 billion**, an increase of **12.28%** from the end of the previous year, primarily driven by increases in non-current assets such as construction in progress and fixed assets; total liabilities were **RMB 1.268 billion**, with a debt-to-asset ratio of **59.43%**; net assets attributable to shareholders of the listed company were **RMB 866 million**, up **6.68%** from the end of the previous year Key Items of Consolidated Balance Sheet (Unit: RMB) | Item | September 30, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | 1,602,542,156.91 | 1,540,739,356.55 | +4.01% | | Total Non-Current Assets | 531,501,458.67 | 359,959,510.58 | +47.66% | | **Total Assets** | **2,134,043,615.58** | **1,900,698,867.13** | **+12.28%** | | Total Current Liabilities | 1,243,004,866.61 | 1,066,980,947.82 | +16.50% | | **Total Liabilities** | **1,268,320,804.24** | **1,089,203,524.77** | **+16.44%** | | **Total Equity Attributable to Parent Company Owners** | **865,722,811.34** | **811,495,342.36** | **+6.68%** | [Consolidated Income Statement (Year-to-Date)](index=34&type=section&id=Item%204.1.2.%20Consolidated%20Income%20Statement%20(Year-to-Date)) In the first three quarters of 2020, the company achieved operating revenue of **RMB 1.514 billion**, a year-on-year increase of **27.52%**; however, due to a significant increase in management expenses and the impact of other income and asset impairment losses, operating profit decreased by **40.65%** year-on-year, and net profit attributable to parent company owners was **RMB 46.1 million**, a year-on-year decrease of **34.68%** Key Items of Consolidated Income Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,514,482,696.35 | 1,187,614,854.41 | +27.52% | | Total Operating Costs | 1,491,040,662.44 | 1,112,985,643.91 | +33.97% | | Operating Profit | 47,671,047.35 | 80,322,345.84 | -40.65% | | **Net Profit** | **46,099,494.67** | **70,574,769.86** | **-34.68%** | | **Basic Earnings Per Share (RMB/share)** | **0.38** | **0.6071** | **-37.41%** | [Consolidated Cash Flow Statement (Year-to-Date)](index=39&type=section&id=Item%204.1.3.%20Consolidated%20Cash%20Flow%20Statement%20(Year-to-Date)) In the first three quarters of 2020, the company's net cash flow from operating activities was **RMB 84.88 million**, a year-on-year increase of **82.13%**, indicating enhanced cash generation from core operations; net cash outflow from investing activities was **RMB 217.41 million**, a significant year-on-year increase, primarily for the acquisition of fixed assets and project construction; net cash inflow from financing activities was **RMB 62.15 million**, mainly from new borrowings Key Items of Consolidated Cash Flow Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 84,876,479.80 | 46,601,948.42 | +82.13% | | Net Cash Flow from Investing Activities | -217,414,697.44 | -97,931,079.94 | -122.01% | | Net Cash Flow from Financing Activities | 62,153,152.92 | -56,334,292.89 | Not Applicable | | **Net Increase in Cash and Cash Equivalents** | **-68,303,010.21** | **-107,463,184.61** | Not Applicable | [Audit Report](index=43&type=section&id=Item%204.2.%20Audit%20Report) The company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[80](index=80&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,013,517,377.93, representing a 29.61% increase compared to ¥781,960,064.13 in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 46.98% to ¥32,881,062.35 from ¥62,017,108.02 in the previous year[20]. - The net profit after deducting non-recurring gains and losses dropped by 67.71% to ¥16,447,891.51, down from ¥50,930,737.64 year-on-year[20]. - The net cash flow from operating activities was ¥42,293,095.56, a decrease of 27.81% compared to ¥58,587,114.45 in the same period last year[20]. - Basic earnings per share fell by 65.38% to ¥0.27 from ¥0.78 in the previous year[20]. - The company's gross profit margin for backlight display modules decreased by 4.49% year-on-year, with revenue of ¥1,011,047,272.33 and cost of sales at ¥870,767,977.79[59]. - The company's revenue for the first half of 2020 reached 101.36 million CNY, representing a year-on-year growth of 29.61%[47]. - The net profit attributable to shareholders for the same period was 32.88 million CNY, a decrease of 46.98% compared to the previous year, impacted by pandemic-related losses and increased R&D expenses[47]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,921,714,859.54, reflecting a 1.11% increase from ¥1,900,698,867.13 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company increased by 4.11% to ¥844,871,361.40 from ¥811,495,342.36 at the end of the previous year[20]. - The company's total assets as of June 30, 2020, amounted to CNY 1,990,051,441.70, down from CNY 2,062,275,210.22 at the end of 2019, representing a decline of 3.5%[170]. - The company's current assets decreased to CNY 1,631,027,200.34 as of June 30, 2020, compared to CNY 1,721,664,038.87 at the end of 2019, indicating a decrease of 5.3%[169]. - Total liabilities decreased from CNY 1,220,752,376.01 at the end of 2019 to CNY 1,113,269,210.22 as of June 30, 2020, a decline of 8.8%[170]. Research and Development - R&D expenses for the first half of 2020 amounted to 50.09 million CNY, an increase of 31.77% year-on-year[49]. - Research and development investment increased by 31.77% to ¥50,091,397.65, reflecting the company's commitment to enhancing its competitive edge through innovation[57]. - The company has made substantial progress in 5G technology research and development to enhance product competitiveness[50]. - The company applied for 151 new patents during the reporting period, including 48 invention patents and 2 PCT international patent applications, focusing on core technologies such as anti-peeping backlight and Mini-LED technology[50]. Market Position and Strategy - The main business focus is on the research, production, and sales of backlight display modules, which are essential for various electronic devices[27]. - The company specializes in small and medium-sized LED backlight display modules, with applications in smartphones, tablets, and automotive displays[28]. - The company has established stable partnerships with major clients such as BOE and TCL, enhancing its market position[27]. - The company's market share increased from approximately 4.8% in 2017 to about 7.22% in the first half of 2020[48]. - The company plans to expand its product application fields to reduce customer concentration risk, including sectors like automotive, industrial control, and wearable products[83]. Operational Efficiency - The production model is characterized by "customized and batch production," responding to specific customer requirements[33]. - The company maintains a direct sales model, primarily serving liquid crystal display module manufacturers[34]. - The procurement strategy emphasizes "production-based ordering" to minimize inventory risks and control costs[31]. - The company has established a full industry chain intelligent manufacturing system, enhancing production efficiency and product quality[43]. - The company has introduced high-precision automation equipment and implemented a full-industry chain intelligent manufacturing system to improve operational efficiency[51]. Financial Management and Shareholder Relations - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company is committed to controlling production costs and improving product quality to mitigate risks from raw material price fluctuations[86]. - The company is actively expanding into new application areas, including AR/VR and smart wearable products, to address the rapid product update cycle risk[87]. - The company is focusing on expanding domestic clients and new markets to mitigate risks from US-China trade tensions[88]. - The company is committed to adhering to regulations regarding stock reduction and will consider market conditions[97]. Corporate Governance and Compliance - The company has commitments related to stock lock-up periods, ensuring no transfer or management delegation of shares for 36 months post-IPO[96]. - The company is committed to reducing related party transactions and ensuring the independence of its operations and finances[105]. - The actual controllers of the company issued a commitment letter to avoid competition, ensuring no direct or indirect investment in competing businesses[105]. - The company will publicly explain the specific reasons for any unfulfilled commitments in designated media[107]. Social Responsibility - The company made a donation of 100,000 CNY to the Longhua Charity Association as part of its social responsibility efforts during the pandemic[131]. - The company has no plans for targeted poverty alleviation initiatives at this time[130].

Financial Performance - Total revenue for Q1 2020 was CNY 477,233,864.93, representing a 44.61% increase compared to CNY 330,010,459.48 in the same period last year[8] - Net profit attributable to shareholders decreased by 66.60% to CNY 9,682,221.34 from CNY 28,992,190.12 year-on-year[8] - Net profit after deducting non-recurring gains and losses fell by 83.96% to CNY 4,221,656.67 from CNY 26,315,235.46 in the previous year[8] - Basic and diluted earnings per share decreased by 79.70% to CNY 0.081 from CNY 0.399 year-on-year[8] - The total operating revenue for Q1 2020 was CNY 477,233,864.93, an increase of 44.6% compared to CNY 330,010,459.48 in Q1 2019[57] - The net profit for Q1 2020 was CNY 5,291,000.00, compared to a net loss of CNY 1,000,000.00 in Q1 2019, indicating a significant turnaround[58] - The total comprehensive income for Q1 2020 was CNY 12,042,074.51, compared to CNY 28,992,190.12 in Q1 2019[60] - The company reported a total profit of CNY 11,462,541.62 for Q1 2020, down 65.3% from CNY 33,003,146.49 in the previous year[60] Cash Flow and Liquidity - Operating cash flow for the period was CNY 35,358,349.36, down 64.67% from CNY 100,081,850.06 in the same quarter last year[8] - The company’s cash and cash equivalents decreased by 30.61% compared to the beginning of the period, mainly due to idle funds being invested in financial products[17] - The company’s cash and cash equivalents were CNY 274,066,030.14, down from CNY 444,584,817.05 at the end of 2019, indicating a liquidity challenge[53] - The company experienced a net decrease in cash and cash equivalents of CNY 154,856,913.42 during the quarter, contrasting with an increase of CNY 86,276,031.94 in the same quarter last year[71] - Cash flow from operating activities for Q1 2020 was CNY 35,358,349.36, a decrease of 64.7% from CNY 100,081,850.06 in the same period last year[67] Expenses and Costs - Operating costs in Q1 2020 rose by 53.06% year-on-year, outpacing revenue growth due to increased product complexity and quality requirements[18] - Management expenses surged by 195.84% year-on-year, largely due to stock incentive costs and losses from COVID-19-related shutdowns[19] - The total operating costs for Q1 2020 were CNY 466,180,575.04, up 56.7% from CNY 297,507,627.18 in the same period last year[58] - The company incurred a loss of CNY 5,775,377.50 in asset impairment losses during Q1 2020, compared to a loss of CNY 2,437,914.59 in the same period last year[63] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,926,713,938.28, a 1.37% increase from CNY 1,900,698,867.13 at the end of the previous year[8] - The company's total assets as of March 31, 2020, were CNY 1,972,295,589.42, a decrease from CNY 2,062,275,210.22 at the end of 2019[55] - The total liabilities decreased to CNY 1,111,540,795.27 from CNY 1,220,752,376.01 at the end of 2019, reflecting a reduction in financial obligations[55] Shareholder Information - Net assets attributable to shareholders increased by 2.43% to CNY 831,181,733.54 from CNY 811,495,342.36 at the end of the previous year[8] - The number of ordinary shareholders at the end of the reporting period was 10,632[12] - The largest shareholder, Wu Xinli, holds 48.99% of the shares, totaling 58,671,920 shares[12] Government Support and Subsidies - The company received government subsidies amounting to CNY 5,938,137.18 during the reporting period[9] - Other income rose by 120.48% year-on-year, primarily due to increased government subsidies[20] Research and Development - The company plans to enhance R&D investment and focus on new technologies such as anti-peeping backlight technology and under-screen fingerprint technology to meet customer demands[27] - Research and development expenses increased to CNY 21,245,962.61 from CNY 17,241,152.22, highlighting a focus on innovation[58] Market and Competition - The company has seen an increase in market scale and position despite intensified competition in the backlight display industry due to trade tensions and the gradual application of OLED technology[30] - The company aims to reduce customer concentration risk by expanding into new markets and applications, including automotive and wearable products[28] - The company is facing risks from rapid product updates in the terminal application fields, particularly in the smartphone industry, and plans to invest in new technologies such as Mini-LED and VR[33] Investment and Projects - The total amount of raised funds is CNY 35,000 million, with CNY 1,780.17 million invested in the current quarter[41] - The project for the LED backlight source production base in Huizhou has a total investment commitment of CNY 30,000 million, with CNY 7,892.26 million (26.31%) utilized by the end of the reporting period[41] - The optical research and development project has a total investment commitment of CNY 5,000 million, with CNY 5,132.33 million (102.65%) utilized by the end of the reporting period[41]

Financial Performance - The company reported a total revenue of RMB 119,752,220 for the year 2019, with a cash dividend of RMB 1.45 per 10 shares distributed to shareholders[6]. - The company's operating revenue for 2019 was CNY 1,701,423,451.80, representing a 9.75% increase compared to CNY 1,550,229,841.39 in 2018[19]. - The net profit attributable to shareholders decreased by 47.25% to CNY 85,313,921.85 from CNY 161,724,003.93 in the previous year[19]. - The net cash flow from operating activities dropped by 69.75% to CNY 64,112,464.26, down from CNY 211,941,928.25 in 2018[19]. - The basic earnings per share fell by 74.74% to CNY 0.73, compared to CNY 2.89 in 2018[19]. - Total assets increased by 25.46% to CNY 1,900,698,867.13 from CNY 1,514,924,085.57 at the end of 2018[19]. - The company reported a significant decline in the net profit excluding non-recurring gains and losses, which was CNY 59,024,154.55, down 61.66% from CNY 153,968,408.59 in 2018[19]. - The company’s inventory management and procurement processes are designed to minimize risks and control costs effectively[33]. - The company reported a significant increase in cash flow from investment activities, with a net cash flow of -CNY 198,031,383.75, reflecting a 107.29% increase year-on-year[79]. Research and Development - The company reported significant investments in research and development to drive innovation in flexible circuit boards and image sensors[12]. - R&D expenses reached 84.61 million yuan in 2019, an increase of 26.51% compared to 2018[51]. - The number of R&D personnel rose to 358, accounting for 10.06% of the total workforce[76]. - R&D investment represented 4.97% of total revenue, up from 4.31% in the previous year[76]. - The company has developed advanced technologies including Mini-LED and anti-peeping backlight technologies, enhancing its product offerings and competitiveness[42]. - The company plans to enhance R&D investment, promoting technologies such as anti-peeping backlight, under-screen fingerprint, and Mini-LED for mass production[112]. Market Strategy and Expansion - The company plans to expand its market presence and enhance product offerings, focusing on new technologies and product development in the LED and OLED sectors[12]. - The company is actively pursuing strategic partnerships and potential acquisitions to bolster its competitive position in the technology sector[12]. - The company aims to enhance its production capabilities and efficiency through advanced manufacturing technologies[12]. - The company is focused on increasing its market share in the optical and electronic components industry, targeting both domestic and international markets[12]. - The company is actively expanding into the Indian market to enhance its international competitiveness[50]. - The company plans to expand its product offerings into automotive and industrial control sectors, focusing on mid-size applications[75]. - The company aims to become a leading international backlight display module enterprise, focusing on enhancing smart manufacturing and expanding into new application areas[107]. Corporate Governance and Social Responsibility - The company has established a robust governance structure, ensuring transparency and accountability in its financial reporting and operational decisions[12]. - The company maintains a strong commitment to corporate social responsibility and sustainable business practices[12]. - The company has implemented a comprehensive human resources management system to improve employee recruitment and training processes[55]. - The company has established a comprehensive quality management system, achieving certifications such as ISO9001 and IATF16949, ensuring compliance with stringent product quality requirements[43]. - The company has implemented a comprehensive social responsibility strategy, focusing on shareholder, employee, supplier, and customer rights protection[185]. Profit Distribution and Shareholder Relations - The board of directors has approved a profit distribution plan, indicating a commitment to returning value to shareholders while maintaining growth strategies[6]. - The company maintains a profit distribution policy that emphasizes active, sustainable, and stable returns to investors, ensuring that profit distribution does not exceed cumulative distributable profits and does not harm the company's ongoing operations[127]. - The company aims for a minimum cash dividend of 10% of the distributable profits achieved in the current year, with higher minimums based on the company's development stage and capital expenditure plans[129]. - The profit distribution proposal for 2019 was approved at the shareholders' meeting, with no profit distribution made in 2017[137]. - The company ensures that the profit distribution policy is compliant with regulations and provides transparency in decision-making processes[134]. - The company has established a clear communication channel with shareholders, especially minority shareholders, to gather their opinions on profit distribution[132]. Risks and Challenges - The company emphasizes the importance of risk awareness regarding forward-looking statements, which are subject to market and operational uncertainties[6]. - The company faces customer concentration risk, as it relies on major clients in the LCD display module industry, which could impact sales if these clients face difficulties[117]. - The company is at risk of declining product prices due to market competition and technological maturity, necessitating continuous innovation and cost management[118]. - The company is exposed to risks from raw material price fluctuations, which could adversely affect profitability if prices rise significantly[120]. Operational Efficiency and Management - The company has implemented an intelligent manufacturing system, integrating various management systems to enhance production efficiency and product quality[44]. - The management team has over 10 years of industry experience, enabling the company to adapt to market trends and customer needs effectively[45]. - The company aims to enhance profit levels through strict and scientific cost and expense management, focusing on budget management and internal control[145]. Share Capital and Stock Management - The company's total share capital increased from 72,661,200 shares to 116,257,920 shares after the capital reserve conversion on May 28, 2019[195]. - As of December 31, 2019, the company completed the initial grant of restricted stock, raising the total share capital to 119,752,220 shares[196]. - The shareholding structure includes significant holdings by domestic natural persons, accounting for 53.69% of total shares[196]. - The company has not engaged in any share buybacks during the reporting period[198]. - The company plans to lift restrictions on certain shares held by major shareholders by November 30, 2021[200].

Financial Performance - Operating revenue decreased by 9.87% to CNY 405,654,790.28 for the current period[9] - Net profit attributable to shareholders decreased by 85.03% to CNY 8,557,661.83 for the current period[9] - Basic earnings per share dropped by 92.99% to CNY 0.0736[9] - Cash flow from operating activities decreased by 68.43% to CNY 46,601,948.42 year-to-date[9] - The weighted average return on equity fell by 91.36% to 1.22%[9] - The company reported a net profit margin decline, indicating potential challenges in maintaining profitability[9] - Total operating revenue for Q3 2019 was CNY 405,654,790.28, a decrease of 9.5% compared to CNY 450,065,311.41 in the same period last year[49] - Net profit for Q3 2019 was CNY 8,557,661.83, a significant decline of 85.0% compared to CNY 57,155,317.74 in Q3 2018[50] - Basic and diluted earnings per share decreased to CNY 0.0736 from CNY 1.05 in the previous year, representing a drop of 93.0%[51] Assets and Liabilities - Total assets increased by 7.33% to CNY 1,625,914,940.08 compared to the end of the previous year[9] - Accounts receivable increased by 32.77% compared to the beginning of the period, mainly due to an increase in customer bill settlements[20] - Prepayments decreased by 76.13% compared to the beginning of the period, primarily due to a reduction in advance payments for imported raw materials[20] - Other receivables rose by 154.44% compared to the beginning of the period, mainly due to the payment of factory deposits[20] - Fixed assets increased by 61.25% compared to the beginning of the period, primarily due to equipment purchases[21] - Short-term borrowings increased by 136.36% compared to the beginning of the period, mainly due to an increase in current loans[21] - Total liabilities increased to RMB 829,587,563.78 from RMB 716,502,103.55, marking a rise of about 15.7%[41] - The company's equity attributable to shareholders decreased slightly to RMB 796,327,376.30 from RMB 798,421,982.02[42] Research and Development - R&D expenses increased by 34.82% year-on-year, reflecting the company's emphasis on R&D investment[21] - Research and development expenses for the quarter were CNY 23,799,124.23, an increase from CNY 17,935,284.14, representing a rise of 32.7%[49] - Research and development expenses increased to ¥61,812,057.10 from ¥45,848,085.34, representing a growth of approximately 34.76%[56] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 12,998[13] - The largest shareholder, Wu Xinli, holds 50.47% of the shares, totaling 58,671,920 shares[13] - The company has established a three-year shareholder return plan, emphasizing stable and continuous returns to investors[28] - The profit distribution policy includes a commitment to cash dividends, with a minimum of 10% of the distributable profit to be distributed annually[28] - The company will prioritize cash dividends when conditions are met, including profitability and no major investment plans in the next twelve months[28] Strategic Initiatives - The company expects revenue growth of 20% for the next quarter, driven by new product launches and market expansion strategies[24] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2020[24] - A strategic acquisition of a local tech firm is anticipated to enhance the company's product offerings and market reach[24] - The company has initiated a stock buyback program to stabilize share prices, with a budget of 50 million RMB allocated for this purpose[24] Cash Flow and Investments - Net cash flow from operating activities decreased by 68.43% year-on-year, mainly due to rising material costs and increased operating expenses[21] - The company reported a net cash outflow from investing activities of CNY 97,931,079.94, compared to a net outflow of CNY 62,139,089.37 in the previous year[65] - The company raised CNY 239,982,578.66 from financing activities in Q3 2019, compared to CNY 11,000,000.00 in the same period last year[66] Compliance and Governance - The company reported a commitment to strictly adhere to all public commitments made during its initial public offering, actively accepting social supervision[31] - The actual controllers of the company, Wu Xinli and Lv Xiaoxia, pledged to minimize related party transactions and ensure compliance with relevant laws and regulations[31] - The company will publicly disclose specific reasons for any failure to fulfill commitments and apologize to shareholders and the public[32] - The company will take legal responsibility for any losses caused to investors due to unfulfilled commitments[32]

Financial Performance - The company reported a total revenue of RMB 200 million for the first half of 2019, representing a year-on-year increase of 15%[15]. - The net profit attributable to shareholders was RMB 30 million, up 10% compared to the same period last year[15]. - Total revenue for the reporting period was ¥781,960,064.13, representing a year-on-year increase of 13.26% compared to ¥690,397,406.46[21]. - Net profit attributable to shareholders decreased by 22.94% to ¥62,017,108.02 from ¥80,475,312.09 in the same period last year[21]. - Net profit after deducting non-recurring gains and losses fell by 33.62% to ¥50,930,737.64 from ¥76,728,640.39[21]. - Basic and diluted earnings per share dropped by 47.30% to ¥0.78 from ¥1.48[21]. - The total comprehensive income for the first half of 2019 was ¥62,016,011.29, compared to ¥80,472,005.57 in the same period of 2018, a decrease of approximately 22.8%[171]. - The company's net profit for the first half of 2019 was CNY 66,803,836.49, a decrease of 17.4% compared to CNY 80,867,348.87 in the same period of 2018[175]. Research and Development - The company plans to invest RMB 50 million in R&D for new product development in the next fiscal year[15]. - Research and development expenses for the first half of 2019 were 38.01 million RMB, representing a 36.18% increase compared to the same period in 2018[50][55]. - The company aims to enhance its competitive edge through continuous R&D investment and the development of new technologies such as under-display fingerprint and anti-peep backlight technology[50]. - The company has a strong focus on R&D, with investments in systems like PLM to enhance project management from development to mass production[43]. Market Strategy and Expansion - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 25% increase in market share by the end of 2020[15]. - The company aims to launch two new product lines by Q4 2019, focusing on innovative technology solutions[15]. - The company plans to continue optimizing its product structure and develop new profit growth points in the future[48]. - The company is focusing on R&D innovation to mitigate the impacts of the US-China trade conflict and market competition[81]. Financial Position and Assets - Total assets increased by 5.88% to ¥1,604,020,645.38 from ¥1,514,924,085.57[21]. - The company's equity attributable to shareholders decreased to ¥787,776,793.31 from ¥798,421,982.02, a decline of about 1.8%[162]. - The company's current assets totaled ¥1,337,480,849.94 as of June 30, 2019, slightly up from ¥1,331,719,431.56 at the end of 2018, indicating a marginal increase of about 0.5%[160]. - The total liabilities stood at ¥816,243,852.07, up from ¥716,502,103.55, which is an increase of around 13.9%[162]. Risks and Challenges - The management highlighted risks including market competition and raw material price fluctuations, which could impact future performance[6]. - The company faces significant risks from intensified industry competition, leading to a decrease in gross profit margins[80]. - The company has identified a risk of customer concentration, with major clients including BOE, Tianma, and TCL Group, which could impact sales if these clients face operational difficulties[82]. - The cost of raw materials accounted for 82.24% of the main business costs in the first half of 2019, indicating vulnerability to price fluctuations[86]. Shareholder and Governance Matters - The company has not plans to distribute cash dividends or issue bonus shares for this fiscal year[7]. - The company plans to implement stock buyback measures if the stock price falls below the audited net asset value per share for 20 consecutive trading days[96]. - The company will announce any stock reduction plans three trading days in advance and comply with relevant regulations[95]. - The company emphasizes the need for continuous product development to avoid risks associated with a narrow product range and market acceptance[85]. Corporate Social Responsibility - The company donated 89,000 yuan to Lianxing Middle School in Nan'an for poverty alleviation efforts[129]. - The investment amount for improving educational resources in impoverished areas was 89,000 yuan (8.9 million yuan) during the reporting period[130]. Legal and Compliance - The company faced a lawsuit regarding patent infringement with a claim amount of 4.9 million CNY, which was withdrawn by the plaintiff on March 18, 2019[108]. - The company reported no significant litigation or arbitration matters during the reporting period[110]. - The company has made commitments to strictly fulfill all public commitments made during the initial public offering[104].