Group 1: Company Overview and Production Capacity - Qingdao Guolin Environmental Protection Technology Co., Ltd. is focusing on the production of ethyl acid with a capacity of 25,000 tons, expected to be operational in the first half of next year [2][3] - The global market capacity for ethyl acid is approximately 300,000 to 400,000 tons, with domestic capacity around 200,000 tons [2][3] - The company’s ethyl acid products are primarily used for export and in the pharmaceutical, vanillin, and food industries [2][3] Group 2: Market Dynamics and Competition - The current market capacity for crystalline ethyl acid is estimated at 20,000 to 30,000 tons, with no large-scale producers other than the company [3][4] - The company anticipates a positive market outlook, especially in emerging fields, following the release of its production capacity [3][4] - The company’s products are expected to initially target the high-end market, with limited impact on the low-end market due to the high quality of its products [3][4] Group 3: Pricing and Cost Structure - The price of the company's water-soluble ethyl acid is approximately 16,000 to 20,000 yuan per ton, subject to fluctuations based on raw material costs [4][5] - The main cost components for the ethyl acid products are the raw material (succinic acid) and electricity for ozone production, with electricity costs accounting for about 30% [5][6] Group 4: Future Plans and Development - The company is actively building a sales team and establishing a sales model, with confidence in future sales based on current market feedback [3][4] - The company plans to expand its production capacity beyond the initial 25,000 tons, depending on market conditions [5][6] - The company is also developing a semiconductor project, with ongoing testing and plans for significant progress in the first half of next year [5][6] Group 5: Legal and Traditional Business - The company is currently involved in a lawsuit with Lane Xang Minerals Limited, with no significant developments reported [6] - The traditional business segments include municipal water treatment and industrial wastewater treatment, which are significantly influenced by policy directions [6]

Financial Performance - In Q3 2022, the company's operating revenue was 198 million CNY, a decrease of 46.77% compared to the previous year [2] - The net profit attributable to shareholders was 12.09 million CNY, down 80.78% year-on-year [2] - The net cash flow from operating activities was 28.3 million CNY, an increase of 149.08% compared to the same period last year [2] Project Updates - The Xinjiang subsidiary is currently in a trial production phase, facing increased costs due to depreciation and employee salaries [2] - The production capacity ramp-up in Xinjiang has been delayed due to strict pandemic control measures, limiting the number of employees [3] - The company is optimizing the DCS control system during the lockdown period, but full production ramp-up will only begin after restrictions are lifted [3] Business Operations - The company has 1.1 million CNY in unexecuted contracts, which provide some stability to operations [3] - Revenue from the ozone business segment has declined due to delays in product delivery and acceptance caused by the pandemic [3] - The company is maintaining communication with domestic and international clients, although logistics disruptions have affected order fulfillment [4] Equipment and Production - The verification results for the first set of semiconductor ozone cleaning equipment are still pending [4] - The pricing of semiconductor ozone cleaning equipment will be determined based on customer needs and design plans [4] - The company plans to hire approximately 230 employees for the Xinjiang project, with current staffing at around 200 [4] Raw Materials and Costs - The main raw materials for producing ethyl aldehyde acid are anhydride and ozone, with sufficient domestic supply for anhydride [5] - The production of 25,000 tons of ethyl aldehyde acid is estimated to yield around 23,000 tons of potassium formate as a byproduct [5] - The company is currently working on a preliminary cost accounting plan for the production process [5]

Financial Performance - The company's revenue for Q3 2022 was ¥71,713,371.23, a decrease of 52.91% compared to the same period last year[5]. - The net profit attributable to shareholders was ¥3,748,543.81, down 86.63% year-on-year[5]. - The net profit after deducting non-recurring gains and losses was ¥2,128,578.76, a decline of 92.31% compared to the previous year[5]. - The total revenue for the year-to-date was ¥198,249,241.16, reflecting a decrease of 46.77% compared to the same period last year, primarily due to the impact of the pandemic[9]. - The company's net profit for Q3 2022 decreased by 80.97% to CNY 11,966,964.85 compared to CNY 62,893,066.05 in the same period last year[10]. - Total profit decreased by 79.91% to CNY 14,486,638.06, reflecting the impact of the pandemic on revenue[10]. - Basic and diluted earnings per share were both CNY 0.07, a decrease from CNY 0.72 in the same quarter last year[27]. - The total profit for Q3 2022 was CNY 14,486,638.06, down 80% from CNY 72,111,735.54 in Q3 2021[26]. - The company experienced a decrease in operating profit to CNY 14,134,943.80, compared to CNY 71,617,429.27 in the previous year[26]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,625,289,076.95, an increase of 5.26% from the end of the previous year[5]. - The company's total liabilities increased to CNY 375,368,379.43 from CNY 297,514,561.37, reflecting a 26.1% rise[23]. - The equity attributable to shareholders of the parent company was CNY 1,244,017,528.68, slightly up from CNY 1,243,916,155.33[23]. - The company's cash and cash equivalents increased to CNY 269,885,015.76 as of September 30, 2022, compared to CNY 259,555,450.86 at the beginning of the year[20]. - Inventory levels rose to CNY 284,577,349.68, up from CNY 236,821,493.64 at the start of the year, indicating a 20.1% increase[20]. Cash Flow - The company experienced a 149.08% increase in net cash flow from operating activities year-to-date, totaling ¥28,297,314.07[5]. - The net cash flow from operating activities improved significantly to CNY 28,297,314.07, a change of -149.08% from -57,653,376.44 in the previous year[11]. - The net cash flow from investing activities decreased by 68.47% to -82,001,293.46, attributed to reduced investment expenditures as the Xinjiang project nears completion[11]. - The company reported a net cash outflow from investing activities of CNY -82,001,293.46, compared to CNY -260,047,932.30 in the previous year[28]. - The company's total cash inflow from financing activities was CNY 110,730,000.00, down from CNY 419,235,810.45 in the same period last year[28]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 13,255[13]. - The largest shareholder, Ding Xiangpeng, holds 28.73% of the shares, totaling 52,865,280 shares[13]. - The controlling shareholder, Mr. Dingxiang Peng, released 52,865,280 shares on July 25, 2022, accounting for 28.73% of the company's total share capital[18]. - The actual tradable shares from this release amount to 13,216,320 shares, representing 7.18% of the total share capital[18]. - The total number of restricted shares at the beginning of the period was 50,191,144, with 69,664,199 shares released during the period, and 42,867,060 shares added to the restricted list, resulting in 46,889,685 restricted shares at the end of the period[19]. Legal Matters - The company is currently involved in a lawsuit regarding a contract dispute with its subsidiary, Lane Xang Minerals Limited, in the Hong Kong High Court[19]. - The lawsuit is related to claims for damages and costs due to equipment defects, and the case has been accepted by the court but has not yet been heard[19]. Other Financial Metrics - The company reported a significant increase in fixed assets by 155.96% due to the transfer of construction in progress to fixed assets[9]. - The operating costs for the year-to-date were ¥125,816,256.98, down 47.37% year-on-year, also attributed to reduced sales from the pandemic[9]. - The company's basic earnings per share for the reporting period was ¥0.02, a decrease of 93.55% compared to the same period last year[5]. - The company’s weighted average return on equity was 0.30%, down 90.68% year-on-year[5]. - Research and development expenses for Q3 2022 were CNY 13,795,209.91, a slight decrease from CNY 14,297,447.87 in the previous year[25].

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥126.54 million, a decrease of 42.53% compared to ¥220.19 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2022 was approximately ¥8.34 million, down 76.07% from ¥34.87 million in the previous year[21]. - Basic earnings per share decreased to ¥0.05, down 87.80% from ¥0.41 in the same period last year[21]. - The total profit amounted to 9.89 million yuan, down 75.60% year-on-year[32]. - The net profit attributable to the parent company was 8.34 million yuan, a decline of 76.07% compared to the previous year[32]. - The net profit attributable to the parent company after deducting non-recurring gains and losses was 7.35 million yuan, down 78.47% year-on-year[32]. - The company's operating revenue for the reporting period was ¥126,535,869.93, a decrease of 42.53% compared to ¥220,186,908.79 in the same period last year, primarily due to reduced sales impacted by the pandemic[48]. - The company reported a net profit for the first half of 2022 of CNY 8,270,911.61, down 76.3% from CNY 34,836,273.96 in the first half of 2021[155]. - The total comprehensive income for the first half of 2022 was CNY 16,771,879.52, compared to CNY 35,628,579.12 in the same period of 2021, indicating a decline of approximately 52.9%[161]. Cash Flow and Investments - The net cash flow from operating activities improved significantly to approximately ¥14.85 million, compared to a negative cash flow of ¥10.62 million in the same period last year, representing a 239.74% increase[21]. - Net cash flow from operating activities improved by 239.74% to ¥14,845,021.61, primarily due to increased sales receipts[49]. - Net cash flow from investing activities improved by 37.76% to -¥71,245,129.54, mainly due to reduced cash management for purchasing financial products[49]. - Net cash flow from financing activities increased by 114.98% to ¥66,067,593.27, primarily due to increased bank loans for operational needs[49]. - Total cash and cash equivalents increased by 110.25% to ¥9,667,485.34, attributed to reduced investment activities and increased financing cash flow[49]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥1.59 billion, an increase of 3.13% from ¥1.54 billion at the end of the previous year[21]. - The total liabilities increased to CNY 348,723,941.68 from CNY 297,514,561.37, with current liabilities accounting for CNY 279,091,275.64, down from CNY 296,832,296.35[149]. - The equity attributable to shareholders of the parent company was CNY 1,237,780,693.49, a slight decrease from CNY 1,243,916,155.33 at the beginning of the year[149]. - The company reported a total of ¥268,999,389.24 in cash and cash equivalents, accounting for 16.89% of total assets[53]. Research and Development - The company is committed to continuous research and development, focusing on technological upgrades and exploring new applications for ozone technology[32]. - R&D investment increased by 12.78% to ¥10,267,501.69 compared to the previous year[49]. - The company has achieved significant breakthroughs in ozone system equipment manufacturing, resulting in 11 invention patents and multiple utility model patents, enhancing its core competitiveness[39]. - The company is focusing on enhancing its technological research and development capabilities, manufacturing service capacity, and operational management to maintain its competitive advantage[77]. Market and Product Development - The company is developing new applications for ozone generators in various sectors, including semiconductor-grade high-concentration ozone water systems and medical treatment devices[30][38]. - The company has successfully signed its first order for high-concentration ozone water equipment for the semiconductor industry in the first half of 2022[38]. - The company plans to continue expanding its market presence and product offerings in the environmental technology sector[64]. - The company has completed the development of several new products, including a 50kg/h IGBT ozone generator and a home-use oxygen machine, with various projects at different stages of testing and development[43]. Risk Management - The company has highlighted potential risks and corresponding measures in its management discussion section, emphasizing the importance of investor awareness regarding these risks[4]. - The company faces risks related to market competition, particularly in maintaining innovation and comprehensive competitiveness against international peers[72]. - The major shareholder, Mr. Ding Xiangpeng, holds 28.73% of the company's total equity, which may pose risks related to concentrated control over company decisions[76]. Corporate Governance - The company has not reported any significant changes in its accounting practices or financial reporting standards during the reporting period[22][23]. - The company has not undergone any changes in its controlling shareholder or actual controller during the reporting period[139]. - The company has not engaged in any related party transactions during the reporting period[108]. Environmental Commitment - The company emphasizes environmental protection as a core strategy, adhering to national regulations and promoting green production[92]. - The company has not faced any administrative penalties for environmental issues during the reporting period[92]. - The company has implemented measures to reduce carbon emissions, although specific details were not disclosed[92]. Shareholder Information - The company has not distributed cash dividends or bonus shares for the half-year period[85]. - The company approved a restricted stock incentive plan on April 15, 2022, to motivate and retain key employees[88]. - The total number of common shareholders at the end of the reporting period was 12,949[134]. - The largest shareholder, Dingxiangpeng, had 29,369,600 restricted shares at the beginning, with 23,495,680 shares released during the period[131]. Financial Reporting - The semi-annual financial report has not been audited[104]. - The financial statements are prepared based on actual transactions and in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status[184]. - The company has evaluated its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its sustainability[182].

Financial Performance - The company's revenue for Q1 2022 was ¥63,201,331.24, a decrease of 15.88% compared to ¥75,128,684.05 in the same period last year[3] - Net profit attributable to shareholders was ¥4,222,250.49, down 60.78% from ¥10,765,955.46 year-on-year[3] - Basic earnings per share decreased to ¥0.04, down 69.23% from ¥0.13 in the same period last year[3] - The total profit decreased by 61.49% to ¥4,731,031.51, attributed to a decline in operating profit[9] - The total operating revenue for Q1 2022 was CNY 63,201,331.24, a decrease from CNY 75,128,684.05 in the previous period[21] - The net profit for Q1 2022 was CNY 4,171,598.64, down from CNY 10,744,782.15 in the same period last year, reflecting a decline of approximately 61.2%[21] - The total comprehensive income for the first quarter was CNY 4,171,598.64, compared to CNY 10,744,782.15 in the previous period, reflecting a decrease of approximately 61.1%[24] Cash Flow - The net cash flow from operating activities improved significantly to ¥5,860,760.46, compared to a negative cash flow of ¥8,143,240.77 in the previous year, representing a 171.97% increase[3] - Cash inflow from operating activities totaled CNY 98,547,991.37, a decrease from CNY 135,568,310.17 in the previous period, representing a decline of about 27.3%[26] - The net cash flow from operating activities was CNY 5,860,760.46, recovering from a negative CNY 8,143,240.77 in the previous period[27] - Cash outflow for investing activities was CNY 47,141,026.84, down from CNY 104,703,524.59 in the previous period, showing a reduction of approximately 55.1%[27] - Cash inflow from financing activities increased to CNY 62,400,000.00, compared to CNY 19,826,392.73 in the previous period, marking a growth of about 214.5%[27] - The net cash flow from financing activities was CNY 42,867,568.20, up from CNY 19,335,971.28 in the previous period, indicating an increase of approximately 121.5%[27] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,534,530,084.71, a slight decrease of 0.62% from ¥1,544,139,726.75 at the end of the previous year[3] - The total liabilities decreased to CNY 283,733,320.69 from CNY 297,514,561.37, showing a reduction of about 4.6%[19] - The company's cash and cash equivalents were not explicitly detailed, but the total current assets were CNY 859,039,058.46, down from CNY 876,370,776.40[20] - The inventory level was CNY 230,434,264.99, a slight decrease from CNY 236,821,493.64 in the previous period[20] - The total equity attributable to shareholders of the parent company was CNY 1,248,138,405.82, up from CNY 1,243,916,155.33, indicating a marginal increase[20] Shareholder Information - The total number of shares held by the top 10 shareholders is 38,000,000, with the largest shareholder, Ding Xiangpeng, holding 28.73% (29,369,600 shares) [12] - The company has released 16,791,044 shares to specific investors, which were listed on August 30, 2021, and the lock-up period ended on February 28, 2022 [15] - The company approved a restricted stock incentive plan on April 15, 2022, granting up to 2.23 million shares, representing 2.18% of the total share capital of 102,231,044 shares [15] - The total number of restricted shares at the beginning of the period was 16,822,544, with 16,798,919 shares released during the period [14] - The company has no new shares issued during the reporting period, maintaining the total share count [14] - The top 10 shareholders include a mix of individual and institutional investors, with the largest holding being 28.73% [12] Expenses and Costs - Management expenses increased by 36.11% to ¥8,120,450.53, primarily due to hiring costs for new employees[8] - The total operating costs amounted to CNY 63,099,922.01, compared to CNY 62,834,895.59 in the prior period, indicating a slight increase[21] - The company reported a significant increase in research and development expenses, which were CNY 5,953,324.82 compared to CNY 4,775,500.79 in the prior period, reflecting a growth of approximately 24.6%[21] - The company reported a decrease in cash outflow for employee payments to CNY 25,680,982.81 from CNY 23,251,701.37 in the previous period, reflecting an increase of about 10.5%[27] Other Information - The company has no new product launches or technological developments reported in this quarter [12] - There are no significant mergers or acquisitions mentioned in the report [12] - The company has not provided specific future performance guidance or market expansion strategies in this report [12] - The company experienced a credit impairment loss of CNY 3,396,617.80, compared to a gain of CNY -146,650.16 in the previous period, highlighting a significant change in credit quality[23] - The company’s first quarter report was not audited[28]

Financial Performance - The company's operating revenue for 2021 was CNY 495,588,958.91, representing a 23.41% increase compared to CNY 401,578,784.24 in 2020[17]. - The net profit attributable to shareholders for 2021 was CNY 76,028,886.36, a decrease of 4.95% from CNY 79,987,030.16 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 73,951,648.41, which is a 4.38% increase from CNY 70,849,997.61 in 2020[17]. - The total assets at the end of 2021 amounted to CNY 1,544,139,726.75, reflecting a 36.29% increase from CNY 1,133,020,430.56 at the end of 2020[17]. - The net assets attributable to shareholders increased by 49.26% to CNY 1,243,916,155.33 from CNY 833,382,008.83 in 2020[17]. - The basic earnings per share for 2021 was CNY 0.84, down 10.64% from CNY 0.94 in 2020[17]. - The net cash flow from operating activities was negative CNY 19,113,550.65, a significant decrease of 127.39% compared to CNY 69,781,644.07 in 2020[17]. - The total profit amounted to 87.36 million yuan, a decrease of 5.35% year-on-year[33]. - The company achieved operating revenue of 495.59 million yuan, an increase of 23.41% year-on-year[33]. - The total profit for the period was CNY 87.36 million, a decrease of 5.35% compared to the previous year, while net profit attributable to shareholders was CNY 76.03 million, down 4.95%[44]. Research and Development - Research and development investment reached CNY 19.45 million, marking a steady increase, with the company holding 10 invention patents and 16 utility model patents by the end of the reporting period[46]. - The company has achieved breakthroughs in high-concentration ozone generation technology, with ozone generator output concentration reaching 200-300 mg/L and ozone water concentration reaching 80-150 PPM, targeting the semiconductor industry[35]. - The company is developing a high-concentration ozone generator with a target concentration of 400mg/L, aimed at expanding its market in semiconductor and pharmaceutical industries[63]. - The company is focused on maintaining a structured approach to share transfers to ensure stability and confidence among investors[200]. Market and Industry Position - The company is involved in the research, design, manufacturing, and service of ozone equipment, with a focus on innovation and technology upgrades[33]. - The demand for ozone generators is expected to continue growing due to increasing environmental protection standards and government support for the industry[27]. - The company has established a leading competitive position in the ozone industry but faces risks from intensified market competition as larger firms enter the market[93]. - The company has made significant advancements in technology, achieving competitive parity with international counterparts in ozone equipment, thus reducing reliance on imports[43]. Corporate Governance - The company reported a strict adherence to governance structures, complying with laws and regulations, ensuring a clear separation of powers among its governing bodies[101]. - The company ensures equal treatment of all shareholders, particularly minority shareholders, allowing them to fully exercise their rights[101]. - The company has established a complete and independent business system for research, procurement, production, and sales, ensuring no reliance on shareholders or related parties[105]. - The company has implemented a performance-based compensation mechanism for senior management to attract and retain talent[102]. Shareholder Engagement and Dividend Policy - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares, with a total base of 102,231,044 shares[4]. - The company emphasizes a cash dividend policy, prioritizing cash distribution, with a minimum of 20% of distributable profits allocated as cash dividends in the absence of major investment plans[157]. - The cash dividend distribution will be based on the company's distributable profits, which must be positive after covering losses and reserves[157]. - The company aims to ensure fair and reasonable practices in any related party transactions during the tenure of its actual controllers and senior management[158]. Social Responsibility and Environmental Compliance - The company actively fulfills its social responsibilities and adheres to environmental protection regulations[103]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[149]. - The company is committed to fulfilling its social responsibilities, including compliance with laws and regulations[151]. Future Outlook and Strategic Initiatives - The company plans to increase investment in ozone equipment manufacturing technology and application technology to meet the growing market demand[84]. - The company aims to enhance its competitive advantage by focusing on technological innovation and improving the overall manufacturing level in the acetaldehyde acid industry[84]. - The company is actively pursuing market expansion and new product development initiatives[129]. - The management is optimistic about future growth prospects, driven by increasing demand for eco-friendly technologies[115].

Financial Performance - The company's operating revenue for 2021 was CNY 495,588,958.91, representing a 23.41% increase compared to CNY 401,578,784.24 in 2020[17]. - The net profit attributable to shareholders for 2021 was CNY 76,028,886.36, a decrease of 4.95% from CNY 79,987,030.16 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 73,951,648.41, which is a 4.38% increase from CNY 70,849,997.61 in 2020[17]. - The total assets at the end of 2021 amounted to CNY 1,544,139,726.75, reflecting a 36.29% increase from CNY 1,133,020,430.56 at the end of 2020[17]. - The net assets attributable to shareholders increased by 49.26% to CNY 1,243,916,155.33 from CNY 833,382,008.83 in 2020[17]. - The basic earnings per share for 2021 were CNY 0.84, down 10.64% from CNY 0.94 in 2020[17]. - The net cash flow from operating activities was negative CNY 19,113,550.65, a significant decrease of 127.39% compared to CNY 69,781,644.07 in 2020[17]. - The total profit amounted to 87.36 million yuan, a decrease of 5.35% year-on-year[33]. - The company achieved operating revenue of 495.59 million yuan, an increase of 23.41% year-on-year[33]. - The company reported a significant increase in revenue from the municipal water supply sector, which grew by 50.26% to CNY 46.25 million[49]. - The revenue from the oxygen generator segment surged by 1,962.73% to CNY 67.16 million, indicating strong demand in this area[49]. - The company has made strides in domestic and international markets, with overseas revenue increasing by 449.95% to CNY 53.23 million[49]. - The sales volume of ozone generators and related systems increased by 16.07% from 865 units in 2020 to 1,004 units in 2021[53]. - The inventory of ozone generators decreased by 42.48%, from 266 units in 2020 to 153 units in 2021, due to higher sales than production[53]. Research and Development - The company has developed a full range of ozone generators with single machine outputs ranging from 3 kg/h to 120 kg/h[34]. - The company has achieved breakthroughs in high-concentration ozone generation technology, with ozone generator output concentration reaching 200-300 mg/L and ozone water concentration reaching 80-150 PPM, targeting the semiconductor industry[35]. - The company has developed an electrolytic water-type ozone generator suitable for medical treatment, household water treatment, and space disinfection, with high ozone purity[35]. - The company holds 10 invention patents and multiple utility model patents, significantly enhancing its core competitiveness in the ozone equipment manufacturing sector[36]. - Research and development investment reached CNY 19.45 million, reflecting a steady increase, with the company holding 10 invention patents and 16 utility model patents by the end of the reporting period[46]. - The number of R&D personnel increased by 16% from 75 in 2020 to 87 in 2021, with a notable rise in the number of personnel holding bachelor's degrees[65]. - The company is developing a high-concentration ozone generator with a target concentration of 400mg/L, aimed at expanding its market in semiconductor and pharmaceutical industries[63]. - The company is investing in manufacturing information technology to improve operational efficiency and production capabilities[87]. - The company has committed to increasing research and development investments in ozone technology and applications to capture market opportunities[84]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[98]. - A strategic acquisition of a local competitor is expected to enhance the company's capabilities and increase market share by 5%[98]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for this purpose[115]. - The company aims to enhance its core competitiveness through continuous technological innovation and expand its market share in high-end markets[85]. - The company plans to complete the 25,000 tons/year high-quality crystalline acetaldehyde project by 2022, utilizing proprietary technology for production[86]. - The company will focus on developing high-concentration ozone generators for semiconductor cleaning and health-related applications, promoting diversified growth[86]. Corporate Governance and Compliance - The board of directors confirmed compliance with all regulatory requirements, ensuring good corporate governance practices[101]. - The company maintains a complete and independent governance structure, ensuring no significant discrepancies with legal and regulatory requirements[105]. - The company has a fully independent financial department, adhering to accounting standards and maintaining separate bank accounts, ensuring no shared accounts with controlling shareholders[107]. - The company has established a complete and independent R&D, production, and sales system, allowing it to operate independently from shareholders and related parties[106]. - The company has committed to protecting investors' legal rights, with measures in place to ensure compliance[110]. - The company has established a mechanism for profit distribution decision-making that requires board approval and independent director opinions[157]. Environmental and Social Responsibility - The company actively fulfills social responsibilities and adheres to environmental protection regulations, promoting sustainable development[104]. - The company emphasizes investor protection and has optimized the long-term mechanism for investor returns since its listing[149]. - The company is committed to green environmental protection and resource conservation through technological innovation[149]. - The company has established partnerships with three major environmental organizations to enhance its sustainability initiatives[98]. - The company does not belong to the key pollutant discharge units published by the environmental protection department[148]. - There were no administrative penalties due to environmental issues during the reporting period[148]. Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares, with a total base of 102,231,044 shares[4]. - The total cash dividend amount is 15,334,656.60 CNY, which represents 100% of the total profit distribution amount[139]. - The company will also increase capital reserves by issuing 8 additional shares for every 10 shares held[140]. - The company emphasizes a cash dividend policy, prioritizing cash distributions while considering the interests of minority shareholders[156]. - The company will distribute no less than 20% of the annual distributable profits in cash, with cumulative cash distributions over three years not less than 30% of the average annual distributable profits[156]. - The company’s profit distribution policy will ensure that the cumulative distributable profits are positive and that there are no major investment plans or cash expenditures exceeding 30% of the latest audited net assets[156]. Financial Management and Investment - The company has committed a total investment of CNY 35,073.89 million for various projects, with a cumulative investment of CNY 27,647.82 million, achieving 78.83% of the planned investment progress as of the end of the reporting period[76]. - The company has utilized idle raised funds to temporarily supplement working capital, amounting to CNY 45,632.86 million as of December 31, 2021[79]. - The company reported a total of 9,467.24 CNY in restricted assets, which accounts for 6.13% of total assets, primarily due to bank mortgage loans[71]. - The company has no significant asset or equity sales during the reporting period[82]. - The company has no significant investment plans or major cash expenditures at present, allowing for potential increases in cash dividend ratios[157]. Employee and Management Structure - The company had a total of 678 employees at the end of the reporting period, with 592 in the parent company and 86 in major subsidiaries[133]. - The employee composition includes 337 production personnel, 37 sales personnel, 110 technical personnel, 23 financial personnel, and 171 administrative personnel[134]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 520.59 million[124]. - The company has established a comprehensive salary management system, focusing on performance and market competitiveness[135]. - The company conducted various training programs to enhance employee skills and safety awareness, including both internal and external training[136].

Financial Performance - The company's revenue for Q3 2021 reached ¥152,284,043.24, representing a 42.49% increase compared to the same period last year[4]. - Net profit attributable to shareholders was ¥28,033,956.01, up 21.74% year-over-year, while the net profit after deducting non-recurring gains and losses was ¥27,692,040.61, an increase of 24.82%[4]. - Total revenue for Q3 2021 reached CNY 372,470,952.03, a 43% increase from CNY 260,478,747.02 in the same period last year[26]. - Operating profit for the quarter was CNY 71,617,429.27, compared to CNY 66,449,675.15 in Q3 2020, reflecting a growth of approximately 3.2%[27]. - Net profit attributable to the parent company was CNY 62,906,988.33, up from CNY 56,814,491.16, marking an increase of about 10.3% year-over-year[27]. Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥1,552,767,313.16, reflecting a 37.05% increase from the end of the previous year[5]. - The company's total liabilities increased by 184.61% to ¥103,718,752.65, attributed to the need for additional bank loans to support operations[10]. - Total assets increased to CNY 1,552,767,313.16, compared to CNY 1,133,020,430.56 in the previous year, indicating a growth of approximately 37%[23]. - The company's total liabilities amounted to CNY 319,245,194.14, up from CNY 297,306,637.73, representing a rise of about 7.5%[24]. Cash Flow - Cash flow from operating activities showed a net outflow of ¥57,653,376.44, a decrease of 369.88% compared to the same period last year, primarily due to increased material procurement payments[11]. - Cash flow from operating activities was CNY 453,254,682.63, significantly higher than CNY 322,386,506.63 in the same quarter last year, showing an increase of approximately 40.6%[29]. - The net cash flow from operating activities was -57,653,376.44, a decrease from 21,362,623.24 in the previous year[30]. - The total cash inflow from investment activities was 50,991,861.07, down from 354,822,923.07 year-over-year[30]. - The net cash flow from investment activities was -260,047,932.30, compared to a positive 25,351,821.41 in the same period last year[30]. - The total cash inflow from financing activities was 419,235,810.45, significantly higher than 600,000.00 in the previous year[31]. - The net cash flow from financing activities was 400,258,807.09, a turnaround from -37,183,919.58 year-over-year[31]. - The cash and cash equivalents at the end of the period totaled 408,399,097.10, up from 246,462,142.17 at the end of the previous year[31]. Shareholder Information - The company reported a total of 16,791,044 shares under lock-up conditions, which will be released on February 28, 2022[19]. - The top shareholder, Ding Xiangpeng, holds 28.73% of the shares, amounting to 29,369,600 shares[15]. - The company has engaged in financing activities, with shareholders like Jiang Zhaojun and Chen Haihua holding 891,620 and 630,820 shares respectively through margin trading accounts[16]. - The company is committed to adhering to legal regulations regarding the transfer of shares acquired through specific stock issuance, with a six-month lock-up period for certain shareholders[18]. Investment and Growth Strategy - The company reported a significant increase in prepayments, which rose by 479.26% to ¥27,579,884.99, due to the need to secure supplier capacity amid tight international commodity supplies[10]. - The company has shown a strong focus on expanding its asset base, with significant increases in both current and non-current assets, indicating a robust growth strategy[22]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[25]. Earnings and Equity - The weighted average return on equity was 3.22%, a slight increase of 0.33% compared to the previous year[5]. - The basic earnings per share for the reporting period was ¥0.31, reflecting a 14.81% increase year-over-year[5]. - The total equity attributable to shareholders increased to CNY 1,230,794,257.30 from CNY 833,382,008.83, representing a growth of about 47.6%[24]. - The company reported a basic earnings per share of CNY 0.720, down from CNY 0.840 in the previous year, indicating a decrease of approximately 14.3%[28]. Research and Development - Research and development expenses for the quarter were CNY 14,297,447.87, compared to CNY 11,379,294.42, reflecting a growth of about 25.5%[26]. Other Information - The company did not need to adjust the beginning balance sheet items due to the new leasing standards as there were no leasing activities[32]. - The third-quarter report was not audited[33].

Group 1: Event Details - The company will participate in the "2021 Annual Qingdao Listed Companies Investor Online Reception Day" on September 24, 2021, from 15:00 to 17:00 [1] - The event will be hosted on the platform provided by Shenzhen Panorama Network Co., Ltd. [1] Group 2: Participants - The company's Secretary of the Board and Vice General Manager, Ms. Hu Wenjia, will be present [1] - The Chief Financial Officer, Ms. Liu Yanlu, will also participate in the online communication [1] Group 3: Discussion Topics - The discussion will cover topics such as corporate governance, development strategy, operational status, financing plans, equity incentives, and sustainable development [1] Group 4: Investor Engagement - The company encourages investors to actively participate in the event [1]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 220,186,908.79, representing a 43.35% increase compared to CNY 153,603,463.93 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 34,873,032.32, a 3.21% increase from CNY 33,787,149.93 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was CNY 34,152,026.20, which is a 16.03% increase from CNY 29,434,434.83 in the same period last year[22]. - The total profit amounted to 40.54 million yuan, reflecting a year-on-year growth of 6.20%[32]. - The company reported a significant increase in revenue from oxygen generators, up 1483.26% year-on-year, with a gross profit margin of 28.41%[53]. - The total comprehensive income for the first half of 2021 was CNY 34,836,273.96, compared to CNY 33,768,149.43 in the same period of 2020[145]. - The total profit for the first half of 2021 was CNY 40,539,829.62, an increase of 6.2% from CNY 38,172,487.38 in the previous year[145]. Cash Flow and Investments - The net cash flow from operating activities was negative at CNY -10,623,083.28, a decline of 139.30% compared to CNY 27,033,792.20 in the previous year[22]. - The net cash flow from investing activities showed a drastic decline of 988.65%, with a net outflow of ¥114,462,860.07 compared to ¥-10,514,200.43 in the previous year[51]. - The net cash flow from financing activities improved by 182.65%, resulting in a net inflow of ¥30,731,499.70 compared to a net outflow of ¥-37,183,919.58 in the previous year[51]. - The cash flow from investment activities showed a net outflow of -114,462,860.07 CNY, compared to -10,514,200.43 CNY in the previous period, indicating increased investment expenditures[152]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,198,315,923.43, reflecting a 5.76% increase from CNY 1,133,020,430.56 at the end of the previous year[22]. - The total liabilities increased to CNY 386,420,727.69 as of June 30, 2021, compared to CNY 295,435,463.39 at the end of 2020, reflecting a growth of 30.7%[141]. - The company's current assets decreased to RMB 837,566,285.48 from RMB 856,368,986.77, indicating a decline of about 2.9%[135]. - The inventory level rose to CNY 300,014,335.88, up 24.0% from CNY 241,770,569.99 at the end of 2020[139]. Research and Development - Research and development investment rose by 15.87% to ¥9,104,128.03 from ¥7,857,180.30, reflecting the company's commitment to innovation[51]. - The company is developing new applications for ozone generators in various sectors, including high-concentration ozone generators for semiconductor integrated circuits and medical treatment devices[30]. - The company has developed a new high-concentration ozone water system for public disinfection applications, which is expected to have significant market potential in urban sanitation[44]. - The company has completed the design of a series of air-cooled chillers with cooling capacities around 35Kw, currently in the prototype production stage[45]. Market Position and Competition - The company is recognized as a leading enterprise in the domestic ozone industry, participating in the formulation of multiple industry standards[36]. - The demand for ozone generators is expected to continue growing due to increasing environmental protection standards and policies[35]. - The company faces risks related to market competition, particularly in maintaining innovation and comprehensive competitiveness against international peers[72]. - The ongoing COVID-19 pandemic continues to affect the company's annual operating performance and financial status, with established emergency plans and communication mechanisms to mitigate impacts[76]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The controlling shareholder, Mr. Ding Xiangpeng, holds 29,369,600 shares, accounting for 34.37% of the total share capital, which may pose risks to minority shareholders due to concentrated voting power[75]. - The total number of shares outstanding is 85,440,000, with 39.09% being restricted shares and 60.91% being unrestricted shares[116]. Compliance and Governance - The company emphasizes investor protection and has implemented mechanisms to ensure fair information disclosure to all investors[87]. - There are no significant environmental penalties or issues reported during the period, and the company adheres to strict environmental protection measures[86]. - The half-year financial report has not been audited, indicating that the financial results are still subject to review[94].