证券代码：300801 证券简称：泰和科技 山东泰和科技股份有限公司 2022 年 10 月 28 日投资者关系活动记录表 编号：2022-012 | --- | --- | |-----------------|----------------------------------------------------------------------| | | | | 投资者关 | 特定对象调研 分析师会议 | | 系活动类 | 媒体采访 业绩说明会 | | 别 | 新闻发布会 路演活动 | | | 现场参观 | | | 其他（腾讯视频会议） | | 参与单位 | | | | 东方财富：李治 | | 名称及人 员姓名 | 深圳橡谷资产管理有限公司：周健华 | | | | | 时间 | 2022 年 10 月 28 日 14:00-15:00 | | 地点 | 山东省枣庄市市中区十里泉东路 1 号 泰和科技 会议室 | | 上市公司 | 董事长、总工程师：程终发先生 | | 接待人员 | 董事、总经理：姚娅女士 | | 姓名 | 董事会秘书、财务总监：张静女士 | | 投资者关 | 本次调研不涉及应披露的重大 ...

山东泰和科技股份有限公司 2022 年第三季度报告 证券代码：300801 证券简称：泰和科技 公告编号：2022-091 山东泰和科技股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误 导性陈述或重大遗漏。 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）声明：保证季度 报告中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □是 否 一、主要财务数据 （一） 主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 是 否 | | 本报告期 | 本报告期比上年同 | 年初至报告期末 | 年初至报告期末比 | | --- | --- | --- | --- | --- | | | | 期增减 | | 上年同期增减 | | 营业收入（元） | 678,353,159.44 | 29.28% | 2,091,009,906.69 | 51.21% | | ...

Financial Performance - The company's operating revenue for the first half of 2022 reached ¥1,412,656,747.25, representing a 64.61% increase compared to ¥858,190,098.76 in the same period last year[18]. - Net profit attributable to shareholders was ¥241,085,309.89, a significant increase of 239.65% from ¥70,980,321.18 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥238,634,237.97, up 283.80% from ¥62,177,492.79 in the same period last year[18]. - The net cash flow from operating activities was ¥280,660,509.37, showing a remarkable increase of 520.41% compared to ¥45,237,887.76 in the previous year[18]. - Basic earnings per share increased to ¥1.1151, up 239.35% from ¥0.3286 in the same period last year[18]. - Total assets at the end of the reporting period were ¥2,966,542,470.25, reflecting a 16.05% increase from ¥2,556,205,246.87 at the end of the previous year[18]. - Net assets attributable to shareholders increased to ¥2,293,597,096.63, an 8.40% rise from ¥2,115,908,685.55 at the end of the previous year[18]. - The company's operating revenue reached 1,412.66 million yuan, up 64.61% year-on-year, with operating profit and total profit increasing by 251.61% and 250.46% respectively[41]. - The company's net profit margin was impacted by a significant increase in income tax expenses, which rose by 316.41% to ¥49,347,939.88 due to profit growth[59]. Investment and Expansion - The company is actively expanding into the new energy sector, with projects including a 10,000-ton lithium iron phosphate project and a 20,000-ton VC project currently in the installation phase[42]. - The company raised 843.72 million yuan through its IPO, with funds allocated to projects that are now reaching operational status, including a 280,000-ton water treatment agent project[47]. - The company invested CNY 30,000,000 in Shandong Tailida Electronics Co., Ltd., acquiring a 100% stake, with the investment funded by its own capital[73]. - The company reported a cumulative investment of CNY 32,489,500 in the high-end lithium iron phosphate cathode material project, with a progress rate of 27.45%[78]. - The cumulative investment in the VC (vinyl carbonate) project reached CNY 31,903,400, with a progress rate of 15.60%[78]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[68]. - The company has achieved a fundraising surplus of RMB 28,103,780, which includes cash management income and interest[86]. Research and Development - The company has established multiple high-level innovation platforms, including a national enterprise technology center and a post-doctoral research station[34]. - The company focuses on R&D investment, enhancing its technical strength and ensuring sustainable development in the fine chemical industry[33]. - The company has a strong focus on technology innovation, with a well-equipped R&D team and advanced analytical instruments[34]. - Research and development expenses increased by 7.93% to ¥41,777,196.40, indicating continued investment in innovation[59]. - The company has developed 24 results that meet international advanced standards, with 10 of these filling domestic gaps, and holds 84 valid invention patents and 71 utility model patents[52]. Environmental and Safety Compliance - The company has implemented a comprehensive air pollution control system across multiple production facilities[124]. - The company has committed to continuous improvement in environmental protection measures and compliance with regulations[126]. - The company emphasizes safety and environmental compliance, continuously optimizing its management systems to adapt to legal and regulatory requirements[56]. - The company has obtained environmental impact approval for a 20,000-ton vinyl carbonate (VC) project on August 5, 2022[130]. - The company has received environmental impact assessment approvals for a project with an annual production capacity of 300,000 tons of water treatment agents[126]. - The company has established a robust environmental management system to monitor and control emissions effectively[125]. - The company has implemented energy-saving measures such as process improvements and the installation of photovoltaic power generation systems to reduce carbon emissions[132]. Corporate Governance and Management - The company plans not to distribute cash dividends or issue bonus shares[3]. - The company appointed Liu Quanhua and Zhang Jing as vice general managers on March 7, 2022[110]. - The company appointed Ren Zhenzhen and Ding Zhibo as vice general managers on July 25, 2022[110]. - The company did not report any objections during the public announcement period for the stock incentive plan[115]. - The company held a board meeting on March 17, 2021, to approve the stock incentive plan[113]. - The company’s stock incentive plan was revised and approved on March 26, 2021[114]. - The company confirmed the vesting conditions for the first vesting period of the restricted stock units on May 30, 2022[120]. Market Position and Competitive Advantage - The company exported 58.03% of its water treatment agent revenue, establishing itself as a significant global player in the industry[40]. - The company’s continuous business expansion and product application diversification have enhanced its industry position and customer recognition[33]. - The company has been recognized as a national-level manufacturing champion and has received multiple industry accolades, reinforcing its competitive position in the market[48]. - The company has been recognized as a leading enterprise in the new materials and new energy sector in Shandong Province, reflecting its strong market position[49]. - The company emphasizes strategic cooperation with quality suppliers to mitigate the impact of raw material price fluctuations[31]. Shareholder Information - The company reported a total of 15,522 common shareholders at the end of the reporting period[190]. - The largest shareholder, Cheng Zhongfa, holds 47.36% of the shares, amounting to 102,872,700 shares[190]. - The second-largest shareholder, a domestic non-state-owned legal entity, holds 6.71% of the shares, totaling 14,580,000 shares[190]. - The total number of shares held by the top 10 shareholders includes significant stakes from individuals such as Cheng Zhongfa and Wang Jiageng[191]. - The company’s management team, including the general manager, increased their holdings by a total of 1,200,000 shares during the reporting period[194]. Risks and Challenges - The company is facing risks from raw material price fluctuations, which could adversely affect profitability if prices rise and adjustments are not made[1]. - The company acknowledges the risk of project delays due to uncontrollable factors affecting ongoing and planned projects[3]. - The company is aware of the potential impact of geopolitical risks, such as the Russia-Ukraine conflict, on overseas market demand[2]. - The company has identified risks related to exchange rate fluctuations and has established measures to monitor and adjust strategies accordingly[94].

Financial Performance - The company's operating revenue for Q1 2022 was ¥723,638,828.31, representing a 75.55% increase compared to ¥412,212,849.03 in the same period last year[3] - Net profit attributable to shareholders for Q1 2022 was ¥124,797,684.98, a significant increase of 234.24% from ¥37,338,244.06 in the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses rose by 284.17% to ¥119,883,938.89 from ¥31,206,119.90 year-on-year[3] - Basic and diluted earnings per share increased by 234.18% to ¥0.5778 from ¥0.1729 in the previous year[3] - The total operating revenue for Q1 2022 was CNY 723,638,828.31, a significant increase from CNY 412,212,849.03 in the same period last year, representing a growth of approximately 75.5%[22] - The net profit for Q1 2022 reached CNY 124,701,602.33, up from CNY 37,338,244.06 in Q1 2021, indicating a growth of approximately 234.5%[23] - The total comprehensive income of CNY 121,662,520.60 for Q1 2022, compared to CNY 37,373,745.99 in Q1 2021, representing a growth of approximately 225.5%[24] Cash Flow - The net cash flow from operating activities surged by 4,270.04% to ¥65,492,159.49, compared to ¥1,498,661.11 in the same quarter last year[3] - Cash inflow from operating activities totaled ¥569,646,533.75, compared to ¥323,396,562.53 in the previous period, indicating a year-over-year growth of approximately 76.5%[27] - The total cash outflow from operating activities was ¥504,154,374.26, up from ¥321,897,901.42, resulting in a net cash flow from operations of ¥65,492,159.49[27] - The company’s cash flow from tax refunds was ¥69,042,786.33, significantly higher than ¥26,992,608.59 in the previous period, showing improved tax recovery efforts[25] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,691,602,338.12, reflecting a 5.30% increase from ¥2,556,205,246.87 at the end of the previous year[3] - The total liabilities for Q1 2022 were CNY 449,738,705.16, slightly up from CNY 440,374,236.32 in Q1 2021, showing a growth of approximately 2.1%[21] - The total equity attributable to shareholders of the parent company was CNY 2,242,037,390.61, an increase from CNY 2,115,908,685.55 in the previous year, representing a growth of about 6.0%[21] Investments and Projects - The company plans to invest CNY 20.45 million in a new project to produce 20,000 tons of VC (Vinyl Carbonate Ester) in two phases[14] - The company has applied for a credit line of up to CNY 200 million from a bank to support its daily operations and business development[13] - The company established a wholly-owned subsidiary with an investment of CNY 30 million to expand into the new energy sector[17] - The company plans to liquidate its wholly-owned subsidiary TAICO INC. as part of its restructuring efforts[13] Shareholder Information - The top shareholder, Cheng Zhongfa, holds 47.63% of the shares, totaling 102,872,700 shares[8] - A total of 16,214,800 shares, representing 7.5069% of the company's total shares, are planned to be reduced by a major shareholder[16] Management and Operational Changes - The company has undergone management changes, including the resignation of key executives, which may impact future strategic directions[15] Research and Development - Research and development expenses for Q1 2022 were CNY 22,885,634.08, up from CNY 16,662,366.99 in Q1 2021, indicating an increase of about 37.2%[23]

Financial Performance - The company reported a profit distribution plan of 4.00 RMB per 10 shares (including tax) for a total of 216,000,000 shares[5]. - The company's operating revenue for 2021 was ¥2,209,112,905.06, representing a 44.49% increase compared to ¥1,528,889,650.71 in 2020[19]. - The net profit attributable to shareholders for 2021 was ¥278,478,638.37, a 42.67% increase from ¥195,192,454.89 in 2020[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥265,741,711.52, up 48.29% from ¥179,209,518.99 in 2020[19]. - The total revenue for 2021 was CNY 2,694,613,590, representing a 12.46% decrease compared to the previous year[75]. - The gross profit margin for 2021 was reported at 30%, showing an improvement from the previous year's margin of 25%[104]. - The company reported a total revenue of 1.5 billion RMB for the year 2021, representing a year-on-year growth of 15%[109]. - The company reported a total revenue of 1.2 billion RMB for the fiscal year 2021, representing a year-over-year increase of 15%[177]. - The company reported a total revenue of 458.3 million yuan for the year 2021, reflecting a significant increase compared to the previous year[104]. Risk Management - The company emphasizes the importance of risk awareness regarding future development strategies and operational plans[5]. - The company has outlined potential risk factors and countermeasures in the management discussion and analysis section of the report[5]. - The company faces risks related to raw material price fluctuations, which could significantly impact its gross profit margins[140]. - The company is committed to strategic procurement and strengthening partnerships with quality suppliers to mitigate raw material price risks[141]. - The company is closely monitoring the international trade environment and potential trade barriers that may arise due to rising protectionism, which could adversely affect export operations[143]. - The company acknowledges the risk of product substitution due to technological advancements in water treatment methods and is focusing on exploring new fields to prevent market shrinkage[148]. - The ongoing COVID-19 pandemic has not significantly impacted the company's operations, but uncertainties remain regarding its future effects on the global economy and supply chains[149]. - The company is aware of geopolitical risks, such as the Russia-Ukraine conflict, which may lead to fluctuations in overseas market demand[150]. Research and Development - The company has established multiple high-level innovation platforms, including a national-level enterprise technology center, to bolster its R&D capabilities[44]. - The company has developed several patented technologies to enhance production efficiency and reduce energy consumption[50]. - The company is focusing on continuous production processes to improve product quality and operational safety[50]. - The company has successfully industrialized the production of new products such as PBTCA and nitrogen-containing organic phosphonates, improving product quality and achieving essential safety[86]. - The company aims to expand its product range and application fields through the development of new products, including bio-based PESA and high-efficiency anti-scaling agents[87]. - The company has achieved a production yield greater than 98% for the urea-based dimethyl carbonate synthesis process, which is expected to help enter a new market[89]. - The company is exploring the comprehensive utilization of by-product sodium chloride, with small-scale tests completed and potential for low-cost industrialization[90]. - The company has a strong focus on R&D, with ongoing projects aimed at enhancing water treatment technologies[164]. Production Capacity and Operations - The company has a production capacity of 332,000 tons/year as of December 31, 2021, with a diverse product line including scale inhibitors, corrosion inhibitors, and biocides[45]. - The company has invested in advanced analytical and testing instruments, including a 400 MHz superconducting nuclear magnetic resonance spectrometer, to enhance product development and quality control[45]. - The company has established a comprehensive quality management system certified to GB/T 19001-2016/ISO 9001:2015 standards, ensuring high product quality throughout the production process[62]. - The company has initiated a strategic investment in the water treatment agent industry chain expansion project, with a total investment of 4,127.00 million yuan planned[116]. - The company is expanding its production capacity with a new project for high-end cathode materials, targeting an annual output of 10,000 tons of lithium iron phosphate[118]. Market Expansion and Strategy - The company is actively expanding into new application areas for its products, enhancing its market position and customer recognition[44]. - The company has established a joint venture in September 2021 with Shandong Guosheng Battery Technology Co., Ltd. to enter the new energy sector, focusing on battery PACK business[65]. - The company plans to expand its market presence by entering two new provinces in 2022, aiming for a 15% increase in regional sales[104]. - The company is exploring potential acquisitions to strengthen its position in the renewable energy sector, with a focus on innovative technologies[104]. - The company is committed to sustainability, with plans to reduce operational carbon emissions by 25% over the next five years[104]. - The company is focused on expanding its market presence through strategic partnerships and potential acquisitions[184]. Corporate Governance - The company ensures equal treatment of all shareholders, particularly minority shareholders, in decision-making processes[156]. - The governance structure of the company complies with relevant laws and regulations, ensuring no significant discrepancies exist[157]. - The company has maintained a stable governance structure, with no significant changes in the board of directors recently[164]. - The company has appointed new independent directors to strengthen its governance structure and enhance transparency[177]. - The company is committed to maintaining shareholder interests, particularly for minority shareholders, through diligent governance practices[184]. Employee Management - The total number of employees at the end of the reporting period was 653, with 589 from the parent company and 64 from major subsidiaries[190]. - The company has a diverse professional composition, with 378 production personnel, 106 technical personnel, and 53 sales personnel[190]. - The company has a training program aimed at enhancing employee skills and safety awareness, including both internal and external training sessions[193]. - The company has implemented a compensation mechanism linking salaries to company and individual performance to attract and retain talent[156]. Environmental and Safety Compliance - The company emphasizes the importance of safety in production, given the hazardous nature of the chemicals used, and has implemented measures to reduce the risk of accidents[144]. - The company has received environmental approval for the water treatment agent industry chain expansion project on June 9, 2021[51]. - The company is committed to achieving green production and optimizing resource utilization through various R&D projects[86]. Financial Management - The company raised a total of RMB 912.6 million through a public offering in 2019, with a net amount of RMB 843.72 million after deducting fees[122]. - The company has a total of RMB 44.17 million in unutilized raised funds, with no funds idled for over two years[122]. - The company has implemented a stock incentive plan, with the first grant date set for May 17, 2021, at a price of RMB 12.44 per share for 4.2 million shares[200].

Group 1: Event Details - The company will participate in the "2021 Annual Online Collective Reception Day for Investors" on November 16, 2021, from 14:00 to 16:00 [2] - The event is organized by the Shandong Securities Regulatory Bureau and the Shandong Listed Companies Association [2] - Investors can join the event via the "Panorama • Roadshow World" website [2] Group 2: Company Representatives - Ms. Cheng Xia, the Deputy General Manager and Secretary of the Board, will communicate with investors during the event [2] - Ms. Cheng Cheng, the Securities Affairs Representative, will also participate in the online communication [2] Group 3: Commitment to Transparency - The company and its board members guarantee that the information disclosed is true, accurate, and complete, with no false records or misleading statements [2]

I. Key Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q3 2021, the company achieved significant revenue growth, but net profit attributable to shareholders of the listed company declined year-over-year, while total assets and owners' equity showed slight increases compared to the end of the previous year Key Financial Indicators for Q3 2021 | Indicator | Current Period | Year-to-Date | Year-to-Date YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 524.70 million | 1.38 billion | 21.84% | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | 47.50 million | 118.48 million | -32.06% | | Net Cash Flow from Operating Activities (RMB) | - | 81.87 million | -53.21% | | Basic Earnings Per Share (RMB/share) | 0.22 | 0.55 | -32.10% | | Total Assets (RMB) | 2.23 billion | - | 5.20% (vs. end of prior year) | | Total Equity Attributable to Shareholders of the Listed Company (RMB) | 1.94 billion | - | 3.57% (vs. end of prior year) | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses amounted to **2.381 million RMB**, with a year-to-date cumulative total of **11.184 million RMB**, primarily from government grants and fair value changes of financial assets held for trading Details of Non-recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | | :--- | :--- | | Gains and Losses on Disposal of Non-current Assets | 0.28 million | | Government Grants Recognized in Current Profit/Loss | 5.99 million | | Gains and Losses from Changes in Fair Value of Financial Assets/Liabilities Held for Trading, etc | 7.37 million | | Other Non-operating Income and Expenses | -0.48 million | | Less: Income Tax Impact | 1.97 million | | **Total** | **11.18 million** | [Analysis of Changes in Key Financial Indicators and Their Causes](index=2&type=section&id=Analysis%20of%20Changes%20in%20Key%20Financial%20Indicators%20and%20Their%20Causes) Changes in the company's financial indicators are primarily influenced by external market conditions, with revenue growth driven by product price increases, but net profit declining due to raw material and shipping cost increases exceeding selling price increases, while increased raw material procurement expenditures led to reduced operating cash flow - Operating revenue for the current period increased by **46.91%** year-over-year, primarily due to rising raw material prices leading to higher product selling prices and a slight increase in sales volume[8](index=8&type=chunk) - Year-to-date net profit decreased by **32.06%** year-over-year, mainly because significant increases in raw material prices and shipping costs were not fully offset by product selling price increases[8](index=8&type=chunk) - Year-to-date net cash flow from operating activities decreased by **53.21%** year-over-year, primarily due to increased cash paid for raw material purchases driven by higher unit prices and increased inventory stocking[8](index=8&type=chunk) II. Shareholder Information [Shareholding Information](index=2&type=section&id=Shareholding%20Information) As of the end of the reporting period, the company had **15,150** ordinary shareholders and no preferred shareholders, with actual controller Cheng Zhongfa holding **47.63%**, indicating a relatively concentrated equity structure, and several related parties among the top ten shareholders - As of the end of the reporting period, the company had **15,150** ordinary shareholders[10](index=10&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares | | :--- | :--- | :--- | | Cheng Zhongfa | 47.63% | 102.87 million | | Shanghai Fosun Chuanghong Equity Investment Fund Partnership (Limited Partnership) | 11.70% | 25.27 million | | Zaozhuang Hesheng Investment Management Center (Limited Partnership) | 6.75% | 14.58 million | | Wang Jiageng | 1.69% | 3.65 million | | Cheng Xia | 1.26% | 2.72 million | - Shareholders Li Jingjuan, Cheng Xia, and Cheng Cheng are close relatives of the actual controller Cheng Zhongfa, and Zaozhuang Hesheng Investment Management Center (Limited Partnership) is an enterprise controlled by Cheng Zhongfa[11](index=11&type=chunk) [Changes in Restricted Shares](index=3&type=section&id=Changes%20in%20Restricted%20Shares) During the reporting period, the company's restricted shares decreased by **1.215 million** due to the unlocking of senior management restricted shares, resulting in a total of **132.52 million** restricted shares at period-end, primarily from pre-IPO and senior management restricted shares - During the current reporting period, shareholder Wang Jiageng unlocked **1.215 million** shares due to the expiration of senior management restricted shares[13](index=13&type=chunk) Overview of Restricted Share Changes | Item | Number of Shares | | :--- | :--- | | Restricted Shares at Beginning of Period | 133.73 million | | Shares Unlocked in Current Period | 1.215 million | | Shares Added in Current Period | 0 | | Restricted Shares at End of Period | 132.52 million | III. Other Significant Matters [Other Significant Matters](index=4&type=section&id=III.%E3%80%81Other%20Significant%20Matters) During the reporting period, the company disclosed several significant matters, including the unlocking of senior management shares, the controlling shareholder's share increase plan, a change in CFO, and a subsidiary's external investment to establish a joint venture, reflecting the company's dynamics in capital operations, corporate governance, and strategic expansion - Controlling shareholder and Chairman Cheng Zhongfa plans to increase his shareholding in the company by no less than **10 million RMB** and no more than **20 million RMB** within six months starting from July 12, 2021[15](index=15&type=chunk) - Ms Yao Ya, the company's former CFO, resigned but continues to serve as a director and general manager; the board of directors appointed Ms Zhang Jing as the new CFO[16](index=16&type=chunk) - Wholly-owned subsidiary Fenghuitaihe and Shandong Guosheng jointly established Shandong Fenghui Guosheng Battery Co Ltd, with Fenghuitaihe contributing **10 million RMB** for a **62.5%** stake, aiming to improve investment efficiency[16](index=16&type=chunk)[17](index=17&type=chunk) IV. Quarterly Financial Statements [Financial Statements](index=5&type=section&id=Financial%20Statements) This section provides the unaudited consolidated balance sheet, consolidated income statement, and consolidated cash flow statement, comprehensively reflecting the company's financial position, operating results, and cash flows as of September 30, 2021 [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, the company's total assets were **2.235 billion RMB**, a **5.20%** increase from the beginning of the year, with a high proportion of current assets and total liabilities of **299 million RMB**, indicating a low debt-to-asset ratio and sound financial structure, with key asset changes including a decrease in financial assets held for trading and increases in inventories and accounts receivable Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 591.36 million | 547.37 million | | Financial Assets Held for Trading | 340.15 million | 488.00 million | | Accounts Receivable | 190.64 million | 142.85 million | | Inventories | 155.35 million | 95.50 million | | Fixed Assets | 370.79 million | 350.80 million | | **Total Assets** | **2.23 billion** | **2.12 billion** | | **Liabilities** | | | | Notes Payable | 129.39 million | 131.55 million | | Contract Liabilities | 42.24 million | 10.28 million | | **Total Liabilities** | **299.37 million** | **255.58 million** | | **Total Owners' Equity** | **1.94 billion** | **1.87 billion** | [Consolidated Income Statement (Year-to-Date)](index=7&type=section&id=Consolidated%20Income%20Statement%20%28Year-to-Date%29) In the first three quarters of 2021, the company achieved total operating revenue of **1.383 billion RMB**, a **21.84%** year-over-year increase; however, operating costs (up **34.64%** YoY) grew significantly faster than revenue, leading to a **33.54%** year-over-year decline in operating profit and a net profit attributable to parent company shareholders of **118 million RMB**, down **32.06%** year-over-year Key Items from Consolidated Income Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 1.38 billion | 1.14 billion | | Total Operating Costs | 1.25 billion | 943.06 million | | Including: Operating Costs | 1.15 billion | 851.88 million | | Research and Development Expenses | 56.36 million | 46.82 million | | Operating Profit | 138.82 million | 208.88 million | | Total Profit | 138.34 million | 208.41 million | | Net Profit | 118.48 million | 174.40 million | | Basic Earnings Per Share | 0.55 RMB/share | 0.81 RMB/share | [Consolidated Cash Flow Statement (Year-to-Date)](index=9&type=section&id=Consolidated%20Cash%20Flow%20Statement%20%28Year-to-Date%29) In the first three quarters of 2021, net cash flow from operating activities was **81.87 million RMB**, a significant **53.21%** year-over-year decrease, primarily due to increased cash paid for goods purchased; investing activities shifted from negative to positive cash flow, while financing activities mainly involved dividend distribution, with cash and cash equivalents totaling **531 million RMB** at period-end Key Items from Consolidated Cash Flow Statement (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 81.87 million | 174.97 million | | Net Cash Flow from Investing Activities | 17.19 million | -423.14 million | | Net Cash Flow from Financing Activities | -54.01 million | -60.11 million | | Net Increase in Cash and Cash Equivalents | 43.16 million | -309.98 million | | Cash and Cash Equivalents at Period End | 530.50 million | 563.40 million | [Explanation of Financial Statement Adjustments](index=10&type=section&id=Explanation%20of%20Financial%20Statement%20Adjustments) The company adopted new lease standards for the first time starting in 2021, but this accounting policy change had no impact on the opening balance sheet items, thus no adjustments to the opening financial statements were required - The company's adoption of new lease standards did not affect opening balance sheet items, thus no adjustments to opening balance sheet accounts were required[29](index=29&type=chunk)[30](index=30&type=chunk) [Audit Report](index=11&type=section&id=Audit%20Report) This quarterly report is unaudited - The company's Q3 2021 report is unaudited[31](index=31&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was ¥858,190,098.76, representing a 10.32% increase compared to ¥777,878,858.36 in the same period last year[23]. - The net profit attributable to shareholders of the listed company decreased by 43.56% to ¥70,980,321.18 from ¥125,771,790.08 in the previous year[23]. - The net cash flow from operating activities fell by 67.93% to ¥45,237,887.76, down from ¥141,073,218.42 in the same period last year[23]. - Basic earnings per share decreased by 43.57% to ¥0.3286 from ¥0.5823 in the previous year[23]. - The total assets at the end of the reporting period were ¥2,112,296,908.69, a decrease of 0.56% from ¥2,124,221,466.53 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 0.91% to ¥1,885,573,272.41 from ¥1,868,637,033.89 at the end of the previous year[23]. - The weighted average return on net assets was 3.76%, down from 7.12% in the previous year, a decrease of 3.36%[23]. - Operating costs increased by 22.18% to ¥711,102,201.44 from ¥581,997,719.19, leading to a decrease in gross margin[61]. - The net cash flow from operating activities decreased by 67.93% to ¥45,237,887.76, primarily due to rising raw material costs and increased accounts receivable[62]. - The net increase in cash and cash equivalents was ¥299,003,730.95, a significant recovery from a decrease of ¥305,174,962.22 in the previous year, mainly due to the redemption of financial products[62]. Market and Sales - The company achieved a sales volume of 122,404.52 tons, an increase of 3.98% compared to the same period last year[46]. - The company exported 51.17% of its total revenue, highlighting its significant presence in the global market[45]. - The average product price was 6,986.78 yuan/ton, reflecting a 6.03% increase compared to the previous year[46]. - The company's foreign sales revenue was ¥43,910.30 million, accounting for 51.17% of total revenue, with a foreign exchange loss of ¥1.87 million, representing 2.26% of total profit[102]. Production and Capacity - The company has a production capacity of 280,000 tons/year, ensuring a comprehensive product line to meet diverse customer needs[40]. - The company has established a production capacity of 280,000 tons/year for water treatment agents, positioning itself as one of the few enterprises capable of large-scale production in the industry[55]. - The company’s wastewater treatment plant has a processing capacity of 200 m³/d, ensuring all wastewater is treated uniformly[126]. - The company has a production capacity of 300,000 tons of water treatment agents, with environmental impact assessments completed for various projects since 2013[127]. Research and Development - The company has invested in R&D, resulting in 21 technological achievements reaching international advanced levels and 12 at the domestic leading level, with 52 authorized invention patents and 48 utility model patents[50]. - Research and development investment rose by 20.35% to ¥38,709,046.65 from ¥32,163,764.82, indicating a commitment to innovation[61]. - The company emphasizes technological innovation and has established multiple high-level research platforms to enhance its competitive edge[40]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding its future plans and forecasts[6]. - The company is actively monitoring the impact of the COVID-19 pandemic on its operations and the global economy[111]. - The company faces risks from international trade protectionism, which could adversely affect export business and market expansion[104]. - The company is implementing measures to mitigate risks from raw material price fluctuations and is enhancing strategic cooperation with suppliers[101]. - The company emphasizes risk management in foreign exchange derivative trading, focusing on profit locking and avoiding speculative trading[97]. Environmental and Safety Management - The company has focused on safety and environmental management, establishing systems to control operational risks and enhance safety culture[58]. - The company’s environmental protection measures include advanced gas treatment systems to ensure compliance with emission standards[125]. - The company has achieved environmental management system certification in August 2020[128]. - The company has received no administrative penalties for environmental issues during the reporting period[128]. - The company has implemented multiple stages of gas treatment processes to ensure emissions meet environmental standards[125]. Corporate Governance and Shareholder Matters - The company plans to not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[118]. - The company held its annual general meeting with a participation rate of 60.64% on April 7, 2021[115]. - The first extraordinary general meeting of 2021 had a participation rate of 72.81% on June 2, 2021[115]. - The company appointed a new general manager, Yao Ya, on January 30, 2021, following the resignation of the previous general manager, Cheng Zhongfa[116]. - The company has implemented a stock incentive plan approved on March 17, 2021, which includes a restricted stock incentive plan[119]. Financial Management - The total investment during the reporting period was ¥1,250,903,338.00, reflecting a 32.31% increase from ¥945,433,760.26 in the same period last year[74]. - The company aims to enhance its asset management and investment strategies to improve overall financial performance[81]. - The total amount of raised funds is RMB 843,724,400, with RMB 460,646,761.96 remaining in the account as of June 30, 2021[86]. - The company has committed to projects with a total investment of RMB 84,372.44 million, of which RMB 4,325.85 million has been invested by the end of the reporting period[89]. - The company has confirmed that all disclosed information regarding the use of raised funds is timely, truthful, accurate, and complete[90].

Financial Performance - The company's revenue for Q1 2021 was ¥412,212,849.03, representing a 19.58% increase compared to ¥344,713,088.10 in the same period last year[9] - Net profit attributable to shareholders decreased by 22.80% to ¥37,338,244.06 from ¥48,367,235.52 year-on-year[9] - The net profit after deducting non-recurring gains and losses fell by 28.38% to ¥31,206,119.90 compared to ¥43,571,330.08 in the previous year[9] - Basic and diluted earnings per share both decreased by 22.78% to ¥0.1729 from ¥0.2239[9] - Total operating revenue for Q1 2021 was CNY 412,212,849.03, an increase of 19.6% compared to CNY 344,713,088.10 in Q1 2020[62] - Net profit for Q1 2021 was CNY 37,338,244.06, a decrease of 22.8% from CNY 48,367,235.52 in Q1 2020[64] - Earnings per share for Q1 2021 was CNY 0.1729, down from CNY 0.2239 in Q1 2020[64] Cash Flow - The net cash flow from operating activities significantly declined by 85.63%, amounting to ¥1,498,661.11, down from ¥10,432,725.70[9] - Net cash flow from operating activities decreased to ¥1,498,661.11 from ¥10,432,725.70, a decline of approximately 85.6%[71] - Cash inflow from investment activities surged to ¥733,876,158.91 from ¥162,698,876.07, marking an increase of approximately 351.5%[71] - Net cash flow from investment activities improved to ¥194,027,333.60 from a negative ¥354,310,186.76, indicating a significant turnaround[71] - Total cash and cash equivalents at the end of the period rose to ¥683,492,233.63 from ¥531,493,715.77, an increase of approximately 28.5%[72] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,148,716,624.30, a 1.15% increase from ¥2,124,221,466.53 at the end of the previous year[9] - The company's total equity increased to CNY 1,906,010,779.88 from CNY 1,868,637,033.89, representing a growth of approximately 2%[57] - Total current assets amounted to CNY 1,348,962,959.10, a slight increase from CNY 1,341,309,977.40 as of December 31, 2020, reflecting a growth of approximately 0.5%[54] - Total non-current assets reached CNY 799,753,665.20, up from CNY 782,911,489.13, marking an increase of about 2.3%[55] - Total liabilities as of the end of Q1 2021 were CNY 153,306,274.70, compared to CNY 151,403,105.37 at the end of Q1 2020[63] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,262[13] - The largest shareholder, Cheng Zhongfa, holds 47.37% of the shares, totaling 102,319,200 shares[13] Research and Development - Research and development expenses rose by 49.74% to ¥16,662,366.99, reflecting increased investment in innovation[19] - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[56] Market and Operational Risks - The company is actively managing raw material price volatility risks through strategic supplier partnerships and procurement strategies[26][27] - The company faces risks from international trade protectionism, which could adversely affect its export business and international market expansion[29] - The company is closely monitoring the impact of the COVID-19 pandemic on its operations, with no significant effects reported so far[36] Strategic Initiatives - The company is expanding its production capacity with ongoing and planned projects, which may lead to increased revenue if market conditions are favorable[31] - The company is planning to develop new products and explore new markets to reduce reliance on international trade[29] - The company has approved a stock incentive plan to motivate and retain key personnel, which may enhance overall performance[41] - The company is enhancing its sales team and project management capabilities to improve market expansion and project execution[33] Fundraising and Investments - The total amount of raised funds is CNY 843.72 million, with CNY 23.70 million invested in the current quarter[45] - Cumulative investment of raised funds reached CNY 388.98 million, accounting for 46.06% of the total raised funds[45] - The annual production capacity project for 280,000 tons of water treatment agents has a total investment of CNY 391.83 million, with CNY 8.09 million invested to date, representing 20.66% of the planned investment[45] - The R&D center construction project has a total investment of CNY 315.49 million, with CNY 5.64 million invested to date, representing 17.84% of the planned investment[45] - As of March 31, 2021, the unused raised funds amount to CNY 242 million, which is allocated for purchasing liquid and high-security financial products[46] Compliance and Governance - The company has not experienced any significant changes in project feasibility or failed to meet planned progress or expected returns for its fundraising projects[46] - There are no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[43] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[48] - The company has not reported any violations regarding external guarantees during the reporting period[47] - The company has disclosed all relevant information regarding the use of raised funds in a timely, truthful, accurate, and complete manner, with no issues or violations identified[46]

Financial Performance - The company's operating revenue for 2020 was CNY 1,528,889,650.71, representing a 22.78% increase compared to CNY 1,245,221,017.78 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 195,192,454.89, which is a 13.74% increase from CNY 171,614,747.95 in 2019[16]. - The net cash flow from operating activities for 2020 was CNY 203,219,015.07, reflecting a 15.47% increase from CNY 175,999,441.64 in 2019[16]. - The total assets at the end of 2020 amounted to CNY 2,124,221,466.53, a 9.24% increase from CNY 1,944,534,888.95 at the end of 2019[16]. - The net assets attributable to shareholders at the end of 2020 were CNY 1,868,637,033.89, which is a 7.78% increase from CNY 1,733,769,552.03 at the end of 2019[16]. - The basic earnings per share for 2020 were CNY 0.9037, down 12.32% from CNY 1.0307 in 2019[16]. - The weighted average return on equity for 2020 was 10.93%, a decrease of 8.69% from 19.62% in 2019[16]. - The company achieved a sales volume of 240,782.73 tons, an increase of 38.44% year-on-year[55]. - Revenue reached 152,888.97 million yuan, up 22.78% compared to the previous year[55]. - Net profit attributable to shareholders was 19,519.25 million yuan, reflecting a year-on-year increase of 13.74%[55]. Dividend Policy - The company plans to distribute a cash dividend of CNY 2.5 per 10 shares, based on a total of 216,000,000 shares[6]. - The cash dividend accounted for 27.67% of the net profit attributable to ordinary shareholders in the consolidated financial statements for 2020[149]. - The total distributable profit for the year was RMB 579,991,766.41, with the cash dividend representing 100% of the profit distribution[146]. - The company adheres to a clear profit distribution policy, ensuring that dividend standards and procedures are well-defined and executed to protect shareholder interests[142]. - The company has a cash dividend policy that complies with its articles of association and shareholder resolutions[143]. Research and Development - The company has made significant investments in research and development, resulting in the development of a continuous and intelligent production system for water treatment agents[46]. - The company has established a technology innovation system, resulting in 21 achievements reaching international advanced levels and 42 authorized invention patents[57]. - Research and development expenses increased by 40.26% to ¥65,424,229.69, reflecting a significant investment in new product and technology development[77]. - The company's R&D investment accounted for 4.28% of operating revenue, up from 3.75% in the previous year[80]. - The company has committed to strengthening its technological innovation and product upgrades, with a focus on enhancing R&D capabilities through the construction of a new R&D center[182]. Market Expansion and Strategy - The company is focused on expanding its production capacity with projects such as the annual production of 280,000 tons of water treatment agents[10]. - The company is exploring opportunities for mergers and acquisitions to enhance its competitive edge[97]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[155]. - The company aims to leverage its AI capabilities to improve product offerings and customer engagement[97]. - The company is actively investing in research and development to drive future growth[97]. Operational Efficiency - The company has implemented smart production systems, achieving automation in major workshops, which enhances operational efficiency[38]. - The company has introduced modern management systems like ERP and CRM to enhance market responsiveness and customer relationship management[56]. - The company has implemented an intelligent manufacturing model for water treatment agents, achieving automation and optimization in production processes[55]. - The company aims to reduce operational costs by 5% through efficiency improvements and automation in production processes[155]. - The company has established a strong safety and environmental management system to control operational risks effectively[50]. Risk Management - The company has outlined potential future risks and strategies in its annual report, emphasizing the need for investors to be aware of market uncertainties[6]. - The company faces risks from raw material price fluctuations, exchange rate volatility, and changes in the international trade environment[128][129][130]. - The company is committed to enhancing its sales team's capabilities and project management to mitigate risks associated with new projects and market fluctuations[134][135]. - The company is facing risks related to increased depreciation from ongoing and planned construction projects, which may negatively impact operating performance in the initial phase of production[134]. Compliance and Governance - The company has committed to ensuring that its IPO documents do not contain any misleading statements or significant omissions, affirming their accuracy and completeness[167]. - The company has established measures to ensure compliance with public commitments, including accepting public supervision and disclosing any failures to fulfill commitments[166]. - The company has made commitments to protect the legitimate rights and interests of small and medium investors in the capital market[186]. - The company has appointed Xinyong Zhonghe Accounting Firm as its auditor for the 2020 fiscal year, replacing the previous auditor, Dahua Accounting Firm, to ensure audit independence[191][192]. - The company will disclose any penalties and corrective measures related to unfulfilled commitments in its periodic reports[166].