Financial Performance - The company's operating revenue for 2021 was ¥1,984,158,009.35, representing a 28.89% increase compared to ¥1,539,459,204.66 in 2020[18]. - The net profit attributable to shareholders for 2021 was ¥209,943,422.22, up 15.59% from ¥181,625,771.74 in 2020[18]. - The net profit after deducting non-recurring gains and losses was ¥173,909,550.71, a significant increase of 70.08% from ¥102,250,003.03 in 2020[18]. - The net cash flow from operating activities reached ¥371,224,838.10, marking a 92.37% increase from ¥192,974,755.50 in 2020[18]. - The total assets at the end of 2021 were ¥4,590,633,946.62, a 43.32% increase from ¥3,202,970,429.01 at the end of 2020[18]. - The net assets attributable to shareholders increased by 18.35% to ¥1,490,958,840.13 at the end of 2021 from ¥1,259,771,844.73 at the end of 2020[18]. - The company reported a basic earnings per share of ¥1.11 for 2021, up 14.43% from ¥0.97 in 2020[18]. - In 2021, the company achieved total revenue of ¥1,984,158,009.35, a year-on-year increase of 28.89%[83]. - The net profit attributable to shareholders was ¥209,943,422.22, representing a growth of 15.59% compared to the previous year[83]. - The net profit after deducting non-recurring gains and losses was ¥173,909,550.71, which increased by 70.08% year-on-year[83]. - The company's cash flow from operating activities reached ¥371,224,838.10, up 92.37% from the previous year[83]. Market Expansion and Strategy - The company has expanded its international presence with subsidiaries in the USA, Japan, and South Korea, enhancing its market reach[11]. - The company is actively pursuing market expansion strategies to increase its footprint in both domestic and international markets[11]. - The company aims to become an international leader in functional coating composite materials, emphasizing technological innovation and increasing market share in the industry[141]. - The company plans to strategically target new growth areas such as automotive electronics and large display screens, diversifying product applications[142]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a focus on complementary technologies[198]. - Market expansion efforts have led to a 10% increase in market share in the Asia-Pacific region[198]. - The company plans to enter two new international markets by Q3 2022[199]. Research and Development - The company is focused on developing new technologies, particularly in optical adhesive materials, which are crucial for touchscreen applications[12]. - The company is investing in research and development to innovate and improve its product offerings, particularly in high-performance materials[12]. - R&D investment for 2021 was ¥109,001,729.43, accounting for 5.49% of total revenue[88]. - The company has been recognized as a high-tech enterprise since 2009 and holds 616 authorized patents, including 220 invention patents, demonstrating strong R&D capabilities[73]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product performance and sustainability[198]. - The company is focusing on research and development of new materials to support its growth strategy[156]. - The company has a strong management team with extensive experience in various industries, contributing to its strategic direction[184]. Product Development and Innovation - The company is focused on the development of functional coating composite materials, which are widely used in emerging industries such as smart hardware and new energy vehicles[28]. - The company has successfully applied functional coating composite materials in various emerging industries, breaking the technical monopoly of foreign enterprises[28]. - The company has completed the development of a foldable OCA film for smartphones, enhancing its competitive edge in the domestic market[109]. - The company is working on a graphene thermal conductive material with a thermal conductivity of 1500, which will enhance its position in the thermal management materials sector[109]. - The company has completed the development of a UV-cured protective film for curved surfaces, enhancing its product offerings[110]. - The company aims to replace imported high-end protective films, enhancing its competitive position in the market[110]. Risk Management - The company faces risks including changes in the consumer electronics market, new product development failures, and raw material supply fluctuations[5]. - The company has implemented a robust risk management framework to address operational and market-related risks[5]. - The company acknowledges the risk of new product development failures, emphasizing the need for accurate market trend analysis and customer needs assessment[149]. - The company is exposed to raw material supply and price volatility risks, which can affect procurement costs and operational profitability[151]. Governance and Management - The company has established a robust governance structure in compliance with relevant laws and regulations, ensuring transparency and accountability[160]. - The board of directors consists of 4 internal directors, 2 external directors, and 3 independent directors, meeting regulatory requirements for board composition[163]. - The company has implemented a performance evaluation and incentive mechanism for senior management, ensuring transparency in the appointment process[167]. - The company emphasizes timely and accurate information disclosure, with a designated board secretary responsible for investor relations[168]. - The company has established a complete and independent supply, production, and sales system, ensuring no reliance on shareholders or related parties for product R&D, production, and sales[171]. Operational Efficiency - The company aims to improve operational efficiency through lean production practices, optimizing processes, and increasing automation to enhance product quality and competitiveness[144]. - The company plans to increase its workforce by 10% to support growth initiatives and enhance operational capabilities[198]. - The management team emphasized the importance of sustainability initiatives, planning to allocate 15% of the budget towards eco-friendly projects[199]. Customer Engagement and Market Response - The company has established stable partnerships with several well-known domestic and international end manufacturers, leveraging advanced technology and product quality[47]. - The company has a strong market response capability, enabling rapid production and R&D adjustments based on customer demands in the fast-paced consumer electronics market[76]. - The company has established a sales service network across major manufacturing regions, enhancing market responsiveness and customer service[81]. Financial Management - The company has a competitive disadvantage in terms of financial strength and brand recognition compared to diversified multinational companies[71]. - The company has pledged accounts receivable totaling 144,000,000.00 as collateral for bank loans[123]. - The company has a total of 3 supervisors, including 1 employee representative supervisor[190].

Financial Performance - Revenue for Q3 2021 reached ¥493,692,122.47, an increase of 8.56% year-over-year, while year-to-date revenue was ¥1,446,194,899.48, up 27.81% compared to the same period last year[3]. - Net profit attributable to shareholders for Q3 2021 was ¥65,098,449.28, reflecting a 16.51% increase year-over-year, with year-to-date net profit at ¥133,120,307.70, a rise of 23.83%[3]. - Total revenue for Q3 2021 reached ¥1,446,194,899.48, an increase of 28% compared to ¥1,131,484,512.93 in Q3 2020[23]. - Operating profit for Q3 2021 was ¥154,870,376.63, slightly up from ¥154,419,933.56 in Q3 2020[23]. - Net profit for Q3 2021 reached CNY 132,115,113.71, an increase of 24.2% compared to CNY 106,382,729.01 in Q3 2020[24]. - Total comprehensive income for the period was CNY 131,881,151.28, an increase from CNY 106,024,458.07 in Q3 2020[24]. Cash Flow and Investments - The net cash flow from operating activities for the year-to-date period was ¥265,258,579.80, showing a significant increase of 92.93% compared to the previous year[9]. - Operating cash flow for the period was CNY 265,258,579.80, up 93.1% from CNY 137,490,282.55 in the same period last year[26]. - The company reported a net cash outflow from investing activities of CNY 655,697,499.67, compared to CNY 537,533,905.52 in the same period last year[27]. - Cash flow from financing activities generated a net inflow of CNY 157,365,322.13, down from CNY 386,377,486.95 in the same period last year[27]. Assets and Liabilities - Total assets as of Q3 2021 amounted to ¥4,041,632,415.36, representing a 26.18% increase from the end of the previous year[4]. - Current assets totaled ¥1,579,452,874.59, an increase of 8% from ¥1,458,919,425.41 at the end of 2020[20]. - Non-current assets increased significantly to ¥2,462,179,540.77 from ¥1,744,051,003.60, marking a 41% growth[20]. - Total liabilities reached ¥2,635,388,270.79, up from ¥1,943,095,322.97, reflecting a 36% increase[21]. - Owner's equity increased to ¥1,406,244,144.57 from ¥1,259,875,106.04, a growth of 12%[21]. Shareholder Information - The company’s total number of ordinary shareholders at the end of the reporting period was 7,109[11]. - The major shareholder, Jin Chuang, holds 34.27% of the shares, amounting to 65,115,138 shares, with 30,388,000 shares pledged[12]. - The top 10 shareholders collectively hold 4.99% of the shares, with Shanghai Junyin and Tianjin Hexin being managed by the same fund manager[13]. - The company has a total of 86,475,781 restricted shares, with 784,080 shares released during the period[16]. - The company plans to release all restricted shares held by Jin Chuang and Shi Rong on November 24, 2024, totaling 75,729,058 shares[15]. Earnings and Expenses - The company’s basic earnings per share for Q3 2021 was ¥0.34, a decrease of 27.66% year-over-year[3]. - R&D expenses for Q3 2021 were ¥75,174,486.62, compared to ¥68,414,358.40 in Q3 2020, showing a 10% increase[23]. - Basic earnings per share decreased to CNY 0.70 from CNY 0.92 in the previous year, a decline of 23.9%[24]. Inventory and Borrowings - The company reported a significant increase in inventory, which rose by 41.09% to ¥307,248,260.85, attributed to stockpiling in response to rising raw material prices[8]. - The company’s long-term borrowings increased by 187.18% to ¥646,656,276.95, due to project loans being approved and drawn down[9]. - Short-term borrowings rose to ¥945,982,892.92, compared to ¥866,774,275.88 at the end of 2020, indicating a 9% increase[21]. Compliance and Standards - The third quarter report was not audited[33]. - The company has not applied the new leasing standards retrospectively for prior comparative data[33].

Financial Performance - The company reported a revenue increase of 20% year-over-year for the first half of 2021, reaching RMB 500 million[15]. - The company's operating revenue for the reporting period was ¥952,502,777.01, representing a 40.75% increase compared to the same period last year[21]. - The net profit attributable to shareholders was ¥68,021,858.42, an increase of 31.76% year-over-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥41,660,149.21, reflecting a significant increase of 225.33% compared to the previous year[21]. - The net cash flow from operating activities reached ¥374,963,248.36, up 143.91% from the same period last year[21]. - The total assets at the end of the reporting period were ¥3,758,434,864.97, a 17.34% increase from the end of the previous year[21]. - The company's total liabilities increased to CNY 1.78 billion in the first half of 2021, compared to CNY 1.23 billion in the same period of 2020, marking a growth of 44.7%[186]. - The total equity of the company reached CNY 1.16 billion in the first half of 2021, up from CNY 1.12 billion in the first half of 2020, reflecting a growth of 3.5%[186]. Market Expansion and Product Development - The company plans to invest RMB 100 million in new product development and technology research in the next fiscal year[4]. - Future outlook suggests a projected revenue growth of 25% for the second half of 2021, driven by market expansion strategies[4]. - New product lines are expected to launch in Q4 2021, focusing on eco-friendly materials[4]. - The company is exploring potential mergers and acquisitions to enhance its market position and product offerings[4]. - The company has established itself as a first-tier supplier for Tesla's battery solutions, enhancing its position in the new energy vehicle sector[29]. - The company is focusing on the domestic production of key raw materials, particularly PET base films, to improve self-sufficiency[28]. Research and Development - The company holds 683 patents, including 203 invention patents, reflecting its strong R&D capabilities[46]. - The company’s R&D expenses accounted for over 5% of sales revenue, significantly higher than domestic peers[46]. - Research and development investment rose by 12.53% to ¥46,909,124.27, indicating ongoing commitment to innovation[52]. - The company emphasizes the importance of continuous R&D investment to mitigate risks associated with new product development failures, leveraging its strong patent portfolio and experienced R&D personnel[91]. Financial Management and Shareholder Policies - The company has no plans to distribute cash dividends or issue bonus shares for the current fiscal year[6]. - The company has implemented a stock incentive plan, which impacted the net profit attributable to shareholders by ¥1,000.92 million during the reporting period[30]. - The company is committed to maintaining a stable dividend policy, distributing at least 10% of the annual distributable profit in cash dividends[124]. - The company aims to prioritize cash dividends over stock dividends when conditions allow, ensuring sustainable returns for investors[124]. - The company will conduct profit distributions annually, primarily in cash, but may also consider mid-term cash distributions based on financial conditions[124]. Operational Risks and Challenges - Gross profit margin decreased by 5% compared to the same period last year, primarily due to intensified market competition[4]. - The company faces risks related to raw material price fluctuations, which could impact profit margins[4]. - Management risks are acknowledged due to rapid growth, necessitating improvements in organizational structure and management efficiency[95]. - Seasonal fluctuations in sales revenue are anticipated, particularly in the consumer electronics sector, with higher sales expected in the second half of the year[96]. - The company is expanding its market presence beyond consumer electronics into sectors like new energy vehicles and healthcare to reduce seasonal business risks[96]. Environmental and Social Responsibility - The company has implemented pollution control facilities that operate in sync with production, including four natural gas low-nitrogen combustion boilers and three RTO devices[110]. - The company has established a safety and environmental protection department responsible for managing industrial waste and ensuring compliance with environmental regulations[110]. - The company has received no administrative penalties related to environmental issues during the reporting period[112]. - The company has donated a total of 3.5128 million yuan to various charitable causes from 2017 to the end of the reporting period[114]. Corporate Governance and Compliance - The company has a robust internal control system and governance structure to protect the rights of shareholders and creditors, ensuring timely and accurate information disclosure[115]. - The company will publicly explain any failure to fulfill commitments and apologize to shareholders and the public[128]. - The company has committed to covering any penalties or late fees imposed by regulatory authorities related to social insurance and housing fund issues[128]. - The company will accept supervision from regulatory authorities and the public regarding its commitments and will bear corresponding responsibilities[128]. Shareholder Structure and Changes - The largest shareholder, Jin Chuang, holds 65,115,138 shares after an increase of 24,418,177 shares, with a release date set for November 24, 2024[161]. - The company has a total of 151 individual shareholders, with 2,528,800 shares under equity incentive lock-up, which will be released according to the company's 2020 equity incentive plan[162]. - The combined shareholding of the controlling shareholders, Jin Chuang and Shi Rong, is 39.86%[165]. - The company has not experienced any changes in its controlling shareholder during the reporting period[168].

Financial Performance - The company's revenue for Q1 2021 was ¥395,980,096.82, representing a 45.10% increase compared to ¥272,905,941.98 in the same period last year[8] - Net profit attributable to shareholders was ¥5,943,605.19, a significant turnaround from a loss of ¥17,324,580.94, marking a 134.31% improvement[8] - The net profit after deducting non-recurring gains and losses was ¥1,843,304.56, compared to a loss of ¥19,480,984.27, reflecting a 109.46% increase[8] - Basic earnings per share improved to ¥0.05 from a loss of ¥0.15, indicating a 133.33% increase[8] - Operating profit for Q1 2021 was CNY 8,164,439.28, a significant recovery from a loss of CNY 16,074,900.87 in Q1 2020[44] - Net profit for Q1 2021 amounted to CNY 8,576,572.07, compared to a net loss of CNY 17,645,714.66 in Q1 2020[44] - Total comprehensive income for Q1 2021 was CNY 6.14 million, compared to a loss of CNY 17.43 million in Q1 2020[45] Cash Flow - The net cash flow from operating activities reached ¥54,881,626.37, up 91.26% from ¥28,694,236.57 in the previous year[8] - Cash flow from operating activities increased by 83.41% to CNY 488,774,720.72, driven by a significant rise in sales[15] - The net cash flow from operating activities was -84,973,161.63 CNY, compared to -17,846,602.07 CNY in the previous period, indicating a significant decline in operational cash flow[53] - Cash inflow from sales of goods and services reached 390,997,487.86 CNY, a substantial increase from 145,620,226.77 CNY in the prior period, reflecting strong sales performance[53] - The total cash outflow from operating activities was 537,527,049.49 CNY, up from 164,991,198.05 CNY, highlighting increased operational expenditures[53] - The company reported a total cash inflow from operating activities of 452,553,887.86 CNY, compared to 147,144,595.98 CNY in the previous period, reflecting improved operational cash generation[53] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,476,268,845.87, an 8.53% increase from ¥3,202,970,429.01 at the end of the previous year[8] - The total amount of raised funds is CNY 284.23 million, with CNY 66.34 million invested in the reporting period, representing 28.32% of the total commitment for the OCA optical adhesive film production project[24] - Total liabilities increased to CNY 1,386,521,499.38 in Q1 2021, compared to CNY 1,229,603,783.31 in Q1 2020[41] - The company's cash and cash equivalents decreased to CNY 213,004,459.10 from CNY 333,771,762.82 at the end of 2020[38] - Short-term borrowings rose to CNY 955.58 million from CNY 866.77 million at the end of 2020[35] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,465[10] - The largest shareholder, Jin Chuang, holds 34.27% of the shares, with a total of 40,696,961 shares pledged[11] - The total equity attributable to shareholders reached CNY 1,273,027,536.38, up from CNY 1,259,771,844.73 in Q1 2020[37] Operational Insights - Accounts receivable decreased by 90.84% to CNY 5,658,707.50 due to significant collection of bank acceptance bills[15] - Prepayments increased by 186.55% to CNY 89,977,411.35 as the company stocked up on raw materials in response to price increases[15] - Inventory rose by 34.74% to CNY 293,401,022.89, reflecting preparations for rising raw material costs[15] - The company is investing in multiple projects, including OCA optical adhesive and PET optical film, with a total investment of CNY 2.564 billion[19] - Financial expenses decreased by 35.93% to CNY 5,054,752.02 due to favorable exchange rate movements[15] Risks and Future Plans - The company faces risks from intensified market competition, which could lead to a decline in gross margins[17] - The company plans to maintain high R&D investment to mitigate risks associated with new product development failures[18] - There are no significant changes in the feasibility of investment projects during the reporting period[26] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[28] - The company has not reported any violations regarding external guarantees during the reporting period[27] Miscellaneous - The company received government subsidies amounting to ¥4,932,709.27 during the reporting period[9] - The company did not undergo an audit for the first quarter report, which may affect the reliability of the financial data presented[57]

Financial Performance - The company achieved operating revenue of CNY 1,539,459,204.66 in 2020, representing a year-on-year increase of 7.45%[18]. - The net profit attributable to shareholders reached CNY 181,625,771.74, a significant increase of 63.34% compared to the previous year[18]. - The net cash flow from operating activities was CNY 192,974,755.50, up 98.24% from 2019[18]. - The company’s total assets increased by 53.26% year-on-year, reaching CNY 3,202,970,429.01 by the end of 2020[18]. - The company reported a basic earnings per share of CNY 1.55, reflecting a growth of 26.02% from the previous year[18]. - The company’s weighted average return on equity was 15.51%, an increase of 0.95% compared to 2019[18]. - The company’s total cash dividend distributed amounts to RMB 23,750,875.80, representing 100% of the total profit distribution[132]. - The company has accumulated undistributed profits of RMB 417,604,907.72 as of December 31, 2020[133]. Risk Factors - The company faces risks including intensified market competition leading to decreased gross margins, new product development failures, and fluctuations in raw material supply and prices[5]. - The company has a risk factor related to seasonal fluctuations in operations, which may impact financial performance[5]. - The company faces risks from intensified market competition, which could lead to a decline in gross margins if not managed effectively[119]. Corporate Governance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the report's integrity[4]. - The company has established a relatively complete corporate governance structure and effective regulations to manage risks associated with rapid growth[124]. - The independent directors have fulfilled their responsibilities and provided necessary opinions regarding the profit distribution plan, ensuring the protection of minority shareholders' rights[131]. Research and Development - R&D expenses reached 94.8 million RMB in 2020, representing over 5% of sales revenue, significantly ahead of domestic peers[41]. - The company aims to strengthen its R&D capabilities by establishing two new R&D centers and investing in advanced testing equipment to maintain its leading position in the industry[114]. - The company is committed to maintaining a high level of R&D investment to support continuous new product development and industrialization, despite the risks of potential product development failures[120]. Market Position and Strategy - The company has focused on the domestic production of OCA optical adhesives, which is expected to have a global market size exceeding CNY 10 billion[28]. - The company has become a primary supplier of cell adhesive tape for Tesla, establishing a foundation in the new energy vehicle sector[28]. - The company has established long-term partnerships with major international brands such as Apple, Huawei, and Tesla, enhancing its competitive position in the market[38]. - The company is focusing on expanding its market presence in automotive electronics, educational applications, and large commercial display screens, while enhancing product diversification[112]. Shareholder Relations and Profit Distribution - The proposed profit distribution plan for 2020 includes a cash dividend of RMB 2 per 10 shares (including tax) and a capital reserve increase of 6 shares for every 10 shares held, based on a total share count of 118,754,379[133]. - The company has not proposed any cash dividend distribution plan for the reporting period despite positive distributable profits[138]. - The company has committed to a stable dividend distribution policy, prioritizing cash dividends when conditions allow[144]. Environmental and Social Responsibility - The company donated CNY 2 million to the Red Cross for COVID-19 relief and provided over 63,000 protective masks during the pandemic[181]. - The company operates pollution prevention facilities in line with production, with no reported pollution incidents, and has upgraded to low-nitrogen combustion gas boilers[189]. - The company has received environmental impact assessment approval for its construction projects, ensuring compliance with environmental regulations[190]. Subsidiaries and Expansion - The company has multiple subsidiaries, including Sidike New Materials (Jiangsu) Co., Ltd. and Sidike New Materials (USA) Co., Ltd.[10]. - The company added a new subsidiary, Suzhou Stick Automotive Decoration Materials Co., Ltd., which was established in September 2020[69]. - The company established a new subsidiary, Suzhou Sidike Automotive Decoration Materials Co., Ltd., on September 23, 2020, with no significant impact on overall operations[104]. Legal and Compliance Matters - There are ongoing litigation matters involving the company, with a total claim amount of 2.62 million RMB related to unpaid debts, which is currently pending execution[156]. - The company has not faced any penalties or rectification issues during the reporting period[158]. - The company has not reported any major lawsuits or arbitration matters that would affect its financial position[156].

Financial Performance - Net profit attributable to shareholders rose by 13.97% to CNY 55,875,715.37 for the reporting period[7] - Operating revenue for the period was CNY 454,749,697.92, reflecting an increase of 11.58% year-on-year[7] - Basic earnings per share decreased by 16.07% to CNY 0.47[7] - The weighted average return on equity was 4.63%, down 31.11% compared to the previous year[7] - Operating profit for the period was CNY 60,677,078.56, compared to CNY 50,894,780.77 in the same period last year, representing a growth of 19.5%[40] - Net profit attributable to the parent company was CNY 55,548,044.25, an increase of 24.3% from CNY 44,706,000.00 in Q3 2019[40] - The company's net profit for Q3 2020 was CNY 55,548,044.25, an increase from CNY 49,015,763.64 in the same period last year, representing a growth of approximately 13.0%[41] - The company recorded a net profit attributable to shareholders of CNY 55,875,715.37, compared to CNY 49,028,426.44 in the previous year, representing an increase of about 13.5%[41] Assets and Liabilities - Total assets increased by 36.87% to CNY 2,860,432,759.92 compared to the end of the previous year[7] - The company's total assets as of September 30, 2020, were CNY 2,121,641,796.69, up from CNY 1,586,393,296.46 at the end of 2019, indicating a growth of 33.7%[37] - The company's total liabilities reached RMB 1.68 billion, up from RMB 1.01 billion, indicating an increase of about 67%[34] - The company's total liabilities increased to CNY 1,064,715,271.77, up from CNY 615,831,188.63, representing a growth of 72.7%[37] Cash Flow - The net cash flow from operating activities decreased by 37.35% to -CNY 16,237,692.43[7] - The company reported a net cash flow from operating activities of ¥137,490,282.55, a 492.58% increase, mainly due to significant government subsidies received[17] - The net cash flow from operating activities for Q3 2020 was ¥183,086,206.27, a significant improvement compared to a net outflow of ¥17,818,725.88 in Q3 2019[58] - Total cash inflow from operating activities reached ¥724,872,221.82, while cash outflow was ¥541,786,015.55, resulting in a positive cash flow[58] Investments and Projects - The company plans to invest up to ¥450 million in a PET film production line, with installation currently underway[18] - The company has approved multiple investment projects totaling ¥1.7669354 billion, including technology upgrades and new product lines[18] - The company established a wholly-owned subsidiary in Taiwan with an investment of ¥5 million to enhance international development and market expansion[22] - The company has invested in multiple projects, including a PET film production line and various technology upgrades, to enhance production capabilities[24] Government Subsidies - Government subsidies recognized in the current period amounted to CNY 84,558,560.96[8] - Other income increased by 308.41% to ¥84,558,560.96, primarily due to a significant rise in government subsidies[17] Shareholder Information - The company reported a total of 6,994 common shareholders at the end of the reporting period[11] - The largest shareholder, Jin Chuang, holds 34.38% of the shares, with 12,430,000 shares pledged[11] Inventory and Receivables - Accounts receivable increased by 33.25% to ¥701,524,540.31, attributed to concentrated year-end cash collection and peak sales in Q3[15] - Inventory rose by 58.97% to ¥198,199,686.56, due to increased purchases of PTA slices for trial production of high-resolution PET film[15] Research and Development - Research and development expenses for the quarter were CNY 26,726,987.55, compared to CNY 24,685,288.03 in Q3 2019, showing an increase of 8.3%[40] - Research and development expenses amounted to CNY 63,399,115.65, up from CNY 59,352,804.42, indicating a focus on innovation[51] Financial Management - The company incurred a financial expense of CNY 6,990,120.55, down from CNY 14,536,759.88, showing improved cost management[51] - The company reported a decrease in financial expenses to CNY 1,053,351.00 from CNY 4,333,575.91, a reduction of about 75.7%[43] Other Information - The company has not reported any overdue commitments or violations regarding external guarantees during the reporting period[25] - The company has engaged in investor communications, discussing industry prospects and project progress with various financial institutions[28] - The Q3 2020 report was not audited[61]

Company Overview - The company focuses on the research, production, and sales of functional coating composite materials, primarily used in consumer electronics such as smartphones, tablets, and laptops, indicating a strong linkage to the consumer electronics industry's performance [4]. - The company is positioned in a rapidly growing market, supported by national policies favoring the development of new materials, which could enhance its market opportunities [5]. - The company is engaged in the research, production, and sales of various materials, including adhesive products and medical materials [189]. Financial Performance - The company's operating revenue for the reporting period was RMB 676,734,815.01, an increase of 1.33% compared to the same period last year [21]. - The net profit attributable to shareholders of the listed company was RMB 51,623,753.09, representing a significant increase of 141.53% year-on-year [21]. - The net cash flow from operating activities reached RMB 153,727,974.98, a remarkable increase of 212.97% compared to the previous year [21]. - The company's total assets at the end of the reporting period amounted to RMB 2,708,461,980.47, reflecting a growth of 29.60% from the end of the previous year [21]. - The company's basic earnings per share increased to RMB 0.44, up 83.33% from the previous year [21]. - The total profit and net profit attributable to the parent company were RMB 64.01 million and RMB 51.62 million, respectively, showing significant increases of 138.35% and 141.53% year-on-year [38]. - The total comprehensive income for the first half of 2020 was CNY 51,037,409.75, significantly higher than CNY 21,337,434.90 in the previous year [154]. Research and Development - The company plans to maintain a high level of R&D investment to support new product development, despite the inherent risks of product development failure due to market demand misalignment [5]. - The company has a strong patent portfolio and core technologies, which are crucial for its competitive edge in the functional coating composite materials industry [5]. - Research and development investment reached RMB 41.69 million, accounting for 6.16% of total revenue, with a year-on-year increase of 8.68% [39]. - The embedded R&D approach was strengthened, leading to the acquisition of 11 patents, including 10 invention patents and 1 utility model patent [39]. Market Conditions - The consumer electronics market is sensitive to macroeconomic conditions, which can affect consumer purchasing behavior and, consequently, the company's product demand [4]. - The company faces risks from intensified market competition, which could lead to oversupply and declining product prices, potentially impacting gross margins [5]. - Seasonal fluctuations in sales are expected, with higher revenues and net profits anticipated in the second half of the year due to consumer electronics manufacturers launching new products in the third quarter [6]. - The company operates in a highly competitive environment with both domestic and international players, necessitating effective strategies to maintain its market position [5]. Investment and Capital Management - The company does not plan to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment for growth [7]. - The company has increased its inventory by 42.14% to prepare for the upcoming sales peak in the second half of the year [30]. - The company invested 375,517,584.13 during the reporting period, a significant increase of 375.31% compared to the previous year [56]. - The company has successfully executed its fundraising investment projects according to the planned progress, with no delays or expected revenue shortfalls reported [65]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities, indicating significant environmental responsibilities [109]. - The company has implemented pollution control facilities, including four low-nitrogen gas boilers and two RTO devices, with no pollution incidents reported to date [110]. - The company is actively involved in social responsibility initiatives, including poverty alleviation efforts, although specific metrics were not disclosed [114]. Shareholder Information - The total number of shares increased from 116,838,879 to 118,371,379 due to the grant of 1,532,500 restricted stocks [120]. - The largest shareholder, Jin Chuang, holds 34.38% of the shares, totaling 40,696,961 [124]. - The company granted a total of 1,532,500 restricted stocks to 148 incentive objects [119]. - The total number of shareholders at the end of the reporting period was 9,057 [124]. Legal and Regulatory Matters - The company is currently involved in a lawsuit seeking 2.62 million yuan for unpaid debts, with the case still under trial [86]. - The company has not undergone any bankruptcy restructuring during the reporting period [85]. - The half-year financial report has not been audited [84]. - The company has not reported any overdue commitments from major stakeholders during the reporting period [82].

Business Overview - The company focuses on the research, production, and sales of functional coating composite materials, primarily used in consumer electronics such as smartphones, tablets, and laptops[5]. - The company emphasizes the importance of continuous new product development and strong industrialization capabilities, which are crucial for its rapid growth[8]. - The company focuses on the development and sales of OCA adhesive film products, enhancing its market competitiveness[34]. - The company has established long-term stable partnerships with major clients such as Foxconn and has received certifications from brands like Apple and Huawei[39]. - The company employs a direct sales model as its primary sales strategy, supplemented by distributors and traders[33]. - The company has implemented a production model that combines sales-driven production and demand forecasting to align production plans with sales conditions[32]. - The company emphasizes embedded R&D with end customers to quickly adapt product designs to market changes[43]. - The functional coating composite materials industry is in a steady development phase and is a key area supported by national policies[36]. - The company has a strong market response capability, crucial for the fast-paced consumer electronics industry[44]. Financial Performance - The company's operating revenue for 2019 was ¥1,432,695,837.17, representing a 6.47% increase compared to ¥1,345,591,764.53 in 2018[23]. - The net profit attributable to shareholders for 2019 was ¥111,194,767.10, a significant increase of 45.26% from ¥76,550,127.62 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥84,108,776.65, up 46.78% from ¥57,304,333.47 in 2018[23]. - The company's total assets at the end of 2019 reached ¥2,089,901,277.22, marking a 12.07% increase from ¥1,864,809,664.33 in 2018[23]. - The net assets attributable to shareholders increased by 57.83% to ¥1,079,791,313.14 from ¥684,128,379.77 in 2018[23]. - The basic earnings per share for 2019 was ¥1.23, reflecting a 41.38% increase compared to ¥0.87 in 2018[23]. - The net cash flow from operating activities decreased by 34.02% to ¥97,342,176.05 from ¥147,522,729.83 in the previous year[23]. - The company reported a quarterly revenue of ¥275,465,333.65 in Q1, ¥392,387,953.99 in Q2, ¥407,567,853.10 in Q3, and ¥357,274,696.43 in Q4 of 2019[25]. - The total non-recurring gains and losses for 2019 amounted to ¥27,085,990.45, compared to ¥19,245,794.15 in 2018[29]. - The weighted average return on equity for 2019 was 14.56%, an increase from 11.86% in 2018[23]. - The company achieved a main business revenue of 1,432.70 million yuan, a year-on-year increase of 6.47%[31]. - The net profit attributable to shareholders was 111.19 million yuan, representing a year-on-year growth of 45.26%[31]. Research and Development - The company maintains a high R&D investment ratio, consistently above 5% of sales revenue, with 669 patents held, including 190 invention patents[42]. - The company's R&D expenses for 2019 amounted to CNY 82,806,722.66, representing a 22.22% increase compared to 2018[68]. - The proportion of R&D personnel increased to 11.48% of the total workforce, up from 10.24% in 2018[69]. - The company aims to enhance R&D investment in its core products, functional film materials and electronic-grade adhesive materials, which are primarily used in the consumer electronics sector[106]. - The company plans to increase investment in technology research and development to develop green products and reduce environmental impact[108]. Market Risks and Competition - The company faces risks from fluctuations in the consumer electronics market, which is significantly influenced by macroeconomic conditions and consumer income levels[5]. - Increased competition in the functional coating composite materials industry may lead to oversupply and price declines, potentially impacting the company's gross margin[7]. - The functional coating composite materials industry is highly competitive, with major international players like 3M dominating the mid-to-high-end market[101][102]. - The company is experiencing intensified market competition, which may lead to a decline in gross profit margins if not managed effectively[111]. - There is a risk of new product development failures, as the company must accurately grasp industry trends and customer needs[112]. Operational Efficiency - Seasonal fluctuations in sales revenue and net profit are expected, with higher performance typically in the second half of the year due to consumer electronics product launches[9]. - The company has implemented refined management practices, resulting in reduced inventory and improved operational efficiency[52]. - The gross margin for electronic-grade adhesive materials was 52.17%, while functional film materials had a gross margin of 24.89%[59]. - The gross profit margin for functional film materials decreased by 2.94% compared to the previous year[63]. - The company reported a significant decrease in sales volume for thermal management composite materials, down 31.73% due to reduced customer orders[60]. Shareholder and Corporate Governance - The company plans to distribute cash dividends of 1 RMB per 10 shares to all shareholders, based on a total of 116,838,879 shares[10]. - The proposed cash dividend for 2019 is RMB 1 per 10 shares, totaling RMB 11,683,887.90, which represents 10.51% of the net profit attributable to shareholders[121]. - The company has committed to not transferring or entrusting the management of shares held before the stock issuance for a period of 60 months[123]. - Major shareholders are required to comply with regulations regarding shareholding and changes in shareholding during their tenure as directors or senior management[124]. - The company has established a commitment to report any changes in shareholding accurately and timely[124]. - The company implements a stable profit distribution policy, prioritizing cash dividends, with a minimum cash distribution of 10% of the distributable profit for the year[128]. - The company has committed to avoiding any competition with its subsidiaries and will not engage in any competitive product development, production, or sales[129]. - The company will notify and attempt to transfer any business opportunities that may compete with its subsidiaries to the company[129]. - The company has pledged to comply with relevant laws and regulations regarding related party transactions, ensuring fairness and transparency[130]. Compliance and Legal Matters - The company has confirmed that all commitments made during the acquisition and restructuring processes have been fulfilled as of the reporting period[122]. - The company is currently involved in litigation concerning a breach of contract, with a claim amount of CNY 736.96 million[145]. - The company has not faced any situations that would lead to suspension or termination of its listing[143]. - The company has not undergone any bankruptcy restructuring during the reporting period[143]. - The company has not made any significant mergers or acquisitions during the reporting period[140]. - The company reported no penalties or rectifications during the reporting period[147]. - The company has not reported any significant matters requiring explanation during the reporting period[177]. IPO and Share Capital - The company successfully listed on the Growth Enterprise Market on November 25, 2019, enhancing its market influence and corporate image[49]. - The company completed its initial public offering (IPO) with a total share capital increase from 87,628,879 shares to 116,838,879 shares[189][191]. - The IPO involved the issuance of 29,210,000 shares at a price of 11.27 RMB per share, with 90% of the shares allocated to online investors[190]. - The total number of shareholders increased to 20,772 by the end of the reporting period[192]. - The company’s stock was listed on the Shenzhen Stock Exchange on November 25, 2019, under the stock code "300806"[190]. - The largest shareholder, Jin Chuang, holds 34.83% of the shares, totaling 40,696,961 shares[193]. - The second largest shareholder, Shi Rong, owns 5.68% of the shares, amounting to 6,633,700 shares[193]. - The combined shareholding of Jin Chuang and Shi Rong, as controlling shareholders, is 40.51%[193]. - The company has not experienced any changes in its controlling shareholders during the reporting period[195]. - The company has not reported any changes in its actual controllers during the reporting period[196].

Financial Performance - Total revenue for Q1 2020 was CNY 272,905,941.98, a decrease of 0.93% compared to CNY 275,465,333.65 in the same period last year[7] - Net profit attributable to shareholders was a loss of CNY 17,324,580.94, representing an 18.11% decline from a loss of CNY 14,667,582.02 year-over-year[7] - The company achieved operating revenue of CNY 272,905,941.98 in Q1 2020, a decrease of 0.93% compared to the same period last year[16] - The net profit attributable to shareholders was CNY -17,324,580.94, down 18.11% year-on-year[16] - Net loss for Q1 2020 was CNY 17,346,319.88, compared to a net loss of CNY 14,714,145.82 in the same period last year[40] - The total comprehensive income for the period was CNY -22,160,173.69, compared to CNY -15,098,495.86 in the previous period, reflecting a worsening financial position[45] Cash Flow and Liquidity - Net cash flow from operating activities decreased by 27.46% to CNY 28,694,236.57 from CNY 39,555,654.70 in the previous year[7] - Cash and cash equivalents rose by 42.26% to CNY 448,998,769.45, driven by increased financing activities[15] - Cash and cash equivalents as of March 31, 2020, increased to RMB 448,998,769.45 from RMB 315,613,933.77 as of December 31, 2019, representing a growth of approximately 42.2%[30] - The cash and cash equivalents at the end of the period increased to CNY 278,159,147.49 from CNY 157,961,455.51, showing a positive cash flow trend[49] - Net cash flow from operating activities was -¥17,846,602.07, a decline from a positive cash flow of ¥7,734,155.82 in the previous period[51] Assets and Liabilities - Total assets increased by 11.31% to CNY 2,326,184,481.63 compared to CNY 2,089,901,277.22 at the end of the previous year[7] - Total liabilities increased to RMB 1,263,207,963.75 from RMB 1,009,556,700.51, representing a growth of approximately 25.1%[32] - Total assets as of March 31, 2020, amounted to CNY 1,678,951,676.64, an increase from CNY 1,586,393,296.46 at the end of 2019[36] - Current assets increased to CNY 848,203,245.91 from CNY 767,666,737.36 at the end of 2019[35] - Total liabilities increased to CNY 730,549,742.77 from CNY 615,831,188.63 at the end of 2019[36] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,462[10] - The largest shareholder, Jin Chuang, holds 34.83% of the shares, totaling 40,696,961 shares[10] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[11] Research and Development - The company plans to maintain high R&D investment to mitigate risks associated with new product development failures[19] - Research and development expenses for Q1 2020 were CNY 15,649,763.17, compared to CNY 12,080,775.16 in the previous period[39] - Research and development expenses increased significantly to CNY 21,530,290.92, up 97.5% from CNY 10,913,435.82 in the previous period[43] Market and Competition - The company faces risks from changes in the consumer electronics market, which could impact product demand[17] - Increased competition in the functional coating composite materials industry may lead to a decline in gross margins[18] Fundraising and Financial Management - The company increased cash from borrowings to CNY 269,200,000.00, a rise of 236.50% due to business expansion needs[15] - The company plans to use up to RMB 70 million of idle raised funds to temporarily supplement working capital for business expansion and daily operations[23] - There are no violations regarding the use and management of raised funds, ensuring compliance with regulations[23] Operational Challenges - The company's operating profit was a loss of CNY 23,516,991.80, compared to a loss of CNY 17,799,376.84 in the previous period, indicating increased operational challenges[44] - The company reported a credit impairment loss of CNY -636,359.43, compared to a gain of CNY 209,859.09 in the previous period, indicating a deterioration in asset quality[44] Seasonal Trends - Seasonal fluctuations in sales revenue are expected, with higher performance anticipated in the second half of the year[19]

Company Overview - The company focuses on the research, production, and sales of functional coating composite materials, primarily used in the consumer electronics industry, which is significantly influenced by macroeconomic conditions and national income levels [5]. - The functional coating composite materials industry is in a steady development phase, supported by national policies, and plays a crucial role in the economy [36]. - The company has established long-term stable partnerships with major clients such as Foxconn and has received certifications from brands like Apple and Huawei [39]. Financial Performance - The company's operating revenue for 2019 was ¥1,432,695,837.17, representing a 6.47% increase compared to ¥1,345,591,764.53 in 2018 [23]. - The net profit attributable to shareholders for 2019 was ¥111,194,767.10, a significant increase of 45.26% from ¥76,550,127.62 in the previous year [23]. - The net profit after deducting non-recurring gains and losses was ¥84,108,776.65, up 46.78% from ¥57,304,333.47 in 2018 [23]. - The total assets at the end of 2019 reached ¥2,089,901,277.22, marking a 12.07% increase from ¥1,864,809,664.33 in 2018 [23]. - The net assets attributable to shareholders increased by 57.83% to ¥1,079,791,313.14 from ¥684,128,379.77 in 2018 [23]. - The basic earnings per share for 2019 was ¥1.23, reflecting a 41.38% increase compared to ¥0.87 in 2018 [23]. - The company achieved a main business revenue of 1,432.70 million CNY, a year-on-year increase of 6.47% [31]. - The net profit attributable to shareholders reached 111.19 million CNY, reflecting a significant year-on-year growth of 45.26% [31]. Research and Development - Continuous new product development is crucial for the company's growth, with significant investments in R&D; however, failure to meet market demands could pose risks to new product development [8]. - The company maintains a high R&D investment ratio, consistently above 5% of sales revenue, with a total of 669 patents, including 190 invention patents [42]. - Research and development investment reached RMB 82.81 million, accounting for 5.78% of operating revenue, with 19 patents granted, including 14 invention patents [49]. - The company aims to enhance R&D investment in its core products, functional film materials and electronic-grade adhesive materials, which are key profit sources [103]. Market and Competition - The company faces risks from intensified market competition, which could lead to oversupply and declining product prices, potentially resulting in a decrease in gross profit margins if effective strategies are not implemented [7]. - The functional coating composite materials industry is highly competitive, with major players like 3M and Nitto Denko dominating the mid-to-high-end market [98]. - The company has a strong market response capability, essential for the fast-paced consumer electronics industry, ensuring low inventory and quick delivery [44]. Sales and Revenue Trends - The company's sales revenue exhibits seasonal fluctuations, with higher sales typically occurring in the second half of the year due to consumer electronics manufacturers launching new products in the third quarter [9]. - The company reported a quarterly revenue of ¥275,465,333.65 in Q1, ¥392,387,953.99 in Q2, ¥407,567,853.10 in Q3, and ¥357,274,696.43 in Q4 of 2019 [25]. - Sales of electronic-grade adhesive materials increased by 24.95% year-on-year, contributing RMB 420.64 million, which accounted for 29.36% of total revenue [55]. Cash Flow and Investments - The net cash flow from operating activities decreased by 34.02% to ¥97,342,176.05 from ¥147,522,729.83 in the previous year [23]. - The total cash outflow from investment activities surged by 218.04% to CNY 222,886,352.77, driven by ongoing investments in new facilities and equipment [69]. - The company reported a net cash flow from financing activities of CNY 103,046,642.37, a 96.99% increase compared to the previous year, attributed to funds raised from the initial public offering [70]. Shareholder and Dividend Policies - The company plans to distribute cash dividends of 1 RMB per 10 shares to all shareholders, based on a total of 116,838,879 shares [10]. - The proposed cash dividend for 2019 is RMB 1.00 per 10 shares, totaling RMB 11,683,887.90, which represents 10.51% of the net profit attributable to shareholders [115][118]. - The company has a stable profit distribution policy, prioritizing cash dividends when conditions are met, with a minimum cash distribution of 10% of the distributable profit each year [125]. Corporate Governance and Compliance - The company has established a commitment to comply with legal regulations regarding shareholding and changes in shareholding for directors and senior management [121]. - The company has committed to maintaining transparency and integrity in its shareholding practices among its executives [121]. - The company has implemented measures to ensure compliance with regulatory requirements and will accept supervision from regulatory bodies and the public [130]. Legal Matters - The company is currently involved in litigation regarding a quality issue with a production line, with a claim amount of CNY 736.96 million [142]. - The company has filed a lawsuit for outstanding payments totaling CNY 2.62 million, with ongoing legal proceedings [142]. - The court ruled that Fengsheng Technology must pay Jiangsu Sidike a total of ¥6,650,823.01, along with overdue interest calculated at 1.5 times the benchmark interest rate from July 10, 2018, until the actual payment date [143]. Employee Relations and Corporate Social Responsibility - The company has established a harmonious labor relationship and provides competitive benefits and training for employees [169]. - The company donated RMB 2 million to the Red Cross Society of China and provided medical isolation masks to Hubei Huangshi to support COVID-19 prevention efforts [167]. IPO and Share Structure - The company successfully listed on the Growth Enterprise Market on November 25, 2019, enhancing its market presence and corporate image [48]. - The total number of shares increased from 87,628,879 to 116,838,879 after issuing 29,210,000 new shares, representing a 33.33% increase in total shares [179]. - The company’s stock was listed on the Shenzhen Stock Exchange on November 25, 2019, under the ticker "300806" [186].