Financial Performance - The company's operating revenue for 2020 was CNY 2,503,320,490.87, a decrease of 8.41% compared to 2019[29]. - The net profit attributable to shareholders for 2020 was CNY 280,731,911.98, down 49.27% from the previous year[29]. - The net cash flow from operating activities was CNY 209,910,154.66, reflecting a decline of 59.09% year-on-year[29]. - The total assets at the end of 2020 amounted to CNY 4,498,417,305.64, an increase of 80.08% compared to the end of 2019[29]. - The net assets attributable to shareholders increased by 93.53% year-on-year, reaching CNY 4,079,130,704.91 at the end of 2020[29]. - The basic earnings per share for 2020 was CNY 0.25, a decrease of 59.02% from 2019[29]. - The company reported a total of CNY 29,905,410.90 in non-recurring gains and losses for 2020[37]. - The company experienced a significant decline in the weighted average return on net assets, dropping to 7.94% from 28.81% in 2019[29]. - The first quarter of 2020 saw operating revenue of CNY 581,919,276.08, while the fourth quarter reported CNY 731,591,594.20, indicating a positive trend towards the end of the year[34]. Dividend Distribution - The profit distribution plan approved by the board includes a cash dividend of 1.25 RMB per 10 shares, based on a total of 1,200,000,000 shares[8]. - The company plans to distribute a cash dividend of RMB 1.25 per 10 shares, totaling RMB 150,000,000 for the year 2020[118]. - The cash dividend for 2019 was RMB 2.50 per 10 shares, amounting to RMB 300,000,000, which represents 54.21% of the net profit attributable to shareholders[119]. - The total distributable profit for 2020 was RMB 617,466,888.30, with the cash dividend accounting for 100% of the profit distribution[119]. - The company has maintained a consistent dividend policy over the past three years, with cash dividends of RMB 360,000,000 in 2018, RMB 300,000,000 in 2019, and RMB 150,000,000 in 2020[122]. - The company’s cash dividend for 2020 represents 53.43% of the consolidated net profit attributable to the parent company[122]. - The company has committed to a stable dividend policy to reward investors while ensuring operational sustainability and long-term growth[122]. - The cash dividend distribution plan for 2020 aligns with the company's articles of association and dividend management measures[118]. - The company’s cash dividend for 2020 is set to be distributed on April 23, 2020, following the approval at the annual general meeting[118]. Research and Development - The company plans to continue focusing on research and development of new products and technologies to enhance its market position[6]. - The company has increased its R&D personnel to 255, representing 29.93% of the workforce, indicating a focus on innovation[75]. - The company’s R&D expenditure reached CNY 185.97 million, which is 7.43% of total revenue, reflecting a substantial increase in R&D investment[75]. - The company actively engages in R&D, focusing on market-driven innovation and collaboration with academic institutions to enhance its technological capabilities[43]. - The company has developed a joint R&D center with the Shandong Academy of Sciences, focusing on new product development aligned with industry trends[50]. - The company plans to invest in R&D to explore advanced technologies and high-end products, addressing the current reliance on imports for high-end silicone products[109]. - Research and development investments increased by 12% this year, focusing on sustainable materials and technologies[154]. Market and Sales Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[149]. - The company has established a nationwide sales network and aims to strengthen customer development and service levels to ensure rapid release of new capacities[109]. - The company has a diverse customer base, combining large clients with small and medium-sized enterprises to mitigate risks and stabilize sales[46]. - The company’s products are sold in over 30 countries and regions, including the UAE, the USA, Belgium, Germany, India, Poland, Turkey, and South Korea[46]. - The company plans to implement a new marketing strategy aimed at increasing brand awareness by 40% over the next year[140]. Operational Challenges and Risks - In 2020, the company faced significant challenges due to the COVID-19 pandemic, which led to delayed orders and a notable decline in DMC market prices, impacting overall performance[6]. - The company is aware of the potential risks related to overdue debts and is taking steps to mitigate these financial pressures[8]. - The company faces risks including safety and environmental hazards, intensified market competition, and fluctuations in product prices due to various economic factors[112]. - The company emphasizes the importance of safety and environmental protection measures to ensure stable production operations during the pandemic[6]. - The company has invested in safety and environmental management, achieving recognition as a provincial benchmark enterprise for risk control and hidden danger investigation[53]. Investment and Financial Management - The company has not encountered any significant changes in the feasibility of its investment projects during the reporting period[97]. - The company invested ¥1,900,000,000.00 during the reporting period, a 100% increase compared to the previous year[88]. - The company reported a significant increase in fixed assets, which accounted for 15.84% of total assets, up from 25.63% in the previous year[82]. - The company generated net interest income of CNY 2,529.22 million from the raised funds after deducting bank fees[93]. - The company approved the use of CNY 17,703.84 million of raised funds to replace self-raised funds used for investment projects and issuance expenses[93]. - The company has not sold any significant assets or equity during the reporting period[105][106]. - There were no changes in the use of raised funds during the reporting period[104]. - The company has committed to avoiding any direct or indirect competition with Dongyue Silicon Materials, ensuring no investments or activities that could compete with its business[155]. Corporate Governance - The board of directors has confirmed that all members attended the meeting to review the annual report, ensuring accountability and governance[5]. - The company has maintained its accounting firm, Tianjian Accounting Firm, for five consecutive years, with an audit fee of 500,000 yuan[184]. - The company’s actual control and shareholder commitments are being fulfilled as of the report date[123]. - There were no significant changes in the scope of the consolidated financial statements compared to the previous year[183]. - The company did not have any stock incentive plans or employee shareholding plans during the reporting period[190].

Financial Performance - Net profit attributable to shareholders was ¥29,422,587.59, down 79.86% year-on-year[8] - Operating revenue for the reporting period was ¥615,996,796.35, a decrease of 17.08% compared to the same period last year[8] - Basic earnings per share were ¥0.02, a decrease of 87.50% compared to the same period last year[8] - The weighted average return on net assets was 0.76%, down 6.77% year-on-year[8] - Net profit decreased by 75.44% to ¥112,850,428.27 from ¥459,403,872.93, primarily due to lower product sales prices[25] - The company expects a net profit decrease of 68.39% for the upcoming reporting period, influenced by the COVID-19 pandemic and economic conditions[27] - Total operating revenue for the current period is CNY 1,771,728,896.67, a decrease of 16.9% compared to CNY 2,132,839,171.51 in the previous period[56] - Net profit for the current period is CNY 112,850,428.27, a significant decrease from CNY 459,403,872.93 in the previous period, indicating challenges in profitability[58] - The company reported a profit margin of approximately 6.4% for the current period, down from 21.6% in the previous period[58] Assets and Liabilities - Total assets at the end of the reporting period reached ¥4,312,013,210.86, an increase of 72.61% compared to the end of the previous year[8] - The company's total assets increased to CNY 4,312,013,210.86 from CNY 2,498,066,709.86, reflecting a growth of approximately 72.5%[45] - Total liabilities rose to CNY 405,538,555.26, compared to CNY 390,290,949.51 in the previous period, indicating an increase of about 3.2%[42] - The equity attributable to shareholders increased to CNY 3,906,474,655.60 from CNY 2,107,775,760.35, marking a growth of approximately 85.3%[45] - The total non-current assets reached CNY 1,265,890,501.31, up from CNY 1,018,592,715.77, indicating an increase of approximately 24.3%[45] Cash Flow - The net cash flow from operating activities was ¥42,734,199.92, down 81.25% year-on-year[8] - Operating cash flow net amount dropped by 78.26% to ¥100,232,096.18 from ¥461,109,310.10, mainly due to reduced sales revenue[25] - Cash flow from operating activities increased to CNY 971,836,519.53 from CNY 886,960,983.18, indicating improved cash generation[63] - Operating cash inflow totaled $1,015,895,669.55, an increase from $995,400,270.34 in the previous period[67] - Financing cash inflow was $2,012,415,094.34, with cash outflow for dividend and interest payments totaling $293,772,376.10, resulting in a net cash flow from financing activities of $1,717,642,718.24[68] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 80,445[12] - The largest shareholder, Dongyue Fluorosilicon Technology Group Co., Ltd., held 57.75% of the shares[12] - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[19] Research and Development - Research and development expenses surged by 153.34% to ¥120,999,808.80 from ¥47,762,526.79, reflecting increased investment in R&D projects[25] - Research and development expenses increased to CNY 120,999,808.80 from CNY 47,762,526.79, highlighting a focus on innovation[56] Government Subsidies and Other Income - The company received government subsidies amounting to ¥7,759,588.00 during the reporting period[8] - Other income increased significantly by 1971.27% to ¥7,759,588.00 from ¥374,630.00, mainly from government subsidies[22] Investment Activities - The company invested ¥100,000,000.00 in Dongyue Future Hydrogen Energy Company during the reporting period[22] - The company reported a financial expense of CNY 60,269,609.94, which included a negative adjustment of CNY 3,273,412.51[46] Cost Management - The company has implemented cost control measures, as evidenced by a reduction in sales and management expenses compared to the previous period[56] - Total operating costs for the current period are CNY 1,646,478,534.36, down from CNY 1,695,294,299.93, reflecting a cost reduction strategy[56]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,155,732,100.32, a decrease of 16.85% compared to the same period last year[28]. - The net profit attributable to shareholders of the listed company was ¥83,427,840.68, down 73.37% year-on-year[28]. - The net profit after deducting non-recurring gains and losses was ¥74,830,633.45, a decrease of 66.24% compared to the previous year[28]. - The net cash flow from operating activities was ¥57,497,896.26, down 75.34% from the same period last year[28]. - Basic earnings per share were ¥0.08, a decline of 77.14% compared to ¥0.35 in the previous year[28]. - Revenue for the reporting period was ¥1,155,732,100.32, a decrease of 16.85% compared to the same period last year[55]. - The net profit attributable to the parent company was ¥83,427,840.68, a decrease from ¥313,341,941.09 in the previous period, representing a decline of approximately 73%[183]. - The total profit amounted to ¥98,192,032.11, down from ¥254,069,445.36, indicating a decrease of about 61%[183]. - Operating profit was reported at ¥95,820,583.91, significantly lower than ¥261,099,474.65 from the prior period, reflecting a decline of approximately 63%[183]. - Cash flow from operating activities generated a net amount of ¥57,497,896.26, down from ¥233,208,884.88, a decrease of about 75%[190]. Assets and Liabilities - Total assets at the end of the reporting period were ¥4,212,882,358.59, an increase of 68.65% compared to the end of the previous year[28]. - Total liabilities decreased to CNY 335,830,290.58 from CNY 390,290,949.51, indicating a reduction in financial obligations[173]. - The company's equity increased to CNY 3,877,052,068.01 as of June 30, 2020, compared to CNY 2,107,775,760.35 at the end of 2019, reflecting retained earnings growth[176]. Cash Flow and Financing - The company raised ¥1,717,642,718.24 through its initial public offering, marking a 577.12% increase in net cash flow from financing activities[55]. - Cash and cash equivalents increased by 666.14% to ¥834,135,077.21, mainly due to funds raised from the IPO[58]. - The net increase in cash and cash equivalents for the period was ¥834,135,077.21, compared to a decrease of ¥147,337,677.24 in the previous period[193]. - The ending balance of cash and cash equivalents reached ¥1,890,477,344.96, up from ¥788,797,059.27 at the end of the previous period[193]. Operational Challenges - The impact of the COVID-19 pandemic has led to a decrease in demand for organosilicon products, affecting pricing in the industry[5]. - The company faced challenges due to the COVID-19 pandemic, which led to delayed orders and reduced demand for organic silicon products, negatively impacting performance[42]. - The company has resumed normal operations despite the ongoing global pandemic[5]. - The company experienced a decline in demand for silicone products due to the COVID-19 pandemic, affecting product prices and overall performance[84]. Research and Development - Research and development investment increased by 113.73% to ¥60,730,198.86, reflecting a rise in R&D projects and expenditures[55]. - The company emphasizes R&D driven by market demand and has engaged in collaborations with universities and research institutions to enhance innovation capabilities[40]. - The company is focusing on enhancing its research and development capabilities to drive future growth[196]. Production Capacity and Facilities - The company has an annual production capacity of 300,000 tons of organic silicon monomer, ranking fourth in China and among the top ten globally in the organic silicon industry[40]. - The company operates two organic silicon monomer production facilities, which are among the highest capacity domestic installations[40]. - The company has a production capacity of 150,000 tons/year for silicone monomer synthesis, making it one of the highest capacity domestic facilities[46]. Environmental and Safety Management - The company has implemented a "zero discharge" plan for wastewater, which is expected to significantly reduce wastewater emissions upon project completion[49]. - The company has been recognized as a provincial benchmark enterprise for risk classification and dual prevention system construction in safety management[49]. - The company faces safety and environmental risks due to the flammable and toxic nature of raw materials used in silicone production, but has implemented effective safety and environmental management systems[84]. - The company’s pollution discharge meets the standards set by relevant environmental regulations, with no exceedances reported[123]. Shareholder Information - The largest shareholder, Dongyue Fluorosilicon Technology Group Co., Ltd., holds 57.75% of the shares, totaling 69,300,000 shares[141]. - The second-largest shareholder, Zibo Xiaoxi Enterprise Management Partnership, holds 9.75% of the shares, totaling 11,700,000 shares, which are pledged[141]. - The total number of ordinary shareholders at the end of the reporting period was 107,186[141]. Market and Sales Strategy - The company’s sales are concentrated in South China and East China, with exports to over 30 countries including the UAE, the USA, and Germany[42]. - The company has a diverse customer base, combining large clients with small and medium-sized enterprises to mitigate risks and stabilize sales[42]. - The company is focusing on the development of new products such as high-performance flame-retardant silicone rubber and functional liquid silicone rubber, which align with future industry trends[46].

Financial Performance - Total operating revenue for Q1 2020 was ¥581,919,276.08, a decrease of 15.49% compared to the same period last year[8]. - Net profit attributable to shareholders was ¥55,122,922.48, down 34.24% year-on-year[8]. - Net profit excluding non-recurring gains and losses was ¥48,206,227.73, a decline of 46.19% compared to the previous year[8]. - Basic earnings per share were ¥0.06, down 33.33% from ¥0.09 in the previous year[8]. - Operating revenue decreased by 15.49% to RMB 58,000,000, primarily due to a decline in main business income[29]. - Net profit for the current period is ¥55,122,922.48, a decline of 34.5% from ¥83,827,509.76 in the previous period[58]. Cash Flow - Net cash flow from operating activities was ¥20,933,718.24, representing an 83.47% decrease from the same period last year[8]. - The company experienced an 83.47% decrease in net cash flow from operating activities, amounting to RMB 20,933,718.24, attributed to reduced sales collections[27]. - Operating cash inflow from sales of goods and services was $250.18 million, compared to $348.01 million in the previous period, reflecting a decrease of approximately 28.14%[64]. - Net cash flow from operating activities was $20.93 million, down from $126.66 million, indicating a decline of about 83.53%[64]. - Cash inflow from financing activities totaled $2.01 billion, with no cash outflow reported for financing activities, resulting in a net cash flow from financing of $2.01 billion[67]. - The net increase in cash and cash equivalents was $2.02 billion, compared to $106.59 million in the previous period, showing a substantial increase[67]. - The ending balance of cash and cash equivalents reached $3.08 billion, up from $1.04 billion at the end of the previous period, indicating a growth of approximately 195.56%[67]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥4,550,048,965.66, an increase of 82.14% compared to the end of the previous year[8]. - The total liabilities amount to ¥401,301,815.85, an increase of 2.6% from ¥390,290,949.51 in the previous period[53]. - Total equity attributable to the parent company is ¥4,148,747,149.81, up 96.7% from ¥2,107,775,760.35 in the previous period[53]. - The total amount of cash raised from financing activities was RMB 2,011,415,094.34, primarily from the issuance of new shares[27]. Shareholder Information - The company reported a total of 169,598 common shareholders at the end of the reporting period[12]. - The top shareholder, Dongyue Fluorosilicon Technology Group Co., Ltd., held 57.75% of the shares[12]. - Net assets attributable to shareholders were ¥4,148,747,149.81, up 96.83% from the previous year[8]. Research and Development - Research and development expenses increased by 65.83% to RMB 17,791,748.45 due to more R&D projects and increased investment[24]. - Research and development expenses for the current period are ¥17,791,748.45, an increase of 65.5% compared to ¥10,728,878.39 in the previous period[54]. Inventory and Accounts Receivable - Accounts receivable rose by 107.78% to RMB 72,737,998.96 as a result of extended credit terms to select customers[23]. - Inventory as of March 31, 2020, was CNY 226,025,340.47, compared to CNY 200,927,637.10 at the end of 2019[44]. - Accounts receivable increased to CNY 72,737,998.96 from CNY 35,007,040.25 year-over-year[44]. Challenges and Market Conditions - The company faced challenges due to the COVID-19 pandemic, which led to reduced demand for silicone products and impacted pricing[28]. Investment and Fund Management - The company has established a dedicated account for the use of raised funds, ensuring strict approval processes for fund usage[38]. - The cumulative investment in projects reached CNY 17,800.29 million, with a progress rate of 8.49% for the organic silicon monomer and downstream product deep processing project[36]. - There are no significant changes in the feasibility of investment projects during the reporting period[34]. Audit and Reliability - The company’s financial report for the first quarter was not audited, which may affect the reliability of the reported figures[70].