Financial Performance - The company's operating revenue for the first half of 2020 was CNY 472,840,454.01, representing a 14.50% increase compared to CNY 412,947,620.61 in the same period last year[19]. - The net profit attributable to shareholders was CNY 65,387,653.13, up 13.81% from CNY 57,455,286.77 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was CNY 63,529,213.48, reflecting a significant increase of 29.55% compared to CNY 49,039,378.21 in the previous year[19]. - The net cash flow from operating activities was CNY 87,175,702.19, an increase of 18.91% from CNY 73,309,733.56 in the same period last year[19]. - Basic earnings per share were CNY 0.70, a slight increase of 2.94% from CNY 0.68 in the same period last year[19]. - The weighted average return on equity was 7.66%, down from 10.38% in the previous year, indicating a decrease of 2.72%[19]. - The company reported a total of CNY 1,858,439.65 in non-recurring gains and losses during the reporting period[24]. - The company achieved historical highs in both sales volume and profit, despite facing challenges such as the global COVID-19 pandemic and increased competition[53]. - The company’s lactic acid sales volume increased significantly due to the impact of the ban on plastic and antibiotics, as well as product structure upgrades[66]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,703,034,231.23, a 40.40% increase from CNY 1,212,951,167.73 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 94.87% to CNY 1,247,072,473.33 from CNY 639,959,035.77 at the end of the previous year[20]. - The company's total liabilities decreased to CNY 420,292,118.29 from CNY 536,458,006.76, a reduction of approximately 21.7%[174]. - Owner's equity surged to CNY 1,282,742,112.94, up from CNY 676,493,160.97, reflecting an increase of around 89.3%[174]. - Cash and cash equivalents saw a substantial rise to CNY 433,383,126.17 from CNY 26,165,875.93, indicating a growth of over 1531%[176]. - Accounts receivable decreased to CNY 59,118,165, accounting for 3.47% of total assets, down by 2.62% from the previous year[82]. - Inventory increased to CNY 91,143,760, representing 5.35% of total assets, a decrease of 1.53% compared to the previous year[82]. - Fixed assets amounted to CNY 567,105,899, making up 33.30% of total assets, down by 13.51% from the previous year[82]. Research and Development - The company’s R&D investment rose to CNY 18.20 million, a 21.07% increase compared to the previous year[75]. - The company has established partnerships with universities for R&D in new products and processes, aiming to enhance the lactic acid industry chain[104]. - The company plans to increase R&D investment to optimize production processes, reduce costs, and launch new products to maintain its competitive advantage and market position[105]. Market and Products - The company is a high-tech enterprise focused on the research, production, and sales of lactic acid and its derivatives, with products sold in over 80 countries and regions globally[28]. - The main products include lactic acid, sodium lactate, and calcium lactate, widely used in food, feed, biodegradable materials, industrial applications, and pharmaceuticals[30]. - The company adopts a market-oriented production model, determining production plans based on customer demand and market conditions[44]. - The demand for biodegradable materials is expected to grow rapidly, driven by environmental policies and increasing consumer awareness, which will boost lactic acid consumption[55]. - The company has a production capacity of 128,000 tons of lactic acid and its derivatives, holding over 60% market share in the domestic market, positioning it as a leading enterprise in the industry[57]. Financial Management - The company has implemented a cost control system that rewards departments for lower material consumption and penalizes for exceeding set targets[48]. - The company plans to use idle raised funds for cash management, with a limit of 350 million RMB for investments in principal-protected financial products, which can be rolled over within 12 months[95]. - The company has not engaged in any major asset or equity sales during the reporting period[100][101]. - The company has not reported any changes in the use of raised funds or any issues related to the disclosure of raised funds[96][98]. Environmental Compliance - The company has implemented advanced anaerobic and aerobic biological treatment technologies for wastewater management, ensuring compliance with discharge standards[136]. - Total emissions of nitrogen oxides were recorded at 9.674 tons per year, with no exceedance of emission standards[135]. - The company adheres to strict environmental monitoring regulations and engages third-party testing for pollutant emissions[139]. - The company has established an emergency response plan for environmental incidents, registered with the local ecological environment bureau[138]. Shareholder Information - The company completed its initial public offering of 28.3 million shares, increasing total shares from 84,609,092 to 112,909,092[147]. - The earnings per share after the share issuance is reported at 0.98 RMB per share[150]. - As of June 30, 2020, the total number of common shareholders was 14,643[154]. - The largest shareholder, Zhang Peng, holds 32.69% of the shares, totaling 36,906,000 shares[154]. Miscellaneous - The company has not distributed cash dividends or bonus shares for the half-year period and does not plan to increase capital through reserves[112]. - There were no significant lawsuits or arbitration matters during the reporting period[117]. - The half-year financial report has not been audited[115]. - The company has not engaged in any major related party transactions during the reporting period[123].