Financial Performance - The company's operating revenue for 2020 was ¥756,861,545.18, representing a 16.71% increase compared to ¥648,518,070.18 in 2019[17]. - The net profit attributable to shareholders for 2020 was ¥102,031,654.33, a 22.39% increase from ¥83,363,822.07 in 2019[17]. - The net cash flow from operating activities increased by 41.56% to ¥126,509,945.36 in 2020, compared to ¥89,367,404.18 in 2019[17]. - The total assets at the end of 2020 reached ¥1,038,382,907.11, a 134.09% increase from ¥443,582,321.90 at the end of 2019[17]. - The net assets attributable to shareholders increased by 201.20% to ¥783,027,809.96 at the end of 2020, compared to ¥259,973,464.13 at the end of 2019[17]. - The company reported a basic earnings per share of ¥1.79 for 2020, up 7.19% from ¥1.67 in 2019[17]. - The gross profit margin for 2020 was 21.60%, a decrease of 2.71 percentage points compared to 2019, but adjusted gross margin was 24.16%, nearly flat with 2019's 24.31%[42]. - The company reported a net profit of ¥43,155,219.32 in Q4 2020, showing significant growth compared to previous quarters[19]. Dividend Distribution - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total share capital of 66,670,000 shares as of December 31, 2020[4]. - The company reported a cash dividend of 13,334,000 CNY, representing 100% of the total distributable profit, with a distribution ratio of 2 CNY per 10 shares[98]. - The cash dividend distribution for 2020 represents 13.07% of the net profit attributable to ordinary shareholders, which was RMB 102,031,654.33[105]. - In 2019, the company distributed a cash dividend of RMB 4 per 10 shares, totaling RMB 20,000,000, which accounted for 23.99% of the net profit attributable to ordinary shareholders[101][105]. - The company has consistently provided dividends over the past three years, indicating a commitment to returning value to shareholders[105]. - The total cash dividends distributed over the last three years were RMB 43,334,000, reflecting a stable dividend policy[105]. Research and Development - The company focuses on the research, production, and sales of thermoplastic polyurethane elastomers (TPU), which are widely used in various industries[26]. - The company emphasizes advanced R&D technology and production processes to meet customized customer needs and market demands[26]. - The company has established a product manager system to enhance R&D efficiency, with performance evaluations conducted monthly and annually[27]. - R&D expenses rose by 35.92% to approximately ¥32.25 million, representing 4.26% of total operating revenue, driven by new product development[61]. - The company filed for 6 international invention patents and 9 domestic invention patents in 2020, along with 14 international trademarks and 8 domestic trademarks[42]. - The number of R&D personnel increased to 61, accounting for 23.46% of the total workforce[63]. Market Position and Strategy - The company focuses on differentiated technology innovation, providing customized products to meet diverse customer needs in the TPU market[34]. - The company has successfully established a stable cooperation with benchmark customers in various application fields, enhancing its market influence and profitability[28]. - The TPU industry in China is experiencing rapid growth, with the company positioned to compete directly with foreign firms in the mid-to-high-end market[30]. - The company’s marketing strategy combines distribution and direct sales, enhancing market penetration and brand influence while reducing marketing costs[28]. - The company aims to enhance its core competitiveness by focusing on differentiated and customized TPU products, targeting to replace imported materials and increase domestic production rates[89]. Risks and Challenges - The company faces risks including fluctuations in raw material prices, intensified market competition, environmental protection risks, and rising labor costs[4]. - The average procurement price of raw material A increased by approximately 16% in the second half of 2020 compared to the first half[46]. - The competitive landscape in the TPU industry is intensifying, necessitating continuous innovation and efficiency improvements to meet mid-to-high-end market demands[92]. - Labor costs are rising due to diminishing demographic dividends, prompting the company to invest in automation to mitigate the impact on profitability[94]. Corporate Governance and Compliance - The company has a commitment to ensuring the accuracy and completeness of its financial reports, as stated by the responsible executives[3]. - The company maintained a governance structure involving the shareholders' meeting, board of directors, and supervisory board to protect the rights of shareholders and creditors[147]. - The company has established a fundraising management system to ensure that raised funds are used effectively for intended projects[118]. - The company has implemented changes in accounting policies in accordance with the new revenue recognition standards, effective from January 1, 2020[121]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[120]. Environmental and Social Responsibility - The company is committed to environmental sustainability, having established an environmental management system and achieved ISO14001:2015 certification, while also addressing potential waste emissions[93]. - The company has made significant contributions to community support during the pandemic, including donations of protective materials and financial aid to local medical institutions[151]. - The company has established a scholarship program to support underprivileged students, promoting social responsibility and community engagement[151]. - The company is committed to environmental protection and has implemented various measures to prevent pollution and promote sustainable practices[156]. Shareholder Commitments and Stock Management - The company has a lock-up period for major shareholders, preventing them from transferring shares for a specified duration post-IPO[107]. - The company will extend the lock-up period by at least six months if the stock price falls below the issuance price for 20 consecutive trading days[108]. - The company plans to limit annual share reductions to no more than 5% of the total share capital during the two years following the lock-up period[109]. - The company will conduct cash dividends annually after the shareholders' meeting, based on its profit status and funding needs[111]. - The company commits to compensating losses to investors if it fails to fulfill its share reduction commitments under specific circumstances[110]. Employee and Management Structure - The company employed a total of 260 staff, with 135 in production, 26 in sales, 61 in technical roles, 4 in finance, and 34 in administration[195][196]. - The educational background of employees includes 40 with master's degrees or above, 90 with bachelor's degrees, 54 with associate degrees, and 76 with vocational or lower education levels[196]. - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to 5.2807 million yuan[193]. - The company emphasizes a performance-oriented compensation system to maintain market competitiveness and internal fairness[197].

Financial Performance - Operating revenue for the quarter was ¥229,883,184.42, up 33.71% from the same period last year[8] - Net profit attributable to shareholders was ¥21,840,792.95, representing a 15.64% increase year-over-year[8] - Total operating revenue for Q3 2020 was CNY 229,883,184.42, an increase of 33.7% compared to CNY 171,928,795.56 in Q3 2019[39] - Net profit for Q3 2020 reached CNY 21,840,792.95, representing a growth of 15.4% from CNY 18,886,384.66 in Q3 2019[39] - Total operating revenue for the period reached ¥508,220,970.65, an increase of 13.2% compared to ¥449,058,725.97 in the previous period[41] - Net profit for the period was ¥58,876,435.01, representing a growth of 12.4% from ¥52,020,218.11 in the same period last year[43] Assets and Liabilities - Total assets increased to ¥944,579,907.07, a growth of 112.94% compared to the end of the previous year[8] - Current assets totaled CNY 750,789,437.83 as of September 30, 2020, compared to CNY 259,594,395.25 at the end of 2019, indicating a significant increase[34] - The company's total assets reached CNY 944,579,907.07, a substantial increase from CNY 443,582,321.90 at the end of 2019[37] - The total liabilities amounted to CNY 204,707,316.43, compared to CNY 183,608,857.77 at the end of 2019, showing a growth of 11.9%[36] - The total assets amounted to 443,582,321.90 CNY, with total liabilities at 183,608,857.77 CNY, resulting in total equity of 259,973,464.13 CNY[54] Shareholder Information - Net assets attributable to shareholders reached ¥739,872,590.64, reflecting a 184.60% increase year-over-year[8] - The company had a total of 66,670,000 shares outstanding as of the last trading day before the report[8] - The top shareholder, Wang Renhong, holds 38.85% of the shares, totaling 25,901,000 shares[12] - The company reported no changes in share capital due to new stock issuance or other reasons affecting equity[8] Cash Flow - Net cash flow from operating activities surged to ¥50,329,076.90, a dramatic increase of 1,093.47% compared to the previous year[8] - Net cash flow from operating activities decreased by 87.57% to ¥4,896,507.73, primarily due to increased cash payments for inventory[23] - The net cash flow from financing activities surged by 4,190.69% to ¥440,757,817.00, attributed to funds raised from the public offering[23] - The total cash and cash equivalents at the end of the period decreased to 74,965,249.09 CNY from 117,266,615.60 CNY at the beginning of the period[48] Expenses - Total operating costs for Q3 2020 were CNY 202,885,479.97, up 35.8% from CNY 149,349,398.72 in the same period last year[39] - Research and development expenses for Q3 2020 were CNY 9,066,954.24, an increase of 36% from CNY 6,673,292.55 in Q3 2019[39] - Research and development expenses increased to ¥19,343,526.61, up from ¥16,609,446.00, indicating a growth of 10.5%[41] - Sales expenses dropped by 67.75% to ¥5,362,453.15, as shipping costs were reclassified under operating costs[21] - Sales expenses decreased significantly to ¥5,362,453.15 from ¥16,627,442.09, a reduction of 67.8%[41] Legal and Regulatory - The company received a favorable ruling from the Düsseldorf District Court, dismissing BASF's patent infringement claims[24] - The company has implemented new revenue and leasing standards starting from 2020, requiring adjustments to the financial statements[49] - The company did not conduct an audit for the third-quarter report, which remains unaudited[55]

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2020, representing a year-on-year increase of 15%[15]. - The company's operating revenue for the reporting period was ¥278,337,786.23, representing a 0.44% increase compared to the same period last year[22]. - The net profit attributable to shareholders was ¥37,035,642.06, reflecting an 11.78% increase year-over-year[22]. - The net profit after deducting non-recurring gains and losses was ¥35,138,527.61, which is an 8.01% increase compared to the previous year[22]. - The company's revenue for the reporting period was ¥278,337,786.23, representing a year-on-year increase of 0.44% compared to ¥277,129,930.41 from the previous year[52]. - The company's operating costs increased by 2.54% to ¥216,505,188.22 from ¥211,136,056.06 in the previous year[53]. - The company reported a net cash increase of -¥36,047,465.26, a decrease of 420.57% compared to the previous year's increase of ¥11,244,753.92[53]. - The net cash flow from operating activities was -¥45,343,352.07, a significant decrease of 228.88% compared to the same period last year[22]. Market and Growth Strategy - User data indicates a 20% increase in active customers, reaching 1 million by the end of June 2020[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2021[15]. - Future guidance estimates a revenue growth of 12% for the second half of 2020, driven by increased demand in the automotive sector[15]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[15]. Research and Development - The company has allocated RMB 50 million for R&D in new technologies, focusing on sustainable materials[15]. - New product development includes a line of eco-friendly polyurethane materials, expected to launch in Q4 2020[15]. - The company focuses on the R&D, production, and sales of TPU products, which are expected to have a significant market capacity due to their eco-friendly and versatile properties[30]. - The company has established a product manager system to enhance R&D efficiency and align product development with market demands[31]. - Research and development expenses rose by 3.43% to ¥10,276,572.37, up from ¥9,936,153.45 in the previous year[53]. Financial Position - The total assets at the end of the reporting period were ¥476,032,401.41, marking a 7.32% increase from the end of the previous year[22]. - The net assets attributable to shareholders increased by 14.25% to ¥297,009,106.19 compared to the previous year[22]. - The company's total assets reached CNY 476,032,401.41, with net assets of CNY 297,009,106.19 as of the reporting period[46]. - The company's cash and cash equivalents decreased from 154,218,115.60 yuan to 104,287,150.34 yuan, a decline of approximately 32.4%[127]. Inventory and Cash Flow - The inventory amount at the end of the period increased by 106.40% compared to the end of 2019, due to strategic stockpiling[37]. - The cash flow from operating activities showed a significant decline of 228.88%, resulting in a net cash flow of -¥45,343,352.07 compared to ¥35,182,457.16 in the previous year[53]. - The total cash and cash equivalents decreased by 36,047,465.26 CNY in the first half of 2020, contrasting with an increase of 11,244,753.92 CNY in the same period of 2019[139]. Risks and Challenges - Risks identified include fluctuations in raw material prices and increased competition, with strategies in place to mitigate these risks[5]. - The company faces risks from raw material price fluctuations and intensified market competition, particularly in the TPU industry[70][71]. - Rising labor costs are a concern, prompting the company to invest in smart manufacturing systems to enhance automation and mitigate the impact of wage increases[73]. Shareholder Information - The total number of shares after the recent changes is 50,000,000, with 75.75% being limited shares[105]. - The largest shareholder, Wang Renhong, holds 25,901,000 shares, which is 51.80% of the total[107]. - The number of limited shares held by domestic natural persons is 30,375,750, accounting for 60.75% of the total[105]. Corporate Governance - The financial report for the first half of the year was not audited[125]. - There were no significant litigation or arbitration matters during the reporting period[83]. - The company has not engaged in any major related party transactions during the reporting period[86]. - The company has not conducted any asset or equity acquisitions or sales during the reporting period[87]. - The company has not implemented any employee incentive plans during the reporting period[85]. Environmental and Regulatory Compliance - The company has passed environmental assessments and established an environmental management system certified by ISO 14001:2015, but faces potential increased costs due to stricter environmental regulations[72]. - The company has not faced any penalties or corrective actions related to environmental regulations during the reporting period[99].