Financial Performance - The company's revenue for the first quarter of 2021 was ¥246,685,994.38, representing a 49.74% increase compared to ¥164,742,770.55 in the same period last year[6]. - Net profit attributable to shareholders was ¥58,867,300.35, a significant increase of 120.22% from ¥26,731,243.29 year-on-year[6]. - The net profit after deducting non-recurring gains and losses was ¥57,895,172.21, up 112.98% from ¥27,183,884.52 in the previous year[6]. - The basic earnings per share increased to ¥0.39, reflecting a growth of 62.50% compared to ¥0.24 in the same period last year[6]. - The company's operating revenue for Q1 2021 was approximately ¥246.69 million, representing a 49.74% increase compared to ¥164.74 million in Q1 2020[21]. - The company achieved operating revenue of 246.686 million yuan, a year-on-year increase of 49.74%[25]. - Net profit attributable to shareholders reached 58.8673 million yuan, up 120.22% compared to the same period last year[25]. - The net profit after deducting non-recurring gains and losses was 57.8952 million yuan, reflecting a growth of 112.98% year-on-year[25]. - Operating profit for the current period was ¥68,780,448.65, compared to ¥32,632,618.58 in the previous period, representing a growth of about 110.6%[67]. - The company achieved a total profit of ¥68,431,940.45 for the current period, compared to ¥31,294,742.09 in the previous period, representing an increase of approximately 118.8%[67]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,342,532,693.12, a 1.70% increase from ¥2,303,332,450.80 at the end of the previous year[6]. - Current assets increased to ¥2,015,554,364.04 as of March 31, 2021, up from ¥1,981,202,483.55 on December 31, 2020, representing a growth of approximately 1.5%[52]. - Total liabilities decreased to ¥206,726,227.26 from ¥226,393,285.29, a reduction of about 8.7%[56]. - Total liabilities decreased from ¥222,138,824.50 to ¥205,976,923.88, reflecting a reduction of approximately 7.4%[62]. - Total equity increased from ¥2,087,120,087.08 to ¥2,144,023,675.24, marking a growth of about 2.7%[62]. - Total assets reached ¥2,342,532,693.12, compared to ¥2,303,332,450.80, showing an increase of approximately 1.7%[54]. - Total liabilities were reported at ¥222.14 billion, reflecting a decrease of ¥221.87 million[89]. - Total equity stood at ¥2,087.12 billion, unchanged from the previous reporting period[89]. Cash Flow - The net cash flow from operating activities was -¥13,179,652.72, which is a 162.16% increase in cash outflow compared to -¥5,027,343.52 in the same period last year[6]. - Cash flow from operating activities showed a net outflow of -13,179,652.72, worsening from -5,027,343.52 in the previous period[77]. - The company generated cash inflow from operating activities totaling 237,927,848.03, up from 135,675,660.56, marking an increase of approximately 75.4%[77]. - The net cash flow from financing activities was -5,461,702.01, an improvement from -23,139,703.86 in the prior year[78]. - The ending cash and cash equivalents balance was 1,534,544,880.43, up from 394,706,110.74, showing a substantial increase of approximately 288.5%[78]. - The company reported a significant increase in cash and cash equivalents, which may provide opportunities for future investments or acquisitions[83]. Research and Development - Research and development expenses increased by 106.05% to approximately ¥7.06 million in Q1 2021, up from ¥3.43 million in Q1 2020, indicating a significant investment in innovation[21]. - The company plans to increase R&D investment in 2021, focusing on the certification of composite agents and achieving breakthroughs in various product certifications[26]. Market Strategy - The company plans to continue expanding its market presence and enhancing product competitiveness, driven by increased domestic demand and import substitution trends[21]. - The company aims to maintain rapid sales growth domestically and achieve record exports, targeting strategic cooperation with international mainstream lubricant companies[26]. - The company plans to increase its focus on core market demands and expand both domestic and international markets[43]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,801[10]. - The largest shareholder, China Petroleum & Chemical Corporation, held 37.22% of the shares, amounting to 55,833,133 shares[10]. Risks and Compliance - The company faces risks related to the certification of composite products, raw material price fluctuations, and exchange rate volatility, with specific measures in place to mitigate these risks[29][30][31]. - The company has no violations regarding external guarantees during the reporting period[44]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[45]. Investment and Funding - The total amount of funds raised was RMB 113,475.00 million, with a net amount of RMB 104,183.36 million after deducting issuance costs[38]. - The company allocated RMB 13,000.00 million for the construction of a lubricating oil additive research center and RMB 3,500.00 million for the technical transformation project of producing 15,200 tons of lubricating oil additives annually[38]. - Cumulative investment in the lubricating oil additive research center project reached RMB 11.85 million, while the cumulative investment for permanent working capital was RMB 21,000.00 million[39]. - The total amount of oversubscribed funds was RMB 70,183.36 million[38]. - The company has achieved 100% of the planned investment for permanent working capital[39].

Financial Performance - The company's operating revenue for 2020 was ¥860,855,363.57, representing a 31.09% increase compared to ¥656,707,640.04 in 2019 [23]. - The net profit attributable to shareholders for 2020 was ¥182,864,707.88, an increase of 85.91% from ¥98,362,955.36 in 2019 [23]. - The net profit after deducting non-recurring gains and losses was ¥180,012,926.94, which is an 88.12% increase from ¥95,691,240.78 in 2019 [23]. - The net cash flow from operating activities for 2020 was ¥216,637,443.05, a significant increase of 293.23% compared to ¥55,092,297.37 in 2019 [23]. - The total assets at the end of 2020 were ¥2,303,332,450.80, a 140.52% increase from ¥957,649,780.83 at the end of 2019 [23]. - The net assets attributable to shareholders at the end of 2020 were ¥2,076,939,165.51, reflecting a 136.83% increase from ¥876,990,844.97 at the end of 2019 [23]. - The company achieved a basic earnings per share of ¥1.58 in 2020, up 53.40% from ¥1.03 in 2019 [23]. - The total profit for 2020 was 213.30 million yuan, representing a year-on-year growth of 86.82% [65]. - The company's gross profit margin increased from 31% to 35%, and the net profit margin rose from 15% to 21%, an increase of 6 percentage points [66]. Dividend Policy - The company plans to distribute a cash dividend of 8 RMB per 10 shares (including tax) based on a total of 150,000,000 shares [7]. - The total distributable profit available for shareholders was 350,619,222.14 RMB, with the cash dividend representing 100% of the profit distribution [138]. - The company's net profit attributable to shareholders for 2020 was 182,864,707.88 RMB, with a cash dividend payout ratio of 65.62% [143]. - In 2019, the company distributed a cash dividend of 2.2 RMB per 10 shares, totaling 24.75 million RMB, which was 25.16% of the net profit [142]. - The company has maintained a consistent cash dividend policy, with no stock dividends issued in the last three years [142]. Research and Development - The company is recognized as a national high-tech enterprise and has established multiple laboratories and testing centers for product development [33]. - The company holds 17 domestic invention patents and 3 foreign invention patents, with several more pending [33]. - The company has established a new R&D center with an investment of 135 million yuan to enhance its research capabilities [56]. - The company has a well-structured R&D team of 97 members, including 4 senior engineers, ensuring a robust innovation pipeline [54]. - The company has obtained 4 invention patents in 2020, marking significant breakthroughs in the research and development of industrial oils and specialty agents [66]. Market Position and Strategy - The main products include lubricant additives, which accounted for over 90% of sales revenue in 2020 [33]. - The company employs a direct sales model, avoiding distributors, and focuses on maintaining customer relationships through product quality and stable supply [37]. - The company has established a strict supplier management system to ensure the quality and stability of raw material supply, primarily using a "safety stock-based, sales-driven, production-based" procurement model [39]. - The competitive landscape of the lubricating oil additives industry is dominated by four major companies, controlling approximately 85% of the global market share [45]. - The company aims to replace imported lubricant additives with domestic products and expand into international markets, enhancing its competitive position [94]. Compliance and Governance - The company emphasizes the importance of risk factors and countermeasures in its annual report, urging investors to be cautious [6]. - The company has committed to ensuring the accuracy and completeness of its financial reports, with key personnel affirming this responsibility [5]. - The independent directors fulfilled their responsibilities in the decision-making process for the cash dividend distribution [137]. - The company has ensured that minority shareholders had the opportunity to express their opinions and that their rights were protected [137]. - The company has a clear and transparent process for adjusting or changing its cash dividend policy [137]. Risks and Challenges - The company faces risks related to the certification of composite products, with high costs and challenges in achieving API certification [130]. - Raw material price fluctuations and supply risks are a concern, with the company adopting a procurement model based on safety stock and production needs [131]. - The company exports nearly 40% of its products, exposing it to exchange rate risks, which it plans to mitigate through various strategies [132]. - Safety production risks are present due to the nature of the materials used, and the company emphasizes strict safety protocols and monitoring [133]. Investment and Capital Management - The company has committed to an investment project with a total investment amount of 34,000 million CNY, with a cumulative investment of 1,462.39 million CNY, achieving a progress rate of 4.30% as of December 31, 2022 [113]. - The total amount of raised funds is 71,500 million CNY, with 22,462.39 million CNY utilized so far [115]. - The company has utilized 60,000 million CNY of temporarily idle raised funds for cash management, ensuring liquidity [120]. - The total cash inflow from financing activities increased by 195.91% to approximately $1.06 billion, while cash outflow increased by 1.69% [99]. Subsidiaries and Expansion - The company established a new subsidiary, RICHFUL LUBE ADDITIVE (SINGAPORE) PTE. LTD., expanding its operational footprint [87]. - The subsidiary Shenyang Haorun Da Additive Co., Ltd. reported a net profit of 1,336,462 CNY, contributing significantly to the company's overall performance [124]. - The subsidiary Cangzhou Runfu Additive Co., Ltd. reported a net loss of 2,643,976.75 CNY, indicating challenges in its operations [126]. Compliance with Regulations - The company assures that the IPO application documents do not contain any false records or misleading statements, ensuring compliance with regulatory requirements [160]. - The company has established measures to ensure that no unfair benefits are provided to other entities or individuals [160]. - The company guarantees strict compliance with its articles of association, ensuring equal rights and obligations among shareholders [166]. - The company has made a legal commitment to compensate for any losses caused by violations of its commitments regarding fund occupations [166].