Financial Performance - The company reported a significant increase in revenue for the first half of 2021, with total revenue reaching RMB 500 million, representing a year-on-year growth of 25%[15]. - The company's revenue for the reporting period was approximately ¥237.77 million, representing a 27.99% increase compared to ¥185.77 million in the same period last year[21]. - Future guidance indicates a target revenue growth of 20% for the second half of 2021, driven by increased demand for its innovative materials[15]. - The net profit attributable to shareholders decreased by 10.11% to approximately ¥53.86 million, down from ¥59.92 million in the previous year[21]. - The total assets at the end of the reporting period were approximately ¥1.44 billion, an increase of 11.04% from ¥1.30 billion at the end of the previous year[22]. - The company's basic earnings per share decreased by 32.50% to ¥0.54, down from ¥0.80 in the previous year[21]. - The company reported a total comprehensive income of CNY 52,655,331.62, down from CNY 60,277,135.83 in the previous year[164]. - The total profit for the first half of 2021 was CNY 48,411,887.23, down from CNY 57,285,397.61 in the first half of 2020, reflecting a decrease of approximately 15.5%[167]. Cost and Profitability - The gross profit margin for the first half of 2021 was 30%, compared to 28% in the same period last year, indicating improved cost management and pricing strategies[15]. - The company's operating costs rose to ¥145,650,235.37, a 53.56% increase, mainly driven by rising raw material prices and adjustments in freight costs under new revenue standards[53]. - The weighted average return on net assets decreased to 4.71%, down from 14.38% in the previous year, indicating a decline in profitability[21]. - Research and development expenses increased by 36.97% to ¥9,092,739.50, reflecting the company's commitment to enhancing new product performance and expanding R&D activities[53]. - The gross profit margin for the rubber and plastic products sector decreased by 10.21% to 38.74% compared to the previous year[56]. Investment and Expansion - The company plans to expand its production capacity in Vietnam, although there are risks associated with the pandemic affecting the expansion timeline[4]. - The company is expanding its IXPE product production capacity, with ongoing projects including a smart storage center and a research and development center[74]. - The total investment during the reporting period reached ¥687,049,386.60, a substantial increase of 821.75% compared to ¥74,537,283.41 in the same period last year[63]. - The company plans to increase production capacity by 16 million square meters annually through the IXPE automation project[69]. - The company is entering the maternal and infant industry with a new high-rebound GFOAM product, targeting a growing market for high-end eco-friendly baby activity mats[36]. Risks and Challenges - The company faces several risks, including fluctuations in raw material prices and increased market competition, which could impact future performance[4]. - The company acknowledges the risk of declining net asset return rates due to the significant increase in net asset scale from fundraising activities[86]. - The company faces risks related to the COVID-19 pandemic affecting its subsidiary in Vietnam, which has led to production delays[83]. - The company’s customer concentration is high, primarily in the home decoration sector, which poses risks if market conditions change[85]. - The company has implemented safety measures in its production processes but still faces potential safety risks due to operational complexities[86]. Research and Development - The company is actively developing new products, particularly in the IXPE foam material segment, which is expected to drive future revenue growth[15]. - The company has established a comprehensive R&D system to develop non-toxic, environmentally friendly polymer foam materials based on market demand and industry trends[31]. - The company has developed 93 patented technologies, including 34 invention patents, positioning it as a leader in the industry[48]. - The company collaborates with academic institutions and research organizations to enhance its technological capabilities and align R&D with market needs[32]. - The company continues to focus on product customization and differentiation to meet unique customer demands through various post-processing techniques[29]. Market Position and Strategy - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the new materials sector[4]. - The company specializes in the research, development, production, and sales of non-toxic, environmentally friendly high polymer foam plastics, with its main product being IXPE foam plastic[42]. - The company benefits from favorable national policies that encourage the development of high-performance materials, providing a supportive regulatory environment for growth[35]. - The chemical new materials industry is recognized as the fastest-growing and most promising direction for transformation and upgrading in China's chemical industry[39]. - The company focuses on direct sales without a distribution model, prioritizing high-quality customers to optimize resource allocation[31]. Financial Management - No cash dividends or stock bonuses will be distributed to shareholders for this period, as the company focuses on reinvestment for growth[5]. - The company has not reported any changes in its accounting data under international or domestic accounting standards during the reporting period[23][24]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[99]. - The company is committed to environmental protection, managing solid waste according to regulations, and ensuring compliance with environmental laws[105]. - The company has not reported any unfulfilled commitments by actual controllers, shareholders, or related parties during the reporting period[108]. Shareholder Information - The total share count of the company is 100 million, with a 1.29% reduction in restricted shares due to the lifting of lock-up on 1,289,356 shares[134]. - The total number of ordinary shareholders at the end of the reporting period was 8,769[139]. - Zhang Pao holds 41.16% of the shares, totaling 41,163,754 shares, with no changes during the period[139]. - The company has no plans for share repurchase or reduction during the reporting period[136]. - The total number of restricted shares at the end of the period was 75,000,000, with 1,289,356 shares released during the period[137].

Financial Performance - The company's revenue for Q1 2021 was ¥106,682,724.42, representing a 40.69% increase compared to ¥75,825,640.18 in the same period last year[8] - Net profit attributable to shareholders was ¥26,442,206.33, a slight increase of 1.30% from ¥26,101,896.93 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥23,399,534.78, up 4.66% from ¥22,358,652.33 in the previous year[8] - Basic and diluted earnings per share decreased by 25.71% to ¥0.26 from ¥0.35 year-on-year[8] - The weighted average return on equity was 2.32%, down 4.21% from 6.53% in the previous year[8] - The company reported a cumulative investment of CNY 124.02 million in fundraising projects, including CNY 63.04 million in self-raised funds that are expected to be replaced by raised funds[25] - The company has not reported any significant changes in net profit or losses compared to the previous year, indicating stability in financial performance[26] Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥4,784,418.03, a decline of 112.88% compared to ¥37,135,156.16 in the same period last year[8] - The company's cash and cash equivalents decreased by 158.70% to 27.65 million yuan, primarily due to increased short-term borrowings and reduced cash outflows for fixed asset purchases[18] - Cash flow from operating activities showed a net outflow of CNY 4,784,418.03, a significant decrease from a net inflow of CNY 37,135,156.16 in the previous year[51] - The ending balance of cash and cash equivalents was 667,348,395.59 CNY, significantly higher than 33,382,527.61 CNY at the end of the previous period[55] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,375,410,175.12, an increase of 6.19% from ¥1,295,276,834.47 at the end of the previous year[8] - Total current liabilities increased to CNY 197.60 million from CNY 142.54 million, representing a significant rise of about 38.6%[35] - The company's total liabilities were CNY 277,141,378.04, up from CNY 204,804,081.60 in the previous year, indicating an increase of about 35.2%[39] Inventory and Costs - Inventory levels surged by 62.66% to 62.12 million yuan, attributed to strategic stockpiling of raw materials in anticipation of price increases[17] - The company’s gross profit margin was impacted by a 57.43% rise in operating costs, totaling 64.12 million yuan, due to increased sales and material prices[17] - The total operating costs for Q1 2021 were CNY 76,752,638.10, up from CNY 48,816,838.79 in the previous year, indicating a rise of about 57.2%[42] - Raw material costs accounted for approximately 60% of production costs, with significant risks from price fluctuations impacting operating performance[21] Research and Development - The company's R&D expenses rose to 3.67 million yuan, reflecting a 51.34% increase year-on-year, driven by efforts to enhance new product performance and expand R&D activities[18] - Research and development expenses for Q1 2021 were CNY 3,670,219.60, compared to CNY 2,425,137.04 in the same period last year, reflecting an increase of approximately 51.3%[42] Customer and Market Dynamics - The top five customers generated sales revenue of 77.1 million CNY, representing 72.27% of total revenue, indicating a high customer concentration risk[21] - The company has established long-term stable relationships with downstream clients, mitigating the impact of U.S. tariffs on exports, but remains vigilant regarding international trade tensions[21] - The company is actively exploring new markets and developing new products to reduce reliance on existing customers and enhance profitability[21] Funding and Investments - Total raised funds amounted to 67.325 million CNY, with 6.098 million CNY invested in the current quarter and a cumulative investment of 12.402 million CNY[23] - The company plans to utilize up to CNY 50.00 million of idle raised funds for cash management, with a maximum single investment term of 12 months[25] Management and Governance - The company has not reported any non-compliance issues regarding the management and use of raised funds, ensuring transparency and adherence to regulations[25] - The company has engaged in multiple investor communications, including site visits and discussions with various financial institutions, to enhance transparency and investor relations[29]

Dividend Distribution - The company plans to distribute a cash dividend of 4 RMB per 10 shares to all shareholders, based on a total of 100,000,000 shares [4]. - The company distributed a cash dividend of RMB 40 million for the fiscal year 2020, amounting to RMB 4 per 10 shares, which represents 31.51% of the net profit attributable to ordinary shareholders [129][133]. Financial Performance - The company's operating revenue for 2020 was CNY 434,124,746.99, representing an increase of 18.95% compared to 2019 [18]. - The net profit attributable to shareholders for 2020 was CNY 126,952,267.89, a growth of 9.60% year-over-year [18]. - The net cash flow from operating activities decreased by 25.40% to CNY 84,335,420.91 in 2020 [18]. - The total assets at the end of 2020 reached CNY 1,295,276,834.47, a significant increase of 167.95% from the previous year [18]. - The company's basic earnings per share for 2020 was CNY 1.69, up 9.74% from CNY 1.54 in 2019 [18]. - The company reported a weighted average return on equity of 28.25% for 2020, down from 35.18% in 2019 [18]. - The company's total operating revenue for 2020 was CNY 434,124,746.99, representing an 18.95% increase compared to CNY 364,968,021.05 in 2019 [73]. Risks and Challenges - The company acknowledges significant risks including management risks from expansion, market demand fluctuations, and raw material price volatility [4]. - The report emphasizes the importance of investor awareness regarding potential risks associated with the company's future development strategies [4]. - The company has a high customer concentration risk, which could impact its financial stability [4]. - The company faces risks related to market demand fluctuations, particularly in the PVC flooring manufacturing sector, which could impact its performance [115]. - The company acknowledges potential risks from international trade tensions, particularly with the U.S., which could affect its export business [117]. - Raw material costs account for approximately 60%-70% of production costs, making the company vulnerable to fluctuations in prices of key materials like LDPE and additives [120]. - The company has implemented strict safety protocols in its production processes, but risks remain due to potential equipment failures and natural disasters [121]. Research and Development - The company has established a comprehensive R&D system to meet market demands and industry trends [33]. - The company collaborates with universities and research institutions to enhance its technological capabilities and product development [33]. - The company is developing a new 3D waterproof film for automotive interiors, which is in the promotion and improvement stage [87]. - The company is also working on a flame-retardant and smoke-suppressing foam material, currently in the promotion and improvement stage [87]. - The company has several ongoing R&D projects aimed at enhancing product performance and expanding market applications [87]. - In 2020, the company's R&D investment amounted to ¥15,834,659.28, representing 3.65% of total revenue, an increase from 3.24% in 2019 [88]. - The company has established a stable R&D team and is focusing on expanding into the baby products market with new high-rebound IXPE products [66]. Market Position and Strategy - The company is focused on expanding its market presence and enhancing its product offerings through new technologies [13]. - The company is positioned to compete with world-class enterprises in specific product and market areas, reflecting an increase in industry influence [45]. - The company is focused on developing advanced basic materials with stable supply and certain export capabilities by 2020, and plans to achieve significant breakthroughs in frontier new materials by 2025 [43]. - The company aims to achieve a self-sufficiency rate of over 70% for key strategic materials by 2020, with a goal to exceed 85% by 2025 [43]. - The company is focused on expanding its market share in the environmentally friendly foam materials sector, driven by increasing demand and government support [112]. - The company plans to enhance its research and development efforts to maintain a competitive edge in the IXPE product market [113]. Operational Efficiency - The company has undergone a comprehensive review by the board, ensuring the accuracy and completeness of the financial report [3]. - The financial report is confirmed to be true, accurate, and complete by the company's responsible personnel [3]. - The company maintains stable and transparent pricing for raw materials, with no risk of material shortages [36]. - The production model combines sales-driven production and demand forecasting to align production plans with sales orders and market demand [32]. - The company has a design capacity of 133.25 million square meters for IXPE products, with a capacity utilization rate of 79.53% [68]. - The company plans to increase production capacity by 16 million square meters through an automation upgrade project and an additional 10 million square meters through expansion projects [65]. Shareholder and Governance Commitments - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, with a lock-up period extending until December 25, 2023 [135]. - The company will comply with relevant regulations regarding share reduction by shareholders and senior management [137]. - The controlling shareholder has committed to not transferring shares for six months after resignation, with a similar six-month restriction if they resign before the end of their term [137]. - The company will not repurchase shares that were issued prior to the IPO for 12 months from the date of listing [138]. - The company will strictly adhere to its commitments regarding the lock-up period and transfer of shares [139]. - The company guarantees that no related party transactions will occur unless unavoidable, adhering to fair pricing principles [143]. Compliance and Integrity - The company has maintained a good integrity status, with no instances of failing to repay large debts or being publicly reprimanded by regulatory authorities [155]. - The company has not faced any bankruptcy reorganization or delisting situations during the reporting period [152][159]. - The company has not reported any significant safety incidents or violations during the reporting period, emphasizing its commitment to safety management [179]. - The company has actively fulfilled its social responsibilities, including employee health protection and environmental governance [172][176]. - The company has not disclosed any other significant matters during the reporting period [180].