Financial Performance - The company's operating revenue for the first half of 2021 was CNY 348,510,895.40, representing a 65.14% increase compared to CNY 211,040,717.56 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 40,864,166.08, up 36.26% from CNY 29,989,708.84 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 39,114,950.56, reflecting a 40.99% increase from CNY 27,743,489.77 in the same period last year[23]. - The basic earnings per share for the reporting period was CNY 0.5095, a slight increase of 2.19% compared to CNY 0.4986 in the previous year[23]. - The company achieved operating revenue of 348.51 million yuan, a year-on-year increase of 65.14%[43]. - The net profit attributable to shareholders reached 40.86 million yuan, up 36.26% compared to the same period last year[43]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 39.12 million yuan, reflecting a growth of 40.99% year-on-year[43]. - Operating profit for the first half of 2021 was ¥46,208,234.48, up 40.2% from ¥32,941,090.86 in the first half of 2020[144]. - The total profit for the first half of 2021 was ¥48,088,350.27, up 35.8% from ¥35,389,391.66 in the first half of 2020[144]. Cash Flow and Financial Position - The net cash flow from operating activities was negative CNY 31,991,955.48, a decline of 184.39% compared to a positive CNY 37,911,341.08 in the same period last year[23]. - The company's cash flow from investing activities decreased by 53.21% to -5,311,614.09 CNY due to reduced engineering project expenditures[45]. - Cash flow from financing activities decreased by 115.38% to -49,014,866.00 CNY as the company reduced borrowing scale and repaid due short-term and long-term loans[45]. - The net increase in cash and cash equivalents was -86,501,023.01 CNY, a significant decrease compared to the previous period[45]. - Cash received from sales of goods and services in the first half of 2021 was ¥247,326,316.02, an increase from ¥212,008,875.08 in the first half of 2020[148]. - The ending balance of cash and cash equivalents was CNY 198.40 million, down from CNY 68.20 million at the end of the previous year[150]. - The cash and cash equivalents net increase was negative CNY 86.73 million, contrasting with a positive increase of CNY 8.96 million in the previous year[154]. Assets and Liabilities - Total assets decreased by 7.10% to CNY 707,106,298.71 compared to the previous period[24]. - The company's total assets as of June 30, 2021, were CNY 707,106,298.71, down from CNY 761,139,421.79, a decrease of approximately 7.09%[137]. - Total liabilities decreased to CNY 145,751,376.00 from CNY 223,806,665.16, reflecting a reduction of about 34.92%[136]. - The company's short-term borrowings decreased by 75% to 5,000,000.00 CNY, reflecting a strategy to reduce debt[51]. - The total equity attributable to shareholders increased to CNY 561,354,922.71 from CNY 537,332,756.63, marking an increase of about 4.47%[137]. Production and Capacity - The production capacity of polyoxymethylene increased from 45,000 tons to 80,000 tons, and formaldehyde capacity increased from 280,000 tons to 400,000 tons[36]. - The company focuses on high-end specialty fine chemicals derived from methanol, with products used in various industries including resins, adhesives, and pesticides[32]. - The company’s main product, granular polyoxymethylene, is recognized for its wide application and high customer acceptance[36]. - The company’s production model is based on sales-driven production, allowing for dynamic adjustments based on market conditions[35]. Research and Development - The company increased its R&D investment to 11.60 million yuan, a rise of 57.31% due to the commissioning of the 35,000-ton polyformaldehyde project[44]. - The company has obtained 9 invention patents and 37 utility model patents, with 8 invention patents and 5 utility model patents pending acceptance[39]. - The company is focusing on the development of high-end and environmentally friendly new products to enhance its competitive advantage[39]. Environmental and Safety Management - The company emphasizes safety production and environmental protection, enhancing green and energy-saving production levels[36]. - Environmental protection facilities are operating normally, and all pollutants are being discharged within the established standards[83]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[82]. - The company has obtained environmental impact assessments and necessary permits for all construction projects[84]. - The company is enhancing its safety and environmental management practices in response to stricter regulatory requirements in the chemical industry[73]. Risks and Challenges - The company faces risks including environmental and safety issues, intensified industry competition, and macroeconomic fluctuations[6]. - The company is facing risks from macroeconomic fluctuations, including impacts from COVID-19, trade tensions, and geopolitical factors, which may affect profitability[71]. - Raw material costs, particularly methanol and hydrochloric acid, significantly influence the company's production costs, necessitating close monitoring of price trends[72]. - The competitive landscape in the fine chemical industry is intensifying, prompting the company to focus on product innovation and process optimization to strengthen its market position[73]. Corporate Governance and Shareholder Information - The company has established a modern corporate governance system to enhance governance levels and protect the rights of all shareholders, especially minority shareholders[86]. - The total number of shares increased from 60.15 million to 80.20 million after the IPO on January 7, 2021[118]. - The largest shareholder, Nantong Industrial Holdings Group Co., Ltd., holds 37.53% of the shares[120]. - The company has experienced changes in its board of directors, with new appointments aimed at ensuring effective governance and operational management[77]. Miscellaneous - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company has not made any adjustments or restatements to previous years' accounting data[23]. - The company has not made any changes to the fundraising projects during the reporting period[64]. - The company did not engage in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[65][66][67]. - There were no significant lawsuits or arbitration matters during the reporting period[95].

Financial Performance - The company's revenue for Q1 2021 was CNY 172,072,613.51, representing a 63.16% increase compared to CNY 105,461,681.82 in the same period last year[9] - Net profit attributable to shareholders was CNY 21,589,671.96, up 69.28% from CNY 12,753,930.76 year-on-year[9] - The net profit after deducting non-recurring gains and losses was CNY 19,930,029.10, reflecting a 67.38% increase from CNY 11,907,313.35 in the previous year[9] - The basic earnings per share increased by 26.98% to CNY 0.2692 from CNY 0.2120 in the same period last year[9] - The total profit for Q1 2021 was CNY 25,441,031.63, which is a 69.0% increase compared to CNY 15,042,037.17 in Q1 2020[48] - Operating profit for Q1 2021 was CNY 23,575,562.80, an increase of 67.9% from CNY 14,047,022.69 in the same quarter last year[48] Assets and Liabilities - The company's total assets decreased by 2.24% to CNY 744,096,907.80 from CNY 761,139,421.79 at the end of the previous year[9] - The total liabilities decreased to CNY 185,366,082.68 from CNY 223,475,420.85 at the end of 2020, indicating a reduction of approximately 16.9%[43] - Cash and cash equivalents decreased from 284,897,171.62 to 243,712,937.18, a decline of approximately 14.5%[37] - Accounts receivable increased from 57,886,583.59 to 65,201,657.48, reflecting an increase of about 12.8%[37] - Inventory rose from 31,558,981.69 to 33,707,699.73, indicating an increase of approximately 6.8%[37] - Short-term borrowings decreased from 20,000,000.00 to 10,000,000.00, a reduction of 50%[38] - Accounts payable decreased from 92,914,427.13 to 72,422,026.46, a decline of approximately 22.1%[38] Cash Flow - The net cash flow from operating activities was negative at CNY -17,092,173.12, a decline of 574.61% compared to CNY 3,601,300.92 in the same period last year[9] - Cash flow from operating activities showed a net outflow of 17.09 million yuan, a decrease of 2,069.35 million yuan compared to the previous year[21] - The company reported a cash flow from operating activities of CNY -17,092,173.12 for Q1 2021, compared to CNY 3,601,300.92 in Q1 2020, indicating a significant decline[55] - The company incurred cash outflows from investing activities amounting to CNY 3,822,952.99, compared to CNY 5,270,848.71 in the previous period[59] - Cash outflows from financing activities totaled CNY 20,135,336.11, which is an increase from CNY 11,531,913.34 in the prior period[60] Operating Costs and Expenses - The company’s operating costs amounted to 134.21 million yuan, with a significant increase attributed to rising raw material prices and increased production capacity[20] - Total operating costs for Q1 2021 were CNY 148,119,067.44, up 62.5% from CNY 91,150,635.59 in Q1 2020[46] - Sales expenses rose to 2.27 million yuan, up 128.89% due to increased performance bonuses for sales personnel and higher storage costs[20] - The company reported a financial expense of 1.82 million yuan, a 146.72% increase primarily due to interest expenses from long-term borrowings[20] - The company incurred financial expenses of CNY 1,834,969.19 in Q1 2021, which is an increase from CNY 753,390.52 in Q1 2020, primarily due to higher interest expenses[50] Investment and Strategic Plans - The company plans to optimize the use of raised funds to enhance operational efficiency and align with long-term strategic goals[25] - Total raised funds amounted to 22,847.78 million, with 3,372.7 million invested in the current quarter[28] - Cumulative investment from raised funds reached 3,372.7 million, with no changes in usage reported[28] - The company reported no significant changes in the feasibility of investment projects during the reporting period[31] Shareholder Information - The company has not engaged in any repurchase transactions among the top 10 shareholders during the reporting period[14] - The company’s top five suppliers accounted for 73.00% of total raw material and energy procurement, a decrease from 79.15% in the previous year[23] - The top five customers contributed 35.13% of total sales, slightly down from 35.47% in the same period last year[23] Research and Development - Research and development expenses for Q1 2021 were CNY 1,455,260.59, compared to CNY 1,138,233.70 in Q1 2020, reflecting a growth of 28.0%[46] - Research and development expenses for Q1 2021 were CNY 1,455,260.59, up from CNY 1,138,233.70 in the previous year, reflecting a focus on innovation[50] Miscellaneous - There were no violations of external guarantees or non-operating fund occupation by major shareholders during the reporting period[32] - The impact of exchange rate changes on cash and cash equivalents was negative CNY 87,042.22, compared to a positive impact of CNY 39,591.13 in the previous period[60] - The company did not adjust the initial balance sheet items for the new leasing standards, as the leasing activities pertained to short-term leases[61]

Financial Performance - The company's operating revenue for 2020 was ¥437,705,981.44, a decrease of 12.46% compared to ¥499,997,157.85 in 2019[16]. - The net profit attributable to shareholders for 2020 was ¥55,005,268.81, representing a 2.36% increase from ¥53,736,284.99 in 2019[16]. - The net profit after deducting non-recurring gains and losses was ¥52,457,417.16, up by 2.30% from ¥51,276,744.71 in the previous year[16]. - The basic earnings per share for 2020 was ¥0.9145, an increase of 2.36% compared to ¥0.8934 in 2019[16]. - Total assets at the end of 2020 reached ¥761,139,421.79, a significant increase of 47.62% from ¥515,601,359.39 at the end of 2019[16]. - The net assets attributable to shareholders increased by 101.19% to ¥537,332,756.63 from ¥267,082,649.87 in 2019[16]. - The company's cash flow from operating activities was ¥52,504,544.53, a decrease of 2.21% from ¥53,692,240.31 in the previous year[16]. - The weighted average return on equity for 2020 was 19.25%, down from 21.89% in 2019[16]. - The company reported a total of 2,547,851.65 in non-recurring gains and losses for the year 2020, which includes government subsidies and other income[21]. - The company achieved operating revenue of 437.706 million yuan in 2020, a decrease of 12.46% compared to the previous year[37]. - The net profit attributable to shareholders was 55.0053 million yuan, an increase of 2.36% year-on-year, with basic earnings per share of 0.9145 yuan, also up by 2.36%[37]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥2.1 per 10 shares, totaling approximately ¥16,842,000 based on 80,200,000 shares[6]. - The cash dividend for 2020 represents 100% of the total profit distribution amount, with no stock dividends or capital reserve transfers planned[108]. - The company has a clear and transparent cash dividend policy, ensuring the protection of minority shareholders' rights[107]. - In 2020, the cash dividend amount was $16,842,000, representing 30.62% of the net profit attributable to ordinary shareholders[112]. - The company plans to distribute cash dividends of no less than 20% of the distributable profit achieved in the year[116]. - The company commits to conducting cash dividends annually if certain conditions are met, including positive distributable profit and an unqualified audit report[116]. Market and Competitive Position - The company plans to enhance its market competitiveness by expanding production scale and extending its industrial chain in the methanol downstream processing sector[26]. - The company is focused on expanding market share through strategic marketing efforts and optimizing customer structure to reduce reliance on a few large clients[40]. - The company is positioned in the ecological and environmental protection fine materials chemical industry, focusing on new chemical materials and plant protection[47]. - The company is actively pursuing market expansion strategies to solidify its competitive edge in the fine chemical industry[96]. - The company aims to enhance its production capacity of polyoxymethylene to meet diverse customer needs and strengthen its market position as a leading producer[96]. Research and Development - The company holds 9 invention patents and 34 utility model patents, reflecting its commitment to innovation and technology development[33]. - The company is currently engaged in multiple R&D projects aimed at optimizing production processes and developing new products, which are expected to enhance overall competitiveness[68]. - The company has invested in technology upgrades and automation to improve production efficiency and maintain high-quality standards[39]. - The company plans to invest in new product development, particularly in high-end and environmentally friendly products, to adapt to market demands and extend its product range[97]. - The company is enhancing its research and development capabilities by establishing a leading technical research center and acquiring advanced equipment[97]. Environmental and Safety Management - The company emphasizes safety and environmental protection, having received multiple certifications for its operational standards[26]. - The company has implemented a safety management system covering all operational aspects, recognized as a "secondary enterprise for safety production standardization" by local authorities[154]. - The company has achieved stable emissions within regulatory limits for key pollutants, including CODcr at 15.103039 tons and ammonia nitrogen at 1.98 tons[158]. - The company has completed environmental impact assessments for all construction projects and obtained necessary permits, including pollution discharge permits[159]. - The company will increase its investment in environmental protection in response to stricter regulations, ensuring compliance and enhancing safety management capabilities[102]. Operational Efficiency and Cost Management - The company is focusing on improving its overall operational efficiency and effectiveness in response to macroeconomic fluctuations and raw material price volatility[101]. - The total operating costs for 2020 decreased by 12.46% compared to the previous year, primarily due to a reduction in polyoxymethylene trading business[63]. - Material costs accounted for 71.35% of total operating costs in 2020, down from 76.13% in 2019, reflecting a decrease of 17.96%[62]. - The company aims to enhance its resource utilization and reduce production costs by implementing a circular economy approach[34]. - The company has made commitments to fulfill all public promises related to its initial public offering and will accept social supervision[124]. Shareholder and Corporate Governance - The company has established a comprehensive corporate governance structure to protect shareholder and creditor rights[152]. - The independent directors will review and provide independent opinions on the profit distribution plan before it is submitted to the shareholders' meeting for approval[117]. - The company is committed to maintaining transparency and accountability in its governance practices[189]. - Major shareholders have pledged to adhere to their commitments regarding the company's public offering and will take responsibility for any losses incurred by investors due to non-compliance[124]. - The company has established a mechanism for talent acquisition and training to build a competitive workforce[123]. Future Outlook and Growth Strategies - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[196]. - The company plans to increase its workforce by 10% to support growth initiatives[200]. - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 30%[200]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[200]. - The company anticipates that the profitability and operating performance will significantly improve as projects gradually enter the recovery period[122].