Financial Performance - The report includes a comprehensive overview of the company's financial performance for the year 2021, highlighting key financial metrics and trends [16]. - The company's operating revenue for 2021 was CNY 701,552,636.04, representing a 54.19% increase compared to CNY 454,996,428.33 in 2020 [21]. - The net profit attributable to shareholders for 2021 was CNY 134,974,206.20, up 21.75% from CNY 110,862,426.10 in 2020 [21]. - The net cash flow from operating activities for 2021 was CNY 121,044,015.97, a 19.01% increase from CNY 101,706,583.67 in 2020 [21]. - The total assets at the end of 2021 were CNY 1,173,881,258.58, a 194.24% increase from CNY 398,957,284.77 at the end of 2020 [21]. - The company's net assets attributable to shareholders at the end of 2021 were CNY 1,071,445,199.79, reflecting a 289.42% increase from CNY 275,140,112.65 at the end of 2020 [21]. - The basic earnings per share for 2021 was CNY 2.59, a 1.97% increase from CNY 2.54 in 2020 [21]. - The total production volume for 2021 was 30,695.63 tons, which is a 26.07% increase from 2020 [50]. - The company reported a net profit of CNY 122,978,471.25 for the year 2021, with a total distributable profit of CNY 201,411,852.71 [140]. Dividend Distribution - The company plans to distribute a cash dividend of 10.00 CNY per 10 shares (including tax) based on a total of 58,266,667 shares, with a capital reserve conversion of 7 shares for every 10 shares [5]. - The cash dividend distribution plan included a cash dividend of CNY 10.00 per 10 shares, totaling CNY 58,266,667, which accounted for 100% of the profit distribution [141]. - The total share capital will increase to 99,053,333 shares after a capital reserve conversion of 7 shares for every 10 shares held [142]. Industry Overview - The company operates in the modified plastics industry, which has seen a significant growth in downstream applications, particularly in home appliances and automotive sectors [28]. - The modified plastics industry in China has a plastic modification rate exceeding 20%, indicating substantial future growth potential [28]. - The modified plastics industry in China has a market share of approximately 19% in the automotive sector, with a demand of around 3.91 million tons based on an average usage of 150 kg per vehicle [29]. - In the home appliance sector, modified plastics account for 34% of the materials used, with significant applications in refrigerators and washing machines, where the usage rate is about 30-40% [30]. Research and Development - The company aims to replace imported high-end modified materials by enhancing its R&D capabilities and product offerings [32]. - The company has invested in R&D for high-value-added products, focusing on niche markets rather than mass production [44]. - The company is actively expanding its R&D capabilities, collaborating with domestic universities to foster innovation [48]. - The company aims to enhance its R&D capabilities in flame-retardant materials, targeting applications in home appliances and electronics [67]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and potential operational risks, which are detailed in the management discussion section [5]. - The company faces risks related to macroeconomic conditions, which can significantly impact demand for modified plastics used in electric tools, automotive parts, and household appliances [96]. - Fluctuations in raw material prices, particularly those linked to petroleum products, pose a risk to the company's production costs and profitability [96]. - The company has established a systematic risk evaluation framework to identify and manage internal and external risks effectively [146]. Governance and Compliance - The company has established a robust governance structure in compliance with relevant laws and regulations, ensuring effective operation of shareholder meetings [105]. - The board of directors consists of 7 members, including 3 independent directors, complying with legal and regulatory requirements [106]. - The company emphasizes transparency in information disclosure, ensuring timely and accurate communication with shareholders [108]. - The company has established a fair and transparent performance evaluation and incentive mechanism for its directors and senior management [109]. Environmental and Social Responsibility - The company has established an environmental management system in compliance with GB/T24001-2016/ISO14001:2015 standards to ensure sustainable operations [154]. - The company actively protects employee rights by providing comprehensive benefits, including commercial insurance and free meals [157]. - The company emphasizes social responsibility by integrating it into its development strategy, benefiting shareholders, employees, and other stakeholders [156]. - The company has committed to sustainable practices, aiming for a 15% reduction in production waste by 2023 [172]. Market Expansion and Future Outlook - The company plans to launch two new products in 2022, aiming for a 10% increase in market share [171]. - Future outlook includes a projected revenue growth of 25% for 2022, driven by market expansion and new product launches [172]. - The company is focused on maintaining the rights and interests of all shareholders through diligent governance [131]. - The company is actively pursuing new business areas while ensuring no direct competition with its existing operations [168].

Financial Performance - The company's operating revenue for Q3 2021 was ¥178,405,254.37, representing a 32.01% increase year-over-year, and a total revenue of ¥516,885,884.94 for the year-to-date, up 64.93% compared to the same period last year[3] - The net profit attributable to shareholders for Q3 2021 was ¥30,512,236.15, a decrease of 2.49% year-over-year, while the year-to-date net profit reached ¥98,647,146.87, an increase of 29.94%[3] - Total operating revenue for the period reached CNY 516,885,884.94, compared to CNY 313,397,632.80 in the previous period, indicating a significant increase[19] - Total operating revenue for Q3 2021 was 115,027,353.52 CNY, an increase from 86,476,321.54 CNY in Q3 2020, representing a growth of approximately 33.5%[20] - Net profit for Q3 2021 reached 98,647,146.87 CNY, compared to 75,918,358.67 CNY in the same period last year, marking an increase of about 30.0%[21] - The company’s total comprehensive income for Q3 2021 was 98,321,876.63 CNY, compared to 74,778,082.19 CNY in Q3 2020, indicating a growth of about 31.5%[21] Cash Flow and Liquidity - The company's cash flow from operating activities for the year-to-date was ¥64,118,646.95, showing a significant increase of 151.42% compared to the previous year[9] - Operating cash flow for Q3 2021 was 64,118,646.95 CNY, significantly higher than 25,502,958.54 CNY in Q3 2020, indicating a year-over-year increase of approximately 151.5%[23] - The company reported a significant increase in cash and cash equivalents, totaling ¥294,906,659.14, which is a 241.49% increase from the previous year-end due to the proceeds from the IPO[8] - The company reported total cash and cash equivalents of 285,828,939.39 CNY at the end of Q3 2021, up from 69,490,710.84 CNY at the end of Q3 2020, reflecting a substantial increase of about 311.5%[24] Assets and Liabilities - Total assets at the end of Q3 2021 amounted to ¥1,112,627,729.75, reflecting a substantial increase of 178.88% from the end of the previous year[3] - Current assets as of September 30, 2021, totaled CNY 1,035,055,051.43, up from CNY 328,857,734.96 at the end of 2020, reflecting strong liquidity growth[15] - Total assets amounted to CNY 1,112,627,729.75, a significant increase from CNY 398,957,284.77 at the end of 2020[17] - Total liabilities decreased to CNY 76,590,480.28 from CNY 123,817,172.12, indicating a reduction in financial obligations[17] - The company’s total liabilities decreased by 76.46% in short-term borrowings, reflecting a repayment of bank loans during the period[8] Shareholders' Equity - The company's equity attributable to shareholders reached ¥1,036,037,249.47, marking a 276.55% increase compared to the previous year[4] - Shareholders' equity increased to CNY 1,036,037,249.47 from CNY 275,140,112.65, reflecting a growth of approximately 275%[17] Research and Development - Research and development expenses for Q3 2021 were ¥13,271,394.84, which is a 40.62% increase compared to the same period last year, indicating a focus on innovation[9] - Research and development expenses for Q3 2021 were 13,271,394.84 CNY, compared to 9,437,549.55 CNY in Q3 2020, showing an increase of approximately 40.5%[20] Operating Costs - The total operating costs for the year-to-date were ¥350,968,487.90, which is an increase of 82.32% year-over-year, primarily due to rising material costs[9] - The company’s total operating costs for Q3 2021 were 403,019,195.74 CNY, up from 228,042,242.90 CNY in Q3 2020, which is an increase of about 76.7%[20] Earnings Per Share - The company’s basic earnings per share for Q3 2021 were ¥0.5237, down 26.86% from the previous year[3] - Basic earnings per share for Q3 2021 were 1.9661 CNY, compared to 1.7373 CNY in Q3 2020, representing an increase of approximately 13.2%[21] Future Outlook - The company is focusing on expanding its market presence and enhancing product development strategies to drive future growth[14]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 338,480,630.57, representing an increase of 89.89% compared to the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 68,134,910.72, up 52.67% year-on-year, primarily due to increased business orders and product price adjustments[30]. - The net profit after deducting non-recurring gains and losses was CNY 67,886,632.38, reflecting a growth of 62.11% compared to the previous year[22]. - The basic earnings per share increased by 45.10% to CNY 1.48 per share[22]. - The company reported a net profit of $7,414,004.70 with a revenue of $193,844,829.30, indicating a significant performance in the modified plastics sector[82]. - The company’s subsidiary in Malaysia achieved a revenue of 2,251,382.81 MYR, with a net profit of 613,052.77 MYR during the reporting period[83]. - The total comprehensive income for the first half of 2021 was CNY 67,613,448.72, compared to CNY 45,299,076.69 in the same period of 2020, marking a growth of 49.4%[171]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,219,230,869.03, a significant increase of 205.60% from the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were CNY 1,068,736,997.99, up 288.43% compared to the end of the previous year[22]. - The company's total liabilities reached CNY 147,950,176.40, an increase from CNY 122,785,216.02 at the end of 2020, indicating a rise of 20.5%[165]. - Current liabilities rose to CNY 150,493,871.04 from CNY 123,817,172.12, which is an increase of about 21.5%[160]. Revenue Sources and Product Performance - Major products include high-performance modified nylon and polyester, widely used in various industries such as automotive parts and medical devices[31]. - The high-performance modified nylon (PEMARON) achieved revenue of ¥188,270,712.04, an increase of 60.75% year-over-year, with a gross margin of 39.01%, down 5.06% from the previous year[32]. - The high-performance modified polyester (AUTRON) generated revenue of ¥97,395,656.41, up 170.36% year-over-year, with a gross margin of 19.17%, down 3.44% from the previous year[33]. - The engineering modified polyolefin (VENTRON) reported revenue of ¥33,893,570.85, an increase of 80.37% year-over-year, with a gross margin of 29.23%, up 2.77% from the previous year[34]. - The color masterbatch and functional masterbatch (COLORON) achieved revenue of ¥16,267,629.83, a significant increase of 207.69% year-over-year, with a gross margin of 54.79%, up 5.58% from the previous year[35]. Research and Development - The company holds 15 invention patents and has 21 pending patents, demonstrating its commitment to research and development in modified plastics[47]. - Research and development investment increased by 17.15% to ¥7,565,799.76, indicating a commitment to innovation and product development[64]. - The company has a robust R&D team and has established partnerships with domestic universities to foster innovation and technical talent development[57]. - The company emphasizes the importance of continuous product R&D and technological innovation to maintain competitive advantages in high-end modified plastics[86]. Market Position and Strategy - The company focuses on the research, production, and sales of modified plastic products, establishing strong competitive advantages in high-tech and high-value-added segments[30]. - The company has formed strategic partnerships with numerous well-known domestic and international enterprises, enhancing its market position[30]. - The modified plastics industry in China is experiencing rapid growth, driven by increasing demand in sectors such as electric tools, automotive, and home appliances[45]. - The company focuses on high-tech and high-value-added segments, avoiding competition in low-margin, homogeneous product markets, which helps maintain its competitive edge[56]. Cash Flow and Financial Management - The company reported a negative net cash flow from operating activities of CNY -9,557,358.22, a decline of 152.14% compared to the previous year[22]. - The cash flow from operating activities showed a net outflow of CNY 9,557,358.22, compared to a net inflow of CNY 18,330,348.49 in the first half of 2020[176]. - The total cash and cash equivalents increased by CNY 724,940,659.16 during the first half of 2021, contrasting with a decrease of CNY 21,485,490.21 in the same period of 2020[176]. - The company has received net bank interest income of RMB 16.03 million during the reporting period[72]. Shareholder Information and Capital Structure - The company approved the initial public offering of 14,566,667 shares of RMB ordinary stock, increasing the total share capital from 43,700,000 to 58,266,667 shares[140]. - The largest shareholder, Lü Feng, holds 28.53% of the shares, totaling 16,625,916 shares[144]. - The company has a total of 43,700,000 restricted shares, which now represent 75.00% of the total shares after the IPO[140]. - The newly issued shares account for 25.00% of the total shares post-IPO[140]. Risks and Challenges - The company faces risks related to macroeconomic conditions, which can significantly impact demand for modified plastics used in various industries such as electric tools and automotive parts[84]. - Raw material price fluctuations pose a risk to the company's production costs, as key materials are influenced by international oil prices and market supply-demand dynamics[85]. - Customer concentration risk is present, as the company relies on major clients in the electric tools and automotive sectors, which could impact profitability if client circumstances change[87]. - The company is exposed to foreign exchange risks due to its reliance on USD for pricing and settlement in international sales[91]. Social Responsibility and Employee Welfare - The company emphasizes social responsibility and aims to protect the interests of shareholders, employees, customers, and suppliers[103]. - The company provides various employee benefits, including free meals and housing subsidies, to enhance employee welfare[107]. - The company adheres to legal regulations to protect employee rights and ensure a safe working environment[105]. - The company has made a targeted donation of 30,000 yuan to the Zhangjiagang Jin Feng Charity Association during the reporting period[110]. Environmental Initiatives - The company has invested in solar photovoltaic installations, achieving an annual electricity generation of 1.6 million KWH, which is approximately 20% of its original annual electricity consumption[109]. - The company has committed to using electric forklifts instead of diesel-powered ones, promoting a shift towards cleaner energy solutions[109]. - The company has implemented temperature control for air conditioning in office areas, setting summer temperatures at 26°C and winter temperatures at 20°C to manage energy consumption[109].