Production Capacity - The total production capacity at the end of 2021 was 24,500 tons, with 18,000 tons currently under construction. The first phase of 5,000 tons is expected to be completed in June 2022, while the second and third phases of 6,500 tons each are planned for September and December 2022 respectively. Additionally, the company plans to build a 13,000-ton capacity in Yunmeng County, with construction expected to start in June 2022 and completion in 2023 [4]. Product Composition - The current product ratio of standard copper foil to lithium battery copper foil is approximately 30% to 70%. Over 90% of the lithium battery copper foil products are 6 microns or below [4]. Equipment and Technology - The company primarily uses domestic cathode rollers, with some imported equipment. There is no significant performance difference between domestic and imported rollers under the company's existing technology and management systems [4]. - The company can produce 4.5-micron copper foil using domestic equipment, although achieving stable mass production requires significant technical accumulation and process control [4]. Pricing Model and Market Impact - The pricing model is based on "copper price + processing fee," which minimizes the impact of copper price fluctuations on the company's risk and profitability [5]. - The demand for lithium foil processing fees is expected to rise with the increase in new energy vehicle consumption, positively influencing copper foil prices due to increased market demand [6].

Financial Performance - The company's revenue for Q3 2022 reached ¥693,717,557.45, representing a 23.11% increase compared to the same period last year[4] - Net profit attributable to shareholders decreased by 10.04% to ¥83,211,502.15 for Q3 2022, while the year-to-date net profit increased by 7.86% to ¥305,984,914.93[4] - The basic earnings per share for Q3 2022 was ¥0.82, down 32.79% year-on-year[4] - Total operating revenue for Q3 2022 reached ¥2,100,925,780.89, a 38% increase from ¥1,522,743,821.35 in the same period last year[23] - Total operating costs amounted to ¥1,779,675,117.40, up 49% from ¥1,193,078,041.54 year-over-year[23] - Net profit for Q3 2022 was ¥305,984,914.93, representing a 7.8% increase compared to ¥283,693,041.15 in Q3 2021[24] - Basic and diluted earnings per share for Q3 2022 were both ¥3.41, down from ¥3.74 in Q3 2021[24] Assets and Liabilities - Total assets as of September 30, 2022, amounted to ¥4,579,831,835.83, a significant increase of 160.31% from the end of the previous year[8] - The company's total equity increased to CNY 3,826,695,940.91 as of September 30, 2022, up from CNY 1,052,110,885.72 at the beginning of the year, indicating a growth of approximately 264%[21] - The total current liabilities as of September 30, 2022, were CNY 706,040,842.69, compared to CNY 681,994,926.53 at the beginning of the year[21] - The company's accounts receivable rose to CNY 467,922,645.58 from CNY 296,658,478.85, representing an increase of about 57.6%[20] - The company reported a significant increase in inventory, which rose to CNY 285,188,122.28 from CNY 202,191,525.71, marking an increase of approximately 41%[20] Cash Flow - The company reported a net cash flow from operating activities of -¥231,856,110.37, a decline of 717.50% compared to the same period last year[8] - Cash flow from operating activities showed a net outflow of ¥231,856,110.37, compared to a smaller outflow of ¥28,361,704.99 in the same quarter last year[27] - Cash and cash equivalents at the end of Q3 2022 totaled ¥1,318,998,043.46, significantly up from ¥90,073,829.90 at the end of Q3 2021[28] - The company reported a cash inflow from financing activities of ¥2,486,377,035.98, compared to ¥107,614,318.26 in the previous year[28] - The company recorded an investment cash outflow of ¥1,090,969,762.38, which is a significant increase from ¥48,591,273.13 in the same period last year[27] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,487[10] - The largest shareholder, Wang Li, holds 42.29% of the shares, totaling 42,720,000 shares[10] - The top 10 unrestricted shareholders hold a total of 42,720,000 shares, with the largest shareholder, Wang Li, holding 42,720,000 shares[11] - The total number of restricted shares at the end of the period is 80,487,374, with 343,500 shares added during the period[14] - The company has a total of 6,000,000 shares held by Yunmeng Zhongyi Technology Investment Center, which are set to be released on April 21, 2023[13] - The company has a total of 3,480,000 shares held by Ningbo Zhongkun Equity Investment Fund Partnership, which are set to be released on April 21, 2023[14] - The company has a total of 1,123,227 shares in the offline issuance that are restricted until October 21, 2022[14] - The shareholder Huang Hao holds a total of 253,403 shares, with 53,000 shares held in a regular account and 200,403 shares in a margin account[11] - The shareholder Liu Guozhen holds 160,300 shares, all of which are held in a margin account[11] - The company has a total of 2,647,924 shares held by Hubei Fengshun Entrepreneurship Investment Center, which are set to be released on April 21, 2023[14] - The company has a total of 1,800,000 shares held by Hubei Changjiang Hezhi Equity Investment Fund Partnership, which are set to be released on April 21, 2023[14] Research and Development - Research and development expenses increased to ¥83,140,594.28, a 46% rise from ¥56,939,897.81 in the previous year[23] Corporate Changes - The company appointed new board members and management, including Ms. Wang Xiaoxia as the chairperson and Mr. Tu Bigeng as the general manager, effective from July 4, 2022[16] - The company's registered capital has been changed to CNY 101,020,762 as of July 4, 2022[17] Investments and Subsidiaries - The company established a wholly-owned subsidiary, Wuhan Zhongyi New Materials Co., Ltd., with a registered capital of CNY 30,000,000 for research and development of new composite materials[18] - The company plans to invest CNY 120,000,000 in a new 24,000-ton high-performance electronic copper foil production base in Yancheng, Jiangsu, in collaboration with Yueda Automobile[19] Audit Information - The company did not undergo an audit for the Q3 2022 report[29]

Capital Changes - The registered capital of the company increased from 50.51 million RMB to 67.35 million RMB after the completion of registration changes on June 29, 2022[19]. - The registered capital further increased to 101.02 million RMB following the registration changes completed on July 15, 2022[20]. - The company’s total share capital increased from 50,510,175 shares to 101,020,762 shares after the public offering of 16,837,000 shares[148]. Financial Performance - The company’s operating revenue for the current period is ¥1,407,208,223.44, representing a 46.70% increase compared to ¥959,227,025.39 in the same period last year[21]. - The net profit attributable to shareholders for the current period is ¥222,773,412.78, which is a 16.52% increase from ¥191,190,979.57 year-on-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses is ¥206,049,043.10, up 9.32% from ¥188,487,041.19 in the previous year[21]. - The basic and diluted earnings per share for the current period are both ¥2.65, reflecting a 5.16% increase from ¥2.52 in the same period last year[21]. - The total comprehensive income for the first half of 2022 was 154.1 million, representing a 52.78% increase compared to the previous period[197]. - The net profit for the first half of 2022 was 2,552.0 million, indicating a growth of 15.41% compared to the same period last year[197]. Cash Flow and Liquidity - The net cash flow from operating activities is -¥204,653,757.46, a significant decrease of 2,440.05% compared to ¥8,745,697.76 in the same period last year[21]. - The company reported a cash inflow from operating activities of CNY 958,951,053.68, compared to CNY 851,981,482.02 in the first half of 2021[184]. - Cash and cash equivalents increased significantly to ¥1,843,433,395.50, accounting for 41.64% of total assets, up from 11.29% last year, due to funds raised from the initial public offering[56]. - The total current assets as of June 30, 2022, amounted to CNY 3,504,037,931.57, a significant increase from CNY 1,199,000,618.52 at the beginning of the year[169]. Investments and Projects - The company has ongoing major construction projects, with total investments of ¥330,417,000.00 and cumulative investments of ¥704,407,000.00 as of the reporting period[67]. - The company plans to expand its production capacity with new projects, including a 10,000-ton high-performance copper foil production line[67]. - The project for producing 10,000 tons of high-performance electronic copper foil has an investment total of RMB 43,097.00 million, with 73.18% of the investment completed by June 30, 2022[71]. Market and Industry Outlook - The lithium battery copper foil market is expected to grow significantly, with a projected production capacity increase of 52.97% to 110.32 million tons in 2022[30]. - The PCB market in China is projected to reach $38.936 billion in 2022 and $46.04 billion by 2025, accounting for over 50% of the global market[3]. - The demand for high-performance standard copper foil is driven by the growth of 5G communication, requiring faster transmission rates and higher communication quality[3]. Research and Development - The company has accumulated 97 patents and 2 software copyrights as of June 30, 2022, enhancing its R&D capabilities[46]. - Research and development expenses increased by 50.08% to ¥54,404,577.15, reflecting the company's commitment to enhancing its R&D capabilities[50]. Environmental Compliance - The company has achieved a wastewater recycling rate of over 80% in industrial production[107]. - The company has implemented noise reduction measures and upgraded wastewater and exhaust treatment facilities to minimize pollution[107]. - The company has established an environmental management system to ensure compliance with pollution discharge standards[107]. - The company has successfully maintained compliance with environmental protection laws and regulations[108]. Shareholder Relations - The company has maintained good communication with shareholders and creditors, ensuring their rights are protected[117]. - The annual general meeting on May 30, 2022, had a 58.59% investor participation rate[98]. - Major shareholders include Wang Li with 42.72 million shares and Wang Xiaoxia with 6 million shares, both subject to lock-up agreements until October 20, 2025[152]. Risks and Challenges - The company faces operational risks due to potential changes in management strategies by controlling shareholders, which could adversely affect future operations[83]. - Market competition is intensifying, with potential impacts on profit margins due to increased pressure from competitors and changes in customer demand[87]. - Raw material price volatility, particularly copper prices, significantly impacts the company's revenue and profit margins, with raw materials accounting for 70%-85% of product costs[89].