北京市中伦（青岛）律师事务所 关于山东晨鸣纸业集团股份有限公司 2024 年年度股东大会 之 致：山东晨鸣纸业集团股份有限公司 北京市中伦（青岛）律师事务所（以下简称"本所"）接受山东晨鸣纸业集 团股份有限公司（以下简称"公司"）的委托，根据本法律意见书出具日前已经 发生或存在的事实和《中华人民共和国公司法》《中华人民共和国证券法》《上 市公司股东大会规则》《律师事务所从事证券法律业务管理办法》《律师事务所 证券法律业务执业规则（试行）》等中华人民共和国现行有效的法律、法规和规 范性文件（以下简称"中国法律"，为本法律意见书之目的，不包括中华人民共 和国香港特别行政区、澳门特别行政区和台湾地区法律）以及《山东晨鸣纸业集 团股份有限公司章程》（以下简称"《公司章程》"）等有关规定，指派律师对 公司 2024 年度股东大会（以下简称"本次股东大会"）进行现场见证，并就本 次股东大会的相关事项出具本法律意见书。 法律意见书 二〇二五年五月 山东省青岛市香港中路 61 号乙远洋大厦 A 座 27-28 层 邮编：266071 27-28/F, Tower A, COSCO Plaza, 61B Hong Kong M ...

Group 1: Operational Recovery - The company is currently focusing on gradually resuming operations based on funding and market conditions, with specific attention to the recovery rates of various production bases [3][4][8]. - The Zhanjiang base is undergoing equipment maintenance, and its recovery rate will depend on financial and market conditions [4][5]. - The company is actively working on a 23.1 billion yuan syndicated loan to facilitate the resumption of production [8][9]. Group 2: Financial Strategies - The company is negotiating with non-bank financial institutions to extend, reduce interest rates, and restructure debts [2][4]. - A total of 10 billion yuan in capital from a state-owned company has been fully allocated to support the company's recovery efforts [4][9]. - The company is exploring strategic partnerships and has established a task force to facilitate discussions with potential investors [4][9]. Group 3: Debt Management - The company is actively communicating with creditors to negotiate repayment plans and is focusing on asset disposal to improve liquidity [8][10]. - The current debt structure primarily consists of bank loans, with some non-standard debts related to equipment leasing and supply chain financing [9][10]. - The company is implementing measures to manage overdue payments and is working to reduce the scale of overdue commercial bills [10][11]. Group 4: Market Position and Future Outlook - The company has not encountered any conditions that would trigger delisting under the Shenzhen Stock Exchange rules [8][11]. - The management is committed to improving operational efficiency and profitability through various measures, including asset disposal and cost control [4][8]. - The company is expected to provide updates on the resumption of full production and financial recovery as conditions evolve [11][12].

Investment Rating - The investment rating for the paper industry is "Positive" [2] Core Viewpoints - The paper industry is experiencing a bottoming cycle with insufficient upward momentum, leading industry leaders to focus on extending their supply chains and enhancing differentiated competitive advantages [12] - The industry is expected to continue facing supply-demand pressures in 2025, with a sustained bottoming of profit cycles as leading companies innovate and expand their scale and differentiation advantages [12] - Major companies are actively expanding their overseas market presence to absorb production capacity [12] Summary by Sections Pulp and Paper Sector - Cost improvements and a slight recovery in paper prices are leading to profit recovery, with Q4 2024 pulp prices hitting a bottom and costs stabilizing [3] - In Q1 2025, low-cost pulp gradually entered inventory, and paper prices saw a slight increase, with companies expected to maintain low costs and moderate profit improvements [3][18] - The domestic pulp market is experiencing price fluctuations, with expectations of continued low-level oscillations in Q2 2025 [19] Cultural Paper - Profitability is gradually recovering, with leading companies performing well despite market challenges [4] - Average prices for double glue paper and copper plate paper in Q4 2024 and Q1 2025 were 5228 and 5435 CNY/ton respectively, showing year-on-year declines but some recovery in Q1 2025 [22] - Companies like Sun Paper are leveraging raw material strategies and cost control to improve profits [22] White Card Paper - Prices are stabilizing at the bottom, with a slight improvement in profitability [23] - The average price for white card paper increased from 4195 CNY/ton in Q4 2024 to 4307 CNY/ton in Q1 2025, benefiting from supply disruptions [23] - Companies are expected to face increased supply pressures in 2025 due to new capacities coming online [23] Specialty Paper - Leading companies are expanding their advantages and market shares [24] - Prices for specialty paper categories are expected to decline due to short-term supply-demand pressures, but some categories are showing signs of recovery [24] - Companies like Xianhe and Wuzhou are expected to benefit from increased production capacity [24] Waste Paper Sector - Prices are fluctuating, with a recovery in profitability observed [26] - The average price for waste paper in Q4 2024 was 1530 CNY/ton, showing a year-on-year increase, while boxboard and corrugated paper prices also saw slight improvements [26] - The overall profitability of waste paper companies is expected to remain under pressure in Q2 2025 despite cost optimizations [26] Investment Recommendations - Focus on companies with integrated pulp and paper operations and improving profitability, such as Sun Paper and Xianhe, as well as those recovering profitability like Huawang Technology and Wuzhou Specialty Paper [8]

Core Insights - Shandong Chenming Paper Holdings Co., Ltd. has become the first A-share listed company to receive a negative audit opinion due to significant internal control deficiencies in 2024 [1][2] - The company's management has shown serious inadequacies in risk assessment and response mechanisms, leading to a failure in internal controls [1] Group 1: Internal Control Deficiencies - The audit report highlights a weak ability of management to identify operational and financial risks, lacking an effective risk warning mechanism [1] - Before the liquidity crisis in 2024, the company failed to take prudent measures, resulting in overdue borrowings and supplier payments totaling 1.656 billion yuan, which accounted for 18.09% of the latest audited net assets [1] - The internal control system has not provided reasonable assurance for the authenticity and completeness of financial reporting, particularly lacking checks and balances in risk response and decision-making processes [1] Group 2: Financial Performance Decline - In 2024, the company's operating revenue decreased by 14.58% to 22.729 billion yuan, with a net loss attributable to shareholders of 7.411 billion yuan, an increase of 478.38% year-on-year [3] - The core reasons for this decline include a collapse in the profitability of the main business, with a gross margin of only 1.53% for paper-making, and a negative gross margin of -12.91% for white cardboard [3] - The company's debt structure is heavily imbalanced, with short-term debt accounting for 86.5% and cash coverage ratio below 0.5%, significantly lower than the healthy level in the paper industry [3] Group 3: Strategic Missteps - The negative audit opinion reflects deeper governance issues and strategic decision-making failures, such as over-reliance on high leverage expansion and cross-industry financial operations [2] - The cross-industry financial operations initiated since 2014 have resulted in significant bad debts, with provisions for bad debts reaching 4.6 billion yuan, representing 51.7% of the book value [3] - The previous chairman's "integration of production and finance" model has exacerbated the funding chain break during the industry downturn, creating a vicious cycle of financial distress [3]

Financial Performance - The company's operating revenue for Q1 2025 was CNY 797,157,638.89, a decrease of 88.21% compared to CNY 6,761,777,174.00 in the same period last year[7] - The net profit attributable to shareholders for Q1 2025 was a loss of CNY 1,451,634,120.47, representing a decline of 2,594.38% from a profit of CNY 58,196,200.97 in the previous year[7] - Operating revenue decreased by 88.21% year-on-year, primarily due to production base shutdowns and reduced sales of mechanical paper[16] - Net profit attributable to shareholders decreased by 2,594.38% year-on-year, driven by lower sales volume and gross profit margins[16] - Total operating revenue for the current period is ¥797,157,638.89, a significant decrease from ¥6,761,777,174.00 in the previous period, representing a decline of approximately 88.2%[31] - Net profit for the current period is a loss of ¥1,649,443,030.00, compared to a profit of ¥67,766,961.48 in the previous period, marking a substantial shift in profitability[32] Cash Flow - The net cash flow from operating activities increased by 12.16% to CNY 530,619,916.12 compared to CNY 473,092,608.52 in the same period last year[7] - Cash flow from operating activities increased by 12.16% year-on-year, reaching approximately ¥530.62 million[18] - Cash flow from investing activities decreased by 186.13% year-on-year, primarily due to share repurchases from minority shareholders[18] - Cash flow from financing activities improved by 88.47% year-on-year, as creditors extended loan terms and reduced interest rates[18] - Cash flow from investing activities shows a net outflow of ¥498,084,031.13, contrasting with a net inflow of ¥578,290,447.91 in the previous period[34] - Cash flow from financing activities resulted in a net outflow of ¥116,313,497.71, compared to a larger outflow of ¥1,008,870,143.38 in the previous period[35] Assets and Liabilities - Total assets at the end of Q1 2025 were CNY 58,022,971,669.22, down 8.64% from CNY 63,509,295,142.08 at the end of the previous year[7] - The company's total liabilities increased, with current liabilities due within one year rising by 60.68% to CNY 2,535,405,392.32[12] - The total liabilities decreased from RMB 50.67 billion at the beginning of the period to RMB 47.74 billion at the end of the period, a reduction of about 5.8%[28] - The company's current assets decreased from RMB 15.89 billion at the beginning of the period to RMB 11.13 billion at the end of the period, a decline of approximately 30.4%[26] - The company's total assets decreased from RMB 63.51 billion to RMB 58.02 billion, a decline of about 8.6%[27] - The company’s equity attributable to shareholders decreased from RMB 9.156 billion to RMB 7.706 billion, a decline of about 15.9%[29] Shareholder Information - Total number of ordinary shareholders at the end of the reporting period was 126,406[20] - The largest shareholder, Chenming Holding Co., Ltd., holds 15.50% of shares, with 409,956,441 shares pledged or frozen[21] Production and Operational Issues - The company experienced a significant drop in cash and cash equivalents, from RMB 5.91 billion to RMB 2.28 billion, a decrease of approximately 61.4%[26] - The company’s production bases have experienced shutdowns since Q4 2024, impacting operational capacity[22] - Operating costs decreased by 68.80% year-on-year, attributed to the same production issues affecting sales[16] Research and Development - Research and development expenses for Q1 2025 were CNY 20,606,883.01, a significant decrease of 93.31% from CNY 307,814,308.92 in the previous year[14] - R&D expenses decreased by 93.31% year-on-year, reflecting reduced investment during the production shutdowns[16] Financial Ratios and Metrics - The company's basic and diluted earnings per share for Q1 2025 were both CNY -0.49, a decrease of 2,550.00% from CNY 0.02 in the same period last year[7] - The company experienced a significant increase in financial expenses, with interest expenses rising to ¥428,852,888.40 from ¥384,652,878.96[31] - The company reported a credit impairment loss of ¥169,366,185.66, which is a notable increase compared to the previous period's loss of ¥68,342,660.79[31]

Financial Performance - The company reported its annual performance for the year ending December 31, 2024, in accordance with the Hong Kong Stock Exchange listing rules[3]. - The company's operating revenue for 2024 was CNY 22.73 billion, a decrease of 14.58% compared to CNY 26.61 billion in 2023[18]. - The net profit attributable to shareholders for 2024 was a loss of CNY 7.41 billion, representing a significant decline of 478.38% from a loss of CNY 1.28 billion in 2023[18]. - The net cash flow from operating activities decreased by 40.25% to CNY 2.62 billion in 2024, down from CNY 4.39 billion in 2023[18]. - The total assets at the end of 2024 were CNY 63.51 billion, a reduction of 20.10% from CNY 79.49 billion at the end of 2023[18]. - The net assets attributable to shareholders decreased by 45.15% to CNY 9.16 billion at the end of 2024, down from CNY 16.69 billion at the end of 2023[18]. - The basic earnings per share for 2024 was CNY -2.53, a decline of 462.22% from CNY -0.45 in 2023[18]. - The weighted average return on equity for 2024 was -57.25%, a decrease of 49.60 percentage points from -7.65% in 2023[18]. - The company incurred a net loss of RMB 7.41 billion attributable to shareholders, compared to a profit in the previous year[55]. - In 2024, the company's total revenue was RMB 22.73 billion, a decrease of 14.58% compared to RMB 26.61 billion in 2023[57]. Dividend and Shareholder Matters - The board of directors proposed not to distribute a final dividend for the fiscal year 2024, pending shareholder approval at the annual general meeting on May 15, 2025[6]. - The company has not announced any cash dividends, bonus shares, or capital increases from reserves for the current fiscal year[11]. - The company will suspend share transfer registration from May 12 to May 15, 2025, to determine the list of H-share shareholders eligible to attend the annual general meeting[7]. Risks and Challenges - The company faced risks from macroeconomic fluctuations, national policies, and industry competition, which could impact future performance[10]. - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[19]. - The company faced challenges due to a significant drop in white cardboard prices, leading to weakened profitability and losses[31]. - The company is facing temporary liquidity tightness and overdue debts in 2024 due to declining product prices and reduced loan sizes from financial institutions, but plans to mitigate debt risks through various measures[103]. Operational Strategies - The company plans to enhance its market expansion strategies and explore new product development opportunities[10]. - The company has implemented production restrictions and maintenance on some production bases since November to reduce losses[31]. - The company is actively pursuing the disposal of non-core assets to improve liquidity and has formed an asset management center to enhance asset disposal efficiency[33]. - The company is engaging with strategic investors to secure operational funding for resuming production[34]. - The company aims to optimize product structure and strengthen cost management to improve operational quality[55]. - The company plans to enhance customer satisfaction and market share through the development of various new product technologies[70]. Research and Development - The company has established multiple leading innovation research platforms, including a national enterprise technology center and a postdoctoral research station, to enhance its technological capabilities[40]. - Research and development projects include the development of high-end kitchen paper technology, aimed at increasing product functionality and market share[70]. - R&D expenditure amounted to ¥1,080,331,754.42 in 2024, a decrease of 7.22% compared to ¥1,164,419,698.13 in 2023, while the proportion of R&D expenditure to operating revenue increased from 4.38% to 4.75%[71]. Governance and Management - The company’s governance structure complies with the relevant regulations and standards set by the China Securities Regulatory Commission and stock exchanges[159]. - The board of directors consists of 10 members, including 4 independent directors, and held 10 meetings during the reporting period[162]. - The company has a structured approach to governance, with clear roles and responsibilities outlined for its board members and executives[186]. - The company has not faced any penalties from securities regulatory authorities in the past three years, reflecting compliance and governance integrity[184]. - The company emphasizes the importance of governance with a diverse board composition, including professionals from finance, law, and academia[178]. Environmental and Social Responsibility - The company invested over RMB 8 billion in environmental protection initiatives, including advanced pollution control systems[54]. - The company is committed to green development and aims to establish itself as a benchmark for resource-saving and environmentally friendly enterprises[100]. - The company has implemented advanced water recycling technology, achieving over 75% reuse rate of treated water, in response to increasing environmental regulations[109]. Market Conditions - The white card paper industry is facing significant challenges, with prices remaining in a downward trend due to increased supply and sluggish demand[38]. - The paper industry is experiencing price pressure due to increased supply and weak demand, with expectations for production growth in 2025[99]. - The company anticipates that the supply-demand imbalance in the paper industry will ease, leading to improved market conditions by 2025[101]. Employee Matters - The total number of employees at the end of the reporting period is 9,594, with 2,041 in the parent company and 6,847 in major subsidiaries[198]. - Employee compensation includes salaries, bonuses, and various benefits, determined based on market levels, social averages, and government guidelines[200]. - The educational background of employees shows 24 with postgraduate degrees or above, 793 with bachelor's degrees, 2,161 with associate degrees, and 6,616 with vocational or lower education levels[198].

二、本次股东部分股份再质押情况 证券代码： 000488 200488 证券简称：晨鸣纸业 晨鸣 B 公告编号：2024-077 山东晨鸣纸业集团股份有限公司 关于股东部分股份解除质押及再质押的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 山东晨鸣纸业集团股份有限公司（以下简称"公司"）近日接到第一大股东晨鸣控 股有限公司（以下简称"晨鸣控股"）函告，获悉其所持有本公司的部分股份办理了解 除质押及再质押业务，具体事项如下： 2、中国证券登记结算有限责任公司股份冻结明细。 | 股东 | 是否为控股股东 | 股份 | 质押数量 | 占其所 | 占公司 | 是否为 | 是否为 | 质押 | 质押 | | 质押 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 名称 | 或第一大股东及 | 类别 | （股） | 持股份 | 总股本 | 限售股 | 补充质 | 起始日 | 到期日 | 质权人 | 用途 | | | 其一致行动人 | | | 比例 | 比例 | ...

Revenue and Profit - Revenue for the third quarter was CNY 5,940,014,289.43, a decrease of 17.00% compared to the same period last year[3] - Net profit attributable to shareholders was CNY -738,744,725.34, representing a decline of 820.98% year-on-year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -804,074,160.18, down 82.84% from the previous year[3] - Net profit for the current period was CNY -809,406,479.38, compared to CNY -819,432,789.71 in the previous period, indicating an improvement of approximately 1.25%[24] - The company recorded a total comprehensive income of CNY -761,769,017.59, an improvement from CNY -896,431,506.19 in the previous period, representing a change of approximately 15.03%[24] Cash Flow - Cash flow from operating activities for the year-to-date was CNY 2,384,383,407.80, a decrease of 34.52% compared to the same period last year[3] - Net cash flow from operating activities decreased by 34.52% year-on-year to CNY 2,384,383,407.80, attributed to increased production and raw material purchases[11] - The company reported a net cash flow from operating activities of CNY 2,384,383,407.80, down from CNY 3,641,357,960.67 in the previous period, a decline of about 34.58%[25] - Net cash flow from investing activities increased by 2,489.37% year-on-year to CNY 631,043,187.50, mainly due to proceeds from the sale of subsidiary equity[12] - The net cash flow from financing activities improved by 24.76% year-on-year to CNY -3,489,477,926.53, as the company repaid maturing debts[12] - The cash inflow from sales of goods and services was CNY 20,448,401,525.26, an increase from CNY 19,790,425,836.46, reflecting a growth of about 3.32%[25] - The net cash flow from investment activities was 631,043,187.50, a significant improvement from the previous period's -26,410,486.71[26] - The cash outflow from investment activities was 63,005,781.62, significantly lower than 291,086,476.19 in the prior period[26] - The cash flow from financing activities included 22,906,350,204.37 from borrowings, compared to 24,154,459,447.48 in the previous period[26] - The total cash outflow from financing activities was 29,215,990,512.66, down from 31,374,345,099.96 in the previous period[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 75,193,878,304.81, a decrease of 5.40% from the end of the previous year[3] - The company’s total assets decreased from CNY 79,487,052,953.58 to CNY 75,193,878,304.81, a decline of about 5.8%[20] - Total current assets decreased from CNY 28,565,889,027.79 to CNY 25,572,359,867.02, a decline of about 10.5%[18] - Total liabilities decreased from CNY 58,389,197,107.95 to CNY 55,274,571,736.02, a reduction of approximately 5.4%[21] - The company’s total liabilities and equity decreased to CNY 75,193,878,304.81 from CNY 79,487,052,953.58, reflecting a reduction of approximately 5.78%[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 133,939, with the largest shareholder holding 15.47%[13] - The company plans to repurchase and cancel 22,257,000 shares of restricted A-shares, accounting for 0.75% of the total share capital[17] Other Financial Metrics - Other income increased by 73.69% year-on-year to CNY 238,472,943.40, primarily due to the advanced manufacturing VAT rebate policy[9] - Investment income decreased by 65.27% year-on-year to CNY 194,417,150.47, mainly due to reduced gains from subsidiary disposals[10] - Fair value changes in income increased by 107.37% year-on-year to CNY 1,638,333.26, influenced by fluctuations in Bohai Bank stock[10] - Credit impairment losses increased by 76.16% year-on-year to CNY -210,922,415.23, due to higher bad debt provisions for receivables[10] - Minority shareholders' losses increased by 94.19% year-on-year to CNY -99,307,959.46, reflecting reduced operating profits from certain non-wholly-owned subsidiaries[10] - Asset impairment losses decreased by 92.98% year-on-year to CNY -3,041,427.75, as provisions for finished goods declined[10] Changes in Accounting and Auditing - The company did not undergo an audit for the third quarter report[27] - The new accounting standards will be implemented starting in 2024, affecting the financial statements[28]

证券代码： 000488 200488 证券简称：晨鸣纸业 晨鸣 B 公告编号：2024-066 山东晨鸣纸业集团股份有限公司 关于子公司为其参股公司提供财务资助的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 一、财务资助事项概述 1、财务资助基本情况 寿光美特环保科技有限公司（以下简称"美特环保"）是山东晨鸣纸业集团股份 有限公司（以下简称"公司"）控股子公司寿光美伦纸业有限责任公司（以下简称"寿 光美伦"）的参股公司，主要生产轻质碳酸钙。为支持美特环保的业务发展，满足其 日常运营的资金需求，寿光美伦拟以自有资金按出资比例向美特环保提供财务资助， 资助本金金额不超过人民币 3,000 万元（含 3,000 万元），借款的有效期限不超过 5 年（含 5 年），公司按不低于 6%的年利率收取资助利息。美特环保的其他股东美鑫 投资（中国）有限公司（以下简称"美鑫投资"）按照其出资比例提供同等条件的财 务资助。本次财务资助不会影响公司正常业务开展及资金使用，不属于《深圳证券交 易所股票上市规则》《深圳证券交易所上市公司自律监管指引第 1 号—主板上市公司 规 ...

Financial Performance - The company's operating revenue for the first half of 2024 was CNY 13,884,731,519.04, representing a 10.50% increase compared to CNY 12,564,962,781.31 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached CNY 28,646,205.42, a significant turnaround from a loss of CNY 688,080,164.10 in the previous year, marking a 104.16% improvement[17]. - The net cash flow from operating activities was CNY 1,992,499,393.07, up 11.74% from CNY 1,783,087,747.59 in the prior year[17]. - Basic earnings per share improved to CNY 0.01 from a loss of CNY 0.25, reflecting a 104.00% increase[17]. - The company achieved operating revenue of CNY 13.885 billion and a net profit of CNY 26 million for the first half of 2024, indicating a positive development trend[28]. - Investment income surged to ¥181,332,096.11, a significant increase of 524.10% from a loss of ¥42,756,726.88 in the previous year, primarily due to gains from the disposal of subsidiaries[53]. - The revenue from the paper segment accounted for 89.52% of total revenue, amounting to ¥12,429,565,296.10, with a year-on-year growth of 9.99%[56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 77,501,281,219.73, a decrease of 2.50% from CNY 79,487,052,953.58 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were CNY 16,628,929,026.08, down 0.38% from CNY 16,692,175,196.53 at the end of the last year[17]. - The total bank borrowings amounted to RMB 36.305 billion, a decrease from RMB 39.430 billion at the end of the previous year[37]. - The group had cash and cash equivalents of RMB 11.386 billion, down from RMB 12.125 billion at the end of the previous year[37]. - The company's cash and cash equivalents at the end of the reporting period amounted to 11,386,010,001.55 CNY, accounting for 14.69% of total assets, a decrease of 0.56% compared to the previous year[63]. - Short-term borrowings decreased to 30,264,463,843.14 CNY, which is 39.05% of total liabilities, a reduction of 3.06% compared to the previous year[63]. Production and Capacity - The company has a production capacity of 11 million tons per year, making it the first paper enterprise in China to balance pulp and paper production capacity[28]. - The company has a total pulp and paper production capacity of 11 million tons annually, establishing a significant scale advantage in the industry[43]. - The company has established a complete supply chain for pulp production, achieving self-sufficiency in pulp supply with a total capacity of 4.3 million tons[41]. - The company operates multiple production bases across Shandong, Guangdong, Hubei, Jiangxi, and Jilin provinces[28]. Environmental Initiatives - The company invested over ¥8 billion in environmental protection initiatives, including advanced pollution control systems, leading to industry-leading wastewater reuse rates[50]. - The company has achieved a water reuse rate of over 75% through advanced "ultrafiltration + reverse osmosis" technology, saving hundreds of thousands of cubic meters of fresh water daily[89]. - The company has implemented advanced pollution control facilities, ensuring compliance with national environmental standards and actively promoting clean production[146]. - The company has invested over 8 billion RMB in environmental protection facilities, including systems for alkali recovery and wastewater treatment, achieving leading environmental indicators nationally[133]. - The company is actively implementing the national "dual carbon" policy, focusing on green development and environmental protection, which has increased operational costs in the short term[89]. Corporate Governance and Compliance - The company has implemented various internal control measures to maintain high corporate governance standards[104]. - The company has complied with the Corporate Governance Code as per the Hong Kong Stock Exchange rules during the reporting period[104]. - The company has revised its governance policies to strengthen the role of independent directors and improve compliance with corporate governance standards[142]. - The company emphasizes "green development" and "clean production" as part of its operational philosophy[133]. Employee and Talent Management - The total employee count as of June 30, 2024, was 9,963, with total employee wages for the first half of 2024 amounting to RMB 561.2925 million[37]. - The company emphasizes employee development and safety, conducting a series of safety education activities during the 23rd "Safety Production Month" to enhance safety awareness among employees[143]. - The company has established a performance evaluation and compensation management system, providing competitive salaries and clear promotion paths to retain talent[143]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, national policy adjustments, and industry competition, which investors should be aware of[3]. - The company emphasizes innovation-driven strategies and optimizing industrial structure to mitigate risks from macroeconomic policy changes[88]. Shareholder and Equity Management - The company has not distributed cash dividends or bonus shares for the half-year period, nor has it converted capital reserves into share capital[97]. - The company has a total of 96 individuals eligible for the first release of restricted stock under the 2020 A-share incentive plan, with 29,948,000 shares released for trading[101]. - The company has announced a series of shareholder pledges and releases throughout early 2024, indicating active management of shareholder equity[195]. Legal Matters - The company is involved in significant litigation, with a case involving a claim amount of HKD 389,112,432.44 related to a winding-up petition, which is currently under appeal[154]. - The company has ongoing litigation cases with a total amount of approximately CNY 68.31 million, which are not expected to significantly impact its financial status[155].