Financial Performance - The company's operating revenue for 2021 was CNY 32,464,083,379, representing a year-on-year increase of 10.59% compared to CNY 29,356,515,691 in 2020[11]. - The net profit attributable to shareholders for 2021 was CNY 5,363,525,692, a decrease of 4.74% from CNY 5,630,598,812 in 2020[11]. - The net cash flow from operating activities for 2021 was CNY 7,594,957,122, down 9.64% from CNY 8,405,472,760 in 2020[11]. - The total assets as of December 31, 2021, were CNY 52,549,618,050, an increase of 19.63% from CNY 43,928,509,151 at the end of 2020[12]. - The net assets attributable to shareholders increased by 13.4% to CNY 26,729,911,468 as of December 31, 2021, compared to CNY 23,571,375,317 at the end of 2020[12]. - The basic earnings per share for 2021 was CNY 2.58, a decrease of 4.09% from CNY 2.69 in 2020[12]. - The weighted average return on net assets for 2021 was 21.30%, down from 25.03% in 2020, a decrease of 3.73 percentage points[12]. - The company achieved a net profit of CNY 3,256,784,379 for the year 2021, with a consolidated net profit attributable to shareholders of CNY 5,363,525,692[36]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 1 per share (including tax) for the 2021 fiscal year[3]. - The company’s cash dividend distribution for 2020 was CNY 2,261,384,322, which accounted for 40.16% of the net profit attributable to shareholders[34]. - As of December 31, 2021, the total number of registered shareholders was 88,708, which decreased to 81,804 by February 28, 2022[82]. - The company’s total share capital structure consists of 2,096,599,855 shares, with A-shares accounting for 64.96% and H-shares for 35.04%[81]. - The company has not issued any preferred shares during the reporting period, and there are no rights for existing shareholders to purchase new shares based on their holdings[88]. Market Presence and Expansion - The company plans to continue expanding its market presence and invest in new product development to drive future growth[11]. - The company has over 270 subsidiaries across 14 provinces in China and eight countries, showcasing its extensive market presence[18]. - The company is actively pursuing mergers and acquisitions to expand its market reach and enhance its competitive advantage in the cement industry[21]. - The company plans to accelerate the development of overseas markets and new material businesses to ensure capacity increase and benefit expansion[67]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[94]. Operational Efficiency and Strategy - The company has implemented a procurement strategy that includes centralized purchasing and a digital procurement platform to enhance efficiency and transparency[20]. - The company has established a matrix organizational structure to support its business strategy and improve operational efficiency[19]. - The company has established a digital operation system with 272 digital projects implemented across all 33 industrial parks, enhancing operational efficiency and competitiveness[27]. - The company has implemented a strategy focusing on green and low-carbon development amid challenges in the cement industry[46]. - The company plans to optimize energy consumption indicators through collaborative utilization and centralized procurement to continuously reduce procurement costs[69]. Compliance and Governance - The company reported a standard unqualified audit opinion from Deloitte Huayong[3]. - The company emphasizes the importance of accurate and complete financial reporting in its annual report[3]. - The company has no violations of regulatory decision-making procedures for external guarantees[4]. - The company has established a risk management internal control system that complies with regulatory requirements, significantly enhancing its risk prevention capabilities[153]. - The company strictly adheres to corporate governance regulations, ensuring compliance with laws and maintaining transparency in operations[120]. Research and Development - The total R&D investment for the period was CNY 79,744,173, accounting for 0.25% of the operating revenue[42]. - The company holds 48 invention patents and 81 utility model patents as of the end of 2021, showcasing its strong technical innovation capabilities[23]. - The company plans to invest in new technology development, allocating 50 million RMB towards R&D initiatives[97]. - Research and development expenses rose to RMB 17,301,729, up from RMB 11,635,683, indicating a growth of approximately 48.5% year-over-year[188]. Environmental and Sustainability Initiatives - The company has implemented a green and low-carbon development strategy, achieving a peak carbon reduction path by 2025-2060, and has launched the world's first automated production line for CO2 absorption bricks from cement kiln flue gas[22]. - The company aims to enhance compliance monitoring to mitigate potential business risks and ensure 100% product quality compliance[68]. - The management team emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2030[95]. - The company is focusing on enhancing its digital marketing strategies, aiming for a 15% increase in online sales channels[99]. Financial Health and Liabilities - The debt-to-asset ratio increased to 44.1% in 2021 from 41.4% in 2020, reflecting a 2.7% rise[166]. - The company maintained a loan repayment rate of 100% and an interest payment rate of 100% during the reporting period[166]. - The company’s total liabilities increased to CNY 23,172 million in 2021 from CNY 18,189 million in 2020[169]. - The company’s total equity increased to RMB 25,739,938,498, up from RMB 23,367,682,745, representing an increase of approximately 10%[194]. Employee and Management Information - The total compensation for directors, supervisors, and senior management in 2021 amounted to RMB 33.95 million, with 20 executives receiving RMB 35.23 million from virtual stock incentives for 2018[91]. - The company employed a total of 16,283 personnel, including 6,054 production staff, 1,070 sales personnel, and 6,061 technical staff[110]. - The company has implemented a diverse training program for employees, adapting to different levels and types, to enhance core competitiveness[116]. - The company has maintained a liability insurance for directors and senior management to provide protection against legal actions[110]. Audit and Internal Controls - The audit fees for the domestic accounting firm Deloitte Huayong amounted to CNY 4,202,500, with a total of CNY 2,455,681 paid for external audit services[70]. - The company confirmed that all directors are responsible for the preparation of the financial statements, ensuring compliance with applicable accounting policies[151]. - The company has conducted special audits on 26 subsidiaries and implemented 22 business process audits in high-risk areas such as procurement, sales, and logistics[155]. - The independent auditor confirms compliance with ethical requirements related to independence and communicates any relationships that may reasonably be thought to affect independence[179].

Financial Performance - Operating revenue for the first quarter was RMB 6,531,000,365, representing a year-on-year increase of 5.52%[5] - Net profit attributable to shareholders decreased by 8.51% to RMB 671,783,419[5] - Basic and diluted earnings per share were both RMB 0.32, down 8.57% year-on-year[5] - Total comprehensive income for Q1 2022 was RMB 599,511,660, a decrease of 26% from RMB 809,678,544 in Q1 2021[17] - The company reported a total profit of RMB 883,467,396 for Q1 2022, down 15% from RMB 1,039,415,358 in Q1 2021[16] - Operating profit for Q1 2022 was -173,469,975 RMB, compared to -5,428,909 RMB in Q1 2021, indicating a significant decline in profitability[21] - Net profit for Q1 2022 was -130,427,319 RMB, worsening from -3,120,939 RMB in Q1 2021, reflecting ongoing financial challenges[21] Cash Flow - Net cash flow from operating activities was negative at RMB -319,399,790, a decrease of 210.92% compared to the previous year[5] - Cash flow from operating activities showed a net outflow of RMB 319,399,790, compared to a net inflow of RMB 287,961,671 in Q1 2021[18] - Cash inflow from operating activities for Q1 2022 was CNY 1,744,793,686, an increase of 13.5% compared to CNY 1,536,258,594 in Q1 2021[22] - Net cash flow from operating activities decreased to CNY 146,214,340 in Q1 2022, down 35.9% from CNY 228,030,019 in Q1 2021[22] - Cash inflow from financing activities reached CNY 2,149,419,274 in Q1 2022, an increase of 46.0% from CNY 1,471,425,660 in Q1 2021[22] - Net cash flow from financing activities improved to CNY 241,229,117 in Q1 2022, compared to a negative CNY 984,718,560 in Q1 2021[22] Assets and Liabilities - Total assets at the end of the reporting period were RMB 52,932,912,389, an increase of 0.73% from the previous year[5] - Current assets decreased from 16,126,716,577 RMB at the end of 2021 to 14,596,637,781 RMB as of March 31, 2022, a decline of approximately 9.5%[14] - Total liabilities decreased from 23,171,780,742 RMB to 22,866,017,524 RMB, a decline of approximately 1.3%[15] - Non-current assets increased from 36,422,901,473 RMB to 38,336,274,608 RMB, an increase of about 5.2%[14] - The company reported a cash balance of 7,995,108,815 RMB, down from 8,836,439,385 RMB, a decrease of approximately 9.5%[14] - Long-term debt of 5,654,468,024 RMB, up from 5,081,924,506 RMB, an increase of about 11.3%[15] Shareholder Information - The number of A-share shareholders was 64,719 as of March 31, 2022[10] - Total number of common shareholders at the end of the reporting period was 64,720[11] - The largest shareholder, Hong Kong Central Clearing Limited, holds 734,720,000 shares, representing 35.04% of total shares[12] Research and Development - Research and development expenses increased by 95.69%, reflecting a focus on environmental protection and new materials[8] - Research and development expenses increased significantly to RMB 7,804,315, up 96.1% from RMB 3,988,037 in the same period last year[16] - Research and development expenses increased significantly to 252,495 RMB in Q1 2022, compared to only 12,579 RMB in Q1 2021, indicating a focus on innovation[21] Investment Activities - The company experienced a significant decrease in investment income by 231.81% due to reduced earnings from joint ventures[8] - Cash inflow from investment activities totaled CNY 1,925,497,760 in Q1 2022, significantly up from CNY 617,533,439 in Q1 2021, marking a 211.5% increase[22] - Net cash flow from investment activities was negative CNY 1,108,256,845 in Q1 2022, compared to a positive CNY 268,260,691 in Q1 2021[22] - Cash outflow for investment activities was CNY 3,033,754,605 in Q1 2022, compared to CNY 349,272,748 in Q1 2021, indicating a substantial increase in investment expenditures[22] Currency and Foreign Exchange - The company experienced a foreign currency translation loss of RMB 105,988,419 in Q1 2022, compared to a gain of RMB 569,400 in Q1 2021[17] - The company experienced a negative impact of CNY 1,848,984 from foreign exchange fluctuations on cash and cash equivalents in Q1 2022[22]

Financial Performance - In 2021, the company's operating revenue reached RMB 32,464,083,379, representing a year-on-year increase of 10.59% compared to RMB 29,356,515,691 in 2020[16] - The net profit attributable to shareholders of the listed company for 2021 was RMB 5,363,525,692, a decrease of 4.74% from RMB 5,630,598,812 in 2020[16] - The net cash flow from operating activities was RMB 7,594,957,122, down 9.64% from RMB 8,405,472,760 in the previous year[16] - As of the end of 2021, the total assets amounted to RMB 52,549,618,050, an increase of 19.63% from RMB 43,928,509,151 at the end of 2020[16] - The net assets attributable to shareholders of the listed company increased to RMB 26,729,911,468, reflecting a growth of 13.4% compared to RMB 23,571,375,317 at the end of 2020[16] - The basic earnings per share for 2021 were RMB 2.58, a decrease of 4.09% from RMB 2.69 in 2020[17] - The weighted average return on equity was 21.30%, down 3.73 percentage points from 25.03% in 2020[17] - The total profit amounted to 7.373 billion RMB, with a net profit attributable to shareholders of 5.364 billion RMB, representing a decline of 3.79% and 4.74% respectively compared to the previous year[37] Operational Highlights - In Q1 2021, the company reported revenue of RMB 6.19 billion, which increased to RMB 10.01 billion in Q4, showing a growth of approximately 61% from the first quarter to the fourth quarter[19] - The net profit attributable to shareholders was RMB 734 million in Q1 and reached RMB 1.8 billion in Q4, indicating a growth of about 145% over the same period[19] - The net cash flow from operating activities increased significantly from RMB 288 million in Q1 to RMB 4.03 billion in Q4, reflecting a strong operational performance[19] - The sales volume of cement and clinker reached 75.27 million tons, a decrease of 0.96% year-on-year, while aggregate sales increased by 51.71% to 34.97 million tons[41] - The company achieved operating revenue of 32.464 billion RMB, a year-on-year increase of 10.59%[37] Strategic Initiatives - The company completed the acquisition of cement assets in Zambia and Malawi, adding 1.75 million tons of cement capacity during the year[23] - The aggregate production capacity is expected to reach 270 million tons per year after the completion of 10 ongoing aggregate projects, enhancing the company's competitive strength[23] - The company has successfully launched 20 concrete integration stations, increasing concrete production capacity by 16.7 million cubic meters per year[23] - The company has initiated 16 projects for alternative fuel, receiving environmental approvals for over 10 projects, demonstrating commitment to sustainable practices[23] - The company has developed the world's first automated production line for CO₂ absorption from cement kiln flue gas, showcasing its innovation in green technology[24] Research and Development - The company’s research and development expenses increased by 27.55% to 71.4 million RMB[40] - The company developed the C140 ultra-high-performance concrete, successfully applied in bridge projects in Shanghai and other locations[25] - The company is committed to investing in research and development to drive future growth and innovation[81] - The company is investing 500 million RMB in research and development for new technologies over the next two years[83] Sustainability and Environmental Impact - The company has implemented clean production practices to continuously reduce the environmental impact of its operations[128] - The company is focused on cultural integration and enhancing management and technical capabilities post-acquisition[125] - The company aims to achieve a 10% reduction in overall emissions by the end of the next fiscal year[130] - The company is actively monitoring emissions across its subsidiaries, with a focus on maintaining compliance with environmental regulations[131] - The company processed 2.12 million tons of municipal waste and derived fuels in 2021, saving approximately 440,000 tons of standard coal and reducing CO2 emissions by 1.21 million tons, resulting in a net CO2 reduction of over 2.47 million tons compared to landfill disposal[146] Market Expansion and Future Outlook - The company plans to sell approximately 74.46 million tons of cement and clinker, 18.07 million cubic meters of concrete, and 78.22 million tons of aggregates, with a target revenue of 37 billion yuan[69] - The company plans to continue expanding its market presence and exploring new product development opportunities[176] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[83] - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[91] Corporate Governance and Management - The total pre-tax remuneration for the company's directors, supervisors, and senior management was confirmed to be 98.013 million yuan at the end of the reporting period[99] - The company has implemented a comprehensive compensation system to align employee remuneration with company performance, enhancing motivation and productivity[116] - The company held 14 board meetings in the year, with 9 conducted via communication and 5 combining on-site and communication methods[106] - The management team emphasized the importance of sustainability initiatives, targeting a 50% reduction in carbon emissions by 2025[91] Financial Management - The company’s long-term borrowings increased by 45.02% to 5,081,924,506 RMB, reflecting additional project financing[57] - The company issued new corporate bonds totaling 1.3 billion RMB, contributing to a 71.21% increase in payable bonds to 3,327,860,620 RMB[57] - The company maintained a loan repayment rate of 100% and an interest payment rate of 100% in 2021[190] - The company’s accounts receivable amounted to RMB 956,580,152, with an expected credit loss provision of RMB 164,229,940 as of December 31, 2021[191]

[Important Notice](index=3&type=section&id=Important%20Notice) This section confirms the report's authenticity, details director attendance, and states the audit status [1.1 Statement on Report Authenticity](index=3&type=section&id=1.1%20Statement%20on%20Report%20Authenticity) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions; the chairman, legal representative, president, chief accountant, and head of accounting department also guarantee the truthfulness, accuracy, and completeness of the financial statements - The company's board of directors, supervisory board, and senior management commit to the truthfulness, accuracy, and completeness of the quarterly report content[5](index=5&type=chunk) - Chairman Xu Yongmo, President Li Yeqing, Chief Accountant Kong Lingling, and Head of Accounting Department Wu Xin guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [1.2 Information on Absent Directors](index=3&type=section&id=1.2%20Information%20on%20Absent%20Directors) Director Ian Riley was unable to attend the board meeting due to personal reasons and did not delegate attendance to others Absent Directors | Absent Director Name | Position | Reason for Absence | Delegate Name | | :--- | :--- | :--- | :--- | | Ian Riley | Director | Personal Reasons | / | [1.3 Report Audit Status](index=3&type=section&id=1.3%20Report%20Audit%20Status) This company's third-quarter report is unaudited - This company's third-quarter report is unaudited[6](index=6&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) This section provides an overview of the company's key financial performance and shareholder structure [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased, with a significant rise in net assets attributable to the parent company; year-to-date, operating cash flow, revenue, net profit, and non-recurring net profit all saw substantial growth, alongside a significant increase in weighted average return on equity, basic earnings per share, and diluted earnings per share Overview of Key Financial Data | Indicator | End of Current Period / Year-to-Date | End of Prior Year / Year-to-Date Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet** | | | | | Total Assets | 32,255,216,259 Yuan | 30,499,323,197 Yuan | 5.76 | | Net Assets Attributable to Shareholders | 14,905,392,478 Yuan | 11,899,804,274 Yuan | 25.26 | | **Cash Flow Statement** | | | | | Net Cash Flow from Operating Activities | 5,151,088,183 Yuan | 2,001,015,721 Yuan | 157.42 | | **Income Statement** | | | | | Operating Revenue | 19,040,138,370 Yuan | 14,349,891,455 Yuan | 32.68 | | Net Profit Attributable to Shareholders | 3,411,384,548 Yuan | 1,049,728,320 Yuan | 224.98 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 3,376,360,586 Yuan | 1,000,904,944 Yuan | 237.33 | | Weighted Average Return on Equity (%) | 25.41 | 10.05 | Increase 15.36 percentage points | | Basic Earnings Per Share (Yuan/Share) | 2.28 | 0.70 | 225.71 | | Diluted Earnings Per Share (Yuan/Share) | 2.28 | 0.70 | 225.71 | Non-Recurring Gains and Losses Items and Amounts | Item | Current Period Amount (July-Sept) | Year-to-Date Amount (Jan-Sept) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -5,678,048 Yuan | -10,109,743 Yuan | | Government Grants Included in Current Profit/Loss | 10,206,761 Yuan | 40,785,477 Yuan | | Gains from Investment Cost of Subsidiaries, Associates, and Joint Ventures Being Less Than Fair Value of Identifiable Net Assets | - | 4,489,836 Yuan | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | -12,847 Yuan | 3,978,611 Yuan | | Other Non-Operating Income and Expenses Apart from the Above | 9,200,773 Yuan | 3,306,524 Yuan | | Impact on Minority Interests (After Tax) | 1,942,495 Yuan | 425,324 Yuan | | Income Tax Impact | 2,205,739 Yuan | -7,852,067 Yuan | | **Total** | **17,864,873 Yuan** | **35,023,962 Yuan** | [2.2 Shareholder Ownership](index=4&type=section&id=2.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 48,013 shareholders; among the top ten, HOLCHIN B.V. and Huaxin Cement Co., Ltd. were major shareholders, holding 39.85% and 16.01% respectively, with HOLCHIN B.V. and HOLPAC LIMITED acting in concert - As of the end of the reporting period, the company had **48,013 shareholders**[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HOLCHIN B.V. | 596,817,018 | 39.85 | Overseas Legal Person | | Huaxin Cement Co., Ltd. | 239,685,714 | 16.01 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 37,359,177 | 2.49 | Unknown | | HOLPAC LIMITED | 29,779,888 | 1.99 | Overseas Legal Person | | UBS AG | 24,040,777 | 1.60 | Unknown | | Central Huijin Asset Management Co., Ltd. | 21,768,700 | 1.45 | Unknown | | FTIF-TEMPLETON ASIAN SMALLER COMPANIES FUND | 13,235,738 | 0.88 | Unknown | | TEMPLETON GLOBAL INVESTMENT TRUST-TEMPLETON EMERGING MARKETS SMALL CAP FUND | 9,955,953 | 0.66 | Unknown | | FTIF-TEMPLETON EMERGING MKT SMALLER COMPANIES FUND | 9,084,567 | 0.60 | Unknown | | China Railway Wuhan Bureau Group Co., Ltd. | 8,064,000 | 0.54 | Unknown | - Holchin B.V. and Holpac Limited are parties acting in concert[11](index=11&type=chunk) [Significant Matters](index=6&type=section&id=Significant%20Matters) This section details significant changes in financial indicators, progress on key issues, unfulfilled commitments, and the annual net profit forecast [3.1 Significant Changes in Key Financial Indicators and Reasons](index=6&type=section&id=3.1%20Significant%20Changes%20in%20Key%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20and%20Their%20Reasons) The company experienced significant changes across multiple key indicators in its balance sheet, income statement, and cash flow statement; balance sheet items like prepayments, construction in progress, advances from customers, employee compensation payable, taxes payable, and non-current liabilities due within one year increased significantly, while short-term borrowings, long-term borrowings, and bonds payable decreased; the income statement showed substantial growth in operating revenue, taxes and surcharges, investment income, other income, income tax expense, and net profit attributable to the parent, with a decrease in financial expenses and non-operating income; the cash flow statement reported a significant increase in net cash flow from operating activities, while net cash flow from investing and financing activities showed negative growth [3.1.1 Changes in Key Balance Sheet Financial Indicators](index=6&type=section&id=3.1.1%20Changes%20in%20Key%20Balance%20Sheet%20Financial%20Indicators%20Compared%20to%20the%20Beginning%20of%20the%20Year%20and%20Reasons) As of the end of the reporting period, several balance sheet items showed significant changes from the beginning of the year; prepayments and construction in progress substantially increased due to higher prepaid fuel costs and increased investment in cement, environmental, and new building material projects; advances from customers, employee compensation payable, and taxes payable rose primarily due to improved cement supply-demand, performance growth, and increased profitability; concurrently, short-term borrowings, long-term borrowings, and bonds payable decreased due to improved cash flow and reclassification of maturing borrowings to current liabilities Changes in Key Balance Sheet Items (Compared to Beginning of Year) | Item | Period-End Balance (Yuan) | Beginning-of-Year Balance (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Prepayments | 452,498,648 | 225,637,668 | 226,860,980 | 101% | Increase in prepaid fuel costs | | Construction in Progress | 2,273,405,674 | 1,302,962,540 | 970,443,134 | 74% | Increased investment in cement, environmental, and new building material projects | | Short-term Borrowings | 614,500,000 | 1,141,500,000 | -527,000,000 | -46% | Improved cash flow, reduction in current borrowings | | Advances from Customers | 971,156,635 | 562,705,382 | 408,451,253 | 73% | Improved cement supply-demand, increased customer prepayments | | Employee Compensation Payable | 467,287,327 | 281,087,404 | 186,199,923 | 66% | Significant performance increase, substantial growth in salaries payable, but not yet disbursed | | Taxes Payable | 698,835,707 | 507,945,221 | 190,890,486 | 38% | Increased profitability leading to higher income tax | | Non-current Liabilities Due Within One Year | 2,458,500,765 | 1,682,733,582 | 775,767,183 | 46% | Increase in long-term borrowings nearing maturity | | Long-term Borrowings | 2,779,818,621 | 4,058,959,121 | -1,279,140,500 | -32% | Improved cash flow leading to reduced borrowings and reclassification of maturing borrowings to current liabilities | | Bonds Payable | 2,296,525,157 | 3,295,605,346 | -999,080,189 | -30% | One corporate bond reclassified to due within one year | | Other Comprehensive Income | -6,530,120 | -20,053,747 | 13,523,627 | -67% | Appreciation of the functional currency (USD) of overseas subsidiaries against RMB | | Retained Earnings | 10,142,634,351 | 7,150,569,774 | 2,992,064,577 | 42% | Increased profitability | [3.1.2 Changes in Key Income Statement Financial Indicators](index=7&type=section&id=3.1.2%20Changes%20in%20Key%20Income%20Statement%20Financial%20Indicators%20Compared%20to%20the%20Same%20Period%20Last%20Year%20and%20Reasons) Year-to-date, the company's income statement showed strong performance; operating revenue and net profit attributable to the parent company significantly increased due to rising cement product prices; taxes and surcharges, along with income tax expense, also rose considerably with increased revenue and profitability; financial expenses decreased due to a substantial reduction in interest-bearing debt and exchange losses, while investment income and other income improved due to increased profits from associates and higher tax refunds for comprehensive resource utilization Changes in Key Income Statement Items (Compared to Same Period Last Year) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 19,040,138,370 | 14,349,891,455 | 4,690,246,915 | 33% | Increase in cement product prices | | Taxes and Surcharges | 355,846,295 | 205,811,249 | 150,035,046 | 73% | Growth in revenue scale and new environmental protection tax | | Financial Expenses | 360,531,701 | 534,521,340 | -173,989,639 | -33% | Significant reduction in interest-bearing debt and exchange losses | | Investment Income | 85,970,675 | 61,387,688 | 24,582,987 | 40% | Increased profits from associates | | Other Income | 161,391,029 | 70,661,690 | 90,729,339 | 128% | Increase in tax refunds for comprehensive resource utilization | | Non-Operating Income | 21,477,223 | 72,183,034 | -50,705,811 | -70% | Decrease in government grants | | Income Tax Expense | 893,565,340 | 262,178,126 | 631,387,214 | 241% | Increase in cement product prices, increased profitability | | Net Profit Attributable to Parent Company Owners | 3,411,384,548 | 1,049,728,320 | 2,361,656,228 | 225% | Increase in cement product prices, increased profitability | [3.1.3 Changes in Key Cash Flow Statement Financial Indicators](index=7&type=section&id=3.1.3%20Changes%20in%20Key%20Cash%20Flow%20Statement%20Financial%20Indicators%20Compared%20to%20the%20Same%20Period%20Last%20Year%20and%20Reasons) Year-to-date, net cash flow from operating activities significantly increased due to rising cement product prices and revenue growth; net cash flow from investing activities saw a larger negative growth due to increased investment in construction projects; net cash flow from financing activities also experienced a larger negative growth due to a reduction in new borrowings Changes in Key Cash Flow Statement Items (Compared to Same Period Last Year) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Amount (Yuan) | Change Percentage (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 5,151,088,183 | 2,001,015,721 | 3,150,072,462 | 157% | Increase in cement product prices, growth in revenue scale | | Net Cash Flow from Investing Activities | -1,325,024,023 | -905,098,045 | -419,925,978 | -46% | Increased investment in construction projects | | Net Cash Flow from Financing Activities | -3,056,330,262 | -1,805,934,608 | -1,250,395,654 | 69% | Decrease in new borrowings | [3.2 Progress of Significant Matters](index=7&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) There are no significant matters requiring disclosure regarding their progress, impact, or solutions during this reporting period - There are no significant matters requiring disclosure regarding their progress, impact, or solutions during this reporting period[17](index=17&type=chunk) [3.3 Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20Overdue%20Unfulfilled%20Commitments%20During%20the%20Reporting%20Period) There are no overdue unfulfilled commitments during this reporting period - There are no overdue unfulfilled commitments during this reporting period[17](index=17&type=chunk) [3.4 Full-Year Net Profit Forecast](index=8&type=section&id=3.4%20Warning%20and%20Explanation%20Regarding%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period%20Compared%20to%20Same%20Period%20Last%20Year) The company forecasts a year-on-year increase of over 130% in net profit attributable to parent company owners for 2018, primarily driven by national supply-side structural reforms, industry capacity reduction, improved supply-demand, significant price increases for main products (cement and clinker), and enhanced operational management efficiency - Net profit attributable to parent company owners for **2018 is projected to increase by over 130%** year-on-year[18](index=18&type=chunk) - Net profit growth is primarily attributed to national supply-side structural reforms, industry production and capacity reduction, improved supply-demand, and significant price increases for cement and clinker[18](index=18&type=chunk) - Improved company operational management also contributed to profitability growth[18](index=18&type=chunk) [Appendix](index=8&type=section&id=Appendix) This appendix includes the company's unaudited financial statements and confirms the absence of an audit report for the period [4.1 Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited consolidated and parent company balance sheets as of September 30, 2018, consolidated and parent company income statements for January-September 2018, and consolidated and parent company cash flow statements for January-September 2018 [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet as of September 30, 2018, presents the company's assets, liabilities, and owners' equity at the period end - The consolidated balance sheet shows that as of September 30, 2018, the company's total assets were **32,255,216,259 Yuan**, and total owners' equity attributable to the parent company was **14,905,392,478 Yuan**[22](index=22&type=chunk) [Parent Company Balance Sheet](index=10&type=section&id=Parent%20Company%20Balance%20Sheet) The parent company balance sheet as of September 30, 2018, reflects the financial position at the parent company level - The parent company balance sheet shows that as of September 30, 2018, the parent company's total assets were **19,798,577,933 Yuan**, and total owners' equity was **10,301,832,422 Yuan**[25](index=25&type=chunk) [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) The consolidated income statement for January-September 2018 shows significant year-on-year growth in total operating revenue and net profit, reflecting strong operating performance - From January to September 2018, the company's consolidated total operating revenue was **19,040,138,370 Yuan**, a **33% year-on-year increase**; net profit attributable to parent company owners was **3,411,384,548 Yuan**, a **225% year-on-year increase**[28](index=28&type=chunk)[30](index=30&type=chunk) [Parent Company Income Statement](index=13&type=section&id=Parent%20Company%20Income%20Statement) The parent company income statement for January-September 2018 shows growth in both operating revenue and net profit - From January to September 2018, the parent company's operating revenue was **1,729,770,080 Yuan**, and net profit was **1,115,512,507 Yuan**[31](index=31&type=chunk)[32](index=32&type=chunk) [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) The consolidated cash flow statement for January-September 2018 indicates a significant increase in net cash flow from operating activities, while net cash flows from investing and financing activities were both negative - From January to September 2018, net cash flow from operating activities was **5,151,088,183 Yuan**, a **157% year-on-year increase**[34](index=34&type=chunk) - Net cash flow from investing activities was **-1,325,024,023 Yuan**, and net cash flow from financing activities was **-3,056,330,262 Yuan**[34](index=34&type=chunk) [Parent Company Cash Flow Statement](index=16&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) The parent company cash flow statement for January-September 2018 shows negative net cash flow from operating activities, positive net cash flow from investing activities, and positive net cash flow from financing activities - From January to September 2018, the parent company's net cash flow from operating activities was **-850,910,143 Yuan**, net cash flow from investing activities was **522,262,812 Yuan**, and net cash flow from financing activities was **461,055,220 Yuan**[36](index=36&type=chunk)[37](index=37&type=chunk) [4.2 Audit Report](index=17&type=section&id=4.2%20Audit%20Report) There is no audit report for this reporting period - There is no audit report for this reporting period[38](index=38&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2018 reached RMB 11.88 billion, representing a 26.76% increase compared to RMB 9.37 billion in the same period last year[19]. - Net profit attributable to shareholders was RMB 2.07 billion, a significant increase of 184.07% from RMB 727.96 million in the previous year[19]. - The basic earnings per share for the reporting period was RMB 1.38, up 181.63% from RMB 0.49 in the same period last year[20]. - The weighted average return on equity increased to 16.16%, up 9.11 percentage points from 7.05% in the previous year[20]. - The company reported a net cash flow from operating activities of RMB 2.69 billion, an increase of 123.84% compared to RMB 1.20 billion in the same period last year[19]. - The total profit for the period reached 2.80 billion RMB, an increase of 204.55% compared to the previous year[32]. - The company sold 32.16 million tons of cement and clinker, a year-on-year increase of 1.13%[32]. - The average cement price in China reached 419 RMB per ton, up 79 RMB per ton from the previous year[31]. - The company’s brand value increased by 20.39% to 45.586 billion RMB, ranking 88th in the "China 500 Most Valuable Brands" list[28]. Production Capacity and Operations - The cement business accounted for 88% of the company's total operating revenue, indicating its dominant position within the company's operations[23]. - The company has a total production capacity of 90 million tons of cement per year, along with other related production capacities[23]. - The construction of new cement production lines is progressing, with a 3,000 tons/day line in Tibet expected to start operations by the end of August 2018[33]. Financial Position - The net assets attributable to shareholders at the end of the reporting period were RMB 13.55 billion, a 13.83% increase from RMB 11.90 billion at the end of the previous year[19]. - The company has a total of 10.00 billion RMB in bonds outstanding, with a 5.65% interest rate for the 2012 first phase bond maturing on May 17, 2019[103]. - The company has successfully paid interest on its 2012 first phase corporate bonds on May 17, 2018[104]. - The total equity attributable to shareholders increased to CNY 10,087,300,176 from CNY 9,608,905,628, marking an increase of 4.9%[120]. - The company reported a significant reduction in financial expenses, decreasing to CNY 254,624,384 from CNY 399,554,360, a decline of 36.3%[123]. Investment and Cash Flow - The company’s investment activities generated a net cash outflow of 583.38 million RMB, a decrease of 32.39% compared to the previous year[35]. - The company’s financing activities resulted in a net cash outflow of CNY 2,201,784,260, compared to CNY 1,832,499,503 in the previous year, indicating an increase in cash outflow[127]. - The company reported a total investment in financial assets of CNY 31,649,920, with a report period loss of CNY 6,768,788[44]. Corporate Governance and Compliance - The company has appointed Deloitte Huayong as the new auditor for the 2018 financial year, replacing PwC after 13 years of service[52]. - The company has conducted two shareholder meetings during the reporting period, ensuring compliance with legal and procedural requirements[50]. - The company is facing no new risk factors in 2018, as detailed in the previous annual report[47]. - The company has no significant litigation or arbitration matters reported during the period[53]. Environmental Responsibility - The company reported a total pollutant discharge of 190.19 tons for SO2, 629.97 tons for NOX, and 68.95 tons for particulate matter from its Yangxin plant, all within regulatory limits[74]. - The company has implemented a strict responsibility system to ensure compliance with environmental standards and enhance accountability[73]. - The company is committed to increasing efforts in environmental protection and pollution control as part of its operational strategy[73]. - The company is actively analyzing weak points in its operations to develop specific corrective measures for better compliance with environmental regulations[73]. Social Responsibility - The company invested 5,417,500 RMB in targeted poverty alleviation efforts, helping 528 registered impoverished individuals to escape poverty[68]. - The company supported 74 registered impoverished households in achieving employment through vocational training[70]. - The company provided 250,000 RMB in special poverty alleviation funds for projects in the Shannan region of Tibet[68]. Shareholder Information - Total shares held by the top ten shareholders include HOLCHIN B.V. with 596,817,018 shares (39.85%) and Huaxin Group Co., Ltd. with 239,685,714 shares (16.01%)[93]. - The company has not experienced any changes in total shares or capital structure during the reporting period[90]. - The company has not disclosed any changes in the controlling shareholder or actual controller during the reporting period[95]. Future Outlook - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[123]. - Future expansion plans include increasing production capacity while adhering to environmental regulations, aiming for improved efficiency in emissions control[201]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[201].

Financial Performance - In 2017, the company's operating revenue reached CNY 20,889,291,990, representing a 54.44% increase compared to CNY 13,525,759,490 in 2016[21] - The net profit attributable to shareholders of the listed company was CNY 2,077,640,568, a significant increase of 359.72% from CNY 451,940,413 in the previous year[21] - The basic earnings per share for 2017 was CNY 1.39, up 363.33% from CNY 0.30 in 2016[22] - The total operating revenue for the year reached CNY 20.89 billion, an increase of 29.55% compared to the previous year[52] - The gross profit margin improved by 3.27 percentage points to 54.44%[52] - The company's EBITDA for 2017 was CNY 4,939,292,252, representing a 63.31% increase compared to CNY 3,024,500,833 in 2016[175] - The current ratio improved to 0.95 in 2017 from 0.76 in 2016, reflecting a 25% increase[175] - The debt-to-asset ratio decreased to 57% in 2017 from 59% in 2016, indicating a 2% reduction[175] - The interest coverage ratio increased significantly to 6.01 in 2017 from 2.50 in 2016, a 140.4% improvement[175] Assets and Liabilities - The total assets of the company at the end of 2017 amounted to CNY 30,499,323,197, an increase of 11.2% from CNY 27,426,749,410 in 2016[21] - The company's equity totaled CNY 13,155,571,132, up from CNY 11,373,697,427, reflecting an increase of approximately 15.7%[200] - Total liabilities increased to CNY 17,343,752,065 from CNY 16,053,051,983, marking a rise of about 8.0%[200] - Cash and cash equivalents at the end of the period were CNY 3,606,246,276, a decrease from CNY 3,719,378,221, indicating a decline of about 3.0%[199] - Accounts receivable rose to CNY 642,210,893 from CNY 502,371,725, representing an increase of approximately 27.9%[199] - Inventory increased significantly to CNY 1,621,482,745 from CNY 1,174,261,964, reflecting a growth of about 38.0%[199] - Long-term borrowings rose to CNY 4,058,959,121 from CNY 3,634,947,631, indicating an increase of approximately 11.7%[200] Operational Highlights - The company achieved a total sales volume of cement and clinker of 68.72 million tons, representing a year-on-year growth of 30.4%[46] - The company’s sales of aggregates reached 11.53 million tons, marking a year-on-year increase of 53.8%[46] - The company reported a significant increase in sales expenses, rising by 26.83% to CNY 1.40 billion[57] - The company completed safety audits and initiated the creation of a national-level safety production standardization enterprise, enhancing its compliance and safety management[43] Market and Industry Position - In 2017, the company's cement business accounted for 89% of total revenue, indicating its dominant position in the overall business[31] - The cement industry in China generated revenue of 914.9 billion RMB in 2017, with a year-on-year growth of 17.89%, and total profit of 87.7 billion RMB, up 94.41%[42] - The company plans to continue its mergers and acquisitions strategy to enhance operational scale and market presence[61] - The company is exploring market expansion opportunities, particularly in regions with higher demand for cement products[115] Research and Development - The company’s R&D expenditure was 91.13 million RMB, which is a 24.62% increase from the previous year[48] - Research and development expenses totaled CNY 91.13 million, accounting for 0.44% of total operating revenue[57] - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[138] Environmental Compliance - The company reported emissions data showing that SO2 levels at the kiln tail were 96.85 mg/m³, exceeding the limit of 200 mg/m³[114] - The company aims to reduce SO2 emissions, with current readings at 6.18 mg/m³, well below the 200 mg/m³ limit[115] - The company is actively monitoring emissions across its facilities, with a focus on maintaining compliance with environmental standards[115] - The company maintained strict compliance with environmental regulations, ensuring all construction projects adhered to environmental impact assessment requirements[117] Corporate Governance - The company’s governance structure complies with modern enterprise systems and relevant regulations, ensuring proper operation[154] - The strategic committee held two meetings to discuss industry reforms and development strategies, while the audit committee held three meetings to review financial reports and internal controls[156] - The company did not experience any significant internal control deficiencies during the reporting period[160] Shareholder Information - The largest shareholder, Holchin B.V., holds 596,817,018 shares, representing 39.85% of the total shares[125] - The total number of ordinary shareholders at the end of the reporting period was 60,503, down from 67,137 at the end of the previous month[123] - The company has not reported any changes in the controlling shareholder during the reporting period[127] Social Responsibility - In 2017, the company invested a total of 2.1522 million RMB in targeted poverty alleviation efforts, including 67,300 RMB in cash and 2.0849 million RMB in donated materials, helping 111 registered impoverished individuals to escape poverty[108] - The company has committed to ongoing support for vulnerable groups, including disabled individuals, rural orphans, and left-behind children[111] - The company engaged in social poverty alleviation by donating materials for infrastructure projects in impoverished villages, including roads and housing repairs[108]

Financial Performance - Operating revenue for the first quarter was CNY 4,508,950,906, representing a year-on-year increase of 16.32%[7] - Net profit attributable to shareholders was CNY 530,364,403, a significant increase of 458.73% compared to the same period last year[7] - Basic earnings per share were CNY 0.35, up 483.33% from CNY 0.06 in the same period last year[7] - The company's net profit for the reporting period reached ¥582,029,007, a significant increase of 656% compared to ¥76,985,919 in the same period last year[14] - Operating profit surged to ¥728,009,064, reflecting a 777% increase from ¥82,969,007 in the previous year, driven by higher product prices[14] - Total operating revenue for Q1 2018 reached ¥4,508,950,906, an increase of 16.3% compared to ¥3,876,399,209 in the same period last year[24] - Net profit for Q1 2018 was ¥582,029,007, compared to ¥76,985,919 in Q1 2017, representing a year-over-year increase of 658.5%[25] - The company reported a total profit of ¥725,727,054 for Q1 2018, compared to ¥112,900,651 in Q1 2017[25] Cash Flow - Cash flow from operating activities reached CNY 596,907,873, an increase of 84.95% year-on-year[7] - The net cash flow from operating activities improved by 85%, totaling ¥596,907,873, up from ¥322,734,716 in the previous year, indicating enhanced operational performance[15] - Cash inflow from operating activities totaled ¥5,530,475,072, compared to ¥4,463,678,400 in the prior period, marking a growth of about 24%[30] - The net cash flow from investing activities was ¥32,248,998, a decrease from ¥271,388,091 in the prior period, reflecting a decline of approximately 88%[30] - The net cash flow from financing activities was -¥1,198,961,351, worsening from -¥939,745,435 in the previous period[30] Assets and Liabilities - Total assets at the end of the reporting period were CNY 29,698,967,787, a decrease of 2.62% compared to the end of the previous year[7] - The company's total liabilities decreased to ¥15,999,015,294 from ¥17,343,752,065, indicating improved financial stability[20] - Total liabilities decreased from ¥9,866,239,096 in the previous period to ¥8,817,422,833 in the current period[24] - The company's total assets as of March 31, 2018, amounted to ¥29,698,967,787, a decrease from ¥30,499,323,197 at the beginning of the year[18] Shareholder Information - The total number of shareholders at the end of the reporting period was 61,455[10] - The largest shareholder, HOLCHIN B.V., held 39.85% of the shares, totaling 596,817,018 shares[10] Other Financial Metrics - The weighted average return on equity increased to 4.36%, up 3.41 percentage points from the previous year[7] - The company reported a significant increase in accounts receivable by 40% to CNY 897,287,097 due to increased revenue scale[12] - Prepayments increased by 38% to CNY 311,206,526, attributed to higher fuel and maintenance prepayments[12] - Investment income rose dramatically by 4961% to ¥13,738,134, compared to only ¥271,476 last year, attributed to recognized investment gains from associates[14] - Total revenue increased significantly, leading to a rise in tax expenses by 300% to ¥143,698,047, compared to ¥35,914,732 last year[14] - The company reported a significant decline in non-operating income, which fell by 93% to ¥2,686,710 from ¥39,177,715, due to reclassification of government subsidies[14] Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to ¥3,086,217,531 from ¥3,606,246,276, reflecting a reduction in liquidity[18] - The total cash and cash equivalents at the end of the period stood at ¥2,955,463,695, down from ¥3,291,481,832 in the prior period[31] - The company reported a decrease in cash and cash equivalents of ¥576,845,200, compared to a decrease of ¥350,804,285 in the previous period[30]

Financial Performance - Net profit attributable to shareholders surged by 552.79% to CNY 1.05 billion for the first nine months of the year[6]. - Operating revenue for the first nine months reached CNY 14.35 billion, reflecting a 56.6% increase year-on-year[6]. - Basic earnings per share rose to CNY 0.70, a 536.36% increase from CNY 0.11 in the previous year[7]. - Operating profit for the first nine months was CNY 1,374,648,162, compared to CNY 225,801,194 in the previous year, representing a growth of approximately 508%[25]. - Net profit for the first nine months was CNY 1,626,477,945, compared to CNY 331,620,301 in the previous year, representing a significant increase[28]. - The company reported a total comprehensive income of CNY 1,631,501,115 for the first nine months, compared to CNY 330,079,774 in the previous year[28]. Assets and Liabilities - Total assets increased by 7.02% to CNY 29.35 billion compared to the end of the previous year[6]. - The total liabilities increased to CNY 9,276,112,883 from CNY 8,816,845,724, reflecting a rise of about 5.2%[22]. - The total liabilities increased to ¥17,238,907,572, up from ¥16,053,051,983, reflecting the impact of acquisitions and operational expansion[19]. - Current assets totaled CNY 9,381,789,177, up from CNY 8,923,151,023, indicating an increase of approximately 5.1%[21]. - The company’s long-term debt increased by 65% to ¥3,295,133,742 from ¥1,992,645,597, reflecting the transfer of bonds to long-term liabilities[11]. Cash Flow - The net cash flow from operating activities increased by 16.89% to CNY 2.00 billion compared to the same period last year[6]. - Cash flow from operating activities generated a net amount of CNY 2,001,015,721, up from CNY 1,711,880,475 year-on-year[29]. - The company reported a decrease in cash flow from investing activities, with a net cash outflow of CNY 905,098,045 for the first nine months[29]. - Cash inflow from financing activities totaled $5.60 billion, an increase from $4.39 billion year-over-year[32]. - The company incurred financial expenses of CNY 133,128,756 for the first nine months, compared to CNY 115,448,780 in the previous year[27]. Shareholder Information - The total number of shareholders reached 65,841 by the end of the reporting period[8]. - The largest shareholder, HOLCHIN B.V., holds 39.85% of the shares, totaling 596,817,018 shares[8]. Operational Highlights - The company reported a total of CNY 48.82 million in non-operating income for the first nine months[7]. - The company has not disclosed any significant new product developments or market expansion strategies in this report[10]. - The company completed the acquisition of six companies from Lafarge China Cement for ¥1.375 billion, enhancing its market position[14]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[23]. Inventory and Receivables - Accounts receivable increased by 138% to ¥1,196,605,454 from ¥502,371,725, driven by business acquisitions and expanded operations[11]. - Inventory levels rose by 35% to ¥1,581,300,871 from ¥1,174,261,964, indicating increased operational scale[11]. - The company reported a significant increase in prepayments, which rose by 465% to ¥375,024,943 from ¥66,412,138, due to increased fuel prepayments[11].

Financial Performance - The company's operating revenue for the first half of 2017 reached RMB 9.37 billion, a 63.37% increase compared to RMB 5.74 billion in the same period last year[14]. - Net profit attributable to shareholders was RMB 727.96 million, a significant increase of 8,954.01% from RMB 8.04 million in the previous year[14]. - The total profit amounted to 918 million RMB, showing a significant year-on-year increase of 1793%[25]. - The company's net profit for the period is expected to increase by over 500% year-on-year, driven by enhanced product pricing and profitability recovery[39]. - Operating profit for the first half of 2017 was CNY 882,855,231, compared to a loss of CNY 23,232,607 in the previous year[99]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 1.20 billion, reflecting a 48.53% increase from RMB 809.03 million year-on-year[14]. - The cash flow from operating activities increased by 48.53% to 1.202 billion RMB, driven by expanded marketing scale and increased profitability[28]. - The company's cash and cash equivalents at the end of the reporting period amounted to CNY 130,760,590, which is pledged as guarantees for letters of credit and other financial instruments[34]. - The company's cash and cash equivalents decreased to CNY 2.69 billion from CNY 3.72 billion at the beginning of the period[93]. - Cash inflow from financing activities was CNY 1,854,276,418, while cash outflow reached CNY 3,686,775,921, leading to a net cash outflow of CNY 1,832,499,503[104]. Assets and Liabilities - The total assets at the end of the reporting period amounted to RMB 28.92 billion, up 5.45% from RMB 27.43 billion at the end of the previous year[14]. - The total liabilities increased to CNY 17.11 billion from CNY 16.05 billion year-over-year, indicating a rise in financial obligations[94]. - The total liabilities due within one year decreased by 31.08% to CNY 2,923,973,039, indicating a reduction in short-term debt obligations[33]. - The company's current ratio decreased to 0.71 from 0.76 year-over-year, while the quick ratio fell to 0.55 from 0.64[86]. - The debt-to-asset ratio remained stable at 59%, indicating no significant change in leverage[86]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 75,332[66]. - The largest shareholder, HOLCHIN B.V., holds 39.85% of the shares, totaling 596,817,018 shares[67]. - The company has not reported any changes in its share capital structure during the reporting period[65]. - The company has a total of 6 major shareholders, with HOLCHIN B.V. holding 596,817,018 shares, including 322,380,858 ordinary shares and 274,436,160 foreign shares[68]. Corporate Strategy and Operations - The company operates 146 factories across 10 provinces in China and two countries, with a total cement production capacity of 90 million tons per year[20]. - The company has implemented a vertical integration strategy, expanding into ready-mixed concrete and waste disposal services[19]. - The company completed the acquisition of Lafarge China Cement's plants in Yunnan, Guizhou, and Chongqing, which significantly improved operational performance[25]. - The company is advancing projects in Tibet, Nepal, and East Africa, indicating ongoing market expansion efforts[26]. - The company completed the acquisition of six companies from Lafarge China Cement Co., Ltd. for a total price of RMB 1.375 billion, with the actual control of these companies transferred to the company on January 24, 2017[49]. Research and Development - The company's research and development expenditure increased by 30.65% to 49.67 million RMB, primarily due to increased environmental investments[28]. Safety and Environmental Management - The overall accident rate for the company's employees decreased during the reporting period, indicating improved safety management[26]. - The company has established an emergency response plan for environmental pollution incidents and conducts regular training and drills[62]. Financial Management and Compliance - The company has consistently complied with the bond issuance prospectus, ensuring timely interest payments and protecting investor interests[90]. - The company has not experienced any changes in accounting policies or significant accounting errors during the reporting period[63]. - The financial statements were prepared in accordance with the relevant accounting standards, ensuring transparency and compliance[126]. Legal and Regulatory Matters - The company is involved in multiple significant litigation and arbitration cases, including a dispute with Tianxing Group and others regarding equity transfer, with claims amounting to approximately RMB 2,477.39 million[46]. Community Engagement - During the reporting period, the company invested RMB 372,700 in poverty alleviation efforts, including cash donations of RMB 13,400 and 1,190 tons of donated cement[56]. - A total of 93 registered impoverished individuals were assisted in escaping poverty through the company's initiatives[56]. - The company plans to continue its focus on educational poverty alleviation and infrastructure improvements in impoverished villages[61].

Financial Performance - Operating revenue surged by 61.17% to CNY 3.88 billion year-on-year[7] - Net profit attributable to shareholders reached CNY 94.92 million, a significant recovery from a loss of CNY 136.40 million in the same period last year[7] - The company reported a basic earnings per share of CNY 0.06, recovering from a loss of CNY 0.09 per share in the previous year[7] - Net profit attributable to shareholders was CNY 94,922,593, reflecting a 170% increase year-over-year[15] - The total profit for the period was CNY 112,900,651, marking a 161% increase compared to the same period last year[15] - The company expects a net profit growth of over 50% for the first half of 2017, supported by increased cement prices and expanded production capacity[18] - Operating profit for Q1 2017 was ¥82,969,007, a turnaround from a loss of ¥226,438,543 in Q1 2016[29] - Net profit for Q1 2017 was ¥76,985,919, compared to a net loss of ¥143,295,618 in Q1 2016, indicating a substantial recovery[29] - The total comprehensive income for Q1 2017 was ¥63,440,831, compared to a loss of ¥183,789,171 in the same quarter last year[30] Assets and Liabilities - Total assets increased by 9.8% to CNY 30.12 billion compared to the end of the previous year[7] - The total assets as of March 31, 2017, amounted to CNY 30,115,923,188, an increase from CNY 27,426,749,410 at the beginning of the year[21] - The company’s total assets increased to ¥18,232,072,642 from ¥16,840,447,564, marking a growth of 8.3% year-over-year[29] - The company reported a significant increase in investment income, with net investment income rising by 81% to CNY 271,476[15] - The company’s total liabilities increased to CNY 18,671,364,239, up from CNY 16,053,051,983 at the start of the year[22] - The total liabilities increased to ¥10,205,524,427 in Q1 2017 from ¥8,816,845,724 in the previous year, reflecting a growth of 15.7%[29] Cash Flow - Cash flow from operating activities increased by 1.62% to CNY 322.73 million[7] - Cash flow from investment activities showed a significant improvement, with a net cash inflow of CNY 271,388,091, compared to a net outflow of CNY 300,141,485 in the previous year[17] - Operating cash inflow for Q1 2017 was CNY 4,463,678,400, an increase of 46.8% from CNY 3,041,201,823 in the previous period[34] - Net cash flow from operating activities was CNY 322,734,716, slightly up from CNY 317,591,846 year-over-year[34] - Cash inflow from financing activities was CNY 594,276,418, down from CNY 992,221,604 in the previous period, leading to a net cash outflow of CNY 939,745,435[34] - The company reported a net increase in cash and cash equivalents of CNY -350,804,285 for the quarter, compared to an increase of CNY 189,692,566 in the previous period[35] - The company experienced a net cash outflow of CNY 805,984,188 in Q1 2017, compared to a net outflow of CNY 136,267,543 in the previous year[37] Operational Metrics - Accounts receivable rose by 95% to CNY 977.51 million, attributed to expanded operations from acquisitions[14] - Inventory increased by 37% to CNY 1.61 billion, reflecting growth in business scale[14] - The company experienced a 240% increase in prepayments to CNY 225.47 million, driven by acquisition-related activities[14] - Other payables surged by 341% to CNY 1.99 billion, reflecting increased operational scale and obligations[14] - Operating costs increased by 53% to CNY 3,043,997,546, driven by acquisitions and rising coal costs[15] - The company reported an increase in operating costs to ¥3,798,211,477, up from ¥2,631,794,384, representing a rise of 44.4%[29] - Investment income for Q1 2017 was ¥271,476, compared to ¥150,000 in Q1 2016, showing a growth of 80.9%[29] Shareholder Information - The number of shareholders reached 77,738, indicating a broadening of the shareholder base[11] - Basic and diluted earnings per share for Q1 2017 were both ¥0.06, recovering from a loss of ¥0.09 per share in Q1 2016[30]