Financial Performance - The company's operating revenue for Q3 2021 was ¥61,464,339.78, a decrease of 11.5% compared to ¥69,556,352.51 in the same period last year[3] - The net profit attributable to shareholders was -¥7,268,303.38, compared to -¥3,214,784.63 in the previous year, indicating a worsening performance[3] - The basic earnings per share for the period was -¥0.011, down from -¥0.005 in the same period last year[4] - The company reported a loss of -¥7,479,335.94 for net profit after deducting non-recurring gains and losses, compared to -¥5,944,195.75 in the previous year[4] - Net profit for the first three quarters of 2021 was a loss of ¥24,999,842.01, worsening from a loss of ¥10,980,254.09 in the same period of 2020[22] - The total comprehensive income amounted to CNY -24,849,639.07, with the parent company's share at CNY -18,336,732.14, and minority shareholders' share at CNY -6,512,906.93[23] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,191,476,473.10, a decrease of 4.29% from ¥3,334,571,091.58 at the end of the previous year[4] - The equity attributable to shareholders decreased by 2.07% to ¥936,350,251.65 from ¥956,151,389.74 at the end of the previous year[4] - Total liabilities decreased to ¥1,944,445,932.46 from ¥2,061,673,621.86 at the end of 2020, showing a reduction of approximately 5.7%[18] - Total liabilities decreased by 56.09% as the company reclassified short-term liabilities to long-term payables[9] - Current assets totaled ¥334,030,779.50, down from ¥719,321,307.10 at the end of 2020, indicating a decline of about 53.6%[17] - The total equity attributable to shareholders decreased to ¥936,350,251.65 from ¥956,151,389.74, reflecting a decline of about 2.1%[18] Cash Flow - The cash flow from operating activities was negative at -¥6,370,492.35 for the year-to-date period[4] - Cash inflows from operating activities totaled CNY 178,309,671.93, up from CNY 100,070,994.81 year-over-year[25] - The net cash flow from operating activities was CNY -6,370,492.35, an improvement from CNY -54,507,110.78 in the same period last year[25] - Cash inflows from investing activities were CNY 266,985,401.38, compared to CNY 104,442,347.01 in the previous year[26] - The net cash flow from investing activities was CNY 8,705,211.83, a significant recovery from CNY -444,809,006.18 in the same period last year[26] - The company reported a net cash flow from financing activities decrease of 104.71%, due to reduced fixed asset loans at subsidiary Hengli New Materials[10] - Cash inflows from financing activities were CNY 453,500,000.00, down from CNY 631,341,250.00 year-over-year[26] - The net cash flow from financing activities was CNY -19,238,059.74, compared to CNY 408,774,334.05 in the previous year[26] - The ending cash and cash equivalents balance was CNY 164,955,204.57, compared to CNY 40,162,730.16 at the end of the previous year[26] Research and Development - R&D expenses surged by 905.10%, primarily due to increased investment in research and development by Huahui Environmental Protection[10] - Research and development expenses increased to ¥7,674,376.60 in Q3 2021, compared to ¥763,539.90 in Q3 2020, reflecting a growth of over 900%[22] Subsidiaries and Market Activity - Revenue increased by 113.83% due to the consolidation of Ningxia Tianfu and increased sales from subsidiary Huahui Environmental Protection[10] - Operating costs rose by 82.13%, attributed to the consolidation of Ningxia Tianfu and increased sales from Huahui Environmental Protection[10] - Accounts receivable increased by 33.19%, mainly due to increased sales from subsidiary Ningxia Hengli New Materials[9] - Contract liabilities rose by 445.43%, driven by increased advance payments received by subsidiary Ningxia Huahui Environmental Protection[9] - Other receivables decreased by 97.82%, as the company recovered equity transfer payments from Boya Stem Cell Technology[9] - The company has not disclosed any new product developments or market expansion strategies in this report[2] - The company has announced progress on a 50,000 tons/year lauric acid project as of September 7, 2021[14] Shareholder Information - The company’s major shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 29.20% of shares, with 200 million shares pledged[12]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥81,706,711.20, representing a 105.28% increase compared to ¥39,803,417.76 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was -¥11,218,631.70, compared to -¥5,910,404.59 in the previous year, indicating a continued loss[18]. - The net cash flow from operating activities was ¥7,246,190.71, a significant improvement from -¥46,889,813.19 in the same period last year[18]. - Operating revenue for the current period reached ¥81,706,711.20, a 105.28% increase compared to ¥39,803,417.76 in the previous period[35]. - Operating costs increased by 82.33% to ¥68,295,384.30 from ¥37,457,015.50 year-on-year[35]. - The company reported a net loss of ¥14,055,603.75 for the first half of 2021, compared to a net loss of ¥5,735,311.12 in the first half of 2020, representing a deterioration in performance[106]. - The loss attributable to shareholders of the parent company was ¥11,218,631.70, compared to a loss of ¥5,910,404.59 in the previous year[106]. - The total comprehensive loss for the first half of 2021 was ¥13,682,685.31, compared to a loss of ¥5,813,129.98 in the same period of 2020[106]. Assets and Liabilities - The total assets decreased by 4.34% to ¥3,189,841,376.02 from ¥3,334,571,091.58 at the end of the previous year[19]. - The total liabilities decreased from ¥2,061,673,621.86 to ¥1,930,606,600.06, a reduction of about 6.36%[98]. - Current liabilities decreased from ¥1,142,424,397.74 to ¥861,497,352.24, a decrease of approximately 24.6%[98]. - Non-current liabilities increased from ¥919,249,224.12 to ¥1,069,109,247.82, an increase of about 16.3%[98]. - Total equity decreased from ¥1,272,897,469.72 to ¥1,259,234,775.96, a decline of approximately 1.08%[99]. - The company's cash and cash equivalents as of June 30, 2021, amount to ¥183,492,737.95, a decrease from ¥207,225,771.03 at the end of 2020[96]. - Total current assets decreased from ¥719,321,307.10 at the end of 2020 to ¥359,280,354.44 as of June 30, 2021[96]. Research and Development - Research and development expenses surged by 413.35% to ¥2,447,915.54 from ¥476,848.80 in the previous period[35]. - The company achieved investment income of ¥9,736,246.35, up 73.5% from ¥5,599,093.51 in the same period last year[105]. Environmental Responsibility - The company invested nearly 400 million yuan in environmental protection facilities to comply with national regulations[54]. - The company has implemented various pollution control systems, including a biological fermentation tail gas treatment system and a wastewater treatment system[56]. - The company has established an emergency response plan for environmental incidents and conducts regular training for employees[59]. - The company has committed to fulfilling the obligations of the equity acquisition agreement and will pay the performance deposit and acquisition price in full as stipulated[65]. Shareholder Information - The total number of common shareholders as of the end of the reporting period is 27,319[87]. - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, representing 29.20% of the total shares[88]. - The company has not issued any preferred shares or convertible bonds during the reporting period[94]. Legal Matters - The company is involved in a significant lawsuit where it claims ¥157 million in compensation due to unfulfilled performance commitments from a previous agreement[72]. - The company has ongoing litigation related to a loan arbitration case, with a claim for repayment of ¥91.8 million plus interest at an annual rate of 5.0025%[75]. - The company has faced a total of ¥189.60 million in legal fees related to arbitration proceedings[75]. Corporate Governance - The company has committed to not engaging in competitive business activities with its main business, ensuring compliance with relevant laws and regulations[62]. - The company guarantees not to harm the interests of minority shareholders in its normal production and operational activities[62]. - The company has taken measures to prevent illegal occupation of funds and assets belonging to its main business[63]. Financial Reporting and Accounting - The company adheres to the accounting standards for listed companies, ensuring that financial statements accurately reflect its financial status and operational results[142]. - The company recognizes the operating results and cash flows of subsidiaries from the date control is obtained, adjusting the financial statements based on the fair value of identifiable assets and liabilities at the acquisition date[149]. - The company assesses expected credit losses based on historical loss experience and forward-looking information, applying a simplified approach for receivables without significant financing components[162].

Financial Performance - The company's operating revenue for 2020 was CNY 119,114,953.74, a decrease of 55.18% compared to CNY 265,756,858.64 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 20,906,030.80, a significant recovery from a loss of CNY 44,952,125.08 in 2019[20]. - Basic earnings per share for 2020 was CNY 0.031, a significant improvement from a loss of CNY 0.066 in 2019[21]. - The weighted average return on equity increased to 2.316% in 2020 from -5.019% in 2019[21]. - Total revenue for Q4 2020 reached CNY 52,158,516.08, with a notable increase in sales channels due to the acquisition of Ningxia Tianfu[22]. - The net profit attributable to shareholders for Q4 2020 was CNY 31,081,382.72, recovering from losses in previous quarters[22]. - The company reported a total revenue of CNY 20,857,657.03 in Q1 2020, which increased to CNY 27,153,019.90 in Q2 2020[22]. - The company achieved operating revenue of CNY 13,693.89 million, with a gross profit margin steadily increasing, resulting in a gross profit increase of CNY 1,665.24 million compared to the previous year[36]. - The company reported a net profit attributable to shareholders of CNY 2,090.60 million during the reporting period[38]. - The company’s trading subsidiary, Hengli International Trade, generated operating revenue of CNY 41,680.20 million during the reporting period[36]. Assets and Liabilities - Total assets rose by 48.35% to CNY 3,334,571,091.58 in 2020, up from CNY 2,247,718,828.91 in 2019[20]. - The net assets attributable to shareholders increased by 6.29% to CNY 956,151,389.74 at the end of 2020, compared to CNY 899,553,326.37 at the end of 2019[20]. - Total liabilities reached CNY 2,061,673,621.86 in 2020, up from CNY 1,322,613,065.01 in 2019, marking a growth of approximately 55.9%[176]. - Current liabilities amounted to CNY 1,142,424,397.74 in 2020, an increase of 66.4% from CNY 686,402,499.18 in 2019[176]. - Long-term borrowings increased significantly to CNY 360,000,000.00 in 2020, compared to CNY 30,000,000.00 in 2019, reflecting a growth of 1,100%[176]. Cash Flow - The net cash flow from operating activities was negative at CNY -41,059,918.36, an improvement from CNY -47,799,953.98 in 2019[20]. - The total cash flow from investment activities was -CNY 676,524,373.86, reflecting a significant increase in capital expenditures compared to the previous period[11][12]. - Cash flow from financing activities generated a net inflow of CNY 769,214,461.03, compared to CNY 430,782,316.22 in 2019[193]. - The total cash and cash equivalents at the end of 2020 were CNY 182,225,771.03, up from CNY 130,719,741.92 at the end of 2019[193]. Research and Development - The company has developed 20 patents related to its activated carbon production, enhancing its competitive edge in the market[29]. - Research and development expenses totaled CNY 964,883.76, representing 0.81% of operating revenue, with 117 R&D personnel making up 12.05% of the total workforce[5][6]. - The company has obtained 4 invention patents and 16 utility model patents during the reporting period[64]. - Research and development expenses were ¥964,883.76 in 2020, down 41.06% from ¥1,635,132.56 in 2019[184]. Market and Sales - The sales model combines direct sales and distribution, with a focus on both domestic and international markets[29]. - The company’s domestic sales revenue was CNY 89,278.34 million, with a gross profit margin of 10.94%, down 21.18% year-on-year[42]. - The company’s foreign sales revenue was CNY 24,592.84 million, with a gross profit margin of 21.43%, down 9.46% year-on-year[42]. - The company plans to expand its product offerings in the activated carbon sector, targeting various applications including water treatment and air purification[29]. Legal and Compliance - The company has ongoing significant litigation matters, including a claim for 157 million RMB against Xu Xiaochun for unfulfilled performance commitments[106]. - The company is currently involved in legal proceedings that could affect its financial position, including a ruling from the Shanghai Arbitration Commission[108]. - The company has received a court ruling to restore the execution of a previous arbitration decision, which may lead to financial obligations[108]. - The company is actively managing its legal obligations and compliance with court rulings to mitigate financial and reputational risks[110]. Corporate Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights[151]. - The company has a total of 14 board members, including independent directors and management personnel[140]. - The company’s independent directors have diverse backgrounds in law, finance, and management, contributing to robust governance[140]. - The company has maintained compliance with remuneration disclosure, aligning reported figures with actual payments[142]. Future Outlook - The company plans to focus on future development strategies, although specific details were not disclosed in the report[5]. - The company aims to optimize its asset structure and explore diversified development to enhance its competitive strength and sustainability[85]. - For 2021, the company aims for a sales volume of 26,500 tons and revenue of 229 million RMB, focusing on improving production efficiency and expanding into the environmental protection sector[87]. - The company faces risks from macroeconomic changes, with 20% of sales coming from exports to North America, Europe, and Asia-Pacific, which may impact its export business[88].

Financial Performance - Operating revenue increased by 83.43% to CNY 38,258,881.35 year-on-year[6] - Net profit attributable to shareholders rose by 81.25% to CNY 2,769,519.22 compared to the same period last year[6] - Basic earnings per share increased by 81.82% to CNY 0.0040 per share[6] - The weighted average return on net assets increased by 70.44 percentage points to 28.92%[6] - Total operating revenue for Q1 2021 was ¥38,258,881.35, a 83.5% increase from ¥20,857,657.03 in Q1 2020[30] - Net profit for Q1 2021 was ¥555,689.94, a decrease of 54.2% compared to ¥1,214,241.21 in Q1 2020[30] - The company reported a profit attributable to shareholders of ¥2,769,519.22 in Q1 2021, compared to ¥1,528,035.07 in Q1 2020[31] - The total comprehensive income for Q1 2021 was CNY 7,836,750.95, up from CNY 6,012,921.32 in Q1 2020, reflecting a growth of approximately 30.3%[36] Cash Flow - Net cash flow from operating activities improved significantly to CNY 3,876,689.24, compared to a negative CNY 9,204,499.83 in the previous year[6] - The net cash flow from operating activities was CNY 3,876,689.24, a turnaround from a negative cash flow of CNY -9,204,499.83 in the same period last year[39] - Investment activities generated a net cash flow of CNY 100,133,141.46 in Q1 2021, a significant improvement from a negative cash flow of CNY -93,421,084.64 in the previous year[40] - The net cash flow from financing activities was CNY 1,793,004.67, down from CNY 2,182,019.49 in Q1 2020[42] Assets and Liabilities - Total assets decreased by 3.96% to CNY 3,202,558,849.44 compared to the end of the previous year[6] - The company's current assets totaled CNY 501,382,750.68, down from CNY 719,321,307.10, indicating a decrease of about 30.39%[22] - Total liabilities decreased to CNY 1,928,894,270.26 from CNY 2,061,673,621.86, a reduction of approximately 6.43%[24] - Total assets as of the end of Q1 2021 were ¥1,682,406,322.12, compared to ¥1,669,657,760.03 at the end of Q1 2020[28] - Total liabilities as of the end of Q1 2021 were ¥666,051,798.88, an increase from ¥661,139,987.74 at the end of Q1 2020[28] Shareholder Information - The number of shareholders at the end of the reporting period was 34,240[8] - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 29.20% of the shares[8] Operating Costs - Operating costs increased by 59.21% to ¥33,413,521.76, also due to the inclusion of Ningxia Tianfu in the consolidated financial statements.[14] - Total operating costs for Q1 2021 were ¥50,307,982.35, up 48.1% from ¥33,995,143.04 in Q1 2020[30] Other Financial Metrics - Government subsidies recognized in the current period amounted to CNY 165,053.31[6] - The company reported a total of CNY 61,365.36 in non-recurring gains and losses[8] - Research and development expenses for Q1 2021 were ¥787,790.48, significantly higher than ¥220,952.96 in Q1 2020[30] - The company incurred financial expenses of CNY 3,176,465.29 in Q1 2021, down from CNY 4,131,426.19 in Q1 2020, showing a reduction of approximately 23.1%[34] Inventory and Receivables - Accounts receivable decreased by 39.00% to ¥27,797,255.86, mainly due to the recovery of payments by subsidiary Ningxia Huahui Environmental Technology Co., Ltd.[13] - The company's inventory increased to CNY 84,403,632.16 from CNY 79,610,182.22, reflecting a growth of about 6.98%[22] Investments and Projects - The company is in the trial production phase for the 50,000 tons/year lauric acid project, with stable operation and qualified product quality.[17] - The company has completed all property rights procedures for the purchase of the Golden Water Talent Apartment project, with a total purchase amount of ¥134,387,479.00.[17]

Financial Performance - In 2020, the company's operating revenue was CNY 119,114,953.74, a decrease of 55.18% compared to CNY 265,756,858.64 in 2019[22] - The net profit attributable to shareholders was CNY 20,906,030.80, a significant recovery from a loss of CNY 44,952,125.08 in 2019[22] - The net assets attributable to shareholders increased by 6.29% to CNY 956,151,389.74 at the end of 2020, compared to CNY 899,553,326.37 at the end of 2019[22] - Total assets rose by 48.35% to CNY 3,334,571,091.58 in 2020, up from CNY 2,247,718,828.91 in 2019[22] - The company reported a net cash flow from operating activities of CNY -41,059,918.36, an improvement from CNY -47,799,953.98 in 2019[22] - Basic earnings per share for 2020 was CNY 0.031, compared to a loss of CNY 0.066 in 2019, marking a significant recovery[23] - The weighted average return on equity increased to 2.316% in 2020 from -5.019% in 2019, indicating improved profitability[23] - In Q4 2020, the company reported a net profit attributable to shareholders of CNY 29,596,804.21, a turnaround from losses in the previous three quarters[24] - The total revenue for Q3 2020 was CNY 69,556,352.51, showing a strong performance compared to earlier quarters[24] - Non-recurring gains for 2020 amounted to CNY 17,068,484.37, significantly impacting the overall financial results[26] Operational Challenges - The company did not implement profit distribution or capital reserve transfer to share capital for the year 2020 due to accumulated losses[5] - The company has disclosed potential risks in its future plans, urging investors to be cautious[6] - The company experienced non-operating fund occupation by controlling shareholders and related parties[7] - The company is focused on enhancing its financial stability and addressing operational challenges in the upcoming periods[6] - The company faced challenges in 2020, achieving only 44.4% of its sales target for activated carbon products due to price drops and reduced orders from the pandemic[80] - The ongoing COVID-19 pandemic continues to impact the company's operations, particularly in regions like Europe and the United States, posing risks to production and business activities[83] Investments and Subsidiaries - The company’s subsidiary, Huahui Environmental, completed a private placement raising up to CNY 200 million, increasing its registered capital from CNY 169.12 million to CNY 369.12 million[31] - Huahui Environmental holds 20 patents, including 4 invention patents, enhancing its competitive edge in the activated carbon market[29] - The company completed the transfer of a 10% stake in its subsidiary, Hengli New Materials, for CNY 100 million, with the total registered capital of Hengli New Materials now fully paid at CNY 1 billion[32] - The company acquired 100% equity of Ningxia Tianfu, enhancing its core competitiveness[73] - Huahui Environmental acquired 100% equity of Ningxia Tianfu for RMB 80 million, which is now included in the consolidated financial statements[75] Revenue and Cost Structure - The gross profit margin for the chemical raw materials and chemical products manufacturing segment was 13.20%, an increase of 11.58 percentage points year-on-year[42] - The company received government subsidies amounting to CNY 562.20 million, an increase from the previous year[36] - The company reported a decrease in sales volume of activated carbon by 30.43% year-on-year, with production volume down by 33.07%[44] - The company’s trading business revenue decreased, contributing to the overall decline in operating income[40] - The price of raw materials such as coal and tar significantly impacts the company's operating costs, accounting for 59.91% of product costs[67] Research and Development - Total R&D investment reached ¥23,109,904.33, accounting for 19.40% of operating revenue, with capitalized R&D expenses making up 95.82% of the total[50][51] - Research and development expenses amounted to 7.9 million RMB, focusing on projects like the preparation of acetone adsorption activated carbon[64] - The company has obtained 4 invention patents and 16 utility model patents during the reporting period, with 10 additional patents filed[64] Governance and Compliance - The audit report for the year was issued with a standard unqualified opinion by the accounting firm Xinyong Zhonghe[5] - The company has established a cash dividend policy that prioritizes cash distributions to protect the rights of investors, ensuring transparency and operational feasibility in profit distribution decisions[86] - The company has committed to not engaging in competitive business activities that could harm the interests of its subsidiaries and minority shareholders[88] - The company guarantees that it will not misuse its controlling shareholder status to disadvantage its subsidiaries or engage in unnecessary related-party transactions[88] - The company has outlined a commitment to adhere to legal and regulatory requirements in any related-party transactions, ensuring fairness and market pricing[88] Legal Matters - The company is involved in significant litigation, seeking RMB 157 million in compensation from Xu Xiaochun for unfulfilled performance commitments[96] - The company has ongoing arbitration cases, including a claim for RMB 8 million plus interest at an annual rate of 5.0025%[99] - The company has faced a series of legal proceedings related to the enforcement of arbitration awards, with the latest developments occurring in early 2019[99] - The company has filed a lawsuit with the Ningxia High Court regarding the performance compensation case from 2017[89] Social Responsibility - The company actively participated in social responsibility initiatives, donating over CNY 30,000 to charity and purchasing poverty alleviation products worth over CNY 20,000 in 2020[112] - The company visited and provided assistance to 61 employees in need, distributing CNY 48,000 in relief funds during the reporting period[112] - The company has upgraded its environmental protection facilities to meet new industry standards, ensuring compliance with air pollutant emission standards[113] Shareholder Information - The total number of ordinary shareholders increased from 34,240 to 37,899 during the reporting period[118] - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, accounting for 29.20% of total shares[120] - The company reported that the controlling shareholder, Shanghai Zhongneng, has no known relationships with the other nine shareholders, ensuring independent governance[123] Management and Workforce - The company has a total of 971 employees, with 27 in the parent company and 944 in major subsidiaries[138] - The workforce consists of 708 production personnel, 21 sales personnel, 117 technical personnel, 18 financial personnel, and 72 administrative personnel[138] - The company conducted 254 training sessions in 2020, achieving a completion rate of 100% with a total of 3,394 training participants[140] Audit and Internal Control - The internal control audit firm has been retained for 23 years, indicating a long-term relationship[95] - The company has established a mechanism for internal control self-evaluation, which is disclosed in the annual report[149] - The audit committee confirmed that the 2019 financial report accurately reflects the company's financial status and recommended the reappointment of the auditing firm[147]

Financial Performance - Net profit attributable to shareholders was CNY -8,690,773.41, a significant improvement from CNY -31,514,585.42 in the same period last year[8] - Operating revenue decreased by 47.00% to CNY 126,883,743.81 compared to CNY 239,402,545.64 in the previous year[8] - The weighted average return on equity was -0.971%, an improvement from -3.527% in the previous year[8] - Basic and diluted earnings per share were both CNY -0.013, compared to CNY -0.046 in the same period last year[8] - The company reported a debt restructuring gain of CNY 2,359,149.13, contributing to the overall financial performance[11] - The total net profit from non-recurring items was CNY 2,729,411.12 for the current period[11] - Total revenue for Q3 2020 was CNY 69,556,352.51, a decrease of 47.4% compared to CNY 132,346,457.03 in Q3 2019[40] - Net loss for Q3 2020 was CNY 4,194,780.27, compared to a net loss of CNY 10,439,882.49 in Q3 2019, representing a 59.9% improvement[41] - Total comprehensive income for Q3 2020 was CNY 2,854,493.90, compared to CNY 4,030,474.92 in Q3 2019[46] Assets and Liabilities - Total assets increased by 16.31% to CNY 2,614,305,293.33 compared to the end of the previous year[8] - The company’s net assets attributable to shareholders decreased by 0.98% to CNY 890,695,614.17 compared to the end of the previous year[8] - Total current assets as of September 30, 2020, amounted to ¥533,857,563.94, a decrease of 30.5% from ¥768,397,727.15 on December 31, 2019[29] - Total non-current assets reached ¥2,080,447,729.39, up 40.6% from ¥1,479,321,101.76 at the end of 2019[30] - Total liabilities increased to ¥1,698,862,143.80, a rise of 28.5% compared to ¥1,322,613,065.01 in the previous year[31] - The company's total assets as of September 30, 2020, were ¥2,614,305,293.33, reflecting a growth of 16.3% from ¥2,247,718,828.91[31] - The total liabilities to total assets ratio stood at approximately 64.9%, indicating a relatively high leverage position[31] Cash Flow - The net cash flow from operating activities was CNY -54,507,110.78, an improvement from CNY -80,740,219.21 in the same period last year[8] - The net cash flow from investment activities is -RMB 444.81 million, a decrease of 583.26% compared to the previous year[21] - The company achieved cash inflow from operating activities of CNY 100,070,994.81 in the first three quarters of 2020, slightly lower than CNY 105,086,346.05 in the same period of 2019[50] - The total cash inflow from investment activities was 103,420,747.01 RMB, while cash outflow was 36,300.00 RMB, resulting in a net cash flow from investment activities of 103,384,447.01 RMB[54] - The cash inflow from financing activities was 104,062,609.89 RMB, with cash outflow totaling 200,114,993.48 RMB, leading to a net cash flow from financing activities of -96,052,383.59 RMB[54] Shareholder Information - The total number of shareholders is 52,426[13] - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, representing 29.20% of total shares[13] - Shanghai Zhongneng holds 20 million shares of the company, accounting for 29.20% of the total share capital, and has completed the procedures for share pledge[24] Operational Challenges - The company experienced a significant decrease in sales and trade business due to the pandemic and falling prices of desulfurization and denitrification carbon products[19] - The company has not fulfilled the performance commitment for 2017 and 2018, with ongoing litigation for compensation totaling RMB 314 million[25] - The company is adapting to new revenue and leasing standards, which may affect future financial reporting and cash flow assessments[57] Investment and Projects - The total fixed asset investment for the 50,000 tons/year lauric acid project is RMB 1.68 billion, with 90.19% of the construction progress completed and actual investment of RMB 1.1589828 billion as of the reporting period[20] - The acquisition of 80% equity in Boya Stem Cell Technology Co., Ltd. by Shanghai Zhongneng is valued at approximately RMB 1.05 billion, with RMB 800 million already received by the company[22]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥57,327,391.30, a decrease of 46.45% compared to ¥107,056,088.61 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2020 was -¥5,475,988.78, compared to -¥23,183,730.78 in the same period last year[19]. - The net cash flow from operating activities was -¥46,889,813.19, slightly improved from -¥50,963,019.71 in the previous year[20]. - The basic earnings per share for the first half of 2020 was -¥0.008, an improvement from -¥0.034 in the same period last year[21]. - The weighted average return on net assets was -0.611%, an improvement from -2.635% in the same period last year[21]. - Operating revenue for the reporting period is 57.33 million RMB, a decrease of 46.45% compared to the previous year[37]. - Operating costs decreased by 42.16% to 54.47 million RMB, primarily due to a significant drop in sales volume at the subsidiary Ningxia Huahui[38]. - The company reported a net profit of 0.9172 million[34]. - The company reported a net loss of ¥239,380,348.04, compared to a loss of ¥233,904,359.26 in the previous period, indicating a worsening of approximately 2%[90]. - The company reported a comprehensive loss of 9,420,635.08 CNY during the period, indicating a decrease in profitability compared to previous periods[117]. Assets and Liabilities - Total assets increased by 11.32% to ¥2,502,258,220.53 from ¥2,247,718,828.91 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 0.62% to ¥893,999,518.73 from ¥899,553,326.37 at the end of the previous year[20]. - The total liabilities as of June 30, 2020, are not explicitly stated but are essential for assessing the company's financial health[88]. - Total liabilities rose to ¥1,582,531,170.80, compared to ¥1,322,613,065.01, indicating an increase of about 19.7%[90]. - Current liabilities decreased to ¥628,886,271.06 from ¥686,402,499.18, a reduction of approximately 8.4%[89]. - Non-current liabilities increased significantly to ¥953,644,899.74 from ¥636,210,565.83, reflecting a growth of around 49.8%[90]. - The company has a total of CNY 610,508,405.97 in other payables, which includes interest payable of CNY 13,242,490.08[194]. Cash Flow - The net cash flow from investment activities is -315.32 million RMB, a decline of 356.74% compared to the previous year[37]. - The net cash flow from financing activities was CNY 369,055,361.04, a substantial improvement from negative CNY 79,586,213.68 in the first half of 2019[105]. - The total cash and cash equivalents at the end of the period increased to CNY 137,550,665.79 from CNY 14,427,971.31 at the end of the first half of 2019[105]. - The cash inflow from sales of goods and services was CNY 43,041,322.73, down from CNY 52,208,654.44 in the first half of 2019, reflecting a decrease of approximately 17.5%[104]. - The company experienced a decrease in cash outflows for employee payments, totaling CNY 12,696,729.18, compared to CNY 13,989,371.01 in the previous year[104]. Investments and Projects - The construction of the 50,000 tons/year dodecanedioic acid project is ongoing, with a total investment of 321.6573 million[29]. - The total fixed asset investment for the 50,000 tons/year lauric acid project is 1.68 billion RMB, with all construction funds secured[35]. - As of the reporting period, the project construction progress is 72.53%, with actual investment completed at 982.79 million RMB[35]. - The company holds 19 patents, including 15 utility model patents and 4 invention patents related to activated carbon production[26]. - The company’s active carbon production capacity is expected to expand due to increasing downstream demand and environmental regulations[27]. Government Subsidies and Financial Support - Government subsidies received increased by 5.0811 million compared to the previous year[34]. - Debt restructuring income increased by 2.6851 million compared to the previous year[34]. - The company received 800 million RMB of the total 1.05 billion RMB from the sale of 80% equity in Boya Stem Cells to Shanghai Zhongneng[44]. - The company benefits from a 15% preferential tax rate for its subsidiary Ningxia Huahui under the Western Development policy until December 31, 2020[199]. Risk Management - The company has detailed the risks it faces in the report, advising investors to review the relevant sections for more information[6]. - Ningxia Huahui's main products are affected by fluctuations in international and domestic economic conditions, with a significant decline in orders due to the pandemic and trade tensions, impacting export business[47]. - The company faces risks from potential changes in government subsidy policies, which could impact operational performance[47]. - Ningxia Huahui is committed to improving its main business profitability through product structure adjustments, increased labor productivity, and enhanced R&D efforts[48]. Corporate Governance and Compliance - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period, indicating a focus on reinvestment[51]. - The company emphasizes the importance of not harming the interests of minority shareholders in its operations and activities[53]. - The company has not engaged in any competitive business activities that conflict with its main operations, ensuring compliance with commitments made by shareholders[52]. - The company has disclosed its commitment to uphold transparency and fulfill information disclosure obligations as per legal requirements[53]. Legal Matters - The company has faced a lawsuit from Ningxia High Court regarding a significant asset acquisition proposal, which is currently under review[53]. - The company is committed to fulfilling its obligations under the equity acquisition agreement, ensuring timely payments and compliance with all terms[54]. - The company has initiated legal proceedings to increase claims related to performance compensation from the 2017 fiscal year, which is currently under review[54]. - The company has ongoing significant litigation matters, including a lawsuit seeking compensation of 157 million yuan for unfulfilled performance commitments[59]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,224[76]. - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, accounting for 29.20% of the total shares[77]. - The company has not reported any changes in major shareholders or strategic investors during the reporting period[79]. Accounting and Financial Reporting - The financial statements comply with the requirements of the Enterprise Accounting Standards, accurately reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[129]. - The company recognizes revenue when control of goods or services is transferred to the customer, with specific criteria for domestic and international sales[180]. - The company has established a comprehensive management structure, including departments such as planning, securities, finance, and legal affairs[124].

Financial Performance - In 2019, the company's operating revenue was CNY 265,756,858.64, a decrease of 51.86% compared to CNY 552,087,908.80 in 2018[20] - The net profit attributable to shareholders was CNY -44,952,125.08, a decline of 578.18% from CNY 9,400,612.25 in the previous year[21] - Basic earnings per share decreased by 571.43% to -0.066 CNY from 0.014 CNY in the previous year[22] - Diluted earnings per share also decreased by 571.43% to -0.066 CNY from 0.014 CNY in the previous year[22] - The weighted average return on equity dropped by 6.103 percentage points to -5.019% from 1.084% in the previous year[22] - The company achieved operating revenue of CNY 141.85 million, with a net profit of -CNY 39.89 million during the reporting period[39] - The company reported a total revenue for the reporting period of 14,795 million CNY, with no change compared to the previous year[159] - The company reported a pre-tax income of 332.04 million CNY, indicating a significant increase in profitability[159] Assets and Liabilities - Total assets rose by 3.07% to CNY 2,247,718,828.91 at the end of 2019, up from CNY 2,180,704,990.26 at the end of 2018[21] - The company's current assets totaled RMB 768,397,727.15, down from RMB 1,234,975,529.65 in the previous year, indicating a decrease of about 37.7%[199] - The total liabilities of the company were RMB 1,322,613,065.01, compared to RMB 1,187,502,624.12 in 2018, representing an increase of approximately 11.4%[200] - The company's long-term equity investments increased to RMB 593,509,448.88 from RMB 569,073,011.93, reflecting a growth of approximately 4.3%[200] Cash Flow - The cash flow from operating activities was CNY -47,799,953.98, showing an improvement from CNY -180,306,340.50 in 2018[21] - The net cash flow from operating activities was -CNY 47.80 million, an improvement of CNY 132.51 million compared to the previous year[58] - Investment activities resulted in a net cash outflow of -CNY 274.49 million, a decrease of 233.89% compared to the previous year[58] - Cash and cash equivalents increased by 125.18% to 168,139,487.04, primarily due to the registered capital received by the subsidiary Hengli New Materials[60] Shareholder Information - The total number of ordinary shareholders decreased from 31,956 to 30,643 during the reporting period[144] - The largest shareholder, Shanghai Zhongneng, holds 200 million shares, representing 29.20% of the total shares, with all shares pledged[146] - The company has a cash dividend policy that prioritizes cash distribution to protect investors' rights, with no dividends declared for 2019, 2018, and 2017[104] - The company has not proposed any cash profit distribution plans despite positive profits available for distribution to ordinary shareholders[105] Risks and Compliance - The company has detailed potential risks in its report, advising investors to be cautious and rational in their investments[5] - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[6] - The company received a standard unqualified audit report from its accounting firm, Xin Yong Zhong He[7] - The company is committed to fulfilling its information disclosure obligations as per relevant laws and regulations[107] Research and Development - Research and development expenses increased by 129.81% to CNY 1.64 million, representing 0.62% of total operating revenue[56] - The company has 19 patents related to its activated carbon production, including 15 utility model patents and 4 invention patents[30] - Ningxia Huahui has applied for 4 invention patents and 15 utility model patents, emphasizing its commitment to R&D innovation[68] Market and Sales - The sales model combines direct sales and distribution, with both domestic and international sales channels[30] - The company's domestic revenue decreased by 77.64%, while international revenue decreased by 39.12%[48] - The activated carbon industry in China is expected to grow due to increasing demand in water treatment, air purification, and pollution control[31] - The company plans to achieve a sales volume of 30,000 tons and sales revenue of 200 million RMB for activated carbon products in 2020[98] Corporate Governance - The company has established a robust corporate governance structure, ensuring compliance with relevant laws and regulations, and promoting transparency in operations[174] - The board of directors includes experienced professionals with backgrounds in finance and management, enhancing corporate governance[158] - The company has maintained a stable shareholder structure with no significant changes in shareholding during the reporting period[157] Legal Matters - The company is involved in ongoing litigation concerning the performance compensation from the 2017 annual audit[107] - The company filed a lawsuit against Xu Xiaochun for compensation obligations related to the 2017 performance commitment, claiming a loss of RMB 157 million[116] - The company is contesting the arbitration ruling and has filed for its annulment in the Shanghai First Intermediate Court[120] Future Outlook - The company plans to expand its market presence in Asia, targeting a 25% growth in that region for 2020[121] - Future guidance estimates a revenue growth of 10% for 2020, projecting total revenue of 5,500 million[121] - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 300 million set aside for this purpose[121]

Financial Performance - Operating revenue decreased by 57.76% to CNY 20,857,657.03 year-on-year[6] - Net profit attributable to shareholders was CNY 1,528,035.07, a significant recovery from a loss of CNY 5,362,273.69 in the same period last year[6] - The weighted average return on equity was 0.1697%, up from -0.6177% year-on-year[6] - Basic earnings per share increased to CNY 0.0022 from a loss of CNY 0.0078 in the same period last year[6] - Total revenue for Q1 2020 was ¥20,857,657.03, a decrease of 57.8% compared to ¥49,374,483.80 in Q1 2019[37] - Net profit for Q1 2020 was ¥1,214,241.21, a significant recovery from a net loss of ¥5,604,414.16 in Q1 2019[38] - The net profit for Q1 2020 was 6,012,921.32 million RMB, a significant improvement from a net loss of 667,326.77 million RMB in Q1 2019[43] - The total profit for Q1 2020 was 6,012,921.32 million RMB, compared to a loss of 667,326.77 million RMB in the same period last year[42] Cash Flow and Liquidity - The net cash flow from operating activities improved to -CNY 9,204,499.83, compared to -CNY 33,461,726.04 in the previous year[6] - The company's cash and cash equivalents increased by 121.08%, reaching ¥371,729,416.34 from ¥168,139,487.04 at the beginning of the year[14] - Cash flow from operating activities in Q1 2020 was -9,204,499.83 million RMB, an improvement from -33,461,726.04 million RMB in Q1 2019[46] - The net increase in cash and cash equivalents for Q1 2020 was 214,715,723.38 million RMB, compared to 3,016,571.72 million RMB in Q1 2019[47] - The ending balance of cash and cash equivalents for Q1 2020 was 345,435,465.30 million RMB, significantly higher than 25,142,586.27 million RMB at the end of Q1 2019[47] Assets and Liabilities - Total assets increased by 14.05% to CNY 2,563,451,777.96 compared to the end of the previous year[6] - The company's total assets amounted to CNY 2,563,451,777.96, an increase from CNY 2,247,718,828.91 at the end of 2019, reflecting a growth of approximately 14%[26] - Total liabilities increased to CNY 1,637,131,772.85 as of March 31, 2020, from CNY 1,322,613,065.01 at the end of 2019, marking an increase of around 24%[28] - The company's long-term borrowings increased significantly by 733.33%, from ¥30,000,000.00 to ¥250,000,000.00[14] - The company's short-term borrowings rose to CNY 510,800,000.00, compared to CNY 404,100,000.00 at the end of 2019, reflecting an increase of approximately 26%[27] Shareholder Information - The total number of shareholders reached 31,956 by the end of the reporting period[10] - The largest shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, accounting for 29.20% of total shares[10] Government Support - The company received government subsidies totaling CNY 3,222,152.58, which contributed positively to the financial results[7] - The company received government subsidies, contributing to an increase in other income and investment income[13] Litigation - The company is involved in ongoing litigation regarding performance commitments and compensation, with claims amounting to ¥1.57 billion for the years 2017 and 2018[17] - The company has ongoing litigation regarding unfulfilled performance commitments from 2017 and 2018, with claims amounting to CNY 1.57 billion for each year, which are still pending resolution[22] Operating Costs and Expenses - Operating costs fell to ¥20,987,040.90, a decrease of 51.77% compared to ¥43,512,941.96 in the previous year[15] - The company's financial expenses decreased by 31.90%, from ¥8,503,458.92 to ¥5,790,537.23[15] - Research and development expenses for Q1 2020 were ¥220,952.96, an increase from ¥116,762.24 in Q1 2019[37] - The company reported a decrease in sales expenses and management expenses, contributing to improved profitability[42]

Financial Performance - The company's net profit for 2019 was -44,952,125.08 yuan, a decrease of 578.18% compared to the previous year's profit of 9,400,612.25 yuan[21]. - Operating revenue for 2019 was 265,756,858.64 yuan, representing a decline of 51.86% from 552,087,908.80 yuan in 2018[20]. - Basic earnings per share for 2019 was -0.066 yuan, a decrease of 571.43% compared to 0.014 yuan in 2018[22]. - Diluted earnings per share for 2019 was -0.066 yuan, reflecting the same percentage decrease of 571.43% from 2018[22]. - The weighted average return on equity for 2019 was -5.019%, a decline of 6.103 percentage points from 1.084% in 2018[22]. - Net profit attributable to shareholders for Q4 2019 was -13,437,539.66 yuan, with a total annual net profit of -44,951,144.08 yuan[24]. - The company reported a net profit of -39.89 million yuan, a decrease of 666.95% year-on-year, primarily due to reduced sales margins and impairment provisions[91]. Assets and Liabilities - Total assets as of the end of 2019 amounted to 2,247,718,828.91 yuan, reflecting a 3.07% increase from 2,180,704,990.26 yuan in 2018[21]. - The net assets attributable to shareholders at the end of 2019 were 899,553,326.37 yuan, an increase of 3.31% from 870,732,498.54 yuan at the end of 2018[21]. - Total liabilities increased to CNY 1,322,613,065.01 in 2019 from CNY 1,187,502,624.12 in 2018, reflecting a growth of about 11.4%[197]. - Current liabilities decreased to CNY 686,402,499.18 in 2019 from CNY 1,186,807,553.56 in 2018, a reduction of approximately 42.2%[196]. - Long-term liabilities decreased to CNY 636,210,565.83 in 2019 from CNY 695,070.56 in 2018, a decline of about 8.5%[196]. Cash Flow - The cash flow from operating activities for 2019 was -47,799,953.98 yuan, compared to -180,306,340.50 yuan in 2018[21]. - The net cash flow from operating activities in Q4 2019 was 32,940,265.23 yuan, contrasting with negative cash flows in the first three quarters[24]. - The company's operating cash flow was CNY -47.80 million, an improvement from CNY -180.31 million in the previous year[44]. - The company's cash and cash equivalents increased by 125.18% to CNY 168,139,487.04, primarily due to the registered capital received by the subsidiary Hengli New Materials[59]. Revenue and Sales - Total revenue for Q3 2019 was 132,346,457.03 yuan, while Q4 revenue dropped to 26,354,313.00 yuan[24]. - The total revenue from domestic sales was CNY 113,267,373.31, down 77.64% year-on-year, while foreign sales revenue was CNY 27,161,023.57, down 39.12%[51]. - Revenue from the chemical raw materials and chemical products manufacturing business decreased by 36.28% year-on-year, with a gross profit margin decline of 14.64 percentage points[48]. - The sales revenue from direct sales was ¥10,357.36 million, a decrease of 10.96% year-on-year, while revenue from distribution fell by 64.70%[79]. Research and Development - The company has 19 patents related to its activated carbon production, including 15 utility model patents and 4 invention patents[30]. - Research and development expenses increased by 129.81% to CNY 1.64 million, reflecting a focus on innovation[44]. - The total R&D expenditure was CNY 1,635,132.56, accounting for 0.62% of total revenue, with 98 R&D personnel representing 27.22% of the total workforce[56]. Environmental and Regulatory Compliance - The company is responding to the increasing environmental regulations in the activated carbon industry by upgrading production facilities and closing non-compliant plants[82]. - Ningxia Huahui is upgrading its facilities to meet new environmental standards in the activated carbon industry[135]. - The company has implemented a salary policy that includes base salary, position salary, and seniority salary for on-duty personnel[166]. Legal Matters - The company is involved in a significant lawsuit against Xu Xiaochun, claiming a loss of 157 million RMB due to unfulfilled performance commitments from 2017[113]. - The company has initiated legal proceedings to increase its claims related to the performance compensation agreement[106]. - The company has received a court ruling to freeze and seize bank deposits amounting to RMB 91,800,000[117]. Governance and Management - The company has established a governance structure to enhance management and ensure stable development, with clear responsibilities among shareholders, board members, and management[133]. - The company has a strong management team with extensive experience in finance and operations, including positions in various subsidiaries and related companies[156]. - The audit report confirms that the financial statements of Ningxia New Day Hengli Steel Wire Rope Co., Ltd. fairly reflect its financial position as of December 31, 2019, in accordance with accounting standards[182]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 30,643, a decrease from 31,956 at the end of the previous month[141]. - The largest shareholder, Shanghai Zhongneng, holds 200 million shares, representing 29.20% of the total shares, with these shares being pledged[143]. - The company has approved a three-year cash dividend plan (2018-2020) to enhance transparency and protect the rights of minority shareholders[103].