Financial Performance - The company reported a net profit of -18,162,854.95 RMB for the year 2022, resulting in a cumulative profit available for distribution to shareholders of -206,709,117.34 RMB at the end of the year[5]. - The company will not implement any profit distribution or capital reserve transfer to increase share capital for the year 2022 due to the negative profit situation[5]. - The company's operating revenue for 2022 was approximately ¥681.13 million, representing a year-over-year increase of 173.86% compared to ¥248.72 million in 2021[22]. - The net loss attributable to shareholders for 2022 was approximately ¥141.48 million, an improvement from a loss of ¥166.09 million in 2021[22]. - The basic earnings per share for 2022 was -¥0.207, compared to -¥0.243 in 2021, indicating a reduction in losses[23]. - The total assets at the end of 2022 were approximately ¥3.28 billion, a slight decrease of 0.82% from ¥3.31 billion at the end of 2021[22]. - The cash flow from operating activities for 2022 was approximately ¥53.14 million, a significant improvement from a negative cash flow of ¥17.93 million in 2021[22]. - The weighted average return on equity for 2022 was -20.224%, compared to -19.023% in 2021, reflecting continued challenges in profitability[23]. - The company reported a quarterly operating revenue of ¥308.59 million in Q2 2022, the highest among the four quarters[25]. - The net profit attributable to shareholders in Q2 2022 was approximately ¥31.86 million, marking a significant recovery from losses in other quarters[25]. Audit and Compliance - The audit report issued by the accounting firm indicates a qualified opinion, highlighting the need for investors to review the detailed explanations provided in the report[4]. - The company’s financial statements have been audited by 信永中和会计师事务所, which is responsible for ensuring the accuracy and completeness of the financial reports[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures in providing guarantees to external parties[7]. - The company received a regulatory warning from the Shanghai Securities Regulatory Commission on August 22, 2022, involving its controlling shareholder and several executives[130]. - The company received a qualified audit opinion from Xinyong Zhonghe for its 2022 financial statements[169]. Business Operations and Strategy - The company has not disclosed any plans for market expansion, new product development, or mergers and acquisitions in the current report[6]. - The company is committed to enhancing its profitability by continuously expanding its market presence and developing new products in response to market demands[37]. - The company is currently developing several new technologies, including a new fermentation process for lauric acid and a coal-based activated carbon for acetone adsorption[62]. - The company aims to enhance its production capabilities in the lauric acid industry, focusing on high-end products and reducing reliance on imports[72]. - The company is exploring market expansion and new product development through strategic partnerships and technological innovations[73]. - The company is actively seeking financing solutions to address the temporary production halt at its subsidiary, with a goal to resume operations within three months[110]. Environmental and Sustainability Efforts - The company invested approximately 400 million yuan in environmental protection facilities during the reporting period[153]. - The company has established environmental protection mechanisms and complies with relevant laws and standards[152]. - The company has taken measures to reduce carbon emissions through technology development, improving production efficiency, and reducing raw material and energy consumption[161]. - The company has developed an emergency response plan for environmental incidents, which has been filed and includes regular training for employees[159]. - The company is listed as a key pollutant discharge unit by the Ningxia Environmental Protection Department[153]. Research and Development - The company has established innovation platforms, including the Ningxia Biobased Materials Engineering Research Center, to enhance its R&D capabilities[73]. - The company has a dedicated R&D team of 61 personnel, with 31 members under the age of 40, focusing on innovative production techniques[78]. - The company’s R&D expenses increased by 24.63% to 25.51 million yuan, reflecting ongoing innovation efforts[46]. - The company is focusing on the continuous R&D of bio-based long-chain dicarboxylic acid production technology, achieving significant improvements in product quality stability, efficiency, and cost reduction[73]. Governance and Management - The company adheres to legal and regulatory requirements in corporate governance, ensuring clear responsibilities among shareholders, board members, and management[113]. - The company has established a robust investor relations management system to facilitate communication with investors[115]. - The company has a comprehensive information disclosure policy to ensure all shareholders have equal access to information[115]. - The company has experienced a shift in its governance structure with the election of new independent directors[129]. - The company is committed to aligning its executive compensation with performance metrics as per its established remuneration system[127]. Market and Competitive Position - The long-chain dicarboxylic acid market is expected to grow continuously, driven by the demand for lightweight materials in the automotive and electronics industries during the 14th Five-Year Plan period[35]. - The activated carbon industry is anticipated to expand due to increasing environmental awareness and demand in sectors such as water treatment and air purification[36]. - The company plans to enhance its competitive edge by focusing on the independent research and development of lauric acid production technology and expanding its product offerings[105]. - The company is actively pursuing strategies for market expansion and product innovation to drive future growth[1]. Financial Position and Shareholder Relations - The company has implemented a cash dividend policy, prioritizing cash distribution to protect investors' rights, with a plan for shareholder returns from 2021 to 2023[143]. - The total remuneration for all directors, supervisors, and senior management was 3.8498 million yuan[127]. - The company has not engaged in any significant related party transactions that could affect its independence[116]. - The company reported a total revenue of 619,070 million in 2022, showing a significant increase compared to previous years[118]. - The company is committed to optimizing its asset structure and exploring diversified development to enhance its risk resistance and sustainable growth capabilities[105].

2022 年第三季度报告 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中 财务信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 主要会计数据和财务指标 证券代码：600165 证券简称：新日恒力 宁夏中科生物科技股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 公司对上年同期主要会计数据和主要财务指标进行了追溯调整，主要原因如下： 单位：元 币种：人民币 | 年初 | 本报 | 至报 | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 告期 | 告期 | 比上 | | | | | | | 末比 | 年同 | 上年 | | | | | | | 上年同期 | 期增 | 上年同期 | 同期 | ...

Financial Performance - The company's operating revenue for the first half of 2022 reached RMB 475.30 million, a significant increase of 462.75% compared to RMB 84.46 million in the same period last year[19]. - The net profit attributable to shareholders of the listed company was RMB 8.91 million, recovering from a loss of RMB 26.67 million in the previous year[19]. - The net cash flow from operating activities was RMB 9.68 million, a recovery from a negative cash flow of RMB 48.99 million in the same period last year[19]. - Basic earnings per share for the first half of 2022 were RMB 0.013, compared to a loss of RMB 0.039 per share in the same period last year[20]. - The total operating revenue for the first half of 2022 reached RMB 475.30 million, a significant increase from RMB 84.46 million in the same period of 2021, representing a growth of 462.5%[116]. - The net profit for the first half of 2022 was RMB 7.24 million, a turnaround from a net loss of RMB 30.67 million in the same period of 2021[117]. - The total comprehensive income for the first half of 2022 was RMB 7.48 million, compared to a loss of RMB 30.30 million in the same period of 2021[117]. Assets and Liabilities - The total assets of the company increased by 3.37% to RMB 3.41 billion compared to the end of the previous year[19]. - The total liabilities due within one year increased to ¥146,833,826.31, representing 4.30% of total assets, up 80.47% from the previous year[42]. - Total liabilities rose to ¥2,345,662,581.68, compared to ¥2,242,039,576.61, indicating an increase of about 4.63%[109]. - The company's total equity attributable to shareholders at the end of the reporting period was 684,883.78 million RMB, reflecting a decrease of 30,277.99 million RMB from the previous year[136]. - The total owner's equity at the end of the reporting period is 1,005,250,869.34, with a capital stock of 684,883,775.00 and retained earnings of -145,470,346.27[142]. Research and Development - The company’s research and development expenses increased by 545.65% to RMB 15.80 million, reflecting a strong commitment to innovation[38]. - The company aims to improve product quality continuously through ongoing technological research and development[29]. - The company plans to deepen cooperation with the Chinese Academy of Sciences to enhance its innovation capabilities in the long-chain dicarboxylic acid sector[36]. Environmental and Regulatory Compliance - The company has implemented various pollution control systems, including a biological fermentation tail gas treatment system and a comprehensive wastewater treatment system[71]. - The company has established an emergency response plan for environmental incidents and conducts regular training for employees[74]. - The company has obtained necessary environmental impact assessments and discharge permits for its projects[73]. - The company is listed as a key pollutant discharge unit in Ningxia, with three main discharge outlets[68]. Market and Business Strategy - The company employs a mixed sales model combining direct sales, distribution, and consignment to expand both domestic and international markets[30]. - The market demand for long-chain dicarboxylic acid is expected to continue growing, driven by the expansion of the long-chain nylon industry during the 14th Five-Year Plan period[29]. - The company has established a comprehensive procurement, production, sales, R&D, and customer service system to enhance profitability[31]. Investment and Acquisitions - The company completed the acquisition of an additional 49% stake in Zhongke New Materials, raising its ownership from 31% to 80%[47]. - The company plans to acquire an additional 10% stake in Zhongke New Materials, increasing its ownership to 90%[48]. - The company borrowed a total of RMB 500 million from Guangdong Hongjun Investment Co., Ltd. to repurchase a 49% stake in Hengli New Materials[88]. Risk Factors - The company has described potential risks in the "Management Discussion and Analysis" section of the report[4]. - Fluctuations in raw material prices, particularly for long-chain dicarboxylic acid and coal-based activated carbon, may impact gross margins; the company will adjust procurement strategies to mitigate these risks[55]. - Changes in government subsidy policies could affect operational performance; the company aims to strengthen R&D and production technology to improve profitability[55]. - The ongoing COVID-19 pandemic poses risks to logistics and supply chain management; the company will adhere to national prevention measures to minimize operational disruptions[56]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 23,345[96]. - The top shareholder, Shanghai Zhongneng Enterprise Development (Group) Co., Ltd., holds 200,000,000 shares, representing 29.20% of the total shares[98]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[100]. Financial Reporting and Compliance - The financial report for the first half of 2022 has not been audited[6]. - The company’s financial statements comply with the requirements of enterprise accounting standards, reflecting its financial status and operating results accurately[156]. - The company’s accounting period runs from January 1 to December 31 each year[157].

Financial Performance - The company's operating revenue for Q1 2022 was ¥166,716,293.63, representing a significant increase of 335.76% compared to the same period last year[3]. - The net profit attributable to shareholders was a loss of ¥22,955,758.38, a decrease of 928.87% year-over-year[3]. - The net cash flow from operating activities was negative at ¥87,572,135.13, reflecting a decline of 2,358.94% compared to the previous year[3]. - Basic and diluted earnings per share were both -¥0.0335, a decrease of 937.50% year-over-year[3]. - The net loss for Q1 2022 was ¥27.90 million, compared to a net profit of ¥0.56 million in Q1 2021, indicating a shift in financial performance[15][16]. - The company's gross profit margin for Q1 2022 was approximately -23.8%, down from a positive margin in the previous year[15]. - The company reported a total comprehensive loss of ¥27.71 million for Q1 2022, compared to a comprehensive income of ¥0.70 million in Q1 2021[16]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,290,453,763.98, down 5.04% from the previous year[3]. - Current assets totaled CNY 302,815,704.36, slightly up from CNY 302,056,104.92, indicating a marginal increase of about 0.25%[12]. - The company's long-term equity investments amounted to CNY 661,462,128.88, up from CNY 652,016,329.76, showing a growth of about 1.5%[12]. - Total liabilities as of Q1 2022 amounted to ¥2.27 billion, slightly up from ¥2.24 billion in the previous year[13]. - Total liabilities amounted to approximately 2.24 billion, with current liabilities at about 1.08 billion and non-current liabilities at approximately 1.16 billion[23]. Shareholders' Equity - Shareholders' equity attributable to the company decreased by 19.74% to ¥733,166,573.12 compared to the end of the previous year[3]. - The equity attributable to shareholders of the parent company decreased to ¥733.17 million in Q1 2022 from ¥913.44 million in Q1 2021[13]. - Shareholders' equity totaled approximately 1.22 billion, with equity attributable to the parent company at around 913.44 million[23]. Cash Flow - Cash inflow from operating activities in Q1 2022 was CNY 162,513,832.34, a significant increase from CNY 54,092,705.02 in Q1 2021, representing a growth of 200.5%[19]. - Net cash outflow from operating activities in Q1 2022 was CNY -87,572,135.13, compared to a positive cash flow of CNY 3,876,689.24 in Q1 2021[19]. - Cash inflow from financing activities in Q1 2022 totaled CNY 153,980,498.05, up from CNY 109,000,000.00 in Q1 2021, marking an increase of 41.2%[20]. - The ending cash and cash equivalents balance as of Q1 2022 was CNY 26,318,342.47, down from CNY 285,423,416.09 at the end of Q1 2021[20]. Research and Development - Research and development expenses increased by 781.01% due to higher investment in R&D activities by the subsidiary[5]. - Research and development expenses increased to ¥6.94 million in Q1 2022, compared to ¥0.79 million in Q1 2021, reflecting a focus on innovation[15]. Inventory and Receivables - The company reported a significant increase in inventory by 63.71% due to reclassification of trial production products[5]. - Accounts receivable increased to CNY 23,538,868.48 from CNY 19,526,701.88, marking an increase of about 20.5%[11]. - Inventory rose significantly to CNY 159,970,089.39 from CNY 97,714,459.00, reflecting an increase of approximately 63.6%[11]. Government Subsidies and Adjustments - The company received government subsidies amounting to ¥2,349,969.04 related to the elimination of outdated production capacity[4]. - The company made retrospective adjustments to revenue and costs related to the sale of products generated during the trial production of the month桂二酸 project[24]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 24,498[6]. - The company has no significant related party transactions among the top shareholders, ensuring independent operations[9]. - The company has not reported any significant new strategies or product developments during the quarter[10].

Financial Performance - In 2021, the company's operating revenue was CNY 192,386,865.11, representing a 61.51% increase compared to CNY 119,114,953.74 in 2020[18]. - The net profit attributable to shareholders of the listed company was a loss of CNY 22,964,880.32, a decrease of 209.85% from a profit of CNY 20,906,030.80 in 2020[18]. - The net cash flow from operating activities was a negative CNY 7,768,636.65, an improvement from a negative CNY 41,059,918.36 in 2020[18]. - The total assets at the end of 2021 were CNY 3,465,248,294.58, an increase of 3.92% from CNY 3,334,571,091.58 at the end of 2020[18]. - The net assets attributable to shareholders of the listed company decreased by 4.47% to CNY 913,444,901.15 from CNY 956,151,389.74 in 2020[18]. - The basic earnings per share for 2021 was -CNY 0.034, a decrease of 209.68% from CNY 0.031 in 2020[19]. - The weighted average return on net assets was -2.431% in 2021, a decrease of 4.747 percentage points from 2.316% in 2020[19]. - The company did not implement profit distribution or capital reserve transfer to increase share capital for the year 2021 due to accumulated losses[4]. Revenue and Sales - In 2021, the company reported total operating revenue of RMB 21,815.94 million, with a net profit of -RMB 6.69 million[29]. - The company achieved operating revenue of CNY 192.39 million, representing a year-on-year increase of 61.51%[37]. - The revenue from the chemical raw materials and chemical products manufacturing segment was RMB 19,043.72 million, with a year-on-year increase of 67.24%[79]. - The company’s sales revenue from direct sales reached RMB 19,043.72 million, reflecting a significant growth compared to the previous year[81]. - Domestic sales accounted for CNY 152.70 million, with a gross margin of 10.69%[42]. - International sales reached CNY 37.73 million, with a gross margin of 19.80%[42]. Costs and Expenses - The cost of sales increased to CNY 168.49 million, up 55.83% from the previous year[38]. - Research and development expenses surged to CNY 20.47 million, a significant increase of 2,021.23%[38]. - The direct material costs increased to 119,115,556.99 yuan, accounting for 71.48% of total costs, up from 61,870,593.63 yuan (59.91%) in the previous year[47]. - The sales expenses rose by 49.18% to 3,738,207.03 yuan, primarily due to the consolidation of Ningxia Tianfu and increased travel expenses[51]. - The manufacturing costs increased to 35,228,076.03 yuan, which is 21.14% of total costs, compared to 30,888,824.15 yuan (29.91%) in the previous year[47]. Research and Development - The company holds 36 patents, including 8 new utility model patents added during the reporting period[32]. - The total R&D investment amounted to 20,467,396.31 yuan, representing 10.64% of the operating revenue[53]. - The number of R&D personnel is 70, making up 6.10% of the total workforce[54]. - The company invested a total of 9.64 million yuan in 22 R&D projects aimed at improving product quality and reducing energy consumption, with a focus on the annual production of 50,000 tons of lauric acid[56]. - The R&D projects resulted in the filing of 5 invention patents and 3 utility model patents, enhancing the company's technological innovation capabilities[56]. Market and Industry Trends - The activated carbon industry is expected to see growth due to increasing environmental awareness and demand in various applications such as water treatment and air purification[70]. - The activated carbon industry is experiencing a shift towards developing countries, with increasing competition and a need for technological advancement among domestic companies[88]. - The market demand for long-chain dicarboxylic acids is expected to grow, driven by applications in high-end energy, new energy vehicles, and various high-tech material industries[87]. Risks and Challenges - The company has disclosed potential risks in its management discussion and analysis section, urging investors to be cautious[5]. - The company faced a net loss attributable to shareholders of RMB 13.99 million in Q2 2021, and continued losses in subsequent quarters[22]. - The company faces risks from fluctuating raw material prices and market demand for lauric acid products, which may impact profitability[93]. - The ongoing COVID-19 pandemic poses risks to production operations, particularly in regions like Europe and the United States[93]. - The company is subject to increased regulatory scrutiny regarding energy consumption and emissions as part of national green development initiatives[93]. Governance and Management - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations[96]. - The board of directors and supervisory board operate independently, ensuring the protection of shareholder rights[97]. - The company has a diverse board with members having extensive experience in finance, management, and law[103]. - The company has maintained a stable management team with long tenures, ensuring continuity in leadership[101]. - The company is exploring opportunities for mergers and acquisitions to strengthen its market presence[103]. Environmental Responsibility - The company invested nearly 400 million RMB in environmental protection facilities, implementing advanced technologies for waste treatment[132]. - The company is listed as a key pollutant discharge unit, with regulated emissions including 119.94 tons of SO2 and 154 tons of NOX annually[134]. - The company has not reported any major environmental pollution incidents during the reporting period[132]. - The company has established a self-monitoring scheme for environmental compliance, with all emissions indicators meeting standards during the testing period[139]. Financial Obligations and Investments - The company has a loan balance of RMB 39 million from Huanghe Bank and RMB 67.3 million from Huanghe New Materials as of December 31, 2021[165]. - The company borrowed a total of RMB 500 million from Guangdong Hongjun Investment Co., Ltd. to repurchase 49% equity of its subsidiary Hengli New Materials[167]. - The company has committed to acquiring 80% equity of Boya Stem Cell, with a total payment of 600 million yuan, including a performance deposit of 50 million yuan already paid[149]. - The company has established a cash dividend payment schedule to ensure the industrial fund's annual returns are met[152]. Employee Engagement and Training - The total number of employees in the parent company and major subsidiaries is 1,156, with 24 in the parent company and 1,132 in subsidiaries[121]. - The company conducted 662 training sessions in 2021, achieving a completion rate of 99% with a total of 13,338 training participants[124].

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]