一、 重要提示 1.1 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、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 2018 年第三季度报告 公司代码：600217 公司简称：中再资环 中再资源环境股份有限公司 2018 年第三季度报告 1 / 22 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 7 | | 四、 | 附录 | 9 | 2018 年第三季度报告 1.3 公司负责人管爱国、主管会计工作负责人程赣秋及会计机构负责人（会计主管人员）邓跃伟 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 3 / 22 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 5,114,235,409.38 4,824,324,962.44 6.01 归属于上市公司 股东的净资产 1 ...

Financial Performance - The company reported a significant increase in revenue for the first half of 2018, with total revenue reaching RMB 1.2 billion, representing a year-on-year growth of 15%[21]. - The net profit attributable to shareholders for the first half of 2018 was RMB 200 million, an increase of 10% compared to the same period last year[21]. - The company achieved operating revenue of RMB 1.12 billion in the first half of the year, an increase of 23.36% compared to RMB 906.37 million in the same period last year[23]. - Net profit attributable to shareholders reached RMB 153.28 million, up 45.76% from RMB 105.16 million year-on-year[23]. - Basic earnings per share increased by 37.50% to RMB 0.11, compared to RMB 0.08 in the same period last year[22]. - The company reported a total of 232 million RMB in guarantees, which accounts for 12.64% of the company's net assets[66]. - The company reported a total current assets of RMB 4,127,555,663.09 as of June 30, 2018, an increase from RMB 4,021,860,987.80 at the beginning of the period, reflecting a growth of approximately 2.6%[101]. - The comprehensive income for the current period amounts to RMB 396,916,241.23, indicating a significant increase compared to the previous period[128]. Market Expansion and Strategy - User data indicates that the company has expanded its customer base by 20%, now serving over 500,000 clients[21]. - Future outlook suggests a projected revenue growth of 25% for the second half of 2018, driven by new product launches and market expansion strategies[21]. - Market expansion efforts include entering three new provinces, which are expected to contribute an additional RMB 100 million in revenue by the end of 2018[21]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[130]. - The company is focused on enhancing shareholder value through strategic investments and potential mergers and acquisitions[130]. Asset Management and Financial Health - Total assets at the end of the reporting period were RMB 4.92 billion, a 1.96% increase from the beginning of the year[23]. - The company's net assets increased by 9.11% to RMB 1.84 billion compared to the end of the previous year[23]. - The asset-liability ratio decreased to 62.47%, down 2.51 percentage points from the beginning of the year[32]. - The company’s total liabilities decreased, indicating improved financial health, with a notable reduction in unallocated profits[128]. - The company has maintained a stable capital structure, with no significant changes in debt levels reported during the current period[120]. Research and Development - The company has invested RMB 50 million in research and development for new technologies aimed at enhancing recycling efficiency[21]. - The company plans to optimize its dismantling processes and upgrade equipment to reduce costs and improve profitability amid rising labor and material costs[44]. Compliance and Governance - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[6]. - There are no violations of decision-making procedures regarding external guarantees, maintaining compliance with regulations[6]. - The company has outlined potential risks in its future development, emphasizing the importance of investor awareness regarding these risks[6]. - The company will ensure that any related transactions with Qinling Cement are conducted at fair market prices[52]. - The company maintains independence from Qinling Cement in assets, personnel, finance, institutions, and operations, adhering to the five-separation principle[56]. Environmental Responsibility - The company’s subsidiaries have established pollution prevention facilities, including wastewater treatment systems and air pollution control systems, to comply with relevant emission standards[73]. - The company has actively fulfilled its environmental responsibilities and obligations, adhering to environmental policies and implementing effective pollution control measures[77]. - The company’s subsidiaries have reported no exceedance of pollutant discharge limits during the reporting period, ensuring compliance with environmental regulations[72]. Shareholder Information - The company has held two shareholder meetings during the reporting period, with no rejected proposals or additional temporary proposals[47]. - No profit distribution or capital reserve fund transfer is proposed for the half-year period, with no dividends or stock bonuses planned[48]. - The largest shareholder, China Recycled Resources Development Co., Ltd., held 358,891,083 shares, representing 25.84% of total shares, with 26,826,541 shares pledged[90]. Risks and Challenges - The company faces risks related to policy changes in the waste recycling industry, which could impact revenue and operational costs[43]. - The company has outlined potential risks in its future development, emphasizing the importance of investor awareness regarding these risks[6]. Management and Corporate Governance - The company experienced a change in management with the resignation of Deputy General Manager Xun Qingming due to personal reasons[96]. - The company appointed Zhongtianyun Accounting Firm as the auditor for the 2018 financial report and internal control audit, with a one-year term[59].

Financial Performance - In 2017, the company reported a net profit of -67,192,836.44 RMB, with a total available profit for distribution to shareholders of -1,132,583,004.68 RMB, leading to a proposal of no profit distribution for the year[5]. - The company's operating revenue for 2017 was CNY 2,338,202,635.66, representing a 60.00% increase compared to CNY 1,461,364,853.11 in 2016[25]. - The net profit attributable to shareholders for 2017 was CNY 217,586,108.99, a 55.22% increase from CNY 140,179,720.31 in 2016[25]. - The total profit for 2017 was 264 million RMB, up by 89 million RMB compared to the previous year[42]. - The net profit for 2017 reached 220 million RMB, reflecting an increase of 80 million RMB year-on-year[42]. - The company's total assets at the end of 2017 were 4.824 billion RMB, an increase of 1.505 billion RMB from the beginning of the year[43]. - The asset-liability ratio at the end of 2017 was 64.98%, a decrease of 2.04 percentage points from the beginning of the year[43]. - The company's total assets reached CNY 4,824,324,962.44 at the end of 2017, a 45.35% increase from CNY 3,319,130,914.15 in 2016[25]. - The net cash flow from operating activities for 2017 was CNY -544,692,897.61, compared to CNY -374,089,380.98 in 2016[25]. - The weighted average return on net assets for 2017 was 15.06%, an increase of 0.49 percentage points from 14.57% in 2016[27]. Share Capital Changes - The company completed a non-public offering of 69,749,006 shares at a price of 6.63 RMB per share, raising a total of 462,435,909.78 RMB, with a net amount of 454,941,097.39 RMB allocated to supplement working capital[9]. - The total number of shares increased from 1,341,587,523 to 1,411,336,529 shares following the non-public issuance, and subsequently decreased to 1,388,659,782 shares after the repurchase of 22,676,747 shares due to unfulfilled performance commitments[10]. - The company's registered capital changed from 1,341,587,523 RMB to 1,411,336,529 RMB after the issuance, and then to 1,388,659,782 RMB after the repurchase[11]. - The company issued 69,749,006 new shares on April 21, 2017, with a lock-up period of 36 months[145]. - The total number of ordinary shares increased from 1,341,587,523 to 1,411,336,529 shares due to a private placement of 69,749,006 shares[159]. - The total number of shares held by the current and departing directors and senior management at the beginning of the reporting period was 10,320,618, which decreased to 9,976,842 by the end of the period, a reduction of 343,776 shares[177]. Acquisitions and Investments - The company acquired a 60% stake in a Yunnan company during the reporting period, resulting in a business combination under common control[29]. - The company acquired 100% equity of Xinghe Environmental Protection for CNY 94 million, making it a wholly-owned subsidiary[74]. - The company acquired 60% equity of Yunnan Company for CNY 28.8 million, establishing it as a controlling subsidiary[75]. - The company completed the acquisition of 30 million yuan equity from Taiwan companies in Shandong Company for a total of CNY 48.8 million[74]. - The company invested CNY 40 million in its wholly-owned subsidiaries including Tangshan, Sichuan, Luoyang, Guangdong, and Jiangxi[75]. Financial Management and Compliance - The company’s financial report was audited by Zhongtianyun Accounting Firm, which issued a standard unqualified opinion[4]. - The company emphasizes the importance of accurate and complete financial reporting, with all board members confirming the integrity of the annual report[8]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[7]. - The company has committed to not interfere with the management activities of the company and not to infringe on the company's interests as part of its compliance with regulatory requirements[107]. - The company has established measures to mitigate the impact of immediate return dilution from the non-public issuance of shares, in line with regulatory requirements[105]. Environmental Management - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential environmental risks[132]. - The company adheres to strict monitoring and compliance with environmental regulations, including regular third-party monitoring of emissions[134]. - The company is actively improving its environmental management practices to meet national and local standards for waste and emissions[131]. - The company has established pollution prevention facilities, including wastewater treatment systems and dust collection systems, in accordance with environmental standards[139]. - The company’s waste gas emissions comply with the relevant standards, with no instances of exceeding discharge limits reported[141]. Risks and Future Outlook - The company has detailed potential risks related to its future development in the report, emphasizing the importance of investor awareness regarding these risks[7]. - The company faces risks related to policy changes, commodity price fluctuations, rising labor costs, and increasing acquisition prices for electronic waste[86][87][88][89]. - The company plans to achieve an annual revenue of 2.5 billion yuan in 2018, focusing on enhancing management and operational efficiency[84]. - The electronic waste processing industry is experiencing increased competition, with the number of companies eligible for government subsidies stabilizing at 109, indicating a slowdown in industry expansion[82]. - The company aims to strengthen its brand influence and maintain its leadership position in the electronic waste recycling industry through network expansion and resource processing improvements[83].

Financial Performance - Operating revenue increased by 34.71% to CNY 457,366,248.98 year-on-year[6] - Net profit attributable to shareholders rose by 53.06% to CNY 58,654,497.69 compared to the same period last year[6] - Basic and diluted earnings per share increased by 47.55% to CNY 0.0422[8] - The company anticipates a significant increase in net profit compared to the same period last year, with no major changes expected in the upcoming reporting period[19] - Net profit for Q1 2018 reached CNY 59,599,871.03, representing a 53.5% increase from CNY 38,830,541.08 in Q1 2017[32] Cash Flow - Net cash flow from operating activities improved significantly, with a net inflow of CNY 500,829,979.23, a turnaround from a net outflow of CNY 248,137,395.32 in the previous year[6] - Cash flow from sales of goods and services skyrocketed by 535.26% to ¥886,923,260.37 from ¥139,616,150.71, due to subsidies received for waste electrical and electronic product processing[17] - Cash received from tax refunds surged by 7018.41% to ¥14,189,933.67 from ¥199,341.43, indicating a significant tax refund[17] - Operating cash inflow for Q1 2018 was CNY 912,199,444.36, a substantial increase from CNY 146,323,981.06 in the previous period[38] - The net cash flow from operating activities was CNY 500,829,979.23, a significant recovery from a negative cash flow of CNY -248,137,395.32 in the same period last year[38] Assets and Liabilities - Total assets decreased by 4.44% to CNY 4,610,183,059.09 compared to the end of the previous year[6] - Current assets totaled CNY 1,474,776,702.74, down from CNY 1,722,822,203.38 at the start of the year, indicating a reduction of 14.4%[27] - Total liabilities amounted to CNY 1,903,224,804.84, a decrease of 4.2% from CNY 1,987,388,259.28 at the beginning of the year[29] - The company's equity attributable to shareholders was CNY 2,161,463,938.42, down from CNY 2,185,478,040.24 at the start of the year[29] - Cash and cash equivalents at the end of the period increased by 32.57% to ¥765,412,112.98 from ¥577,384,991.15[23] Operating Costs - Operating costs rose by 81.87% to ¥247,486,738.60 from ¥136,077,430.52, mainly driven by increased procurement costs[17] - Tax and additional charges surged by 125.11% to ¥6,034,883.32 from ¥2,680,878.66, attributed to an increase in turnover tax[17] - Sales expenses increased by 163.29% to ¥3,996,853.54 from ¥1,518,030.68, reflecting heightened sales activities[17] - The company incurred total operating costs of CNY 2,953,874.40, which includes sales expenses of CNY 281,006.10 and management expenses of CNY 7,564,308.53[34] Shareholder Information - The total number of shareholders reached 36,658 at the end of the reporting period[11] - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 25.84% of the shares, with 358,891,083 shares pledged[11] Other Financial Metrics - The weighted average return on equity decreased by 0.21 percentage points to 3.43%[6] - The company reported a total of CNY 1,537,855.58 in non-recurring gains and losses for the period[9] - The company reported a significant reduction in asset impairment losses, which decreased to CNY 66,961,700.99 from CNY 120,999,234.24 year-over-year[32] - The company's total comprehensive income for Q1 2018 was CNY -24,014,101.82, which is a decline from CNY -8,406,735.19 in the same period last year[36] Strategic Developments - The company is planning a major asset restructuring involving the acquisition of equity in Zhongzai Environmental Services Co., Ltd., which has led to a temporary suspension of its stock trading[18] - The company has not disclosed any new product developments or market expansion strategies in this report[16]

Financial Performance - Operating revenue for the first nine months reached CNY 1,553,447,591.76, a 69.71% increase year-on-year[6] - Net profit attributable to shareholders increased by 145.89% to CNY 149,260,229.31 for the first nine months[6] - Basic and diluted earnings per share rose by 120% to CNY 0.11[7] - The net profit for the first nine months of 2017 was ¥698,963,850.63, compared to ¥536,636,654.94 for the same period in 2016, reflecting a growth of approximately 30.2%[25] - The company recorded a total profit of 170,037,562.15 RMB for the first nine months of 2017, compared to 84,557,704.07 RMB in the same period last year, representing a significant increase of about 100.5%[31] Assets and Liabilities - Total assets increased by 39.20% to CNY 4,618,007,687.86 compared to the end of the previous year[6] - Total liabilities increased to ¥3,002,932,531.53 from ¥2,222,783,334.91 year-over-year, representing a growth of approximately 35%[27] - Current assets totaled ¥1,518,075,889.65 as of September 30, 2017, compared to ¥1,042,754,993.99 at the beginning of the year, marking an increase of about 45.6%[26] - The company's equity attributable to shareholders rose to ¥1,609,291,454.23 from ¥1,032,777,663.35, an increase of about 55.5%[25] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 614,195,591.90, compared to a net outflow of CNY 622,971,205.60 in the same period last year[6] - Cash inflow from sales of goods and services reached ¥793,636,510.86, compared to ¥386,575,599.13 in the same period last year, representing an increase of 105.4%[37] - Total cash inflow from operating activities amounted to ¥827,946,022.95, up from ¥513,470,129.22, marking a year-over-year increase of 61.3%[38] - Net cash flow from financing activities was ¥1,082,250,180.91, up from ¥787,387,149.38, showing an increase of 37.4%[39] Shareholder Information - The total number of shareholders reached 38,987 by the end of the reporting period[11] - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 26.00% of the shares, with 266,887,408 shares pledged[11] Government Support and Investments - The company received government subsidies totaling CNY 6,218,709.64 during the reporting period[8] - The company completed acquisitions of minority stakes in Shandong Zhonglv Resource Recycling Co., Ltd. and 100% of Zhejiang Xinghe Environmental Protection Co., Ltd. during the reporting period[17] - The goodwill on the balance sheet reached ¥36.36 million following the acquisition of non-controlling interests[14] Operational Costs - Operating costs increased by 71.77% to ¥801.93 million, also due to higher dismantling and sales volumes[16] - The company's management expenses for the first nine months of 2017 were 60,537,099.05 RMB, up from 47,799,064.99 RMB in the same period last year, indicating a rise of approximately 26.6%[31] Other Financial Metrics - The weighted average return on net assets increased by 4.15 percentage points to 11.02%[7] - The company reported a 30.25% increase in undistributed profits, totaling ¥698.96 million, due to increased net profits[14] - The company’s short-term borrowings increased by 137.52% to ¥1.52 billion, reflecting higher working capital needs[14] - The total comprehensive income for Q3 2017 was 44,299,663.38 RMB, up from 38,798,419.26 RMB in Q3 2016, indicating a growth of about 14.4%[32]

Financial Performance - The company's operating revenue for the first half of 2017 was RMB 875,050,839.25, representing a 53.98% increase compared to RMB 568,297,442.13 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2017 was RMB 103,844,677.90, a significant increase of 305.94% from RMB 25,581,339.59 in the previous year[20]. - The net profit after deducting non-recurring gains and losses reached RMB 96,340,920.25, marking a 383.20% increase compared to RMB 19,938,144.93 in the same period last year[20]. - The total profit reached CNY 120.88 million, up by 75.06% year-on-year[30]. - Net profit attributable to the parent company was CNY 103.84 million, reflecting a year-on-year increase of 300.00%[30]. - The company reported a total comprehensive income of CNY 103,844,677.90, compared to CNY 27,076,819.70 in the previous period[110]. Assets and Liabilities - The company's total assets as of June 30, 2017, were RMB 4,171,064,734.23, which is a 29.57% increase from RMB 3,219,097,951.25 at the end of the previous year[20]. - The company's total liabilities amounted to CNY 2.587 billion, which is an increase of CNY 450 million compared to the beginning of the period[31]. - The asset-liability ratio decreased by 4.35 percentage points to 62.01%[31]. - The company's total liabilities reached RMB 2,586,604,557.52, up from RMB 2,136,135,598.52, highlighting increased leverage[102]. Share Capital and Equity - The company completed a non-public issuance of 69,749,006 shares, increasing the total share capital from 1,341,587,523 shares to 1,411,336,529 shares[7]. - The net assets attributable to shareholders increased by 54.48% to RMB 1,584,460,176.71 from RMB 1,025,674,401.42 at the end of the previous year[20]. - Basic earnings per share for the first half of 2017 were RMB 0.08, a 300.00% increase from RMB 0.02 in the same period last year[21]. - The total equity attributable to shareholders increased to RMB 1,584,460,176.71 at the end of the period, reflecting growth in shareholder value[124]. Cash Flow - The net cash flow from operating activities for the first half of 2017 was negative at RMB -545,205,632.27, compared to RMB -306,866,806.77 in the same period last year[20]. - The company reported a total cash inflow from financing activities of CNY 1,842,279,034.63, an increase from CNY 1,060,175,243.30 in the previous period[117]. - The total cash inflow from financing activities reached 3,055,854,085.53 RMB, a substantial increase from 377,560,000.00 RMB in the prior period[120]. Operational Efficiency and Strategy - The company plans to optimize dismantling processes and upgrade equipment to improve efficiency and reduce costs[51]. - There is a strategy to enhance sorting technology to increase the value-added of dismantled products and mitigate the impact of commodity price volatility[51]. - The company aims to expand its collection network and innovate acquisition methods to improve operational efficiency[51]. Risks and Challenges - The company has outlined potential risks in its future development, which are detailed in the report[6]. - The company faces risks from policy changes in the waste resource utilization industry, which could impact operations and revenue[50]. - Rising labor costs are anticipated due to the increasing living standards and decreasing supply of suitable labor in the market[50]. Corporate Governance and Compliance - The company has not proposed any profit distribution or capital reserve increase for the half-year period[55]. - The company signed a profit forecast compensation agreement with 11 parties, committing to net profits attributable to the parent company for the years 2014 to 2017 of RMB 165.30 million, RMB 181.34 million, RMB 194.69 million, and RMB 205.01 million respectively[58]. - The company will ensure that Ningxia Supply and Marketing Cooperative Recycled Resources Co., Ltd. fulfills its commitments to resolve potential competition issues with Qinling Cement[59]. Market Position and Industry - The company operates in the waste resource recycling industry, with all subsidiaries qualified for government subsidies related to waste electrical and electronic products[26]. - The company has seen an increase in the recycling and dismantling volume of waste electrical and electronic products year-on-year[49]. - The main products from dismantling include plastics, copper, aluminum, steel, and glass, which are subject to market price fluctuations of related commodities[50]. Financial Reporting and Audit - The company has appointed Zhongtianyun Accounting Firm as the auditor for the 2017 financial report and internal control audit, with a one-year term[67]. - The financial statements are prepared in accordance with the enterprise accounting standards, ensuring a true and complete reflection of the company's financial status[140]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 34,940[88]. - The company has a total of 649,604,837 shares under lock-up agreements, with 28,215,021 shares released during the reporting period[85]. - The company is required to repurchase and cancel 22,676,747 shares due to performance commitments not being met by certain shareholders[87].

Financial Performance - Operating revenue rose by 43.99% to CNY 323,925,274.03 year-on-year[5] - Net profit attributable to shareholders increased significantly by 16,381.65% to CNY 37,558,226.92 compared to the same period last year[5] - Basic earnings per share increased by 13,900.00% to CNY 0.0280 from CNY 0.0002 in the same period last year[5] - The company's operating revenue for the first quarter reached ¥323.93 million, a 43.99% increase compared to ¥224.96 million in the same period last year, primarily due to an increase in dismantling volume[13] - Net profit for Q1 2017 reached CNY 37,558,226.92, compared to CNY 396,421.34 in Q1 2016, indicating a substantial improvement in profitability[28] Assets and Liabilities - Total assets increased by 9.44% to CNY 3,523,093,401.03 compared to the end of the previous year[5] - The company's total assets as of March 31, 2017, amounted to CNY 3,200,079,600.13, up from CNY 2,963,971,519.60 at the beginning of the year[25] - Total liabilities increased to CNY 1,391,941,864.54 from CNY 1,147,427,048.86, indicating a rise in the company's financial obligations[25] - The total current liabilities increased to CNY 754,841,984.51 from CNY 410,377,168.83, reflecting a rise in short-term financial obligations[25] Cash Flow - The net cash flow from operating activities decreased by 46.70% to CNY -251,133,453.35 compared to the previous year[5] - The net cash flow from operating activities was negative at ¥251.13 million, worsening from a negative cash flow of ¥171.19 million in the previous year, reflecting a decline of approximately 46.8%[35] - Cash flow from financing activities generated a net inflow of ¥298.52 million, an increase from ¥191.32 million in the previous year, showing a growth of approximately 55.9%[36] - The total cash outflow from operating activities was ¥391.01 million, slightly higher than ¥383.09 million in the previous year, indicating a marginal increase of about 2.4%[35] Shareholder Information - The total number of shareholders reached 31,881 at the end of the reporting period[10] - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 25.35% of the shares, with 340,060,867 shares pledged[10] Expenses - Management expenses rose by 32.13% to ¥16.72 million from ¥12.65 million, attributed to increased labor costs[13] - Financial expenses increased by 41.86% to ¥22.69 million from ¥15.99 million, due to higher loans from financial institutions[13] - Asset impairment losses surged by 175.72% to ¥116.64 million from ¥42.31 million, driven by increased dismantling volume and finished goods[13] Government Support and Other Income - The company received government subsidies amounting to CNY 1,831,118.59 related to its normal business operations[6] - Non-recurring gains and losses totaled CNY 5,433,827.82 for the reporting period[7] Equity and Share Issuance - The company completed a non-public offering of up to 69,749,006 new shares, increasing total shares from 1,341,587,523 to 1,411,336,529[16] - The company's equity attributable to shareholders was CNY 1,062,942,319.84, an increase from CNY 1,025,674,401.42[24]

Financial Performance - The company reported a net profit of -35,912,065.66 CNY for the year 2016, with a total distributable profit of -1,065,390,168.24 CNY for shareholders [2]. - The company proposed not to distribute profits for the year 2016 due to the negative net profit [2]. - The company's operating revenue for 2016 was approximately RMB 1.42 billion, a decrease of 11.43% compared to RMB 1.61 billion in 2015 [27]. - The net profit attributable to shareholders for 2016 was approximately RMB 149.56 million, down 14.61% from RMB 175.15 million in 2015 [27]. - Basic earnings per share for 2016 were RMB 0.1115, a decrease of 35.62% from RMB 0.1732 in 2015 [28]. - The weighted average return on equity for 2016 was 15.73%, down from 22.22% in 2015, reflecting a decrease of 6.49 percentage points [28]. - The company reported a total income of 11,213,342.47, with a significant decrease compared to the previous year [35]. - The total profit for the year was 195 million RMB, with a net profit attributable to the parent company of 154 million RMB [44]. - The company achieved an operating revenue of 1.42 billion RMB in 2016, a year-on-year decrease of 11.43% [46]. - The company reported a net profit for 2016 of 153.85 million RMB, with no dividends declared [88]. Cash Flow and Assets - The cash flow from operating activities showed a significant decline, with a net outflow of approximately RMB 357.71 million in 2016, compared to a positive inflow of RMB 68.60 million in 2015, representing a decrease of 621.42% [27]. - The company reported a net cash flow from operating activities of -357,709,623.49 RMB, a significant decrease compared to the previous year's positive cash flow [48]. - The net cash flow from investing activities was -43,412,628.81 yuan, down 47,920,331.92 yuan year-on-year, due to increased investments in technology upgrades and equity purchases [58]. - The net cash flow from financing activities increased to 440,877,456.40 yuan, a rise of 477,672,374.73 yuan compared to the previous year, attributed to the securitization of subsidy receivables [58]. - The total assets of the company increased by 32.10% year-on-year, reaching approximately RMB 3.22 billion at the end of 2016, compared to RMB 2.44 billion at the end of 2015 [27]. - The company's total assets reached 3.22 billion RMB, an increase of 782 million RMB compared to the beginning of the year [44]. - The total liabilities increased to ¥2,136,135,598.52 from ¥1,509,668,361.13, reflecting a growth of about 42% [166]. - The company's total current assets increased to CNY 2,536,937,449.56 from CNY 1,813,208,467.60, representing a growth of approximately 40% year-over-year [165]. Strategic Initiatives - The company planned a non-public offering of shares to raise up to 1,300,000,000 CNY, with a share price of 6.63 CNY per share [5]. - The non-public offering aimed to issue no more than 196,078,431 shares, all to be subscribed in cash [5]. - The company received approval from the China Securities Regulatory Commission (CSRC) for the non-public offering on March 24, 2017, allowing the issuance of up to 69,749,006 new shares [8]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and profitability [1]. - The company is actively pursuing strategic acquisitions to strengthen its market position and diversify its service offerings [1]. - The company aims to extend its industrial chain and enhance the value of dismantled products through refined sorting and deep processing [40]. - The company plans to achieve an annual operating income of RMB 1.964 billion in 2017, with a net profit attributable to the parent company from the acquired assets of no less than RMB 205 million [82]. Business Operations - The company's main business is the recycling and dismantling of waste electrical and electronic products, with 8 subsidiaries qualified for government subsidies [37]. - The company has established a diversified recovery network to ensure resource recovery capabilities, with numerous recovery points built around its dismantling enterprises [40]. - The company has invested in 8 dismantling enterprises across various provinces, covering major economic regions in China [39]. - The company reported a significant increase in government subsidies related to normal business operations, amounting to approximately RMB 13.90 million in 2016, compared to RMB 9.50 million in 2015 [33]. - The company is engaged in the recycling and processing of waste electrical and electronic products, including televisions, refrigerators, washing machines, air conditioners, and computers [74]. Risks and Challenges - The company faced risks related to its future development, as detailed in the report [4]. - The company faced challenges in 2016 due to a prolonged cash flow cycle for the recycling fund and increased financial costs, leading to a decline in overall revenue [101]. - The company faces risks related to policy changes, commodity price fluctuations, rising labor costs, and increasing acquisition prices for waste electrical and electronic products [83][84]. - The company experienced a net increase in equity of 390,003,387 RMB during the reporting period [188]. Corporate Governance - The company has committed to avoiding any competition with its subsidiaries and ensuring compliance with relevant laws and regulations [92]. - The company has committed to maintaining the independence of Qinling Cement in terms of assets, personnel, finance, and operations, adhering to the regulations set by the China Securities Regulatory Commission [95]. - The company has a strong leadership team with diverse backgrounds in finance, law, and academia, contributing to strategic decision-making [144]. - The company’s governance structure is compliant with relevant laws and regulations, ensuring effective checks and balances [153]. Shareholder Information - The total number of ordinary shares before the change was 1,341,587,523, with a decrease of 31,182,686 shares, resulting in a total of 1,341,587,523 shares after the change [119]. - The top ten shareholders held a total of 680,787,523 shares, with China Recycled Resources Development Co., Ltd. holding 340,060,867 shares, accounting for 25.35% [126]. - The company has seen a decrease in the number of shareholders, indicating potential consolidation or changes in investor interest [124]. - The controlling shareholder is China Recycled Resources Development Co., Ltd., with the ultimate controller being the All-China Federation of Supply and Marketing Cooperatives [135]. Employee and Management - The number of employees in the parent company is 53, while the number of employees in major subsidiaries is 1,811, totaling 1,864 employees [148]. - The company has not established a long-term incentive mechanism for senior management as of the report date [157]. - The company plans to conduct targeted training programs to enhance employee skills and foster a positive corporate culture [150].

Financial Performance - Net profit attributable to shareholders decreased by 45.76% to CNY 63,445,642.31 for the first nine months compared to the same period last year[7] - Operating revenue for the first nine months was CNY 886,073,806.66, a decrease of 23.06% year-on-year[7] - The weighted average return on equity dropped by 54.67 percentage points to 6.99%[8] - Basic earnings per share fell by 58.33% to CNY 0.05[8] - The net profit after deducting non-recurring gains and losses was CNY 56,431,094.39, down 48.38% year-on-year[7] - The net loss for the period increased to CNY 1,065,366,244.96, compared to a loss of CNY 1,029,478,102.58 in the previous period, indicating a worsening financial position[44] - The total comprehensive income for Q3 2016 was ¥39.48 million, down from ¥66.55 million in the previous year, indicating a decline of 40.7%[46] - The operating loss for the first nine months of 2016 was approximately ¥35.89 million, compared to a profit of ¥14.80 million in the same period last year[48] Cash Flow - Net cash flow from operating activities was negative at CNY -615,988,054.59, a decline of 118.42% compared to the previous year[7] - The net cash flow from operating activities was -615,988,054.59 RMB, compared to -282,015,547.37 RMB in the previous period, indicating a decline in operational performance[51] - Cash flow from operating activities for the first nine months of 2016 was ¥375.17 million, down from ¥586.62 million in the same period last year, a decrease of 36%[50] - Cash inflow from operating activities totaled 497,806,231.59 RMB, while cash outflow was 1,113,794,286.18 RMB, leading to a negative cash flow from operations[51] - The total cash and cash equivalents at the end of the period amounted to 150,124,487.00 RMB, up from 53,474,925.08 RMB in the previous period, indicating improved liquidity[55] Assets and Liabilities - Total assets increased by 39.15% to CNY 3,390,959,070.65 compared to the end of the previous year[7] - The company's total liabilities reached CNY 2,397,232,010.11, compared to CNY 1,509,668,361.13 at the beginning of the year, marking an increase of about 58.7%[40] - Long-term borrowings increased by 92.48% to 384.95 million yuan due to additional loans from financial institutions[16] - Other payables surged by 273.36% to 182.82 million yuan, reflecting increased borrowings from related parties[15] - The company's total equity decreased to CNY 1,816,568,394.02 from CNY 1,852,456,536.40, reflecting a decline of about 1.9%[44] Shareholder Information - The total number of shareholders reached 32,056 at the end of the reporting period[12] - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 25.35% of the shares, with 340,060,867 shares pledged[12] Government Support and Subsidies - The company received government subsidies amounting to CNY 8,842,983.11 during the first nine months[8] Inventory and Receivables - Accounts receivable rose by 42.61% to 1,767.12 million yuan, primarily due to an increase in receivables from fund subsidies[15] - Inventory increased by 45.53% to 571.52 million yuan, attributed to higher raw materials and finished goods[15] Future Plans and Commitments - The company plans to raise up to 1.3 billion yuan through a non-public offering of shares at a price of 6.63 yuan per share, aimed at supplementing working capital[18] - The company has committed to a cash dividend policy that will continue post-restructuring, as approved in the revised articles of association[33] - The company has undertaken to manage and reduce related party transactions to avoid conflicts of interest with Qinling Cement[25] - The company has committed to ensuring that no financial assistance or compensation is provided to stock subscription parties in violation of regulations[36]

Fundraising and Stock Issuance - The company plans to issue up to 196,078,431 shares at a price of 6.63 RMB per share, aiming to raise a total of no more than 1.3 billion RMB for working capital[3]. - The company adjusted the number of shares to be issued to a maximum of 69,749,006 shares due to recent market changes and internal assessments[5]. - The company plans to raise funds through a non-public offering of shares, aiming to raise up to 1.3 billion RMB to supplement working capital[33]. - The company’s non-public stock issuance is still pending approval from the CSRC, with uncertainty regarding the outcome[6]. - The company’s non-public offering application is still pending approval from the China Securities Regulatory Commission, with uncertainty regarding the outcome[36]. - The company revised its non-public offering plan in response to regulatory feedback and market conditions[35]. Financial Performance - The company's operating revenue for the current period is 568,297,442.13 RMB, a decrease of 26.88% compared to the same period last year[30]. - The net profit attributable to shareholders of the listed company is 79,633,182.07 RMB, down 67.88% year-on-year[20]. - The basic earnings per share for the current period is 0.02 RMB, representing an 80.00% decrease from 0.10 RMB in the previous year[22]. - The company’s net cash flow from operating activities is -306,866,806.77 RMB, indicating a significant decline compared to -6,783,343.84 RMB in the previous period[30]. - The company has reported a significant amount of related party transactions, with sales to Sichuan Zhongzaisheng Environmental Technology Service Co., Ltd. amounting to 12,438,944.45 RMB, accounting for 5.70% of similar transactions[56]. - The total amount of related party procurement transactions reached 38,275,782.90 RMB from Sichuan Zhongzaisheng Environmental Technology Service Co., Ltd., representing 8.44% of similar transactions[56]. - The company reported a net loss of 20,837,558 RMB for the first half of 2016, indicating a challenging financial environment[115]. Assets and Liabilities - The total assets at the end of the reporting period amount to 2,858,489,859.27 RMB, an increase of 17.30% compared to the previous year[21]. - The company’s total liabilities are 19.04 billion RMB, which is an increase of 3.95 billion RMB from the beginning of the period[29]. - The asset-liability ratio at the end of the reporting period is 66.62%, an increase of 4.67 percentage points compared to the beginning of the period[29]. - The company’s total current assets increased to 2,240,610,230.48 RMB from 1,813,208,467.60 RMB, reflecting a growth of approximately 23.5%[92]. - The company reported a total of 261,200.00 RMB in cash received from sales of goods and services[108]. Operational Changes and Business Focus - The company has not experienced any changes in its registered address or major operational changes during the reporting period[14]. - The company has undergone changes in its business scope, including the recovery and processing of waste electrical and electronic products, as well as the trading of metal materials and rubber[49]. - The company has experienced a decline in the dismantling volume of waste electrical and electronic products due to market competition and falling commodity prices[28]. - The company is focusing on optimizing the recycling and dismantling structure of waste electrical and electronic products to enhance product value[28]. Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and senior management[3]. - The company has confirmed that there are no violations in decision-making procedures regarding external guarantees[3]. - The company has established a governance structure that aligns with the requirements of the Company Law and the China Securities Regulatory Commission[71]. - The company has not faced any penalties or required rectifications from regulatory authorities during the reporting period[71]. - The company has committed to maintaining the independence of Qinling Cement and ensuring compliance with relevant regulations regarding independence and fund usage[66]. Shareholder Information - The total number of shareholders at the end of the reporting period was 34,433[77]. - The top ten shareholders hold a total of 340,060,867 shares, representing 25.35% of the company, with 240,060,867 shares pledged[79]. - The second-largest shareholder, Zhongzai Resource Recycling Development Co., Ltd., holds 108,273,600 shares, accounting for 8.07%[79]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, in accordance with the accounting standards issued by the Ministry of Finance[129]. - The group has no significant doubts regarding its ability to continue as a going concern for the next 12 months from the reporting date[130]. - The company has not made any significant changes to its accounting policies or estimates during the reporting period[188]. - The company has a deferred tax asset and liability based on the temporary differences between the tax bases of assets and liabilities and their carrying amounts, with a focus on ensuring recoverability of these assets[185]. Cash Flow and Investments - Cash flow from operating activities showed a net outflow of CNY -306,866,806.77, compared to CNY -6,783,343.84 in the previous period[105]. - Cash inflow from financing activities was CNY 1,060,175,243.30, an increase from CNY 608,815,310.99 in the previous period[105]. - The company received 299,950,000.00 RMB from borrowings during the financing activities, contributing significantly to cash inflows[108]. - The total cash inflow from investment activities was 14,834,722.60 RMB, while cash outflow was 652,730.59 RMB, leading to a net cash flow of -652,730.59 RMB[108].