Financial Performance - The company reported a net profit of CNY 17,588,221.77 for the year 2015, with a total accumulated undistributed profit of CNY -1,047,066,324.35, leading to a distributable profit of CNY -1,029,478,102.58, resulting in no profit distribution proposed for 2015 [5]. - The company's operating revenue for 2015 was CNY 1,607,137,354.50, representing a year-on-year increase of 7.19% compared to CNY 1,499,354,682.01 in 2014 [23]. - The net profit attributable to shareholders for 2015 was CNY 175,148,368.56, a 4.00% increase from CNY 168,413,165.34 in 2014 [24]. - The net cash flow from operating activities decreased by 61.68% to CNY 68,602,936.34 from CNY 179,039,464.00 in 2014 [24]. - The total assets at the end of 2015 were CNY 2,436,843,234.58, reflecting a 12.09% increase from CNY 2,174,077,880.19 in 2014 [24]. - The company's net assets attributable to shareholders increased by 25.13% to CNY 876,118,666.62 from CNY 700,168,914.85 in 2014 [24]. - Basic earnings per share for 2015 were CNY 0.1732, down 36.51% from CNY 0.2728 in 2014 [25]. - The weighted average return on net assets for 2015 was 22.22%, a decrease of 6.89 percentage points from 29.11% in 2014 [25]. Share Issuance and Capital Structure - The company plans to issue up to 196,078,431 shares at a price of CNY 6.63 per share, aiming to raise a total of no more than CNY 1,300,000,000, which will be used entirely to supplement working capital [8]. - The company successfully issued 680,787,523 shares, increasing its total share capital from 660,800,000 to 1,341,587,523 shares, marking a strategic transition to a waste recycling business [44]. - The company reported a total of 1,341,587,523 shares outstanding after the recent issuance of 680,787,523 new shares, representing a significant increase in share capital [103]. - The total number of ordinary shares increased by 680,787,523 shares during the reporting period, resulting in a total of 1,341,587,523 shares by the end of the period [112]. - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 340,060,867 shares, representing 25.35% of the total shares, with an increase of 340,060,867 shares during the reporting period [115]. Asset Restructuring - The company completed the transfer of 100% equity stakes in several subsidiaries, including those in Luoyang, Sichuan, Tangshan, Jiangxi, Heilongjiang, Qichun, Guangdong, and 56% in Shandong, as part of a major asset restructuring approved by the China Securities Regulatory Commission [10]. - The company’s major asset restructuring was conditionally approved by the China Securities Regulatory Commission on February 16, 2015, and officially approved on April 1, 2015 [10]. - The company underwent a significant asset restructuring, shifting its main business from cement production to the recycling and dismantling of waste electrical and electronic products [33]. - The company completed a major asset restructuring, with the controlling shareholder changing to Zhongzaisheng, ensuring compliance with corporate governance standards [86]. Compliance and Governance - The company received a standard unqualified audit report from Zhongtianyun Accounting Firm for the fiscal year 2015, ensuring the accuracy and completeness of the financial report [4]. - The company has no non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees [7]. - The company has established a legal obligation to protect the rights and interests of the listed company and its investors [83]. - The company has committed to maintaining the independence of Qinling Cement in terms of assets, personnel, finance, and operations [85]. Operational Changes and Strategy - The company is focused on enhancing product value through refined sorting and deep processing of dismantled materials, improving profitability [40]. - The company has established a comprehensive recovery network across major economic regions in China, enhancing its competitive position in resource recovery [39]. - The company plans to enhance its resource recovery capabilities by expanding its existing recovery network and optimizing processing capacity in response to the increasing types of waste electrical and electronic products [71]. - The company intends to improve its deep processing technology to increase the added value of products, focusing on refining the classification and processing of recycled materials [72]. Risks and Challenges - The company faces risks related to policy changes, which could impact its operations and revenue if environmental regulations or subsidy policies are altered [73]. - The company is exposed to risks from significant fluctuations in the prices of raw materials such as plastics, copper, aluminum, and steel, which could affect its profitability [74]. Employee and Management - The total number of employees is 1,740, with 1,700 in subsidiaries and 40 in the parent company [141]. - The remuneration for directors, supervisors, and senior management totaled 174.53 million [137]. - The company has established a comprehensive training program to enhance employee skills and promote a positive corporate culture [143]. Future Outlook - Future guidance suggests a continued upward trend in revenue, with expectations of reaching new market segments [133]. - The company plans to continue investing in new product development and technology to enhance market competitiveness [186]. - The management team highlighted a 174.53% increase in net profit, indicating strong operational efficiency and cost management [132].

Financial Performance - Operating revenue decreased by 38.20% to CNY 224,957,924.14 compared to the same period last year[7] - Net profit attributable to shareholders decreased by 99.17% to CNY 227,879.05 compared to the same period last year[7] - The weighted average return on equity dropped by 99.22 percentage points to 0.03%[7] - Basic and diluted earnings per share fell by 99.51% to CNY 0.0002[7] - The company reported a net loss in retained earnings of CNY -1,037,867,705.60, compared to CNY -1,029,478,102.58, indicating a worsening of 0.8%[40] - Net profit for Q1 2016 was CNY 396,421.34, compared to CNY 28,757,123.36 in the same period last year, indicating a significant decline[43] - Total operating revenue for Q1 2016 was CNY 224,957,924.14, a decrease of 38.2% compared to CNY 363,986,511.60 in the same period last year[41] - Total operating costs for Q1 2016 were CNY 224,585,121.85, a decrease from CNY 334,590,609.24 in the previous year, representing a reduction of approximately 33%[42] Assets and Liabilities - Total assets increased by 6.87% to CNY 2,604,369,978.18 compared to the end of the previous year[7] - Current liabilities rose to CNY 1,294,751,345.35, up from CNY 1,227,571,023.12, indicating an increase of 5.5%[36] - Non-current liabilities increased to CNY 382,047,338.04 from CNY 282,097,338.01, representing a significant rise of 35.4%[36] - The company's total liabilities reached CNY 1,676,798,683.39, compared to CNY 1,509,668,361.13, marking an increase of 11.1%[36] - Owner's equity totaled CNY 927,571,294.79, slightly up from CNY 927,174,873.45, showing a marginal increase of 0.4%[36] - The company has a total of RMB 1,349.77 million in accounts receivable as of March 31, 2016, compared to RMB 1,239.15 million at the beginning of the year, indicating an increase of approximately 8.9%[34] - The total current assets amount to RMB 1,986.65 million, up from RMB 1,813.21 million at the beginning of the year, reflecting a growth of about 9.6%[34] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 171,187,999.77, an improvement from the previous year's outflow of CNY 183,514,182.08[7] - The net cash flow from operating activities improved by 7.2%, with a loss of CNY 17,118.80 million compared to CNY 18,351.42 million in the previous period, due to a significant reduction in cash payments for goods and services[15] - The company reported a net cash outflow from operating activities of CNY -171,187,999.77 for Q1 2016, an improvement from CNY -183,514,182.08 in the previous year[49] - Cash inflow from financing activities was CNY 620,436,594.74 in Q1 2016, up from CNY 434,770,685.60 in the same period last year, reflecting increased borrowing[49] - The cash flow from other financing activities amounted to 340,404,969.15 RMB[52] Shareholder Information - The total number of shareholders reached 38,243 at the end of the reporting period[13] - The largest shareholder, China Recycled Resources Development Co., Ltd., holds 25.35% of the shares, with 240,060,867 shares pledged[13] Government and Regulatory Matters - Government subsidies recognized in the current period amounted to CNY 2,299,369.37[9] - The company received a notice from the China Securities Regulatory Commission (CSRC) regarding the acceptance of its application for the non-public offering of shares, indicating progress in the fundraising process[16] - The company has committed to maintaining its independence and avoiding conflicts of interest with major shareholders, ensuring compliance with relevant regulations[18] Commitments and Agreements - The company has a commitment to ensure that any creditors who have not provided consent for debt transfer will have their claims managed by the seller, ensuring no liabilities are transferred without agreement[27] - The company has a rental agreement for its main production site, with commitments to ensure the property is not transferred without written consent[28] - The company has committed to maintaining its cash dividend policy following the completion of the major asset restructuring[30] - The company has a commitment to prevent non-operational occupation of funds by shareholders and related parties, ensuring compliance with corporate governance standards[31] Other Financial Metrics - The company reported a non-recurring loss of CNY 1,493,778.51 attributable to non-operating activities[7] - Asset impairment losses decreased by 66.3% to CNY 4,230.55 million from CNY 12,552.50 million, attributed to the same reduction in dismantling volume[15] - The company incurred financial expenses of CNY 5,443,512.98 in Q1 2016, compared to a negative expense of CNY -6,105.57 in the previous year, indicating a shift in financial strategy[45] - The company reported a total profit of CNY -8,389,603.02 for Q1 2016, slightly improved from CNY -9,013,311.04 in the previous year[46]

2015 年第三季度报告 1.4 本公司第三季度报告未经审计。 公司代码：600217 公司简称：*ST 秦岭 陕西秦岭水泥(集团)股份有限公司 2015 年第三季度报告 1 / 25 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司主要财务数据和股东变化 | 3 | | 三、 | 重要事项 | 8 | | 四、 | 附录 | 12 | 2015 年第三季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员应当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。 1.3 公司负责人管爱国、主管会计工作负责人曹 俊 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。 二、 公司主要财务数据和股东变化 2.1 主要财务数据 3 / 25 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 2,680,988,961.71 2,174,077,880. ...

Financial Performance - The company's operating revenue for the first half of 2015 was approximately ¥777.25 million, representing a 17.87% increase compared to ¥659.44 million in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2015 was approximately ¥79.63 million, a decrease of 9.78% from ¥88.26 million in the previous year[21]. - The net cash flow from operating activities was negative at approximately -¥6.78 million, a significant decline of 107.38% compared to ¥91.90 million in the same period last year[21]. - The total assets at the end of the reporting period were approximately ¥2.32 billion, an increase of 6.72% from ¥2.17 billion at the end of the previous year[21]. - The net assets attributable to shareholders at the end of the reporting period were approximately ¥780.60 million, reflecting an increase of 11.49% from ¥700.17 million at the end of the previous year[21]. - The company reported a basic earnings per share of CNY 0.10, down 23.08% from CNY 0.13 in the same period last year[22]. - The company achieved a net profit attributable to shareholders of CNY 79.63 million, reflecting a decrease in profitability due to increased market competition and declining commodity prices[30]. - The weighted average return on equity decreased to 10.76%, down 6.29 percentage points from 17.05% in the previous year[22]. - The company reported a net profit of 1,610.80 million RMB from its Heilongjiang subsidiary, which is 100% owned[49]. - The Jiangxi subsidiary generated a net profit of 1,218.59 million RMB, also fully owned by the company[49]. - The Sichuan subsidiary reported a net profit of 1,087.72 million RMB, maintaining full ownership[49]. - The Luoyang subsidiary achieved a net profit of 1,070.60 million RMB, fully owned by the company[49]. - The Guangdong subsidiary recorded a net profit of 1,066.18 million RMB, with 100% ownership[49]. - The company reported a comprehensive income of ¥79,633,182.07 for the period[122]. Asset Management - The total liabilities at the end of the reporting period were CNY 1.50 billion, which increased by CNY 62 million compared to the beginning of the period[31]. - The asset-liability ratio at the end of the reporting period was 64.48%, a decrease of 1.50% from the beginning of the period[31]. - The company’s total liabilities were not specified, but the current liabilities included accounts payable of CNY 114,351,311.90, down from CNY 171,192,937.13, a decrease of about 33.2%[102]. - The company held non-current assets totaling CNY 602,987,224.56, slightly down from CNY 607,875,565.43, indicating a decrease of about 0.9%[102]. - The total equity attributable to the parent company at the end of the period was ¥791,803,387.00, reflecting a decrease of 32.9% from the previous period[122]. - The total owner's equity at the end of the period was 1,872,967,071.46 CNY, compared to 660,800,000 CNY at the beginning of the year, reflecting a substantial increase[128]. Shareholder and Corporate Governance - The company completed the registration of 680,787,523 new shares issued for asset acquisition on May 8, 2015[4]. - The company received approval from the China Securities Regulatory Commission for a major asset restructuring on April 1, 2015[4]. - The company announced the termination of its major asset restructuring plan on August 1, 2015, due to failure to reach an agreement with counterparties[4]. - The company’s stock was suspended from trading starting June 11, 2015, due to significant matters related to the controlling shareholder[4]. - The company’s stock resumed trading on August 5, 2015, after the termination of the restructuring plan[4]. - The company has committed to avoiding any competitive activities with Qinling Cement and its subsidiaries, ensuring no harm to the interests of minority shareholders[65]. - The company guarantees that it will not misuse its position to harm the interests of Qinling Cement and its minority shareholders through related transactions[67]. - The company’s shareholders include a significant portion of state-owned and domestic private entities, with 50.74% of shares held under limited sale conditions[76]. - The company has committed to not transferring newly issued shares for 36 months following their listing[71]. - The company appointed a new financial director, Cao Jun, to meet operational needs[96]. - The company underwent a board restructuring with several new appointments, including Guan Aiguo as chairman and Liu Weijie as general manager[96]. Business Operations and Strategy - The company has transitioned its main business from cement production to the recycling and dismantling of waste electrical and electronic products[29]. - The company has established a recovery network covering major economic regions in China, enhancing resource recovery capabilities and reducing logistics costs[44]. - The company has achieved a high compliance dismantling rate, exceeding the industry average, due to strong quality control capabilities[45]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[128]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to strengthen its market position[128]. - The overall financial outlook remains positive, with expectations for continued growth in revenue and user engagement in the upcoming quarters[128]. Cash Flow and Investment - The company’s cash flow from operating activities showed a net outflow of CNY 6.78 million, a decline of 107.38% compared to the previous year[34]. - The company reported an investment cash flow net loss of CNY 2,132,328.12, compared to a loss of CNY 71,372,574.58 in the previous year[114]. - The financing cash flow for the first half of 2015 was positive CNY 25,741,763.97, an improvement from a negative cash flow of CNY 106,932,245.73 in the same period last year[114]. - The company has invested CNY 1,872,165,688.25 in long-term equity investments, a significant increase from CNY 10,000,000.00 at the beginning of the year[105]. - The company has invested 7,418,200 RMB in Mengjin Minfeng Village Bank, holding a 5.27% stake, with a reportable profit of 1,582,000 RMB during the reporting period[47]. Related Party Transactions - Total related party transactions amounted to 65,770,432.25 RMB, with no impact on the company's independence[61]. - The company provided funds to related parties totaling RMB 541,785,806.71, with a beginning balance of RMB 285,605,356.39 and an increase of RMB 256,180,450.32 during the reporting period[64]. - The company has no outstanding balances for funds provided to controlling shareholders and subsidiaries, indicating a clean slate in this regard[64]. - The company has partially settled its related party debts, indicating a proactive approach to managing its financial obligations[64]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the enterprise accounting standards, reflecting the company's financial status and operating results accurately[140]. - The company's accounting period runs from January 1 to December 31 each year[141]. - The group measures assets and liabilities acquired in a business combination under common control at the carrying amount in the consolidated financial statements of the ultimate controlling party on the acquisition date[144]. - The group includes all controlled subsidiaries in the consolidated financial statements, adjusting for any inconsistencies in accounting policies or periods[145]. - The company recognizes investment income based on the proportion of cash dividends or profits declared by the investee[168]. - The company recognizes losses from the disposal of long-term equity investments based on the difference between the book value and the actual proceeds received[169].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%8%8%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This chapter confirms the board, supervisory board, and senior management guarantee the quarterly report's accuracy and completeness, noting it is unaudited - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[8](index=8&type=chunk) - All company directors attended the board meeting to review the quarterly report[8](index=8&type=chunk) - Company head Yu Jiuzhou, chief accountant Li Ning, and head of accounting Sun Beining guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[8](index=8&type=chunk) - This company's first quarter report is unaudited[8](index=8&type=chunk) [Company's Major Financial Data and Shareholder Changes](index=3&type=section&id=%E4%BA%8C%E3%8%8%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) This chapter summarizes key financial data, including assets, liabilities, net profit, and cash flow, details non-recurring items, and lists top shareholders [Major Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) Total assets and net assets decreased, operating cash flow significantly declined, revenue fell, net profit remained negative but losses narrowed, and ROE was abnormal Overview of Major Financial Data for Q1 2015 | Indicator | End of Current Period/Year-to-Date (RMB) | End of Prior Year/Prior Year-to-Date (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,999,012,435.28 | 2,053,814,952.62 | -2.67 | | Net Assets attributable to shareholders | -268,894,627.40 | -209,804,248.86 | Not Applicable | | Net cash flow from operating activities | 4,160,320.86 | 39,621,146.39 | -89.50 | | Operating Revenue | 91,651,469.23 | 125,097,963.13 | -26.74 | | Net profit attributable to shareholders | -59,090,378.54 | -84,693,952.85 | Not Applicable | | Net profit attributable to shareholders excluding non-recurring items | -59,201,045.19 | -70,640,480.18 | Not Applicable | | Weighted average return on net assets (%) | 24.69 | 4,574.05 | Decreased by 4549.36 percentage points | | Basic earnings per share (RMB/share) | -0.0894 | -0.1282 | Not Applicable | | Diluted earnings per share (RMB/share) | -0.0894 | -0.1282 | Not Applicable | - The company's net assets and current period net profit are both negative, leading to an abnormal weighted average return on net assets ratio[6](index=6&type=chunk) Non-recurring Gains and Losses | Item | Current Period Amount (RMB) | | :--- | :--- | | Government subsidies included in current profit/loss | 132,713.25 | | Other non-operating income and expenses | -22,046.60 | | Total | 110,666.65 | [Total Shareholders, Top Ten Shareholders, and Top Ten Unrestricted Shareholders at Period End](index=4&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) At period end, the company had **29,820** shareholders, with Tangshan Jidong Cement Co., Ltd. holding the largest stake at **28.05%**, all as unrestricted shares - Total number of shareholders: **29,820** households[11](index=11&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name (Full Name) | Shares Held at Period End (Shares) | Proportion (%) | Number of Restricted Shares Held | Pledge or Freeze Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Tangshan Jidong Cement Co., Ltd. | 185,380,000 | 28.05 | 0 | None | Domestic Non-State-Owned Legal Person | | Shaanxi Yaoxian Cement Plant | 28,859,093 | 4.37 | 0 | None | State-Owned Legal Person | | Shaanxi Yaoxian Cement Production Technology Service Co. | 16,343,003 | 2.47 | 0 | None | State-Owned Legal Person | | Dacheng Value Growth Securities Investment Fund | 12,961,593 | 1.96 | 0 | None | Other | | Bank of China - Harvest Service Value-Added Industry Securities Investment Fund | 11,360,705 | 1.72 | 0 | None | Other | | National Social Security Fund 118 Portfolio | 9,517,696 | 1.44 | 0 | None | Other | | National Social Security Fund 414 Portfolio | 7,999,774 | 1.21 | 0 | None | Other | | Bank of China - Harvest Stable Open-Ended Securities Investment Fund | 7,690,535 | 1.16 | 0 | None | Other | | Generali China Life Insurance Co., Ltd. - Traditional Insurance Products - Stock Account | 6,038,167 | 0.91 | 0 | None | Other | | National Social Security Fund 115 Portfolio | 5,999,824 | 0.91 | 0 | None | Other | - Except for Shaanxi Yaoxian Cement Production Technology Service Co., a state-owned enterprise funded by Shaanxi Yaoxian Cement Plant, the company cannot verify if other shareholders have an associated relationship or are acting in concert as defined by the 'Measures for the Administration of the Takeover of Listed Companies'[12](index=12&type=chunk) [Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders at Period End](index=5&type=section&id=2.3%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company has no preferred shareholders, thus this disclosure is not applicable - Disclosure of preferred shareholder information is not applicable[12](index=12&type=chunk) [Significant Events](index=5&type=section&id=%E4%B8%89%E3%8%8%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter details significant changes in financial statements and indicators, explains major asset restructuring progress, and provides future performance warnings [Significant Changes and Reasons for Major Financial Statement Items and Indicators](index=5&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Consolidated balance sheet items saw significant shifts, with notes receivable decreasing and accounts receivable increasing; income statement showed major revenue and cost changes; operating cash flow declined, investing cash flow turned positive, and financing cash flow loss narrowed 3.1.1 Major Changes in Consolidated Balance Sheet Items at Period End vs. Beginning of Year | Item | Current Period Amount (Million RMB) | Beginning of Year Amount (Million RMB) | Change (%) | Primary Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 20.71 | 76.05 | -72.77 | Increase in endorsement payments of bank acceptance bills | | Accounts Receivable | 56.23 | 27.27 | 106.16 | Increase in cement turnover for high-quality customers | | Prepayments | 13.55 | 3.73 | 263.33 | Increase in prepaid engineering and material costs | | Other Current Assets | 0.86 | 4.98 | -82.65 | Beginning of year had input tax credit | | Taxes Payable | 2.69 | 1.92 | 40.06 | Increase in value-added tax payable | 3.1.2 Major Changes in Consolidated Income Statement Items vs. Prior Year | Item | Current Period Amount (Million RMB) | Prior Period Amount (Million RMB) | Change (%) | Primary Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 91.65 | 125.10 | -26.74 | Decrease in cement sales volume and price | | Operating Cost | 88.96 | 123.61 | -28.03 | Decrease in cement production and sales volume | | Operating Taxes and Surcharges | 0.09 | 0.06 | 52.68 | Increase in value-added tax payable | | Non-operating Income | 0.14 | 0.53 | -72.90 | Disposal of fixed assets in the same period | | Non-operating Expenses | 0.03 | 14.58 | -99.78 | Restructuring compensation incurred in the same period | 3.1.3 Changes in Consolidated Cash Flow Statement for the Current Period | Item | Current Period Amount (Million RMB) | Prior Period Amount (Million RMB) | Change Amount (Million RMB) | Primary Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | 4.16 | 39.62 | -35.46 | Decrease in cash received from sales of goods | | Net cash flow from investing activities | 0.09 | -0.44 | 0.52 | Decrease in investment subsidies received, decrease in cash paid for fixed asset purchases | | Net cash flow from financing activities | -5.94 | -24.76 | 18.83 | Increase in entrusted loan receipts | [Analysis of Progress, Impact, and Solutions for Significant Events](index=6&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company is progressing a major asset restructuring, acquiring e-waste recycling assets via share issuance, with Jidong Cement acquiring existing assets; the restructuring received conditional CSRC approval and is actively moving forward - The company is undergoing a major asset restructuring, proposing to issue shares to China Renewable Resources Development Co., Ltd. and other transaction parties to acquire assets related to the waste electrical and electronic product recycling and processing industry[16](index=16&type=chunk) - Controlling shareholder Jidong Cement will acquire all of the company's existing assets through debt assumption[16](index=16&type=chunk) - If the restructuring is successful, China Renewable Resources will become the company's largest shareholder, and China National Supply and Marketing Cooperative will become the actual controller[16](index=16&type=chunk) - The major asset restructuring plan was approved by the board of directors and disclosed on April 29, 2014, with trading resuming on April 30, 2014[17](index=17&type=chunk) - The restructuring draft was approved by the board of directors on September 3, 2014, and by the shareholders' meeting on September 22, 2014[19](index=19&type=chunk) - On February 16, 2015, the China Securities Regulatory Commission's M&A and Restructuring Committee conditionally approved the company's major asset restructuring[19](index=19&type=chunk) - On April 1, 2015, the company received the CSRC's approval (CSRC Permit [2015] No. 491)[19](index=19&type=chunk) - As of the report disclosure date, the company and relevant parties are actively advancing work related to the major asset restructuring[19](index=19&type=chunk) [Fulfillment of Commitments by the Company and Shareholders Holding 5% or More](index=7&type=section&id=3.3%20%E5%85%AC%E5%8F%B8%E5%8F%8A%E6%8C%81%E8%82%A1%205%25%E4%BB%A5%E4%B8%8A%E7%9A%84%E8%82%A1%E4%B8%9C%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company and shareholders holding 5% or more have no commitment matters to disclose - Disclosure of commitment fulfillment is not applicable[20](index=20&type=chunk) [Warning and Explanation for Potential Cumulative Net Loss or Significant Change from Year-Ago Period by Next Reporting Period End](index=7&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company anticipates reduced Q2 losses, but cumulative net profit for the first half will remain negative due to intense regional market competition and persistently low cement product prices - The company predicts that Q2 losses will decrease, but cumulative net profit for the first half is still expected to be a loss[20](index=20&type=chunk) - The primary reason is intense regional market competition leading to persistently low cement product prices[20](index=20&type=chunk) [Appendix](index=7&type=section&id=%E5%9B%9B%E3%8%8%81%20%E9%99%84%E5%BD%95) This appendix contains the company's detailed unaudited Q1 2015 financial statements, including consolidated and parent company balance sheets, income statements, and cash flow statements [Financial Statements](index=7&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's unaudited Q1 2015 consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=7&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Consolidated total assets decreased by **2.67%** to **1.999 billion RMB**, with parent company equity further deteriorating to **-268.89 million RMB** Consolidated Balance Sheet Key Data (As of March 31, 2015) | Item | Period-End Balance (RMB) | Year-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 1,999,012,435.28 | 2,053,814,952.62 | | Total Current Assets | 246,532,315.08 | 266,490,864.79 | | Total Non-Current Assets | 1,752,480,120.20 | 1,787,324,087.83 | | Total Liabilities | 2,271,076,581.93 | 2,266,758,445.22 | | Total Current Liabilities | 1,511,007,489.16 | 1,506,557,689.20 | | Total Non-Current Liabilities | 760,069,092.77 | 760,200,756.02 | | Total Equity attributable to parent company owners | -268,894,627.40 | -209,804,248.86 | | Total Owner's Equity | -272,064,146.65 | -212,943,492.60 | - Total assets at period end decreased by **2.67%** from the beginning of the year[6](index=6&type=chunk) - Total equity attributable to parent company owners is negative and further decreased from the beginning of the year[6](index=6&type=chunk)[25](index=25&type=chunk) [Parent Company Balance Sheet](index=10&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2015, parent company total assets significantly decreased to **16.06 million RMB**, with owner's equity further deteriorating to **-20.65 million RMB** Parent Company Balance Sheet Key Data (As of March 31, 2015) | Item | Period-End Balance (RMB) | Year-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 16,059,152.01 | 25,039,779.62 | | Total Current Assets | 6,059,152.01 | 15,039,779.62 | | Total Non-Current Assets | 10,000,000.00 | 10,000,000.00 | | Total Liabilities | 36,709,757.92 | 36,677,074.49 | | Total Owner's Equity | -20,650,605.91 | -11,637,294.87 | - Parent company total assets decreased by approximately **35.87%** from the beginning of the year[27](index=27&type=chunk) - Parent company owner's equity is negative, and losses have expanded[28](index=28&type=chunk) [Consolidated Income Statement](index=12&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2015, consolidated operating revenue was **91.65 million RMB**, a **26.74%** year-on-year decrease, with net losses narrowing despite negative profits Consolidated Income Statement Key Data (Jan-Mar 2015) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 91,651,469.23 | 125,097,963.13 | | Total Operating Costs | 150,992,512.53 | 195,758,357.35 | | Operating Profit | -59,231,320.70 | -70,660,394.22 | | Total Profit | -59,120,654.05 | -84,713,866.89 | | Net Profit | -59,120,654.05 | -84,713,866.89 | | Net profit attributable to parent company owners | -59,090,378.54 | -84,693,952.85 | | Basic earnings per share (RMB/share) | -0.09 | -0.13 | - Total operating revenue decreased by **26.74%** year-on-year[6](index=6&type=chunk)[30](index=30&type=chunk) - Net loss attributable to parent company owners narrowed year-on-year[6](index=6&type=chunk)[31](index=31&type=chunk) [Parent Company Income Statement](index=13&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2015, parent company operating revenue significantly decreased to **4.07 million RMB**, while net losses significantly narrowed to **-9.01 million RMB** Parent Company Income Statement Key Data (Jan-Mar 2015) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 4,074,898.09 | 124,597,963.12 | | Operating Cost | 4,074,898.09 | 122,715,305.41 | | Operating Profit | -253,254.07 | -70,189,117.22 | | Total Profit | -9,013,311.04 | -84,242,589.89 | | Net Profit | -9,013,311.04 | -84,242,589.89 | - Parent company operating revenue significantly decreased by approximately **96.73%** year-on-year[34](index=34&type=chunk) - Parent company net loss significantly narrowed year-on-year[34](index=34&type=chunk) [Consolidated Cash Flow Statement](index=15&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2015, operating cash flow significantly decreased by **89.50%** to **4.16 million RMB**, investing cash flow turned positive, and financing cash flow loss narrowed Consolidated Cash Flow Statement Key Data (Jan-Mar 2015) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net cash flow from operating activities | 4,160,320.86 | 39,621,146.39 | | Net cash flow from investing activities | 86,826.42 | -437,248.31 | | Net cash flow from financing activities | -5,936,865.28 | -24,763,875.00 | | Net increase in cash and cash equivalents | -1,689,718.00 | 14,420,023.08 | | Cash and cash equivalents at period end | 21,506,919.96 | 37,301,466.23 | - Net cash flow from operating activities decreased by **89.50%** year-on-year, primarily due to reduced cash received from sales of goods[6](index=6&type=chunk)[16](index=16&type=chunk)[36](index=36&type=chunk) - Net cash flow from investing activities turned from negative to positive[16](index=16&type=chunk)[37](index=37&type=chunk) - Net cash flow from financing activities loss narrowed year-on-year, primarily due to increased entrusted loan receipts[16](index=16&type=chunk)[37](index=37&type=chunk) [Parent Company Cash Flow Statement](index=16&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2015, parent company operating cash flow significantly decreased to **-5.42 million RMB**, investing cash flow turned positive, and financing cash flow was **0** Parent Company Cash Flow Statement Key Data (Jan-Mar 2015) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net cash flow from operating activities | -5,418,126.70 | 39,679,220.51 | | Net cash flow from investing activities | 109,722.60 | -437,248.31 | | Net cash flow from financing activities | 0 | -24,763,875.00 | | Net increase in cash and cash equivalents | -5,308,404.10 | 14,478,097.20 | | Cash and cash equivalents at period end | 188,922.71 | 37,092,762.88 | - Parent company net cash flow from operating activities turned from positive to negative, significantly decreasing year-on-year[39](index=39&type=chunk) - Parent company net cash flow from investing activities turned from negative to positive[40](index=40&type=chunk) - Parent company net cash flow from financing activities was **0** for the current period, compared to a negative value in the prior year[40](index=40&type=chunk)

Financial Performance - In 2014, the company reported a revenue of ¥674,237,586.19, a decrease of 15.46% compared to ¥797,539,698.41 in 2013[26] - The net profit attributable to shareholders was -¥250,299,605.99, worsening from -¥117,030,465.71 in the previous year[26] - The net assets attributable to shareholders decreased by 618.09% to -¥209,804,248.86 from ¥40,495,357.13 in 2013[27] - Total assets decreased by 7.99% to ¥2,053,814,952.62 from ¥2,232,083,219.87 in 2013[27] - The cash flow from operating activities was -¥20,145,358.20, an improvement from -¥73,785,861.66 in 2013[26] - The company's revenue for 2014 was 674.24 million yuan, a decrease of 15.46% from 797.54 million yuan in 2013[37] - The net loss attributable to shareholders for 2014 was 250.30 million yuan, an increase in loss of 13.33 million yuan compared to the previous year[34] - The company's total assets at the end of 2014 were 2.054 billion yuan, a decrease of 178 million yuan from the beginning of the year[35] - The company's total liabilities increased by 72 million yuan to 2.267 billion yuan, resulting in a debt-to-asset ratio of 110.37%, an increase of 12.05 percentage points[35] - The average selling price of cement decreased significantly due to market conditions and overcapacity, impacting revenue[38] Asset Restructuring - The company is undergoing a major asset restructuring, with plans to issue shares to acquire assets from China Recycled Resources Development Co., Ltd.[5] - The restructuring aims to make China Recycled the largest shareholder and change the actual controller to China Supply and Marketing Group[5] - The company has not received approval documents from the China Securities Regulatory Commission for the restructuring as of the report date[6] - The company is undergoing a major asset restructuring approved by the regulatory authority, which is expected to fundamentally change its main business and lead to profitability[47] - The major asset restructuring has been approved by the regulatory authority, which will fundamentally change the company's main business from cement production to recycling of waste electrical and electronic products[56] - The company signed a major asset sale agreement with Jidong Cement on April 29, 2014, as part of a significant asset restructuring plan[77] - A new wholly-owned subsidiary, Jidong Cement Tongchuan Co., Ltd., was established to facilitate the transfer of all existing assets and liabilities of the company[78] - The company plans to transfer all assets, including land use rights and production equipment, to the newly established subsidiary at a zero price on the asset delivery date of September 30, 2014[78] Market Conditions and Risks - The company is facing market risks due to overcapacity in the regional cement industry, which is expected to persist in the short term[60] - The company has a high fixed cost ratio compared to peers, contributing to an elevated debt-to-asset ratio[60] - The company holds a competitive advantage in the Shaanxi region due to its high-quality limestone resources and strong brand recognition[54] Management and Governance - The company has maintained a consistent management structure with no significant changes in leadership roles during the reporting period[119] - The company’s independent directors include Chen Guichun, Sun Hongmei, and Li Min, who have been serving since October 2009 and April 2013 respectively[119] - The company has a structured compensation decision process, with directors' remuneration determined by the shareholders' meeting and senior management's remuneration decided by the board[120] - The board of directors held 12 meetings during the year, with 5 in-person meetings and 6 conducted via communication methods[132] - The independent directors did not raise any objections to the board's proposals during the reporting period[133] - The company has revised its information disclosure management system in accordance with regulatory requirements[128] - The company has maintained a governance structure that complies with relevant laws and regulations, with no issues requiring regulatory rectification[128] Employee and Compensation - Total compensation for directors, supervisors, and senior management during the reporting period amounted to 1.6529 million yuan[115] - The compensation for the general manager, Li Haibao, was 230,000 yuan, while the chairman, Yu Jiuzhou, received 10,000 yuan[115] - The company has implemented a fair and competitive compensation policy, linking performance pay to company and employee performance[125] - The training plan includes a combination of internal and external training, with annual training plans established for employees[126] Financial Reporting and Compliance - The company has not faced any penalties or public reprimands from the China Securities Regulatory Commission or stock exchanges during the reporting period[85] - The company has adjusted its accounting policies according to the new accounting standards, resulting in a reduction of long-term equity investments by RMB 1,890,000 and an increase in available-for-sale financial assets by the same amount, with no impact on total assets or profits for 2013[89] - The company has made adjustments to employee compensation accounting, resulting in a reduction of payable employee compensation by RMB 65,830,739.39, with no impact on total assets or profits for 2013[90] - The company reported no significant errors in annual report disclosures during the reporting period[141] Shareholder Information - As of the end of the reporting period, the total number of shareholders was 39,578, an increase from 30,149 five trading days prior to the report[100] - The top ten shareholders held a total of 185,380,000 shares, accounting for 28.05% of the total shares, with the largest shareholder being Tangshan Jidong Cement Co., Ltd.[103] - The actual controller of the company is Jidong Development Group Co., Ltd., which has a registered capital of RMB 1,239,752,040 and engages in various business operations including cement production and sales[108] - The company has not issued any securities or undergone any changes in share capital during the reporting period[99] Current Financial Position - The company's total assets at the end of the period were 68,433,600.00 RMB, reflecting a stable asset base[177] - The company reported a total comprehensive income loss of -250,366,304.17 RMB for the current period[169] - The total equity attributable to shareholders was 118,676,300.00 RMB, reflecting a decrease from the previous period[169] - The company reported a decrease in retained earnings amounting to -114,001,821.52 RMB during the current period[179] - The total amount of owner contributions and reductions was 35,249,790.00 RMB, indicating an increase in shareholder equity[179]

Financial Performance - Net profit attributable to shareholders was CNY -188,058,429.85, a decline of 105.53% year-on-year[7] - Operating revenue for the period was CNY 521,312,443.83, down 8.04% from the same period last year[7] - The company reported a basic earnings per share of CNY -0.2846, a decrease of 105.49% year-on-year[7] - Revenue decreased by 8.04% to 52,131.24 million, attributed to lower selling prices of cement and clinker[18] - The company expects to incur an operating loss for the year, mainly due to underutilization of cement production capacity and persistently low market prices in the region[20] - The company reported a net loss of CNY 62,075,261.13 for Q3 2014, compared to a loss of CNY 35,393,659.97 in the same period last year[37] - Net profit for Q3 2014 was a loss of ¥60.59 million, compared to a loss of ¥34.49 million in Q3 2013, representing a year-over-year increase in losses of 75.73%[41] - The company reported a total comprehensive loss of ¥60.59 million for Q3 2014, compared to a loss of ¥34.49 million in Q3 2013[41] Assets and Liabilities - Total assets decreased by 6.64% to CNY 2,083,765,190.57 compared to the end of the previous year[7] - The total assets decreased from 2,232,083,219.87 to 2,083,765,190.57, indicating a reduction in overall asset value[28] - Total assets as of September 30, 2014, were CNY 2,093,201,424.65, down from CNY 2,238,703,009.11 at the beginning of the year[32] - Total liabilities increased to CNY 2,231,362,726.63 from CNY 2,190,853,787.58 at the start of the year[33] - The company's total equity was reported at -CNY 138,161,301.98 as of September 30, 2014, compared to CNY 47,849,221.53 at the beginning of the year[33] Cash Flow - Cash flow from operating activities improved by 125.49% to CNY 10,938,336.94 compared to the previous year[7] - The net cash flow from operating activities was 1,093.83 million, a significant increase of 5,384.33 million compared to the previous period, primarily due to reduced cash payments for goods and services[16] - Cash inflow from investment activities totaled CNY 7,884,672.00, compared to CNY 35,000.00 in the previous year, showing a substantial increase[46] - Cash outflow from investment activities was CNY 25,124,342.55, up from CNY 12,488,839.30 year-over-year, representing an increase of approximately 101.67%[46] - Cash inflow from financing activities was CNY 140,000,000.00, a decrease from CNY 723,000,000.00 in the previous year, reflecting a decline of about 80.66%[46] - Cash outflow from financing activities was CNY 126,678,050.33, down from CNY 639,412,044.50 year-over-year, indicating a decrease of approximately 80.24%[46] Shareholder Information - The number of shareholders reached 47,375, with the largest shareholder holding 28.05% of the shares[11] Borrowings and Receivables - Short-term borrowings increased by 180% to CNY 14,000,000.00 compared to the beginning of the year[14] - Accounts receivable rose by 423.57% to CNY 6,479.60 million, attributed to extended credit terms due to market competition[14] - Short-term borrowings rose significantly from 50,000,000.00 to 140,000,000.00, indicating increased leverage[28] - Accounts receivable rose significantly to CNY 64,519,413.36 from CNY 12,099,234.79, indicating a substantial increase in credit sales[31] Cash and Liquidity - Cash and cash equivalents increased to 49,172,059.21 from 29,462,343.15, showing improved liquidity[27] - Cash and cash equivalents at the end of Q3 2014 totaled ¥39.90 million, down from ¥66.77 million at the end of Q3 2013[44] - The ending cash and cash equivalents balance was CNY 28,555,306.56, a decrease from CNY 66,295,941.41 in the previous year[46] - The net increase in cash and cash equivalents for the period was CNY 5,940,640.88, compared to an increase of CNY 27,769,740.39 in the same period last year[46] Management and Expenses - Management expenses increased by 33.83% to 10,693.53 million, primarily due to higher repair costs and losses from downtime[18] Future Plans - The company plans a major asset restructuring, involving the sale of all existing assets to its controlling shareholder and the issuance of shares to acquire stakes in several companies[16]

Financial Performance - The company's operating revenue for the first half of 2014 was approximately RMB 350.86 million, a decrease of 4.09% compared to RMB 365.83 million in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2014 was a loss of approximately RMB 127.50 million, compared to a loss of RMB 57.06 million in the same period last year[16]. - The net cash flow from operating activities was approximately RMB 75.58 million, a significant improvement compared to a negative cash flow of RMB 4.78 million in the same period last year[16]. - The company's total assets as of June 30, 2014, were approximately RMB 2.17 billion, a decrease of 2.93% from RMB 2.23 billion at the end of the previous year[16]. - The company's net assets attributable to shareholders were approximately RMB -87.01 million, a decrease of 314.86% compared to RMB 40.50 million at the end of the previous year[16]. - The average selling price of products decreased year-on-year, leading to increased losses despite a reduction in production costs[19]. - The company reported an operating income of CNY 350.86 million, a decrease of CNY 14.98 million or 4.09% year-on-year[23]. - The net profit attributable to the parent company was a loss of CNY 127.50 million, an increase in loss of CNY 70.44 million year-on-year[20]. - The company reported a net loss attributable to shareholders of CNY -78,555,092.27, compared to a profit of CNY 47,849,221.53 in the previous period[66]. - The total comprehensive income for the first half of 2014 was a loss of CNY 127,502,139.33, compared to a loss of CNY 57,152,604.05 in the same period last year[69]. Asset Management - The company completed 35.15% of its annual revenue target of CNY 998.09 million during the reporting period[24]. - Significant changes in financial items included a 462.83% increase in accounts receivable due to extended credit terms amid intense market competition[21]. - The company produced 1.6484 million tons of cement, an increase of 242,800 tons or 17.27% year-on-year[20]. - Cement sales reached 1.6596 million tons, up 22.83% year-on-year, with a growth rate of 15.95%[20]. - The company's total assets as of June 30, 2014, were CNY 2,175,269,757.82, a slight decrease from CNY 2,238,703,009.11 at the beginning of the year[66]. - Total liabilities increased to CNY 2,253,824,850.09, compared to CNY 2,190,853,787.58 at the start of the year[66]. - The company's total equity attributable to shareholders was CNY -90,079,327.76, down from CNY 37,422,811.57 at the beginning of the year[66]. - The total fixed assets at the beginning of the period amounted to CNY 2,517,072,646.96, with a net value at the end of the period of CNY 1,568,774,008.69, reflecting a decrease in value[183]. Corporate Governance and Compliance - The company maintains a robust corporate governance structure in compliance with relevant laws and regulations[47]. - The company appointed Xinyong Zhonghe Accounting Firm as the auditor for the 2014 financial report and internal control, with a one-year term[44]. - There were no penalties or investigations involving the company or its major stakeholders during the reporting period[46]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[54]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period[58]. - The company has no preferred stock matters during the reporting period[56]. - The company reported no bankruptcy reorganization matters during the reporting period[39]. Strategic Initiatives - The company is actively promoting a major asset restructuring, which involves acquiring assets related to the waste electrical and electronic products recycling industry[6]. - The company is focusing on strengthening management, expanding market reach, and optimizing production resources to mitigate losses in a competitive market[19]. - The company plans to strengthen production management and expand market efforts in the second half of the year to improve operational efficiency[24]. - The company expects to report cumulative net losses by the end of the third quarter due to low market prices for cement[34]. Financial Reporting and Accounting Policies - The company operates under the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial status accurately[99]. - The company’s financial reporting period runs from January 1 to December 31 each year[100]. - There were no changes in accounting policies or estimates reported by the company[137]. - The group classifies financial assets into four categories: financial assets measured at fair value with changes recognized in profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets[108]. - The company recognizes revenue when the significant risks and rewards of ownership have transferred to the buyer, and the amount can be reliably measured[132]. Receivables and Bad Debt Provisions - The total accounts receivable amounted to CNY 184,433,261.77, with a bad debt provision of CNY 114,777,823.58, indicating a provision ratio of approximately 62.1%[151]. - The company has a significant amount of other receivables totaling CNY 12,968,248.64, with a bad debt provision of CNY 11,402,883.21, indicating a high provision ratio of approximately 87.9%[162]. - The provision for bad debts reflects the company's cautious approach to managing credit risk amid ongoing disputes and bankruptcies in its receivables portfolio[158]. - The total bad debt provision for accounts receivable is CNY 65,531,768.07, which is 48.47% of the total accounts receivable balance[151]. Inventory Management - The total inventory at the end of the period is CNY 108,876,226.30, with a provision for inventory depreciation of CNY 3,921,547.10[172]. - The company primarily categorizes its inventory into raw materials, work in progress, semi-finished products, turnover materials, and finished goods[114]. - Inventory is valued using the weighted average method, and the net realizable value is determined based on estimated selling prices minus estimated selling expenses and related taxes[115]. Fixed Assets and Impairment - The company recognizes impairment losses for fixed assets when they are disposed of or when expected economic benefits are not realizable[123]. - The accumulated depreciation for fixed assets increased by CNY 69,581,334.46 during the period, bringing the total accumulated depreciation to CNY 940,214,161.20[183]. - The company’s fixed asset impairment provision stands at CNY 9,926,735.47, reflecting an increase of CNY 183,442.58 during the period[199]. - The company has ongoing projects, including a 4500T/D clinker production line, which has reached 100% completion[192].

Financial Performance - Net profit attributable to shareholders was CNY -77,019,387.43, a significant decline from CNY -39,026,444.04 in the same period last year[9] - Operating revenue for the first quarter was CNY 125,097,963.13, down 4.94% year-on-year[9] - Basic earnings per share were CNY -0.1166, compared to CNY -0.0590 in the same period last year[9] - The company reported a weighted average return on net assets of -3,878.77%[9] - The net asset attributable to shareholders was CNY -36,524,030.30, a decrease of 190.19% compared to the previous year[9] - The company anticipates a reduction in losses for the second quarter, with an overall forecast of continued losses for the first half of the year[19] - Net profit for the current period is -¥77,039,279.50, compared to -¥39,079,676.42 in the previous period, indicating a significant increase in losses[31] - Basic and diluted earnings per share are both -0.1166, worsening from -0.0590 in the previous period[32] Assets and Liabilities - Total assets decreased by 2.95% to CNY 2,166,337,972.26 compared to the end of the previous year[9] - The company’s total liabilities amounted to CNY 2,205,954.44 million, with a slight increase compared to the previous period[24] - Total assets decreased to ¥2,173,928,378.61 from ¥2,238,703,009.11, reflecting a decline of approximately 2.9%[28] - Total liabilities increased slightly to ¥2,202,647,819.48 from ¥2,190,853,787.58, marking a rise of about 0.5%[28] - The company's total equity has turned negative, standing at -¥28,719,440.87, down from ¥47,849,221.53 in the previous period[28] Cash Flow - Cash flow from operating activities increased by 1,192.92% to CNY 39,621,146.39 compared to CNY 3,064,470.83 in the same period last year[9] - The net cash flow from operating activities significantly increased by CNY 3,655.66 million, attributed to higher cash received from sales[17] - Cash and cash equivalents increased by 56.48% to CNY 4,610.24 million, reflecting improved cash recovery from sales[17] - Cash inflows from operating activities amounted to ¥129,689,061.54, an increase from ¥109,373,930.61 in the previous period[35] - Operating cash inflow for the current period was CNY 129,688,845.36, an increase of 18.6% compared to CNY 109,373,930.61 in the previous period[39] - Net cash flow from operating activities was CNY 39,679,220.51, significantly higher than CNY 3,065,726.83 in the previous period[39] - The net increase in cash and cash equivalents was CNY 14,478,097.20, contrasting with a decrease of CNY 22,564,274.81 in the previous period[41] - The ending balance of cash and cash equivalents reached CNY 37,092,762.88, up from CNY 15,961,926.21 in the previous period[41] Shareholder Information - The total number of shareholders was 67,791 at the end of the reporting period[13] - The largest shareholder, Tangshan Jidong Cement Co., Ltd., held 28.05% of the shares, totaling 185,380,000 shares[13] Operational Costs and Expenses - The company’s financial expenses increased by 51.12% to CNY 2,578.97 million, due to increased loan amounts and capitalized interest[16] - The management expenses rose by 47.07% to CNY 3,423.56 million, mainly due to seasonal maintenance and repair costs[16] - Total operating costs increased to ¥189,018,762.25, up 8.4% from ¥174,298,622.53 in the previous period[31] - Cash paid to employees decreased to CNY 21,981,606.41 from CNY 44,145,735.22, reflecting a significant reduction in labor costs[39] Accounts Receivable and Inventory - The company reported a 372.80% increase in accounts receivable, reaching CNY 5,851.29 million, due to increased turnover with quality customers[17] - Accounts receivable totaled ¥58,236,262.62, compared to ¥12,099,234.79 in the previous period, indicating a significant increase[27] - Inventory levels remained stable at approximately ¥122,135,817.44, slightly down from ¥122,231,671.46 in the previous period[27] Investment Activities - Cash outflow from investing activities totaled CNY 5,237,248.31, up from CNY 3,216,541.03 in the previous period, indicating increased investment efforts[40] - The company is undergoing a major asset restructuring, with plans to acquire assets from China Recycled Resources Development Co., Ltd.[18]

Financial Performance - In 2013, the company's operating revenue was CNY 797,539,698.41, an increase of 4.92% compared to CNY 760,165,621.03 in 2012[23]. - The net profit attributable to shareholders was a loss of CNY 117,030,465.71, a significant decline from a profit of CNY 11,126,081.09 in 2012, representing a decrease of 1,151.86%[23]. - The company's net assets attributable to shareholders decreased by 66.88% to CNY 40,495,357.13 from CNY 122,279,663.21 in 2012[23]. - The total assets remained relatively stable at CNY 2,232,083,219.87, a slight increase of 0.09% from CNY 2,230,029,931.83 in 2012[23]. - The basic earnings per share for 2013 was -CNY 0.1771, compared to CNY 0.0168 in 2012, marking a decrease of 1,154.17%[24]. - The weighted average return on equity was -161.25% in 2013, a decrease of 170.79 percentage points from 9.5401% in 2012[24]. - The company reported a net cash flow from operating activities of -CNY 73,785,861.66, worsening from -CNY 47,567,513.65 in 2012[23]. - The company proposed not to distribute profits for the year 2013 due to a net loss[7]. - The company reported a net loss of CNY 973,780,287.63 for the year, compared to a loss of CNY 856,749,821.92 in the previous year[110]. - The company incurred a net loss of 117,030,465.71 RMB for the year, which negatively impacted the equity attributable to shareholders[126]. Operational Highlights - In 2013, the company produced 3.48 million tons of cement, an increase of 630,000 tons or 22.11% year-on-year[29]. - The average selling price of cement decreased year-on-year, leading to an operating loss of 127.52 million yuan, a decrease of 109.94 million yuan compared to the previous year[29]. - The company’s sales volume of cement reached a historical high, with sales of 3.46 million tons, an increase of 650,000 tons or 23.13% year-on-year[29]. - The company aims to produce 4.32 million tons of cement and achieve sales of 4.30 million tons, targeting a revenue of ¥998 million[44]. - The company has been involved in the production and sales of cement since its listing, with no significant changes in its main business[20]. Financial Position - Total assets as of December 31, 2013, were 2.232 billion yuan, with total liabilities of 2.195 billion yuan, resulting in a debt-to-asset ratio of 98.32%, an increase of 3.65 percentage points from the beginning of the year[30]. - The company’s total liabilities increased to CNY 2,190,853,787.58, up from CNY 2,107,501,309.50 in 2012[112]. - The company's total liabilities reached CNY 2,194,660,408.30, compared to CNY 2,111,353,577.28 at the start of the year, indicating an increase in liabilities[109]. - The total equity attributable to shareholders decreased to CNY 40,495,357.13 from CNY 122,279,663.21, reflecting a significant decline in retained earnings[110]. - The total number of shares as of the end of the reporting period is 660,800,000, with 100% being unrestricted shares[68]. Shareholder Information - The largest shareholder, Tangshan Jidong Cement Co., Ltd., holds 185,380,000 shares, accounting for 28.05% of the total shares, with a decrease of 6,252,000 shares during the reporting period[71]. - The total number of shareholders at the end of the reporting period is 67,882[70]. - Shaanxi Yao County Cement Production Technology Service Company holds 35,285,616 shares, representing 5.34% of the total shares, with a decrease of 1,113,051 shares during the reporting period[71]. - The company has not experienced any changes in restricted shares during the reporting period[68]. Management and Governance - The management team includes experienced professionals with significant industry backgrounds, such as the current general manager who has been in position since March 2013[78]. - The board of directors has seen changes, including the resignation of the general manager due to work relocation and the appointment of a new general manager[82]. - The company is actively involved in the nomination process for new board members and supervisors[83]. - The total remuneration for the board members and senior management during the reporting period amounted to 153.2 million RMB[77]. - The company has maintained a consistent approach to determining the remuneration of its directors and senior management, based on shareholder and board decisions[85]. Legal and Compliance - The company has not reported any significant litigation or arbitration cases during the reporting period, indicating a stable legal standing[50]. - The company has not experienced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the year[63]. - The annual financial report has been audited by Xinyong Zhonghe Accounting Firm, which issued a standard unqualified audit opinion[102]. - The company has a comprehensive internal control system, which has been evaluated as effective in maintaining financial reporting controls[99]. Strategic Initiatives - The controlling shareholder, Jidong Cement, is planning a major asset restructuring, which may lead to a change in the company's largest shareholder[11]. - The company is actively communicating regarding a major asset restructuring involving the injection of assets from Jidong Cement, which aims to resolve industry competition issues and enhance profitability[61]. - The company plans to enhance operational efficiency and reduce costs to improve market share and profitability[44]. - The company has been actively involved in mergers and acquisitions to strengthen its market position[76]. Cash Flow and Investments - The company reported a total cash inflow from financing activities of 750,000,000.00 RMB, while cash outflow was 664,195,856.52 RMB, resulting in a net cash flow of 85,804,143.48 RMB[121]. - The cash flow from operating activities showed a net outflow of CNY 73,785,861.66, worsening from a net outflow of CNY 47,567,513.65 in the previous year[119]. - The company paid 570,000,000.00 RMB in debt repayments during the year, compared to 945,000,000.00 in the previous year, reflecting a reduction of approximately 39.6%[124]. - The company’s cash flow statements included profits from the newly consolidated Baoji Storage and Transportation Co., Ltd. for the period from January 1 to October 17, 2013[196]. Asset Management - The company has a stable core technology team with no loss of key technical personnel reported[85]. - The company’s financial report indicates a strategic focus on optimizing asset management through the divestiture of non-core subsidiaries[195]. - The company transferred its entire stake in Qinling Cement Baoji Storage and Transportation Co., Ltd. for a total consideration of CNY 334,445.64[195]. - The company has outstanding discounted but not yet due receivables amounting to CNY 13,148,362.50 as of the reporting date[200].