Financial Performance - The company's operating revenue for the first half of 2021 was ¥24,265,545.78, a decrease of 37.37% compared to ¥38,745,341.66 in the same period last year[17]. - The net profit attributable to shareholders was -¥12,148,903.23, an improvement from -¥16,906,201.89 in the previous year[17]. - The net cash flow from operating activities was -¥77,810,269.47, compared to -¥48,199,284.60 in the same period last year[17]. - The basic earnings per share for the first half of 2021 was -¥0.04, compared to -¥0.05 in the same period last year[18]. - The weighted average return on net assets was -37.09%, down from -30.12% in the previous year[18]. - The company reported a net cash flow from operating activities of -RMB 35.54 million for the reporting period, indicating financial challenges[61]. - The company reported a total comprehensive loss of CNY 4,701,969.79 for the first half of 2021[110]. Assets and Liabilities - The total assets increased by 18.04% to ¥2,292,437,165.17 from ¥1,942,131,835.39 at the end of the previous year[17]. - The net assets attributable to shareholders decreased by 29.62% to ¥27,329,870.21 from ¥38,830,388.79 at the end of the previous year[17]. - Current liabilities rose to CNY 1,529,261,463.08, up from CNY 1,200,099,547.04, indicating an increase of about 27.5%[91]. - The company's total liabilities reached CNY 2,265,107,294.96, compared to CNY 1,903,301,446.60, marking an increase of approximately 19.1%[91]. - The company's retained earnings show a decline, with a balance of CNY -1,103,862,946.71 at the end of the reporting period, compared to CNY -1,099,160,976.92 at the beginning[110]. Production and Operations - The company has been in the process of relocating its production facilities since October 31, 2019, which has impacted the financial data for the reporting period[6]. - The new 50,000 tons/year CPE production facility was completed in the first half of 2021, but low production levels resulted in reduced sales revenue and low gross profit[18]. - The company is in the process of constructing a 120,000 tons/year ion membrane caustic soda facility, expected to complete equipment installation in the second half of 2021[25]. - The company aims to ensure the normal operation of the 50,000 tons/year CPE facility in the second half of 2021 to quickly capture market share and increase sales revenue[40]. - The company is gradually restoring production capacity, with most of the recovery still in progress[24]. Financing and Investments - The company plans to issue A-shares to raise up to 300 million RMB to supplement working capital, with the proposal already accepted by the China Securities Regulatory Commission[27]. - The company secured a new loan of ¥185 million from Weifang City Investment Group during the reporting period[34]. - The company reported a net cash outflow from investment activities of -¥60,030,966.91, a decline of 131.91% compared to a positive cash flow of ¥188,139,749.48 in the previous year[32]. - Cash flow from financing activities generated a net inflow of CNY 205,016,654.27, reversing from a net outflow of CNY -52,460,591.65 in the previous year[101]. Environmental Compliance - The company has implemented environmental monitoring systems, with wastewater discharge from Yaxing Chemical showing zero emissions for ammonia nitrogen and chemical oxygen demand[49]. - The environmental impact assessments for the 50,000 tons/year CPE project and the 120,000 tons/year ion-exchange membrane caustic soda project have been approved, with the CPE project currently undergoing environmental acceptance[52]. - The company was fined RMB 550,000 for exceeding emission standards as per the administrative penalty decision issued by the Weifang Ecological Environment Bureau[56]. Corporate Governance - The company held its first extraordinary shareholders' meeting of 2021 on March 3, 2021, and the resolutions were published on March 4, 2021[42]. - The company appointed a new management team, including a new chairman and several directors, effective from January 10, 2021[43]. - The company received a public reprimand from the Shanghai Stock Exchange for incomplete disclosure regarding a major asset restructuring, which affected investor rights and expectations[68]. - The company has committed to improving compliance and information disclosure practices following the reprimand, ensuring timely and accurate communication with investors[69]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 11,936[80]. - The largest shareholder, Weifang Urban Construction Development Investment Group Co., Ltd., held 40,000,000 shares, representing 12.67% of total shares[82]. - The second-largest shareholder, Weifang Yaxing Group Co., Ltd., held 26,932,729 shares, accounting for 8.53% of total shares[82]. - The company did not experience any changes in its share capital structure during the reporting period[79]. Research and Development - Research and development expenses increased significantly by 153.17% to ¥2,168,088.11, up from ¥856,384.45 in the previous year[32]. - The company reported a significant increase in research and development expenses to CNY 2,168,088.11, up from CNY 856,384.45, reflecting a focus on innovation[97]. Risk Management - There were no significant risk events reported during the reporting period[5]. - The company faces risks related to the timely completion of the new plant project and the demolition of the old plant, which could impact financial settlements and land recovery[38]. - The company is actively advancing the construction of the new plant and the demolition of the old plant, while also planning a non-public offering to mitigate related risks[40].

Financial Performance - In 2020, the company's operating revenue was CNY 49.29 million, a decrease of 97.02% compared to CNY 1.66 billion in 2019[23]. - The net profit attributable to shareholders was a loss of CNY 25.67 million, representing a decline of 187.88% from a profit of CNY 29.22 million in 2019[23]. - The net cash flow from operating activities was a negative CNY 35.54 million, down 118.91% from CNY 188.00 million in 2019[23]. - Basic earnings per share were -CNY 0.08, a decrease of 188.89% from CNY 0.09 in 2019[24]. - The weighted average return on net assets was -49.62%, a decrease of 106.48 percentage points from 56.86% in 2019[25]. - The company reported a cumulative loss of 1.18 billion RMB and a net cash flow from operating activities of -35.54 million RMB for the year 2020[96]. - The total comprehensive income for 2020 was a loss of RMB 25,752,518.32, compared to a total comprehensive income of RMB 29,191,010.90 in 2019[186]. - The company reported a significant increase in credit impairment losses of RMB 8,264,085.38 in 2020, compared to a gain of RMB 10,825,447.42 in 2019[185]. Assets and Liabilities - The total assets increased by 49.26% to CNY 1.94 billion at the end of 2020, compared to CNY 1.30 billion at the end of 2019[23]. - The company's net assets attributable to shareholders decreased by 39.88% to CNY 38.83 million at the end of 2020, down from CNY 64.58 million at the end of 2019[23]. - As of December 31, 2020, the company's current liabilities exceeded current assets by CNY 1,086.50 million, indicating significant liquidity concerns[168]. - The company's total liabilities reached CNY 1,903,301,446.60, compared to CNY 1,236,548,793.69 in 2019, reflecting a growth of around 54%[178]. - Owner's equity decreased to CNY 38,830,388.79 from CNY 64,582,907.11, a decline of approximately 39.9%[178]. Production and Operations - The company is currently in a shutdown and relocation phase, which has significantly impacted its financial performance[23]. - The company remained in a state of production halt throughout 2020, relying solely on sales of existing inventory[54]. - The company is in the process of relocating its production facilities, with new projects including a 50,000 tons/year CPE facility and a 120,000 tons/year ion-exchange membrane caustic soda facility under construction[35]. - The construction of the new plant is progressing, with the 50,000 tons/year CPE facility completed and in testing phase[66]. - The company has fully suspended production and is in the process of relocation since October 31, 2019, with ongoing construction of new facilities for 50,000 tons/year CPE, 120,000 tons/year caustic soda, and 12,000 tons/year hydrazine[75]. Market Conditions - The CPE market faced slow demand recovery in 2020, with prices declining in the first half and a significant increase in liquid chlorine prices in the second half[35]. - The caustic soda market remained oversupplied, leading to intense competition, but prices for by-product liquid chlorine increased, providing some profit stability[35]. - The hydrazine hydrate market saw slow demand recovery due to the pandemic, with prices remaining low until late 2020 when some companies limited production, leading to a price increase[36]. Corporate Governance - The company has a sound corporate governance structure, complying with relevant laws and regulations[154]. - Independent directors have actively participated in meetings and provided independent opinions on significant matters, ensuring the protection of minority shareholders' rights[161]. - The company has implemented measures to reduce and standardize related party transactions, with a significant decrease in transaction amounts due to the suspension of operations[157]. Future Plans and Investments - The company plans to invest in a new 50,000 tons/year CPE unit and a 150,000 tons/year hydrogen utilization project, pending shareholder approval[42]. - The company plans to implement a second 50,000 tons/year CPE facility and a 150,000 tons/year hydrogen utilization project in the new plant[66]. - In 2021, the company aims to ensure the 50,000 tons/year CPE unit starts operation and stabilizes production to quickly capture market share and increase sales revenue[91]. - The company plans to issue A-shares to raise up to 300 million RMB to supplement working capital and alleviate financial pressure[98]. Environmental and Safety Management - The company has established a comprehensive wastewater collection system, ensuring that wastewater is treated and meets standards before being discharged into the Yuhe sewage treatment plant[114]. - The company has implemented a self-monitoring plan for environmental emissions, including wastewater and noise, with real-time data displayed at the factory entrance[119]. - Safety and environmental management will be prioritized, with comprehensive training and responsibility agreements established to prevent accidents during construction and operation[86]. Employee and Shareholder Relations - The company has maintained its commitment to employee welfare, providing a comprehensive salary and benefits system to ensure employee rights[118]. - The number of ordinary shareholders increased from 11,821 to 12,111 during the reporting period[123]. - Total remuneration for all directors, supervisors, and senior management reached CNY 4.4985 million[143]. Legal and Compliance Issues - The company is facing significant litigation, including a case where it is required to pay RMB 2,656,684.44 for unfulfilled energy-saving payments[105]. - The company has faced regulatory penalties for inaccurate disclosures in the past, leading to improved compliance measures[145][146].

| 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 7 | | 四、 | 附录 9 | 2021 年第一季度报告 2021 年第一季度报告 公司代码：600319 公司简称：ST 亚星 潍坊亚星化学股份有限公司 2021 年第一季度报告 1 / 24 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。 1.3 公司负责人韩海滨、主管会计工作负责人伦秀华及会计机构负责人（会计主管人员）王钦志 保证季度报告中财务报表的真实、准确、完整。 本公司第一季度报告未经审计。 由于公司生产厂区于 2019 年 10 月 31 日全面关停，公司不再单独披露 2021 年第一季度报告主 要经营数据的临时公告。敬请投资者充分注意该因素对本报告中同比数据等的影响。 二、 公司基本情况 2.1 主要财务数据 | | 本报告期末 | 上年度末 | 本报告期末比上 年度末增减(%) | | --- | ...

Financial Performance - Operating revenue for the first nine months dropped by 96.95% to CNY 42,842,047.28 compared to the same period last year[6]. - Net profit attributable to shareholders was a loss of CNY 19,979,155.37, a decrease of 202.25% compared to the same period last year[6]. - The company's net loss for the first three quarters of 2020 was CNY 1,096,767,039.05, worsening from a loss of CNY 1,075,911,794.01 in the same period of 2019[27]. - The company reported a significant drop in operating revenue for Q3 2020, totaling CNY 4,096,705.62, down from CNY 445,689,240.04 in Q3 2019, a decrease of about 99.1%[28]. - The net loss for Q3 2020 was CNY 4,508,076.34, compared to a net loss of CNY 1,478,093.06 in Q3 2019, indicating a worsening financial performance[32]. - The total profit loss for the first three quarters of 2020 reached CNY 20,855,245.04, compared to a profit of CNY 19,442,770.82 in the same period of 2019[32]. Assets and Liabilities - Total assets increased by 21.70% to CNY 1,583,452,787.38 compared to the end of the previous year[6]. - Current assets decreased to CNY 254,872,000.72 from CNY 498,443,435.11, a decline of about 48.9%[23]. - Total liabilities rose to CNY 1,538,849,035.64 from CNY 1,236,548,793.69, an increase of approximately 24.5%[24]. - The company’s total equity decreased to CNY 44,603,751.74 from CNY 64,582,907.11, a decline of approximately 30.9%[24]. - The company reported a significant decrease in cash and cash equivalents, down 53.81% to ¥144,817,042.35 compared to the previous period[15]. - The company’s total liabilities included short-term borrowings of 838,265,722.88 RMB, reflecting the ongoing financing strategy amidst cash flow challenges[41]. Cash Flow - Net cash flow from operating activities for the first nine months was -CNY 70,270,474.18, a decrease of 157.28% compared to the same period last year[6]. - Cash flow from operating activities for the first three quarters of 2020 was negative at CNY -70,270,474.18, a decline from a positive cash flow of CNY 122,672,039.93 in the same period of 2019[33]. - The company incurred total cash outflows from operating activities of 167,954,570.26 RMB, a reduction of about 82% compared to 923,917,149.73 RMB in the previous year[37]. - The cash flow from financing activities showed a net outflow of -71,242,636.53 RMB, compared to -137,968,339.57 RMB in the previous year, representing an improvement of about 48%[38]. Shareholder Information - The total number of shareholders at the end of the reporting period was 12,690[9]. - The largest shareholder, Beijing Guangyao Dongfang Commercial Management Co., Ltd., held 12.67% of the shares[9]. Operational Changes - The company is currently in the process of relocating and rebuilding, with plans to complete a 50,000 tons/year CPE facility by the end of the year and a 120,000 tons/year caustic soda facility by early 2021[18]. - The company received government compensation of ¥600 million for relocation, with ¥440 million received in the current period[17]. - The company anticipates a potential net loss for the year due to ongoing production suspension during the relocation[19]. Inventory and Receivables - Accounts receivable decreased by 81.79% to ¥9,895,295.86, primarily due to reduced sales volume following production suspension[15]. - Inventory decreased by 34.65% to ¥60,086,436.60, attributed to the sale of finished products and raw materials during the production halt[15]. - The company reported a total of 91,940,446.20 RMB in inventory as of Q3 2020, remaining unchanged from the previous reporting period[41]. Research and Development - The company’s R&D expenses decreased by 66.20% to ¥1,207,039.02, reflecting reduced operational activities[15]. - Research and development expenses for Q3 2020 were CNY 350,354.57, down from CNY 1,253,543.07 in Q3 2019, reflecting a reduction in investment in innovation[31].

股票简称：ST亚星 股票代码：600319 编号：临2020-045 潍坊亚星化学股份有限公司 关于参加山东辖区上市公司 2020 年度投资者 网上集体接待日活动的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导 性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及 连带责任。 为进一步加强与投资者的互助交流工作,构建和谐投资者关系,潍坊亚星化 学股份有限公司（以下简称"公司"）将参加由山东证监局、山东上市公司协 会与深圳市全景网络有限公司联合举办的"山东辖区上市公司2020年度投资者 网上集体接待日"活动，现将有关事项公告如下： 本次投资者网上集体接待日活动将通过深圳市全景网络有限公司提供的网 上平台举行，投资者可以登录"全景·路演天下"网站（http://rs.p5w.net） 参与公司本次投资者网上集体接待日活动。网上互动交流时间为2020年9月29日 (星期二)下午15:00-16:55。 届时公司财务总监伦秀华先生、董事会秘书李文青先生、证券事务代表苏 鑫先生将通过网络在线形式与投资者进行沟通交流，欢迎广大投资者积极参与。 特此公告。 潍坊亚星化学股份有限公司董事会 二 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥38,745,341.66, a decrease of 95.97% compared to ¥960,872,914.37 in the same period last year[20]. - The net profit attributable to shareholders was -¥16,906,201.89, representing a decline of 181.34% from ¥20,784,983.82 in the previous year[20]. - The net cash flow from operating activities was -¥48,199,284.60, down 151.81% from ¥93,022,387.32 in the same period last year[20]. - The company reported a significant decline in revenue, with total operating income of CNY 38.75 million, a decrease of 95.97% compared to CNY 960.87 million in the previous year[35]. - Operating costs also saw a substantial drop, amounting to CNY 34.35 million, down 95.91% from CNY 839.91 million year-on-year[35]. - The company experienced a net loss attributable to shareholders of CNY -16.91 million, with a net profit of CNY -19.10 million after excluding non-recurring gains and losses[34]. - The company anticipates a potential net loss for the period due to the cessation of operations during the relocation phase[42]. - The total comprehensive income for the period was -16,347.68 million RMB[96]. Assets and Liabilities - The total assets increased by 23.33% to ¥1,604,671,386.63 compared to ¥1,301,131,700.80 at the end of the previous year[20]. - The net assets attributable to shareholders decreased by 26.18% to ¥47,676,705.22 from ¥64,582,907.11 at the end of the previous year[20]. - The company's cash and cash equivalents at the end of the period amounted to ¥374,239,540.01, representing 23.32% of total assets, a 19.36% increase compared to the previous year[37]. - Accounts receivable decreased by 70.18% to ¥16,202,198.16, down from ¥54,325,023.89 in the same period last year[37]. - Inventory decreased by 35.79% to ¥59,037,186.77, compared to ¥91,940,446.20 in the previous year[37]. - The company has a significant increase in long-term payables, which rose by 275.00% to ¥600,000,000.00 from ¥160,000,000.00 year-on-year[37]. - Total liabilities rose to RMB 1,556,994,681.41, up from RMB 1,236,548,793.69, marking an increase of approximately 26%[77]. - The company's equity attributable to shareholders decreased to RMB 47,676,705.22 from RMB 64,582,907.11, a decline of about 26.1%[77]. Production and Relocation - The company has not resumed production as it is still in the process of relocation, which significantly impacts the financial data for the reporting period[8]. - The company is in the process of relocating its production facilities, with a new site in Changyi City covering approximately 1,092 acres, and is currently constructing a 50,000 tons/year CPE facility and a 120,000 tons/year ion membrane caustic soda facility[28][34]. - The CPE project began construction on February 22, 2020, and the main structure has reached the seventh floor, with equipment installation already underway[33]. - The company is actively working on the approval and decision-making processes for the second phase of its relocation, which includes a 12,000 tons/year hydrazine project[34]. - The company is actively advancing its relocation project, aiming to complete a 50,000 tons/year CPE facility by the end of the year and a 120,000 tons/year ion membrane caustic soda facility by early 2021[39]. - Despite being temporarily shut down, the company is maintaining market relationships and adjusting supply strategies to stabilize key customer relationships during the production halt[52]. - The company is focused on retaining core technical and production staff during the relocation to minimize personnel loss and is investing in skill training for employees[52]. Financial Management and Risks - The company has terminated a major asset restructuring plan due to disagreements on key terms, including transaction price and profit commitments[34]. - The company is facing risks related to the timely completion of its new plant projects and the potential for market changes affecting profitability[44]. - The company is actively managing its financial risks during the relocation phase, with support from local government financial risk prevention initiatives[52]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period[47]. - The company reported a consolidated operating capital of -53,850.60 million RMB and a cumulative loss of 115,455.74 million RMB as of December 31, 2019, indicating significant uncertainty regarding its ability to continue as a going concern[50]. Environmental Compliance - The company has established a wastewater collection system that meets discharge standards, with ammonia nitrogen concentration at 27.3 mg/L and chemical oxygen demand at 1.51 mg/L[60]. - The company’s wastewater discharge from January to June totaled 1.231 tons for ammonia nitrogen and 0.105 tons for chemical oxygen demand, both meeting standards[60]. - The company has implemented an environmental monitoring system that allows real-time tracking of wastewater discharge data[60]. - The company has complied with environmental impact assessments for construction projects and has actively implemented related work[62]. - The company’s environmental protection measures include a comprehensive monitoring plan for wastewater and noise emissions[64]. Shareholder Information - The company has a total of 14,215 common stock shareholders as of the end of the reporting period[68]. - The top shareholder, Beijing Guangyao Dongfang Commercial Management Co., Ltd., holds 40,000,000 shares, accounting for 12.76% of the total shares, with all shares frozen[70]. - Weifang Yaxing Group Co., Ltd. holds 23,832,797 shares, representing 7.55% of the total shares, with all shares frozen[70]. - The total shares held by the top ten shareholders account for 41,653,962 shares, which is 13.2% of the company's total share capital[71]. - The company has not experienced any changes in controlling shareholders or actual controllers during the reporting period[72]. Accounting Policies and Estimates - The company has not made any significant changes to important accounting policies or estimates in 2020[178]. - The company recognizes revenue from sales of goods when the risks and rewards of ownership are transferred to the buyer, with specific conditions for domestic and international sales[164]. - Deferred tax assets and liabilities are recognized based on the differences between the carrying amounts of assets and liabilities and their tax bases, with a review of the recoverability of deferred tax assets[170]. - The company applies the expected credit loss model for financial instrument impairment since January 1, 2019, requiring significant judgments and estimates based on historical repayment data and macroeconomic indicators[174].

Financial Performance - Operating revenue decreased by 95.67% to CNY 22,585,373.16 year-on-year[6] - Net profit attributable to shareholders decreased by 158.88% to a loss of CNY 7,488,678.88 compared to the same period last year[6] - Net cash flow from operating activities decreased by 134.53% to a negative CNY 30,749,966.32[6] - Basic and diluted earnings per share both decreased by 150% to -CNY 0.02[6] - The company reported a net loss of ¥1,162,046,111.00, slightly worsening from a loss of ¥1,154,557,432.12 in the previous year[25] - Total operating revenue for Q1 2020 was ¥22,585,373.16, a decrease of 95.66% compared to ¥521,056,200.09 in Q1 2019[30] - Net profit for Q1 2020 was a loss of ¥7,488,678.88, compared to a profit of ¥12,719,124.88 in Q1 2019, indicating a significant decline[31] - Basic earnings per share for Q1 2020 was -¥0.02, compared to ¥0.04 in Q1 2019[33] Assets and Liabilities - Total assets increased by 24.57% to CNY 1,620,868,980.32 compared to the end of the previous year[6] - The company's trading financial assets increased dramatically by 7,944.30% to ¥160,177,396.57 from ¥1,991,191.23 at the beginning of the period[14] - Total liabilities rose to ¥1,563,774,752.09 from ¥1,236,548,793.69, reflecting an increase of approximately 26.4%[24] - Long-term payables increased by 275.00% to ¥600,000,000.00 from ¥160,000,000.00, attributed to government compensation for relocation[15] - The total equity attributable to shareholders decreased to ¥57,094,228.23 from ¥64,582,907.11, a decline of approximately 11.5%[25] - The company's total liabilities increased to ¥1,562,045,061.08 in Q1 2020 from ¥1,229,574,525.30 in Q1 2019, representing a growth of 27.00%[28] - The total current liabilities decreased to ¥926,148,216.49 from ¥1,036,949,475.51, a reduction of about 10.7%[24] Cash Flow - The company reported a net cash outflow from operating activities of -¥30,749,966.32, a decrease of 134.53% compared to the previous period[15] - In Q1 2020, cash inflow from operating activities was CNY 44,651,846.78, a significant decrease of 85.5% compared to CNY 308,356,915.51 in Q1 2019[34] - The net cash flow from operating activities for Q1 2020 was -CNY 30,749,966.32, contrasting with a positive CNY 89,062,336.80 in Q1 2019[35] - The company reported cash outflow from financing activities of CNY 30,040,022.18 in Q1 2020, compared to CNY 50,934,697.09 in Q1 2019[39] - The net increase in cash and cash equivalents for Q1 2020 was CNY 84,594,965.50, up from CNY 37,827,843.25 in Q1 2019[35] Shareholder Information - The total number of shareholders reached 15,374 at the end of the reporting period[10] - The largest shareholder, Beijing Guangyao Dongfang Commercial Management Co., Ltd., holds 40,000,000 shares, accounting for 12.67% of total shares[10] Operational Challenges - The company has not disclosed major operating data for Q1 2020 due to the complete shutdown of its production facilities since October 31, 2019[4] - The company is currently in a production suspension and relocation phase, predicting a potential cumulative net loss for the year[19] - The company is actively pursuing a major asset restructuring and related financing to support its strategic initiatives[18] Research and Development - The company’s research and development expenses decreased by 60.30% to ¥449,597.31 from ¥1,132,560.39, reflecting reduced operational activities[15] - Research and development expenses for Q1 2020 were ¥449,597.31, down 60.32% from ¥1,132,560.39 in Q1 2019[30] Inventory and Receivables - Accounts receivable decreased by 29.98% to ¥38,038,400.45 from ¥54,325,023.89 due to reduced sales volume following production suspension[15] - Inventory decreased by 20.18% to ¥73,389,549.55 from ¥91,940,446.20 due to sales of finished products during the production halt[15] - Inventory decreased to ¥73,389,549.55 from ¥91,940,446.20, a reduction of about 20.2%[23]

Financial Performance - The company's operating revenue for 2019 was ¥1,655,120,196.28, a decrease of 17.66% compared to ¥2,010,163,772.18 in 2018[22] - The net profit attributable to shareholders was ¥29,217,010.90, a significant increase of 840.22% from ¥3,107,476.76 in the previous year[22] - The total assets at the end of 2019 were ¥1,301,131,700.80, reflecting a slight increase of 1.85% from ¥1,277,522,427.32 in 2018[22] - The net assets attributable to shareholders increased by 75.63% to ¥64,582,907.11 from ¥36,771,595.46 in 2018[22] - The basic earnings per share for 2019 was ¥0.09, up 800% from ¥0.01 in 2018[23] - The weighted average return on net assets was 56.86%, an increase of 47.77 percentage points from 9.09% in 2018[24] - The company reported a net cash flow from operating activities of ¥188,004,664.27, an increase of 24.18% from ¥151,397,984.11 in 2018[22] - The company achieved a main business revenue of CNY 1,631.70 million in 2019, a decrease of CNY 34.77 million compared to CNY 1,979.42 million in 2018[41] - The total cost of sales decreased by 19.76% to CNY 1,436.53 million in 2019, down from CNY 1,790.30 million in 2018[41] - The company’s research and development expenses increased by 71.61% to CNY 4.62 million in 2019, compared to CNY 2.69 million in the previous year[41] Production and Sales - The production of CPE decreased by 14.82% to 138,248 tons in 2019 compared to 2018, while sales decreased by 14.29% to 140,494 tons[38] - The production of caustic soda decreased by 13.09% to 104,623 tons in 2019, while the production of hydrazine hydrate fell by 14.51% to 9,405 tons, and the production of ADC foaming agent dropped by 30.37% to 3,129 tons[39] - The sales volume of PVC decreased by 14.29% to 140,494 tons, while the sales volume of caustic soda decreased by 12.38% to 78,900 tons in 2019[44] - The company faced a challenging market for hydrazine hydrate, with a significant decline in demand due to environmental regulations affecting downstream customers[32] - The company’s ADC foaming agent business faced intense competition, leading to low profit margins and insufficient operating rates[32] Market and Competition - The company maintained a market share of nearly 30% in the domestic and international markets for the first ten months of 2019[37] - The company holds a market share of approximately 30% in the chlorinated polyethylene sector, maintaining a leading position in the industry[61] - The CPE industry is experiencing increased concentration due to the elimination of competitors that have not fully upgraded, with a current oversupply situation leading to ongoing price wars and no significant improvement in overall profitability[93] - The domestic hydrazine hydrate market is facing low prices and limited growth due to environmental regulations and safety supervision, with manufacturers focusing on expanding international market presence[94] Operational Changes - The company did not propose any profit distribution for 2019 due to accumulated undistributed profits being negative[5] - The company’s production facilities were fully shut down on October 31, 2019, impacting the annual data and year-on-year comparisons[9] - The company is in the process of relocating its production facilities, with a new 50,000 tons/year CPE plant and a 120,000 tons/year caustic soda plant under construction[33] - The company plans to construct a new facility with a capacity of 50,000 tons/year for CPE, 120,000 tons/year for ion-exchange membrane caustic soda, and 12,000 tons/year for 100% hydrazine hydrate, with projects currently progressing smoothly[96] - The company has committed to improving its financing structure and reducing costs to support the relocation and operational continuity[109] Environmental Compliance - The company achieved compliance with environmental standards for emissions, including particulate matter at 1.94 tons and sulfur dioxide at 16.6 tons for the year 2019[129] - The company maintained a wastewater discharge of 25.6 tons for ammonia nitrogen and 292 tons for chemical oxygen demand, both meeting environmental standards[130] - The company has implemented a three-level inspection mechanism for pollution prevention facilities to ensure compliance with environmental regulations[131] - The company has invested in pollution control facilities to minimize the environmental impact of its production activities[131] - The company has completed environmental impact assessments for all construction projects in accordance with regulatory requirements[132] Shareholder and Governance - The total number of ordinary shareholders increased from 15,374 to 17,518 during the reporting period, representing a growth of approximately 14%[141] - The top shareholder, Beijing Guangyao Dongfang Commercial Management Co., Ltd., holds 40,000,000 shares, accounting for 12.67% of total shares, with shares frozen[143] - The company has no controlling shareholder or actual controller after the transfer of shares on July 12, 2019[147] - The report indicates that the company underwent a significant change in its shareholder structure, leading to a more dispersed ownership[149] - The company has disclosed the changes in controlling shareholders and actual controllers in its announcements[148] Management and Personnel - The total number of employees in the parent company is 1,253, with 1,840 retired employees that the company needs to support[167] - The company has experienced changes in its board and management personnel during the reporting period[162] - The total remuneration for all directors, supervisors, and senior management was 415.86 million[161] - The company has a structured compensation management system for senior management[161] - The remuneration for directors and senior management is determined based on annual operational management goals and performance assessments[161] Audit and Financial Reporting - The company appointed Shuhua Accounting Firm (Special General Partnership) as the auditor for the 2019 financial report and internal control audit, with a remuneration of CNY 350,000[112] - The company’s financial statements were audited and deemed to fairly reflect its financial position as of December 31, 2019[184] - The audit report is dated April 27, 2020, indicating the completion of the audit process for the fiscal year ending December 31, 2019[199] - The management must assess the company's ability to continue as a going concern and disclose relevant matters[193] - The auditors aim to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[194]

Financial Performance - Revenue for the period from January to September decreased by 10.28% to CNY 1,406,562,154.41 compared to the same period last year[6]. - Net profit attributable to shareholders increased by 86.16% to CNY 19,540,126.25 for the period from January to September[6]. - Diluted earnings per share increased by 100% to CNY 0.06 compared to the same period last year[7]. - The weighted average return on equity increased by 14.26 percentage points to 41.98% compared to the same period last year[6]. - Total operating revenue for Q3 2019 was ¥445,689,240.04, a decrease of 11.97% compared to ¥506,272,330.21 in Q3 2018[28]. - The net profit for Q3 2019 was a loss of ¥1.24 billion, compared to a loss of ¥5.87 billion in Q3 2018, indicating a significant improvement[30]. - The total profit for Q3 2019 was a loss of ¥1.24 billion, while in Q3 2018, it was a loss of ¥5.87 billion, reflecting a reduction in losses[30]. - The total comprehensive income for Q3 2019 was a loss of ¥1.24 billion, compared to a loss of ¥5.87 billion in Q3 2018, showing a notable improvement[30]. Assets and Liabilities - Total assets increased by 0.46% to CNY 1,283,395,337.42 compared to the end of the previous year[6]. - The total assets as of September 30, 2019, were ¥1,261,626,218.06, slightly up from ¥1,257,257,583.74 at the end of 2018[27]. - Total liabilities as of September 30, 2019, were ¥1,205,160,705.57, a decrease from ¥1,220,088,630.25 at the end of 2018[27]. - The company's accounts receivable decreased by 38.53% from CNY 111,537,692.52 to CNY 68,561,117.06[13]. - The company's inventory increased by 29.73% from CNY 151,009,447.29 to CNY 195,897,442.91[13]. - The company's prepaid expenses increased significantly by 117.92% from CNY 27,832,955.04 to CNY 60,654,030.94[13]. - The company's other receivables decreased by 92.36% from CNY 9,212,768.44 to CNY 703,870.33[13]. - The company's accounts payable increased by 191.08% from CNY 14,120,000.00 to CNY 41,100,000.00[13]. Cash Flow - Net cash flow from operating activities increased by 183.13% to CNY 122,672,039.93 for the period from January to September[6]. - Operating cash flow for the first three quarters of 2019 was CNY 122,672,039.93, a significant increase from CNY 43,326,781.13 in the same period of 2018, representing a growth of approximately 184.5%[35]. - Cash inflow from operating activities totaled CNY 1,050,592,999.87, down from CNY 1,115,726,148.05 in 2018, indicating a decrease of about 5.8%[35]. - Cash outflow from operating activities decreased to CNY 927,920,959.94 from CNY 1,072,399,366.92, a reduction of approximately 13.5%[35]. - Cash inflow from financing activities increased to CNY 970,048,064.37 in 2019 from CNY 578,329,246.62 in 2018, marking an increase of approximately 77.5%[36]. - Net cash flow from financing activities was negative at CNY -138,117,327.07 in 2019, compared to CNY -127,724,887.78 in 2018, indicating a worsening of about 8.7%[36]. - The ending cash and cash equivalents balance for Q3 2019 was CNY 11,154,661.06, down from CNY 24,226,630.42 in Q3 2018, a decline of approximately 53.8%[36]. - Cash and cash equivalents decreased by CNY 16,459,129.14 in Q3 2019, compared to a decrease of CNY 63,363,750.87 in Q3 2018, showing an improvement in cash management[36]. Shareholder Information - The total number of shareholders at the end of the reporting period was 20,211[9]. - The largest shareholder, Beijing Guangyao Dongfang Commercial Management Co., Ltd., holds 12.67% of the shares[9]. Government Support and Future Plans - Government subsidies recognized in the current period amounted to CNY 1,220,514.06[8]. - The company anticipates a potential cumulative net loss for the year due to the planned shutdown of its production facility by October 31, 2019[17]. - The company plans to implement a 50,000 tons/year CPE facility project in the newly designated industrial park[16]. Research and Development - Research and development expenses for Q3 2019 amounted to ¥1,253,543.07, an increase of 45.2% from ¥862,933.95 in Q3 2018[28]. - The company's R&D expenses in Q3 2019 were ¥1.25 million, up from ¥862,933.95 in Q3 2018, showing an increase of approximately 45%[31].

Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥960.87 million, a decrease of 9.48% compared to ¥1,061.52 million in the same period last year[18]. - Net profit attributable to shareholders increased by 26.96% to approximately ¥20.78 million, up from ¥16.37 million in the previous year[18]. - The net cash flow from operating activities was approximately ¥93.02 million, a decrease of 5.91% compared to ¥98.87 million in the same period last year[18]. - The total assets at the end of the reporting period were approximately ¥1.34 billion, an increase of 4.76% from ¥1.28 billion at the end of the previous year[18]. - The net assets attributable to shareholders increased by 55.92% to approximately ¥57.33 million, compared to ¥36.77 million at the end of the previous year[18]. - Basic earnings per share rose by 40.00% to ¥0.07, compared to ¥0.05 in the same period last year[19]. - The weighted average return on net assets increased by 3.95 percentage points to 44.07% from 40.12% in the previous year[19]. - The company reported a revenue of 301.70 million yuan in the first half of 2019, with a total profit of 2.95 million yuan[34]. - The company reported a net profit for the first half of 2019 was CNY 20,920,863.88, an increase of 39.5% compared to CNY 14,954,319.73 in the same period of 2018[85]. - The total comprehensive income for the first half of 2019 amounted to CNY 20,784,983.82[94]. Market Conditions - The decrease in operating revenue was primarily due to a reduction in sales volume, which accounted for a decrease of approximately ¥74.15 million, and price factors contributing to a further decrease of approximately ¥24.17 million[20]. - The caustic soda market experienced a downward trend due to weak downstream demand, particularly from the aluminum oxide industry, leading to reduced production by some manufacturers[24]. - The demand for hydrazine hydrate plummeted due to market conditions, with prices dropping to near production cost levels, resulting in low profit margins[25]. - The company’s ADC blowing agent faced low demand and intense competition, operating at only 40% capacity[25]. - The company is actively exploring international markets to mitigate the impact of declining domestic demand for hydrazine hydrate[28]. Research and Development - The company increased R&D expenses by 21.35% to CNY 2.32 million, focusing on quality improvements and new product development[30]. - In the first half of 2019, the company will continue R&D efforts centered around its core CPE industry, utilizing small-scale and pilot platforms to strengthen the development of new CPE grades[43]. - Research and development expenses for the first half of 2019 were CNY 2,317,537.92, compared to CNY 1,909,775.42 in the same period of 2018, representing an increase of approximately 21.4%[81]. Environmental and Safety Measures - The company has established a comprehensive wastewater collection system, ensuring that treated wastewater meets discharge standards before being released into the local treatment facility[50]. - The company has implemented pollution prevention measures, including adjustments to pH levels in waste gas treatment and the construction of a fully enclosed coal storage facility to reduce dust pollution[52]. - The company has successfully completed environmental impact assessments for construction projects, adhering to regulatory requirements throughout the project lifecycle[53]. - The company has established an emergency response plan for environmental incidents, with a focus on liquid chlorine, hydrochloric acid, and liquid ammonia[55]. - The company conducted a safety and environmental emergency drill for liquid chlorine leakage on June 5, 2019[55]. Financial Position and Liabilities - The company reported a cumulative loss of 1.18 billion yuan as of December 31, 2018, raising concerns about its ongoing viability[41]. - The company has a high asset-liability ratio, leading to difficulties in financing and a need to strengthen communication with financial institutions[36]. - The company is at risk of relocation or shutdown as part of a government initiative affecting six enterprises in Weifang city[36]. - As of June 30, 2019, total assets amounted to CNY 1,338,281,929.86, an increase from CNY 1,277,522,427.32 on December 31, 2018[75]. - Total liabilities as of June 30, 2019, were CNY 1,280,948,826.54, compared to CNY 1,240,750,831.86 at the end of 2018[75]. - The company owed bank loans amounting to RMB 836,422,442.40 as of June 30, 2019[109]. Shareholder Information - The company reported a total of 18,854 common stock shareholders as of the end of the reporting period[61]. - The top ten shareholders hold a total of 42,791,962 shares (13.56%) and 40,000,000 shares (12.67%) respectively[63]. - The company has a total of 23,832,797 shares (7.55%) held by Weifang Yaxing Group Co., Ltd., which is a state-owned entity[63]. - The new major shareholder, Weifang Yuyou, indirectly holds 41,653,962 shares, accounting for 13.20% of the total share capital[66]. - The major shareholders include Weifang Yaxing Group Co., Ltd. with a 44.87% stake and Hong Kong Jiayao International Investment Co., Ltd. with a 25.90% stake[102]. Accounting and Financial Reporting - The company has implemented specific accounting policies and estimates based on its operational characteristics, in accordance with relevant accounting standards[110]. - The company operates under the assumption of going concern, despite significant financial challenges[109]. - The company recognizes foreign exchange differences as other comprehensive income unless related to capitalized assets[125]. - The company does not apply deferred tax assets or liabilities, simplifying its tax accounting approach[177]. - The company has not made any changes to significant accounting estimates during this reporting period[182].