Financial Performance - Revenue for the first nine months rose by 5.60% to CNY 4,352,109,426.82 compared to CNY 4,121,419,347.39 in the same period last year[6]. - Net profit attributable to shareholders was CNY -126,164,506.18, a decrease of 287.01% compared to CNY 67,465,318.93 in the previous year[6]. - Year-to-date net profit for the first nine months of 2018 was a loss of ¥126,164,506.18, compared to a profit of ¥67,465,318.93 in the same period last year[36]. - The company's operating revenue for Q3 2018 was CNY 1,400,626,613.40, a decrease of 2.2% compared to CNY 1,442,632,410.54 in Q3 2017[38]. - The net profit for Q3 2018 was a loss of ¥56,623,131.83, compared to a profit of ¥7,876,887.79 in Q3 2017, indicating a significant decline[36]. - The total comprehensive income for Q3 2018 was -52,985,065.48, significantly lower than the comprehensive income of 9,327,662.46 in Q3 2017[40]. Assets and Liabilities - Total assets decreased by 11.05% to CNY 8,508,701,081.33 compared to the end of the previous year[6]. - The company's current assets decreased to CNY 4,113,509,124.68 from CNY 5,131,672,863.63, representing a reduction of about 20%[26]. - The total liabilities decreased to CNY 9,461,582,853.59 from CNY 10,692,572,266.40, indicating a decline of approximately 11.5%[28]. - The total amount of debt claims submitted by creditors reached 9,811,682,577.37 as of October 19, 2018, with 967 claims filed[16]. - The company's total equity attributable to shareholders decreased to CNY -952,881,772.26 from CNY -1,126,717,266.08, indicating an improvement in the negative equity position[28]. Cash Flow - Operating cash flow increased significantly by 288.21% to CNY 133,336,555.25 year-to-date[6]. - The net cash flow from operating activities increased by 288.21% to 133,336,555.25, primarily due to an increase in cash received from sales of goods and services[14]. - Cash and cash equivalents decreased by 54.84% to CNY 1,004,781,366.52 from CNY 2,224,725,744.24 at the end of the previous year[10]. - Cash and cash equivalents at the end of the period totaled ¥409,963,574.66, compared to ¥210,755,017.21 at the end of the previous year, representing an increase of 94.5%[43]. - The company reported a net cash flow from financing activities of ¥106,041,676.69, a decrease of 2.2% from ¥108,227,062.95 in the previous year[43]. Shareholder Information - The number of shareholders reached 118,646 at the end of the reporting period[8]. - The largest shareholder, Northeast Special Steel Group Co., Ltd., holds 38.2% of the shares, with 496,876,444 shares[8]. Impairment and Restructuring - The company reported an asset impairment loss of 16,567,470.76, an increase of 489.91% compared to the previous year[12]. - The company is undergoing a restructuring process, with the court accepting the application for reorganization on September 20, 2018[16]. - The company is actively seeking to improve its financial situation through restructuring and other measures to enhance sustainability[23]. Other Financial Metrics - Basic and diluted earnings per share were both CNY -0.0970, down 286.90% from CNY 0.0519[6]. - The company's investment income was reported at -2,373,186.23, reflecting a 100% decrease due to losses from an associated company[12]. - The company incurred financial expenses of ¥289,908,500.46 for the first nine months of 2018, slightly down from ¥298,465,862.36 in the same period last year[35].

Financial Condition - The company reported overdue borrowings and notes payable totaling approximately ¥878.1 million as of June 30, 2018, which increased to approximately ¥1.93 billion by the report date[15]. - The company has been under a delisting risk warning since June 27, 2018, due to negative net assets and consecutive losses in 2016 and 2017[7]. - The company is facing a bankruptcy reorganization application from a creditor, citing inability to repay debts and lack of repayment capacity[12]. - The company has provided guarantees for bank financing of ¥500 million for its controlling shareholder and ¥300 million for its subsidiary, both of which are overdue[14]. - The company reported a significant accounting error affecting total assets and net assets, leading to a negative net asset situation[11]. - The company acknowledges the risk of being declared bankrupt if the reorganization plan is not approved by the court[12]. - The net assets attributable to shareholders at the end of the reporting period were approximately -¥1.20 billion, a decrease of 6.17% from -¥1.13 billion at the end of the previous year[32]. - The company has overdue debts totaling 1,927,105,595.62 CNY, including 1,149,006,501.15 CNY in loans and 778,099,094.47 CNY in notes payable[58]. - The company is facing bankruptcy risks as it received a court application for reorganization due to inability to repay debts[59]. - The company has reported continuous losses for two consecutive years, with the most recent year's net asset being negative[57]. Legal Issues - The company has 47 ongoing lawsuits or arbitrations, with a total amount in dispute of approximately ¥182.1 million[16]. - The company is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations[9]. - There are currently 47 ongoing lawsuits or arbitrations against the company, with a total claim amount of approximately ¥182.15 million[78]. - The company has completed rectification measures as mandated by the Liaoning Regulatory Bureau of the China Securities Regulatory Commission due to internal control and accounting issues[79]. Operational Performance - The company's operating revenue for the first half of 2018 was approximately ¥2.97 billion, representing a 6.94% increase compared to ¥2.77 billion in the same period last year[32]. - The net profit attributable to shareholders for the first half of 2018 was a loss of approximately ¥69.54 million, a decrease of 216.70% compared to a profit of ¥59.59 million in the same period last year[32]. - The net cash flow from operating activities for the first half of 2018 was approximately ¥1.88 million, down 49.98% from ¥3.77 million in the previous year[32]. - The total assets as of the end of the reporting period were approximately ¥8.47 billion, a decrease of 11.41% from ¥9.57 billion at the end of the previous year[32]. - The basic earnings per share for the first half of 2018 was -¥0.053, a decrease of 217.78% compared to ¥0.045 in the same period last year[33]. - The weighted average return on net assets for the first half of 2018 was -5.99%, a decrease of 8.90 percentage points compared to 2.91% in the same period last year[33]. - The company incurred a loss of CNY 69.54 million in the first half of 2018 due to high financial costs and adjustments in sales policies for high-margin military products[44]. - The company achieved a steel production of 318,800 tons and a steel product output of 260,200 tons, remaining stable compared to the same period last year[44]. Management and Governance - The company has identified significant internal control deficiencies affecting the recognition, recording, and reporting of inventory, fixed assets, and construction in progress, leading to substantial accounting errors[19]. - The company ensures that its financial independence is maintained, with a separate financial department and accounting system established[70]. - The company commits to not using its controlling position to interfere with operational decisions of its subsidiaries, ensuring independent business activities[70]. - The company will adhere to market principles and fair pricing in any necessary related transactions, ensuring no harm to other shareholders[70]. - The company has a commitment to uphold the independence of its board and management decisions without interference from its parent group[70]. - The company appointed Zhongzhun Accounting Firm as the auditor for the 2018 financial report, following a decision made at the 2017 annual shareholders' meeting[73]. - The company received an audit report for 2017 with a disclaimer of opinion from Zhongzhun Accounting Firm, indicating unresolved issues[74]. Related Party Transactions - The total amount of related party transactions reached 653,130,000 RMB, with a significant portion benefiting from the resources of the controlling shareholder, Northeast Special Steel Group[84]. - Northeast Special Steel Group's sales to related parties amounted to 70,630,000 RMB, with a price difference of 2.40% compared to market prices[83]. - The company’s related party transactions do not affect its independence, as stated in the report[84]. - The company has confirmed that related party debts do not have a significant impact on its operational results and financial status[87]. Community Engagement and Social Responsibility - The company plans to invest 45,000 RMB to build a 90 square meter cultural room in a poverty-stricken village as part of its poverty alleviation efforts[92]. - The company has established a three-year poverty alleviation plan in collaboration with local government agencies, focusing on improving the living conditions of impoverished households[91]. - The company has actively participated in the identification and support of impoverished households, ensuring accurate records and assistance measures are in place[91]. - The company invested a total of 4.5 million RMB in poverty alleviation projects, helping 86 registered impoverished individuals to escape poverty[96]. - The company has actively engaged in community activities, organizing over 10 village-level events each month to enhance cultural life for residents[95]. Environmental Responsibility - The company has established a comprehensive environmental monitoring system, ensuring compliance with pollution discharge standards[100]. - The company has installed pollution control devices across its production systems, achieving zero discharge of industrial wastewater[101]. - The company has developed emergency response plans for environmental incidents and conducts regular drills to ensure preparedness[103]. Restructuring and Future Plans - The restructuring plan for the controlling shareholder, Northeast Special Steel Group, is still in execution as of the report date, with a new controlling entity expected to be Ningbo Meishan Bonded Port Area Jincheng Shazhou Equity Investment Co., Ltd.[18]. - The company plans to address risks related to debt pressure, litigation risks, and the risk of continued operations due to two consecutive years of losses and negative net assets in the most recent year[62]. - The company aims to improve its asset status and reduce financial leverage with the support of national and local governments, controlling shareholder Northeast Special Steel Group, and creditors[62]. - The company will take measures to introduce funds and technology resources to actively resolve the current financial crisis and enhance sustainable development capabilities[62]. - The company is currently undergoing a restructuring process, with the investor Jincheng Shazhou expected to become the indirect controlling shareholder upon completion[154]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the going concern assumption, with no significant doubts about the company's ability to continue operations in the next 12 months[161]. - The company recognizes identifiable assets, liabilities, and contingent liabilities acquired in a business combination at fair value on the acquisition date[169]. - Goodwill is recognized when the acquisition cost exceeds the fair value of identifiable net assets acquired[169]. - The company assesses impairment of financial assets at the balance sheet date, with objective evidence including significant financial difficulties of the issuer or debtor[184].

Financial Performance - The company reported a total profit of -1,286,482,670.37 CNY and a net profit of -1,319,548,678.48 CNY for the year 2017, resulting in a cumulative undistributed profit of -2,612,237,312.69 CNY by the end of the year[6]. - The company's operating revenue for 2017 was CNY 4,984,304,965.53, representing a 6.56% increase compared to CNY 4,677,555,207.54 in 2016[33]. - The net profit attributable to shareholders of the listed company in 2017 was a loss of CNY 1,337,585,276.28, compared to a loss of CNY 44,102,024.07 in 2016[33]. - The net cash flow from operating activities for 2017 was CNY 671,135,719.31, a significant recovery from a negative cash flow of CNY 147,617,751.40 in 2016, marking an increase of 554.64%[33]. - The total assets at the end of 2017 were CNY 9,565,855,000.32, a decrease of 9.55% from CNY 10,575,927,359.24 at the end of 2016[34]. - The basic earnings per share for 2017 was -CNY 1.03, a decline from -CNY 0.03 in 2016, indicating a decrease of 3,300%[35]. - The weighted average return on net assets for 2017 was -292.10%, a decrease of 274.85 percentage points from -17.25% in 2016[35]. - The company reported a significant loss of 105.35 million yuan in the manufacturing sector, with total revenue of 90.69 million yuan[84]. - The company reported a net profit of CNY -1,319,548,678.48 for the year 2017, leading to a cumulative undistributed profit of CNY -2,612,237,312.69 by the end of 2017[100]. - The company proposed no profit distribution for the year 2017 due to the reported losses[101]. Bankruptcy and Restructuring - The company is facing bankruptcy restructuring as it has been unable to repay due debts and lacks the ability to pay, with a restructuring application filed by a creditor[15]. - The company has been issued a warning for delisting due to a negative net asset value and consecutive losses over the past two years, with its stock to be marked as *ST[9]. - The company is currently executing the restructuring plan of Northeast Special Steel Group, which was approved by the Dalian Intermediate People's Court in 2017[19]. - The company is at risk of bankruptcy reorganization due to an inability to repay debts, as indicated by a bankruptcy reorganization application filed against it[123]. - The controlling shareholder, Northeast Special Steel Group, is undergoing bankruptcy restructuring, with the restructuring plan approved by the Dalian Intermediate People's Court[127]. Internal Control and Audit Issues - The company's financial statements received an audit report with no opinion from the auditing firm due to the inability to obtain sufficient evidence[5]. - The company identified significant internal control deficiencies, leading to overstatements of inventory by 699,500,728.31 CNY, fixed assets by 841,589,283.99 CNY, and construction in progress by 296,958,490.00 CNY as of December 31, 2016[115]. - The company has initiated self-inspection and rectification efforts in response to the significant internal control deficiencies identified[120]. - The company is actively cooperating with regulatory investigations and is committed to addressing the identified financial reporting deficiencies[120]. - The company received an audit report from Zhongjun Accounting Firm, which issued an audit report with no opinion for the 2017 financial report[110]. Research and Development - The company’s R&D expenditure in 2017 amounted to CNY 182 million, focusing on high-end alloys and special steel products for aerospace and new energy applications[45]. - The company has 39 ongoing national research projects and has applied for 20 new projects under the "13th Five-Year Plan"[45]. - The company plans to invest more resources into the research and development of high-end special steel materials to meet the demands of high-end industries[87]. - The company plans to adjust product development directions and related equipment in line with a new strategic plan developed with its controlling shareholder[161]. - The company is committed to enhancing its competitive edge by investing in research and development[181]. Market and Product Strategy - The company is focusing on product structure optimization, enhancing service systems, and improving technical capabilities to maintain competitive advantages[49]. - The company plans to expand its market presence and invest in new technologies to enhance production efficiency[60]. - The company plans to achieve a steel production volume of 600,000 to 650,000 tons and a steel product output of 500,000 to 550,000 tons in 2018, with key products accounting for 350,000 to 400,000 tons[88]. - The projected revenue for 2018 is between 5.00 billion to 5.50 billion yuan, aiming to reverse the ongoing losses and achieve profitability[88]. - The company plans to expand its market presence in the automotive sector, focusing on high-performance steel products to meet increasing demand[79]. Social Responsibility and Community Engagement - The company plans to invest 132,000 in poverty alleviation projects in 2017[143]. - The company provided a total of 10.62 million RMB in funding for poverty alleviation efforts, helping 86 registered impoverished individuals to escape poverty[147]. - The company has established a comprehensive wastewater treatment facility with an investment of 42 million RMB, achieving near-zero wastewater discharge[152]. - The company is committed to enhancing its social responsibility by engaging in community service and environmental protection initiatives[150]. - The company received recognition for its poverty alleviation efforts, with a team member awarded as an advanced individual in poverty alleviation by the provincial government[148]. Related Party Transactions - The company reported significant related party transactions, including purchasing spare parts for approximately ¥15,047,753.4, which accounted for 0.30% of the total transaction amount[129]. - The company engaged in significant related party transactions, leveraging resources from its controlling shareholder to reduce operational costs and expand product range[132]. - The company has guaranteed 5 million RMB for its controlling shareholder, Northeast Special Steel Group, with the guarantee period from May 2014 to May 2016[137]. - The company’s related party debts do not have a significant impact on its overall financial position[135]. - The company has not reported any overdue guarantees or significant risks associated with its related party transactions[137]. Governance and Management - The company’s governance structure complies with relevant laws and regulations, ensuring equal rights for shareholders and diligent responsibilities for directors and supervisors[194]. - The company has established a performance evaluation mechanism for senior management, linking compensation to performance outcomes[199]. - The management team includes experienced professionals with extensive backgrounds in the steel industry, ensuring strong leadership[180]. - The company’s board of directors includes individuals with extensive experience in the steel industry, contributing to strategic decision-making[183]. - The total remuneration for the board members and senior management during the reporting period was not disclosed in the provided data[179].

Financial Performance - Operating revenue increased by 12.12% to CNY 1,557,813,521.94 year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 21,944,521.39, a decrease of 169.75% compared to the same period last year[6] - The company reported a net profit of -21,944,521.39, a decrease of 169.75% compared to the previous period, primarily due to raw material price increases outpacing sales price increases[12] - The net profit for Q1 2018 was a loss of CNY 21,944,521.39, compared to a profit of CNY 31,460,520.85 in Q1 2017, representing a decline of 169.8%[34] - Operating profit for Q1 2018 was a loss of CNY 21,983,379.31, compared to a profit of CNY 35,632,552.42 in the previous year[34] Cash Flow - Net cash flow from operating activities decreased by 300.05% to a negative CNY 134,314,159.86[6] - The net cash flow from operating activities was -134,314,159.86, reflecting a significant increase in raw material purchase expenditures[12] - Cash inflows from operating activities in Q1 2018 totaled CNY 1,694,722,311.10, compared to CNY 3,634,557,160.75 in Q1 2017, indicating a significant decrease[38] - The net cash flow from operating activities for Q1 2018 was -84,152,315.56 RMB, a decrease from 70,544,940.84 RMB in the same period last year[42] - Cash outflow from operating activities totaled 1,776,535,787.31 RMB, up from 1,570,330,534.48 RMB in the previous year, indicating a rise of about 13.1%[42] Assets and Liabilities - Total assets decreased by 4.50% to CNY 9,135,357,775.57 compared to the end of the previous year[6] - Total current assets decreased from CNY 5,131,672,863.63 at the beginning of the year to CNY 4,734,035,030.60, a decline of approximately 7.75%[26] - Total liabilities decreased from CNY 10,692,572,266.40 to CNY 10,284,019,563.04, a reduction of about 3.81%[28] - The company's equity attributable to shareholders decreased from CNY -1,126,717,266.08 to CNY -1,148,661,787.47, reflecting a decline in retained earnings[29] - Total current liabilities decreased from CNY 9,621,452,035.79 to CNY 9,280,632,490.26, a decrease of approximately 3.55%[28] Shareholder Information - The number of shareholders reached 118,613 at the end of the reporting period[9] - The basic and diluted earnings per share for Q1 2018 were both CNY -0.02, down from CNY 0.02 in the same quarter last year[35] Operational Challenges - The company has been warned of delisting risks due to significant internal control deficiencies leading to negative net assets and consecutive years of losses[13] - The company faces bankruptcy reorganization risks as it has received a reorganization application from a creditor due to inability to repay debts[18] - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[14] Accounting and Financial Adjustments - The company has identified significant accounting errors affecting total assets and net assets, with corrections impacting previous years' net profits[23] - The company plans to improve its asset situation and reduce financial leverage with support from its controlling shareholder and government[20] - The restructuring plan for the controlling shareholder, Northeast Special Steel Group, is still in progress, with new investors expected to gain control[22] Inventory and Material Costs - Inventory increased from CNY 1,238,222,941.81 to CNY 1,332,873,130.39, an increase of approximately 7.61%[27] - Engineering materials increased significantly by 12,528.76% to CNY 45,194,342.31 due to increased purchases[11] - The cash flow from operating activities was negatively impacted by increased payments for other operational activities, which rose to 287,376,863.94 RMB from 25,778,542.85 RMB year-over-year[42]

Financial Performance - Revenue for the first nine months reached CNY 4,121,419,347.39, an increase of 18.60% year-over-year[6] - Net profit attributable to shareholders decreased by 48.90% to CNY 67,465,318.93 compared to the same period last year[6] - Basic earnings per share fell by 48.92% to CNY 0.0519[8] - Total revenue for Q3 2017 was approximately 1.35 billion, an increase from 1.08 billion in the same quarter last year, representing a growth of 24.7%[38] - Operating profit for Q3 2017 reached approximately 10.75 million, compared to 33.04 million in the previous year, indicating a decrease of 67.5%[39] - Net profit attributable to shareholders for Q3 2017 was approximately 7.88 million, down from 28.02 million in the same quarter last year, a decline of 71.8%[39] - The total profit for the first three quarters was ¥81,081,846.20, down from ¥154,563,141.18 in the same period last year, reflecting a decrease of approximately 47.5%[42] - The total comprehensive income for the first three quarters was ¥68,150,782.67, down from ¥130,876,549.04 in the previous year, reflecting a decline of approximately 47.9%[44] Assets and Liabilities - Total assets increased by 2.17% to CNY 12,617,578,145.18 compared to the end of the previous year[6] - Current liabilities totaled CNY 9,576,378,430.86, down from CNY 9,884,439,845.29 in the previous year[32] - The company’s non-current liabilities totaled CNY 917,310,185.01, up from CNY 480,619,503.57 year-on-year[32] - The company’s total liabilities amounted to CNY 10,493,688,615.87, compared to CNY 10,365,059,348.86 in the previous year[32] - Long-term borrowings increased to CNY 658,280,000.00 from CNY 158,280,000.00 year-on-year, indicating a significant rise in financing[36] Cash Flow - Operating cash flow increased by 88.75% to CNY 34,346,524.61 for the first nine months compared to the same period last year[6] - The net cash flow from operating activities for the first nine months of 2017 was RMB 138,045,276.84, significantly higher than RMB 13,570,961.02 in the same period last year, marking an increase of 910.5%[46] - Total cash inflow from operating activities for the first nine months of 2017 reached RMB 5,094,833,318.03, up 33.0% from RMB 3,829,549,744.86 in the same period last year[46] - Cash outflow for financing activities in Q3 2017 was RMB 4,215,747,075.42, a decrease of 5.8% from RMB 4,476,841,766.95 in Q3 2016[47] Shareholder Information - The total number of shareholders reached 124,131 at the end of the reporting period[8] - The largest shareholder, Northeast Special Steel Group, holds 38.22% of the shares, with 496,876,444 shares frozen[8] - The company's equity attributable to shareholders rose to CNY 2,123,889,529.31 from CNY 1,985,024,210.38, reflecting a growth of approximately 7%[32] Expenses and Costs - The company reported total costs of approximately 1.14 billion for Q3 2017, up from 877.08 million in the same quarter last year, reflecting an increase of 30.1%[38] - The financial expenses for Q3 2017 were approximately 115.85 million, compared to 88.42 million in the previous year, an increase of 30.9%[38] - The financial expenses for the first three quarters totaled ¥276,494,221.28, an increase from ¥240,853,858.25, representing a rise of approximately 14.8%[42] - The company's management expenses for the first three quarters were ¥125,982,642.32, a decrease from ¥163,530,185.37, indicating a reduction of about 23%[42] Inventory and Receivables - The company's accounts receivable decreased to ¥1,318,212,550.52 from ¥1,113,792,530.69[30] - The company's inventory as of September 30, 2017, was ¥2,560,250,163.02, an increase from ¥2,438,664,929.28 at the beginning of the year[30] - Inventory levels rose to CNY 2,481,392,924.85, compared to CNY 2,367,324,034.49 at the start of the year, indicating a growth of about 4.8%[35]

Financial Performance - The company's operating revenue for the first half of 2017 was approximately ¥2.77 billion, representing a 15.86% increase compared to ¥2.39 billion in the same period last year[21]. - The net profit attributable to shareholders decreased by 42.70% to approximately ¥59.59 million, down from ¥104.00 million in the previous year[21]. - The net cash flow from operating activities fell by 71.34% to approximately ¥3.77 million, compared to ¥13.14 million in the same period last year[21]. - Basic earnings per share decreased by 43.75% to ¥0.045, down from ¥0.080 in the same period last year[22]. - The weighted average return on net assets decreased by 2.43 percentage points to 2.91% from 5.34% in the previous year[22]. - The company reported a total of 162,614,179.20 RMB in sales to similar businesses, representing 5.95% of the market price[55]. - The company achieved sales of 94,030,860.00 RMB, which is 3.44% of the market price for its precision alloy products[55]. - The company recorded a significant transaction of 107,118,150.29 RMB for purchasing steel billets, accounting for 5.62% of the market price[54]. - The company reported a total of 25,259,062.34 RMB in sales to similar businesses, representing 0.92% of the market price[55]. - The company reported a total of 2,772,958,408.33 RMB in total operating revenue for the first half of 2017, an increase of 15.9% compared to the previous year[99]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥12.47 billion, a 1.00% increase from ¥12.35 billion at the end of the previous year[21]. - The company's net assets attributable to shareholders increased by 3.00% to approximately ¥2.04 billion, compared to ¥1.99 billion at the end of the previous year[21]. - The total current assets as of June 30, 2017, amounted to RMB 6,939,662,535.67, an increase from RMB 6,764,063,260.76 at the beginning of the period, reflecting a growth of approximately 2.59%[91]. - Total liabilities as of June 30, 2017, were RMB 10,428,684,040.35, compared to RMB 10,365,059,348.86 at the beginning of the period, marking a slight increase of about 0.61%[93]. - The total equity attributable to the owners of the parent company increased to RMB 2,044,612,641.52 from RMB 1,985,024,210.38, reflecting a growth of approximately 2.99%[93]. Cash Flow - The company reported a significant increase in cash flow from financing activities, with a net increase of 211.12 million RMB, up 781.83%[33]. - Cash flow from financing activities generated a net inflow of CNY 211,117,740.99, compared to CNY 23,940,796.47 in the previous year[106]. - The cash flow from investment activities was -¥49,715,343.09, indicating a net outflow in this area[109]. - The net increase in cash and cash equivalents was ¥85,416,361, compared to a decrease of -¥103,893,452 in the previous period[109]. Operational Challenges - The company faced challenges from rising raw material prices, which outpaced sales price increases[36]. - The company is under pressure from rising raw material prices, which could impact profitability[42]. - The company has a high financing demand and is facing challenges related to financing costs and high debt ratios[43]. Research and Development - The company focused on high-end manufacturing, emphasizing products such as high-temperature alloys and high-strength steel[30]. - The company developed 122 new product varieties and expanded its market share through technical marketing efforts[31]. - Research and development expenses amounted to 140.31 million RMB, a slight increase of 2.25% from the previous year[33]. Corporate Governance and Compliance - The company has retained Zhongjun Accounting Firm for the 2017 financial audit, ensuring compliance with auditing standards[52]. - The company guarantees that Fushun Special Steel will have independent operational capabilities and assets to conduct business activities autonomously[51]. - The company has committed to minimizing ongoing related party transactions with Northeast Special Steel Group[51]. - The company will ensure that all related party transactions are disclosed in a timely manner according to legal and regulatory requirements[50]. Social Responsibility - The company has invested 5.5245 million in five poverty alleviation projects, helping 57 registered impoverished individuals to escape poverty[71]. - The company allocated 45,000 for the construction of a 1400-meter cement road to improve local infrastructure[69]. - The company plans to build 60 solar streetlights and 180 meters of river embankment to improve living conditions and disaster resilience in the village[65]. - The company is focused on enhancing the collective economy and increasing farmers' income through targeted poverty alleviation initiatives[66]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 125,986[78]. - The largest shareholder, Northeast Special Steel Group, holds 496,876,444 shares, representing 38.22% of the total shares[80]. - The company has not experienced any changes in its share capital structure during the reporting period[77]. Environmental and Regulatory Compliance - The company has implemented environmental protection measures, ensuring that emissions meet national standards[73]. - The accounting policy changes made in March 2017 do not affect the company's profit and loss[74].

| 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 11 | 抚顺特钢 2017 年第一季度报告 一、 重要提示 抚顺特钢 2017 年第一季度报告 公司代码：600399 公司简称：抚顺特钢 抚顺特殊钢股份有限公司 2017 年第一季度报告 1 / 21 二、 公司基本情况 2.1 主要财务数据 非经常性损益项目和金额 √适用 □不适用 单位：元 币种：人民币 | 项目 | 本期金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益 | 23,171.69 | | | 计入当期损益的政府补助，但与公司正常经营业务密切 | 1,998,658.32 | | | 相关，符合国家政策规定、按照一定标准定额或定量持 | | | 3 / 21 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 12,549,256,072.56 12,350,083,559.24 1.61 归属于上市公司股东的 净资产 2,016,484,731. ...

Financial Performance - The total revenue for 2016 was CNY 4,677,555,207.54, representing a 2.63% increase compared to CNY 4,557,693,236.93 in 2015[19] - The net profit attributable to shareholders for 2016 was CNY 111,237,324.17, a decrease of 43.46% from CNY 196,732,775.08 in 2015[19] - The basic earnings per share for 2016 was CNY 0.0856, down 43.42% from CNY 0.1513 in 2015[20] - The total profit for 2016 was CNY 122,008,521.40, a decrease from CNY 222,152,166.88 in the previous year, representing a decline of approximately 45%[176] - The net profit for 2016 was CNY 114,257,420.93, down from CNY 205,838,999.08 in 2015, indicating a decrease of about 44.5%[176] - The company reported a significant decrease in government subsidies recognized in profit or loss, down to 16 million from 121 million[49] Assets and Liabilities - The total assets at the end of 2016 were CNY 12,350,083,559.24, a decrease of 4.96% from CNY 12,995,086,592.53 in 2015[19] - The company’s total assets decreased by 32.28% to approximately 1.89 billion, primarily due to a reduction in cash reserves[51] - Total liabilities decreased from CNY 11,075,799,706.32 to CNY 10,365,059,348.86, a decline of approximately 6.4%[166] - Owner's equity increased from CNY 1,919,286,886.21 to CNY 1,985,024,210.38, reflecting a growth of about 3.43%[167] - The company’s short-term borrowings increased by 43.25% to approximately 487.87 million[51] Cash Flow - The net cash flow from operating activities for 2016 was CNY -147,617,751.40, a significant decrease compared to CNY 123,966,872.83 in 2015[19] - Cash inflow from operating activities totaled CNY 5,213,689,225.75, an increase from CNY 4,923,880,764.58 in 2015, marking a growth of about 5.9%[179] - The total cash outflow from investing activities was CNY 174,425,421.86, down from CNY 284,571,863.00 in 2015, reflecting a decrease of about 38.7%[179] Research and Development - Research and development expenses amounted to CNY 177.48 million, a slight decrease of 2.20% from CNY 181.46 million in the previous year[38] - The total number of R&D personnel was 1,011, making up 12.21% of the total workforce[47] - The company intends to invest RMB 200 million in R&D for high-end special steel materials in 2017[70] Market and Production - The company produced 471,400 tons of special steel and alloy materials during the reporting period[35] - The production volume of special steel increased by 6.63%, while sales volume rose by 12.07%, indicating a significant improvement in sales performance[42] - The company plans to achieve a steel production volume of 580,000 to 650,000 tons and a revenue target of RMB 4.8 billion to RMB 5.25 billion in 2017, with a net profit growth forecast of 10% to 30%[70] Strategic Initiatives - The company plans to expand its market presence and invest in new product development to enhance competitiveness in the steel industry[40] - The company is focusing on expanding its market presence through strategic partnerships and potential acquisitions in the special steel sector[133] - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase revenue by 500 million RMB annually[96] Corporate Governance - The company has established a complete and effective corporate governance structure in compliance with relevant laws and regulations[150] - The board of directors is committed to maintaining transparency and accountability in financial reporting and corporate governance practices[133] - The company has implemented a performance evaluation mechanism for senior management, linking compensation to performance outcomes[155] Social Responsibility - The company has been actively involved in poverty alleviation efforts, with a focus on building infrastructure such as 60 solar street lights and 180 meters of riverbank protection[100] - The company allocated over 30,000 RMB for visiting impoverished households, providing cash and essential goods to support the community during the Spring Festival[104] - In 2016, the company helped 87 registered impoverished individuals to escape poverty, with a total investment of 820,000 RMB in poverty alleviation efforts[110] Risks and Challenges - The company faced challenges due to rising prices of raw materials, which compressed profit margins[34] - The company reported a significant decline in cash flow, indicating potential liquidity challenges moving forward[19] - The company faces risks including potential bankruptcy restructuring of its controlling shareholder and a complex economic environment impacting its operations[71]

Financial Performance - Operating revenue for the first nine months was CNY 3,475,062,985.76, a decrease of 4.47% year-on-year[6] - Net profit attributable to shareholders decreased by 28.33% to CNY 132,017,450.73 for the first nine months[6] - The company reported a net profit margin of approximately 10.5% for the first nine months of 2016, compared to 11.1% in the same period last year[33] - Total operating revenue for Q3 2016 was approximately CNY 1,079.26 million, an increase from CNY 1,026.86 million in Q3 2015, representing a growth of 5.0%[34] - Operating profit for Q3 2016 reached CNY 31.12 million, compared to CNY 17.32 million in Q3 2015, marking an increase of 79.5%[34] - Net profit attributable to shareholders for Q3 2016 was CNY 28.02 million, down from CNY 53.37 million in Q3 2015, a decrease of 47.5%[35] - The total profit for Q3 2016 was CNY 33.04 million, down from CNY 63.12 million in Q3 2015, a decrease of 47.6%[34] - The company reported a total comprehensive income of CNY 28.02 million for Q3 2016, compared to CNY 53.37 million in Q3 2015, a decrease of 47.5%[35] Cash Flow - Cash flow from operating activities dropped significantly by 91.78% to CNY 18,196,506.06 compared to the same period last year[6] - Net cash flow from operating activities decreased by 91.78% from CNY 221.41 million to CNY 18.20 million[14] - Cash inflow from operating activities totaled CNY 3,764,651,077.26, an increase from CNY 3,642,450,810.00 in the previous year, reflecting a growth of approximately 3.3%[39] - Cash outflow for purchasing goods and services increased to CNY 2,877,078,861.35 from CNY 2,608,527,214.96, representing a rise of about 10.3%[39] - Cash inflow from financing activities reached CNY 5,254,440,539.08, up from CNY 3,432,296,097.37, indicating a growth of approximately 53.1%[40] - Net cash flow from financing activities improved to CNY 118,629,468.13 from a negative CNY 213,753,721.97 in the previous year[40] - Cash and cash equivalents at the end of the period were CNY 271,683,270.50, compared to CNY 40,678,580.94 at the end of the previous year[40] - The net cash flow from operating activities was CNY 13,570,961.02, down from CNY 230,165,737.05 in the same period last year[42] Assets and Liabilities - Total assets decreased by 2.98% to CNY 12,607,360,850.5 compared to the end of the previous year[6] - Current assets totaled CNY 7,051,368,929.23, down from CNY 7,366,172,557.83 at the beginning of the year[26] - Cash and cash equivalents were CNY 2,005,448,730.92, a decline from CNY 2,785,269,948.99 at the start of the year[26] - Total liabilities decreased to approximately ¥10.60 billion from ¥11.08 billion, a reduction of about 4.3%[32] - Total equity attributable to shareholders increased to approximately ¥2.01 billion from ¥1.92 billion, an increase of about 4.5%[32] - Long-term borrowings rose to approximately ¥175.33 million from ¥135.47 million, an increase of about 29.4%[32] - Non-current assets totaled approximately ¥6.10 billion, up from ¥5.70 billion, indicating a growth of about 7%[31] Shareholder Information - The number of shareholders reached 135,717 at the end of the reporting period[9] - The largest shareholder, Northeast Special Steel Group, holds 38.2% of the shares, with 496,876,444 shares[9] - The company’s major shareholder, Dongbei Special Steel Group, defaulted on debts, with 38.22% of shares frozen[16] Government Subsidies and Income - Government subsidies recognized in the current period amounted to CNY 1,998,658.32[8] - The company reported a decrease in government subsidies recognized, impacting other income[12] - The company reported a significant decrease in non-operating income, down 86.33% from CNY 94.90 million to CNY 12.97 million[14] Borrowings and Receivables - Short-term borrowings increased, while accounts receivable settled via acceptance bills also rose[12] - Short-term borrowings increased by 41.73% from CNY 3.41 billion to CNY 4.83 billion[13] - Accounts receivable rose by 33.21% from CNY 815.63 million to CNY 1.09 billion[13] - The company reported a significant increase in accounts receivable, reaching CNY 1,353,789,480.20 from CNY 1,124,099,290.93 at the beginning of the year[26] Expenses - Employee compensation payable surged by 409.04% from CNY 2.84 million to CNY 14.48 million[13] - Tax payable increased by 94.81% from CNY 14.33 million to CNY 27.92 million[13] - Total operating costs for Q3 2016 were CNY 1,049.59 million, slightly up from CNY 1,038.72 million in Q3 2015, an increase of 1.0%[34] - Sales expenses for Q3 2016 amounted to CNY 22.69 million, up from CNY 18.95 million in Q3 2015, an increase of 19.0%[34] - Management expenses for Q3 2016 were CNY 55.53 million, compared to CNY 52.67 million in Q3 2015, an increase of 5.4%[34] - Financial expenses for Q3 2016 totaled CNY 88.42 million, up from CNY 68.82 million in Q3 2015, an increase of 28.6%[34] Investment Activities - Investment activities generated a net cash outflow of CNY 133.20 million, a 32.79% increase in outflow compared to the previous year[14] - Total cash outflow for investment activities was CNY 605,177,801.33, compared to CNY 208,196,920.21 in the previous year, indicating an increase in investment spending[43]

Financial Performance - The company reported a revenue of CNY 2,393,407,212.47 for the first half of 2016, a decrease of 7.26% compared to CNY 2,580,636,670.95 in the same period last year[19]. - Net profit attributable to shareholders was CNY 103,997,622.30, down 20.51% from CNY 130,834,877.89 year-on-year[19]. - The company achieved operating revenue of CNY 2.34 billion, a decrease of 7.37% compared to the previous year[28]. - The net profit for the period was CNY 1.03 billion, with a total profit of CNY 1.22 billion[28]. - The basic earnings per share decreased to CNY 0.0800, down 20.48% from CNY 0.1006 in the same period last year[20]. - The net profit for the first half of 2016 was CNY 103,638,952.22, a decrease of 24.7% compared to CNY 137,497,915.75 in the same period last year[93]. - The company reported a total profit of CNY 122,351,725.36, down 22% from CNY 156,994,544.67 in the same period last year[93]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 13,140,850.26, a significant decline of 93.98% compared to CNY 218,122,345.24 in the previous year[19]. - Cash and cash equivalents decreased from CNY 2,785,269,948.99 to CNY 1,967,054,712.98, a reduction of about 29.4%[81]. - The total cash inflow from financing activities was 3,416,649,000.00 CNY, while the total cash outflow was 3,036,324,778.87 CNY, resulting in a net inflow of 380,324,221.13 CNY[100]. - The company incurred investment cash outflows of CNY 108,600,946.36, which is an increase from CNY 81,521,060.83 in the previous year[96]. - The total cash outflow for financing activities was 3,036,324,778.87 CNY, which included debt repayments and dividend distributions[100]. - The total cash and cash equivalents decreased by CNY 818,215,235.01, indicating a significant reduction in liquidity[189]. Assets and Liabilities - The company's total assets decreased by 5.04% to CNY 12,340,764,215.45 from CNY 12,995,086,592.53 at the end of the previous year[19]. - Total current assets decreased from CNY 7,366,172,557.83 to CNY 6,749,990,141.35, a decline of approximately 8.4%[81]. - Total liabilities decreased from CNY 11,075,799,706.32 to CNY 10,362,979,706.94, a reduction of approximately 6.4%[82]. - Total equity increased from CNY 1,919,286,886.21 to CNY 1,977,784,508.51, an increase of approximately 3.0%[83]. - The total assets decreased from CNY 12,995,086,592.53 to CNY 12,340,764,215.45, a reduction of about 5.1%[82]. Production and Inventory - The company achieved a steel production volume of 288,000 tons and steel inventory of 239,300 tons during the reporting period[23]. - The steel production volume was 288,000 tons, with steel inventory at 239,300 tons, falling short of initial production and revenue targets[28]. - The gross margin for the steel industry segment was 23.50%, an increase of 3.51 percentage points year-on-year[30]. Investments and R&D - Research and development expenses increased by 102.31% to CNY 137.23 million, reflecting a significant investment in innovation[28]. - The company implemented several technical transformation projects aimed at improving quality and reducing energy consumption without increasing overall production capacity[23]. Related Party Transactions - The company reported a significant increase in sales to related parties, with a total of 469,637,727.7 RMB during the reporting period[49]. - The company’s reliance on related party transactions does not affect its independence[46]. - The company is actively engaged in daily related transactions with its controlling shareholder and subsidiaries, forming the basis for related party debts[49]. Corporate Governance and Management - The board of directors has established specialized committees to oversee capital operations, internal control reports, financial information, and executive compensation plans[64]. - The company has implemented a performance evaluation mechanism for senior management, linking compensation to performance outcomes[64]. - The company ensures the independence of Fushun Special Steel's assets, finance, and operations, maintaining a clear separation from Northeast Special Steel Group[62]. Shareholder Information - The total number of shareholders reached 137,789 by the end of the reporting period[69]. - Northeast Special Steel Group holds 501,549,200 shares, representing 38.58% of the total shares[70]. - The company has 170,377,200 restricted shares due to equity division reform, which will be released on March 20, 2009[68]. Compliance and Regulations - The company has committed to timely, accurate, and complete information disclosure, adhering to legal requirements[62]. - Northeast Special Steel Group strictly complies with the regulations of the China Securities Regulatory Commission, ensuring no substantial competition harming the interests of Fushun Special Steel and its minority shareholders[57]. Financial Instruments and Accounting Policies - The company recognizes identifiable assets, liabilities, and contingent liabilities acquired in a business combination at fair value on the acquisition date[123]. - Financial instruments are classified based on investment purpose and economic substance, including trading financial assets and liabilities[131]. - The company maintains a clear policy for recognizing and measuring financial assets and liabilities, ensuring compliance with accounting standards[135].