Financial Performance - Net profit attributable to shareholders was CNY 3,795,859.41, a significant recovery from a loss of CNY 10,396,033.14 in the same period last year[10] - Operating revenue surged by 1,260.67% to CNY 77,307,792.62 from CNY 5,681,564.90 year-on-year[10] - Basic and diluted earnings per share improved to CNY 0.04 from a loss of CNY -0.13 in the same period last year[10] - The company reported a net profit of CNY 1,845,200 after deducting non-recurring gains and losses[15] - The company anticipates a profitable net profit for the year compared to the previous year[16] - Net profit for the current period was ¥4,763,483.33, compared to a net loss of ¥10,402,465.03 in the previous period, marking a significant improvement[29] - Earnings per share (EPS) for the current period was ¥0.04, recovering from a loss of ¥0.13 in the previous period[29] - The total comprehensive income for the current period is -1,551,187.86, an improvement from -10,338,146.10 in the previous period[32] Cash Flow - Net cash flow from operating activities was CNY 17,440,220.01, a turnaround from a negative cash flow of CNY -3,313,020.34 in the previous year[10] - Cash inflow from operating activities totaled 93,396,897.49, compared to 14,411,247.28 in the previous period, indicating a substantial increase[35] - Cash outflow from operating activities is 75,956,677.48, compared to 17,724,267.62 in the previous period, showing a higher expenditure[36] - The net cash flow from financing activities is 940,000.00, compared to -1,549,559.21 in the previous period, indicating a positive shift[37] - The company has reported a significant increase in cash flow from investment activities, with a net cash flow of 1,230,783.31 for the current period[37] Assets and Liabilities - Total assets increased by 2.81% to CNY 469,903,096.49 compared to the end of the previous year[10] - Total assets amounted to ¥469,903,096.49, up from ¥457,047,489.49 at the beginning of the period, reflecting an increase of approximately 2%[23] - Total liabilities increased to ¥184,150,630.93 from ¥175,992,145.38, representing a growth of about 7%[23] - The company's total equity rose to ¥285,752,465.56, compared to ¥281,055,344.11 at the beginning of the period, indicating an increase of approximately 2.5%[23] - The company has a total of ¥57,304,789.23 in accounts payable, which increased from ¥53,148,980.50, showing a rise of about 8%[23] - The company’s long-term borrowings increased to ¥29,940,000.00 from ¥29,000,000.00, reflecting a growth of approximately 3.2%[23] Operating Results - Operating costs for the current period were ¥74,186,104.84, compared to ¥16,329,294.93 in the previous period, indicating an increase of about 354%[28] - The company reported an operating profit of ¥3,121,687.78, a turnaround from an operating loss of ¥10,647,730.03 in the previous period[29] - Operating revenue for the current period is 5,681,564.90, compared to 10,075,556.39 in the previous period, indicating a significant decrease[32] - The net profit for the current period is -1,551,187.86, an improvement from -10,338,146.10 in the previous period, showing a reduction in losses[32] - Basic and diluted earnings per share are both -0.02, compared to -0.13 in the previous period, reflecting a decrease in loss per share[32] Shareholder Information - The total number of shareholders reached 8,893 as of the report date[12] - The company completed a significant asset restructuring in 2013, impacting the scope of consolidated financial statements[15]

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement from the Board of Directors, Board of Supervisors, and Management](index=2&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%684%E7%9C%9F%E5%AE%9E%E3%80%81%E5%87%86%E7%A1%AE%E3%80%81%E5%AE%8C%E6%95%B4%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The company's management guarantees the authenticity, accuracy, and completeness of the annual report and accepts legal responsibility - The Board of Directors, Board of Supervisors, and senior management guarantee the **authenticity, accuracy, and completeness** of the annual report[5](index=5&type=chunk) - **All directors** attended the Board of Directors meeting[6](index=6&type=chunk) - Sigma Certified Public Accountants (Special General Partnership) issued a **standard unqualified audit opinion**[7](index=7&type=chunk) [Profit Distribution Plan](index=2&type=section&id=%E4%BA%94%E3%80%81%E7%BB%8F%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AE%A1%E8%AE%AE%E7%9A%84%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88%E6%88%96%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%股%E6%9C%AC%E9%A2%84%E6%A1%88%EF%BC%9A%E4%B8%8D%E5%88%86%E7%BA%A2%E3%80%81%E4%B8%8D%E8%BD%AC%E5%A2%9E) The Board of Directors proposes no dividend distribution or capitalization of capital reserves for the reporting period - The profit distribution plan for the reporting period is **no dividend distribution and no capitalization of capital reserves**[8](index=8&type=chunk) - There was **no non-operating fund occupation** by the controlling shareholder or its related parties[8](index=8&type=chunk) - There were **no violations of prescribed decision-making procedures** for providing external guarantees[8](index=8&type=chunk) [Section 1 Definitions and Major Risk Warning](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89%E5%8F%8A%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) [I. Definitions](index=4&type=section&id=%E4%B8%80%E3%80%81%E9%87%8A%E4%B9%89) This section defines common terms used in the report to ensure clear understanding - "The Company," "this Company," "the listed company," and "Tianshan Dairy" all refer to **Xinjiang Tianshan Dairy Co, Ltd**[11](index=11&type=chunk) - "12th Agricultural Division State-owned Assets Management Co" refers to **Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd**[11](index=11&type=chunk) [II. Major Risk Warning](index=4&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company has detailed potential risk factors and corresponding strategies in Section 4, "Board of Directors' Report" - The company has detailed risk factors and countermeasures in **Section 4, "Board of Directors' Report"**[11](index=11&type=chunk) [Section 2 Company Profile](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) The company's full Chinese name is Xinjiang Tianshan Dairy Co, Ltd, with the short name Tianshan Dairy and legal representative Liu Rang - The company's Chinese name is **Xinjiang Tianshan Dairy Co, Ltd**, with the short name **Tianshan Dairy**[13](index=13&type=chunk) - The company's legal representative is **Liu Rang**[13](index=13&type=chunk) [II. Contact Persons and Methods](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Wang Qiaoling and the Securities Affairs Representative is Feng Zhiqiang - The Board Secretary is **Wang Qiaoling**, and the Securities Affairs Representative is **Feng Zhiqiang**[14](index=14&type=chunk) - The contact address is at **No 2702, Wuchang Highway, Economic and Technological Development Zone, Urumqi, Xinjiang**[14](index=14&type=chunk) [III. Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) The company's registered and office address is in Urumqi, Xinjiang, with the official website www.xjterun.com - Company registered and office address: **No 2702, Wuchang Highway, Economic and Technological Development Zone (Toutunhe District), Urumqi, Xinjiang**[15](index=15&type=chunk) - Company website: **www.xjterun.com**[15](index=15&type=chunk) [IV. Information Disclosure and Document Depository](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9) The company designates the "Shanghai Securities News" and www.sse.com.cn for information disclosure - The designated newspaper for information disclosure is the **"Shanghai Securities News"**[16](index=16&type=chunk) - The designated website for publishing the annual report is **www.sse.com.cn**[16](index=16&type=chunk) [V. Company Stock Profile](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) The company's A-shares are listed on the Shanghai Stock Exchange under the stock code 600419 - The company's stock type is **A-shares**, listed on the **Shanghai Stock Exchange**[17](index=17&type=chunk) - The stock short name is **"Tianshan Dairy"** and the stock code is **600419**; the former short name was "Xinjiang Tianhong"[17](index=17&type=chunk) [VI. Changes in Company Registration during the Reporting Period](index=5&type=section&id=%E5%85%AD%E3%80%81%E5%85%AC%E5%8F%B8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%B3%A8%E5%86%8C%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company completed a major asset restructuring, changing its main business from papermaking to dairy production and sales [(I) Company Registration Information](index=6&type=section&id=%28%E4%B8%80%29%20%E5%85%AC%E5%8F%B8%E6%B3%A8%E5%86%8C%E6%83%85%E5%86%B5) The company is registered in the Economic Development Zone of Urumqi, Xinjiang - Company registration location: **No 2702, Wuchang Highway, Economic Development Zone (Toutunhe), Urumqi, Xinjiang**[19](index=19&type=chunk) - Business license registration number: **650000040000482**[19](index=19&type=chunk) [(II) Index for Initial Company Registration Information](index=6&type=section&id=%28%E4%BA%8C%29%20%E5%85%AC%E5%8F%B8%E9%A6%96%E6%AC%A1%E6%B3%A8%E5%86%8C%E6%83%85%E5%86%B5%E7%9A%84%E7%9B%B8%E5%85%B3%E6%9F%A5%E8%AF%A2%E7%B4%A2%E5%BC%95) The company's registered capital changed from RMB 50.16 million at inception to RMB 86.39 million after restructuring - The company's predecessor, Xinjiang Tianhong, was established on December 30, 1999, with an initial registered capital of **RMB 50.16 million**[19](index=19&type=chunk) - After the A-share issuance in 2001, the registered capital increased to **RMB 80.16 million**[20](index=20&type=chunk) - After the major asset restructuring in 2013, the registered capital changed to **RMB 86.389415 million**[20](index=20&type=chunk) [(III) Changes in Main Business Since Listing](index=6&type=section&id=%28%E4%B8%89%29%20%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E4%BB%A5%E6%9D%A5%EF%BC%8C%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E7%9A%84%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) The company's main business shifted from papermaking to dairy-related operations after the 2013 major asset restructuring - At the time of its 2001 listing, the main business was **machine-made paper and chemical products**[21](index=21&type=chunk) - In 2005, it expanded into the **textile industry** by establishing a holding subsidiary and later acquired Huichang Bean Industry[21](index=21&type=chunk) - After the 2013 major asset restructuring, the main business changed to **feed processing, crop cultivation, organic fertilizer production, and dairy-related operations**[22](index=22&type=chunk) [(IV) Changes in Controlling Shareholders Since Listing](index=6&type=section&id=%28%E5%9B%9B%29%20%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E4%BB%A5%E6%9D%A5%2C%E5%8E%86%E6%AC%A1%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E7%9A%84%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The controlling shareholder changed from Xinjiang Shihezi Paper Mill to the 12th Agricultural Division State-owned Assets Management Co in 2013 - The initial controlling shareholder upon listing was **Xinjiang Shihezi Paper Mill**[24](index=24&type=chunk) - On May 28, 2013, the controlling shareholder changed to **Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd**, holding **41.9%** of the shares[24](index=24&type=chunk) [VII. Other Relevant Information](index=7&type=section&id=%E4%B8%83%E3%80%81%E5%85%B6%E4%BB%96%E6%9C%89%E5%85%B3%E8%B5%84%E6%96%99) The company appointed Sigma as its domestic accounting firm and Great Wall Securities as its sponsor institution - The company appointed **Sigma Certified Public Accountants (Special General Partnership)** as its domestic accounting firm[25](index=25&type=chunk) - The sponsor institution performing continuous supervision during the reporting period was **Great Wall Securities Co, Ltd**, with the supervision period from December 2013 to December 2016[25](index=25&type=chunk) - The financial advisor performing continuous supervision was **Orient Flower City Securities Co, Ltd**, with the supervision period from December 2013 to December 2014[25](index=25&type=chunk) [Section 3 Summary of Accounting Data and Financial Indicators](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E6%91%98%E8%A6%81) [I. Key Accounting Data and Financial Indicators for the Last Three Years](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%85%AC%E5%8F%B8%E8%BF%91%E4%B8%89%E5%B9%B4%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In 2013, the company's revenue decreased, but net profit turned positive, while total assets and net assets grew significantly due to restructuring 2013 Key Accounting Data (Unit: RMB Yuan) | Key Accounting Data | 2013 | 2012 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 87,481,839.52 | 160,928,121.50 | -45.64 | | Net Profit Attributable to Shareholders | 34,844,877.84 | -38,075,621.52 | N/A | | Net Cash Flow from Operating Activities | -11,659,816.58 | 283,351.68 | -4,214.96 | | Net Assets Attributable to Shareholders | 253,898,319.68 | 103,667,034.14 | 144.92 | | Total Assets | 457,047,489.49 | 227,026,110.84 | 101.32 | 2013 Key Financial Indicators | Key Financial Indicators | 2013 | 2012 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB Yuan/Share) | 0.40 | -0.47 | N/A | | Diluted Earnings Per Share (RMB Yuan/Share) | 0.40 | -0.47 | N/A | | Weighted Average Return on Equity (%) | 19.49 | -31.03 | N/A | [(I) Key Accounting Data](index=8&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE) Operating revenue decreased by 45.64% YoY, while net profit turned positive, and total assets and net assets grew significantly due to restructuring - In 2013, operating revenue was **RMB 87,481,839.52**, a year-on-year decrease of **45.64%**[26](index=26&type=chunk) - In 2013, net profit attributable to shareholders was **RMB 34,844,877.84**, achieving a **turnaround from loss to profit**[26](index=26&type=chunk) - At the end of 2013, total assets were **RMB 457,047,489.49**, a year-on-year increase of **101.32%**; net assets attributable to shareholders were **RMB 253,898,319.68**, a year-on-year increase of **144.92%**[26](index=26&type=chunk) [(II) Key Financial Data](index=8&type=section&id=%28%E4%BA%8C%29%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In 2013, basic earnings per share and weighted average ROE both turned positive, reflecting a significant improvement in profitability - In 2013, basic earnings per share was **RMB 0.40/share**, a significant improvement from **-RMB 0.47/share** in 2012[26](index=26&type=chunk) - In 2013, the weighted average return on equity was **19.49%**, a substantial increase from **-31.03%** in 2012[26](index=26&type=chunk) [II. Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E4%BA%8C%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) In 2013, non-recurring profit and loss totaled RMB 70.72 million, significantly contributing to net profit 2013 Non-recurring Profit and Loss Items and Amounts (Unit: RMB Yuan) | Non-recurring Profit and Loss Item | 2013 Amount | 2012 Amount | 2011 Amount | | :--- | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 56,321,309.99 | -1,163,210.50 | -1,924.52 | | Government Grants Included in Current Profit/Loss | 7,526,228.86 | 4,640,111.00 | 21,192,586.67 | | Gain/Loss on Non-monetary Asset Exchange | 8,022,808.82 | | | | Total | 70,720,058.90 | 2,512,659.30 | 20,801,158.33 | - In 2013, total non-recurring profit and loss amounted to **RMB 70,720,058.90**, primarily from gains on disposal of non-current assets and government grants[28](index=28&type=chunk)[29](index=29&type=chunk) [Section 4 Board of Directors' Report](index=10&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%8A%A5%E5%91%8A) [I. Discussion and Analysis of the Company's Operating Performance](index=10&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In 2013, the company successfully restructured its main business from papermaking to dairy, which contributed significantly to revenue in the last two months - In 2013, the company completed a **major asset restructuring**, shifting its main business from papermaking to the dairy industry[31](index=31&type=chunk)[32](index=32&type=chunk) - The dairy business generated **RMB 73.7475 million in revenue** and **RMB 35.8706 million in net profit** in November-December[32](index=32&type=chunk) - The company's operating revenue **decreased by 45.64%** year-on-year, mainly due to the shutdown of Xinjiang Tianhong's main business[32](index=32&type=chunk) [(I) Main Business Analysis](index=10&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Revenue and operating costs decreased due to business transformation, while sales and administrative expenses increased Changes in Key Items of Income Statement and Cash Flow Statement (Unit: RMB Yuan) | Item | Current Period | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 87,481,839.52 | 160,928,121.50 | -45.64 | | Operating Cost | 65,922,453.13 | 156,346,051.39 | -57.84 | | Selling Expenses | 9,858,646.66 | 5,812,090.45 | 69.62 | | Administrative Expenses | 39,239,265.60 | 30,017,438.04 | 30.72 | | Net Cash Flow from Operating Activities | -11,659,816.58 | 283,351.68 | -4,214.96 | | Net Cash Flow from Investing Activities | 65,265,824.24 | -524,942.80 | 12,532.94 | | R&D Expenditure | 68,769.00 | 2,427,379.55 | -97.17 | - Operating revenue **decreased by 45.64%** YoY, and operating cost **decreased by 57.84%** YoY, mainly due to the business transformation[33](index=33&type=chunk) - Selling expenses and administrative expenses **increased by 69.62% and 30.72%** respectively, while R&D expenditure **decreased significantly by 97.17%**[33](index=33&type=chunk) [(II) Analysis of Operations by Industry, Product, or Region](index=13&type=section&id=%28%E4%BA%8C%29%20%E8%A1%8C%E4%B8%9A%E3%80%81%E4%BA%A7%E5%93%81%E6%88%96%E5%9C%B0%E5%8C%BA%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) The main business has shifted to animal husbandry and dairy manufacturing, with dairy products showing high gross profit margins Main Business by Industry (Unit: RMB Yuan) | Industry Segment | Operating Revenue | Operating Cost | Gross Margin (%) | Revenue YoY Change (%) | Cost YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Animal Husbandry | 62,500.00 | 72,697.43 | -16.32 | 100 | 100 | | Liquid Milk & Dairy Manufacturing | 69,616,612.60 | 53,553,763.86 | 23.07 | 100 | 100 | | Bovine Colostrum Products | 4,068,339.25 | 1,179,833.72 | 71.00 | 100 | 100 | | Papermaking | 5,016,612.63 | 5,336,514.37 | -6.38 | -93.56 | -93.05 | | Shop Leasing | 4,400,090.89 | 1,386,417.52 | 68.49 | -93.06 | -97.75 | - **Liquid milk and dairy manufacturing** has become the main source of revenue, with a gross margin of **23.07%**[41](index=41&type=chunk) - Revenue and costs from the **papermaking industry decreased by over 93%** YoY, and shop leasing revenue and costs also declined significantly[42](index=42&type=chunk) [(III) Analysis of Assets and Liabilities](index=14&type=section&id=%28%E4%B8%89%29%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) Asset restructuring led to significant increases in cash, receivables, and fixed assets, alongside a shift from short-term to long-term debt Changes in Assets and Liabilities (Unit: RMB Yuan) | Item | Current Period-End | % of Total Assets | Prior Period-End | % of Total Assets | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 78,667,148.68 | 17.04 | 13,114,157.97 | 5.78 | 499.86 | | Accounts Receivable | 28,095,435.26 | 6.09 | 11,475,826.23 | 5.05 | 144.82 | | Fixed Assets | 251,101,278.69 | 54.39 | 134,210,941.54 | 59.12 | 87.09 | | Short-term Borrowings | | 0.00 | 48,189,338.09 | 21.23 | -100.00 | | Long-term Borrowings | 29,000,000.00 | 6.28 | | 0.00 | | - Cash and cash equivalents at period-end **increased by 499.86%**, accounts receivable **increased by 144.82%**, and fixed assets **increased by 87.09%**[42](index=42&type=chunk)[43](index=43&type=chunk) - Short-term borrowings **decreased by 100%**, while **RMB 29 million in new long-term borrowings** were added, indicating a shift towards long-term financing[43](index=43&type=chunk) [(IV) Core Competitiveness Analysis](index=15&type=section&id=%28%E5%9B%9B%29%20%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its regional advantages, advanced equipment, established brands, and innovative product development - The company possesses **unique regional advantages in Xinjiang**, with abundant forage resources and high-quality milk sources[43](index=43&type=chunk)[44](index=44&type=chunk) - The company utilizes **world-class dairy production lines and processes** from suppliers like Niro of Denmark, GEA of Germany, and Tetra Pak of Sweden[44](index=44&type=chunk) - It owns well-known brands such as **"Gairui," "Jiali," and "Tianshan,"** with "Gairui" being a famous brand in Xinjiang[45](index=45&type=chunk) - The company independently developed the patented product **"Milk Beer,"** which has a long shelf life and broad market reach[45](index=45&type=chunk) - As the **dairy industry integration platform for the XPCC**, it receives policy support to consolidate high-quality dairy resources[45](index=45&type=chunk)[46](index=46&type=chunk) [(V) Investment Status Analysis](index=16&type=section&id=%28%E4%BA%94%29%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no external equity investments during the period, and its main subsidiaries performed well in the dairy sector - The company had **no external equity investments, wealth management products, derivative investments, or use of raised funds** during the reporting period[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) Financial Data of Major Subsidiaries (Unit: RMB 10,000) | Company Name | Business Nature | Shareholding (%) | Registered Capital | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Tianshan Biotechnology Co, Ltd | Production, Processing, Sales | 96.80 | 21770 | 39,806.86 | 23,762.14 | 18,398.67 | 2,050.77 | | Shawan Tianshan Biotechnology Co, Ltd | Animal Husbandry | 90.00 | 3000 | 5,311.43 | 2,075.98 | 1,260.96 | 546.58 | | Shawan Gairui Dairy Co, Ltd | Production, Processing, Sales | 65.00 | 2734 | 5,683.77 | 4,496.51 | 12,737.44 | 858.00 | [II. Discussion and Analysis of Future Development](index=17&type=section&id=%E4%BA%8C%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) The company aims to become the largest dairy enterprise in Xinjiang and the Northwest within 3-5 years by leveraging regional advantages and policy support - The company faces risks from **intense competition and changing market demand** in the domestic dairy industry[50](index=50&type=chunk)[54](index=54&type=chunk) - The company will leverage its **regional, milk source, equipment, brand, and new product advantages**, supported by the XPCC's dairy industry integration platform[51](index=51&type=chunk) - The strategic goal is to become the **largest dairy enterprise in Xinjiang and the Northwest** and a well-known domestic brand within **3-5 years**[52](index=52&type=chunk) - The 2014 operating target is to achieve a production and sales volume of **51,800 tons** and a total operating revenue of **RMB 362 million**[53](index=53&type=chunk) [(I) Industry Competition and Development Trends](index=17&type=section&id=%28%E4%B8%80%29%20%E8%A1%8C%E4%B8%9A%E7%AB%9E%E4%BA%89%E6%A0%BC%E5%B1%80%E5%92%8C%E5%8F%91%E5%B1%95%E8%B6%8B%E5%8A%BF) The domestic dairy industry faces intense competition and consolidation, but consumption is expected to grow - The domestic dairy industry is facing **policy-driven consolidation and market reshuffling**, leading to more intense competition[50](index=50&type=chunk) - In the Xinjiang region, the company's main competitors include national enterprises like **Yili, Mengniu, and Bright Dairy**, as well as regional players[51](index=51&type=chunk) - Dairy consumption is expected to **continue growing in 2014**, driven by rising incomes, urbanization, and the two-child policy[51](index=51&type=chunk) [(II) Company Development Strategy](index=17&type=section&id=%28%E4%BA%8C%29%20%E5%85%AC%E5%8F%B8%E5%8F%91%E5%B1%95%E6%88%98%E7%95%A5) The company's strategy focuses on resource integration, capacity expansion, and marketing innovation to become a regional leader - The development strategy focuses on **integrating XPCC's dairy resources, expanding production capacity, and innovating marketing**, aiming to become the largest dairy enterprise in Xinjiang and the Northwest within 3-5 years[51](index=51&type=chunk)[52](index=52&type=chunk) - The strategy includes extending into the **upstream (forage and farming) and downstream (market network) segments** of the dairy industry chain[52](index=52&type=chunk) - Expansion will be achieved through **technical upgrades, enhancing brand influence, and capital market financing**[52](index=52&type=chunk) [(III) Business Plan](index=17&type=section&id=%28%E4%B8%89%29%20%E7%BB%8F%E8%90%A5%E8%AE%A1%E5%88%92) The company's 2014 operating target is to achieve a production and sales volume of 51,800 tons and revenue of RMB 362 million - 2014 operating target: achieve a production and sales volume of **51,800 tons** for various products[53](index=53&type=chunk) - 2014 operating target: achieve a total operating revenue of **RMB 362 million**[53](index=53&type=chunk) [(IV) Potential Risks](index=18&type=section&id=%28%E5%9B%9B%29%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from intensified industry competition and changes in market demand - **Industry competition risk**: Intense market competition and the entry of external brands may lead to a **decrease in the company's market share**[54](index=54&type=chunk) - **Market risk**: Failure to promptly adjust the product structure to meet changing consumer demands could **adversely affect product sales**[54](index=54&type=chunk) [III. Board's Explanation on "Non-standard Audit Report"](index=18&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company confirms no "non-standard audit report" was issued for the reporting period - The Board of Directors and Board of Supervisors state that **no "non-standard audit report" was issued** by the accounting firm[55](index=55&type=chunk) - There were **no changes in accounting policies, estimates, or methods** during the reporting period[55](index=55&type=chunk) - There were **no material prior period error corrections** during the reporting period[55](index=55&type=chunk) [IV. Profit Distribution or Capital Reserve Capitalization Plan](index=18&type=section&id=%E5%9B%9B%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) Due to accumulated losses, the company will not distribute profits or capitalize capital reserves for 2013 - The company had **uncovered losses from 2010-2012** and did not distribute profits or capitalize capital reserves[55](index=55&type=chunk) - Although net profit attributable to the parent company was **RMB 34,844,877.84** in 2013, the undistributed profit at year-end was **-RMB 130,651,973.62**[57](index=57&type=chunk) - In accordance with the Articles of Association, there will be **no profit distribution or capitalization of capital reserves** for 2013[57](index=57&type=chunk) [Section 5 Important Matters](index=20&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [I. Major Litigation, Arbitration, and Media Scrutiny](index=20&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E5%92%8C%E5%AA%92%E4%BD%93%E6%99%AE%E9%81%8D%E8%B4%A8%E7%96%91%E7%9A%84%E4%BA%8B%E9%A1%B9) The company had no major litigation, arbitration, or media scrutiny during the reporting period - The company had **no major litigation, arbitration, or media scrutiny** this year[59](index=59&type=chunk) [II. Fund Occupation and Debt Clearing Progress](index=20&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B5%84%E9%87%91%E8%A2%AB%E5%8D%A0%E7%94%A8%E6%83%85%E5%86%B5%E5%8F%8A%E6%B8%85%E6%AC%A0%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) The company had no non-operating fund occupation by its controlling shareholder or related parties - The company had **no fund occupation** this year[59](index=59&type=chunk) [III. Bankruptcy and Reorganization Matters](index=20&type=section&id=%E4%B8%89%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy or reorganization matters during the reporting period - The company had **no bankruptcy or reorganization matters** this year[59](index=59&type=chunk) [IV. Asset Transactions and Mergers](index=20&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E4%BA%A4%E6%98%93%E3%80%81%E4%BC%81%E4%B8%9A%E5%90%88%E5%B9%B6%E4%BA%8B%E9%A1%B9) The company completed a major asset restructuring but had no other asset transactions or mergers - The company had **no other asset transactions or mergers** this year[59](index=59&type=chunk) [V. Equity Incentive Plans and Their Impact](index=20&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company had no equity incentive plans during the reporting period - The company had **no equity incentive plans** this year[59](index=59&type=chunk) [VI. Major Related-Party Transactions](index=20&type=section&id=%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no major related-party transactions during the reporting period - The company had **no major related-party transactions** this year[59](index=59&type=chunk) [VII. Major Contracts and Their Performance](index=20&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no major contracts such as trusteeships, contracting, leasing, or guarantees - The company had **no major contracts** for trusteeship, contracting, leasing, guarantees, or other matters this year[59](index=59&type=chunk) [VIII. Performance of Commitments](index=20&type=section&id=%E5%85%AB%E3%80%81%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 controlling shareholder and its concerted parties have made and are strictly fulfilling long-term commitments to protect the company's interests - The 12th Agricultural Division State-owned Assets Management Co has committed to **maintaining the company's independence** and not harming its interests[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The 12th Agricultural Division State-owned Assets Management Co and Shi Bo have committed that shares acquired through the asset purchase will **not be transferred or traded for 36 months** from the issuance date[63](index=63&type=chunk) - The 12th Agricultural Division State-owned Assets Management Co has committed to **avoiding competition** with Tianshan Dairy and granting it priority rights for development and acquisition[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - The 12th Agricultural Division State-owned Assets Management Co has committed to **regulating related-party transactions** to ensure fairness and fulfill disclosure obligations[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [IX. Appointment and Dismissal of Accounting Firms](index=34&type=section&id=%E4%B9%9D%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company changed its accounting firm from Lixin to Sigma due to the major asset restructuring - The company changed its accounting firm from **Lixin Certified Public Accountants (Special General Partnership)** to **Sigma Certified Public Accountants (Special General Partnership)** during the reporting period[74](index=74&type=chunk) - The reason for the change was the company's **implementation of a major asset restructuring**[74](index=74&type=chunk) Accounting Firm Appointment Details (Unit: RMB 10,000) | | Former Firm | Current Firm | | :--- | :--- | :--- | | Domestic Accounting Firm Name | Lixin Certified Public Accountants (Special General Partnership) | Sigma Certified Public Accountants (Special General Partnership) | | Domestic Accounting Firm Remuneration | 50 | 45 | | Domestic Accounting Firm Audit Years | 6 | 1 | [X. Penalties and Rectifications Concerning the Company and Its Stakeholders](index=34&type=section&id=%E5%8D%81%E3%80%81%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E3%80%81%E6%8C%81%E6%9C%89%205%25%E4%BB%A5%E4%B8%8A%E8%82%A1%E4%BB%BD%E7%9A%84%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) No penalties or rectifications were imposed on the company or its key stakeholders during the reporting period - During the year, the company and its directors, supervisors, senior management, major shareholders, actual controller, and acquirers were **not subject to any investigation, administrative penalty, or public censure** by the CSRC or stock exchanges[74](index=74&type=chunk) [XI. Explanation of Other Major Matters](index=34&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no other major matters to report for the period - The company had **no other major matters** to report during the period[74](index=74&type=chunk) [Section 6 Changes in Share Capital and Shareholders](index=35&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [I. Changes in Share Capital](index=35&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total share capital increased to 86,389,415 shares following the issuance of new shares for a major asset restructuring Statement of Changes in Share Capital (Unit: Shares) | | Before Change | % | Change (+, -) New Issuance | After Change | % | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | | | 6,229,415 | 6,229,415 | 7.21 | | II. Unrestricted Circulating Shares | 80,160,000 | 100 | | 80,160,000 | 92.79 | | III. Total Shares | 80,160,000 | 100 | 6,229,415 | 86,389,415 | 100 | - The company's total share capital increased from **80,160,000 shares to 86,389,415 shares**, with an addition of **6,229,415 new shares**[77](index=77&type=chunk) - The newly issued shares are all **restricted shares**, primarily subscribed by the 12th Agricultural Division State-owned Assets Management Co, Shi Bo, and Xie Ping[77](index=77&type=chunk)[81](index=81&type=chunk) [1. Statement of Changes in Share Capital](index=35&type=section&id=1%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E8%A1%A8) The issuance of new shares increased restricted shares by 6,229,415, raising the total share capital Statement of Changes in Share Capital (Unit: Shares) | | Before Change Quantity | Before Change Ratio (%) | Change (+, -) New Issuance | After Change Quantity | After Change Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | | | 6,229,415 | 6,229,415 | 7.21 | | II. Unrestricted Circulating Shares | 80,160,000 | 100 | | 80,160,000 | 92.79 | | III. Total Shares | 80,160,000 | 100 | 6,229,415 | 86,389,415 | 100 | [2. Explanation of Changes in Share Capital](index=35&type=section&id=2%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company issued 6,229,415 new shares at RMB 11.06 per share to acquire a 96.80% stake in Tianshan Technology - The company acquired a **96.80% stake in Tianshan Technology** through a major asset restructuring by issuing shares[78](index=78&type=chunk) - A total of **6,229,415 shares** were issued to the 12th Agricultural Division State-owned Assets Management Co, Shi Bo, and Xie Ping at an issue price of **RMB 11.06 per share**[80](index=80&type=chunk)[81](index=81&type=chunk) - The issuance was **approved by the CSRC**, and the asset transfer and share registration procedures have been completed[79](index=79&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [(II) Changes in Restricted Shares](index=38&type=section&id=%28%E4%BA%8C%29%20%E9%99%90%E5%94%AE%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) New restricted shares were issued to three parties with lock-up periods of 12 or 36 months Changes in Restricted Shares (Unit: Shares) | Shareholder Name | Restricted Shares at Start of Year | Increase in Restricted Shares This Year | Restricted Shares at End of Year | Reason for Restriction | Lock-up Expiry Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd | | 4,551,774 | 4,551,774 | Commitment | November 23, 2016 | | Shi Bo | | 1,626,804 | 1,626,804 | Commitment | November 23, 2016 | | Xie Ping | | 50,837 | 50,837 | Commitment | November 23, 2014 | | Total | | 6,229,415 | 6,229,415 | / | / | - The restricted shares for the 12th Agricultural Division State-owned Assets Management Co and Shi Bo have a **36-month lock-up period**, while Xie Ping's is **12 months**[82](index=82&type=chunk) [II. Securities Issuance and Listing](index=38&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company issued 6,229,415 A-shares at RMB 11.06 per share to acquire assets, resulting in changes to its share capital and financial structure Securities Issuance in the Last 3 Years (Unit: Shares) | Type of Security | Issuance Date | Issue Price (or Rate) | Quantity Issued | Listing Date | Approved Trading Quantity | Trading Termination Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | A-Shares | November 22, 2013 | 11.06 | 6,229,415 | November 23, 2016 | | | - This issuance increased the company's total share capital from **80,160,000 shares to 86,389,415 shares**[89](index=89&type=chunk) - The shareholding of the 12th Agricultural Division State-owned Assets Management Co increased from **41.90% to 44.15%**[89](index=89&type=chunk) [(I) Securities Issuance in the Last 3 Years](index=38&type=section&id=%28%E4%B8%80%29%20%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%BF%91%203%20%E5%B9%B4%E5%8E%86%E6%AC%A1%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E6%83%85%E5%86%B5) The company conducted a non-public offering of 6,229,415 A-shares to acquire assets in November 2013 - On November 22, 2013, the company issued **6,229,415 A-shares** at an issue price of **RMB 11.06 per share**[87](index=87&type=chunk) - This issuance was intended to **strengthen the listed company's main business** and improve its quality and profitability[87](index=87&type=chunk) [(II) Changes in Total Shares, Shareholder Structure, and Financial Structure](index=39&type=section&id=%28%E4%BA%8C%29%20%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E6%80%BB%E6%95%B0%E5%8F%8A%E8%82%A1%E4%B8%9C%E7%BB%93%E6%9E%84%E5%8F%98%E5%8A%A8%E5%8F%8A%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E5%92%8C%E8%B4%9F%E5%80%BA%E7%BB%93%E6%9E%84%E7%9A%84%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The share issuance increased total share capital and the controlling shareholder's stake, significantly impacting the company's financial structure Shareholding Structure Change Before and After Issuance (Unit: Shares) | Shareholder Name | Shares Before Issuance | % Before | Shares After Issuance | % After | | :--- | :--- | :--- | :--- | :--- | | 12th Agricultural Division State-owned Assets Management Co | 33,590,432 | 41.90 | 38,142,206 | 44.15% | | Shi Bo | -- | -- | 1,626,804 | 1.88% | | Xie Ping | -- | -- | 50,837 | 0.06% | | Other Shareholders | 46,569,568 | 58.10 | 46,569,568 | 53.91% | | Total Share Capital | 80,160,000 | 100.00 | 86,389,415 | 100.00 | Financial Data Comparison for H1 2013 (Unit: RMB Yuan) | Accounting Data | Listed Company Audited Data (2013/6/30) | Pro-forma Audited Data (2013/6/30) | | :--- | :--- | :--- | | Total Assets | 196,755,697.77 | 451,339,966.92 | | Total Liabilities | 117,114,189.48 | 199,763,370.91 | | Total Equity | 79,641,508.29 | 251,576,596.01 | | Equity Attributable to Parent Company | 79,737,570.91 | 225,551,645.31 | [III. Shareholders and Actual Controller](index=39&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) The company's controlling shareholder is the 12th Agricultural Division State-owned Assets Management Co, and the actual controller is the 12th Division SASAC of XPCC - As of the end of the reporting period, the total number of shareholders was **9,560**[91](index=91&type=chunk) - The controlling shareholder is **Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd**, with a **44.15%** stake[91](index=91&type=chunk) - The actual controller is the **State-owned Assets Supervision and Administration Commission of the 12th Division of Xinjiang Production and Construction Corps**[96](index=96&type=chunk)[99](index=99&type=chunk) [(I) Number of Shareholders and Shareholdings](index=39&type=section&id=%28%E4%B8%80%29%20%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%92%8C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) The company had 9,560 shareholders at year-end, with the 12th Agricultural Division State-owned Assets Management Co being the largest - The total number of shareholders at the end of the reporting period was **9,560**[91](index=91&type=chunk) Top Ten Shareholders (Unit: Shares) | Shareholder Name | Nature | Shareholding (%) | Total Shares | Change During Period | Restricted Shares | Pledged or Frozen Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd | State-owned Legal Entity | 44.15 | 38,142,206 | 4,551,774 | 4,551,774 | None | | Qingdao Yingtu Petroleum Co, Ltd | Domestic Non-state-owned Legal Entity | 2.48 | 2,140,518 | | | Frozen 2,140,518 | | Shi Bo | Domestic Natural Person | 1.88 | 1,626,804 | 1,626,804 | 1,626,804 | Unknown | - The 12th Agricultural Division State-owned Assets Management Co and Shi Bo are **parties acting in concert**[92](index=92&type=chunk) [(II) Controlling Shareholder Information](index=42&type=section&id=%28%E4%BA%8C%29%20%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) The controlling shareholder is a state-owned asset management company established in 2002 with a registered capital of RMB 245.43 million - Controlling shareholder name: **Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd**[97](index=97&type=chunk) - Date of establishment: **July 24, 2002**, with a registered capital of **RMB 245.43 million**[97](index=97&type=chunk) - Main business activities: **State-owned asset management and trusteeship; asset acquisition, disposal, and related industrial investments; property and land leasing**[97](index=97&type=chunk) [(III) Actual Controller Information](index=42&type=section&id=%28%E4%B8%89%29%20%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) The actual controller is the 12th Division SASAC of XPCC, which oversees a diverse portfolio of state-owned assets - The company's actual controller is the **State-owned Assets Supervision and Administration Commission of the 12th Division of Xinjiang Production and Construction Corps**[96](index=96&type=chunk)[99](index=99&type=chunk) - The 12th Agricultural Division State-owned Assets Management Co's business covers multiple sectors, including **dairy, mining, building materials, transportation, electronics, and finance**[100](index=100&type=chunk) [V. Other Corporate Shareholders with over 10% Shareholding](index=43&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8C%81%E8%82%A1%E5%9C%A8%E7%99%BE%E5%88%86%E4%B9%8B%E5%8D%81%E4%BB%A5%E4%B8%8A%E7%9A%84%E6%B3%95%E4%BA%BA%E8%82%A1%E4%B8%9C) The company has no other corporate shareholders holding more than 10% of its shares - As of the end of this reporting period, the company has **no other corporate shareholders with a stake of 10% or more**[100](index=100&type=chunk) [Section 7 Directors, Supervisors, Senior Management, and Employees](index=44&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) [I. Shareholding Changes and Remuneration](index=44&type=section&id=%E4%B8%80%E3%80%81%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8%E5%8F%8A%E6%8A%A5%E9%85%AC%E6%83%85%E5%86%B5) The company underwent a change in management, with Liu Rang appointed as the new Chairman and total remuneration for all key personnel amounting to RMB 998,100 - The company held **elections for the Board of Directors and Board of Supervisors** on December 9, 2013[110](index=110&type=chunk) - The new Chairman is **Liu Rang**, and the new General Manager is **Hu Gang**[106](index=106&type=chunk) - The total actual remuneration received by all directors, supervisors, and senior management at the end of the reporting period was **RMB 998,100**[114](index=114&type=chunk) [II. Incumbent and Former Directors, Supervisors, and Senior Management](index=47&type=section&id=%E4%BA%8C%E3%80%81%E7%8E%B0%E4%BB%BB%E5%8F%8A%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%A6%BB%E4%BB%BB%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E7%9A%84%E4%BB%BB%E8%81%8C%E6%83%85%E5%86%B5) Some key personnel hold concurrent positions in shareholder units or related entities - Wang Yuzhu serves as the **legal representative and director of Xinjiang Shihezi Paper Mill**[111](index=111&type=chunk) - Ao Bing serves as the **legal representative and chairman of the 12th Division State-owned Assets Management Co, Ltd**[111](index=111&type=chunk) - Liu Rang serves as the **Chairman of Xinjiang Tianshan Biotechnology Co, Ltd**, and Hu Gang serves as its General Manager[112](index=112&type=chunk) [III. Remuneration of Directors, Supervisors, and Senior Management](index=48&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8A%A5%E9%85%AC%E6%83%85%E5%86%B5) Senior management compensation is determined by the Remuneration and Appraisal Committee and approved by the Board and shareholders - The senior management compensation plan is proposed by the **Remuneration and Appraisal Committee of the Board of Directors** and approved by the Board before submission to the shareholders' meeting[114](index=114&type=chunk) - Remuneration for senior management is determined based on the company's **position-based salary system** and paid monthly[114](index=114&type=chunk) - Some directors and supervisors receive remuneration from the **shareholder or actual controller's units**[114](index=114&type=chunk) [IV. Changes in Senior Management](index=48&type=section&id=%E5%9B%9B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E7%9A%84%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company experienced a large-scale change in senior management due to board and supervisory committee elections - During the reporting period, there were **large-scale departures and appointments** of directors, supervisors, and senior management due to elections[114](index=114&type=chunk)[115](index=115&type=chunk) - Former Chairman and General Manager Li Xia and others resigned, while **Liu Rang was appointed Chairman** and **Hu Gang was appointed Director and General Manager**[114](index=114&type=chunk) [V. Employee Information of the Parent Company and Major Subsidiaries](index=49&type=section&id=%E4%BA%94%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%92%8C%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) The company has a total of 645 employees, with the majority being production staff Employee Numbers | | Quantity | | :--- | :--- | | Number of Employees in the Parent Company | 18 | | Number of Employees in Major Subsidiaries | 409 | | Total Number of Employees | 645 | | Number of Retirees with Costs Borne by Parent and Major Subsidiaries | 68 | Employee Professional Composition | Category | Number | | :--- | :--- | | Production Staff | 274 | | Sales Staff | 120 | | Technical Staff | 96 | | Finance Staff | 31 | | Administrative Staff | 69 | | Other Staff | 55 | | Total | 645 | Employee Education Level | Education Level | Number (Persons) | | :--- | :--- | | Graduate | 4 | | Bachelor's | 53 | | Associate's | 135 | | Vocational | 74 | | High School | 156 | | Middle School and Below | 223 | | Total | 645 | [Section 8 Corporate Governance](index=51&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) [I. Corporate Governance and Insider Information Management](index=51&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E5%8F%8A%E5%86%85%E5%B9%95%E7%9F%A5%E6%83%85%E4%BA%BA%E7%99%BB%E8%AE%B0%E7%AE%A1%E7%90%86%E7%AD%89%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company has established a sound corporate governance structure and internal control system in compliance with relevant laws and regulations - The company completed a **major asset restructuring and elections for the Board of Directors and Board of Supervisors** during the reporting period[120](index=120&type=chunk) - The company operates in strict accordance with laws such as the **"Company Law" and "Securities Law,"** and has established a sound corporate governance structure and internal control system[120](index=120&type=chunk) - The controlling shareholder exercises its rights in a standardized manner, and the company maintains **full independence in business, personnel, assets, organization, and finance**[121](index=121&type=chunk) - The Board of Directors consists of **9 directors, including 3 independent directors**, and has established specialized committees such as the Strategy and Investment Committee and the Audit Committee[121](index=121&type=chunk) [II. Shareholders' Meetings](index=52&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) The company held four shareholders' meetings during the period to approve key matters such as the annual report, asset restructuring, and board elections - In 2013, the company held a total of **four shareholders' meetings**, including one annual general meeting and three extraordinary general meetings[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - The shareholders' meetings approved important resolutions, including the **annual report, profit distribution plan, and major asset restructuring**[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - The meetings also approved resolutions on the **election of the Board of Directors and Board of Supervisors**, and a change in the company's name[126](index=126&type=chunk) [III. Directors' Performance of Duties](index=55&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E5%B1%A5%E8%A1%8C%E8%81%8C%E8%B4%A3%E6%83%85%E5%86%B5) The Board of Directors held 9 meetings during the period, with all directors fulfilling their duties diligently - The Board of Directors held a total of **9 meetings** during the reporting period, including 6 in-person meetings and 3 by communication[128](index=128&type=chunk) - **All directors attended** the required board meetings in person or by communication, with no instances of missing two consecutive meetings[128](index=128&type=chunk) - **Independent directors raised no objections** to any board resolutions or other matters during the year[128](index=128&type=chunk) [IV. Risks Identified by the Board of Supervisors](index=55&type=section&id=%E5%9B%9B%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%91%E7%8E%B0%E5%85%AC%E5%8F%B8%E5%AD%98%E5%9C%A8%E9%A3%8E%E9%99%A9%E7%9A%84%E8%AF%B4%E6%98%8E) The Board of Supervisors raised no objections and identified no major risks during the reporting period - The Board of Supervisors had **no objections** to the matters under its supervision during the reporting period[129](index=129&type=chunk) [V. Senior Management Appraisal and Incentive Mechanisms](index=56&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%AF%B9%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E7%9A%84%E8%80%83%E8%AF%84%E6%9C%BA%E5%88%B6%EF%BC%8C%E4%BB%A5%E5%8F%8A%E6%BF%80%E5%8A%B1%E6%9C%BA%E5%88%B6%E7%9A%84%E5%BB%BA%E7%AB%8B%E3%80%81%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company has established a performance-based appraisal and reward system for senior management and is developing a comprehensive incentive mechanism - The Board of Directors has a **Remuneration and Appraisal Committee** responsible for formulating and reviewing senior management compensation policies[130](index=130&type=chunk) - Senior management and their responsible units are assessed based on **operating performance and management indicators**, which serve as the basis for rewards and penalties[130](index=130&type=chunk) - The company is progressively establishing and improving its **incentive and constraint mechanisms**[130](index=130&type=chunk) [Section 9 Financial Report](index=57&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E4%BC%9A%E8%AE%A1%E6%8A%A5%E5%91%8A) [I. Audit Report](index=57&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) Sigma Certified Public Accountants issued a standard unqualified audit opinion on the company's 2013 financial statements - Sigma Certified Public Accountants (Special General Partnership) issued a **standard unqualified audit opinion** on the company's 2013 financial statements[132](index=132&type=chunk)[133](index=133&type=chunk) - The audit opinion concluded that the financial statements are prepared in accordance with enterprise accounting standards and **fairly present the company's financial position, operating results, and cash flows** in all material respects[133](index=133&type=chunk) [II. Financial Statements](index=58&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company financial statements for 2013, reflecting the impact of the major asset restructuring [Consolidated Balance Sheet](index=58&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) At the end of 2013, consolidated total assets reached RMB 457 million, an increase of 101.32% from the beginning of the year Key Data from Consolidated Balance Sheet (Unit: RMB Yuan) | Item | Closing Balance | Opening Balance | | :--- | :--- | :--- | | Total Assets | 457,047,489.49 | 227,026,110.84 | | Total Current Assets | 149,765,176.30 | 66,613,108.30 | | Total Non-current Assets | 307,282,313.19 | 160,413,002.54 | | Total Liabilities | 175,992,145.38 | 123,442,120.29 | | Total Equity | 281,055,344.11 | 103,583,990.55 | | Equity Attributable to Parent Company | 253,898,319.68 | 103,667,034.14 | - Year-end cash and cash equivalents were **RMB 78.66 million**, an increase of **499.86%** from the beginning of the year[137](index=137&type=chunk) - Year-end fixed assets were **RMB 251 million**, an increase of **87.09%** from the beginning of the year[137](index=137&type=chunk) [Parent Company Balance Sheet](index=61&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) The parent company's total assets were RMB 236 million, with a significant increase in long-term equity investments due to the asset restructuring Key Data from Parent Company Balance Sheet (Unit: RMB Yuan) | Item | Closing Balance | Opening Balance | | :--- | :--- | :--- | | Total Assets | 236,971,934.90 | 228,316,484.07 | | Long-term Equity Investments | 236,971,934.90 | 900,000.00 | | Total Liabilities | 123,002,057.64 | 123,002,057.64 | | Total Equity | 236,971,934.90 | 105,314,426.43 | - Year-end long-term equity investments were **RMB 236 million**, a substantial increase from **RMB 900,000** at the beginning of the year, mainly due to the injection of Tianshan Technology's equity[143](index=143&type=chunk) - Total equity at year-end was **RMB 236 million**, an increase of **125.01%** from the beginning of the year[144](index=144&type=chunk) [Consolidated Income Statement](index=63&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In 2013, consolidated revenue decreased by 45.64%, but the company achieved a net profit of RMB 35.87 million, turning from a loss to a profit Key Data from Consolidated Income Statement (Unit: RMB Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 87,481,839.52 | 160,928,121.50 | | Total Operating Costs | 121,655,941.84 | 201,141,070.20 | | Operating Profit (Loss) | -34,174,102.32 | -40,212,948.70 | | Non-operating Income | 71,956,707.43 | 4,675,654.90 | | Net Profit (Loss) | 35,870,559.96 | -38,332,733.34 | | Net Profit Attributable to Parent Company | 34,844,877.84 | -38,075,621.52 | - Total operating revenue for 2013 **decreased by 45.64%** year-on-year[146](index=146&type=chunk) - The company **turned from a loss to a profit**, primarily due to **RMB 71.95 million in non-operating income**, which included a **RMB 64.40 million gain from the major asset restructuring**[146](index=146&type=chunk)[147](index=147&type=chunk) [Parent Company Income Statement](index=64&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) The parent company's revenue decreased by 87.29%, but it achieved a net profit of RMB 24.64 million due to gains from the asset restructuring Key Data from Parent Company Income Statement (Unit: RMB Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Operating Revenue | 12,989,228.62 | 101,457,283.28 | | Operating Profit (Loss) | -41,855,457.64 | -38,161,908.53 | | Non-operating Income | 66,563,964.46 | 4,362,003.90 | | Net Profit (Loss) | 24,649,055.17 | -35,761,615.13 | - The parent company's operating revenue for 2013 **decreased by 87.29%** year-on-year[149](index=149&type=chunk) - The company **turned from a loss to a profit**, mainly due to **RMB 66.56 million in non-operating income**[149](index=149&type=chunk)[150](index=150&type=chunk) [Consolidated Cash Flow Statement](index=65&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 2013, net cash flow from operating activities turned negative, while investing and financing activities generated positive cash flows Key Data from Consolidated Cash Flow Statement (Unit: RMB Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -11,659,816.58 | 283,351.68 | | Net Cash Flow from Investing Activities | 65,265,824.24 | -524,942.80 | | Net Cash Flow from Financing Activities | 11,946,983.05 | -13,836,600.95 | | Net Increase in Cash and Cash Equivalents | 65,552,990.71 | -14,078,192.07 | - Net cash flow from operating activities **turned from positive to negative**, at **-RMB 11.65 million**[153](index=153&type=chunk) - Net cash flow from investing activities **increased significantly to RMB 65.26 million**, mainly due to cash received from the major asset restructuring[153](index=153&type=chunk)[154](index=154&type=chunk) - Net cash flow from financing activities **turned from negative to positive**, at **RMB 11.94 million**[154](index=154&type=chunk) [Parent Company Cash Flow Statement](index=68&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) The parent company's operating and investing activities resulted in cash outflows, while financing activities generated a cash inflow Key Data from Parent Company Cash Flow Statement (Unit: RMB Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -10,192,543.46 | -4,422,210.77 | | Net Cash Flow from Investing Activities | -16,015,377.39 | -524,942.80 | | Net Cash Flow from Financing Activities | 13,140,745.42 | -9,000,000.00 | | Net Increase in Cash and Cash Equivalents | -13,067,175.43 | -13,947,153.57 | - Net cash flow from operating activities was **-RMB 10.19 million**, a further deterioration from the previous period[156](index=156&type=chunk) - Net cash flow from investing activities was **-RMB 16.01 million**, mainly due to cash paid for investments and other investment-related activities[157](index=157&type=chunk) - Net cash flow from financing activities **turned from negative to positive**, at **RMB 13.14 million**, mainly due to cash received from other financing activities[157](index=157&type=chunk) [Consolidated Statement of Changes in Equity](index=70&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) Consolidated total equity increased by 177.47% to RMB 281 million, driven by net profit and capital contributions Key Data from Consolidated Statement of Changes in Equity (Unit: RMB Yuan) | Item | Year-end Balance | Year-start Balance | | :--- | :--- | :--- | | Total Equity | 281,055,344.11 | 103,583,990.55 | | Equity Attributable to Parent Company | 253,898,319.68 | 103,667,034.14 | | Share Capital | 86,389,415.00 | 80,160,000.00 | | Capital Reserve | 281,871,852.48 | 172,714,859.78 | | Undistributed Profit | -130,651,973.62 | -165,496,851.46 | - Total equity **increased by RMB 177,471,353.56** this year, mainly due to net profit and owner-contributed capital[158](index=158&type=chunk) - Share capital **increased by RMB 6,229,415.00**, and capital reserve **increased by RMB 109,156,992.70**, reflecting the share issuance from the asset restructuring[158](index=158&type=chunk) [Parent Company Statement of Changes in Equity](index=72&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) The parent company's total equity increased by 131.65% to RMB 236 million, driven by net profit and capital contributions Key Data from Parent Company Statement of Changes in Equity (Unit: RMB Yuan) | Item | Year-end Balance | Year-start Balance | | :--- | :--- | :--- | | Total Equity | 236,971,934.90 | 105,314,426.43 | | Share Capital | 86,389,415.00 | 80,160,000.00 | | Capital Reserve | 275,357,398.78 | 172,714,859.78 | | Undistributed Profit | -141,063,904.70 | -163,849,459.17 | - Total equity **increased by RMB 131,657,508.47** this year, mainly due to net profit and owner-contributed capital[161](index=161&type=chunk) - Share capital **increased by RMB 6,229,415.00**, and capital reserve **increased by RMB 102,642,539.00**[161](index=161&type=chunk) [III. Notes to the Financial Statements](index=74&type=section&id=%E4%B8%89%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) The notes provide detailed disclosures on the company's accounting policies and the significant impact of the 2013 major asset restructuring on its financial data - The company's predecessor was Xinjiang Tianhong Paper Co, Ltd; in 2013, it completed a **major asset restructuring**, changing its main business to dairy production and sales and its name to Xinjiang Tianshan Dairy Co, Ltd[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - The financial statements are prepared on a **going concern basis** in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance in 2006[171](index=171&type=chunk) - On November 8, 2013, the transfer of a **96.80% stake in Tianshan Technology** was completed and included in the consolidation scope; the original main business assets were divested on December 24, 2013[168](index=168&type=chunk)[263](index=263&type=chunk) [I. Company's Basic Information](index=74&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%9A%84%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company transformed from a paper manufacturer to a dairy enterprise in 2013 through a major asset restructuring - The company's predecessor was **Xinjiang Tianhong Paper Co, Ltd**, established in 1999 and listed in 2001[164](index=164&type=chunk) - In 2013, the controlling shareholder changed to **Xinjiang Production and Construction Corps 12th Agricultural Division State-owned Assets Management Co, Ltd**[165](index=165&type=chunk) - Through a major asset restructuring, the company acquired a **96.80% stake in Tianshan Technology**, changing its main business to dairy-related operations[166](index=166&type=chunk)[168](index=168&type=chunk) - The registered capital was changed to **RMB 86.389415 million**, and the company name was officially changed to **Xinjiang Tianshan Dairy Co, Ltd**[167](index=167&type=chunk)[168](index=168&type=chunk) [IV. Key Accounting Policies, Estimates, and Basis of Consolidation](index=76&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E3%80%81%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E5%92%8C%E5%90%88%E5%B9%B6%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%