Financial Performance - In 2019, the company reported a net loss of RMB 1.87 billion, a decrease of 578.35% compared to a profit of RMB 390 million in 2018[21]. - The company's operating revenue fell by 81.38% to RMB 374 million in 2019, down from RMB 2.01 billion in 2018[21]. - The net cash flow from operating activities was negative RMB 274 million, a decline of 1,235.49% compared to a positive cash flow of RMB 24 million in 2018[21]. - The total assets decreased by 78.38% to RMB 592 million at the end of 2019, compared to RMB 2.74 billion at the end of 2018[21]. - The company's net assets attributable to shareholders dropped by 82.67% to RMB 379 million at the end of 2019, down from RMB 2.19 billion in 2018[21]. - Basic earnings per share were negative RMB 2.34 in 2019, a decrease of 360% from RMB 0.90 in 2018[23]. - The company reported a net loss of RMB 394 million after deducting non-recurring gains and losses, compared to a loss of RMB 329 million in 2018[21]. - The total profit loss was 1.971 billion RMB, with a net profit loss of 1.876 billion RMB, resulting in an earnings per share of -2.34 RMB[46]. - The company reported a significant reduction in research and development (R&D) expenses, totaling approximately ¥2.02 million, which is only 0.54% of operating revenue[59]. - The company reported a net loss of 394 million yuan attributable to the parent company after deducting non-recurring gains and losses for 2019, raising concerns about its ability to continue as a going concern[104]. Operational Challenges - The company faced continuous operating risks due to the policy-driven shutdown of production systems starting March 30, 2019, leading to reduced sales and cash inflow[21]. - The company experienced significant operational disruptions, with the ammonium system in a shutdown state due to a fire incident on December 5, 2018, and further production limitations caused by adverse weather conditions in March 2019[35]. - A policy-driven shutdown was mandated by the local government starting June 6, 2019, affecting all production systems at the main facility, leading to a total operational halt except for the Luozhai branch[36]. - The company has ceased production of nitric acid and ammonium nitrate due to policy-driven shutdowns, and currently lacks production capacity and qualifications for these products[72]. - The company faced operational challenges due to a fire incident and adverse weather conditions, leading to significant production downtime[82]. Restructuring and Asset Disposal - The restructuring plan was confirmed completed on December 13, 2019, marking the end of the company's restructuring process[30]. - The company disposed of several subsidiaries, leading to a significant reduction in both assets and liabilities, with total liabilities decreasing by 62.62% to approximately ¥213.60 million[64]. - The company reported an asset disposal loss of approximately 1.29 billion yuan due to the sale of low-efficiency assets, which were sold below their book value[43]. - The company disposed of low-efficiency assets as part of its restructuring plan, with a machine and equipment asset package sold for 30,400,000 RMB, significantly below its book value of 106,779,130 RMB[95]. - The company completed the transfer of its stakes in several subsidiaries, including the mixed fertilizer and potassium fertilizer companies, resulting in a net asset value of 849.98 million yuan and an assessed value of 501.33 million yuan[96]. Market Conditions - The chemical industry faced challenges in 2019, with a continued decline in prices and reduced profitability compared to the previous year[34]. - The domestic chemical industry is facing challenges such as overcapacity, safety and environmental upgrades, and intense competition, necessitating structural reforms and innovation[71]. - The company anticipates continued market competition in 2020 due to oversupply and declining prices in the chemical products sector[101]. Future Plans and Strategies - The company plans not to distribute profits or increase capital reserves due to significant losses and weak profitability[5]. - The company plans to achieve a revenue target of 92 million yuan for 2020, focusing on maximizing existing capacity and improving profitability[103]. - The company will enhance financial management and risk control, aiming to improve accounts receivable turnover rates[102]. - The company plans to strengthen its marketing management and improve customer service to stabilize its client base and reduce operational costs[104]. - The company is committed to enhancing operational stability and improving profitability in 2020 by maximizing existing capacity and strengthening financial management[118]. Environmental and Safety Management - The company has established an emergency response plan for environmental risks and has a dedicated emergency response team and resources to minimize disaster losses[140]. - The company reported a total nitrogen discharge concentration of 38.8 mg/l exceeding the standard during a specific monitoring period[136]. - The company’s environmental facilities operated with a synchronization rate of over 98% during the reporting period, with an operational cost of approximately 23.59 million yuan[139]. Governance and Compliance - The company has maintained independence from its controlling shareholder in terms of assets, personnel, finance, and operations[170]. - The company’s board of directors has been focused on improving operational efficiency and ensuring compliance with governance standards[170]. - The company confirmed that there were no significant differences between its governance practices and those required by the China Securities Regulatory Commission[173]. - The company has not undergone a board election during the reporting period due to its restructuring plan, with current directors continuing to serve[171]. Shareholder Information - The total number of ordinary shareholders increased from 21,593 to 22,975 during the reporting period, representing a growth of approximately 6.4%[145]. - The largest shareholder, Liuzhou Yuantong Investment Development Co., Ltd., holds 201,452,434 shares, accounting for 25.22% of the total shares[148]. - The company has no other shareholders holding more than 10% of the shares[153].

2019 年第三季度报告 公司代码：600423 公司简称：*ST 柳化 柳州化工股份有限公司 2019 年第三季度报告 1 / 24 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 10 | 2019 年第三季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 | | | | | 单位：元 | 币种：人民币 | | --- | --- | --- | --- | --- | --- | | | 本报告期末 | | 上年度末 | | 本报告期末比上 | | | | | | | 年度末增减(%) | | 总资产 | 2,057,786,492.99 | | | 2,742,527,411.24 | -24.97 | | 归属于上市公司股东的净资 | 1,703,789,483.29 | | | 2,189,038,724.53 | -22.17 | | 产 | | | | | | | | 年初至报告期末 | | 上年初至上年报告期末 | | 比上年同期增减 | | | （ ...

Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥257.96 million, a decrease of 76.69% compared to ¥1,106.60 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥241.58 million, compared to a loss of ¥25.33 million in the same period last year[21]. - The net cash flow from operating activities was a negative ¥91.89 million, a decrease of 216.81% compared to a positive cash flow of ¥78.66 million in the same period last year[21]. - The total assets decreased by 18.11% to approximately ¥2.25 billion from ¥2.74 billion at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company decreased by 11.14% to approximately ¥1.95 billion from ¥2.19 billion at the end of the previous year[21]. - The basic earnings per share for the first half of 2019 was -¥0.30, compared to -¥0.06 in the same period last year[22]. - The company reported a significant decline in revenue, achieving 25,796,200 RMB, a decrease of 76.69% compared to the previous year[41]. - The operating loss amounted to 23,406,780 RMB, with a net loss of 24,630,700 RMB, including a net loss attributable to the parent company of 24,157,890 RMB[41]. - The company reported a significant loss in total profit during the reporting period, leading to a negative EBITDA interest coverage ratio of -157.55[91]. - The total comprehensive loss attributable to the parent company was CNY -241,578,944.09, compared to CNY -25,326,799.70 in the same period of 2018[107]. Operational Challenges - The company experienced a significant decrease in production load and sales volume, leading to a substantial decline in revenue and net profit[23]. - The company faced significant challenges in the petrochemical industry, with most chemical fertilizer product prices declining compared to the same period last year, resulting in reduced profitability[30]. - The company’s ammonia production system was largely non-operational due to safety inspections and external power grid failures, leading to low-load production[39]. - The company faced significant operational challenges, with most production facilities forced to halt operations, leading to a substantial decrease in production capacity and increased losses[56]. - The company has incurred significant losses due to policy-driven production halts mandated by local government, impacting its operational performance[56]. Restructuring and Financial Stability - The company is currently in a restructuring phase, with the execution period extended until November 26, 2019, and risks of bankruptcy remain if the restructuring plan is not executed successfully[49]. - The company has initiated the disposal of inefficient assets and has drafted an employee placement plan, which is currently under review by employee representatives[38]. - The company achieved a debt restructuring gain of approximately 1.22 billion yuan in 2018, although the underlying operational performance indicated a loss of about 846 million yuan when excluding this gain[56]. - The company is actively seeking high-quality strategic investors to improve its financial health and operational efficiency during the restructuring[50]. - The company reported a 100% reduction in short-term borrowings, down to 0 RMB, following debt repayments[46]. - The debt-to-asset ratio decreased by 6.44 percentage points to 14.39%, indicating improved financial stability[91]. Environmental and Regulatory Compliance - The company reported total emissions of pollutants during the reporting period, including 9.44 tons of ammonia nitrogen and 172.99 tons of sulfur dioxide[68]. - The company has obtained a discharge permit for the nitrogen fertilizer industry, with annual pollutant discharge limits set for various substances[68]. - The total nitrogen discharge concentration of wastewater exceeded the limit of 35 mg/m³, recorded at 38.8 mg/m³ during monitoring on March 13, 2019[69]. - The company maintained a 98% operational rate of environmental protection facilities in sync with production equipment during the reporting period[69]. - The company continues to face safety and environmental responsibility risks due to stricter regulations, despite previous investments in compliance[50]. Shareholder and Capital Structure - The total number of ordinary shareholders at the end of the reporting period was 25,731[76]. - The largest shareholder, Liuzhou Yuantong Investment Development Co., Ltd., held 201,452,434 shares, representing 25.22% of total shares[78]. - The company reported no changes in its total share capital and structure during the reporting period[75]. - The total owner's equity at the end of the reporting period is CNY 2,004,715,989.47, a decrease of CNY 243,095,322.26 compared to the beginning of the year[126]. Accounting and Financial Reporting - The financial report was approved by the board of directors on August 15, 2019[134]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial position accurately[139]. - The company measures financial assets at fair value, with changes recognized in other comprehensive income for debt instruments, including receivables and other debt investments[151]. - The company recognizes expected credit losses for financial assets based on significant increases in credit risk since initial recognition[155]. - The company has implemented changes in accounting policies as per the Ministry of Finance's notification, affecting the preparation of financial statements from 2019 onwards[195].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 257,962,019.80, a decrease of 76.69% compared to CNY 1,106,603,261.86 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 241,578,944.09, compared to a loss of CNY 25,326,799.70 in the previous year[21]. - The net cash flow from operating activities was a negative CNY 91,887,584.50, a decrease of 216.81% compared to CNY 78,662,051.69 in the same period last year[21]. - The total assets at the end of the reporting period were CNY 2,245,767,684.43, down 18.11% from CNY 2,742,527,411.24 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company decreased by 11.14% to CNY 1,945,107,540.25 from CNY 2,189,038,724.53 at the end of the previous year[21]. - The basic earnings per share for the reporting period was -CNY 0.30, compared to -CNY 0.06 in the same period last year[22]. - The weighted average return on net assets was -11.68%, an increase of 85.84 percentage points compared to -97.52% in the previous year[22]. - The company reported a significant decline in revenue, achieving 25,796,200 CNY, a decrease of 76.69% compared to the same period last year[38]. - Operating profit was a loss of 23,406,780 CNY, while net profit loss reached 24,630,700 CNY, with the loss attributable to shareholders amounting to 24,157,890 CNY[38]. - The company reported a significant loss in total profit during the reporting period, leading to a negative EBITDA interest coverage ratio of -157.55[85]. Operational Challenges - The company faced significant challenges due to low production loads and a substantial decrease in sales volume and product prices[23]. - The company reported a parking loss of 111.42 million yuan during the reporting period, an increase of 97.95 million yuan compared to the same period last year[37]. - The company's production systems were largely non-operational due to safety inspections and policy-driven shutdowns, with only the Luozhai branch continuing production[31]. - The company faced significant challenges in the petrochemical industry, with most chemical fertilizer product prices declining compared to the same period last year, leading to reduced profitability[29]. - Major products saw drastic reductions in production and sales, with ammonium nitrate production and sales down by 75.09% and 73.16% respectively[38]. - The company continues to face substantial ongoing operational risks, with only one subsidiary, the Lvzai branch, remaining operational, which limits its ability to adapt to market changes[45]. Restructuring Efforts - The company is undergoing a restructuring plan, which has been extended for an additional six months until November 26, 2019, to complete the disposal of inefficient assets[35]. - The restructuring plan includes the distribution of compensation to creditors and the transfer of stocks to designated accounts[35]. - The company has a significant risk of being delisted if the restructuring plan is not executed successfully, as it is currently under a court-approved restructuring plan[45]. - The execution period of the restructuring plan has been extended to November 26, 2019, due to the incomplete disposal of inefficient assets[54]. - The company is actively seeking high-quality strategic investors and assets during the execution phase of the restructuring plan to enhance its operational and profitability capabilities[46]. - The company is focusing on the disposal of low-efficiency assets and employee placement as part of its restructuring efforts[36]. Safety and Environmental Management - The company has initiated a comprehensive safety inspection of its production systems following a series of incidents, including a fire and external power grid failures[30]. - The company faces significant safety and environmental responsibility risks due to stricter regulations, despite previous investments in safety and environmental management[46]. - The company has established an emergency response plan for environmental incidents, ensuring rapid and effective control in case of accidents[65]. - The company’s pollution control facilities operated at a 98% synchronization rate with production equipment during the reporting period[64]. - The company’s environmental emissions for the reporting period included 9.44 tons of ammonia nitrogen and 172.99 tons of sulfur dioxide, which are part of the total pollutant discharge[62][64]. Financial Position and Liabilities - The total liabilities decreased to ¥205,145,454.82 from ¥451,239,368.75, a reduction of approximately 54.5%[92]. - The company reported a 100% reduction in short-term loans, indicating a significant decrease in financial leverage following debt restructuring[41]. - The company provided guarantees for loans totaling CNY 217.5802 million for Hunan Zhongcheng, which led to a court ruling requiring the company to fulfill its guarantee obligations[55]. - The company has confirmed deferred tax assets based on the likelihood of future taxable income, with specific attention to temporary differences related to subsidiaries and joint ventures[190]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,731[71]. - The largest shareholder, Liuzhou Yuantong Investment Development Co., Ltd., held 201,452,434 shares, representing 25.22% of the total shares[73]. - China Construction Bank's Guangxi Branch held 49,256,529 shares, accounting for 6.17% of the total shares[73]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect its financial position accurately[133]. - The company’s accounting period runs from January 1 to December 31 each year, with a normal operating cycle of 12 months[134][135]. - The company has implemented changes in accounting policies as per the Ministry of Finance's notification, affecting the preparation of financial statements from 2019 onwards[189]. - The company’s financial instruments are subject to retrospective adjustments based on revised accounting standards, with no significant impact on previous financial statements reported[190].

股票代码：600423 股票简称：*ST 柳化 公告编号：2019-020 柳州化工股份有限公司 | --- | |-----------------------------------------------------------------------------------------------------------------------------------------| | | | 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 | 为进一步加强与投资者的互动交流，柳州化工股份有限公司（以下简称"公司"）将参加由广西上市 公司协会、上证所信息网络有限公司、深圳市全景网络有限公司共同举办的"2019 年广西地区上市公司 投资者网上集体接待日活动"，现将有关事项公告如下： 本次集体接待日活动将通过上证所信息网络有限公司提供的互联网平台举行，投资者可以登录"上证 路演中心"网站（http：//roadshow.sseinfo.com）或关注微信公众号：上证路演中心（sse_roadshow）， 参与公司本次 ...

Financial Performance - Operating revenue fell by 58.69% to CNY 216,114,258.07 year-on-year[4] - Net profit attributable to shareholders was a loss of CNY 107,982,449.49, a decrease of 1,434.61% compared to the same period last year[4] - Basic earnings per share dropped to -CNY 0.14, representing an 800.00% decline year-on-year[4] - The company reported a net loss of CNY 109,656,056.44 for Q1 2019, compared to a profit of CNY 8,046,556.99 in Q1 2018[24] - The total comprehensive income for Q1 2019 was a loss of ¥97,789,479.00, compared to a gain of ¥30,249,427.82 in Q1 2018, highlighting a substantial decline in overall financial performance[28] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 67,500,452.63, a decrease of 1,312.90% compared to the previous year[4] - The company's cash inflow from operating activities was ¥127,919,857.48 in Q1 2019, down from ¥280,620,415.34 in Q1 2018, reflecting a decrease of 54.4%[30] - The total cash inflow from operating activities was ¥114,693,556.95, a decrease of about 70% from ¥381,239,754.23 in Q1 2018[34] - The cash flow from financing activities resulted in a net outflow of ¥133,338,355.74, compared to a smaller outflow of ¥14,868,292.72 in the same period last year[32] - The company experienced a net decrease in cash and cash equivalents of ¥198,678,179.14 during the quarter, contrasting with an increase of ¥113,809,075.83 in Q1 2018[35] Assets and Liabilities - Total assets decreased by 9.93% to CNY 2,470,107,478.01 compared to the end of the previous year[4] - Total liabilities decreased to CNY 272,062,035.46 in Q1 2019 from CNY 426,615,295.44 in Q4 2018, a reduction of 36.3%[23] - The company's total equity was CNY 2,146,947,964.26 in Q1 2019, compared to CNY 2,247,811,311.73 in Q4 2018, reflecting a decrease of 4.5%[23] - The company's inventory decreased from approximately 255.6 million yuan to 227.4 million yuan compared to the previous year[17] - Accounts receivable increased to CNY 405,565,796.99 in Q1 2019 from CNY 374,146,224.65 in Q4 2018, indicating a rise of 8.5%[22] Expenses - The company experienced a 69.73% decrease in selling expenses due to a significant reduction in product sales volume[9] - Management expenses increased by 59.57% primarily due to increased losses from the shutdown of the urea system[10] - Financial expenses decreased by 101.35% as a result of reduced liabilities following debt restructuring[10] - The company reported research and development expenses of CNY 1,189,702.83 for Q1 2019, slightly up from CNY 1,176,367.07 in Q1 2018[24] - The company's sales expenses for Q1 2019 were ¥7,060,684.80, down from ¥23,106,315.96 in Q1 2018, indicating a reduction in sales-related costs[27] Restructuring and Risks - The company is currently in the execution phase of the restructuring plan, facing risks of bankruptcy if the restructuring fails, which could lead to stock delisting[12] - The company provided guarantees for loans to Hunan Zhongcheng totaling approximately 212 million yuan, with related debts confirmed by the court at approximately 218 million yuan[13] - Cash and cash equivalents at the beginning and end of the period increased by 250.81% and 150.04% respectively compared to the same period last year, mainly due to cash received from restructuring investors[11]

2018 年年度报告 公司代码：600423 公司简称：*ST 柳化 柳州化工股份有限公司 2018 年年度报告 (修订版) 1 / 163 2018 年年度报告 重要提示 审计报告的具体内容详见本报告第十一节，敬请投资者注意投资风险。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 四、 公司负责人陆胜云、主管会计工作负责人黄吉忠及会计机构负责人（会计主管人员）黄东健 声明：保证年度报告中财务报告的真实、准确、完整。 经大信会计师事务所（特殊普通合伙）审计确认，公司 2018 年度母公司经营净利润为 387,131,950.45 元，期末公司累计可供分配利润为-423,596,890.16 元。 虽然公司 2018 年实现净利润为正，但累计未分配利润为负且盈利主要是因为有重整收益等非 经常性损益，另外，目前公司资金非常紧张，重整期间无法获得相关金融机构的良好授信，融资 困难，为了维持公司持续经营，结合《公司章程》的有关规定，2018 年公司拟不进行利润分配， 也不进行资本公积金转增股本。 六、 前瞻性陈述的风险声明 √适用 □ 不适用 本报告中所涉及的未来计划、行业分析、发展战略等前瞻性陈述，不 ...

2018 年年度报告 公司代码：600423 公司简称：*ST 柳化 柳州化工股份有限公司 2018 年年度报告 1 / 163 2018 年年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 大信会计师事务所（特殊普通合伙）为本公司出具了标准无保留意见的审计报告。 大信会计师事务所（特殊普通合伙）为本公司出具了标准无保留意见，但带有与持续经营相 关的重大不确定性段的审计报告，请投资者注意阅读。 审计报告的具体内容详见本报告第十一节，敬请投资者注意投资风险。 四、 公司负责人陆胜云、主管会计工作负责人黄吉忠及会计机构负责人（会计主管人员）黄东健 声明：保证年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 经大信会计师事务所（特殊普通合伙）审计确认，公司 2018 年度母公司经营净利润为 387,131,950.45 元，期末公司累计可供分配利润为-423,596,890.16 元。 虽然公司 2 ...

Financial Performance - Operating revenue increased by 12.85% to CNY 1,469,312,708.46 for the period from January to September[6] - Net profit attributable to shareholders was a loss of CNY 84,129,481.64, an improvement from a loss of CNY 178,997,395.29 in the same period last year[6] - The company's operating profit, total profit, and net profit indicators showed a reduction in losses compared to the same period last year, primarily due to the cessation of interest on bank debts following the company's judicial reorganization[15] - Total operating revenue for the third quarter was $362.71 million, a decrease of 13.2% from $417.84 million in the same period last year[29] - Net profit for the third quarter was a loss of $60.63 million, compared to a loss of $91.08 million in the same period last year, representing a 33.3% improvement[30] - The company reported a basic earnings per share of -$0.15, an improvement from -$0.23 in the previous year[31] - The company reported a total comprehensive loss of approximately ¥39.91 million for Q3 2018, compared to a loss of ¥64.62 million in Q3 2017[34] Assets and Liabilities - Total assets decreased by 9.85% to CNY 2,888,067,008.75 compared to the end of the previous year[6] - Total liabilities decreased from ¥3,165,047,554.69 to ¥2,754,852,504.74, a decline of about 12.9%[23] - Current liabilities increased from ¥2,502,543,964.49 to ¥2,288,188,070.42, a decrease of about 8.6%[22] - Non-current liabilities decreased from ¥662,503,590.20 to ¥466,664,434.32, a reduction of approximately 29.5%[23] - Owner's equity increased from ¥38,634,067.36 to ¥139,570,503.21, an increase of approximately 262.5%[23] Cash Flow - Cash flow from operating activities decreased by 25.74% to CNY 123,355,067.72 compared to the same period last year[6] - Cash inflow from operating activities decreased by 98.01% compared to the previous period, mainly due to receiving a government subsidy of 160 million yuan in the same period last year[15] - Cash inflow from financing activities decreased by 86.38% compared to the previous period, primarily due to reduced bank borrowing activities following the judicial reorganization[15] - Cash paid for debt repayment decreased by 85.72% compared to the previous period, as the company suspended bank debt repayments during the judicial reorganization[15] - Cash and cash equivalents increased significantly from ¥19,752,028.63 to ¥201,109,547.01, a growth of about 917.5%[25] - The company experienced a net increase in cash and cash equivalents of CNY 196,635,516.63, compared to CNY 5,372,273.45 in the previous year[40] Shareholder Information - The number of shareholders reached 29,565 at the end of the reporting period[10] - The company decided to publicly auction its 95.5% stake in Hunan Zhongcheng, with a starting price of 100,000 yuan, which was successfully acquired by the largest shareholder for the same amount[18] Legal and Operational Risks - The total amount involved in lawsuits (arbitration) against the company reached 463.39 million yuan, which is 1484.78% of the company's audited net assets of 38.63 million yuan[16] - The company is undergoing judicial reorganization, and if the reorganization fails, there is a risk of bankruptcy, indicating significant uncertainty regarding the company's ability to continue as a going concern[17] Expenses - Financial expenses decreased by 76.04% due to the cessation of interest accrual on bank loans during judicial reorganization[14] - Research and development expenses were $1.05 million, slightly down from $1.17 million year-over-year[29] - Sales expenses decreased to $22.28 million, down 11.8% from $25.26 million in the same period last year[29] - Management expenses were reduced to $37.73 million, a decrease of 16.1% from $44.95 million year-over-year[29]

Financial Performance - The company's operating revenue for the first half of 2018 was approximately CNY 1.11 billion, representing a 25.15% increase compared to CNY 884.22 million in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2018 was a loss of CNY 25.33 million, an improvement from a loss of CNY 87.92 million in the previous year[16]. - The company reported a basic earnings per share of -CNY 0.06 for the first half of 2018, an improvement from -CNY 0.22 in the same period last year[16]. - Operating profit recorded a loss of CNY 17.21 million, while net profit loss amounted to CNY 25.33 million, attributable to the parent company[26]. - The company reported a net profit loss of RMB 485.74 million for Hunan Zhongcheng Chemical, with a net asset value of -RMB 16,109.51 million and a debt-to-asset ratio of 136.93%[37][38]. - The company experienced a net profit loss of RMB 796.82 million for Liuzhou Liuyi Chemical due to insufficient market demand for ammonium nitrate[39]. - The company reported a net profit loss of RMB 1,388.58 million for Liuzhou Zhongcheng due to environmental compliance issues[39]. - The company reported a net loss of CNY 87,916,820.03 for the current period[125]. - The total comprehensive income for the current period showed a decrease of CNY 25,326,799.70[124]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 52.98%, amounting to CNY 78.66 million compared to CNY 167.28 million in the same period last year[16]. - The company reported a decrease in cash flow from operating activities by 52.98%, primarily due to receiving government subsidies of CNY 160 million in the previous year[29]. - Operating cash inflow for the first half of 2018 was CNY 681,940,833.15, a decrease of 19.7% from CNY 848,805,075.64 in the same period last year[115]. - Cash and cash equivalents at the end of the period increased to CNY 239,765,217.56 from CNY 61,412,072.68, showing a substantial growth[116]. - The total amount of guarantees provided by the company, including those to subsidiaries, reached RMB 211.68 million, which accounts for 1,256.60% of the company's net assets[63]. - The company has a total overdue loan amount of 675.86 million RMB, with 435 million RMB overdue from the company itself[96]. Assets and Liabilities - The company's total assets as of the end of the reporting period were approximately CNY 3.17 billion, a slight decrease of 0.98% from CNY 3.20 billion at the end of the previous year[16]. - The company's total liabilities were CNY 3,155,416,360.49, slightly down from CNY 3,165,047,554.69, indicating a decrease of 0.31%[105]. - The company's asset-liability ratio remains high, and it has entered judicial reorganization as of January 31, 2018[24]. - The company's total owner's equity decreased to CNY 16,845,443.02 from CNY 38,634,067.36, a decline of 56.40%[106]. - The company's net assets were reported at 638.36 million RMB, with a debt ratio of 73.12%[90]. Operational Challenges - The company’s core competitiveness is being gradually weakened due to industry downturn and overcapacity[24]. - The company is at risk of delisting due to consecutive years of negative net profit and negative net assets[40]. - The company is facing operational risks related to potential relocation and transformation due to new safety and environmental regulations[41]. - The company continues to face risks of bankruptcy if the reorganization fails[51]. - The company is currently undergoing judicial reorganization, which poses significant risks to its debt repayment capacity if unsuccessful[99]. Government Support and Subsidies - The company received government subsidies amounting to CNY 2.01 million during the reporting period, contributing positively to its financial performance[18]. - The company achieved profitability in the current year primarily due to a government subsidy of RMB 710 million, but would have incurred a loss of RMB 648.45 million without it[50]. Environmental Compliance - The company reported a total pollutant discharge of 31.49 tons of ammonia nitrogen and 145.18 tons of chemical oxygen demand during the reporting period, exceeding the approved annual discharge limits[65]. - The company has established an emergency response plan for environmental incidents, ensuring rapid and effective control in case of accidents[67]. - The company achieved a 98% operational rate for its environmental protection facilities during the reporting period, ensuring compliance with pollution discharge standards[66]. - The company has implemented an online monitoring system for real-time tracking of pollutant emissions, ensuring compliance with environmental regulations[66]. Shareholder and Corporate Governance - The company has not proposed any profit distribution or capital reserve increase for the current period[47]. - The company elected new board members during the reporting period, including the appointment of Lu Shengyun as chairman[79]. - The company has retained Da Xin Accounting Firm for its 2018 audit, following approval at the 2017 annual general meeting[50]. Related Party Transactions - The company reported a significant related party transaction with Guangxi Liuhua Chlor-Alkali Co., Ltd., involving the purchase of coal, steam, and hydrogen, with an estimated amount of RMB 80 million and an actual amount of RMB 17.3 million incurred by the reporting period[59]. - The company also engaged in related party transactions with Liuzhou Dali Gas Co., Ltd., for the purchase of oxygen and carbon dioxide, with an estimated amount of RMB 8 million and an actual amount of RMB 3.2 million incurred[60]. Legal and Litigation Issues - The company has ongoing litigation involving a total debt principal of RMB 10.50 million, RMB 63.88 million, and RMB 124 million from various disputes[53]. - The company has ongoing litigation involving financial loan disputes totaling approximately RMB 33.38 million, RMB 29.18 million, and RMB 98.50 million, with various banks as of the reporting period[54]. - The company’s largest shareholder, Liuhua Group, has 18 court judgments that remain unfulfilled, with a total debt amounting to RMB 199.99 million, RMB 69.60 million, and RMB 40.00 million among others[56]. - The company has reported multiple lawsuits and arbitration cases, with details disclosed in various announcements throughout the reporting period[55]. Financial Reporting and Accounting Policies - The financial statements are prepared based on the going concern assumption, reflecting the company's financial position as of June 30, 2018[135]. - The company has not disclosed any significant accounting errors or changes in accounting policies during the reporting period[73]. - The company recognizes government subsidies related to assets as deferred income, which is amortized over the estimated useful life of the related assets[176].