Financial Performance - Operating revenue for the first nine months was CNY 281,809,393.18, a decrease of 80.82% year-on-year[5] - Net loss attributable to shareholders reached CNY -483,410,157.94, compared to a net loss of CNY -84,129,481.64 in the same period last year[5] - The company incurred non-recurring losses totaling CNY -132,522,309.71 for the first nine months[6] - The net profit attributable to shareholders of the parent company was a loss of 483 million yuan in the first three quarters, indicating significant ongoing operational risks[19] - The total profit for the first three quarters of 2019 was a loss of CNY 460,843,728.74, compared to a loss of CNY 10,300,091.08 in the same period of 2018, reflecting a worsening financial performance[37] - The net profit for the third quarter of 2019 was a loss of CNY 220,301,248.73, compared to a loss of CNY 39,914,435.46 in the third quarter of 2018, indicating a significant increase in losses[37] Cash Flow - Cash flow from operating activities showed a net outflow of CNY -258,109,698.88, a decline of 309.24% compared to the previous year[5] - Cash inflow from operating activities decreased by 78.07%, while net cash flow from operating activities decreased by 309.24% in the first three quarters compared to the same period last year, primarily due to a significant reduction in product sales[16] - Cash outflow from operating activities decreased by 74.18% compared to the same period last year, mainly due to reduced production and procurement costs[16] - The company reported a net cash flow from operating activities of -248,767,616.51 RMB for the first three quarters of 2019, compared to a positive cash flow of 238,095,826.66 RMB in the same period last year[43] - The cash and cash equivalents net increase for Q3 2019 was -391,447,907.68 RMB, contrasting with an increase of 80,986,962.14 RMB in the previous year[42] Assets and Liabilities - Total assets decreased by 24.97% to CNY 2,057,786,492.99 compared to the end of the previous year[5] - Total liabilities saw a substantial change due to the execution of the restructuring plan, leading to debt repayments[12] - Total assets decreased from CNY 2,674,426,607.17 to CNY 2,011,308,004.44, a decline of approximately 25%[28] - Current liabilities decreased from CNY 451,239,368.75 to CNY 261,596,807.88, a reduction of about 42%[26] - Non-current liabilities slightly decreased from CNY 120,126,378.91 to CNY 117,116,548.51, a decrease of around 2%[26] - Total liabilities decreased from CNY 571,365,747.66 to CNY 378,713,356.39, a decline of approximately 34%[26] - Owner's equity decreased from CNY 2,171,161,663.58 to CNY 1,679,073,136.60, a reduction of about 23%[26] - Cash and cash equivalents decreased from CNY 536,530,161.66 to CNY 154,424,336.35, a decline of approximately 71%[28] - Total current assets decreased from CNY 1,289,830,584.29 to CNY 752,591,451.55, a reduction of about 42%[28] Expenses - Operating revenue, operating costs, taxes and additional fees, and selling expenses decreased by 80.82%, 75.65%, 48.56%, and 86.54% respectively in the first three quarters compared to the same period last year, mainly due to the complete shutdown of production facilities since March 30[14] - Management expenses increased by 304.21% in the first three quarters compared to the same period last year, mainly due to increased shutdown losses and employee compensation expenses[14] - Financial expenses decreased by 97.31% in the first three quarters compared to the same period last year, mainly due to a significant reduction in liabilities after debt restructuring[14] - The total operating expenses for the first three quarters of 2019 were CNY 1,148,327,548.33, which is a significant burden on the company's financials given the revenue decline[35] Shareholder Information - The number of shareholders totaled 24,345, with the largest shareholder holding 25.22% of the shares[7] Other Financial Metrics - The weighted average return on net assets was reported at -24.82%[5] - Undistributed profits decreased by 483 million yuan compared to the end of the previous year, primarily due to increased operating losses in the first three quarters[14] - Other payables increased by 73.91% compared to the end of the previous year, mainly due to related transactions received by subsidiaries[14] - Inventory decreased from CNY 162,697,163.55 to CNY 97,852,374.42, a reduction of about 40%[28] - Unallocated profits decreased from CNY -423,596,890.16 to CNY -884,440,618.90, indicating a worsening financial position[30] - Accounts receivable decreased by 60.14% due to the settlement of matured bills[11] - Accounts payable decreased from CNY 316,261,158.88 to CNY 173,394,509.69, a decline of approximately 45%[26]

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]

Financial Performance - The company's net profit for 2018 was CNY 387,131,950.45, but the cumulative distributable profit was negative at CNY -423,596,890.16, leading to no profit distribution proposed for the year [5]. - The company's operating revenue for 2018 was approximately ¥2.01 billion, representing a 9.75% increase compared to ¥1.83 billion in 2017 [23]. - The net profit attributable to shareholders for 2018 was approximately ¥390.30 million, a significant increase of 534.11% from ¥61.55 million in 2017 [23]. - The basic earnings per share for 2018 was ¥0.90, reflecting a 500% increase from ¥0.15 in 2017 [25]. - The net cash flow from operating activities decreased by 91.42% to approximately ¥24.16 million, primarily due to a government subsidy of ¥330 million received in the previous year [26]. - The total assets at the end of 2018 were approximately ¥2.74 billion, a decrease of 14.39% from ¥3.20 billion at the end of 2017 [24]. - The net assets attributable to shareholders increased significantly to approximately ¥2.19 billion, up 5,566.08% from ¥38.63 million at the end of 2017 [24]. - The weighted average return on equity for 2018 was 166.95%, a decrease of 815.19 percentage points from 982.14% in 2017 [25]. - The company reported a total profit of 482 million RMB, with a net profit of 376 million RMB, and earnings per share of 0.90 RMB [46]. Operational Challenges - The company faced significant financial challenges, including a loss of CNY 478 million in operating profit and a provision for asset impairment of CNY 469 million in 2018 [8]. - The company is under judicial reorganization, with the court approving the reorganization plan on November 26, 2018, but the execution of the plan is still ongoing, posing risks of bankruptcy and delisting [8]. - The company has been under continuous risk of delisting due to negative net profits in 2015 and 2016, and its stock is still under risk warning as of 2018 [8]. - The company is facing operational risks related to potential relocation or shutdown due to its classification as a hazardous chemical production enterprise in a densely populated area [9]. - The company has not been able to secure favorable credit from financial institutions during the reorganization period, leading to financing difficulties [5]. - The company experienced two fire incidents in the diammonium system, leading to prolonged shutdowns and increased repair costs [39]. - The company is undergoing a judicial reorganization process, with the reorganization plan approved by the court on November 26, 2018 [43]. - The company is currently undergoing a judicial reorganization plan, which is still in the execution phase, creating uncertainties in production and operations [125]. Debt and Liabilities - The company has provided guarantees for loans amounting to CNY 21,758.02 million for Hunan Zhongcheng, which remains unpaid, and has settled CNY 10,917.32 million as part of a debt restructuring plan [7]. - The company recorded a debt restructuring gain of 1.22 billion RMB due to the execution of the reorganization plan [45]. - The company executed a debt restructuring plan, resulting in a repayment of 109.17 million to creditors [140]. - The company faced a debt of 154.70 million from Hunan Zhongcheng, which remains unpaid as of the report date [140]. - The company has been involved in multiple lawsuits, including a contract dispute with Xi'an Shangu Engineering Technology Co., with a principal debt of RMB 10.5 million, which has been adjudicated [152]. - The company has completed debt repayment related to several lawsuits, as confirmed by the management and approved by the Liuzhou Intermediate Court [154]. Shareholder and Capital Structure - The company expanded its total share capital to 798,695,026 shares as part of the equity adjustment plan [45]. - The restructuring plan includes a capital increase from 399.35 million shares to 798.70 million shares, with a debt conversion price set at 4.83 yuan per share [149]. - The largest shareholder, Liuhua Group, saw its ownership percentage decrease from 5.72% to 2.86% after the share conversion [176]. - The restructuring investor, Yuantong Company, increased its shareholding from 3.47% to 25.22%, becoming the controlling shareholder [177]. - The total number of ordinary shareholders increased from 27,527 to 29,583 during the reporting period [179]. - The total equity structure post-conversion shows that the combined shareholding of the four major stakeholders is 28.46% [178]. - The conversion of capital reserves improved the company's financial situation by increasing net assets per share and settling debts [176]. Environmental and Safety Management - The company reported a total pollutant discharge of 54.9 tons of ammonia nitrogen and 262.9 tons of chemical oxygen demand during the reporting period, exceeding the permitted limits [163]. - The company’s nitrogen fertilizer industry pollutant discharge limits were set at 26 tons of ammonia nitrogen, 208 tons of chemical oxygen demand, 663.11 tons of sulfur dioxide, 376.32 tons of nitrogen oxides, 195.26 tons of particulate matter, and 350 tons of ammonia for the year [163]. - The company’s actual emissions exceeded the permitted discharge limits for sulfur dioxide and ammonia nitrogen by 3.14% and 180% respectively [164]. - The company maintained a 98% operational rate for its environmental protection facilities during the reporting period [166]. - The company has established an emergency response plan for environmental incidents to minimize damage in case of accidents [167]. - The company is committed to enhancing safety and environmental management to mitigate responsibility risks associated with new regulations [128]. Research and Development - The company is engaged in research and development of new technologies, particularly in environmental protection, such as tail gas treatment and wastewater management [85]. - The company applied for 3 patents in 2018, including 1 core invention patent, and holds a total of 25 valid patents by the end of 2018 [90]. - The company has established a research and development organization with 157 R&D personnel, including 37 with senior titles [90]. Management and Governance - The company has maintained a stable management structure with no new appointments or departures reported during the period [190]. - The company’s chairman and general manager, Lu Shengyun, received a total remuneration of 179,500 RMB (17.95 million RMB) [190]. - The independent directors received total remuneration ranging from 2,500 RMB to 5,000 RMB, with no shareholding changes reported [190]. - The company did not conduct a board and supervisory committee re-election during the reporting period due to ongoing restructuring efforts [193]. - The company has maintained a stable management team to ensure the smooth execution of its restructuring plan [193].

Financial Performance - The company's net profit for 2018 was CNY 387,131,950.45, but the cumulative distributable profit at the end of the period was negative at CNY -423,596,890.16[6]. - The company reported a significant asset impairment provision of CNY 469 million for 2018, leading to an operating loss of CNY 478 million[9]. - The company has faced continuous operating losses in recent years, raising concerns about its ability to sustain operations[9]. - The company has not proposed any profit distribution or capital reserve increase for 2018 due to financial constraints and the need to maintain ongoing operations[6]. - The company's operating revenue for 2018 was approximately ¥2.01 billion, representing a year-on-year increase of 9.75% compared to ¥1.83 billion in 2017[24]. - The net profit attributable to shareholders for 2018 was approximately ¥390.30 million, a significant increase of 534.11% from ¥61.55 million in 2017[24]. - The basic earnings per share for 2018 was ¥0.90, reflecting a 500% increase from ¥0.15 in 2017[26]. - The net cash flow from operating activities decreased by 91.42% to approximately ¥24.16 million, primarily due to a government subsidy of ¥330 million received in the previous year[27]. - The total assets at the end of 2018 were approximately ¥2.74 billion, a decrease of 14.39% from ¥3.20 billion at the end of 2017[25]. - The company's net assets attributable to shareholders increased significantly to approximately ¥2.19 billion, a rise of 5,566.08% from ¥38.63 million at the end of 2017[25]. Restructuring and Legal Issues - The company is currently undergoing a restructuring plan approved by the court, but the execution of this plan is still in progress, posing risks of bankruptcy if not completed[9]. - The company has faced risks of delisting due to negative net profits in previous years, and its stock continues to be under delisting risk warning[9]. - The company has not received favorable credit from financial institutions during the restructuring period, complicating its financing efforts[6]. - The company underwent judicial reorganization in 2018, which resulted in substantial debt restructuring gains contributing to the net profit[26]. - The company is undergoing a judicial restructuring process, with the plan approved by the court on November 26, 2018, aiming to improve asset structure and profitability[44]. - The company executed a debt restructuring plan, resulting in a repayment of 10,917.32 million RMB to creditors[141]. - The company has been involved in multiple significant lawsuits, including a contract dispute with Xi'an Shangu Engineering Technology Co., with a principal debt of RMB 10.5 million, which has been adjudicated[155]. - The company has faced a total of 9 lawsuits related to financial loan contracts, with various principal amounts involved, indicating a high level of legal disputes during the reporting period[156]. Operational Challenges - The company has faced operational pressures due to its location in a densely populated urban area, which may require relocation or closure under new regulations[42]. - The company is at risk of being relocated or shut down due to its operations being in a densely populated urban area[10]. - The company experienced two fire incidents in its diammonium system, leading to prolonged shutdowns and increased repair costs[40]. - The company’s ammonia production capacity utilization rate declined, impacting the performance of subsequent ammonia processing products[45]. - The company’s ammonia production capacity is significantly impacted by a fire incident in December 2018, leading to a reduction in subsequent ammonia processing product capacity[129]. Market and Product Performance - The chemical industry saw a market recovery during the reporting period, with product prices maintaining relatively high levels due to rising costs and stricter safety and environmental regulations[38]. - The company adjusted its sales model to improve customer service and optimize product market layout, resulting in increased revenue despite limited production capacity[45]. - The sales volume of urea decreased by 30.68%, while the sales volume of 27.5% hydrogen peroxide increased by 23.15%[55]. - The company achieved a total sales volume of 59,700 tons for 50% hydrogen peroxide in 2018, capturing approximately 39.80% market share in the region[89]. - The company sold 240,100 tons of ammonium nitrate in 2018, achieving a regional market share of approximately 50.13%[86]. Environmental and Safety Management - The company is focusing on soil pollution risk management in response to the implementation of the Soil Pollution Prevention and Control Law starting January 1, 2019[79]. - The company is engaged in research and development of new environmental technologies, including waste gas treatment and wastewater recovery[86]. - The total annual pollutant discharge limits for the nitrogen fertilizer industry were set at 26 tons of ammonia nitrogen, 208 tons of chemical oxygen demand, 663.11 tons of sulfur dioxide, 376.32 tons of nitrogen oxides, 195.26 tons of particulate matter, and 350 tons of ammonia[167]. - Actual emissions during the reporting period were 54.9 tons of ammonia nitrogen, 262.9 tons of chemical oxygen demand, 892.1 tons of sulfur dioxide, 618.4 tons of nitrogen oxides, 168.5 tons of particulate matter, and 112.6 tons of ammonia, exceeding the permitted limits[167]. - The company has a 98% operational rate for environmental protection facilities, ensuring real-time monitoring of emissions[169]. Shareholder and Governance Changes - The company underwent a capital increase through a capital reserve transfer, increasing total shares from 399,347,513 to 798,695,026 shares[152]. - The restructuring plan allowed the major shareholder, Liu Hua Group, to reduce its holding from 5.72% to 2.86%, while the new major shareholder, Yuan Tong Company, increased its stake from 3.47% to 25.22%[182]. - The total number of shareholders increased from 27,527 to 29,583 by the end of the reporting period[184]. - The company has a three-year lock-up period for shares held by Yuan Tong Company and Liu Hua Group starting from December 17, 2018, preventing any reduction in holdings[191]. - The company has maintained stable shareholding among its directors, with no changes in shareholdings reported for the year[195]. Research and Development - The company applied for 3 patents in 2018, including 1 core invention patent, bringing the total number of valid patents to 25 by the end of 2018[91]. - The total research and development expenditure was ¥4,628,784.37, representing 0.23% of total operating income[65]. - Research and development expenses remained stable at CNY 4.63 million, showing a slight decrease of 0.08%[49].

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].

Financial Performance - Net profit attributable to shareholders decreased by 80.11% to CNY 8,090,953.33 compared to the same period last year[5] - Operating revenue increased by 32.54% to CNY 523,138,398.91 compared to the same period last year[5] - The company reported a net profit of 8.09 million yuan for the reporting period, indicating an improvement in profitability[15] - The company received a government subsidy of 710 million yuan, which significantly contributed to its profitability; without this subsidy, the company would have incurred a loss of 648.45 million yuan[15] - Total operating revenue for Q1 2018 was CNY 523,138,398.91, an increase of 32.5% compared to CNY 394,688,683.03 in the same period last year[30] - The total comprehensive income for the first quarter of 2018 was CNY 30,249,427.82, compared to CNY 83,815,123.44 in the same period last year, reflecting a significant decrease[33] - Basic earnings per share for the first quarter were CNY 0.08, down from CNY 0.21 year-over-year[33] Assets and Liabilities - Total assets increased by 2.21% to CNY 3,274,356,552.62 compared to the end of the previous year[5] - As of March 31, 2018, total assets amounted to 3.27 billion yuan, an increase from 3.20 billion yuan at the beginning of the year[22] - The company's total liabilities reached approximately 3.23 billion yuan, compared to 3.17 billion yuan at the beginning of the year[23] - The company's current liabilities totaled approximately 2.32 billion yuan, a decrease from 2.50 billion yuan at the beginning of the year[23] - Total liabilities increased to CNY 2,673,599,940.55, up from CNY 2,641,606,273.90, representing a rise of 1.2%[27] - Long-term borrowings rose to CNY 501,204,505.61, compared to CNY 252,804,505.61 in the previous year, indicating a significant increase of 97.9%[27] Cash Flow - Cash flow from operating activities decreased by 95.06% to CNY 5,565,205.92 compared to the same period last year[5] - Cash inflows from operating activities totaled CNY 280,620,415.34, a decrease of 41.3% from CNY 478,240,097.55 in the previous year[35] - Net cash flow from operating activities was CNY 5,565,205.92, down 95.1% from CNY 112,562,473.27 in the same period last year[36] - Cash outflows from operating activities amounted to CNY 275,055,209.42, a decrease of 24.8% compared to CNY 365,677,624.28 in the previous year[36] - Cash flow from financing activities showed a net outflow of CNY 14,868,292.72, an improvement from a net outflow of CNY 168,017,544.78 in the previous year[36] - The company received CNY 134,722,000.00 from borrowings, a decrease of 83.5% from CNY 815,173,416.99 in the same period last year[36] - The company paid CNY 136,700,000.00 in debt repayments, down from CNY 907,526,814.13 in the previous year[36] - The net increase in cash and cash equivalents for the period was CNY -9,303,086.80, compared to CNY -57,733,852.41 in the same period last year[36] Management and Operational Challenges - The company is undergoing a judicial reorganization process, with the first creditors' meeting approving the reorganization plan[16] - The company faces risks of bankruptcy if the reorganization fails, which could impact its ongoing operations[16] - The company has emphasized the need to enhance internal management and marketing strategies to improve product quality and increase revenue[16] Inventory and Receivables - Accounts receivable increased by 175.89% compared to the beginning of the period due to increased payment settlements using notes[10] - Inventory increased by 45.75% compared to the beginning of the period due to higher stock levels of finished goods and raw materials[10] - The company reported a significant increase in accounts receivable, rising to approximately 81.79 million yuan from 67.19 million yuan[21] - The company’s inventory increased to approximately 323.92 million yuan, up from 222.25 million yuan at the beginning of the year[21] Financial Ratios - The weighted average return on equity increased by 995.70 percentage points to 18.96%[5] - The company reported a basic earnings per share of CNY 0.02, down from CNY 0.10 in the same quarter last year[32] - The total current assets were CNY 1,139,834,089.72, an increase from CNY 1,016,620,089.99, marking a growth of 12.1%[27] - The company’s total equity increased to CNY 294,656,475.57 from CNY 262,363,454.29, reflecting a growth of 12.3%[27] - Management expenses decreased to CNY 42,099,255.12 from CNY 50,401,109.66, a reduction of 16.1%[31]