[Definitions](index=4&type=section&id=Definitions) This section provides definitions of key terms used throughout the report [Company Profile and Key Financial Indicators](index=4&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section introduces the company's basic information and presents its key financial performance indicators [Company Information](index=4&type=section&id=Company%20Information) This section provides basic information about Xinjiang Qingsong Building Materials and Chemical (Group) Co., Ltd., including its name, legal representative, and contact details - The company's full name is Xinjiang Qingsong Building Materials and Chemical (Group) Co., Ltd., abbreviated as **Qingsong Building Materials**, with Zheng Shujian as its legal representative[14](index=14&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's H1 2020 operating revenue grew 1.49% to 1.328 billion CNY, with net profit attributable to shareholders increasing 4.80% to 116 million CNY, despite a significant decline in non-recurring net profit and operating cash flow Key Accounting Data (January-June 2020) | Key Accounting Data | Current Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,328,056,600.00 | 1,308,612,600.00 | 1.49% | | Net Profit Attributable to Listed Company Shareholders | 115,811,300.00 | 110,501,900.00 | 4.80% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains/Losses) | 98,397,000.00 | 121,392,700.00 | -18.94% | | Net Cash Flow from Operating Activities | 91,830,300.00 | 491,898,700.00 | -81.33% | | | **End of Current Period (CNY)** | **End of Prior Year (CNY)** | **Change from Prior Year-End (%)** | | Net Assets Attributable to Listed Company Shareholders | 4,770,829,400.00 | 4,652,190,900.00 | 2.55% | | Total Assets | 8,356,511,300.00 | 7,988,610,900.00 | 4.61% | Key Financial Indicators (January-June 2020) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.084 | 0.08 | 5.00% | | Basic Earnings Per Share (Excluding Non-recurring Gains/Losses) (CNY/share) | 0.071 | 0.088 | -19.32% | | Weighted Average Return on Net Assets (%) | 2.459% | 2.472% | Decreased by 0.01 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 2.089% | 2.712% | Decreased by 0.62 percentage points | [Non-recurring Gains and Losses and Amounts](index=6&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses for the period amounted to approximately 17.41 million CNY, primarily driven by 14.66 million CNY in government subsidies Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 948,688.02 | | Government subsidies recognized in current profit/loss | 14,660,097.74 | | **Total** | **17,414,263.31** | [Business Overview](index=7&type=section&id=Business%20Overview) This section outlines the company's principal business activities, operating model, and industry landscape [Principal Business, Operating Model, and Industry Overview](index=7&type=section&id=Principal%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Overview) The company's core business is cement, building materials, and chemicals, operating in a competitive Xinjiang market with overcapacity, but benefiting from national supply-side reforms - The company primarily engages in the production and sale of **cement, building materials, and chemical products**[27](index=27&type=chunk) - The cement industry faces severe overcapacity and intense market competition but benefits from national macro-control policies like **staggered production** and **elimination of outdated capacity**[27](index=27&type=chunk) [Analysis of Core Competencies](index=7&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies include its "Qingsong Brand" reputation, advanced special cement technology, strategic capacity layout, large-scale production, stable limestone resources, and supportive government policies - **Brand Advantage**: The "Qingsong Brand" cement enjoys a high reputation in Xinjiang, aiding market expansion and share stability[30](index=30&type=chunk) - **Technological R&D Advantage**: The company possesses leading technology in special cements like oil well cement and road cement, and has obtained international API certification[31](index=31&type=chunk) - **Capacity and Layout Advantage**: With **15 million tons** of new dry-process cement capacity, production lines are strategically located along key oasis cities in Xinjiang, providing a first-mover and cost advantage[32](index=32&type=chunk)[33](index=33&type=chunk) - **Resource and Policy Advantage**: The company owns high-grade limestone mineral resources and benefits from industrial policy support as the largest cement enterprise in the Xinjiang Production and Construction Corps (XPCC)[34](index=34&type=chunk)[35](index=35&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=Discussion%20and%20Analysis%20of%20Operations) This section provides a comprehensive review and analysis of the company's operational performance during the reporting period [Operations Discussion and Analysis](index=9&type=section&id=Operations%20Discussion%20and%20Analysis) In H1 2020, net profit attributable to shareholders grew 4.80% to 116 million CNY, driven by increased cement sales and reduced expenses, despite lower cement prices and chemical segment losses - During the reporting period, the company's net profit attributable to shareholders was **116 million CNY**, a year-on-year increase of **4.80%**[38](index=38&type=chunk) - Performance drivers include **increased cement sales**, **decreased interest expenses**, and **decreased administrative expenses**[38](index=38&type=chunk) - Negative influencing factors include **decreased average cement selling price** leading to lower gross profit margin, and **continued losses in the chemical segment**[38](index=38&type=chunk) [Key Operating Performance](index=9&type=section&id=Key%20Operating%20Performance) This section details H1 operating results, highlighting increased operating costs, significant expense reductions, shifts in asset and liability accounts, and substantial losses from the chemical subsidiary [Analysis of Principal Business](index=9&type=section&id=Analysis%20of%20Principal%20Business) Operating revenue slightly increased by 1.49% while costs rose 17.03%; sales, administrative, and financial expenses significantly decreased, but operating cash flow declined 81.33% as financing cash flow turned positive Financial Statement Key Item Changes | Item | Current Period (CNY) | Prior Year Period (CNY) | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,328,056,607.43 | 1,308,612,589.21 | 1.49 | | Operating Cost | 969,662,262.90 | 828,537,795.77 | 17.03 | | Sales Expenses | 18,620,049.06 | 40,730,080.57 | -54.28 | | Administrative Expenses | 98,131,714.36 | 113,845,031.88 | -13.80 | | Financial Expenses | 58,304,173.34 | 97,722,297.73 | -40.34 | | Net Cash Flow from Operating Activities | 91,830,306.39 | 491,898,681.91 | -81.33 | | Net Cash Flow from Investing Activities | -9,412,332.42 | -98,362,638.91 | -90.43 | | Net Cash Flow from Financing Activities | 353,288,205.52 | -300,816,990.10 | 217.44 | [Analysis of Assets and Liabilities](index=10&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Total assets reached 8.357 billion CNY; monetary funds and notes receivable increased, while construction in progress decreased; debt structure adjustments were evident with increased borrowings and reduced payables Major Asset and Liability Item Changes | Item Name | End of Current Period (CNY) | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 830,129,100.00 | 44.58 | Net increase in cash and cash equivalents year-on-year | | Notes Receivable | 277,008,600.00 | 246.23 | Increase in accepted commercial bills year-on-year | | Construction in Progress | 119,393,900.00 | -88.51 | Completion and capitalization of subsidiary's chemical construction project | | Short-term Borrowings | 1,064,810,000.00 | 74.85 | Increase in short-term bank borrowings year-on-year | | Notes Payable | 9,947,900.00 | -96.73 | Decrease in bank acceptance bills issued year-on-year | | Non-current Liabilities Due Within One Year | 376,908,700.00 | -68.18 | Decrease in long-term borrowings due within the year | | Long-term Borrowings | 744,568,500.00 | 79.56 | Increase in long-term bank loans obtained year-on-year | [Analysis of Major Holding and Participating Companies](index=13&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Alar Qingsong Chemical Co., Ltd. incurred significant losses of 81.4137 million CNY, negatively impacting overall performance, while other subsidiaries achieved profitability Major Holding and Participating Companies Operating Performance (CNY) | Subsidiary Name | Business Nature | Shareholding (%) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Alar Qingsong Chemical Co., Ltd. | Industrial | 96.59 | 100,333,900 | -81,413,700 | | Bazhou Qingsong Luyuan Building Materials Co., Ltd. | Industrial | 65.00 | 53,414,200 | 16,110,700 | | Yili Qingsong Nangang Building Materials Co., Ltd. | Industrial | 51.00 | 137,697,000 | 18,155,900 | | Guodian Aksu River Basin Hydropower Development Co., Ltd. | Hydropower Generation | 24.81 | 81,077,500 | -12,572,500 | | Guodian Qingsong Kuche Mining Development Co., Ltd. | Mining Investment | 30.20 | Under Construction | -24,003,700 | [Significant Matters](index=14&type=section&id=Significant%20Matters) This section details important events and developments impacting the company during the reporting period [Profit Distribution Plan](index=14&type=section&id=Profit%20Distribution%20Plan) The company proposes no profit distribution or capitalization of capital reserves for H1 2020 - The 2020 semi-annual profit distribution plan is **no distribution and no capitalization**[57](index=57&type=chunk) [Significant Contracts and Their Performance](index=17&type=section&id=Significant%20Contracts%20and%20Their%20Performance) Total external guarantees reached 835 million CNY, or 17.95% of net assets, including 535 million CNY for subsidiaries and 300 million CNY for non-subsidiaries Company Total Guarantee Amount (CNY) | Item | Amount (CNY) | | :--- | :--- | | Total guarantees for subsidiaries at period-end (B) | 535,296,100 | | Total guarantees at period-end (A) (excluding guarantees for subsidiaries) | 300,000,000 | | **Total Guarantees (A+B)** | **835,296,100** | | Total guarantees as a percentage of company net assets (%) | 17.95 | - Guarantees provided to shareholders, actual controllers, and their related parties amounted to **200 million CNY**[72](index=72&type=chunk) [Environmental Information](index=20&type=section&id=Environmental%20Information) The company and its subsidiaries are key pollutant-discharging entities, maintaining compliance with environmental regulations, with all emissions within limits and robust environmental management systems - The company and several subsidiaries are key pollutant-discharging entities, with primary pollutants being **dust, sulfur dioxide, and nitrogen oxides**, and no exceedances in emissions during the reporting period[75](index=75&type=chunk)[78](index=78&type=chunk) - The company's environmental facilities adhere to the "three simultaneities" principle (simultaneous design, construction, and operation), with online monitoring facilities operating normally and an effective transmission rate of over **98%**[82](index=82&type=chunk) - All cement production enterprises have obtained environmental impact assessment approvals, environmental acceptance, and pollutant discharge permits, and have formulated emergency response plans for environmental incidents[83](index=83&type=chunk)[84](index=84&type=chunk) [Changes in Ordinary Shares and Shareholder Information](index=23&type=section&id=Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section outlines changes in the company's ordinary shares and provides an overview of its shareholder structure [Shareholder Information](index=24&type=section&id=Shareholder%20Information) The company had 88,876 ordinary shareholders, with Alar Tongzhong State-owned Assets Management Co., Ltd. as the largest at 26.21%, and concerted parties among the top ten - As of the end of the reporting period, the company had a total of **88,876 ordinary shareholders**[92](index=92&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period-End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Alar Tongzhong State-owned Assets Management Co., Ltd. | 361,367,646 | 26.21 | State-owned Legal Person | | Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. | 42,163,052 | 3.06 | State-owned Legal Person | | Central Huijin Asset Management Co., Ltd. | 34,080,000 | 2.47 | State-owned Legal Person | | Zhongxin Jianzhao Investment Co., Ltd. | 27,800,000 | 2.02 | State-owned Legal Person | | Wang Yong | 13,047,549 | 0.95 | Domestic Natural Person | - Among the top ten shareholders, Alar Tongzhong State-owned Assets Management Co., Ltd. and Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. are **concerted parties**[95](index=95&type=chunk) [Financial Report](index=26&type=section&id=Financial%20Report) This section presents the company's financial statements and related notes for the reporting period [Financial Statements](index=27&type=section&id=Financial%20Statements) This unaudited semi-annual report shows consolidated total assets of 8.357 billion CNY and equity attributable to parent company owners of 4.771 billion CNY as of June 30, 2020, with H1 operating revenue of 1.328 billion CNY and net profit of 116 million CNY - This semi-annual report is **unaudited**[6](index=6&type=chunk) Consolidated Balance Sheet Key Items (June 30, 2020) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 8,356,511,332.27 | | Total Liabilities | 3,649,206,941.75 | | Total Equity Attributable to Parent Company Owners | 4,770,829,402.18 | Consolidated Income Statement Key Items (January-June 2020) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 1,328,056,607.43 | | Total Profit | 192,523,746.28 | | Net Profit Attributable to Parent Company Shareholders | 115,811,265.83 | Consolidated Cash Flow Statement Key Items (January-June 2020) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 91,830,306.39 | | Net Cash Flow from Investing Activities | -9,412,332.42 | | Net Cash Flow from Financing Activities | 353,288,205.52 | | Net Increase in Cash and Cash Equivalents | 435,706,179.49 | [Changes in Significant Accounting Policies and Estimates](index=63&type=section&id=Changes%20in%20Significant%20Accounting%20Policies%20and%20Estimates) Effective January 1, 2020, the company adopted the new revenue recognition standard, reclassifying "advances from customers" to "contract liabilities," with no significant impact on financial position or results - The company adopted the new revenue recognition standard (Cai Kuai [2017] No. 22) effective **January 1, 2020**[269](index=269&type=chunk) Impact of Accounting Policy Change on Opening Consolidated Balance Sheet | Item | December 31, 2019 (CNY) | January 1, 2020 (CNY) | Adjustment Amount (CNY) | | :--- | :--- | :--- | :--- | | Advances from Customers | 90,061,595.13 | 0 | -90,061,595.13 | | Contract Liabilities | 0 | 90,061,595.13 | 90,061,595.13 | [Notes to Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details key consolidated financial statement items, including restricted monetary funds, high accounts receivable bad debt provisions, increased construction in progress, and reclassification of advances from customers - Period-end monetary funds totaled **830 million CNY**, including **18.80 million CNY** in restricted funds for bank acceptance bill deposits and mine safety deposits[302](index=302&type=chunk) - Period-end accounts receivable balance was **368 million CNY**, with a provision for doubtful accounts of **61.34 million CNY**, and an aging-based provision rate of **16.66%**[313](index=313&type=chunk) - Period-end construction in progress book value was **119 million CNY**, an increase from the beginning of the period, with major projects including a 300,000 tons/year caustic soda project, waste heat power generation project, and intelligent factory system[375](index=375&type=chunk) [Interests in Other Entities](index=123&type=section&id=Interests%20in%20Other%20Entities) This section discloses the company's enterprise group structure and interests in significant non-wholly owned subsidiaries and associates across various industries - The company controls multiple subsidiaries through establishment or acquisition, with business scope covering **industrial, commercial, and freight transportation**[499](index=499&type=chunk)[502](index=502&type=chunk) Summary of Financial Information for Significant Non-Wholly Owned Subsidiaries (January-June 2020) | Subsidiary Name | Minority Shareholding (%) | Current Period Profit/Loss Attributable to Minority Shareholders (CNY) | Minority Interest Balance at Period-End (CNY) | | :--- | :--- | :--- | :--- | | Alar Qingsong Chemical Co., Ltd. | 3.41 | -2,775,467.51 | -12,805,439.52 | | Bazhou Qingsong Luyuan Building Materials Co., Ltd. | 35 | 5,638,757.18 | 123,070,621.72 | | Yili Qingsong Nangang Building Materials Co., Ltd. | 49 | 6,927,891.40 | -179,635,162.56 | - The company made equity investments in several energy, construction, and mining companies, accounted for using the equity method, with total investment income/loss recognized during the reporting period of **1.35 million CNY**[512](index=512&type=chunk)[357](index=357&type=chunk) [Related Parties and Related Party Transactions](index=131&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) The company's parent is Alar Tongzhong State-owned Assets Management Co., Ltd., with significant related party transactions including electricity purchases and guarantees - The company's parent company is **Alar Tongzhong State-owned Assets Management Co., Ltd.**, holding **26.21%** of shares, and the ultimate controlling party is the **State-owned Assets Supervision and Administration Commission of the First Division of Xinjiang Production and Construction Corps**[525](index=525&type=chunk)[528](index=528&type=chunk) Major Related Party Purchase Transactions | Related Party | Related Transaction Content | Amount Incurred in Current Period (CNY) | | :--- | :--- | :--- | | Xinjiang Production and Construction Corps First Division Power Co., Ltd. | Purchase of Goods | 69,013,676.76 | | Aksu Qingsong Logistics Co., Ltd. | Purchase of Goods | 12,260,417.73 | - The company provided multiple guarantees for related party Xinjiang Production and Construction Corps First Division Power Co., Ltd., with a total outstanding balance of **200 million CNY** at period-end[534](index=534&type=chunk) [Documents Available for Inspection](index=152&type=section&id=Documents%20Available%20for%20Inspection) This section lists the documents available for public review

Group 1: Event Details - The company will participate in the 2020 Xinjiang Listed Companies Investor Online Reception Day on June 24, 2020, from 15:00 to 17:30 [2] - The event will be conducted remotely via the "Panjing Roadshow" online platform [2] - Investors can access the event through the website (http://rs.p5w.net/) or the WeChat public account: Panjing Finance (WeChat ID: p5w2012) [2] Group 2: Company Representatives - The attendees from the company include Chairman Zheng Shujian, Secretary of the Board Jiang Junkai, and Chief Financial Officer Chen Xia [2] - The board guarantees the announcement's content is truthful, accurate, and complete, assuming individual and joint responsibility [2] Group 3: Purpose of the Event - The event aims to provide investors with a comprehensive understanding of the company's situation, development strategy, operational status, financing plans, and sustainable development [2] - The company encourages active participation from investors [2]

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The Board of Directors, Supervisory Board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume legal responsibility - The company's Board of Directors, Supervisory Board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume legal responsibility[7](index=7&type=chunk) - The company's Q1 2020 report is unaudited[10](index=10&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2020, the company's operating revenue decreased by 7.10% year-over-year, with a net loss attributable to shareholders of **75.51 million yuan**, expanding by 3.74%, and operating cash flow turned negative, decreasing by 397.74% due to increased procurement expenses Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Ten Thousand Yuan) | 16,722.17 | 17,999.38 | -7.10% | | Net Profit Attributable to Shareholders of Listed Company (Ten Thousand Yuan) | -7,550.82 | -7,278.89 | -3.74% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses (Ten Thousand Yuan) | -8,376.40 | -9,384.32 | 10.74% | | Net Cash Flow from Operating Activities (Ten Thousand Yuan) | -24,672.01 | 8,286.51 | -397.74% | | Basic Earnings Per Share (Yuan/Share) | -0.055 | -0.053 | -3.78% | | Weighted Average Return on Net Assets (%) | -1.636% | -1.662% | Increased by 0.026 percentage points | - Non-recurring gains and losses totaled **8.26 million yuan** for the period, primarily comprising government subsidies of **8.95 million yuan** recognized in current profit and loss[14](index=14&type=chunk) [Shareholding Information](index=5&type=section&id=2.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 96,419 shareholders, with the top ten primarily state-owned legal entities, led by Alar Tongzhong State-owned Assets Management Co., Ltd. holding 26.21% Top Ten Shareholders | Shareholder Name | Number of Shares (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Alar Tongzhong State-owned Assets Management Co., Ltd. | 361,367,646 | 26.21 | State-owned Legal Entity | | Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. | 42,163,052 | 3.06 | State-owned Legal Entity | | Central Huijin Asset Management Co., Ltd. | 34,080,000 | 2.47 | State-owned Legal Entity | | Zhongxin Jianzhao Investment Co., Ltd. | 27,800,000 | 2.02 | State-owned Legal Entity | | Wang Yong | 22,591,149 | 1.64 | Domestic Natural Person | - Among the top ten shareholders, Alar Tongzhong State-owned Assets Management Co., Ltd. and Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. are parties acting in concert; Zhongxin Jianzhao Investment Co., Ltd. and Xinjiang Production and Construction Corps Investment Co., Ltd. are parties acting in concert[20](index=20&type=chunk) [Significant Matters](index=6&type=section&id=Item%20III.%20Significant%20Matters) [Analysis of Significant Changes in Major Accounting Statement Items and Financial Indicators](index=6&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators) Multiple financial indicators experienced significant changes during the reporting period, reflecting adjustments in the company's operations and financing, including a **161.92% increase** in prepayments and a **397.74% decrease** in operating cash flow - Prepayments increased by **161.92%** from the beginning of the year, mainly for raw material reserves for production and operations, with some materials requiring advance payment[22](index=22&type=chunk) - Short-term borrowings increased by **44.19%** from the beginning of the year, primarily due to increased bank short-term loans obtained in Q1[22](index=22&type=chunk) - Net cash flow from operating activities decreased by **397.74%** year-over-year, mainly due to increased cash payments for goods purchased and services received[24](index=24&type=chunk) - Financial expenses decreased by **51.95%** year-over-year, primarily due to a decrease in interest-bearing debt[24](index=24&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) The appendix provides the company's unaudited consolidated and parent company financial statements for Q1 2020, including the balance sheet, income statement, and cash flow statement, reflecting the financial position and performance [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, total assets were **7.78 billion yuan**, a 2.55% decrease from year-end; total liabilities were **3.28 billion yuan**, a 3.64% decrease; and total equity attributable to the parent company was **4.58 billion yuan**, a 1.62% decrease Consolidated Balance Sheet Summary | Item | March 31, 2020 (Yuan) | December 31, 2019 (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 7,784,674,254.31 | 7,988,610,860.94 | -2.55% | | Total Liabilities | 3,284,166,924.87 | 3,408,305,070.24 | -3.64% | | Total Equity Attributable to Parent Company Owners | 4,576,831,281.29 | 4,652,190,924.16 | -1.62% | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2020, total operating revenue was **167.22 million yuan**, a 7.10% year-over-year decrease; total operating costs were **248.70 million yuan**, an 8.78% decrease; and net loss attributable to parent company shareholders was **75.51 million yuan**, an expansion of 3.74% year-over-year Consolidated Income Statement Summary | Item | Q1 2020 (Yuan) | Q1 2019 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 167,221,659.42 | 179,993,777.23 | -7.10% | | II. Total Operating Costs | 248,703,910.66 | 272,629,334.66 | -8.78% | | III. Operating Profit | -79,814,676.68 | -97,776,561.29 | Loss narrowed | | IV. Total Profit | -79,164,389.37 | -98,565,153.37 | Loss narrowed | | Net Profit Attributable to Parent Company Shareholders | -75,508,213.68 | -72,788,934.27 | -3.74% | | Basic Earnings Per Share (Yuan/Share) | -0.055 | -0.053 | -3.78% | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities was **-246.72 million yuan**, a significant decrease of 397.74% year-over-year, primarily due to increased cash payments for goods; net cash flow from investing activities was **-4.20 million yuan**, a reduced outflow; and net cash flow from financing activities turned positive at **224.26 million yuan** due to increased borrowings Consolidated Cash Flow Statement Summary | Item | Q1 2020 (Yuan) | Q1 2019 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -246,720,083.72 | 82,865,120.51 | -397.74% | | Net Cash Flow from Investing Activities | -4,196,035.00 | -26,466,118.06 | Outflow decreased by 84.15% | | Net Cash Flow from Financing Activities | 224,263,917.17 | -24,086,792.13 | Turned positive | [Parent Company Financial Statements](index=11&type=section&id=Parent%20Company%20Financial%20Statements) The parent company's financial statements reflect similar operational trends, with a net loss of **32.42 million yuan** in Q1 2020 and net cash flow from operating activities of **-246.72 million yuan**, highlighting long-term equity investments in subsidiaries as core assets - The parent company's net loss for Q1 2020 was **32.42 million yuan**, a reduction from the **58.66 million yuan** net loss in the same period last year[51](index=51&type=chunk) - The parent company's net cash flow from operating activities was **-246.72 million yuan**, primarily due to a significant increase in other cash payments related to operating activities[59](index=59&type=chunk)

Financial Performance - The company's operating revenue for 2019 was CNY 313,949.11 million, representing a 30.08% increase compared to CNY 241,352.72 million in 2018[24]. - The net profit attributable to shareholders of the listed company decreased by 39.61% to CNY 22,054.29 million from CNY 36,522.24 million in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 174.32% to CNY 42,868.00 million from CNY 15,627.03 million in 2018[24]. - The net cash flow from operating activities was CNY 130,702.24 million, a 65.20% increase from CNY 79,119.70 million in 2018[24]. - Basic earnings per share decreased by 38.46% to CNY 0.16 in 2019 from CNY 0.26 in 2018[26]. - Diluted earnings per share also decreased by 38.46% to CNY 0.16 in 2019 from CNY 0.26 in 2018[26]. - The weighted average return on equity dropped by 3.76 percentage points to 4.87% in 2019 from 8.63% in 2018[26]. - The net profit attributable to shareholders in Q2 2019 was CNY 18,329.08 million, while in Q3 2019 it was CNY 12,077.33 million[29]. - The net cash flow from operating activities in Q4 2019 was CNY 70,466.71 million, showing a significant increase compared to previous quarters[29]. - The net profit attributable to shareholders decreased by 39.61% year-on-year to approximately 220.54 million RMB, primarily due to asset impairment provisions for four bankrupt subsidiaries[48]. Assets and Liabilities - The total assets at the end of 2019 were CNY 798,861.09 million, a decrease of 4.17% from CNY 833,665.15 million at the end of 2018[24]. - The net assets attributable to shareholders of the listed company increased by 5.36% to CNY 465,219.09 million from CNY 441,542.35 million in 2018[24]. - The company's total assets included cash and cash equivalents of 49,660.75 million yuan, which accounted for 6.22% of total assets, reflecting a 38.27% increase from the previous period[65]. - The company's long-term payables decreased by 52.90% year-on-year, totaling 13,107.24 million yuan[65]. Operational Efficiency - The company has maintained a stable total share capital of CNY 137,879.0086 million since 2017[24]. - The company reduced accounts receivable by approximately 40.26 million RMB year-on-year, indicating improved cash flow management[48]. - The cash flow from operating activities increased by 65.20% year-on-year, reflecting improved operational efficiency[49]. - The company's sales expenses increased by 21.87% year-on-year, while management expenses rose by 30.21%, mainly due to increased cement sales and salary expenses[62]. - The cash flow from investment activities was -35,153.87 million yuan, a decrease of 73,702.70 million yuan compared to the previous year, mainly due to reduced cash recovered from the disposal of fixed assets[63]. Market Position and Strategy - The company plans to continue focusing on market expansion and new product development in the upcoming year[7]. - The company is facing challenges due to overcapacity in the cement industry, with government policies aimed at reducing production capacity[38]. - The company plans to enhance its market position through government-supported measures to address overcapacity and improve operational efficiency[38]. - The company's cement production capacity exceeds 15 million tons, all of which are new dry-process cement, significantly influencing regional cement pricing[43]. - Cement sales volume increased by 894,800 tons year-on-year, with a substantial rise in sales prices due to improved market conditions[45]. - The company aims to enhance its core competitiveness by increasing the proportion of high-value-added products and accelerating new product development[88]. - The company is focusing on green transformation and innovation, optimizing circular economy practices, and seeking hazardous waste treatment qualifications[78]. - The company is responding to market changes with a strategy of "North Xinjiang contraction, South Xinjiang support, and closely monitoring the Belt and Road Initiative"[76]. Environmental and Social Responsibility - The company implemented strict pollution control measures, achieving a total dust emission of 13 tons per year, which is below the approved limit of 98.25 tons per year[121]. - The company utilized 2,574 tons of ammonia for pollution control during the year, with an effective transmission rate of over 98% for online monitoring equipment[128]. - All construction projects underwent environmental impact assessments and obtained necessary environmental permits, including discharge permits[129]. - The company maintained a zero-incident record for environmental pollution accidents in 2019[126]. - The company has established emergency response plans for environmental incidents, which have been filed with local environmental authorities[130]. - The company has enhanced its environmental management practices, focusing on green and harmonious development[126]. - The company has invested in new dust suppression equipment, which has shown effective results in controlling unorganized dust emissions[128]. - The company has constructed new material storage facilities to further improve its environmental performance[128]. - The company donated over 1,700 tons of cement and other materials to support local communities and poverty alleviation efforts[117]. - The company has established a labor output relationship with local governments to promote employment among ethnic minorities[117]. Governance and Compliance - The company has not faced any penalties from securities regulatory authorities in the past three years, indicating compliance with regulations[175]. - The company has established a governance structure that adheres to relevant laws and regulations, ensuring effective decision-making processes[182]. - The company has not disclosed any significant changes in its environmental information during the reporting period[135]. - The company has not issued any new securities during the reporting period[138]. - The company has no major shareholders holding more than 10% of shares[152]. - There were no changes in shareholding for the board members during the reporting period[155]. - The company has not reported any share reduction restrictions[152]. - There are no significant changes in the management team during the reporting period[155]. Employee Development - In 2019, the company organized 189 internal training sessions, training 8,387 employees[113]. - The company plans to conduct 350 training sessions in 2020, aiming to train 8,100 employees[113]. - The company has established a dynamic adjustment mechanism linking employee remuneration directly to company performance, enhancing employee motivation[177]. - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to RMB 3.8136 million[174]. - The company employed a total of 3,274 staff, including 2,562 production personnel, 73 sales personnel, 156 technical personnel, 98 financial personnel, and 385 administrative personnel[176]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to grow by 10% to 1.32 billion yuan[164]. - New product launches are anticipated to contribute an additional 200 million yuan in revenue over the next year[164]. - The company is investing 50 million yuan in R&D for new technologies aimed at improving production efficiency[164]. - Market expansion plans include entering two new provinces, projected to increase market share by 5%[164]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million yuan allocated for potential deals[164]. - The company plans to enhance its digital marketing efforts, with a budget increase of 25% for the upcoming fiscal year[164]. - A new partnership with a logistics firm is expected to reduce distribution costs by 15%[164].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Report Declaration and Audit Status](index=3&type=section&id=3.1-3.4) The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report, which remains unaudited - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or material omissions[7](index=7&type=chunk) - This company's Q3 2019 report is unaudited[10](index=10&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) [Key Financial Data](index=3&type=section&id=3.5%20Key%20Financial%20Data) As of the end of Q3 2019, the company's total assets increased by **7.12%** year-over-year; operating revenue grew by **30.08%**, but net profit attributable to parent company shareholders decreased by **48.85%** due to non-recurring gains and losses in the prior year, while core net profit after deducting non-recurring items surged by **263.08%**, and net cash flow from operating activities significantly increased by **148.28%** Key Financial Indicators for Q1-Q3 2019 | Indicator | Year-to-Date (Jan-Sep) | Prior Year-to-Date (Jan-Sep) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 2,539,120,166.05 Yuan | 1,951,930,945.71 Yuan | 30.08% | | **Net Profit Attributable to Shareholders of the Listed Company** | 231,275,231.27 Yuan | 452,109,589.34 Yuan | -48.85% | | **Net Profit After Deducting Non-Recurring Gains and Losses Attributable to Shareholders of the Listed Company** | 374,883,562.87 Yuan | 103,251,978.57 Yuan | 263.08% | | **Net Cash Flow from Operating Activities** | 602,355,291.05 Yuan | 242,608,594.16 Yuan | 148.28% | | **Basic Earnings Per Share (Yuan/share)** | 0.168 Yuan | 0.328 Yuan | -48.78% | | **Weighted Average Return on Net Assets (%)** | 5.104% | 10.580% | Decrease of 5.476 percentage points | - Total non-recurring gains and losses amounted to **-143,608,331.60 Yuan** during the reporting period, primarily influenced by gains/losses on disposal of non-current assets and other non-operating income and expenses[14](index=14&type=chunk)[17](index=17&type=chunk) [Shareholder Information](index=5&type=section&id=3.6%20Total%20Number%20of%20Shareholders,%20Top%20Ten%20Shareholders,%20and%20Shareholding%20Status%20of%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had **101,922** shareholders, with Alar Tongzhong State-owned Assets Management Co., Ltd. as the largest shareholder holding **26.21%**, and several top ten shareholders being state-owned legal entities or their affiliates - As of the end of the reporting period, the company had a total of **101,922** shareholders[17](index=17&type=chunk) Shareholding Status of Top Five Shareholders | Shareholder Name | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Alar Tongzhong State-owned Assets Management Co., Ltd. | 361,367,646 | 26.21 | State-owned Legal Entity | | Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. | 42,163,052 | 3.06 | State-owned Legal Entity | | Central Huijin Asset Management Co., Ltd. | 34,080,000 | 2.47 | State-owned Legal Entity | | Zhongxinjiang Merchants Equity Investment Co., Ltd. | 27,800,000 | 2.02 | State-owned Legal Entity | | Xinjiang Production and Construction Corps Investment Co., Ltd. | 10,300,000 | 0.75 | State-owned Legal Entity | - Among the top ten shareholders, Zhongxinjiang Merchants Equity Investment Co., Ltd. and Xinjiang Production and Construction Corps Investment Co., Ltd. are parties acting in concert[19](index=19&type=chunk)[20](index=20&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Indicators](index=6&type=section&id=3.8%20Significant%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators) During the reporting period, several of the company's financial indicators underwent significant changes, primarily driven by a recovery in the regional cement market leading to increases in both product volume and price, which boosted operating revenue and operating cash flow, while one-time events from the prior year, such as factory relocation compensation, caused substantial year-over-year fluctuations in asset disposal gains/losses and non-operating income/expenses - Operating revenue increased by **30.8%** year-over-year, primarily due to the recovery of the regional cement market, leading to significant year-over-year increases in both sales volume and prices of the company's main products[24](index=24&type=chunk) - Net cash flow from operating activities increased by **148.28%** year-over-year, consistent with revenue growth driven by increases in both volume and price of main products[24](index=24&type=chunk) - Accounts receivable increased by **108.07%** and prepayments increased by **220.64%** compared to the beginning of the year, primarily due to increased sales revenue and higher prepayments for raw materials and fuels[22](index=22&type=chunk) - Net cash flow from investing activities decreased by **120.96%** year-over-year, mainly because the prior period included compensation for subsidiary factory relocation, which was not present in the current period[24](index=24&type=chunk) [Financial Statements Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section includes the company's consolidated and parent company balance sheets, income statements, and cash flow statements for Q3 2019 [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2019, the company's total assets were **8.93 billion Yuan**, a **7.12%** increase from the end of the previous year, with total liabilities at **4.23 billion Yuan** and net assets attributable to shareholders of the listed company at **4.67 billion Yuan**, up **5.78%** from the end of the previous year, indicating a stable asset-liability structure Key Items of Consolidated Balance Sheet (September 30, 2019) | Item | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | 8,929,833,159.68 Yuan | 8,336,651,539.87 Yuan | | **Total Liabilities** | 4,225,474,986.83 Yuan | 4,276,443,117.10 Yuan | | **Total Equity Attributable to Parent Company Owners** | 4,670,426,964.75 Yuan | 4,415,423,481.30 Yuan | | **Total Owners' Equity** | 4,704,358,172.85 Yuan | 4,060,208,422.77 Yuan | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2019, the parent company's total assets were **9.89 billion Yuan** and total liabilities were **4.93 billion Yuan**, with both asset and liability scales exceeding the consolidated statements, reflecting the parent company's role as a holding platform with significant equity investments in subsidiaries and intercompany balances Key Items of Parent Company Balance Sheet (September 30, 2019) | Item | September 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | 9,893,150,919.09 Yuan | 9,030,077,114.78 Yuan | | **Total Liabilities** | 4,924,611,114.59 Yuan | 4,048,399,894.74 Yuan | | **Total Owners' Equity** | 4,968,539,804.50 Yuan | 4,981,677,220.04 Yuan | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2019, the company achieved total operating revenue of **2.54 billion Yuan**, a **30.08%** year-over-year increase, while net profit attributable to parent company shareholders was **231.28 million Yuan**, a **48.85%** year-over-year decrease, primarily due to significant non-recurring gains from asset disposal and relocation compensation in the prior year, with Q3 single-quarter net profit attributable to parent company shareholders at **121 million Yuan** Key Items of Consolidated Income Statement (Q1-Q3 2019) | Item | Q1-Q3 2019 | Q1-Q3 2018 | | :--- | :--- | :--- | | **I. Total Operating Revenue** | 2,539,120,166.05 Yuan | 1,951,930,945.71 Yuan | | **III. Operating Profit** | 512,725,777.62 Yuan | -83,278,751.91 Yuan | | **V. Net Profit** | 670,439,966.72 Yuan | 278,140,832.14 Yuan | | **Net Profit Attributable to Parent Company Shareholders** | 231,275,231.27 Yuan | 452,109,589.34 Yuan | | **Basic Earnings Per Share (Yuan/share)** | 0.168 | 0.328 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) For the first three quarters of 2019, the parent company's operating revenue reached **397.27 million Yuan**, a **23.4%** year-over-year increase, but net profit was **-14.35 million Yuan**, a significant decline from the **385.22 million Yuan** profit in the prior year, mainly due to increased asset impairment losses and financial expenses Key Items of Parent Company Income Statement (Q1-Q3 2019) | Item | Q1-Q3 2019 | Q1-Q3 2018 | | :--- | :--- | :--- | | **I. Operating Revenue** | 397,274,136.11 Yuan | 321,960,023.63 Yuan | | **II. Operating Profit** | 156,518.70 Yuan | 405,737,550.85 Yuan | | **IV. Net Profit** | -14,348,525.28 Yuan | 385,219,105.08 Yuan | [Consolidated Cash Flow Statement](index=19&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first three quarters of 2019, net cash flow from operating activities was **602.36 million Yuan**, a substantial **148.28%** year-over-year increase, indicating significantly enhanced core business cash generation, while net cash outflow from investing activities was **100.08 million Yuan**, and net cash outflow from financing activities was **268.27 million Yuan**, with cash and cash equivalents at period end totaling **565.86 million Yuan** Summary of Consolidated Cash Flow Statement (Q1-Q3 2019) | Item | Q1-Q3 2019 | Q1-Q3 2018 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 602,355,291.05 Yuan | 242,608,594.16 Yuan | | **Net Cash Flow from Investing Activities** | -100,076,802.79 Yuan | 477,420,539.78 Yuan | | **Net Cash Flow from Financing Activities** | -268,266,702.71 Yuan | -664,723,042.39 Yuan | | **Cash and Cash Equivalents at Period End** | 565,860,022.58 Yuan | 581,158,010.60 Yuan | [Parent Company Cash Flow Statement](index=21&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For the first three quarters of 2019, the parent company's net cash flow from operating activities was a strong **746.87 million Yuan**, with net cash inflow from investing activities at **12.50 million Yuan**, and net cash outflow from financing activities at **468.94 million Yuan**, resulting in cash and cash equivalents at period end of **575.71 million Yuan** Summary of Parent Company Cash Flow Statement (Q1-Q3 2019) | Item | Q1-Q3 2019 | Q1-Q3 2018 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 746,870,329.09 Yuan | 720,417,124.74 Yuan | | **Net Cash Flow from Investing Activities** | 12,504,483.57 Yuan | 3,725,113.03 Yuan | | **Net Cash Flow from Financing Activities** | -468,939,559.36 Yuan | -763,754,105.93 Yuan | | **Cash and Cash Equivalents at Period End** | 575,712,877.74 Yuan | 413,025,934.39 Yuan |

2019 年半年度报告 公司代码：600425 公司简称：青松建化 新疆青松建材化工（集团）股份有限公司 2019 年半年度报告 1 / 168 2019 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半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、 本半年度报告未经审计。 四、 公司负责人郑术建、主管会计工作负责人陈霞及会计机构负责人（会计主管人员）邓建辉声 明：保证半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 本报告期不进行利润分配或公积金转增股本 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的未来、发展战略等不构成公司对投资者的实质承诺，敬请投资者注意投资风险 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 无 十、 其他 □适用 √不适用 2 / 168 2019 年半年度报告 目录 | --- | --- | |-- ...

2019 年半年度报告 公司代码：600425 公司简称：青松建化 新疆青松建材化工（集团）股份有限公司 2019 年半年度报告 1 / 168 2019 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半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、 本半年度报告未经审计。 四、 公司负责人郑术建、主管会计工作负责人陈霞及会计机构负责人（会计主管人员）邓建辉声 明：保证半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 本报告期不进行利润分配或公积金转增股本 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的未来、发展战略等不构成公司对投资者的实质承诺，敬请投资者注意投资风险 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 无 十、 其他 □适用 √不适用 2 / 168 2019 年半年度报告 目录 | --- | --- | |-- ...

2019 年半年度报告 公司代码：600425 公司简称：青松建化 新疆青松建材化工（集团）股份有限公司 2019 年半年度报告 1 / 168 2019 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半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、 本半年度报告未经审计。 四、 公司负责人郑术建、主管会计工作负责人陈霞及会计机构负责人（会计主管人员）邓建辉声 明：保证半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 本报告期不进行利润分配或公积金转增股本 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的未来、发展战略等不构成公司对投资者的实质承诺，敬请投资者注意投资风险 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 无 十、 其他 □适用 √不适用 2 / 168 2019 年半年度报告 目录 | --- | --- | |-- ...

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section confirms the board's responsibility for the report's accuracy and notes that the report is unaudited [Board Statement and Audit Status](index=3&type=section&id=1.1%20Board%20Statement%20and%20Audit%20Status) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal liabilities; the report was approved by all directors but remains unaudited - The company's board of directors, supervisory board, and senior management guarantee the quarterly report's content is true, accurate, and complete, free from false records, misleading statements, or major omissions[7](index=7&type=chunk) - All company directors attended the board meeting to review this quarterly report[8](index=8&type=chunk) - This company's Q1 2019 report is unaudited[10](index=10&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) This section provides key financial performance, non-recurring items, and shareholder structure for the reporting period [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2019, operating revenue surged by **106.90%** to **CNY 180 million**, while net loss attributable to parent company narrowed by **9.77%** to **CNY 72.79 million**; net cash flow from operating activities turned positive, increasing by **226.53%** to **CNY 82.87 million**, indicating significant operational improvement Key Financial Data for Q1 2019 | Indicator | Current Period | Prior Year Same Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 179,993,777.23 CNY | 86,995,327.62 CNY | 106.90% | | Net Profit Attributable to Shareholders of Listed Company | -72,788,934.27 CNY | -80,667,684.71 CNY | 9.77% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | -93,843,225.16 CNY | -83,323,891.35 CNY | -12.62% | | Net Cash Flow from Operating Activities | 82,865,120.51 CNY | -65,488,040.45 CNY | 226.53% | | Basic Earnings Per Share (CNY/share) | -0.05 CNY | -0.06 CNY | 16.67% | | Weighted Average Return on Net Assets (%) | -1.66% | -2.01% | Increased by 0.35 percentage points | Asset Status at Period End | Indicator | Current Period End | Prior Year End | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 8,543,990,628.48 CNY | 8,336,651,539.87 CNY | 2.49% | | Net Assets Attributable to Shareholders of Listed Company | 4,342,612,927.27 CNY | 4,415,423,481.30 CNY | -2.55% | [Non-recurring Gains and Losses](index=4&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **CNY 21.05 million**, primarily from **CNY 27.80 million** in non-current asset disposal gains and **CNY 4.29 million** in government grants, partially offset by **CNY -10.05 million** from minority interests Non-recurring Gains and Losses for Q1 2019 | Item | Current Period Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 27,795,931.92 | | Government Grants Included in Current Profit and Loss | 4,291,969.31 | | Other Non-operating Income and Expenses Apart from the Above | -788,592.08 | | Impact of Minority Interests (After Tax) | -10,049,965.40 | | Income Tax Impact | -195,052.86 | | **Total** | **21,054,290.89** | [Shareholder Information](index=5&type=section&id=2.2%20Shareholder%20Information) As of Q1 2019, the company had **116,993** shareholders; the largest shareholder is Alar Tongzhong State-owned Assets Management Co., Ltd., holding **26.21%**, with several top ten shareholders being state-owned legal entities and acting in concert - As of the end of the reporting period, the company had a total of **116,993** shareholders[17](index=17&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Alar Tongzhong State-owned Assets Management Co., Ltd. | 361,367,646 | 26.21 | State-owned Legal Entity | | Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. | 42,163,052 | 3.06 | State-owned Legal Entity | | Central Huijin Asset Management Co., Ltd. | 34,080,000 | 2.47 | State-owned Legal Entity | | Zhongxinjiang Merchants Equity Investment Co., Ltd. | 27,800,000 | 2.02 | State-owned Legal Entity | | Xinjiang Production and Construction Corps Investment Co., Ltd. | 10,300,000 | 0.75 | State-owned Legal Entity | - Among the top ten shareholders, Alar Tongzhong State-owned Assets Management Co., Ltd. and Xinjiang Alar Water Conservancy and Hydropower Engineering Co., Ltd. are parties acting in concert; Zhongxinjiang Merchants Equity Investment Co., Ltd. and Xinjiang Production and Construction Corps Investment Co., Ltd. are also parties acting in concert[21](index=21&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in financial indicators and other important matters during the reporting period [Significant Changes in Key Financial Indicators and Reasons](index=6&type=section&id=3.1%20Significant%20Changes%20in%20Company's%20Key%20Financial%20Statement%20Items%2C%20Financial%20Indicators%20and%20Reasons) The company explained significant Q1 2019 financial data changes, with operating revenue up **106.90%** due to increased cement sales and prices, improved operating cash flow from higher sales receipts, and increased prepayments and advances from customers reflecting preparations for peak season production and product sales - Operating revenue increased by **106.90%** year-on-year, primarily due to increased sales volume and prices of the main business, cement, during the reporting period[22](index=22&type=chunk) - Net cash flow from operating activities significantly increased year-on-year, mainly due to a substantial increase in cash received from sales and significant advances from cement sales in the current period[22](index=22&type=chunk) - Prepayments increased by **280.86%** from the beginning of the year, primarily for advance payments to reserve raw materials for peak season production[22](index=22&type=chunk) - Advances from customers increased by **147.88%** from the beginning of the year, mainly due to advance receipts for products during the reporting period[22](index=22&type=chunk) [Other Significant Matters](index=7&type=section&id=3.2%20Other%20Significant%20Matters) During the reporting period, the company had no significant event progress, no overdue unfulfilled commitments, and issued no warnings regarding potential cumulative net profit loss or significant changes for the period up to the next report - The company has no significant event progress, impacts, or solutions requiring explanation[25](index=25&type=chunk) - During the reporting period, the company had no overdue unfulfilled commitments[25](index=25&type=chunk) - The company has not forecasted that cumulative net profit from the beginning of the year to the end of the next reporting period may be a loss or undergo significant changes compared to the prior year[25](index=25&type=chunk) [Appendix](index=8&type=section&id=Item%20IV.%20Appendix) This section includes the company's unaudited financial statements, explanations for accounting standard changes, and audit status [Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for Q1 2019, including balance sheets, income statements, and cash flow statements, comprehensively reflecting the financial position, operating results, and cash flows for the period [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, the company's total assets were **CNY 8.54 billion**, a **2.49%** increase from year-end, with total liabilities at **CNY 4.59 billion** and equity attributable to parent company owners at **CNY 4.34 billion** Key Items from Consolidated Balance Sheet (Unit: CNY) | Item | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **8,543,990,628.48** | **8,336,651,539.87** | | Total Current Assets | 1,878,118,956.45 | 1,661,031,277.11 | | Total Non-current Assets | 6,665,871,672.03 | 6,675,620,262.76 | | **Total Liabilities** | **4,587,381,662.27** | **4,276,443,117.10** | | Total Current Liabilities | 3,548,329,758.30 | 3,203,243,819.33 | | Total Non-current Liabilities | 1,039,051,903.97 | 1,073,199,297.77 | | **Total Owner's Equity** | **3,956,608,966.21** | **4,060,208,422.77** | | Total Equity Attributable to Parent Company Owners | 4,342,612,927.27 | 4,415,423,481.30 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, the parent company's total assets were **CNY 9.39 billion**, total liabilities were **CNY 4.47 billion**, and total owner's equity was **CNY 4.92 billion** Key Items from Parent Company Balance Sheet (Unit: CNY) | Item | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **9,389,769,190.01** | **9,030,077,114.78** | | **Total Liabilities** | **4,466,676,775.04** | **4,048,399,894.74** | | **Total Owner's Equity** | **4,923,092,414.97** | **4,981,677,220.04** | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, the company achieved **CNY 180 million** in total operating revenue, a **106.9%** year-on-year increase, with a net loss of **CNY 100 million**; net loss attributable to parent company shareholders narrowed to **CNY 72.79 million** from **CNY 80.67 million** in the prior year, and basic EPS was **CNY -0.05** Key Items from Consolidated Income Statement (Unit: CNY) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | I. Total Operating Revenue | 179,993,777.23 | 86,995,327.62 | | II. Total Operating Costs | 295,819,283.51 | 203,006,177.50 | | III. Operating Profit | -97,776,561.29 | -107,667,486.39 | | IV. Total Profit | -98,565,153.37 | -106,766,024.49 | | V. Net Profit | -100,446,521.94 | -106,882,484.22 | | Net Profit Attributable to Parent Company Shareholders | -72,788,934.27 | -80,667,684.71 | | Minority Interests | -27,657,587.67 | -26,214,799.51 | | VIII. Earnings Per Share (CNY/share) | -0.05 | -0.06 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, the parent company recorded operating revenue of **CNY 34.64 million** and a net loss of **CNY 58.66 million** Key Items from Parent Company Income Statement (Unit: CNY) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | I. Operating Revenue | 34,643,853.36 | 22,207,086.37 | | II. Operating Profit | -58,665,429.66 | -34,917,980.34 | | III. Total Profit | -58,652,749.66 | -34,070,581.36 | | IV. Net Profit | -58,656,509.01 | -34,070,581.36 | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, net cash flow from operating activities significantly improved to **CNY 82.87 million** from **CNY -65.49 million** in the prior year; net cash outflow from investing activities was **CNY 26.47 million**, and from financing activities was **CNY 24.09 million**, with cash and cash equivalents balance at period-end of **CNY 364.16 million** Key Items from Consolidated Cash Flow Statement (Unit: CNY) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 82,865,120.51 | -65,488,040.45 | | Net Cash Flow from Investing Activities | -26,466,118.06 | -25,696,136.09 | | Net Cash Flow from Financing Activities | -24,086,792.13 | -302,600,128.01 | | Net Increase in Cash and Cash Equivalents | 32,312,210.32 | -393,784,304.55 | | Cash and Cash Equivalents at Period End | 364,160,447.35 | 132,067,614.50 | [Parent Company Cash Flow Statement](index=18&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, the parent company's net cash flow from operating activities significantly improved to **CNY 63.87 million** from **CNY -112 million** in the prior year, with cash and cash equivalents balance at period-end of **CNY 330.42 million** Key Items from Parent Company Cash Flow Statement (Unit: CNY) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 63,868,913.61 | -111,842,415.44 | | Net Cash Flow from Investing Activities | 3,259,970.99 | -2,534,791.50 | | Net Cash Flow from Financing Activities | -21,983,748.38 | -241,540,198.88 | | Net Increase in Cash and Cash Equivalents | 45,145,136.22 | -355,917,405.82 | | Cash and Cash Equivalents at Period End | 330,422,760.66 | 96,720,396.73 | [Explanation of Accounting Standard Changes and Adjustments](index=20&type=section&id=4.2%20Explanation%20of%20First-time%20Adoption%20of%20New%20Financial%20Instruments%20Standard) Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying non-trading equity instrument investments from 'available-for-sale financial assets' to 'other equity instruments investment,' impacting only balance sheet presentation without affecting opening net assets - The company first adopted the new financial instruments standard effective January 1, 2019[71](index=71&type=chunk) - The change in accounting standards led to adjustments in the classification and measurement of financial assets: non-trading equity instrument investments previously classified as 'available-for-sale financial assets' were reclassified to the new item 'other equity instruments investment'[71](index=71&type=chunk)[78](index=78&type=chunk) Consolidated Balance Sheet Adjustment Details | Item | Before Adjustment (Dec 31, 2018) | After Adjustment (Jan 01, 2019) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Available-for-sale Financial Assets | 19,980,020.58 CNY | 0 | -19,980,020.58 CNY | | Other Equity Instruments Investment | 0 | 19,980,020.58 CNY | 19,980,020.58 CNY | [Audit Report](index=25&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - This quarterly financial report is unaudited, thus an audit report is not applicable[79](index=79&type=chunk)

Financial Performance - The company's operating revenue for 2018 was CNY 241,352.72 million, representing a 14.87% increase compared to CNY 210,112.03 million in 2017[22] - The net profit attributable to shareholders of the listed company reached CNY 36,522.24 million, a significant increase of 621.72% from CNY 5,060.42 million in the previous year[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 15,627.03 million, recovering from a loss of CNY 15,889.26 million in 2017, marking a 198.35% increase[22] - The net cash flow from operating activities was CNY 79,119.70 million, up 40.23% from CNY 56,420.76 million in 2017[22] - Basic earnings per share increased by 550.00% to CNY 0.26 from CNY 0.04 in 2017[23] - Weighted average return on equity rose by 7.37 percentage points to 8.63% from 1.26% in 2017[23] - The company reported a net profit target of 180 million yuan for the year 2018[72] - The company's net profit increased by 59.14% year-on-year, reaching 365.22 million yuan, despite a 24.34 million yuan decrease in investment income[40] Cash Flow and Assets - The total assets at the end of 2018 were CNY 833,665.15 million, a decrease of 14.81% from CNY 978,588.13 million at the end of 2017[22] - The net cash flow from operating activities increased by 40.23% year-on-year, amounting to 791.20 million yuan[43] - Cash and cash equivalents at the end of the period were ¥359,157.6, down 33.40% from the previous period[59] - Net cash flow from investing activities decreased by ¥341,086.6 to ¥385,488.3[55] - Net cash flow from financing activities decreased by ¥420,091.1 to ¥1,370,689.0[55] Market and Product Development - The company has developed various special cement products, including HSR G grade high anti-oil well cement, which has received API certification[34] - The strategic layout of new dry-process cement production lines has been completed in key cities, enhancing product coverage and reducing logistics costs[34] - The company aims to achieve over 100% of its total capacity from new dry-process production lines, contributing to environmental sustainability[34] - The company is focusing on expanding its cement production and related products, with a strategic emphasis on southern Xinjiang[71] - The company plans to enhance its core competitiveness by increasing the proportion of high value-added products and accelerating new product development, including the promotion of new types of cement to fill market gaps[81] Challenges and Risks - The cement industry faces challenges due to overcapacity and increased competition, necessitating strategic adjustments[33] - The company faces risks related to price fluctuations in cement sales and increased market competition due to overcapacity[75] - Cement market demand decreased sharply, leading to a substantial drop in sales and a reduction in prices, which resulted in lower sales revenue and profits during this period[81] - The company expects to incur a loss of 572.07 million yuan from the liquidation of fixed assets and construction projects due to the bankruptcy applications of several subsidiaries[40] Corporate Governance and Management - The company has not proposed any cash dividend distribution for the past three years, with net profits of CNY 36,522.24 million in 2018, CNY 5,060.42 million in 2017, and a loss of CNY 57,554.52 million in 2016[84] - The company has a cumulative undistributed profit of CNY 25,578.08 million, but the consolidated statements show a cumulative undistributed profit of -CNY 32,947.42 million, indicating significant financial pressure[87] - The company has committed to avoiding competition with its controlled enterprises and has adhered to this commitment since July 2009[88] - The company has appointed Da Xin Accounting Firm for the 2018 financial and internal control audit, with a fee of CNY 950,000[92] - The company has maintained a consistent structure in its board and management, with no new appointments or departures reported during the period[142] Environmental Responsibility - The company is committed to green transformation and the development of new building materials and waste treatment solutions[71] - The company achieved a total emission of 13.9 tons of particulate matter from its Ba Zhou Qing Song facility, well below the approved limit of 98.25 tons per year[111] - The company maintained a nitrogen oxide emission level of 194.4 mg/m³, significantly below the standard limit of 320 mg/m³[111] - The company actively participates in environmental protection, with no pollution incidents reported in 2018[110] - The company has implemented a high-efficiency bag filter system to replace the original electric dust collector in winter 2018[115] Employee and Training Initiatives - In 2018, the company held 178 internal training sessions, training 7,290 employees, and plans to hold 350 sessions in 2019, training 8,044 employees[103] - The company has established a dynamic adjustment mechanism linking employee compensation directly to company performance[163] - The company has implemented a differentiated compensation distribution policy to enhance employee belonging and stabilize the workforce in challenging regions[163] Future Outlook - The company’s future outlook includes a focus on expanding market presence and enhancing product development strategies[7] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million yuan earmarked for potential deals[151] - The management emphasized the importance of cost control, aiming to reduce operational costs by 8% in the next fiscal year[151] - The company plans to enhance its digital marketing efforts, increasing the budget by 25% to improve customer engagement[151]