Financial Performance - Operating revenue decreased by 1.35% to CNY 2,539,141,857.45 year-on-year[9] - Net profit attributable to shareholders decreased by 4.56% to CNY 32,205,886.83 compared to the same period last year[9] - The company reported a net profit excluding non-recurring gains and losses increased by 17.77% to CNY 25,387,382.39 year-on-year[9] - Net profit for Q1 2019 was CNY 28,751,415.72, compared to CNY 31,215,468.96 in Q1 2018, indicating a decline of 7.88%[35] - The company's revenue for Q1 2019 was ¥952,202,731.24, an increase of 21.4% compared to ¥784,516,058.36 in Q1 2018[38] - Net profit for Q1 2019 was ¥83,050,755.56, compared to ¥25,155,354.56 in Q1 2018, marking a year-over-year increase of 230.5%[40] - The total comprehensive income for Q1 2019 was ¥90,785,406.36, compared to ¥49,831,893.01 in Q1 2018, indicating a growth of 82.2%[40] Cash Flow - Net cash flow from operating activities was negative at CNY -597,396,441.44, worsening from CNY -253,523,197.01 in the previous year[14] - Net cash flow from operating activities decreased primarily due to a reduction in cash received from sales of goods and services[16] - The company reported a net cash outflow from operating activities of ¥597,396,441.44 in Q1 2019, worsening from a net outflow of ¥253,523,197.01 in Q1 2018[43] - The total cash outflow for operating activities was 2,035,661,414.96 RMB, compared to 1,691,941,663.99 RMB in the previous year, reflecting increased operational expenses[49] - Cash inflow from financing activities reached 968,000,000.00 RMB, with cash outflow totaling 393,290,055.00 RMB, leading to a net cash flow of 574,709,945.00 RMB from financing activities[49] - The total cash flow from all activities resulted in a net decrease of -216,071,466.90 RMB in cash and cash equivalents for the quarter[49] Assets and Liabilities - Total assets increased by 6.22% to CNY 15,165,488,263.66 compared to the end of the previous year[9] - Total current assets as of March 31, 2019, amounted to RMB 9,397,303,095.37, up from RMB 8,860,864,184.89 at the end of 2018, representing an increase of approximately 6.06%[20] - Total liabilities as of March 31, 2019, were RMB 10,379,322,811.45, compared to RMB 9,485,664,004.51 at the end of 2018, marking an increase of about 9.43%[24] - Total assets as of March 31, 2019, reached RMB 15,165,488,263.66, up from RMB 14,277,065,125.70 at the end of 2018, representing an increase of approximately 6.23%[24] - Total liabilities rose to CNY 7,370,177,651.30, compared to CNY 6,767,038,911.74, suggesting increased leverage[31] - Total liabilities reached approximately $6.77 billion, a decrease from approximately $6.96 billion in the previous period[62] Shareholder Information - The number of shareholders reached 45,934 at the end of the reporting period[10] - The total equity increased to CNY 4,851,403,618.28 from CNY 4,760,618,211.92, showing a strengthening of shareholder value[31] - Shareholders' equity totaled ¥4,791,401,121.19, remaining stable compared to the previous period[57] Expenses - Financial expenses decreased significantly by 84.91% to CNY 2,924,962.90 compared to the same period last year[13] - Financial expenses decreased due to foreign exchange gains from euro to RMB fluctuations, which were higher than the same period last year[16] - Research and development expenses increased to CNY 179,615,293.97 in Q1 2019, up from CNY 148,208,222.92 in Q1 2018, highlighting a focus on innovation[35] - The financial expenses for Q1 2019 included interest expenses of ¥20,949,965.71, an increase from ¥14,576,271.80 in Q1 2018[40] Inventory and Receivables - Accounts receivable increased to RMB 4,796,048,266.12 from RMB 4,158,734,756.71, reflecting a growth of about 15.34%[20] - Inventory increased to RMB 2,012,142,278.15 from RMB 1,763,272,892.98, indicating an increase of approximately 14.14%[20] - The company reported a decrease in inventory to CNY 959,768,733.53 from CNY 689,312,749.19, indicating improved inventory management[28] - Accounts receivable rose to CNY 2,025,200,092.06, an increase from CNY 1,358,667,278.01, indicating potential growth in sales[28] Financing Activities - Short-term borrowings increased by 49.13% to CNY 1,838,485,600.00 compared to the end of the previous year[14] - Short-term borrowings increased due to new bank short-term loans during the reporting period[16] - The company’s short-term borrowings increased significantly to CNY 1,778,000,000.00 from CNY 1,170,000,000.00, indicating a shift in financing strategy[31] Other Information - The company has not disclosed any new product developments or market expansion strategies in this report[15] - The company is implementing new accounting standards effective January 1, 2019, which may impact financial reporting[57]

Financial Performance - The company reported a net profit attributable to the parent company of -426,962,777.16 RMB for the year 2018, indicating a significant loss compared to the previous year[7]. - The total distributable profit for 2018, after accounting for a 10% statutory surplus reserve of 13,068,662.19 RMB, was 832,506,303.37 RMB[7]. - A cash dividend of 0.40 RMB per 10 shares is proposed, totaling 32,111,926.08 RMB to be distributed to shareholders[7]. - The remaining undistributed profit to be carried forward to future years is 800,394,377.29 RMB[7]. - The company's operating revenue for 2018 was approximately ¥11.996 billion, an increase of 5.23% compared to ¥11.400 billion in 2017[26]. - The net profit attributable to shareholders was a loss of approximately ¥427 million, a decrease of 716.79% from a profit of ¥69 million in 2017[26]. - The basic earnings per share for 2018 was -¥0.53, a decrease of 688.89% from ¥0.09 in 2017[27]. - The weighted average return on equity was -8.68%, a decrease of 10.09 percentage points from 1.41% in 2017[27]. - The company achieved a total sales revenue of 11.996 billion RMB, an increase of 5.96 billion RMB or 5.23% compared to the previous year, driven by growth in the wind power and rail product sectors[43]. - The net profit attributable to shareholders was -427 million RMB, a decrease of 4.96 billion RMB or 716.79% year-on-year, primarily due to a goodwill impairment of 530 million RMB recognized by the wholly-owned subsidiary BOGE[43]. - Excluding the impact of the goodwill impairment, the company realized a net profit of 103 million RMB, an increase of 30 million RMB or 48.73% compared to the previous year[43]. Operational Highlights - The company has expanded its overseas business in high-speed rail and urban rail, becoming a global leader in vibration and noise reduction for rail transportation[34]. - The company has successfully developed and industrialized polyimide films, with capabilities to supply major brands like Huawei and Apple in bulk[34]. - The company has installed and tested production lines for aramid materials, with small-scale trial production expected to begin within the year[34]. - The company reported total assets of approximately ¥14.277 billion, with overseas assets accounting for 38.03% of total assets[35]. - The company is focusing on high polymer materials research and engineering applications, with plans to enhance production capacity and improve management efficiency[47]. - The company aims to continue driving revenue growth in the rail and wind power sectors while implementing cost reduction and efficiency improvement strategies[47]. Research and Development - R&D investment totaled ¥673,555,356.30, accounting for 5.61% of total revenue, with 1,308 R&D personnel[64]. - The company applied for 250 patents in 2018, including 217 invention patents, enhancing its core competitiveness[76]. - The company established a dedicated research and development system for composite materials in rail transit, achieving breakthroughs in engineering applications[76]. - The company successfully developed a full set of vibration-damping elastic components for permanent magnet direct drive electric locomotives[76]. - The company formed a strategic partnership with DNV GL for product certification and new technology development in the wind power blade sector[76]. Market and Sales Performance - Sales revenue from the rail transportation market reached 2.593 billion RMB, an increase of 1.94 billion RMB year-on-year, with significant projects covering high-speed train components and new product qualifications[43]. - The wind power product market generated revenue of 2.286 billion RMB, an increase of 266 million RMB year-on-year, with overseas orders exceeding 700 million RMB, a growth of 190%[46]. - The automotive market sales revenue was 6.487 billion RMB, an increase of 170 million RMB year-on-year, with significant orders from major clients like Audi and Volkswagen[46]. - The company has established strategic partnerships with six major locomotive manufacturers globally, achieving a market share of 70% with top automotive clients[43]. Financial Management and Risks - The company has no significant risks that could materially affect its operations during the reporting period[9]. - Deloitte Huayong Certified Public Accountants issued a standard unqualified audit report for the company[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties[9]. - The company has established a strict quality management system, but faces risks related to product quality due to the complexity of its production processes[114]. - The company has over half of its revenue and assets located overseas, increasing exposure to international operational risks and currency fluctuations[114]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 49,867, an increase from 48,449 in the previous month[150]. - The largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., holds 292,494,103 shares, representing 36.43% of total shares[150]. - The company has approved a three-year shareholder return plan for 2018-2020 during the annual general meeting[191]. - The company has implemented a cash dividend policy in accordance with regulatory requirements, with a three-year shareholder return plan approved[120]. Future Outlook - The company plans to achieve a revenue of 11.8 billion yuan in 2019[110]. - The company is focused on developing new products in the wind power sector, including low-wind-speed and high-power blades[108]. - The company aims to become the largest automotive rubber and plastic parts supplier in China by improving product structure and expanding market share[108]. - The company is actively pursuing mergers and acquisitions to enhance its competitive position in the market[165]. - Future guidance indicates a positive outlook, with expectations for continued growth in user engagement and revenue generation[165].

Financial Performance - Net profit attributable to shareholders rose by 63.65% to CNY 85.70 million year-on-year[6] - Revenue for the first nine months reached CNY 8.32 billion, a 2.71% increase from the same period last year[12] - The weighted average return on equity increased by 0.61 percentage points to 1.67%[6] - Total revenue for the first nine months of 2018 reached ¥8,316,298,988.66, an increase from ¥8,097,062,372.42 in the same period last year, representing a growth of approximately 2.7%[25] - Total operating revenue for Q3 2018 was CNY 1,203,038,127.90, an increase of 6.6% compared to CNY 1,128,223,075.99 in the same period last year[29] - Net profit for the third quarter was CNY 10,827,994.08, compared to CNY 11,577,035.50 in the previous year, indicating a decrease of about 6.5%[30] - The total comprehensive income for Q3 2018 was CNY 90,293,662.23, compared to CNY 17,209,348.38 in Q3 2017, reflecting a substantial increase[28] Assets and Liabilities - Total assets increased by 2.07% to CNY 14.62 billion compared to the end of the previous year[6] - The company's total assets as of September 30, 2018, amounted to ¥11,142,361,102.63, slightly up from ¥11,077,944,139.78 at the beginning of the year[24] - The total liabilities increased to ¥6,433,596,139.37 from ¥6,392,270,593.85, indicating a rise of about 0.6%[24] - Total assets reached RMB 14.62 billion, with current assets totaling RMB 9.09 billion[19] Cash Flow - Cash flow from operating activities showed a significant improvement, with a net cash outflow of CNY -147.08 million compared to CNY -459.73 million in the previous year[12] - Operating cash flow for the first nine months showed a net outflow of CNY 147,081,143.29, an improvement from a net outflow of CNY 459,725,601.83 in the same period last year[31] - The net cash flow from operating activities was -$349.72 million, an improvement from -$674.55 million in the previous quarter, indicating a 48% reduction in cash outflow[34] - The total cash outflow from operating activities was $5.22 billion, slightly down from $5.29 billion in the previous quarter, indicating a marginal improvement[34] Borrowings - Short-term borrowings increased by 111.82% to CNY 1.76 billion[12] - Short-term borrowings rose to RMB 1.76 billion, primarily for repaying long-term loans and supplementing working capital[19] - Long-term borrowings decreased following the repayment of EUR 80 million in loans[14] - The company received $1.94 billion in cash from borrowings, significantly higher than $750 million in the previous quarter, indicating a 159% increase in financing[34] Research and Development - Research and development expenses increased by 14.71% to CNY 467.15 million[12] - R&D expenses increased due to higher investments in aramid and PI film industries[14] - Research and development expenses for Q3 2018 amounted to CNY 79,783,954.03, a 32.7% increase from CNY 60,125,083.38 in Q3 2017[29] Shareholder Information - The number of shareholders reached 50,798, with the top ten shareholders holding 56.06% of the shares[10] - The net profit attributable to the parent company for the first nine months was not explicitly stated, but the retained earnings increased to ¥647,143,104.08 from ¥602,462,563.19, showing a growth of approximately 7.4%[24] Operating Costs - Operating costs rose primarily due to increased revenue scale, changes in sales structure, and rising raw material prices[14] - Total operating costs for Q3 2018 were CNY 949,371,791.25, slightly up from CNY 939,237,305.22 in the same quarter last year[29] Financial Expenses - Financial expenses grew by 91.91% year-on-year, reaching RMB 63.89 million, excluding exchange rate impacts[14] - The company incurred financial expenses of CNY 54,042,140.49 in Q3 2018, which is an increase from CNY 31,706,176.98 in Q3 2017[29] Government Subsidies - The company received government subsidies amounting to CNY 19.40 million for the year-to-date[8]

Financial Performance - The company's operating revenue for the first half of 2018 was approximately RMB 5.54 billion, an increase of 4.50% compared to the same period last year[19]. - The net profit attributable to shareholders was approximately RMB 77.54 million, representing a significant increase of 138.26% year-on-year[20]. - The net profit after deducting non-recurring gains and losses was approximately RMB 61.63 million, up 859.31% from the previous year[20]. - Basic earnings per share increased to RMB 0.10, a rise of 150.00% compared to the same period last year[21]. - The company reported a net cash flow from operating activities of approximately RMB -26.94 million, showing an improvement from RMB -61.95 million in the same period last year[20]. - The total comprehensive income for the first half of 2018 was CNY 72,881,164.88, compared to a loss of CNY 8,061,326.36 in the previous year[94]. - The company reported a significant increase in retained earnings, which reached CNY 1,278,621,924.15, up from CNY 1,018,066,055.65, indicating a growth of approximately 25.6%[84]. - The company reported a net loss of RMB 80,279,815.20 for the first half of 2018[108]. Assets and Liabilities - The total assets of the company at the end of the reporting period were approximately RMB 14.46 billion, reflecting a 0.92% increase from the end of the previous year[20]. - The company's total liabilities were CNY 9,235,191,014.45, slightly down from CNY 9,311,317,060.34 at the beginning of the year[84]. - The company's current assets totaled CNY 9,011,008,429.36, compared to CNY 8,714,546,833.94 at the start of the year, reflecting a growth of approximately 3.4%[83]. - Short-term borrowings increased by 97.79% to ¥1,644,212,000.00 from ¥831,281,029.88, mainly to repay long-term loans and supplement working capital[40]. - Long-term borrowings decreased by 37.11% to ¥1,094,164,500.00 from ¥1,739,912,900.00, primarily due to the repayment of €80 million in loans[40]. Market and Sales Performance - The company achieved a sales revenue of 5.54 billion yuan, an increase of 4.50% compared to the same period last year, primarily driven by growth in the rail transit and automotive markets[34]. - The net profit for the first half of the year was 77.54 million yuan, representing a significant increase of 138% year-on-year, mainly due to changes in the sales structure of rail transit products[34]. - The rail transit market generated sales of 1.21 billion yuan, up by 20.2 million yuan year-on-year, while the automotive market reached 3.34 billion yuan, an increase of 22.8 million yuan[34]. Research and Development - Research and development expenses increased by 14.70% to 313.06 million yuan, reflecting the company's commitment to innovation[37]. - Research and development expenses increased due to heightened investment in aramid and PI film industries[39]. - Research and development expenses amounted to CNY 313,060,766.69, compared to CNY 272,932,532.75 in the previous year, indicating a focus on innovation[90]. Corporate Governance and Structure - The company held its 2017 annual general meeting on April 25, 2018, where it approved the 2017 annual report and financial statements[49]. - The company has undergone changes in its board of directors, with several members resigning and new members appointed during the reporting period[75]. - The company is controlled by CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., which is ultimately controlled by CRRC Group[116]. Financial Management and Accounting - The company has implemented new accounting standards effective from January 1, 2018, which may impact financial reporting and accounting policies[62]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations[119]. - The company follows specific accounting policies and estimates, particularly in inventory valuation and revenue recognition[120]. Risk Management - The company did not face any significant operational risks during the reporting period[7]. - The company faces international operational risks following the acquisition of BOGE, with increased exposure to foreign exchange fluctuations and trade protectionism[45]. Shareholder Information - The top ten shareholders hold a total of 36.43% of shares, with the largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., holding 292,494,103 shares[68]. - The company issued 141,376,060 new ordinary shares (A shares) in a private placement, with a lock-up period of 36 months[52]. - The company distributed CNY 40,139,907.60 to shareholders during the reporting period, reflecting a significant allocation from retained earnings[107]. Legal and Compliance - The company reported a significant lawsuit involving its 60% owned subsidiary, with a total claim amounting to RMB 89.66 million[53]. - The company has no major related party transactions exceeding 5% of the latest audited net asset value during the reporting period[57]. - The company has no significant environmental impact and complies with local environmental regulations, producing only minor waste[61].

2018 年第一季度报告 公司代码：600458 公司简称：时代新材 株洲时代新材料科技股份有限公司 2018 年第一季度报告 1 / 16 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 4 | | 四、 | 附录 6 | 2018 年第一季度报告 一、 重要提示 1.4 本公司第一季度报告未经审计。 单位：元 币种：人民币 | 项目 | 本期金额 | | --- | --- | | 非流动资产处置损益 | 48,943.77 | | 计入当期损益的政府补助，但与公司正常经营业务密切相关，符合国家政策规定、按照一 | 7,782,206.64 | | 定标准定额或定量持续享受的政府补助除外 | | | 除上述各项之外的其他营业外收入和支出 | 7,152,246.64 | | 少数股东权益影响额（税后） | -26,522.95 | | 所得税影响额 | -2,770,530.87 | | 合计 | 12,186,343.23 | 3 / 16 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不 ...

Financial Performance - The company achieved a net profit attributable to the parent company of RMB 69,223,914.55 in 2017, with a 10% legal surplus reserve of RMB 2,917,973.59 extracted[6]. - The total distributable profit for 2017 was RMB 1,018,066,055.65, with a cash dividend of RMB 0.50 per 10 shares, totaling RMB 40,139,907.60 to be distributed to shareholders[6]. - The remaining undistributed profit carried forward to future years is RMB 977,926,148.05[6]. - The company's operating revenue for 2017 was CNY 11,399,612,587.07, a decrease of 2.90% compared to 2016[23]. - The net profit attributable to shareholders for 2017 was CNY 69,223,914.55, representing a decline of 71.59% year-over-year[23]. - The basic earnings per share for 2017 was CNY 0.09, down 70.00% from CNY 0.30 in 2016[24]. - The company reported a total revenue of 10 billion yuan for the fiscal year 2017, reflecting a year-over-year increase of 15%[138]. - The company plans to achieve a revenue of 11.7 billion RMB in 2018[81]. Cash Flow and Financial Position - The net cash flow from operating activities was negative CNY 90,562,325.32, a decrease of 114.04% compared to the previous year[23]. - Cash received from sales decreased by 3.07% to CNY 11,774,141,759.83, attributed to reduced cash collection from sales[53]. - Cash and cash equivalents decreased by 26.88% to ¥1,132,677,976.66, primarily due to reduced operating cash flow during the reporting period[55]. - Accounts receivable increased by 16.98% to ¥3,143,520,644.20, mainly due to decreased collections during the reporting period[56]. - Inventory rose by 15.71% to ¥1,957,994,877.31, attributed to shipment delays during the reporting period[58]. - The company's total liabilities reached CNY 9,311,317,060.34, an increase from CNY 8,605,059,105.32, indicating a rise of about 8.2%[178]. - The total equity attributable to shareholders decreased slightly to CNY 4,877,620,377.91 from CNY 4,915,387,629.29, a decline of approximately 0.8%[178]. Investments and Acquisitions - The company acquired 100% equity of Xiangyang Zhongtie Hongji Engineering Technology Co., Ltd. from CRRC Zhuzhou Institute on October 26, 2017[24]. - The company invested approximately 179 million RMB to establish Times Huaxian Company with a shareholding ratio of 67%[73]. - The company has invested several hundred million RMB in global cooperation projects following the acquisition of BOGE, with multiple new material industrialization projects underway domestically[83]. - The company has borrowed 203 million euros for the acquisition of BOGE, which has led to significant fluctuations in profitability due to exchange rate changes from 2014 to 2017[84]. Research and Development - R&D expenditure increased by 3.98% to 654.8 million RMB, reflecting the company's commitment to innovation[44]. - The company holds 878 authorized patents, including 325 invention patents, and has developed five core technologies in vibration reduction, noise reduction, insulation, lightweight, and seismic resistance[32]. - The company is investing 500 million yuan in R&D for renewable energy technologies, aiming to reduce carbon emissions by 50% by 2025[138]. Market and Business Strategy - The company has expanded its overseas business in high-speed rail and urban rail transit, aligning with national strategic initiatives[30]. - The company aims to expand its international market presence in the rail transit industry, leveraging the integration opportunities following the merger of China South and North Rail[79]. - The automotive industry strategy includes increasing the share of high-value-added products and expanding market share in emerging countries[80]. - The company is actively promoting the localization of production bases for rail transit components in Australia, the United States, and India[82]. Governance and Compliance - The audit report issued by Deloitte Huayong was a standard unqualified opinion[5]. - The company has established a cash dividend policy in compliance with regulatory requirements, ensuring shareholder returns[87]. - The company has a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder interests[149]. - The company has not faced any penalties from securities regulatory agencies in the past three years[143]. Risks and Challenges - The company reported no significant risks that could materially affect its operations during the reporting period[9]. - The wind power segment experienced a revenue decline of over 20%, with a significant drop in profit due to falling sales prices and rising raw material costs[38]. - Financial expenses increased due to foreign exchange losses from euro fluctuations, with net financial expenses at CNY 51,229,400, a decrease of 34.12% compared to CNY 77,762,000 in the previous year[45]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 54,153, an increase from 53,178 at the end of the previous month[122]. - The largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., holds 292,494,103 shares, accounting for 36.43% of total shares[124]. - A total of 141,376,060 shares were privately placed to the controlling shareholder at a price of 10.61 RMB per share, with a lock-up period of 36 months[127].

[Item I. Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [1.1 Core Statements](index=3&type=section&id=1.1%20Core%20Statements) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, confirming it is unaudited - Management assures the quarterly report's content is true, accurate, and complete, free from false records, misleading statements, or material omissions[5](index=5&type=chunk) - This company's third-quarter report is unaudited[6](index=6&type=chunk) [Item II. Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of Q3 2017, total assets slightly increased by 2.73% from year-end, but year-to-date operating performance significantly declined with revenue down 3.39%, net profit attributable to shareholders down 75.25%, and operating cash flow turning negative with a 4,568.07% decrease Key Financial Data for Q1-Q3 2017 | Indicator | Year-Beginning to End of Reporting Period (Jan-Sep) | Prior Year Same Period (Jan-Sep) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | CNY 7,985,492,731.80 | CNY 8,265,386,181.54 | -3.39% | | Net Profit Attributable to Shareholders of Listed Company | CNY 50,477,229.04 | CNY 203,933,404.33 | -75.25% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | CNY 15,203,104.24 | CNY 126,925,406.22 | -88.02% | | Net Cash Flow from Operating Activities | CNY -469,551,924.69 | CNY 10,509,065.96 | -4,568.07% | | Basic Earnings Per Share (CNY/share) | CNY 0.06 | CNY 0.25 | -76.00% | | Weighted Average Return on Net Assets | 1.02% | 4.26% | Decreased by 3.24 percentage points | | **Balance Sheet Items** | **End of This Reporting Period** | **End of Prior Year** | **Change from Year-Beginning to Period End (%)** | | Total Assets | CNY 13,773,767,592.11 | CNY 13,407,106,792.09 | 2.73% | | Net Assets Attributable to Shareholders of Listed Company | CNY 4,847,920,697.68 | CNY 4,836,310,836.63 | 0.24% | - In Q1-Q3 2017, the company's total non-recurring gains and losses amounted to **CNY 35.27 million**, primarily from government subsidies and non-operating income/expenses[8](index=8&type=chunk) [2.2 Shareholder Ownership](index=4&type=section&id=2.2%20Shareholder%20Ownership) As of the reporting period end, the company had 56,262 shareholders, with CRRC Zhuzhou Institute Co., Ltd. as the controlling shareholder holding 36.43%, indicating a concentrated equity structure with most top ten shareholders being CRRC Group affiliates - As of the reporting period end, the company had a total of **56,262 shareholders**[9](index=9&type=chunk) Top Ten Shareholders' Ownership | Shareholder Name | Shares Held at Period End | Percentage (%) | | :--- | :--- | :--- | | CRRC Zhuzhou Institute Co., Ltd. | 292,494,103 | 36.43 | | CSR Investment Management Co., Ltd. | 66,029,078 | 8.22 | | Central Huijin Asset Management Co., Ltd. | 17,434,400 | 2.17 | | CRRC Zhuzhou Electric Locomotive Co., Ltd. | 12,338,786 | 1.54 | | CRRC Group Zhuzhou Rolling Stock Plant | 8,909,666 | 1.11 | | CRRC Ziyang Co., Ltd. | 7,179,675 | 0.89 | | CRRC Group Nanjing Puzhen Rolling Stock Plant | 7,070,109 | 0.88 | | PICC Property and Casualty Company Limited - Traditional - Income Portfolio | 7,003,108 | 0.87 | | National Council for Social Security Fund 404 Portfolio | 5,815,525 | 0.72 | | China People's Health Insurance Company Limited - Traditional - Ordinary Insurance Product | 5,671,798 | 0.71 | - Among the top ten shareholders, several have CRRC Corporation Limited or CRRC Group as their controlling shareholder, indicating related party relationships or concerted actions[10](index=10&type=chunk) [2.3 Preferred Shareholder Information](index=5&type=section&id=2.3%20Preferred%20Shareholder%20Information) At the end of the reporting period, the company had no preferred shareholders - The company had no preferred share-related matters during this reporting period[10](index=10&type=chunk) [Item III. Significant Matters](index=5&type=section&id=Item%20III.%20Significant%20Matters) [3.1 Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, several financial indicators underwent significant changes: net cash flow from operating activities turned sharply negative due to declining collections; inventory surged by 45.06% due to delayed wind blade deliveries; short-term borrowings increased by 312.31% for liquidity; and non-current liabilities due within one year plummeted by 80.03% due to repayment of medium-term notes Significant Changes in Financial Indicators | Item | Change Percentage (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4568.07 | Decline in collection amount and low cash collection ratio during the reporting period | | Inventory | 45.06 | Delayed delivery period in the wind blade industry led to an increase in blade inventory | | Short-term Borrowings | 312.31 | New short-term bank borrowings during the reporting period | | Non-current Liabilities Due Within One Year | -80.03 | Repayment of matured CNY 700 million medium-term notes during the reporting period | | Financial Expenses | 33.07 | Increased exchange losses due to changes in Euro and US Dollar exchange rates | | Other Current Assets | -75.07 | Collection of matured short-term bank wealth management products | [3.3 Unfulfilled Commitments Beyond Due Date During the Reporting Period](index=7&type=section&id=3.3%20Unfulfilled%20Commitments%20Beyond%20Due%20Date%20During%20the%20Reporting%20Period) The controlling shareholder, CRRC Corporation Limited, committed to resolving the horizontal competition issue with Times New Material by August 4, 2020, through asset restructuring and business integration, a commitment currently being fulfilled - Controlling shareholder CRRC Corporation Limited committed to resolving horizontal competition issues with the company within five years (by August 4, 2020)[14](index=14&type=chunk) [3.4 Warning and Explanation Regarding Potential Loss or Significant Change in Cumulative Net Profit from Year-Beginning to End of Next Reporting Period](index=7&type=section&id=3.4%20Warning%20and%20Explanation%20Regarding%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company has not issued a warning regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period - The company has not issued a forecast warning for significant changes or losses in future performance[14](index=14&type=chunk) [Item IV. Appendix](index=8&type=section&id=Item%20IV.%20Appendix) [4.1 Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited consolidated and parent company financial statements for Q3 2017, comprising the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's consolidated total assets were **CNY 13.77 billion**, total liabilities **CNY 8.79 billion**, and equity attributable to parent company owners **CNY 4.85 billion**, with a debt-to-asset ratio of 63.83% Key Items from Consolidated Balance Sheet (September 30, 2017) | Item | Balance at Period End (CNY) | | :--- | :--- | | **Total Assets** | **13,773,767,592.11** | | Total Current Assets | 8,404,597,723.06 | | Total Non-current Assets | 5,369,169,869.05 | | **Total Liabilities** | **8,791,614,503.91** | | Total Current Liabilities | 5,494,984,693.77 | | Total Non-current Liabilities | 3,296,629,810.14 | | **Total Owners' Equity** | **4,982,153,088.20** | | Total Owners' Equity Attributable to Parent Company | 4,847,920,697.68 | [Parent Company Balance Sheet](index=10&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2017, the parent company's total assets were **CNY 10.80 billion**, total liabilities **CNY 6.20 billion**, and owners' equity **CNY 4.60 billion** Key Items from Parent Company Balance Sheet (September 30, 2017) | Item | Balance at Period End (CNY) | | :--- | :--- | | **Total Assets** | **10,800,053,013.03** | | **Total Liabilities** | **6,199,448,091.43** | | **Total Owners' Equity** | **4,600,604,921.60** | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) In Q1-Q3 2017, the company's total operating revenue was **CNY 7.99 billion**, a 3.39% year-over-year decrease, with net profit attributable to parent company owners at **CNY 50.48 million**, a significant 75.25% year-over-year decline Key Items from Consolidated Income Statement (January-September 2017) | Item | Amount from Year-Beginning to End of Reporting Period (CNY) | | :--- | :--- | | I. Total Operating Revenue | 7,985,492,731.80 | | II. Total Operating Costs | 7,953,525,834.77 | | III. Operating Profit | 35,037,462.93 | | IV. Total Profit | 79,249,757.61 | | V. Net Profit | 45,384,818.87 | | Net Profit Attributable to Parent Company Owners | 50,477,229.04 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1-Q3 2017, the parent company's operating revenue was **CNY 3.05 billion**, a year-over-year decrease, with net profit at **CNY 3.52 million**, a significant reduction from **CNY 136 million** in the prior year Key Items from Parent Company Income Statement (January-September 2017) | Item | Amount from Year-Beginning to End of Reporting Period (CNY) | | :--- | :--- | | I. Operating Revenue | 3,048,171,987.28 | | II. Operating Profit | -20,498,242.26 | | III. Total Profit | 4,650,716.66 | | IV. Net Profit | 3,515,709.14 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1-Q3 2017, net cash flow from operating activities was **-CNY 470 million**, a significant deterioration from the prior year's net inflow, with net cash inflow from investing activities at **CNY 73 million** and net cash outflow from financing activities at **CNY 150 million**, resulting in an ending cash and cash equivalents balance of **CNY 986.41 million** Consolidated Cash Flow Statement Summary (January-September 2017) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -469,551,924.69 | | Net Cash Flow from Investing Activities | 73,353,601.79 | | Net Cash Flow from Financing Activities | -150,033,816.43 | | Net Increase in Cash and Cash Equivalents | -552,984,900.46 | | Cash and Cash Equivalents at Period End | 986,412,706.36 | [Parent Company Cash Flow Statement](index=18&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1-Q3 2017, the parent company's net cash flow from operating activities was **-CNY 675 million**, also showing a net outflow, with an ending cash and cash equivalents balance of **CNY 571.73 million** Parent Company Cash Flow Statement Summary (January-September 2017) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -674,554,018.47 | | Net Cash Flow from Investing Activities | 293,667,895.37 | | Net Cash Flow from Financing Activities | -95,295,036.96 | | Net Increase in Cash and Cash Equivalents | -481,276,018.03 | | Cash and Cash Equivalents at Period End | 571,726,863.90 | [4.2 Audit Report](index=19&type=section&id=4.2%20Audit%20Report) The financial statements in this quarterly report are unaudited - The company explicitly states that the audit report is not applicable, confirming this quarterly report is unaudited[36](index=36&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2017 was approximately RMB 5.24 billion, a decrease of 11.63% compared to the same period last year[14]. - The net profit attributable to shareholders was approximately RMB 30.73 million, down 83.12% year-on-year[14]. - The net cash flow from operating activities was negative RMB 63.26 million, a decline of 137.73% compared to the previous year[14]. - The company achieved a sales revenue of RMB 5.23 billion in the first half of the year, a decrease of RMB 689 million or 11.63% compared to the same period last year[30]. - The net profit for the first half of the year was RMB 30.73 million, representing a significant decrease of 83.12% year-on-year, primarily due to declining revenue and adverse factors in the wind power business[30]. - Revenue from the wind power market was RMB 527 million, down RMB 583 million year-on-year, while revenue from the rail transit market was RMB 1.01 billion, a decrease of RMB 307 million[30]. - The profit attributable to the parent company's shareholders was ¥30,733,818.10, down from ¥182,094,092.71, indicating a decrease of about 83.1% year-over-year[80]. - Comprehensive income totalled ¥69,354,601.64, down from ¥228,216,391.77, a decline of approximately 69.7% year-over-year[80]. - Basic earnings per share for the first half of 2017 was RMB 0.04, down 82.61% year-on-year[16]. - The company reported a net profit of 132.03 million yuan from its subsidiary Zhuzhou Times Electric Insulation Co., Ltd.[41]. Assets and Liabilities - The total assets as of June 30, 2017, were approximately RMB 13.24 billion, a decrease of 1.22% from the end of the previous year[15]. - The company's net assets attributable to shareholders were approximately RMB 4.83 billion, a slight decrease of 0.14% from the previous year-end[15]. - The proportion of overseas assets accounted for 41.68% of total assets, amounting to approximately RMB 551.95 million[21]. - The company's total assets include accounts receivable of RMB 2.61 billion, which accounted for 19.73% of total assets, showing a slight increase of 1.04% from the previous year[34]. - Total assets decreased from CNY 13,407,106,792.09 to CNY 13,243,508,275.86, a decline of approximately 1.22%[74]. - Total liabilities decreased from CNY 8,505,460,081.83 to CNY 8,349,515,877.74, a decline of approximately 1.83%[74]. - Owner's equity decreased from CNY 4,901,646,710.26 to CNY 4,893,992,398.12, a slight decrease of about 0.16%[75]. - The total owner's equity at the end of the reporting period is CNY 4,931,598,495.14, an increase from CNY 4,677,369,027.66 at the end of the previous year, representing a growth of approximately 5.4%[96]. Cash Flow - The net cash flow from operating activities was -63,256,815.94 RMB, a decrease compared to 167,634,875.82 RMB in the previous period[86]. - Total cash inflow from operating activities amounted to 6,040,391,262.17 RMB, while cash outflow was 6,103,648,078.11 RMB, resulting in a net cash outflow[86]. - Cash inflow from investment activities was 652,676,579.91 RMB, down from 999,031,023.17 RMB in the previous period, while cash outflow was 448,259,869.14 RMB[86]. - The net cash flow from investment activities improved to 204,416,710.77 RMB from -327,083,840.23 RMB in the previous period[86]. - Cash inflow from financing activities totaled 676,780,000.00 RMB, an increase from 558,500,000.00 RMB in the previous period[87]. - The ending balance of cash and cash equivalents was 1,459,835,872.30 RMB, down from 1,902,896,435.26 RMB in the previous period[87]. - The company's cash and cash equivalents at the end of the period amounted to CNY 1,459,835,872.30, down from CNY 1,543,501,673.38 at the beginning of the period, representing a decrease of approximately 5.4%[195]. Investments and R&D - The company invested 84.57 million yuan during the reporting period, a significant increase of 378.54% compared to 17.67 million yuan in the same period last year[38]. - The company is investing heavily in new material projects, including polyimide films and aramid fibers, with total project investments reaching several hundred million yuan[43]. - The company’s research and development expenditure was RMB 270.80 million, a decrease of 4.28% compared to the previous year[33]. - The company has established strategic partnerships with six major locomotive manufacturers globally, achieving bulk supply as the only supplier[24]. Market Position and Strategy - The company is focusing on high-end products and expanding into international markets, particularly in rail transit and wind power sectors[20]. - The company has positioned itself in the wind power sector, with revenue from wind turbine blades ranking among the top three in China[20]. - The company’s strategic customer order share reached 85% in the wind power market, making it the largest supplier for several key clients[25]. - The company has expanded its international presence through acquisitions in Australia and Germany, establishing subsidiaries in multiple countries[26]. Shareholder Information - The largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., holds 292,494,103 shares, representing 36.43% of total shares[64]. - The second largest shareholder, Nanchang Investment Management Co., Ltd., holds 66,029,078 shares, accounting for 8.22%[64]. - The company has 141,376,060 restricted shares that will become tradable on January 14, 2019, due to a non-public offering[66]. Legal and Regulatory Matters - The company has ongoing litigation involving its 60% owned subsidiary, with a total claim amount of RMB 89.66 million related to two contract disputes[53]. - The company has committed to resolving competition issues with Zhuzhou Times New Material Technology Co., Ltd. within five years through recognized regulatory methods[51]. Risk Factors - The company faces international operational risks due to its expansion into overseas markets, which increases management complexity and exposure to currency fluctuations[42]. - The company anticipates potential risks related to information technology upgrades and automation to meet international operational demands[45]. Accounting Policies - The company adheres to the accounting standards issued by the Ministry of Finance, ensuring that financial statements reflect the true financial condition and operating results[112]. - The company uses Renminbi as its functional currency for domestic operations, while foreign subsidiaries use currencies such as Euro, Hong Kong Dollar, and Australian Dollar[115]. - The company recognizes deferred tax assets and liabilities based on temporary differences between the carrying amount of assets and liabilities and their tax bases, with a focus on the likelihood of future taxable income to utilize these assets[180].

Financial Performance - Total revenue for Q1 2017 was CNY 2,480,829,627.52, a decrease of 17.97% compared to CNY 3,024,411,545.00 in the same period last year[11] - Net profit attributable to shareholders was CNY 20,830,237.25, down 69.47% from CNY 68,237,183.36 year-on-year[6] - Net profit for Q1 2017 was CNY 19,291,873.66, down 71.54% from CNY 67,838,537.07 in Q1 2016[22] - The total comprehensive income attributable to the parent company was CNY 32,163,888.86, down from CNY 100,450,614.90 in the previous year, a decrease of 68.06%[23] - Earnings per share (EPS) for Q1 2017 was CNY 0.03, compared to CNY 0.08 in Q1 2016, indicating a decline of 62.5%[23] - Operating costs for Q1 2017 were CNY 2,456,435,420.73, a decrease of 16.83% from CNY 2,954,169,308.13 in Q1 2016[21] Cash Flow - The net cash flow from operating activities was CNY -485,289,374.33, compared to CNY -259,244,914.21 in the previous year, indicating a worsening cash flow situation[11] - Operating cash inflow from sales increased to ¥2,477,729,539.01, up from ¥2,148,417,115.85, representing a growth of approximately 15.3% year-over-year[26] - Total cash inflow from operating activities was ¥2,528,531,747.46, compared to ¥2,205,338,355.76, indicating a growth of approximately 14.7%[26] - Cash inflow from investment activities totaled ¥384,497,576.00, significantly higher than ¥135,370,141.83, marking an increase of about 184.5%[27] - Net cash flow from investment activities improved to ¥179,129,737.79 from a negative ¥-846,932,270.81, indicating a positive turnaround[27] - Cash outflow from financing activities decreased to ¥6,902,666.35 from ¥407,115,214.61, showing a reduction of approximately 98.3%[27] - The net increase in cash and cash equivalents was ¥-312,456,738.27, an improvement from ¥-1,497,631,225.71 in the previous period[27] Assets and Liabilities - The company's total assets decreased by 0.97% to CNY 13,276,549,136.35 from CNY 13,407,106,792.09 at the end of the previous year[6] - Total current assets decreased from CNY 8,344,285,027.97 to CNY 8,160,093,642.30, a decline of approximately 2.2%[14] - Total non-current assets increased from CNY 5,062,821,764.12 to CNY 5,116,455,494.05, an increase of approximately 1.1%[15] - Total liabilities decreased from CNY 8,505,460,081.83 to CNY 8,344,033,824.28, a reduction of about 1.9%[16] - The company's total liabilities decreased to CNY 5,640,366,623.33 from CNY 6,093,380,760.37, reflecting a reduction of 7.43%[20] - Total liabilities and equity decreased to CNY 10,323,981,887.40 from CNY 10,770,749,788.03, a decline of 4.13%[20] Shareholder Information - The company recorded a total of 53,090 shareholders at the end of the reporting period[9] Investments and Expenses - The company experienced a 54.57% reduction in financial expenses, amounting to CNY 36,093,171.68, due to a significant decrease in borrowings compared to the previous year[11] - The company reported a financial expense of CNY 36,093,171.68, significantly lower than CNY 79,447,198.80 in the same quarter last year, a reduction of 54.5%[22] - The construction in progress increased by 16.00% to CNY 540,994,666.82, reflecting investments in PI membranes and the automotive industry[12] - The company recorded an investment income of CNY 1,504,777.77, up from CNY 751,384.20 in the previous year, an increase of 100.03%[22] Inventory and Receivables - The company reported a significant increase in accounts receivable, which rose by 17.99% to CNY 3,051,079,534.27, attributed to slower payments in the rail transit and wind power markets[11] - Accounts receivable increased from CNY 2,585,900,524.25 to CNY 3,051,079,534.27, an increase of approximately 18.0%[14] - Inventory increased from CNY 1,647,673,487.93 to CNY 1,761,369,820.20, reflecting an increase of about 6.9%[14] - Accounts payable decreased from CNY 2,475,549,077.10 to CNY 2,243,591,953.34, a decrease of approximately 9.4%[15] Equity - Total equity increased from CNY 4,901,646,710.26 to CNY 4,932,515,312.07, reflecting an increase of approximately 0.6%[16] - The total equity of the company increased slightly to CNY 4,683,615,264.07 from CNY 4,677,369,027.66, reflecting a growth of 0.13%[20]

Financial Performance - The company achieved a net profit attributable to shareholders of RMB 241,988,976.47 in 2016, a decrease of 5.32% compared to RMB 255,574,282.43 in 2015[3]. - Operating revenue for 2016 was RMB 11,641,393,007.08, representing a year-on-year increase of 7.54% from RMB 10,825,107,108.04 in 2015[21]. - The net cash flow from operating activities increased by 143.53% to RMB 659,502,804.13 in 2016, compared to RMB 270,814,682.74 in 2015[21]. - The company's total assets as of the end of 2016 were RMB 13,407,106,792.09, a 2.47% increase from RMB 13,084,178,201.65 at the end of 2015[21]. - The net assets attributable to shareholders increased by 3.59% to RMB 4,836,310,836.63 at the end of 2016, compared to RMB 4,668,760,812.47 at the end of 2015[21]. - The company reported a net profit excluding non-recurring gains and losses of RMB 143,583,060.92, down 35.86% from RMB 223,843,949.88 in 2015[21]. - Basic earnings per share decreased by 23.08% to CNY 0.30 compared to CNY 0.39 in the previous year[23]. - The net profit attributable to shareholders for Q4 2016 was CNY 38,055,572.14, a significant drop from CNY 113,856,909.35 in Q2 2016[25]. - The company reported a net cash flow from operating activities of CNY -259,244,914.21 in Q1 2016, indicating cash flow challenges[25]. - The weighted average return on equity decreased by 3.24 percentage points to 5.09% from 8.33% in the previous year[23]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 80,279,815.20, based on the total share capital of 802,798,152 shares[3]. - The company's net profit for 2016 was 241,988,976.47 RMB, resulting in a cash dividend payout ratio of 33.17%[87]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[89]. - In 2015, the company distributed a cash dividend of 0.50 RMB per 10 shares, amounting to 40,139,907.60 RMB, with retained earnings of 782,894,568.78 RMB[86]. Market and Strategic Developments - The company has established strategic partnerships with six major locomotive manufacturers, achieving bulk supply status[35]. - The company has successfully expanded its international presence through acquisitions in Australia and Germany, enhancing its global operational capabilities[36]. - The company plans to increase its annual production capacity of wind turbine blades to over 2,500 sets by the end of 2017, establishing itself as one of the largest blade production bases in southern China[42]. - In the rail transit market, the company aims to increase its market share from 17% to 40% over the next three years through a global strategic partnership with BT[40]. - The automotive segment, through the acquisition of BOGE, reported a profit of 627.84 million euros, with significant orders from major brands like Volkswagen and Porsche[43]. Research and Development - The company holds 795 patents, including 263 invention patents, showcasing its strong R&D capabilities[32]. - The company’s R&D expenditure was 623.85 million RMB, reflecting a growth of 4.05% compared to the previous year[48]. - The company completed the development of four new wind turbine blade designs, significantly reducing the product design and development cycle by half[41]. - The company is focusing on the development of advanced polymer materials, including polyimide films and aramid products, to enhance its profitability and market position[44]. Financial Health and Risks - There were no significant operational risks that impacted the company's production and operations during the reporting period[7]. - The company has no non-operating fund occupation by controlling shareholders and their related parties[7]. - The company has provided guarantees totaling RMB 1.8346 billion, which accounts for 3.79% of the company's net assets[100]. - The company has not reported any significant accounting errors during the reporting period[92]. - The company did not face any risks of suspension or termination of its listing during the reporting period[94]. Corporate Governance and Management - The company has actively fulfilled its social responsibilities, including environmental protection and public relations[102]. - The company has implemented a salary incentive mechanism to enhance the alignment of employee contributions with compensation[139]. - The total pre-tax remuneration for the management team during the reporting period amounted to 669.27 million CNY[128]. - The board of directors has approved a stock buyback program worth 100 million yuan to enhance shareholder value[132]. - The company has established a performance management system linking executive compensation to business performance, ensuring alignment with strategic goals[150]. Future Outlook - The company plans to achieve a revenue target of RMB 11.8 billion in 2017, focusing on the mass production of polyimide films and other new products[78]. - The company aims to enhance its position in the wind power industry by developing new products such as low-wind-speed large-power blades and carbon fiber blades[76]. - The company is focusing on the development of high-performance polyimide films and other new materials to replace imports and fill domestic gaps[77]. - The company anticipates a significant investment in new material projects, with total investments reaching several hundred million RMB, while facing uncertainties regarding the expected returns[81].