Financial Performance - Net profit attributable to shareholders decreased by 327.20%, resulting in a loss of CNY 17,131,706.42 for the period[6] - Operating revenue for the first nine months was CNY 271,863,087.38, down 15.18% year-on-year[6] - Total operating revenue for the first nine months of 2015 was CNY 271,863,087.38, down from CNY 320,498,829.94 in the same period of 2014, a decrease of approximately 15.2%[31] - The net loss for the first nine months of 2015 was CNY 17,131,706.42, compared to a profit of CNY 7,540,218.34 in the same period of 2014[32] - The net profit for Q3 2015 was a loss of CNY 894,492.09, compared to a profit of CNY 60,149.59 in Q3 2014, reflecting a significant decline[32] - The total profit for the first nine months of 2015 was CNY 52,307,018.71, compared to a total loss of CNY -9,648,396.75 in the previous year[34] Cash Flow - Net cash flow from operating activities increased by 291.71%, reaching CNY 203,129,808.80[6] - Operating cash flow for the first nine months of 2015 was CNY 203,129,808.80, a significant improvement from a negative cash flow of CNY -105,956,240.65 in the previous year[36] - The company's cash and cash equivalents at the end of September 2015 totaled CNY 62,292,816.98, an increase from CNY 23,207,855.70 at the end of the previous year[37] - Net cash flow from operating activities was $174,950,470.33, a significant improvement compared to a net outflow of $63,839,270.16 in the previous period[40] - The ending balance of cash and cash equivalents was $808,588.28, compared to $13,130,153.96 in the previous period[40] - The net increase in cash and cash equivalents for the period was $563,684.09, contrasting with a decrease of $76,026,670.16 in the previous period[40] Assets and Liabilities - Total assets decreased by 6.73% compared to the end of the previous year, amounting to CNY 1,204,366,392.66[6] - The company's current assets totaled CNY 245,616,428.12, down from CNY 449,072,294.93, indicating a significant reduction of about 45.36%[25] - The total liabilities decreased to CNY 640,282,301.68 from CNY 823,211,259.21, representing a reduction of about 22.19%[27] - The total liabilities as of the end of Q3 2015 amounted to CNY 128,998,194.13, down from CNY 215,742,178.81 at the end of Q3 2014, a decrease of approximately 40.2%[30] - The company's equity attributable to shareholders rose to CNY 564,084,090.98 from CNY 468,036,000.41, marking an increase of approximately 20.51%[27] - The total equity increased to CNY 611,664,698.91 in Q3 2015 from CNY 428,217,482.30 in Q3 2014, representing a growth of about 42.7%[30] Production and Sales - The company produced 1.0524 million tons of raw coal, a decrease of 23.93% year-on-year[12] - The average sales cost of raw coal was CNY 164.76 per ton, a slight decrease of 0.39% year-on-year[12] - The company experienced a 40.05% reduction in sales expenses due to decreased sales volume[11] - Total revenue from sales of goods and services for the first nine months of 2015 reached CNY 453,263,519.14, up from CNY 187,965,831.63 in the same period last year[36] Investment Activities - The net cash flow from investment activities increased by 95.52% due to significant asset restructuring[11] - Investment activities resulted in a net cash outflow of CNY -1,127,175.65 for the first nine months of 2015, an improvement from CNY -25,141,594.07 in the same period last year[37] - Cash paid for investments was $167,000,000.00, reflecting ongoing investment strategies[40] Shareholder and Corporate Governance - The number of shareholders reached 20,425 by the end of the reporting period[9] - The controlling shareholder, Qingtou Group, committed to avoiding competition with the company and will gradually transfer coal production assets to the company[16] - Qingtou Group holds a 21% stake in the newly established Qinghai Energy Company, which is the sole developer of the Yuka coal mine area[17] - The company has not violated any commitments made by its controlling shareholder regarding competition avoidance[19] - Qingtou Group will prioritize transferring competitive assets to the company within four years if the business conditions improve[20] - The company will not engage in any business that competes with Qinglong Strontium Salt during its control period[20] - The company has maintained compliance with all commitments made by its controlling shareholder as of the latest report[21]

Financial Performance - The company reported a net loss attributable to shareholders of CNY -16,237,214.33, a decrease of 317.07% compared to the same period last year[19]. - Total revenue for the reporting period was CNY 186,685,605.49, down 21.80% year-on-year[19]. - The company's operating revenue decreased by 21.80% to CNY 186,685,605.49 compared to the same period last year[23]. - The company reported a net profit of -CNY 16,237,200, a decline of 317.07% year-on-year, primarily due to the ongoing downturn in the coal market and increased tax burdens[25]. - The company reported an operating loss of CNY -15,825,756.43, compared to an operating profit of CNY 10,978,909.52 in the previous year[86]. - The company reported a total comprehensive loss of CNY -16,237,214.33 for the first half of 2015, compared to a comprehensive income of CNY 7,480,068.75 in the same period last year[86]. Production and Sales - The company produced 83.5 million tons of raw coal, a decrease of 18.14% year-on-year, and sold 77 million tons, down 24.51% year-on-year[21]. - The revenue from coal sales was CNY 171,326,500, a decline of 28.16% compared to the previous year[21]. - The coal segment's revenue decreased by 28.16%, with a gross margin of 26.08%, reflecting a decline in both sales volume and price[34]. - The company produced 835,000 tons of raw coal, achieving 46.39% of its annual target, while sales reached 770,000 tons, or 42.78% of the annual target[32]. Cash Flow and Liquidity - The net cash flow from operating activities increased to CNY 206,660,670.60, a significant increase of 497.05% year-on-year[19]. - The company's cash and cash equivalents increased significantly to CNY 113,268,251.83 from CNY 5,847,406.40, indicating improved liquidity[79]. - Operating cash inflow for the current period reached ¥421,400,669.93, a significant increase from ¥170,891,027.71 in the previous period, representing a growth of approximately 146.3%[90]. - Cash inflow from financing activities was ¥30,064,297.90, while cash outflow totaled ¥136,441,248.61, resulting in a net cash flow of -¥106,376,950.71, compared to a positive net cash flow of ¥54,288,013.93 previously[91]. Assets and Liabilities - The company's total assets increased by 4.16% to CNY 1,275,146,531.19 compared to the end of the previous year[19]. - Total liabilities decreased to CNY 700,792,511.21 from CNY 823,211,259.21, indicating a reduction in financial obligations[81]. - The company's equity increased to CNY 574,354,019.98 from CNY 468,036,000.41, showing a positive trend in shareholder value[81]. - The total accounts receivable at the end of the period is CNY 95,472,780.64, with a bad debt provision of CNY 19,283,076.15, indicating a provision ratio of approximately 20.19%[197]. Investments and Acquisitions - The company completed a major asset restructuring, acquiring 100% of Qinglong Zhi Salt, which is now a wholly-owned subsidiary[27]. - The company completed the acquisition of 100% equity in Qinglong Strontium Salt, with a capital increase from RMB 273.40 million to RMB 288.18 million[46]. - The company plans to use the remaining RMB 182.39 million of the raised funds for the Qinglong Strontium Salt technology upgrade project and to supplement working capital[39]. Shareholder and Equity Information - The total number of shareholders reached 22,151 by the end of the reporting period[71]. - The largest shareholder, Qinghai Investment Group Co., Ltd., holds 122,467,041 shares, representing 42.50% of the total shares[72]. - The total number of shares increased from 273,404,541 to 288,176,273, reflecting an increase of 14,771,732 shares[67]. - The company has not made any distributions to owners or shareholders during the current period, focusing on reinvestment[102]. Financial Management and Strategy - The company aims to diversify its operations through acquisitions and mergers to mitigate risks associated with the coal market downturn[37]. - The company plans to enhance management efficiency and strengthen customer cooperation to ensure stable operations amid a challenging market environment[32]. - The company has committed to not engage in any business that competes with Qinglong Strontium Salt, ensuring no direct or indirect competition during the period of controlling Jinrui Mining[57]. Accounting and Financial Reporting - The company has adjusted its accounting policies in accordance with new accounting standards effective from July 1, 2014, impacting deferred income and other non-current liabilities without affecting total assets, net assets, or net profit[61]. - The financial statements are prepared based on the assumption of going concern, indicating the company’s ability to continue operations for at least 12 months from the reporting date[117]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that the financial statements accurately reflect its financial position and operating results[118].

Financial Performance - Operating revenue declined by 12.40% to CNY 117,159,772.52 year-on-year[5] - Net profit attributable to shareholders decreased by 83.52% to CNY 435,468.10 compared to the same period last year[5] - Operating profit for Q1 2015 was CNY 1,578,581.75, down 64.3% from CNY 4,418,500.76 in the same period last year[34] - Net profit for Q1 2015 was CNY 435,468.10, a decline of 83.5% compared to CNY 2,642,287.25 in Q1 2014[35] - The company has not reported any significant changes in net profit or losses compared to the previous year, indicating stability in financial performance[26] Assets and Liabilities - Total assets decreased by 2.58% to CNY 1,257,936,559.74 compared to the end of the previous year[5] - The company's current assets totaled CNY 414,269,732.80, down from CNY 449,072,294.93 at the beginning of the year, indicating a decline of approximately 7.7%[28] - Total liabilities decreased to CNY 784,615,532.08 from CNY 823,211,259.21, a decline of approximately 4.7%[30] - The company's total equity decreased to CNY 425,202,353.98 from CNY 428,217,482.30 at the beginning of the year[33] Cash Flow - Cash flow from operating activities increased by 208.47% to CNY 74,639,677.32 year-on-year[5] - The net cash flow from operating activities was ¥74,639,677.32, a turnaround from a negative cash flow of ¥68,809,470.71 in the previous period[38] - Cash and cash equivalents increased significantly to CNY 57,138,994.38 from CNY 5,847,406.40, reflecting a growth of over 876%[28] - Cash and cash equivalents at the end of the period increased to ¥57,138,994.38 from ¥37,028,667.17 in the previous period, reflecting a net increase of ¥51,291,587.98[42] Shareholder Information - The number of shareholders reached 24,663 at the end of the reporting period[7] - The company received approval from the China Securities Regulatory Commission for the issuance of 12,273,442 new shares, increasing the registered capital to RMB 285,677,983[13] - The company plans to issue shares to acquire assets and raise matching funds, which has received conditional approval from the China Securities Regulatory Commission[11] Expenses - The company experienced a 68.21% decrease in sales expenses due to the cessation of comprehensive service fees for railway transportation[9] - The company’s financial expenses increased by 84.99% due to higher interest from bill discounts[9] - The company’s management expenses decreased to ¥3,140,084.63 from ¥3,478,987.99 in the previous period, indicating improved cost management[37] - The company’s financial expenses increased to ¥211,694.57 from ¥172,404.11 in the previous period, reflecting higher borrowing costs[37] Accounting and Policy Changes - The company adjusted its accounting policies in accordance with new accounting standards issued by the Ministry of Finance, effective from July 1, 2014[16] - The changes in accounting policies affected deferred income and other non-current liabilities, but did not impact total assets, net assets, or net profit[17] Strategic Developments - The company completed the transfer of 100% equity of Chongqing Qinglong Fine Strontium Salt Chemical Co., becoming its sole shareholder[12] - The company’s major shareholder, Qingtou Group, committed to avoid competition with Yuka Coal and Electricity for three years after its full production[19] - Qinghai Energy Company was established with a 21% stake from Qingtou Group, which will be the sole developer of the Yuka mining area[20] - The company has committed to transferring all rights of Qinghai Energy Company to ensure it becomes the sole operator of coal mining under Qingtou Group within three years of full production[21] - Qingtou Group has pledged to prioritize the transfer of any competing assets to the company at reasonable prices if such assets exist[22]

Financial Performance - In 2014, the company achieved a net profit of CNY 9,016,186.69, a decrease of 60.26% compared to CNY 22,688,027.87 in 2013[2] - The company's operating revenue for 2014 was CNY 427,014,306.78, down 25.08% from CNY 569,942,256.88 in 2013[24] - The basic earnings per share for 2014 was CNY 0.033, a decline of 58.75% from CNY 0.08 in 2013[24] - The operating profit was ¥6,465,909.61, reflecting a significant decline of 80.02% compared to the previous year[28] - The company reported a total profit for the year of RMB 18,725,567.42, down 48% from RMB 36,450,190.19 in the previous year[157] - The total operating revenue for 2014 was RMB 427,014,306.78, a decrease of 25% compared to RMB 569,942,256.88 in the previous year[156] - The company experienced a decrease in sales expenses, which fell to RMB 12,372,523.53 from RMB 16,784,476.46, a reduction of approximately 26%[156] Cash Flow - The net cash flow from operating activities was negative CNY 106,327,413.76, compared to negative CNY 1,391,176.21 in 2013[24] - The company’s cash flow from operating activities showed a net outflow of ¥106,327,413.76, a decrease of 7542.99% year-on-year[35] - The company reported a net cash flow from operating activities of -77,061,919.93 RMB, compared to -7,042,825.03 RMB in the previous period[164] - Cash inflow from financing activities was 2,567,500.00 RMB, while cash outflows totaled 161,850,000.00 RMB, resulting in a net cash flow of -11,850,000.00 RMB[164] Assets and Liabilities - The total assets at the end of 2014 were CNY 1,291,247,259.62, an increase of 5.47% from CNY 1,224,229,804.80 at the end of 2013[24] - Total liabilities rose to ¥823,211,259.21 from ¥774,013,554.81, marking an increase of around 6.4%[150] - Current liabilities increased to ¥483,522,163.07 from ¥409,831,712.78, showing a growth of approximately 17.9%[150] - The company's equity attributable to shareholders increased to ¥468,036,000.41 from ¥450,216,249.99, representing a growth of approximately 4%[150] Shareholder Information - The largest shareholder, Qinghai Investment Group Co., Ltd., holds 44.79% of the shares, with 75,610,000 shares pledged[95] - As of the end of the reporting period, the total number of shareholders was 21,863, an increase from 21,794 prior to the report[93] - The company has established a three-year shareholder return plan from 2012 to 2014, focusing on profit distribution and cash dividends[65] Risk Management and Future Plans - The company has outlined potential risks in its future development plans, which investors should be aware of[3] - The company plans to ensure the completion of the 450,000 tons/year project by the end of the year to increase raw coal capacity[57] - The company will actively integrate resources in the Qinghai coal sector and pursue acquisitions to diversify operations and mitigate risks from a sluggish coal market[53] - The company anticipates risks from industry policies, safety production, and rising costs due to increased mining depth and material prices[56] Internal Control and Governance - The company has implemented a robust internal control system, revising key governance documents to enhance risk management and governance standards[121] - The audit committee evaluated the independence and professionalism of the external auditor, Beijing Yongtuo Accounting Firm, and recommended their continued engagement for the 2014 audit[130] - The company has maintained strict compliance with information disclosure regulations, ensuring timely and accurate reporting of significant information[122] Employee and Management Information - The total remuneration for senior management during the reporting period amounted to 328.83 million RMB[104] - The company has a total of 390 production personnel, 8 sales personnel, 147 technical personnel, 10 financial personnel, and 88 administrative personnel[111] - The core technical team remains stable with no changes during the reporting period, which is crucial for maintaining the company's competitive edge[110] Related Party Transactions - The company reported a total related party transaction amount of 291,643,566.13 RMB, accounting for 68.59% of the total sales[70] - The company has established a long-term stable supply relationship with Qingtai Aluminum Electric, with related party sales accounting for 50-70% of total coal sales over the past three years[70] - The company is actively exploring sales channels to reduce reliance on related party sales and increase sales to non-related parties[70]

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section provides essential declarations from the board and outlines the audit status of the quarterly report [Board Statement and Audit Status](index=3&type=section&id=1.1%20Board%20Statement%20and%20Audit%20Status) The company's board, supervisory board, and senior management guarantee the report's accuracy and completeness, noting an independent director's proxy vote and the unaudited status of this quarterly report - Company management ensures the truthfulness, accuracy, and completeness of the report, assuming legal responsibility[9](index=9&type=chunk) - Independent director Zhao Yonghuai was absent from the board meeting due to business travel, delegating voting rights to Wang Liming[6](index=6&type=chunk) - This quarterly report is unaudited[9](index=9&type=chunk) [Company's Key Financial Data and Shareholder Changes](index=3&type=section&id=Item%20II.%20Company's%20Key%20Financial%20Data%20and%20Shareholder%20Changes) This section details the company's financial performance, including assets, revenue, and net profit, alongside significant shareholder information [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of Q3 2014, total assets reached **RMB 1.29 billion**, up 5.36% from year-end, while revenue decreased by 23.47% to **RMB 320 million**, and net profit attributable to shareholders fell 50.22% to **RMB 7.54 million** Key Financial Data for Q1-Q3 2014 | Indicator | Year-Start to Report Period End (Jan-Sep) | Prior Year-Start to Report Period End (Jan-Sep) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 320,498,829.94 RMB | 418,785,890.87 RMB | -23.47% | | Net Profit Attributable to Shareholders | 7,540,218.34 RMB | 15,146,929.67 RMB | -50.22% | | Net Profit Excluding Non-recurring Items | 3,663,414.75 RMB | 15,814,231.88 RMB | -76.83% | | Net Cash Flow from Operating Activities | -105,956,240.65 RMB | -49,593,305.24 RMB | N/A | | Basic Earnings Per Share (RMB/share) | 0.0276 | 0.0554 | -50.18% | | Weighted Average Return on Net Assets (%) | 1.63% | 3.42% | Decreased by 1.79 percentage points | Non-recurring Gains and Losses | Item | Amount from Year-Start to Report Period End (Jan-Sep) (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -8,665.59 | Net loss from vehicle disposal | | Government Grants Recognized in Current P&L | 4,109,031.30 | Subsidies for mineral resource protection projects, etc. | | Other Non-operating Income/Expenses | -223,562.12 | Fines and confiscations, etc. | | **Total** | **3,876,803.59** | | [Shareholder Information](index=4&type=section&id=2.2%20Total%20Shareholders,%20Top%20Ten%20Shareholders,%20and%20Top%20Ten%20Unrestricted%20Shareholders%20at%20Report%20End) At report end, the company had **25,396 shareholders**, with the top three state-owned legal entities holding over **68%** of shares, and the largest shareholder having a portion of its stake pledged - As of the end of the reporting period, the company had a total of **25,396 shareholders**[12](index=12&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Qinghai Provincial Investment Group Co., Ltd. | 122,467,041 | 44.79 | State-owned Legal Entity | | Qinghai Jinxing Mining Co., Ltd. | 41,938,670 | 15.34 | State-owned Legal Entity | | State Grid Qinghai Electric Power Company | 22,313,409 | 8.16 | State-owned Legal Entity | - The largest shareholder, Qinghai Provincial Investment Group Co., Ltd., pledged **98,010,000 shares**[12](index=12&type=chunk) - The second largest shareholder, Qinghai Jinxing Mining Co., Ltd., is a controlled subsidiary of the largest shareholder, constituting an associated relationship[13](index=13&type=chunk) [Significant Matters](index=5&type=section&id=Item%20III.%20Significant%20Matters) This section details significant changes in financial items, progress on major corporate actions, and the fulfillment of shareholder commitments [Analysis of Significant Changes in Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Company's%20Major%20Accounting%20Statement%20Items,%20Significant%20Changes%20in%20Financial%20Indicators%20and%20Reasons) During the reporting period, significant changes occurred in financial statement items, with cash and cash equivalents decreasing by **81.94%**, notes receivable increasing by **79.06%**, and non-operating income surging by **4938.45%** due to government grants - Cash and cash equivalents decreased by **81.94%** from the beginning to the end of the period, primarily due to reduced cash receipts and settlements[14](index=14&type=chunk) - Notes receivable increased by **79.06%** from the beginning to the end of the period, mainly because accounts receivable were primarily settled by notes[14](index=14&type=chunk) - Short-term borrowings increased by **60%** from the beginning to the end of the period, mainly due to new bank loans[14](index=14&type=chunk) - Non-operating income increased by **4938.45%** compared to the same period last year, primarily due to the recognition of government grants[15](index=15&type=chunk) [Progress of Significant Matters](index=6&type=section&id=3.2%20Progress%20of%20Significant%20Matters%20and%20Analysis%20of%20Their%20Impact%20and%20Solutions) The company is advancing a major asset restructuring plan involving share issuance and fundraising, while also receiving **RMB 7.5 million** in central government funds for coal mine safety upgrades - The company is planning a major asset restructuring involving issuing shares to acquire assets and raise supporting funds; the relevant preliminary and final proposals have been disclosed and approved by the second extraordinary general meeting of shareholders in 2014[16](index=16&type=chunk) - The company received **RMB 7.5 million** in central budget investment funds, specifically allocated for coal mine safety renovation projects of its wholly-owned subsidiary, Qinghai Xihai Coal Development Co., Ltd[17](index=17&type=chunk) [Fulfillment of Commitments](index=6&type=section&id=3.3%20Fulfillment%20of%20Commitments%20by%20the%20Company%20and%20Shareholders%20Holding%205%25%20or%20More) The controlling shareholder, Qinghai Investment Group, is fulfilling its 2009 commitment to avoid horizontal competition by gradually injecting coal assets into the listed company, with no violations reported - Controlling shareholder Qinghai Investment Group committed to inject its equity in affiliated coal enterprises (such as Qinghai Energy Company) into the listed company to avoid horizontal competition, once their operational performance significantly improves[18](index=18&type=chunk)[19](index=19&type=chunk) - Qinghai Investment Group has standardized the commitment fulfillment timeline, clarifying the transfer schedule after the relevant assets and businesses achieve good operating results[21](index=21&type=chunk)[22](index=22&type=chunk) - As of the end of the reporting period, the company's controlling shareholder has fulfilled its commitments as agreed, with no violations observed[21](index=21&type=chunk) [Impact of Accounting Standard Changes](index=8&type=section&id=3.4%20Impact%20of%20New%20Accounting%20Standards%20on%20Consolidated%20Financial%20Statements) The company confirms that the implementation of new accounting standards has no impact on its consolidated financial statements for the current period - The implementation of new accounting standards has no impact on the company's consolidated financial statements[23](index=23&type=chunk) [Appendix](index=9&type=section&id=Item%20IV.%20Appendix) This appendix contains the company's unaudited consolidated and parent company financial statements for the third quarter of 2014 [Financial Statements](index=9&type=section&id=4.1%20Financial%20Statements) This appendix contains the company's 2014 third-quarter unaudited financial statements, including consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2014, consolidated total assets were **RMB 1.29 billion**, total liabilities **RMB 815 million**, and owner's equity attributable to the parent company **RMB 475 million** Key Items from Consolidated Balance Sheet (September 30, 2014) | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 1,289,860,097.00 | 1,224,229,804.80 | | Total Liabilities | 814,800,860.42 | 774,013,554.81 | | Total Equity Attributable to Parent Company Owners | 475,059,236.58 | 450,216,249.99 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2014, parent company total assets were **RMB 657 million**, total liabilities **RMB 221 million**, and owner's equity **RMB 436 million** Key Items from Parent Company Balance Sheet (September 30, 2014) | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 656,902,464.78 | 662,819,624.75 | | Total Liabilities | 221,280,904.24 | 217,549,667.46 | | Total Owner's Equity | 435,621,560.54 | 445,269,957.29 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) For Q1-Q3 2014, consolidated operating revenue was **RMB 320 million**, down 23.5%, with net profit at **RMB 7.54 million**, a 50.2% decrease year-on-year Key Items from Consolidated Income Statement (Jan-Sep 2014) | Item | Amount from Year-Start to Report Period End (RMB) | Amount from Prior Year-Start to Report Period End (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 320,498,829.94 | 418,785,890.87 | | Operating Profit | 9,354,637.84 | 25,429,534.74 | | Total Profit | 13,231,441.43 | 24,762,232.53 | | Net Profit | 7,540,218.34 | 15,146,929.67 | [Parent Company Income Statement](index=14&type=section&id=Parent%20Company%20Income%20Statement) For Q1-Q3 2014, parent company operating revenue was **RMB 213 thousand**, resulting in a net loss of **RMB 9.65 million**, a significant decline from the prior year's profit Key Items from Parent Company Income Statement (Jan-Sep 2014) | Item | Amount from Year-Start to Report Period End (RMB) | Amount from Prior Year-Start to Report Period End (RMB) | | :--- | :--- | :--- | | Operating Revenue | 212,625.64 | 675,213.67 | | Operating Profit | -9,438,831.84 | 94,204,764.18 | | Total Profit | -9,648,396.75 | 94,159,473.93 | | Net Profit | -9,648,396.75 | 94,159,473.93 | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) For Q1-Q3 2014, consolidated net cash flow from operating activities was **-RMB 106 million**, with cash and cash equivalents significantly decreasing to **RMB 23.21 million** at period end Consolidated Cash Flow Statement Summary (Jan-Sep 2014) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | -105,956,240.65 | | Net Cash Flow from Investing Activities | -25,141,594.07 | | Net Cash Flow from Financing Activities | 25,826,922.26 | | Net Increase in Cash and Cash Equivalents | -105,270,912.46 | | Cash and Cash Equivalents at Period End | 23,207,855.70 | [Parent Company Cash Flow Statement](index=16&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For Q1-Q3 2014, parent company net cash flow from operating activities was **-RMB 63.84 million**, with cash and cash equivalents at period end totaling **RMB 13.13 million** Parent Company Cash Flow Statement Summary (Jan-Sep 2014) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | -63,839,270.16 | | Net Cash Flow from Investing Activities | -337,400.00 | | Net Cash Flow from Financing Activities | -11,850,000.00 | | Net Increase in Cash and Cash Equivalents | -76,026,670.16 | | Cash and Cash Equivalents at Period End | 13,130,153.96 |

Financial Performance - The company's operating revenue for the first half of 2014 was CNY 238.72 million, a decrease of 26.83% compared to CNY 326.26 million in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2014 was CNY 7.48 million, down 44.51% from CNY 13.48 million year-on-year[18]. - The basic earnings per share decreased by 44.42% to CNY 0.0274 from CNY 0.0493 in the previous year[17]. - The company produced and sold 1.02 million tons of raw coal, with revenue from raw coal sales amounting to CNY 238.49 million, a decline of 26.74% year-on-year[22]. - The net cash flow from operating activities decreased by 51.66% to CNY -52.05 million from CNY -107.68 million in the previous year[18]. - Operating costs fell by 24.51% to CNY 169,163,325.79, primarily due to reduced sales volume and price declines of raw coal[23]. - Sales expenses decreased by 39.91% to CNY 9,416,214.94, attributed to lower transportation and service fees[23]. - Management expenses were down by 18.97% to CNY 32,004,809.47, mainly due to reduced salary and other costs[23]. - Financial expenses decreased by 38.43% to CNY 10,013,629.04, primarily due to a reduction in the average loan scale[23]. - The net cash flow from operating activities improved by 51.66%, reaching -CNY 52,049,483.96, compared to -CNY 107,676,514.25 in the previous year[23]. - The net cash flow from investing activities increased by 115.06% to -CNY 21,980,191.81, mainly due to a decrease in cash received from asset disposals[23]. - The net cash flow from financing activities was CNY 54,288,013.93, a significant change from -CNY 14,009,077.77 in the previous year, due to new loans[23]. Market Environment and Strategy - The company faced a challenging market environment due to a slowdown in domestic economic growth and declining demand in the coal downstream industry[22]. - The company implemented comprehensive budget management and cost control measures to address the adverse market conditions[22]. - The company plans to actively respond to market changes and strengthen market development in the second half of the year[24]. - The core competitiveness of the company remained unchanged during the reporting period[26]. - The company is focused on maintaining a stable supply relationship with Qiaotou Aluminum Electric while diversifying its customer base[39]. - The company is actively expanding coal sales channels to increase the proportion of sales to non-related parties, aiming to gradually reduce the quantity and proportion of related sales[39]. - The company is in the process of developing new strategies to enhance its market position and operational efficiency[39]. Shareholder and Corporate Governance - The company aims to ensure the interests of minority shareholders while navigating its financial and operational challenges[43]. - The company has strengthened its corporate governance in compliance with relevant laws and regulations, ensuring the protection of shareholder interests[47]. - The total number of shareholders at the end of the reporting period is 22,646[59]. - The largest shareholder, Qinghai Investment Group Co., Ltd., holds 44.79% of the shares, totaling 122,467,041 shares, with 84,010,000 shares pledged[59]. - The second-largest shareholder, Qinghai Jinxing Mining Co., Ltd., holds 15.34% of the shares, totaling 41,938,670 shares[59]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[46]. - The company has no other significant contracts or transactions during the reporting period[42]. Tax and Financial Adjustments - The company reported a tax underpayment of CNY 1,426,729.81 from 2008 to 2010, resulting in a penalty of CNY 713,364.91[49]. - The adjustment for the tax error increased the payable tax from CNY 94,535,767.74 to CNY 95,962,497.55, affecting the undistributed profits[50]. - The company's tax payable increased from 94,535,767.74 to 95,962,497.55 after adjustments, reflecting an increase of approximately 1.5%[157]. - The unallocated profits for the year 2012 were adjusted from -9,735,879.93 to -11,162,609.74, indicating a decrease of about 14.7%[157]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1.30 billion, an increase of 6.46% from CNY 1.22 billion at the end of the previous year[18]. - The company's net assets attributable to shareholders increased by 3.96% to CNY 468.04 million from CNY 450.22 million at the end of the previous year[18]. - Total liabilities increased to CNY 835,219,920.82, up from CNY 774,013,554.81, representing a growth of approximately 7.3%[73]. - Current liabilities totaled CNY 464,805,497.05, compared to CNY 409,831,712.78 at the beginning of the year, reflecting an increase of about 13.4%[73]. - Non-current liabilities amounted to CNY 370,414,423.77, slightly up from CNY 364,181,842.03, indicating a growth of approximately 1.3%[73]. - The company's total assets as of June 30, 2014, amount to 1,303,263,169.89 RMB, an increase from 1,224,229,804.80 RMB at the beginning of the year[70]. - The total current assets are reported at 510,515,563.86 RMB, up from 436,893,068.03 RMB at the beginning of the year[72]. - The company's cash and cash equivalents decreased to 108,737,106.32 RMB from 128,478,768.16 RMB[72]. - Accounts receivable increased to 271,216,725.20 RMB from 179,691,520.00 RMB, reflecting a significant rise[72]. Investments and Projects - The company has a total of CNY 267,823,209.33 in construction in progress, reflecting an increase from CNY 242,257,149.28 at the beginning of the period[193]. - The total budget for the Chaidar Mine 3570 horizontal east-west transportation tunnel project is 28,739,400.00 CNY, with an initial amount of 20,438,128.00 CNY and an increase of 5,886,717.00 CNY during the period, resulting in a year-end balance of 26,324,845.00 CNY, achieving a progress rate of 90.20%[196]. - The total investment for the Hot Water Area shantytown renovation project is estimated at 121,800,000 CNY, with 812 housing units planned, including 274 units for on-site reconstruction and 538 units for relocation[198]. - The company received funding of 3,185,480.00 CNY from the Haibei Prefecture Finance Bureau for the shantytown renovation project, with the remaining funds sourced from corporate matching and self-raised funds from residents[198]. Accounting Policies and Financial Reporting - The company’s financial statements comply with the accounting standards set by the Ministry of Finance, ensuring a true and complete reflection of its financial status and operating results[99]. - The company recognizes financial assets and liabilities upon entering into a financial instrument contract, with specific conditions for derecognition[108]. - The company assesses the carrying value of financial assets for impairment at the balance sheet date, recognizing impairment losses when objective evidence indicates[112]. - The company uses an aging analysis method to determine the provision for bad debts, with specific percentages for different aging categories[115]. - Revenue from sales is recognized when the risks and rewards of ownership are transferred to the buyer, and costs can be reliably measured[139]. - Government grants are recognized when conditions are met, with monetary grants measured at received or receivable amounts[141]. - Deferred tax assets and liabilities are recognized based on temporary differences between book values and tax bases, using the balance sheet liability method[142].

Financial Performance - In 2013, the company achieved a total revenue of CNY 569,942,256.88, representing an increase of 11.16% compared to CNY 512,741,283.13 in 2012[22] - The net profit attributable to shareholders in 2013 was CNY 22,688,027.87, a significant increase of 95.99% from CNY 11,575,998.23 in 2012[22] - The net profit after deducting non-recurring gains and losses was CNY 19,623,432.62, up 97.13% from CNY 9,954,640.52 in the previous year[22] - The company's operating profit for 2013 was RMB 32,364,063.19, reflecting a year-on-year increase of 30.52%[27] - The basic earnings per share increased to CNY 0.08 in 2013, doubling from CNY 0.04 in 2012[23] - The weighted average return on equity rose to 5.13% in 2013, an increase of 2.30 percentage points from 2.83% in 2012[23] - The company reported a net profit of CNY 24,528,146.17, compared to a profit of CNY 1,840,118.30 in the previous year, indicating a significant improvement[125] - The net profit for the year was ¥39,742,699.32, a decrease of 16.58% compared to the previous year, attributed to increased mining costs and asset impairment provisions[44] Cash Flow and Assets - The net cash flow from operating activities turned negative at CNY -1,391,176.21, a decline of 102.16% compared to CNY 64,328,036.51 in 2012[22] - The company’s operating cash flow decreased by 102.16%, primarily due to increased cash payments for goods and services[34] - The company's total assets decreased by 7.23% to CNY 1,224,229,804.80 at the end of 2013, down from CNY 1,319,698,406.53 at the end of 2012[22] - Cash and cash equivalents decreased from CNY 165,173,903.29 to CNY 128,478,768.16, a reduction of approximately 22.2%[124] - Accounts receivable rose significantly from CNY 10,345,578.24 to CNY 26,606,524.58, an increase of about 157.5%[124] - The company’s total shares remained at 273,404,541, with no changes in restricted shares during the reporting period[75] Investments and Projects - The company completed project investments of RMB 59.66 million, achieving 105% of the planned investment[36] - The company plans to produce and sell 2.2 million tons of raw coal in 2014, with an investment target of ¥53.2 million[51] - The company received CNY 146.60 million from the sale of its chemical division's strontium carbonate business to its controlling shareholder, Qingtou Group[62] - The company provided a loan of RMB 150 million to its wholly-owned subsidiary, Xihai Coal, with a term of five years and an interest rate of 7.90% to support its production and project development[72] Market and Industry Conditions - The coal market is expected to face challenges due to overcapacity and increased competition from imported coal, impacting future pricing and demand[49] - The company's main business is coal production and sales, which is significantly affected by economic cycles and may lead to fluctuations in product prices and profit levels if the national economic growth slows down[53] - The production costs are on the rise due to increased mining scale and depth, rising consumer price index, and higher procurement prices for bulk materials, directly impacting the company's profitability[54] Governance and Management - The company has established a comprehensive internal control system and has revised its information disclosure management system to enhance governance[105] - The company ensures compliance with laws and regulations, maintaining the rights of shareholders and stakeholders through effective governance practices[103] - The company has maintained a stable management structure since 2012, with all current members having been in their positions for over a year[89] - The company’s board of directors includes independent directors who have held various positions in other companies, ensuring diverse expertise[88][89] - The company has not reported any changes in the number of shares held by its directors and senior management, indicating stability in ownership[87] Financial Reporting and Compliance - The company’s financial statements are prepared in accordance with the 2006 Accounting Standards for Business Enterprises, ensuring compliance and accuracy in financial reporting[158] - The company received a standard unqualified audit opinion from Beijing Yongtuo Accounting Firm regarding its financial statements for the year ended December 31, 2013[120] - The financial statements accurately reflect the company's financial position and operating results as of December 31, 2013, in accordance with accounting standards[121] - The company has not experienced any significant errors in its annual report disclosures during the reporting period[116] Employee and Remuneration - Total remuneration for senior management during the reporting period amounted to 2,899,200 CNY (28.99 million) before tax[87] - The average remuneration for the directors and senior management is approximately 289,920 CNY (2.9 million) per person[87] - The total number of employees in the parent company is 51, while the main subsidiaries have 626 employees, resulting in a total of 677 employees[96] Related Party Transactions - The company sold raw coal to its affiliate, Qingtou Aluminum, for a total of approximately CNY 298.23 million, which accounted for 52.39% of the total sales[61] - The sales to Qingtou Aluminum represent 50-70% of the company's total coal sales over the past three years, indicating a stable supply relationship[63] - There were no related party transactions that harmed the interests of the company and its shareholders during the reporting period[111]

Financial Performance - Net profit attributable to shareholders was CNY 2,642,287.25, representing a decline of 42.18% year-on-year[10]. - Operating revenue for the first quarter was CNY 133,743,733.38, down 7.88% from the same period last year[10]. - The net cash flow from operating activities was negative CNY 68,809,470.71, a decrease of 17.70% compared to the previous year[10]. - The weighted average return on equity decreased by 0.47 percentage points to 0.57%[10]. - Total operating revenue for Q1 2014 was CNY 133,743,733.38, a decrease of 7.9% compared to CNY 145,182,524.34 in the same period last year[32]. - Net profit for Q1 2014 was CNY 2,642,287.25, a decline of 42.3% compared to CNY 4,569,521.30 in Q1 2013[32]. - Basic and diluted earnings per share for Q1 2014 were CNY 0.0097, down from CNY 0.0167 in the previous year[33]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,220,077,960.90, a decrease of 0.34% compared to the end of the previous year[10]. - The company’s non-current assets totaled CNY 786,420,524.76, slightly down from CNY 787,336,736.77 at the beginning of the year[26]. - Total assets as of March 31, 2014, were CNY 660,588,515.57, a slight decrease from CNY 662,819,624.75 at the beginning of the year[30]. - Total liabilities as of March 31, 2014, were CNY 217,363,200.77, compared to CNY 216,122,937.65 at the start of the year[30]. - Shareholders' equity totaled CNY 443,225,314.80 as of March 31, 2014, down from CNY 446,696,687.10 at the beginning of the year[30]. Cash Flow - Cash and cash equivalents decreased by 71.18% compared to the beginning of the period, primarily due to reduced cash received from sales[14]. - The company reported a significant increase in interest receivables, rising to CNY 6,912,500.00 from CNY 3,950,000.00 year-on-year[29]. - The net cash flow from operating activities for Q1 2014 was -68,809,470.71 RMB, compared to -58,460,405.28 RMB in the previous period, indicating a decline of approximately 17.5%[35]. - Total cash inflow from operating activities was 52,763,324.54 RMB, down from 171,589,383.96 RMB, representing a decrease of about 69.1%[35]. - Cash outflow from operating activities totaled 121,572,795.25 RMB, a reduction from 230,049,789.24 RMB, reflecting a decrease of approximately 47.2%[35]. - The net increase in cash and cash equivalents for the period was -91,450,100.99 RMB, compared to -77,128,319.78 RMB in the previous period, indicating a decline of approximately 18.5%[36]. - The ending balance of cash and cash equivalents was 37,028,667.17 RMB, down from 88,045,583.51 RMB, representing a decrease of about 58.1%[36]. Shareholder Information - The number of shareholders at the end of the reporting period was 23,870, with the largest shareholder holding 44.79% of the shares[12]. - The company holds a 21% stake in the newly established Qinghai Energy Company, which will be the sole developer of the Yuka coal mine area[16]. Operational Commitments - The company is committed to avoiding competition with Yuka Coal Power for three years after its full production, with plans to gradually integrate coal production assets[15]. - The company has committed to transferring all rights of Qinghai Energy Company to itself within three years after the company starts full production, provided that the operational conditions improve significantly[16]. - The company is currently in the project construction phase for Qinghai Energy Company, with no significant improvement in production and operational conditions[16]. - The company has a commitment to avoid future competition with Qinghai Energy Company and will prioritize transferring competitive assets at reasonable prices[17]. Changes in Accounts - Cash and cash equivalents decreased from CNY 128,478,768.16 at the beginning of the year to CNY 37,028,667.17[25]. - Accounts receivable increased to CNY 244,340,000.00 from CNY 179,691,520.00, indicating a growth of approximately 36.0%[25]. - Prepayments increased by 46.06% compared to the beginning of the period, attributed to higher prepayments for materials and equipment[14]. - Inventory decreased from CNY 76,545,938.38 to CNY 67,598,895.91, reflecting a reduction of about 11.5%[25]. - The company reported a decrease in short-term borrowings, remaining at CNY 50,000,000.00[26]. Cost Management - Total operating costs for Q1 2014 were CNY 129,325,232.62, down 5.7% from CNY 137,172,198.21 year-on-year[32]. - Cash outflow for purchasing goods and services was 45,881,303.69 RMB, down from 95,660,359.12 RMB, a decrease of approximately 52.0%[35]. - Cash paid to employees was 24,043,131.47 RMB, an increase from 20,526,718.35 RMB, reflecting an increase of about 16.5%[35]. - Cash paid for taxes was 15,911,808.77 RMB, significantly lower than 50,838,123.41 RMB, indicating a decrease of approximately 68.7%[35]. Product Development and Market Strategy - The company has not disclosed any new product developments or market expansion strategies in this report[32].