Financial Performance - The company's operating revenue for the first half of 2021 was CNY 1,211,118,183.40, representing a 66.85% increase compared to CNY 725,894,147.08 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was CNY 78,407,441.87, a decrease of 28.50% from CNY 109,658,050.06 in the previous year[20]. - The net cash flow from operating activities reached CNY 488,572,689.49, a significant improvement from a negative cash flow of CNY -28,655,273.77 in the same period last year, marking a 1,805.00% increase[20]. - The company achieved a total profit of 123.92 million yuan, a year-on-year decrease of 19.01%[43]. - The net profit attributable to shareholders was 78.41 million yuan, down 28.50% year-on-year[43]. - The revenue from the liquid chemical storage segment was 150.56 million yuan, a decrease of 23.26% year-on-year[43]. - The solid storage segment reported revenue of 35.53 million yuan, an increase of 26.82% year-on-year[43]. - The bonded trade segment generated revenue of 993.32 million yuan, a year-on-year increase of 58.76%[44]. - The e-commerce platform, Sujiao Network, achieved revenue of 12.52 million yuan, a growth of 20.26% year-on-year[44]. - The company reported a significant decrease in accounts payable by 58.98% to ¥32,582,864.79, accounting for 0.96% of total assets, primarily due to reduced procurement payments in bonded trade[51]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 3,404,182,173.86, a slight decrease of 0.13% from CNY 3,408,671,669.42 at the end of the previous year[20]. - The net assets attributable to shareholders increased by 2.85% to CNY 2,227,285,011.37 from CNY 2,165,607,241.33 at the end of the previous year[20]. - Cash and cash equivalents increased by 35.48% to ¥1,098,332,447.01, accounting for 32.26% of total assets, primarily due to cash recovery from hedged goods in bonded trade[51]. - Trading financial assets rose by 62.49% to ¥515,600,733.11, representing 15.15% of total assets, mainly from increases in government bond reverse repos and structured deposits[51]. - Total liabilities decreased to ¥858,544,329.30 from ¥925,158,584.36[104]. - Total equity increased to ¥2,545,637,844.56 from ¥2,483,513,085.06[104]. Operational Highlights - The company operates in the transportation, warehousing, and postal industry, specifically focusing on warehousing services for liquid chemicals and bulk dry goods[25][26]. - The company has developed a smart logistics e-commerce platform that integrates online ordering, payment settlement, and self-service pickup, enhancing customer experience and operational efficiency[32][34]. - The company owns 214 storage tanks with a total capacity of 110.79 million cubic meters, establishing itself as a leading player in liquid chemical storage[35]. - The company’s location in the Zhangjiagang Free Trade Zone provides strategic advantages for liquid chemical imports, with a significant customer base of over 10,000 chemical traders[29][37]. - The company has a self-owned wharf with a throughput capacity of 4.5 million tons per year, facilitating efficient logistics operations[38]. - The company’s core business includes providing supply chain financial services and participating in chemical trading, enhancing its market position[26][30]. Risks and Challenges - The company has outlined various risks in its operations, including business management risks and market competition risks, which are detailed in the management discussion section[6]. - The company faces risks related to dependence on the chemical industry, limited dock and land resources, and fluctuations in demand for ethylene glycol, which could impact profitability[60]. - The company has faced market competition risks due to a shift in import volumes to other domestic regions and increased inventory destocking by downstream factories, impacting revenue[61]. - Management risks have increased as the company transitions from traditional warehousing to smart logistics, necessitating a stronger focus on attracting and retaining professional talent[61]. - The company is actively pursuing a transformation towards smart logistics services for bulk commodities, which may involve risks due to the lack of established e-commerce service models in this sector[61]. Legal Matters - Longjiang International is involved in multiple lawsuits, including a contract dispute with Xinxing Jihua International Trade Co., claiming the return of 110,608 tons of ethylene glycol or compensation of 480,528,300 RMB[74]. - Another lawsuit involves Tianjin Lingang International Trade Co., which demands the delivery of 23,500 tons of ethylene glycol or compensation of 100,348,000 RMB[74]. - Longjiang International is also facing a lawsuit from Shandong Highway Hainan Development Co., seeking the return of 15,886.371 tons of ethylene glycol or equivalent compensation of 81,973,674.36 RMB[74]. - The company reported a civil ruling where it was ordered to pay 671,847.4 RMB due to a traffic accident liability case, with a total compensation of 67.18 million RMB paid in March 2020[74]. - Longjiang International has reported ongoing criminal investigations related to the forgery of company seals, with cases currently under police investigation[74]. - The company is involved in a civil lawsuit where the plaintiff demands 526,994,500 RMB for a storage contract dispute, with a request for asset freezing and seizure[76]. - The court has dismissed a lawsuit against Longjiang International regarding a contract fraud case, indicating a favorable outcome for the company[76]. - The company is actively managing its legal risks and has reported on the status of various ongoing lawsuits in its financial disclosures[75]. Governance and Compliance - The company has not disclosed any significant changes in its governance structure or management personnel during the reporting period[67]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[73]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[71]. - The company has not disclosed any major contracts or significant events during the reporting period[84]. - There are no reported violations or penalties against the company or its major stakeholders during the reporting period[81]. Financial Management - The company executed new leasing standards from January 1, 2021, resulting in the recognition of lease liabilities and the reclassification of long-term payables[52]. - The company has committed to resolving competition issues with its subsidiaries, ensuring no conflicts arise in its operations[72]. - The company is actively managing its legal and financial obligations, as evidenced by multiple ongoing lawsuits and claims[78][79][80]. - The company has not reported any major contracts or guarantees that remain unfulfilled during the reporting period[82]. - The company continues to monitor its financial relationships and associated risks with related parties[82].

Financial Performance - The company's operating revenue for 2020 was CNY 2,064,349,366.60, representing a 9.98% increase compared to CNY 1,876,965,973.46 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 212,693,456.75, a 35.05% increase from CNY 157,493,605.92 in 2019[19]. - The net profit after deducting non-recurring gains and losses was CNY 168,787,500.56, up 28.24% from CNY 131,615,789.49 in 2019[19]. - The total assets at the end of 2020 were CNY 3,408,671,669.42, a 20.61% increase from CNY 2,826,156,304.21 at the end of 2019[19]. - The net assets attributable to shareholders increased by 11.01% to CNY 2,165,607,241.33 from CNY 1,950,837,908.26 in 2019[19]. - The basic earnings per share for 2020 was CNY 0.18, an increase of 38.46% compared to CNY 0.13 in 2019[21]. - The weighted average return on equity increased to 10.34% in 2020, up by 1.95 percentage points from 8.39% in 2019[21]. - The company achieved a total profit of 299.11 million yuan, an increase of 34.41% compared to the previous year[46]. - The total profit reached CNY 299,112,487.12, reflecting a growth of 34.41% year-on-year[49]. - The company’s total revenue for the year was 443.05 million yuan, representing a year-on-year growth of 9.77%[47]. Cash Flow and Investments - The cash flow from operating activities showed a negative net amount of CNY -141,641,397.74, a decrease of 164.59% compared to CNY 219,291,348.96 in 2019[19]. - The company’s cash flow from operating activities showed a net cash flow of CNY 8,594,144.63 in the fourth quarter[23]. - The net cash flow from operating activities decreased by CNY 360,932,746.70, a decline of 164.59% compared to the previous year[60]. - The net cash flow from investment activities fell by CNY 272,904,725.62, a decrease of 128.00% year-on-year[61]. - The net cash flow from financing activities increased by CNY 542,035,154.98, reflecting a growth of 153.77% compared to the previous year[61]. - The company raised RMB 397 million from the issuance of bonds, with the funds used in accordance with the prospectus[157]. - Cash inflow from financing activities totaled 992,108,238.29 RMB in 2020, significantly higher than 317,606,463.63 RMB in 2019, marking an increase of approximately 212.5%[199]. - The company reported a cash inflow of 397,000,000.00 RMB from bond issuance in 2020, contributing to the financing activities[200]. Operational Highlights - The company's main business includes integrated logistics services, focusing on liquid chemical storage and solid bulk cargo storage[28]. - The e-commerce subsidiary has seen revenue growth since its establishment in April 2019, contributing to the overall increase in net profit[22]. - The liquid chemical storage segment reported a total profit of 213.63 million yuan, a year-on-year increase of 23.62%[47]. - The solid storage segment achieved a revenue of 62.71 million yuan, with a significant growth of 15.70%[47]. - The bonded trade segment generated revenue of 1,651.26 million yuan, marking an 18.43% increase year-on-year[47]. - The company operates 214 storage tanks with a total capacity of 1,107,900 cubic meters, solidifying its position as a leading player in liquid chemical storage[38]. - The company is focusing on expanding its liquid storage and solid bulk cargo business, with significant growth in methanol business volume and a leading position in the ethylene glycol and diethylene glycol storage sector[79]. Risks and Challenges - The company has outlined various risks in its operations, including business management risks and market competition risks, which are detailed in the report[6]. - The company faces risks related to its dependence on the chemical industry, particularly the demand for ethylene glycol, which is influenced by domestic and global economic conditions[83]. - The petrochemical logistics industry is experiencing increased competition and a trend towards stricter regulatory oversight, particularly concerning hazardous materials storage and transportation[77]. - The company has identified potential risks including management challenges and the need for skilled personnel as it shifts towards smart logistics[84]. Corporate Governance and Management - The company has received a standard unqualified audit report from Tianyuan Certified Public Accountants[4]. - The company held eight board meetings during the reporting period, with seven conducted via communication methods[48]. - The board of directors consists of seven members, including three independent directors, meeting the requirement of having more than one-third independent directors[146]. - The company has established a comprehensive corporate governance structure in compliance with relevant laws and regulations[145]. - The company emphasizes performance-based incentives for its senior management, aligning their interests with shareholder value[136]. - The company has a structured compensation management system for directors and senior management based on performance and responsibilities[136]. Legal Matters - The company is involved in multiple ongoing legal disputes, including a claim for the return of 110,608 tons of ethylene glycol or compensation of 480,528,300 RMB[96]. - The company is currently facing multiple legal proceedings, including a case involving a third party, which is still in the first instance in court[101]. - The company has initiated bankruptcy proceedings against Shanghai Yiqiang Industrial Co., claiming 8,935,964.64 yuan in overdue payments[106]. - The company is involved in ongoing civil litigation related to various financial disputes, including a claim for 28,470,647.03 yuan plus interest[105]. Future Outlook - The company aims to achieve an operating revenue of CNY 2,009.89 million and a net profit attributable to shareholders of CNY 793.13 million for the fiscal year 2021[82]. - The company plans to enhance its operational efficiency through resource integration in the petrochemical logistics sector[67]. - The company plans to integrate warehousing resources along the Yangtze River Delta to extend its logistics chain and improve online and offline integration[81].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) [Statement on Report Authenticity](index=3&type=section&id=1.1) The company's board of directors, supervisory board, and all senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility for its content, which remains unaudited - Company management confirms the truthfulness, accuracy, and completeness of the Q3 2020 report content, assuming legal responsibility[5](index=5&type=chunk) - This quarterly report is unaudited[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of September 30, 2020, the company's total assets increased by 37.41% and net profit attributable to the parent company grew by 6.48%, despite a 19.44% decrease in operating revenue and a 155.68% decline in net cash flow from operating activities, primarily due to subsidiary operations and frozen funds Key Financial Data for the First Three Quarters of 2020 | Metric | As of Period-End / Year-to-Date | As of Prior Year-End / Prior Year-to-Date | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 3,883,356,461.00 | 2,826,156,304.21 | 37.41% | | Net Assets Attributable to Shareholders of the Listed Company (Yuan) | 2,143,931,871.19 | 1,950,837,908.26 | 9.90% | | Operating Revenue (Yuan) | 1,367,660,628.18 | 1,697,626,881.78 | -19.44% | | Net Profit Attributable to Shareholders of the Parent Company (Yuan) | 191,696,493.97 | 180,036,004.49 | 6.48% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Gains and Losses (Yuan) | 151,425,672.49 | 171,676,207.52 | -11.80% | | Net Cash Flow from Operating Activities (Yuan) | -150,235,542.37 | 269,796,154.13 | -155.68% | - Year-to-date non-recurring gains and losses totaled **40.27 million Yuan**, primarily from hedging activities, investment income from securities, and fair value changes[8](index=8&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20Total%20Shareholders,%20Top%20Ten%20Shareholders,%20and%20Top%20Ten%20Circulating%20Shareholders%20as%20of%20the%20Reporting%20Period-End) As of the reporting period-end, the company had **91,642** shareholders, with Zhangjiagang Free Trade Zone Jingang Asset Management Co., Ltd. as the controlling shareholder holding **35.68%** of shares, none of which are pledged or frozen - As of the reporting period-end, the company had **91,642** common shareholders[9](index=9&type=chunk) - The company's controlling shareholder is Zhangjiagang Free Trade Zone Jingang Asset Management Co., Ltd., holding **432,517,788** shares, representing **35.68%** of the total share capital[9](index=9&type=chunk) [Significant Events](index=6&type=section&id=Item%20III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Indicators](index=6&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators) During the reporting period, the company experienced significant changes in financial indicators, with substantial increases in assets and liabilities driven by financing and business expansion, a notable rise in investment income, and a shift to negative operating cash flow offset by increased financing cash flow [Analysis of Balance Sheet Item Changes](index=6&type=section&id=3.1.1%20Balance%20Sheet%20Indicator%20Changes) On the asset side, cash increased by **186.23%** due to bond issuance and collections, and inventory rose by **119.47%** from chemical procurement; on the liability side, short-term borrowings grew by **208.10%** and salaries payable by **328.71%**, with advances from customers reclassified to contract liabilities under new revenue standards Major Balance Sheet Item Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash | 186.23% | Non-public issuance of 400 million Yuan corporate bonds and customer collections | | Accounts Receivable | 129.70% | Increase in accounts receivable from bonded trade self-operated business | | Inventory | 119.47% | Increase in procurement of chemical spot goods for bonded trade | | Short-term Borrowings | 208.10% | Increase in bonded trade working capital loans and bill discounting loans | | Salaries and Wages Payable | 328.71% | Accrual of performance-based compensation by Changjiang International, Bonded Trade, and other companies | | Advances from Customers | -100.00% | Reclassified to contract liabilities due to adoption of new revenue standard | [Analysis of Income Statement Item Changes](index=8&type=section&id=3.1.2%20Income%20Statement%20Indicator%20Changes) Investment income increased by **108.76%** due to hedging and subsidiary securities investments, while **17.02 million Yuan** in new R&D expenses were incurred for information systems, and both credit and asset impairment losses significantly decreased due to reversals of prior period provisions - Investment income increased by **108.76%** to **50.585 million Yuan**, primarily due to hedging gains from bonded trade and increased income from subsidiary securities investments[15](index=15&type=chunk) - New R&D expenses of **17.021 million Yuan** were incurred this period, mainly for information system development by Changjiang International[15](index=15&type=chunk) - Credit impairment losses decreased by **112.55%** year-over-year, primarily due to the reversal of previously accrued bad debt provisions and inventory impairment provisions in the prior year[15](index=15&type=chunk) [Analysis of Cash Flow Statement Item Changes](index=8&type=section&id=3.1.3%20Cash%20Flow%20Indicator%20Changes) Net cash flow experienced significant fluctuations, with operating cash flow at **-150 million Yuan**, a **155.68%** year-over-year decrease due to subsidiary financing lease activities and frozen funds, investment cash flow at **-57 million Yuan**, a **138.23%** decrease, and financing cash flow at **616 million Yuan**, a **276.73%** increase, driven by a **400 million Yuan** bond issuance and new borrowings - Net cash flow from operating activities was **-150 million Yuan**, a **155.68%** year-over-year decrease, primarily impacted by subsidiary financing lease activities (**-139 million Yuan**) and frozen funds due to litigation at Changjiang International (**-315 million Yuan**)[17](index=17&type=chunk) - Net cash flow from investing activities was **-57 million Yuan**, a **138.23%** year-over-year decrease, mainly due to increased net outflows from pledged structured deposits and subsidiary cash management activities[17](index=17&type=chunk)[18](index=18&type=chunk) - Net cash flow from financing activities was **616 million Yuan**, a **276.73%** year-over-year increase, primarily driven by the non-public issuance of **400 million Yuan** in corporate bonds, absorption of minority shareholder investments, and new bank borrowings[18](index=18&type=chunk) [Appendix](index=10&type=section&id=Item%20IV.%20Appendix) [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) This section includes the company's consolidated and parent company balance sheets as of September 30, 2020, and consolidated and parent company income statements and cash flow statements for the first three quarters of 2020 [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's consolidated total assets were **3.883 billion Yuan**, up **37.4%** from the beginning of the year; total liabilities were **1.426 billion Yuan**, up **144.1%**; and equity attributable to parent company owners was **2.144 billion Yuan**, up **9.9%** Key Items from Consolidated Balance Sheet (September 30, 2020) | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,883,356,461.00 | 2,826,156,304.21 | | Total Liabilities | 1,425,514,896.24 | 584,194,058.67 | | Total Equity Attributable to Parent Company Owners | 2,143,931,871.19 | 1,950,837,908.26 | | Total Liabilities and Equity | 3,883,356,461.00 | 2,826,156,304.21 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2020, the company achieved operating revenue of **1.368 billion Yuan**, a **19.44%** year-over-year decrease, and net profit attributable to parent company shareholders of **192 million Yuan**, a **6.48%** year-over-year increase, with basic earnings per share at **0.1581 Yuan**, up **6.46%** Key Items from Consolidated Income Statement (First Three Quarters of 2020) | Item | First Three Quarters of 2020 (Yuan) | First Three Quarters of 2019 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,367,660,628.18 | 1,697,626,881.78 | | Operating Profit | 262,823,731.54 | 242,313,462.21 | | Total Profit | 260,575,311.90 | 238,601,093.07 | | Net Profit Attributable to Parent Company Shareholders | 191,696,493.97 | 180,036,004.49 | | Basic Earnings Per Share (Yuan/share) | 0.1581 | 0.1485 | [Consolidated Cash Flow Statement](index=20&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the first three quarters of 2020, net cash flow from operating activities was **-150 million Yuan** (vs. **270 million Yuan** in prior year), from investing activities was **-57 million Yuan** (vs. **150 million Yuan**), and from financing activities was **616 million Yuan** (vs. **-348 million Yuan**), with cash and cash equivalents at period-end totaling **741 million Yuan** Consolidated Cash Flow Statement Summary (First Three Quarters of 2020) | Item | First Three Quarters of 2020 (Yuan) | First Three Quarters of 2019 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -150,235,542.37 | 269,796,154.13 | | Net Cash Flow from Investing Activities | -57,226,488.39 | 149,677,120.32 | | Net Cash Flow from Financing Activities | 615,568,117.89 | -348,319,282.12 | | Cash and Cash Equivalents at Period-End | 740,710,016.15 | 325,324,442.34 | [Explanation of Adjustments for First-Time Adoption of New Accounting Standards](index=23&type=section&id=4.2%20Adjustments%20to%20Beginning-of-Year%20Financial%20Statements%20Upon%20First-Time%20Adoption%20of%20New%20Revenue%20and%20Lease%20Standards%20from%202020) Effective January 1, 2020, the company adopted the Ministry of Finance's revised Accounting Standard No. 14 - Revenue, adjusting beginning-of-year financial statements by reclassifying 'Advances from Customers' to 'Contract Liabilities' and 'Other Current Liabilities,' with no impact on comparable period information - The company adopted the new revenue recognition standard (Cai Kuai [2017] No. 22) effective January 1, 2020, and retrospectively adjusted its beginning-of-year financial statements[45](index=45&type=chunk) Impact of New Revenue Standard Adoption on Beginning-of-Year Consolidated Balance Sheet | Item | Before Adjustment (Yuan) | After Adjustment (Yuan) | Adjustment Amount (Yuan) | | :--- | :--- | :--- | :--- | | Advances from Customers | 34,939,297.54 | 0.00 | -34,939,297.54 | | Contract Liabilities | 0.00 | 32,942,514.44 | 32,942,514.44 | | Other Current Liabilities | 0.00 | 1,996,783.10 | 1,996,783.10 |

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 725,894,147.08, a decrease of 21.12% compared to CNY 920,275,100.86 in the same period last year[19]. - Net profit attributable to shareholders for the first half of 2020 was CNY 109,658,050.06, down 4.00% from CNY 114,227,707.77 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 79,731,756.12, a decline of 24.23% compared to CNY 105,226,835.75 in the same period last year[20]. - The company achieved a total profit of 153.01 million yuan, a year-on-year increase of 1.46%[42]. - The company’s revenue from bonded trade reached 625.67 million yuan, a decrease of 6.82%, but the total profit increased by 68.25% to 23.47 million yuan[43]. - The total comprehensive income for the first half of 2020 was CNY 106,298,592.14, a significant increase from CNY 17,678,505.96 in the same period of 2019, representing a growth of approximately 501%[119]. - The operating profit for the first half of 2020 reached CNY 106,298,667.14, compared to CNY 17,693,930.85 in the first half of 2019, indicating a substantial increase[119]. Cash Flow and Liquidity - The net cash flow from operating activities improved to -CNY 28,655,273.77, a 32.71% increase from -CNY 42,584,690.64 in the previous year[20]. - Cash and cash equivalents at the end of the period reached ¥1,099,795,724.46, accounting for 28.32% of total assets, a 135.98% increase compared to ¥466,052,749.75 from the same period last year[50]. - The company’s cash flow from financing activities increased significantly by 396.02%, totaling 628.44 million yuan[48]. - The company raised 397,000,000.00 RMB through bond issuance during the financing activities, which contributed significantly to cash inflows[126]. - The total cash flow from financing activities was 744,959,903.47 RMB, significantly higher than 145,785,116.06 RMB in the previous year, demonstrating enhanced capital raising efforts[123]. Assets and Liabilities - Total assets increased by 37.43% to CNY 3,883,971,618.91 from CNY 2,826,156,304.21 at the end of the previous year[20]. - The company's total liabilities grew from CNY 584.19 million at the end of 2019 to CNY 1,512.98 million as of June 30, 2020, indicating an increase of around 158.3%[108]. - The company's equity attributable to shareholders increased from CNY 1,950.84 million at the end of 2019 to CNY 2,061.21 million as of June 30, 2020, showing a growth of about 5.7%[108]. - The company's asset-liability ratio increased by 18.28 percentage points to 38.95% due to the non-public issuance of corporate bonds[101]. - The total amount of guarantees provided by the company, including those to subsidiaries, is 39.15088 million RMB, which accounts for 18.99% of the company's net assets[79]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 93,061[86]. - The largest shareholder, Zhangjiagang Free Trade Zone Jinguang Asset Management Co., Ltd., holds 432,517,788 shares, accounting for 35.68% of total shares[87]. - The company has no changes in controlling shareholders or actual controllers during the reporting period[89]. Legal and Regulatory Matters - Jiang International is involved in a lawsuit regarding a port operation contract dispute, with the plaintiff demanding the return of 110,608 tons of ethylene glycol or compensation of 480,528,300 RMB[66]. - The company has initiated criminal investigations related to the forgery of its company seal, which is currently under police investigation[66]. - Jiang International has reported a total of 81,973,674.36 RMB in claims related to various lawsuits during the reporting period[66]. Operational Highlights - The company has a total storage capacity of 1.1079 million cubic meters, with 214 self-owned tanks, making it a leading player in liquid chemical storage in China[34]. - The company’s ethylene glycol import volume in the first half of 2020 was approximately 32% of the national total, while diethylene glycol accounted for about 34%[34]. - The company is actively exploring new business management models for solid bulk cargo storage, leveraging existing advantages to strengthen its market position[35]. Risks and Challenges - The company faces various risks including operational management risks, market competition risks, and policy risks, as detailed in the report[6]. - The company is highly dependent on the chemical industry, which directly impacts its storage and chemical product business, affecting profitability[57]. - The company faces risks related to limited dock and land resources, which are critical for its core storage business[57]. Accounting Policies and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete view of its financial status as of June 30, 2020[146]. - The company uses RMB as its functional currency for accounting purposes[149]. - The company has established specific accounting policies and estimates based on its operational characteristics, particularly regarding revenue recognition[145].

Financial Performance - The company's operating revenue for 2019 was approximately CNY 1.88 billion, representing a year-over-year increase of 37.58% compared to CNY 1.36 billion in 2018[20]. - The net profit attributable to shareholders for 2019 was CNY 157.49 million, a significant increase of 343.58% from CNY 35.51 million in 2018[22]. - The basic earnings per share for 2019 was CNY 0.13, up 333.33% from CNY 0.03 in 2018[21]. - The weighted average return on equity increased to 8.39% in 2019, up 6.42 percentage points from 1.97% in 2018[21]. - The net cash flow from operating activities for 2019 was CNY 219.29 million, a substantial increase from a negative cash flow of CNY 14.60 million in 2018[20]. - The total operating revenue for the reporting period was approximately 1.88 billion yuan, a 37.58% increase from the previous year[54]. - The liquid chemical storage segment reported a revenue of 403.62 million yuan, a year-on-year increase of 66.32%[51]. - The solid storage segment generated a revenue of 54.20 million yuan, growing by 8.73% compared to the previous year[52]. - The company achieved a total profit of 222.54 million yuan, an increase of 258.46% compared to the same period last year[51]. - The revenue from bonded trade amounted to 1.39 billion yuan, reflecting a year-on-year growth of 32.85%[52]. Assets and Liabilities - The total assets decreased by 9.69% to CNY 2.83 billion at the end of 2019, down from CNY 3.13 billion at the end of 2018[20]. - Total current assets decreased from ¥1,365,650,980.86 in 2018 to ¥1,202,194,706.49 in 2019, a decline of approximately 12%[174]. - Total liabilities decreased from ¥1,038,384,402.88 in 2018 to ¥584,194,058.67 in 2019, a reduction of about 44%[175]. - The company's total assets amounted to ¥2,124,657,764.20, slightly down from ¥2,135,366,705.16 in the previous year[180]. - The total equity of the company was ¥1,739,557,585.26, down from ¥1,781,391,939.78 in 2018[180]. - The company's long-term investments decreased slightly from ¥290,661,176.02 in 2018 to ¥270,004,173.64 in 2019, a decline of about 7%[174]. Cash Flow - The net cash flow from operating activities was 219,291,348.96 RMB, a significant improvement from a negative cash flow of 14,602,593.30 RMB in the previous year[189]. - Cash inflow from investment activities reached 264,824,057.20 RMB, up from 115,963,025.08 RMB in 2018, representing an increase of about 128.5%[189]. - The net cash flow from investment activities was 213,206,636.38 RMB, a recovery from a negative cash flow of 55,412,589.82 RMB in the previous year[189]. - Cash inflow from other operating activities was 866,046,530.18 RMB, up from 609,570,485.77 RMB in the previous year, indicating a growth of about 42.1%[191]. Corporate Governance - The company’s board includes individuals with extensive experience in finance and management, contributing to strategic decision-making[139]. - The company has a clear policy for evaluating and compensating its senior management based on annual performance targets[140]. - The company has maintained a consistent leadership structure with minimal changes in key positions during the reporting period[141]. - The company has established a comprehensive governance structure in compliance with relevant laws and regulations, ensuring clear responsibilities and independent operations of the board and management[147]. Legal and Compliance Issues - The company faced significant litigation, including a claim for RMB 480,528,300 related to a port operation contract dispute[106]. - The company has been involved in multiple lawsuits, including a claim for RMB 100,348,000 for the delivery of 23,500 tons of ethylene glycol[106]. - The company is currently under investigation for a fraud case involving the freezing and seizure of its assets[109]. - The company has been proactive in addressing legal issues, including reporting fraud cases to law enforcement[109]. Strategic Initiatives - The company aims to transition from traditional warehousing to smart logistics, leveraging digital solutions to innovate in trading, circulation, and financing[41]. - The company has signed a strategic cooperation agreement with JD Digital Science and Technology, marking a significant step in its digital logistics transformation[84]. - The company plans to integrate resources in the petrochemical logistics industry, focusing on port-centric transportation systems[69]. - The company is focusing on the development of a modern hazardous materials logistics service platform to address challenges in the industry[82]. Risk Management - The company has outlined various risks in its operations, including business management risks, market competition risks, and policy risks[8]. - The company faces risks related to its dependence on the chemical industry, which directly impacts its storage and chemical product businesses[86]. - The company is responding to stricter regulatory trends in the petrochemical logistics industry by enhancing its safety management systems[79]. - The company is actively pursuing digital solutions in trading, circulation, and financing of bulk commodities to innovate its supply chain[84].

2016 年年度报告 公司代码：600794 公司简称：保税科技 张家港保税科技股份有限公司 2016 年年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 未出席董事情况 | 未出席董事职务 | 未出席董事姓名 | 未出席董事的原因说明 | 被委托人姓名 | | --- | --- | --- | --- | | 独立董事 | 谢荣兴 | 出差 | 于北方 | 三、 北京天圆全会计师事务所（特殊普通合伙）为本公司出具了标准无保留意见的审计报告。 四、 公司负责人唐勇、主管会计工作负责人蓝建秋 及会计机构负责人（会计主管人员） 张惠忠声明：保证年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 拟以公司现有总股本1,212,152,157股为基数，每10股派发现金股利0.10元（含税） 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述因存在不确定性，不构成公司对投资者 的实质承诺，敬请投资 ...

Financial Performance - The company achieved total operating revenue of CNY 758.28 million in 2014, representing a 93.09% increase compared to the previous year[24]. - The net profit attributable to shareholders decreased by 30.65% to CNY 120.00 million in 2014[24]. - The cash flow from operating activities showed a negative net amount of CNY -31.47 million, worsening by 19.61% from the previous year[24]. - The total assets of the company increased by 11.34% to CNY 3.11 billion at the end of 2014[24]. - The basic earnings per share decreased by 33.33% to CNY 0.24 in 2014[25]. - The weighted average return on equity dropped by 8.67 percentage points to 10.00% in 2014[25]. - The company reported a total profit of RMB -1,706.86 million during the reporting period[34]. - The company’s operating income from self-operated chemical trade reached RMB 31,424.60 million, with a total profit of RMB -2,201.15 million[35]. - The total profit for the year was 18,172.14 million, which decreased by 32.93% compared to the previous year's profit of 27,094.02 million[52]. - The net profit for 2014 was 12,168.12 million, down 36.29% from the previous year's net profit of 19,098.73 million[52]. - The net profit attributable to the parent company's shareholders was 12,000.42 million, a decrease of 36.45% from 18,884.66 million in the previous year[52]. Dividends and Capital Reserves - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 54,162,461.7 yuan, based on a total share capital of 541,624,617 shares as of December 31, 2014[2]. - The company will also increase capital reserves by issuing 12 additional shares for every 10 shares held by shareholders[2]. - In 2014, the company distributed cash dividends of 1.10 RMB per 10 shares, totaling 52,178,707.90 RMB, based on a total share capital of 474,351,890 shares as of December 31, 2013[90]. Business Transformation and Strategy - The company has undergone a significant business transformation from paper production to bonded warehousing and logistics services since 2007[18]. - The current business scope includes investment in port terminals, bonded logistics projects, and the application and development of biotechnology[19]. - The company emphasizes the importance of risk awareness regarding future plans and development strategies[3]. - The company plans to continue expanding its bonded trade operations and enhance its self-operated business model in response to market conditions[54]. - The company aims to solidify its core business in chemical warehousing and logistics, enhancing service quality and optimizing storage layouts[79]. - The company is transitioning to a proactive, integrated logistics service model, enhancing its service chain in the chemical logistics industry[80]. Audit and Compliance - The company has received a standard unqualified audit report from Beijing Tianyuan Quan Accounting Firm[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[4]. - The company has not violated any decision-making procedures regarding external guarantees[4]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission[115]. - The company has successfully maintained compliance with regulatory requirements and has not faced any scrutiny from regulatory bodies[115]. Financial Position and Liabilities - Cash and cash equivalents at the end of the period amounted to approximately ¥934.81 million, accounting for 30.01% of total assets, a 49.40% increase from the previous period[60]. - The total liabilities decreased by 45.80% to approximately ¥75.50 million, mainly due to the repayment of import financing loans[61]. - The company reported a significant increase in inventory, which rose by 1,508.80% to approximately ¥47.95 million, attributed to the procurement of chemicals[61]. - The company’s long-term borrowings amounted to ¥134,751,713.60, reflecting a 37.50% increase from the previous period[62]. - The company’s estimated liabilities reached ¥2,500,487.00, marking a 100% increase due to anticipated losses[62]. Shareholder Information - The total number of shareholders as of the end of the reporting period was 42,824, a decrease from 43,115 prior to the report[133]. - The top shareholder, Zhangjiagang Free Trade Zone Jinguang Asset Management Co., held 182,504,877 shares, representing 33.70% of total shares[136]. - The company’s top ten shareholders included various funds and individuals, with significant holdings in the company[136]. - The controlling shareholder, Zhangjiagang Bonded Zone Jinkang Asset Management Co., Ltd., holds 128,341,240 shares of common stock, representing a significant portion of the company's equity[139]. Risk Management and Challenges - The company faced significant losses in its bonded trade business due to a sharp decline in the chemical market caused by falling crude oil prices[33]. - The company is facing risks from intensified market competition, particularly from international logistics giants establishing large-scale storage facilities along the Yangtze River[84]. - The company is at risk from potential technological substitution, as domestic firms are developing coal-based ethylene glycol production, which could reduce reliance on imports[85]. - The management team remains optimistic about achieving long-term growth targets despite market challenges[154]. Governance and Management - The company has a governance structure that complies with the requirements of the Corporate Governance Code, ensuring equal rights for all shareholders[168]. - The board of directors consists of nine members, including three independent directors, representing one-third of the total[169]. - The company has established a performance assessment system for determining the remuneration of directors and senior management[158]. - The total remuneration for all directors, supervisors, and senior management was 4.6699 million yuan[158]. - The company has implemented a strict performance evaluation system for its remuneration policy[163]. Future Outlook - The company plans to achieve a revenue of RMB 911.12 million and a net profit of RMB 141.66 million for the fiscal year 2015[83]. - Future guidance suggests a projected revenue growth rate of approximately 15% for the next fiscal year[154]. - The company plans to optimize its funding usage and control expenses to support sustainable growth and meet funding needs for ongoing projects[83]. - The management team highlighted a focus on expanding market presence and enhancing product offerings in the upcoming fiscal year[154].