Financial Performance - The company's operating revenue for 2019 was approximately ¥1.23 billion, a decrease of 14.21% compared to ¥1.43 billion in 2018[21]. - The net profit attributable to shareholders for 2019 was a loss of approximately ¥269.43 million, compared to a profit of ¥2.06 million in 2018, marking a significant decline[21]. - The basic earnings per share for 2019 was -¥0.265, compared to ¥0.002 in 2018, indicating a substantial decline[23]. - In 2019, the company reported total operating income of CNY 1,229,601,164.26, with a significant decline in net profit attributable to shareholders, totaling -CNY 269,425,882.31, representing a decrease compared to the previous year[24]. - The company reported a net loss of approximately 432.8 million yuan for the year 2019, compared to a profit of 2.06 million yuan in 2018[97]. - The net loss attributable to shareholders was CNY -269,425,782.31, compared to a profit of CNY 2,056,765.46 in the previous year[189]. - The company's retained earnings showed a negative balance of CNY -979,670,879.62 in 2019 compared to CNY -710,245,097.31 in 2018, indicating a worsening financial position[181]. Assets and Liabilities - The total assets at the end of 2019 were approximately ¥3.15 billion, down 6.99% from ¥3.39 billion at the end of 2018[22]. - The net asset attributable to shareholders decreased to approximately ¥1.85 billion, a reduction of 12.68% from ¥2.12 billion in 2018[22]. - Total assets decreased from CNY 3,392,136,458.76 in 2018 to CNY 3,154,863,731.74 in 2019, a decline of approximately 7%[182]. - Total liabilities increased from CNY 634,927,637.48 in 2018 to CNY 734,782,712.13 in 2019, an increase of about 16%[181]. - The company's total equity decreased from CNY 2,757,208,821.28 in 2018 to CNY 2,420,081,019.61 in 2019, a decline of approximately 12%[181]. Cash Flow - The company reported a net cash flow from operating activities of approximately ¥7.22 million, a decrease of 98.05% from ¥370.23 million in 2018[22]. - The cash flow from operating activities for the year was CNY 95,928,728.40, with a notable negative cash flow of -CNY 298,553,524.22 in the fourth quarter[25]. - The company's cash flow from operating activities decreased significantly by 98.05%, amounting to CNY 7.22 million[40]. - The total cash outflow from operating activities reached 22,927,949.31 in 2019, significantly higher than 7,694,440.32 in 2018, marking an increase of 197.56%[197]. - The cash inflow from operating activities was only 2,983.50 in 2019, a drastic drop from 6,253,970.20 in 2018[197]. Production and Market Conditions - The company produced 22,000 tons of ethylene glycol and 8,000 tons of oxalic acid, but did not meet its production targets due to system stability issues, resulting in a substantial production gap[28][29]. - The company faced challenges in the ethylene glycol market, with prices remaining low and production capacity increasing, leading to a supply pressure that affected profitability[31][32]. - In 2019, the domestic ethylene glycol production capacity increased by 231,000 tons, with a total capacity of approximately 13.07 million tons, indicating a trend of overcapacity in the market[32][33]. - The average selling price of ethylene glycol dropped by approximately 33.7% compared to the previous year, leading to operational losses[36]. - The company's main product, ethylene glycol, saw a revenue decline of 28.64% year-on-year, with a gross margin decrease of 17.1%[42]. Investments and R&D - The company invested a total of ¥1.9 billion in joint ventures for projects related to synthetic gas and fuel ethanol, which faced operational delays[4]. - The company's research and development for the PGA project has made some progress, but large-scale industrial production is still a distance away[36]. - Research and development expenses totaled 4.88 million, representing 3.97% of total revenue[52]. - The company reported a significant increase in research and development expenses, totaling CNY 48,759,412.56, up from CNY 40,177,963.88 in 2018[188]. Governance and Compliance - The company has complied with the requirements of the Company Law and the Securities Law, ensuring a sound corporate governance structure[152]. - The internal control audit for the 2019 financial report was conducted by Zhongxinghua Accounting Firm, which issued an unqualified opinion with emphasis[160]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[106]. - The company has not reported any significant accounting errors that would require correction during the reporting period[104]. Environmental and Social Responsibility - The company has not experienced any environmental pollution incidents or violations during the reporting period[121]. - The desulfurization project has achieved a removal rate of over 95% for sulfur dioxide, with a total investment of 23 million yuan[118]. - The wastewater treatment project is operating well, with a total investment of 22.4 million yuan, meeting the required discharge standards[118]. - Environmental investment amounted to 35.64 million RMB, representing 2.899% of operating revenue[82]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 44,441, an increase from 43,902 at the end of the previous month[125]. - Jiangsu Danhua Group Co., Ltd. holds 180,050,050 shares, accounting for 17.71% of total shares, with 44,000,000 shares pledged[128]. - The top five customers accounted for 61.02% of total sales, with no sales to related parties[48].

Financial Performance - Operating revenue for the first nine months decreased by 33.63% to CNY 670,884,346.59 compared to the same period last year[6] - Net profit attributable to shareholders was a loss of CNY 224,715,770.55, a decrease of 7,822.63% compared to the same period last year[6] - Basic and diluted earnings per share were both CNY -0.2211, a decrease of 7,724.14% compared to the same period last year[7] - Total revenue for Q3 2019 was ¥153,603,689.71, a decrease from ¥400,388,303.43 in Q3 2018, representing a decline of approximately 61.7%[28] - Net loss for the first three quarters of 2019 was ¥620,313,869.12, slightly improved from a loss of ¥610,477,423.46 in the same period of 2018[27] - The net profit for Q3 2019 was -145,888,194.37 RMB, compared to a profit of 54,333,172.67 RMB in the same quarter of the previous year, indicating a significant decline[29] - The total profit for the period was -145,295,714.05 RMB, down from 53,517,671.20 RMB year-over-year[29] - The company's operating profit was -140,050,639.79 RMB, a decrease from 45,809,859.29 RMB in Q3 2018[29] - The total profit for the first three quarters of 2019 was -9,836,445.66 RMB, compared to -8,907,269.65 RMB in the same period of 2018[34] Assets and Liabilities - Total assets increased by 3.23% to CNY 3,501,663,624.75 compared to the end of the previous year[6] - Net assets attributable to shareholders decreased by 10.58% to CNY 1,899,645,848.89 compared to the end of the previous year[6] - Total liabilities reached ¥192,843,808.68, up from ¥182,951,772.13 at the end of 2018, reflecting an increase of approximately 5.0%[26] - The total equity attributable to shareholders was ¥1,899,645,848.89, down from ¥2,124,361,619.44 in the previous year, reflecting a decrease of approximately 10.6%[26] - The company reported a total of ¥1,032,186,823.57 in liabilities, which is an increase from ¥634,927,637.48 in the previous year[26] Cash Flow - Cash flow from operating activities decreased by 3.32% to CNY 305,772,152.78 compared to the same period last year[6] - The net cash flow from investment activities decreased by 285.23% to -¥421,502,548.70, indicating increased investments during the period[14] - The net cash flow from investment activities was -421,502,548.70 RMB, compared to -227,561,706.00 RMB in the previous period, indicating a significant increase in cash outflow[38] - The net cash flow from financing activities was 77,620,427.97 RMB, a recovery from -139,295,287.52 RMB in the previous period, showing improved financing conditions[38] - Operating activities generated a net cash flow of -8,016,396.03 RMB, slightly worse than -7,927,998.14 RMB in the previous period, reflecting ongoing operational challenges[40] Inventory and Receivables - Accounts receivable decreased by 38.78% to CNY 42,448,956.69 compared to the previous period[10] - Inventory increased by 157.39% to CNY 404,423,216.36 compared to the previous period[10] - Inventory increased significantly to ¥404,423,216.36 from ¥157,127,002.89, indicating a rise in stock levels[19] Shareholder Information - The number of shareholders reached 46,682 at the end of the reporting period[8] Expenses - Sales expenses increased by 35.22% to ¥64,899,342.64, primarily due to increased transportation costs[14] - Research and development expenses for the first three quarters of 2019 were ¥30,875,822.02, compared to ¥26,399,672.15 in the same period of 2018, showing an increase of about 16.5%[28] - The management expenses for Q3 2019 were 3,124,995.04 RMB, compared to 2,163,614.50 RMB in Q3 2018, reflecting an increase of approximately 44.5%[33] - The financial expenses for Q3 2019 were 1,603,332.66 RMB, slightly up from 1,601,149.55 RMB in Q3 2018[33] Production and Operations - The subsidiary Tongliao Jinmei produced 17,500 tons of ethylene glycol and 16,200 tons of oxalic acid, with production down by 63.77% and 31.65% respectively due to maintenance shutdowns[16] - The company is in the process of a major asset restructuring involving the acquisition of 100% equity in Jiangsu Silbon Petrochemical Co., Ltd[16]

Financial Performance - The company's operating revenue for the first half of 2019 was approximately RMB 517.28 million, a decrease of 15.26% compared to RMB 610.44 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 111.42 million, compared to a loss of RMB 37.65 million in the same period last year[18]. - The net cash flow from operating activities was approximately RMB 106.32 million, down 34.56% from RMB 162.46 million in the previous year[18]. - The basic earnings per share for the first half of 2019 was -0.1096 yuan, compared to -0.0370 yuan in the same period last year[19]. - The weighted average return on net assets was -5.39%, a decrease of 3.60 percentage points compared to -1.79% in the previous year[19]. - Operating revenue decreased by 15.26% to 517,280,656.88 RMB, primarily due to falling product prices and reduced sales of catalysts[29]. - The company reported a net loss of CNY 143,043,825.73 for the first half of 2019, compared to a net loss of CNY 46,645,478.68 in the same period of 2018, indicating a significant decline in profitability[87]. - The total comprehensive loss for the first half of 2019 was CNY -143,043,825.73, compared to CNY -46,645,478.68 in the same period of 2018, indicating a deteriorating financial position[88]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 3.48 billion, an increase of 2.47% from RMB 3.39 billion at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company decreased by 5.24% to approximately RMB 2.01 billion from RMB 2.12 billion at the end of the previous year[18]. - The company's total liabilities amounted to RMB 1,441,324,768.87, which is an increase from RMB 1,186,666,346.07, reflecting a growth of approximately 21.4%[79]. - The company's current assets totaled RMB 712,969,554.50, up from RMB 486,869,874.23 at the end of 2018, indicating a significant increase of approximately 46.4%[78]. - The company's inventory increased to RMB 310,914,729.69 from RMB 157,127,002.89, representing a growth of approximately 97.6%[78]. - Short-term borrowings increased by 31.03% to 380,000,000.00 RMB, indicating a rise in financing needs[34]. Operational Highlights - The company produced 85,600 tons of ethylene glycol and 45,700 tons of oxalic acid in the first half of the year, representing year-on-year increases of 80.97% and 8.81% respectively[27]. - The average selling price of oxalic acid was 2,799.46 RMB/ton, a decrease of approximately 7% compared to the same period last year, while the average selling price of ethylene glycol was 3,993.12 RMB/ton, down about 37.42% year-on-year[27]. - Operating costs decreased by 7.89% to 482,328,902.01 RMB, attributed to lower catalyst sales[29]. - Research and development expenses increased by 33.26% to 22,541,411.24 RMB, reflecting the company's commitment to innovation[30]. Risks and Challenges - The company faces significant risks including policy, market, and operational risks[6]. - The overall market for ethylene glycol is expected to remain oversupplied, with total capacity projected to reach 28.81 million tons by 2020, while demand is only expected to be 20.50 million tons[24]. - The company faces risks including oversupply in the ethylene glycol market, with total production capacity expected to reach 28.81 million tons by 2020 against a demand of only 20.50 million tons[41]. - The company’s main product, ethylene glycol, has a single product structure, making it vulnerable to price fluctuations and market risks[41]. Corporate Governance and Shareholder Information - The company did not distribute profits or increase capital reserves during the reporting period[4]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[51]. - The total number of common stock shareholders at the end of the reporting period is 53,069[67]. - The largest shareholder, Jiangsu Danhua Group, holds 180,050,050 shares, representing 17.71% of the total shares[69]. - The first major shareholder, Jiangsu Danhua Group, planned to increase its stake in the company with a minimum investment of CNY 50 million but only invested CNY 25.08 million due to funding issues[47]. Environmental Compliance - The company’s environmental compliance includes meeting the emission standards for major pollutants, with total emissions of 102.33 tons of chemical oxygen demand and 25.362 tons of sulfur dioxide during the reporting period[59]. - The company has established an emergency response plan for environmental incidents, which was signed and filed with the local environmental supervision authority[62]. - The company has installed online monitoring systems for emissions and wastewater treatment, with normal operational status and connectivity to the local environmental authority[63]. - The flue gas desulfurization device is operating at a utilization rate of 100%, achieving a sulfur dioxide removal rate of over 95%[60]. Strategic Initiatives - The company is in the process of a major asset restructuring, planning to acquire 100% equity of Jiangsu Silbon Petrochemical Co., Ltd. through a share issuance, which is expected to constitute a restructuring listing[42]. - The company plans to promote its new PGA product in the market, leveraging its research capabilities[27]. - The company is involved in a partnership to establish the Shanghai Dansheng New Materials Technology Center, holding 96.463% of the equity in the partnership[40]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern assumption, ensuring the company has the ability to continue operations for at least 12 months from the reporting date[118]. - The company adheres to the enterprise accounting standards, ensuring that its financial reports accurately reflect its financial position and operating results[120]. - The company has established specific accounting policies and estimates based on its operational characteristics, ensuring compliance with relevant accounting standards[119]. - The company recognizes goodwill in business combinations when the acquisition cost exceeds the fair value of identifiable net assets acquired, ensuring accurate representation of its financial health[127].

Financial Performance - Net profit attributable to shareholders was CNY -66,814,436.01, a decrease of 1,152.99% year-on-year[8] - Operating revenue fell by 27.80% to CNY 260,475,442.30 compared to the same period last year[8] - Net loss for Q1 2019 was CNY 86,026,957.08, compared to a net profit of CNY 9,503,754.43 in Q1 2018, indicating a significant decline in profitability[30] - Basic earnings per share were CNY -0.0657, a decrease of 1,159.68% compared to the previous year[8] - Basic and diluted earnings per share for Q1 2019 were both CNY -0.0657, compared to CNY 0.0062 in Q1 2018[31] Cash Flow - Net cash flow from operating activities decreased by 48.83% to CNY 95,928,728.40[8] - The net cash flow from operating activities decreased by 48.83% to ¥95,928,728.40 compared to ¥187,476,185.29 in the same period last year[18] - The net cash flow from investing activities decreased by 48.19% to -¥177,222,757.09, primarily due to the purchase of bank wealth management products by a subsidiary[18] - The net cash flow from financing activities increased by 161.06% to ¥95,861,337.54, attributed to reduced bank loan repayments by a subsidiary[18] - The net cash flow from operating activities in Q1 2019 was 95,928,728.40 RMB, a decrease of 48.9% compared to 187,476,185.29 RMB in Q1 2018[35] Assets and Liabilities - Total assets decreased by 0.70% to CNY 3,368,384,756.86 compared to the end of the previous year[8] - Total liabilities increased to ¥697,202,892.66 from ¥634,927,637.48 year-on-year[24] - The company's total equity decreased to ¥2,671,181,864.20 from ¥2,757,208,821.28[25] - Cash and cash equivalents increased to ¥233,772,513.32 from ¥219,205,204.47[22] - The company's total liabilities as of March 31, 2019, were CNY 185,415,506.81, up from CNY 182,951,772.13 at the end of 2018[28] Expenses - Research and development expenses increased by 39.98% to CNY 11,445,458.35 compared to the previous year[15] - Sales expenses rose by 90.78% to CNY 22,979,797.70 year-on-year[15] - The company incurred total operating expenses of 222,134,022.21 RMB in Q1 2019, down 29.2% from 313,540,610.77 RMB in Q1 2018[35] - The company’s management expenses increased to 1,302,574.09 RMB in Q1 2019 from 1,197,900.22 RMB in Q1 2018, representing an increase of 8.7%[33] - The company’s financial expenses decreased to 1,097,074.48 RMB in Q1 2019 from 1,337,000.64 RMB in Q1 2018, a reduction of 17.9%[33] Investment Activities - The company reported an investment loss of CNY -12,188,846.78 in Q1 2019, compared to a loss of CNY -315,803.70 in Q1 2018[30] - The company reported cash inflows from investment activities of 13,013,832.90 RMB in Q1 2019, compared to 19,452,902.05 RMB in Q1 2018, marking a decline of 33.1%[36] - The company reported a total investment loss of 117,683.04 RMB in Q1 2018, with no corresponding figure for Q1 2019, indicating a potential shift in investment strategy[33] Market Conditions - The average price of ethylene glycol in Q1 fell approximately 20% compared to Q4 of the previous year, while raw material lignite prices increased by about 10%, leading to operational losses[19] - The company terminated the acquisition of 100% equity in Chenzhou Fanlong Mining Co., Ltd. due to unfavorable changes in market conditions and financing environment[19] Financial Standards and Reporting - The company adopted new financial instrument standards starting January 1, 2019, affecting the classification and measurement of available-for-sale financial assets[47] - The company has adopted new financial instrument standards, which may impact future financial reporting and asset classification[43] - The company has not applied the new leasing standards retrospectively[48] - The audit report is not applicable for this period[49]

Financial Performance - In 2018, the company's operating revenue was approximately RMB 1.43 billion, representing a year-on-year increase of 7.66% compared to RMB 1.33 billion in 2017[20]. - The net profit attributable to shareholders of the listed company was RMB 2.06 million, a significant decrease of 99.23% from RMB 266.08 million in the previous year[20]. - Basic earnings per share decreased by 99.24% to CNY 0.0020 in 2018 from CNY 0.2618 in 2017[22]. - The weighted average return on equity dropped by 13.28 percentage points to 0.10% in 2018 from 13.38% in 2017[22]. - The net profit attributable to the parent company was 0.02 billion RMB, indicating a slight profit for the year[41]. - The company faced a significant decline in profitability due to a sharp drop in market prices for ethylene glycol and oxalic acid in the fourth quarter[39]. - The net profit for the year was ¥24,012,224.90, down from ¥384,552,566.55, showing a substantial drop in overall earnings[189]. - Operating profit decreased to ¥25,056,710.69 from ¥377,223,217.36, indicating a decline in profitability[189]. Assets and Liabilities - The total assets at the end of 2018 were approximately RMB 3.39 billion, a decrease of 10.89% compared to RMB 3.81 billion at the end of 2017[21]. - The company's net assets attributable to shareholders at the end of 2018 were approximately RMB 2.12 billion, a marginal increase of 0.10% from RMB 2.12 billion at the end of 2017[21]. - The total liabilities decreased from ¥1,060,687,259.46 to ¥634,927,637.48, a decline of about 40%[184]. - Shareholders' equity increased slightly from ¥2,745,941,909.25 to ¥2,757,208,821.28, reflecting a marginal growth of 0.4%[185]. Cash Flow - The net cash flow generated from operating activities was approximately RMB 370.23 million, a slight decrease of 2.97% from RMB 381.55 million in 2017[21]. - The company's operating cash flow for the year was 370 million RMB, a decrease of 2.97% from the previous year[42]. - The cash flow from operating activities showed a net outflow of 1,440,470.12 CNY, significantly improved from a net outflow of 12,976,957.37 CNY in the previous period[198]. - The cash flow from investing activities showed a net outflow of 201,832,954.96 CNY, improving from a larger outflow of 429,738,248.69 CNY in the previous period[196]. Production and Sales - The company produced a total of 142,000 tons of ethylene glycol and 85,500 tons of oxalic acid in the reporting period, with year-on-year increases of 3.43% and 19.84% respectively[46]. - The production of ethylene glycol in the second half of the year was 94,600 tons, a 53.88% increase compared to the same period last year[39]. - The company operates a single product production model, focusing on ethylene glycol and oxalic acid, with no inventory due to a "production-to-sales" strategy[29]. - The company’s chemical products generated a revenue of 113,124.38 million RMB, with a gross margin of 25.11%, reflecting a year-on-year increase of 6.31% in revenue[80]. Investments and Projects - The company is involved in two investment projects, one for a 200,000 tons/year synthetic gas to ethylene glycol project and another for a 100,000 tons/year fuel ethanol project, both of which are currently facing uncertainties regarding their completion[4]. - The company plans to expand its ethylene glycol production capacity, with an expected total capacity of 13.5 million tons by 2022[32]. - The company is currently in the equipment procurement and construction design phase for a 10,000-ton ethyl aldehyde project, expected to be completed by October 2019[39]. - The company invested 1.3 billion RMB in Yilin Chemical Co., Ltd., acquiring a 23.42% stake to expand its industrial scale[90]. Environmental and Regulatory Compliance - Total emissions of chemical oxygen demand reached 126.976 tons, ammonia nitrogen emissions totaled 9.377 tons, sulfur dioxide emissions were 98.386 tons, nitrogen oxides emissions amounted to 225.916 tons, and particulate matter emissions were 35.205 tons, all below permitted levels[128]. - The desulfurization project achieved a sulfur dioxide removal rate of over 95%, with a total investment of 23 million yuan and a construction area of 2,902 square meters[128]. - The company has not experienced any environmental pollution accidents or violations during the reporting period[133]. - The company has implemented a comprehensive environmental risk assessment and emergency response plan for environmental incidents[130]. Shareholder and Governance Information - The total number of ordinary shareholders increased from 42,622 to 42,891 during the reporting period[138]. - The actual controller of the company is the People's Government of Danyang City, Jiangsu Province[144]. - The company has no preferred shares outstanding[142]. - The total compensation for all directors, supervisors, and senior management during the reporting period amounted to CNY 4.1256 million[155]. Risks and Challenges - The company faces significant risks including policy, market, and operational risks[8]. - The risk of ethylene glycol overcapacity is significant, with domestic production potentially meeting self-sufficiency within four years[99]. - Environmental protection costs are expected to rise due to stricter regulations, impacting the company's profitability[100]. - The company is facing risks related to product quality differences that may hinder acceptance in high-end polyester markets[99].

Financial Performance - Operating revenue increased by 19.83% to CNY 1,010,824,640.95 for the first nine months compared to the same period last year[6]. - Net profit attributable to shareholders decreased by 96.05% to CNY 2,909,833.06 for the first nine months compared to the same period last year[6]. - Cash flow from operating activities increased by 48.34% to CNY 316,266,432.02 for the first nine months compared to the same period last year[6]. - The company reported a total profit of ¥53,517,671.20 for Q3 2018, an increase of 19.1% from ¥36,935,559.57 in Q3 2017[33]. - The total profit for the first nine months of 2018 was ¥99,325,256.56, up from ¥73,745,353.03 in the previous year, representing an increase of approximately 34.7%[33]. - The net profit for Q3 2018 reached ¥54,333,172.67, up from ¥36,276,171.59 in the same quarter last year, representing a growth of about 49.9%[34]. Assets and Liabilities - Total assets decreased by 8.30% to CNY 3,490,666,604.21 compared to the end of the previous year[6]. - The company’s total assets decreased from ¥3,806,629,168.71 at the beginning of the year to ¥3,490,666,604.21[23]. - Total liabilities decreased to ¥179,049,969.84 from ¥226,674,669.41 at the start of the year, reflecting a reduction of approximately 21%[28]. - Cash and cash equivalents at the end of the period were ¥186,132.34, significantly down from ¥5,028,240.26 at the beginning of the year[27]. Cash Flow - The company’s cash flow from financing activities decreased significantly by 873.18% to -¥139,295,287.52 due to reduced financing scale[17]. - Cash inflow from sales of goods and services reached ¥1,233,806,269.86, up from ¥988,896,001.06 in the same period last year, representing a growth of approximately 25%[39]. - Net cash flow from operating activities was ¥316,266,432.02, an increase from ¥213,201,194.74 year-on-year, indicating a growth of about 48.4%[40]. - Cash inflow from financing activities totaled ¥279,000,000.00, down from ¥339,000,000.00 in the previous year, a decrease of approximately 17.7%[41]. - The company reported a net cash flow decrease of ¥50,590,561.50, compared to a larger decrease of ¥182,851,345.12 in the previous year, indicating an improvement in cash flow management[41]. Operational Metrics - Accounts receivable increased by 479.65% to CNY 72,126,294.03 compared to the beginning of the period[13]. - Inventory decreased by 46.86% to CNY 139,302,308.69 compared to the beginning of the period[13]. - Operating costs rose by 53.04% to ¥806,460,344.56, primarily due to higher raw material costs and increased unit costs from the ethylene glycol expansion project[16]. - Tax and additional fees surged by 344.76% to ¥17,296,215.85, driven by increased sales at Jiangsu Jinjun[16]. - Ethylene glycol production reached 39,500 tons in Q3, with a 89.14% increase compared to Q2, achieving a stable operation at over 90% load[18]. Shareholder Information - The number of shareholders reached 39,519 at the end of the reporting period[11]. - The company reported a total equity of ¥2,784,768,017.51, a slight decrease from ¥2,793,675,287.16 at the start of the year[28]. Research and Development - Research and development expenses for the year-to-date were ¥26,399,672.15, compared to ¥29,503,736.89 in the same period last year[32]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[30]. - The company continues to explore strategic acquisitions to enhance its market position and product offerings[30]. Management and Expenses - Management expenses for Q3 2018 were ¥2,163,614.50, slightly higher than ¥2,139,725.67 in Q3 2017, showing a marginal increase of about 1.1%[36]. - Financial expenses for Q3 2018 amounted to ¥1,601,149.55, compared to ¥1,587,817.39 in Q3 2017, reflecting a rise of approximately 0.8%[36].

Financial Performance - The company's operating revenue for the first half of 2018 was approximately RMB 610.44 million, representing a 9.40% increase compared to RMB 557.99 million in the same period last year[18]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 37.65 million, a decrease of 180.11% compared to a profit of RMB 46.99 million in the previous year[18]. - The basic earnings per share for the first half of 2018 was -0.0370 yuan, a decrease of 180.09% compared to 0.0462 yuan in the same period last year[19]. - The company reported a significant increase in prepayments to ¥51,659,844.79 from ¥24,013,420.35, an increase of about 115.5%[75]. - The company reported a comprehensive income loss of RMB 13,596,594, indicating significant financial challenges during the period[100]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 25.81%, amounting to approximately RMB 162.46 million, down from RMB 218.99 million in the same period last year[18]. - The company's cash and cash equivalents decreased by 56.32% to ¥127,971,252.88, down from ¥292,985,618.20 in the previous period[32]. - The cash inflow from operating activities was only 8,218.21 RMB, significantly lower than 62,128.29 RMB in the previous period, marking an 86.8% decrease[90]. - The net cash flow from financing activities was -164,521,162.52 RMB, contrasting with a positive net cash flow of 92,901,301.22 RMB in the previous period[88]. - The total cash and cash equivalents decreased by 165,014,365.32 RMB during the period, contrasting with an increase of 1,902,394.37 RMB in the previous period[88]. Assets and Liabilities - The total assets of the company at the end of the reporting period were approximately RMB 3.43 billion, a decrease of 9.95% from RMB 3.81 billion at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were approximately RMB 2.08 billion, down 1.78% from RMB 2.12 billion at the end of the previous year[18]. - Total liabilities decreased from CNY 1,060,687,259.46 to CNY 731,457,924.86, a reduction of about 30.9%[77]. - The company's long-term equity investments slightly decreased to ¥232,734,783.67 from ¥233,589,908.67, a decrease of about 0.4%[75]. - The total owner's equity at the end of the current period was 2,745,941,000 RMB, which includes various components such as capital reserves and retained earnings[95]. Production and Operations - Ethylene glycol production decreased by 37.60% year-on-year to 47,300 tons, while oxalic acid production increased by 30.84% to 42,000 tons, with an average production load of 68.36%[28]. - Operating costs rose by 44.36% to RMB 523,637,920.88, primarily due to increased unit costs of main products and higher raw material costs for catalysts[31]. - The company faced challenges in production stability, with a cumulative downtime of 43 days affecting continuous production[28]. - The company plans to add 3.72 million tons of new coal-based ethylene glycol capacity in 2018, with several projects already underway[23]. - The company did not report any new product launches or technological advancements during this period[98]. Risks and Challenges - The company faces significant risks including policy, market, and operational risks[6]. - The company faces risks from fluctuating oil prices, which could impact production costs and market pressures[41]. - Environmental protection costs are expected to rise due to stricter regulations, potentially affecting the company's profitability[42]. - The company is also at risk from the implementation of its coal-to-ethylene glycol expansion project, which may not meet expected operational efficiency[41]. - The company has a significant amount of restricted assets, with fixed assets valued at ¥1,200,523,300.00 due to pending mortgage deregistration[35]. Shareholder and Corporate Governance - The total number of common stock shareholders at the end of the reporting period was 39,519[65]. - The largest shareholder, Jiangsu Danhua Group Co., Ltd., holds 177,955,950 shares, representing 17.51% of the total shares, with 25,000,000 shares pledged[67]. - The company did not distribute profits or increase capital reserves during the reporting period, with no dividends or stock bonuses issued[46]. - The largest shareholder committed to increasing their stake in the company by no less than 100 million RMB within the year starting from January 4, 2018[47]. - There were no significant lawsuits or arbitration matters during the reporting period[49]. Environmental Compliance - The company reported an average emission concentration of 15.6 mg/m³ for particulate matter, well below the standard limit of 30 mg/m³, with a total discharge of 44.35 tons from the boiler[55]. - Sulfur dioxide emissions were recorded at 51.89 mg/m³, significantly lower than the permissible limit of 200 mg/m³, with a total discharge of 295.66 tons from the chimney[55]. - The company has successfully implemented a wastewater discharge upgrade project, which was approved in December 2016 and is currently operating normally with compliant discharge[56]. - The company has established an emergency response plan for environmental incidents, which was approved by experts in November 2017 and filed with the local environmental inspection team[59]. - The company has not experienced any environmental pollution incidents or violations in the first half of 2018, and has not been investigated or penalized by environmental authorities[61]. Accounting and Financial Reporting - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial statements accurately reflect its financial status and operational results[110]. - The company has not made any changes to its significant accounting policies or estimates during the reporting period[187]. - The company recognizes financial assets based on the extent of continuing involvement, confirming related liabilities if risks and rewards are neither transferred nor retained[131]. - The company applies the equity method for investments in joint ventures, recognizing its share of assets, liabilities, and income[119]. - The company recognizes employee compensation liabilities for termination benefits when it cannot unilaterally withdraw the plan or confirm costs related to restructuring, impacting current profits[174].

Financial Performance - Operating income increased by 16.01% to CNY 360,772,760.04 year-on-year[6] - Net profit attributable to shareholders decreased by 85.42% to CNY 6,345,236.77 compared to the same period last year[6] - Basic earnings per share decreased by 85.51% to CNY 0.0062 compared to the same period last year[6] - The weighted average return on equity decreased by 99.87 percentage points to 0.30%[6] - Net profit for Q1 2018 was ¥9,503,754.43, a decrease of 83% from ¥57,450,204.91 in Q1 2017[33] - The total comprehensive income for Q1 2018 was ¥9,503,754.43, a decrease from ¥57,450,204.91 in the same period last year[34] - The company reported a net loss of CNY 2,423,217.82 for Q1 2018, compared to a net loss of CNY 1,652,401.09 in the same period last year, indicating an increase in losses of approximately 46.5%[37] Assets and Liabilities - Total assets decreased by 7.67% to CNY 3,514,784,837.4 compared to the end of the previous year[6] - The total assets decreased from ¥3,806,629,168.71 to ¥3,514,784,837.41, indicating a reduction in overall asset base[25] - The company's total liabilities decreased from ¥1,060,687,259.46 to ¥759,339,173.73, reflecting improved financial stability[26] - Total liabilities for Q1 2018 amounted to ¥177,739,586.36, down from ¥226,674,669.41 in the previous period[30] Cash Flow - Cash flow from operating activities increased by 47.86% to CNY 187,476,185.29 year-on-year[6] - Net cash flow from operating activities rose by 47.86% to ¥187,476,185.29, attributed to a decrease in inventory and the discounting of receivables[17] - Operating cash flow for the company was CNY 187,476,185.29, up from CNY 126,793,541.04 in the previous year, representing a growth of about 47.7%[39] - Total cash inflow from operating activities was CNY 501,016,796.06, compared to CNY 368,064,394.81 in the prior year, reflecting an increase of approximately 36.1%[39] - The ending cash and cash equivalents balance was CNY 203,875,852.67, down from CNY 282,526,953.88 at the end of the previous year[40] - The company experienced a net cash outflow from investing activities of CNY 119,590,842.46, an improvement from a net outflow of CNY 212,295,006.66 in the same period last year[40] - Cash inflow from financing activities was CNY 229,000,000.00, up from CNY 159,000,000.00 in the previous year, showing an increase of approximately 44%[40] - The company reported a net cash outflow from financing activities of CNY 156,995,108.36, compared to a net inflow of CNY 31,779,543.34 in the same period last year[40] Shareholder Information - The number of shareholders at the end of the reporting period was 40,505[10] - The largest shareholder, Jiangsu Danhua Group, holds 17.51% of the shares[10] Operating Costs and Expenses - Operating costs increased by 55.04% to ¥291,926,993.57, primarily due to higher unit costs of main products and increased sales of higher-cost products[18] - Sales expenses decreased by 37.25% to ¥12,044,866.32, primarily due to reduced transportation costs[18] - Tax and additional charges surged by 857.40% to ¥5,741,053.10, mainly due to reclassification of property tax and land use tax[18] - The company's management expenses increased to CNY 1,197,900.22 from CNY 645,658.32 year-over-year, reflecting a rise of approximately 85.5%[37] Investment Activities - The company recorded an investment loss of -¥315,803.70 in Q1 2018[33] - The company received CNY 19,000,000.00 from investment recoveries during the quarter, with no comparable amount in the previous year[39] - Total cash outflow from investing activities amounted to $150,002,799.00, primarily due to cash payments for investments totaling $150,000,000.00[43] - The cash flow from investment activities was negative, indicating a focus on long-term growth despite short-term cash outflows[43]

Financial Performance - The company's operating revenue for 2017 was approximately RMB 1.33 billion, an increase of 86.98% compared to RMB 712 million in 2016[19] - The net profit attributable to shareholders was approximately RMB 266 million, a significant recovery from a loss of RMB 164 million in 2016[19] - Basic earnings per share for 2017 reached CNY 0.2618, a significant improvement from a loss of CNY 0.1915 in 2016[20] - The weighted average return on equity increased to 13.38%, up 27.27 percentage points from -13.89% in 2016[20] - Total operating revenue for Q4 2017 was CNY 487,801,580.59, contributing to an annual total of CNY 1,331,316,885.53[23] - Net profit attributable to shareholders for Q4 2017 was CNY 192,338,441.40, marking a substantial increase compared to previous quarters[23] - The company reported a total of CNY 231,658,235.11 in non-recurring gains for 2017, with significant contributions from technology licensing fees[25] - The company achieved a revenue of CNY 1.33 billion, an increase of 86.98% compared to the previous year[41] - The net profit attributable to the parent company was CNY 266 million, marking a turnaround from loss to profit[41] - The company reported a significant increase in accounts receivable, reaching ¥177,226,324.62, up 961.87% from the previous period[58] - The company reported a positive profit available for distribution to ordinary shareholders but did not propose a cash profit distribution plan[107] Cash Flow and Investments - The cash flow from operating activities reached approximately RMB 381 million, representing a 508.33% increase from RMB 62 million in the previous year[19] - The company’s investment activities generated a net cash outflow of CNY 429 million, a 33.27% increase in outflow compared to the previous year[43] - The company incurred total cash outflows from investing activities of 537,698,743.50 RMB, up from 322,849,579.59 RMB, representing a year-over-year increase of about 66.7%[192] - The net cash flow from financing activities was -25,075,032.56 RMB, a decrease from 416,153,805.74 RMB in the previous year, indicating a shift in financing strategy[193] - The company received cash from investments totaling ¥1,751,006,142.04, indicating strong investor confidence[196] Assets and Liabilities - Total assets at the end of 2017 were approximately RMB 3.81 billion, up 15.03% from RMB 3.31 billion at the end of 2016[19] - The net assets attributable to shareholders increased by 14.33% to approximately RMB 2.12 billion from RMB 1.86 billion in 2016[19] - The company’s total liabilities decreased significantly, with a notable reduction in financing activities cash flow net amount by 106.03%[56] - Total liabilities rose to ¥1,060,687,259.46 from ¥918,679,342.12, an increase of about 15%[179] - Owner's equity increased to ¥2,745,941,909.25 from ¥2,390,470,566.17, representing a growth of approximately 15%[180] Production and Market Dynamics - The production of ethylene glycol reached 137,272 tons, an increase of 11.32%, while the production of oxalic acid was 71,374 tons, up 15.53%[47] - The average price of ethylene glycol increased in 2017, supported by a recovery in crude oil prices, with a year-on-year rise in average prices[28] - China's ethylene glycol imports for the first ten months of 2017 reached 7.2188 million tons, an increase of 12.28% year-on-year, with an estimated total of 8.5 million tons for the year[30] - The domestic polyester capacity reached 49.87 million tons by the end of 2017, with an expected increase of 595,000 tons in 2018, translating to an additional consumption of 200,000 tons of ethylene glycol[30] - The company’s coal-based ethylene glycol production is becoming a significant part of China's capacity, with 64% of new capacity expected to come from this method in 2017-2018[31] Environmental and Compliance - The total chemical oxygen demand emissions from the subsidiary Tongliao Jinmei for the year amounted to 86.127 tons, with ammonia nitrogen emissions at 14.184 tons, sulfur dioxide emissions at 88.924 tons, nitrogen oxides at 195.722 tons, and smoke dust at 26.276 tons, all below the permitted discharge limits[125] - The company invested a total of 5.626 million yuan in environmental protection construction during the year, focusing on wastewater, waste gas, noise, and solid waste management, achieving satisfactory treatment results[126] - The company has installed online monitoring systems for flue gas emissions and wastewater treatment, ensuring compliance with environmental regulations[125] - All emissions indicators from Tongliao Jinmei complied with environmental assessment requirements, with no environmental pollution incidents reported during the year[125] Shareholder and Governance - The total number of ordinary shareholders at the end of the reporting period was 39,688, an increase from 39,557 at the end of the previous month[134] - The company’s total ordinary shares reached 1,016,524,240, with 237,903,622 shares released from restrictions on September 1, 2017, following a non-public offering[131] - The largest shareholder, Jiangsu Danhua Group Co., Ltd., holds 177,354,350 shares, representing 17.45% of the total shares[136] - The company has not reported any changes in the controlling shareholder during the reporting period[140] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 3.406 million yuan[149] Risks and Future Outlook - The company faces significant risks including policy, market, and operational risks[6] - The company faces risks from oil price fluctuations, which could impact production costs and market prices for ethylene glycol[101] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[185] - The company aims to produce 180,000 tons of ethylene glycol and 80,000 tons of oxalic acid in 2018, with a target of maintaining a product quality rate of over 98%[100]

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of this unaudited quarterly report, assuming legal responsibilities - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal liabilities[5](index=5&type=chunk) - All company directors attended the board meeting to review the quarterly report[5](index=5&type=chunk) - Company head Wang Bin, chief accountant Jiang Yongfei, and head of accounting department Diao Wei guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[5](index=5&type=chunk) - This company's third-quarter report is unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) As of the report period end, total assets and net assets attributable to shareholders increased, with year-to-date operating revenue up **62.78%** and net profit turning positive, while operating cash flow decreased, and the company has 40,040 shareholders [Key Financial Data](index=3&type=section&id=4.5%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of the report period end, total assets grew by **7.81%** and net assets by **3.97%**, with year-to-date operating revenue increasing by **62.78%** and net profit turning positive, while operating cash flow decreased by **25.69%** Key Financial Data (Year-to-date as of Report Period End) | Indicator | As of Report Period End / YTD (Jan-Sep) | As of Prior Year End / Prior Year YTD (Jan-Sep) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,567,703,644.93 Yuan | 3,309,149,908.29 Yuan | 7.81 | | Net Assets Attributable to Listed Company Shareholders | 1,930,005,995.20 Yuan | 1,856,260,642.17 Yuan | 3.97 | | Net Cash Flow from Operating Activities | 213,201,194.74 Yuan | 286,904,676.06 Yuan | -25.69 | | Operating Revenue | 843,515,304.94 Yuan | 518,196,223.06 Yuan | 62.78 | | Net Profit Attributable to Listed Company Shareholders | 73,745,353.03 Yuan | -105,646,721.33 Yuan | N/A (Turned loss into profit) | | Net Profit Attributable to Listed Company Shareholders Excluding Non-recurring Gains and Losses | 66,027,622.83 Yuan | -111,300,345.80 Yuan | N/A (Turned loss into profit) | | Weighted Average Return on Net Assets (%) | 3.90 | -0.1333 | N/A | | Basic Earnings Per Share (Yuan/share) | 0.0725 | -0.1312 | N/A | | Diluted Earnings Per Share (Yuan/share) | 0.0725 | -0.1312 | N/A | Non-recurring Gains and Losses (Year-to-date as of Report Period End) | Item | YTD Amount (Jan-Sep) (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -3,116,020.85 Yuan | | Government grants recognized in current profit or loss | 15,115,111.88 Yuan | | Other non-operating income and expenses apart from the above | -171,947.42 Yuan | | Impact of minority interests (after tax) | -2,335,327.18 Yuan | | Income tax impact | -1,774,086.23 Yuan | | **Total** | **7,717,730.20 Yuan** | [Total Shareholders, Top Ten Shareholders, and Top Ten Unrestricted Shareholders as of Report Period End](index=4&type=section&id=4.6%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the report period end, the company had **40,040** shareholders, with Jiangsu Danhua Group, Beijing Dingjian Private Banking Capital Management, and China Construction Mingmao (Beijing) Investment Development as the top three, all having pledged shares - As of the report period end, total shareholders numbered **40,040** households[8](index=8&type=chunk) Top Ten Shareholders' Holdings (Partial) | Shareholder Name | Shares Held at Period End | Percentage (%) | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | Jiangsu Danhua Group Co., Ltd. | 176,339,550 | 17.35 | Pledged 15,000,000 shares | | Beijing Dingjian Private Banking Capital Management Co., Ltd. | 50,000,000 | 4.92 | Pledged 50,000,000 shares | | China Construction Mingmao (Beijing) Investment Development Co., Ltd. | 50,000,000 | 4.92 | Pledged 50,000,000 shares | - Jiangsu Danhua Group Co., Ltd. has no associated relationship or concerted action with other shareholders; the company is unaware of such relationships among other shareholders[9](index=9&type=chunk) [Total Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders as of Report Period End](index=6&type=section&id=4.7%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had no preferred shareholders as of the report period end - The company has no preferred shareholders[10](index=10&type=chunk) [Significant Events](index=6&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company experienced significant changes in key financial statement items, driven by subsidiary business activities, with operating revenue significantly up, but investment income sharply down, while production remains normal and the ethylene glycol expansion project is expected to complete in Q4, with no overdue commitments or profit warnings [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=6&type=section&id=4.8%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant balance sheet changes include a **54.38%** decrease in cash and increases in receivables and borrowings, driven by subsidiary operations; the income statement shows **62.78%** revenue growth and a **1069.45%** drop in investment income; cash flow from investing activities increased **60.64%**, while financing cash flow decreased **101.16%** Key Balance Sheet Item Changes and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | -54.38 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. repaid bank loans | | Notes Receivable | 276.95 | Subsidiary Jiangsu Jinju Alloy Material Co., Ltd. increased bank acceptance notes | | Prepayments | 404.38 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. increased prepaid engineering costs | | Inventories | 63.26 | Subsidiary Jiangsu Jinju Alloy Material Co., Ltd. stocked up on raw materials and finished products | | Available-for-sale Financial Assets | 100.00 | Parent company invested in limited partnership | | Short-term Borrowings | 323.75 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. increased borrowings from financial institutions | | Notes Payable | 100.00 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. increased bank acceptance bills for goods payments | | Advances from Customers | 146.20 | Subsidiary Jiangsu Jinju Alloy Material Co., Ltd. increased advance receipts for sales | | Non-current Liabilities Due Within One Year | -100.00 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. repaid bank loans | | Long-term Borrowings | -50.00 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. repaid borrowings from financial institutions | Key Income Statement Item Changes and Reasons (Current Period vs. Prior Year Period) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 62.78 | Increase in price and sales volume of the company's main products compared to the prior year period | | Taxes and Surcharges | 340.07 | Subsidiary Jiangsu Jinju Alloy Material Co., Ltd. accrued more value-added tax payable | | Financial Expenses | -61.43 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. reduced total bank borrowings | | Investment Income | -1069.45 | Subsidiary Jiangsu Danhua Acetic Anhydride Co., Ltd. recognized investment losses from Jining Jindan Chemical Co., Ltd. | | Non-operating Income | 74.63 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. received more government grants | | Non-operating Expenses | 3377.75 | Subsidiary Tongliao Jinmei Chemical Co., Ltd. disposed of fixed assets | Key Cash Flow Item Changes and Reasons (Current Period vs. Prior Year Period) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Investing Activities | 60.64 | Parent company paid for the acquisition of minority equity in subsidiary Tongliao Jinmei Chemical Co., Ltd. in the prior year period | | Net Cash Flow from Financing Activities | -101.16 | Parent company received proceeds from non-public issuance of shares in the prior year period | [Analysis of Progress, Impact, and Solutions for Significant Events](index=7&type=section&id=4.9%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company's third-quarter production and operations were normal, with stable ethylene glycol and oxalic acid output, and the ethylene glycol expansion project expected to complete in Q4 - The company's third-quarter production and operations were normal, producing **34,800 tons** of ethylene glycol and **21,800 tons** of oxalic acid[16](index=16&type=chunk) - Sales included **33,100 tons** of ethylene glycol and **20,000 tons** of oxalic acid, with ethylene glycol production capacity utilization averaging **91%** for the quarter[16](index=16&type=chunk) - The ethylene glycol expansion and technical upgrade project is expected to be completed in the fourth quarter[16](index=16&type=chunk) [Overdue Unfulfilled Commitments During the Reporting Period](index=7&type=section&id=4.10%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company had no overdue unfulfilled commitments during the reporting period - The company has no overdue unfulfilled commitments[17](index=17&type=chunk) [Warning and Explanation of Potential Cumulative Net Profit Loss or Significant Change from Prior Year-End to Next Reporting Period-End](index=8&type=section&id=4.11%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%B9%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company has not issued any warnings regarding potential cumulative net profit loss or significant changes for the period from year-beginning to the next report period end - The company has not issued any warnings or explanations regarding potential cumulative net profit loss or significant changes from the prior year-end to the next reporting period-end[18](index=18&type=chunk) [Appendix](index=8&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) The appendix contains the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements, providing detailed financial data for reference [Financial Statements](index=8&type=section&id=4.12%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited consolidated and parent company balance sheets as of September 30, 2017, and income and cash flow statements for January-September 2017 [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2017, consolidated total assets were **3.568 billion Yuan**, up **7.81%** from year-beginning, with total liabilities at **1.078 billion Yuan** and total owners' equity at **2.490 billion Yuan** Consolidated Balance Sheet Key Data (As of September 30, 2017) | Item | Period-end Balance (Yuan) | Year-beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,567,703,644.93 | 3,309,149,908.29 | | Total Current Assets | 605,240,666.56 | 546,628,995.91 | | Total Non-current Assets | 2,962,462,978.37 | 2,762,520,912.38 | | Total Liabilities | 1,078,003,463.76 | 918,679,342.12 | | Total Owners' Equity | 2,489,700,181.17 | 2,390,470,566.17 | [Parent Company Balance Sheet](index=11&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2017, parent company total assets were **3.031 billion Yuan**, slightly down from year-beginning, with total liabilities at **0.231 billion Yuan** and total owners' equity at **2.799 billion Yuan** Parent Company Balance Sheet Key Data (As of September 30, 2017) | Item | Period-end Balance (Yuan) | Year-beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,030,943,796.50 | 3,071,941,125.97 | | Total Current Assets | 96,162,636.65 | 347,159,593.80 | | Total Non-current Assets | 2,934,781,159.85 | 2,724,781,532.17 | | Total Liabilities | 231,421,644.80 | 264,669,244.77 | | Total Owners' Equity | 2,799,522,151.70 | 2,807,271,881.20 | [Consolidated Income Statement](index=13&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Sep 2017, total operating revenue reached **0.844 billion Yuan**, up **62.78%**, with operating profit, net profit, and net profit attributable to parent company owners all turning from loss to profit, resulting in basic EPS of **0.0725 Yuan/share** Consolidated Income Statement Key Data (Jan-Sep 2017) | Item | YTD Amount (Jan-Sep) (Yuan) | Prior Year YTD Amount (Jan-Sep) (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 843,515,304.94 Yuan | 518,196,223.06 Yuan | Y-o-Y Growth 62.78% | | Operating Profit | 87,498,112.95 Yuan | -190,113,806.02 Yuan | Turned loss into profit | | Net Profit | 99,229,615.00 Yuan | -181,246,384.48 Yuan | Turned loss into profit | | Net Profit Attributable to Parent Company Owners | 73,745,353.03 Yuan | -105,646,721.33 Yuan | Turned loss into profit | | Basic Earnings Per Share (Yuan/share) | 0.0725 | -0.1312 | Turned loss into profit | [Parent Company Income Statement](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Sep 2017, the parent company reported operating loss, total loss, and a net loss of **-7,749,729.50 Yuan**, with the loss widening compared to the prior year period Parent Company Income Statement Key Data (Jan-Sep 2017) | Item | YTD Amount (Jan-Sep) (Yuan) | Prior Year YTD Amount (Jan-Sep) (Yuan) | | :--- | :--- | :--- | | Operating Profit | -7,749,729.50 Yuan | -2,591,755.29 Yuan | | Total Profit | -7,749,729.50 Yuan | -2,591,755.29 Yuan | | Net Profit | -7,749,729.50 Yuan | -2,591,755.29 Yuan | [Consolidated Cash Flow Statement](index=17&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Sep 2017, net cash flow from operating activities was **0.213 billion Yuan**, down **25.69%**; net cash flow from investing activities was **-0.382 billion Yuan**, a **60.64%** decrease in outflow; and net cash flow from financing activities turned negative to **-0.014 billion Yuan** due to prior year equity funding Consolidated Cash Flow Statement Key Data (Jan-Sep 2017) | Item | YTD Amount (Jan-Sep) (Yuan) | Prior Year YTD Amount (Jan-Sep) (Yuan) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 213,201,194.74 Yuan | 286,904,676.06 Yuan | Decrease 25.69% | | Net Cash Flow from Investing Activities | -381,739,085.25 Yuan | -969,891,227.75 Yuan | Outflow Decrease 60.64% | | Net Cash Flow from Financing Activities | -14,313,454.61 Yuan | 1,232,635,032.61 Yuan | Turned from positive to negative | | Net Increase in Cash and Cash Equivalents | -182,851,345.12 Yuan | 549,648,480.92 Yuan | Turned from positive to negative | [Parent Company Cash Flow Statement](index=18&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Sep 2017, parent company net cash flow from operating activities was **-6.78 million Yuan**, a significant decrease in outflow; net cash flow from investing activities was **-0.210 billion Yuan**, a significant decrease in outflow; and net cash flow from financing activities was **0.215 billion Yuan**, a significant decrease Parent Company Cash Flow Statement Key Data (Jan-Sep 2017) | Item | YTD Amount (Jan-Sep) (Yuan) | Prior Year YTD Amount (Jan-Sep) (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -6,779,713.75 Yuan | -189,869,836.09 Yuan | | Net Cash Flow from Investing Activities | -210,007,598.00 Yuan | -1,599,539,248.00 Yuan | | Net Cash Flow from Financing Activities | 215,291,311.11 Yuan | 1,792,787,460.25 Yuan | | Net Increase in Cash and Cash Equivalents | -1,496,000.64 Yuan | 3,378,376.16 Yuan | [Audit Report](index=20&type=section&id=4.13%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report is unaudited - This quarterly report is unaudited[37](index=37&type=chunk)