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)

Financial Performance - The company's operating revenue for the first half of 2017 was approximately RMB 557.99 million, representing a 64.29% increase compared to RMB 339.64 million in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2017 was approximately RMB 46.99 million, a significant recovery from a loss of RMB 69.76 million in the previous year[20]. - The net cash flow from operating activities reached approximately RMB 218.99 million, marking a 457.65% increase from RMB 39.27 million in the same period last year[20]. - The basic earnings per share for the first half of 2017 was RMB 0.0462, a recovery from a loss of RMB 0.0896 per share in the same period last year[21]. - The weighted average return on equity for the first half of 2017 was 2.50%, compared to a negative 8.90% in the same period last year[21]. - The operating profit for the first half of 2017 was ¥48,483,562.27, a turnaround from a loss of ¥128,624,614.67 in the previous year[81]. - Net profit for the period was ¥62,953,443.41, compared to a net loss of ¥125,766,096.35 in the same period last year, indicating a substantial recovery[82]. - The company reported a total profit of ¥62,389,696.99, compared to a loss of ¥125,995,712.60 in the previous year, showcasing a strong recovery in profitability[82]. Assets and Liabilities - The total assets at the end of the reporting period were approximately RMB 3.56 billion, an increase of 7.53% from RMB 3.31 billion at the end of the previous year[20]. - The total liabilities increased to ¥1,104,979,179.04 from ¥918,679,342.12, which is an increase of approximately 20.3%[76]. - The total equity rose to ¥2,453,424,009.59 from ¥2,390,470,566.17, showing an increase of about 2.6%[76]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 134,347.50 million RMB as of the end of the reporting period[52]. - The total guarantees, including those to subsidiaries, amount to 151,247.50 million RMB[52]. Production and Operations - The company continues to focus on producing ethylene glycol and oxalic acid, with no changes in its main products and business model compared to 2016[24]. - The production of ethylene glycol reached 75,800 tons, a year-on-year increase of 22.06%, while oxalic acid production decreased by 1.83% to 32,100 tons[28]. - The average production load reached 91.80%, indicating efficient utilization of production capacity[28]. - The company is nearing completion of the ethylene glycol capacity expansion project, expected to be operational in the second half of 2017[28]. Financial Risks and Challenges - The company faces risks related to potential delisting if it reports a negative net profit for the full year 2017, following two consecutive years of losses[9]. - The company faced risks from oil price fluctuations, with expected prices ranging between $40 and $55 per barrel in 2017, impacting the ethylene glycol market prices accordingly[39]. - The company is currently implementing a coal-based ethylene glycol expansion project, but operational efficiency is subject to various factors, which may affect overall business performance[39]. - The company is facing increased environmental protection costs due to stricter regulations, which may impact profitability[40]. - The company has a single product structure, primarily producing ethylene glycol, which limits its ability to withstand market risks[39]. Shareholder and Capital Structure - The total number of ordinary shareholders at the end of the reporting period is 42,198[59]. - The company’s share capital structure has not changed during the reporting period[57]. - The company has appointed Jiang Yongfei as the new financial officer following the resignation of the previous officer[68]. - The company is undergoing a capital increase in a joint venture, with registered capital expected to rise from 200 million RMB to 1 billion RMB, which has been approved by the shareholders[49]. Accounting Policies and Compliance - The financial statements are prepared based on the going concern assumption, indicating the company has the ability to continue operations for at least 12 months from the reporting date[109]. - The company confirms that its financial statements comply with the requirements of the accounting standards, accurately reflecting its financial position and operating results[111]. - The company applies the acquisition method for business combinations, recognizing identifiable assets and liabilities at fair value on the acquisition date[116]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of the identifiable net assets acquired[116]. Cash Flow and Financing Activities - The net cash flow from operating activities for the first half of 2017 was CNY 218,992,918.65, a significant increase from CNY 39,270,421.28 in the same period last year, representing a growth of approximately 457%[88]. - Total cash inflow from financing activities was CNY 329,000,000.00, compared to CNY 320,000,000.00 in the previous year, showing a slight increase of about 0.31%[88]. - The total cash and cash equivalents at the end of the period stood at CNY 338,151,270.53, up from CNY 234,293,167.26 at the end of the previous period, reflecting an increase of approximately 44.4%[89]. Environmental and Regulatory Compliance - The company’s subsidiary, Tongliao Jinmei, reported pollutant emissions of 27.519 tons of COD, 6.964 tons of ammonia nitrogen, and 50.116 tons of sulfur dioxide during the reporting period[55]. - The company has not experienced any environmental pollution incidents or violations in the past three years[55]. Related Party Transactions - The company reported a total of 850.84 million RMB in related party transactions during the first half of 2017, primarily for purchasing goods and services necessary for operations[47]. - The company’s major related party transactions included 357.78 million RMB for purchasing materials and 163.18 million RMB for labor services from its controlling shareholder[46][47].

Financial Performance - The company's operating revenue for 2016 was RMB 712,008,151.80, a decrease of 31.88% compared to RMB 1,045,218,494.06 in 2015[19] - The net profit attributable to shareholders was a loss of RMB 164,305,314.94, compared to a loss of RMB 30,667,760.80 in the previous year[19] - The cash flow from operating activities was RMB 62,721,293.76, down 72.44% from RMB 227,562,826.99 in 2015[20] - The basic earnings per share for 2016 was -0.1915, compared to -0.0394 in 2015[21] - The weighted average return on equity was -13.89% in 2016, down from -3.68% in 2015[21] - The company reported a net loss of CNY 164 million for the year, with total revenue declining by 31.88% to CNY 712 million[41] - The company reported a net loss of CNY 253,904,433.13 for the year 2016, compared to a net loss of CNY 49,251,746.72 in the previous year, indicating an increase in losses of approximately 415%[188] - The total comprehensive loss for the year was CNY 253,904,433.13, compared to CNY 49,251,746.72 in the previous year, marking an increase in comprehensive losses of approximately 415%[188] Assets and Liabilities - The total assets at the end of 2016 were RMB 3,309,149,908.29, an increase of 7.95% from RMB 3,065,424,103.61 at the end of 2015[20] - The net assets attributable to shareholders increased by 126.71% to RMB 1,856,260,642.17 from RMB 818,783,991.00 in 2015[20] - The company's total assets increased to CNY 3,071,941,125.97 from CNY 1,389,972,511.03, representing a growth of 121.5%[185] - The total liabilities decreased to CNY 264,669,244.77 from CNY 317,105,544.21, a reduction of 16.5%[185] - The company's total current liabilities decreased to RMB 489,988,772.94 from RMB 1,028,992,768.76, a reduction of approximately 52.3%[180] Cash Flow - Operating cash flow decreased by 72.44% to CNY 62.72 million, while financing activities generated a net cash inflow of CNY 416.15 million, a 713.90% increase[43] - The company reported a cash flow from operating activities of CNY 62,721,293.76, a significant decrease from CNY 227,562,826.99 in the previous year, indicating a decline of about 72.5%[194] - The net cash flow from financing activities was 1,608,535,498.14 CNY, an increase from 63,297,701.10 CNY in the previous period[198] - The cash inflow from operating activities totaled 6,376,298.63 CNY, an increase from 4,882,648.22 CNY in the prior year[197] Production and Operations - The average market price of ethylene glycol in 2016 was ¥5,400 per ton, which was lower than the previous year, reflecting a challenging market environment[29] - Ethylene glycol production reached 123,318.70 tons, falling short of the annual target of 140,000 tons due to technical upgrades and operational challenges[39] - The company is focusing on coal-based ethylene glycol production, which accounted for about 20% of total production in 2016, with plans for significant capacity expansion in the coming years[32] - The company’s production process is evolving towards lower costs and higher selectivity, enhancing product quality and market acceptance in the polyester fiber industry[33] Investments and Financing - The company’s investment in the industrial merger fund amounted to CNY 150 million, with an additional CNY 60 million allocated to an investment fund[40] - The company completed a private placement of 237,903,622 shares, increasing total shares from 778,620,618 to 1,016,524,240[129] - The net proceeds from the fundraising amounted to approximately RMB 1,751 million, with RMB 238 million allocated to increase share capital and RMB 1,513 million added to capital reserves[134] - The company plans to use the raised funds to repay part of its loans and supplement working capital, thereby reducing financial costs[134] Research and Development - Research and development expenses totaled ¥43,001,829.45, representing 6.04% of the operating revenue[54] - The company has allocated resources for research and development of new technologies to enhance competitive advantage[186] - The total number of R&D personnel was 51, accounting for 3.59% of the total workforce[54] Market and Industry - Domestic ethylene glycol production capacity reached approximately 8.5 million tons in 2016, with a production volume of about 5.3 million tons, indicating a self-sufficiency rate of 40%[30] - The domestic ethylene glycol market is primarily composed of petroleum-based (62% capacity), coal-based (26% capacity), and other processes (12% capacity), indicating a tight supply-demand balance[90] Social Responsibility and Environmental Impact - The company supported 30 employees in need and provided assistance to 11 impoverished individuals and students through its subsidiaries[118] - The company plans to increase its investment in poverty alleviation while strengthening its main business operations[122] - The company has not experienced any environmental pollution incidents or violations during the reporting period[123] Governance and Compliance - The company has a governance structure that complies with the requirements of the Company Law and the Securities Law[163] - The audit committee supervised the annual report preparation and provided recommendations for the hiring of audit units[167] - There were no penalties from securities regulatory agencies in the past three years[157]

Financial Performance - Operating revenue surged by 96.99% to CNY 310,975,841.96 from CNY 157,862,578.23 year-on-year[14] - Net profit attributable to shareholders reached CNY 43,519,290.79, a significant recovery from a loss of CNY 34,834,917.90 in the same period last year[6] - Operating profit for Q1 2017 was CNY 46,929,192.57, compared to a loss of CNY 65,150,450.48 in Q1 2016[29] - Net profit for Q1 2017 reached CNY 57,450,204.91, a significant recovery from a net loss of CNY 63,406,339.53 in the previous year[29] - The net profit attributable to shareholders of the parent company was CNY 43,519,290.79, compared to a loss of CNY 34,834,917.90 in Q1 2016[29] Cash Flow - Cash flow from operating activities increased dramatically by 2,092.53% to CNY 126,793,541.04 compared to CNY 5,782,989.50 in the previous year[6] - The net cash flow from operating activities increased to ¥126,793,541.04, a significant rise of 2092.53% compared to the same period last year[16] - Cash flow from operating activities for Q1 2017 was CNY 359,600,091.33, compared to CNY 195,536,519.98 in Q1 2016, indicating a 83.7% increase[35] - The net cash flow from operating activities for Q1 2017 was ¥126,793,541.04, a significant increase compared to ¥5,782,989.50 in the previous year, reflecting a growth of approximately 2,188%[36] - The company reported cash outflows from operating activities totaling ¥241,270,853.77, which is an increase from ¥199,500,336.70 in the previous year, reflecting a rise of approximately 21%[36] Assets and Liabilities - Total assets increased by 3.67% to CNY 3,430,717,275.12 compared to the end of the previous year[6] - Current assets totaled ¥551,693,526.97, slightly up from ¥546,628,995.91 at the start of the year[20] - Current liabilities increased to ¥543,995,825.01 from ¥489,988,772.94 at the beginning of the year[21] - The company's total liabilities reached ¥982,796,504.04, compared to ¥918,679,342.12 at the start of the year[22] - Total liabilities as of Q1 2017 amounted to CNY 381,449,139.49, an increase from CNY 264,669,244.77 in the previous year[29] Equity - The weighted average return on equity improved to 2.32% from -4.35% in the previous year[6] - The total equity attributable to shareholders was ¥1,899,779,932.96, up from ¥1,856,260,642.17 at the beginning of the year[22] - Total equity for the company was CNY 2,805,619,480.11, slightly down from CNY 2,807,271,881.20 in the same period last year[29] Operating Costs and Expenses - Operating costs increased by 31.99% to CNY 188,296,944.22, driven by higher sales volumes[14] - Total operating costs for Q1 2017 were CNY 264,046,649.39, up from CNY 223,013,028.71, representing an increase of 18.4%[29] - Financial expenses decreased by 59.31% to CNY 6,819,591.84, due to reduced bank borrowings[14] - The company reported a financial expense of CNY 6,819,591.84 in Q1 2017, down from CNY 16,757,999.43 in the same period last year, a decrease of 59.3%[29] Investments - The net cash flow from investing activities decreased to -¥212,295,006.66, reflecting a decline of 171.33% year-on-year due to investments in industrial funds[16] - The cash outflow for investment activities was primarily due to cash payments for fixed assets totaling ¥150,000,000.00, which was unchanged from the previous year[39] Financing Activities - Short-term borrowings increased by 111.25% to CNY 169,000,000.00, attributed to additional loans taken by the company and its subsidiaries[12] - The net cash flow from financing activities fell to ¥31,779,543.34, down 74.28% compared to the previous year, primarily due to reduced bank borrowings by a subsidiary[16] - Total cash inflow from financing activities was ¥159,000,000.00, down from ¥320,000,000.00 in the previous year, indicating a decrease of about 50%[37] - The net cash flow from financing activities was positive at ¥31,779,543.34, compared to ¥123,550,663.72 in the previous year, indicating a decrease of about 74%[37] Production and Sales - The subsidiary Tongliao Jinmei Chemical Co., Ltd. produced 40,700 tons of ethylene glycol with sales revenue of ¥243,941,400, and produced 17,700 tons of oxalic acid with sales revenue of ¥46,706,400[17] - The ethylene glycol capacity expansion project, with an investment of ¥550 million, is nearing completion and expected to commence operations in the second quarter[17] Government Subsidies - Government subsidies received increased significantly, contributing to a rise in non-operating income by 413.89% to CNY 8,862,665.50[14] Other Information - The company has not disclosed any new product developments or market expansion strategies in the current report[29]

Financial Performance - Operating revenue decreased by 35.91% to CNY 518,196,223.06 for the first nine months compared to the same period last year[6] - Net profit attributable to shareholders was a loss of CNY 105,646,721.33, compared to a loss of CNY 793,962.51 in the same period last year[6] - The company's investment income decreased by 87.32% to ¥165,023.82 from ¥1,301,173.55 year-on-year[13] - The total profit for the first nine months of 2016 was -181,449,844.96 RMB, significantly lower than the profit of 5,897,656.60 RMB in the same period last year[30] - The operating loss for Q3 2016 was -61,489,191.35 RMB, compared to -23,050,800.14 RMB in Q3 2015, reflecting a deterioration of 167.1%[30] - The total comprehensive loss for the first nine months of 2016 was -181,246,384.48 RMB, compared to a comprehensive income of 7,489,358.51 RMB in the same period last year[30] - The basic and diluted earnings per share for Q3 2016 were both -0.0418 RMB, compared to -0.0164 RMB in Q3 2015, indicating a decline in earnings per share[30] Assets and Liabilities - Total assets increased by 21.66% to CNY 3,729,252,100.39 compared to the end of the previous year[6] - The company's total liabilities amounted to CNY 1,265,828,438.67, compared to CNY 1,517,596,146.35 in the previous period[22] - Non-current liabilities totaled CNY 634,140,254.63, up from CNY 488,603,377.59 in the previous period[22] - The total equity attributable to shareholders was CNY 1,913,194,145.45, an increase from CNY 818,783,991.00 year-on-year[23] - The company's total current liabilities were CNY 631,688,184.04, down from CNY 1,028,992,768.76 in the previous period[22] Cash Flow - Cash flow from operating activities decreased by 6.49% to CNY 286,904,676.06 for the first nine months compared to the same period last year[6] - The net cash flow from operating activities for Q3 2016 was 286,904,676.06 RMB, a decrease from 306,830,558.86 RMB in the same period last year[37] - Total cash outflow from operating activities amounted to 488,958,447.82 RMB, compared to 823,895,525.03 RMB in the previous year, indicating a reduction of approximately 40.7%[37] - The net cash flow from investing activities was -969,891,227.75 RMB, significantly worse than -139,090,637.77 RMB in the prior year, reflecting increased investment expenditures[37] - Cash inflow from financing activities totaled 2,082,519,092.56 RMB, a substantial increase from 438,813,728.69 RMB year-over-year[37] - The net cash flow from financing activities was 1,232,635,032.61 RMB, compared to -107,899,427.74 RMB in the same quarter last year, showing a strong recovery[37] Shareholder Information - The total number of shareholders reached 49,393 at the end of the reporting period[8] - The company completed a private placement of shares, raising a net amount of ¥1,751,001,200[15] Borrowings - Short-term borrowings decreased by 83.63% to CNY 80,000,000.00 compared to the beginning of the year[10] - Long-term borrowings increased by 40.85% to CNY 500,000,000.00 compared to the beginning of the year[10] - The company's long-term borrowings increased, indicating a strategy to finance growth through debt[12] Expenses - The company's financial expenses increased to 54,775,159.85 RMB for the first nine months of 2016, up from 43,493,687.98 RMB in the previous year, marking an increase of approximately 25.3%[30] - The company's sales expenses for the first nine months of 2016 were 53,000,037.72 RMB, up from 49,524,983.05 RMB in the previous year, an increase of approximately 5.0%[30] - The management expenses for the first nine months of 2016 were 134,421,254.44 RMB, down from 140,084,261.53 RMB in the same period last year, a decrease of about 4.7%[30]

Financial Performance - The company's operating revenue for the first half of 2016 was approximately ¥339.64 million, a decrease of 38.01% compared to ¥547.93 million in the same period last year[21]. - The net profit attributable to shareholders was approximately -¥69.76 million, a significant decline of 683.98% from a profit of ¥11.95 million in the previous year[21]. - The net cash flow from operating activities was approximately ¥39.27 million, down 85.12% from ¥263.99 million in the same period last year[21]. - Operating revenue decreased by 38.01% to ¥339,640,494.68, primarily due to the continued low prices of products from the subsidiary Tongliao Jinmei Chemical Co., Ltd.[29]. - The net loss for the first half of 2016 was CNY 125,766,096.35, compared to a net profit of CNY 28,898,469.72 in the previous year[86]. - The basic and diluted earnings per share for the first half of 2016 were both CNY -0.0896, compared to CNY 0.0153 in the previous year, indicating a decline in profitability[86]. - The company reported a net loss of ¥1,725,495.55 for the first half of 2016, compared to a net loss of ¥1,691,141.91 in the same period last year, indicating a slight increase in losses[89]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥3.12 billion, an increase of 1.69% from ¥3.07 billion at the end of the previous year[21]. - The company's total liabilities increased to CNY 1,700,178,108.02 from CNY 1,517,596,146.35, marking an increase of approximately 12.0%[79]. - The company's equity attributable to shareholders decreased to CNY 756,739,994.73 from CNY 818,783,991.00, a decline of about 7.6%[79]. - The total assets increased to CNY 1,580,709,310.70 from CNY 1,389,972,511.03, indicating growth in the asset base[82]. - The total liabilities increased to CNY 509,567,839.43 from CNY 317,105,544.21, reflecting higher financial obligations[82]. Production and Operations - The production of ethylene glycol by the subsidiary Tongliao Jinmei was 62,100 tons, a year-on-year decrease of 13.81%[26]. - The production of oxalic acid increased by 12.39% to 32,700 tons compared to the same period last year[26]. - The company plans to complete capacity expansion and technical transformation projects in the second half of the year to improve economic efficiency[26]. - The company faced significant pressure on profitability due to low domestic market prices for ethylene glycol[26]. Cash Flow and Financing - Financing activities generated a net cash flow of ¥104,871,022.15, a significant increase of 162.49%, due to an increase in net borrowings from financial institutions[29]. - The company experienced a net cash inflow of ¥54,461,057.79 from financing activities, a turnaround from a net outflow of ¥167,816,236.48 in the same period last year[93]. - The company raised ¥320,000,000.00 through borrowings, significantly higher than ¥118,813,728.69 in the previous year[92]. Related Party Transactions - Total amount of related party transactions reached approximately RMB 642.53 million, with significant transactions including RMB 489.94 million for water treatment equipment and chemicals[48]. - The company provided financial assistance to Tongliao Jinmei, with a maximum amount not exceeding RMB 700 million over three years for technical upgrades and working capital[50]. - The company’s related party transactions are deemed necessary for daily operations, ensuring no adverse effects on non-related party shareholders[48]. - The company’s related party transactions include labor services and maintenance, with amounts such as RMB 73.82 million for personnel wages and RMB 56.41 million for electrical installation[48]. Shareholder Information - The total number of shareholders reached 55,184 by the end of the reporting period[62]. - Jiangsu Danhua Group held 22.65% of the shares, while the second-largest shareholder, Dong Rongting, held 6.05%[65]. - The management team committed to repurchasing shares worth no less than RMB 30 million within 12 months, which was completed by July 8, 2016[54]. Governance and Compliance - The company’s governance structure is in compliance with the Company Law and relevant regulations[57]. - The company has not reported any major contracts or transactions during the reporting period[54]. - The company has not reported any significant changes in related party transactions or debt relationships during the reporting period[49]. Accounting Policies - The company's financial statements are prepared in accordance with the accounting standards set by the Ministry of Finance, ensuring compliance and transparency[110]. - The company has no significant changes in accounting policies or estimates during the reporting period[175]. - The company’s tax rates include a 6% and 17% VAT, a 5% business tax, and a corporate income tax rate of 15% or 25% depending on the entity[176]. Inventory and Receivables - The accounts receivable at the end of the period amounted to ¥30,206,162.04, with a bad debt provision of ¥1,489,001.00, indicating a provision ratio of 4.93%[187]. - The company has significant prepaid accounts totaling CNY 68,323,511.50, accounting for 79.23% of the total prepaid accounts, with major suppliers including Xi'an Shaangu Power and Shenyang Turbine Machinery[191]. - The company has identified a total of CNY 65,941,499.62 in overdue receivables, which represents 68.73% of the total other receivables[199].

Financial Performance - Operating revenue decreased by 34.47% to CNY 157,862,578.23 from CNY 240,883,763.26 year-on-year[6] - Net profit attributable to shareholders decreased significantly by 1,315.12% to CNY -35,626,658.80 from CNY -2,517,576.63 year-on-year[6] - The net loss for Q1 2016 was ¥63,406,339.53, compared to a net loss of ¥1,415,486.53 in Q1 2015, indicating a significant increase in losses[27] - The operating profit for Q1 2016 was -¥65,150,450.48, compared to -¥2,624,754.02 in the previous year, showing a worsening operational performance[27] - Basic and diluted earnings per share for Q1 2016 were both -¥0.0447, compared to -¥0.0026 in the same quarter last year[28] Cash Flow - Cash flow from operating activities dropped by 73.84% to CNY 5,782,989.50 compared to CNY 22,109,521.77 in the same period last year[6] - Net cash flow from operating activities dropped by 73.84% to ¥5,782,989.50 from ¥22,109,521.77 year-on-year[13] - Net cash flow from investing activities decreased by 134.90% to -¥78,243,305.70, reflecting increased capital expenditures in technical upgrades[13] - Net cash flow from financing activities increased by 370.77% to ¥123,550,663.72 from ¥26,244,244.89 year-on-year[13] - The cash inflow from operating activities was CNY 205,283,326.20, a decrease of 34.9% compared to CNY 315,508,499.47 in the previous period[33] - The cash outflow from investing activities totaled CNY 78,243,305.70, compared to CNY 33,393,949.11 in the previous period, indicating a significant increase in investment spending[33] - The net cash flow from financing activities was CNY 123,550,663.72, a substantial increase from CNY 26,244,244.89 in the previous year, reflecting increased borrowing[34] - The company reported a net cash increase of CNY 51,090,347.52, compared to CNY 15,045,048.21 in the previous year, reflecting better cash management overall[34] Assets and Liabilities - Total assets increased by 2.29% to CNY 3,135,518,752.75 compared to the end of the previous year[6] - The company reported a significant decrease in accounts receivable by 75% to CNY 800,000.00[9] - Current liabilities decreased to ¥208,593,684.27 from ¥267,105,544.21, a reduction of 22%[24] - Long-term borrowings increased significantly to ¥300,000,000.00 from ¥50,000,000.00, indicating a shift in financing strategy[24] - Total liabilities for Q1 2016 were ¥508,593,684.27, up from ¥317,105,544.21 in the previous year, reflecting a rise of 60.4%[24] Shareholder Information - The number of shareholders reached 59,733, with the largest shareholder holding 22.65% of the shares[7] - The company reported an accumulated deficit of ¥848,915,260.16 in retained earnings[20] Other Financial Metrics - The weighted average return on net assets decreased by 4.11 percentage points to -4.35%[6] - Other income rose by 68.80% to ¥1,724,606.34, primarily due to government subsidies received by the subsidiary[12] - Total operating costs for Q1 2016 were ¥223,013,028.71, down from ¥243,593,747.94 year-over-year, reflecting a reduction of 8.5%[26] - Owner's equity totaled ¥1,072,082,917.16 in Q1 2016, slightly down from ¥1,072,866,966.82 year-over-year[24] - The total cash and cash equivalents at the end of the period reached CNY 230,922,456.99, up from CNY 125,641,551.75 in the previous year, marking an increase of 83.7%[34]

Financial Performance - The company's operating revenue for 2015 was approximately RMB 1.045 billion, representing a 1.77% increase compared to RMB 1.027 billion in 2014[18]. - The net profit attributable to shareholders of the listed company for 2015 was a loss of approximately RMB 30.67 million, a decrease of 275.94% compared to a profit of RMB 17.43 million in 2014[18]. - The net cash flow from operating activities for 2015 was approximately RMB 227.56 million, down 31.13% from RMB 330.43 million in 2014[18]. - The total assets at the end of 2015 were approximately RMB 3.065 billion, a decrease of 6.18% from RMB 3.267 billion at the end of 2014[18]. - The net assets attributable to shareholders of the listed company at the end of 2015 were approximately RMB 818.78 million, down 3.61% from RMB 849.45 million at the end of 2014[18]. - The basic earnings per share for 2015 was -0.0394 yuan, a decrease of 275.89% compared to 0.0224 yuan in 2014[19]. - The weighted average return on net assets for 2015 was -3.68%, a decrease of 5.75 percentage points from 2.07% in 2014[20]. - The company reported a net loss in income tax expenses of 6,555,989.40 CNY, a decrease of 138.65% year-on-year[50]. - The company reported a net loss of CNY 49,251,746.72 for 2015, compared to a net profit of CNY 45,352,484.50 in the previous year[149]. - The loss attributable to shareholders of the parent company was CNY 30,667,760.80, a significant decline from a profit of CNY 17,430,398.62 in 2014[149]. Operational Highlights - The company experienced a significant decline in net profit in Q3 and Q4, with net profits of -¥12.74 million and -¥29.87 million respectively, indicating volatility in performance throughout the year[22]. - The production of ethylene glycol reached 145,592.68 tons, with a sales volume of 143,590.55 tons, reflecting a year-on-year increase of 15.82% in production and 13.48% in sales[45]. - The company’s subsidiary, Tongliao Jinmei, holds a 54.01% stake and is a key driver of the company’s production and operational activities[29]. - The company has completed the relocation of its subsidiary Danhua Acetic Anhydride, with the main production equipment valued at ¥60 million transferred to Jining Jindan Chemical Co., marking a significant asset restructuring[33]. - The company’s subsidiary Tongliao Jinmei achieved a record high production output, with an average production load of 87.75% during the reporting period[39]. Market Environment - The average domestic price of ethylene glycol fell by 29.26% from ¥6255/ton at the beginning of the year to ¥4424/ton by year-end, reflecting a challenging market environment[30]. - The domestic apparent consumption of ethylene glycol increased from 12.2 million tons in 2014 to 13.9 million tons in 2015, with an import dependency of over 70%[31]. - The company faced significant risks including policy, market, and operational risks[4]. - The company faces risks from economic downturns affecting market demand, particularly in the polyester sector, which consumes 90% of its ethylene glycol products[67]. - The company is under pressure from low international oil prices, which could impact its profit margins despite its cost advantages in coal-based ethylene glycol production[68]. Financial Management - The company plans to raise CNY 32 million through private placement to fund the expansion of ethylene glycol production capacity and repay loans, aiming to improve financial structure and reduce costs[38]. - The company’s financial expenses decreased by 9.81% to approximately CNY 58.82 million, reflecting improved cost management[41]. - The company’s investment activities generated a net cash outflow of approximately CNY 206.46 million, a 45.74% increase in outflow compared to the previous year[41]. - The company’s total liabilities decreased by 49.13% to 118,150,261.83 CNY, reflecting improved financial management[55]. - The company’s long-term equity investments reached 58,890,623.89 CNY, marking a 100% increase from the previous year[55]. Shareholder and Governance - The controlling shareholder has committed to increasing its stake in the company by at least RMB 250 million within 24 months, having already acquired 29,541,123 shares[77]. - The company has a total of 61,548 ordinary shareholders at the end of the reporting period, down from 64,133 at the end of the previous month[98]. - The largest shareholder, Jiangsu Danhua Group Co., Ltd., holds 176,339,550 shares, representing 22.65% of the total shares, with 75,000,000 shares pledged[100]. - The company has no preferred shares, simplifying its capital structure[109]. - The actual controller of the company is the People's Government of Danyang City, indicating a strong government influence in corporate governance[105]. Compliance and Internal Control - The company’s internal control audit was conducted by Zhongxinghua Accounting Firm, with an audit fee of RMB 500,000[79]. - The company has no significant litigation or arbitration matters during the reporting period[80]. - The company has no unfulfilled court judgments or significant overdue debts[80]. - The company’s internal control audit was conducted by Zhongxinghua Accounting Firm, confirming the effectiveness of internal controls[134]. - The company received a standard unqualified audit opinion for its financial statements for the year ended December 31, 2015[140]. Future Plans and Strategies - The company plans to expand its glycol production capacity by 70,000 tons and oxalic acid production capacity by 30,000 tons through ongoing technical upgrades[58]. - The company aims to achieve an average production load of over 85% of designed capacity, producing 139,000 tons of ethylene glycol and 83,800 tons of oxalic acid in 2016, with a superior product output rate maintained at over 98%[65]. - The company intends to explore new projects and expand strategic partnerships, optimizing its capital structure through acquisitions and adjustments[66]. - The company plans to issue between 35 million to 250 million A-shares, raising no more than 1,779.52 million RMB for projects including ethylene glycol capacity expansion and acquisition of shares from other shareholders of Tongliao Jinmei[90]. - The company will enhance its internal control system and management standards to ensure compliance and improve operational efficiency[66].