Financial Performance - The company's operating revenue for 2020 was approximately RMB 1.08 billion, a decrease of 12.54% compared to RMB 1.23 billion in 2019[22]. - The net profit attributable to shareholders of the listed company was approximately -RMB 367.17 million, compared to -RMB 432.80 million in 2019, showing an improvement[22]. - The total assets at the end of 2020 were approximately RMB 2.59 billion, a decrease of 13.16% from RMB 2.99 billion at the end of 2019[23]. - The net assets attributable to shareholders of the listed company decreased by 21.59% to approximately RMB 1.33 billion from RMB 1.69 billion in 2019[23]. - The cash flow from operating activities for 2020 was approximately -RMB 38.28 million, a significant decline compared to RMB 7.22 million in 2019[22]. - The company reported a basic earnings per share of -0.3612 CNY for 2020, an improvement from -0.4258 CNY in 2019[24]. - The weighted average return on equity decreased to -24.33% in 2020, down 1.65 percentage points from -22.68% in 2019[24]. - Total revenue for the fourth quarter reached 469,303,143.55 CNY, while the net profit attributable to shareholders was -140,644,098.89 CNY[26]. - The company reported a total revenue of CNY 1.075 billion for the year, a decrease of 12.54% compared to the previous year[39]. - The net profit attributable to the parent company was a loss of CNY 367 million[39]. - Non-recurring losses totaled -903,863.51 CNY in 2020, compared to -668,088.84 CNY in 2019[28]. - The company reported a net loss of CNY 1,508,257,230.50 for 2020, compared to a net loss of CNY 1,143,045,805.41 in 2019[172]. - The company reported a total comprehensive loss of -9,900,510.96 CNY for 2020, compared to -208,348,050.17 CNY in 2019, showing a significant reduction in overall losses[182]. Production and Sales - The company achieved an annual production capacity of 220,000 tons of ethylene glycol and 80,000 tons of oxalic acid, with a production utilization rate of 75.58%[30][31]. - Domestic ethylene glycol production in 2020 was approximately 906,000 tons, a year-on-year increase of 16.1%[33]. - Ethylene glycol sales reached 147,593.58 tons, while production was 153,178.56 tons, indicating a slight production increase of 1.80%[45]. - The gross margin for ethylene glycol dropped to -56.60%, a decrease of 39.50 percentage points year-on-year[43]. - The company’s ethylene glycol production facility operated for 319 days in the year, with a total of 20 instances of reduced output due to equipment failures[71]. - The company maintains a stable sales network, primarily supplying downstream polyester manufacturers and chemical trading companies[32]. - The company's main products, ethylene glycol and oxalic acid, account for approximately 25% of the domestic market share in their respective categories[64]. Research and Development - Research and development expenses decreased by 14.94% to CNY 41.47 million[41]. - The total R&D investment accounted for 3.86% of operating revenue, with a total of ¥4,147.35 in R&D expenses[52]. - The company plans to accelerate industrialization in the biodegradable plastics sector, having generated CNY 10.58 million in sales from this area in 2020[39]. - The company plans to expand its production capacity in the biodegradable plastics sector, targeting 10,000 tons of biodegradable modified materials and 100 tons of various film products in 2021[87]. Risks and Challenges - The company faced significant risks including policy, market, and operational risks, which are detailed in the report[8]. - The company is currently facing challenges due to a single product line and weak risk resistance, with external investments not yet yielding benefits[39]. - The company faces risks including production instability, market oversupply of ethylene glycol, and rising raw material costs due to fluctuations in international oil prices[88]. - The coal chemical industry is expected to face tighter safety and environmental regulations, impacting future growth in the oxalic acid market[35]. Financial Position and Liabilities - The total amount of cash and cash equivalents increased by 85.42% to ¥147,474,592.27 at the end of the reporting period[55]. - The company reported a significant increase in accounts receivable, which rose by 102.40% to ¥97,758,276.96[56]. - The total inventory decreased by 55.59% to ¥128,349,788.09, indicating improved inventory management[56]. - The company's short-term borrowings increased by 54.03% to ¥400,477,083.37[55]. - The company's total liabilities included a new contract liability of ¥72,025,965.54, reflecting changes in accounting standards[55]. - The company's total equity decreased from CNY 2,253,065,080.83 in 2019 to CNY 1,785,118,830.37 in 2020, a decline of about 20.8%[172]. - Total liabilities increased from CNY 734,782,712.13 in 2019 to CNY 809,428,488.63 in 2020, an increase of approximately 10.1%[171]. Governance and Compliance - The company received an unqualified audit report from Zhongxinghua Accounting Firm, with emphasis on certain matters[7]. - The company has not faced any risks of suspension or termination of listing during the reporting period[96]. - The company has maintained compliance with environmental regulations, with no investigations or penalties reported[116]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[116]. - The board of directors held five meetings during the year, with all members attending at least four meetings[146]. - There were no penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[137]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[199]. - Future guidance indicates a cautious outlook, with expectations of gradual recovery in performance metrics[199]. - The company is exploring potential mergers and acquisitions to enhance market position and operational capabilities[199]. - Investment in new technologies is prioritized to drive innovation and improve competitive advantage[199].

Financial Performance - The company's total revenue for the first half of 2020 was RMB 484.85 million, a decrease of 6.27% compared to the same period last year[21]. - The net profit attributable to shareholders was a loss of RMB 136.63 million, representing a decline of 22.63% year-on-year[21]. - Basic earnings per share were RMB -0.1344, down 22.64% from the previous year[23]. - The weighted average return on net assets was -6.25%, a decrease of 0.87 percentage points compared to the same period last year[23]. - The company reported a net loss of CNY -1,277,714,523.15, compared to a loss of CNY -1,143,045,805.41 in the previous period[83]. - The total comprehensive income for the current period decreased by 5,108.11 million RMB compared to the previous period[114]. - The company reported a total comprehensive loss of CNY 176,277,496.00 for the first half of 2020, compared to a loss of CNY 143,043,825.73 in the same period last year[91]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 111.19 million, significantly improving from RMB 0.84 million in the previous year[21]. - Cash inflow from operating activities was CNY 541,207,791.81, down from CNY 738,258,916.31 in the first half of 2019[96]. - The net cash flow from operating activities was 111,187,357.77 RMB, a significant increase compared to 844,902.28 RMB in the previous period[97]. - The ending cash and cash equivalents balance was 225,781,380.88 RMB, compared to 268,169,635.04 RMB at the end of the previous period[97]. - The total current assets amounted to CNY 100,825,788.49, an increase from CNY 72,752,060.39, representing a growth of approximately 38.5%[85]. Operational Challenges - The company faced significant operational challenges due to the COVID-19 pandemic and economic downturn, leading to a difficult business environment[33]. - Revenue decreased by 6.27% to CNY 484.85 million, primarily due to lower prices of products from Tongliao Jinmei and reduced sales of catalysts from its subsidiary[35]. - The average price of ethylene glycol dropped by 39% in the first half of 2020, impacting market conditions[28]. - The company faces significant risks including policy, market, and operational risks[8]. Investments and Subsidiaries - The company reported a net cash outflow from investment activities of CNY 24.51 million, an improvement of 28.31% compared to the previous period[35]. - The company has not made any new external investments during the reporting period[40]. - The company reported an investment of RMB 1.7 billion in Inner Mongolia Yilin Chemical Co., Ltd. and RMB 250 million in Inner Mongolia Yilin Jupeng New Energy Co., Ltd. for projects that have been non-operational for over three months[49]. - The company has a total of 7 subsidiaries included in the consolidated financial statements for the year 2020[120]. Environmental Compliance - The wastewater and flue gas emissions meet the relevant environmental standards, with all discharge indicators complying with environmental assessment requirements[60]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[66]. - The desulfurization rate of the boiler's flue gas treatment system has reached over 95%, and the dust removal efficiency is 99.9%[61]. Shareholder Information - The company has 44,008 common stock shareholders as of the end of the reporting period[70]. - Jiangsu Danhua Group holds 17.71% of the shares, totaling 180,050,050 shares, with 44,000,000 shares pledged[72]. - The company did not report any changes in the shareholding of directors, supervisors, and senior management during the reporting period[76]. Financial Position - Total assets at the end of the reporting period were RMB 3,093.81 million, an increase of 3.55% from the end of the previous year[21]. - The total owner's equity decreased to CNY 2,078,750,827.12 from CNY 2,253,065,080.83, reflecting a decline of approximately 7.7%[83]. - Total liabilities rose to CNY 1,015,059,420.72, compared to CNY 734,782,712.13, indicating an increase of about 38.2%[83]. Future Outlook - The company anticipates a recovery in the next quarter, with performance guidance suggesting a potential increase in revenue by 10%[106]. - The company plans to provide financial support of up to RMB 500 million to its subsidiary Tongliao Jinneng Coal over the next three years for daily operations and technical upgrades[58]. Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, changes in shareholders' equity, and cash flows[124]. - The company's accounting currency is Renminbi (RMB)[127]. - The company employs specific accounting policies and estimates based on its operational characteristics, as detailed in the financial report[128].

Financial Performance - The company's operating revenue for 2019 was approximately RMB 1.23 billion, a decrease of 14.21% compared to RMB 1.43 billion in 2018[21]. - The net profit attributable to shareholders for 2019 was a loss of approximately RMB 432.8 million, compared to a profit of RMB 2.06 million in 2018, marking a significant decline[21]. - The basic earnings per share for 2019 was -0.4258 yuan, compared to 0.0020 yuan in 2018, indicating a substantial decline[23]. - The weighted average return on equity for 2019 was -22.68%, a decrease of 22.78 percentage points from 0.10% in 2018[23]. - The net loss for 2019 was CNY 505,343,740.45, compared to a net profit of CNY 8,672,105.48 in 2018, indicating a significant decline in profitability[189]. - The total comprehensive income for 2019 was -208,348,050.17 RMB, compared to -16,719,609.90 RMB in 2018, highlighting a substantial decline in overall financial health[194]. Assets and Liabilities - The total assets of the company decreased by 11.92% to approximately RMB 2.99 billion at the end of 2019, down from RMB 3.39 billion at the end of 2018[22]. - The company's net asset attributable to shareholders was approximately RMB 1.69 billion, a decrease of 20.37% from RMB 2.12 billion in 2018[22]. - Total liabilities increased from ¥634,927,637.48 in 2018 to ¥734,782,712.13 in 2019, an increase of about 15.69%[182]. - The company's retained earnings showed a significant decline, moving from -¥710,245,097.31 in 2018 to -¥1,143,045,805.41 in 2019[182]. - The total equity attributable to shareholders decreased from ¥2,124,361,619.44 in 2018 to ¥1,691,531,186.76 in 2019, a decline of approximately 20.39%[182]. Cash Flow - The company reported a net cash flow from operating activities of approximately RMB 7.22 million, a drastic decrease of 98.05% from RMB 370.23 million in 2018[22]. - The cash flow from operating activities showed a negative trend, with a net cash flow decrease of approximately 1,500% year-over-year[197]. - The net cash flow from operating activities for 2019 was -22,924,965.81, a significant decline compared to -1,440,470.12 in 2018, indicating a worsening operational cash flow situation[197]. - Cash outflow from operating activities in 2019 was 22,927,949.31, significantly higher than 7,694,440.32 in 2018, highlighting increased operational expenses[197]. Production and Sales - 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 operational stability issues[31]. - Ethylene glycol sales volume was 150,883.68 tons, with a production volume of 150,474.15 tons, showing a year-on-year increase of 7.63% in sales volume[43]. - The average selling price of ethylene glycol dropped by approximately 33.7% compared to the previous year, leading to operational losses[38]. - The company did not complete its annual production plan of 200,000 tons of ethylene glycol and 82,000 tons of oxalic acid due to system stability issues, resulting in a significant production shortfall[91]. Investment and R&D - The company invested a total of RMB 1.7 billion in joint ventures for projects related to synthetic gas and fuel ethanol, which faced significant operational delays[4]. - Total R&D investment was 48.76 million yuan, which is 3.97% of total revenue[51]. - Research and development for the PGA project has made progress, with small batch trial products produced, but large-scale industrial production is still a distance away[38]. - The company has identified the PGA project as a new economic growth point, achieving a breakthrough in core technology processes[91]. Market Conditions - The domestic ethylene glycol market faced pressure with a total production capacity increase of 2.31 million tons in 2019, leading to potential oversupply issues[34]. - The overall industry outlook suggests potential overcapacity in the ethylene glycol market, with a projected demand of only 20.5 million tons against a capacity of 28.81 million tons by 2020[34]. - The average price of ethylene glycol was under pressure throughout 2019, with significant fluctuations impacting profitability[32]. Governance and Compliance - The company faced a qualified audit opinion for its 2019 financial statements due to insufficient audit evidence obtained by the auditing firm[101]. - The audit report indicates that there may be substantial uncertainties regarding the company's ability to continue as a going concern, which could impact future financial reporting[175]. - The company received an unqualified audit report on the effectiveness of its internal control over financial reporting for 2019[161]. Environmental Impact - Total sulfur dioxide emissions for the year were 48.44 tons, nitrogen oxides emissions were 207.779 tons, and particulate matter emissions were 42.088 tons, all below the permitted limits[118]. - The desulfurization project achieved a removal rate of over 95% for sulfur dioxide, with a total investment of 23 million yuan and a building area of 2902 m²[119]. - The company has not experienced any environmental pollution incidents or violations during the reporting period[122].

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 approximately -¥432.8 million, a significant decline from a profit of ¥2.06 million in 2018, representing a decrease of 21,142.78%[21]. - The basic earnings per share for 2019 was -¥0.4258, compared to ¥0.0020 in 2018, indicating a substantial decline[23]. - 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 company reported a net loss of approximately 269.43 million RMB for the year 2019, compared to a profit of 2.06 million RMB in 2018[98]. - The net profit for 2019 was -208,348,050.17 RMB, compared to a net profit of -16,719,609.90 RMB in 2018, indicating a significant increase in losses[195]. - The total comprehensive income for 2019 was -208,348,050.17 RMB, compared to -16,719,609.90 RMB in 2018, showing a worsening financial position[195]. Assets and Liabilities - The total assets of the company as of December 31, 2019, were approximately ¥2.99 billion, down 11.92% from ¥3.39 billion in 2018[22]. - The total liabilities increased from ¥634,927,637.48 in 2018 to ¥734,782,712.13 in 2019, an increase of about 15.7%[183]. - The total equity attributable to shareholders decreased from ¥2,124,361,619.44 in 2018 to ¥1,691,531,186.76 in 2019, a decline of approximately 20.4%[183]. - The company's cash and cash equivalents decreased significantly from ¥219,205,204.47 in 2018 to ¥79,533,531.89 in 2019, a drop of about 64.5%[181]. - The inventory increased from ¥157,127,002.89 in 2018 to ¥289,043,126.69 in 2019, an increase of about 83.8%[181]. Production and Sales - 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 operational stability issues[31]. - Ethylene glycol sales volume was 150,884 tons, with a production volume of 150,474 tons, showing a slight increase of 7.63% in sales volume year-over-year[43]. - The average selling price of ethylene glycol dropped approximately 33.7% compared to the previous year, leading to operational losses[38]. - The gross margin for ethylene glycol was -17.1%, reflecting a decrease of 184.67 percentage points year-over-year[42]. Investment and R&D - The company invested a total of ¥1.7 billion in joint ventures for projects including a 200,000 tons/year synthetic gas to ethylene glycol project and a 100,000 tons/year fuel ethanol project[4]. - The company's research and development expenses increased by 21.36% to CNY 48.76 million[42]. - The total R&D investment was 48.76 million yuan, which is 3.97% of the total operating revenue[51]. Market Conditions and Risks - The domestic ethylene glycol market faced pressure with a total production capacity increase of 2.31 million tons in 2019, leading to potential oversupply in 2020[34]. - The company faced significant risks including policy, market, and operational risks, which could impact future performance[7]. - The company anticipates that the ethylene glycol price volatility will impact production decisions in 2020, with potential adjustments based on market conditions[34]. - The demand for oxalic acid was significantly affected by strict safety and environmental regulations, leading to a low price environment in 2019[77]. Corporate Governance and Compliance - The company has not faced any risks of suspension or termination of its listing during the reporting period[107]. - The company has not reported any significant accounting errors that would require correction during the reporting period[105]. - The company has no significant litigation or arbitration matters pending or disclosed during the reporting period[108]. - The company has engaged Zhongxinghua Accounting Firm to audit the effectiveness of its internal control over financial reporting, receiving an unqualified opinion[162]. Shareholder Information - The company reported a total of 44,441 common stock shareholders at the end of the reporting period, an increase from 43,902 at the end of the previous month[126]. - Jiangsu Danhua Group Co., Ltd. holds 180,050,050 shares, accounting for 17.71% of total shares, with 44,000,000 shares pledged[129]. - The actual controller of the company is the Jiangsu Province Danyang Municipal Government[133]. Employee and Management - The company employed a total of 1,269 staff, with 949 in production, 19 in sales, 158 in technical roles, 19 in finance, and 124 in administration[147]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 4.2125 million yuan[143]. - The company has established a complete salary system, implementing a "position-based salary" policy and enhancing performance assessments across subsidiaries[148].

Financial Performance - The company's operating revenue for 2019 was approximately RMB 1.23 billion, a decrease of 14.21% compared to RMB 1.43 billion in 2018[21]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 269.43 million, compared to a profit of RMB 2.06 million in 2018, marking a significant decline[21]. - The net cash flow from operating activities was RMB 7.22 million, a decrease of 98.05% from RMB 370.23 million in the previous year[22]. - The total assets at the end of 2019 were approximately RMB 3.15 billion, down 6.99% from RMB 3.39 billion at the end of 2018[22]. - The net assets attributable to shareholders of the listed company decreased to approximately RMB 1.85 billion, a decline of 12.68% from RMB 2.12 billion in 2018[22]. - The basic earnings per share for 2019 was -0.2650 yuan, compared to 0.0020 yuan in 2018, indicating a significant drop[23]. - The weighted average return on net assets was -13.54%, a decrease of 13.64 percentage points from 0.10% in 2018[23]. - The company achieved an annual revenue of 1.23 billion RMB, a decrease of 14.21% compared to the previous year[39]. - The net profit attributable to the parent company was a loss of 269 million RMB[39]. - The company reported a significant increase in financial expenses, totaling CNY 17,282,453.31, compared to CNY 18,676,647.04 in the previous year[189]. - The company faced an overall comprehensive loss of -41,124,953.33 RMB for 2019, compared to -16,719,609.90 RMB in 2018, indicating a worsening financial position[194]. Production and Operations - The company produced 220,000 tons of ethylene glycol and 80,000 tons of oxalic acid, but did not meet its production targets due to operational stability issues[31]. - Ethylene glycol sales volume was 150,883.68 tons, with a production volume of 150,474.15 tons, showing a year-on-year increase of 7.63% in sales volume[43]. - The average selling price of ethylene glycol dropped by approximately 33.7% year-on-year, leading to operational losses[38]. - The production capacity of the coal-to-ethylene glycol facility is designed for 220,000 tons per year, but only 150,474 tons were produced this year[38]. - The company aims to achieve a stable production of 200,000 tons of ethylene glycol and 82,000 tons of oxalic acid in 2020, but faced significant shortfalls in the previous year due to system stability issues[91]. Market Conditions - The domestic market for ethylene glycol faced significant pressure, with prices dropping to historical lows due to increased supply and low demand, impacting overall profitability[32]. - In 2019, the total domestic production capacity for ethylene glycol increased by 2.31 million tons, reaching approximately 13.07 million tons, leading to concerns about oversupply in the market[34]. - The outlook for the ethylene glycol market remains uncertain, with potential capacity oversupply expected to keep prices low in the coming years[34]. Investments and Capital Expenditures - The company invested a total of RMB 1.9 billion in joint ventures for new projects, which faced operational delays exceeding three months[4]. - The company plans to enhance its core business by acquiring profitable assets through major asset restructuring[90]. - The company invested RMB 1.7 billion in Inner Mongolia Yilin Chemical Co., Ltd. and RMB 250 million in Inner Mongolia Yilin Jupeng New Energy Co., Ltd. for project development, which faced abnormal suspension for over three months[165]. Risks and Challenges - The company faces significant risks including policy, market, and operational risks, which may impact future performance[7]. - The company is facing challenges due to a single product line, which weakens its risk resistance capability[38]. - The company faces risks from production instability, market oversupply, and fluctuating oil prices, which could impact profitability[93]. - The coal-based ethylene glycol production process is expected to face stricter environmental regulations, impacting operational capabilities[93]. Environmental Compliance - Total sulfur dioxide emissions for the year were 48.44 tons, nitrogen oxides were 207.779 tons, and particulate matter was 42.088 tons, all below the permitted levels[118]. - The desulfurization project achieved a removal rate of over 95% for sulfur dioxide, with a total investment of 23 million RMB and a building area of 2902 m²[119]. - The wastewater treatment project, utilizing high-load aeration and anaerobic ammonia oxidation, has a total investment of 22.4 million RMB and is operating normally[120]. - The company has installed online monitoring systems for emissions and wastewater treatment, ensuring compliance with environmental standards[121]. - There were no environmental pollution incidents or violations reported during the year, and all hazardous waste was handled according to environmental assessment requirements[122]. Corporate Governance - The company has engaged in significant related party transactions totaling RMB 1,539.26 million, including sales of oxalic acid and purchases of chemical agents[110]. - The company has not disclosed any significant litigation or arbitration cases during the reporting period[108]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[109]. - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure[141]. - The independent directors raised concerns regarding the fairness of asset evaluation and protection of minority shareholders during major asset restructuring discussions[158]. Employee and Management Information - The company employed a total of 1,269 staff, with 949 in production, 19 in sales, 158 in technical roles, 19 in finance, and 124 in administration[146]. - The total remuneration for all directors, supervisors, and senior management was 4.2125 million yuan[142]. - The company has established a complete salary system, implementing a "position-based salary" policy and enhancing performance assessments across subsidiaries[147]. - In 2019, the company completed 17 special job training sessions with 139 participants, incurring a total training expense of CNY 76,390[148]. Audit and Financial Reporting - The audit report raised concerns regarding the inability to obtain sufficient evidence to determine the impact of the suspended projects on the long-term equity investment value[165]. - The audit identified revenue recognition as a key audit matter due to its significance and associated risks[167]. - The audit procedures included testing internal controls over sales and collections, and analyzing revenue and cost fluctuations[168]. - The audit firm communicated key audit matters to the governance layer, emphasizing the importance of internal control deficiencies identified during the audit[176].

2020 年第一季度报告 公司代码：600844 公司简称：丹化科技 丹化化工科技股份有限公司 2020 年第一季度报告 1 / 24 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 8 | 2020 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 3 / 24 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年度末增 减(%) 总资产 3,286,403,990.19 3,154,863,731.74 4.17 归属于上市公司 股东的净资产 1,798,258,314.27 1,854,906,112.55 -3.05 年初至报告期末 上年初至上年报告期末 比上年同期增减(%) 经营活动产生的 现金流量净额 77,172,711.15 95,928,728.40 -19.55 年初至报告期末 上年初至上年报告期末 比上年同期增减（%） 营业收入 218,121,096.00 260,475,442.30 -16.26 归属于上市公司 股东的净利润 -58,611,040. ...

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]