Financial Performance - The company's operating revenue for the first half of 2020 was approximately RMB 578.48 million, representing a 44.34% increase compared to RMB 400.77 million in the same period last year[20]. - The net profit attributable to shareholders of the listed company was RMB 3.52 million, up 7.59% from RMB 3.27 million in the previous year[20]. - The net cash flow from operating activities reached RMB 575.73 million, showing a significant increase of 106.87% compared to RMB 278.30 million in the same period last year[20]. - The total profit for the period was 5.20 million yuan, a decrease of 16.33% from 6.21 million yuan in the previous year[40]. - The company reported a net loss of ¥237,055,289.43 for the first half of 2020, an improvement from a net loss of ¥264,506,181.64 in the first half of 2019[97]. - The total comprehensive income for the first half of 2020 was CNY -477.44 thousand, compared to CNY 499.05 thousand in the same period of 2019, indicating a decline of 195.9%[101]. Assets and Liabilities - The total assets decreased by 26.66% to RMB 1.73 billion from RMB 2.35 billion at the end of the previous year[20]. - The company's total liabilities were RMB 752,016,847.63, compared to RMB 1,364,026,080.27 at the end of 2019, representing a decrease of approximately 44.9%[93]. - The company's current assets totaled RMB 869,891,817.70, down from RMB 1,467,203,198.83, indicating a reduction of about 40.7%[91]. - The company's total equity increased to ¥581,092,486.01 from ¥553,641,593.80, reflecting a growth of 5.0%[97]. Revenue and Costs - Operating costs rose by 63.15% year-on-year, totaling ¥467,691,381.26, up from ¥286,670,184.96[42]. - The gross profit margin for the first half of 2020 was approximately 1.8%, compared to 0.3% in the first half of 2019, indicating improved profitability[99]. - The company reported a total sales revenue of 10,835.99 million RMB for the first half of 2020, with a slight decrease of 1.36% compared to the previous period[48]. Market and Sales - The company exported approximately 245,200 tons of concentrated apple juice in the first half of 2020, representing a year-on-year increase of about 140.16%[29]. - The total export value of concentrated apple juice reached approximately 254 million USD, marking a year-on-year growth of about 98.44%[29]. - The company maintains long-term strategic partnerships with major global beverage companies, including Coca-Cola and Nestlé, with over 80% of its products sold overseas[26]. Risks and Challenges - The company faces risks related to raw material price fluctuations, rising logistics costs, and sales uncertainties, which are detailed in the risk section of the report[7]. - The company faced a significant risk of raw material price fluctuations due to adverse weather conditions affecting apple and pear production in the western and Hebei regions, potentially leading to increased production costs[50]. - Logistics costs are expected to rise due to global shipping disruptions caused by the COVID-19 pandemic, impacting overall operational expenses[51]. - Sales uncertainty is a concern as some clients have slowed down their order fulfillment or requested price reductions due to the pandemic, particularly affecting the export of concentrated apple juice[52]. Environmental and Social Responsibility - The company has implemented significant environmental upgrades to meet new pollution discharge standards, ensuring compliance with national regulations[38]. - The company provided financial support of 30.37 million RMB for poverty alleviation efforts, including a donation of 2.6 million RMB to the Wuhan epidemic area[63]. - The company has actively participated in e-commerce poverty alleviation and educational support initiatives in designated poverty-stricken counties[68]. Shareholder Information - The company reported a total of 18,160 common stock shareholders as of the end of the reporting period[82]. - The largest shareholder, China Development Investment Group Co., Ltd., holds 116,855,469 shares, accounting for 44.57% of the total shares[84]. - The second-largest shareholder, Rushan Economic Development Investment Company, holds 8,190,000 shares, which are currently frozen[84]. Research and Development - Research and development expenses increased by 14.68% year-on-year, reaching ¥3,882,785.75 from ¥3,385,830.60[42]. - The investment income for the first half of 2020 was CNY 33.57 million, compared to CNY 11.34 million in the same period of 2019, marking an increase of 196.1%[103]. Corporate Governance - The company has not reported any significant litigation or arbitration matters during the reporting period, reflecting a stable legal standing[58]. - The controlling shareholder, China National Investment Corporation, maintained a good credit status without any major debt repayment issues[58]. - The company has evaluated its ability to continue as a going concern and found no significant doubts regarding its sustainability[141].

Financial Performance - Operating income increased by 41.08% to CNY 261,183,663.48 year-on-year[6] - The net profit attributable to shareholders decreased by 31.16% to CNY 1,032,169.81[6] - The company reported a basic and diluted earnings per share of CNY 0.0039, down 31.58% from the previous year[6] - Net profit attributable to shareholders decreased by 31% to ¥1.03 million in Q1 2020 from ¥1.50 million in Q1 2019, mainly due to a decline in gross profit margin[14] - The company reported a net loss of CNY 265,730,627.14 in Q1 2020, compared to a net loss of CNY 264,506,181.64 in Q4 2019, indicating a slight worsening of financial performance[25] - The total comprehensive income for Q1 2020 was approximately -¥11.41 million, compared to -¥3.02 million in Q1 2019, indicating a decline[28] Cash Flow - Net cash flow from operating activities surged by 98.98% to CNY 295,573,488.86 compared to the same period last year[6] - Cash received from sales of goods and services increased by 53% to ¥407.95 million in Q1 2020 from ¥265.80 million in Q1 2019, reflecting higher cash inflows[16] - The net cash inflow from operating activities for Q1 2020 was CNY 295,573,488.86, a significant increase from CNY 148,544,241.67 in Q1 2019, representing a growth of approximately 99%[32] - Total cash inflow from operating activities amounted to CNY 466,145,636.92, compared to CNY 330,726,000.16 in the previous year, indicating a year-over-year increase of about 41%[32] - The cash flow from operating activities for Q1 2020 was approximately ¥407.95 million, compared to ¥265.80 million in Q1 2019, an increase of 53.3%[31] Assets and Liabilities - Total assets decreased by 9.16% to CNY 2,137,704,011.65 compared to the end of the previous year[6] - The company's total liabilities decreased from CNY 1,364,026,080.27 in 2019 to CNY 1,159,934,868.36 in Q1 2020, a reduction of approximately 15.0%[22] - Current assets totaled CNY 1,130,604,369.75 as of March 31, 2020, down from CNY 1,253,671,194.63 at the end of 2019, a decline of about 9.8%[23] - The total assets as of Q1 2020 were CNY 2,353,203,095.84, remaining stable compared to the previous reporting period[36] - Total liabilities amounted to CNY 1,364,026,080.27, with current liabilities at CNY 1,216,043,891.36 and non-current liabilities at CNY 147,982,188.91[39] Shareholder Information - The number of shareholders reached 17,935, with the largest shareholder holding 44.57% of the shares[8] - The total equity attributable to shareholders decreased slightly from CNY 842,792,052.54 in 2019 to CNY 829,780,902.70 in Q1 2020, a decline of about 1.4%[22] Operating Costs and Revenue - Operating costs increased by 61% to ¥211.25 million in Q1 2020 from ¥131.34 million in Q1 2019, also attributed to higher sales volume[14] - Total operating revenue for Q1 2020 was CNY 261,183,663.48, an increase of 41.0% compared to CNY 185,127,519.55 in Q1 2019[26] - Total operating costs for Q1 2020 were CNY 259,326,251.11, up from CNY 184,360,433.91 in Q1 2019, reflecting a growth of 40.7%[26] Research and Development - Research and development expenses for Q1 2020 were CNY 1,652,610.53, compared to CNY 1,324,202.57 in Q1 2019, reflecting an increase of 24.8%[26] - The company reported a significant increase in research and development expenses, which were approximately ¥1.65 million in Q1 2020, compared to ¥1.32 million in Q1 2019, a rise of 24.8%[29] Other Income and Expenses - Government subsidies recognized in the current period amounted to CNY 1,138,090.76, primarily from the Beijing Municipal Bureau of Commerce[8] - The company reported a significant increase in other income, with investment income improving by 71% to a loss of ¥112.25 thousand in Q1 2020 from a loss of ¥393.52 thousand in Q1 2019[14] - The company incurred credit impairment losses of approximately ¥348.10 million in Q1 2020, a significant reduction from ¥4.42 million in Q1 2019[29]

Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of CNY 3,597,291.99, a decrease of 32.43% compared to CNY 5,323,764.78 in 2018[4] - The total operating revenue for 2019 was CNY 1,330,101,539.51, representing a year-on-year increase of 38.09% from CNY 963,190,630.07 in 2018[18] - The basic earnings per share for 2019 was CNY 0.0137, down 32.51% from CNY 0.0203 in 2018[19] - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of CNY -7,046,033.01 in 2019, a decrease of 390.96% compared to CNY 2,421,654.41 in 2018[18] - The company's total profit for the year was CNY 2,021,930, which represents a 32.25% increase from CNY 1,528,830 in the previous year[39] - The company reported a net profit of 1,304.63 million RMB for Shandong Luling Juice Co., Ltd. in 2019[77] - The total comprehensive income for 2019 was CNY 15,909,494.12, compared to CNY 19,257,114.83 in 2018, indicating a decrease of 17.3%[198] Cash Flow and Investments - The company reported a net cash flow from operating activities of CNY -195,703,500.88 in 2019, a significant decline compared to CNY -23,142,146.52 in 2018, representing a decrease of 745.66%[18] - Cash received from operating activities increased by 42.79% to ¥12,889.83 million, mainly due to government subsidies[57] - Cash paid for fixed assets increased by 36.08% to ¥56,948.23 million, indicating higher capital expenditures[57] - The company acquired a subsidiary, resulting in a cash outflow of ¥3,367.73 million, a decrease of 97.18% compared to the previous year[58] - Cash and cash equivalents increased by 107.51% to ¥111,395.52 million, improving liquidity[59] - The company reported a significant increase in accounts payable, which rose to CNY 111,287,280.46 from CNY 64,105,269.32, reflecting a growth of approximately 73.5%[188] Market and Sales Performance - The company exported over 80% of its products, primarily to markets in the US, Japan, Europe, Australia, Canada, and Russia[25] - The domestic market saw a remarkable growth of approximately 70% in 2019, contributing to the overall sales increase[34] - The company expanded its market presence outside the U.S. in response to increased tariffs, successfully mitigating the impact of a 25% tariff on juice exports[39] - The company has seen a stable export volume of concentrated apple juice, averaging between 400,000 to 600,000 tons annually since 2011[67] - Exports of concentrated juice products from China to the US decreased by approximately 59% due to ongoing US-China trade tensions[85] Research and Development - The company increased its R&D expenditure by 33% in 2019, focusing on high-end fruit and vegetable juice products[37] - The company established partnerships with research institutions, resulting in the application of 11 patents, including 2 international invention patents[37] - R&D expenses rose by 33.71% year-on-year to ¥769.86 million, reflecting the company's increased investment in research and development[52] - The company is investing 50 million yuan in R&D for new technologies aimed at enhancing product quality[146] Environmental Responsibility - The company invested over CNY 17 million in environmental upgrades for wastewater treatment and emissions control[36] - The company is committed to environmental responsibility, with all wastewater treated to meet standards before entering municipal sewage systems[114] - The company has established a wastewater treatment plant with a processing capacity of 2,500 m³/day, which passed environmental protection acceptance in December 2007[122] - The company has implemented online monitoring systems for COD, ammonia nitrogen, and flow at wastewater discharge outlets to ensure real-time self-monitoring[126] Corporate Governance - The company held 2 shareholder meetings and 7 board meetings during the reporting period, ensuring effective governance[157] - A total of 56 announcements were disclosed in compliance with information disclosure obligations, including 6 periodic reports[158] - The audit committee held 6 meetings during the year, focusing on external audit oversight and evaluation, as well as reviewing significant related party transactions and investment projects[165] - The company did not identify any illegal or irregular activities in financial reporting, dividend decisions, related transactions, or external guarantees during the reporting period[167] Strategic Initiatives - The company will initiate the preparation of its "14th Five-Year" development plan in 2020 to enhance profitability and competitiveness[81] - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[146] - The company plans to enhance its digital marketing efforts, increasing the budget by 25% to improve customer engagement[146] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million yuan allocated for potential deals[146] Risks and Challenges - The company faces significant risks including raw material price fluctuations, Sino-U.S. trade tensions, and food safety concerns, which are detailed in the report[4] - The company faced challenges from US-China trade tensions but successfully diversified its market structure, reducing reliance on the US market[34] Shareholder Information - The largest shareholder, China National Development Investment Corporation, holds 44.57% of the shares, totaling 116,855,469 shares[140] - The second largest shareholder, Yantai Economic Development Investment Company, holds 3.12% of the shares, totaling 8,190,000 shares, which are currently frozen[136] - The company has no strategic investors or general legal entities that have become top ten shareholders through new share placements[137]

一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 2019 年第三季度报告 公司代码：600962 公司简称：国投中鲁 国投中鲁果汁股份有限公司 2019 年第三季度报告 1 / 28 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 10 | 2019 年第三季度报告 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人李俊喜、主管会计工作负责人全宇红及会计机构负责人（会计主管人员）张俊祯 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 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(%) | | ...

Financial Performance - The company's operating revenue for the first half of 2019 was approximately RMB 400.77 million, representing a 0.84% increase compared to RMB 397.45 million in the same period last year[20]. - The net profit attributable to shareholders decreased by 50.80% to RMB 3.27 million from RMB 6.65 million year-on-year[20]. - The net cash flow from operating activities was RMB 278.30 million, down 34.25% from RMB 423.30 million in the previous year[20]. - The total assets decreased by 14.72% to RMB 1.67 billion from RMB 1.95 billion at the end of the previous year[20]. - The basic earnings per share dropped by 50.79% to RMB 0.0125 from RMB 0.0254 in the same period last year[21]. - The weighted average return on net assets decreased by 0.41 percentage points to 0.39% compared to the previous year[21]. - The company reported a total sales volume of 5,000.00 tons of concentrated juice, generating revenue of 21,453.61 million RMB, with a profit of 15,742.73 million RMB[51]. - The company reported a net profit of ¥5,935,019.48 for the period, compared to ¥2,661,284.82 in the previous year, showing a significant increase[104]. - The total profit for the first half of 2019 was CNY 6,214,893.09, a decrease of 23.5% from CNY 8,126,530.57 in the first half of 2018[110]. - The company's total comprehensive income for the first half of 2019 was CNY 499,050.06, a significant decline from CNY 8,546,388.02 in the previous year[111]. Cash Flow and Liquidity - Cash and cash equivalents increased by 45.69% to CNY 78,212,532.64, attributed to higher bank deposits[44]. - Net cash flow from operating activities decreased by 34.25% to CNY 278,303,535.69, mainly due to increased cash payments for goods and services[42]. - Cash inflow from sales of goods and services was CNY 456,734,519.16, a decline of 11.6% from CNY 516,943,905.19 in the first half of 2018[116]. - The ending balance of cash and cash equivalents was CNY 78,212,532.64, down from CNY 128,386,090.52 at the end of the first half of 2018[120]. - The company reported a net cash increase of CNY 24,529,550.39 for the first half of 2019, contrasting with a decrease of CNY 111,837,972.37 in the same period of 2018[118]. Assets and Liabilities - The company's current assets totaled ¥806,308,309.60, down from ¥1,067,324,404.47 in December 2018, representing a decline of approximately 24.4%[102]. - Total liabilities decreased to ¥692,883,692.70 from ¥974,979,928.27, a reduction of about 29.0%[104]. - The company's equity attributable to shareholders increased slightly to ¥838,826,278.72 from ¥838,692,695.45[104]. - The company's total assets amounted to ¥1,666,650,264.21, a decrease from ¥1,954,274,579.75 at the end of 2018[102]. - Short-term borrowings decreased to ¥481,919,944.84 from ¥687,286,736.33, a decline of approximately 30.0%[103]. Market and Product Development - The company is actively developing new products, with over 30 small variety fruit and vegetable juice products in the research and trial production stages[36]. - The company completed the acquisition of 100% of the Polish APPOL Group in 2018, enhancing its production capacity and balancing raw material costs[32]. - The company is focusing on expanding its market presence in emerging markets such as Europe, the Middle East, South Africa, and Southeast Asia[35]. - The company exported over 80% of its products to markets including the USA, Japan, Europe, Australia, Canada, and Russia[26]. - The company is expanding its product offerings and enhancing market presence through increased R&D efforts and new product development[42]. Environmental Compliance - Five subsidiaries were listed as key pollutant discharge units by local environmental protection departments, indicating significant environmental compliance obligations[70]. - The company’s wastewater treatment facilities ensure that all production wastewater meets standards before being discharged into municipal sewage systems[71]. - The company has implemented gas boilers in four subsidiaries to reduce emissions, complying with air pollution standards[72]. - The company has established a wastewater treatment station with a processing capacity of 2500 m³/day, which passed environmental acceptance in December 2007[78]. - The company reported no instances of exceeding pollutant discharge limits or receiving administrative penalties during the reporting period[82]. Risks and Challenges - The company faces risks from US-China trade tensions, raw material price fluctuations, and exchange rate volatility[6]. - The company anticipates fluctuations in raw material prices, particularly for apples, which significantly impact production costs and operating profits[54]. - The company experienced a significant increase in interest expenses, which reached CNY 14,829,631.47, compared to CNY 8,345,879.54 in the same period last year[110]. - The company is actively communicating with US government departments to address tariff-related challenges and is focusing on expanding its market share in emerging markets[53]. Shareholder Information - As of the report date, the total number of ordinary shareholders is 17,833[93]. - The largest shareholder, China Development Investment Corporation, holds 116,855,469 shares, representing 44.57% of the total shares[95]. - The company has not experienced any changes in its total share capital or share structure during the reporting period[89]. - The company has not proposed any profit distribution or capital reserve increase for the first half of the year[58]. - The company has set aside ¥6.03 million for profit distribution to shareholders, demonstrating a commitment to returning value to investors[127]. Accounting and Financial Policies - The company has made changes to accounting policies, including reclassifying financial assets, with no impact on the financial statements[84]. - The company’s financial statements comply with the requirements of the accounting standards and reflect its financial position accurately[155]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[161]. - The company prepares consolidated financial statements based on the financial statements of the parent and its subsidiaries, in accordance with relevant accounting standards[166]. - The company has not disclosed any significant accounting errors that require retrospective restatement[88].

[Item 1. Important Notice](index=3&type=section&id=Item%201.%20Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's 2019 first-quarter report has not been audited[5](index=5&type=chunk) - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, assuming legal responsibility[7](index=7&type=chunk) [Item 2. Company Overview](index=3&type=section&id=Item%202.%20Company%20Overview) This section provides an overview of the company's key financial performance and shareholder structure for the first quarter of 2019 [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2019, the company experienced declines in key financial metrics, including a 6.39% decrease in operating revenue, a 33.71% drop in net profit attributable to shareholders, and a shift to loss in non-recurring net profit 2019 Q1 Key Financial Data | Metric | Current Period (USD) | Prior Year Period (USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,127,519.55 | 197,765,697.64 | -6.39% | | Net Profit Attributable to Shareholders | 1,499,409.68 | 2,261,781.78 | -33.71% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -268,474.54 | 2,234,576.23 | -112.01% | | Net Cash Flow from Operating Activities | 148,544,241.67 | 229,722,549.65 | -35.34% | | Basic Earnings Per Share (USD/share) | 0.0057 | 0.0086 | -33.72% | | Weighted Average Return on Net Assets (%) | 0.18% | 0.27% | Decrease 0.09 percentage points | | **Asset Status** | **End of Current Period (USD)** | **End of Prior Year (USD)** | **Change (%)** | | Total Assets | 1,763,091,539.47 | 1,954,274,579.75 | -9.78% | | Net Assets Attributable to Shareholders | 836,650,361.05 | 838,692,695.45 | -0.24% | 2019 Q1 Non-recurring Gains and Losses | Item | Amount (USD) | Description | | :--- | :--- | :--- | | Government Grants | 355,077.48 | Mainly for technical renovation interest subsidies | | Other Non-operating Income/Expenses | 1,534,151.10 | - | | Impact on Minority Shareholder Equity (After Tax) | -118,081.03 | - | | Income Tax Impact | -3,263.33 | - | | **Total** | **1,767,884.22** | - | [2.2 Shareholder Information as of the End of the Reporting Period](index=4&type=section&id=2.2%20Shareholder%20Information%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 19,911 shareholders, with State Development and Investment Group Co., Ltd. as the controlling shareholder, and some top shareholder stakes frozen - As of the end of the reporting period, the company had **19,911 shareholders**[11](index=11&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shares Held | Holding Ratio (%) | Share Status | | :--- | :--- | :--- | :--- | | State Development and Investment Group Co., Ltd. | 116,855,469 | 44.57 | Unrestricted | | Rushan Economic Development Investment Company | 8,190,000 | 3.12 | Frozen | | Rushan Guoxin Asset Management Co., Ltd. | 3,328,748 | 1.27 | Frozen | [Item 3. Significant Events](index=5&type=section&id=Item%203.%20Significant%20Events) This section details significant changes in the company's key financial statement items and the underlying reasons during the reporting period [3.1 Analysis of Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20and%20Reasons%20for%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, several accounting items showed significant changes, with notable shifts in cash, prepayments, R&D expenses, and cash flow from operations due to business activities and a new subsidiary Major Balance Sheet Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash and Bank Balances | -44% | Primarily due to a decrease in bank deposits | | Prepayments | 68% | Primarily due to increased non-crushing season shutdown expenses | | Other Current Assets | -42% | Primarily due to a decrease in input VAT credit | | Advances from Customers | -89% | Primarily due to a decrease in advance receipts for goods | Major Income Statement Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Research and Development Expenses | 228% | Primarily due to a year-on-year increase in R&D project expenditures | | Financial Expenses | 74% | Primarily due to a year-on-year increase in exchange losses | | Other Income | 3422% | Primarily due to a year-on-year increase in government grants related to daily operations | | Non-operating Income | 7352% | Primarily due to a year-on-year increase in non-recurring income | | Net Profit Attributable to Parent Company Shareholders | -34% | Primarily due to a year-on-year decrease in net profit attributable to parent company shareholders | Major Cash Flow Statement Changes | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Cash Paid for Goods and Services | 391% | Primarily due to the acquisition of a new non-common control subsidiary | | Taxes and Surcharges Paid | 147% | Primarily due to a year-on-year increase in VAT paid | | Cash Paid for Debt Repayment | -45% | Primarily due to a year-on-year decrease in short-term loan repayments | [Item 4. Appendix](index=8&type=section&id=Item%204.%20Appendix) This section provides the company's unaudited consolidated and parent company financial statements for the first quarter of 2019, serving as the foundational data for the report's analysis [4.1 Financial Statements](index=8&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for the first quarter of 2019, providing the detailed basis for financial analysis - This section provides the unaudited consolidated and parent company's three major financial statements, serving as the source of core data for this report[20](index=20&type=chunk)[26](index=26&type=chunk)[32](index=32&type=chunk) [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, the company's total assets were $1.76 billion, a 9.78% decrease from the beginning of the year; total liabilities were $786.81 million, a 19.30% decrease; and equity attributable to parent company shareholders was $836.65 million, a slight decrease of 0.24% Consolidated Balance Sheet Key Items | Item | March 31, 2019 (USD) | December 31, 2018 (USD) | | :--- | :--- | :--- | | Total Assets | 1,763,091,539.47 | 1,954,274,579.75 | | Total Liabilities | 786,812,478.22 | 974,979,928.27 | | Total Equity Attributable to Parent Company Owners | 836,650,361.05 | 838,692,695.45 | | Total Owners' Equity | 976,279,061.25 | 979,294,651.48 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, the parent company's total assets were $1.47 billion, total liabilities were $904.72 million, and owners' equity was $567.05 million, indicating a higher debt ratio and negative retained earnings compared to consolidated figures Parent Company Balance Sheet Key Items | Item | March 31, 2019 (USD) | December 31, 2018 (USD) | | :--- | :--- | :--- | | Total Assets | 1,471,775,684.06 | 1,476,646,941.44 | | Total Liabilities | 904,721,614.71 | 888,915,978.54 | | Total Owners' Equity | 567,054,069.35 | 587,730,962.90 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, the company achieved operating revenue of $185.13 million, a 6.39% YoY decrease; total operating costs were $184.25 million, a 5.09% YoY decrease; and net profit attributable to parent company shareholders was $1.50 million, a significant 33.71% YoY decrease Consolidated Income Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Total Operating Revenue | 185,127,519.55 | 197,765,697.64 | | Total Operating Costs | 184,245,077.45 | 194,129,196.35 | | Total Profit | 2,378,148.72 | 3,663,787.07 | | Net Profit | 526,153.86 | 3,663,787.07 | | Net Profit Attributable to Parent Company Shareholders | 1,499,409.68 | 2,261,781.78 | [Parent Company Income Statement](index=15&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, the parent company's operating revenue was $57.82 million, a significant 67.25% YoY decrease, resulting in a net loss of -$20.68 million, a severe shift from a profit in the prior year Parent Company Income Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Operating Revenue | 57,817,601.50 | 176,514,188.40 | | Operating Profit | -20,676,893.55 | 137,053.25 | | Net Profit | -20,676,893.55 | 147,588.93 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, net cash flow from operating activities was $148.54 million, a 35.34% YoY decrease; net cash outflow from investing activities was $7.37 million; and net cash outflow from financing activities was $161.12 million Consolidated Cash Flow Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 148,544,241.67 | 229,722,549.65 | | Net Cash Flow from Investing Activities | -7,369,363.02 | -19,876,771.92 | | Net Cash Flow from Financing Activities | -161,123,590.42 | -287,358,547.50 | | Net Increase in Cash and Cash Equivalents | -23,562,918.43 | -80,386,914.07 | | Cash and Cash Equivalents at Period End | 30,120,063.82 | 159,837,148.82 | [Parent Company Cash Flow Statement](index=18&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, the parent company's net cash flow from operating activities was $138.53 million, a 36.22% YoY decrease; net cash outflow from financing activities was $156.18 million, primarily for debt repayment Parent Company Cash Flow Statement Key Items | Item | 2019 Q1 (USD) | 2018 Q1 (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 138,533,499.72 | 218,792,209.57 | | Net Cash Flow from Investing Activities | -278,364.50 | -303,300.00 | | Net Cash Flow from Financing Activities | -156,178,510.42 | -287,358,547.50 | | Net Increase in Cash and Cash Equivalents | -18,177,816.42 | -71,399,821.20 | | Cash and Cash Equivalents at Period End | 17,324,046.67 | 146,780,977.38 |

Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of RMB 5,323,764.78, a decrease of 35.98% compared to RMB 8,315,852.81 in 2017[4]. - The total operating revenue for 2018 was RMB 963,190,630.07, reflecting a decline of 2.29% from RMB 985,764,506.57 in the previous year[19]. - The net cash flow from operating activities was negative RMB 23,142,146.52, a significant decrease of 169.88% compared to a positive cash flow of RMB 33,117,314.28 in 2017[19]. - Basic earnings per share decreased by 35.96% to CNY 0.0203 in 2018 from CNY 0.0317 in 2017[20]. - The weighted average return on equity fell to 0.64% in 2018, down from 1.01% in 2017, a decrease of 0.37 percentage points[20]. - The company reported a significant increase in research and development expenses by 22.46%, totaling CNY 5.76 million[44]. - The company achieved a profit total of CNY 15.29 million, an increase of 8.38% from CNY 14.11 million in the previous year[42]. - The company reported a total comprehensive income of CNY 19,257,114.83, compared to CNY 10,614,148.93 in the previous year, indicating a growth of 81.5%[189]. Assets and Liabilities - The company's total assets increased by 6.05% to RMB 1,954,274,579.75 at the end of 2018, up from RMB 1,842,748,923.14 at the end of 2017[19]. - The net assets attributable to shareholders rose to RMB 838,692,695.45, marking a 1.66% increase from RMB 825,019,719.51 in 2017[19]. - Total liabilities increased to CNY 974,979,928.27 from CNY 872,906,589.72, an increase of approximately 11.71%[181]. - Cash and cash equivalents decreased significantly to CNY 35,501,863.09 from CNY 222,754,738.58, a decline of approximately 84.06%[183]. - Accounts receivable increased to CNY 340,690,425.51 from CNY 286,616,254.61, reflecting a growth of about 18.86%[183]. - Inventory increased to CNY 99,902,199.72 from CNY 19,102,097.10, a significant rise of approximately 414.66%[184]. Acquisitions and Market Expansion - The company completed the acquisition of Poland's Appol Group, extending its production capacity to Europe, which is the world's second-largest apple concentrate market[27]. - The acquisition of Appol Group resulted in foreign assets of CNY 302.7361 million, accounting for 15.49% of total assets[31]. - The company completed the acquisition of 100% equity in Poland's APPOL Group, marking the establishment of overseas production capacity and enhancing international market competitiveness[34]. - The company expanded its market presence in Australia, South Africa, Russia, and Southeast Asia while also focusing on domestic market growth to mitigate sales risks[38]. Risks and Challenges - Major risks identified include raw material price fluctuations, Sino-U.S. trade tensions, and food safety concerns, with detailed mitigation strategies discussed in the report[5]. - The company faced a 30% reduction in apple raw material supply due to unprecedented spring frost, impacting production costs[42]. - The US-China trade tensions have led to a decrease in exports of concentrated juice products to the US, impacting the company's operations[88]. Research and Development - The company holds 42 patents, including 1 international invention patent and 12 national invention patents, reflecting its commitment to research and development[35]. - The company reported an increase in research and development expenses, with amounts of 5,757,766.91 RMB for the current period compared to 4,701,602.12 RMB for the previous period[95]. Environmental Responsibility - Five subsidiaries of the company were listed as key pollutant discharge units by local environmental protection departments in 2018[110]. - The company has implemented environmental management systems in accordance with ISO14001 standards, including emergency response plans for environmental incidents[121]. - The company has established a comprehensive food safety management system to mitigate food safety risks and ensure product quality[89]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,709, an increase from 18,324 at the end of the previous month[129]. - The largest shareholder, China National Development Investment Corporation, holds 44.57% of the shares, totaling 116,855,469 shares[139]. - The company has no actual controller other than the controlling shareholder, China National Development Investment Corporation[134]. Management and Governance - The company is led by experienced executives with backgrounds in finance and investment, indicating a strong management team[144]. - The company has a diverse board with members having extensive experience in various sectors, enhancing strategic decision-making capabilities[144]. - The company has established a performance evaluation mechanism for senior management, linking compensation to operational performance and market conditions[162]. Financial Auditing and Compliance - The company engaged Tianzhi International Accounting Firm for auditing services, with a fee of 940,000 RMB for the year[98]. - The financial statements for the year ended December 31, 2018, were audited and deemed to fairly reflect the company's financial position and operating results[165]. - The company has not reported any violations in financial matters, dividend decisions, related transactions, or external guarantees[160].

Financial Performance - Operating revenue for the first nine months decreased by 7.09% to CNY 589,712,179.19 year-on-year[6] - Net profit attributable to shareholders increased significantly by 2,397.41% to CNY 6,574,185.12 for the first nine months[6] - Basic and diluted earnings per share increased to CNY 0.0251, up 2,410.00% compared to the same period last year[7] - The company reported a net profit of CNY 4,121,739.22, compared to a loss of CNY 2,452,445.90 in the previous period[24] - Net profit for Q3 2018 was ¥1,914,964.89, compared to a net loss of ¥4,360,275.84 in Q3 2017[33] - Net profit for the third quarter was CNY 17,440,385.68, compared to a net loss of CNY 4,626,361.09 in the same quarter last year[36] - The company achieved a gross profit margin of approximately 11.5% for the first nine months, compared to 6.5% in the same period last year[35] Cash Flow and Liquidity - Net cash flow from operating activities increased by 2.88% to CNY 311,708,236.49 year-on-year[6] - Cash and cash equivalents decreased by 47% from CNY 244,798,002.89 to CNY 130,275,523.48, primarily due to a reduction in bank deposits[13] - Cash inflow from operating activities totaled $769.41 million, a decrease of 7.4% from $830.78 million in the previous year[43] - Net cash flow from operating activities was $330.42 million, significantly up from $181.65 million year-over-year, representing an increase of 81.9%[43] - The ending balance of cash and cash equivalents was $106.35 million, up from $78.65 million year-over-year, indicating improved liquidity[43] Assets and Liabilities - Total assets decreased by 12.13% to CNY 1,619,242,288.70 compared to the end of the previous year[6] - Total current assets decreased to CNY 802,252,054.57 from CNY 1,141,921,009.26, a decline of approximately 29.7%[23] - Total liabilities decreased to CNY 647,463,768.61 from CNY 872,906,589.72, reflecting a decline of around 25.8%[24] - Non-current assets increased to CNY 816,990,234.13 from CNY 700,827,913.88, an increase of approximately 16.6%[23] - Long-term borrowings increased by 100% to CNY 86,119,325.00, primarily due to additional acquisition loans[14] Shareholder Information - The total number of shareholders reached 19,866 by the end of the reporting period[9] - The largest shareholder, China Development Investment Corporation, holds 44.57% of the shares[9] Investment Activities - Investment cash payments amounted to CNY 142,835,370.00 for the acquisition of the Polish Appol Group, reflecting a strategic market expansion[17] - Other non-current assets surged by 1438% from CNY 9,399,683.45 to CNY 144,565,053.45, mainly due to the investment payment for the acquisition of Appol Group[13] - Investment activities resulted in a net cash outflow of CNY -162,583,425.53 for the first nine months, compared to CNY -36,439,863.09 in the previous year[40] Operating Costs and Expenses - Total operating costs for the first nine months were CNY 460,636,813.17, down from CNY 486,227,310.83 in the previous year[35] - Research and development expenses for Q3 2018 were ¥1,263,813.89, significantly higher than ¥130,437.31 in Q3 2017[32] - Research and development expenses increased to CNY 3,678,500.70 for the first nine months, compared to CNY 2,242,142.88 in the same period last year[35] Tax and Financial Management - The company reported a 38% decrease in tax payments, from CNY 42,759,573.50 to CNY 26,409,495.18, due to reduced tax liabilities[17] - The company paid $536.25 million in debt repayments, an increase from $466.92 million in the same period last year, indicating a focus on debt management[43]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥397,445,072.82, a decrease of 7.17% compared to ¥428,140,399.63 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2018 was ¥6,654,174.02, an increase of 311.30% from ¥1,617,830.79 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥5,281,731.27, up 933.62% from ¥510,991.28 in the same period last year[20]. - The total revenue from sales of goods and services was CNY 459,170,061.26, compared to CNY 434,775,031.37 in the previous year, reflecting an increase of approximately 5.6%[115]. - The company reported a significant increase in sales for its subsidiaries, with Shanxi Guotou Zhonglu Juice Co., Ltd. achieving CNY 15,987.49 million in revenue[53]. - The company’s subsidiary, Yunnan Guotou Zhonglu Juice Co., Ltd., reported a revenue of CNY 6,435.03 million, with a net profit of CNY 2,456.11 million[53]. Cash Flow and Liquidity - The net cash flow from operating activities was ¥423,299,255.81, reflecting a 2.87% increase from ¥411,498,671.81 in the previous year[20]. - Cash and cash equivalents decreased by 45.66% to ¥133,017,710.52, down from ¥244,798,002.89[45]. - The ending balance of cash and cash equivalents was CNY 113,941,643.24, down from CNY 104,106,435.89 at the end of the previous period[116]. - The company has established a liquidity loan agreement with a central enterprise poverty alleviation fund, with a limit of CNY 200 million per year for the next three years[61]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,467,629,649.43, a decrease of 20.36% from ¥1,842,748,923.14 at the end of the previous year[20]. - The total current assets decreased from 1,141,921,009.26 RMB to 649,048,236.60 RMB, a decline of approximately 43%[98]. - The total liabilities decreased from 872,906,589.72 RMB to 496,910,927.99 RMB, a reduction of about 43%[99]. - The company's total equity increased to CNY 602,849,934.16 from CNY 583,827,103.91, an increase of 3.8%[104]. Environmental Compliance - The company is enhancing its environmental compliance by advancing coal-to-gas projects and wastewater treatment initiatives in response to national regulations[39]. - The company has completed coal-to-gas conversions for several subsidiaries, enhancing its environmental sustainability efforts[69]. - The wastewater from subsidiaries is treated to meet standards before being discharged into urban sewage systems, ensuring compliance with environmental regulations[69]. - The company has implemented a series of environmental management systems in accordance with ISO14001 standards, including emergency response plans for environmental incidents[84]. Acquisitions and Investments - The company completed the acquisition of 100% equity of the Polish Appol Group for a total consideration of PLN 68.86 million and shareholder loans with interest of PLN 10.70 million[29]. - The company established a wholly-owned subsidiary in Poland, Zhonglu (Europe) sp.z o.o., with a registered capital of 5,000 PLN[49]. - The company reported a significant increase in long-term prepaid expenses, attributed to new agricultural project costs[46]. - Other non-current assets increased significantly by 1,437.98% to ¥144,565,053.45, due to investments in the acquisition of Appol Group[46]. Shareholder and Equity Information - The company has not proposed any profit distribution or capital reserve transfer to share capital during the reporting period[4]. - The top shareholder, China Development Investment Group Co., Ltd., holds 116,855,469 shares, representing 44.57% of total shares[92]. - The company has a total of 26,221,000 shares outstanding, with a par value of RMB 1 per share[130]. - The company’s capital stock remains stable at 262,210,000.00 RMB, indicating no changes in share capital during the period[121]. Risk Management - The company faced a potential risk from US trade policies, with a proposed 25% tariff on CNY 200 billion worth of Chinese goods, including concentrated fruit and vegetable juice products[55]. - The company is actively seeking legal protection and engaging with industry associations to address the impact of the proposed tariffs[55]. - The company has not reported any major litigation or arbitration matters during the reporting period[59]. Research and Development - R&D expenditure decreased by 39.49% to CNY 2.41 million, reflecting a shift in focus after significant investments in previous years[43]. Accounting Policies - The accounting policies comply with the relevant enterprise accounting standards, reflecting the company's financial position and operating results accurately[138]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with monetary items on the balance sheet converted at the spot exchange rate on the balance sheet date[152]. - The company uses the aging analysis method for bad debt provision, with a 100% provision for receivables overdue for more than 3 years[166].

Financial Performance - The company's operating revenue for 2017 was approximately CNY 985.76 million, representing a 2.25% increase compared to CNY 964.06 million in 2016[19]. - The net profit attributable to shareholders for 2017 was CNY 8.32 million, a significant increase of 824.01% from CNY 0.90 million in 2016[19]. - Basic earnings per share for 2017 were CNY 0.0317, up 832.35% from CNY 0.0034 in 2016[20]. - The total profit for the year was 1,410.68 CNY, reflecting a significant increase of 26.97% from 1,110.99 CNY in the previous year[41]. - The net profit attributable to the parent company was 831.59 CNY, a remarkable increase of 824.01% compared to 90.00 CNY in the previous year[41]. - The company reported a total revenue of 15,790.53 million RMB for the year 2017, with a net profit of 369.84 million RMB[82]. - The company achieved a total operating profit of ¥42,043,606.78, a turnaround from a loss of ¥10,235,377.32 in the previous period[195]. Cash Flow - The net cash flow from operating activities decreased by 77.37% to CNY 33.12 million in 2017, down from CNY 146.36 million in 2016[19]. - The company’s cash flow from operating activities showed a significant decline in the third and fourth quarters, with net cash flow of CNY -108.52 million and CNY -269.86 million respectively[23]. - The company’s operating cash flow decreased by 77.37%, from 146,364,241.44 CNY to 33,117,314.28 CNY[43]. - Cash inflow from operating activities totaled $1,075,401,257.06, a decrease of 3.4% from $1,115,267,591.91[199]. - Cash outflow from operating activities was $1,042,283,942.78, an increase of 7.6% compared to $968,903,350.47[199]. - Net cash flow from operating activities was $33,117,314.28, down 77.6% from $146,364,241.44[199]. Assets and Liabilities - The total assets of the company at the end of 2017 were CNY 1.84 billion, an increase of 4.55% from CNY 1.76 billion at the end of 2016[19]. - The company's total liabilities increased to CNY 924,277,768.91, up from CNY 859,788,457.63, reflecting a growth of approximately 7.5%[186]. - Current assets rose to CNY 1,035,915,960.58, compared to CNY 874,756,973.71, indicating an increase of about 18.4%[189]. - The company reported a bad debt provision of RMB 1,707.51 million against accounts receivable, indicating a focus on credit risk management[182]. - The non-current assets totaled RMB 700,827,913.88, slightly increasing from RMB 699,420,069.18, showing stability in long-term investments[184]. Market Position and Product Development - The company exported approximately 65,400 tons of concentrated apple juice in 2017, accounting for about 19% of the industry’s total exports, maintaining a leading position in the market[37]. - The company successfully developed over 10 new products during the reporting period, enhancing its product structure and meeting market demands[38]. - The company aims to expand its product range and improve product quality in response to consumer trends towards health and nutrition[86]. - The concentrated juice market in China is experiencing overcapacity, leading to intensified competition and necessitating industry consolidation[84]. Environmental Compliance - The company has five subsidiaries listed as key pollutant discharge units by local environmental protection departments, focusing on the production and processing of concentrated apple juice and related products[113][115]. - The company’s subsidiaries have implemented wastewater treatment measures, ensuring that all discharged wastewater meets local standards before entering municipal sewage systems[115]. - The company has established a wastewater treatment plant with a processing capacity of 3000m³/day, which was completed in 2009 and passed environmental protection acceptance in October 2010[122]. - The company adheres to the pollution discharge standards, with chemical oxygen demand (COD) limits set at 50mg/L and ammonia nitrogen at 12mg/L for wastewater[120]. - The company has not experienced any exceedance warnings, rectifications, or administrative penalties regarding pollutant discharge during the reporting period[126]. Governance and Management - The company has a diverse board with members having extensive experience in finance, law, and technology sectors[146]. - The company is focused on maintaining a stable management structure with no significant changes in executive positions during the reporting period[145]. - The total annual remuneration for directors, supervisors, and senior management during the reporting period was 3.7471 million yuan (pre-tax)[152]. - The company has appointed new senior management, including the hiring of Li Fuhai as Deputy General Manager[151]. - The company has established a performance evaluation mechanism for senior management, linking compensation to operational performance and market conditions[165]. Strategic Initiatives - The company aims to optimize its production capacity layout both domestically and internationally, enhancing resource efficiency and profitability[39]. - The company plans to acquire 100% equity of the Polish Appol Group, with the investment agreement signed on December 14, 2017[75]. - The company is committed to addressing environmental policy risks, which have increased operational costs due to stricter regulations[87]. - The company’s strategic plan for 2017-2020 emphasizes diversifying its product offerings and extending its supply chain[85].