Financial Performance - The company's operating revenue for the first half of 2019 was ¥2,692,122,554.22, a decrease of 13.59% compared to ¥3,115,546,243.88 in the same period last year[27]. - The net profit attributable to shareholders of the listed company was -¥59,939,074.19, representing a decline of 120.73% from ¥289,130,922.83 in the previous year[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥89,742,511.35, a decrease of 245.88% compared to ¥61,519,249.38 in the same period last year[27]. - The net cash flow from operating activities was -¥570,170,382.58, an improvement of 19.91% from -¥711,933,597.64 in the previous year[27]. - Basic earnings per share were -¥0.08, a decrease of 121% from ¥0.38 in the same period last year[27]. - The weighted average return on net assets was -1.47%, a decrease of 8.68 percentage points from 7.21% in the previous year[27]. - The decline in net profit was primarily due to a decrease in revenue and gross profit, with a combined impact of 65% from these factors[42]. - The company reported a significant increase in financial assets measured at fair value, rising to ¥1,547,919,708.62 from ¥1,369,911.46[111]. Sales and Market Performance - In the first half of 2019, the company achieved sales revenue of RMB 2.69 billion, a year-on-year decrease of 13.6%[42]. - The company reported a significant drop in washing machine sales, exceeding 20%, due to the brand transition from Sanyo to the new brand positioning[43]. - The Whirlpool brand products experienced rapid growth, with retail sales increasing by 53.6% and retail volume by 53.7% in June compared to the previous year[43]. - Online sales for Whirlpool's products grew by 160% year-over-year in the first half of 2019, with a 66.7% increase in overall kitchen appliance sales during the 6.18 promotion period[48]. - Whirlpool's kitchen appliance sales revenue in the first half of 2019 reached the total revenue of the previous year, establishing a solid foundation for future growth[52]. Brand and Product Development - The company has committed to increasing brand investment, marking 2019 as the year with the highest investment in brand development since its establishment in China[43]. - The company is focusing on brand resource allocation and optimizing channel construction to enhance market presence[43]. - Whirlpool's new product launches, including the Emperor series washing machines and Frozen PRO refrigerators, focus on smart technology and have received high performance certifications, including the new national standard 5A+ certification[49]. - The company is actively integrating into the global innovation system and product development processes, leveraging over a century of user data and technological innovation from the Whirlpool Group[36]. Operational Efficiency and Cost Management - The company achieved a 12% increase in production efficiency in the first half of 2019 through various improvement measures[9]. - The company has optimized its procurement processes, resulting in significant cost management achievements[9]. - The company's operating costs also decreased by 13.04%, from ¥2,397,461,091.92 to ¥2,084,909,788.56[58]. Environmental Compliance - The company has established wastewater treatment systems and air pollution control facilities, ensuring compliance with relevant standards[89]. - The company has implemented an annual environmental monitoring plan, conducting comprehensive monitoring of wastewater discharge quarterly[96]. - The company has established emergency response plans for environmental incidents, including training and resource allocation[95]. Shareholder and Equity Information - Total number of common stock shareholders reached 25,314 by the end of the reporting period[103]. - The largest shareholder, Whirlpool (China) Investment Co., Ltd., holds 390,884,200 shares, representing 51.00% of total shares[103]. - The total equity attributable to shareholders decreased from ¥4,115,710,531.27 to ¥4,017,459,006.43, a decrease of about 2.4%[120]. - The company distributed 38,321,950.00 RMB to shareholders, reflecting its commitment to returning value to investors[186]. Future Outlook and Challenges - The company expects a decline in sales volume and potential net losses in the next reporting period due to brand switching impacts[65]. - The company faces risks including market competition, brand switching, cost fluctuations, and management challenges[68]. - The company aims to enhance its market presence through strategic partnerships and potential acquisitions, particularly in the appliance sector[195].

Financial Performance - The company achieved a net profit of ¥261,839,479.47 in 2018, a significant increase of 370.01% compared to a net loss of ¥96,975,651.32 in 2017[6] - Total revenue for 2018 was ¥6,285,633,179.42, representing a decrease of 1.23% from ¥6,364,091,904.60 in 2017[22] - The net asset attributable to shareholders increased by 5.74% to ¥4,115,710,531.27 at the end of 2018, compared to ¥3,892,171,967.16 at the end of 2017[22] - The company reported a basic earnings per share of ¥0.34 in 2018, a recovery from a loss of ¥0.13 per share in 2017[23] - The weighted average return on net assets improved to 6.54% in 2018, up by 8.98 percentage points from -2.44% in 2017[26] - The company reported a significant increase of 101.39% in net profit attributable to shareholders after deducting non-recurring gains and losses, primarily due to product structure adjustments and reduced labor costs[26] - The company reported a net cash flow from financing activities of CNY 8,343,883.18, a significant improvement compared to the previous year's negative cash flow[52] - The company reported a significant reduction in sales expenses by 16.85% to ¥1.03 billion[61] - The company reported a net cash flow from operating activities of -¥30.23 million, a decrease of 107.83% compared to the previous year[63] - The company reported a total expected return of RMB 5,000,000 from various wealth management products[122] Dividend and Profit Distribution - The company plans to distribute a cash dividend of ¥0.50 per 10 shares, totaling ¥38,321,950.00, based on the total share capital of 766,439,000 shares[6] - The proposed profit distribution plan does not meet the Shanghai Stock Exchange's guideline requiring a cash dividend total to be at least 30% of the net profit attributable to shareholders, primarily due to increased investment in brand building and new product development[100] - In 2018, the company distributed a cash dividend of 38,321,950.00 RMB, which accounted for only 14.64% of the net profit attributable to shareholders[103] - The cash dividend per share for 2018 was 0.50 RMB, consistent with the previous year, despite the company's recovery from losses[103] Operational Efficiency and Strategy - The company implemented a comprehensive organizational restructuring, enhancing operational efficiency and core competitiveness, which contributed to winning the Whirlpool Group's global annual award[45] - The company reduced operating costs, with sales expenses decreasing by 16.85% and management expenses decreasing by 29.70% year-on-year[52] - The company is focusing on high-end, intelligent, and energy-efficient home appliances in response to market trends[37] - The company is committed to digital transformation, optimizing channel construction, and enhancing e-commerce sales capabilities to improve consumer experience[81] - The company has established a comprehensive R&D, design, procurement, production, and sales system to support its business operations[36] Market and Product Development - The company plans to focus on high-end niche market product development in 2019, introducing new products such as the Emperor series washing machine and the Frozen Age PRO refrigerator[81] - The company launched innovative products such as the new Rui series washing machine and the W series kitchen appliances, aligning with consumer demands for higher living standards and smart home trends[47] - The company is actively integrating into the global innovation system by leveraging its R&D centers and sharing resources with Whirlpool's global network[38] - The company aims to enhance product value by integrating "health technology," "excellent performance," "ease of use," and "cutting-edge design" into its offerings[81] Environmental Compliance and Sustainability - The wastewater discharge from the company's Nankang Industrial Park was 266,700 tons, with a chemical oxygen demand average concentration of 157 mg/L, which is below the permitted limits[130] - The company reported a total wastewater discharge of 144,300 tons from the Whirlpool Industrial Park, with a chemical oxygen demand average concentration of 198 mg/L, also compliant with discharge standards[130] - The company has established a comprehensive environmental monitoring plan, conducting quarterly assessments of all emissions[137] - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by L% over the next five years[162] Shareholder and Governance - The total number of ordinary shareholders at the end of the reporting period is 24,249, an increase from 23,799 at the end of the previous month[144] - The top shareholder, Whirlpool (China) Investment Co., Ltd., holds 390,884,200 shares, representing 51.00% of the total shares[145] - The company has no strategic investors or general legal entities becoming top 10 shareholders during the reporting period[148] - The board of directors held 9 meetings, with all members actively participating, ensuring effective governance[183] Research and Development - The company has a significant focus on research and development of new products and high-tech innovations, establishing R&D centers in China[147] - The company’s research and development expenses were CNY 144,086,797.61, a decrease of 5.27% year-on-year, reflecting a focus on cost control while maintaining innovation[52] - The R&D department has made significant advancements, with a budget increase of H% allocated for new technology development in the upcoming year[162] Risks and Challenges - The company faces risks from market competition, cost fluctuations, and management challenges, necessitating a focus on brand differentiation and risk management strategies[98] - Significant accounts receivable and notes receivable amounts are impacted by the economic downturn and e-commerce challenges, necessitating careful judgment and estimation for bad debt provisions[198] Employee and Management - The total number of employees in the parent company is 2,693, while the total number of employees in major subsidiaries is 6,254, resulting in a combined total of 8,947 employees[171] - The total hours of outsourced labor amounted to 5,433,926 hours, with total payments for outsourced labor reaching 85.53 million yuan[178] - The company has implemented a training program that included 719 participants, focusing on professional skills, general capabilities, leadership, and sales[175] - The total pre-tax remuneration for the president and director, Ai Xiaoming, was RMB 1.2634 million for the reporting period[157]

Financial Performance - Operating revenue for the first quarter was CNY 1,458,794,696.45, a decline of 13.93% year-on-year[11] - Net profit attributable to shareholders was CNY -15,272,896.69, representing a decrease of 126.51% compared to the same period last year[11] - The company reported a net profit of CNY -15,272,896.69, a decrease of 127% compared to the previous period's profit of CNY 57,619,380.12, primarily due to a decline in gross profit[17] - Total operating revenue for Q1 2019 was CNY 1,458,794,696.45, a decrease of 14% compared to CNY 1,694,967,232.72 in Q1 2018[39] - Net profit for Q1 2019 was a loss of CNY 15,272,896.69, compared to a profit of CNY 57,619,380.12 in Q1 2018[40] - Total comprehensive income for Q1 2019 was a loss of CNY 15,245,969.02, compared to a gain of CNY 57,638,273.37 in Q1 2018[40] Cash Flow - Net cash flow from operating activities improved by 43.86%, reaching CNY -336,616,186.05[11] - Cash flow from operating activities showed a net outflow of CNY -336,616,186.05, a 44% improvement compared to the previous outflow of CNY -599,593,116.35[17] - Cash inflow from operating activities for the first quarter of 2019 was 1,385,484,883.65 RMB, a decrease of 10.94% from 1,555,941,916.99 RMB in the first quarter of 2018[48] - Cash outflow from operating activities totaled 1,722,101,069.70 RMB, down from 2,155,535,033.34 RMB in the previous year, resulting in a net cash flow from operating activities of -336,616,186.05 RMB[51] - The net cash flow from investing activities was -365,289,482.99 RMB, contrasting with a positive cash flow of 8,914,993.78 RMB in the same quarter of 2018[51] - The net cash flow from financing activities was -67,658,996.89 RMB, indicating a decrease in cash inflow compared to the previous year[53] Assets and Liabilities - Total assets decreased by 4.05% to CNY 7,958,162,275.08 compared to the end of the previous year[11] - The company’s total assets decreased to CNY 7,958,162,275.08 from CNY 8,294,398,092.97, reflecting a reduction in available financial assets[28] - Total liabilities decreased from ¥4,178,687,561.70 to ¥3,857,697,712.83, a reduction of approximately 7.7%[30] - Total current liabilities decreased from ¥3,219,471,975.21 to ¥2,971,762,962.38, a decline of about 7.7%[36] - Cash and cash equivalents decreased from ¥1,716,117,541.07 to ¥930,684,721.67, a drop of approximately 45.8%[34] Shareholder Information - The number of shareholders at the end of the reporting period was 23,799[14] - The largest shareholder, Whirlpool (China) Investment Co., Ltd., holds 51.00% of the shares[14] Research and Development - Research and development expenses increased by 35% to CNY 32,270,790.78 from CNY 23,928,482.50, indicating ongoing investment in new products and technologies[17] Other Financial Metrics - The weighted average return on net assets decreased by 125.29 percentage points to 1.47%[11] - The basic earnings per share for the period was CNY -0.08, a decrease of 125% compared to the previous year[11] - Investment income dropped by 62% to CNY 11,893,990.46 from CNY 31,062,618.17, impacted by hedging activities[17] - The company reported a significant decrease in cash received from sales of goods and services, totaling 1,290,443,520.61 RMB, down from 1,470,005,889.41 RMB in the first quarter of 2018[49]

2018 年第三季度报告 2018 年第三季度报告 公司代码：600983 公司简称：惠而浦 惠而浦（中国）股份有限公司 2018 年第三季度报告 1 / 18 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 7 | 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。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人艾小明、主管会计工作负责人何卫权 及会计机构负责人（会计主管人员）陈灿 华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 3 / 18 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 8,019,376,746.93 8,477,526,622.53 -5.40 归属于上市公司股 东的净资产 ...

Financial Performance - The company's operating revenue for the first half of 2018 was approximately CNY 3.12 billion, a decrease of 7.84% compared to the same period last year[18]. - The net profit attributable to shareholders was approximately CNY 289.13 million, a significant increase of 436.69% year-on-year[18]. - The net cash flow from operating activities was negative at approximately CNY -711.93 million, a decline of 718.25% compared to the previous year[18]. - The total assets at the end of the reporting period were approximately CNY 8.12 billion, a decrease of 4.26% from the end of the previous year[18]. - The net assets attributable to shareholders increased by 6.20% to approximately CNY 4.13 billion compared to the end of the previous year[18]. - Basic earnings per share for the first half of 2018 were CNY 0.38, compared to a loss of CNY -0.11 in the same period last year[19]. - The weighted average return on equity increased by 9.35 percentage points to 7.21% compared to the previous year[19]. - Non-recurring gains and losses totaled approximately CNY 227.61 million, primarily from non-current asset disposal gains and government subsidies[21]. - The company reported a total profit of CNY 334,685,242.44, recovering from a loss of CNY 81,700,833.84 in the previous year[83]. - The company recorded a total comprehensive income of CNY 279,794,124.78, compared to a loss of CNY 85,968,357.82 in the previous year[83]. Operational Highlights - The company launched the new Rui series washing machine, which features an intelligent oxygen cleaning function that effectively removes odors and kills bacteria, enhancing consumer health and lifestyle[33]. - The new aging-free refrigerator is the first in China to use a pure HFO foaming system, which is 10% more energy-efficient than similar products, and reduces carbon emissions by 99.9%[33]. - The company terminated the "annual production of 4 million energy-saving high-end refrigerator expansion" fundraising project to maximize the use of raised funds for the benefit of all shareholders[34]. - The main product gross margin improved during the reporting period, indicating a steady increase in profitability[34]. - The home appliance industry in China saw a 13.1% year-on-year increase in main business income, totaling 742.25 billion yuan, with a total profit of 52.29 billion yuan, up 15.9% year-on-year[29]. - Refrigerator production reached 39.79 million units, a year-on-year increase of 3.1%, while washing machine production was 33.97 million units, up 0.3% year-on-year[29]. - Online sales of major home appliances maintained a growth rate of over 30%, indicating a shift in consumer purchasing behavior towards online channels[31]. - The company is focusing on high-end product upgrades, particularly in first and second-tier cities, to meet the rising demand from the growing middle class[31]. - The company is actively responding to the "Made in China 2025" strategy by initiating the construction of smart factories and global R&D centers[27]. Risks and Investigations - The company faced risks including market risk, cost risk, and management risk, as detailed in the report[5]. - The company is under investigation by the China Securities Regulatory Commission for potential false disclosures in previous annual reports[6]. - The company is facing risks related to market competition, cost fluctuations, and management challenges due to its multi-brand strategy[44]. - The company is actively cooperating with regulatory authorities regarding an investigation into previous financial disclosures[45]. Shareholder and Equity Information - The company did not distribute any dividends or bonus shares for the first half of 2018, with a profit distribution plan indicating 0 shares and 0 yuan per 10 shares[48]. - The actual controller and shareholders have committed to not transferring or entrusting the management of their shares for a period of 36 months from October 23, 2014, which includes 157,245,200 shares and 233,639,000 shares from a private placement[49]. - The company confirmed that it will not engage in any actions that could lead to its delisting or loss of listing qualifications during the same 36-month period[49]. - The company has committed to avoiding any business activities that may compete with Hefei Sanyo, ensuring fair and reasonable transactions with related parties[50]. - The company has established a plan to ensure that all related transactions with Hefei Sanyo are conducted in accordance with market rules and general commercial principles[50]. Environmental and Compliance - The company reported wastewater discharge of 172,782.4 tons from the Nangang Industrial Park, with a chemical oxygen demand (COD) average discharge concentration of 95 mg/L, and ammonia nitrogen average discharge concentration of 12.15 mg/L, all within regulatory limits[56]. - The company’s wastewater discharge from the Fangxing Industrial Park was 49,815.2 tons, with a COD average discharge concentration of 200.1 mg/L, and ammonia nitrogen average discharge concentration of 30.6 mg/L, also compliant with environmental standards[56]. - The company has established various pollution control facilities, including a wastewater treatment station with a design capacity of 5 tons/hour, currently operating at 3 tons/hour[57]. - The company has developed an emergency response plan for environmental incidents, categorizing potential hazards and outlining response procedures[60]. - The company conducts quarterly environmental monitoring through external qualified units to ensure compliance with national standards[61]. Financial Position and Capital Structure - Total assets decreased from RMB 8,477,526,622.53 to RMB 8,116,541,793.24, a decline of approximately 4.26%[76]. - Current assets decreased from RMB 5,324,161,165.08 to RMB 4,757,964,504.88, a reduction of about 10.66%[76]. - Cash and cash equivalents decreased from RMB 2,599,317,719.79 to RMB 1,688,839,809.11, a drop of approximately 35.05%[75]. - Accounts receivable increased from RMB 1,272,768,929.16 to RMB 1,430,407,869.16, an increase of about 12.38%[75]. - Total liabilities decreased from RMB 4,585,354,655.37 to RMB 3,982,897,651.30, a decline of about 13.14%[77]. - Shareholders' equity increased from RMB 3,892,171,967.16 to RMB 4,133,644,141.94, an increase of approximately 6.19%[77]. Governance and Management - The company appointed Ernst & Young Hua Ming as the financial audit and internal control audit institution for the year 2018, with a one-year term[52]. - The company appointed He Weiquan as the Chief Financial Officer (CFO) during the reporting period[70]. - The company elected several new board members, including Wu Kan and Sheng Weili, as well as the chairperson of the supervisory board, Yuan Fenglan[71]. - There were no significant lawsuits or arbitration matters involving the company during the reporting period[52]. Accounting Policies and Financial Reporting - The financial statements are prepared based on the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status[115]. - The company’s accounting year runs from January 1 to December 31, with the reporting currency being RMB[116][117]. - The company follows specific accounting policies and estimates tailored to its operational characteristics[114]. - The consolidated financial statements include all subsidiaries controlled by the company as of December 31, 2017[123].

Financial Performance - In 2017, the company reported a net profit of -96,975,651.32 RMB, a decrease of 134.24% compared to the previous year[5]. - The company's operating revenue for 2017 was 6,364,091,904.60 RMB, reflecting a decline of 6.05% from 2016[22]. - The cash flow from operating activities decreased by 64.76% to 373,962,881.35 RMB in 2017[22]. - The total assets at the end of 2017 were 8,477,526,622.53 RMB, down 5.59% from the previous year[22]. - The basic earnings per share for 2017 was -0.13 RMB, a decrease of 135.14% compared to 2016[23]. - The company experienced a significant drop in net profit attributable to shareholders, with a decrease of 757.91% in net profit excluding non-recurring gains and losses[24]. - The weighted average return on net assets was -2.44% in 2017, a decrease of 8.45 percentage points from the previous year[23]. - In 2017, the company's revenue was 6.364 billion yuan, a year-on-year decrease of 6.05%[42]. - The net profit for 2017 was -97 million yuan, a year-on-year decline of 134.24%, with a net profit of -488 million yuan after deducting non-recurring gains and losses[42]. Operational Challenges - The company identified rising raw material costs and declining sales prices as key factors impacting profitability[24]. - The company faced challenges in 2017, including rising raw material costs and accounting errors, which significantly impacted its operational quality[42]. - Operating costs increased by 4.95% to ¥5,052,353,077.15, primarily due to rising raw material costs[51]. - The company reported a significant increase in financial expenses by 308.90% due to exchange rate impacts[51]. - The company experienced a significant increase in asset impairment losses, which rose to CNY 124,983,391.45 from CNY 48,995,189.56, an increase of 155.5%[183]. Strategic Initiatives - The company has taken measures to improve internal controls and sales management following previous accounting errors[9]. - The company has established a global R&D center in Hefei, which integrates local management culture with Whirlpool's corporate culture to enhance innovation[34]. - The company is responding to the "Made in China 2025" strategy by launching smart factory projects, with the first smart factory commencing production in November 2017[37]. - The company aims to enhance its competitive edge through talent development, brand positioning, and technological innovation, leveraging over a century of user data[36]. - The company launched several high-end new products in 2017, including the "Light Touch" washing machine, to enhance profitability and cater to consumer demand for quality[40]. Financial Management and Compliance - The company received a warning letter from the China Securities Regulatory Commission regarding errors in regular reports and significant internal control deficiencies[90]. - The company has taken corrective measures in response to the regulatory issues raised by the China Securities Regulatory Commission[90]. - The company has implemented comprehensive internal control measures, particularly in sales, marketing finance, and logistics, to strengthen management mechanisms and ensure compliance[91]. - The company is committed to enhancing compliance education and training for employees to ensure legal and regulatory adherence in operations[91]. - The company has revised its accountability management measures to clarify responsibilities and handling of violations[91]. Environmental Responsibility - The company has been recognized as an environmentally friendly enterprise in Hefei, reflecting its commitment to environmental management and compliance with ISO14001 standards[104]. - The company has established an emergency response plan for environmental incidents, detailing procedures and responsibilities for effective management[106]. - The company reported a total of 292,400 tons of wastewater discharged, with an average concentration of chemical oxygen demand at 85 mg/L, resulting in a total discharge of 24.85 tons[112]. - The average concentration of ammonia nitrogen in the discharged wastewater was 13.4 mg/L, leading to a total discharge of 3.92 tons, which is below the permitted limits[112]. - The company’s major pollutant emissions are below the total amount specified in the pollution discharge permit, ensuring compliance with relevant standards[112]. Shareholder Information - The total number of ordinary shareholders increased from 23,339 to 24,880 during the reporting period[118]. - The largest shareholder, Whirlpool (China) Investment Co., Ltd., holds 51.00% of the shares, totaling 390,884,200 shares[120]. - The company has a total of 233,639,000 shares under lock-up conditions, which cannot be transferred within 36 months from the date of new share registration[123]. - The controlling shareholder is Whirlpool (China) Investment Co., Ltd., established on February 23, 2005, with a registered capital of 2 billion RMB[124]. - The actual controller is Whirlpool Corporation, founded on August 10, 1955[126]. Human Resources and Management - The company has seen significant leadership changes, with several key executives, including the former CEO and CFO, resigning in 2017[137]. - The company has implemented a competitive salary system based on macroeconomic conditions and operational performance, aiming to attract and retain talent[144]. - The company has established a comprehensive training system, including a 2.0 version curriculum covering marketing, professional skills, and leadership[145]. - The total hours of outsourced labor amounted to 6,220,602 hours, with total payments for outsourced labor reaching CNY 88.66 million[146]. - The company has strengthened its internal control systems to address identified deficiencies and enhance operational management[150].

[Item 1. Important Notice](index=3&type=section&id=Item%201.%20Important%20Notice) This section provides the management's declaration regarding the accuracy and completeness of the quarterly report [1.1 Board of Directors, Supervisory Board, Directors, Supervisors, and Senior Management Guarantee the Truthfulness, Accuracy, and Completeness of the Quarterly Report Content](index=3&type=section&id=1.1%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Guarantee%20the%20Truthfulness%2C%20Accuracy%2C%20and%20Completeness%20of%20the%20Quarterly%20Report%20Content) The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities; the report was approved by all directors but remains unaudited - The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report, with no false records, misleading statements, or material omissions[6](index=6&type=chunk) - This first quarterly report of the company is unaudited[6](index=6&type=chunk) [Item 2. Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) This section details the company's key financial performance, shareholder structure, and preferred share status for the reporting period [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2018, the company's operating revenue was RMB 1.695 billion, down 11.68% year-on-year; net profit attributable to shareholders was RMB 57.62 million, a significant 33.94% decrease; net cash flow from operating activities was negative RMB 599.59 million, a sharp 55,151.19% year-on-year decline; non-recurring gains and losses totaled RMB 33.93 million, mainly from wealth management investment income 2018 Q1 Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,694,967,232.72 | 1,919,084,744.78 | -11.68% | | Net Profit Attributable to Shareholders (RMB) | 57,619,380.12 | 87,226,303.81 | -33.94% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 23,684,721.14 | 82,461,706.03 | -71.28% | | Net Cash Flow from Operating Activities (RMB) | -599,593,116.35 | -1,085,212.98 | -55,151.19% | | Basic Earnings Per Share (RMB/share) | 0.08 | 0.11 | -27.27% | | Weighted Average Return on Net Assets (%) | 1.47% | 2.12% | Decreased by 0.65 percentage points | 2018 Q1 Non-recurring Gains and Losses | Item | Amount (RMB) | Notes | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | -343,467.95 | Fixed asset inventory loss and relocation expenses | | Government grants | 6,066,087.61 | Government grants | | Fair value changes and investment income from transactional financial assets/liabilities | 37,048,343.01 | Investment income from wealth management | | Other non-operating income and expenses | -130,986.96 | - | | Income tax impact | -8,705,315.96 | - | | **Total** | **33,934,659.75** | - | [2.2 Total Number of Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) at the End of the Reporting Period](index=4&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20%28or%20Unrestricted%20Shareholders%29%20at%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 23,339 shareholders; the controlling shareholder is Whirlpool (China) Investment Co., Ltd., holding 51.00%; the second largest shareholder is Hefei State-owned Assets Holding Co., Ltd., holding 23.34%, with some shares pledged - As of the end of the reporting period, the company had **23,339 shareholders**[9](index=9&type=chunk) Top Two Shareholders' Shareholding | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Whirlpool (China) Investment Co., Ltd. | 390,884,200 | 51.00 | | Hefei State-owned Assets Holding Co., Ltd. | 178,854,400 | 23.34 | [2.3 Total Number of Preferred Shareholders, Top Ten Preferred Shareholders, and Top Ten Unrestricted Preferred Shareholders at the End of the Reporting Period](index=5&type=section&id=2.3%20Total%20Number%20of%20Preferred%20Shareholders%2C%20Top%20Ten%20Preferred%20Shareholders%2C%20and%20Top%20Ten%20Unrestricted%20Preferred%20Shareholders%20at%20the%20End%20of%20the%20Reporting%20Period) The company had no preferred shares during this reporting period - During the reporting period, the company had no preferred shareholders[10](index=10&type=chunk) [Item 3. Significant Events](index=5&type=section&id=Item%203.%20Significant%20Events) This section outlines major changes in financial items and other significant matters during the reporting period [3.1 Significant Changes and Reasons for Key Accounting Statement Items and Financial Indicators](index=5&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Statement%20Items%20and%20Financial%20Indicators) During the reporting period, several financial indicators experienced significant changes; financial expenses surged by 546.02% year-on-year due to exchange gains/losses; investment income increased by 933.09% year-on-year due to wealth management product purchases; net profit decreased by 33.94% year-on-year, primarily due to lower subsidiary profitability, exchange rate fluctuations, and rising material costs; net cash flow from operating activities saw a substantial outflow, mainly due to decreased revenue and less favorable collections compared to the prior year Significant Financial Indicator Changes | Item | Change Rate (%) | Reason Explanation | | :--- | :--- | :--- | | Financial Expenses | 546.02% | Primarily due to changes in exchange gains/losses | | Investment Income | 933.09% | Increase from wealth management purchases and subsidiary hedging gains | | Net Cash Flow from Operating Activities | -55151.19% | Mainly due to decreased revenue, whereas sales collections were strong in Q1 last year | | Net Profit | -33.94% | Primarily due to decreased profitability of subsidiaries, impacted by exchange rates and rising material costs | [3.2 Analysis and Explanation of Progress, Impact, and Solutions for Significant Matters](index=6&type=section&id=3.2%20Analysis%20and%20Explanation%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) During the reporting period, the company had no significant matter progress, overdue unfulfilled commitments, or need to issue major performance change warnings - The company has no significant matter progress, overdue unfulfilled commitments, or major performance change warnings[12](index=12&type=chunk) [Item 4. Appendix](index=7&type=section&id=Item%204.%20Appendix) This section contains the company's unaudited financial statements for the first quarter of 2018, including balance sheets, income statements, and cash flow statements [4.1 Financial Statements](index=7&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's consolidated and parent company balance sheets as of March 31, 2018, and consolidated and parent company income statements and cash flow statements for Q1 2018; all statements are unaudited [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2018, the company's total assets were RMB 7.965 billion, a 6.05% decrease from the beginning of the year; total liabilities were RMB 4.015 billion, and total equity attributable to parent company owners was RMB 3.950 billion, a 1.48% increase from the beginning of the year Consolidated Balance Sheet Key Items (2018-03-31) | Item | Period-end Balance (RMB) | Beginning-of-year Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 7,964,568,055.55 | 8,477,526,622.53 | | Total Liabilities | 4,014,757,815.02 | 4,585,354,655.37 | | Total Equity Attributable to Parent Company Owners | 3,949,810,240.53 | 3,892,171,967.16 | [Parent Company Balance Sheet](index=9&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2018, the parent company's total assets were RMB 7.313 billion, a decrease from RMB 7.709 billion at the beginning of the year; total liabilities were RMB 3.380 billion, and total owner's equity was RMB 3.933 billion Parent Company Balance Sheet Key Items (2018-03-31) | Item | Period-end Balance (RMB) | Beginning-of-year Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 7,313,216,136.90 | 7,708,868,484.06 | | Total Liabilities | 3,379,778,599.42 | 3,832,228,523.96 | | Total Owner's Equity | 3,933,437,537.48 | 3,876,639,960.10 | [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) In Q1 2018, the company achieved total operating revenue of RMB 1.695 billion, down 11.68% year-on-year; operating profit was RMB 59.24 million, a 44.4% decrease year-on-year; net profit was RMB 57.62 million, down 33.94% year-on-year; basic earnings per share were RMB 0.08 Consolidated Income Statement Key Items (2018 Q1) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,694,967,232.72 | 1,919,084,744.78 | | Operating Profit | 59,236,929.71 | 106,551,521.25 | | Net Profit | 57,619,380.12 | 87,226,303.81 | | Net Profit Attributable to Parent Company Shareholders | 57,619,380.12 | 87,226,303.81 | | Basic Earnings Per Share (RMB/share) | 0.08 | 0.11 | [Parent Company Income Statement](index=13&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2018, the parent company achieved operating revenue of RMB 1.370 billion and net profit of RMB 56.80 million, a decline compared to RMB 68.19 million in the same period last year Parent Company Income Statement Key Items (2018 Q1) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 1,370,160,246.08 | 1,610,312,402.32 | | Net Profit | 56,797,577.38 | 68,190,257.09 | [Consolidated Cash Flow Statement](index=14&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2018, net cash flow from operating activities was negative RMB 599.59 million, a significant deterioration from negative RMB 1.09 million in the prior year; net cash flow from investing activities was RMB 8.91 million; cash and cash equivalents at period-end were RMB 2.019 billion, a decrease of RMB 580.71 million from the beginning of the period Consolidated Cash Flow Statement Key Items (2018 Q1) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -599,593,116.35 | -1,085,212.98 | | Net Cash Flow from Investing Activities | 8,914,993.78 | 168,766,868.87 | | Net Increase in Cash and Cash Equivalents | -580,707,050.50 | 165,729,733.88 | | Cash and Cash Equivalents at Period-end | 2,018,610,669.29 | 3,023,053,811.18 | [Parent Company Cash Flow Statement](index=16&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2018, the parent company's net cash flow from operating activities was negative RMB 496.09 million, compared to a net inflow of RMB 41.52 million in the prior year; net cash flow from investing activities was RMB 16.52 million; cash and cash equivalents at period-end were RMB 1.448 billion Parent Company Cash Flow Statement Key Items (2018 Q1) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -496,086,318.41 | 41,516,369.60 | | Net Cash Flow from Investing Activities | 16,517,253.40 | 185,825,661.95 | | Cash and Cash Equivalents at Period-end | 1,448,372,284.87 | 2,462,995,385.93 | [4.2 Audit Report](index=17&type=section&id=4.2%20Audit%20Report) This quarterly report is unaudited - The report applies "Not Applicable" for the audit report, indicating that this quarterly financial report is unaudited[31](index=31&type=chunk)

Financial Performance - Net profit attributable to shareholders was CNY -56,609,379.90, a decline of 123.44% year-on-year[6] - Operating revenue for the first nine months was CNY 4,902,345,043.73, down 3.57% from the same period last year[6] - The net profit for Q3 2017 was -56,609,379.90 RMB, a decrease of 123% compared to the previous period's profit of 241,559,050.56 RMB, primarily due to rising material costs and declining sales prices[11] - Operating revenue for the third quarter was CNY 1,521,695,890.80, down 13.94% from CNY 1,768,514,743.44 in the same period last year[24] - Net profit for the third quarter was CNY 29,265,287.32, a decrease of 44.66% compared to CNY 52,811,476.20 in the previous year[25] - Year-to-date revenue for 2017 reached CNY 3,774,777,650.76, down from CNY 4,039,341,862.72 in the same period last year, representing a decline of 6.6%[28] - Operating profit for Q3 2017 was a loss of CNY 201,410,492.40, compared to a profit of CNY 37,285,241.22 in Q3 2016[28] - Net profit for Q3 2017 was CNY 15,048,195.44, a decrease of 73.0% from CNY 55,607,676.74 in Q3 2016[28] - Total comprehensive income for Q3 2017 was CNY 15,048,195.44, compared to CNY 55,607,676.74 in Q3 2016[29] Asset and Liability Changes - Total assets decreased by 6.39% to CNY 8,405,217,382.15 compared to the end of the previous year[6] - The total assets as of September 30, 2017, amounted to 8,405,217,382.15 RMB, down from 8,979,049,847.28 RMB at the beginning of the year[19] - Total liabilities decreased from CNY 4,155,048,305.67 to CNY 3,688,654,661.92, a decrease of approximately 11.27%[22] - The company reported a total equity of CNY 3,933,161,521.43, down from CNY 4,104,442,309.13 at the beginning of the year, a decline of approximately 4.17%[23] - Current assets decreased from CNY 5,498,302,679.35 to CNY 4,562,724,611.44, representing a reduction of about 16.98%[21] Cash Flow Analysis - Cash flow from operating activities decreased by 46.48% to CNY 305,393,748.35 compared to the previous year[6] - Cash flow from operating activities decreased by 46% to 305,393,748.35 RMB, influenced by extended payment terms from the previous year[11] - The net cash flow from operating activities for Q3 2017 was ¥305,393,748.35, a decrease of 46.4% compared to ¥570,612,548.73 in the same period last year[32] - Total cash inflow from operating activities was ¥5,995,951,701.38, while cash outflow was ¥5,690,557,953.03, resulting in a net cash inflow of ¥305,393,748.35[32] - Cash inflow from investment activities was ¥1,243,021,783.60, while cash outflow was ¥1,767,013,618.77, leading to a net cash outflow of ¥523,991,835.17[32] - The net cash flow from investment activities for the first nine months was -¥495,756,331.00, compared to a positive cash flow of ¥41,142,633.15 in the previous year[37] Shareholder Information - The total number of shareholders was 27,318, with the largest shareholder holding 51% of the shares[8] Operational Costs and Expenses - Total operating costs increased to CNY 1,725,343,847.91, up 1.93% from CNY 1,702,992,310.45 year-over-year[24] - Financial expenses increased by 214% to 35,786,034.58 RMB, attributed to higher discount interest and foreign exchange impacts[11] - Sales expenses for Q3 2017 were CNY 296,920,708.62, slightly down from CNY 297,958,181.39 in Q3 2016[28] Investment and Impairment - Investment income surged by 885% to 8,611,170.73 RMB, driven by increased purchases of financial products[11] - The company reported a significant increase in asset impairment losses, totaling CNY 25,794,037.00 in Q3 2017, compared to a reversal of CNY 18,864,142.84 in Q3 2016[28] Other Notable Changes - The company identified accounting errors from 2015 and 2016, estimating the error amount to be between 250 million to 300 million RMB, leading to stock suspension and subsequent correction measures[11] - The company's expected liabilities decreased by 41% to 1,759,622.25 RMB, mainly due to a reduction in return provisions[11] - The company anticipates significant changes in cumulative operating profit compared to the same period last year due to challenges in adjusting product sales prices and structure[13]

Financial Performance - The company's operating revenue for the first half of 2017 was approximately RMB 3.38 billion, representing a 2.06% increase compared to RMB 3.31 billion in the same period last year[20]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 85.87 million, a decrease of 144.15% compared to a profit of RMB 194.52 million in the previous year[20]. - The net cash flow from operating activities was RMB 115.15 million, down 44.25% from RMB 206.54 million in the same period last year[20]. - The total assets of the company decreased by 2.24% to approximately RMB 8.79 billion from RMB 8.99 billion at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased by 4.01% to approximately RMB 3.93 billion from RMB 4.09 billion at the end of the previous year[20]. - The basic earnings per share for the first half of 2017 was -0.11 yuan, a decrease of 144.00% compared to 0.25 yuan in the same period last year[22]. - The weighted average return on net assets was -2.14%, a decrease of 6.06 percentage points compared to 3.92% in the previous year[22]. - The company reported a net loss of 85,874,667.22 RMB for the first half of 2017, a decrease of 144.14% compared to the same period last year[23]. - Operating profit decreased by 144.77% to -81,328,832.31 RMB, attributed to rising material costs and declining sales prices[23]. - Total revenue for the first half of 2017 was 3.381 billion RMB, remaining flat year-on-year[31]. Risks and Challenges - The company faced significant risks including market risk, cost risk, and management risk, which are detailed in the report[6]. - The company anticipates a cumulative operating loss by September 30, 2017, due to ongoing raw material price increases and difficulties in adjusting product sales prices and structure[46]. - The company is facing challenges in the refrigerator market, where competition is intense and market share is stable among major brands[37]. - The company faces risks from market competition due to low entry barriers, leading to potential price wars and comprehensive competition strategies[47]. - Fluctuations in raw material prices and rising labor costs are expected to increase the company's cost pressures[47]. Strategic Initiatives - The company plans to enhance user experience by collaborating with Suning to create new showroom concepts across nearly 100 locations[31]. - The smart factory project in Hefei is expected to commence production in September 2017, with a capacity of 2 million inverter washing machines annually[34]. - The company launched the "Guangmang Touch" washing machine featuring a 7-inch TFT touchscreen and advanced smart washing technology[34]. - The company has launched the Whirlpool Kitchen Appliance Wealth Club in China, marking a strategic move to capture the high-end kitchen appliance market[35]. - The company aims to leverage its rich production and R&D experience to focus on high-end product development and smart manufacturing[28]. - The overall market for home appliances in China is gradually recovering, with increasing demand for mid-to-high-end products[28]. Accounting and Financial Reporting - The company reported accounting errors related to sales discounts from previous years, with an estimated impact of RMB 250-300 million on operating profit[7]. - The company has not proposed any profit distribution plan for the reporting period[5]. - The company has not proposed any profit distribution or capital reserve increase plans for the half-year period[50]. - The company appointed Ernst & Young Hua Ming as the financial audit and internal control audit institution for the year 2017[54]. - There are no significant litigation or arbitration matters reported during the reporting period[55]. - The company has not disclosed any major related party transactions during the reporting period[56]. - The company has committed to avoiding any actions that could lead to its delisting or loss of listing qualifications[52]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[55]. - The company has confirmed that it will prioritize procurement from its group under equal conditions[52]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,765[64]. - The largest shareholder, Whirlpool (China) Investment Co., Ltd., held 390,884,200 shares, accounting for 51.00% of the total shares[65]. - The second-largest shareholder, Hefei State-owned Assets Holding Co., Ltd., held 178,854,400 shares, representing 23.34% of the total shares[65]. - The company did not experience any changes in its share capital structure during the reporting period[62]. - The company elected Hou Songrong and Lü Wei as directors during the 2016 annual general meeting[70]. Asset and Liability Management - The total assets as of June 30, 2017, amounted to CNY 8,791,517,448.94, a decrease from CNY 8,993,287,191.65 at the beginning of the period[75]. - The total current assets decreased from CNY 6,538,866,451.17 to CNY 6,074,674,463.64, reflecting a decline of approximately 7.1%[74]. - The company's total liabilities decreased slightly from CNY 4,903,435,487.66 to CNY 4,865,745,961.48, a reduction of about 0.8%[75]. - The total equity attributable to shareholders decreased from CNY 4,089,851,703.99 to CNY 3,925,771,487.46, representing a decline of approximately 4.0%[76]. - The company's inventory increased from CNY 908,367,202.55 to CNY 1,127,466,493.12, an increase of about 24.1%[74]. - The accounts receivable decreased from CNY 1,476,066,428.04 to CNY 1,337,735,290.02, a decline of approximately 9.4%[74]. - The company reported a significant decrease in cash and cash equivalents from CNY 2,857,324,077.30 to CNY 2,462,871,579.51, a drop of about 13.8%[74]. Cash Flow Analysis - Cash flow from operating activities generated a net amount of ¥115,153,144.80, down from ¥206,542,277.36 in the previous period, a decrease of approximately 44.2%[87]. - Cash flow from investing activities resulted in a net outflow of -¥493,834,160.85, contrasting with a net inflow of ¥312,741,426.91 in the previous period[87]. - The total cash inflow from operating activities was CNY 3,411,119,303.89, while total cash outflow was CNY 3,213,676,618.19, resulting in a net cash inflow of CNY 197,442,685.70[89]. - The total cash and cash equivalents at the end of the period amounted to CNY 2,462,871,579.51, down from CNY 2,857,324,077.30 at the beginning of the period, representing a decrease of approximately 13.8%[199]. - The bank deposits decreased from CNY 2,849,072,149.90 to CNY 2,457,523,256.84, a decline of about 13.7%[199]. Corporate Governance - The company appointed Feng Shuming as the Chief Financial Officer (CFO) during the reporting period[69]. - The company underwent a name change to Whirlpool (China) Co., Ltd. in December 2014[104]. - The company’s financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of its financial status[110]. - The company’s financial reporting is based on the principle of historical cost, with impairment provisions made for assets as necessary[107]. - The company’s accounting period runs from January 1 to December 31 each year[111]. Revenue Recognition and Accounting Policies - Revenue is recognized when economic benefits are likely to flow in and the amount can be reliably measured, with specific conditions for sales recognition[168][170]. - The company’s sales revenue recognition principles differentiate between domestic and export sales, with domestic sales further categorized into distribution and consignment models[171]. - Government grants related to assets are recognized when conditions are met and measured at the amount received or receivable; non-monetary grants are measured at fair value[175]. - Deferred tax assets and liabilities are recognized based on temporary differences between the carrying amount of assets and liabilities and their tax bases, using the balance sheet liability method[178]. - The company assesses the recoverability of deferred tax assets based on expected future taxable income, and adjusts the carrying amount if future income is unlikely to be sufficient[180].

Financial Performance - Total revenue for Q1 2017 was CNY 2,053,402,175.78, representing a 10.61% increase compared to CNY 1,856,437,770.40 in the same period last year[9] - Net profit attributable to shareholders decreased by 24.29% to CNY 116,090,617.02 from CNY 153,340,409.03 year-on-year[9] - Basic earnings per share fell by 25.00% to CNY 0.15 from CNY 0.20 year-on-year[9] - The company reported an operating profit of CNY 132,860,948.38, down from CNY 171,453,305.93, a decrease of 22.5% year-over-year[33] - Net profit for Q1 2017 was CNY 97,054,570.30, down 25.2% from CNY 129,770,671.19 in Q1 2016[37] Cash Flow - The net cash flow from operating activities improved significantly, with a net cash outflow of CNY -1,085,212.98, an 82.23% improvement from CNY -6,106,705.76 in the previous year[9] - Cash flow from operating activities showed a net outflow of CNY 1,085,212.98, an improvement from a net outflow of CNY 6,106,705.76 in Q1 2016[40] - Cash inflow from operating activities totaled RMB 1,783,691,396.66, compared to RMB 1,583,390,106.22 in the prior period, reflecting an increase of approximately 12.66%[42] - Cash outflow from operating activities was RMB 1,742,175,027.06, up from RMB 1,604,559,735.63, indicating a rise of about 8.58%[42] - Cash flow from investment activities showed a net inflow of RMB 185,825,661.95, compared to a net outflow of RMB 14,508,616.52 in the previous period[43] Assets and Liabilities - Total assets at the end of the reporting period were CNY 9,225,727,833.20, a decrease of 0.75% from CNY 9,295,776,293.00 at the end of the previous year[9] - Current liabilities totaled CNY 4,397,150,184.19, down from CNY 4,573,492,376.27, representing a decrease of about 3.8%[25] - The company's total equity increased to CNY 4,476,923,839.43 from CNY 4,379,869,269.13, reflecting a growth of 2.2%[30] - Total liabilities decreased to CNY 4,102,446,238.26 from CNY 4,196,347,791.39, indicating a reduction of approximately 2.2%[30] Investments - The company invested approximately 300 million in financial products, marking a 500.00% increase compared to the previous period[17] - Cash payments for fixed assets and other long-term assets rose by 261.35% to approximately 168.46 million, driven by investments in new industrial parks and smart factories[17] - The company recovered RMB 630,000,000.00 from investments, a substantial increase from RMB 60,000,000.00 in the prior period[42] Shareholder Information - The number of shareholders at the end of the reporting period was 27,133[13] - The company has committed to prioritize procurement from its parent group under equal conditions, enhancing operational synergy[20] Operating Costs and Expenses - Total operating costs for Q1 2017 were CNY 1,923,547,987.17, up from CNY 1,685,858,491.87, reflecting a year-over-year increase of 14.1%[33] - Sales expenses increased to CNY 343,784,388.28 in Q1 2017, up from CNY 309,724,628.72 in Q1 2016, representing an increase of 10.9%[36] - The company reported a tax expense of CNY 14,151,555.39 for Q1 2017, down from CNY 20,067,869.84 in Q1 2016, indicating a decrease of 29.5%[37] Other Financial Metrics - The weighted average return on equity decreased by 13.20 percentage points to 2.63% from 3.03%[9] - The company reported a significant increase in prepayments to CNY 183,870,923.51 from CNY 141,261,621.72, marking a growth of approximately 30.1%[24] - The company received approximately 29.19 million in tax refunds, a decrease of 41.73% compared to the previous year, mainly due to reduced export tax rebates[16]