[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Management Statement](index=3&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81) The company's management guarantees the accuracy and completeness of this unaudited quarterly report, assuming legal responsibility - The company's management guarantees the truthfulness, accuracy, and completeness of the quarterly report content and assumes legal responsibility[5](index=5&type=chunk) - The company's Q1 2018 report is unaudited[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) Q1 2018 saw revenue grow by **26.44%** to **RMB 136.87 million**, while net profit attributable to shareholders fell by **74.86%** to **RMB 2.73 million** Key Financial Indicators for Q1 2018 | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 136,874,284.63 | 108,249,123.23 | 26.44% | | Net Profit Attributable to Shareholders (RMB) | 2,733,770.80 | 10,874,507.08 | -74.86% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 579,319.14 | 4,356,385.78 | -86.70% | | Net Cash Flow from Operating Activities (RMB) | -55,916,931.40 | -63,557,672.85 | 12.02% | | Basic Earnings Per Share (RMB/share) | 0.01 | 0.04 | -75.00% | | Total Assets (RMB) | 2,247,212,107.73 | 2,350,400,564.98 (Year-End) | -4.39% (vs. Year-End) | - Total non-recurring gains and losses for the period amounted to **RMB 2.15 million**, primarily comprising **RMB 1.79 million** in government subsidies[9](index=9&type=chunk)[13](index=13&type=chunk) [Shareholder Information](index=5&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had **28,643 shareholders**, with top three holding over **63%** and significant share pledges - At the end of the reporting period, the company had a total of **28,643 shareholders**[12](index=12&type=chunk) Top Three Shareholders' Holdings and Pledges | Shareholder Name | Shareholding (%) | Pledged Shares (Number) | | :--- | :--- | :--- | | HONG DANIEL | 39.75 | 40,435,800 | | 王小明 | 15.90 | 27,490,000 | | 王志成 | 7.95 | 14,590,000 | - Shareholders Wang Xiaoming and Wang Zhicheng are cousins of HONG DANIEL, and Wang Xiaoming and Wang Zhicheng are also cousins, indicating related party relationships[14](index=14&type=chunk) [Preferred Shareholder Information](index=6&type=section&id=2.3%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had no preferred shares during this reporting period - During the reporting period, the company had no preferred shareholder information[14](index=14&type=chunk) [Significant Events](index=6&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Analysis of Significant Changes in Key Accounting Items](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant balance sheet changes include **prepayments up 87.93%**, **advances from customers up 405.06%**, and **other current assets down 62.66%** Key Balance Sheet Changes | Item | Period-End Balance (RMB) | Period-Start Balance (RMB) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 13,780,337.62 | 7,332,889.59 | 87.93 | Increased prepayments for procurement of materials for overseas bracket business | | Other Current Assets | 98,255,170.73 | 263,124,669.36 | -62.66 | Redemption of bank wealth management products and decrease in input VAT credit | | Advances from Customers | 16,769,311.39 | 3,320,263.19 | 405.06 | Due to new settled but uncompleted projects | | Other Current Liabilities | 969,445.46 | 6,269,231.98 | -84.54 | Impact of output VAT to be transferred for construction contract projects in prior period | | Other Comprehensive Income | -3,733,277.06 | -8,004,016.73 | 53.36 | Impact of foreign currency translation differences | [Performance Forecast and Warning](index=7&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company forecasts a decline in H1 2018 net profit due to significant debt financing and increased finance costs from rising foreign exchange rates - The company expects net profit for H1 2018 to decline compared to the prior year[17](index=17&type=chunk) - The primary reasons for the performance decline are expected to be significant debt financing and increased finance costs due to rising foreign exchange rates[16](index=16&type=chunk) [Appendix](index=8&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) [Financial Statements](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This appendix presents the company's unaudited Q1 2018 consolidated and parent company financial statements [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2018, total assets were **RMB 2.25 billion** (down **4.39%**), total liabilities **RMB 1.28 billion** (down **7.53%**), and equity **RMB 930.90 million** Consolidated Balance Sheet Summary (March 31, 2018) | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 2,247,212,107.73 | 2,350,400,564.98 | | Total Liabilities | 1,278,800,287.48 | 1,382,891,897.47 | | Total Equity Attributable to Parent Company Owners | 930,900,937.86 | 931,802,782.95 | [Parent Company Balance Sheet](index=10&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2018, parent company total assets were **RMB 1.50 billion**, total liabilities **RMB 629.45 million**, and owner's equity **RMB 865.78 million** Parent Company Balance Sheet Summary (March 31, 2018) | Item | Period-End Balance (RMB) | Year-Start Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 1,495,232,556.76 | 1,532,550,110.74 | | Total Liabilities | 629,454,415.85 | 658,430,574.46 | | Total Owner's Equity | 865,778,140.91 | 874,119,536.28 | [Consolidated Income Statement](index=12&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Q1 2018 operating revenue grew **26.4%** to **RMB 136.87 million**, but finance costs surged, causing net profit attributable to parent to drop **74.9%** to **RMB 2.73 million** Consolidated Income Statement Summary (Jan-Mar 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 136,874,284.63 | 108,249,123.23 | | Operating Profit | 4,768,417.27 | 13,005,378.19 | | Total Profit | 5,384,279.40 | 13,563,545.57 | | Net Profit Attributable to Parent Company Shareholders | 2,733,770.80 | 10,874,507.08 | - Finance costs were a key factor impacting profit, with **RMB 12.24 million** in expenses this period compared to a **RMB 2.42 million** gain in the prior period, representing a significant change[28](index=28&type=chunk) [Parent Company Income Statement](index=14&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) Q1 2018 parent company net profit turned to a **RMB 8.34 million** loss from a **RMB 15.82 million** profit, driven by a sharp revenue decline and surging finance costs Parent Company Income Statement Summary (Jan-Mar 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 71,556,274.68 | 217,619,115.79 | | Operating Profit | -8,312,749.62 | 18,355,222.83 | | Net Profit | -8,341,395.37 | 15,824,215.06 | [Consolidated Cash Flow Statement](index=15&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2018 saw **RMB 55.92 million** net cash outflow from operations, **RMB 124.76 million** net inflow from investing, and **RMB 44.62 million** net outflow from financing Consolidated Cash Flow Statement Summary (Jan-Mar 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -55,916,931.40 | -63,557,672.85 | | Net Cash Flow from Investing Activities | 124,756,107.31 | -73,655,055.70 | | Net Cash Flow from Financing Activities | -44,615,691.15 | 371,738,279.18 | | Net Increase in Cash and Cash Equivalents | 24,913,138.94 | 235,730,349.22 | [Parent Company Cash Flow Statement](index=17&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Q1 2018 parent company net cash outflow from operations was **RMB 67.10 million**, net inflow from investing **RMB 131.88 million**, and net outflow from financing **RMB 16.64 million** Parent Company Cash Flow Statement Summary (Jan-Mar 2018) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -67,095,265.70 | -165,390,891.78 | | Net Cash Flow from Investing Activities | 131,880,554.76 | -42,943,737.15 | | Net Cash Flow from Financing Activities | -16,636,593.47 | 358,903,635.24 | | Net Increase in Cash and Cash Equivalents | 47,726,692.90 | 151,412,590.66 | [Audit Report](index=18&type=section&id=4.2%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly financial report is unaudited - The report explicitly states that the audit report is not applicable as this quarterly report is unaudited[37](index=37&type=chunk)

Financial Performance - The company achieved operating revenue of CNY 782.64 million in 2017, an increase of 11.35% compared to CNY 702.90 million in 2016[23]. - Net profit attributable to shareholders decreased by 14.94% to CNY 49.12 million in 2017 from CNY 57.75 million in 2016[23]. - The basic earnings per share (EPS) fell by 35.71% to CNY 0.18 in 2017, down from CNY 0.28 in 2016[24]. - The weighted average return on equity (ROE) decreased to 5.55% in 2017, down from 11.25% in 2016, a decline of 5.70 percentage points[24]. - The company achieved total revenue of RMB 782.64 million, representing an 11.35% increase compared to the previous year[46]. - The net profit attributable to shareholders was RMB 49.12 million for the reporting period[44]. - Revenue from photovoltaic power generation reached RMB 70.66 million, a significant increase of 409.42% year-on-year[49]. - The photovoltaic support business generated RMB 356.99 million in revenue, up 22.62% from the previous year[48]. Assets and Liabilities - The company's total assets increased by 92.97% to CNY 2.35 billion at the end of 2017, compared to CNY 1.22 billion at the end of 2016[23]. - The total liabilities rose from CNY 642.87 million to CNY 1,382.89 million, resulting in an increase in the debt-to-asset ratio from 52.78% to 58.84%[137]. - Cash and cash equivalents at the end of the reporting period amounted to CNY 263.43 million, representing a year-on-year increase of 115.05%[65]. - Accounts receivable at the end of the reporting period reached CNY 523.69 million, showing a year-on-year growth of 39.73%[67]. - Inventory at the end of the reporting period was CNY 449.51 million, reflecting a year-on-year increase of 12.24%[68]. - Short-term borrowings at the end of the reporting period totaled CNY 290.61 million, up 287.48% year-on-year[69]. - Fixed assets at the end of the reporting period were CNY 598.35 million, with a year-on-year increase of 332.64%[68]. - Long-term borrowings at the end of the reporting period amounted to CNY 63 million, primarily due to increased long-term borrowings for a wholly-owned subsidiary[69]. Cash Flow - The company reported a net cash flow from operating activities of CNY -145.18 million in 2017, compared to CNY -149.30 million in 2016[23]. - The company’s cash flow from financing activities was RMB 781.08 million, a substantial increase of 2,310.52% compared to the previous year[46]. - The net cash flow from operating activities was -¥145.18 million, an improvement of ¥4.12 million compared to -¥149.30 million in the previous year[62]. - The net cash flow from financing activities increased significantly to ¥781.08 million, primarily due to the initial public offering and loans from shareholders and banks[62]. Dividend Policy - The profit distribution plan for 2017 is to distribute 0.36 RMB per 10 shares, totaling 9,856,800 RMB, with no capital reserve fund transfer to increase share capital[5]. - The company plans to distribute cash dividends of no less than 20% of the distributable profits for the current year if there are no major investment plans or significant cash expenditures[98]. - In 2017, the company distributed cash dividends totaling CNY 9,856,800, which accounted for 20.07% of the net profit attributable to ordinary shareholders[103]. - The cash dividend for 2016 was CNY 10,952,000, representing 18.99% of the net profit attributable to ordinary shareholders[103]. - The company aims to maintain a cash dividend ratio of at least 80% during mature stages without significant capital expenditures[98]. Business Operations - The company’s photovoltaic power station development and construction business continued to grow steadily, contributing to the overall revenue increase[24]. - In 2017, the company's photovoltaic bracket sales revenue reached 356.9966 million yuan, an increase of 22.62% year-on-year, accounting for 45.61% of total revenue, with a sales volume of 858.32 MW[40]. - The company's photovoltaic power station development and construction business generated revenue of 416.8243 million yuan in 2017, a year-on-year increase of 2.93%[41]. - The company has completed over 30 photovoltaic power station projects, enhancing its overall engineering service capabilities[37]. - The company has 11 distributed photovoltaic power station projects under construction, with a total installed capacity exceeding 40MW[42]. Market Presence and Growth - The company has established a global service network with local teams in countries including Australia, Germany, the USA, and Japan, enhancing its international market presence[36]. - The company aims to expand its overseas market share through mergers and acquisitions of foreign photovoltaic manufacturers and distributors[91]. - The company is currently developing multiple projects, including a 21 MW distributed solar power project in Shandong with an investment of 10,239.61 million RMB[81]. - The company is expanding its market presence through new project developments and strategic investments in solar energy[79]. Risks and Challenges - The report includes a detailed description of potential risks that the company may face in the future, which investors should be aware of[7]. - The company faces risks related to policy changes, particularly in key markets like Australia and Japan, which could adversely affect future performance[92]. - The company has a liquidity risk due to the potential delay in transferring constructed photovoltaic power stations, with 38,486.45 million RMB in inventory related to these projects[94]. - The company anticipates a decline in return on equity in the near term due to increased net asset scale and the gradual realization of investment returns from distributed energy projects[95]. Governance and Management - The company reported a standard unqualified audit opinion from the accounting firm, ensuring the financial report's authenticity and completeness[4]. - The company has established a commitment to not request the repurchase of shares held prior to the IPO[104]. - The company will ensure that any share reduction attempts within 24 months post-lock-up will comply with the IPO price conditions[106]. - The company has maintained stable shareholding structures with no significant changes in the number of shares held by directors and supervisors[151]. - The company continues to focus on maintaining strong governance and management practices as evidenced by the recent board elections[155]. Employee and Social Responsibility - The company emphasizes employee rights and development, creating a positive work environment to foster mutual growth[125]. - The total number of employees in the parent company is 371, while the main subsidiaries have 162 employees, resulting in a total of 533 employees[163]. - The company adheres to a compensation policy that links employee salaries to performance and company profitability, promoting a win-win situation for both employees and the company[164]. - The company is committed to sustainable development by promoting clean energy and reducing carbon emissions through initiatives like rooftop solar power stations[125].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The company's management assures the accuracy and completeness of this quarterly report, which has been reviewed by the board but remains unaudited [Important Notice](index=3&type=section&id=1.1%20Important%20Notice) The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report, which has been approved by all directors but remains unaudited - The company's Board of Directors, Supervisory Board, and senior management ensure no false statements, misleading representations, or material omissions in the report[5](index=5&type=chunk) - Company head HONG DANIEL, chief accountant Fang Rongmin, and head of accounting Liu Dengyuan guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) - This company's 2017 third-quarter report is unaudited[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) This section provides an overview of the company's key financial performance and shareholder structure as of the third quarter of 2017 [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) As of the end of Q3 2017, the company's total assets grew by 60.40% year-on-year, primarily due to IPO proceeds, while operating revenue increased by 20.38%, but net profit attributable to shareholders slightly decreased by 1.45%, with non-recurring adjusted net profit down by 5.61%, and operating cash flow remained negative with increased outflow Key Financial Data for Q1-Q3 2017 | Metric | As of Report Period End / Year-to-Date | As of Prior Year End / Prior Year Same Period | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 1,953,696,701.75 | 1,218,008,317.47 | 60.40% | | Net Assets Attributable to Shareholders (CNY) | 934,609,440.78 | 544,235,330.69 | 71.73% | | Operating Revenue (CNY) | 625,249,614.62 | 519,376,344.59 | 20.38% | | Net Profit Attributable to Shareholders (CNY) | 48,035,957.97 | 48,743,187.56 | -1.45% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (CNY) | 44,487,850.60 | 47,134,345.80 | -5.61% | | Net Cash Flow from Operating Activities (CNY) | -181,596,874.03 | -78,381,426.81 | N/A | | Basic Earnings Per Share (CNY/share) | 0.18 | 0.24 | -25.00% | - Total non-recurring gains and losses from the beginning of the year to the end of the reporting period amounted to **CNY 3,548,107.37**, primarily consisting of government grants[9](index=9&type=chunk)[10](index=10&type=chunk) [Shareholder Holdings](index=5&type=section&id=2.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20as%20of%20Report%20Period%20End) As of the report period end, the company had 29,380 shareholders, with a highly concentrated equity structure where the top three shareholders, HONG DANIEL, Wang Xiaoming, and Wang Zhicheng, collectively held over 63% and had related party relationships, with some shares pledged - The total number of shareholders at the end of the reporting period was **29,380**[12](index=12&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shares Held | Percentage (%) | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | HONG DANIEL | 108,823,475 | 39.75 | None | | Wang Xiaoming | 43,529,390 | 15.90 | Pledged 15,180,000 shares | | Wang Zhicheng | 21,764,695 | 7.95 | Pledged 7,590,000 shares | - Key shareholders have related party relationships: Wang Xiaoming and Wang Zhicheng are cousins of HONG DANIEL, and Wang Xiaoming and Wang Zhicheng are paternal cousins; Qingyuan International Co., Ltd. is controlled by HONG DANIEL, and Xiamen Heying Investment Management Co., Ltd. is a wholly-owned subsidiary of Wang Xiaoming[13](index=13&type=chunk) [Significant Events](index=7&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in the company's key financial statement items and indicators, along with their underlying causes [Major Changes in Key Financial Statement Items, Financial Indicators and Their Reasons](index=7&type=section&id=3.1%20Major%20Changes%20in%20the%20Company%27s%20Key%20Financial%20Statement%20Items%2C%20Financial%20Indicators%20and%20Their%20Reasons) During the reporting period, several financial indicators underwent significant changes, primarily driven by the proceeds from the Initial Public Offering (IPO) and the expansion of the photovoltaic power station business, leading to substantial increases in assets like fixed assets and capital reserves, corresponding growth in liabilities such as short-term borrowings and long-term payables related to power station investment and financing, and a net outflow in operating cash flow due to extended collection cycles from business expansion - Balance sheet item changes were primarily influenced by IPO fundraising and the expansion of the photovoltaic power station business; for instance, fixed assets increased by **340.76%** due to the completion and capitalization of multiple power station projects, and capital reserve grew by **250.43%** due to IPO share premium[15](index=15&type=chunk)[17](index=17&type=chunk) - Income statement item changes are related to business growth; operating revenue increased by **20.38%** due to growth in photovoltaic support and power station development and construction businesses, while financial expenses surged by **477.05%** due to increased interest expenses from higher borrowings[16](index=16&type=chunk)[18](index=18&type=chunk) - The cash flow statement indicates the company is in an investment expansion phase; net cash outflow from operating activities expanded, primarily due to the increased scale of photovoltaic power station development, construction, and investment businesses, which have relatively slow cash recovery cycles, while net cash flow from financing activities significantly increased by **914.56%**, mainly from IPO proceeds[17](index=17&type=chunk)[18](index=18&type=chunk) Selected Significant Changes and Their Reasons | Item | Change (%) | Explanation | | :--- | :--- | :--- | | Fixed Assets | 340.76 | Primarily due to the completion and capitalization of multiple photovoltaic power station projects | | Capital Reserve | 250.43 | Primarily due to the share premium from the initial public offering | | Short-term Borrowings | 117.72 | Primarily due to new short-term loans incurred during the period | | Financial Expenses | 477.05 | Primarily due to increased interest expenses from higher borrowings during the period | | Net Cash Flow from Financing Activities | 914.56 | Primarily due to the proceeds from the company's initial public offering in January 2017 | [Appendix](index=10&type=section&id=Item%20IV.%20Appendix) This appendix provides the company's unaudited consolidated and parent company financial statements for the third quarter of 2017 [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) This appendix includes the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for the third quarter of 2017, indicating significant capital expansion through IPO and borrowings, leading to a substantial increase in total assets but pressure on operating cash flow [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's total assets reached **CNY 1.954 billion**, a 60.4% increase from the beginning of the year, with total liabilities at **CNY 986 million** and a debt-to-asset ratio of approximately 50.5%, while total shareholders' equity was **CNY 967 million**, including **CNY 935 million** attributable to the parent company, primarily driven by capital reserves from IPO proceeds Key Items from Consolidated Balance Sheet (September 30, 2017) | Item | Period-end Balance (CNY) | Year-start Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 1,953,696,701.75 | 1,218,008,317.47 | | Total Liabilities | 986,236,787.88 | 642,872,595.34 | | Total Equity Attributable to Parent Company Shareholders | 934,609,440.78 | 544,235,330.69 | | Total Shareholders' Equity | 967,459,913.87 | 575,135,722.13 | [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) At the parent company level, total assets were **CNY 1.28 billion**, a 52.8% increase from the beginning of the year, with total liabilities at **CNY 401 million** and a debt-to-asset ratio of approximately 31.3%, lower than the consolidated figures, and total shareholders' equity at **CNY 879 million**, indicating a stable financial position for the core entity Key Items from Parent Company Balance Sheet (September 30, 2017) | Item | Period-end Balance (CNY) | Year-start Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 1,280,265,753.88 | 837,981,517.52 | | Total Liabilities | 401,065,759.41 | 324,732,635.27 | | Total Shareholders' Equity | 879,199,994.47 | 513,248,882.25 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2017, the company achieved total operating revenue of **CNY 625 million**, a 20.4% year-on-year increase, while total operating costs were **CNY 575 million**, growing by 24.9%, indicating cost growth outpaced revenue growth, resulting in a net profit attributable to the parent company of **CNY 48.04 million**, a slight decrease of 1.45% year-on-year Key Items from Consolidated Income Statement (January-September 2017) | Item | Year-to-Date Amount (CNY) | Prior Year Year-to-Date Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 625,249,614.62 | 519,376,344.59 | | Total Operating Costs | 574,879,942.33 | 460,221,047.66 | | Operating Profit | 52,552,453.59 | 59,123,134.86 | | Total Profit | 57,043,720.68 | 60,566,628.56 | | Net Profit Attributable to Parent Company Shareholders | 48,035,957.97 | 48,743,187.56 | [Parent Company Income Statement](index=17&type=section&id=Parent%20Company%20Income%20Statement) The parent company's operating revenue for the first three quarters of 2017 reached **CNY 399 million**, an 18.1% year-on-year increase, while net profit was **CNY 25.43 million**, a 20.9% year-on-year decrease, a larger decline than the consolidated figures, possibly influenced by intercompany transactions or subsidiary performance Key Items from Parent Company Income Statement (January-September 2017) | Item | Year-to-Date Amount (CNY) | Prior Year Year-to-Date Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 398,986,432.69 | 337,924,286.35 | | Operating Profit | 25,395,179.39 | 36,204,357.68 | | Net Profit | 25,431,706.54 | 32,153,215.87 | [Consolidated Cash Flow Statement](index=19&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2017, the company experienced a net cash outflow of **CNY 182 million** from operating activities and **CNY 259 million** from investing activities, reflecting continuous investment in its photovoltaic power station business, while net cash inflow from financing activities was **CNY 479 million**, primarily from the IPO, supporting the company's investment expansion, with cash and cash equivalents totaling **CNY 92.75 million** at period-end Consolidated Cash Flow Statement Summary (January-September 2017) | Item | Year-to-Date Amount (CNY) | Prior Year Year-to-Date Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -181,596,874.03 | -78,381,426.81 | | Net Cash Flow from Investing Activities | -258,696,709.57 | 2,365,079.88 | | Net Cash Flow from Financing Activities | 479,373,816.40 | 47,249,322.51 | | Net Increase in Cash and Cash Equivalents | 38,433,036.82 | -27,682,361.19 | [Parent Company Cash Flow Statement](index=20&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) The parent company's cash flow structure is similar to the consolidated figures, with a net outflow of **CNY 269 million** from operating activities and **CNY 94 million** from investing activities, while net cash inflow from financing activities was **CNY 401 million**, also primarily from the IPO, indicating that expansion funds were mainly raised by the parent company and invested into various businesses Parent Company Cash Flow Statement Summary (January-September 2017) | Item | Year-to-Date Amount (CNY) | Prior Year Year-to-Date Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -269,019,999.25 | 76,721,405.46 | | Net Cash Flow from Investing Activities | -94,040,535.05 | -78,180,193.61 | | Net Cash Flow from Financing Activities | 400,821,865.64 | 26,994,686.25 | | Net Increase in Cash and Cash Equivalents | 37,678,967.22 | 25,535,898.10 |

Financial Performance - The company's operating revenue for the first half of 2017 was RMB 369,564,404.45, representing a 32.56% increase compared to RMB 278,780,330.25 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached RMB 24,081,793.81, a significant increase of 158.79% from RMB 9,305,336.51 in the previous year[17]. - Basic earnings per share for the first half of 2017 were RMB 0.09, an increase of 80.00% from RMB 0.05 in the same period last year[19]. - The company's operating income increased due to growth in the photovoltaic bracket business and photovoltaic power station development, construction, and investment[38]. - The company reported a significant increase in revenue for the first half of 2017, with a year-on-year growth of 15%[57]. - The company provided a positive outlook for the second half of 2017, projecting a revenue growth of 10% to 12%[59]. Assets and Liabilities - The total assets of the company grew by 63.07% to RMB 1,986,171,578.30 compared to RMB 1,218,008,317.47 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 66.88% to RMB 908,203,800.48 from RMB 544,235,330.69 at the end of the previous year[18]. - The total liabilities increased to RMB 1,044,385,442.54 from RMB 642,872,595.34, reflecting a growth of approximately 62.5%[83]. - The company's fixed assets increased by 152.08% to 348,640,574.71 CNY, attributed to the completion of specific photovoltaic power station projects[40]. - The company's long-term liabilities totaled RMB 126,416,244.46, increasing from RMB 50,862,196.52, which is a growth of around 148.5%[83]. Cash Flow - The net cash flow from operating activities was negative at RMB -210,863,767.13, compared to RMB -117,695,781.63 in the previous year, indicating a decline in cash flow[17]. - The net cash flow from operating activities decreased due to increased procurement expenditures related to the ongoing construction of photovoltaic power stations[38]. - Cash flow from operating activities showed a net outflow of CNY -210,863,767.13, worsening from CNY -117,695,781.63 in the same period last year[96]. - The company reported cash inflows from operating activities totaling CNY 401,545,766.14, compared to CNY 191,801,965.83 in the previous year, indicating a growth of approximately 109%[96]. Market and Business Growth - The company's photovoltaic bracket business and photovoltaic power station development and construction business saw significant growth compared to the same period last year, contributing to the increase in revenue and net profit[19]. - The company invested in and contracted a total of 45 photovoltaic power station EPC projects, with a total grid-connected capacity exceeding 140MW, generating revenue of RMB 188.12 million, up 19.92% year-on-year[26][32]. - Revenue from the traditional photovoltaic bracket production and sales business reached RMB 177.74 million, an increase of 47.48% year-on-year, with significant growth in Australia (98.34%) and China (116.34%)[32]. - The company's photovoltaic power station engineering service revenue from EPC projects was RMB 175.92 million, a staggering increase of 920.91% compared to the same period last year[33]. Shareholder and Capital Management - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[5]. - The company raised 381,266,500 CNY from its IPO, with a net amount of 349,683,700 CNY after deducting related expenses[40]. - The company has committed to not transferring or managing shares held prior to the IPO for a period of 36 months, ensuring stability in shareholding[54]. - The company has not proposed any profit distribution or capital reserve increase plans for the half-year period[52]. Risks and Challenges - The company faces risks related to policy changes, market concentration, and accounts receivable recovery, with accounts receivable representing 99.52% of operating income[46][47]. - The company has not reported any major accounting errors that require retrospective restatement[66]. - The company does not have any guarantees provided to shareholders, actual controllers, or their related parties[63]. Research and Development - Research and development expenses increased by 30%, focusing on innovative technologies and product enhancements[58]. - The company has not disclosed any new product or technology developments in the current report[49]. Corporate Governance - The company has established a corporate governance structure with a board of directors, supervisory board, and various departments including marketing and finance[119]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months[123].

Financial Performance - The company's operating revenue for 2016 was CNY 702,895,538.15, representing a 17.79% increase compared to CNY 596,729,948.17 in 2015[20] - The net profit attributable to shareholders for 2016 was CNY 57,748,332.99, a decrease of 12.94% from CNY 66,328,466.18 in 2015[20] - The net profit after deducting non-recurring gains and losses was CNY 56,294,736.49, down 19.22% from CNY 69,687,978.57 in 2015[20] - The company achieved operating revenue of 702.90 million yuan, an increase of 17.79% compared to the same period last year, driven by rapid growth in photovoltaic power station construction and service business[21] - The net profit for the period was 57.75 million yuan, a decrease of 12.94% year-on-year, primarily due to reduced profits from the domestic photovoltaic bracket business and lower comprehensive income from power station transfers[21] - Basic earnings per share decreased by 12.50% to 0.28 yuan per share compared to the previous year[21] - The weighted average return on equity was 11.25%, down 3.32 percentage points from the previous year[21] Assets and Liabilities - The total assets at the end of 2016 were CNY 1,218,008,317.47, an increase of 32.79% from CNY 917,266,253.93 at the end of 2015[20] - The net assets attributable to shareholders increased by 12.30% to CNY 544,235,330.69 at the end of 2016, compared to CNY 484,616,220.85 at the end of 2015[20] - The accounts receivable increased by 229.68% to ¥374.79 million from ¥113.68 million in the previous year, primarily due to the expansion of photovoltaic power station development and construction[66] - Total liabilities increased to ¥642,872,595.34 from ¥404,243,275.18, representing a growth of 59.0%[181] Cash Flow - The cash flow from operating activities for 2016 was negative CNY 149,303,055.54, compared to a positive cash flow of CNY 1,071,547.24 in 2015[20] - The net cash flow from operating activities was -149.30 million yuan, a decline of 14,033.41% year-on-year, attributed to increased capital occupation in photovoltaic power station engineering business with a longer repayment cycle[21] - The company reported a cash outflow from investing activities of CNY 125,808,411.81, worsening from a cash outflow of CNY -51,660,806.98 in the previous year[195] - The total cash inflow from financing activities was CNY 38,000,000.00, an increase from CNY 10,000,000.00 in 2015[195] Dividends and Shareholder Returns - The company plans to distribute a profit of CNY 10,952,000 to shareholders at a rate of CNY 0.4 per 10 shares for the 2016 fiscal year[2] - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends if there are no major investment plans[95] - The cash dividend distribution for 2016 was 0.40 RMB per 10 shares, with a total cash distribution of RMB 10,952,000.00[104] - The company plans to distribute cash dividends of no less than 20% of the available profit in the next three years, focusing on shareholder returns while expanding its business[101] Business Operations and Strategy - The company operates under a business model of "international market + localized service + Chinese manufacturing," with a focus on innovation and product development[30] - The company has established a project company model for photovoltaic power station development, allowing for both project transfer income and operational revenue from electricity sales[30] - The company is actively engaged in research and development of new products and technologies in the photovoltaic sector[30] - The company aims to achieve a photovoltaic installed capacity of 100 GW by 2020, as outlined in the national energy plan[35] Market and Industry Insights - As of the end of 2016, China's newly installed photovoltaic capacity reached 34.5 GW, with a cumulative capacity of 77.4 GW, both ranking first globally[34] - The company is focusing on developing photovoltaic power stations in central and eastern regions of China, following the government's policy adjustments on feed-in tariffs[36] - The revenue from the photovoltaic power station development and construction business was CNY 404.94 million, showing a significant growth of 105.96% year-on-year[49] Governance and Compliance - The company has established a clear framework for managing share transfers and lock-up periods to ensure market stability[108] - The company has committed to comply with relevant laws and regulations regarding shareholding and transfer[107] - The audit report confirms that the financial statements fairly represent the company's financial position as of December 31, 2016, in accordance with accounting standards[179] - There were no significant litigation or arbitration matters reported for the year[120] Social Responsibility and Sustainability - The company emphasizes its commitment to social responsibility, focusing on environmental protection, social welfare, and poverty alleviation initiatives[131] - The company has implemented a photovoltaic power station on its factory roof to utilize clean energy and reduce carbon emissions[131] - The company aims to achieve sustainable development through efficient resource management and environmental management systems[131]

2017 年第一季度报告 公司代码：603628 公司简称：清源股份 清源科技（厦门）股份有限公司 2017 年第一季度报告 1 / 18 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 8 | 2017 年第一季度报告 一、 重要提示 1.4 本公司第一季度报告未经审计。 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(%) | | | 总资产 | 1,696,858,550.71 | 1,218,008,317.47 | | 39.31 | | 归属于上市公司 | 907,842,019.75 | 544,235,330.69 | | 66.81 | | 股东的净资产 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | | 经营活动产生的 | -63,557, ...