Financial Performance - In 2018, the company's total revenue reached ¥2,000,069,794.90, representing a year-on-year increase of 36.88% compared to ¥1,461,195,715.07 in 2017[22] - The net profit attributable to shareholders was ¥199,132,692.33, a 55.78% increase from ¥127,826,992.01 in the previous year[22] - The basic earnings per share for 2018 was ¥0.99, up 57.14% from ¥0.63 in 2017[24] - The total assets of the company at the end of 2018 were ¥2,883,711,677.11, reflecting a 12.49% increase from ¥2,563,623,882.53 at the end of 2017[23] - The company's net assets attributable to shareholders increased to ¥2,164,732,614.97, a rise of 6.85% from ¥2,025,936,898.00 in 2017[23] - The weighted average return on equity for 2018 was 9.51%, an increase of 3.06 percentage points from 6.45% in 2017[24] - The company achieved total operating revenue of ¥2,000,069,794.90, representing a 36.88% increase compared to the previous year[56] - Net profit attributable to shareholders reached ¥199,132,692.33, marking a 55.78% year-on-year growth[56] Cash Flow and Dividends - The cash flow from operating activities was ¥55,054,588.59, a significant increase from ¥1,470,510.28 in 2017, marking a growth of 3,643.91%[23] - The company plans to distribute a cash dividend of ¥6 per 10 shares, totaling ¥122,681,280.00, and to increase capital by issuing 4 additional shares for every 10 shares held[5] - The cash flow from operating activities showed a negative net amount of approximately ¥10.35 million in the second quarter and ¥49.36 million in the fourth quarter[27] - Operating cash inflow totaled CNY 1,416,165,323.58, an increase of 12.43% compared to the previous period[76] - Net cash flow from operating activities reached CNY 55,054,588.59, a significant increase of 3643.91% year-on-year[76] Revenue Sources and Market Segments - The company’s main revenue sources include the petrochemical industry (¥84,110.84 million, 42.02% of total revenue) and machinery manufacturing (¥65,716.78 million, 32.86% of total revenue) for 2018[55] - Revenue from the petrochemical industry increased by 49.40%, driven by the commencement of large projects in the second half of 2017[60] - Revenue from the mechanical equipment industry grew by 33.09%, influenced by increased demand in the petrochemical sector[61] - Revenue from the natural gas sector surged by 111.25%, attributed to concentrated procurement for LNG projects[61] - Sales of welded pipes rose by 102.16%, reflecting a general increase in demand across various industries[62] - Domestic sales increased by 48.30%, primarily due to the concentrated commencement of projects in the domestic petrochemical industry[63] Research and Development - Research and development expenses increased by 21.86% to ¥39,362,220.97, reflecting the company's focus on innovation[58] - The company has established partnerships with renowned research institutions and universities, enhancing its R&D capabilities[46] - Total R&D expenditure amounted to 91,663,799.94 yuan, representing 4.58% of total revenue[74] - The company completed the certification for nuclear safety equipment manufacturing licenses for seamless pipes, enhancing its product offerings in the nuclear sector[49] Production and Operations - The company maintains a production model based on "sales-driven production," ensuring efficient operations aligned with customer orders[37] - The company is actively expanding its production capabilities, including the acquisition of new equipment and environmental improvements[47] - The company is currently constructing a special stainless steel pipe production line with an annual capacity of 3,500 tons, approved in April 2018[143] Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and plans to enhance its environmental management and investment in green technologies[102] - The company achieved zero discharge of industrial wastewater in 2018, with all hazardous waste handled by qualified units[140] - The company donated a total of ¥3,700,000 to the Changzhou Wujin District Guangcai Cause Promotion Association in 2018[137] - The company also donated ¥2,000,000 to the Changzhou Charity Federation in July 2018[137] Shareholder and Governance - The actual controller, the Zhu Guoliang family, holds 39.28% of the company's total shares, which poses a control risk for the company[96] - The company has a stable profit distribution policy, with a payout ratio of 62% for 2018, reflecting its commitment to shareholder returns[105] - The company has a lock-up period of 36 months for shares held by major shareholders, which may affect liquidity[166] - The company has a total of 10 directors, with 3 being independent directors[199] - The company strictly adheres to laws and regulations regarding information disclosure to ensure transparency and protect shareholder rights[195] Future Outlook and Strategy - The company plans to enhance quality management and product stability, focusing on high-end product development and market expansion in 2019[86] - The company aims to strengthen its presence in both domestic and international markets, particularly in the Middle East and South America[88] - The company plans to invest in technology innovation and talent development to enhance its competitive edge in the stainless steel pipe industry[88] - The company has set a performance guidance for the next fiscal year, aiming for a revenue growth of approximately 10%[182] - The company is focusing on expanding its market presence, particularly in the Asia-Pacific region, to drive future growth[182] Employee and Management - The total number of employees in the parent company is 1,389, with a total of 1,390 employees including the main subsidiary[190] - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period is 4.5122 million yuan[187] - The company has established a new salary system based on positions, personnel capabilities, and individual performance to enhance employee motivation[191] - The company has implemented a training plan to improve overall employee quality and enhance core competitiveness[192]

Financial Performance - Operating revenue rose by 53.61% to CNY 606,119,520.56 year-on-year[7] - Net profit attributable to shareholders increased by 148.91% to CNY 80,536,932.75 compared to the same period last year[7] - Basic and diluted earnings per share both reached CNY 0.40, a 150% increase from CNY 0.16 in the previous year[7] - Operating profit for Q1 2019 was CNY 92,880,752.37, compared to CNY 38,204,980.94 in Q1 2018, indicating a growth of 143.5%[26] - Net profit for Q1 2019 was CNY 80,536,932.75, a substantial increase from CNY 32,355,593.06 in Q1 2018, representing a growth of 149.5%[26] - The company reported a total profit of CNY 93,265,599.54 for Q1 2019, compared to CNY 36,969,618.48 in Q1 2018, marking a 152.5% increase[29] Assets and Liabilities - Total assets increased by 8.49% to CNY 3,128,441,697.54 compared to the end of the previous year[7] - Total liabilities as of March 31, 2019, were CNY 884,155,986.52, up from CNY 722,561,766.49 at the end of 2018, reflecting a rise of 22.4%[23] - Shareholders' equity totaled CNY 2,244,597,344.17 as of March 31, 2019, compared to CNY 2,161,625,891.21 at the end of 2018, indicating an increase of 3.8%[24] - The company's total assets as of January 1, 2019, were CNY 2,213,852,263.78, unchanged from December 31, 2018[38] - Total liabilities were CNY 718,979,062.14, with non-current liabilities at CNY 52,243,143.71[40] Cash Flow - Cash flow from operating activities surged by 3,557.84% to CNY 42,346,237.50 year-on-year[7] - Cash flow from operating activities for Q1 2019 was CNY 42,346,237.50, significantly higher than CNY 1,157,683.73 in Q1 2018[32] - The company’s total cash inflow from operating activities was CNY 358,295,912.46, compared to CNY 272,528,316.00 in Q1 2018, an increase of 31.5%[35] - Cash inflow from financing activities reached CNY 115,840,000.00, a substantial increase from CNY 30,000,000.00 in Q1 2018, marking a growth of 286.1%[35] Shareholder Information - The total number of shareholders reached 18,084 by the end of the reporting period[11] - The largest shareholder, Zhu Guoliang, holds 16.14% of the shares, totaling 32,991,083 shares[11] Research and Development - Research and development expenses increased by 44.74% to ¥10,556,561.28 from ¥7,293,219.96, reflecting higher costs associated with employee stock incentives[14] Market Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[6]

Financial Performance - Net profit attributable to shareholders increased by 55.72% to CNY 144,606,007.87 for the first nine months of the year[6] - Operating revenue for the first nine months rose by 41.86% to CNY 1,451,561,134.34 compared to the same period last year[6] - The company reported a net profit of CNY 138,746,035.02 after deducting non-recurring gains and losses, a 50.58% increase year-on-year[6] - Net profit increased by 55.72% to ¥144,606,007.87, primarily due to growth in recurring profit items[14] - Net profit for the third quarter was ¥52,651,701.59, compared to ¥33,357,901.87 in the same quarter last year, reflecting a growth of approximately 58%[28] - The company reported a total profit of ¥59,551,310.68 for the third quarter, compared to ¥37,910,244.02 in the previous year, which is an increase of about 57%[28] - Basic earnings per share increased by 54.35% to ¥0.71, attributed to the rise in net profit[14] - Earnings per share for the third quarter were ¥0.25, up from ¥0.17 in the same quarter last year, marking a 47% increase[29] - Basic earnings per share for Q3 were ¥0.26, compared to ¥0.16 in the same quarter last year, marking a 62.5% increase[33] Cash Flow and Liquidity - Net cash flow from operating activities improved significantly, reaching CNY 104,412,530.71, a 242.31% increase from the previous year[6] - The net cash flow from operating activities was ¥104,412,530.71, a significant turnaround from a negative cash flow in the previous year[14] - The cash inflow from operating activities for the first nine months totaled ¥1,100.11 million, compared to ¥657.73 million in the previous year[36] - The company reported a net cash flow from operating activities of ¥104,500,046.33 for the first nine months of 2018, compared to a negative cash flow of -¥70,901,191.61 in the same period last year[39] - Total cash inflow from operating activities was ¥1,042,126,944.18, a significant increase from ¥657,508,098.65 year-over-year, indicating strong sales performance[39] - The ending cash and cash equivalents balance was ¥333,295,712.21, significantly higher than ¥142,725,404.54 at the end of the same period last year[37] Assets and Liabilities - Total assets increased by 12.15% to CNY 2,875,214,729.60 compared to the end of the previous year[6] - The company's cash and cash equivalents increased by 44.34% to ¥458,041,661.75 compared to the previous year-end[13] - Total current assets reached ¥2,234,504,478.33, an increase from ¥1,980,556,942.44, reflecting overall growth in the company's asset base[19] - Current liabilities rose to ¥719,353,527.86, compared to ¥501,006,929.23, marking a significant increase of about 43.5%[20] - The company's total liabilities amounted to ¥751,984,006.26, up from ¥537,686,984.53, which is an increase of approximately 39.7%[21] - Shareholders' equity rose to ¥2,123,230,723.34, compared to ¥2,025,936,898.00, reflecting an increase of about 4.9%[21] Operational Efficiency - The company's gross profit margin improved, with operating costs rising by 40.59% to ¥1,162,196,677.46 due to increased sales revenue[14] - Total operating costs for the first nine months were ¥1,291,749,037.23, up from ¥935,226,428.52, indicating a year-over-year increase of about 38%[27] - Total operating revenue for Q3 reached ¥498.32 million, a 30.0% increase from ¥383.60 million in the same period last year[32] - Total operating costs for Q3 were ¥397.32 million, up 26.8% from ¥313.42 million in Q3 of the previous year[32] Shareholder Information - The total number of shareholders reached 19,498 by the end of the reporting period[10] - The top shareholder, Zhu Guoliang, holds 16.14% of the shares, totaling 32,991,083 shares[10] - The company paid ¥62,626,443.64 in dividends and interest, compared to ¥35,040,060.08 in the previous year, reflecting a commitment to shareholder returns[39] Research and Development - Research and development expenses for the first nine months amounted to ¥27,799,059.51, compared to ¥24,850,771.60 in the same period last year, showing an increase of approximately 12%[27] - R&D expenses increased to ¥10.91 million, representing a 17.9% rise compared to ¥9.26 million in Q3 of the previous year[32] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[27]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥953,242,022.15, representing a 49.03% increase compared to ¥639,615,101.93 in the same period last year[19] - The net profit attributable to shareholders for the first half of 2018 was ¥91,954,306.28, up 54.53% from ¥59,507,145.31 in the previous year[19] - The basic earnings per share for the first half of 2018 was ¥0.46, an increase of 58.62% compared to ¥0.29 in the same period last year[21] - The weighted average return on equity increased to 4.46% from 3.03%, an increase of 1.43 percentage points[21] - The net cash flow from operating activities improved significantly, with a net outflow of -¥9,191,930.59 compared to -¥74,926,429.01 in the previous year, marking an 87.73% improvement[19] - The net profit attributable to shareholders reached ¥91,954,306.28, marking a 54.53% increase from the previous year[32] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥85,906,984.70, up by 87.48% year-on-year[32] - The company reported a significant increase in prepayments by 216.86% to ¥45,244,862.44, indicating higher advance payments to suppliers[38] - The company reported a gross profit of ¥100,040,376.16 for the first half of 2018, up from ¥52,120,538.18 in the previous year, marking an increase of 91.83%[103] Operating Costs and Expenses - The total operating costs amounted to ¥853,201,645.99, reflecting a growth of 45.23% year-on-year[32] - Operating costs rose by 49.01% to ¥765,074,291.80, primarily due to the increase in sales revenue[35] - Research and development expenses increased by 48.33% to ¥50,216,047.48, reflecting higher investment in R&D[35] Assets and Liabilities - The company’s total assets as of the reporting date were ¥2,453.13 million, with net assets of ¥386.66 million[42] - Total current assets increased to ¥2,078,651,669.35 from ¥1,980,556,942.44, representing a growth of approximately 5.5%[94] - Total non-current assets amounted to ¥595,690,442.93, up from ¥583,066,940.09, indicating a growth of about 2.1%[95] - Total liabilities amounted to ¥623,582,106.25, up from ¥537,686,984.53, indicating an increase of approximately 15.9%[96] - Current liabilities increased to ¥589,607,631.87 from ¥501,006,929.23, a rise of about 17.6%[95] Shareholder Information - The actual controller, Zhu Guoliang's family, holds 39.76% of the company's total shares, indicating a significant control risk[45] - The largest shareholder, Zhu Guoliang, held 32,991,083 shares, accounting for 16.33% of the total shares[81] - The second-largest shareholder, Zhu Qi, held 27,152,285 shares, representing 13.44% of the total shares[81] - The company’s actual controllers and major shareholders have committed to not transferring or entrusting their shares for a period of 36 months post-IPO[53] Market and Expansion Plans - The company plans to expand into new high-end industrial stainless steel pipe applications, including nuclear power and coal chemical industries[32] - The company is actively exploring international markets, particularly in the Middle East and South America, while solidifying its domestic market presence[32] - The company aims to enhance its competitiveness in the high-end stainless steel pipe market, focusing on special materials and large-diameter pipes[32] Environmental and Regulatory Compliance - The company emphasizes the importance of environmental protection and plans to enhance its environmental protection measures in line with new national standards[47] - The company reported a half-year wastewater discharge of 6,030 tons, which is within the annual permit limit of 23,556 tons[62] - The company has achieved zero industrial wastewater discharge and all hazardous waste is handled by qualified units[64] - The company was fined 60,000 yuan for environmental violations, which has been paid, and corrective actions have been implemented[71] Risks and Challenges - The report includes a risk statement indicating potential risks associated with forward-looking statements, urging investors to be cautious[4] - The company faces risks from macroeconomic fluctuations, exchange rate changes, and raw material price volatility, which could impact profitability[44] - Future gross margin fluctuations may occur due to various factors, including product mix and raw material costs, affecting overall profitability[45] - The company acknowledges potential project implementation risks due to unforeseen factors that may delay project completion or exceed budget[47] Corporate Governance and Management - The company appointed Lixin Certified Public Accountants as the auditing firm for the fiscal year 2018, following approval at the 2017 annual shareholders' meeting[58] - There were no significant litigation or arbitration matters during the reporting period[58] - The actual controller of the company maintained a good integrity status during the reporting period, with no instances of failing to fulfill court judgments or significant overdue debts[58] Financial Reporting and Accounting Policies - The company has a continuous operating basis for its financial statements, with no significant doubts about its ability to continue operations within the next 12 months[131] - The company’s accounting policies comply with the requirements of enterprise accounting standards, reflecting its financial status and operating results accurately[132] - The company operates under a 12-month business cycle, with its accounting year running from January 1 to December 31[134] - The company’s financial statements are prepared in Renminbi, which is its functional currency[135]

Financial Performance - In 2017, the company's operating revenue reached ¥1,461,195,715.07, representing a 10.14% increase compared to ¥1,326,643,055.42 in 2016[21] - The net profit attributable to shareholders of the listed company was ¥127,826,992.01, a 4.36% increase from ¥122,483,307.34 in the previous year[21] - The basic earnings per share decreased by 20.25% to ¥0.63 from ¥0.79 in 2016[22] - The total assets of the company increased by 10.01% to ¥2,563,623,882.53 at the end of 2017, compared to ¥2,330,316,215.34 at the end of 2016[21] - The company's net cash flow from operating activities significantly decreased by 99.46% to ¥1,470,510.28 from ¥273,204,237.62 in 2016[21] - The weighted average return on net assets decreased by 3.64 percentage points to 6.45% from 10.09% in 2016[22] - The net profit after deducting non-recurring gains and losses was ¥103,545,348.37, down 8.13% from ¥112,708,299.89 in 2016[21] - The company's total distributable profits as of December 31, 2017, amounted to ¥663,986,103.23[5] - The company reported a total revenue of CNY 1,461,195,715.07 for the year 2017, representing a year-on-year growth of 10.14%[42] - The net profit attributable to shareholders was CNY 12,782.70 million, reflecting a year-on-year increase of 4.36%[42] Research and Development - The company holds 57 patents, including 20 invention patents and 37 utility model patents, showcasing its commitment to technological innovation[34] - The company has established a comprehensive R&D platform, including a national enterprise technology center and various recognized research bases, to support the development of stainless steel and corrosion-resistant alloy products[34] - The company has engaged in various projects to enhance its R&D capabilities, including participation in national and industry standard formulation and revision[34] - The company filed 4 new invention patents and 4 utility model patents during the reporting period, indicating ongoing innovation efforts[35] - The company is collaborating with Beijing University of Science and Technology on the development of a new type of austenitic heat-resistant steel, SP 2215, which is expected to have broad application prospects[35] - The company’s R&D expenditure for the year was CNY 67,108,489.65, showing a slight decrease of 0.17% from the previous year[45] Market and Competition - The competitive landscape in the industrial stainless steel pipe industry remains intense, particularly in the low-end market, which is characterized by lower profit margins[33] - The company achieved a significant increase in foreign sales, with a year-on-year growth of 96.68% due to expanded international market efforts[46] - The company is actively expanding into international markets, including the Middle East and South America, while solidifying its domestic market presence[67] - The company emphasizes a strategy of high-quality development, focusing on transitioning from low-end to mid-high-end products in the stainless steel industry[66] - The company has entered the global procurement lists of many well-known foreign engineering companies, indicating a positive outlook for exports[70] Financial Management - The company’s financial risk management includes tracking raw material prices and adjusting procurement plans to mitigate cost fluctuations[72] - The company has established a stable profit distribution policy to ensure reasonable returns for shareholders while considering its operational capabilities[78] - The company reported a net cash outflow from financing activities of ¥58,885,333.05, a decrease of 119.25% year-over-year due to reduced fundraising activities[55] - The company’s total liabilities included a short-term loan of ¥20,000,000.00, a decrease of 42.34% from the previous year[58] - The company’s overall development strategy includes a focus on brand building and high-quality product offerings to enhance its competitive position in the market[67] Environmental Responsibility - The company emphasizes environmental protection and plans to upgrade existing facilities in compliance with new environmental laws[75] - The company achieved zero discharge of industrial wastewater and all environmental monitoring indicators for wastewater, noise, and exhaust gases met standards in 2017[103] - The company continues to promote clean production and improve energy utilization and water recycling rates to reduce pollutant emissions[103] - The company has established an emergency response plan for environmental incidents, which was recompiled in November 2017 and filed with the local environmental authority[104] - The company has implemented a comprehensive environmental self-monitoring program, including quarterly and semi-annual testing of various emissions[104][105] Shareholder and Governance - The actual controller, the Zhu Guoliang family, holds 39.76% of the company's total shares, posing a risk of control over major business decisions[74] - The company’s actual controllers and major shareholders promised that during their tenure, the annual transfer of shares will not exceed 25% of their total holdings[82] - The company has a lock-up period for shares held by major shareholders, which extends for an additional 6 months if the stock price falls below the issue price for 20 consecutive trading days post-listing[121] - The company has not disclosed any significant changes in its shareholding structure or employee incentive plans during the reporting period[91] - The company has established a comprehensive governance structure, ensuring clear responsibilities among shareholders, the board, and management[147] Employee and Management - The total number of common stock shareholders at the end of the reporting period was 21,456, down from 22,014 at the end of the previous month, indicating a decrease of approximately 2.5%[116] - The company has a structured training system that includes both internal and external training programs to enhance employee skills[144] - The company has implemented a compensation policy that links employee income to the company's economic performance and individual performance[143] - The total remuneration for all directors, supervisors, and senior management was 4.445 million yuan[139] - The company employs 936 production personnel, 52 sales personnel, and 162 technical personnel among its workforce[142] Audit and Compliance - The audit report confirmed that the financial statements fairly reflect the company's financial position and results for the year ended December 31, 2017[160] - The internal control audit report indicated that the company maintained effective internal controls over financial reporting as of December 31, 2017[156] - The company has not identified any significant deficiencies in internal controls during the reporting period[156] - The company emphasizes transparency and compliance with regulatory requirements for information disclosure[149] - The company has not reported any penalties from securities regulatory agencies in the past three years[141]

Financial Performance - Net profit attributable to shareholders increased by 269.82% to CNY 32,355,593.06 year-on-year[6] - Operating revenue rose by 70.88% to CNY 394,584,208.25 compared to the same period last year[6] - Basic earnings per share increased by 300% to CNY 0.16 compared to CNY 0.04 in the same period last year[6] - The net profit after deducting non-recurring gains was CNY 27,221,250.71, reflecting a year-on-year increase of 239.23%[6] - Net profit for the period was RMB 32,355,593.06, representing a 269.82% increase from RMB 8,748,904.12 year-on-year[14] - The net profit attributable to the parent company's shareholders reached CNY 32,355,593.06, up from CNY 8,748,904.12, representing a growth of 270.5% year-over-year[30] - The total comprehensive income attributable to the parent company's owners was CNY 32,355,593.06, compared to CNY 8,748,904.12, reflecting a substantial increase[31] Cash Flow - Net cash flow from operating activities improved by 105.12% to CNY 1,157,683.73, recovering from a negative cash flow in the previous year[6] - Cash flow from operating activities improved to RMB 1,157,683.73, a turnaround from a negative RMB 22,621,837.40 in the previous year[14] - Cash flow from operating activities generated a net inflow of CNY 1,157,683.73, a recovery from a net outflow of CNY 22,621,837.40 in the previous year[33] - Total cash inflow from operating activities reached ¥272,528,316.00, compared to ¥224,526,846.54 in Q1 2017, reflecting a year-over-year increase of approximately 21.4%[36] - Cash inflow from financing activities was ¥30,000,000.00, with no inflow recorded in the same period last year[37] - Net cash flow from financing activities improved to ¥29,782,499.99, compared to a net outflow of ¥34,806,207.65 in Q1 2017[37] Assets and Liabilities - Total assets increased by 4.48% to CNY 2,678,393,449.56 compared to the end of the previous year[6] - Total liabilities increased to CNY 626,563,781.73 from CNY 540,539,844.57, marking a rise of 15.9%[23] - The company's total equity as of March 31, 2018, was CNY 2,052,328,529.56, compared to CNY 2,023,193,746.73 at the beginning of the year, reflecting a growth of 1.4%[23] - Inventory as of March 31, 2018, was CNY 812,687,977.86, an increase from CNY 742,173,633.51, representing a growth of 9.5%[22] - Accounts receivable decreased by 50.12% to RMB 81,262,954.45 from RMB 162,903,109.01 at the end of the previous year[14] Shareholder Information - The number of shareholders reached 22,014 by the end of the reporting period[12] - The top shareholder, Zhu Guoliang, holds 16.33% of the shares, totaling 32,991,083 shares[12] Investment and Expenses - The company reported non-recurring gains of CNY 5,134,342.35 during the period[9] - Investment income surged by 636.68% to RMB 5,657,912.89 from RMB 768,026.35 year-on-year[14] - The company reported a significant increase in sales expenses by 41.17% to RMB 6,046,334.29 from RMB 4,282,916.02 year-on-year[14] - The company incurred financial expenses of CNY 290,214.54, a decrease from a financial income of CNY 1,016,025.01 in the previous year[30] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[26]

2017 年第三季度报告 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人朱国良、主管会计工作负责人王锦蓉及会计机构负责人（会计主管人员）王锦蓉 保证季度报告中财务报表的真实、准确、完整。 公司代码：603878 公司简称：武进不锈 1 / 21 江苏武进不锈股份有限公司 2017 年第三季度报告 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 7 | | 四、 | 附录 | 9 | 2017 年第三季度报告 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。 1.4 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 / 21 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 2,486,884,340.79 2,330,316,215.34 6.72 归属于上市公司股东 的净资产 1 ...

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 639,615,101.93, representing a 1.72% increase compared to CNY 628,818,501.08 in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2017 was CNY 59,507,145.31, which is a 23.00% increase from CNY 48,379,186.94 in the previous year[17]. - Basic earnings per share for the first half of 2017 were CNY 0.29, down 9.38% from CNY 0.32 in the same period last year[18]. - The weighted average return on equity decreased to 3.03%, down 1.21 percentage points from 4.24% in the previous year[18]. - The company achieved total operating revenue of ¥639,615,101.93, representing a year-on-year growth of 1.72%[34]. - The net profit attributable to shareholders increased by 23% to ¥59,507,145.31 compared to the same period last year[34]. - Operating costs rose by 1.74% to ¥587,494,563.75, indicating a slight increase in cost pressures[34]. - The company reported a total profit of ¥68,224,576.80, an increase of 20.00% from ¥56,531,742.79 in the previous period[92]. - The total comprehensive income for the current period was ¥59,507,145.31, compared to ¥48,379,186.94 in the previous period, indicating a growth of 23.06%[92]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -74,926,429.01, compared to a positive CNY 288,399,279.98 in the same period last year[17]. - Cash flow from operating activities showed a significant decline, with a net outflow of ¥74,926,429.01 compared to a net inflow of ¥288,399,279.98 in the previous year[37]. - The cash and cash equivalents decreased to CNY 234,983,741.24 from CNY 647,118,332.65, indicating a decline of about 63.7%[82]. - The total cash and cash equivalents decreased by approximately ¥412,134,591.41 during the period, highlighting a significant liquidity contraction[196]. - The company is focusing on improving cash flow management in light of the significant reductions in cash reserves and bank deposits[196]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,496,210,142.43, reflecting a 7.12% increase from CNY 2,330,316,215.34 at the end of the previous year[17]. - The total liabilities of the company as of June 30, 2017, were not explicitly stated in the provided documents, indicating a need for further financial details[81]. - Current liabilities rose to ¥496,661,343.64, compared to ¥339,943,222.29, marking an increase of about 46%[87]. - Total liabilities increased to ¥535,423,008.07 from ¥385,749,823.43, reflecting a growth of approximately 39%[84]. - The company's fixed assets decreased to CNY 340,504,839.73 from CNY 371,848,223.18, a decline of about 8.4%[82]. Investments and R&D - The company reported non-recurring gains of CNY 7,915,694.95 from the disposal of non-current assets[21]. - The company has been recognized as a high-tech enterprise and maintains a strong R&D investment intensity, with 17 authorized invention patents and 40 utility model patents[30]. - Research and development expenses decreased by 35.77% to ¥33,853,306.71, reflecting a reduction in investment in R&D[37]. - The company is focusing on developing high-tech and high-value-added stainless steel pipe products, including large-diameter seamless pipes for petrochemical applications[27]. Market and Competition - The domestic steel industry is experiencing a fragile recovery, with supply-demand relationships remaining unchanged despite overall economic stability[24]. - The company faces intensified market competition, particularly in the mid-to-high-end stainless steel pipe segment, necessitating enhanced R&D and market strategies to improve domestic product substitution[44]. - The company is actively exploring international markets, particularly in the Middle East and South America, while solidifying its domestic market presence[35]. Shareholder and Governance - The company has not disclosed any plans for profit distribution or capital reserve conversion during the reporting period[2]. - The actual controller, the Zhu Guoliang family, poses a risk of influencing major operational decisions through their control[44]. - The actual controller committed that any reduction of shares after the lock-up period will not be lower than the issue price, with an automatic extension of 6 months if the stock price falls below the issue price for 20 consecutive trading days[50]. - The company appointed Lixin Certified Public Accountants as the auditing firm for the fiscal year 2017, continuing from the previous year[55]. Environmental and Social Responsibility - The company reported a total wastewater discharge of 7,988 tons in the first half of 2017, with no exceedance of discharge standards[60]. - The company maintained a stable operation of environmental protection facilities, ensuring zero industrial wastewater discharge[60]. - The company has committed to improving energy utilization and water recycling rates to reduce pollutant emissions[60]. Accounting and Financial Reporting - The financial report for the first half of 2017 has not been audited, which may affect the reliability of the financial data presented[80]. - The company adheres to the revised accounting standards for government grants effective from June 12, 2017[61]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with any exchange differences accounted for in the current period[133]. - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting true and complete financial conditions[123].

Financial Performance - Operating revenue decreased by 18.45% to CNY 230,917,876.94 year-on-year[5] - Net profit attributable to shareholders was CNY 8,748,904.12, a significant recovery from a loss of CNY 2,508,283.07 in the same period last year[5] - Total operating revenue for the current period is ¥230,917,876.94, a decrease of 18.5% from ¥283,148,781.68 in the previous period[23] - Operating profit for the current period is ¥9,356,568.00, compared to a loss of ¥3,329,305.72 in the previous period[23] - The company reported a total profit of ¥9,440,749.57, compared to a loss of ¥2,408,909.30 in the previous period[23] - Basic and diluted earnings per share are both ¥0.04, compared to a loss of ¥0.02 per share in the previous period[24] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 22,621,837.40, compared to a positive inflow of CNY 155,406,233.63 in the previous year[5] - Cash flow from operating activities shows a net outflow of ¥22,621,837.40, contrasting with a net inflow of ¥155,406,233.63 in the previous period[29] - Total cash outflow for operating activities was 246,130,291.10 RMB, which is an increase from 159,881,179.80 RMB in the same period last year[31] - The cash flow from operating activities was impacted by increased payments to suppliers and employees, totaling 188,450,647.99 RMB and 26,694,261.74 RMB respectively[31] Assets and Liabilities - Total assets increased by 0.84% to CNY 2,349,831,839.30 compared to the end of the previous year[5] - Current assets totaled ¥1,803,570,915.38, up from ¥1,778,405,304.39, indicating an increase of about 1.64%[15] - Total liabilities increased to ¥399,748,803.17 from ¥385,749,823.43, showing a growth of approximately 3.00%[15] - Current liabilities totaled ¥355,397,118.16, up from ¥339,943,222.29, reflecting an increase of about 4.03%[15] - Shareholders' equity rose to ¥1,950,083,036.13 from ¥1,944,566,391.91, indicating a growth of approximately 0.28%[15] Cash and Cash Equivalents - The company reported a significant increase in cash and cash equivalents by 156.55% to CNY 402,629,311.80 due to funds raised from a public stock offering[11] - Cash and cash equivalents decreased to ¥400,815,448.41 from ¥644,286,076.42, a decline of approximately 37.73%[19] - Total cash and cash equivalents at the end of Q1 2017 were 352,248,021.63 RMB, down from 560,788,064.49 RMB at the beginning of the period, reflecting a net decrease of 208,540,042.86 RMB[32] Investments - Investment income recognized is ¥768,026.35, indicating positive returns from investments[29] - The company incurred 250,000,000.00 RMB in cash payments for investments during the quarter, indicating a significant investment strategy[32] - The company reported a cash inflow of 100,936,026.35 RMB from investment activities, primarily from cash recovered from investments[32] Shareholder Information - The number of shareholders reached 27,337, with the top ten shareholders holding a combined 60.33% of shares[8] Operating Costs and Expenses - Total operating costs decreased to ¥222,329,335.29, down 22.4% from ¥286,478,087.40 in the previous period[23] - The company has reduced its sales expenses to ¥4,282,916.02, down from ¥5,285,233.57 in the previous period[23] - Management expenses increased slightly to ¥20,982,652.69 from ¥19,964,853.70 in the previous period[23] Other Financial Metrics - The weighted average return on net assets was 0.45%, up from -0.22% year-on-year[5] - The company recorded a net profit increase of CNY 1,125,720.00 due to slight price increases and adjustments in product structure[11] - The company has not reported any significant changes in its commitments or forecasts for the upcoming periods[12] - Deferred income decreased slightly to ¥43,688,011.91 from ¥45,142,928.04, a decline of approximately 3.22%[15] - The company maintained a stable capital reserve of ¥1,068,435,118.21, unchanged from the previous period[15]

Financial Performance - In 2016, the company's operating revenue was CNY 1,326,643,055.42, a decrease of 17.88% compared to CNY 1,615,520,615.08 in 2015[19] - The net profit attributable to shareholders was CNY 122,483,307.34, down 9.8% from CNY 135,802,971.23 in the previous year[19] - The net cash flow from operating activities was CNY 273,204,237.62, a decline of 18.51% compared to CNY 335,246,268.79 in 2015[19] - The basic earnings per share for 2016 were CNY 0.79, a decrease of 12.22% from CNY 0.90 in 2015[20] - The diluted earnings per share for 2016 was CNY 0.79, a decrease of 12.22% compared to CNY 0.90 in 2015[21] - The weighted average return on equity decreased to 10.09% in 2016, down from 12.77% in 2015, a decline of 2.68 percentage points[21] - The net profit for 2016 was CNY 12,248,330, representing earnings per share of CNY 0.79[45] - The company reported a total profit of ¥142,648,032.83, down from ¥158,637,724.48, reflecting a decrease of about 10.1% year-over-year[189] Assets and Liabilities - As of the end of 2016, the total assets amounted to CNY 2,330,316,215.34, reflecting a 26.37% increase from CNY 1,844,080,245.89 in 2015[19] - The net assets attributable to shareholders increased by 74.22% to CNY 1,944,566,391.91 from CNY 1,116,155,106.21 in 2015[19] - Total liabilities decreased to CNY 385,749,823.43 from CNY 727,925,139.68, reflecting a decline of approximately 47%[182] - Owner's equity increased to CNY 1,944,566,391.91 from CNY 1,116,155,106.21, showing a growth of about 74.2%[182] - Short-term borrowings decreased to CNY 34,685,000.00 from CNY 433,540,241.00, a reduction of about 92%[182] Cash Flow - The company's cash flow from operating activities decreased by 18.51% to CNY 273,204,237.62[49] - Cash inflow from operating activities totaled CNY 1,567,526,826.97, a decrease of 16.0% from CNY 1,866,049,948.20 in the previous year[198] - Cash received from sales of goods and services was CNY 1,551,901,581.46, down from CNY 1,830,304,670.92, reflecting a decline in sales performance[198] - Cash outflow for purchasing goods and services was CNY 1,075,644,081.35, a decrease from CNY 1,263,017,382.18, indicating cost control measures[198] Research and Development - Research and development expenses increased by 22.61% to CNY 67,225,213.59, indicating a focus on innovation[49] - The company has established a robust R&D platform, recognized as a high-tech enterprise, with over 160 specialized R&D personnel and collaborations with top universities and research institutes[34] - The company has obtained 57 patents, including 13 invention patents, and actively participates in the formulation and revision of over 20 national and industry standards[35] Market and Industry Position - The main business remains focused on the R&D, production, and sales of industrial stainless steel pipes and fittings, with applications in oil, chemical, and power equipment manufacturing[29] - The steel industry showed signs of recovery in 2016, with significant progress in capacity reduction, boosting industry confidence[31] - The company’s market position is strengthened by its ability to meet the demands of various industries, including petrochemicals, natural gas, and power equipment manufacturing, with stable performance less affected by economic fluctuations[36] Shareholder and Governance - The actual controller and major shareholders committed to not transferring or entrusting their shares for a period of 36 months from the date of the company's stock listing[103] - The company has a commitment to stabilize stock prices if the stock price falls below the net asset value per share within three years after the IPO[104] - The company has a lock-up period for major shareholders, with commitments extending for 36 months for certain individuals, ensuring stability in shareholding[142] - The company does not have any controlling shareholder or actual controller changes during the reporting period, maintaining consistent governance[145] Environmental and Social Responsibility - The company reported a wastewater discharge of 15,665 tons, which is below the annual permitted limit of 23,556 tons[125] - The company continues to promote clean production and improve energy utilization and water reuse rates[127] - The company donated a total of RMB 35,500.00 to support impoverished college students in August 2016[123] Employee and Management - The total number of employees in the parent company is 1,254, with a combined total of 1,266 employees including major subsidiaries[161] - The management compensation is determined based on overall company policies, individual roles, and performance metrics[158] - Employee income is linked to the company's economic performance and individual performance, with benefits including "five insurances and one fund," paid leave, and training[162]