Financial Performance - The company's operating revenue for Q1 2023 was ¥1,084,049,035.77, a decrease of 6.64% compared to ¥1,161,090,531.55 in the same period last year[3] - The net profit attributable to shareholders was -¥257,217,821.78, an improvement of 63.06% from -¥696,344,392.56 year-on-year[3] - The net cash flow from operating activities was -¥277,077,003.49, a decline of 61.61% compared to -¥171,445,190.89 in the previous year[3] - Total operating revenue for Q1 2023 was CNY 1,084,049,035.77, a decrease of 6.65% compared to CNY 1,161,090,531.55 in the same period last year[14] - Net loss for Q1 2023 was CNY 272,674,312.86, compared to a net loss of CNY 700,621,023.20 in Q1 2022, representing a 61.1% improvement[15] - Basic and diluted earnings per share for Q1 2023 were both CNY -0.4827, an improvement from CNY -1.3069 in the previous year[15] Assets and Liabilities - Total assets at the end of the reporting period were ¥5,028,798,638.24, an increase of 3.91% from ¥4,839,450,445.70 at the end of the previous year[3] - The company's total assets decreased to CNY 5,028,798,638.24 from CNY 5,486,080,087.19, a decline of 8.32%[13] - Total liabilities decreased to CNY 7,128,599,802.70 from CNY 7,317,543,983.95, a reduction of 2.58%[13] - The company's total non-current assets amounted to CNY 3,397,418,137.03, down from CNY 3,465,041,940.25, a decrease of 1.96%[12] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 36,121[8] - The largest shareholder, Shenyang Run Electric Heating Co., Ltd., holds 29.99% of the shares, with 145,046,490 shares pledged[8] Cash Flow and Financing Activities - Operating cash inflow for the first quarter was CNY 164,295,964.26, down from CNY 180,387,940.91 in the previous period, representing a decrease of approximately 8.1%[17] - Total cash outflow from operating activities increased to CNY 441,372,967.75 from CNY 351,833,131.80, marking an increase of about 25.5%[17] - Cash inflow from financing activities rose significantly to CNY 360,000,000.00 compared to CNY 131,500,000.00, an increase of approximately 173.3%[17] - Net cash flow from financing activities improved to CNY 140,455,404.93 from CNY 35,213,323.35, indicating a substantial increase of about 298.5%[17] - The company reported a net decrease in cash and cash equivalents of CNY -149,565,783.83, slightly better than the previous period's decrease of CNY -164,314,731.78[17] - The ending balance of cash and cash equivalents was CNY 598,252,211.00, up from CNY 90,611,985.19 in the prior period[17] Cost Management - Total operating costs for Q1 2023 were CNY 1,359,984,694.34, down 26.88% from CNY 1,860,024,378.78 year-on-year[14] - The company experienced a significant reduction in coal costs, contributing to the improved net profit figures[6] - The company reported a significant reduction in financial expenses, with CNY 60,051,189.23 in Q1 2023 compared to CNY 41,545,843.63 in the same period last year[14] Retained Earnings and Equity - The company's equity attributable to shareholders decreased by 238.38% to -¥2,121,364,632.25 due to losses reducing retained earnings[6] - The company continues to face challenges with a negative retained earnings balance of CNY -3,276,981,836.90 as of Q1 2023[13]

Financial Performance - The total revenue for 2022 was approximately ¥1.996 billion, representing a slight increase of 0.45% compared to ¥1.987 billion in 2021[21]. - The net profit attributable to shareholders was a loss of approximately ¥1.939 billion, a significant decline of 777.36% from a loss of ¥220.96 million in 2021[21]. - The basic earnings per share were reported at -¥3.6382, reflecting a decrease of 777.31% from -¥0.4147 in 2021[21]. - The company reported a total profit of -CNY 184,851,780.00 and a net profit attributable to shareholders of -CNY 193,857,610.00 for 2022, indicating significant financial losses due to high coal prices and increased operational costs[37]. - The total operating cost for 2022 was CNY 3,029,839,226.95, representing a year-on-year increase of 34.93% compared to CNY 2,245,518,967.58 in 2021[48]. - The total coal cost incurred by the company in 2022 was CNY 1,611,121,138.38, which has a major impact on the company's profitability[200]. Cash Flow and Assets - The net cash flow from operating activities improved by 24.60%, amounting to a loss of approximately ¥235.24 million compared to a loss of ¥311.99 million in the previous year[21]. - The company reported a net cash outflow from operating activities of CNY -235,243,270.58, an improvement of 24.60% compared to CNY -311,988,735.06 in 2021[53]. - The cash and cash equivalents increased by 309.23% to CNY 492,891,277.86 from CNY 120,442,966.84 in the previous year[54]. - Total assets at the end of 2022 were approximately ¥5.486 billion, down 6.14% from ¥5.845 billion at the end of 2021[21]. - The company’s total assets at the end of 2022 were CNY 548,608,010.00, with total liabilities of CNY 731,754,400.00, leading to a negative net asset position of -CNY 186,848,390.00[37]. Operational Efficiency and Workforce - The company reduced its workforce by approximately 1,200 employees, achieving a 54% reduction in management levels to enhance operational efficiency[39]. - The company’s management expenses surged by 438.22% to CNY 566,189,786.02, primarily due to employee settlement costs from organizational restructuring[51]. - The company is focusing on enhancing operational efficiency and market positioning in the heating industry[87]. - The company aims to enhance operational efficiency and achieve sustainable development through strategic reforms and management upgrades[72]. Market Position and Strategy - The company serves a total of 96.81 million users, with a heating area of 84.31 million square meters, making it the largest state-owned heating company in Shenyang[33]. - The company aims to optimize its heating energy structure and increase the proportion of clean energy heating, aligning with the city's goal of achieving 100% clean heating by 2024[31]. - The company has a competitive edge due to its extensive user resources and a well-established heating network across major urban areas in Shenyang[34]. - The company is actively involved in the integration of heating enterprises in Shenyang, aiming to enhance the resilience of the heating market[71]. Environmental and Regulatory Compliance - The company has implemented environmental impact assessments and completed relevant environmental protection procedures for most projects[126]. - The company aims to reduce carbon emissions by enhancing coal utilization efficiency and optimizing the smart heating network system[131]. - The company has adhered to environmental protection policies and standards, ensuring compliance with regulations[125]. - The company’s emissions of nitrogen oxides were recorded at 146 mg/m³, which is below the regulatory limit of 200 mg/m³[128]. Governance and Shareholder Relations - The company maintains a governance structure that complies with relevant laws and regulations, ensuring equal rights for all shareholders[81]. - The board of directors operates independently and adheres to legal requirements, ensuring sound decision-making and protection of shareholder interests[81]. - The company has established independent operations in terms of personnel, assets, finance, and business, ensuring no interference from the controlling shareholder[86]. - The company has implemented strict information disclosure policies, ensuring timely and accurate communication with investors[83]. Challenges and Risks - The company has acknowledged the existence of uncertainties regarding its ability to continue as a going concern[21]. - Risks include fluctuations in raw material prices, particularly coal, which significantly impact profitability; the company is implementing long-term procurement strategies to mitigate this risk[74]. - The company is actively enhancing its peak heating source capacity to mitigate risks associated with its reliance on external suppliers[75]. Future Outlook - Future guidance indicates a focus on sustainable growth and profitability in the upcoming fiscal year[90]. - The company is committed to integrating new technologies and processes to improve energy efficiency and reduce costs[72]. - The company is actively exploring potential mergers and acquisitions to strengthen its market position[93].

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥1.18 billion, representing a 13.19% increase compared to ¥1.05 billion in the same period last year[21]. - The net profit attributable to shareholders of the listed company was approximately -¥855.36 million, a significant decrease of 2,962.31% compared to -¥27.93 million in the previous year[21]. - The net cash flow from operating activities improved by 78.25%, amounting to approximately -¥95.80 million, compared to -¥440.47 million in the same period last year[21]. - The basic and diluted earnings per share were both -¥1.6053, a decline of 2,963.55% from -¥0.0524 in the same period last year[21]. - The company's operating revenue for the reporting period was CNY 1,184,426,145.93, representing a 13.19% increase compared to CNY 1,046,380,478.06 in the same period last year[33]. - Operating costs surged to CNY 1,889,157,818.21, an increase of 85.63% from CNY 1,017,724,764.40, primarily due to rising coal prices[33]. - The company's operating profit for the first half of 2022 was a loss of CNY 864,117,212.39, compared to a profit of CNY 2,350,735.49 in the first half of 2021[133]. - Net profit for the first half of 2022 was a loss of CNY 862,926,482.05, compared to a loss of CNY 27,870,189.49 in the same period of 2021[133]. Assets and Liabilities - Total assets decreased by 20.43% to approximately ¥4.65 billion from ¥5.84 billion at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were approximately -¥785.99 million, a decrease of 1,310.21% compared to ¥64.95 million at the end of the previous year[21]. - Cash and cash equivalents decreased by 2.35% to CNY 110.53 million, down from CNY 276.48 million[39]. - Accounts receivable increased by 3.91% to CNY 514.33 million, compared to CNY 418.11 million[39]. - Inventory decreased significantly by 14.83% to CNY 161.34 million, down from CNY 1.07 billion[39]. - Total liabilities as of June 30, 2022, were CNY 5,387,901,728.66, down from CNY 5,723,518,153.17, reflecting a decrease of approximately 5.9%[126]. - The company's total equity attributable to the parent company was CNY -785,989,043.01, a significant decline from CNY 64,946,695.67 at the beginning of the year[126]. Operational Efficiency and Management - The company continues to focus on improving operational efficiency and managing financial risks amid challenging market conditions[4]. - The company has strengthened its receivables collection efforts, recovering all outstanding heating-related subsidies and other receivables with government support[30]. - The company has initiated early collection of heating fees and enhanced customer service management to address user concerns and improve service quality[30]. - The company is actively pursuing internal personnel and institutional reforms to enhance operational efficiency and service delivery[30]. Environmental Compliance and Risks - The company has acknowledged potential risks in its operations, as detailed in the management discussion and analysis section[4]. - The company faces significant risks from raw material price fluctuations, particularly coal prices, which have remained high since the second half of 2021, impacting profitability[53]. - Environmental compliance costs are increasing due to stricter regulations, necessitating significant investments in new heating sources and pollution control facilities[53]. - The company has implemented upgrades to pollution control facilities, achieving emissions that meet regulatory standards[62]. - The company has established emergency response plans to mitigate heating supply risks associated with its reliance on Shenyang Huaren Thermal Power Co.[54]. Legal Matters and Penalties - The company has not engaged in any significant litigation or arbitration matters during the reporting period[82]. - The company has outstanding debts amounting to 25.2468 million yuan related to a debt transfer agreement, which has led to potential financial and management cost increases[83]. - The company faced administrative penalties totaling CNY 45,000 due to environmental compliance issues, including a fine of CNY 35,000 for non-compliant operation of air pollution control facilities[67]. - The company received an administrative penalty of 50,000 yuan for improper cash collection practices at its service hall[84]. Shareholder and Equity Information - The largest shareholder, Shenyang Heating Group Co., Ltd., held 35.10% of the shares, totaling 187,050,118 shares, with 93,000,000 shares pledged[111]. - The company did not experience any changes in the controlling shareholder or actual controller during the reporting period[114]. - The report indicates that there were no significant changes in the holdings of directors, supervisors, and senior management during the reporting period[113]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[112]. Future Plans and Investments - The company plans to enhance coal procurement management through a dedicated materials company to improve supply quality and reduce costs[53]. - The company is exploring new materials and technologies to replace traditional high-energy-consuming coal boilers[53]. - The company is actively investing in smart heating network systems to enhance efficiency and reduce carbon emissions[68]. Financial Reporting and Standards - The financial report for the first half of 2022 was approved by the board on August 25, 2022[156]. - The company adheres to the enterprise accounting standards, ensuring that its financial statements accurately reflect its financial position and results[161]. - The company prepares consolidated financial statements based on control, including all subsidiaries, and adjusts for any inconsistencies in accounting policies[173].

Financial Performance - The company's operating revenue for Q1 2022 was ¥1,161,090,531.55, representing an increase of 11.65% compared to ¥1,039,895,968.81 in the same period last year[3] - The net profit attributable to shareholders was a loss of ¥696,344,392.56, a decrease of 616.69% from a profit of ¥134,770,193.19 in the previous year[3] - The company reported a net loss of -1,777,532,343.15 yuan, compared to a loss of -1,081,187,950.59 yuan at the beginning of the year[15] - The net profit for Q1 2022 was a loss of ¥700,621,023.20, compared to a profit of ¥136,090,147.70 in Q1 2021, marking a significant decline[17] - The company reported a basic and diluted earnings per share of -¥1.3069 for Q1 2022, compared to ¥0.2529 in Q1 2021[17] Cash Flow and Liquidity - The net cash flow from operating activities improved by 53.09%, reaching -¥171,445,190.89, compared to -¥365,496,630.95 in Q1 2021[3] - The operating cash flow for Q1 2022 was negative at ¥171,445,190.89, an improvement from a negative cash flow of ¥365,496,630.95 in Q1 2021[20] - Cash paid for purchasing goods and services decreased by 49.01% to ¥236,105,827.84, reflecting reduced payments for coal and heating fees[8] - Cash and cash equivalents at the end of Q1 2022 stood at ¥90,611,985.19, down from ¥254,926,716.97 at the beginning of the period[21] - The net cash flow from financing activities was positive at ¥35,213,323.35, compared to ¥3,769,573.95 in Q1 2021[21] Assets and Liabilities - Total assets decreased by 17.20% to ¥4,839,450,445.70 from ¥5,844,817,042.89 at the end of the previous year[3] - Total current assets decreased from 2,216,938,088.98 yuan at the beginning of the year to 1,289,386,736.53 yuan at the end of the reporting period, a reduction of approximately 41.8%[14] - Total liabilities decreased from 5,723,518,153.17 yuan to 5,414,298,217.54 yuan, a reduction of about 5.4%[15] - Non-current liabilities decreased from 801,583,693.02 yuan to 488,665,914.03 yuan, a reduction of about 39.0%[15] Shareholder Information - Total number of common shareholders at the end of the reporting period is 32,354[10] - The largest shareholder, Shenyang Heating Group Co., Ltd., holds 35.10% of shares, totaling 187,050,118 shares, with 93,000,000 shares pledged[10] Operating Costs and Expenses - The company's operating costs surged by 95.63% to ¥1,787,398,510.15, primarily due to increased coal costs[7] - Total operating costs surged to ¥1,860,024,378.78, up 92.0% from ¥970,627,782.92 in the previous year[16] - The company incurred financial expenses of ¥41,545,843.63, which increased from ¥28,424,890.85 in the previous year[16] - The financial expenses rose by 46.16% to ¥41,545,843.63, attributed to increased borrowing costs[7] - The company reported a significant increase in sales expenses, which rose to ¥3,673,091.53 from ¥3,367,901.66 in the previous year[16] Accounts Receivable - The company reported a significant increase in accounts receivable, which rose by 31.55% to ¥550,008,027.55 due to recognized heating fee income[7] - Accounts receivable increased from 418,110,650.96 yuan to 550,008,027.55 yuan, an increase of approximately 31.5%[13] Other Information - The company has not disclosed any new product or technology developments, market expansion, or acquisition strategies in the current report[12]

Financial Performance - The company's operating revenue for 2021 was ¥1,987,280,598.28, representing a 4.94% increase compared to ¥1,893,801,466.80 in 2020[20] - The net profit attributable to shareholders was -¥220,956,177.70, an improvement of 77.28% from -¥972,425,918.63 in the previous year[20] - The net cash flow from operating activities was -¥311,988,735.06, a decline of 182.84% compared to ¥376,630,852.60 in 2020[20] - The total assets at the end of 2021 amounted to ¥5,844,817,042.89, which is a 16.88% increase from ¥5,000,795,830.54 at the end of 2020[20] - The net assets attributable to shareholders decreased by 77.13% to ¥64,946,695.67 from ¥283,996,946.14 in 2020[20] - The basic earnings per share improved to -¥0.4147 from -¥1.8250 in 2020, reflecting a 77.28% increase[20] - The weighted average return on net assets was -126.33%, slightly improved from -126.36% in the previous year[20] - The company reported a net profit excluding non-recurring gains and losses of -¥510,438,060.40, a 9.14% improvement from -¥561,803,056.70 in 2020[20] Revenue and User Metrics - In Q1 2021, the company reported revenue of approximately CNY 1.04 billion, while in Q2 and Q3, revenues significantly dropped to CNY 6.48 million and CNY 5.75 million respectively, before rebounding to CNY 935.15 million in Q4[25] - The net profit attributable to shareholders was CNY 134.77 million in Q1, but the company faced losses in the subsequent quarters, with Q2 and Q3 losses of CNY 162.70 million and CNY 162.32 million respectively, and a smaller loss of CNY 30.70 million in Q4[25] - The net cash flow from operating activities showed a negative CNY 365.50 million in Q1, but improved to a positive CNY 271.99 million in Q4, indicating a recovery in cash generation[25] - The company has a stable user base with over 930,000 heating users and a heating area of over 81 million square meters, accounting for approximately 25% of the total heating area in Shenyang[37] - The user base grew to 3 million active users, marking a 1.1% increase compared to the previous year[2] Government Support and Market Position - The company benefits from government support through policies like the "Blue Sky Project" and "Warm House Project," which enhance its market share and operational load[39] - The company is focused on optimizing its heating energy structure and increasing the proportion of clean energy heating in response to national carbon neutrality goals[32] - The company plans to deepen strategic cooperation with China Resources Group to increase the proportion of combined heat and power generation and enhance technological innovation[80] - The company is focused on building a clean, low-carbon, safe, and efficient heating system in line with national clean heating initiatives and carbon neutrality goals[78] Operational Efficiency and Cost Management - The gross profit margin for the heating segment decreased by 16.27% year-on-year, indicating increased operational costs[53] - The company experienced a 10.40% increase in fuel costs, which amounted to ¥860,832,060.94, making up 38.34% of total operating costs[56] - Operational efficiency improvements are expected to reduce costs by 3% in the next fiscal year[8] Environmental Compliance and Initiatives - The company is classified as a key pollutant discharge unit and has implemented various pollution control measures, achieving emissions within regulatory standards[137] - The company has upgraded pollution control facilities and improved monitoring systems to minimize pollutant emissions[137] - The company faced administrative penalties totaling CNY 200,000 for non-compliance with air pollution control regulations[141] - The company is actively enhancing its environmental emergency response plans to mitigate risks associated with environmental incidents[139] - The company has committed to improving coal quality inspections to ensure compliance with national standards[141] Corporate Governance - The company has established a sound corporate governance structure in compliance with relevant laws and regulations, ensuring effective internal management and control systems[93] - The board of directors operates independently and has made decisions in accordance with the company's articles of association, ensuring the protection of shareholders' rights[95] - The supervisory board has effectively monitored the company's operations, financial status, and compliance with laws, ensuring lawful and standardized operations[96] - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, and finance, with no instances of fund occupation by the controlling shareholder[101] Employee and Management Structure - The total number of employees at the end of the reporting period was 2,347, with 936 in the parent company and 1,411 in major subsidiaries[123] - The professional composition included 1,388 production personnel, 178 sales personnel, 134 technical personnel, 67 financial personnel, and 580 administrative personnel[124] - The educational background of employees showed 56 with master's degrees or above, 705 with bachelor's degrees, and 1,586 with associate degrees or below[124] Future Outlook and Strategic Plans - The company has set a revenue guidance of 2.7 billion for the next fiscal year, indicating an expected growth of 4.0%[3] - New product launches are anticipated to contribute an additional 500 million in revenue over the next year[4] - The company is investing in new technology development with a budget allocation of 200 million for R&D in the upcoming fiscal year[5] - Market expansion plans include entering two new provinces, aiming for a 10% increase in market share[6] Related Party Transactions - The company engaged in related party transactions, purchasing heating from Shenyang Huiyong Heating Co. for ¥5.3509 million, accounting for 0.10% of similar transactions[163] - The company purchased agricultural products from Shenyang Urban Public Utility Group for ¥7.7561 million, which is 60.00% of the approved transaction amount[163] - The company sold coal to Shenyang Huiyong Heating Co. for ¥9.265 million, representing 2.20% of similar transactions[163] Financial Management and Debt - The company secured a loan of 320 million yuan from Shengjing Bank, with a one-year term, guaranteed by the gas group and secured by part of its heating assets[170] - The company borrowed 30 million yuan from the gas group, secured by part of its heating revenue rights, with a nine-month term[170] - The total guarantee amount for subsidiaries is 16,000, with an actual guarantee balance of 8,000, representing 1,953.91% of the company's net assets[178]

Financial Performance - The company's operating revenue for Q3 2021 was ¥5,753,121.97, a decrease of 32.20% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥162,319,454.16, down 39.40% year-on-year, while the net profit after deducting non-recurring gains and losses was -¥168,688,345.39, a decrease of 43.25%[3]. - The company's basic and diluted earnings per share were both -¥0.3046, reflecting a 39.40% decrease year-on-year[3]. - Operating profit improved to -¥187,508,801.80 compared to -¥409,868,682.05 in the previous period, indicating a significant reduction in losses[21]. - Net profit for the current period was -¥194,189,333.67, an improvement from -¥320,007,250.75 in the previous period, showing a decrease in losses of approximately 39.3%[22]. - Basic and diluted earnings per share improved to -0.3571 from -0.5957 in the previous period, indicating a better performance per share despite still reporting losses[22]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,029,057,540.27, reflecting a slight increase of 0.57% from the end of the previous year[3]. - The total liabilities increased to ¥4,866,762,254.51 from ¥4,645,877,052.13, reflecting a rise of 4.7%[18]. - The total non-current liabilities increased to ¥1,237,011,055.45 from ¥1,092,212,758.51, marking an increase of 13.2%[18]. - The company's equity totaled CNY 354,918,778.41, with a significant retained earnings deficit of CNY -860,231,772.89[30]. - Short-term borrowings were reported at CNY 1,618,841,228.43, indicating a reliance on short-term financing[29]. Cash Flow - The net cash flow from operating activities for the year-to-date was -¥583,985,237.93, a decline of 49.27%[3]. - Cash flow from operating activities showed a net outflow of -¥583,985,237.93, worsening from -¥391,214,835.38 in the previous period[24]. - Cash flow from investing activities generated a net inflow of ¥214,758,045.62, compared to a net outflow of -¥42,878,338.61 in the previous period[25]. - Cash flow from financing activities resulted in a net inflow of ¥453,159,864.89, an increase from ¥398,366,575.98 in the previous period[25]. - The company reported cash and cash equivalents at the end of the period amounting to ¥218,416,422.71, up from ¥113,143,027.55 in the previous period[25]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 35,889[10]. - Shenyang Heating Group Co., Ltd. holds 35.10% of shares, amounting to 187,050,118 shares, with 93,000,000 shares pledged[10]. Operational Challenges - The company is facing cost pressures due to rising coal prices, impacting cost control measures[12]. - The company has intensified maintenance work during non-heating periods to improve operational efficiency and mitigate the impact of rising coal prices[12]. Other Financial Metrics - The company's weighted average return on equity was -91.27%, a decrease of 79.61% compared to the previous year[3]. - The company incurred financial expenses of ¥116,693,917.90, slightly increasing from ¥115,417,584.97 in the previous period[21]. - The company reported a significant increase in prepayments, which rose by 137.32% to ¥342,404,194.97 due to increased coal payments[7]. - The company’s long-term borrowings increased by 75.94% to ¥528,000,000.00, attributed to new bank loans[7]. - The total amount of other receivables was CNY 489,275,637.26, which may indicate potential liquidity issues[28]. - The implementation of the new leasing standard resulted in the reclassification of certain assets and liabilities, impacting financial reporting[31]. - The company has not conducted an audit for the third-quarter report, which may affect the reliability of the financial data presented[32].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,046,380,478.06, representing a 3.98% increase compared to ¥1,006,373,369.53 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥27,931,970.97, an improvement of 86.10% from -¥200,986,883.65 in the previous year[20]. - The basic earnings per share improved to -¥0.0524 from -¥0.3772, reflecting an 86.11% increase[20]. - The weighted average return on net assets was -10.26%, an improvement of 7.12 percentage points from -17.38% in the previous year[20]. - The company reported a net loss of CNY 888,163,743.86 in retained earnings as of June 30, 2021, compared to a loss of CNY 860,231,772.89 at the end of 2020[120]. - The company reported a net loss of CNY 27,870,189.49 for the first half of 2021, an improvement from a net loss of CNY 201,559,338.44 in the same period of 2020[124]. - The total comprehensive income for the period decreased by CNY 27,931,970.97, reflecting a significant decline in profitability[138]. - The total comprehensive income for the current period decreased by CNY 78,607,490.19, reflecting a significant decline compared to the previous period[145]. Cash Flow and Investments - The net cash flow from operating activities was -¥440,473,477.26, which is a decrease of 13.58% compared to -¥387,796,433.23 in the same period last year[20]. - The company achieved a net cash flow from investment activities of CNY 269,661,753.26, a substantial increase of 1,207.03% from a net outflow of CNY 24,359,064.18 in the previous year[33]. - Cash flow from financing activities generated a net inflow of 180,679,104.35 yuan, down from 467,813,047.65 yuan in the first half of 2020, indicating a decrease of approximately 61.4%[131]. - The company recorded a significant increase in cash inflow from investment activities, totaling 318,205,170.00 yuan, compared to only 5,282.00 yuan in the same period last year[130]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,615,076,048.61, down 7.71% from ¥5,000,795,830.54 at the end of the previous year[20]. - The company's total liabilities increased to CNY 2,468,025,652.94 from CNY 2,389,943,734.81, reflecting a growth of approximately 3.3%[124]. - The company's total liabilities decreased to CNY 4,283,702,517.96 from CNY 4,645,877,052.13, a reduction of about 7.8%[120]. - The company's short-term borrowings were CNY 1,609.00 million, representing 34.86% of total liabilities[41]. Revenue Segments - The heating segment accounted for 98.58% of total operating revenue, with a slight increase of 2.63% year-on-year[35]. - The company's total revenue for the heating segment was approximately CNY 1,031.51 million, representing a year-on-year increase of 2.63%[37]. - Revenue from the heating engineering segment decreased by 93.89% year-on-year due to a reduction in business volume[38]. - The company reported a significant increase in revenue from entrusted operations, which rose by 1,083.80% year-on-year, attributed to new business activities[37]. Cost Management - The operating cost decreased by 9.32% to CNY 1,017,724,764.40 from CNY 1,122,317,706.22, indicating effective cost control measures[33]. - The company incurred a total operating expense of 693,928,182.99 yuan, which is an increase from 663,058,180.97 yuan in the previous year, reflecting a rise of about 4.1%[130]. Environmental Compliance - The company is classified as a key pollutant discharge unit by the environmental protection department[64]. - Total emissions of sulfur dioxide from various plants reached 215.13 tons, with some exceeding the emission standard of 30 mg/m³[64]. - The company faced a fine of 200,000 yuan for non-compliance with air pollution prevention measures due to equipment malfunction[67]. - The company has implemented upgrades to pollution control facilities, achieving compliance with environmental discharge standards[64]. Shareholder Information - The largest shareholder, Shenyang Heating Group Co., Ltd., holds 35.10% of the shares, totaling 187,050,118 shares, with 93,000,000 shares pledged[106]. - The company reported a total of 32,429 common stock shareholders at the end of the reporting period[106]. - The company did not distribute cash dividends or issue new shares during the reporting period[60]. Strategic Initiatives - The company has implemented internal reforms to enhance operational efficiency and reduce costs, focusing on energy-saving indicators for key costs such as coal, water, electricity, and heat[28]. - The company has developed a strategic coal procurement plan in response to rising coal prices due to supply-demand imbalances exacerbated by the pandemic and international conditions[29]. - The company is actively researching and developing new technologies and equipment to align with national energy-saving and environmental protection trends, enhancing its profitability and corporate image[30]. Legal and Compliance Issues - The company faced 33 contract dispute cases, with a total compensation of 30,485,500 CNY already paid[77]. - The company is involved in ongoing litigation related to a loan contract dispute with an associate company[96]. - The company has not reported any non-compliance issues regarding the use of non-operating funds by major shareholders[70]. Financial Reporting and Accounting - The company's financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[158]. - The company’s accounting policies and estimates are in accordance with the enterprise accounting standards, ensuring accurate financial reporting[160]. - The company uses RMB as its functional currency for financial reporting[164].

Financial Performance - In 2020, the company's operating revenue was CNY 1,893,801,466.80, an increase of 2.33% compared to CNY 1,850,660,645.78 in 2019[18]. - The net profit attributable to shareholders was a loss of CNY 972,425,918.63, a significant decline of 741.94% from a loss of CNY 115,497,722.00 in 2019[18]. - The net cash flow from operating activities reached CNY 376,630,852.60, a remarkable increase of 17,431.56% compared to CNY 2,148,302.46 in 2019[18]. - The total assets at the end of 2020 were CNY 5,000,795,830.54, down 17.40% from CNY 6,054,140,345.49 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 77.37% to CNY 283,996,946.14 from CNY 1,255,144,588.09 in 2019[18]. - The basic earnings per share for 2020 was CNY -1.8250, a decrease of 727.08% from CNY -0.2168 in 2019[18]. - The total operating revenue for 2020 was approximately CNY 1.89 billion, representing a year-on-year increase of 2.33%[47]. - Heating revenue accounted for 92.64% of total operating revenue, with a decrease of 5.04% compared to the previous year[47]. Operational Challenges - The company indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[18]. - In 2020, the company reported a significant loss of approximately 410.62 million yuan due to various factors, including the bankruptcy restructuring of its parent company and related entities[25]. - The company faced a bad debt provision of 66.56 million yuan, reflecting the impact of the bankruptcy of its associated companies[39]. - The company’s government subsidies decreased significantly from 86.30 million yuan in 2019 to 19.48 million yuan in 2020[24]. - The gross profit margin for heating services decreased by 6.36% to -7.85% in 2020, indicating pressure on profitability[50]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares for the year[7]. - The company aims to reduce energy consumption by an additional 10% through internal reforms and enhanced management practices[42]. - The company is establishing a specialized subsidiary for bulk material procurement to manage costs more effectively amid rising coal prices[43]. - The company is exploring coal hedging strategies to mitigate procurement costs associated with seasonal price fluctuations[44]. - The company plans to enhance its heating operation efficiency by improving system design and implementing advanced technologies[82]. Environmental Compliance - The company emphasizes its commitment to environmental protection and energy efficiency in response to increasing regulatory pressures[33]. - The company is facing significant pressure regarding environmental compliance costs due to stricter air emission standards and regulations[85]. - The total emissions of sulfur dioxide reached 215.13 tons, with a concentration of 2.49 mg/m³, exceeding the standard of 200 mg/m³[133]. - The total emissions of nitrogen oxides were 268.91 tons, with a concentration of 142 mg/m³, also exceeding the standard of 200 mg/m³[133]. - The company reported a penalty of CNY 25 million for exceeding sulfur dioxide and nitrogen oxide emissions, which has been rectified and paid[139]. Governance and Management - The company has retained the same accounting firm for three consecutive years, with an audit fee of 800,000 CNY for the current year[100]. - The company has a total of 10 board members, including independent directors, ensuring compliance with governance standards[169]. - The current chairman, Cui Yan, has been in position since July 2020, indicating stability in leadership[166]. - The management team includes professionals with expertise in engineering and finance, which supports the company's technical and financial strategies[174]. - The company has implemented a training program for middle management, focusing on strategic development, management skills, and new technologies[186]. Employee Relations - The total number of employees in the company is 2,426, with 948 in the parent company and 1,478 in major subsidiaries[183]. - The total pre-tax remuneration for senior management in 2020 amounted to 353.97 million CNY, with the highest individual remuneration being 41.44 million CNY for the general manager[181][182]. - The company has established a comprehensive salary management system to enhance employee motivation and performance[185]. - The independent directors receive an annual allowance of 60,000 CNY (after tax), which is approved by the shareholders' meeting[179]. - The company emphasizes safety production and has a system for awarding safety bonuses based on compliance with safety responsibilities[185]. Market Position - The company has a strong competitive advantage due to its extensive user base and established heating network across Shenyang[35]. - The company aims to increase its market share in the heating industry by integrating existing resources and developing new customer relationships[81]. - The company is positioned to benefit from government policies aimed at improving urban heating infrastructure and environmental standards[36]. - The company’s main business is heating services, with a stable annual growth rate of approximately 6% in heating load area in Shenyang, reaching a total heating area of 385 million square meters by 2020[40]. - The company has established a customer service rapid response mechanism to improve service quality and efficiency[83].

Financial Performance - The company's operating revenue for 2020 was CNY 1,893,801,466.80, representing a 2.33% increase compared to CNY 1,850,660,645.78 in 2019[18]. - The net profit attributable to shareholders for 2020 was a loss of CNY 972,425,918.63, a significant decline of 741.94% from a loss of CNY 115,497,722.00 in 2019[18]. - The net cash flow from operating activities was CNY 376,630,852.60, a remarkable increase of 17,431.56% compared to CNY 2,148,302.46 in 2019[18]. - The total assets at the end of 2020 were CNY 5,000,795,830.54, down 17.40% from CNY 6,054,140,345.49 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 77.37% to CNY 283,996,946.14 from CNY 1,255,144,588.09 in 2019[18]. - The basic earnings per share for 2020 was -CNY 1.8250, reflecting a decrease of 727.08% from -CNY 0.2168 in 2019[18]. - The weighted average return on equity was -126.36% in 2020, a decline of 117.56% from -8.80% in 2019[18]. - The company reported a significant loss in each quarter, with the fourth quarter loss reaching CNY 654,998,738.68[23]. Operational Challenges - The company has indicated uncertainty regarding its ability to continue as a going concern due to negative net profits in recent years[18]. - In 2020, the company reported a significant loss of approximately 410.62 million yuan due to various factors, including the bankruptcy restructuring of its parent company and related entities[25]. - The company faced a long-term investment impairment of approximately 38 million yuan related to its stake in a subsidiary undergoing bankruptcy restructuring[39]. - The company relies heavily on the Shenyang Huarun Thermal Power Co., Ltd. for heat supply, which poses a risk if there are operational uncertainties[84]. Revenue Sources and Business Model - The company's main business is heating services, with a stable annual growth rate of approximately 6% in heating load area in Shenyang, reaching a total heating area of 385 million square meters by 2020[40]. - The heating segment accounted for 92.64% of total revenue in 2020, with revenue from heating services decreasing by 5.04% year-on-year[47]. - The company's heating supply area reached 73.54 million square meters, accounting for nearly 25% of the total heating area in Shenyang[32]. - The company's heating business operates under two main models: coal-fired boilers and combined heat and power (CHP) systems[29]. Cost Management and Efficiency - The cost of fuel increased by 12.06% year-on-year, amounting to approximately CNY 779.74 million, which impacted the overall profitability[52]. - The company established a specialized subsidiary for bulk material procurement to manage costs effectively amid rising coal prices[43]. - The company aims to reduce energy consumption by an additional 10% through internal reforms and enhanced management practices[42]. - The gross profit margin for the heating segment decreased by 6.36% year-on-year, indicating pressure on profitability[50]. Technological Innovation and Development - The company emphasizes technological innovation and has established a leading position in intelligent heating network control technology[35]. - The company is focusing on technological innovation and collaboration with universities to achieve energy-saving goals within five years[42]. - New product development includes the launch of an innovative heating technology expected to reduce energy consumption by 30%[171]. Environmental Compliance and Initiatives - The company is classified as a key pollutant discharge unit by the environmental protection department[131]. - Total emissions of sulfur dioxide reached 34.56 tons, with a maximum allowable concentration of 200 mg/m³[132]. - Total emissions of nitrogen oxides were 42.38 tons, exceeding the standard concentration of 200 mg/m³[132]. - The company implemented upgrades to pollution control facilities, including new online monitoring equipment and desulfurization systems[132]. - The company aims to minimize pollutant emissions through continuous improvement of environmental technology measures[132]. Corporate Governance and Shareholder Relations - The company continues to enhance its corporate governance structure to protect shareholder rights and interests[123]. - The independent directors of the company have actively provided valuable opinions and suggestions on profit distribution, external audit appointments, and risk prevention, which were fully adopted[195]. - The board of directors is actively involved in governance, with independent directors ensuring compliance and oversight[164]. - The company has maintained compliance with the latest corporate governance regulations without significant discrepancies[188]. Future Outlook and Strategic Plans - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year[170]. - The company plans to expand its market presence by entering two new provinces in the upcoming year[172]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance market share by 5%[173]. Employee Management and Development - The total number of employees in the company is 2,426, with 948 in the parent company and 1,478 in major subsidiaries[180]. - The company has established a comprehensive salary management system to enhance employee motivation and performance[182]. - The company has implemented targeted training programs for various employee levels to enhance skills and knowledge[186]. Risk Management - The company faces risks from raw material price fluctuations, particularly coal prices, which significantly impact profitability[84]. - Environmental regulations are becoming stricter, increasing the financial pressure on the company to upgrade its heating facilities to meet compliance standards[84]. - The company is enhancing its coal procurement management to improve supply quality and reduce costs through meticulous management practices[83].

Financial Performance - The company's operating revenue for Q1 2021 was ¥1,039,895,968.81, representing a 2.23% increase compared to ¥1,017,193,687.67 in the same period last year[8] - Net profit attributable to shareholders was ¥134,770,193.19, a significant increase of 272.38% from a loss of ¥78,183,517.97 in the previous year[8] - The net profit after deducting non-recurring gains and losses was ¥34,717,329.55, up 143.52% from a loss of ¥79,767,515.94 in the same period last year[8] - The basic earnings per share increased to ¥0.2529, compared to a loss of ¥0.1467 in the same period last year, marking a 272.39% improvement[8] - The weighted average return on net assets rose to 38.10%, up 44.52 percentage points from -6.42% in the previous year[8] - The company reported a net profit of CNY 136,090,147.70 for Q1 2021, compared to a net loss of CNY 77,501,562.57 in the same period last year, indicating a significant turnaround[38] - The company achieved an operating profit of CNY 167,918,590.08 in Q1 2021, a significant improvement from an operating loss of CNY 94,738,142.52 in the previous year[38] - The total profit for Q1 2021 was CNY 167,476,758.93, compared to a total loss of CNY 95,044,630.51 in the same period last year[38] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,592,286,723.21, down 8.17% from ¥5,000,795,830.54 at the end of the previous year[8] - Net assets attributable to shareholders increased by 49.07% to ¥423,365,610.83 from ¥283,996,946.14 at the end of the previous year[8] - Non-current assets totaled CNY 3,217,303,540.32, down from CNY 3,534,161,508.49, reflecting a decrease of approximately 9%[32] - Total liabilities amounted to CNY 4,096,679,325.60, a decrease of about 12% from CNY 4,645,877,052.13[31] - The company's total current liabilities decreased to CNY 3,057,810,588.57 from CNY 3,553,664,293.62, a reduction of about 14%[31] - Long-term payables decreased to CNY 469,043,396.24 from CNY 514,322,296.20, a decline of approximately 8.8%[31] Cash Flow - Cash and cash equivalents decreased by 46.40% to ¥91,636,064.96 from ¥170,961,649.87 due to high operational funding needs during the reporting period[16] - Cash received from sales of goods and services increased by 59.62% to ¥119,091,643.18 from ¥74,611,199.50, attributed to increased heating fee income and coal sales[16] - The net cash flow from operating activities was -¥365,496,630.95, compared to -¥349,898,729.72 in the previous period, indicating a decline in operational cash flow[45] - Cash inflow from operating activities was ¥237,839,577.99, significantly lower than ¥1,354,335,894.28 in the previous period[48] - The company reported a total cash outflow from operating activities of ¥537,070,962.90, compared to ¥462,732,568.21 in the previous period[45] - Cash inflow from investment activities amounted to ¥318,205,170.00, while cash outflow was ¥21,250,508.70, resulting in a net cash flow from investment activities of ¥296,954,661.30[45] Shareholder Information - The total number of common shareholders at the end of the reporting period was 34,232[12] - The largest shareholder, Shenyang Heating Group, holds 35.10% of the shares, amounting to 187,050,118 shares, with 93,000,000 shares pledged[12] Non-Recurring Gains and Other Financial Metrics - The company reported non-recurring gains of ¥100,052,863.64, primarily from non-current asset disposal gains and government subsidies[9] - The company did not engage in any securities or derivative investments during the reporting period[19][20] - The company recorded a credit impairment loss of CNY -5,831,845.56 in Q1 2021, an improvement from CNY -12,321,208.95 in Q1 2020[38] - The company's tax expenses for Q1 2021 were CNY 31,386,611.23, compared to a tax benefit of CNY -17,543,067.94 in Q1 2020[38]