Financial Performance - The company's operating revenue for the reporting period was ¥159,482,675.96, a decrease of 43.71% compared to ¥283,333,673.39 in the same period last year[17]. - The net profit attributable to shareholders was ¥23,991,993.91, representing a significant increase of 156.30% from a loss of ¥42,616,708.60 in the previous year[17]. - The net cash flow from operating activities was -¥114,247,946.84, which is a decline of 16.99% compared to -¥97,653,682.64 in the same period last year[17]. - The total assets at the end of the reporting period were ¥684,800,773.12, down 12.78% from ¥785,176,290.54 at the end of the previous year[17]. - The net assets attributable to shareholders were -¥63,841,110.62, an improvement of 28.35% from -¥89,098,185.37 at the end of the previous year[17]. - The company's revenue for the reporting period was CNY 159.48 million, a decrease of 43.71% compared to the previous year, primarily due to a reduction in product output in response to the fertilizer market conditions[36]. - The operating cost decreased by 50.67% to CNY 164.09 million, attributed to the reduced product output leading to lower costs incurred[36]. - The company reported a net profit of CNY 23.99 million, mainly due to debt forgiveness and gains from debt restructuring[34]. - The company's revenue for the fertilizer industry was approximately ¥156.5 million, a decrease of 38.63% compared to the previous year, with a gross margin of -3.61%[37]. - Urea sales accounted for ¥150.1 million, also down 38.29% year-on-year, with a gross margin of -2.79%[37]. - The company's gross margin was -2.89%, primarily due to the cost-price inversion of its products[36]. - The company reported a total comprehensive loss of 99,546,847.05 yuan for the current period, primarily due to a decrease in other comprehensive income[124]. Cash Flow and Financing - The cash flow from financing activities increased by 233.57% to CNY 133.85 million, mainly due to increased borrowings from related parties[36]. - Cash and cash equivalents decreased by 8.19% to ¥71.4 million, primarily due to repayment of due loans[39]. - The total cash inflow from financing activities was 922,893,703.50 yuan, up from 636,000,000.00 yuan in the previous period, reflecting increased financing efforts[117]. - The total cash outflow from operating activities was 235,121,571.00 yuan, compared to 449,548,366.71 yuan in the previous period, showing a reduction in cash outflow[117]. - The total cash outflow for financing activities was 765,520,260.21 yuan, compared to 595,872,867.06 yuan in the previous period, reflecting increased financial obligations[117]. Assets and Liabilities - Total assets decreased from CNY 785,176,290.54 at the beginning of the period to CNY 684,800,773.12 at the end, a decline of approximately 12.76%[99]. - Current assets decreased significantly from CNY 222,901,250.33 to CNY 141,359,753.69, representing a drop of about 36.54%[99]. - Total liabilities decreased from CNY 874,274,475.91 to CNY 748,641,883.74, a reduction of about 14.36%[101]. - The company reported a net loss of CNY 440,581,338.18, slightly improved from a loss of CNY 464,573,332.09 at the beginning of the period[101]. - The company's total equity remained negative, improving from CNY -89,098,185.37 to CNY -63,841,110.62[101]. Business Operations and Strategy - Urea products accounted for over 90% of the company's total operating revenue, while liquid carbon dioxide, liquid ammonia, and methanol contributed approximately 10%[25]. - The company operates a complete production, procurement, and sales system, with a focus on maintaining stable long-term production cycles[25]. - The company is transitioning from a production-oriented to an operation-oriented business model, focusing on expanding its product range and diversifying operations[32]. - The company has initiated a major asset restructuring plan, intending to transfer related business and assets for CNY 27.72 million, but later decided to terminate the restructuring due to market uncertainties[34]. - The company aims to turn losses into profits in 2017 by optimizing its product structure and expanding into new markets[50]. - The company faces risks from a single product line and increasing market competition, prompting a need for market research and product diversification[50]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares[5]. - The controlling shareholder has pledged to maintain a shareholding ratio of no less than 29.59% for five years from the date of the share transfer[56]. - The company has committed to avoiding any business competition with Hechi Chemical and will not engage in direct or indirect competition with its main business[55]. - The company has made commitments to avoid illegal occupation of funds and assets from the listed company[56]. - The company will continue to comply with legal regulations and its articles of association in exercising shareholder rights[56]. Legal and Compliance - The company has no major litigation or arbitration matters during the reporting period[59]. - The half-year financial report has not been audited[57]. - The company has no major penalties or rectifications during the reporting period[61]. - There were no significant related party transactions during the reporting period[63]. - The company has not undergone any bankruptcy restructuring during the reporting period[58]. Accounting Policies and Practices - The financial statements are prepared based on the going concern assumption, following the accounting standards issued by the Ministry of Finance[128]. - Revenue from sales is recognized when the company has transferred the significant risks and rewards of ownership to the buyer, and the amount can be reliably measured[182]. - The company recognizes government grants related to income as deferred income, which is recognized in the period when the related expenses are incurred[184]. - The company applies a straight-line method for accounting for operating leases, spreading rental expenses over the lease term[186]. - The company recognizes impairment losses for available-for-sale financial assets when their fair value declines significantly and is deemed non-temporary, transferring cumulative losses from equity to profit or loss[148].

Important Notice [Board of Directors' Statement](index=2&type=section&id=Board%20of%20Directors'%20Statement) The Board of Directors, Supervisory Board, and senior management collectively affirm the truthfulness, accuracy, and completeness of this quarterly report and its financial statements - The company's Board of Directors, Supervisory Board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal responsibility [4](index=4&type=chunk) - Company head Shi Weiguang, chief accountant Mo Libing, and head of accounting department Lu Yongzhang declare that the financial statements in the quarterly report are true, accurate, and complete [5](index=5&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2017 saw a significant decline in operating revenue by **53.46%** and net profit by **95.75%**, despite a narrowed non-recurring net loss due to debt restructuring gains Key Financial Indicators for Q1 2017 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 61,986,917.69 | 133,194,146.16 | -53.46% | | Net Profit Attributable to Shareholders | 981,238.75 | 23,106,446.88 | -95.75% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -13,763,217.81 | -29,408,570.27 | 53.22% | | Net Cash Flow from Operating Activities | -88,558,095.80 | -13,270,013.74 | -567.35% | | Total Assets | 722,687,151.13 | 785,176,290.54 (Beginning of Period) | -7.96% | | Net Assets Attributable to Shareholders | -87,565,288.05 | -89,098,185.37 (Beginning of Period) | 1.72% | Non-recurring Gains and Losses for Q1 2017 | Item | Amount from Year Start to Period End (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -763.50 | | Government Grants | 814,130.95 | | **Debt Restructuring Gains/Losses** | **13,941,089.11** | | Other Non-operating Income and Expenses | -10,000.00 | | **Total** | **14,744,456.56** | [Shareholder Information](index=4&type=section&id=2.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period%20End) As of Q1 2017, the company had **42,459** common shareholders, with Ningbo Yinyi Holdings as the largest at **29.59%** (all pledged) - At the end of the reporting period, the company had a total of **42,459** common shareholders [11](index=11&type=chunk) Top Two Shareholders' Shareholding Status | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | :--- | | Ningbo Yinyi Holdings Co., Ltd. | Domestic Non-state Legal Person | 29.59% | 87,000,000 | Pledged | | Guangxi Hechi Chemical Industry Group Co., Ltd. | State | 12.75% | 37,493,589 | - | Significant Events [Analysis of Changes in Key Financial Data and Reasons](index=5&type=section&id=1.%20Analysis%20of%20Changes%20in%20Key%20Financial%20Data%20and%20Reasons) Operating revenue decreased by **53.46%** due to lower sales, net profit plummeted **95.75%** (influenced by prior year's investment gains and current debt restructuring), and other payables surged **175.57%** from related party borrowings - Operating revenue decreased by **53.46%** year-on-year, primarily due to reduced product sales [14](index=14&type=chunk) - Net profit decreased by **95.75%** year-on-year, mainly because the prior year had investment income from selling Guohai Securities shares, while current period profit primarily stemmed from debt restructuring gains [14](index=14&type=chunk) - Net cash flow from operating activities deteriorated by **567.35%** year-on-year, due to increased raw material procurement expenditures [14](index=14&type=chunk) - Other payables increased by **175.57%** from the beginning of the period, primarily due to borrowing from related parties to repay matured debts [14](index=14&type=chunk) [Progress of Significant Matters](index=6&type=section&id=2.%20Progress%20of%20Significant%20Matters%20and%20Analysis%20of%20Their%20Impact%20and%20Solutions) The company initiated a major asset restructuring, repaid all overdue financing totaling **RMB 105 million**, and resolved two sales contract dispute lawsuits through settlement - The company suspended trading from March 14, 2017, due to planning a major asset restructuring, with related work in progress [15](index=15&type=chunk) - On March 9, 2017, the company repaid all overdue financing, with a cumulative principal of approximately **RMB 105 million** [15](index=15&type=chunk) - During the reporting period, the company resolved two sales contract dispute lawsuits, both settled and fulfilled with the respective parties [16](index=16&type=chunk) [Fulfillment of Commitments](index=6&type=section&id=3.%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholders%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period) Commitments from the controlling shareholder, actual controller, and former shareholder regarding avoiding horizontal competition, regulating related-party transactions, and maintaining shareholding percentages were continuously fulfilled - Controlling shareholder Ningbo Yinyi Holdings and actual controller Mr. Xiong Xuqiang committed to avoiding horizontal competition, regulating related-party transactions, and maintaining a shareholding percentage of no less than **29.59%** for five years from the equity transfer date, with this commitment continuously being fulfilled [18](index=18&type=chunk) - Former shareholder Guangxi Hechi Chemical Industry Group Co., Ltd.'s long-term commitment regarding regulating related-party transactions is also continuously being fulfilled [18](index=18&type=chunk) [Other Matters](index=8&type=section&id=4.%20Other%20Matters) The company did not forecast H1 2017 performance, reported no securities/derivative investments, illegal guarantees, or controlling shareholder fund occupation, and actively engaged with investors - The company did not forecast its operating performance for the first half of 2017 [19](index=19&type=chunk) - During the reporting period, the company had no securities investments, derivative investments, illegal external guarantees, or non-operating fund occupation by the controlling shareholder [19](index=19&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - On March 31, 2017, the company responded to **56** investor questions via its investor interactive platform [21](index=21&type=chunk)

Financial Performance - The company's operating revenue for 2016 was ¥398,327,702.48, a decrease of 36.05% compared to ¥622,898,214.30 in 2015[18]. - The net profit attributable to shareholders for 2016 was -¥141,760,644.77, representing a decline of 32.47% from -¥107,013,484.35 in 2015[18]. - The basic earnings per share for 2016 was -¥0.4821, a decrease of 32.48% compared to -¥0.3639 in 2015[18]. - The weighted average return on net assets was -379.54% in 2016, a significant drop from -57.50% in 2015[18]. - The company reported total revenue of CNY 398.33 million, a year-on-year decrease of 36.05%[38]. - The net profit attributable to shareholders was a loss of CNY 141.76 million, a decline of 32.47% compared to the previous year[38]. - The company reported a net loss of approximately CNY 141.76 million for 2016, continuing a trend of negative net profits for two consecutive years[86]. - As of December 31, 2016, the company's audited net assets were negative, raising concerns about potential delisting if losses persist in 2017[85]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥107,092,250.22, a 251.66% increase from -¥70,612,968.22 in 2015[18]. - The company experienced a 100% reduction in available-for-sale financial assets, primarily due to the sale of Guohai Securities stocks, amounting to a decrease of ¥89.39 million[30]. - Cash and cash equivalents decreased by 44.38% to ¥144,570,956.43, mainly due to repayment of due borrowings[61]. - Accounts receivable dropped by 95.66% to ¥7,517,907.22, reflecting the recovery of customer receivables[63]. - Inventory decreased by 82.87% to ¥30,521,028.66, mainly due to reduced stock levels of coal and urea[63]. - Total assets decreased by 44.30% to ¥785,176,290.54 at the end of 2016, down from ¥1,409,691,989.86 at the end of 2015[19]. - Owner's equity shifted from CNY 108,231,030.67 to CNY -89,098,185.37, indicating a negative equity position[197]. Operational Challenges - The overall fertilizer market faced severe overcapacity, leading to intensified competition and declining profitability across the industry[29]. - Urea sales volume decreased by 23.02% to 238,105.99 tons, while production volume dropped by 45.06% to 190,274.45 tons[45]. - The company’s urea product revenue accounted for approximately 80% of total revenue, highlighting its reliance on this segment amidst a challenging market[28]. - The company acknowledged risks related to a single product line and increasing market competition, which may impact future performance[79]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company plans to achieve sales revenue of 400 million yuan for fertilizers and chemical products in 2017[78]. - The company aims to implement refined management and strict budget control to reduce production costs and improve profitability[78]. - The company plans to actively seek investment opportunities and develop new products to enhance its revenue streams[78]. - The company has established three wholly-owned subsidiaries to optimize its business structure and enhance competitiveness[75]. Governance and Management - The company has implemented strict human resource management practices to improve employee performance and cohesion[37]. - The board of directors has fulfilled its duties and responsibilities, ensuring compliance with regulations and maintaining independence from the controlling shareholder[171]. - The company has established a performance evaluation and incentive mechanism for senior management, linking compensation directly to operational indicators[179]. - The audit opinion on the financial statements was a standard unqualified opinion, indicating that the financial statements fairly represent the company's financial position[188]. Risk Management - The company has outlined potential risks and countermeasures in its future development outlook section[4]. - The audit report issued by the accounting firm includes an emphasis on the company's ability to continue as a going concern, prompting the board to take measures to mitigate risks[91]. - The company is facing significant financial risks due to continuous large losses, leading to increased financing difficulties and costs[84]. Market Position and Future Outlook - The company expects a revenue growth guidance of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[154]. - A strategic acquisition of a local competitor is under consideration to enhance market share and operational efficiency[154]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in sales from this region by 2018[154]. Employee and Social Responsibility - The company has established a training program that combines internal and external training to enhance employee skills, focusing on technical, management, and safety training[164]. - The company has implemented a comprehensive employee benefits program, including social insurance and paid leave, to enhance employee satisfaction[163]. - The company is committed to continuing its social responsibility efforts and increasing contributions to public welfare[118].

Financial Performance - Total assets decreased by 36.13% to CNY 900,392,439.84 compared to the end of the previous year[8] - Net assets attributable to shareholders decreased by 145.09% to CNY -48,800,572.84 compared to the end of the previous year[8] - Operating revenue for the period was CNY 87,406,273.73, down 51.91% year-on-year[8] - Net profit attributable to shareholders was CNY -58,460,117.20, a decrease of 72.40% year-on-year[8] - Basic earnings per share were CNY -0.1988, down 72.42% compared to the same period last year[8] - The weighted average return on net assets was -74.00%, a decrease of 15.23% year-on-year[8] - Cash flow from operating activities increased by 223.48% to CNY 99,626,021.33 year-to-date[8] Shareholder Information - The top shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 29.59% of shares, totaling 87,000,000 shares[10] - The total number of ordinary shareholders at the end of the reporting period was 33,922[10] Gains and Losses - The company reported non-recurring gains of CNY 51,578,092.52 during the period[9] - Investment income increased by CNY 50.65 million, a growth of 4059.23%, mainly due to gains from the sale of Guohai Securities stocks[17] - The company sold 6.945 million shares of Guohai Securities, generating a total transaction amount of CNY 68.29 million and an investment income of CNY 51.90 million[18] Cash Flow and Receivables - Cash and cash equivalents decreased by CNY 52.41 million, a decline of 20.17%, primarily due to the repayment of maturing debts[15] - Accounts receivable decreased by CNY 143.25 million, a decline of 82.64%, mainly due to the recovery of receivables[15] - Net cash flow from operating activities increased by CNY 180.31 million, a growth of 223.48%, primarily due to the recovery of receivables[17] Expenses and Investments - Operating income decreased by CNY 122.70 million, a decline of 24.87%, primarily due to a decrease in urea sales prices during the reporting period[16] - Management expenses increased by CNY 21.83 million, a growth of 138.25%, mainly due to increased losses from production line maintenance in September[16] - Long-term prepaid expenses increased by CNY 2.57 million, a growth of 894.82%, primarily due to increased use of catalysts[15] Corporate Strategy and Governance - The company plans to establish three wholly-owned subsidiaries to optimize its organizational structure and adapt to future business development needs[21] - The company terminated its major asset restructuring plan due to changes in market conditions and regulatory policies[20] - The company has committed to avoiding any substantial competition with its actual controlling enterprises and will adhere to legal regulations and company bylaws in exercising shareholder rights[23] - The company has maintained its shareholding ratio of no less than 29.59% as per its commitment made during the asset restructuring[23] - The company has engaged in communication regarding its operational status and major asset restructuring progress during the reporting period[27] Compliance and Transactions - There were no derivative investments during the reporting period, indicating a conservative investment strategy[26] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[29] - The company has committed to minimizing related party transactions and ensuring fair market practices in unavoidable transactions[24] - The company has not reported any violations regarding external guarantees during the reporting period[28] - The company anticipates no significant changes in net profit compared to the previous year, indicating stability in financial performance[25] - The company has fulfilled its commitment to avoid reducing its shareholding in the secondary market within the specified timeframe[24]

Financial Performance - The company's total revenue for the first half of 2016 was CNY 283.33 million, a decrease of 9.10% compared to CNY 311.69 million in the same period last year[19]. - The net profit attributable to shareholders was a loss of CNY 42.62 million, representing a decline of 46.01% from a loss of CNY 29.19 million in the previous year[19]. - The net cash flow from operating activities was a negative CNY 97.65 million, which is a 96.47% increase in outflow compared to a negative CNY 49.70 million last year[19]. - The company's operating revenue for the reporting period was ¥283,333,673.39, a decrease of 9.10% compared to ¥311,688,421.04 in the same period last year, primarily due to a decline in urea sales prices[31]. - The company's net loss for the period was CNY -42,422,077.43, compared to a loss of CNY -31,278,825.14 in the previous period[112]. - The total comprehensive income attributable to the parent company was -99,546,847.05, a significant decrease from -24,760,501.32 in the prior period[114]. Production and Operations - The production of synthetic ammonia was 102,900 tons, achieving 46.77% of the annual plan, with a year-on-year decrease of 0.87%[28]. - The production of urea was 154,800 tons, completing 43% of the annual plan, with a year-on-year decrease of 7.64%[28]. - The company plans to maintain a strategy of full-load production with low inventory to adapt to market conditions and enhance customer relationship management[28]. - The company plans to strengthen production management and cost control while closely monitoring market trends and adjusting raw material procurement strategies[34]. Assets and Liabilities - The company's total assets decreased by 18.58% to CNY 1.15 billion from CNY 1.41 billion at the end of the previous year[19]. - The net assets attributable to shareholders dropped by 91.77% to CNY 8.91 million from CNY 108.23 million at the end of the previous year[19]. - The company's inventory decreased by 46.76% to ¥94,874,010.25 from ¥178,188,122.00, mainly due to reduced raw material coal purchases and increased product sales[32]. - Total liabilities decreased to CNY 1,138,841,890.11 from CNY 1,301,460,959.19, a reduction of 12.52%[109]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 21,268[93]. - The largest shareholder, Guangxi Hechi Chemical Industry Group, held 42.34% of the shares, totaling 124,493,589 shares[93]. - The controlling shareholder changed to Ningbo Yinyi Holdings Co., Ltd. on July 12, 2016[96]. - The actual controller changed to Xiong Xuqiang on July 12, 2016[96]. Cash Flow and Financing - Cash and cash equivalents decreased to CNY 213,567,329.90 from CNY 259,903,820.99, a decline of 17.87%[107]. - Cash inflow from financing activities was 636,000,000.00, up from 498,812,900.00 in the previous period, indicating a growth of approximately 27.5%[116]. - Investment activities generated a net cash flow of ¥53,190,058.61, a significant increase of 634.10% from -¥9,958,908.29, mainly due to gains from the sale of Guohai Securities stocks[32]. Regulatory and Compliance - The half-year financial report for 2016 was not audited[82]. - There were no penalties or rectifications during the reporting period[83]. - The company has not reported any changes in significant accounting policies or estimates during the period[191]. Market Outlook - The overall fertilizer market is expected to remain weak in the second half of 2016, with a focus on capacity reduction and structural adjustment in the industry[28]. Related Party Transactions - The company reported a total of 61.53 million yuan in related party transactions during the period, with a maximum approved transaction amount of 10,400 million yuan[64]. - The company will continue to minimize related party transactions and ensure fair pricing in unavoidable transactions[81].

Financial Performance - The company's operating revenue for 2015 was ¥622,898,214.30, representing a 12.18% increase compared to ¥555,288,426.40 in 2014[17]. - The net profit attributable to shareholders in 2015 was -¥107,013,484.35, a significant decrease of 700.04% from ¥17,834,293.30 in 2014[17]. - The net cash flow from operating activities was -¥70,612,968.22, improving by 67.25% from -¥215,633,043.01 in 2014[17]. - Total assets at the end of 2015 were ¥1,409,691,989.86, down 11.54% from ¥1,593,601,321.16 at the end of 2014[17]. - The net assets attributable to shareholders decreased by 54.83% to ¥108,231,030.67 from ¥239,625,551.00 in 2014[17]. - The basic earnings per share for 2015 was -¥0.3639, a decline of 700.50% from ¥0.0606 in 2014[17]. - The weighted average return on equity was -57.50% in 2015, down 60.74% from 3.24% in 2014[17]. - The company reported a net loss of CNY 107 million, a decline of 700.04% year-on-year, but a significant reduction in loss of CNY 240 million when excluding non-recurring gains and losses[32]. - The total comprehensive income for the current period was -¥130,661,209.35, an improvement from -¥301,740,829.14 in the previous period[171]. Revenue and Sales - Urea products accounted for over 80% of the company's total operating revenue, with sales of urea reaching CNY 517.63 million, a decrease of 1.25% compared to the previous year[34]. - The company's revenue from the fertilizer industry reached ¥517,626,292.28, representing a year-on-year increase of 10.52%[37]. - Urea sales volume increased by 8.22% to 309,318.27 tons, while production volume rose by 28.81% to 346,347.54 tons[38]. - Operating cash inflows increased by 33.06% to ¥621,064,766.79, attributed to enhanced marketing strategies and increased urea sales[46]. Costs and Expenses - Operating costs decreased by 19.20% year-on-year, totaling CNY 735 million[32]. - The total operating costs decreased to ¥735,217,129.12 from ¥909,931,648.84, a reduction of about 19.16%[170]. - The company's financial expenses decreased by 26.24% to ¥49,394,761.43, primarily due to a reduction in financing rates[45]. - The company incurred financial expenses of ¥49,394,761.43, down from ¥66,967,523.61, reflecting a decrease of approximately 26.45%[170]. Inventory and Assets - The ending inventory of urea surged by 342.79% to 47,831.74 tons due to a sluggish market environment[38]. - The company reported a significant increase in inventory, with a total of 178.19 million yuan, representing 12.64% of total assets[50]. - The company's cash and cash equivalents dropped significantly from RMB 441,928,156.29 to RMB 259,903,820.99, a decrease of about 41.2%[167]. - The company's total assets amounted to CNY 541,536,666.88 at the end of the previous period[178]. Financing and Borrowing - The company experienced a significant increase in financing cash inflows by 230.21% to ¥1,764,366,000.00, mainly from loans obtained from related parties[46]. - Short-term borrowings increased by 190.60 million yuan, a growth of 58.90%, primarily due to new borrowings from related parties[50]. - The company borrowed a total of RMB 1.25 billion from related parties during the reporting period, with interest payments amounting to RMB 8.2154 million[92]. - The company plans to utilize the borrowed funds primarily for short-term financing needs and to ensure liquidity[90]. Market and Competition - The company faced challenges from a saturated fertilizer market and increased financing costs, impacting its overall financial performance[30]. - The urea market is expected to remain under pressure due to overcapacity and increased competition, with a 1.13% growth in China's urea production capacity in 2015 compared to 2014[63]. Corporate Governance and Shareholder Relations - The company conducted 72 investor communications, including 30 personal inquiries and 42 responses on the Shenzhen Stock Exchange interaction platform[67]. - The company has maintained a consistent governance structure with independent directors contributing to oversight and strategic direction[126]. - The company held three shareholder meetings during the reporting period, reviewing 25 proposals, ensuring equal rights for all shareholders, especially minority shareholders[140]. - The company has established a dedicated investor relations management system to ensure equal access to information for all investors[141]. Environmental and Social Responsibility - The company has implemented clean production practices and enhanced monitoring of wastewater and waste gas to support national energy-saving and emission-reduction efforts, ensuring compliance with environmental standards[103]. - The company has actively engaged in social responsibility initiatives, including increasing contributions to public welfare within its capacity[103]. - The company has established an emergency response plan for environmental pollution incidents, which has been filed with relevant authorities[103]. Employee and Management - The total number of employees in the company is 1,226, with 886 in production, 18 in sales, 112 in technical roles, 18 in finance, and 192 in administration[135]. - The company provides employees with benefits including "five insurances and one fund," paid leave, and training opportunities[136]. - The company has no stock incentive plans for directors, supervisors, and senior management during the reporting period[135]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle and comply with the relevant accounting standards[6]. - The company maintained a standard unqualified audit opinion for its financial statements, confirming compliance with accounting standards[160]. - The internal control evaluation report indicated that 100% of the total assets and operating income were included in the evaluation scope[155].

Financial Performance - The company's revenue for Q1 2016 was ¥133,194,146.16, representing a 0.56% increase compared to ¥132,450,336.65 in the same period last year[8] - Net profit attributable to shareholders was ¥23,106,446.88, a significant turnaround from a loss of ¥17,219,519.81, marking a 234.19% increase[8] - The basic earnings per share increased to ¥0.0786 from a loss of ¥0.0586, reflecting a 234.13% improvement[8] - The weighted average return on equity rose to 19.29%, up 26.83 percentage points from -7.54% in the previous year[8] Assets and Liabilities - The total assets decreased by 6.27% to ¥1,321,357,154.75 from ¥1,409,691,989.86 at the end of the previous year[8] - Net assets attributable to shareholders fell by 30.23% to ¥75,516,273.90 from ¥108,231,030.67[8] - Short-term borrowings decreased by CNY 35 million, a decline of 6.81%, primarily due to the repayment of maturing loans[16] Cash Flow - The net cash flow from operating activities improved by 73.78%, reaching -¥13,270,013.74 compared to -¥50,611,521.62 in the previous year[8] - Net cash flow from operating activities increased by CNY 37.34 million, a growth of 73.78%, mainly due to reduced raw material procurement expenses[16] - Net cash flow from investing activities increased by CNY 67.07 million, a growth of 855.40%, primarily due to investment income from the sale of Guohai Securities stocks[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,474[11] - The largest shareholder, Guangxi Hechi Chemical Industry Group Co., Ltd., held 42.34% of the shares, totaling 124,493,589 shares[11] Market and Inventory - Accounts receivable increased by CNY 23.45 million, a growth of 13.53%, primarily due to the continued downturn in the fertilizer urea market, leading to higher credit sales to customers[16] - Inventory decreased by CNY 42.15 million, a decline of 23.65%, mainly due to product sales during the period, resulting in reduced stock of products and raw materials[16] Other Financial Activities - Non-recurring gains and losses totaled ¥52,515,017.15, primarily from fair value changes and government subsidies[9] - Investment income increased by CNY 51.90 million, a growth of 100%, primarily due to the sale of Guohai Securities stocks[16] - Other comprehensive income decreased by CNY 56.93 million, a decline of 100%, primarily due to the sale of Guohai Securities stocks[16] Future Expectations - Net profit for the period is expected to show significant changes compared to the same period last year, but specific figures are not disclosed[18] - The company has signed a share transfer agreement with Ningbo Yinyi Holdings Co., Ltd. for the transfer of 87 million shares, representing 29.59% of the total share capital, pending approval from the State-owned Assets Supervision and Administration Commission[15] Compliance - The company has no violations regarding external guarantees during the reporting period[22]

Financial Performance - In 2015, the company's operating revenue was CNY 622.90 million, an increase of 12.18% compared to CNY 555.29 million in 2014[10] - The net profit attributable to shareholders was a loss of CNY 107.01 million, a decrease of 700.04% from a profit of CNY 17.83 million in 2014[10] - The net cash flow from operating activities improved to a loss of CNY 70.61 million, a 67.25% improvement from a loss of CNY 215.63 million in 2014[10] - The total assets at the end of 2015 were CNY 1.41 billion, down 11.54% from CNY 1.59 billion at the end of 2014[10] - The net assets attributable to shareholders decreased by 54.83% to CNY 108.23 million from CNY 239.63 million in 2014[10] - The basic and diluted earnings per share were both CNY -0.3639, a decline of 700.50% from CNY 0.0606 in 2014[10] - The weighted average return on equity was -57.50%, a decrease of 60.74% from 3.24% in 2014[10] - The company reported a significant increase in inventory, with a total of CNY 178.19 million, reflecting a 2.61% increase from the previous year[30] - The total comprehensive income for the period was -130,661,209.35, an improvement from -301,740,829.14 in the previous period[104] - The net profit for the period was -107,013,484.35, a significant decline compared to the previous year's profit of 17,834,293.30[193] Revenue and Sales - The company reported a quarterly breakdown of revenue, with Q1 at CNY 132.45 million, Q2 at CNY 179.24 million, Q3 at CNY 181.75 million, and Q4 at CNY 129.46 million[12] - Urea products accounted for over 80% of the company's total operating revenue, with urea sales generating CNY 517.63 million, a decrease of 1.25% compared to the previous year[22] - Urea sales volume increased by 8.22% to 309,318.27 tons in 2015, while production volume rose by 28.81% to 346,347.54 tons[24] - The company experienced a significant reduction in non-operating income, totaling CNY 4.36 million in 2015 compared to CNY 369.12 million in 2014[13] Cost Management - The company managed to reduce raw material coal costs by 29% through adjustments in raw material structure, contributing to cost control efforts[20] - The company maintained a gross profit margin of -0.01% in the fertilizer industry, with operating costs decreasing by 20.22% year-on-year[22] - The total operating costs decreased to CNY 735,217,129.12 from CNY 909,931,648.84, reflecting a reduction of 19.2%[103] - The company plans to focus on cost reduction and efficiency improvements in the upcoming year to enhance profitability[103] Financial Position - The company's urea inventory surged by 342.79% to 47,831.74 tons due to a sluggish market environment[24] - The company's net cash and cash equivalents decreased by 54.13% to CNY -88,858,335.30, indicating cash flow challenges[28] - Cash and cash equivalents decreased by 41.19% to CNY 259.90 million, primarily due to repayment of due loans and payment for materials and engineering costs[30] - Accounts receivable increased by 34.35% to CNY 173.35 million, attributed to high credit sales to maintain market share amid a sluggish fertilizer market[30] - Short-term borrowings rose by 58.90% to CNY 514.20 million, mainly due to new borrowings from related parties and non-bank financial institutions[30] Strategic Initiatives - The company plans to explore diversification in its business model, including potential investments in new types of fertilizers, although a planned investment in "Jinggeng Tianxia" was ultimately canceled due to funding issues[20] - The company is focusing on improving financial management and has implemented a monthly cash flow assessment system to enhance fund utilization[21] - The company plans to continue expanding its market presence and developing new products in the upcoming fiscal year[150] Governance and Compliance - The company has not engaged in derivative investments or significant asset sales during the reporting period[36][37] - The company has maintained compliance with its commitments and has not engaged in any non-operating fund occupation by controlling shareholders[48] - The company has established an independent financial department with a standardized accounting system, ensuring no interference from the controlling shareholder in financial activities[91] - The company strictly adheres to the regulations of the "Company Law," "Securities Law," and "Corporate Governance Guidelines," ensuring compliance and enhancing governance structure[88] Environmental and Social Responsibility - The company emphasizes the importance of safety and environmental management, implementing a comprehensive SHE management system to mitigate risks associated with complex chemical processes[39][40] - The company has actively pursued social responsibility initiatives, including energy conservation and emissions reduction efforts[61] - The company has a plan to continue increasing social welfare investments within its capacity to promote regional economic development[61] Human Resources - The total number of employees in the parent company is 1,226, with 886 in production, 18 in sales, 112 in technology, 18 in administration, and 192 in administrative roles[84] - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 1,641,800 CNY[84] - The company conducts both internal and external training programs to enhance employee skills and management capabilities, focusing on safety and technical innovation[86] Audit and Internal Control - The company achieved a standard unqualified audit opinion for its financial statements[98] - The internal control evaluation report was disclosed on April 9, 2016, indicating compliance with relevant regulations[96] - The company maintained effective internal control over financial reporting as of December 31, 2015, according to the internal control audit report[96] Related Party Transactions - The company has a total of 2,453.67 in related party transactions during the reporting period, with a maximum approved amount of 6,700[51] - The company has not reported any significant related party transactions that would harm its interests[55] Market Conditions - In 2015, China's urea production capacity increased by 1.13% compared to 2014, reaching a historical high, contributing to a competitive market environment[38] - The company faces challenges due to a single product variety and increasing market competition, prompting a need for product structure adjustments[42]

Financial Performance - Operating revenue increased by 33.57% to CNY 181,752,364.03 for the current period[3] - Net profit attributable to shareholders was a loss of CNY 33,907,182.12, a decline of 122.27% compared to the same period last year[3] - Basic and diluted earnings per share were both -CNY 0.1153, a decrease of 122.27%[3] - The company reported a third-quarter operating revenue of 493.44 million yuan, an increase of 10.91 million yuan or 28.37% year-on-year, primarily due to increased sales volume and prices of urea products[11] - The net profit for the third quarter was a loss of 33.91 million yuan, compared to a loss of 63.10 million yuan in the same period last year, indicating a year-on-year improvement in loss by 12.29 million yuan[11] - The total operating revenue for the third quarter was ¥181,752,364.03, an increase of 33.6% compared to ¥136,073,740.01 in the same period last year[25] - The net profit attributable to the parent company was a loss of ¥33,907,182.12, compared to a profit of ¥152,248,215.07 in the previous year, marking a significant decline[26] - The comprehensive income totalled a loss of ¥74,274,994.62, compared to a loss of ¥106,627,176.69 in the same period last year[26] - Year-to-date operating revenue reached ¥493,440,785.07, up 28.5% from ¥384,388,354.22 in the previous year[27] - The year-to-date net profit attributable to the parent company was a loss of ¥63,095,120.94, compared to a profit of ¥44,223,215.77 in the previous year[28] Cash Flow - Cash flow from operating activities showed a net outflow of CNY 80,679,820.67, an increase of 56.76% in outflow compared to the previous year[3] - The company's cash flow from operating activities increased by 10.59 million yuan, a growth of 56.76% year-on-year, attributed to higher sales prices and volumes of urea products[11] - Operating cash inflow totaled CNY 477,992,701.61, an increase from CNY 329,322,731.22 in the previous period[29] - Operating cash outflow amounted to CNY 558,672,522.28, compared to CNY 515,900,985.53 in the prior period[29] - Net cash flow from operating activities was negative CNY 80,679,820.67, improving from negative CNY 186,578,254.31 year-over-year[29] - Cash flow from investing activities resulted in a net outflow of CNY 20,732,960.75, a significant decrease from a net inflow of CNY 326,715,248.94 in the previous period[30] - Cash inflow from financing activities was CNY 1,163,516,000.00, slightly up from CNY 1,115,975,000.00 in the last period[30] - Net cash flow from financing activities was positive CNY 9,019,067.02, a turnaround from negative CNY 204,937,260.31 in the previous year[30] - The ending balance of cash and cash equivalents decreased to CNY 29,384,441.89 from CNY 114,629,697.81 in the prior period[30] - The company received CNY 912,866,000.00 from other financing activities, a significant increase from CNY 15,975,000.00 previously[30] - The company reported a decrease in cash received from investment income to CNY 1,041,750.00 from CNY 327,576,430.26 in the last period[29] Assets and Liabilities - Total assets decreased by 8.41% to CNY 1,459,627,462.89 compared to the end of the previous year[3] - Net assets attributable to shareholders decreased by 44.10% to CNY 133,948,291.28[3] - The company's cash and cash equivalents decreased by 12.53 million yuan, a decline of 28.34% from the beginning of the period, primarily due to repayment of maturing loans[11] - Short-term borrowings decreased by 88 million yuan, down 27.19% from the beginning of the period, reflecting reduced borrowing capacity[11] - Total liabilities slightly decreased from ¥1,353,975,770.16 to ¥1,325,679,171.61, showing a decline of approximately 2.1%[24] - The company's short-term borrowings decreased from ¥323,600,000.00 to ¥235,600,000.00, a reduction of about 27.2%[24] - Other payables increased significantly from ¥122,866,205.27 to ¥352,349,578.09, reflecting a rise of approximately 187.5%[24] - The company's non-current assets decreased from ¥736,925,624.57 to ¥669,781,172.11, a decline of about 9.1%[23] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,486[6] - The largest shareholder, Guangxi Hechi Chemical Industry Group Co., Ltd., holds 42.34% of the shares[6] - The total equity attributable to the parent company decreased to ¥133,948,291.28 from ¥239,625,551.00 at the beginning of the period[25] Operational Strategy - The company plans to continue enhancing equipment operation and process optimization in production to improve efficiency[11] - The company aims to focus on cost reduction and market expansion as part of its annual operational strategy[11] Government Support - Government subsidies recognized in the current period amounted to CNY 805,275.73[3] Investment Income - The company experienced a significant decline in investment income, which decreased by 25.08 million yuan or 99.50% year-on-year, as there were no gains from the sale of Guohai Securities stocks this period[11]

Financial Performance - The company's operating revenue for the first half of 2015 was ¥311,688,421.04, representing a 25.52% increase compared to ¥248,314,614.21 in the same period last year[10]. - The net profit attributable to shareholders was a loss of ¥29,187,938.82, an improvement of 72.98% from a loss of ¥108,024,999.30 in the previous year[10]. - The net cash flow from operating activities improved to -¥49,704,434.41, a 50.61% reduction in loss compared to -¥100,645,924.61 in the same period last year[10]. - The basic and diluted earnings per share improved to -¥0.0993, a 72.97% increase from -¥0.3674 in the previous year[10]. - The company's net profit for the period was CNY -29.19 million, a year-on-year reduction in losses by CNY 7.88 million[18]. - The total comprehensive income for the period was CNY -32,261,101.32, reflecting a loss compared to the previous period[65]. - The company reported a net profit attributable to the parent company for the current period was CNY -29,187,938.82, compared to a profit of CNY 17,834,293.30 in the previous period, indicating a significant decline[129]. Revenue and Sales - The company's total revenue for the reporting period reached CNY 311.69 million, representing a year-on-year increase of 25.52% due to higher sales prices and increased sales volume of urea products[18]. - The company's sales revenue from urea products increased by nearly 19% compared to the same period last year[18]. - The company's revenue for the chemical industry reached ¥281,531,241.72, representing a year-on-year increase of 17.88%[20]. - Urea sales accounted for ¥263,828,175.32, with a gross margin of -0.12% and a year-on-year revenue increase of 18.54%[20]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,537,918,006.52, a decrease of 3.49% from ¥1,593,601,321.16 at the end of the previous year[10]. - The total liabilities at the end of the period amounted to CNY 2,468,000.00, with government subsidies contributing CNY 3,085,000.00 during the period[64]. - The total equity attributable to the parent company decreased to CNY 207.05 million from CNY 239.63 million, a decline of 13.6%[61]. - Current liabilities totaled CNY 1.28 billion, slightly down from CNY 1.29 billion, indicating a decrease of 1.4%[60]. Cash Flow - The cash inflow from operating activities was CNY 315,555,822.17, compared to CNY 198,177,926.55 in the previous period, representing a 59.3% increase[63]. - The cash inflow from financing activities totaled CNY 498,812,900.00, down from CNY 892,860,000.00 in the previous period, a decrease of 44.2%[64]. - The ending cash and cash equivalents balance was CNY 74,151,070.44, down from CNY 104,268,380.25 in the previous period, a decrease of 28.9%[64]. Operational Efficiency - The cost of producing urea decreased by nearly 20% compared to the same period last year, contributing to improved profitability[18]. - The company’s management expenses increased by 25.03% year-on-year, mainly due to rising environmental fees and wage expenditures[18]. - The company established a pricing committee to enhance price management for procurement and sales, which effectively increased operational vitality[18]. Investments and Financing - The company canceled its investment in the new three-board enterprise "Jinggeng Tianxia" due to funding constraints, although it aims to explore new development opportunities in the future[18]. - The company plans to borrow 1 billion yuan from related party China Chemical Finance Co., Ltd. to supplement its working capital and replace higher-interest financial borrowings[36]. - The company has no external investments or significant asset acquisitions during the reporting period[22][24]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 19,651[46]. - The largest shareholder, Guangxi Hechi Chemical Industrial Group Company, holds 42.34% of the shares, totaling 124,493,589 shares[46]. - The total number of shares is 294,059,437, with 99.99% being unrestricted shares[45]. Regulatory and Compliance - The company has not engaged in any derivative investments or entrusted loans during the reporting period[24]. - The company has not reported any non-operating related party debts or guarantees during the reporting period[39]. - The company has not experienced any financial difficulties or delays in payments from China Chemical Finance Co., Ltd. due to cash shortages[36]. Accounting and Financial Reporting - The company's financial report for the first half of 2015 was not audited[58]. - The company's financial statements are prepared in Renminbi (RMB) and reflect the financial position as of June 30, 2015[58]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that its financial statements accurately reflect its financial position and operating results[71]. Related Party Transactions - The company reported a total of 2,044.96 million yuan in related party transactions during the reporting period, with a significant portion being labor services and procurement of materials[30]. - The company’s total amount of related party transactions for purchasing materials was 19,326,135.57, well within the approved transaction limit of 63 million[146]. Inventory and Receivables - Inventory increased to ¥195,116,855.54 from ¥159,775,604.98, reflecting an increase of approximately 22.1%[57]. - The total accounts receivable at the end of the period was CNY 136,323,047.26, with a bad debt provision of CNY 8,953,195.87, indicating a provision ratio of 6.59%[97]. - The company reported a significant concentration in accounts receivable, with the top five debtors accounting for 44.58% of the total accounts receivable, totaling CNY 60,778,060.19[101].