Financial Performance - Operating revenue for the period was CNY 32,319,566.40, down 9.67% year-on-year, but year-to-date revenue increased by 80.52% to CNY 222,343,457.14[7] - Net profit attributable to shareholders reached CNY 1,029,844.52, up 105.75% for the quarter and 192.46% year-to-date at CNY 46,602,755.74[7] - Basic earnings per share for the quarter were CNY 0.0028, reflecting a 104.68% increase[7] - Total operating revenue for Q3 2020 was CNY 32,319,566.40, a decrease of 9.8% compared to CNY 35,779,363.63 in the same period last year[40] - The company reported a net profit of 1,029,844.52 CNY for the third quarter, compared to a net loss of 17,917,301.15 CNY in the same period last year[42] - The net profit for the year-to-date period reached 50,382,270.63 CNY, a recovery from a net loss of 50,402,237.44 CNY in the same period last year[48] - The company achieved a total comprehensive income of 1,258,884.90 CNY for the third quarter, compared to a loss of 17,917,301.15 CNY in the previous year[42] Asset and Equity Changes - Total assets increased to CNY 384,118,504.61, up 11.44% from the previous year[7] - Net assets attributable to shareholders rose to CNY 182,237,767.04, a significant increase of 677.80%[7] - The company's total liabilities decreased to CNY 185,667,390.78 from CNY 308,819,964.15 year-over-year, representing a reduction of 39.9%[38] - The total equity attributable to shareholders of the parent company increased to CNY 182,237,767.04 from CNY 23,429,825.28, marking a substantial growth[35] - The capital reserve increased to CNY 504,889,362.85 from CNY 418,795,644.83, showing a positive trend in equity financing[35] Cash Flow Analysis - Net cash flow from operating activities surged to CNY 4,863,691.31, a remarkable increase of 793.20%[7] - Cash and cash equivalents increased by CNY 23,776,100, up 82.30%, primarily due to cash inflows from operations[15] - Net cash flow from operating activities increased by 57.4741 million yuan, up 784.64%, primarily due to the inclusion of Nansong Pharmaceutical in the consolidation scope[16] - The net cash flow from operating activities is CNY 50,149,249.17, a turnaround from CNY -7,324,856.16 in the previous period[53] - Total cash inflow from financing activities was 112,649,995.52 yuan, while cash outflow was 48,710,000.00 yuan, resulting in a net cash flow of 63,939,995.52 yuan from financing activities[57] Expenses and Cost Management - Tax and surcharges increased by CNY 2,404,900, up 7917.50%, due to the consolidation of Nansong Pharmaceutical and related tax expenses[15] - Sales expenses increased by 1.8583 million yuan, up 159.35%, mainly due to the inclusion of Nansong Pharmaceutical in the consolidation scope and increased sales[16] - Management expenses decreased by 18.9098 million yuan, down 58.67%, primarily due to significant production losses from the parent company's shutdown in the previous period[16] - Financial expenses decreased by 14.7871 million yuan, down 79.89%, mainly due to reduced borrowings[16] - The company reported a significant reduction in financial expenses, totaling 3,722,192.23 CNY, down from 18,509,327.48 CNY year-over-year[48] Investment and Restructuring - The company completed a major asset restructuring, acquiring control of Chongqing Nansong Pharmaceutical Technology Co., Ltd., and raised a total of 119,999,995.52 yuan through a private placement of shares at 4.64 yuan per share[22] - The total amount raised for the transaction was allocated as follows: 104.506 million yuan for cash consideration, 7.494 million yuan for related taxes, and 8 million yuan for intermediary fees[23] - The company incurred total operating costs of 163,711,453.73 CNY, down from 173,894,917.65 CNY in the previous year[47] Risks and Future Outlook - The company is under continued delisting risk warning due to consecutive years of negative net profit, with efforts underway to improve financial performance and potentially lift the warning in the future[17] - The company plans to continue focusing on cost reduction and operational efficiency to improve profitability in the upcoming quarters[48] - The company has not reported any new product developments or market expansions in the current quarter[51]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 190,023,890.74, representing a 117.44% increase compared to CNY 87,392,370.76 in the same period last year[18]. - The net profit attributable to shareholders was CNY 45,572,911.22, a significant turnaround from a loss of CNY 32,484,936.29 in the previous year, marking a 240.29% increase[18]. - The net cash flow from operating activities reached CNY 45,285,557.86, compared to a negative cash flow of CNY 7,869,377.97 in the same period last year, reflecting a 675.47% improvement[18]. - The company achieved operating revenue of CNY 190,023,890.74, a year-on-year increase of 117.44% due to the inclusion of Nansong Pharmaceutical and increased product demand during the pandemic[44]. - Net profit for the first half of 2020 reached CNY 4,912,340, marking a turnaround from a loss in the previous year[42]. - The gross profit margin for the chemical industry segment was 41.07%, reflecting a 41.31% increase year-on-year[47]. - The total comprehensive income for the period was CNY 45,572,911.22, contributing to a significant recovery compared to the previous year's loss of CNY 32,484,936.29[153]. Assets and Liabilities - The company's total assets increased by 14.58% to CNY 394,923,853.30 from CNY 344,683,621.33 at the end of the previous year[18]. - The company's total liabilities decreased from CNY 308,819,964.15 at the end of 2019 to CNY 197,731,624.37, a reduction of about 36.1%[129]. - The total equity attributable to the parent company increased from CNY 23,429,825.28 at the end of 2019 to CNY 181,207,922.52, representing a growth of about 671.5%[130]. - The total liabilities decreased slightly to CNY 701,910,508.72, down from CNY 747,572,879.94, indicating improved financial stability[151]. Research and Development - The company emphasizes new product development and industrialization, implementing a dedicated project management system for R&D[27]. - The company completed the pilot research and development of intermediates for Perindopril and Tofacitinib, and optimized the process for Hydrochloride Fluoxetine and other intermediates[40]. - Research and development expenses amounted to CNY 4,706,454.31, indicating a 100% increase due to the inclusion of Nansong Pharmaceutical's R&D costs[44]. - Research and development expenses for the first half of 2020 were CNY 4,706,454.31, indicating the company's commitment to innovation and product development[135]. Market and Business Strategy - The company plans to focus on the research, production, and sales of pharmaceutical intermediates through its subsidiary, Nansong Pharmaceutical, transitioning from traditional chemical industries to fine chemical sectors[26]. - Nansong Pharmaceutical exports its products to regions including Taiwan, India, and Finland, indicating a strong international market presence[27]. - The company has established a dual-driven model focusing on pharmaceutical intermediates and urea processing sales after acquiring Nansong Pharmaceutical[33]. - The company aims to continue expanding its market presence and enhancing product offerings in the upcoming quarters, focusing on strategic growth initiatives[137]. Cash Flow and Financing - The company's cash flow increased by 200.25% compared to the beginning of the period, primarily due to net cash flow from operations and the sale of bank financial products[32]. - The cash inflow from financing activities for the first half of 2020 was CNY 112,649,995.52, compared to CNY 5,150,000.00 in the same period of 2019, showing a substantial increase[145]. - The net cash flow from financing activities in the first half of 2020 was CNY 66,813,606.63, up from CNY 4,686,397.69 in the first half of 2019, reflecting improved financing conditions[145]. - The company reported a net increase in cash and cash equivalents of CNY 59,953,731.71, a 1,983.57% rise from the previous year[45]. Shareholder Information - The first temporary shareholders' meeting had an investor participation rate of 46.64% on March 20, 2020[68]. - The second temporary shareholders' meeting had an investor participation rate of 45.00% on April 23, 2020[68]. - The annual shareholders' meeting had an investor participation rate of 34.43% on May 20, 2020[68]. - The company has a total of 18,600,000 yuan in entrusted financial management, with an outstanding balance of 604.48 thousand yuan[90]. Environmental and Safety Measures - The company has established safety management protocols to minimize risks associated with hazardous materials used in production[63]. - The company is committed to enhancing its environmental protection measures to comply with increasing regulatory standards[63]. - The company has established an emergency response plan for environmental incidents, which has been filed with the ecological environment bureau[94]. - The company’s wastewater discharge concentration for ammonia nitrogen is 10 mg/L, with a total discharge of 0.121 tons per year[92]. Risks and Challenges - The company faces risks related to policy changes, environmental standards, and high customer concentration, which could impact future performance[62][63][64]. - The company is actively managing raw material price fluctuations to mitigate potential impacts on production costs and profitability[65][66]. Corporate Governance - The company reported no major litigation or arbitration matters during the reporting period[74]. - The company has no non-operating related party debt or significant related party transactions during the reporting period[79][84]. - The company has not experienced any bankruptcy reorganization or significant penalties during the reporting period[73][77]. - The company has not implemented any employee stock ownership plans or other incentive measures during the reporting period[78].

Financial Performance - The company's operating revenue for Q1 2020 was CNY 59,919,555.56, representing a 142.68% increase compared to CNY 24,691,165.08 in the same period last year[7]. - Net profit attributable to shareholders was CNY 8,672,939.51, a significant turnaround from a loss of CNY 16,377,829.62 in the previous year, marking a 152.96% increase[7]. - The net cash flow from operating activities reached CNY 18,019,109.23, a 490.19% improvement from a negative cash flow of CNY -4,618,044.93 in the same period last year[7]. - The weighted average return on equity was 4.86%, compared to 0.00% in the same period last year[7]. - The basic and diluted earnings per share improved to CNY 0.0255 from a loss of CNY -0.0557 in the previous year, reflecting a 145.78% increase[7]. - The net profit for Q1 2020 was CNY 9,460,412.29, a significant improvement from a net loss of CNY 16,377,829.62 in Q1 2019[40]. - The net profit for the first quarter of 2020 was CNY 9,460,412.29, a significant improvement compared to a net loss of CNY -16,377,829.62 in the same period last year[41]. - The net profit attributable to the parent company was CNY 8,672,939.51, compared to a net loss of CNY -16,377,829.62 in the previous year[41]. - The total comprehensive income of CNY 9,460,412.29, recovering from a loss of CNY -16,377,829.62 in the previous year[41]. Asset and Equity Growth - Total assets at the end of the reporting period were CNY 474,902,779.92, up 37.78% from CNY 344,683,621.33 at the end of the previous year[7]. - The net assets attributable to shareholders increased by 520.58% to CNY 145,400,784.15 from CNY 23,429,825.28 at the end of the previous year[7]. - The company's total assets as of March 31, 2020, amounted to CNY 369,210,850.66, up from CNY 302,395,720.27 at the end of 2019, reflecting a growth of 22.1%[36]. - The company's equity attributable to shareholders increased to CNY 128,228,086.00 in Q1 2020 from CNY 18,167,718.87 in the previous year, marking a growth of 606.5%[37]. - The total equity of the company reached CNY 158,622,088.83 as of March 31, 2020, compared to CNY 35,863,657.18 at the end of 2019, an increase of 341.5%[33]. Cash Flow and Financing Activities - Cash and cash equivalents increased by CNY 110.64 million, up 382.96%, primarily due to funds received from the issuance of new shares[15]. - Cash and cash equivalents rose significantly to CNY 81,141,094.19 in Q1 2020 from CNY 270,050.50 at the end of 2019, an increase of 30,059.5%[34]. - The company received CNY 112,649,995.52 from financing activities, a significant increase compared to CNY 2,150,000.00 in the previous year[49]. - The total cash inflow from operating activities was CNY 98,178,610.83, compared to CNY 69,795,566.01 in the previous year[48]. - The net increase in cash and cash equivalents was 80,871,043.69, contrasting with a decrease of -54,817.96 in the prior period[52]. Operational Changes and Restructuring - The company is undergoing a major asset restructuring involving the acquisition of controlling interest in Chongqing Nansong Pharmaceutical Technology Co., Ltd. and the divestiture of related business, assets, and liabilities[14]. - The company has completed the issuance of shares for asset purchase and fundraising related to the restructuring[14]. - Operating revenue increased by CNY 35.23 million, up 142.68%, mainly due to the consolidation of Nansong Pharmaceutical and increased sales[15]. - Operating costs increased by CNY 16.11 million, up 67.83%, primarily due to the consolidation of Nansong Pharmaceutical and increased revenue[15]. - Net cash flow from operating activities increased by CNY 22.64 million, up 490.19%, mainly due to increased operating cash inflows from the consolidation of Nansong Pharmaceutical[15]. Inventory and Receivables Management - Prepayments increased by CNY 39.23 million, up 724.85%, primarily due to advance payments for raw material procurement[15]. - Inventory decreased by CNY 10.57 million, down 39.46%, mainly due to increased sales leading to reduced stock[15]. - Accounts receivable increased by CNY 4.26 million, up 20.42%, primarily due to sales of goods[15]. Financial Expenses and Reserves - Financial expenses decreased by CNY 4.66 million, down 76.63%, mainly due to reduced borrowings[15]. - The company reported a significant increase in capital reserves by CNY 85.12 million, up 20.32%, due to the premium from the issuance of new shares[15]. Research and Development - The company reported R&D expenses of CNY 1,806,866.65 in Q1 2020, indicating a focus on innovation and product development[40]. Accounting and Compliance - The company did not undergo an audit for the first quarter report[53]. - The company has not applied new revenue and leasing standards for the current reporting period[53]. - There were no significant changes in the financial statements due to the new accounting standards[53]. Legal and Governance - The company’s legal representative is Shi Weiguang[54].

Financial Performance - The company's operating revenue for 2019 was ¥138,660,130.33, a decrease of 40.00% compared to ¥231,109,272.85 in 2018[19]. - The net profit attributable to shareholders was -¥60,916,555.09, an improvement of 77.75% from -¥273,793,686.63 in the previous year[19]. - The net cash flow from operating activities was -¥11,114,589.37, showing a 78.81% improvement compared to -¥52,463,485.11 in 2018[19]. - The total assets at the end of 2019 were ¥344,683,621.33, a decrease of 10.98% from ¥387,181,828.94 at the end of 2018[19]. - The net assets attributable to shareholders increased to ¥23,429,825.28, a significant recovery from -¥249,803,735.89 in 2018, representing a 109.38% change[19]. - The basic earnings per share for 2019 was -¥0.2072, improving by 77.75% from -¥0.9311 in 2018[19]. - The company reported a quarterly revenue of ¥24,691,165.08 in Q1, ¥62,701,205.68 in Q2, ¥35,779,363.63 in Q3, and ¥15,488,395.94 in Q4[22]. - The net profit attributable to shareholders for Q4 was -¥10,514,317.65, with a total of -¥60,918,255.09 for the year[23]. - The company reported a significant increase in financing cash inflow by 92.37% to ¥95,705,000.00, while financing cash outflow decreased by 94.39% to ¥12,481,913.90[62]. - The company recorded a net increase in cash and cash equivalents of ¥21,713,152.20, a 112.08% improvement compared to the previous year[62]. - The company reported a total investment of ¥266,208,791.21 during the reporting period, marking a 100% increase compared to the previous year[69]. - The company reported a loss of 10,372.88 million yuan from the transfer of assets related to urea production, reflecting a decrease of 85.1% in asset value[115]. Business Strategy and Restructuring - The company underwent a significant asset restructuring in December 2019, selling underperforming urea production assets and 100% equity in Hehua Limited and Hehua Installation[28]. - The company successfully acquired controlling interest in Nansong Pharmaceutical, marking a strategic transformation towards a dual-driven model focusing on pharmaceutical intermediates and urea processing[41]. - The company shifted its main business focus from urea production to pharmaceutical intermediates, establishing a dual-main business model[56]. - The company completed a major asset restructuring, selling urea production-related physical assets and acquiring 93.41% of Chongqing Nansong Pharmaceutical Technology Co., Ltd. on December 26, 2019[53]. - The company has established a dual-driven model with pharmaceutical intermediates as the main business and urea processing as a supplementary business[35]. - The company has implemented strategies to enhance operational stability and financial performance following the asset restructuring[84]. - The company is undergoing a major asset restructuring, acquiring control of Chongqing Nansong Pharmaceutical Technology Co., Ltd. and divesting from its urea-related business[136]. Market and Product Development - South Song Pharmaceutical focuses on the R&D, production, and sales of pharmaceutical intermediates, with products exported to Taiwan, India, and Finland[29]. - The company emphasizes R&D, with a dedicated project management system to improve processes, reduce costs, and enhance efficiency[30]. - The company’s products, such as chloroquine side chains and hydroxychloroquine side chains, have established strong technical barriers in the industry due to continuous R&D efforts[35]. - The pharmaceutical intermediate industry is expected to grow due to increasing healthcare spending and the aging population, positioning the company favorably in this market[83]. - The subsidiary, Chongqing Nansongkai Bio-Pharmaceutical, has ramped up production of chloroquine-related products in response to the COVID-19 pandemic, positively impacting sales volume[138]. Governance and Management - The company has a diverse board with members holding qualifications in engineering, law, and finance, enhancing its governance structure[171][172]. - The company has maintained a consistent leadership team, with many members having long tenures in their respective roles, ensuring stability[168][175]. - The board includes independent directors with extensive experience in law and finance, which strengthens the company's compliance and strategic decision-making[171][172]. - The company has engaged Zhongxing Cai Guanghua Accounting Firm for internal control audit services, with an audit fee of CNY 720,000[108]. - The company has established a robust independent financial management system, ensuring compliance with accounting standards and independent tax registration[194]. - The company has implemented strict confidentiality measures regarding insider information, with no incidents of information leakage reported[191]. Shareholder and Investor Relations - The company engaged in 60 investor communications during the reporting period, addressing inquiries about operations and restructuring progress[86]. - The company held 4 shareholder meetings during the reporting period, with participation rates of 46.46%, 45.61%, 50.31%, and 43.37% respectively[195][197]. - The company has not proposed any profit distribution plans or capital reserve transfers due to negative retained earnings[88]. - The company has committed to avoiding any substantial competition with its main business from its controlling shareholders and related parties[93]. - The company will not engage in any business that competes with its subsidiaries during the period of being a shareholder[96]. Environmental and Social Responsibility - The company has actively undertaken social responsibilities, promoting clean production and ensuring compliance with environmental standards[129]. - The company has established an emergency response plan for environmental incidents, which has been reviewed by experts and filed with the environmental protection bureau[133]. - The company has a wastewater treatment capacity of 500 tons per day and a gas treatment capacity of 30,000 cubic meters per hour, both operating normally during the reporting period[132]. - Chongqing Nansongkai Bio-Pharmaceutical Co., Ltd. reported a total chemical oxygen demand (COD) discharge of 1.55 tons per year, with a permitted discharge limit of 2.57 tons per year, indicating compliance with environmental standards[131]. Employee Management - The total number of employees in the company is 200, with 139 in production, 5 in sales, 27 in technical roles, 6 in finance, and 23 in administration[184]. - The company provides employees with benefits including "five insurances and one fund," paid leave, and training opportunities[185]. - The total remuneration for directors and senior management during the reporting period amounts to 180.63 million yuan[183]. - The company emphasizes internal and external training to enhance employee skills and management capabilities[186]. - The company has a structured training program focusing on various employee categories, including technical workers and management personnel[186].

Financial Performance - Operating revenue for the period was CNY 35,779,363.63, a decrease of 38.43% year-on-year[7] - Net profit attributable to shareholders was CNY -17,917,301.15, an increase of 33.23% in loss compared to the same period last year[7] - Total operating revenue for Q3 2019 was CNY 35,779,363.63, a decrease of 38.3% compared to CNY 58,115,465.97 in the same period last year[39] - Total operating costs for Q3 2019 were CNY 53,967,026.41, down 36.5% from CNY 85,376,143.30 year-on-year[39] - Net loss for Q3 2019 was CNY 17,917,301.15, compared to a net loss of CNY 26,832,653.27 in Q3 2018, representing a 33.5% improvement[41] - Total operating revenue for the current period was CNY 1,170,294.22, a decrease of 79.4% compared to CNY 5,688,542.62 in the previous period[44] - Total operating costs for the current period were CNY 2,194,169.01, down 68.7% from CNY 7,002,383.67 in the previous period[44] - Net profit for the current period was CNY -18,302,810.97, an improvement of 32.5% compared to CNY -27,250,964.00 in the previous period[45] - Total operating revenue for the year-to-date was CNY 123,171,734.39, down 43.2% from CNY 216,431,019.43 in the previous year[47] - Year-to-date net profit was CNY -50,402,237.44, an improvement of 48.3% compared to CNY -97,594,107.55 in the previous year[49] Assets and Liabilities - Total assets decreased by 7.37% to CNY 358,647,671.29 compared to the end of the previous year[7] - The company's total assets decreased to CNY 358.65 million from CNY 387.18 million, reflecting a reduction of about 7.4%[31] - The company's current liabilities increased to CNY 655.04 million from CNY 634.41 million, an increase of approximately 3.5%[32] - The company's total liabilities increased to CNY 657.02 million from CNY 636.99 million, an increase of about 3.1%[32] - The company's total liabilities as of September 30, 2019, were CNY 649,810,635.68, an increase from CNY 624,995,959.43 at the end of 2018, an increase of 4.0%[37] - The company's total equity attributable to shareholders was CNY -302,450,331.40 as of September 30, 2019, compared to CNY -253,685,686.40 at the end of 2018[38] Cash Flow - Cash flow from operating activities increased by 83.49% to CNY -7,324,856.16 year-to-date[7] - The cash flow from operating activities showed a net outflow of CNY 7,324,856.16, an improvement from a net outflow of CNY 44,377,787.74 in the same quarter last year[55] - The total cash inflow from operating activities was CNY 129,420,442.53, down from CNY 243,710,432.82 in the previous year, a decrease of about 46.9%[54] - The total cash outflow from operating activities was CNY 136,745,298.69, compared to CNY 288,088,220.56 in the same period last year, reflecting a decrease of approximately 52.4%[55] - The total cash and cash equivalents at the end of Q3 2019 were CNY 1,776,600.49, down from CNY 4,735,928.44 at the end of Q3 2018, indicating a decrease of about 62.5%[56] Inventory and Receivables - Inventory decreased by 23.93% to CNY 1,440,000, reflecting reduced raw materials and stock[14] - The company reported a significant decrease in inventory, which fell to CNY 14.39 million from CNY 18.92 million, a reduction of about 24.5%[30] - The company's accounts receivable decreased to CNY 4.75 million from CNY 5.36 million, a decline of approximately 11.3%[30] - Inventory as of September 30, 2019, was CNY 13,941,494.19, down 12.1% from CNY 15,862,080.67 at the end of 2018[36] - Other receivables increased significantly to CNY 5,215,574.50 from CNY 1,201,033.23, a rise of 334.4%[36] Expenses - Sales expenses decreased by 49.07% year-on-year, primarily due to reduced sales revenue[15] - Management expenses decreased by 19.88% year-on-year, attributed to production system shutdown[15] - The company reported a significant reduction in management expenses, which were CNY 11,357,621.93 for the current period, down from CNY 20,334,143.47 in the previous period, indicating a focus on cost control[44] - The company's management expenses decreased to CNY 11,494,585.28 from CNY 20,368,045.76, a reduction of 43.5% year-on-year[39] Company Actions and Risks - The company plans to sell assets and issue shares to acquire 93.41% of Nansong Pharmaceutical, raising up to CNY 120 million for transaction costs and fees[16] - The company has been under delisting risk warning since March 13, 2019, due to negative net assets reported in the 2018 audited financial statements[17] - The company has not engaged in any securities investment or entrusted financial management during the reporting period[20][21] - The third quarter report was not audited[60] - The company did not apply new financial instrument standards or new leasing standards for the current year[60] Shareholder Information - Basic and diluted earnings per share for the current period were both CNY -0.0622, compared to CNY -0.0927 in the previous period[45] - Basic and diluted earnings per share for the year-to-date were both CNY -0.1714, compared to CNY -0.3319 in the previous year[49] - The basic and diluted earnings per share for Q3 2019 were both -0.1721, compared to -0.3351 in Q3 2018, showing an improvement of approximately 48.5%[52] Chairman Information - The chairman of the company is Shi Weiguang[61]

Financial Performance - The company's operating revenue for the reporting period was ¥87,392,370.76, a decrease of 44.80% compared to ¥158,315,553.46 in the same period last year[17]. - The net profit attributable to shareholders was -¥32,484,936.29, an improvement of 54.09% from -¥70,761,454.28 year-on-year[17]. - The net cash flow from operating activities was -¥7,869,377.97, showing an increase of 81.74% compared to -¥43,095,500.13 in the previous year[17]. - The company achieved operating revenue of 87,392,370.76 RMB, a decrease of 44.80% compared to the previous year due to prolonged production line shutdowns[32]. - The net profit for the period was -3,248,490.00 RMB, indicating ongoing operational losses[32]. - The basic earnings per share were -¥0.1105, an improvement of 54.07% from -¥0.2406 in the same period last year[17]. - The company reported a net loss of 32.48 million RMB for the first half of 2019, with a net asset value of -28.11 million RMB as of June 30, 2019[48]. - The net profit for the first half of 2019 was -32,295,596.91 CNY, a decrease from -71,286,129.04 CNY in the same period of 2018, indicating an improvement of approximately 54.7%[116]. - The total comprehensive income for the period was -32,295,596.91 CNY, compared to -71,286,129.04 CNY in the previous year, reflecting a significant reduction in losses[116]. Assets and Liabilities - Total assets at the end of the reporting period were ¥373,002,951.33, a decrease of 3.66% from ¥387,181,828.94 at the end of the previous year[17]. - The company's total liabilities amounted to CNY 654,092,750.71 as of June 30, 2019, up from CNY 636,985,564.83 at the end of 2018, indicating a rise of about 2.0%[104]. - The company's total assets decreased to CNY 373,002,951.33 as of June 30, 2019, from CNY 387,181,828.94 at the end of 2018, representing a decline of approximately 3.7%[104]. - The company's total equity attributable to shareholders was reported at CNY -281,089,799.38 as of June 30, 2019, compared to CNY -249,803,735.89 at the end of 2018, indicating a further decline in equity[104]. - The company's cash and cash equivalents dropped significantly to CNY 1,894,725.76 as of June 30, 2019, down from CNY 5,077,706.04 at the end of 2018, a decrease of about 62.7%[101]. - The company's inventory decreased to CNY 16,199,215.78 as of June 30, 2019, from CNY 18,920,529.76 at the end of 2018, reflecting a decline of approximately 14.4%[102]. - The total equity attributable to the parent company at the end of the reporting period is -281,089,799.38 CNY, a decrease of 31,286,063.49 CNY compared to the beginning of the period[126]. - The total equity attributable to the parent company at the end of the reporting period is -284,782,410.51 yuan, a decrease of 31,096,724.11 yuan compared to the beginning of the period[129]. Operational Insights - Urea products accounted for over 90% of the company's total operating revenue during the reporting period[25]. - The company operates independently in production, procurement, and sales, based on production capacity and market demand[25]. - The company's main product, urea, maintained a stable price level compared to the previous year, contributing to its market share in regions like Guangxi and Guangdong[27]. - The production capacity for synthetic ammonia is 210,000 tons per year, while urea production capacity is 340,000 tons per year, accounting for approximately 60% of Guangxi's annual output[29]. - The company has established a point-of-order procurement model for coal, ensuring inventory levels are maintained based on demand[26]. - The company is currently facing risks due to a single product line and intense market competition, leading to potential impacts on future operating performance[47]. - The company is focusing on market research and product structure adjustment to enhance profitability[47]. Strategic Plans - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company plans to acquire a controlling stake in Chongqing Nansong Pharmaceutical Technology Co., Ltd., aiming for business transformation and asset restructuring[32]. - The company is actively pursuing a major asset restructuring, aiming to acquire controlling interest in Chongqing Nansong Pharmaceutical Technology Co., Ltd[47]. - The company plans to enhance its urea processing and sales business to improve its financial health and expand its product offerings[48]. - The company warns investors about the risks associated with the major asset restructuring, which may not be completed[81]. Environmental and Regulatory Compliance - The company has established various pollution control facilities, including a desulfurization system with a design capacity of 350,000 m³/h and a dust removal system with a design capacity of 136,880 m³/h[74]. - The company holds a valid pollution discharge permit from December 2017 to December 2020, with the certificate number 914512002008875580001P[75]. - The company has implemented a self-monitoring plan for environmental protection, including online and manual monitoring of wastewater and air pollutants[77]. - The company reported no significant environmental incidents or issues during the reporting period[78]. - The company has not conducted any construction project environmental impact assessments during the reporting period[75]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,186[87]. - Ningbo Yinyi Holdings Co., Ltd. is the largest shareholder, holding 29.59% of the shares, with 87,000,000 shares frozen[87]. - The second largest shareholder, Guangxi Hechi Chemical Industry Group Co., Ltd., holds 12.75% of the shares, totaling 37,493,589 shares[87]. - The company has not conducted any repurchase transactions during the reporting period[88]. - There are no significant changes in the number of shares held by major shareholders during the reporting period[88]. Audit and Compliance Issues - The company has faced a non-standard audit report due to negative net profit and net assets, indicating ongoing concerns about its ability to continue as a going concern[54]. - The company has been under delisting risk warning since March 13, 2019, due to negative net assets reported in the 2018 audited consolidated financial statements[81]. - Yin Yi Group and Yin Yi Holdings have been facing liquidity crises since 2019, leading to restructuring applications submitted to Ningbo Intermediate Court on June 14, 2019[59]. - The company reported no stock incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[60]. - There were no significant related party transactions related to daily operations, asset or equity acquisitions, or joint external investments during the reporting period[61][62][63]. Financial Reporting and Accounting Policies - The financial statements comply with the accounting standards and accurately reflect the company's financial position as of December 31, 2018[141]. - The company adopts a calendar year as its accounting period, running from January 1 to December 31[142]. - The company uses Renminbi as its functional currency for accounting purposes[144]. - The company has established specific accounting policies and estimates based on its actual production and operational characteristics[140]. - The company will reassess its control over subsidiaries if relevant facts and circumstances change[154]. - The consolidated financial statements include all subsidiaries controlled by the company[153]. - The company will adjust the financial statements of subsidiaries to align with its accounting policies and periods[156].

Group 1: Event Details - The company will participate in the "2019 Guangxi Region Listed Companies Investor Online Reception Day" on May 28, 2019, from 14:00 to 17:00 [1] - The event will be hosted on the "Panjing Roadshow" platform, accessible via the website or WeChat [1] Group 2: Company Representatives - The company's General Manager, Mr. Qin Baoming, will be present during the event [1] - The Chief Financial Officer, Ms. Mo Libing, and the Board Secretary, Ms. Qin Lifang, will also participate in the online Q&A session [1] Group 3: Interaction Focus - The online interaction will cover topics such as corporate governance, operational development, financing status, and sustainable development [1] - Company executives will be available to answer investor questions in real-time through the Panjing investor relations platform [1] Group 4: Assurance of Information - The company and its board members guarantee the accuracy and completeness of the disclosed information, ensuring no false statements or significant omissions [1]

Financial Performance - The company's operating revenue for 2018 was CNY 231,109,272.85, representing a 4.63% increase compared to CNY 220,881,635.31 in 2017[18]. - The net profit attributable to shareholders for 2018 was a loss of CNY 273,793,686.63, a decrease of 1,029.30% from a profit of CNY 29,462,410.92 in 2017[18]. - The net cash flow from operating activities improved by 84.25%, reaching a negative CNY 52,463,485.11 in 2018 compared to a negative CNY 333,003,552.25 in 2017[18]. - The total assets at the end of 2018 were CNY 387,181,828.94, a decrease of 52.66% from CNY 817,878,116.61 at the end of 2017[18]. - The net assets attributable to shareholders were negative CNY 249,803,735.89 at the end of 2018, a decline of 1,172.05% from CNY 23,301,439.92 at the end of 2017[18]. - The basic earnings per share for 2018 was negative CNY 0.9311, compared to positive CNY 0.1002 in 2017, reflecting a decrease of 1,029.24%[18]. - The company reported a significant loss in each quarter of 2018, with the fourth quarter loss reaching CNY 176,199,579.08[22]. - The company achieved operating revenue of CNY 231.11 million in 2018, with a net profit of -CNY 273.79 million, indicating a significant decline in profitability compared to the previous year[36]. Business Operations - The company has not made any changes to its main business since its listing[17]. - Urea products accounted for over 90% of the company's total operating revenue, while liquid carbon dioxide, liquid ammonia, and methanol contributed approximately 10%[27]. - The company reported a loss of CNY 135.42 million in fixed asset impairment due to long-term production stoppages[31]. - The company plans to acquire a controlling stake in Chongqing Nansong Pharmaceutical Technology Co., Ltd. and restructure its existing urea production-related business[36]. - The company faced challenges due to high production costs and low product prices, leading to ongoing operational losses[35]. - The company’s production model relies on coal as the primary raw material, with a focus on maintaining stable long-term operations[28]. - The company’s management is implementing detailed management strategies to reduce costs and improve operational efficiency amid a competitive market[35]. Financial Position - The company reported a significant decrease in cash and cash equivalents, with a net decrease of CNY 179,684,860.07, reflecting a 199.67% decline compared to the previous year[55]. - The total cash inflow from operating activities decreased by 6.28% to CNY 252,556,005.56, while cash outflow decreased by 49.37% to CNY 305,019,490.67[55]. - The company’s short-term borrowings increased by CNY 5,000,000.00, indicating a 1.29% rise from the beginning of the period[57]. - The company recorded a loss of CNY 698,810.00 from fair value changes in financial assets, which accounted for 0.26% of total profit[55]. - The company faced a liquidity issue, with current liabilities exceeding current assets by CNY 58.12 million as of December 31, 2018[188]. Market and Industry Context - The fertilizer industry is experiencing a recovery due to supply-side reforms, with the company expecting to benefit from improved market conditions in the future[70]. - The company faced challenges in 2018, including high raw material prices and increased production costs, leading to a decline in production output[70]. - The company is actively seeking new project opportunities and profit growth points to ensure long-term sustainable development[70]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, with no unresolved governance issues[162]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring complete operational autonomy[167]. - The company has established a complete independent management system for labor and salary, with senior management exclusively working for the company and not holding any positions in the controlling shareholder or related enterprises[167]. - The audit report issued by Zhongxing Caiguanghua reflects the company's financial status and operational results accurately[84]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit, with emissions of nitrogen oxides at 1,008.6 tons per year, which is within the regulatory limits[113]. - The company has implemented clean production practices to support national energy conservation and emission reduction efforts[112]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and filed with the environmental protection bureau[117]. Future Outlook and Strategy - The company plans to undergo a transformation by divesting its urea production business and focusing on commissioned processing and sales of urea, alongside pharmaceutical intermediates as dual main business drivers[71]. - The company aims to enhance its operational efficiency and profitability through mergers and acquisitions, while also optimizing its asset structure and business model[71]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[150].

Financial Performance - The company's operating revenue for Q1 2019 was ¥24,691,165.08, a decrease of 57.87% compared to the same period last year[7]. - Total operating revenue for Q1 2019 was ¥24,691,165.08, a decrease of 57.9% compared to ¥58,610,702.46 in the same period last year[34]. - The net profit attributable to shareholders was -¥16,377,829.62, an improvement of 58.48% year-on-year[7]. - The net loss for Q1 2019 was ¥16,377,829.62, an improvement from a net loss of ¥39,449,836.81 in Q1 2018[36]. - The company's operating revenue for the current period is ¥2,062,695.15, a significant decrease from ¥30,602,865.72 in the previous period, representing a decline of approximately 93.3%[39]. - Operating profit for the current period is reported at -¥16,120,626.81, an improvement compared to -¥40,131,260.26 in the previous period, indicating a reduction in losses by about 59.8%[39]. - The net profit for the current period stands at -¥16,110,626.81, which is also an improvement from -¥40,103,968.20 in the previous period, reflecting a decrease in losses of approximately 59.9%[40]. - Basic and diluted earnings per share for Q1 2019 were both -¥0.0557, compared to -¥0.1342 in the same period last year[37]. - The basic and diluted earnings per share for the current period are both -¥0.0548, an improvement from -¥0.1364 in the previous period, reflecting a reduction in loss per share by about 60%[40]. Cash Flow and Liquidity - The net cash flow from operating activities was -¥4,618,044.93, showing an increase of 87.31% compared to the previous year[7]. - Cash flow from operating activities shows a net outflow of -¥4,618,044.93, which is an improvement from -¥36,385,058.15 in the previous period, indicating a reduction in cash outflow by about 87.3%[43]. - The company's cash and cash equivalents decreased by 46.43% to ¥2,357,700, primarily due to cash outflows from operating activities[14]. - The total cash and cash equivalents at the end of the period is ¥2,719,998.67, down from ¥8,360,357.35 in the previous period, a decrease of approximately 67.5%[44]. - The company received cash from other operating activities amounting to ¥2,271,734.77, a significant increase from ¥236,476.47 in the previous period, representing an increase of about 862.5%[43]. - The company reported cash inflow from financing activities of ¥2,150,000.00, a decrease from ¥28,500,000.00 in the previous period, indicating a decline of approximately 92.5%[44]. - The net increase in cash and cash equivalents was -178,636,046.38 CNY[47]. - The ending balance of cash and cash equivalents was 1,455,896.23 CNY[47]. Assets and Liabilities - The total assets at the end of the reporting period were ¥415,900,080.52, an increase of 7.42% from the end of the previous year[7]. - As of March 31, 2019, the company's total assets amounted to CNY 415.90 million, an increase from CNY 387.18 million as of December 31, 2018, representing a growth of approximately 7.0%[26]. - The company's total liabilities increased to CNY 681.57 million from CNY 636.99 million, marking an increase of approximately 7.0%[28]. - The company's total assets decreased to ¥361,318,385.12 from ¥371,310,273.03 at the end of the previous period[33]. - Total liabilities increased slightly to ¥630,603,443.89 from ¥624,995,959.43[33]. - The owner's equity showed a deficit of ¥269,285,058.77, worsening from a deficit of ¥253,685,686.40[33]. - The company's equity attributable to shareholders was reported at CNY -265.67 million, worsening from CNY -249.80 million at the end of 2018[30]. Inventory and Prepayments - The company reported a significant increase in prepayments, which rose by 1,106.14% to ¥421,310,000, mainly due to payments to suppliers[14]. - The company reported a significant increase in prepayments, which rose to CNY 45.94 million from CNY 3.81 million, a growth of approximately 1,105.0%[26]. - The company’s inventory decreased by 12.62% to ¥238,790,000, attributed to sales of inventory goods[14]. - Inventory decreased to CNY 16.53 million from CNY 18.92 million, a reduction of about 12.6%[26]. Shareholder Information - The company’s major shareholders include Ningbo Yinyi Holdings Co., Ltd. with a 29.59% stake and Guangxi Hechi Chemical Industry Group Co., Ltd. with a 12.75% stake[10]. Corporate Actions - The company plans to acquire control of Chongqing Nansong Pharmaceutical Technology Co., Ltd., which constitutes a major asset restructuring[15]. - The company’s stock was placed under "delisting risk warning" due to negative net assets as of the end of 2018[15]. Expenses and Other Income - Total operating costs for Q1 2019 were ¥41,278,155.43, down 58.0% from ¥98,036,522.48 year-on-year[34]. - The company reported a significant reduction in management expenses, which were ¥10,988,794.25, up from ¥7,702,316.06 in the previous year[34]. - The management expenses for the current period are reported at ¥10,826,927.89, an increase from ¥7,656,212.48 in the previous period, representing an increase of about 41.5%[39]. - Other income for Q1 2019 was ¥199,160.73, unchanged from the previous year[34]. - The company recorded a financial expense of ¥6,082,469.13, slightly down from ¥6,168,084.37 year-on-year[34]. - The company incurred sales expenses of ¥183,600.75, down from ¥41,544.67 in the previous period, indicating a decrease of approximately 56.1%[39]. Investment and Derivatives - The company had no significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[22]. - There were no derivative investments reported during the period, indicating a conservative investment strategy[19]. Audit and Standards - The first quarter report was not audited[49]. - The company did not apply new financial instrument standards or new revenue standards[48].

Financial Performance - The company's operating revenue for 2018 was CNY 231,109,272.85, an increase of 4.63% compared to CNY 220,881,635.31 in 2017[18]. - The net profit attributable to shareholders for 2018 was a loss of CNY 273,793,686.63, representing a decrease of 1,029.30% from a profit of CNY 29,462,410.92 in 2017[18]. - The net cash flow from operating activities improved by 84.25%, reaching a negative CNY 52,463,485.11 in 2018 compared to a negative CNY 333,003,552.25 in 2017[18]. - The total assets at the end of 2018 were CNY 387,181,828.94, a decrease of 52.66% from CNY 817,878,116.61 at the end of 2017[18]. - The net assets attributable to shareholders were negative CNY 249,803,735.89 at the end of 2018, a decline of 1,172.05% from CNY 23,301,439.92 at the end of 2017[18]. - The basic earnings per share for 2018 was -CNY 0.9311, a decrease of 1,029.24% from CNY 0.1002 in 2017[18]. - The company reported a significant increase in non-operating losses, with a total of CNY 279,868,579.46 in net profit excluding non-recurring gains and losses, a 163.61% increase from the previous year[18]. - The company reported a net loss of CNY 27.38 million in 2018, significantly impacted by increased asset impairment losses and a decline in debt restructuring gains and government subsidies compared to the previous year[34]. Revenue Breakdown - Urea products accounted for over 90% of the company's total operating revenue, while liquid carbon dioxide, liquid ammonia, and methanol contributed approximately 10%[27]. - The company recorded a decrease in urea revenue of 9.61% year-on-year, with urea sales amounting to CNY 196.58 million in 2018[39]. - The chemical industry segment generated CNY 216.48 million in revenue, accounting for 93.67% of total operating revenue, reflecting a 3.39% decrease from the previous year[39]. - The company's revenue for the fertilizer industry was approximately ¥196.58 million, with a year-over-year decrease of 5.99% in revenue and a gross margin decline of 6.01%[42]. Operational Challenges - The company faced continuous operational losses due to a decline in urea prices and rising production costs, leading to a decision to halt production and dispose of production facilities[34]. - Fixed asset impairment amounted to CNY 135.42 million due to long-term production line shutdowns[31]. - The company has a long-term suspension of its urea production line due to low product value and market competitiveness, leading to significant operational challenges[122]. - The company is facing major uncertainties regarding its ability to continue as a going concern due to financial losses and negative net assets[192]. Strategic Initiatives - The company plans to acquire a controlling stake in Chongqing Nansong Pharmaceutical Technology Co., Ltd. as part of its strategy for transformation and upgrading[36]. - The company plans to seek development opportunities and optimize its asset structure to achieve effective industrial transformation and sustainable growth[72]. - The company aims to enhance its operational status through mergers and acquisitions, focusing on dual business drivers: urea processing and pharmaceutical intermediates[72]. - The company is in the process of a major asset restructuring, planning to acquire control of Chongqing Nansong Pharmaceutical Technology Co., Ltd., while divesting its urea production-related assets[123]. Environmental Compliance - The company has established a wastewater treatment plant with a design capacity of 2,880 tons per day, which has been operating normally during the reporting period[116]. - The company has implemented various pollution control facilities, including a desulfurization system with a design capacity of 350,000 m³/h, all of which have been functioning properly[116]. - The company has a valid pollution discharge permit effective from December 2017 to December 2020, ensuring compliance with environmental regulations[117]. - The company has submitted a self-monitoring plan for environmental compliance, which includes regular monitoring of wastewater and air pollutants[119]. Governance and Compliance - The audit report issued by Zhongxing Caiguanghua CPA confirmed the company's financial status without any reservations, reflecting the company's financial condition and operating results accurately[85]. - The company has no current stock incentive plans or employee stock ownership plans in place[97]. - The company has not experienced any leakage of insider information during the reporting period[169]. - The company operates independently from its controlling shareholder in terms of business, personnel, assets, organization, and finance, ensuring complete operational autonomy[172]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,268, an increase from 23,508 at the end of the previous month[129]. - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 29.59% of the shares, totaling 87,000,000 shares, which are pledged[129]. - The company has maintained its shareholding ratio at no less than 29.59% since the acquisition date, ensuring stability in its ownership structure[82]. Future Outlook - The company has not provided specific future outlook or performance guidance in the available documents[136]. - The company is actively conducting market research to adjust its product structure and enhance profitability amid industry challenges[73].