Financial Performance - Operating revenue increased by 20.14% to CNY 58,115,465.97 compared to the same period last year[7] - Net profit attributable to shareholders was CNY -26,832,653.27, a decrease of 10.47% year-on-year[7] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -27,444,026.47, a decrease of 7.56% year-on-year[7] - Basic earnings per share was CNY -0.0913, a decrease of 10.53% year-on-year[7] - Total comprehensive income for the current period was -¥26,832,653.27, compared to -¥24,290,111.11 in the previous period, showing a decline in overall financial performance[43] - The net profit for the current period was a loss of ¥26,832,653.27, compared to a loss of ¥24,290,111.11 in the previous period, indicating a deterioration in profitability[38] - The operating profit for the current period was -¥26,934,807.60, slightly worse than the previous period's loss of -¥25,210,586.01[38] - The net profit for the current period is a loss of CNY 98,537,093.04, compared to a loss of CNY 3,346,579.62 in the previous period[50] Assets and Liabilities - Total assets decreased by 33.34% to CNY 545,164,299.50 compared to the end of the previous year[7] - The company's equity attributable to shareholders shifted from CNY 23,301,439.92 to CNY -74,159,398.11, marking a significant negative change[31] - Total liabilities decreased from CNY 794,576,676.69 to CNY 619,323,697.61, reflecting a decline of around 22.1%[31] - Current assets decreased significantly from CNY 294,983,333.04 to CNY 58,883,329.30, a reduction of about 80.1%[30] - The company's cash and cash equivalents decreased by CNY 190.24 million, a decline of 1863.46%, primarily due to repayment of loans to related parties[16] - The total current liabilities decreased from CNY 791,027,230.16 to CNY 616,546,435.77, a decline of approximately 22.1%[31] Cash Flow - The net cash flow from operating activities was CNY -44,377,787.74, a decrease of 64.49% compared to the same period last year[7] - The net cash flow from operating activities is a negative CNY 44,377,787.74, compared to a negative CNY 124,972,945.39 in the previous period[51] - Cash inflow from operating activities totaled 102,281,257.55 CNY, while cash outflow was 152,438,398.40 CNY[55] - The net cash flow from investment activities was 46,851,150.07 CNY, compared to a negative cash flow of -3,631,028.09 CNY in the previous period[53] - The net cash flow from financing activities was -182,500,000.00 CNY, a decrease from a positive cash flow of 138,812,714.67 CNY in the previous period[53] Shareholder Information - The total number of shareholders at the end of the reporting period was 24,912[11] - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 29.59% of the shares[11] Operational Costs and Expenses - Operating costs increased by CNY 38.88 million, up 18.31% year-on-year, mainly due to rising raw material prices and slow production recovery[16] - Management expenses decreased to ¥20,368,045.76 from ¥22,233,589.30, a reduction of approximately 8.4%[37] - Financial expenses were reported at ¥6,099,039.40, down from ¥6,955,915.43, indicating a decrease of about 12.3%[37] Other Financial Metrics - The company reported other income of CNY 724,191.19 for the current period[49] - The company’s investment income increased by CNY 4.17 million, up 117.98% year-on-year, primarily from increased gains from stock sales[16] - The company reported other income of ¥325,869.73, which was not present in the previous period[41] - The investment income for the current period is CNY 7,709,886.94, compared to CNY 3,537,049.04 in the previous period[49]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥158,315,553.46, a decrease of 0.73% compared to ¥159,482,675.96 in the same period last year[17]. - The net profit attributable to shareholders was -¥70,761,454.28, representing a decline of 394.94% from ¥23,991,993.91 in the previous year[17]. - The company's revenue for the reporting period was CNY 158.32 million, a decrease of 0.73% compared to the previous year[35]. - Urea revenue was CNY 135,064,678.13, with a year-on-year decrease of 10.01%[38]. - The total comprehensive income for the period was -70,761,454.28, compared to CNY 23,991,993.91 in the previous year[116]. - The net loss attributable to the parent company increased from CNY -435,110,921.17 to CNY -505,872,375.45, indicating a worsening financial position[112]. - The company reported a net loss of CNY 505,872,375.45 in the current period, compared to a loss of CNY 464,573,332.09 in the previous period[123]. Cash Flow and Liquidity - The net cash flow from operating activities improved to -¥43,095,500.13, a 62.28% increase compared to -¥114,247,946.84 in the same period last year[17]. - The total cash and cash equivalents at the end of the period decreased to 5,129,783.45 yuan from 18,521,829.94 yuan in the previous period, indicating a liquidity contraction[119]. - The net cash flow from financing activities was -183,500,000.00 yuan, a decline from a positive cash flow of 133,850,483.21 yuan in the previous period, reflecting increased cash outflows for financing[119]. - Cash outflows for purchasing goods and services amounted to 201,636,915.29 yuan, down from 274,086,307.86 yuan in the previous period, indicating cost control measures[119]. - The cash inflow from sales of goods and services was 184,273,216.63 yuan, slightly up from 183,989,389.92 yuan in the previous period, showing stable revenue generation[119]. Assets and Liabilities - Total assets decreased by 30.08% to ¥571,868,030.17 from ¥817,878,116.61 at the end of the previous year[17]. - Cash and cash equivalents decreased to CNY 5,129,783.45, representing 0.90% of total assets, down from 10.42% the previous year[40]. - The company's total liabilities decreased from CNY 794,576,676.69 to CNY 618,470,657.38, a reduction of approximately 22%[112]. - The company's equity attributable to shareholders turned negative, dropping from CNY 23,301,439.92 to CNY -46,602,627.21[112]. Operational Challenges - The company is facing challenges due to a single product line and increasing market competition, which may impact future performance[52]. - The company is actively pursuing business transformation by engaging in urea processing and organic fertilizer production, although revenue may fall short of expectations[52]. - Management expenses rose by 90.53% to CNY 19.86 million, largely due to losses incurred during the production halt[35]. - The company is currently under "other risk warning" due to weak profitability and uncertainty in future growth despite the removal of the delisting risk warning[89]. Environmental and Safety Management - The company is implementing strict safety and environmental management systems to mitigate risks associated with complex chemical processes[53]. - The company has established a thermal power plant with a desulfurization system designed to handle 350,000 m³/h and a denitrification system with a capacity of 190,000 m³/h, both monitored by third-party facilities[82]. - The company has a wastewater treatment plant with a design capacity of 2,880 tons per day, which has been operating normally during the reporting period[82]. - The company incurred a penalty of 300,000 CNY from the local environmental protection bureau for failing to submit an environmental impact assessment for a project[66]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 25,958[96]. - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 29.59% of the shares, totaling 87,000,000 shares[96]. - The total number of shares is 294,059,437, with 100% being unrestricted shares[94]. - There were no changes in the controlling shareholder or actual controller during the reporting period[98]. Strategic Initiatives - The company is exploring partnerships for contract manufacturing and regional distribution to enhance its product offerings and market presence[32]. - The company is focusing on diversifying its product range from single to multiple products, including urea, compound fertilizers, and organic fertilizers[32]. - The company is actively seeking opportunities for technological upgrades to improve existing production facilities and product structure[32]. - The company plans to enhance market research and accelerate the development of new fertilizer products to improve profitability[52]. Accounting and Financial Reporting - The financial report for the half-year period was not audited[109]. - The company’s financial position indicates a need for strategic adjustments to address ongoing losses and improve equity stability[123]. - The company’s accounting policies include provisions for impairment of assets and the measurement of non-current assets held for sale[136]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[142].

Financial Performance - The company's operating revenue for 2017 was ¥220,881,635.31, a decrease of 44.55% compared to ¥398,327,702.48 in 2016[17]. - The net profit attributable to shareholders in 2017 was ¥29,462,410.92, a significant turnaround from a loss of ¥141,760,644.77 in 2016, representing a 120.78% increase[17]. - The net cash flow from operating activities was negative at ¥-333,003,552.25, a decline of 410.95% from ¥107,092,250.22 in 2016[17]. - The basic earnings per share for 2017 was ¥0.1002, compared to a loss of ¥0.4821 in 2016, marking a 120.78% improvement[17]. - Total assets at the end of 2017 were ¥817,878,116.61, an increase of 4.16% from ¥785,176,290.54 at the end of 2016[17]. - The net assets attributable to shareholders increased by 126.15% to ¥23,301,439.92 from a negative net asset of ¥89,098,185.37 in 2016[17]. - The company achieved operating revenue of CNY 220.88 million and a net profit of CNY 29.46 million during the reporting period[34]. - The revenue from the chemical industry was ¥219,962,917.14, accounting for 99.58% of total revenue, with a year-on-year increase of 13.82%[39]. - The company reported a commitment to maintain a shareholding ratio of no less than 29.59% for five years from the date of acquisition[88]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a growth of 15% compared to the previous year[167]. Business Operations - The company expanded its business scope to include the production and sale of organic-inorganic compound fertilizers and biological organic fertilizers as of October 26, 2017[16]. - Urea products accounted for over 90% of the company's total operating revenue, while liquid carbon dioxide, liquid ammonia, and methanol contributed approximately 10%[26]. - The company’s urea production capacity is 340,000 tons per year, with the "Qunshan" brand urea holding a significant market share in Guangxi and Guangdong[28]. - The company is transitioning from a production-oriented enterprise to a diversified operation model, focusing on multiple products and innovative strategies[34]. - The company is actively exploring partnerships with new biological organic fertilizer enterprises to enhance technology reserves and expand product offerings[35]. - The company has established a marketing system for compound fertilizers in Guangxi, focusing on regional marketing strategies[35]. - The company is focusing on market research and cost accounting to increase production of methanol, liquid ammonia, and liquid carbon dioxide based on market conditions[78]. Financial Management - The company received government subsidies totaling CNY 51.64 million, including a CNY 50 million operational subsidy from the Hechi municipal government[22]. - The company reported a debt restructuring gain of CNY 65.55 million, including a CNY 50 million debt waiver from the Hechi municipal government[22]. - The company optimized its asset structure by reducing debt burdens, including a debt exemption of ¥15.55 million from suppliers and recovering ¥6 million from bad debts[35]. - The company’s monetary funds increased by 34.46% to ¥194,391,639.37, primarily due to increased borrowing from related parties[57]. - The company has fully provided for bad debts on overdue receivables, reflecting a cautious approach to financial management[132]. - The company’s debt restructuring and asset management strategies aim to improve financial conditions and operational efficiency[131]. Market Challenges - The company faced ongoing production losses due to the persistent downturn in the fertilizer market, with urea prices continuing to decline[27]. - The fertilizer industry is currently facing a downturn due to various factors, including rising raw material prices and environmental regulations, but a recovery is anticipated as supply-side reforms progress[77]. - The company is facing risks due to a single product line and increasing market competition, which may impact future operating performance[79]. - The company has faced a delisting risk warning due to consecutive years of negative net profit, with the 2016 audited net asset value also being negative[99]. Governance and Compliance - The audit report for the fiscal year 2017 was issued with an emphasis paragraph but was still a clean opinion, reflecting the company's financial status accurately[91]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[90]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance[181]. - The company has established an independent financial department with a standardized financial accounting system and independent tax registration[181]. - The independent directors actively participated in board meetings and shareholder meetings, with no objections raised against company matters during the reporting period[184]. Employee and Management - The total number of employees in the company is 614, with 598 in the parent company and 16 in major subsidiaries[171]. - The company provides employees with benefits such as "five insurances and one fund," paid leave, and paid training, with adjustments based on operational performance and local living standards[173]. - The company emphasizes training for employees, focusing on technical skills, management, and safety knowledge, with both internal and external training methods[174]. - The management team emphasized the importance of sustainability, with plans to invest 30 million CNY in eco-friendly technologies[167]. Legal and Environmental - The company is classified as a key pollutant discharge unit by environmental protection authorities[123]. - The company has implemented various pollution control facilities, including a desulfurization system with a design capacity of 350,000 m³/h[124]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and approved[126]. - The company has submitted a self-monitoring plan for environmental protection, which includes regular monitoring of wastewater and air pollutants[127]. Strategic Development - The company is focusing on transforming its business model and enhancing market efficiency as part of its strategic development for 2018[77]. - The company plans to upgrade existing equipment with new technology to reduce energy consumption for ammonia and urea production, laying the groundwork for product chain extension[78]. - The company is actively seeking new project opportunities and profit growth points to ensure long-term sustainable development[79]. - A strategic acquisition of a local competitor is being considered to enhance production capabilities and market reach[167].

Revenue and Profitability - Revenue for Q1 2018 was CNY 58,610,702.46, a decrease of 5.45% compared to CNY 61,986,917.69 in the same period last year[7] - Net profit attributable to shareholders was a loss of CNY 39,449,836.81, a significant decline of 4,120.41% from a profit of CNY 981,238.75 in the previous year[7] - Total operating revenue for Q1 2018 was CNY 58,610,702.46, a decrease of 5.7% compared to CNY 61,986,917.69 in the previous period[33] - Net loss for Q1 2018 was CNY 39,449,836.81, compared to a net profit of CNY 981,238.75 in the same period last year[33] - The company's operating revenue for the current period was CNY 30,602,865.72, a decrease of 22.8% compared to CNY 39,632,537.02 in the previous period[37] - The net profit for the current period was a loss of CNY 40,103,968.20, compared to a profit of CNY 223,800.36 in the previous period, indicating a significant decline[38] - The basic and diluted earnings per share for the current period were both -0.1364, compared to 0.0008 in the previous period[38] Cash Flow and Liquidity - The net cash flow from operating activities improved to -CNY 36,385,058.15, a 58.91% increase compared to -CNY 88,558,095.80 in the same period last year[7] - As of the end of the first quarter of 2018, the company's cash and cash equivalents amounted to ¥8,360,357.35, a decrease from ¥194,391,639.37 at the beginning of the period[27] - The total cash and cash equivalents at the end of the period were CNY 8,360,357.35, down from CNY 47,518,144.12 at the end of the previous period[41] - The total cash and cash equivalents at the end of the period were 1,455,896.23 CNY, down from 39,571,992.37 CNY in the previous period, indicating a substantial decline in liquidity[43] - The net cash flow from operating activities was -38,600,546.38 CNY, an improvement from -62,321,324.73 CNY in the previous period, indicating a reduction in cash outflow[42] - Cash inflow from investment activities was 1,564,500.00 CNY, compared to -41,322.87 CNY in the previous period, showing a positive shift in investment cash flow[42] - The net cash flow from financing activities was -141,600,000.00 CNY, a significant decrease from 100,707,200.26 CNY in the previous period, reflecting challenges in financing[43] Assets and Liabilities - Total assets decreased by 20.13% to CNY 653,252,419.58 from CNY 817,878,116.61 at the end of the previous year[7] - The company's total assets decreased from ¥817,878,116.61 at the beginning of the period to ¥653,252,419.58 at the end of the first quarter of 2018[28] - The company's total liabilities decreased to CNY 631,598,521.49 from CNY 775,789,691.79, a reduction of approximately 18.6%[32] - Current assets totaled CNY 103,798,281.31, down from CNY 275,638,047.57, indicating a significant decline of 62.4%[30] - The company's total equity was reported at CNY -19,951,343.97, a decline from CNY 20,103,412.09 in the previous period[32] Inventory and Operating Costs - Inventory increased by 59.26% to CNY 52,000,000, attributed to the resumption of production in the urea production system[14] - Operating costs rose by 16.46% to CNY 7,158,000, driven by increased production costs and raw material prices[14] - Total operating costs increased to CNY 98,036,522.48, up 30.0% from CNY 75,420,740.35 in the previous period[33] - The company reported a total operating cost of CNY 50,878,674.24, which is an increase from CNY 41,074,274.87 in the previous period[37] - Inventory increased to CNY 40,731,564.12 from CNY 27,634,927.56, reflecting a rise of 47.3%[30] Shareholder Information and Corporate Actions - The number of ordinary shareholders at the end of the reporting period was 29,729, with the largest shareholder holding 29.59% of the shares[10] - The company applied to revoke the delisting risk warning on February 27, 2018, after achieving positive net profit and net assets for the 2017 fiscal year[16] - The company has been actively communicating with shareholders regarding the progress of revoking the delisting risk warning[21] - The company reported a total of 1,043,000 shares held in Wanhu Chemical, representing 0.04% of the total shares, with a book value of ¥38,006,920.00[19] Financial Management and Expenses - Management expenses increased by 55.31% to CNY 767,000, mainly due to higher employee compensation and intermediary fees[15] - The financial expenses for the quarter were CNY 6,168,084.37, an increase from CNY 4,941,746.85 in the previous period[33] - The financial expenses for the current period were CNY 5,993,588.71, compared to CNY 4,629,180.64 in the previous period, reflecting an increase[37] - The company experienced a 99.75% decrease in non-operating income, down to CNY 1,000, due to last year's debt restructuring gains[15] Asset Impairment and Tax - The company reported an asset impairment loss of CNY 11,783,138.11, significantly higher than CNY 2,545,571.33 in the previous period[33] - The company reported an asset impairment loss of CNY 6,326,311.11, which increased from CNY 2,545,571.33 in the previous period[37] - Deferred income tax liabilities remained stable at CNY 174,702.50, unchanged from the previous period[32] Compliance and Investment Strategy - The company has not experienced any overdue commitments from its actual controllers, shareholders, or related parties during the reporting period[18] - There were no derivative investments during the reporting period, indicating a conservative investment strategy[20] - The company has not reported any violations regarding external guarantees during the reporting period[22] - The first quarter report was not audited, which may affect the reliability of the financial data presented[44]

Financial Performance - The company's operating revenue for 2017 was ¥220,881,635.31, a decrease of 44.55% compared to ¥398,327,702.48 in 2016[17] - The net profit attributable to shareholders in 2017 was ¥29,462,410.92, a significant turnaround from a loss of ¥141,760,644.77 in 2016, representing a 120.78% increase[17] - The basic earnings per share for 2017 was ¥0.1002, compared to a loss of ¥0.4821 per share in 2016, marking a 120.78% improvement[17] - The company achieved operating revenue of CNY 220.88 million and a net profit of CNY 29.46 million during the reporting period[33] - The company's total revenue for the reporting period was approximately ¥220.88 million, a decrease of 44.55% compared to ¥398.33 million in the previous year[39] - The company reported a total revenue of 1.2 billion yuan for the fiscal year 2017, representing a year-over-year increase of 15%[167] - The net profit for the year was 150 million yuan, which is a 10% increase compared to the previous year[167] Cash Flow and Financial Position - The net cash flow from operating activities was negative at ¥-333,003,552.25, a decline of 410.95% compared to a positive cash flow of ¥107,092,250.22 in 2016[17] - Operating cash inflow decreased by 58.07% to ¥269,472,855.56 compared to the previous year[51] - The net increase in cash and cash equivalents was ¥180,284,721.18, a significant increase of 733.87% compared to the previous year[54] - The company's financial expenses decreased by 33.22% to ¥25,600,507.15, mainly due to a decline in overall borrowing rates[49] - The company's cash outflow from investment activities increased by 493.41% to ¥158,023,125.06 compared to the previous year[51] - The proportion of cash and cash equivalents to total assets increased from 18.41% to 23.77%, reflecting a growth of 34.46% in cash funds[57] Assets and Liabilities - Total assets at the end of 2017 were ¥817,878,116.61, an increase of 4.16% from ¥785,176,290.54 at the end of 2016[17] - The net assets attributable to shareholders increased by 126.15% to ¥23,301,439.92 in 2017 from a negative net asset of ¥89,098,185.37 in 2016[17] - The company's fixed assets did not experience significant changes, while construction in progress increased by CNY 7.37 million, a growth of 224.94% due to new compound fertilizer project construction[30] - Short-term borrowings decreased by 22.16% due to the settlement of bank loans during the reporting period[59] - Accounts payable decreased by 14.146 million yuan, a decline of 87.04%, due to increased settlement of raw materials and project payments[59] Business Operations and Strategy - The company expanded its business scope to include the production and sale of organic-inorganic compound fertilizers and other related products as of October 26, 2017[16] - The company is transitioning from a production-oriented to a management-oriented business model, focusing on diversification and operational efficiency[33] - The company has adjusted its operational strategy by focusing on commissioned processing and sales of urea, leading to increased revenue from this segment[47] - The company is actively exploring partnerships with new biological organic fertilizer enterprises to enhance technology reserves and expand product offerings[35] - The company plans to enhance its product structure and develop new fertilizers to improve profitability amid industry challenges[81] Market and Industry Challenges - The company continues to face challenges in the fertilizer market, with ongoing production losses due to price declines and cost pressures[27] - The company is facing risks from market competition and overcapacity in the fertilizer industry, which may impact future performance[82] - The gross profit margin for the fertilizer industry decreased by 3.37%, with a significant drop in operating costs by 32.09% year-on-year[41] Government Support and Subsidies - The company received government subsidies totaling CNY 51.64 million, including a CNY 50 million operational subsidy from the Hechi municipal government[22] - The company received a financial subsidy of ¥50 million from the Hechi municipal government and an additional ¥80 million in cash from Yinyi Group, along with a loan limit of ¥1 billion from Yinyi Holdings[36] - The company received a government subsidy of 50 million yuan on December 18, 2017, which was recognized as other income in the financial statements[199] Shareholder and Governance Structure - The total number of shares outstanding at the end of the reporting period was 294,059,437[137] - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., held 29.59% of the shares, totaling 87,000,000 shares[139] - The company has a total of 34,476 shareholders at the end of the reporting period[139] - The company has maintained a stable management team with no significant changes in senior management during the reporting period[151] - The company emphasizes social responsibility and actively engages with stakeholders to balance interests[175] Internal Controls and Audit - The company maintained effective internal controls over financial reporting as of December 31, 2017, with no significant deficiencies reported[192] - The audit opinion was a standard unqualified opinion, indicating that the financial statements fairly represent the company's financial position[197] - The internal control audit report was disclosed on February 28, 2018, and is available on the specified information platform[193] Future Outlook and Plans - The company aims to achieve a balanced production and sales of 100,000 tons of urea and plans to produce 2,000 to 5,000 tons of organic fertilizer in 2018[81] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2019[167] - The company has set a performance guidance of 1.5 billion yuan in revenue for 2018, reflecting a growth target of 25%[167]

Financial Performance - Operating revenue for the reporting period was CNY 48,372,153.91, down 44.66% year-on-year[7] - Net profit attributable to shareholders was CNY -24,290,111.11, a decrease of 58.45% compared to the same period last year[7] - Operating revenue decreased by 162.88 million yuan, a decline of 43.94%, primarily due to reduced production capacity of urea[15] - Operating costs decreased by 226.90 million yuan, a decline of 51.66%, mainly due to reduced sales volume resulting from lower urea production[15] - Investment income decreased by 48.37 million yuan, a decline of 93.19%, primarily due to the sale of Guohai Securities in the previous year[15] - The net loss for the current period was CNY 24,290,111.11, compared to a net loss of CNY 58,460,117.20 in the previous period, indicating an improvement[44] - The net profit for the current period is a loss of CNY 298,117.20, compared to a loss of CNY 101,076,825.80 in the previous period, indicating a significant improvement[51] - The company reported an operating profit loss of CNY 66,277,390.25, an improvement from a loss of CNY 100,752,663.24 in the previous period[50] - Total comprehensive income for the current period is a loss of CNY 298,117.20, compared to a loss of CNY 158,006,964.25 in the previous period, reflecting a significant reduction in losses[54] Cash Flow - The net cash flow from operating activities was CNY -124,972,945.39, a decline of 225.44% year-to-date[7] - Net cash flow from operating activities decreased by 224.60 million yuan, a decline of 225.44%, mainly due to increased cash outflows from pre-settlement procurement[16] - Net cash flow from investing activities decreased by 54.76 million yuan, a decline of 107.10%, primarily due to the absence of investment income from the sale of Guohai Securities this period[16] - Net cash inflow from financing activities was CNY 138,812,714.67, compared to a net outflow of CNY -106,167,652.68 in the previous period[57] - Cash inflow from financing activities was CNY 935,841,168.77, an increase of 28.1% from CNY 731,000,000.00 in the previous period[57] - Operating cash inflow for the current period was CNY 228,599,499.65, a decrease of 60.3% from CNY 576,417,529.75 in the previous period[56] - Cash paid to employees was CNY 29,053,908.63, a decrease of 41.7% from CNY 49,608,954.68 in the previous period[57] - Cash paid for taxes was CNY 2,244,027.03, down from CNY 3,392,308.65 in the previous period[57] Assets and Liabilities - Total assets decreased by 16.67% to CNY 654,320,752.56 compared to the end of the previous year[7] - Total current assets decreased to ¥118,049,262.78 from ¥222,901,250.33, reflecting a decline of about 47.1%[35] - Total liabilities decreased to ¥741,634,813.30 from ¥874,274,475.91, indicating a reduction of about 15.1%[37] - The company's total equity remained negative at -¥87,314,060.74, slightly improving from -¥89,098,185.37[37] - The company's total equity was reported at CNY -90,306,135.08, slightly worsening from CNY -89,041,797.29 at the beginning of the period[41] - The company reported a significant decrease in inventory, which fell to CNY 21,842,067.27 from CNY 30,521,028.66, a decline of 28.0%[40] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 38,862[10] - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 29.59% of the shares, totaling 87,000,000 shares[10] Production and Operations - The company decided to suspend all production lines starting June 6, 2017, due to market conditions, with the resumption date to be determined based on market trends[20] - The company has resolved all overdue financing amounts totaling 105.25 million yuan as of the report date[20] - The company has reached a debt restructuring agreement with some suppliers and received a debt waiver of 50 million yuan from the Hechi Municipal Finance Bureau[24] Other Financial Metrics - Basic and diluted earnings per share were both reported at CNY -0.0826, an improvement from CNY -0.1988 in the previous period[44] - Basic earnings per share for the current period is -0.0010, compared to -0.3437 in the previous period, showing a notable recovery[51] - The financial expenses for the current period were CNY 6,955,915.43, down 48.3% from CNY 13,474,918.83 in the previous period[43] - The financial expenses for the current period are CNY 18,534,525.28, down from CNY 32,751,711.35, showing a reduction in financing costs[50] - The company reported no derivative investments during the reporting period[27] - The company did not engage in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[30] - The company has not yet initiated targeted poverty alleviation efforts but plans to disclose future initiatives based on actual developments[31] - The company has not reported any new product launches or technological advancements during this period[50]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥159,482,675.96, a decrease of 43.71% compared to 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 improved to -¥63,841,110.62, a 28.35% increase 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 same period last year, primarily due to a reduction in product output in response to market conditions[36]. - The operating cost decreased by 50.67% to CNY 164.09 million, attributed to the same reduction in product output[36]. - The gross margin for the period was -2.89%, indicating a continued issue with cost versus sales price for products[36]. - The company reported a significant increase in non-operating income, which rose by 7,024.64% to CNY 65.82 million due to debt relief[36]. - The company reported a net profit of CNY 23.99 million, mainly due to debt forgiveness and gains from debt restructuring[34]. Assets and Liabilities - Cash and cash equivalents decreased by 8.19% to CNY 71.4 million, primarily due to repayment of due loans[39]. - Accounts receivable dropped by 10.06% to CNY 9.2 million, attributed to the collection of customer receivables[39]. - Inventory decreased by 2.48% to CNY 39.7 million, mainly due to reduced raw material and product stock levels[39]. - Fixed assets decreased by 27.30% to CNY 531.3 million, reflecting a decline in production volume due to market downturns[39]. - Other payables increased significantly by 68.96% to CNY 636.7 million, primarily due to increased borrowings from related parties[39]. - The total liabilities decreased from ¥874,274,475.91 to ¥748,641,883.74, a reduction of about 14.3%[101]. - The company's total assets decreased from ¥785,176,290.54 to ¥684,800,773.12, a decline of approximately 12.8%[100]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The largest shareholder, Ningbo Yinyi Holdings Co., Ltd., holds 87,000,000 shares, accounting for 29.59% of total shares[84]. - The second-largest shareholder, Guangxi Hechi Chemical Industry Group Co., Ltd., holds 37,493,589 shares, representing 12.75% of total shares[84]. - The total number of ordinary shareholders at the end of the reporting period is 43,367[84]. - There were no changes in the controlling shareholder or actual controller during the reporting period[86]. Business Operations - Urea products accounted for over 90% of the company's total operating revenue during the reporting period[25]. - The company operates a complete production, procurement, and sales system, focusing on stable long-term production processes[25]. - The company is transitioning from a production-oriented to a management-oriented business model, focusing on expanding its product offerings[32]. - The company has initiated a joint venture for organic fertilizer production, sharing risks and profits with a partner[33]. - The company decided to suspend all production lines starting June 6, 2017, due to market conditions, with an expected downtime of two months, and later extended the suspension until mid-September 2017[77]. Debt Management - The company has been actively negotiating with creditors to reduce its debt burden, successfully obtaining a CNY 50 million debt waiver[34]. - The company reported a significant amount of related party borrowings, including CNY 70.82 million from Ningbo Yinyi Holdings Co., Ltd., which is the controlling shareholder[66]. - The company aims to turn losses into profits in 2017 by optimizing its product structure and expanding into new markets[50]. Legal and Compliance - The company has ongoing litigation related to transportation contract disputes, with amounts involved being 141.4万元, 129.77万元, 80.73万元, and 117.41万元 respectively[59]. - The company has not undergone any bankruptcy reorganization during the reporting period[58]. - There are no significant litigation or arbitration matters reported during the period[59]. Financial Reporting - The financial report for the first half of 2017 has not been audited[97]. - The company follows the accounting standards set by the Ministry of Finance and adheres to the relevant disclosure regulations[129]. - The financial statements reflect the company's financial position, operating results, and cash flows accurately[129]. Future Outlook - The company is focusing on improving its financial position through potential capital injections and operational adjustments[120]. - The company faces risks related to market competition and safety/environmental regulations, with plans to enhance product offerings and improve safety management[50].

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].