证券代码：002140 证券简称：东华科技 东华工程科技股份有限公司投资者关系活动记录表 编号：2017-002 | --- | --- | --- | |-----------------------|-------------------------|-------------------------------------------------------------------------------------------------------------------------------| | 投资者关系 \n活动类别 | ■ \n□ \n□ \n□ 现场参观 | 特定对象调研 □分析师会议 \n媒体采访 □业绩说明会 \n新闻发布会 □路演活动 \n □ 其他 | | | | 盈沣（上海）投资管理有限公司 姚跃先生； | | | | 华创证券有限责任公司 赵志铭先生 | | 参与单位名称 | | 长江证券股份有限公司 彭仲杄先生 | | 及人员姓名 | | 平安资产管理有限责任公司 张良先生 | | | | 珩生资产管理（上海）有限公司 陈少杰先生 | | | | 国金基金管理有限公司 李 ...

Group 1: Industry Overview - The coal chemical industry is experiencing improved economic conditions due to rising prices of oil, chemical products, and coal, alongside the approval of six major coal chemical projects, indicating a better policy environment [1] - Long-term low oil prices may alter the national energy supply structure, increasing the import ratio [1] Group 2: Wastewater Treatment Capabilities - The company has completed over a thousand wastewater treatment projects in the chemical and petrochemical industries, including high-difficulty zero discharge projects in coal chemical wastewater [2][3] - The company is actively engaging in municipal environmental projects, adjusting its business focus according to national policies and operational needs [3] Group 3: PPP Projects and Financial Management - The company is involved in PPP projects, which align with national policy and provide reasonable gross margins, although they have long operating cycles and investment recovery periods [3] - The company's asset-liability ratio is reasonable, with liabilities primarily consisting of payables and advance receipts, reflecting effective financial control during project implementation [3] Group 4: International Business and Shareholder Actions - In 2016, the company did not announce new foreign orders but is tracking several projects in traditional chemical, new coal chemical, and thermal power sectors, with hopes for contracts in 2017 [3] - Shareholder actions, such as the reduction of stakes by Jun Kang Life Insurance, are considered self-directed and do not significantly impact the company's equity structure [3]

Group 1: Industry Overview - The coal chemical industry remains stable compared to the first quarter, with project information concentrated on coal-to-ethylene glycol products [1] - Ethylene glycol projects are favored due to moderate investment scale, mature production technology, and low approval thresholds, making them attractive to companies with coal resources [1] Group 2: Production and Operational Strategy - The chemical industry is experiencing a recovery, leading to an increase in project information, although high-speed growth expectations are tempered under the new normal [1] - The company is focusing on core chemical operations, particularly coal-to-ethylene glycol, chlorination titanium dioxide, and fine chemicals [1] - The titanium dioxide investment and engineering market is recovering due to rising prices, with multiple chlorination titanium dioxide projects being tracked [1] Group 3: PPP Projects and Market Expansion - The company has successfully bid on several PPP projects, including river management and soil improvement, with a total value exceeding 4 billion CNY [2] - The Anhui river management project is a national demonstration project, attracting significant competition from large enterprises [2] - The company is expanding its overseas market presence, particularly in Southeast Asia and North Africa for coal-to-ethylene glycol projects, despite the challenges of long cycles and increasing competition [2] Group 4: Performance Expectations - Company performance will be influenced by project execution, contract signing, and related provisions, with expectations for the third quarter outlined in the semi-annual report [2]

Financial Performance - The company's operating revenue for Q3 2022 was ¥1,632,652,505.09, an increase of 1.95% compared to the same period last year, while the year-to-date revenue decreased by 4.20% to ¥3,647,170,135.43[5] - Net profit attributable to shareholders for Q3 2022 was ¥55,482,998.91, a decrease of 13.51% year-on-year, while the year-to-date net profit increased by 11.23% to ¥219,764,992.59[5] - The basic earnings per share for Q3 2022 was ¥0.1032, down 13.86% year-on-year, while the diluted earnings per share was ¥0.1024, also down 13.73%[5] - The weighted average return on equity was 2.05%, a decrease of 0.54% compared to the previous year[5] - Total operating revenue for the current period is ¥3,647,170,135.43, a decrease of 4.2% from ¥3,807,024,729.43 in the previous period[35] - Net profit for the current period is ¥231,441,646.82, an increase of 16.3% compared to ¥199,068,372.10 in the previous period[38] - Basic earnings per share for the current period is ¥0.4089, up from ¥0.3691 in the previous period[41] - The total comprehensive income for the current period is ¥229,233,686.08, compared to ¥199,068,372.10 in the previous period[41] Cash Flow and Assets - The net cash flow from operating activities for the year-to-date period was ¥389,893,293.56, reflecting a significant increase of 42.74% compared to the previous year[5] - The company's cash and cash equivalents increased to ¥2,462,377,229.19 from ¥2,250,279,651.74, representing a growth of approximately 9.4% year-over-year[29] - Total current assets increased to ¥7,668,969,250.30 from ¥6,475,546,956.83, reflecting a growth of approximately 18.5%[31] - The company's total assets reached ¥11,379,141,381.15, up from ¥9,921,588,596.43, indicating an increase of around 14.7%[34] - The company's equity attributable to shareholders rose to ¥2,727,130,561.16 from ¥2,577,209,904.40, showing an increase of about 5.8%[34] - Cash flow from operating activities for the current period is ¥389,893,293.56, an increase of 42.9% from ¥273,143,277.63 in the previous period[42] Liabilities and Borrowings - Long-term borrowings increased by 17.69% year-to-date, totaling ¥1,164,020,000.00, primarily for investment in a new project[9] - Total liabilities increased to ¥8,416,027,601.76 from ¥7,121,506,260.54, which is an increase of approximately 18.2%[34] - Cash outflow for debt repayment was $28.57 million, a decrease from $35.20 million in the previous period[44] Shareholder Information - The total number of common shareholders at the end of the reporting period is 38,760, with the top ten shareholders holding 58.14% of the shares[12] - The largest shareholder, Chemical Industry Third Design Institute Co., Ltd., holds 316,962,401 shares, accounting for 58.14% of the total[12] - The company has a total of 10 major shareholders, with no known relationships or concerted actions among them[12] Legal Matters - The company has initiated two civil lawsuits against Inner Mongolia Kangle Chemical Industry Co., Ltd. regarding unpaid project payments totaling 863.35 million RMB for the EPC contract of a 300,000 tons/year coal-to-ethylene glycol project[22] - The first lawsuit resulted in a civil judgment from the Inner Mongolia High Court, which was upheld by the Supreme People's Court, confirming the company's claim[24] - The company has made multiple attempts to auction the assets of Inner Mongolia Kangle, but the auctions have been unsuccessful, leading to a decision to terminate the execution process due to lack of available assets[24] - In the second lawsuit, the company is seeking to terminate the general contracting agreement and related supplementary agreements with Inner Mongolia Kangle, along with the payment of outstanding amounts[25] - The company has reported that the total amount claimed in the second lawsuit, including interest, is 863.35 million RMB[25] - The ongoing litigation reflects the company's strategy to safeguard its financial interests and recover outstanding debts[22] Investment and Financing Activities - The company plans to issue up to 163,557,432 A-shares at a price of 5.54 RMB per share, aiming to raise approximately 906,108,173.28 RMB for various projects[15] - The non-public offering has received approval from the China Securities Regulatory Commission (CSRC) and is currently in progress[20] - The company has extended the validity period of the shareholder meeting resolution regarding the non-public offering by 12 months, now expiring on July 29, 2023[20] - The company is actively pursuing the execution of court judgments to recover outstanding project payments[28] - The company is enhancing communication with local governments and stakeholders to facilitate project restructuring and restart efforts[28] Other Financial Metrics - The company reported a significant increase in interest income to ¥54,308,455.77 from ¥27,868,249.54 in the previous period[38] - Research and development expenses for the current period are ¥76,847,833.49, an increase of 8.8% from ¥70,811,232.76 in the previous period[35] - Sales expenses for the current period are ¥35,463,494.17, slightly up from ¥35,024,196.80 in the previous period[35] - The company has shown a notable increase in cash received from sales of goods and services, totaling ¥3,697,826,387.93, compared to ¥2,718,751,244.60 in the previous period[42] Audit Status - The company’s third-quarter report was not audited[45]

证券代码：002140 证券简称：东华科技 公告编号：2022-077 1 东华工程科技股份有限公司关于参加安徽辖区 上市公司 2022 年投资者网上集体接待日活动的公告 本公司及董事会全体成员保证公告内容真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 为进一步加强与广大投资者的互动交流，东华工程科技股份有限公 司（以下简称"本公司"）将参加由安徽证监局指导、安徽上市公司协 会与深圳市全景网络有限公司联合举办的"2022 年安徽辖区上市公司投 资者集体接待日活动"。现将有关事项公告如下： 本次活动将采用网络远程的方式举行，投资者可登录"全景路演" 网站（http://rs.p5w.net），或关注微信公众号"全景财经"，或下载 全景路演 APP，参与本次互动交流，活动时间为 2022 年 9 月 7 日（周三） 16:00-17:30。 届时，本公司高级管理人员将在线就本公司 2022 年半年度报告中 的发展战略、法人治理、公司业绩、经营状况、投资融资、股权激励和 可持续发展等投资者所关注的问题，与投资者进行沟通与交流。 欢迎广大投资者积极参与！ 特此公告。 东华工程科技股份有限公司董事会 2022 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥2,014,517,630.34, a decrease of 8.66% compared to ¥2,205,546,642.68 in the same period last year[26]. - Net profit attributable to shareholders of the listed company was ¥164,281,993.68, an increase of 23.13% from ¥133,426,285.25 year-on-year[26]. - The net cash flow from operating activities reached ¥696,233,649.79, representing a significant increase of 239.16% compared to ¥205,279,244.82 in the previous year[26]. - Basic earnings per share rose to ¥0.3057, up 22.62% from ¥0.2493 in the same period last year[26]. - Total assets at the end of the reporting period were ¥11,474,933,387.99, reflecting a growth of 15.66% from ¥9,921,588,596.43 at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company increased to ¥2,670,483,589.31, a rise of 3.62% from ¥2,577,209,904.40 at the end of the previous year[26]. - The weighted average return on net assets was 6.07%, an increase of 0.57% compared to 5.50% in the previous year[26]. - The net profit after deducting non-recurring gains and losses was ¥162,745,975.73, an increase of 23.81% from ¥131,445,079.91 year-on-year[26]. - The company's operating costs decreased by 11.50% to ¥1,751,259,683.40 from ¥1,978,868,761.93, attributed to enhanced management and cost reduction efforts[84]. - Research and development investment increased by 46.55% to ¥41,055,597.86 from ¥28,013,820.23, reflecting the company's commitment to innovation[87]. Business Strategy and Operations - The company focuses on "technology integration, engineering contracting, and investment operation" during the 14th Five-Year Plan period, aiming for differentiated, industrialized, and international development[38]. - The company operates in over 30 provinces and regions in China and along the Belt and Road, with engineering services being the main source of revenue[39]. - The company has established a business structure of "engineering + industry," focusing on wastewater treatment and high-end chemical production[38]. - The company has a comprehensive qualification for engineering design and construction, providing consulting, design, and construction services for domestic and international projects[38]. - The company is positioned to benefit from favorable national policies aimed at enhancing environmental governance and infrastructure development[44]. - The company operates in engineering, environmental governance, and infrastructure, with a focus on comprehensive services for domestic and international projects[46]. - The company is actively pursuing international expansion, securing projects in Mexico, Nigeria, and Bangladesh[64]. - The company aims to enhance its operational efficiency through centralized procurement and cost control measures[65]. - The company is focusing on three strategic areas: technology integration, engineering contracting, and investment operations, while promoting innovation-driven development[73]. Project and Contract Management - The company signed engineering contracts totaling 8.428 billion yuan in the first half of 2022, representing a year-on-year increase of 195.30%[60]. - The total signed engineering contracts for general contracting amounted to 8.145 billion yuan, up 205.63% year-on-year[60]. - The company has completed over 2,000 projects across various industries, receiving more than 300 provincial and national awards[59]. - The company has undertaken 44 total contracting projects and initiated 11 new projects during the reporting period[65]. - The company has established a complete investment project management system to ensure effective control over project operations and performance[57]. - The company has 44 ongoing general contracting projects, with significant progress in various sectors including natural gas and biodegradable materials[83]. Environmental and Compliance Efforts - The company is actively engaged in environmental protection and has been classified as a key pollutant discharge unit by environmental authorities[138]. - The company has implemented a series of employee incentive measures, including an employee stock ownership plan[135]. - The company has established five wastewater treatment facilities, with the Hefei Wangxiaoying Wastewater Treatment Company having a design capacity of 300,000 cubic meters per day, achieving national wastewater discharge standards[152]. - The company has implemented upgrades and odor reduction projects at the Wangxiaoying facility, which received multiple awards for its advanced wastewater treatment technology[152]. - The company’s emissions data includes particulate matter at 7.12 tons per year, SO2 at 5.14 tons per year, and NOx at 23.1 tons per year from its hazardous waste facilities[147]. - The company has developed an environmental self-monitoring plan in accordance with national regulations, ensuring online monitoring of pollution sources[158]. - The company has reported a total of 791,539 tons of wastewater treated at Dongzhi Donghua Water Co., Ltd. in the first half of 2022[138]. - The company’s environmental compliance was maintained with no exceedances reported in pollutant discharge limits across its facilities[138]. Legal and Regulatory Matters - The company won a lawsuit against Inner Mongolia Kangle Chemical Industry Co., requiring them to pay construction progress payments of 505.5494 million yuan and interest of approximately 32.4316 million yuan[176]. - The company received a favorable ruling in a second lawsuit against Inner Mongolia Kangle Chemical Industry Co., with the court supporting all claims made by the company[176]. - The company is currently involved in a counterclaim regarding a lawsuit from Tianze Dayou Company, which demands compensation of 152.34 million yuan[176]. - The company has initiated arbitration against Bayannaoer Hengtai New Energy Co., claiming 43.1354 million yuan for contract payments, with a ruling requiring Hengtai to pay a total of 31.82126269 million yuan plus additional costs[179]. - The company is appealing a lawsuit from the Tunisian National Social Security Fund regarding local workers' social security payments[179]. - The company is involved in a lawsuit with Hunan Changzhong Machinery Co., concerning payment for the Kangle project, currently under judicial review[179]. - The company has a pending case with Luo Zhengquan regarding a payment dispute, with no resolution yet[179]. - The company has initiated arbitration for design fees related to the Anqing Greenland project, with the claim amounting to CNY 373.05 million[191]. Investment and Growth Initiatives - The company is advancing its non-public issuance of A-shares, with a fundraising plan of 906 million yuan, aimed at improving its financial strength and competitiveness[75]. - The company has formed 25 equity investments as of June 30, 2022, including 8 controlling stakes[121]. - The company plans to actively seek investment and acquisition opportunities during the 14th Five-Year Plan period, focusing on "realization" strategies[121]. - The company has made significant progress in R&D, with 4 major provincial technology projects and 3 key group technology projects underway[67]. - The company is exploring new products and technologies in high-end chemical production, aiming to expand its industrial chain and create new growth points[53]. Social Responsibility and Community Engagement - The company has actively engaged in social responsibility initiatives, including volunteer activities with 244 participants contributing over 1,700 hours of service during the pandemic[164]. - The company has made donations totaling 25.84 million yuan to support local agricultural enterprises and provided 12 computers worth 37,200 yuan to a primary school[164].

Financial Performance - The company's operating revenue for Q1 2022 was ¥737,548,930.55, a decrease of 10.37% compared to ¥822,892,240.42 in the same period last year[4] - Net profit attributable to shareholders was ¥66,899,044.57, representing an increase of 21.47% from ¥55,075,474.43 year-on-year[4] - Basic earnings per share rose to ¥0.1250, up 21.48% from ¥0.1029 in the same period last year[4] - Total operating revenue for the current period is $737.55 million, down 10.4% from $822.89 million in the previous period[31] - Net profit for the current period is $69.16 million, an increase of 24.8% compared to $55.40 million in the previous period[34] - Total profit for the current period is $80.23 million, an increase of 24.5% from $64.43 million in the previous period[34] Cash Flow - The net cash flow from operating activities reached ¥200,749,981.79, a significant increase of 225.66% compared to ¥61,643,919.35 in the previous year[4] - Cash flow from operating activities generated a net amount of $200.75 million, significantly up from $61.64 million in the previous period[38] - The company's total cash inflow from operating activities was $1.21 billion, up from $1.12 billion in the previous period[38] - Net cash flow from investing activities was -$85,243,657.49, a decrease from $4,041,345.77 in the previous period[41] - Total cash inflow from financing activities was $109,545,200.00, up from $18,204,000.00 year-over-year[41] - Net cash flow from financing activities was $81,680,044.58, compared to -$1,695,850.27 in the previous period[41] - The net increase in cash and cash equivalents was $195,601,872.70, compared to $66,483,285.81 in the prior year[41] - The ending balance of cash and cash equivalents was $2,413,334,741.71, up from $1,833,698,983.39 year-over-year[41] Assets and Liabilities - Total assets at the end of the reporting period were ¥9,957,140,462.82, reflecting a slight increase of 0.36% from ¥9,921,588,596.43 at the end of the previous year[4] - Total current assets amounted to ¥6,531,982,250.41, up from ¥6,475,546,956.83, representing a growth of approximately 0.87%[24] - Total liabilities decreased slightly to ¥7,089,746,451.11 from ¥7,121,506,260.54, a reduction of about 0.45%[27] - The company's retained earnings rose to ¥1,743,553,748.76 from ¥1,676,630,704.19, reflecting an increase of about 4%[27] - Long-term borrowings increased to ¥1,094,740,000.00 from ¥989,020,000.00, a rise of approximately 11%[27] Shareholder Information - The major shareholder, Chemical Industry Third Design Institute Co., Ltd., holds 58.14% of the shares, totaling 316,962,401 shares[13] - The second-largest shareholder, Bank of Communications - China Ocean Quality Growth Securities Investment Fund, holds 0.86% of the shares, totaling 4,689,729 shares[13] - The company has no reported related party relationships among its top shareholders[13] - The top ten shareholders do not have any reported involvement in margin trading activities[13] Legal Matters - The company has initiated two civil lawsuits against Inner Mongolia Kangle Chemical Industry Co., Ltd. for unpaid project funds, with a total claim of 863.35 million RMB[16] - The asset evaluation report for the project involved in the lawsuit valued the assets at 2.828 billion RMB as of October 28, 2019[16] - The first auction of the assets related to the lawsuit was held in September 2020 but ended without a sale[16] - The company has made efforts to expedite asset disposal and project resumption through court applications[16] - The second auction of the assets was also held in October 2020, which similarly ended without a sale[16] - The company is seeking to terminate the general contracting agreement with Inner Mongolia Kangle and recover outstanding payments[17] - The company is actively pursuing the execution of court judgments to recover project debts and is enhancing communication with local governments and stakeholders for project restructuring[20] - The company has been involved in multiple legal proceedings with Inner Mongolia Kanel, with recent judgments being executed to recover owed amounts[20] Expenses - The company reported a 161.00% increase in financial expenses due to higher interest expenses during the reporting period[8] - Research and development expenses rose to $22.56 million, up 70.5% from $13.23 million in the previous period[31] - Tax expenses increased to $11.07 million, compared to $9.03 million in the previous period, marking a rise of 22.6%[34] Inventory and Receivables - The balance of receivables and notes receivable decreased by 50.74% to ¥30,591,610.00 compared to the beginning of the year[8] - Accounts receivable decreased to ¥441,452,673.38 from ¥509,356,727.10, a decline of about 13%[21] - Inventory rose to ¥177,707,105.64 from ¥150,196,338.95, indicating an increase of around 18%[24]

Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders, based on a total of 545,191,440 shares [6]. Business Operations and Strategy - The company emphasizes that future plans and operational goals for 2022 may differ from actual results due to changes in internal and external environments [5]. - The company has not reported any changes in its main business operations since its listing [24]. - The company has not experienced any changes in its controlling shareholders since its establishment [24]. - The company aims to enhance its competitiveness by integrating technology, engineering contracting, and investment operations [39]. - The company is actively pursuing mergers and acquisitions to enhance its environmental operations and diversify its business portfolio [51]. - The company is committed to integrating technology and industry development, focusing on biodegradable materials and renewable energy projects [50]. - The company is focusing on green and sustainable development strategies, aligning with national goals for carbon neutrality and energy transition [194]. Financial Performance - The company's operating revenue for 2021 was ¥6,003,124,559.63, representing a year-over-year increase of 15.22% from ¥5,210,304,765.89 in 2020 [25]. - The net profit attributable to shareholders for 2021 was ¥248,765,130.88, an increase of 25.58% compared to ¥198,093,552.59 in 2020 [25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥229,373,811.30, up 18.28% from ¥193,924,177.88 in 2020 [25]. - The net cash flow from operating activities reached ¥682,998,937.35, marking an 80.88% increase from ¥377,588,253.61 in 2020 [25]. - Basic earnings per share for 2021 were ¥0.4648, a rise of 25.59% from ¥0.3701 in 2020 [25]. - The total assets at the end of 2021 were ¥9,921,588,596.43, reflecting a 21.97% increase from ¥8,134,712,984.23 at the end of 2020 [25]. Market Presence and Expansion - The company operates in over 30 provinces in China and several countries in the Middle East, North Africa, Russia, and Southeast Asia, indicating a broad market presence [39]. - The company aims to expand its market presence by establishing a marketing network covering Southeast Asia, the Middle East, Africa, and Central Asia [50]. - The company has established a marketing network covering global markets, focusing on key countries and regions for overseas operations [106]. Industry Trends and Economic Outlook - The global economy is projected to grow by 5.9% in 2021, positively impacting demand for basic chemical raw materials and products in countries along the "Belt and Road" initiative [40]. - The chemical industry achieved a revenue of 8.7 trillion yuan in 2021, representing a year-on-year growth of 31.1% [43]. - The profit for the chemical industry reached 790 billion yuan, marking an 85.4% increase year-on-year, both figures being historical highs [43]. - The environmental protection industry is projected to reach a revenue scale of approximately 2.2 trillion yuan in 2021, with a compound annual growth rate of around 10% during the "14th Five-Year Plan" period [44]. - The company anticipates a stable economic environment with a projected GDP growth rate of around 5.5% for the upcoming year, which will positively impact its operations [191]. - The government plans to increase fiscal spending by over 2 trillion, which is expected to drive effective investment and benefit the company's projects [193]. Research and Development - The company has established a new research institute focused on environmental protection, enhancing its R&D capabilities in key technology areas [50]. - The company is currently undertaking 44 R&D projects, with 19 newly initiated and 11 completed, focusing on high-end chemicals and new materials [98]. - The company obtained 29 authorized patents during the year, including 15 invention patents and 14 utility model patents, bringing the total to 138 effective patents [97]. - The investment in PBAT catalyst technology is ongoing, aimed at reducing production costs and improving product performance [152]. Project Management and Engineering - The company has undertaken over 2,000 large and medium-sized engineering projects across various industries, receiving more than 300 provincial and ministerial-level awards for technological progress and excellent engineering consulting results [69]. - The company has established a comprehensive service capability, covering consulting design, project management, construction, and general contracting across various regions and countries [61]. - The company has completed significant projects in infrastructure, including the EPC for the second phase of the Yejie District Migrant Workers' Entrepreneurship Park and the headquarters of Anhui Pusheng Hospital [67]. - The company has established a quality control system certified by ISO9001, ISO14001, and ISO45001, ensuring effective management of quality, environment, and occupational health and safety [87]. Environmental and Sustainability Initiatives - The company is focusing on green development, engaging in projects related to carbon dioxide reforming and green hydrogen production [67]. - The company is actively developing green energy projects, including contracts in the photovoltaic and renewable energy sectors [107]. - Significant investments will be made in environmental governance, with a focus on air, water, and soil pollution control, as well as solid waste management during the "14th Five-Year Plan" period [199]. Financial Management and Investments - The company reported a significant focus on financial management, including regular analysis of key financial indicators and the implementation of a monthly funding plan for engineering projects [115]. - The company reported a significant increase in investment activity cash outflows, rising by 1,647.30% to ¥497,176,465.57, primarily due to investments in the PBAT project [160]. - The total investment during the reporting period was ¥512,226,212.52, a significant increase of 1,128.61% compared to ¥41,691,470.75 in the same period last year [169]. Challenges and Risks - The company is currently facing risks related to project settlements and repayments due to changes in project control and potential significant changes in project scale and conditions [1]. - The gross profit margin for ongoing large-scale EPC projects has decreased due to intensified competition and fluctuations in the prices of bulk materials [142].

Financial Performance - The company's operating revenue for Q3 2021 was ¥1,601,478,086.75, representing a 14.20% increase compared to the same period last year[4] - The net profit attributable to shareholders for the same period was ¥64,147,936.14, an increase of 9.02% year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥63,373,428.62, up 8.93% from the previous year[4] - Total operating revenue for Q3 2021 reached ¥3,807,024,729.43, a significant increase of 44.8% compared to ¥2,626,670,533.99 in Q3 2020[35] - Net profit for Q3 2021 was ¥199,068,372.10, representing a 26.7% increase from ¥157,179,561.87 in Q3 2020[35] - The net profit attributable to the parent company was CNY 197,574,221.39, an increase from CNY 155,991,919.58 in the previous period, representing a growth of approximately 26.6%[38] - The total comprehensive income for the period was CNY 199,068,372.10, up from CNY 157,179,561.87, reflecting an increase of approximately 26.7%[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥8,669,991,130.43, reflecting a 6.58% increase from the end of the previous year[4] - Total assets as of September 30, 2021, amounted to ¥8,669,991,130.43, an increase from ¥8,134,712,984.23 at the end of 2020[31] - Current assets totaled ¥6,344,558,010.71, slightly up from ¥6,337,493,507.60 in the previous year[27] - Long-term receivables increased to ¥1,350,352,112.00 from ¥956,350,823.05 year-over-year[27] - Total liabilities rose to ¥6,018,435,468.13, compared to ¥5,730,682,043.15 at the end of 2020[31] - Total liabilities reached approximately $5.73 billion, with current liabilities at $5.16 billion and non-current liabilities at $574.99 million[52] - Shareholders' equity totaled approximately $2.40 billion, with retained earnings of approximately $1.51 billion[52] Cash Flow - The cash flow from operating activities for the year-to-date was ¥273,143,277.63, showing a decrease of 37.92% year-on-year[4] - Cash flow from operating activities was CNY 273,143,277.63, down from CNY 439,982,521.83, indicating a decrease of approximately 37.9%[41] - The company reported a net cash outflow from investing activities of CNY -230,800,298.58, worsening from CNY -5,615,258.22 in the prior period[43] - Cash inflow from financing activities totaled CNY 276,204,000.00, significantly higher than CNY 48,373,750.00 in the previous period[43] - The company received CNY 106,204,000.00 from investments, a notable increase from CNY 38,373,750.00 in the last period[43] Investments and Impairments - The company reported a significant decrease of 65.77% in credit impairment losses and asset impairment losses, amounting to ¥19,614,700[8] - The company has reported a significant impairment loss related to its investment in Anhui Huaihua Co., Ltd., reflecting the deteriorating financial condition of the investee[22] - The company holds a 4.99% stake in Anhui Huaihua Co., Ltd., which has been undergoing bankruptcy liquidation since 2019 due to financial difficulties[22] - The company has received a total of 454.21 thousand RMB from the bankruptcy liquidation of Anhui Huaihua Co., Ltd. as of August 2021[22] Legal Matters - The company is involved in a significant lawsuit against Inner Mongolia Kanel Chemical Industry Co., Ltd. regarding a 300,000 tons/year coal-to-ethylene glycol project, with a court ruling in favor of the company for a payment of 863.35 million RMB[16] - The company has been actively pursuing the enforcement of court rulings related to the lawsuit, including multiple auction attempts for the project assets, all of which have failed to attract buyers[19] - The company continues to monitor the progress of the bankruptcy proceedings to protect its legal rights[22] Research and Development - The company plans to continue investing in R&D, with expenses rising to ¥70,811,232.76 from ¥55,780,380.92 in the previous year[35] Stock and Shareholder Information - The company has a total of 1,300,000 shares of common stock outstanding[15] - The basic earnings per share increased to CNY 0.3691 from CNY 0.2914, reflecting a rise of about 26.7%[38] Miscellaneous - The company has a total of approximately $1.15 billion in contract liabilities[49] - The company has a short-term loan of $10 million and accounts payable of approximately $3.20 billion[52] - The company has not undergone an audit for the third quarter report[55]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥2,205,546,642.68, representing an increase of 80.14% compared to ¥1,224,384,417.00 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was ¥133,426,285.25, up 37.34% from ¥97,152,525.49 in the previous year[25]. - The net cash flow from operating activities reached ¥205,279,244.82, a significant increase of 208.30% compared to -¥189,543,697.80 in the same period last year[25]. - The basic earnings per share increased to ¥0.2493, reflecting a growth of 37.36% from ¥0.1815 in the previous year[25]. - Total assets at the end of the reporting period were ¥8,339,625,926.04, a 2.52% increase from ¥8,134,712,984.23 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company were ¥2,448,133,909.92, up 3.27% from ¥2,370,690,923.38 at the end of the previous year[25]. - The weighted average return on net assets was 5.50%, an increase from 4.29% in the previous year[25]. - Operating costs rose to CNY 1,978,868,761.93, a 100.07% increase compared to the previous year, with the growth rate of costs exceeding that of revenue due to high-margin design and technical income in the prior year[71]. - The company’s gross profit margin decreased to 9.71% in the chemical industry, down by 9.19% year-on-year, reflecting increased costs[78]. Business Operations - The company operates primarily in the civil engineering construction industry, focusing on chemical engineering, environmental governance, and infrastructure projects[34]. - The company’s engineering business includes comprehensive services such as consulting, design, construction, and general contracting, primarily using the EPC model[41]. - The company is expanding its industrial business, focusing on environmental facility operations and high-end chemical production[40]. - The company has invested in 11 environmental operation projects, with 8 projects completed and generating operational revenue[45]. - In the first half of 2021, the company signed engineering contracts totaling 2.854 billion yuan, with 2.665 billion yuan for general contracting and 189 million yuan for consulting and design[51]. - 40.82% of the signed contracts were in the chemical sector, while 59.18% were in non-chemical sectors such as environmental governance and infrastructure[51]. - The company is actively expanding into high-end chemical production, focusing on new materials like PBAT and DMC, with ongoing project construction[45]. - The company has established a comprehensive investment project management system to ensure effective control over project operations[45]. - The company is focusing on expanding its market presence in environmental governance, with significant projects in wastewater treatment and soil remediation[52]. Research and Development - The company has established a new research institute, the China Chemical Donghua Environmental Research Institute, to enhance its R&D capabilities and foster innovation in new technologies[61]. - The company has filed over 10 research projects in high-end chemicals and environmental governance, with several mid-test facilities under construction[64]. - The company has been awarded 20 patents in the first half of the year, including 12 invention patents, reflecting its commitment to innovation and intellectual property protection[65]. - The company’s research and development investment decreased by 31.14% to CNY 28,013,820.23, indicating a shift in focus or resource allocation[71]. Market and Economic Environment - The macroeconomic environment showed a 5.3% average growth in GDP for the first half of 2021, indicating a stable recovery[35]. - The petrochemical industry experienced significant price increases and production growth in the first half of 2021, although it faces pressure for slower growth in the second half[36]. - The environmental governance sector is expected to see substantial market opportunities, driven by national policies aimed at ecological civilization and pollution prevention[37]. Risk Management - The company has disclosed various operational risks, including technical and investment risks, in its report[5]. - The company faces risks related to macroeconomic conditions and industry policies, particularly in the chemical sector under the "dual carbon" context[113]. - The company plans to focus on effective measures to control risks associated with domestic business uncertainties and economic order challenges[113]. - The company is enhancing project management and communication with stakeholders to ensure smooth execution of engineering projects and mitigate risks related to funding and policy changes[119]. - The company emphasizes the importance of a complete investment management system to control risks associated with rapid investment expansion and ensure thorough evaluations of investment projects[120]. Legal Matters - The company is the plaintiff in a lawsuit against Inner Mongolia Kangle Chemical Industry Co., claiming a project progress payment of 505.55 million yuan, which has been upheld by the Supreme People's Court[157]. - The company has initiated arbitration against Bayannaoer Hengtai New Energy Co. for a contract payment of 43.14 million yuan, with the case currently unresolved[160]. - The company is pursuing a claim against Anhui Huaihua Group for 45 million yuan related to a share repurchase agreement, with a recent ruling confirming the company's claim[160]. - The company is involved in a lawsuit with the Tunisian National Social Security Fund regarding local worker social security payments, with no judgment yet[160]. - The company has multiple ongoing litigation and arbitration cases, indicating a significant amount of financial exposure across various projects and contracts[169]. Environmental Responsibility - The company has actively fulfilled its social responsibilities, donating a total of 48,000 yuan to a rural school in Gansu Province for teaching computers and books[147]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[144]. - The company has developed emergency response plans for environmental incidents in accordance with national regulations[141]. - The company’s overall pollution control facilities have been operating normally, effectively reducing pollutant emissions and protecting the ecological environment[136]. - The company has established a "three-in-one" system (QHSE) to ensure quality, health, safety, and environmental protection, undertaking over 1,000 environmental engineering projects[145]. Investment and Financing - The company plans to issue up to 164 million A-shares at a price of 5.69 CNY per share, aiming to raise a total of 931 million CNY for projects including the East Wastewater Phase II project and the Wuhu "JADE" EPC project[56]. - The total investment amount for the reporting period was ¥72,363,291.40, a 140.54% increase from ¥30,083,464.51 in the same period last year[89]. - The company made a significant equity investment of ¥102,000,000.00 in a new subsidiary, holding a 51% stake[89]. - The company has received approval for its non-public issuance of A-shares, with strategic investors including the state-owned Shaanxi Coal and Chemical Group, which will strengthen its market position[57]. Related Party Transactions - The company engaged in related party transactions totaling 26.96 million yuan, accounting for 1.47% of similar transaction amounts[177]. - The total amount of related party transactions with China Chemical Engineering Group was 422.36 million CNY[183]. - The company provided a short-term loan of 10 million CNY to its subsidiary for working capital purposes[183]. - The company confirmed a right-of-use asset and recognized financing costs in accordance with new leasing standards[183].