江苏宏达新材料股份有限公司 2015 年第一季度报告正文 证券代码：002211 证券简称：宏达新材 公告编号：2015-050 江苏宏达新材料股份有限公司 2015 年第一季度报告正文 1 江苏宏达新材料股份有限公司 2015 年第一季度报告正文 第一节 重要提示 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 151,811,108.69 | 172,930,187.32 | -12.21% | | 归属于上市公司股东的净利润（元） | 1,272,538.08 | 2,465,633.71 | -48.39% | | 归属于上市公司股东的扣除非经常性损 益的净利润（元） | -7,711,124.67 | -8,285,162.08 | 6.93% | | 经营活动产生的现金流量净额（元） | 37,728,981.41 | 11,586,961.67 | 225.62% | | 基本每股收益（元/股） | 0.0029 | 0.0057 | -49.12% | | 稀释每股收益（元/股） | 0.0029 | ...

Financial Performance - The company's operating revenue for 2014 was approximately ¥773.79 million, a decrease of 3.64% compared to ¥802.99 million in 2013[24]. - The net profit attributable to shareholders was ¥12.44 million, a significant increase of 101.43% from a loss of ¥876.31 million in the previous year[24]. - The net cash flow from operating activities improved to ¥83.30 million, representing a 188.51% increase from a negative cash flow of ¥94.12 million in 2013[24]. - Basic earnings per share rose to ¥0.03, compared to a loss of ¥2.03 per share in 2013, marking a 101.48% improvement[24]. - The company reported a net profit excluding non-recurring gains and losses of -¥30.26 million, an improvement of 90.29% from -¥321.67 million in 2013[24]. - The company reported a profit of 12,440,591.09 yuan for the year 2014, a significant recovery from a loss of 876,306,055.56 yuan in 2013[81]. - The total operating revenue for the current period was CNY 773,785,968.58, a decrease from CNY 802,998,140.98 in the previous period, representing a decline of approximately 3%[195]. - The net profit for the year was CNY 14.05 million, a significant recovery from a net loss of CNY 880.63 million in the previous year[197]. - The company reported a total profit of CNY 15.18 million, contrasting with a total loss of CNY 870.18 million in the prior year[196]. - The company achieved an investment income of CNY 381.65 thousand, compared to a loss of CNY 4.54 million in the previous year[199]. Asset Management - Total assets decreased by 27.19% to ¥1.26 billion from ¥1.74 billion at the end of 2013[24]. - The company's net assets attributable to shareholders increased by 1.44% to ¥825.24 million from ¥813.51 million in 2013[24]. - The company's cash and cash equivalents decreased from CNY 223.33 million at the beginning of the year to CNY 33.84 million at the end of the year[186]. - The company's inventory decreased to CNY 139,890,816.90, which is 11.06% of total assets, reflecting a strategy to reduce inventory capital occupation[55]. - The company's fixed assets decreased significantly to CNY 241,011,300.60, down 14.92% from the previous year, due to the confirmation of silicone asset sales[55]. - The total liabilities decreased from CNY 897,891,437.11 to CNY 412,135,553.92, reflecting a decline of about 54%[188]. Cost Management - The company reported a decrease in operating costs by 18.88% to CNY 677.33 million, attributed to the high costs of handling silicone by-products in the previous year[35]. - Total operating costs amounted to CNY 801.47 million, down from CNY 1.61 billion, indicating a reduction of approximately 50%[196]. - The company’s financial expenses decreased by 43.07% to CNY 19.03 million due to reduced interest expenses after repaying bank loans[36]. Strategic Initiatives - The company is undergoing a major asset restructuring, with results expected to be disclosed by June 9, 2015, which may significantly alter its business structure[14]. - The company is actively seeking suitable partners for mergers and acquisitions to achieve new business growth, with a major asset restructuring project currently underway[32]. - The company plans to transfer 30% of its stake in City Light as part of its strategy to introduce new light-asset businesses[73]. - The company is focusing on research and development of new products in the silicone rubber sector to enhance its market position[73]. Market Position and Competitiveness - The company has established a strong presence in the high-temperature silicone rubber market, with over 230 varieties of products available, catering to diverse customer needs[59]. - The company is recognized as a national high-tech enterprise and has multiple patented technologies, enhancing its competitive edge in the industry[59]. - The company has a stable overseas customer base, indicating successful market expansion beyond domestic sales[59]. - The proportion of high-performance and specialty silicone rubber sales is currently low, highlighting a need for improved technical services to boost this segment[59]. Corporate Governance - The company has maintained a commitment to employee welfare, adhering to labor laws and ensuring social insurance for all employees[82]. - The company has established long-term cooperative relationships with suppliers and customers, emphasizing integrity and mutual benefit[82]. - The company has set up an independent financial accounting department and established a standardized accounting system, ensuring no interference from the controlling shareholder in fund usage[166]. - The company has not identified any significant internal control deficiencies during the reporting period[174]. Shareholder Information - The number of shareholders holding more than 5% of shares includes Jiangsu Weilen Investment Management Co., Ltd. with 38.21% (165,259,343 shares) and Qiu Meifang with 2.99% (12,947,895 shares)[122]. - The company had a total of 18,917 common shareholders at the end of the reporting period[122]. - Jiangsu Weilen Investment Management Co., Ltd. conducted a repurchase agreement for 20 million unrestricted shares, accounting for 4.62% of the total share capital[125]. Legal and Compliance - The company successfully defended against a lawsuit involving a claim of 30 million yuan in damages, with the court ruling in favor of the company[85]. - The company has not been involved in any major environmental violations and is not classified as a heavily polluting industry[82]. - There were no significant accounting errors that required retrospective restatement during the reporting period[77].

江苏宏达新材料股份有限公司 2014 年第三季度报告正文 证券代码：002211 证券简称：宏达新材 公告编号：2014-073 江苏宏达新材料股份有限公司 2014 年第三季度报告正文 2014 年 10 月 1 江苏宏达新材料股份有限公司 2014 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人朱德洪、主管会计工作负责人邓台平及会计机构负责人(会计主管人员)邓台 平声明：保证季度报告中财务报表的真实、准确、完整。 2 江苏宏达新材料股份有限公司 2014 年第三季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度 | | --- | --- | --- | --- | --- | | | | | | 末增减 | | 总资产（元） | 1,295 ...

Financial Performance - The company reported a revenue of CNY 363.63 million for the first half of 2014, a decrease of 4.63% compared to CNY 381.27 million in the same period last year[18]. - The net profit attributable to shareholders was CNY 3.24 million, a significant increase of 101.90% from a loss of CNY 170.64 million in the previous year[18]. - The net cash flow from operating activities was CNY 78.17 million, representing a 17.19% increase from CNY 66.71 million in the same period last year[18]. - Basic earnings per share improved to CNY 0.01 from a loss of CNY 0.39 per share in the previous year, marking a 102.56% increase[18]. - The company reported a net loss of CNY 682,505,976.71 in retained earnings, slightly improved from a loss of CNY 685,742,381.37 at the beginning of the period[109]. - The net profit for the current period was a loss of 170.63555 million yuan, reflecting a significant decline from the previous year's profit[131]. - The company expects a net profit of between 5 million to 10 million yuan for the first nine months of 2014, a turnaround from a net loss of 650.34 million yuan in the same period last year[50]. Asset Management - Total assets decreased by 33.57% to CNY 1.15 billion compared to CNY 1.74 billion at the end of the previous year[18]. - The total assets of Dongguan New Oriental Technology Co., Ltd. are ¥365,622,888.66, with a net asset value of ¥124,448,485.07 and an operating income of ¥169,199,352.98[46]. - Jiangsu Lihong Silicon Materials Co., Ltd. reported total assets of ¥268,207,303.54 and a net loss of ¥15,707,680.80 during the reporting period[46]. - The total owner's equity at the end of the reporting period was 782.934 million yuan, down from 1,721.2 million yuan in the previous year[133]. - The company's total assets at the end of the reporting period amounted to 4,524.03 million yuan, with a total liability of 3,802.1 million yuan[132]. Investment Activities - The company completed the transfer of its siloxane assets, receiving CNY 46.77 million in transfer payments by August 20, 2014[25]. - The company has entered the landscaping industry by acquiring a 30% stake in Beijing Urban Light Landscaping Engineering Co., Ltd. for CNY 322.98 million[25]. - The company invested a total of ¥88,870,000 in external equity during the reporting period, a significant increase of 797.68% compared to ¥9,900,000 in the same period last year[37]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[131]. - The company plans to continue evaluating potential mergers and acquisitions to drive growth[64]. Operational Efficiency - The company plans to focus on new product development and market expansion strategies in the upcoming quarters[116]. - The company has initiated a strategy to improve operational efficiency and reduce costs in response to the current financial challenges[132]. - The company reported a significant reduction in management expenses to CNY 35.27 million from CNY 88.01 million in the previous period[116]. - The company is committed to enhancing its product offerings and technological advancements in the new materials sector[63]. Legal Matters - The company is involved in a lawsuit where the plaintiff is requesting repayment of RMB 397,541.72 and compensation interest of RMB 16,000, along with a penalty of RMB 3,000,000[58]. - The company has a pending lawsuit with Jiangsu Honghua New Materials Co., Ltd. regarding a debt of RMB 3,042.82 million, with a court hearing already held[59]. - The company is also facing a claim for RMB 27,428.2 million in debt and a penalty of RMB 3,000,000 from Xu Zhou Meijing Real Estate Development Co., Ltd.[60]. - The company has reported a profit reduction of approximately RMB 35,000 due to ongoing litigation[58]. Market Position - The company maintains a leading market position in the silicone rubber industry, with significant influence and competitive advantages in the Yangtze River Delta and Pearl River Delta regions[36]. - Domestic sales accounted for $316.69 million, reflecting an increase of 11.52% year-on-year, while direct exports rose by 14.69% to $39.96 million[35]. - The company is actively expanding its market presence through strategic investments in subsidiaries and partnerships in the silicone and polymer materials sector[37]. Financial Reporting - The company’s financial reports comply with the accounting standards set by the Ministry of Finance, ensuring transparency and accuracy in financial reporting[143]. - The company has not reported any non-standard audit reports for the current period[51]. - The company has not undergone an audit for the semi-annual financial report[105]. Shareholder Information - The total number of shares before the recent change was 432,475,779, with a post-change total of 432,475,779 shares, indicating no net change in total shares[90]. - Jiangsu Weilen Investment Management Co., Ltd. holds 42.84% of the shares, with a decrease of 20,000 shares during the reporting period[94]. - The top ten shareholders collectively hold significant portions, with Jiangsu Weilen Investment Management Co., Ltd. having 31,314,836 unrestricted shares[95]. - Jiangsu Weilen Investment Management Co., Ltd. conducted a repurchase of 20 million shares, representing 4.62% of the total share capital, through block trading[96]. Cash Flow Management - The net cash flow from operating activities was 49,075,350.56 RMB, a decrease of 17.8% compared to the previous period's 59,778,969.19 RMB[124]. - Total cash inflow from investment activities reached 353,234,315.71 RMB, significantly higher than the previous period's 84,940,000.00 RMB[125]. - The net cash flow from investment activities was 258,374,685.77 RMB, compared to a negative cash flow of -84,725,488.46 RMB in the previous period[125]. - The ending balance of cash and cash equivalents was 25,737,335.40 RMB, a decline from 56,575,114.89 RMB in the previous period[125].

Financial Performance - In 2013, the company's operating revenue was approximately ¥802.99 million, a decrease of 3.2% compared to ¥829.57 million in 2012[22]. - The net profit attributable to shareholders was a loss of ¥876.31 million, representing a significant decline of 23,885.05% from a profit of ¥3.68 million in 2012[22]. - The company's total assets decreased by 35.06% to ¥1.74 billion at the end of 2013, down from ¥2.68 billion at the end of 2012[22]. - The net asset attributable to shareholders fell by 51.86% to ¥813.51 million, compared to ¥1.69 billion in 2012[22]. - The company reported a negative cash flow from operating activities of ¥94.12 million, a decline of 139.68% from ¥237.16 million in 2012[22]. - The basic and diluted earnings per share were both negative at ¥-2.03, a decrease of 20,400% from ¥0.01 in 2012[22]. - The company reported a significant non-operating loss of approximately ¥554.63 million due to asset impairment[23]. - The company achieved operating revenue of 803 million yuan in 2013, a decrease of 3.20% from 830 million yuan in 2012, primarily due to a slight decline in revenue from the downstream silicone rubber business and reduced by-product income from the subsidiary Jiangsu Lihong[26]. - The net profit attributable to shareholders was -876.31 million yuan, reflecting significant losses from the transfer of silicone assets in a severely oversupplied industry[26]. - Management expenses increased by 80.66% to 194.05 million yuan in 2013, primarily due to depreciation costs and maintenance expenses related to the shutdown of Jiangsu Lihong after a fire[35]. Cash Flow and Investments - The company reported a significant reduction in short-term borrowings from 622.98 million yuan in 2012 to 439.20 million yuan in 2013, representing an increase in the proportion of total assets from 23.29% to 25.28%[48]. - The company’s cash and cash equivalents increased by 1.81% to 67.41 million yuan at the end of 2013[38]. - Investment activity cash inflow surged by 210.28% to 485.39 million yuan, while cash outflow decreased by 57.04% to 185.51 million yuan[38]. - The cash inflow from investment activities increased due to the sale of fixed assets and the maturity of time deposits, along with the transfer of equity in subsidiaries Jiangsu Honghua New Materials Co., Ltd. and Dongguan Xuye Optoelectronics Technology Co., Ltd.[39]. - The company has invested a total of ¥15,469,418.03 in external investments during the reporting period, a decrease of 61.92% compared to ¥26,000,000.00 in the same period last year[52]. Strategic Focus and Future Plans - The company plans to actively pursue mergers and acquisitions in the medical and environmental protection industries in 2014 to implement strategic transformation and form new core competencies[50]. - The company aims to leverage mergers and acquisitions to quickly establish scalable profitable businesses in the landscaping sector, despite increasing competition and challenges from real estate regulation[51]. - The company is concentrating on the medical device industry, which is experiencing high growth due to the aging global population, and plans to form high-growth core competencies through acquisitions[51]. - The company has decided to sell its silicone-related assets, including the 70,000 tons/year silicone material expansion project, due to rapid capacity expansion in the silicone industry and low product prices[57]. - The company plans to use the proceeds from the asset transfer and unused raised funds to permanently supplement working capital for daily operations and bank loan repayments[60]. Operational Challenges - The company is facing increasing competition and overcapacity in the silicone industry, with total production and construction capacity far exceeding the planned targets[71]. - The average capacity utilization rate for silicone monomers was only 35.8% in 2013, indicating severe overcapacity in the market[71]. - Jiangsu Lihong's loss of 793 million yuan was attributed to high costs from product disposal and asset transfer[68]. - The company reported a net loss of approximately 876.3 million yuan in 2013, with no cash dividends distributed during the year[80]. Corporate Governance and Compliance - The company has committed to improving its information disclosure practices following a government reprimand for failing to timely disclose government subsidies received[122]. - The company maintains independent operations in business, personnel, assets, and finance, ensuring no competition with the controlling shareholder[175]. - The company has established a complete organizational structure with independent operational capabilities[176]. - The company has implemented a performance evaluation and incentive mechanism for senior management, linking performance to compensation[178]. Social Responsibility and Environmental Initiatives - The company emphasizes a "zero emissions" circular economy model, aiming to reduce waste generation and enhance recycling efforts[86]. - The company has invested significantly in environmental protection, allocating substantial human, material, technical, and financial resources over the years[86]. - The company actively participates in social charity initiatives and community support, fulfilling its corporate social responsibility[87]. Shareholder Structure and Engagement - The total number of shareholders at the end of the reporting period was 29,985, with a notable increase in shareholder engagement[133]. - The controlling shareholder, Jiangsu Weilen Investment Management Co., Ltd., saw its shareholding percentage decrease from 56.57% to 47.46%[130]. - The company did not engage in any repurchase transactions during the reporting period, indicating a stable shareholder structure[135]. Employee and Management Information - The total number of employees as of December 31, 2013, was 756, with 67% being production personnel[160]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 1,049,000 yuan[155]. - The company has a talent strategy focused on employee development, ensuring a harmonious labor relationship and employee satisfaction[86].

Financial Performance - In 2013, the company's operating revenue was approximately CNY 802.99 million, a decrease of 3.2% compared to CNY 829.57 million in 2012[21] - The net profit attributable to shareholders was a loss of CNY 876.31 million, a significant decline of 23,885.05% from a profit of CNY 3.68 million in 2012[21] - The company's total assets at the end of 2013 were CNY 1.74 billion, down 35.06% from CNY 2.68 billion at the end of 2012[21] - The net assets attributable to shareholders decreased by 51.86% to CNY 813.51 million from CNY 1.69 billion in 2012[21] - The company reported a negative cash flow from operating activities of CNY 94.12 million, a decline of 139.68% compared to CNY 237.16 million in 2012[21] - The basic earnings per share were CNY -2.03, a decrease of 20,400% from CNY 0.01 in 2012[21] - The company achieved operating revenue of 803 million yuan in 2013, a decrease of 3.20% compared to 830 million yuan in 2012, primarily due to a slight decline in revenue from the downstream silicone rubber business and reduced by-product income from the subsidiary Jiangsu Lihong[28] - The net profit attributable to shareholders was -876.31 million yuan, reflecting significant losses from the transfer of silicone assets in a severely overcapacity and loss-making state[28] Cash Flow and Investments - The company reported a negative cash flow from operating activities of CNY 94.12 million, a decline of 139.68% compared to a net inflow of 237.16 million yuan in 2012[42] - Cash flow from investment activities increased significantly, with a net inflow of 299.89 million yuan, compared to a net outflow of -275.38 million yuan in the previous year, marking a 208.9% change[42] - The total cash inflow from investment activities increased due to cash recovered from the sale of fixed assets and the maturity of time deposits, as well as the transfer of equity in subsidiaries Jiangsu Honghua New Materials Co., Ltd. and Dongguan Xuye Optoelectronics Technology Co., Ltd.[43] - The cash inflow from financing activities decreased due to a reduction in bank loans, leading to a decrease in cash flow from financing activities[43] Strategic Focus and Business Adjustments - The company aims to create favorable conditions for its main business and strategic adjustments moving forward[12] - The company’s strategic focus in 2013 included asset disposal and reduction of non-core investments to improve operational efficiency[28] - The company plans to focus on the rapidly growing landscaping industry, which has high added value and is characterized by fine design as a core competitive advantage[55] - The medical device industry is identified as a high-growth sector, with the company aiming to achieve scale and high added value through acquisitions and flexible cooperation[55] - The company is actively pursuing mergers and acquisitions in the medical and environmental sectors to enhance its core competitiveness[55] - The company plans to focus on silicone rubber business and accelerate new product development to ensure profitability in 2014[73] - The company aims to enhance efficiency and innovation in its operations to navigate the challenging market conditions in 2014[73] Asset Management and Divestitures - The company has decided to sell its silicone-related assets, including the 70,000 tons/year silicone material expansion project, due to overcapacity and low product prices[60] - The company plans to sell its silicone-related assets, including the 70,000 tons/year silicone material expansion project, due to overcapacity and low product prices, with a transfer price of CNY 565 million[62] - The company has faced significant changes in the feasibility of its projects, leading to the decision to divest certain assets[62] - Jiangsu Hongda has divested from non-core areas, resulting in a profit of 47,647.61 yuan from the transfer of subsidiary shares[70] Financial Management and Governance - The company has implemented long-term corrective measures to enhance compliance with information disclosure regulations[129] - The company’s board has implemented performance evaluation standards and incentive mechanisms for senior management, linking performance directly to compensation[192] - The company maintains complete independence from its controlling shareholder in business operations, personnel, assets, and financial matters[189] - The company has established a comprehensive internal control system for financial reporting based on regulations from five ministries, including the Ministry of Finance[199] - No significant internal control deficiencies were found during the reporting period[200] Social Responsibility and Compliance - The company adheres to the principle of "safety first, environmentally friendly, resource-saving" while fulfilling its social responsibilities[90] - The company has invested significant human, material, technical, and financial resources in environmental protection efforts, aiming for a "zero emissions" circular economy model[91] - The company actively participates in social charity and community support, reflecting its commitment to corporate social responsibility[91] - There were no significant social safety issues or administrative penalties reported during the reporting period[92] Employee and Management Information - The total number of employees as of December 31, 2013, was 756, with 67% being production personnel[173] - The educational background of employees shows that 64% have a high school education or below, while only 1% hold a graduate degree or higher[175] - The total remuneration for independent directors was 6万元 per year, covering their meeting-related expenses[165] - Chairman and General Manager Zhu Dehong voluntarily waived his year-end performance salary of 180,000元 due to significant losses in 2013, receiving an actual remuneration of 120,000元[165] Legal and Regulatory Matters - There are ongoing legal proceedings involving a claim for 39.75万元 and a penalty of 30万元 against the company, with the case still pending[97] - The company has committed to improving information disclosure practices following a government reprimand for failing to timely disclose government subsidies received[129] Shareholder Information - The total number of shares outstanding remained at 432.475 million, with no significant changes in the shareholding structure reported[137] - The company did not engage in any repurchase transactions during the reporting period, indicating a stable shareholder structure[145] - The non-public offering raised a total of RMB 69,985.08 million, which was utilized for business expansion and operational improvements[139]

Financial Performance - The company's operating revenue for Q1 2014 was ¥172,930,187.32, a decrease of 4.22% compared to ¥180,546,112.25 in the same period last year[8] - The net profit attributable to shareholders was ¥2,465,633.71, representing a significant increase of 110.47% from a loss of ¥23,553,767.95 in the previous year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥8,285,162.08, an improvement of 65.42% from -¥23,957,896.88 year-on-year[8] - Basic and diluted earnings per share were both ¥0.01, a turnaround from -¥0.05 in the same period last year, marking a 120% improvement[8] - The weighted average return on equity was 0.29%, an increase of 1.69% compared to -1.4% in the previous year[8] Cash Flow and Assets - The net cash flow from operating activities was ¥11,586,961.67, down 12.2% from ¥13,197,266.91 in the previous year[8] - Total assets at the end of the reporting period were ¥1,380,708,029.69, a decrease of 20.53% from ¥1,737,322,964.40 at the end of the previous year[8] - The net assets attributable to shareholders were ¥815,976,616.82, a slight increase of 0.3% from ¥813,510,983.11 at the end of the previous year[8] - As of March 31, 2014, cash and cash equivalents decreased by 79.69% to CNY 4,536 million from CNY 22,333 million due to repayment of bank loans[18] - The company’s intangible assets decreased by 48.55% to CNY 4,438 million from CNY 8,627 million due to the completion of land transfers[18] Expenses and Liabilities - The company reported a 46.42% reduction in selling expenses, totaling CNY 486 million compared to CNY 907 million in the same quarter of 2013[18] - The company reported a 51.92% decrease in management expenses, amounting to CNY 1,691 million compared to CNY 3,517 million in Q1 2013[18] - Short-term borrowings decreased by 62.34% to CNY 16,539 million from CNY 43,920 million, reflecting loan repayments[18] - The company’s cash flow from financing activities decreased by 40.14% to CNY 5,596.63 million, reflecting reduced bank loans[18] Legal and Corporate Actions - The company is currently involved in a lawsuit regarding a claim for CNY 30 million in damages related to a breach of contract[20] - The total repurchase price for the equity buyback agreement is 35.9661 million yuan (after tax) as of April 11, 2014, with the first payment received[23] - The company has transferred 20% equity of Dongguan Fangzhen Plastic Electronic Products Co., Ltd. to its actual controller, with an initial payment of 3 million yuan received, and the remaining amount to be paid in installments by December 2014[23] Future Outlook - The company expects to turn a profit in the first half of 2014, with a projected net profit of 1 million yuan compared to a loss of 170.6356 million yuan in the same period of 2013[26] - The improvement in profitability is attributed to a significant reduction in interest expenses after recovering silicone asset transfer payments, effective cost control in the silicone rubber main business, and recognition of government subsidies related to silicone assets[26]