[Important Notice](index=2&type=section&id=第一节%20重要提示) [Board of Directors' Statement](index=2&type=section&id=第一节%20重要提示) The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's management guarantees the quarterly report is true, accurate, and complete, with no false records, misleading statements, or major omissions[2](index=2&type=chunk) - The company's legal representative, chief accountant, and head of the accounting department all affirm the truthfulness, accuracy, and completeness of the financial statements[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=第二节%20公司基本情况) [Key Accounting Data and Financial Indicators](index=3&type=section&id=一、主要会计数据和财务指标) As of Q3 2019, total assets grew by 9.42% year-to-date, but profitability declined significantly, while net cash flow from operations increased substantially Key Financial Data | Indicator | End of Reporting Period / YTD | End of Prior Year / Prior Year Period | Change | | :--- | :--- | :--- | :--- | | **Balance Sheet Items** | | | | | Total Assets (CNY) | 4,008,691,164.15 | 3,663,516,990.54 | 9.42% | | Net Assets Attributable to Shareholders (CNY) | 2,242,331,485.92 | 2,161,759,990.87 | 3.73% | | **Income Statement Items** | | | | | Operating Revenue (CNY) | 1,710,662,614.29 | 1,852,212,572.32 | -7.64% | | Net Profit Attributable to Shareholders (CNY) | 80,571,743.52 | 125,066,518.00 | -35.58% | | **Cash Flow Statement Items** | | | | | Net Cash Flow from Operating Activities (CNY) | 168,652,202.14 | -197,214,086.85 | 185.52% | | **Per-Share Indicators** | | | | | Basic Earnings Per Share (CNY/Share) | 0.1505 | 0.2336 | -35.57% | - Non-recurring gains and losses for the year-to-date period totaled **CNY 4,025,953.52**, primarily from government subsidies of CNY 10,584,566.44[4](index=4&type=chunk) [Shareholder Information](index=4&type=section&id=二、报告期末股东总数及前十名股东持股情况表) As of the reporting period end, the company had 37,508 common shareholders, with Shenzhen Shentun Group Co, Ltd being the largest shareholder - At the end of the reporting period, the total number of common shareholders was **37,508**[6](index=6&type=chunk) Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | :--- | | Shenzhen Shentun Group Co., Ltd. | Domestic Non-State-Owned Legal Entity | 15.94% | 85,349,357 | Pledged 44,630,000 | | Li Xiaoqi | Domestic Natural Person | 8.29% | 44,391,873 | - | | Li Jianhua | Domestic Natural Person | 7.62% | 40,768,400 | Pledged 19,000,000 | - Shareholders Li Jianhua and Li Xiaoqi are father and daughter, constituting parties acting in concert; Yao Xiongjie is the actual controller of Shentun Group and acts in concert with Guotong Trust, Chengdu Rongpu, and Shentun Group[7](index=7&type=chunk) [Significant Matters](index=6&type=section&id=第三节%20重要事项) [Analysis of Significant Changes in Financial Data](index=6&type=section&id=一、报告期主要财务数据、财务指标发生变动的情况及原因) The company's financial indicators showed significant changes, with a sharp increase in construction in progress and a notable decline in net profit Significant Changes in Balance Sheet Items | Balance Sheet Item | Period-End Balance (CNY) | Beginning Balance (CNY) | Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 247,710,219.13 | 149,518,706.90 | 65.67% | Growth in lithium salt sales and customer structure adjustment in wood-based panel business | | Construction in Progress | 297,812,750.85 | 66,513,635.39 | 347.75% | Continued construction of lithium salt project | | Long-term Borrowings | 232,257,280.01 | 134,049,205.19 | 73.26% | Increase in long-term borrowings by a subsidiary | | Deferred Tax Liabilities | 6,078,529.69 | 380,338.83 | 1,498.19% | Recognition of deferred tax liabilities by subsidiary Zhiyuan Lithium | Significant Changes in Income Statement Items | Income Statement Item | Jan-Sep 2019 (CNY) | Jan-Sep 2018 (CNY) | Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,710,662,614.29 | 1,852,212,572.32 | -7.64% | Growth in lithium salt business offset by decline in rare earth and wood-based panel revenue | | Finance Costs | 45,374,635.76 | 28,401,755.86 | 59.76% | Significant increase in borrowings compared to the same period last year | | Net Profit Attributable to Shareholders | 80,571,743.52 | 125,066,518.00 | -35.58% | Profit growth in lithium salt business offset by decline in wood-based panel business and increased finance costs | - Net cash flow from operating activities **increased by 185.52%** year-on-year, primarily due to a substantial increase in lithium salt business sales[12](index=12&type=chunk) [Progress on Significant Matters](index=7&type=section&id=二、重要事项进展情况及其影响和解决方案的分析说明) The company is advancing a major asset restructuring involving the acquisition of Sichuan Shentun Lithium Co, Ltd, which has received conditional approval - The company plans to issue shares to acquire 100% equity in Sichuan Shentun Lithium Co., Ltd. and raise supporting funds of no more than **CNY 660 million**[13](index=13&type=chunk) - The asset restructuring received **conditional approval** from the CSRC's M&A and Restructuring Committee on October 9, 2019, and the company's stock has resumed trading[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - As of the report disclosure date, the company has not yet received the formal approval document from the CSRC[14](index=14&type=chunk) [Other Significant Matters](index=8&type=section&id=三、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内超期未履行完毕的承诺事项) The company reports no overdue commitments, illegal guarantees, or non-operating fund occupation by the controlling shareholder during the period - During the reporting period, there were no overdue unfulfilled commitments from the actual controller, shareholders, or other related parties[15](index=15&type=chunk) - The company has no illegal external guarantees or non-operating fund occupation by the controlling shareholder[18](index=18&type=chunk) - The company invested **CNY 81.55 million** of its own funds in bank wealth management products, with a zero outstanding balance at the period end[19](index=19&type=chunk) - No investor relations activities such as site visits, communications, or interviews were conducted during the reporting period[20](index=20&type=chunk) [Financial Statements](index=10&type=section&id=第四节%20财务报表) [Financial Statements (Unaudited)](index=10&type=section&id=一、财务报表) This section presents the company's detailed unaudited consolidated and parent company financial statements for the third quarter of 2019 - Provides the consolidated and parent company balance sheets as of September 30, 2019[21](index=21&type=chunk)[26](index=26&type=chunk) - Provides the consolidated and parent company income statements for the third quarter of 2019 (current reporting period)[30](index=30&type=chunk)[33](index=33&type=chunk) - Provides the consolidated and parent company income statements from the beginning of 2019 to the end of the reporting period[34](index=34&type=chunk)[38](index=38&type=chunk) - Provides the consolidated and parent company cash flow statements from the beginning of 2019 to the end of the reporting period[40](index=40&type=chunk)[43](index=43&type=chunk) [Notes on Financial Statement Adjustments](index=26&type=section&id=二、财务报表调整情况说明) The company adopted new financial instrument standards from January 1, 2019, reclassifying assets without impacting beginning retained earnings - The company adopted the revised Accounting Standards for Business Enterprises No 22, 23, 24, and 37 (related to financial instruments) from January 1, 2019[51](index=51&type=chunk) First-time Adoption Adjustments to Financial Statements | Adjustment Item | Pre-adjustment (2018-12-31) | Post-adjustment (2019-01-01) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Available-for-sale financial assets | 6,300,000.00 | 0.00 | -6,300,000.00 | | Other non-current financial assets | 0.00 | 6,300,000.00 | 6,300,000.00 | - The accounting policy change did not result in adjustments to the opening financial statements for 2019 and does not require retrospective adjustment of prior period comparative data[51](index=51&type=chunk)[55](index=55&type=chunk) [Audit Report](index=33&type=section&id=三、审计报告) The company's financial report for the third quarter of 2019 is unaudited - The third quarter report is **unaudited**[55](index=55&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,059,685,765.75, a decrease of 5.55% compared to CNY 1,121,988,381.88 in the same period last year[19]. - Net profit attributable to shareholders of the listed company was CNY 60,825,615.00, an increase of 5.76% from CNY 57,511,442.72 year-on-year[19]. - The net profit after deducting non-recurring gains and losses was CNY 57,731,651.48, representing a significant increase of 28.52% compared to CNY 44,921,490.04 in the previous year[19]. - The net cash flow from operating activities was CNY 161,854,761.97, a remarkable turnaround from a negative cash flow of CNY -213,224,528.75 in the same period last year, reflecting a 175.91% improvement[19]. - Total assets at the end of the reporting period were CNY 3,898,509,562.44, an increase of 6.41% from CNY 3,663,516,990.54 at the end of the previous year[19]. - Basic earnings per share for the reporting period were CNY 0.1136, a rise of 5.77% compared to CNY 0.1074 in the same period last year[19]. - The weighted average return on net assets was 2.77%, slightly down from 2.78% in the previous year[19]. - The company achieved a total revenue of CNY 105,968.58 million, a year-on-year decrease of 5.55%[40]. - The net profit attributable to shareholders increased by 5.76% to CNY 6,082.56 million, while the net profit excluding non-recurring gains and losses grew by 28.52% to CNY 5,773.17 million[40]. - The cash flow from operating activities improved significantly, reaching CNY 16,185.48 million, a year-on-year increase of 175.91%[40]. Business Segments - The lithium salt business generated revenue of CNY 21,902.27 million, marking a substantial year-on-year growth of 740.29%[41]. - The net profit from the lithium salt business surged by 317.15% to CNY 2,733.68 million[41]. - The rare earth business turned profitable, with revenue of CNY 10,460.81 million, despite a year-on-year decline of 67.77%[42]. - The revenue from the artificial board and timber segment reached approximately RMB 730.50 million, representing a year-on-year increase of 17.88%[53]. - The revenue from the rare earth segment decreased by 1.10% to approximately RMB 110.16 million, attributed to controlled trading to mitigate price volatility risks[53]. Strategic Initiatives - The company plans to adjust the lithium salt project to produce 15,000 tons of battery-grade lithium hydroxide and 25,000 tons of battery-grade lithium carbonate, with environmental approval already obtained[41]. - The company is actively pursuing the acquisition of Aoino Mining, which is expected to enhance the supply of raw materials for its lithium salt business by November 2019[42]. - The company has established strategic partnerships with leading firms such as Yabao, Bamo Technology, and Rongbai Technology in the lithium salt sector[41]. - The company plans to continue investing in the lithium salt sector and expedite the construction of the remaining capacity for the 40,000-ton lithium salt project[44]. - The company aims to strengthen its core customer strategy and enhance international cooperation to achieve its strategic goal of becoming a leading enterprise in the global lithium battery new energy materials sector[44]. Financial Position - Total liabilities as of June 30, 2019, were CNY 1,592,072,886.21, up from CNY 1,419,381,197.93, indicating an increase of approximately 12.1%[160]. - Long-term borrowings increased to CNY 244,709,233.21 from CNY 134,049,205.19, representing a significant rise of about 82.5%[159]. - The total equity attributable to shareholders increased to CNY 2,222,585,565.21 from CNY 2,161,759,990.87, reflecting a growth of about 2.8%[160]. - The company's retained earnings grew to CNY 128,631,968.72 from CNY 67,806,353.72, a substantial increase of about 89.6%[160]. - The total assets reached CNY 3,898,509,562.44, compared to CNY 3,663,516,990.54, reflecting an increase of approximately 6.4%[160]. Risks and Challenges - The company faces risks including market competition, raw material supply and price fluctuations, and safety and environmental risks[5]. - The company faces intensified market competition in the medium-density fiberboard industry, with increasing pressure on market and price competition[80]. - The lithium salt and rare earth recycling industry is experiencing high market demand, but competition may increase with new entrants[81]. - The company plans to strengthen its prediction of raw material prices and enhance communication with suppliers to control production costs[82]. - The company will continue to invest in safety and environmental protection equipment and conduct regular safety inspections to mitigate risks[83]. Environmental Compliance - The company reported that all environmental protection facilities operated stably in the first half of 2019, with monitoring results showing that wastewater and exhaust emissions met standards[118]. - The company is a key pollutant discharge unit as per environmental protection department announcements, with specific emissions data indicating compliance with relevant standards[116]. - The company has invested in specialized treatment equipment to ensure compliance with environmental laws and regulations during production processes[118]. - The company has established emergency response plans for environmental incidents, which have been reviewed and filed with local environmental protection bureaus[120]. - The company has implemented various environmental monitoring schemes to ensure compliance with national and local environmental regulations[121]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 40,556[141]. - Shenzhen Shengtun Group Co., Ltd. holds 15.94% of the shares, totaling 85,349,357 shares[141]. - Li Xiaoqi holds 8.29% of the shares, totaling 44,391,873 shares, with a decrease of 4,686,700 shares during the reporting period[141]. - The company has not undergone any changes in controlling shareholders or actual controllers during the reporting period[143][144]. - The top ten shareholders did not engage in any repurchase transactions during the reporting period[142]. Corporate Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[91]. - The company has not engaged in any significant related party transactions during the reporting period[97]. - The company has not experienced any penalties or corrective actions during the reporting period[93]. - The company has not entered into any leasing agreements during the reporting period[108]. - The company completed the first phase of its employee stock ownership plan, purchasing 19.62 million shares, accounting for 3.67% of total share capital, at an average price of 14.58 yuan per share[95].

Financial Performance - The company's revenue for Q1 2018 was ¥473,458,292.08, representing a 55.93% increase compared to ¥303,639,795.05 in the same period last year[8] - Net profit attributable to shareholders for Q1 2018 was ¥4,110,071.96, a significant increase of 133.36% from ¥1,761,237.42 in the previous year[8] - The net profit after deducting non-recurring gains and losses surged by 1,138.16% to ¥441,149.77 from ¥35,629.60 year-on-year[8] - The basic earnings per share for Q1 2018 increased by 113.89% to ¥0.0077, compared to ¥0.0036 in the same period last year[8] - Operating revenue increased by 55.93% to ¥473.46 million, primarily driven by higher sales of fiberboard and rare earth products[16] - The net profit attributable to shareholders rose by 133.36% to ¥4.11 million, reflecting the revenue growth[16] - The company expects a net profit attributable to shareholders for the first half of 2018 to be between ¥48.50 million and ¥52.00 million, a significant increase compared to ¥0.78 million in the same period of 2017[24] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,929,336,629.66, a slight decrease of 0.93% from ¥2,956,790,887.15 at the end of the previous year[8] - The net assets attributable to shareholders at the end of the reporting period were ¥2,042,894,047.01, reflecting a marginal increase of 0.20% from ¥2,038,783,975.05 at the end of the previous year[8] - The company reported a net cash flow from operating activities of -¥174,145,800.14, worsening from -¥25,257,180.98 in the same period last year[8] - The company's cash and cash equivalents decreased by 62.93% to ¥137.33 million due to loan repayments and increased procurement expenses in the lithium salt business[16] - The company experienced a 63.33% rise in operating costs, totaling ¥449.37 million, attributed to increased revenue and higher raw material costs[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 27,768[12] - The largest shareholder, Shenzhen Shengtun Group Co., Ltd., held 15.81% of the shares, amounting to 84,639,457 shares[12] Government Support and Litigation - The company received government subsidies amounting to ¥7,644,100.00 during the reporting period[9] - The company faced ongoing litigation related to past asset restructuring, with claims totaling approximately ¥18.17 million from multiple plaintiffs[19] Operational Developments - The first production line of the 40,000-ton lithium salt project at subsidiary Sichuan Zhiyuan Lithium Industry commenced operations on March 29, 2018, enhancing the company's competitive advantage[18] - The fiberboard business is anticipated to further improve its profitability, contributing positively to overall performance[24] - The company reported a 134.31% increase in prepayments, reaching ¥247.04 million, mainly due to increased material payments to subsidiaries[16] Compliance and Communication - No violations of external guarantees were reported during the reporting period[25] - There were no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[26] - The company engaged in investor communication activities on March 6 and 7, 2018, through phone calls with institutions[27]

Financial Performance - The company's operating revenue for 2017 was ¥2,018,278,278.74, representing a 44.00% increase compared to ¥1,401,565,207.44 in 2016[20]. - The net profit attributable to shareholders for 2017 was ¥26,261,638.83, a 12.20% increase from ¥23,405,813.62 in 2016[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥9,065,463.77, a significant recovery from a loss of ¥98,521,562.05 in 2016[20]. - The company's total assets increased by 17.22% to ¥2,956,790,887.15 at the end of 2017, up from ¥2,522,436,129.45 at the end of 2016[20]. - The net assets attributable to shareholders rose by 43.98% to ¥2,038,783,975.05 at the end of 2017, compared to ¥1,416,005,904.80 at the end of 2016[20]. - The company reported a net cash flow from operating activities of ¥55,506,493.06 in 2017, a 10.87% increase from ¥50,066,363.87 in 2016[20]. - The company achieved operating revenue of CNY 2,018,278,278.74 in 2017, an increase of 44.00% compared to the previous year[44]. - The company’s net profit attributable to shareholders was CNY 2,626.16 million, up 12.20% from the previous year[44]. - The company’s cash flow from operating activities was CNY 5,550.65 million, reflecting a growth of 10.87%[45]. Business Expansion and Projects - In 2017, the company extended its business into lithium salt and rare earth products, with the rare earth business increasing its revenue share[17]. - The company plans to start trial production of its lithium salt projects in March 2018, which is expected to significantly increase its revenue contribution[17]. - The first phase of Wan Hong High-tech's project reached production capacity in September 2017, contributing to the company's revenue growth[17]. - The company has established a subsidiary with an annual production capacity of 1,000 tons of metallic lithium, which is currently under construction[29]. - The company’s lithium salt business, through its subsidiary Zhiyuan Lithium, has a designed capacity of 40,000 tons of battery-grade lithium carbonate and hydroxide per year[29]. - The company plans to enhance its investment in lithium salt materials, aiming to become a leading enterprise in the global lithium battery new energy materials sector within 2-3 years[45]. - The company aims to complete the construction of the 40,000-ton lithium salt project to create a new profit growth point in 2018[90]. Shareholder and Capital Structure - The company completed a non-public offering in November 2017, with Shengtun Group subscribing to 44,639,457 new shares[17]. - After the completion of the voting rights entrustment agreement, Shengtun Group became the largest single voting rights shareholder, controlling 18.64% of the total share capital[17]. - The total share capital increased from 490,704,000 shares to 535,343,457 shares due to the non-public offering of shares completed in November 2017[181]. - The company issued 44,639,457 new shares in a non-public offering, which were listed on November 15, 2017[184]. - The proportion of limited sale shares decreased from 9.87% to 8.40% after the share issuance[180]. - The proportion of unrestricted shares increased from 90.13% to 91.60% following the issuance of new shares[180]. - The company’s total share capital now consists of 535,343,457 shares, with 490,388,525 shares classified as unrestricted[180]. - The lock-up period for the newly issued shares is 36 months, allowing them to be tradable from November 15, 2020[190]. Risks and Challenges - The company faces risks including market competition, raw material supply and price fluctuations, and safety and environmental risks[5]. - The company acknowledges risks related to market competition and raw material price fluctuations, with plans to adjust product structures and strengthen supplier relationships[96]. Dividend Policy - The company did not distribute cash dividends or bonus shares, nor did it increase capital using reserves[6]. - The company has not distributed any cash dividends over the past three years, with a cash dividend payout ratio of 0.00% for 2015, 2016, and 2017[107]. - For 2017, the company achieved a net profit attributable to the parent company of 26,261,638.83 CNY, yet it did not distribute cash dividends, with a total distributable profit of -92,207,797.05 CNY[105]. - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the current reporting period[108]. Corporate Governance and Compliance - The company has made a commitment to avoid engaging in competitive businesses that could harm its interests or those of its shareholders[111]. - The company has committed to ensuring that any unavoidable related party transactions will be conducted at fair market prices[111]. - The company has pledged to ensure that any new business opportunities that may compete with its operations will be transferred to the company[111]. - The company has committed to compensating any losses incurred by stakeholders due to violations of its commitments[113]. Subsidiaries and Associated Companies - The company established a new subsidiary, Shengwei Lithium Industry, which was included in the consolidated financial statements for the year[57]. - The total revenue for the subsidiaries in 2017 was approximately 1.5 billion CNY, with significant contributions from various subsidiaries such as 清远威利邦 and 湖北威利邦[84]. - The company reported a loss of 14.7 million CNY for 威华万弘 due to high operational costs at the Shenzhen headquarters[85]. - The lithium salt production subsidiary, 致远锂业, faced a loss of 10.7 million CNY as the 40,000-ton lithium salt project was still under construction[85]. Environmental and Social Responsibility - The company commits to environmental protection and has not been penalized for violations during the reporting period[158]. - The company emphasizes the importance of product quality and has linked it to performance evaluations[155]. - The company has maintained a focus on social responsibility, including participation in charitable activities[155].

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。 广东威华股份有限公司 2017 年第三季度报告正文 证券代码：002240 证券简称：威华股份 公告编号：2017-079 广东威华股份有限公司 2017 年第三季度报告正文 1 广东威华股份有限公司 2017 年第三季度报告正文 第一节 重要提示 公司是否需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） | 2,560,486,363.61 | 2,522,436,129.45 | | 1.51% | | 归属于上市公司股东的净资产（元） | 1,433,987,888.45 | | 1,416,005,904.80 | 1.27% | | | 本报告期 | 本报告期比上年同 | 年初至报告期末 | 年初至报告期末比 | | | | 期增减 | | 上年同期增 ...