四川北方硝化棉股份有限公司 2019 年第三季度报告全文 四川北方硝化棉股份有限公司 2019 年第三季度报告 2019 年 10 月 1 四川北方硝化棉股份有限公司 2019 年第三季度报告全文 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。 公司负责人黄万福、主管会计工作负责人黄卫平及会计机构负责人(会计主 管人员)蒋时孝声明：保证季度报告中财务报表的真实、准确、完整。 2 四川北方硝化棉股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 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） | 3,944,607,866.86 | 3,620,089,086.76 | | 8.96% | | 归属于上市公司股东的净资产 | 2,489,34 ...

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,116,236,471.21, representing an increase of 11.15% compared to CNY 1,004,277,791.72 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 73,233,730.30, up 20.01% from CNY 61,020,493.75 in the previous year[18]. - The net cash flow from operating activities was CNY 21,596,146.70, a significant improvement of 210.60% compared to a negative cash flow of CNY -19,527,165.17 in the same period last year[18]. - Basic earnings per share increased to CNY 0.13, reflecting an 18.18% rise from CNY 0.11 in the previous year[18]. - Total assets at the end of the reporting period were CNY 3,793,540,376.57, a 4.79% increase from CNY 3,620,089,086.76 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company rose to CNY 2,484,204,735.80, marking a 3.17% increase from CNY 2,407,982,882.82 at the end of the previous year[18]. - The company reported a decrease of 6.65% in net profit attributable to shareholders after deducting non-recurring gains and losses, amounting to CNY 47,972,106.16 compared to CNY 51,390,277.34 in the previous year[18]. - The weighted average return on net assets was 2.99%, an increase of 0.32% from 2.67% in the previous year[18]. Market Position and Product Development - The company maintains the global leading position in nitrocellulose production, with a complete product range and extensive marketing network across over 50 countries[26]. - The active carbon products market share is approximately 15%, while the human defense filter market share is around 25%[31]. - The company has developed a high-efficiency ceramic flue gas desulfurization slurry circulation pump, recognized for its international leading level[33]. - The special industrial pump series holds a domestic market share of 70% in phosphate fertilizer pumps and 40% in flue gas desulfurization pumps[32]. - The cellulose and its derivatives industry maintained stable growth in sales and revenue, with improved product sales structure and profitability since Q2[39]. - The company achieved a 60% increase in foreign trade orders, with foreign trade business accounting for 8.5% of total operations[47]. - The company successfully replaced German ceramic pumps with large desulfurization ceramic slurry circulation pumps, marking a breakthrough in market transformation[42]. - The company has initiated the design of an automated packaging project for nitrocellulose and completed industrialization tests for high-quality low-viscosity nitrocellulose[43]. - The company has implemented a differentiated strategy to expand into the Middle East and Vietnam markets, responding to the impacts of the US-China trade dispute[42]. Environmental and Social Responsibility - The company has established a special working group to address environmental protection requirements, achieving significant progress in wastewater nitrogen treatment[43]. - The company is focusing on quality improvement and safety management, with a commitment to risk control and operational stability[49]. - The company has increased its investment in environmental protection to comply with stricter pollution discharge standards[84]. - The company has implemented energy-saving and emission-reduction measures, with all pollutants meeting discharge standards[84]. - In the first half of 2019, the company helped 158 registered impoverished individuals to escape poverty through various initiatives[134]. - The company invested a total of CNY 1.44 million in material assistance for poverty alleviation efforts[134]. - The company plans to donate a total of CNY 335,000 for various poverty alleviation projects in the second half of 2019[135]. - The company has been recognized for its efforts in targeted poverty alleviation, enhancing its corporate image[132]. Investment and Financial Management - The total amount of raised funds is ¥939.23 million, with ¥2.84 million invested during the reporting period[69]. - Cumulative investment of raised funds reached ¥504.95 million, accounting for 53.73% of the total raised[69]. - The project to acquire 65.65% of Xiangyang 525 Pump Industry Co., Ltd. has been completed with an investment of ¥30.23 million, achieving 100% of the planned investment[71]. - The company has ensured compliance with regulations regarding the management and use of raised funds, with no violations reported[69]. - The company is conducting further feasibility studies on projects to ensure alignment with market demands and shareholder interests[72]. - The company plans to adjust the production scale of slurry pumps and petrochemical pumps based on market conditions to mitigate investment risks[72]. Shareholder and Governance - The total number of common shareholders at the end of the reporting period was 40,433[146]. - The largest shareholder, Shanxi Xinhua Protective Equipment Co., Ltd., holds 18.06% of the shares, totaling 99,138,233 shares[146]. - China North Chemical Industry Group Co., Ltd. holds 9.24% of the shares, totaling 50,751,216 shares[146]. - The total share capital increased from 413,686,536 shares to 549,034,794 shares after the issuance of new shares[146]. - The company has established a robust governance structure, ensuring compliance and transparency in operations[95]. - The management team has not faced any legal or regulatory issues in the past five years, reinforcing the company's stable operational status[96]. Future Outlook - The company provided a positive outlook for the second half of 2019, projecting a revenue growth of 10% to 12% based on current market trends[91]. - The company has set a future outlook with a revenue target of 2.5 billion yuan for the full year 2019, which would require a 10% increase in the second half[94]. - New product development includes the launch of a high-performance nitrocellulose product line, expected to contribute an additional 300 million yuan in revenue[94]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share within the next two years[94]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's production capacity by 30%[94].

Financial Performance - The company's operating revenue for Q1 2019 was CNY 416,430,846.97, representing a 29.69% increase compared to CNY 321,094,127.88 in the same period last year[8] - Net profit attributable to shareholders reached CNY 5,973,364.21, a significant increase of 303.81% from a loss of CNY 2,930,903.47 in the previous year[8] - The net cash flow from operating activities improved to CNY 89,607,398.69, marking a 228.21% increase from a negative cash flow of CNY 69,890,386.75 in the same period last year[8] - Basic earnings per share rose to CNY 0.0109, up 305.66% from a loss of CNY 0.0053 per share in the previous year[8] - The company reported a total equity of ¥2.64 billion, unchanged from the previous reporting period[38] - The net profit for Q1 2019 reached CNY 4,852,656.45, a significant recovery from a net loss of CNY 4,975,781.42 in Q1 2018[47] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,652,961,527.98, a slight increase of 0.91% from CNY 3,620,089,086.76 at the end of the previous year[8] - The company's total assets as of March 31, 2019, amounted to CNY 2,377,038,627.00, compared to CNY 2,362,252,116.95 at the end of 2018[44] - The company's total liabilities were ¥1.02 billion as of March 31, 2019, up from ¥988.92 million at the end of 2018[38] - The company's total liabilities were CNY 235,925,181.66, up from CNY 201,573,973.71 at the end of 2018[43] - Total liabilities amounted to CNY 201,573,973.71, with current liabilities at CNY 187,681,172.61[65] Cash Flow - The cash flow from operating activities generated a net amount of ¥89,607,398.69, a significant improvement from -¥69,890,386.75 in the previous period[54] - Operating cash inflow totaled ¥137,194,268.37, an increase of 11.5% from ¥123,144,334.33 in the previous period[57] - Net cash flow from operating activities was -¥8,277,798.48, improving from -¥33,844,530.10 in the previous period[57] - Cash outflow from investment activities was ¥83,459,064.92, significantly reduced from ¥500,441,648.31 in the previous period[58] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 43,987, with the top ten shareholders holding a combined 64.76% of the shares[11] - The equity attributable to shareholders of the parent company was CNY 2,141,113,445.34, down from CNY 2,160,678,143.24 at the end of 2018[44] Expenses - The company reported a 34.18% increase in sales expenses, totaling an increase of CNY 6,940,000, primarily due to higher transportation costs and employee salaries[17] - Research and development expenses for Q1 2019 were CNY 11,546,400.66, slightly down from CNY 12,565,293.59 in Q1 2018[45] - The company incurred financial expenses of ¥1,224,972.31, up from ¥763,704.90 in the previous period, indicating increased borrowing costs[50] Government Support - Government subsidies recognized during the period amounted to CNY 4,500,606.70, contributing to an increase in other income[9] Accounting Policies - The company has made adjustments to its accounting policies in accordance with new financial regulations issued by the Ministry of Finance[25]

Financial Performance - The company's operating revenue for 2018 was ¥2,363,371,941.02, representing an increase of 8.24% compared to ¥2,183,355,173.37 in 2017[21]. - The net profit attributable to shareholders for 2018 was ¥123,679,724.13, which is a 14.01% increase from ¥108,480,949.42 in 2017[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥86,974,136.03, showing a significant increase of 66.89% from ¥52,113,914.09 in 2017[21]. - The net cash flow from operating activities decreased by 35.04% to ¥133,513,389.24 in 2018, down from ¥205,529,731.63 in 2017[21]. - The total assets at the end of 2018 were ¥3,620,089,086.76, reflecting a 4.00% increase from ¥3,480,886,253.95 at the end of 2017[21]. - The net assets attributable to shareholders increased by 6.97% to ¥2,407,982,882.82 at the end of 2018, compared to ¥2,251,178,261.24 at the end of 2017[21]. - The basic earnings per share for 2018 was ¥0.23, up 9.52% from ¥0.21 in 2017[21]. - The diluted earnings per share also stood at ¥0.23, reflecting the same 9.52% increase from ¥0.21 in 2017[21]. - The weighted average return on equity for 2018 was 5.37%, a decrease of 0.40% from 5.77% in 2017[21]. - The total profit attributable to minority shareholders (after tax) was ¥316,510.01 in 2018, a recovery from a loss of ¥2,173,956.61 in 2017[28]. Market Position - The company maintains a domestic market share of over 50% for nitrocellulose products and 20% for international markets[9]. - The company achieved a domestic market share of 70% for pumps used in phosphate fertilizers and 40% for pumps used in flue gas desulfurization[9]. - The company maintained a domestic market share of 53% and an international market share of 24% in the nitrocellulose sector, solidifying its position as a leading manufacturer[32]. - The active carbon product market share is approximately 15%, while the human defense filter market share stands at around 25%[38]. - The special industrial pump series products have a domestic market share of 70% in the phosphate fertilizer pump segment and 40% in the flue gas desulfurization pump segment[38]. Environmental Initiatives - The company is increasing its investment in environmental protection to meet rising emission standards, which may lead to higher product costs[10]. - The company aims to ensure compliance with pollution discharge standards and has successfully maintained stable operation of its environmental facilities[10]. - The company is actively pursuing energy-saving and emission-reduction initiatives to mitigate environmental risks[10]. - The company’s wastewater treatment facilities maintained stable compliance with discharge standards, significantly reducing pollutant emissions per unit of output[190]. - In 2018, the company’s total emissions included 140.3 tons of chemical oxygen demand and 15.81 tons of sulfur dioxide, both within regulatory limits[189]. - The company has been fined 100,000 CNY by the Taiyuan Environmental Protection Bureau for failing to meet environmental protection requirements during a trial run of its desulfurization and denitrification activated carbon production line[200]. Research and Development - R&D expenses rose by 18.39% to ¥84,658,925.46, indicating a focus on innovation[80]. - The company completed the design of 20 new pump models, enhancing market competitiveness[81]. - The company is exploring an intelligent online monitoring and diagnostic system for pump lifecycle management[81]. - The company is focusing on the development of new protective materials for CBRN defense, enhancing its core competitiveness in the protection field[84]. - The company has developed a new model of dredging pump and is researching two new materials, establishing a data collection center for large pumps[82]. Strategic Plans - The company plans to achieve a revenue target of 2.638 billion for 2019, with a profit target of 150 million[108]. - The company is focusing on expanding its market presence in the mining metallurgy sector and developing a full range of slurry pump products[107]. - The company plans to temporarily reduce the production scale of slurry pumps and petrochemical pumps to control investment risks[101]. - The company is committed to innovation-driven development and enhancing its core competitiveness and risk prevention capabilities[107]. - The company will continue to implement an "internationalization and high-end" brand strategy to maintain its leading position in the nitrocellulose industry[107]. Shareholder Returns - The company reported a cash dividend of 0.55 RMB per 10 shares, based on a total of 549,034,794 shares, with no bonus shares issued[5]. - The total cash dividend for 2018 amounted to CNY 30,196,913.67, representing 24.42% of the net profit attributable to ordinary shareholders[133]. - The cash dividend policy stipulates that at least 10% of the distributable profit must be distributed in cash each year, with a cumulative distribution of at least 30% of the average annual distributable profit over any three consecutive years[124]. - The company prioritizes cash dividends over stock dividends, ensuring a clear and transparent profit distribution policy[121]. - The independent directors play a crucial role in the formulation and execution of the cash dividend policy, ensuring compliance and transparency[127]. Risk Management - The company is facing market risks including demand shrinkage in traditional markets and competition, but is implementing strategies like "differentiation" and "one policy for one customer" to stabilize core customers[9]. - The company anticipates a continued decline in demand for nitrocellulose in 2019, with intensified market competition[111]. - The company faces risks from market demand shrinkage, trade disputes, and increased competition, necessitating proactive management strategies[110]. Corporate Governance - The company emphasizes the importance of respecting the independent legal status of listed companies and ensuring their independent operation and decision-making[138]. - The company commits to strictly adhering to national laws and regulations regarding related party transactions, ensuring they are conducted under normal commercial conditions[138]. - The company will ensure timely and accurate disclosure of information related to significant asset restructuring, adhering to relevant regulations[139]. - The company has committed to ensuring that its subsidiaries do not occupy the listed company's funds or assets illegally[141].

[Important Notice](index=2&type=section&id=Section%20I.%20Important%20Notice) The company's board of directors, supervisory board, and senior management collectively affirm the truthfulness, accuracy, and completeness of this quarterly report [Important Notice](index=2&type=section&id=Section%20I.%20Important%20Notice) The company's board of directors, supervisory board, and senior management collectively affirm the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[4](index=4&type=chunk) - The company's principal, head of accounting, and head of accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Section%20II.%20Company%20Profile) This section provides an overview of the company's key financial data, indicators, and shareholder structure as of the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of the end of the reporting period, the company's total assets and net assets slightly increased from the end of the previous year, with operating revenue and net profit attributable to shareholders growing year-on-year, though operating cash flow significantly decreased 2018 Q3 Key Financial Indicators | Indicator | End of Reporting Period / Year-to-Date | YoY / Change from End of Previous Year | | :--- | :--- | :--- | | **Balance Sheet Items** | | | | Total Assets (RMB) | 3,546.09 million | 1.87% | | Net Assets Attributable to Shareholders (RMB) | 2,319.06 million | 3.02% | | **Income Statement Items (Year-to-Date)** | | | | Operating Revenue (RMB) | 1,530.70 million | 7.60% | | Net Profit Attributable to Shareholders (RMB) | 75.07 million | 12.20% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 63.37 million | 11.40% | | **Cash Flow Statement Items (Year-to-Date)** | | | | Net Cash Flow from Operating Activities (RMB) | -82.24 million | -265.11% | | **Per Share Indicators (Year-to-Date)** | | | | Basic Earnings Per Share (RMB/share) | 0.1367 | 4.75% | Non-recurring Gains and Losses Year-to-Date | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 3.86 million | | Government Grants | 9.53 million | | Other Items Total | 0.43 million | | Less: Income Tax and Minority Interest Impact | 2.42 million | | **Total** | **11.70 million** | [Shareholder Information](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Shareholding%20of%20Top%20Ten%20Shareholders%20at%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 43,922 common shareholders, with a concentrated equity structure dominated by state-owned legal entities among the top ten shareholders - The total number of common shareholders at the end of the reporting period was **43,922 accounts**[12](index=12&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Shareholder Nature | | :--- | :--- | :--- | | Shanxi Xinhua Protective Equipment Co., Ltd. | 18.06% | State-owned Legal Entity | | Norinco Investment Management Co., Ltd. | 13.28% | State-owned Legal Entity | | China North Chemical Industries Group Co., Ltd. | 9.24% | State-owned Legal Entity | | Luzhou North Chemical Industry Co., Ltd. | 8.59% | State-owned Legal Entity | | Xi'an North Huian Chemical Industry Co., Ltd. | 8.49% | State-owned Legal Entity | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | 6.60% | State-owned Legal Entity | - Xinhua Protective, Luzhou North, Xi'an Huian, Norinco Investment, and North Chemical Group among the top ten shareholders are all controlled by China North Industries Group Corporation Limited, forming a concerted action relationship[13](index=13&type=chunk) [Significant Events](index=6&type=section&id=Section%20III.%20Significant%20Events) This section details the significant financial data changes, major event progress, commitments, and compliance matters during the reporting period [Analysis of Major Financial Data Changes](index=6&type=section&id=I.%20Changes%20in%20Major%20Financial%20Data%20and%20Indicators%20and%20Reasons%20in%20the%20Reporting%20Period) During the reporting period, significant changes occurred in several financial data points, including a substantial decrease in monetary funds due to increased financial product investments, a rise in prepayments from major customers, and a significant reduction in financial expenses due to exchange gains - Changes in Balance Sheet Items: - **Monetary Funds**: Decreased by **67.45%** from the beginning of the period, primarily due to increased investment in financial products[16](index=16&type=chunk) - **Available-for-Sale Financial Assets**: Significantly increased from the beginning of the period due to investments in financial products[17](index=17&type=chunk) - **Construction in Progress**: Increased by **52.70%** from the beginning of the period due to new fixed asset investments by the company headquarters and Xinhua Chemical[17](index=17&type=chunk) - **Goodwill**: Reduced to zero as Ningxia Guanghua Qisi Activated Carbon Co., Ltd. is no longer consolidated[17](index=17&type=chunk) - **Prepayments**: Increased by **78.55%** from the beginning of the period due to prepayments from some major customers[17](index=17&type=chunk) - Changes in Income Statement Items: - **Financial Expenses**: Amounted to **-5.21 million RMB** from January to September, a **610.20%** year-on-year decrease, mainly due to increased exchange gains from USD exchange rate fluctuations[17](index=17&type=chunk) - **Investment Income**: Amounted to **9.17 million RMB** from January to September, primarily from investments in financial products[17](index=17&type=chunk) - Changes in Cash Flow Statement Items: - **Net Cash Flow from Operating Activities**: Amounted to **-82.24 million RMB**, a **265.11%** year-on-year decrease, mainly because payments for specialized products have not yet been settled[17](index=17&type=chunk)[18](index=18&type=chunk) - **Cash Paid for Investments**: Amounted to **1.176 billion RMB** from January to September, primarily for investments in financial products[17](index=17&type=chunk)[19](index=19&type=chunk) [Progress of Significant Matters](index=7&type=section&id=II.%20Progress%20of%20Significant%20Matters%20and%20Analysis%20of%20Their%20Impact%20and%20Solutions) During the reporting period, the company completed several major capital operations and structural adjustments, including a non-public share issuance, transfer of a controlling subsidiary's equity, and changes in consolidation scope due to a termination of concerted action relationship, alongside accounting policy adjustments - Completed non-public issuance of shares to raise supporting funds, with new shares listed on February 1, 2018[20](index=20&type=chunk) - Completed the transfer of **80%** equity in controlling subsidiary Beijing North Century Cellulose Technology Development Co., Ltd., which is no longer included in the consolidated financial statements[22](index=22&type=chunk) - Wholly-owned subsidiary Xinhua Chemical and another shareholder of its subsidiary "Guanghua Qisi" terminated their concerted action relationship, resulting in "Guanghua Qisi" no longer being included in the company's consolidated financial statements[23](index=23&type=chunk)[24](index=24&type=chunk) - Accounting policies were changed in accordance with the Ministry of Finance's "Notice on Revising and Issuing the Format of Financial Statements for General Enterprises in 2018"[24](index=24&type=chunk) [Commitments](index=9&type=section&id=III.%20Commitments%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20that%20Were%20Overdue%20and%20Unfulfilled%20During%20the%20Reporting%20Period) During the reporting period, the company had no overdue and unfulfilled commitments from its actual controller, shareholders, related parties, acquirers, or the company itself - The company had no overdue and unfulfilled commitments from relevant parties during the reporting period[27](index=27&type=chunk) [2018 Annual Operating Performance Forecast](index=9&type=section&id=IV.%20Forecast%20of%202018%20Annual%20Operating%20Performance) The company forecasts a year-on-year increase in net profit attributable to shareholders for 2018, with a projected growth range of 0% to 50%, primarily driven by increased sales of high-margin protective equipment products from its wholly-owned subsidiary Xinhua Chemical 2018 Annual Net Profit Performance Forecast | Item | Data | | :--- | :--- | | Net Profit Change Range | 0.00% to 50.00% | | Net Profit Change Interval (RMB million) | 108.48 to 162.72 | | 2017 Net Profit (RMB million) | 108.48 | - The main reason for the performance change is a significant increase in sales of high-margin protective equipment products by the wholly-owned subsidiary Xinhua Chemical Company[28](index=28&type=chunk) [Compliance Matters (Fair Value Measurement, Irregular Guarantees, Fund Occupation)](index=9&type=section&id=V.%2C%20VI.%2C%20VII.%20Compliance%20Matters) During the reporting period, the company had no financial assets measured at fair value, no irregular external guarantees, and no non-operating fund occupation by controlling shareholders or their related parties - The company had no financial assets measured at fair value, no irregular external guarantees, and no non-operating fund occupation by controlling shareholders during the reporting period[29](index=29&type=chunk)[30](index=30&type=chunk) [Wealth Management](index=9&type=section&id=VIII.%20Wealth%20Management) The company actively engaged in wealth management using both raised funds and own funds, investing a total of 945.50 million RMB primarily in bank, trust, and brokerage wealth management products, with an outstanding balance of 485.50 million RMB at the end of the reporting period Wealth Management Overview (RMB million) | Wealth Management Product Type | Fund Source | Amount Invested (RMB million) | Unexpired Balance (RMB million) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 425.50 | 35.50 | | Trust Wealth Management Products | Own Funds | 130.00 | 60.00 | | Brokerage Wealth Management Products | Raised Funds | 390.00 | 390.00 | | **Total** | | **945.50** | **485.50** | [Investor Relations Activities](index=10&type=section&id=IX.%20Registration%20Form%20for%20Investor%20Surveys%2C%20Communications%2C%20Interviews%2C%20etc.%20During%20the%20Reporting%20Period) During the reporting period, the company's investor relations activities consisted solely of telephone communications with individual investors, primarily discussing stock price, performance, and general business conditions without disclosing undisclosed material information - Investor surveys during the reporting period were limited to telephone communications with individual investors, mainly inquiring about stock price, performance, and general business matters, with no provision of undisclosed information by the company[33](index=33&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,004,277,791.72, representing a 14.52% increase compared to CNY 876,947,680.64 in the same period last year[16]. - The net profit attributable to shareholders was CNY 61,020,493.75, an increase of 18.81% from CNY 51,359,776.00 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 51,390,277.34, showing a significant increase of 129.37% compared to CNY 22,404,693.75 last year[16]. - The basic earnings per share increased to CNY 0.110, up 22.22% from CNY 0.090 in the previous year[16]. - The total assets at the end of the reporting period were CNY 3,525,627,277.72, reflecting a 1.29% increase from CNY 3,480,886,253.95 at the end of the previous year[16]. - The net assets attributable to shareholders increased to CNY 2,315,269,375.16, a rise of 2.85% from CNY 2,251,178,261.24 at the end of the previous year[16]. - The net cash flow from operating activities was negative at CNY -19,527,165.17, a decrease of 127.82% compared to CNY 70,197,075.15 in the same period last year[16]. - The company achieved operating revenue of ¥1,004,277,791.72, a year-on-year increase of 14.52%[36]. - Net profit attributable to shareholders reached ¥61,020,493.75, up 18.81% year-on-year[36]. - The cash flow from operating activities was -¥19,527,165.17, a decrease of 127.82% compared to the previous year[36]. Market Position and Competitiveness - The company maintains a leading position in the nitrocellulose market with a domestic market share of 52% and a global market share of 24% as of the first half of 2018[23]. - The active carbon products market share is approximately 15%, while the human defense filter market share is around 25%, with an export mask market share exceeding 80%[29]. - The company has over 40 years of experience in the research and manufacturing of special industrial pumps, achieving a domestic market share of 40% for flue gas desulfurization pumps and 70% for phosphoric chemical pumps[23]. - The company has been recognized as a high-tech enterprise and has received various awards, including being ranked among the top 50 labor protection enterprises in China[23]. - The company operates in three main business segments: nitrocellulose products, protective equipment, and special industrial pumps, with a focus on military and civilian dual-use products[22]. - The company has a strong brand presence with its products marketed in over 50 countries and regions, supported by a stable marketing team[28]. Investment and Development - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company completed the registration change of its capital to CNY 549,034,794 and updated its business scope to include various chemical products and services[15]. - The company has established a national-level enterprise technology center, enhancing its innovation platform[42]. - The company has initiated the construction of a 30,000-ton annual production line for cotton liquid, enhancing its production capacity[41]. - The company is investing in new technology, with a budget of 100 million CNY dedicated to R&D for innovative production processes[94]. - The company plans to invest CNY 601.7 million in the special industrial pump manufacturing project, aiming for an annual production capacity of 8,600 petrochemical pumps and other types[75]. Challenges and Risks - The company is facing increased safety and environmental management challenges due to stricter regulatory policies in the chemical industry[48]. - The project has not yet achieved the expected economic benefits due to a slowdown in macroeconomic growth affecting key industries such as petroleum, chemical, and mining, leading to insufficient product orders[68]. - The overall demand in the nitrocellulose industry has slightly decreased due to international economic fluctuations and a slowdown in domestic economic growth, leading to intensified market competition and declining profitability[85]. - The company has faced increased safety and environmental regulatory pressures, necessitating higher investments in environmental protection and compliance with stricter pollution discharge standards[87]. Corporate Governance and Compliance - The company has committed to avoiding any direct or indirect competition with the listed company, ensuring no engagement in competitive activities or ownership of competing entities[92]. - The company has pledged to manage related transactions with the listed company in a standardized manner, adhering to market principles and ensuring fair pricing[93]. - The company guarantees that it will not seek any preferential conditions from the listed company beyond what is available in fair market transactions[93]. - The company has committed to ensuring the authenticity and accuracy of information provided during major asset restructuring, taking legal responsibility for any discrepancies[93]. - The company will supervise its wholly-owned and controlled enterprises to ensure compliance with the commitments made regarding competition[93]. Environmental and Social Responsibility - The company has implemented pollution control facilities that are operating normally, ensuring stable compliance with discharge standards[123]. - The company has invested 1.39 million yuan in material assistance for poverty alleviation efforts[131]. - The company plans to invest 10-20 thousand yuan in expanding yak farming and rice-fish farming projects in the second half of the year[133]. - The company has established a yak breeding cooperative in the poverty-stricken area, achieving good economic and social benefits[130]. - The company is actively involved in environmental monitoring and has submitted annual reports to the pollution monitoring information platform[126]. Future Outlook - The company expects net profit attributable to shareholders for the first nine months of 2018 to range from CNY 66.91 million to CNY 86.98 million, reflecting a year-on-year increase of 0.00% to 30.00%[84]. - The company has outlined a positive outlook for the second half of 2018, projecting a revenue growth of 25% driven by new product launches and market expansion strategies[96]. - The company plans to enhance its market share by focusing on internationalization and high-end strategies, targeting the Asia-Pacific and Turkish markets for valuable growth[86]. - The company is expanding its market presence, targeting a 25% increase in market share in the next two years through strategic partnerships[94].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 1,004,277,791.72, representing a 14.52% increase compared to CNY 876,947,680.64 in the same period last year[16]. - The net profit attributable to shareholders was CNY 61,020,493.75, an increase of 18.81% from CNY 51,359,776.00 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 51,390,277.34, showing a significant increase of 129.37% compared to CNY 22,404,693.75 last year[16]. - The basic earnings per share increased to CNY 0.110, up 22.22% from CNY 0.090 in the previous year[16]. - The total assets at the end of the reporting period were CNY 3,525,627,277.72, reflecting a 1.29% increase from CNY 3,480,886,253.95 at the end of the previous year[16]. - The net assets attributable to shareholders increased by 2.85% to CNY 2,315,269,375.16 from CNY 2,251,178,261.24 at the end of the previous year[16]. - The net cash flow from operating activities was negative at CNY -19,527,165.17, a decrease of 127.82% compared to CNY 70,197,075.15 in the previous year[16]. - The company reported a significant decrease in revenue from environmental protection equipment by 48.50% to CNY 10,122,853.78 due to temporary order reductions in the market[57]. - The total comprehensive income for the period was CNY 39,831,170.20, compared to CNY 46,064,785.22 in the previous period, reflecting a decrease of approximately 13.5%[176]. - The net cash flow from operating activities was negative at CNY -19,527,165.17, a significant decline from CNY 70,197,075.15 in the prior period[179]. Market Position and Competitiveness - The company maintains a leading position in the nitrocellulose market with a domestic market share of 52% and a global market share of 24% as of the first half of 2018[23]. - The active carbon products maintain a market share of approximately 15%, while the human defense filter market share is around 25%[29]. - The company has over 40 years of experience in the research and manufacturing of special industrial pumps, achieving a domestic market share of 40% for flue gas desulfurization pumps and 70% for phosphoric chemical pumps[23]. - The company has been recognized as one of the top 50 enterprises in the labor protection industry in China, reflecting its strong market position and reputation[23]. - The company’s active carbon products hold a significant market share in China's export market, particularly in the Asia-Pacific and European regions[47]. Strategic Initiatives and Future Plans - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has undergone a change in registered capital to CNY 549,034,794 and expanded its business scope to include various chemical products and services[15]. - The company aims to enhance its market operations and internal cost control while focusing on technology innovation and structural adjustments in the second half of the year[50]. - The company plans to temporarily reduce the production scale of slurry pumps and petrochemical pumps, and cancel the nuclear pump and nuclear casting plans to control investment risks[68]. - The company plans to invest CNY 601.7 million in the special industrial pump manufacturing project, aiming for an annual production capacity of 8,600 petrochemical pumps and other types[75]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[191]. Research and Development - The company has established a comprehensive R&D technology system in the field of chemical defense, providing customized products with high quality and stable performance[29]. - The company has established a national-level enterprise technology center, enhancing its innovation platform[42]. - The company has committed to investing 100 million CNY in R&D for new technologies over the next three years[94]. - New product development is underway, with two innovative products expected to launch by Q4 2018, aimed at enhancing market competitiveness[95]. Environmental and Social Responsibility - The company has successfully implemented pollution control facilities, ensuring stable compliance with wastewater and air emissions standards[123]. - The company has conducted environmental pollution risk assessments and emergency drills to enhance response capabilities[125]. - The company has invested 1.39 million yuan in material assistance for poverty alleviation efforts[131]. - The company plans to invest 10-20 thousand yuan in expanding yak farming and rice-fish farming projects in the second half of the year[133]. Financial Management and Investments - The company has cumulatively invested ¥50,122.59 million of the raised funds, with no changes in the use of raised funds during the reporting period[66]. - The company has not utilized any of the raised funds for other projects, maintaining a focus on the special industrial pump manufacturing project[68]. - The company plans to use up to 70 million RMB of idle funds to subscribe to the Huaneng Xiyao No. 3 collective trust plan, with an expected annual yield of 4.8%[109]. - The company’s wholly-owned subsidiary, Xinhua Chemical, intends to use up to 60 million RMB of idle funds to purchase the priority trust units of the same trust plan, with an expected annual yield of 5.6%[111]. Shareholder and Corporate Governance - The company has committed to avoiding any direct or indirect competition with the listed company, ensuring no engagement in competitive activities or ownership of competing entities[92]. - The company reported that it has fulfilled its commitments regarding related party transactions, adhering to fair market principles and legal requirements[93]. - The company will supervise its wholly-owned and controlled enterprises to ensure compliance with its commitments regarding competition[93]. - The company has made a long-term commitment to fulfill its obligations regarding related party transactions and competition[92].

Financial Performance - Revenue for the first quarter was CNY 321,094,127.88, a decrease of 15.39% compared to the same period last year[8] - Net profit attributable to shareholders was CNY -2,930,903.47, representing a decline of 121.36% year-on-year[8] - Basic earnings per share were CNY -0.0053, down 119.63% from CNY 0.0248 in the same period last year[8] - The decline in net profit was primarily attributed to reduced profits in the nitrocellulose and pump product markets, with a year-on-year decrease of CNY 19.15 million, or 135.10%[19] - The estimated net profit attributable to shareholders for the first half of 2018 is projected to be between ¥35.95 million and ¥51.36 million, representing a decrease of 0% to 30% compared to the same period in 2017[26] - The decline in profit is attributed to intensified market competition for nitrocellulose products and reduced demand from domestic clients due to environmental pressures[26] Cash Flow and Assets - Net cash flow from operating activities was CNY -69,890,386.75, a decrease of 29.86% compared to the previous year[8] - Total assets at the end of the reporting period were CNY 3,455,900,872.59, a decrease of 0.72% from the end of the previous year[8] - Cash and cash equivalents decreased by 61.61% compared to the beginning of the year due to capital preservation investment activities[16] - Accounts receivable notes decreased by 32.44% as a result of an increased proportion of note payments[17] - Prepayments increased by 35.77% due to advance payments made by some customers as per contract agreements[19] - Investment cash payments increased by CNY 4.96 billion due to capital preservation investment activities[20] Corporate Actions and Compliance - The company raised approximately ¥418.95 million through a non-public issuance of shares, with funds deposited on December 29, 2017[21] - The company completed the transfer of 80% equity in its subsidiary, Beijing Northern Century Cellulose Technology Development Co., Ltd., with an assessed value of ¥942.88 million[22] - The company reported no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[25] - There were no violations regarding external guarantees during the reporting period[30] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[31] - The company has not provided any materials in response to inquiries regarding stock price declines and performance expectations during various communication sessions[32]

Financial Performance - The company's operating revenue for 2017 was CNY 2,183,355,173.37, a decrease of 0.46% compared to CNY 2,193,410,745.60 in 2016[23]. - Net profit attributable to shareholders was CNY 108,480,949.42, representing a decline of 21.29% from CNY 137,824,933.90 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was CNY 52,113,914.09, down 30.33% from CNY 74,802,057.65 in 2016[23]. - The net cash flow from operating activities increased significantly to CNY 205,529,731.63, a rise of 1,375.61% compared to CNY 13,928,424.60 in 2016[23]. - Total assets at the end of 2017 reached CNY 3,480,886,253.95, an increase of 17.33% from CNY 2,966,779,934.11 in 2016[23]. - The net assets attributable to shareholders increased by 20.93% to CNY 2,251,178,261.24 from CNY 1,861,530,572.14 in 2016[23]. - Basic earnings per share for 2017 were CNY 0.21, down 22.22% from CNY 0.27 in 2016[23]. - The weighted average return on equity was 5.77%, a decrease from 7.06% in the previous year[23]. Market Position and Competition - The company faced a slight decline in overall market demand for nitrocellulose due to economic fluctuations, with an increase of approximately 22,000 tons/year in new production capacity, leading to intensified market competition[11]. - The company holds a 55% market share in the domestic nitrocellulose market and a 25% share in the international market as of 2017[33]. - The company is focusing on improving the performance and aesthetics of its anti-smog masks to increase market share and recognition[12]. - The company is leveraging its existing performance in the chemical slurry pump market to capture new opportunities in the Indian and ASEAN desulfurization markets[12]. - The company aims to maintain its global leading position in the nitrocellulose industry and domestic leadership in the special industrial pump sector, focusing on innovation-driven development[117]. Strategic Initiatives and Acquisitions - The company acquired Xinhua Chemical in August 2017, expanding its main business to include the production and sales of environmental protection and protective equipment[14]. - The company completed a major asset restructuring, acquiring 100% equity of Shanxi Xinhua Chemical Co., which impacted its shareholder structure[20]. - The company plans to expand its business scope following the acquisition, which may include new product development and market expansion strategies[20]. - The company completed the acquisition of 100% equity in Xinhua Chemical on August 21, 2017, following the approval from the China Securities Regulatory Commission[54]. - The company has committed to avoiding competition with its controlling shareholders and related parties, ensuring compliance with competitive regulations[151]. Research and Development - The company has established a complete R&D technology system in the field of chemical defense, enhancing its brand advantage and market position[40]. - The company’s R&D investment accounted for 3.6% of main business revenue, with a 4.5% growth rate in self-funded R&D investment[62]. - The company is developing air purifiers with a clean air output of no less than 780 m³/h, which will contribute to significant economic benefits upon market introduction[11]. - The company has successfully developed a series of new, energy-efficient, and long-lasting slurry pump products, which will improve market competitiveness[89]. - The company is focusing on the internationalization and high-end positioning of its nitrocellulose products[86]. Environmental and Social Responsibility - The company is actively managing environmental risks by increasing investments in pollution control and ensuring compliance with rising emission standards[14]. - The company has committed to sustainability initiatives, with plans to reduce carbon emissions by 20% over the next five years[152]. - The company engaged in targeted poverty alleviation planning in response to national and group directives[197]. - The total amount of funds allocated for poverty alleviation was 430,000 RMB, with additional material contributions valued at 15,700 RMB[199]. - The company has been recognized for its efforts in fulfilling social responsibilities and contributing to community development[200]. Financial Management and Shareholder Returns - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a year-over-year growth of 15%[152]. - The company has established a shareholder return plan for the next three years (2017-2019) to enhance cash dividend mechanisms and protect shareholder rights[136]. - The cash dividend policy stipulates that at least 10% of the distributable profit must be distributed in cash each year, with a cumulative distribution of at least 30% of the average distributable profit over any three consecutive years[142]. - The company’s available distributable profit for 2017 is ¥696,393,591.45, with cash dividends accounting for 100% of the profit distribution total[150]. - The company has maintained a positive net profit for ordinary shareholders over the past three years, with consistent cash dividend distributions[150]. Operational Challenges - The company has faced challenges in market demand and competition, leading to insufficient product orders and sales[105]. - The company is facing increased costs due to rising environmental protection investments and stricter emission standards[128]. - The company plans to temporarily reduce the production scale of slurry pumps and petrochemical pumps, and has canceled plans for nuclear pumps and castings to control investment risks[105]. - The company anticipates improvement in project economic benefits as the relevant industries recover and market expansion efforts increase[105]. - The company has not provided specific data regarding the decline in net profit for the first half of 2017 during investor communications[129].

Financial Performance - Operating revenue for the reporting period was ¥543,933,401.50, representing a year-on-year increase of 27.59%[9] - Net profit attributable to shareholders was ¥42,857,882.27, up 35.52% from the same period last year[9] - The net profit after deducting non-recurring gains and losses was ¥40,153,717.80, an increase of 43.18% year-on-year[9] - Basic earnings per share increased by 35.49% to ¥0.0836 compared to the same period last year[9] - The total operating revenue for the third quarter was CNY 543,933,401.50, an increase from CNY 426,318,257.60 in the previous period[47] - The net profit for the quarter was CNY 44,253,136.82, up from CNY 33,920,822.39 year-over-year[48] - The profit attributable to the parent company's shareholders was CNY 42,857,882.27, compared to CNY 31,624,177.73 in the same quarter last year[48] - Net profit for the period was ¥67,419,601.06, a decrease of 37.3% from ¥107,642,028.98 in the previous period[57] - Basic earnings per share decreased to ¥0.1305 from ¥0.1953, representing a decline of 33.2%[57] Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,170,484,313.66, an increase of 6.87% compared to the previous year[9] - Current assets totaled 1,790,832,112.16 CNY, slightly down from 1,799,837,661.07 CNY at the start of the year[39] - The company's cash and cash equivalents decreased to 456,208,810.07 CNY from 578,262,723.06 CNY[39] - The total liabilities were CNY 1,068,504,125.57, compared to CNY 1,038,666,749.91 previously[42] - The total equity attributable to shareholders of the parent company was CNY 1,858,599,516.36, slightly down from CNY 1,861,530,572.14[42] Cash Flow - The net cash flow from operating activities was ¥49,811,446, a decrease of 142.06% compared to the previous year[9] - Cash flow from operating activities generated a net amount of $49.81 million, a significant improvement compared to a net outflow of $118.43 million in the previous period[63] - Cash flow from investment activities resulted in a net outflow of $143.15 million, worsening from a net outflow of $44.77 million in the previous period[64] - Cash flow from financing activities showed a net outflow of $27.20 million, compared to a net inflow of $36.79 million in the previous period[64] - The ending balance of cash and cash equivalents reached 195,182,490.60, compared to 135,613,927.14 at the end of the previous period, reflecting an increase of approximately 44%[66] Shareholder Information - The company has a total of 59,270 shareholders at the end of the reporting period[12] - The top ten shareholders hold a combined 52.27% of the company's shares, with the largest shareholder owning 16.15%[12] Business Developments - The company completed a business combination under common control, resulting in retrospective adjustments to financial statements[16] - The company completed the acquisition of 100% equity of Xinhua Chemical, making it a wholly-owned subsidiary[27] - The asset transfer procedures and related business registration for the acquisition have been completed[27] - The company received unconditional approval from the China Securities Regulatory Commission (CSRC) for the asset purchase and fundraising plan on July 20, 2017[27] - The company has been actively disclosing updates regarding the major asset restructuring process[27] - The company plans to continue promoting the major asset restructuring and will keep stakeholders informed of developments[27] Cost and Expenses - The total operating costs amounted to CNY 495,421,046.63, compared to CNY 390,701,401.29 in the prior period[48] - Management expenses increased to ¥170,049,248.60 from ¥155,292,777.66, an increase of 9.5%[54] - Financial expenses were reported at ¥1,021,906.95, compared to a gain of ¥3,023,498.77 in the previous period[54] - The company experienced a significant increase in asset impairment losses, which rose to ¥16,078,133.16 from ¥11,023,890.32, an increase of 45.8%[54] Market Outlook - The company anticipates that the profit margin will decline due to rising prices of raw materials, particularly cotton short fiber, despite stable sales of products like nitrocellulose and industrial pumps[32] - The net profit attributable to shareholders for 2017 is expected to range from 6,891,000 to 13,782,000 CNY, reflecting a decrease of 0.00% to -50.00% compared to the previous year[32] Miscellaneous - The company reported no violations regarding external guarantees or non-operating fund occupation by major shareholders during the reporting period[33][34] - There were no significant updates on new product development or market expansion strategies disclosed during the earnings call[36] - The company's third-quarter report was not audited[67]