深圳市兆新能源股份有限公司 2021 年第三季度报告 深圳市兆新能源股份有限公司 2021 年第三季度报告 2021 年 10 月 1 深圳市兆新能源股份有限公司 2021 年第三季度报告 证券代码：002256 证券简称：兆新股份 公告编号：2021-151 深圳市兆新能源股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导 性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、误 导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的 真实、准确、完整。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 单位：元 | 项目 | 本报告期金额 | 年初至报告期期末金 说明 额 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备 的冲销部分） | -118,089,071.54 | -118,091, ...

深圳市兆新能源股份有限公司 2021 年半年度报告全文 深圳市兆新能源股份有限公司 2021 年半年度报告 2021 年 08 月 1 深圳市兆新能源股份有限公司 2021 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人蔡继中、主管会计工作负责人张小虎及会计机构负责人(会计主 管人员)张小虎声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来计划等前瞻性陈述内容，均不构成本公司对任何投 资者的实质承诺，能否实现取决于市场状况变化等多种因素，存在很大的不确 定性，请投资者注意投资风险。《上海证券报》、《中国证券报》、《证券时报》、《证 券日报》和巨潮资讯网（www.cninfo.com.cn）为公司选定的信息披露媒体，公 司所有信息均以在上述选定媒体刊登的信息为准；经营中可能存在国内外经济 环境不确定的风险、光伏发电技术替代风险、光伏电站运营风险、价格波动风 险、人员流失风险、流动性 ...

深圳市兆新能源股份有限公司 2020 年年度报告全文 深圳市兆新能源股份有限公司 2020 年年度报告 2021 年 04 月 1 深圳市兆新能源股份有限公司 2020 年年度报告全文 亿兆一心 战则必胜 尊敬的各位兆新股份投资者： 天下风云出我辈，躬身入局敢为先。 首先，感谢各位投资者对兆新股份的信任与支持。2020 年是极其不平凡的一 年，而这一年对兆新股份而言更像是一场大考：不仅考出了公司新一届管理层 的责任担当和化解危机的能力，也考出了公司自我变革和新的发展契机。 回顾 2020 年初，兆新股份虽有优质的光伏资产，但受限于高息债务、股权 不稳定、历史纠纷等问题困扰，风雨飘摇。面对此番局面，我们肩负着员工、 合作伙伴以及众多长期投资兆新股份的投资者的信任。上任伊始，新任管理团 队勠力同心、躬身入局，抱定了解决上市公司遗留问题，带领上市公司重回正 常经营并重新赢得资本市场认可的信念。 回顾 2020 年的全年工作： 首先，公司确定了解决高息债务问题、解决历史遗留问题、聚焦主业的发展 方向，并在此基础上通过修订公司章程、董事会议事规则，为公司营造相对稳 定的董事会治理结构和经营环境，避免恶意收购、控制权之争 ...

深圳市兆新能源股份有限公司 2021 年第一季度报告全文 深圳市兆新能源股份有限公司 2021 年第一季度报告 2021 年 04 月 1 2 深圳市兆新能源股份有限公司 2021 年第一季度报告全文 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 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 80,234,911.84 | 76,916,585.56 | 4.31% | | 归属于上市公司股东的净利润（元） | -37,460,350.41 | -28,958,849.98 | -29.36% | | 归属于上市公司股东的扣除非经常性损 益的净利润（元） | -32,947,728.02 | -31,479,017.54 | -4.67% | | 经营活动产生的现金流量净额（元） | -1,023,741.06 | 24,616,428.26 | -104.16% | | 基本每股收益（元/股） | -0.02 | -0.02 | 0.00% | | 稀释 ...

深圳市兆新能源股份有限公司 2020 年年度报告全文 深圳市兆新能源股份有限公司 2020 年年度报告 2021 年 04 月 1 深圳市兆新能源股份有限公司 2020 年年度报告全文 亿兆一心 战则必胜 尊敬的各位兆新股份投资者： 天下风云出我辈，躬身入局敢为先。 首先，感谢各位投资者对兆新股份的信任与支持。2020 年是极其不平凡的一 年，而这一年对兆新股份而言更像是一场大考：不仅考出了公司新一届管理层 的责任担当和化解危机的能力，也考出了公司自我变革和新的发展契机。 回顾 2020 年初，兆新股份虽有优质的光伏资产，但受限于高息债务、股权 不稳定、历史纠纷等问题困扰，风雨飘摇。面对此番局面，我们肩负着员工、 合作伙伴以及众多长期投资兆新股份的投资者的信任。上任伊始，新任管理团 队勠力同心、躬身入局，抱定了解决上市公司遗留问题，带领上市公司重回正 常经营并重新赢得资本市场认可的信念。 回顾 2020 年的全年工作： 首先，公司确定了解决高息债务问题、解决历史遗留问题、聚焦主业的发展 方向，并在此基础上通过修订公司章程、董事会议事规则，为公司营造相对稳 定的董事会治理结构和经营环境，避免恶意收购、控制权之争 ...

[Important Notice](index=2&type=section&id=Section%20I%20Important%20Notice) This section confirms the truthfulness, accuracy, and completeness of the quarterly report by the company's management and accounting personnel - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's principal officer, head of accounting, and head of the accounting department all declare that the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=Section%20II%20Company%20Overview) This section provides an overview of the company's key financial performance and shareholder structure during the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=II.I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2020, the company's operating performance significantly declined, with revenue decreasing by 10.42% year-over-year and net profit attributable to shareholders turning from profit to a loss of **RMB 76.57 million**, a 158.42% year-over-year decrease, while total assets and net assets slightly shrank compared to the end of the previous year Key Financial Data (As of September 30, 2020) | Indicator | End of Current Period / Year-to-Date | End of Prior Year / Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet Items** | | | | | Total Assets (RMB) | 2,696,358,824.15 | 2,717,201,477.66 | -0.77% | | Net Assets Attributable to Shareholders (RMB) | 1,539,608,820.98 | 1,616,174,341.35 | -4.74% | | **Income Statement Items (Year-to-Date)** | | | | | Operating Revenue (RMB) | 294,282,087.93 | 328,519,281.70 | -10.42% | | Net Profit Attributable to Shareholders (RMB) | -76,565,520.37 | -29,628,607.40 | -158.42% | | Non-recurring Net Profit Attributable to Shareholders (RMB) | -78,173,678.56 | -39,843,000.00 | -96.20% | | **Cash Flow Statement Items (Year-to-Date)** | | | | | Net Cash Flow from Operating Activities (RMB) | 90,200,120.77 | 116,001,295.45 | -22.24% | | **Per Share Indicators (Year-to-Date)** | | | | | Basic Earnings Per Share (RMB/share) | -0.04 | -0.02 | -100.00% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 395,797.62 | | | Government Grants Recognized in Current Profit/Loss | 6,462,096.94 | | | Net Non-operating Income/Expenses | -5,093,508.36 | Primarily litigation preservation fees incurred in financing and settlement agreements | | Income Tax Impact | -156,228.01 | | | **Total** | **1,608,158.19** | -- | [Shareholder Information](index=4&type=section&id=II.II.%20Shareholder%20Information%20at%20Period%20End) As of the end of the reporting period, the company had **64,052** common shareholders, with controlling shareholder Chen Yongdi holding 26.05% of shares, almost entirely pledged and judicially frozen, and the top three shareholders collectively holding over 41% - As of the end of the reporting period, the company had **64,052** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Chen Yongdi | 26.05% | 490,406,779 | Pledged, Frozen | | Shenzhen Caihong Venture Capital Group Co., Ltd. | 9.12% | 171,704,859 | Pledged, Frozen | | Shenzhen Huitong Zhengyuan Equity Investment Partnership | 6.45% | 121,427,844 | Pledged | | Zhongrong International Trust Co., Ltd. | 4.66% | 87,800,000 | - | | Shenzhen Huaao Xing Investment Co., Ltd. | 1.19% | 22,353,400 | - | - Shareholder Chen Yongdi and Shenzhen Caihong Venture Capital Group Co., Ltd. have an affiliated relationship, constituting concerted parties[13](index=13&type=chunk) [Significant Matters](index=6&type=section&id=Section%20III%20Significant%20Matters) This section details significant financial changes, ongoing material events, and the utilization of raised funds during the reporting period [Analysis of Changes in Key Financial Data and Indicators](index=6&type=section&id=III.I.%20Analysis%20of%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators) During the reporting period, several financial indicators experienced significant changes, including a **90.86% decrease** in long-term receivables due to reclassification of financing lease contracts, a **465.54% surge** in non-current liabilities due within one year, and a **404.21% decline** in investment income due to losses from equity-accounted investees Balance Sheet Key Item Changes and Reasons | Item | Change (%) | Reason | | :--- | :--- | :--- | | Non-current Assets Due Within One Year | 100% | Reclassification due to some financing lease contracts and settlement agreements maturing within one year | | Long-term Receivables | -90.86% | Same as above | | Other Payables | 85.61% | Increase in interest payable | | Non-current Liabilities Due Within One Year | 465.54% | Reclassification due to some long-term borrowings and long-term payables maturing within one year | | Long-term Borrowings | -91.14% | Same as above | | Long-term Payables | -56.73% | Same as above | Income Statement Key Item Changes and Reasons (Year-to-Date) | Item | Change (%) | Reason | | :--- | :--- | :--- | | Investment Income | -404.21% | Due to losses from equity-accounted investees[19](index=19&type=chunk) | | Non-operating Income | -88.29% | Decrease in gains from disposal of non-current assets in the current period[19](index=19&type=chunk) | | Non-operating Expenses | 1355.59% | Related expenses incurred from financing and settlement agreements in the current period[20](index=20&type=chunk) | [Progress of Significant Matters](index=7&type=section&id=III.II.%20Progress%20of%20Significant%20Matters) The company disclosed progress on several significant matters, primarily involving the judicial freezing, enforcement, and auction of the controlling shareholder's shares, as well as litigation concerning a loan contract dispute with Shenzhen Koens Industrial Co., Ltd - During the reporting period, the company continued to disclose progress on the following significant matters: - Judicial freezing and release of rotation freezing of shareholder shares - Signing of a 'Settlement Agreement' with Dongguan Ruihe Investment Development Co., Ltd - Judicial enforcement and impending auction of some shares held by the controlling shareholder - Loan contract dispute between the company and Shenzhen Koens Industrial Co., Ltd - Impact of flood disaster on wholly-owned subsidiary[21](index=21&type=chunk) [Progress of Raised Funds Investment Projects](index=8&type=section&id=III.V.%20Progress%20of%20Raised%20Funds%20Investment%20Projects) The company's 2015 non-public offering raised approximately **RMB 1.52 billion** net, which has been substantially utilized, with a remaining balance of approximately **RMB 7.71 million** in the dedicated account as of September 30, 2020 - The net proceeds from the 2015 non-public offering amounted to **RMB 1,521,277,657.58**. As of September 30, 2020, a cumulative total of **RMB 1,550,052,146.40** has been utilized, with a remaining balance of **RMB 7,710,173.99** (including interest) in the dedicated account[25](index=25&type=chunk) [Financial Statements](index=10&type=section&id=Section%20IV%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements for the third quarter of 2020, along with explanations of adjustments and audit status [Financial Statement Details](index=10&type=section&id=IV.I.%20Financial%20Statement%20Details) This chapter provides the company's unaudited 2020 third-quarter consolidated and parent company financial statements, including the balance sheet, income statement, and cash flow statement, comprehensively reflecting the company's financial position, operating results, and cash flows during the period [Consolidated Balance Sheet](index=10&type=section&id=IV.I.1.%20Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets were **RMB 2.70 billion**, a slight decrease of 0.77% from the end of the previous year; total liabilities were **RMB 1.13 billion**, an increase of 5.23%; and total equity attributable to parent company owners was **RMB 1.54 billion**, a 4.74% decrease primarily due to expanded retained earnings losses Consolidated Balance Sheet Key Items (Unit: RMB) | Item | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 2,696,358,824.15 | 2,717,201,477.66 | | Total Liabilities | 1,132,879,181.02 | 1,076,597,712.23 | | Total Equity Attributable to Parent Company Owners | 1,539,608,820.98 | 1,616,174,341.35 | | Total Liabilities and Equity | 2,696,358,824.15 | 2,717,201,477.66 | [Consolidated Income Statement](index=15&type=section&id=IV.I.3.%20Consolidated%20Income%20Statement%20for%20the%20Period) In the first three quarters of 2020, the company achieved operating revenue of **RMB 294.28 million**, a 10.42% year-over-year decrease; net profit attributable to parent company shareholders was **RMB -76.57 million**, a significant loss expansion of 158.42% from **RMB -29.63 million** in the prior period, with a single-quarter net loss of **RMB 24.80 million**, expanding 217.23% year-over-year Consolidated Income Statement Key Items (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 294,282,087.93 | 328,519,281.70 | | Operating Profit | -65,352,593.00 | -24,810,722.99 | | Total Profit | -70,389,807.93 | -20,751,983.81 | | Net Profit Attributable to Parent Company Owners | -76,565,520.37 | -29,628,607.40 | Consolidated Income Statement Key Items (Third Quarter, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 113,215,413.65 | 121,811,667.72 | | Operating Profit | -22,547,046.91 | -8,380,873.28 | | Net Profit Attributable to Parent Company Owners | -24,801,836.69 | -7,818,248.36 | [Consolidated Cash Flow Statement](index=24&type=section&id=IV.I.7.%20Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) In the first three quarters of 2020, net cash flow from operating activities was **RMB 90.20 million**, a 22.24% year-over-year decrease; net cash outflow from investing activities was **RMB 21.19 million**, a 46.97% increase; net cash outflow from financing activities was **RMB 55.94 million**, a 50.18% decrease; and the period-end cash and cash equivalents balance was **RMB 50.45 million** Consolidated Cash Flow Statement Summary (Year-to-Date, Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 90,200,120.77 | 116,001,295.45 | | Net Cash Flow from Investing Activities | -21,194,456.91 | -14,420,456.98 | | Net Cash Flow from Financing Activities | -55,936,988.03 | -112,268,448.46 | | Net Increase in Cash and Cash Equivalents | 13,068,675.83 | -10,687,609.99 | | Cash and Cash Equivalents at Period End | 50,451,742.34 | 48,464,542.69 | [Explanation of Financial Statement Adjustments](index=28&type=section&id=IV.II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2020, the company adopted new revenue recognition standards, reclassifying **RMB 9.28 million** from 'Prepayments' to 'Contract Liabilities' in the opening balance sheet, which only impacts presentation and not retained earnings or net assets - Effective January 1, 2020, the company adopted the newly revised 'Accounting Standard for Business Enterprises No. 14—Revenue,' adjusting relevant items in the opening financial statements based on cumulative impact, with no adjustments to comparable period information[68](index=68&type=chunk) Consolidated Balance Sheet Opening Balance Adjustments (Unit: RMB) | Item | Before Adjustment (December 31, 2019) | After Adjustment (January 1, 2020) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Prepayments | 9,281,907.25 | 0.00 | -9,281,907.25 | | Contract Liabilities | 0.00 | 9,281,907.25 | 9,281,907.25 | [Audit Report](index=34&type=section&id=IV.III.%20Audit%20Report) The company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[74](index=74&type=chunk)

深圳市兆新能源股份有限公司 2020 年半年度报告全文 深圳市兆新能源股份有限公司 2020 年半年度报告 2020 年 08 月 1 深圳市兆新能源股份有限公司 2020 年半年度报告全文 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人蔡继中、主管会计工作负责人张小虎及会计机构负责人(会计主 管人员)张小虎声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中如有涉及未来计划等前瞻性陈述内容，均不构成本公司对任何投 资者的实质承诺，能否实现取决于市场状况变化等多种因素，存在很大的不确 定性，请投资者注意投资风险。 《上海证券报》、《中国证券报》、《证券时报》、《证券日报》和巨潮 资讯网（www.cninfo.com.cn）为公司选定的信息披露媒体，公司所有信息均以 在上述选定媒体刊登的信息为准；经营中可能存在国内外经济环境不确定的风 险、产业政策变化风险、技术替代风险、光伏发电站运营风险、价格波动风险、 人员流失 ...

[Important Notice](index=2&type=section&id=第一节%20重要提示) The company's board, supervisory board, and senior management assure the truthfulness, accuracy, and completeness of this quarterly report, assuming full legal responsibility - The company's board of directors, supervisory board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and assume corresponding legal liabilities[4](index=4&type=chunk) - The company's responsible person, chief accountant, and head of accounting department all declare that the financial statements in this quarterly report are true, accurate, and complete[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=第二节%20公司基本情况) 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=一、主要会计数据和财务指标) In Q1 2020, the company's operating revenue decreased by 9.39% year-on-year, and net profit attributable to shareholders expanded to a loss of RMB 28.96 million, down 11.84%, while net cash flow from operating activities significantly increased to RMB 24.62 million, up 1363.59% Key Financial Indicators for Q1 2020 | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 76,916,585.56 | 84,886,775.92 | -9.39% | | Net Profit Attributable to Shareholders (RMB) | -28,958,849.98 | -25,892,105.15 | -11.84% | | Net Cash Flow from Operating Activities (RMB) | 24,616,428.26 | -1,948,131.58 | 1,363.59% | | Basic Earnings Per Share (RMB/share) | -0.02 | -0.01 | -100.00% | | Weighted Average Return on Net Assets | -1.81% | -1.37% | -0.44% | | **Balance Sheet Indicators** | **End of Current Period** | **End of Prior Year** | **Period-end vs. Prior Year-end Change** | | Total Assets (RMB) | 2,697,221,924.45 | 2,717,201,477.66 | -0.74% | | Net Assets Attributable to Shareholders (RMB) | 1,587,215,311.56 | 1,616,174,341.35 | -1.79% | - During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 2.52 million**, primarily from government subsidies recognized in current profit and loss[9](index=9&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 end of the reporting period, the company had 90,472 common shareholders, with the largest shareholder, Chen Yongdi, holding 26.26% of shares, almost entirely pledged and frozen, and the top three shareholders collectively holding over 40% - As of the end of the reporting period, the company had **90,472** common shareholders[11](index=11&type=chunk) Top Three Shareholders' Shareholding Status | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Chen Yongdi | Domestic Natural Person | 26.26% | 494,406,779 | Pledged 486,007,100 shares, Frozen 494,406,779 shares | | Shenzhen Caihong Venture Capital Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 9.12% | 171,704,859 | Pledged 171,514,459 shares, Frozen 171,704,859 shares | | Shenzhen Huitong Zhengyuan Equity Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.45% | 121,427,844 | Pledged 121,427,844 shares | [Significant Events](index=6&type=section&id=第三节%20重要事项) This section details significant financial data changes, ongoing major events, and other important matters during the reporting period [Analysis of Major Financial Data Changes](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) During the reporting period, several financial indicators showed significant fluctuations, with net cash flow from operating activities surging by 1363.59% due to reduced cash payments for goods and receipt of photovoltaic subsidies, while investment income plummeted by 1953.28% due to reduced profits from associates, and net cash flow from investing activities decreased by 203.04% primarily due to payments for power station projects Major Financial Indicator Changes and Reasons | Statement Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1363.59% | Decrease in cash paid for goods and services, and receipt of local photovoltaic power generation subsidies | | Investment Income | -1953.28% | Reduced profit from associates in the current period | | Net Cash Flow from Investing Activities | -203.04% | Payment for power station projects in the current period | | Net Cash Flow from Financing Activities | -350.55% | Repayment of debt and interest in the current period, with no cash inflow from financing activities | [Progress of Significant Events](index=6&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 disclosed progress on several significant matters during the reporting period, including judicial transfer of major shareholder's shares, urban renewal of the Shiyan factory, bankruptcy liquidation of a 5%+ shareholder, judicial freezing of shareholder shares, and overdue company debts - The company continuously tracked and disclosed progress on several major events, including: - Partial judicial transfer of major shareholder's shares[16](index=16&type=chunk) - Relocation of the company's Shiyan factory and application for industrial park urban renewal unit plan[16](index=16&type=chunk) - A shareholder holding over 5% of shares being accepted for bankruptcy liquidation by the court[17](index=17&type=chunk) - Shareholder shares being judicially frozen and rotationally frozen[17](index=17&type=chunk) - Partial company debt overdue[17](index=17&type=chunk) [Other Significant Matters](index=7&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) During the reporting period, the company had no overdue unfulfilled commitments, did not engage in securities investment, wealth management, or derivative investments, and had no irregular external guarantees or non-operating fund occupation by controlling shareholders - During the reporting period, the company had no overdue unfulfilled commitments[18](index=18&type=chunk) - The company did not engage in securities investment, wealth management, or derivative investments during the reporting period, nor were there any irregular external guarantees or non-operating fund occupation by controlling shareholders[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Financial Statements](index=9&type=section&id=第四节%20财务报表) This section presents the company's consolidated balance sheet, income statement, cash flow statement, and audit opinion for the reporting period [Consolidated Balance Sheet](index=9&type=section&id=1、合并资产负债表) As of March 31, 2020, the company's total assets were **RMB 2.70 billion**, a slight decrease of 0.74% from the beginning of the year, with total liabilities at **RMB 1.09 billion** and total equity attributable to parent company owners at **RMB 1.59 billion**, down 1.79% from the beginning of the year, and non-current assets accounting for approximately 79% of total assets Key Items from Consolidated Balance Sheet (Unit: RMB) | Item | March 31, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,697,221,924.45 | 2,717,201,477.66 | -0.74% | | Total Liabilities | 1,085,750,630.36 | 1,076,597,712.23 | +0.85% | | Total Equity Attributable to Parent Company Owners | 1,587,215,311.56 | 1,616,174,341.35 | -1.79% | [Consolidated Income Statement](index=14&type=section&id=3、合并利润表) In Q1 2020, the company achieved operating revenue of **RMB 76.92 million**, a 9.39% year-on-year decrease, resulting in an operating loss of **RMB 26.86 million** due to total operating costs exceeding revenue and negative investment income, with net profit attributable to parent company owners at **-RMB 28.96 million**, an 11.84% increase in loss year-on-year Key Items from Consolidated Income Statement (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 76,916,585.56 | 84,886,775.92 | -9.39% | | Total Operating Costs | 103,440,942.90 | 113,998,095.86 | -9.26% | | Operating Profit | -26,858,379.00 | -24,077,545.52 | -11.55% | | Net Profit Attributable to Parent Company Owners | -28,958,849.98 | -25,892,105.15 | -11.84% | [Consolidated Cash Flow Statement](index=19&type=section&id=5、合并现金流量表) During the reporting period, the company's cash flow showed improved operating activities and outflows from investing and financing activities, with net cash flow from operating activities at **RMB 24.62 million**, a strong positive turnaround year-on-year, while net cash flows from investing and financing activities were outflows of **RMB 9.67 million** and **RMB 13.82 million**, respectively Key Items from Consolidated Cash Flow Statement (Unit: RMB) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 24,616,428.26 | -1,948,131.58 | | Net Cash Flow from Investing Activities | -9,670,956.08 | -3,191,277.00 | | Net Cash Flow from Financing Activities | -13,822,191.79 | -3,067,863.87 | | Net Increase in Cash and Cash Equivalents | 1,123,280.39 | -8,207,272.45 | [Audit Opinion](index=23&type=section&id=三、审计报告) The company's Q1 2020 financial report is unaudited - The company's first quarter report is unaudited[53](index=53&type=chunk)

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=第一节重要提示、目录和释义) The company faces a delisting risk warning, multiple operational risks, and plans no dividend distribution for 2019 - The company warns that its stock will be subject to a **delisting risk warning** following the 2019 annual report disclosure due to two consecutive years of audited net losses[5](index=5&type=chunk) - The company faces operational risks including economic uncertainties, policy changes, technological substitution, price fluctuations, and liquidity constraints[5](index=5&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or capitalize reserves for the 2019 fiscal year[7](index=7&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=第二节公司简介和主要财务指标) The company's performance declined significantly in 2019, with shrinking revenue and assets, and widening net losses [Key Accounting Data and Financial Indicators](index=8&type=section&id=六、主要会计数据和财务指标) The company's 2019 performance saw a sharp decline in revenue and a significant increase in net loss, reflecting overall operational and financial pressure | Indicator | 2019 | 2018 (Restated) | YoY Change | 2017 (Restated) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 431,282,903.18 | 603,628,902.58 | -28.55% | 646,897,719.44 | | Net Profit Attributable to Shareholders (Yuan) | -307,304,815.77 | -207,601,528.90 | -48.03% | 140,119,759.16 | | Net Profit Attributable to Shareholders (Non-recurring items deducted) (Yuan) | -317,062,527.40 | -203,183,493.95 | -56.05% | 113,871,502.20 | | Net Cash Flow from Operating Activities (Yuan) | 102,893,689.13 | 186,380,475.00 | -44.79% | 174,510,832.52 | | Basic Earnings Per Share (Yuan/Share) | -0.16 | -0.11 | -45.45% | 0.07 | | Weighted Average Return on Equity | -17.50% | -10.05% | -7.45% | 6.27% | | Total Assets (Yuan) | 2,717,201,477.66 | 3,085,516,665.49 | -11.94% | 3,845,301,006.05 | | Net Assets Attributable to Shareholders (Yuan) | 1,616,174,341.35 | 1,915,745,271.94 | -15.64% | 2,264,527,691.00 | [Key Quarterly Financial Indicators](index=9&type=section&id=八、分季度主要财务指标) The company incurred a substantial loss in the fourth quarter of 2019, which was the primary contributor to the full-year deficit | Indicator (Yuan) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 84,886,775.92 | 121,820,838.10 | 121,811,667.72 | 102,763,621.44 | | Net Profit Attributable to Shareholders | -25,892,105.15 | 4,081,746.11 | -7,818,248.36 | -277,676,208.37 | | Net Cash Flow from Operating Activities | -1,948,131.58 | 53,830,708.20 | 64,118,718.83 | -13,107,606.32 | [Non-recurring Gains and Losses](index=9&type=section&id=九、非经常性损益项目及金额) The company's non-recurring items in 2019 totaled 9.76 million Yuan, mainly from government subsidies, having a limited impact on the substantial annual loss | Item (Yuan) | 2019 Amount | 2018 Amount | 2017 Amount | | :--- | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 2,706,012.71 | -4,132,758.65 | -3,454,945.07 | | Government Grants Recognized in Current Profit/Loss | 10,924,944.66 | 11,623,964.49 | 20,860,524.60 | | Other Non-operating Income and Expenses | -1,312,337.29 | -403,063.46 | 300,951.90 | | **Total** | **9,757,711.63** | **-4,418,034.95** | **26,248,256.96** | [Company Business Summary](index=11&type=section&id=第三节公司业务概要) The company operates in new energy, fine chemicals, and biodegradable materials, with a core focus on the new energy sector [Main Business](index=11&type=section&id=一、报告期内公司从事的主要业务) The company's main business covers new energy, fine chemicals, and biodegradable materials, with new energy being the core segment - The company's business is divided into three main categories: new energy, fine chemicals, and biodegradable materials[29](index=29&type=chunk) - The new energy business is subdivided into: - **Solar photovoltaic power generation**: Owns and is constructing photovoltaic power stations with a total capacity of 262.5MW - **Deep processing of lithium salt products**: Holds a stake in Shanghai Zhongli, with an annual production capacity of 8,000 tons of battery-grade lithium salt products - **Lithium extraction from salt lakes**: Holds a stake in Jintai Potash Fertilizer, which owns the Balunmahai Salt Lake resources - **Energy storage**: Subsidiary Beijing Baineng is engaged in the zinc-bromine energy storage battery business - **New energy vehicle charging stations**: Invests in and operates through a stake in Zhaowei New Energy[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - The fine chemicals business operates on a model of in-house R&D and authorized contract manufacturing, with products including eco-friendly functional coatings and green household products[33](index=33&type=chunk)[36](index=36&type=chunk) - The biodegradable materials business follows an integrated model of R&D, production, and sales, with products primarily exported to the US, Canada, and Russia[34](index=34&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Major Changes in Key Assets](index=14&type=section&id=二、主要资产重大变化情况) During the reporting period, equity assets decreased significantly by 216 million Yuan due to fair value changes and impairment losses | Key Asset | Description of Major Change | | :--- | :--- | | Equity Assets | Ended the period at 515 million Yuan, a decrease of 216 million Yuan from the beginning, mainly due to fair value changes in other non-current financial assets and impairment of long-term equity investments | | Fixed Assets | Ended the period at 1.40 billion Yuan, a decrease of 77 million Yuan from the beginning, primarily due to depreciation for the period | | Intangible Assets | Ended the period at 56 million Yuan, a decrease of 3.26 million Yuan from the beginning, primarily due to amortization for the period | [Core Competitiveness Analysis](index=14&type=section&id=三、核心竞争力分析) The company's core competitiveness lies in technological innovation, brand recognition, market reach, management, and cost advantages - The company's core competencies include: - **Technological Innovation**: Possesses a municipal-level enterprise technology center, 40 authorized patents (including 25 invention patents), and participates in setting national and industry standards - **Brand Advantage**: Holds honors such as "China Well-known Trademark" and "Guangdong Famous Trademark" - **Market Advantage**: Has established a nationwide marketing and supply network with global reach - **Management Advantage**: Possesses extensive management experience and is certified under ISO9001, ISO14001, and other systems - **Cost Advantage**: Achieves lower overall costs through economies of scale, enhancing bargaining power in raw material procurement[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Discussion and Analysis of Operations](index=16&type=section&id=第四节经营情况讨论与分析) The company's 2019 operations were under pressure due to factory relocation and financing difficulties, leading to a significant decline in revenue and profit [Overview](index=16&type=section&id=一、概述) In 2019, the company's operating revenue and net profit declined significantly due to factory relocation, financing challenges, and underperforming investments | Indicator | 2019 Amount | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 431 million Yuan | -28.55% | | Net Profit Attributable to Shareholders | -307 million Yuan | -48.03% | [Main Business Analysis](index=16&type=section&id=二、主营业务分析) The fine chemicals segment's revenue decline was the primary driver of the overall revenue drop, while photovoltaic power generation became the largest revenue source 2019 Operating Revenue Composition (by Industry) | Industry Segment | 2019 Amount (Yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Fine Chemicals | 183,029,004.99 | 42.44% | -37.18% | | New Materials | 36,803,404.40 | 8.53% | 21.34% | | Photovoltaic Power Generation | 211,450,493.79 | 49.03% | -8.76% | | Photovoltaic Power Equipment | 0.00 | 0.00% | -100.00% | 2019 Gross Margin by Major Industry | Industry Segment | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Fine Chemicals | 183,029,004.99 | 135,843,483.35 | 25.78% | -1.63% | | Photovoltaic Power Generation | 211,450,493.79 | 95,720,998.42 | 54.73% | -4.47% | - Production and sales volumes in the fine chemicals industry dropped significantly, mainly due to factory relocation and a shift to a commissioned processing model[64](index=64&type=chunk) - Due to factory relocation, the production model for the fine chemicals business temporarily shifted from self-production to authorized contract manufacturing[70](index=70&type=chunk) [Investment Analysis](index=25&type=section&id=五、投资状况分析) Several fundraising projects were altered or terminated due to market changes, with a large portion of the proceeds reallocated to supplement working capital - The company raised 1.521 billion Yuan from a private placement in 2015; as of the report date, **95.97%** of the funds (1.46 billion Yuan) had their intended use changed[91](index=91&type=chunk)[92](index=92&type=chunk) - Multiple original investment projects were significantly altered or terminated due to factors like new photovoltaic policies, falling lithium salt prices, and financing difficulties[97](index=97&type=chunk)[98](index=98&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Future Outlook](index=35&type=section&id=九、公司未来发展的展望) The company plans to focus on the upstream electric vehicle industry chain while managing risks from economic conditions, policy changes, and liquidity constraints - **Future Strategy**: Maintain stable growth in traditional businesses while focusing on lithium extraction from salt lakes and deep processing of lithium salt products for the upstream electric vehicle industry chain[119](index=119&type=chunk) - **2020 Business Plan**: - **Photovoltaics**: Optimize operations and maintenance of existing power stations to improve efficiency - **Lithium Battery Materials**: Prudently advance lithium resource development and processing - **Fine Chemicals**: Upgrade traditional business lines, focusing on high-value-added daily chemical and cosmetic aerosol products - **Biodegradable Materials**: Expand market share in disposable tableware and film bag products - **New Business**: Explore investment, trade, and leasing opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area[120](index=120&type=chunk)[121](index=121&type=chunk)[117](index=117&type=chunk) - **Key Risks**: - **Policy Changes**: Reductions in photovoltaic feed-in tariffs and adjustments in lithium battery industry policies may adversely affect earnings - **Technological Substitution**: Risk of being replaced by new technologies or materials in the photovoltaic and lithium battery sectors - **Price Volatility**: Fluctuations in the market prices of raw materials, lithium salt products, and potash fertilizer may impact performance - **Liquidity Risk**: Persistent financing pressures may exacerbate capital constraints[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Important Matters](index=40&type=section&id=第五节重要事项) The company faced significant issues including unfulfilled performance commitments, a "qualified opinion" audit report, and major accounting error corrections [Performance of Commitments](index=41&type=section&id=三、承诺事项履行情况) Affiliated companies failed to meet their 2019 performance commitments due to market price drops and financing issues Performance Commitment Completion Status | Promisor | Forecast Period | Forecasted Performance (10,000 Yuan) | Actual Performance (10,000 Yuan) | Reason for Shortfall | | :--- | :--- | :--- | :--- | :--- | | Shanghai Zhongli Industrial Co, Ltd | 2019 | 9,375 | -1,261.69 | Sharp decline in lithium carbonate prices; financing difficulties limiting production capacity | | Qinghai Jintai Potash Fertilizer Co, Ltd | 2019 | 25,000 | 2,456.16 | Sharp decline in lithium carbonate and lithium chloride prices; financing difficulties delaying capacity expansion | [Explanation of "Non-standard Audit Report"](index=45&type=section&id=五、董事会、监事会、独立董事（如有）对会计师事务所本报告期“非标准审计报告”的说明) The auditor issued a qualified opinion with a material uncertainty related to going concern, citing an irregular transaction and consecutive losses - **Qualified Opinion Matter**: A 34.75 million Yuan accounts receivable factoring transaction in 2017 was deemed to lack commercial substance, and the auditor could not obtain sufficient evidence on its recoverability[142](index=142&type=chunk) - **Material Uncertainty Related to Going Concern**: - The company incurred **net losses for two consecutive years** in 2018 and 2019 - Major operating assets are subject to restricted rights - Weak financing capacity and overdue borrowings[143](index=143&type=chunk) [Major Accounting Error Corrections](index=48&type=section&id=七、报告期内发生重大会计差错更正需追溯重述的情况说明) The company retrospectively restated prior-period financial statements to correct significant accounting errors related to impairment, revenue recognition, and a factoring transaction - Key accounting error corrections involved: 1. Recognizing additional impairment for a suspended photovoltaic power project 2. Reversing previously recognized national subsidy revenue for a photovoltaic project that did not receive subsidy approval 3. Adjusting for a 2017 accounts receivable factoring transaction that lacked commercial substance[156](index=156&type=chunk) Impact of Accounting Error Corrections on 2018 Financial Statements | Statement Item | Before Adjustment (Yuan) | After Adjustment (Yuan) | Adjustment Amount (Yuan) | | :--- | :--- | :--- | :--- | | Retained Earnings | -19,471,814.75 | -37,040,981.60 | -17,569,166.85 | | Asset Impairment Loss | 225,760,046.66 | 229,864,435.02 | 4,104,388.36 | | Construction in Progress | 35,860,729.24 | 30,213,329.24 | -5,647,400.00 | | Accounts Receivable | 356,189,164.78 | 376,699,721.80 | 20,510,557.02 | [Major Related-Party Transactions](index=52&type=section&id=十六、重大关联交易) No major related-party transactions related to daily operations, asset acquisitions, or sales occurred during the reporting period - The company did not engage in any material related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint investments, or other significant related-party dealings during the reporting period[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk) [Changes in Share Capital and Shareholders](index=59&type=section&id=第六节股份变动及股东情况) The company's share structure changed due to the release of restricted shares, while the controlling shareholder faces high risk with nearly all shares pledged and frozen [Changes in Share Capital](index=59&type=section&id=一、股份变动情况) The company's total share capital remained unchanged, but the proportion of unrestricted shares increased as restricted shares were released | Share Type | Quantity Before Change | Quantity After Change | Post-Change Ratio | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 633,040,131 | 487,154,600 | 25.88% | | II. Unrestricted Shares | 1,249,371,741 | 1,395,257,272 | 74.12% | | III. Total Shares | 1,882,411,872 | 1,882,411,872 | 100.00% | [Shareholders and Actual Controller](index=61&type=section&id=三、股东和实际控制人情况) The controlling shareholder's shares are almost entirely pledged and frozen, posing a significant control risk, while a major shareholder has entered bankruptcy proceedings Top Five Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Chen Yongdi | Domestic Natural Person | 26.26% | 494,406,779 | Pledged: 494M, Frozen: 494M | | Shenzhen Caihong Venture Capital Group Co, Ltd | Domestic Non-state-owned Legal Entity | 13.79% | 259,504,859 | Pledged: 172M, Frozen: 260M | | Shenzhen Huitong Zhengyuan Equity Investment Fund | Domestic Non-state-owned Legal Entity | 6.45% | 121,427,844 | Pledged: 121M | | Shenzhen Baoxin Financial Services Co, Ltd | Domestic Non-state-owned Legal Entity | 5.00% | 94,120,845 | None | | CR SZITIC Trust Co, Ltd - Guanghuataifeng No.1 | Other | 1.33% | 25,066,744 | None | - The controlling shareholder, Mr. Chen Yongdi, has **99.92%** of his shares pledged and **100%** judicially frozen[166](index=166&type=chunk)[204](index=204&type=chunk) - Caihong Group, a shareholder with over 5% ownership, has entered bankruptcy proceedings[193](index=193&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=68&type=section&id=第九节董事、监事、高级管理人员和员工情况) The company experienced frequent high-level management changes, indicating instability, while its workforce is primarily composed of production staff [Changes in Directors, Supervisors, and Senior Management](index=69&type=section&id=二、公司董事、监事、高级管理人员变动情况) The company experienced frequent turnover in its senior management team, including the departure of the Chairman, General Manager, and Board Secretary - Several key executives departed, including: - Former Chairman Zhang Wen resigned on March 13, 2020 - Former General Manager Zhang Wen was dismissed on April 12, 2020 - Former Vice Chairman Zhai Jianfeng resigned on April 8, 2020 - Former Board Secretary Jin Hongying was dismissed on April 7, 2020 - Former Supervisor Wang Yun resigned on December 31, 2019[220](index=220&type=chunk) [Employee Situation](index=73&type=section&id=五、公司员工情况) As of the end of the reporting period, the company had 474 employees, with production personnel constituting the largest group Employee Professional Composition | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 270 | | Sales Personnel | 58 | | Technical Personnel | 56 | | Finance Personnel | 17 | | Administrative Personnel | 73 | | **Total** | **474** | [Corporate Governance](index=75&type=section&id=第十节公司治理) The company's internal controls have major deficiencies in both financial and non-financial reporting, leading to an adverse opinion from auditors [Internal Control Evaluation Report](index=79&type=section&id=九、内部控制评价报告) The company's internal controls have major financial and non-financial deficiencies, resulting in an adverse opinion on their effectiveness from the auditor - The auditor issued an **adverse opinion** on the effectiveness of the company's internal control over financial reporting[261](index=261&type=chunk) - Major deficiencies in internal control over financial reporting include: 1. **Factoring business lacking commercial substance**: A transaction was conducted to reduce bad debt provisions, with funds effectively originating from the company itself 2. **Design flaws in financing approval processes**: Multiple short-term borrowings from non-financial institutions and individuals were not approved by the board of directors[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[261](index=261&type=chunk) - Deficiencies in internal control over non-financial reporting include: 1. **Irregular guarantees for the controlling shareholder**: A 20 million Yuan deposit was pledged as a guarantee for the controlling shareholder without proper approval 2. **Non-compliant management of insider information registration** 3. **Deficiencies in records management internal controls**: Important archival materials were improperly destroyed[255](index=255&type=chunk)[256](index=256&type=chunk) [Financial Report](index=84&type=section&id=第十二节%20财务报告) The company's financial statements received a qualified audit opinion due to concerns about asset recoverability and significant uncertainty about its ability to continue as a going concern [Audit Report](index=84&type=section&id=一、审计报告) The auditor issued a qualified opinion on the 2019 financial statements, citing issues with an accounts receivable's recoverability and a material uncertainty related to going concern - **Audit Opinion Type**: Qualified opinion[266](index=266&type=chunk) - **Basis for Qualified Opinion**: Inability to obtain sufficient and appropriate audit evidence regarding the recoverability of an accounts receivable related to a 2017 factoring transaction that lacked commercial substance[267](index=267&type=chunk) - **Material Uncertainty Related to Going Concern**: The report highlights that consecutive losses in 2018 and 2019, restricted major operating assets, weak financing capacity, and overdue borrowings indicate a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern[268](index=268&type=chunk) [Financial Statements](index=86&type=section&id=二、财务报表) Financial statements reveal a deteriorating financial position, with declining assets and equity, widening losses, and strained cash flows Consolidated Balance Sheet Highlights (Unit: Yuan) | Item | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total Assets | 2,717,201,477.66 | 3,085,516,665.49 | | Total Liabilities | 1,076,597,712.23 | 1,143,110,550.81 | | Equity Attributable to Parent Company Owners | 1,616,174,341.35 | 1,915,745,271.94 | Consolidated Income Statement Highlights (Unit: Yuan) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Total Operating Revenue | 431,282,903.18 | 603,628,902.58 | | Operating Profit | -299,607,332.51 | -217,260,239.49 | | Net Profit | -309,536,234.43 | -221,947,408.41 | | Net Profit Attributable to Parent Company Owners | -307,304,815.77 | -207,601,528.90 | Consolidated Cash Flow Statement Highlights (Unit: Yuan) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 102,893,689.13 | 186,380,475.00 | | Net Cash Flow from Investing Activities | 6,157,396.25 | -234,865,363.70 | | Net Cash Flow from Financing Activities | -130,820,171.55 | -590,993,606.63 | | Net Increase in Cash and Cash Equivalents | -21,769,086.17 | -639,478,495.33 | [Events After the Balance Sheet Date](index=194&type=section&id=十四、资产负债表日后事项) Subsequent to the reporting period, the company experienced multiple financing defaults, further intensifying its liquidity crisis - The company defaulted on its 650 million Yuan financing with Dongguan Trust, and the total outstanding debt of 553 million Yuan has been transferred and is subject to collection[687](index=687&type=chunk)[688](index=688&type=chunk) - Two loans from Shenzhen Koens Industrial Co, Ltd, totaling 85 million Yuan, are overdue, leading to legal action and enforcement proceedings[689](index=689&type=chunk)[690](index=690&type=chunk)[691](index=691&type=chunk) - Subsidiary Xinyu Deyou defaulted on lease payments to Guangxi Financial Leasing, and the company, as guarantor, is required to fulfill its guarantee obligations[691](index=691&type=chunk)[692](index=692&type=chunk)

[Section I Important Notice, Table of Contents and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) This section provides critical disclaimers from management, highlights the auditor's non-standard opinion, and addresses the company's delisting risk [Important Notice](index=2&type=section&id=Important%20Notice) Multiple directors and executives disclaim report accuracy due to unverified transactions, internal control flaws, and past illegal guarantees, leading to an auditor's disclaimer and delisting risk - Zhongqin Wanxin Certified Public Accountants issued a **disclaimer of opinion** on the company's audit report and an **adverse opinion** on its internal control attestation report[4](index=4&type=chunk)[6](index=6&type=chunk) - The company faces a **delisting risk warning** after the annual report disclosure due to consecutive negative audited net profits in fiscal years 2018 and 2019[4](index=4&type=chunk) - Multiple directors, supervisors, and senior executives cannot guarantee the report's truthfulness, accuracy, or completeness, or express an opinion, disclaiming individual and joint legal liability[3](index=3&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - The company plans **no cash dividends**, bonus shares, or capital increase from capital reserves[7](index=7&type=chunk) [Section II Company Profile and Key Financial Indicators](index=9&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's key financial performance and position, highlighting significant declines in revenue and net profit for 2019 [VI. Key Accounting Data and Financial Indicators](index=10&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2019, the company's operating performance significantly declined, with revenue down 28.55% and net loss attributable to shareholders expanding to -RMB 275 million, marking a second consecutive year of losses 2019 Key Financial Data | Indicator | 2019 | 2018 (Adjusted) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 431,282,903.18 | 603,628,902.58 | -28.55% | | Net Profit Attributable to Listed Company Shareholders (RMB) | -275,183,761.51 | -200,695,240.10 | -37.12% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) (RMB) | -284,941,473.14 | -196,277,205.15 | -45.17% | | Net Cash Flow from Operating Activities (RMB) | 102,893,689.13 | 186,380,475.00 | -44.79% | | Basic Earnings Per Share (RMB/share) | -0.15 | -0.11 | -36.36% | | Weighted Average Return on Net Assets | -15.41% | -9.63% | -5.67% | | Total Assets (RMB) | 2,749,322,531.92 | 3,098,666,108.47 | -11.27% | | Net Assets Attributable to Listed Company Shareholders (RMB) | 1,648,295,395.61 | 1,928,894,714.92 | -14.55% | 2019 Quarterly Key Financial Indicators (RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 84,886,775.92 | 121,820,838.10 | 121,811,667.72 | 102,763,621.44 | | Net Profit Attributable to Listed Company Shareholders | -25,892,105.15 | 4,081,746.11 | -7,818,248.36 | -245,555,154.11 | [Section III Company Business Overview](index=13&type=section&id=Section%20III%20Company%20Business%20Overview) This section outlines the company's core business segments, including new energy, fine chemicals, and biodegradable materials, along with their respective operating models [I. Main Businesses Engaged in During the Reporting Period](index=13&type=section&id=I.%20Main%20Businesses%20Engaged%20in%20During%20the%20Reporting%20Period) The company's main businesses span new energy, fine chemicals, and biodegradable materials, with distinct operating models for each, including solar PV power generation, lithium salt processing, and authorized contract manufacturing - The company's main businesses are categorized into three types: **new energy**, **fine chemicals**, and **biodegradable materials**[32](index=32&type=chunk) - New energy business covers solar photovoltaic power generation, deep processing of lithium salt products, lithium extraction from salt lakes, energy storage, and new energy vehicle charging stations[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) Photovoltaic Power Station Status | Business | Scale | Status | | :--- | :--- | :--- | | Solar Photovoltaic Power Generation | 262.5 MW | Grid-connected and Under Construction | [II. Significant Changes in Major Assets](index=16&type=section&id=II.%20Significant%20Changes%20in%20Major%20Assets) During the reporting period, the company's major assets underwent significant changes, with equity assets decreasing by RMB 184 million due to fair value changes and impairment, while fixed and intangible assets declined from depreciation and amortization Major Asset Changes | Major Asset | Period-End Amount (RMB 10,000) | Change from Period-Start (RMB 10,000) | Primary Reason | | :--- | :--- | :--- | :--- | | Equity Assets | 54,737.49 | -18,401.25 | Fair value changes of other non-current financial assets and impairment of long-term equity investments | | Fixed Assets | 139,925.65 | -7,737.92 | Depreciation | | Intangible Assets | 5,609.42 | -325.68 | Amortization | [III. Core Competitiveness Analysis](index=16&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core competencies are rooted in technological innovation, brand strength, market reach, operational management, and cost control, supported by patents and industry standards participation - The company's core competitive advantages are in **technological innovation**, **brand**, **market**, **operational management**, and **cost**[50](index=50&type=chunk) - In technological innovation, the company holds **40 authorized patents** (including 25 invention patents) and has participated as a primary drafting unit in multiple national and industry standards[51](index=51&type=chunk) - Regarding brand, the company holds honors such as **'China Well-known Trademark'** and **'Guangdong Famous Trademark'**[52](index=52&type=chunk)[53](index=53&type=chunk) [Section IV Management Discussion and Analysis](index=18&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational performance, business segments, investment activities, and future outlook, alongside associated risks [I. Overview](index=18&type=section&id=I.%20Overview) In 2019, the company's overall operating performance declined significantly, with total operating revenue falling by 28.55% and net loss attributable to shareholders expanding by 37.12% to -RMB 275 million, primarily due to factory relocation and financing challenges 2019 Operating Performance Overview | Indicator | 2019 Amount (RMB) | Year-on-Year Change | | :--- | :--- | :--- | | Total Operating Revenue | 431,282,903.18 | -28.55% | | Net Profit Attributable to Listed Company Shareholders | -275,183,761.51 | -37.12% | - The performance decline was primarily influenced by **factory relocation**, an **unimproved financing environment**, and **underperforming associate companies**[59](index=59&type=chunk) [II. Main Business Analysis](index=18&type=section&id=II.%20Main%20Business%20Analysis) The company's main business revenue significantly decreased, with fine chemicals revenue down 37.18% due to factory relocation and a shift to contract manufacturing, and photovoltaic power generation revenue down 8.76% 2019 Operating Revenue Composition (By Industry) | Industry | Operating Revenue (RMB) | Proportion of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Fine Chemical Industry | 183,029,004.99 | 42.44% | -37.18% | | New Materials Industry | 36,803,404.40 | 8.53% | 21.34% | | Photovoltaic Power Generation Industry | 211,450,493.79 | 49.03% | -8.76% | | Photovoltaic Power Generation Equipment Industry | 0.00 | 0.00% | -100.00% | - The decline in fine chemical industry production and sales was primarily due to **factory relocation** and a shift to an **outsourced contract manufacturing model**[68](index=68&type=chunk)[74](index=74&type=chunk) - Sales to the **top five customers** accounted for **32.19%** of total annual sales[75](index=75&type=chunk) [V. Investment Status Analysis](index=26&type=section&id=V.%20Investment%20Status%20Analysis) The company significantly altered its 2015 private placement funds, with 95.97% of the RMB 1.521 billion originally earmarked for photovoltaic projects and acquisitions being reallocated, primarily to supplement working capital due to policy changes and financing difficulties - The total proceeds from the 2015 non-public offering were **RMB 1.521 billion**, with **RMB 1.46 billion** (or **95.97%** of the total) having its use changed as of the reporting period end[96](index=96&type=chunk) - Multiple original photovoltaic projects and equity acquisition projects were terminated due to **policy changes** (new PV policies), **lower-than-expected investment returns**, and **company financing difficulties**, with most remaining funds permanently used to supplement working capital[101](index=101&type=chunk)[102](index=102&type=chunk)[109](index=109&type=chunk) [IX. Outlook on the Company's Future Development](index=37&type=section&id=IX.%20Outlook%20on%20the%20Company%27s%20Future%20Development) The company plans to transition its photovoltaic business to asset management, maintain caution in lithium battery materials, expand fine chemicals into daily consumer products, and grow biodegradable materials, while facing risks from economic uncertainty, policy changes, technological substitution, price volatility, and liquidity - Future development strategy includes transforming the PV business into **'management output and O&M expert'**, maintaining caution in upstream lithium battery material investments, expanding fine chemicals into **daily chemical and beauty products**, and increasing market share for biodegradable materials[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - Key risks include **changes in industrial policies** (PV tariff subsidy reductions, lithium battery industry policy adjustments), **technological substitution risk**, **raw material and product price fluctuation risk**, **intensified market competition risk**, and **liquidity risk**[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) [Section V Significant Matters](index=42&type=section&id=Section%20V%20Significant%20Matters) This section details critical issues including the non-standard audit opinion, major accounting error corrections, significant litigation, and the integrity status of the controlling shareholder [V. Explanations by the Board of Directors, Supervisory Board, and Independent Directors (if any) on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=47&type=section&id=V.%20Explanations%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Independent%20Directors%20%28if%20any%29%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) The board, supervisory board, and independent directors explained the 'disclaimer of opinion' audit report, citing insufficient evidence for impairment, suspicious factoring transactions, unresolved litigation, and the board's inability to guarantee financial statement accuracy - Reason for disclaimer of opinion 1: Insufficient basis for the **RMB 50 million impairment provision** for the long-term equity investment in Qinghai Jintai Potash Fertilizer[145](index=145&type=chunk) - Reason for disclaimer of opinion 2: A 2017 domestic non-recourse accounts receivable factoring business by a subsidiary was deemed by auditors to **lack commercial substance**, with financing funds effectively originating from Zhaoxin Co., Ltd[146](index=146&type=chunk) - Reason for disclaimer of opinion 3: The company is involved in multiple **debt defaults, lawsuits, and investment performance compensation matters** without final conclusions[146](index=146&type=chunk) - Reason for disclaimer of opinion 4: The company's board of directors **cannot guarantee the truthfulness, accuracy, or completeness** of the financial statements and notes provided[147](index=147&type=chunk) [VII. Explanation of Major Accounting Error Corrections Requiring Retrospective Restatement During the Reporting Period](index=50&type=section&id=VII.%20Explanation%20of%20Major%20Accounting%20Error%20Corrections%20Requiring%20Retrospective%20Restatement%20During%20the%20Reporting%20Period) The company retrospectively restated prior period accounting errors, including additional asset impairment for a halted PV project and reversal of unearned government subsidies for another, impacting 2017 and 2018 financial statements - Pre-period error correction and impairment testing for a **halted photovoltaic project** of subsidiary Huzhou Yongju[155](index=155&type=chunk) - Pre-period error correction for subsidiary Hefei Shengri's recognition of **national subsidy electricity revenue** despite not obtaining subsidy quotas[156](index=156&type=chunk) Impact of Accounting Error Corrections on 2017 Financial Statement Items | Statement Item | Before Adjustment (RMB) | After Adjustment (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Operating Revenue | 654,119,343.75 | 646,897,719.45 | -7,221,624.31 | [XII. Significant Litigation and Arbitration Matters](index=52&type=section&id=XII.%20Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in 12 significant lawsuits and arbitration cases as a defendant or respondent, primarily concerning bill disputes, lease contracts, and construction contracts, totaling approximately RMB 104 million with an estimated potential liability of RMB 46.91 million - During the reporting period, the company was involved in **12 lawsuits/arbitrations** as a defendant/respondent, with a total amount involved of approximately **RMB 104 million**, potentially forming liabilities of **RMB 46.91 million**[162](index=162&type=chunk) [XIV. Integrity Status of the Company and Its Controlling Shareholder, Actual Controller](index=53&type=section&id=XIV.%20Integrity%20Status%20of%20the%20Company%20and%20Its%20Controlling%20Shareholder%2C%20Actual%20Controller) The controlling shareholder, Mr. Chen Yongdi, faces severe integrity issues, with nearly all his shares pledged and judicially frozen, and his controlled entity, Caihong Group, having entered bankruptcy proceedings - Controlling shareholder Mr. Chen Yongdi's shares in the company are **99.92% pledged** and **100% judicially frozen**[164](index=164&type=chunk) - Caihong Group, a shareholder holding over 5% (controlled by Mr. and Mrs. Chen Yongdi), has **entered bankruptcy proceedings**[164](index=164&type=chunk) [Section VI Share Changes and Shareholder Information](index=61&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital structure, including changes in restricted and unrestricted shares, and provides an overview of major shareholders and the controlling shareholder's status [I. Share Change Status](index=61&type=section&id=I.%20Share%20Change%20Status) The company's total share capital remained unchanged at 1.88 billion shares, but restricted shares decreased by 145.89 million due to expiration of lock-up periods and executive departures, increasing unrestricted shares accordingly Share Change Status (Shares) | Share Type | Before This Change | After This Change | Change Amount | | :--- | :--- | :--- | :--- | | Restricted Shares | 633,040,131 | 487,154,600 | -145,885,531 | | Unrestricted Shares | 1,249,371,741 | 1,395,257,272 | +145,885,531 | | **Total Share Capital** | **1,882,411,872** | **1,882,411,872** | **0** | - Controlling shareholder Mr. Chen Yongdi voluntarily committed to extend the lock-up period for his **486 million restricted shares**, originally expiring on May 30, 2019, for another year until May 29, 2020[138](index=138&type=chunk)[201](index=201&type=chunk) [III. Shareholder and Actual Controller Information](index=63&type=section&id=III.%20Shareholder%20and%20Actual%20Controller%20Information) As of the reporting period, the company had 90,297 common shareholders, with controlling shareholder Mr. Chen Yongdi holding 26.26% of shares, almost entirely pledged and frozen, and his controlled entity, Caihong Group, in bankruptcy, indicating significant financial and legal risks at the controlling shareholder level Top Two Shareholders' Holdings and Share Status | Shareholder Name | Shareholding Percentage | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Chen Yongdi | 26.26% | 494,406,779 | Pledged 99.92%, Frozen 100% | | Shenzhen Caihong Venture Capital Group Co., Ltd. | 13.79% | 259,504,859 | Pledged, Frozen, Entered Bankruptcy Proceedings | [Section IX Directors, Supervisors, Senior Management, and Employees](index=69&type=section&id=Section%20IX%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) This section outlines the composition and changes within the company's board of directors, supervisory board, and senior management, along with general employee information [II. Changes in the Company's Directors, Supervisors, and Senior Management](index=70&type=section&id=II.%20Changes%20in%20the%20Company%27s%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company experienced frequent changes in its senior management during and after the reporting period, with multiple key executives including the chairman, general manager, and board secretary departing, indicating management instability - Multiple senior executives, including the company's **chairman, general manager, vice chairman, board secretary, and supervisor**, experienced changes during and after the reporting period[219](index=219&type=chunk) [Section X Corporate Governance](index=77&type=section&id=Section%20X%20Corporate%20Governance) This section details the company's corporate governance structure, focusing on internal control deficiencies and the auditor's adverse opinion on internal controls [IX. Internal Control Evaluation Report](index=81&type=section&id=IX.%20Internal%20Control%20Evaluation%20Report) The company's internal control evaluation report identified three significant financial reporting internal control deficiencies, leading the accounting firm to issue an adverse opinion on the effectiveness of internal controls - The company's internal control self-evaluation report identified **three material weaknesses** in financial reporting internal controls[250](index=250&type=chunk)[255](index=255&type=chunk) - Material weaknesses include: **suspected fictitious factoring transactions**, **design deficiencies in fundraising approval processes**, and **insufficient basis for impairment provisions** on certain investment projects[250](index=250&type=chunk)[251](index=251&type=chunk) - The accounting firm issued an **adverse opinion** on the effectiveness of the company's financial reporting internal controls as of December 31, 2019[256](index=256&type=chunk) [Section XII Financial Report](index=85&type=section&id=Section%20XII%20Financial%20Report) This section presents the company's audited financial statements for 2019, including the auditor's disclaimer of opinion and detailed financial performance and position data [I. Audit Report](index=85&type=section&id=I.%20Audit%20Report) Zhongqin Wanxin Certified Public Accountants issued a disclaimer of opinion on the company's 2019 financial statements, citing issues with investment impairment, factoring business substance, unresolved litigation, and the board's inability to guarantee financial statement accuracy - The audit opinion type is a **'disclaimer of opinion'**[261](index=261&type=chunk) - The basis for the disclaimer of opinion aligns with the board's explanations in 'Section V Significant Matters,' involving **long-term equity investment impairment**, **factoring business commercial substance**, and **unresolved litigation**[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk) [II. Financial Statements](index=86&type=section&id=II.%20Financial%20Statements) In 2019, the company's total assets were RMB 2.75 billion, total liabilities RMB 1.08 billion, and net profit attributable to parent company shareholders was a loss of RMB 275 million, marking a second consecutive year of losses, with operating cash flow decreasing by 44.79% Consolidated Balance Sheet Key Data (RMB) | Item | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 2,749,322,531.92 | 3,098,666,108.47 | | Total Liabilities | 1,076,597,712.23 | 1,143,110,550.81 | | Total Equity Attributable to Parent Company Owners | 1,648,295,395.61 | 1,928,894,714.92 | Consolidated Income Statement Key Data (RMB) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Total Operating Revenue | 431,282,903.18 | 603,628,902.58 | | Operating Profit | -267,486,278.25 | -210,353,950.69 | | Total Profit | -268,798,615.54 | -214,470,798.19 | | Net Profit Attributable to Parent Company Owners | -275,183,761.51 | -200,695,240.10 | Consolidated Cash Flow Statement Key Data (RMB) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 102,893,689.13 | 186,380,475.00 | | Net Cash Flow from Investing Activities | 6,157,396.25 | -234,865,363.70 | | Net Cash Flow from Financing Activities | -130,820,171.55 | -590,993,606.63 | | Net Increase in Cash and Cash Equivalents | -21,769,086.17 | -639,478,495.33 |