Financial Performance - The company's revenue for Q1 2021 reached ¥820,419,968.84, representing a 74.04% increase compared to ¥471,393,619.53 in the same period last year[8] - Net profit attributable to shareholders was ¥80,059,480.55, a significant increase of 6,290.75% from ¥1,252,739.32 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥81,062,956.73, up 7,619.39% from ¥1,050,121.22 in the previous year[8] - Basic earnings per share rose to ¥0.1668, reflecting a 6,315.38% increase from ¥0.0026 in the previous year[8] - Operating revenue grew by 74.04% year-on-year, driven by a booming market and increased sales prices[19] - Net profit surged by 6290.75% compared to the previous period, primarily due to a significant increase in total profit[19] - Total operating revenue for Q1 2021 reached ¥820,419,968.84, a significant increase of 74% compared to ¥471,393,619.53 in the same period last year[40] - Net profit for Q1 2021 was ¥80,059,480.55, compared to ¥1,252,739.32 in Q1 2020, indicating a substantial growth[42] Cash Flow and Liquidity - The net cash flow from operating activities improved to ¥11,952,706.49, a turnaround from a negative cash flow of -¥83,385,391.75 in the same period last year, marking a 114.33% increase[8] - Cash flow from operating activities increased by 114.33% year-on-year, attributed to reduced cash outflows for purchases and increased cash inflows from sales[19] - Cash and cash equivalents decreased by 48.76% year-on-year, primarily due to increased repayments of bank loans[19] - Cash flow from operating activities generated a net inflow of CNY 11,952,706.49, a turnaround from a net outflow of CNY 83,385,391.75 in the prior year[50] - The company reported a net increase in cash and cash equivalents of 28,157,603.71, contrasting with a decrease of -57,421,171.67 in the previous year[54] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,642,570,632.73, an increase of 4.99% from ¥2,517,077,655.44 at the end of the previous year[8] - The company's current assets totaled CNY 1,560,950,068.30, up from CNY 1,409,204,768.85 at the end of 2020, indicating an increase of about 10.76%[32] - Total liabilities as of March 31, 2021, were CNY 1,247,864,697.42, compared to CNY 1,202,423,379.36 at the end of 2020, showing an increase of approximately 3.77%[34] - The company's total liabilities decreased by 39.91% for non-current liabilities due within one year, as long-term borrowings due were not exceeding one year[17] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 29,521[11] - The top shareholder, Liu Jiangshan, holds 20.40% of the shares, amounting to 97,897,902 shares[11] - Net assets attributable to shareholders increased to ¥1,394,705,935.31, up 6.09% from ¥1,314,654,276.08 at the end of the previous year[8] - The company's equity attributable to shareholders reached CNY 1,394,705,935.31, up from CNY 1,314,654,276.08, reflecting a growth of about 6.09%[35] Research and Development - Research and development expenses rose by 39.17% year-on-year, reflecting increased investment in R&D[19] - Research and development expenses for Q1 2021 were ¥5,017,551.16, compared to ¥3,605,326.93 in Q1 2020, marking an increase of approximately 39%[41] Tax and Other Financial Obligations - The company reported a 462.96% increase in tax payments, reflecting higher tax obligations due to increased revenue[19] - The company reported no overdue commitments from controlling shareholders or related parties during the reporting period[22] - There were no significant contracts or external guarantees reported during the period[26][27] Other Financial Metrics - The weighted average return on equity was 5.91%, a significant increase from 0.10% in the same period last year[8] - The company incurred a credit impairment loss of ¥5,039,364.38 during the quarter[46] - Other comprehensive income after tax for Q1 2021 was ¥253.66, compared to a loss of ¥25.16 in the same period last year[42]

Financial Performance - The company's operating revenue for 2020 was ¥2,295,745,792.80, a decrease of 18.18% compared to 2019[6]. - The net profit attributable to shareholders was ¥77,455,520.89, representing a significant increase of 302.97% year-over-year[6]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥49,519,517.01, up 522.78% from the previous year[6]. - The net cash flow from operating activities was ¥171,289,842.94, down 59.49% compared to 2019[6]. - The basic earnings per share increased to ¥0.1614, a rise of 303.50% from the previous year[6]. - Total assets at the end of 2020 were ¥2,517,077,655.44, a decrease of 5.46% from the end of 2019[6]. - The net assets attributable to shareholders increased by 6.26% to ¥1,314,654,276.08 at the end of 2020[6]. - The company reported a significant increase in quarterly net profit, with the fourth quarter net profit reaching ¥56,231,649.26[6]. - Non-recurring gains included government subsidies amounting to ¥15,900,057.05, which accounted for 20.53% of the net profit[6]. - The company's total operating costs decreased to approximately CNY 1.96 billion, down from CNY 2.44 billion in the previous year, with a cost structure shift where raw materials accounted for 88.69% of total costs[62]. Market Position and Industry Risks - The company maintains a strong competitive position as one of the top ten global players in the carbon black industry, but faces risks from potential adverse changes in national industrial policies[12]. - The company is heavily reliant on the tire manufacturing industry, which poses a risk due to potential market volatility in this sector[9]. - The primary raw materials for carbon black production account for approximately 80% of production costs, making the company vulnerable to price fluctuations in coal tar, anthracene oil, and ethylene tar[10]. - The company’s main customers are large domestic and international tire manufacturers, leading to a high customer concentration risk[9]. Environmental and Safety Initiatives - The company has made significant investments in environmental protection measures, which may lead to increased operational costs if new regulations are introduced[13]. - The company emphasizes safety management in production due to the flammable nature of raw materials and high-temperature processes, which poses operational risks[14]. - The company has achieved a dust removal efficiency of 99.99% in its dust control measures[157]. - The company invested 48 million CNY in a wastewater treatment facility, achieving a water reuse rate of over 95%[158]. - By the end of 2020, the company had invested 190 million CNY in pollution control facilities, achieving ultra-low emission standards for pollutants[158]. - The actual emissions in 2020 were 3.5 tons of particulate matter, 31.63 tons of SO2, and 92.08 tons of NOx, all below the permitted limits[159]. - The company has established a comprehensive safety management system, achieving zero major accidents and zero occupational disease incidence in 2020[146]. Research and Development - The company invested 94 million CNY in research and development during the reporting period, with a total of 70 patents granted, including 10 invention patents[42]. - The company developed new high-structure products in collaboration with tire manufacturers, enhancing its product offerings[49]. - The company aims to improve product quality and reduce costs to enhance market competitiveness, focusing on N115 and N774 carbon black products[68]. - The company has established a partnership with a leading university for collaborative research, which is expected to yield innovative solutions in the industry[196]. Corporate Governance and Shareholder Relations - The company has established a modern corporate governance structure to protect the rights and interests of shareholders and creditors[131]. - The company emphasizes the protection of minority shareholders' rights and conducts separate voting for significant matters affecting their interests[132]. - The company has maintained a consistent accounting policy without significant changes compared to the previous year[102]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[101]. - The company completed the restructuring of its board of directors and supervisory board, with new members appointed[165]. Future Outlook and Strategic Plans - The company plans to achieve international brand recognition and become a world-class carbon black supplier[91]. - The company has set a revenue guidance of 1.8 billion yuan for the next fiscal year, projecting a growth rate of 20%[196]. - New product development includes the launch of a high-performance carbon black product, expected to contribute an additional 200 million yuan in revenue[196]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share within the next three years[196]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance production capacity by 30%[196]. Social Responsibility - The company has actively engaged in social responsibility initiatives and maintains a focus on product quality, safety production, and environmental protection[127]. - The company donated RMB 500,000 to support COVID-19 prevention efforts in Shihezi City[163].

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This section confirms the report's accuracy and completeness, with key personnel taking responsibility for financial statements [Board of Directors' Statement](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board, Supervisory Board, and senior management collectively assure the report's accuracy and completeness, with key executives verifying financial statements - The company's Board of Directors, Supervisory Board, and all senior management collectively guarantee the truthfulness, accuracy, and completeness of the report content, assuming joint and several legal liability[4](index=4&type=chunk) - Company head Wei Liang, chief accountant Li Ying, and head of accounting department Zhou Wenjie declare that the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) 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=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Q1-Q3 2020 saw revenue decline by 26.15% and net profit by 12.00%, while Q3 net profit grew 22.39% despite a 16.17% revenue drop, with operating cash flow turning negative Key Financial Indicators for Q3 and YTD 2020 | Indicator | Current Period (Q3) | YoY Change in Current Period | YTD (Q1-Q3) | YoY Change YTD | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 614.16 million | -16.17% | 1.58 billion | -26.15% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 18.59 million | 22.39% | 21.08 million | -12.00% | | Net Cash Flow from Operating Activities (CNY) | -4.77 million | -102.90% | -144.82 million | -140.02% | | Basic Earnings Per Share (CNY/share) | 0.0387 | 22.47% | 0.0439 | -12.02% | | Weighted Average Return on Net Assets | 1.49% | 0.28% | 1.69% | -0.22% | Non-Recurring Gains and Losses YTD | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Government subsidies recognized in current profit/loss | 3.67 million | Primarily energy-saving and environmental protection project subsidies, significantly impacting performance | | Other non-operating income and expenses | -1.11 million | Primarily cash donations for epidemic in current period | | **Total** | **2.14 million** | - | [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%BB%A5%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company has 30,242 common shareholders, with Liu Jiangshan as the largest at 20.40%, and no pledges or freezes among top ten shareholders, including the actual controller's brother - As of the end of the reporting period, the company had **30,242 common shareholders**[12](index=12&type=chunk) Top Three Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Liu Jiangshan | Domestic Natural Person | 20.40% | 97,897,902 | | Bohai International Trust Co., Ltd. - Jixing No. 3 Single Fund Trust | Other | 15.13% | 72,629,372 | | Yu Jumei | Domestic Natural Person | 6.85% | 32,885,550 | - Among the top ten shareholders, Liu Heshan is the brother of the actual controller Liu Jiangshan, but both parties have declared they do not constitute persons acting in concert; the company is unaware of any other related party relationships or concerted actions among the remaining top ten shareholders[13](index=13&type=chunk) [Significant Events](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant changes in financial data and other material events during the reporting period, along with their underlying causes [Analysis of Changes in Key Financial Data and Reasons](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant financial data changes include decreased monetary funds and construction in progress, reduced notes payable and long-term borrowings, increased credit impairment losses and non-operating expenses, and a substantial outflow in operating cash flow Balance Sheet Key Item Changes (vs. End of Last Year) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Monetary Funds | -40.74% | Return of acceptance deposits due in current period | | Construction in Progress | -90.71% | Environmental protection equipment capitalized upon reaching operational status | | Notes Payable | -55.54% | Notes payable matured in current period | | Long-term Borrowings | -80.54% | Repayment of long-term borrowings in current period | Income Statement Key Item Changes (YTD YoY) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Credit Impairment Losses | 358.61% | Increased credit impairment provisions in current period | | Non-operating Expenses | 672.17% | Epidemic donations in current period, etc | Cash Flow Statement Key Item Changes (YTD YoY) | Item | Change Percentage | Primary Reason | | :--- | :--- | :--- | | Cash received from other financing activities | 245.44% | Increased bank acceptance deposits due in current period | | Cash paid for dividends, profits, or interest | -64.42% | Cash dividends distributed in same period last year | [Other Significant Events](index=7&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company reported no share repurchases, unfulfilled commitments, securities investments, illegal guarantees, or non-operating fund occupation by controlling shareholders, nor did it provide performance forecasts or conduct investor relations activities - During the reporting period, the company had no overdue unfulfilled commitments from actual controllers, shareholders, or related parties[20](index=20&type=chunk) - The company did not engage in securities investments, derivative investments, or entrusted wealth management during the reporting period[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The company had no illegal external guarantees or non-operating occupation of funds by controlling shareholders during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk) [Financial Statements](index=9&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company financial statements, including balance sheets, income statements, and cash flow statements, along with accounting policy adjustments [Consolidated Financial Statements](index=9&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of Q3 2020, consolidated total assets decreased by 9.04%, total liabilities by 18.36%, while net assets attributable to parent increased by 1.70%, with revenue down 26.15% and net profit down 12.00%, and operating cash flow turning negative Consolidated Balance Sheet Summary (September 30, 2020 vs. December 31, 2019) | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2.42 billion | 2.66 billion | -9.04% | | Total Liabilities | 1.16 billion | 1.43 billion | -18.36% | | Equity Attributable to Owners of Parent | 1.26 billion | 1.24 billion | 1.70% | Consolidated Income Statement Summary (January-September 2020 vs. January-September 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1.58 billion | 2.14 billion | -26.15% | | Net Profit Attributable to Owners of Parent | 21.08 million | 23.95 million | -12.00% | | Basic Earnings Per Share (CNY/share) | 0.0439 | 0.0499 | -12.02% | Consolidated Cash Flow Statement Summary (January-September 2020 vs. January-September 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -144.82 million | 361.83 million | | Net Cash Flow from Investing Activities | -45.68 million | -93.28 million | | Net Cash Flow from Financing Activities | 193.09 million | -235.50 million | [Parent Company Financial Statements](index=12&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) Parent company's total assets decreased by 7.60% and total liabilities by 20.04% as of Q3 2020, with Q1-Q3 revenue down 26.58% and net profit down 7.06%, and operating cash flow turning negative Parent Company Balance Sheet Summary (September 30, 2020 vs. December 31, 2019) | Item | September 30, 2020 (CNY) | December 31, 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1.98 billion | 2.14 billion | -7.60% | | Total Liabilities | 747.83 million | 935.26 million | -20.04% | | Total Owners' Equity | 1.23 billion | 1.21 billion | 2.04% | Parent Company Income Statement Summary (January-September 2020 vs. January-September 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1.41 billion | 1.91 billion | -26.58% | | Net Profit | 24.65 million | 26.53 million | -7.06% | Parent Company Cash Flow Statement Summary (January-September 2020 vs. January-September 2019) | Item | January-September 2020 (CNY) | January-September 2019 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -133.88 million | 343.02 million | | Net Cash Flow from Investing Activities | -9.90 million | -62.44 million | | Net Cash Flow from Financing Activities | 72.35 million | -330.73 million | [Explanation of Financial Statement Adjustments](index=27&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company adopted new revenue recognition standards from January 1, 2020, reclassifying "Advances from Customers" to "Contract Liabilities" in opening financial statements, with no impact on total assets, liabilities, or net assets - The company adopted the new revenue recognition standard for the first time starting **January 1, 2020**, and adjusted relevant items in the opening financial statements for the year[61](index=61&type=chunk) Consolidated Balance Sheet Opening Balance Adjustments | Item | Before Adjustment (December 31, 2019) | After Adjustment (January 1, 2020) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Advances from Customers | 17.40 million | 0.00 | -17.40 million | | Contract Liabilities | 0.00 | 17.40 million | 17.40 million | [Audit Report](index=33&type=section&id=%E4%B8%89%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's third-quarter report for 2020 is unaudited - The company's third-quarter report is **unaudited**[69](index=69&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was ¥968,616,510.39, a decrease of 31.34% compared to ¥1,410,666,068.76 in the same period last year[19]. - The net profit attributable to shareholders was ¥2,630,934.23, down 69.98% from ¥8,762,558.59 year-on-year[19]. - The net cash flow from operating activities was -¥140,043,907.05, a decline of 170.91% compared to ¥197,497,826.05 in the previous year[19]. - The basic earnings per share decreased by 69.95% to ¥0.0055 from ¥0.0183 in the same period last year[19]. - Domestic sales revenue decreased by 25.85% to ¥907.53 million, while international sales revenue dropped by 67.30% to ¥61.09 million[42]. - The gross profit margin for carbon black was 11.55%, down from the previous year[43]. - The total operating costs decreased by 33.32% to ¥832.68 million, primarily due to lower raw material prices[40]. - The company reported a net profit margin improvement, with retained earnings increasing from CNY 295,684,274.53 to CNY 298,315,208.76, an increase of about 0.9%[134]. - The total profit for the first half of 2020 was CNY 4.05 million, a decrease of 64.2% from CNY 11.21 million in the same period of 2019[141]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,561,362,877.49, down 3.80% from ¥2,662,487,831.67 at the end of the previous year[19]. - The company's asset-liability ratio stood at 51.59%, indicating a stable financial policy and reasonable debt repayment capability[63]. - Total liabilities decreased from CNY 1,425,274,367.42 to CNY 1,321,521,556.77, a reduction of approximately 7.3%[133]. - Owner's equity increased from CNY 1,237,213,464.25 to CNY 1,239,841,320.72, a slight increase of about 0.2%[134]. - The total equity attributable to the parent company at the end of the reporting period was CNY 1,239 million, showing a decrease of CNY 3,600 million compared to the previous period[156]. Research and Development - The company invested 35.07 million yuan in research and development during the reporting period, with a total of 31 patents granted, including 10 invention patents[33]. - The company has achieved breakthroughs in high-dispersion white carbon black, which has been accepted by tire manufacturers[34]. - The company invested ¥3.51 million in R&D to optimize product performance and reduce production costs[38]. - Research and development expenses amounted to ¥35.07 million, a decrease of 37.53% compared to ¥56.14 million in the previous year[40]. Environmental and Regulatory Compliance - The company faced an administrative penalty of CNY 450,000 for environmental violations related to air pollution control facilities[75]. - The company completed corrective actions for environmental issues by March 16, 2020, including sealing chimney leaks and conducting sampling in a closed environment[76]. - The company has invested significantly in environmental protection measures, ensuring compliance with national policies and enhancing risk resilience[65]. - The company has implemented a negative pressure collection and bag dust removal system, achieving a dust removal rate of 99.99%[96]. Market Position and Strategy - The company continues to focus on the production and sales of carbon black and coal tar products, maintaining its position as a key player in the domestic carbon black industry[27]. - The company’s products are recognized by well-known domestic and international tire manufacturers, with exports concentrated in Europe and Southeast Asia[34]. - The company plans to enhance production efficiency and optimize product structure in response to market demand fluctuations[64]. - The company anticipates a revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[187]. Shareholder and Equity Information - The total number of shares is 480,000,000, with 99.91% being unrestricted shares[111]. - The company’s major shareholder reduced their holdings by 13,440,000 shares, accounting for 2.8% of total equity[104]. - The total number of common shareholders at the end of the reporting period was 26,801[113]. - Liu Jiangshan holds 20.40% of the shares, amounting to 97,897,902 common shares[114]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased from 395,401,043.61 RMB at the end of 2019 to 300,365,208.50 RMB by June 30, 2020, a decline of approximately 24%[131]. - The ending balance of cash and cash equivalents was 65,854,288.89 CNY, down from 72,782,788.58 CNY, reflecting a decrease in liquidity[150]. - The total cash outflow for operating activities was 974,728,694.98 CNY, compared to 1,235,407,085.31 CNY in the previous period, showing a reduction in operational expenses[153]. Risk Management - The company faced significant risks due to raw material price fluctuations, with coal tar, anthracene oil, and ethylene tar accounting for approximately 80% of production costs[63]. - The company has identified major risks and countermeasures in its future operations, which are detailed in the report[5]. - The company has recognized a credit loss provision of 10 million RMB based on expected credit losses for its financial assets, reflecting prudent risk management practices[192]. Corporate Governance - The financial report for the first half of 2020 was not audited[129]. - The financial report for the first half of 2020 was approved by the board of directors on August 19, 2020[168]. - The company has evaluated its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its sustainability[171].

Financial Performance - The company's revenue for Q1 2020 was ¥471,393,619.53, representing a decrease of 31.74% compared to ¥690,581,947.27 in the same period last year[8]. - Net profit attributable to shareholders was ¥1,252,739.32, down 21.01% from ¥1,585,978.49 year-on-year[8]. - The company's total revenue decreased by 31.74% to ¥471,393,619.53 compared to the previous period, primarily due to reduced sales volume and pricing impacts from the pandemic[17]. - Net profit for Q1 2020 was CNY 1,252,739.32, compared to CNY 1,585,978.49 in the same period last year, representing a decline of approximately 21%[40]. - The total comprehensive income for the first quarter of 2020 was -2,934,277.53 CNY, compared to 7,074,265.18 CNY in the same period last year[45]. Cash Flow - The net cash flow from operating activities was negative at -¥83,385,391.75, a decline of 194.11% compared to ¥88,601,105.13 in the same period last year[8]. - The net cash flow from operating activities turned negative at -¥83,385,391.75, a decrease of 194.11% compared to the previous year, largely due to pandemic-related impacts[17]. - Cash inflow from operating activities was 562,051,605.50 CNY, down from 853,781,722.60 CNY year-on-year, representing a decrease of approximately 34%[47]. - Cash outflow from operating activities totaled 645,436,997.25 CNY, compared to 765,180,617.47 CNY in the previous year, indicating a reduction of about 15.7%[48]. - The cash flow from investment activities was -12,836,961.70 CNY, an improvement from -30,145,244.53 CNY in the previous year, indicating a reduction in cash outflow[48]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,518,637,018.53, a decrease of 5.40% from ¥2,662,487,831.67 at the end of the previous year[8]. - Total current assets decreased from CNY 1,426,682,767.23 on December 31, 2019, to CNY 1,310,514,898.98 on March 31, 2020, representing a decline of approximately 8.1%[30]. - Total liabilities decreased from CNY 1,425,274,367.42 to CNY 1,280,174,440.11, a reduction of about 10.2%[32]. - The company's total liabilities decreased to CNY 881,489,763.00 from CNY 935,259,665.84[39]. - The company's long-term borrowings decreased from CNY 37,444,343.06 to CNY 18,936,764.34, a significant reduction of about 49.5%[32]. Shareholder Information - The company reported a total of 28,840 common shareholders at the end of the reporting period[11]. - Liu Jiangshan was the largest shareholder, holding 20.40% of the shares, equivalent to 97,897,902 shares[11]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[12]. Income and Expenses - Operating costs fell by 34.94% to ¥401,946,877.28, mainly due to inventory write-backs[17]. - Other income increased by 119.31% to ¥2,479,441.23, attributed to VAT refunds related to resource utilization[17]. - The company reported a significant increase in income tax expenses by 1755.95% to ¥1,572,281.52, due to adjustments from high-tech qualifications in the previous period[17]. - Research and development expenses for Q1 2020 were CNY 3,605,326.93, compared to CNY 3,890,551.92 in the previous period[39]. - The company reported a decrease in financial expenses to CNY 11,817,466.32 from CNY 12,866,057.60 year-on-year[39]. Changes in Accounting Standards - The company has implemented new revenue and lease standards starting in 2020, with no retrospective adjustments made[59]. - Prepayments decreased by 98.65% to ¥234,373.15, as the company reclassified these amounts under contract liabilities following new revenue recognition standards[16].

Financial Performance - The company's operating revenue for 2019 was ¥2,805,930,355.05, a decrease of 9.07% compared to ¥3,085,736,795.45 in 2018[22]. - The net profit attributable to shareholders for 2019 was ¥19,221,241.82, representing an 85.52% decline from ¥132,720,900.80 in 2018[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥7,951,425.74, down 92.78% from ¥110,060,033.36 in 2018[22]. - The basic earnings per share for 2019 was ¥0.0400, a decrease of 85.53% compared to ¥0.2765 in 2018[22]. - The total revenue for the year was 280,593.04 million yuan, a decrease of 9.07% compared to the previous year, while net profit fell by 85.52% to 1,922.12 million yuan[44]. - The company reported a significant drop in quarterly net profit, with a loss of ¥4,732,825.17 in Q4 2019, following profits in the first three quarters[26]. - The company received government subsidies totaling ¥13,694,453.40 in 2019, which accounted for 71.25% of the net profit, indicating a substantial impact on the financial results[29]. Market Dependency and Risks - The company is highly dependent on the automotive tire industry, which poses a risk to market demand for carbon black[9]. - The company faces risks from fluctuations in raw material prices, particularly due to environmental policies and adjustments in the steel and coking industries[8]. - The carbon black market is heavily influenced by macroeconomic conditions, with potential price suppression if demand from downstream tire manufacturers decreases[8]. - The company is positioned among the top ten in the international market, but potential adverse changes in national industrial policies could negatively affect its development[9]. - The company emphasizes the importance of monitoring market competition and customer concentration risks, as these factors could affect profitability[9]. Production and Sales - The company primarily engages in the production and sales of carbon black, which is essential for the rubber industry, particularly in tire manufacturing[32]. - The company produced 44.93 million tons of carbon black in 2019, accounting for 10.14% of the total production of the industry association, which produced 443 million tons, a decrease of 1.93% year-on-year[38]. - The company achieved a sales volume of 45.66 million tons of carbon black, resulting in a production and sales rate of 101.62%[44]. - The company's carbon black sales revenue was CNY 2,589,238,104.15, a decrease of 9.85% compared to the previous year[51]. - Domestic sales revenue decreased by 3.08% to CNY 2,481,920,541.59, while foreign sales revenue dropped by 38.28% to CNY 324,009,813.46[51][54]. Research and Development - The company invested 112.12 million yuan in research and development during the reporting period, with a total of 30 patents granted, including 10 invention patents[40]. - Research and development expenses amounted to CNY 11,212.09 million, focusing on new product development and optimization of product performance[45]. - The company aims to develop new carbon black varieties to penetrate the high-end market and improve existing product quality to enhance competitiveness[63]. - The company plans to optimize its product structure and increase profit margins through the development of new products and production processes[63]. Environmental and Social Responsibility - The company has made significant investments in environmental protection measures, which may lead to increased operational costs if new standards are implemented[9]. - The company invested CNY 35.5 million in environmental protection facilities, achieving a dust removal efficiency of 99.99%[143]. - The company has a total sulfur dioxide (SO2) emission of 173.08 tons, which is below the permitted limit of 1158.8 tons[143]. - The company has invested CNY 48 million in a wastewater treatment plant, achieving a water reuse rate of over 95%[144]. - The company actively participates in community development and charitable activities, reflecting its commitment to social responsibility[137]. Governance and Management - The company has established a modern corporate governance structure to protect the rights of shareholders and creditors[123]. - The company maintains a commitment to timely and accurate information disclosure to ensure investor rights[125]. - The company has established a comprehensive employee performance evaluation and incentive mechanism to enhance management motivation and attract talent[191]. - The board of directors consists of three independent directors, accounting for over one-third of the total board members, ensuring compliance with legal and regulatory requirements[192]. - The company maintains independence from its controlling shareholder in operations and decision-making[189]. Financial Position - The company's end-of-period debt-to-asset ratio was 53.53%, indicating a stable financial policy and a certain level of debt repayment capability[9]. - Total assets at the end of 2019 were ¥2,662,487,831.67, down 8.61% from ¥2,913,300,463.04 at the end of 2018[22]. - The net assets attributable to shareholders at the end of 2019 were ¥1,237,213,464.25, a decrease of 2.28% from ¥1,266,127,614.85 at the end of 2018[22]. - The company reported an asset impairment of -¥7,430,172.16, accounting for 32.37% of total profit[70]. Employee Relations - The company adheres to labor laws and has established a comprehensive employee rights protection system, ensuring legal rights for all employees[129]. - Employees are entitled to various types of leave, including maternity leave and annual leave, with overtime pay and holiday wages in accordance with national policies[129]. - The company actively engages in vocational training and career development, collaborating with educational institutions to enhance employee skills[130]. - The company provides free accommodation and meals for employees, ensuring a comfortable living and dining experience[131].

Financial Performance - Operating revenue for the reporting period was approximately ¥732.65 million, down 12.12% year-on-year, with a year-to-date revenue of approximately ¥2.14 billion, a decrease of 6.72%[7] - Net profit attributable to shareholders was approximately ¥15.19 million, a decline of 56.34% year-on-year, with year-to-date net profit of approximately ¥23.95 million, down 75.56%[7] - Basic earnings per share were ¥0.0316, a decrease of 56.41% year-on-year[7] - Operating profit decreased by CNY 84,616,600, a reduction rate of 71.84%, mainly due to a decline in gross profit[17] - Total profit decreased by CNY 84,196,500, a reduction rate of 71.67%, primarily due to a decrease in gross profit[17] - Total operating revenue decreased to ¥732.65 million from ¥833.67 million, a decline of approximately 12.1% year-over-year[39] - Net profit fell to ¥15.19 million compared to ¥34.79 million in the previous period, representing a decline of approximately 56.4%[40] - Operating profit decreased to ¥22.15 million from ¥42.43 million, a drop of around 47.9% year-over-year[40] - Net profit for the period was ¥23,954,066.99, a significant decline of 75.55% from ¥98,024,209.92 in the same period last year[48] - Basic and diluted earnings per share were both ¥0.0499, compared to ¥0.2042 in the previous year, reflecting a decrease of 75.56%[49] - The company reported a total comprehensive income of ¥23,953,240.97, down 75.55% from ¥98,027,562.46 in the previous period[49] Cash Flow - The net cash flow from operating activities was approximately ¥164.33 million, an increase of 127.87% compared to the same period last year[7] - Net cash flow from operating activities increased by CNY 145,946,800, an increase rate of 67.61%, mainly due to a reduction in cash outflows from operating activities[17] - Cash inflow from financing activities decreased by CNY 277,929,900, a reduction rate of 35.17%, primarily due to a decrease in bank loan repayments[18] - Total cash inflow from operating activities was CNY 2,566,327,237.39, while cash outflow was CNY 2,204,501,466.44, resulting in a net cash inflow of CNY 361,825,770.95[56] - Cash flow from investing activities showed a net outflow of CNY 93,280,654.19, compared to a net outflow of CNY 45,419,480.74 in the previous year[57] Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥2.77 billion, a decrease of 4.94% compared to the end of the previous year[7] - Total liabilities decreased from CNY 1,647,172,848.19 to CNY 1,527,462,415.94, a decline of around 7.3%[31] - Owner's equity decreased from CNY 1,266,127,614.85 to CNY 1,241,951,824.00, a reduction of about 1.9%[32] - Current liabilities decreased from CNY 1,600,407,181.74 to CNY 1,498,564,633.94, a reduction of about 6.4%[31] - Non-current liabilities decreased from CNY 46,765,666.45 to CNY 28,897,782.00, a decrease of approximately 38.2%[31] - Cash and cash equivalents increased from CNY 94,495,020.96 to CNY 151,488,693.46, an increase of approximately 60.4%[34] - Accounts receivable decreased from CNY 549,006,380.81 to CNY 443,184,010.03, a decline of about 19.3%[34] - Inventory decreased from CNY 254,153,966.29 to CNY 225,107,818.07, a reduction of approximately 11.4%[34] Investments and Expenditures - Prepayments increased by ¥36.45 million, a rise of 221.04%, mainly due to increased advance payments for raw materials[15] - Construction in progress increased by ¥62.50 million, a rise of 433.49%, primarily due to new investments in environmental protection equipment[15] - Cash outflow from investment activities increased by CNY 47,184,900, an increase rate of 99.17%, primarily due to the addition of environmental protection equipment[17] - Research and development expenses were reduced to ¥3.75 million from ¥7.77 million, a decrease of about 51.8%[39] - Research and development expenses were ¥11,539,290.94, a decrease of 23.29% from ¥15,002,854.76 in the prior year[46] Shareholder Information - The total number of shareholders at the end of the reporting period was 24,764, with the top ten shareholders holding a combined 55.12% of shares[11] Other Information - Government subsidies recognized in the current period amounted to approximately ¥3.70 million, accounting for 15.46% of net profit, significantly impacting performance[8] - The company plans to focus on market expansion and new product development to improve future performance[46] - The third quarter report has not been audited[71] - The company has implemented new financial instrument standards or new lease standards since 2019, with retrospective adjustments to prior comparative data not applicable[72]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,410,666,068.76, a decrease of 3.64% compared to CNY 1,464,005,608.58 in the same period last year[18]. - The net profit attributable to shareholders was CNY 8,762,558.59, down 86.14% from CNY 63,231,891.01 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 6,360,751.46, a decline of 89.33% compared to CNY 59,596,253.15 in the previous year[18]. - The basic earnings per share were CNY 0.0183, down 86.10% from CNY 0.1317 in the same period last year[18]. - The total revenue of the carbon black industry decreased by 10.15% year-on-year, with 11 member companies reporting losses totaling 190.25 million yuan, representing a loss rate of 32%[30]. - The net profit for the reporting period was RMB 8,762,600, a significant decline of 86.14% year-on-year, primarily due to a 10.54% drop in carbon black sales prices[37]. - Carbon black sales accounted for 93.68% of total revenue, generating RMB 1,321,508,474.44, which is a 3.33% decrease from the previous year[44]. - The total comprehensive income for the period was reported at 8,762 million yuan, reflecting a decrease of 358.5 million yuan compared to the previous period[158]. Cash Flow and Assets - The net cash flow from operating activities increased by 37.38% to CNY 197,497,826.05, compared to CNY 143,762,645.52 in the same period last year[18]. - Cash and cash equivalents at the end of the reporting period were 303,473,811.12 RMB, constituting 11.01% of total assets, a decrease of 1.39% compared to the previous year[49]. - Accounts receivable amounted to 632,714,470.93 RMB, making up 22.96% of total assets, an increase of 1.84% year-on-year[49]. - Inventory stood at 366,894,545.75 RMB, representing 13.31% of total assets, with a slight increase of 0.12% from the previous year[49]. - The company's total assets at the end of the reporting period were CNY 2,756,297,764.40, a decrease of 5.39% from CNY 2,913,300,463.04 at the end of the previous year[18]. - The company's cash flow from operating activities increased by 37.38% to RMB 197,497,826.05, indicating improved cash management[41]. Research and Development - The company invested 56.14 million yuan in research and development during the reporting period, with a total of 29 patents granted, including 9 invention patents[32]. - The company invested RMB 56,141,920.94 in research and development, an increase of 73.58% compared to the previous year[41]. - Research and development expenses were ¥7,791,600.35 in the first half of 2019, slightly up from ¥7,235,109.32 in the first half of 2018[141]. Environmental and Social Responsibility - The company has made significant investments in environmental protection measures, which comply with current national policies, but future policy changes may require additional investments, potentially impacting short-term profitability[64]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[91]. - The total SO2 emissions were 131.13 tons, while the approved limit was 1,158.8 tons, indicating compliance with emission standards[91]. - The company achieved a wastewater reuse rate of over 95% through a CNY 48,000,000 investment in a water treatment facility[94]. - The company donated a house valued at 34,160 yuan to a poverty-stricken household during the reporting period[102]. - The company reported a material contribution of 3.42 million yuan in material assistance for poverty alleviation[103]. - The company is committed to arranging employment for newly identified impoverished individuals and providing scholarships for impoverished college students[105]. Market and Industry Position - The company primarily engages in the production and sales of carbon black, white carbon black, and coal tar products, being a key player in the domestic carbon black industry[25]. - The company produced 21.38 million tons of carbon black in the first half of 2019, accounting for 9.90% of the total production of the association's member companies, ranking among the top three in the industry[30]. - Domestic sales contributed 86.76% of total revenue, while international sales dropped by 35.88%, accounting for only 13.24%[44]. - The company is highly dependent on the automotive tire industry, which poses a market risk due to potential fluctuations in demand[62]. Financial Stability and Liabilities - The company's asset-liability ratio at the end of the period is 55.49%, indicating a stable financial policy and certain debt repayment capability, but there is a risk of temporary inability to repay due debts[65]. - Total liabilities decreased from CNY 1,647,172,848.19 to CNY 1,529,528,981.37, a decline of about 7.1%[134]. - Short-term loans were reported at 514,500,000.00 RMB, accounting for 18.67% of total liabilities, down by 4.15% compared to the previous year[49]. - Long-term loans decreased to 17,442,163.00 RMB, representing 0.63% of total liabilities, a reduction of 1.10% year-on-year[49]. Governance and Compliance - The half-year financial report has not been audited[71]. - There are no major litigation or arbitration matters reported during the period[74]. - The company has not engaged in any significant related party transactions during the reporting period[79]. - The company has no major penalties or rectification situations reported during the period[75]. - The company has not implemented any employee incentive plans during the reporting period[76]. Future Outlook - The company plans to continue its market expansion efforts, focusing on new product development and technological advancements[161]. - The company has set a performance guidance for the next period, aiming for a revenue increase of approximately 10%[161]. - The company is exploring potential mergers and acquisitions to enhance its market presence and operational capabilities[161].

证券代码：002442 证券简称：龙星化工 公告编号：2019-017 龙星化工股份有限公司 关于参加河北辖区上市公司 2019 年度投资者 网上集体接待日活动的公告 本公司及全体董事会成员保证公告内容真实、准确和完整，不存在虚假记 载、误导性陈述或重大遗漏。 龙星化工股份有限公司（以下简称"公司"）已于 2019 年 2 月 15 日发布了 2018 年年度报告。为进一步做好投资者关系管理工作，加强与广大投资者的沟 通，公司定于 2019 年 5 月 15 日（周三）15:00-17:00 参加中国证监会河北监管 局举办的"河北辖区上市公司 2019 年度投资者网上集体接待日暨全国投资者保 护宣传日"活动。 本次集体接待日将在深圳全景网络有限公司提供的网上平台采取网络远程 的方式举行，投资者可登录"全景•路演天下" （http://rs.p5w.net）参与本次互动 交流。 出席本次集体接待日的高管有：公司董事、总经理兼董事会秘书刘飞舟先生， 董事、副总经理兼财务负责人李英女士。 欢迎广大投资者积极参与！ 特此公告。 龙星化工股份有限公司董事会 2019 年 5 月 9 日 ...

Financial Performance - The company's revenue for Q1 2019 was ¥690,581,947.27, representing a 1.53% increase compared to ¥680,160,032.14 in the same period last year[8]. - Net profit attributable to shareholders decreased by 95.03% to ¥1,585,978.49 from ¥31,897,215.37 year-on-year[8]. - The net profit after deducting non-recurring gains and losses fell by 98.20% to ¥561,261.82 from ¥31,146,160.98 in the previous year[8]. - Basic earnings per share dropped by 95.04% to ¥0.0033 from ¥0.0665 year-on-year[8]. - Net profit decreased by 95.03% compared to the same period last year, primarily due to a decrease in gross profit from sales[22]. - The total comprehensive income for the quarter was CNY 1,582,534.54, a decrease of 95.0% compared to CNY 31,895,931.06 in the same period last year[48]. - The company reported a total profit of CNY 8,494,130.22 for the quarter, down from CNY 28,359,009.39 in the same period last year[52]. Cash Flow - The net cash flow from operating activities decreased by 48.70% to ¥88,601,105.13 compared to ¥172,722,661.03 in the same period last year[8]. - Cash flow from operating activities decreased by 48.70% compared to the same period last year, mainly due to increased cash payments for goods and services[23]. - Cash and cash equivalents net increase decreased by 192.94% compared to the same period last year, attributed to reduced cash flow from operating and investing activities[25]. - Operating cash inflow totaled CNY 783.66 million, a decrease from CNY 859.07 million in the previous period[59]. - Net cash flow from operating activities was CNY 128.44 million, down from CNY 146.54 million year-over-year[59]. - Cash outflow from financing activities amounted to CNY 256.55 million, compared to CNY 446.98 million in the prior period[60]. - Net cash flow from financing activities was negative CNY 96.55 million, an improvement from negative CNY 148.72 million previously[60]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,868,522,151.64, a decrease of 1.54% from ¥2,913,300,463.04 at the end of the previous year[8]. - Total current assets decreased to CNY 1,621,419,928.63 from CNY 1,650,621,164.86, a decline of approximately 1.4%[37]. - Total liabilities increased slightly to CNY 1,648,898,657.46 from CNY 1,647,172,848.19, an increase of approximately 0.1%[38]. - The company's total liabilities reached CNY 1,208,648,360.35, compared to CNY 1,102,451,721.72 in the previous year, indicating a year-over-year increase of about 9.6%[44]. - The company's equity attributable to shareholders decreased to CNY 1,219,623,494.18 from CNY 1,266,127,614.85, a decrease of about 3.7%[39]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 16,810[10]. - The largest shareholder, Liu Jiangshan, holds 20.40% of the shares, totaling 97,897,902 shares[11]. Government Support and Certifications - The company received government subsidies amounting to ¥1,130,550.15 during the reporting period[9]. - The company received the "High-tech Enterprise Certificate," allowing it to enjoy a reduced corporate income tax rate of 15% for three years[26]. Operational Costs and Expenses - Total operating costs amounted to CNY 690,302,036.02, up from CNY 642,711,375.87, reflecting a year-over-year increase of approximately 7.4%[45]. - Research and development expenses were CNY 3,890,551.92, slightly up from CNY 3,707,065.24, indicating a year-over-year increase of about 4.9%[45]. - Financial expenses decreased by 38.65% compared to the same period last year, mainly due to reduced acceptance discount and loan interest[18]. Inventory and Receivables - Accounts receivable decreased by 50.63% compared to the beginning of the year, mainly due to a reduction in advance payments received[16]. - Inventory decreased to CNY 374,280,305.42 from CNY 406,604,466.85, a decrease of about 7.9%[36].