Financial Performance - The company's operating revenue for the first half of 2019 was CNY 302,990,159.59, a decrease of 5.65% compared to CNY 321,119,325.96 in the same period last year[20]. - Net profit attributable to shareholders increased by 188.05% to CNY 12,955,536.34, up from CNY 4,497,705.16 in the previous year[20]. - The net profit after deducting non-recurring gains and losses surged by 1,209.81% to CNY 9,222,620.01, compared to CNY 704,119.57 in the same period last year[20]. - The basic earnings per share rose by 189.09% to CNY 0.0318, compared to CNY 0.011 in the previous year[20]. - The company's operating costs decreased by 13.86% to RMB 208,054,964.66 from RMB 241,527,785.05 year-on-year[48]. - The gross profit margin for the insulator segment was 31.36%, an increase of 6.61% compared to the previous year[52]. - The company reported a significant increase in operating profit to CNY 11,466,991.56 from CNY 872,142.33 in the previous year[150]. - The total profit for the first half of 2019 was -632,222.92 yuan, a decrease from -993,765.41 yuan in the same period of 2018, indicating an improvement of approximately 36.4%[155]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,370,374,356.21, reflecting a 3.55% increase from CNY 1,323,356,258.61 at the end of the previous year[21]. - The company's total liabilities increased to RMB 473,373,478.98 from RMB 439,303,327.19, reflecting a rise of about 7.8%[142]. - Current assets totaled RMB 858,384,806.33, up from RMB 792,262,100.87, indicating an increase of approximately 8.3%[140]. - Accounts receivable rose to RMB 424,667,539.41 from RMB 363,963,947.62, marking an increase of approximately 16.7%[139]. - Inventory increased to RMB 256,407,806.41 from RMB 213,693,941.72, which is an increase of about 20%[140]. - The company's total equity as of June 30, 2019, was RMB 897,000,877.23, compared to RMB 884,052,931.42 at the end of 2018, reflecting a growth of approximately 1.5%[142]. Cash Flow - The net cash flow from operating activities was negative at CNY -13,136,967.06, a decline of 140.51% from CNY 32,425,483.96 in the same period last year[20]. - The company's cash flow from operating activities was negative at RMB -13,136,967.06, a decline of 140.51% compared to RMB 32,425,483.96 in the previous year[48]. - The company incurred a total cash outflow of 326,230,037.15 yuan from operating activities, slightly down from 338,653,095.45 yuan in the first half of 2018[159]. - The company reported a net cash increase of -19,895,513.58 yuan in cash and cash equivalents for the first half of 2019, compared to -16,511,165.49 yuan in the same period of 2018[160]. Business Expansion and Development - The company expanded its business scope to include software and hardware technology development and electronic equipment manufacturing[19]. - The company has established business relations with China Electric Power Equipment Co., Ltd., a subsidiary of the State Grid Corporation, to expand its international market presence[41]. - The company’s research and development capabilities are supported by a provincial-level technology center, ensuring continuous innovation and product quality improvement[35]. - Research and development investment increased by 2.47% to RMB 15,516,758.19 compared to RMB 15,142,837.19 in the previous year[48]. - The company has established Zhejiang Daci Information Technology Co., Ltd. to expand its business scope, which is expected to positively impact future profitability[66]. Risks and Challenges - The company faces risks from macroeconomic policies and market competition, particularly in the insulation market, which has seen increased competition and price pressure[69][70]. - Rising costs of raw materials, particularly steel and natural gas, are anticipated to impact the company's operating performance[71]. - The company emphasizes product quality control to mitigate risks associated with potential quality issues that could affect its reputation and operations[73]. - The company faces talent risk due to the need for a large number of high-quality talents as its business expands, which may not be met by current reserves[74]. - Financial risk is highlighted by significant accounts receivable and inventory, which increase working capital pressure and may affect financing capabilities[75]. - The company is exposed to exchange rate risk as its export business primarily settles in USD, prompting the use of various hedging tools to mitigate losses[76]. Shareholder and Governance - The company has 36,160 common stock shareholders at the end of the reporting period[122]. - The largest shareholder, Ruiqi Technology, holds 23.03% of the shares, with 40 million shares pledged[122]. - The company experienced a change in its board of directors and senior management on April 25, 2019, with several members completing their terms[132]. - The company has not engaged in any financing or margin trading activities by its top shareholders during the reporting period[130]. - The company has not implemented any employee incentive plans or stock ownership plans during the reporting period[88]. Legal and Compliance - The company is involved in a civil lawsuit regarding a sales contract dispute, with a court hearing scheduled for May 5, 2019[111]. - The company has not experienced any major litigation or media scrutiny during the reporting period[85]. - The company has not undergone any bankruptcy restructuring or faced penalties during the reporting period[86][87]. Miscellaneous - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has not initiated any targeted poverty alleviation efforts and has no subsequent plans for such initiatives[103]. - The company did not issue any new debt or equity during the first half of 2019, maintaining a stable capital structure[163].

Financial Performance - The company's operating revenue for the first half of 2019 was ¥302,990,159.59, a decrease of 5.65% compared to ¥321,119,325.96 in the same period last year[20]. - The net profit attributable to shareholders increased by 188.05% to ¥12,955,536.34, up from ¥4,497,705.16 in the previous year[20]. - The net profit after deducting non-recurring gains and losses surged by 1,209.81% to ¥9,222,620.01, compared to ¥704,119.57 in the same period last year[20]. - The basic earnings per share rose by 189.09% to ¥0.0318, compared to ¥0.011 in the previous year[20]. - The company's operating costs decreased by 13.86% to ¥208,054,964.66 from ¥241,527,785.05 year-on-year[48]. - The gross profit margin for the insulator segment improved to 31.36%, up by 6.61% from the previous year[52]. - The company reported a significant increase in operating profit to ¥11,466,991.56 from ¥872,142.33 in the previous year[150]. - The total comprehensive income for the first half of 2019 was -632,222.92 yuan, a decrease from -993,765.41 yuan in the same period of 2018, indicating a reduction in net loss by approximately 36.4%[155]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,370,374,356.21, reflecting a 3.55% increase from ¥1,323,356,258.61 at the end of the previous year[21]. - The net assets attributable to shareholders increased by 1.48% to ¥888,560,791.35, compared to ¥875,605,255.01 at the end of the previous year[21]. - The company's total liabilities were ¥473,373,478.98, up from ¥439,303,327.19, which is an increase of approximately 7.8%[142]. - The company's total equity attributable to shareholders reached ¥888,560,791.35, compared to ¥875,605,255.01 at the end of 2018, showing a slight increase of about 1.5%[142]. Cash Flow - The net cash flow from operating activities was negative at -¥13,136,967.06, a decline of 140.51% from ¥32,425,483.96 in the same period last year[20]. - The cash inflow from operating activities was 313,093,070.09 yuan, down 15.6% from 371,078,579.41 yuan in the first half of 2018[158]. - The net cash flow from investing activities was -2,262,990.13 yuan, an improvement from -11,804,418.17 yuan in the same period last year[159]. - The cash outflow for the acquisition of fixed assets and intangible assets was ¥10,334.00, with no significant investments made in subsidiaries during the period[163]. Business Operations - The company has expanded its business scope to include software and hardware technology development and electronic equipment manufacturing[19]. - The company established business relations with China Electric Power Equipment Co., Ltd., a subsidiary of the State Grid Corporation, to expand its international market presence[41]. - The company maintains a strong focus on R&D, with a provincial-level technology center driving innovation and product development[35]. - The company has a comprehensive product range, including insulators for various voltage levels, ensuring a competitive edge in the market[38]. Risks and Challenges - The company faces risks from macroeconomic policies and market competition, particularly in the insulation market, which is experiencing increased competition and price pressure[69][70]. - Rising costs of raw materials, particularly steel and natural gas, are anticipated to impact the company's operating performance[71]. - Financial risks are present as accounts receivable and inventory levels are high, potentially straining working capital and financing capabilities[75]. - The company is exposed to exchange rate risks, particularly as its export transactions are primarily settled in USD, which can impact performance[76]. Shareholder and Corporate Governance - The company has not distributed cash dividends or bonus shares for the half-year period[80]. - The company underwent changes in its controlling shareholder and actual controller due to stock pledge financing issues[105]. - A total of 93,830,000 shares, representing 23.03% of the company's total shares, were subject to judicial auction due to the controlling shareholder's financial disputes[107]. - The new controlling shareholder is Hangzhou Ruiqi Information Technology Partnership (Limited Partnership), effective from March 15, 2019[125]. Compliance and Regulations - The company has not engaged in any major related party transactions during the reporting period[89]. - There were no significant litigation or arbitration matters reported during the period[85]. - The company has not experienced any penalties or corrective actions during the reporting period[86]. - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect the financial status, operating results, and cash flows for the reporting period[185].

Financial Performance - The company's operating revenue for 2018 was CNY 603,891,650, a decrease of 27.49% compared to CNY 832,787,070.66 in 2017[17] - The net profit attributable to shareholders for 2018 was a loss of CNY 18,941,389.93, representing a decline of 131.94% from a profit of CNY 59,312,313.43 in 2017[17] - The basic earnings per share for 2018 was -CNY 0.05, a decline of 133.33% from CNY 0.15 in 2017[18] - The diluted earnings per share for 2018 was also -CNY 0.05, down 135.71% from CNY 0.14 in 2017[18] - The weighted average return on equity for 2018 was -2.16%, a decrease of 9.03% from 6.87% in 2017[18] - The company's total assets decreased by 10.19% year-on-year to CNY 1.32 billion, while net assets attributable to shareholders fell by 1.77% to CNY 875.61 million[42] - The gross margin for porcelain insulators was 24.88%, down 10.66 percentage points from the previous year, reflecting increased competition and cost pressures[52] Cash Flow and Investments - The net cash flow from operating activities increased by 44.82% to CNY 121,665,580.99 in 2018, up from CNY 84,013,191.74 in 2017[17] - The net cash flow from operating activities showed significant volatility, with a positive CNY 58.83 million in Q1, a negative CNY -26.41 million in Q2, a negative CNY -7.54 million in Q3, and a strong recovery to CNY 96.78 million in Q4[22] - The company reported a significant increase in investment activity cash inflow by 1,934.65% to ¥19,039,356.98 in 2018, compared to ¥935,757.28 in 2017[67] - The total cash inflow from investment activities increased by 1934.65% year-on-year, mainly due to the refund of land transfer fees after the cancellation of a land transfer contract[68] - The net cash flow from investment activities increased by 107.22% year-on-year, attributed to the recovery of land transfer fees and the acquisition of a stake in Dongya Pharmaceutical last year[68] Market Position and Operations - The company maintained a leading position in the high-voltage porcelain insulator industry, supported by strong R&D capabilities and a well-established brand reputation[34][35] - The company has been a key supplier for major projects, including the ±1100kV DC transmission project and the Three Gorges Project, enhancing its market presence[36] - The company secured orders worth CNY 375 million in key projects, indicating a stable market position despite a challenging environment[43] - The production of suspension porcelain insulators dropped by 35.26% year-on-year, with sales volume decreasing by 26.54% due to reduced demand in the high-voltage construction sector[53] - The company is focusing on cost control and product innovation to enhance long-term competitiveness in a challenging market[44] Risks and Challenges - The company faced significant risks in its future development, which are detailed in the report[5] - The company recognizes risks related to macroeconomic policies and market competition, particularly the potential impact of reduced investment in power grid construction[98] - The company faces customer concentration risk, primarily relying on major clients like State Grid and Southern Grid, which could affect revenue if procurement policies change[99] - The company is aware of financial risks due to high accounts receivable and inventory levels, and it aims to improve cash flow management[105] Shareholder and Governance Issues - The company proposed no cash dividends for the 2018 fiscal year, with retained earnings to be carried forward for future distribution[112] - The company has not engaged in any investor communications or research activities during the reporting period[109] - The company emphasizes corporate governance and the protection of shareholder rights[158] - The company has not fulfilled certain shareholding increase commitments made by its major shareholders within the specified time frame[121] - The company has made changes to its accounting policies in accordance with the Ministry of Finance's regulations, including the implementation of new accounting standards for non-current assets held for sale[125] Legal and Compliance Matters - The company is currently facing legal issues related to the freezing of shares held by its controlling shareholder[162][163][164] - The controlling shareholder, Yilong Magnetic Materials, held 93,830,000 shares of the company, representing 23.03% of the total shares, which were subject to judicial auction due to a court ruling[165] - The company is involved in a lawsuit with an amount of 23 million yuan, which has not yet entered the trial stage, indicating uncertainty regarding the recovery of the procurement prepayment[131] Strategic Developments - The company aims to leverage capital market opportunities to drive a dual strategy of "industry + capital" for expansion in the power energy sector[88] - The company has undergone a merger with Jiaxing Zhenzhuo New Chi Investment Partnership to enhance its industrial layout and profitability[83] - The company is committed to expanding its international market presence by leveraging its diverse product line and established partnerships[92] - The company plans to optimize internal control management and enhance operational efficiency to maximize sales while minimizing costs[93]

Financial Performance - The company's operating revenue for Q1 2019 was ¥122,317,497.06, a decrease of 34.57% compared to ¥186,939,309.93 in the same period last year[8]. - The net profit attributable to shareholders was a loss of ¥7,583,277.77, representing a decline of 188.44% from a profit of ¥8,574,351.75 in the previous year[8]. - The net cash flow from operating activities was negative at ¥38,207,811.16, a decrease of 164.94% compared to ¥58,832,938.36 in the same period last year[8]. - The basic earnings per share were -¥0.019, down 195.00% from ¥0.02 in the previous year[8]. - The net profit for the period was a loss of ¥7,944,715.94, compared to a profit of ¥8,205,464.86 in the previous period, indicating a significant decline[46]. - The operating profit turned negative at -¥11,147,503.11, compared to a positive operating profit of ¥8,958,877.61 in the same period last year[46]. - The total comprehensive income for the period was -¥7,944,715.94, compared to ¥8,205,464.86 in the prior year, indicating a substantial decline[47]. Cash Flow - Cash received from sales decreased by 55.13% compared to the same period last year, primarily due to reduced sales collections in the current reporting period[18]. - Net cash flow from operating activities decreased by 164.94% compared to the same period last year, mainly due to reduced sales collections and increased payments[18]. - Cash inflows from operating activities totaled ¥121,442,405.38, down from ¥252,863,892.36, reflecting a decrease of approximately 52.1% year-over-year[53]. - The ending balance of cash and cash equivalents was 94,755,216.34 CNY, a decrease from 99,182,606.33 CNY, reflecting tighter liquidity[55]. - The company reported a net increase in cash and cash equivalents of -43,173,537.07 CNY, contrasting with a positive increase of 24,224,118.43 CNY in the previous period, reflecting overall cash management challenges[55]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,297,593,338.09, a decrease of 1.95% from ¥1,323,356,258.61 at the end of the previous year[8]. - Current liabilities decreased from CNY 358,652,054.03 to CNY 342,842,691.72, a reduction of about 4.4%[37]. - Non-current liabilities decreased from CNY 80,651,273.16 to CNY 78,642,430.89, a decrease of approximately 2.5%[37]. - Total equity decreased from CNY 884,052,931.42 to CNY 876,108,215.48, a decline of about 0.9%[38]. - The company’s total liabilities decreased from CNY 439,303,327.19 to CNY 421,485,122.61, a reduction of about 4.0%[37]. Operational Challenges - The decline in net profit was attributed to a decrease in the usage of the company's key product, high-voltage insulators, amid intense market competition and rising raw material prices[17]. - The company's operating costs decreased by 32.81% compared to the same period last year, reflecting a slowdown in the domestic power transmission industry[17]. - The asset impairment losses increased by 155.86% compared to the previous year, primarily due to reduced sales collections and an increase in accounts receivable[17]. - The company recognized a bad debt provision of 11.5 million yuan, which will reduce the net profit attributable to the parent company by 8.625 million yuan for the year 2018[22]. Government Support and Subsidies - The company received government subsidies amounting to ¥1,933,301.73 during the reporting period, which was a significant decrease compared to previous periods[9]. - The company received ¥5,482,193.01 in tax refunds, slightly up from ¥5,104,464.71, showing some improvement in cash flow from tax-related activities[53]. Legal Matters - The company has initiated a civil lawsuit regarding a sales contract dispute, with the case accepted by the court on January 9, 2019[20]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[29]. Research and Development - Research and development expenses were ¥7,511,215.09, slightly up from ¥7,363,004.37, indicating continued investment in innovation[44].

Financial Performance - The company's operating revenue for 2018 was CNY 603,891,650, a decrease of 27.49% compared to CNY 832,787,070.66 in 2017[17]. - The net profit attributable to shareholders for 2018 was a loss of CNY 18,941,389.93, representing a decline of 131.94% from a profit of CNY 59,312,313.43 in 2017[17]. - The basic earnings per share for 2018 was -CNY 0.05, a decline of 133.33% from CNY 0.15 in 2017[18]. - The diluted earnings per share for 2018 was also -CNY 0.05, down 135.71% from CNY 0.14 in 2017[18]. - The weighted average return on equity for 2018 was -2.16%, a decrease of 9.03% from 6.87% in 2017[18]. - The gross margin for porcelain insulators was 24.88%, a decline of 10.66 percentage points compared to the previous year[52]. - The company's revenue decreased by 27.49% year-on-year due to a decline in domestic ultra-high voltage construction and increased market competition[54]. Cash Flow and Assets - The net cash flow from operating activities increased by 44.82% to CNY 121,665,580.99 in 2018, up from CNY 84,013,191.74 in 2017[17]. - The total assets at the end of 2018 were CNY 1,323,356,258.61, a decrease of 10.19% from CNY 1,473,506,263.96 at the end of 2017[18]. - The net assets attributable to shareholders decreased by 1.77% to CNY 875,605,255.01 at the end of 2018, down from CNY 891,385,550.74 at the end of 2017[18]. - The company's cash and cash equivalents increased by 74.91% compared to the beginning of the year, primarily due to bank borrowings[32]. - The net cash flow from investment activities increased by 107.22% year-on-year, attributed to the recovery of land transfer payments and the acquisition of a stake in Dongya Pharmaceutical last year[70]. - The total cash inflow from financing activities decreased by 36.19% year-on-year, primarily due to a reduction in bank borrowings compared to the previous year[70]. Market Position and Strategy - The company maintained a leading position in the high-voltage porcelain insulator industry, with a strong focus on R&D capabilities and product quality[34]. - The company has been a key supplier for major projects, including the ±1100kV DC transmission project and the Three Gorges Project, enhancing its market presence[36]. - The company has established stable sales in over 30 countries and regions, reflecting its successful international expansion strategy[36]. - The company aims to leverage the "Belt and Road" initiative, which has led to over $700 billion in direct investment in related countries, to expand its international market presence[87]. - The company plans to enhance product quality and user service while focusing on cost reduction and efficiency improvement as part of its development strategy[88]. Risks and Challenges - The company faced significant risks and challenges, which are detailed in the report's section on future development outlook[5]. - The company faces risks related to macroeconomic policies and market competition, which could impact the overall demand for insulators[97]. - The company is concentrated on major clients, primarily State Grid and Southern Grid, which poses a risk if their procurement policies change[98]. - The company will focus on developing new products and expanding into new markets to mitigate client concentration risks[99]. Corporate Governance and Shareholder Matters - The company did not propose any cash dividends for the fiscal year 2018, with a profit distribution plan stating no cash dividends, no bonus shares, and no capital reserve transfer to share capital[110]. - The company’s profit distribution policy has remained unchanged over the past three years, with no cash dividends proposed for 2018[117]. - The controlling shareholder, Yilong Magnetic Materials, committed to increase its shareholding by at least 5% of the total share capital but only acquired 8,010,000 shares, representing 1.97% of total shares and 39.31% of the planned increase[121]. - The company emphasizes corporate governance and the protection of shareholder rights, ensuring compliance with laws and regulations[156]. Legal and Regulatory Matters - The company is involved in a lawsuit with a claimed amount of 23 million yuan, which has not yet formed an estimated liability[129]. - The company has not faced any situations that could lead to suspension or termination of its listing during the reporting period[128]. - The company has not engaged in any major contracts or entrusted financial management during the reporting period[155][153]. Employee and Social Responsibility - The company actively fulfills its social responsibilities, focusing on employee welfare and customer satisfaction[156][157]. - The company’s employee compensation liabilities increased by 680.60% compared to the beginning of the year, primarily due to wage provisions for a subsidiary's production halt[32].

大连电瓷集团股份有限公司 2018 年第三季度报告正文 证券代码：002606 证券简称：大连电瓷 公告编号：2018-078 大连电瓷集团股份有限公司 2018 年第三季度报告正文 1 大连电瓷集团股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人朱冠成、主管会计工作负责人钟瑜涛及会计机构负责人(会计主 管人员)朱福红声明：保证季度报告中财务报表的真实、准确、完整。 2 大连电瓷集团股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 1,351,402,039.42 | | 1,473,506,263.96 | -8.29% | | 归 ...

大连电瓷集团股份有限公司 2018 年第三季度报告正文 证券代码：002606 证券简称：大连电瓷 公告编号：2018-078 大连电瓷集团股份有限公司 2018 年第三季度报告正文 1 大连电瓷集团股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人朱冠成、主管会计工作负责人钟瑜涛及会计机构负责人(会计主 管人员)朱福红声明：保证季度报告中财务报表的真实、准确、完整。 2 大连电瓷集团股份有限公司 2018 年第三季度报告正文 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 大连电瓷集团股份有限公司 2018 年第三季度报告正文 □ 适用 √ 不适用 公司报告期不存在将根据《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》定义、列举的非经常性损益 项目界定为经常性损益的项目的情形。 二、报告期末股东总数及前十名股东持 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 321,119,325.96, a decrease of 13.78% compared to CNY 372,452,007.72 in the same period last year[18]. - The net profit attributable to shareholders was CNY 4,497,705.16, down 88.43% from CNY 38,863,523.50 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was CNY 704,119.57, a significant decline of 97.93% compared to CNY 34,012,502.11 in the previous year[18]. - The net cash flow from operating activities was CNY 32,425,483.96, which represents a decrease of 34.61% from CNY 49,586,821.84 in the same period last year[18]. - Basic and diluted earnings per share were both CNY 0.011, reflecting a decrease of 89.00% compared to CNY 0.1 in the previous year[18]. - The weighted average return on equity was 0.50%, down 4.07 percentage points from 4.57% in the same period last year[18]. - Total assets at the end of the reporting period were CNY 1,367,621,864.63, a decrease of 7.19% from CNY 1,473,506,263.96 at the end of the previous year[18]. - The net assets attributable to shareholders were CNY 890,247,193.54, a slight decrease of 0.13% from CNY 891,385,550.74 at the end of the previous year[18]. Revenue and Sales - In the first half of 2018, the company achieved operating revenue of 32,111.93 million, a decrease of 13.78% compared to the same period last year[40]. - The revenue from insulators was ¥317,933,426.73, accounting for 99.01% of total revenue, with a year-on-year decrease of 10.12%[48]. - Domestic sales contributed ¥265,044,238.91, representing 82.54% of total revenue, down 16.76% from the previous year[48]. - The gross profit margin for insulators was 24.75%, a decrease of 14.57 percentage points compared to the previous year[49]. Costs and Expenses - The cost of goods sold increased by 4.17% to ¥241,527,785.05, while sales expenses decreased by 17.48% to ¥16,308,301.11[46]. - Research and development expenses were ¥15,143,851.48, down 15.95% from ¥18,017,509.89 in the previous year[46]. - The cash outflow for purchasing goods and services was CNY 178,275,244.59, an increase from CNY 147,063,334.87 in the previous period[148]. Investments and Subsidiaries - The company completed a private fund management registration for its wholly-owned subsidiary, aiming to explore new external growth points[42]. - The newly established subsidiary, Jiaxing Zhenzhuo New Investment Partnership, aims to enhance the company's industrial layout and profitability[64]. - The main subsidiary, Dalian Electric Porcelain Group Transmission and Transformation Materials Co., Ltd., had total assets of approximately 1.28 billion yuan and a net profit of 154.03 million yuan during the reporting period[63]. - The company has a total of 10 subsidiaries included in the consolidated financial statements, with one new subsidiary added compared to the previous period[168]. Risks and Challenges - The report highlights potential risks and countermeasures faced by the company, which investors should pay attention to[5]. - The competitive landscape has intensified due to increased industry capacity and rising raw material costs, impacting profit margins[40]. - The company anticipates a significant decline in performance due to reduced demand for high-voltage insulators and increased competition in the market[67]. - The company faces risks related to macro policies and market competition, particularly in the high-voltage transmission line investment which has started to decline[68]. - Rising costs of raw materials, particularly steel and various mineral resources, are expected to affect the company's operating performance[71]. Cash Flow Management - The cash flow from operating activities was CNY 359,252,244.13, an increase from CNY 327,485,091.52 in the same period last year[146]. - The cash flow from investing activities showed a net outflow of CNY 11,804,418.17, compared to a net outflow of CNY 51,025,429.31 in the previous period[148]. - Cash inflow from financing activities was CNY 48,720,000.00, while cash outflow was CNY 86,231,837.21, leading to a net cash flow of -CNY 37,511,837.21[148]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - Several executives, including Chairman Zhu Guancheng and Vice Chairman Dou Gang, failed to fulfill their shareholding increase commitments due to inability to raise funds, which was publicly disclosed on August 23, 2018[81]. - The total number of ordinary shareholders at the end of the reporting period was 43,522[115]. - The largest shareholder, Funiing Rare Earth Yilong, held 23.03% of the shares, amounting to 93,830,000 shares, with a pledge status of the same number[115]. Compliance and Governance - The company's semi-annual financial report was not audited, indicating a lack of external verification for the reported financial data[82]. - There were no significant litigation or arbitration matters reported during the reporting period, reflecting a stable legal environment for the company[85]. - The company did not engage in any major related party transactions during the reporting period, indicating a focus on independent operations[91]. - The company did not experience any penalties or corrective actions during the reporting period, indicating compliance with regulatory requirements[87]. Future Outlook - The company plans to continue expanding its market presence and invest in new product development[157]. - The company is actively seeking to obtain high-tech enterprise status to benefit from related tax policies, which currently poses a risk of not achieving this qualification[69].

大连电瓷集团股份有限公司 2018 年第一季度报告全文 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 大连电瓷集团股份有限公司 公司负责人朱冠成、主管会计工作负责人石磊及会计机构负责人(会计主管 人员)朱福红声明：保证季度报告中财务报表的真实、准确、完整。 2 2018 年第一季度报告 2018 年 04 月 1 大连电瓷集团股份有限公司 2018 年第一季度报告全文 第一节 重要提示 大连电瓷集团股份有限公司 2018 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 追溯调整或重述原因 其他原因 | | 本报告期 | 上年同期 | | 本报告期比上年 同期增减 | | --- | --- | --- | --- | --- | | | | 调整前 | 调整后 | 调整后 | | 营业收入（元） | 186,939,309.93 | 204,690,460.10 | 204,69 ...

Financial Performance - The company's operating revenue for 2017 was CNY 832,787,070.66, representing a 10.62% increase compared to CNY 752,828,611.22 in 2016[16] - The net profit attributable to shareholders of the listed company decreased by 37.01% to CNY 59,312,313.43 from CNY 94,167,518.80 in the previous year[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 51,893,104.98, down 37.93% from CNY 83,598,093.64 in 2016[16] - Basic earnings per share decreased by 34.78% to CNY 0.15 from CNY 0.47 in the previous year[17] - The company reported a net profit of CNY 444.681 million in 2017, reflecting a significant decline from the previous year[179] Cash Flow and Assets - Cash generated from operating activities increased by 40.33% to CNY 84,013,191.74 compared to CNY 59,868,799.50 in 2016[17] - Total assets at the end of 2017 were CNY 1,473,506,263.96, a 5.56% increase from CNY 1,395,859,292.19 at the end of 2016[17] - The total assets of the company as of the end of 2017 were CNY 4,509.488 million, indicating a stable asset base despite revenue challenges[179] - The total cash and cash equivalents decreased by 369.88% to -35,131,187.12 CNY, compared to an increase of 13,017,558.89 CNY in 2016[65] Revenue Breakdown - Total revenue for the fourth quarter reached ¥274,603,551.29, showing a significant increase compared to previous quarters[21] - The sales revenue from suspension porcelain insulators was 652.24 million yuan, accounting for 78.32% of total revenue, with a year-on-year increase of 13.27%[49] - The company's total operating costs for porcelain insulators increased by 20.30% to 387,150,536.19 CNY in 2017[55] - The company's total revenue from major products in 2017 was 387,150,536.19 CNY for porcelain insulators, representing a 20.30% increase compared to 321,813,343.70 CNY in 2016[55] Investments and Subsidiaries - The company invested in four new wholly-owned subsidiaries during the reporting period, including Shanghai Cizhun Trading Co., Ltd. with a registered capital of 50 million CNY[57] - The company established two wholly-owned subsidiaries, Shanghai Cisen Trading Co., Ltd. with a registered capital of RMB 100 million and Shanghai Cizun Trading Co., Ltd. with a registered capital of RMB 50 million, to enhance import and export business and trade specialization[76] - The company acquired 39% equity of Dalian Electric Porcelain from seven individual shareholders to strengthen control and improve decision-making efficiency, which did not significantly impact current earnings[77] Market Position and Strategy - The company successfully developed new products, including the 840kN porcelain insulator and the 1100kV ultra-high voltage composite insulator, enhancing its market position[35] - The company plans to continue seeking external partnerships and acquisitions to achieve scale expansion under controllable risks[41] - The company aims to improve product quality and user service while optimizing internal resources and gradually increasing outsourcing to enhance operational efficiency[81] - The company plans to focus on stabilizing its core business of insulators while exploring related industries and potential mergers and acquisitions to enhance risk resistance and prepare for the next development cycle[81] Challenges and Risks - In 2017, the company faced significant pressure on profit margins due to rising costs of raw materials and labor, impacting production operations[80] - The company faces risks from macro policy changes, particularly related to the power grid construction investment scale, which could negatively impact performance if new profit points are not identified[87] - Rising raw material costs, particularly for steel and minerals, pose a risk to production budgets and cost control, potentially affecting operating performance[89] Corporate Governance and Compliance - The company has established a cash dividend policy that aligns with shareholder interests, ensuring transparency and compliance with regulations[98] - The company strictly fulfilled the share transfer commitment, which prohibits transferring shares for 12 months from the date of acquisition, as per the commitment made in September 2016[106] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[109] Employee and Management Structure - The company has a total of 1,362 employees, with 658 in production, 59 in sales, 279 in technology, 18 in finance, and 348 in administration[199] - The total remuneration for the board of directors and senior management during the reporting period amounted to 483.98 million CNY[196] - The company implemented a capital reserve distribution on May 12, 2017, resulting in an increase of restricted shares for key executives, including Dou Gang's from 315,000 to 630,000 shares[198] Future Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[182] - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[191] - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization[191]