Financial Performance - The company's operating revenue for 2022 was ¥859,138,435.94, a decrease of 43.38% compared to ¥1,517,242,646.81 in 2021[23]. - The net profit attributable to shareholders was -¥757,080,018.48, representing an increase in losses of 11.00% from -¥682,080,613.84 in the previous year[23]. - The net cash flow from operating activities improved significantly to ¥283,140,809.64, a 251.44% increase from -¥186,962,291.57 in 2021[23]. - The total assets at the end of 2022 were ¥10,162,695,269.84, down 9.33% from ¥11,208,432,382.18 at the end of 2021[23]. - The net assets attributable to shareholders decreased by 46.03% to ¥890,676,209.91 from ¥1,650,400,324.71 in 2021[23]. - The basic earnings per share for 2022 was -¥0.6412, a decline of 11.01% from -¥0.5776 in 2021[23]. - The weighted average return on equity was -59.53%, worsening from -31.87% in the previous year[23]. - The company reported a significant reduction in revenue from non-core activities, with total revenue after deductions amounting to ¥831,023,444.19 in 2022 compared to ¥1,444,446,978.30 in 2021[24]. - The company achieved total operating revenue of ¥859,138,435.94, a decrease of 43.38% compared to the previous year[65]. - The net profit attributable to shareholders of the parent company was -¥757,080,018.48, representing an increase in loss of 11.00% year-on-year[65]. Market Risks and Challenges - The company faces risks related to market demand decline and intensified competition, which could lead to reduced market share or gross margin[5]. - The company acknowledges the risk of bad debts from accounts receivable, which may increase as the total accounts receivable grows[5]. - The company is exposed to risks from fluctuations in raw material prices, particularly steel, which could impact profitability[6]. - The company highlighted the long production cycles (typically 1-2 years) for its products, which may lead to significant price changes during production[6]. - The company is at risk of insufficient working capital due to the long payment cycles associated with large EPC contracts[6]. - The company noted potential delays or cancellations of orders due to macroeconomic policy changes or other uncontrollable factors[6]. - The company faces challenges due to economic downturns and funding shortages, impacting new orders and project completions[68]. - The company acknowledges the risk of accounts receivable defaults and plans to strengthen process control and improve product quality to ensure timely payment collection[122]. - The company is addressing the risk of insufficient working capital by exploring various financing methods to support major project execution[123]. Strategic Focus and Future Outlook - The company's future outlook remains cautious due to potential changes in industry policies and market conditions[5]. - The company aims to become a leading domestic and internationally recognized supplier of new energy utilization systems within the next three to five years[113]. - In 2023, the company plans to focus on core businesses, including efficient clean energy coal power utilization, waste-to-energy, and biomass power generation, aiming for stable growth in order reserves and customer satisfaction[114]. - The company targets to complete no less than the established goals for photovoltaic and solar thermal EPC projects in 2023, while also promoting hydropower and compressed energy storage projects[114]. - The company anticipates that the total installed power generation capacity will reach approximately 28.1 billion kilowatts by the end of 2023, with non-fossil energy capacity expected to increase to approximately 14.8 billion kilowatts[40]. - The company is positioned to benefit from the ongoing transition to green and low-carbon energy sources, with significant growth expected in renewable energy sectors[42]. Research and Development - The company has developed a professional talent team of approximately 300 individuals specializing in R&D, design, manufacturing, and sales of power station boilers and industrial boilers, contributing to continuous technological innovation and quality management[55]. - The company holds a total of 316 patents, including invention and utility model patents, focusing on energy-saving and emission-reduction technologies[61]. - The company has successfully developed biomass boilers that can adapt to 9 different fuel types, with notable projects including the first 35t/h palm shell boiler exported to Malaysia and a 300t/h biomass boiler exported to Thailand[57]. - The company’s research and development expenses increased by 6.72% to ¥43,055,171.08, reflecting ongoing investment in innovation[66]. - The company has signed new contracts for total orders in the photovoltaic new energy and clean energy sectors, but the new signed orders for boiler equipment decreased significantly[68]. Environmental and Social Responsibility - The company has implemented measures to reduce carbon emissions, including upgrading the feed system and replacing the crusher, which has improved the uniformity of waste input and reduced reliance on coal[190]. - The company has conducted three public environmental open activities in 2022 to engage with the community[193]. - The company has donated over 100,000 yuan to support education for children in impoverished areas and provided essential supplies worth approximately 2 million yuan during the pandemic[198]. - The company actively participates in community service, including volunteer activities and blood donation campaigns, contributing a total of 11,400cc of blood[198]. - The company has adhered to major environmental protection laws and standards, including the Environmental Protection Law of the People's Republic of China[179]. Governance and Management - The company maintains complete independence from its controlling shareholder in terms of business, assets, personnel, organization, and finance, ensuring a fully autonomous operational capability[131]. - The company has a clear and transparent management structure, with all senior management personnel working exclusively for the company and not holding positions in the controlling shareholder's other enterprises[133]. - The company has established a robust governance structure that includes independent directors who actively participate in decision-making processes[129]. - The company has implemented a comprehensive information disclosure management system to ensure the accuracy and timeliness of its disclosures[131]. - The company has established a dedicated team to manage investor relations, enhancing transparency and communication with stakeholders[132]. Operational Efficiency - The company has established effective internal control systems covering financial, information, market, production, technology, safety, quality, investment, administration, and human resources[130]. - The company has a robust independent financial management system, operating as an independent taxpayer[134]. - The company has implemented a performance evaluation system for employees, linking compensation to specific performance metrics[164]. - The company has established a profit distribution policy that emphasizes reasonable returns to investors, maintaining continuity and stability in profit distribution practices[166]. - The company has a solid waste facility with a storage capacity of over 5000 tons for household waste, which is currently in use[185].

Group 1: Investor Relations Activity - The investor relations activity was categorized as a specific object survey [2] - Participants included Hai Tong Securities and Guo Lian Securities [2] - The meeting took place on June 24, 2015, at the Beijing branch of Huaxi Energy [2] Group 2: Key Discussion Points - Discussion on Huaxi Energy's non-public issuance to acquire Tianhe (Baoding) Environmental Engineering Co., Ltd. [2] - Overview of the company's overseas business development [2] Group 3: Company Representatives - The meeting was hosted by the board secretary, Li Wei [2]

华西能源工业股份有限公司 2022 年第三季度报告 证券代码：002630 证券简称：华西能源 公告编号：2022-064 华西能源工业股份有限公司 2022 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 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比上年 | | --- | --- | --- | --- | --- | | | | 增减 | | 同期增减 | | 营业收入（元） | 167,364,910.80 | -20.89% | 479,422,022.78 | -42.93% | | 归属于上市公司 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥312,057,111.98, a decrease of 50.35% compared to ¥628,566,273.20 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was -¥330,893,079.11, representing a decline of 109.37% from -¥158,044,185.62 in the previous year[22]. - The net cash flow from operating activities increased by 101.04% to ¥78,879,793.62, compared to ¥39,235,028.21 in the same period last year[22]. - The total assets at the end of the reporting period were ¥10,858,357,410.81, down 3.12% from ¥11,208,432,382.18 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company decreased by 20.35% to ¥1,314,622,162.71 from ¥1,650,400,324.71 at the end of the previous year[22]. - The basic earnings per share were -¥0.2802, a decline of 109.42% from -¥0.1338 in the same period last year[22]. - The weighted average return on net assets was -22.28%, a decrease of 15.70% compared to -6.58% in the previous year[22]. - The company achieved total revenue of ¥312,057,111.98, a decrease of 50.35% compared to the same period last year[37]. - The company reported a net investment income of CNY 37,034,661.32, which accounted for 9.95% of the total profit, reflecting a 60.69% increase due to higher profits from long-term investments[68]. - The total comprehensive income for the first half of 2022 was a loss of CNY 353,114,372.82, compared to a loss of CNY 170,006,601.68 in the first half of 2021, reflecting a worsening of 107.5%[184]. Risks and Challenges - The company faces risks related to market demand decline and intensified competition, particularly in the power supply and municipal engineering sectors[4]. - The company acknowledges the risk of bad debts from accounts receivable, which may increase as the total accounts receivable grows[5]. - The company is exposed to risks from fluctuations in raw material prices, particularly steel, which can impact profit margins[6]. - The company highlighted the long payment cycles associated with large contracts, which may lead to insufficient working capital if payments are delayed[6]. - The company is at risk of project delays or cancellations due to macroeconomic policy changes or funding issues from clients[6]. - The company faces operational funding risks due to long payment cycles in large-scale projects, which could impact the execution of existing orders[86]. - There is a risk of inventory orders not being executed as expected due to macro policy adjustments and other uncontrollable factors, potentially leading to project delays or cancellations[87]. - The company faces risks related to declining market demand and increased competition, particularly in the boiler manufacturing and engineering contracting sectors[85]. Market and Industry Trends - The company operates in a highly competitive environment closely tied to macroeconomic conditions and industry developments[4]. - The production of power station boilers in China has been declining since 2017, with a total output of 257,362 tons in 2020, representing a year-on-year decrease of 6.50%[44]. - The share of non-fossil energy consumption in China is projected to increase from 15.8% at the end of 2020 to around 25% by 2030, with over 70% of energy increments coming from non-fossil sources[46]. - By 2050, China's non-fossil energy share is expected to reach 78%, with coal consumption decreasing by 90% compared to 2019 levels[45]. - The overall power generation capacity in China reached 2.44 billion kilowatts, with a year-on-year growth of 8.1%[40]. - The company is actively expanding into clean energy sectors such as solar thermal, wind, and nuclear power, in response to declining demand for traditional thermal power projects[38]. Operational Insights - The company operates under a "make-to-order" model due to the customized nature of its boiler products, which are high-value and have long production cycles[34]. - The company has developed a range of special boilers, including circulating fluidized bed boilers and biomass boilers, which have significant market development potential[47]. - The company has successfully exported various biomass fuel boilers, including a 300t/h boiler to Thailand, showcasing its industry-leading position in the biomass and renewable energy equipment sector[52]. - The company has a stable product quality and a comprehensive product series, which has helped establish a strong brand image in the market[51]. - The company’s R&D team includes numerous industry experts, contributing to continuous innovation and improvement in its technological capabilities[50]. Financial Management and Strategy - The company does not plan to distribute cash dividends or issue bonus shares[7]. - The company plans to enhance market development, optimize design, and improve product quality to maintain competitiveness[85]. - The company aims to ensure timely recovery of payments by improving service quality and maintaining strong client relationships[85]. - The company plans to address funding needs through self-funding, direct bank financing, capital market financing, and partnerships to ensure contract fulfillment[86]. - The company is well-positioned to capture more domestic and international engineering contract orders due to its qualifications and capabilities in power engineering[48]. Environmental Responsibility - The company has constructed two sets of flue gas purification devices, including SNCR desulfurization and denitrification equipment, which are operating normally[97]. - The wastewater treatment facilities have a processing capacity of 72 tons per day, with treated water reused for landscaping and dust control[98]. - The company has established a solid waste facility with a storage capacity of 5000 tons for domestic waste, which is functioning properly[99]. - An environmental risk prevention facility has been built, including an 800 m³ accident pool, to enhance safety measures[99]. - The company has completed its greening requirements for the factory area as part of its environmental responsibility[99]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[103]. Legal and Compliance Matters - The company has not experienced any major litigation or arbitration matters during the reporting period[118]. - The company is involved in a lawsuit with Tianfu Nan Electric Co., claiming product defects, with a total amount of 24.0776 million yuan at stake[119]. - The company is currently in litigation regarding a claim for 85.8281 million yuan from China Machinery Construction Group due to contract termination[120]. - There are no penalties or rectification measures reported during the reporting period[121]. Shareholder Information - The total number of shares outstanding is 1,180,800,000, with 82.26% being unrestricted shares[159]. - The largest shareholder, Li Renchao, holds 23.05% of the shares, totaling 272,211,184 shares, with 216,200,000 shares pledged[161]. - The company has 121,846 common stock shareholders as of the report date[161]. - The controlling shareholder, Mr. Li Renchao, held 272,211,184 shares, representing 23.05% of the total share capital, but faced judicial disposal of 104,935,504 shares due to loan guarantees[164].

Financial Performance - The company's operating revenue for 2021 was ¥1,517,242,646.81, a decrease of 31.26% compared to ¥2,207,318,678.96 in 2020[22]. - The net profit attributable to shareholders was -¥682,080,613.84, representing a decline of 46.45% from -¥465,749,056.28 in the previous year[22]. - The net cash flow from operating activities was -¥186,962,291.57, a significant drop of 598.44% compared to ¥37,509,575.80 in 2020[22]. - The total assets at the end of 2021 were ¥11,208,432,382.18, down 9.75% from ¥12,419,837,727.04 at the end of 2020[22]. - The net assets attributable to shareholders decreased by 33.49% to ¥1,650,400,324.71 from ¥2,481,358,760.81 in 2020[22]. - The basic earnings per share for 2021 was -¥0.5776, a decline of 46.45% from -¥0.3944 in 2020[22]. - The weighted average return on equity was -31.87%, a decrease of 15.96% compared to -15.91% in 2020[22]. - The company reported a significant reduction in revenue from non-core activities, with a total of ¥72,795,668.51 deducted from operating revenue in 2021[23]. - The company achieved total operating revenue of ¥1,517,242,646.81, a decrease of 31.26% compared to the previous year[62]. - The net profit attributable to shareholders was -¥682,080,613.84, representing a decline of 46.45% year-on-year[60]. - The number and amount of new orders signed decreased significantly, with a total contract amount of ¥2,922,000,000, down 33.77% from the previous year[63]. - Research and development expenses were ¥40,344,200.97, a reduction of 47.50% due to decreased new orders and project design[62]. - The company reported a gross margin of 3.28% for the mechanical engineering and boiler manufacturing sector, down from the previous year[70]. Market and Competition - The company faces risks related to market demand decline and intensified competition, which could impact market share and profit margins[5]. - The company operates in a competitive energy sector, with a focus on transitioning to non-fossil energy sources, which accounted for 47.0% of total installed capacity by the end of 2021[35]. - The company is expected to face increasing competition and must adapt to the growing demand for renewable energy and energy storage solutions[40]. - The overall installed capacity of coal power is projected to be around 11.4 billion kilowatts by the end of 2022, indicating a continued reliance on traditional energy sources[38]. - The company anticipates a continuous decline in investment in thermal power generation, with traditional thermal boiler products facing increasing market restrictions[43]. - The company has identified risks related to project delays or cancellations due to macro policy adjustments and funding arrangements[75]. - The company faces risks from declining market demand and intensified competition, particularly in the energy and public utility sectors, which are closely tied to macroeconomic conditions[120]. Research and Development - The company has developed a diverse range of boiler products, including biomass boilers and waste incineration boilers, which are expected to see significant market growth[44]. - The company is recognized as a high-tech enterprise with the capability to independently research and produce supercritical boiler systems[49]. - The company has a total of 298 patents, including invention and utility model patents, focusing on energy-saving and emission-reduction technologies[56]. - The company obtained 52 new patents during the reporting period, contributing to its technological advancements[84]. - The company's R&D investment amounted to ¥40,344,200.97 in 2021, a decrease of 47.50% compared to ¥76,843,922.56 in 2020, representing 2.66% of operating revenue, down from 3.48%[85]. - The number of R&D personnel decreased by 6.11% from 131 in 2020 to 123 in 2021, while the proportion of R&D personnel in the total workforce increased from 10.51% to 11.46%[85]. Environmental Initiatives - The company reported a significant focus on energy-efficient boilers, environmental protection boilers, and new energy utilization boilers, which are critical to its product line[5]. - The company has implemented various energy-saving measures, including promoting green procurement and paperless operations, to improve environmental efficiency[189]. - The company has completed environmental impact assessments and received approvals for its projects, with the latest approval obtained on December 10, 2021[182]. - The company has established an environmental risk prevention facility, including an 800 m³ accident pool, which is in normal standby[181]. - The company has publicly displayed its environmental monitoring data on a large screen at the factory entrance, ensuring transparency[182]. Governance and Management - The company maintains complete independence from its controlling shareholder in terms of business, assets, personnel, organization, and finance, with a fully independent R&D, production, supply, and sales system[131]. - The company has established a robust governance structure that complies with relevant laws and regulations, ensuring transparency and accountability[132]. - The company has a clear and transparent hiring process for its management team, ensuring that all senior management personnel are exclusively employed by the company and not by the controlling shareholder[133]. - The company actively engages in investor relations management, providing timely responses to investor inquiries and maintaining open communication channels[132]. - The company has established a comprehensive internal control system covering financial, information, market, production, technology, safety, quality, investment, administration, and human resources, ensuring effective supervision and guidance over operations[130]. Strategic Plans - The company aims to leverage national strategies such as the Belt and Road Initiative to expand its presence in both domestic and international clean energy markets[44]. - The company plans to collaborate with new energy investment institutions to expand into fields such as waste-to-energy, biomass, wind energy, photovoltaics, hydrogen energy, and energy storage[117]. - The company aims to optimize its asset structure in 2022, focusing on reducing high leverage and improving cash flow from core operations[112]. - The company plans to dispose of underperforming assets in the solid waste treatment project through equity transfer or cooperative management to recover funds quickly[114]. - The company is committed to becoming a leading supplier of new energy utilization system solutions within the next three to five years[111]. Employee and Stakeholder Relations - The company has a cash dividend policy that stipulates at least 10% of the distributable profit should be distributed in cash, with a cumulative distribution of at least 30% over any three consecutive years[165]. - The company reported no cash dividend distribution plan for the current year, despite having positive distributable profits[168]. - The company employs a performance-based salary system, with management on an annual salary system and other employees on a performance wage system[161]. - The company has no current plans for stock dividends or capital reserve transfers to increase share capital[168]. - The company has established a comprehensive internal control system that meets the requirements for listed companies, ensuring effective decision-making, execution, and supervision mechanisms[170].

Financial Performance - The company's operating revenue for Q1 2022 was ¥235,529,859.87, a decrease of 45.98% compared to ¥436,003,608.88 in the same period last year[3] - The net profit attributable to shareholders was -¥154,695,222.81, representing a decline of 186.21% from -¥54,049,171.99 year-on-year[3] - The net cash flow from operating activities was -¥30,713,757.72, a significant drop of 167.21% compared to ¥45,695,344.82 in the previous year[3] - The weighted average return on equity was -8.88%, down by 6.83 percentage points from -2.05% in the same period last year[3] - The company reported a trading financial asset balance of 2,090,909.80 CNY, up from 1,886,319.80 CNY at the beginning of the year[18] - Total operating revenue for Q1 2022 was CNY 235,529,859.87, a decrease of 46.9% compared to CNY 436,003,608.88 in the same period last year[22] - Total operating costs for Q1 2022 were CNY 344,489,381.37, down 33.6% from CNY 519,194,477.13 year-over-year[22] - Net loss for Q1 2022 was CNY 158,167,981.83, compared to a net loss of CNY 55,091,469.71 in Q1 2021, representing an increase in loss of 187.5%[23] - The total comprehensive income attributable to the parent company was -154,652,563.94 CNY, compared to -53,633,690.76 CNY in the previous period, indicating a significant decline[24] - The company reported a basic and diluted earnings per share of -0.1310 CNY, compared to -0.0458 CNY in the previous year[24] Assets and Liabilities - Total assets at the end of the reporting period were ¥11,168,639,058.17, a slight decrease of 0.36% from ¥11,208,432,382.18 at the end of the previous year[3] - Current liabilities totaled CNY 6,806,928,530.04, an increase of 1.8% from CNY 6,688,696,369.96 in the previous period[20] - Long-term borrowings amounted to CNY 2,312,680,108.33, up from CNY 2,279,619,145.83, indicating a 1.4% increase[20] - The company's cash and cash equivalents decreased from 265,812,290.33 CNY at the beginning of the year to 186,636,493.70 CNY by the end of the first quarter[18] - The company's cash and cash equivalents decreased, impacting liquidity, with total current assets at CNY 6,952,965,754.02, down from CNY 7,084,748,851.62[20] - Cash and cash equivalents at the end of the period were 40,836,633.80 CNY, down from 100,299,252.59 CNY at the end of the previous period[25] Shareholder Information - The total number of shareholders is 10, with the largest shareholder, Li Renchao, holding 23.05% of shares, amounting to 272,211,184 shares[14] - The company has a significant portion of shares pledged, with Li Renchao having 216,200,000 shares pledged out of his total holdings[14] - The shareholder structure shows a concentration of ownership, with the top three shareholders holding over 25% of the total shares[14] Expenses and Income - The company experienced a 71.82% increase in selling expenses, which amounted to ¥4,376,509.26, up from ¥2,547,123.35 year-on-year[8] - The company recorded a 346.34% increase in other income, reaching ¥5,062,820.41 compared to ¥1,134,302.29 in the previous year[8] - Research and development expenses for Q1 2022 were CNY 11,232,104.42, a decrease of 16.3% from CNY 13,422,404.66 in the previous year[22] - The company reported a significant increase in credit impairment losses of CNY 104,773,329.55 compared to a gain of CNY 8,554,419.38 in the previous year[23] Legal and Regulatory Matters - The company is currently involved in multiple ongoing litigations, including a claim for 24.08 million CNY related to product defects and a separate claim for 18.61 million USD (approximately 120 million CNY) regarding a bank guarantee[16] - The company’s financial report indicates a focus on resolving ongoing legal disputes, which may impact future financial performance[16] - The company has not disclosed any new product developments or market expansion strategies in the current report[16] - The company has not provided specific guidance for future performance in the current report[16] - The company did not conduct an audit for the first quarter report[26]

Financial Performance - The company's operating revenue for Q3 2021 was ¥211,555,108.36, a decrease of 77.01% compared to the same period last year[3]. - The net profit attributable to shareholders was -¥83,650,102.63, reflecting a significant decline of 1,262.66% year-on-year[3]. - Basic earnings per share were -¥0.0709, representing a decrease of 809.00% year-on-year[3]. - The company reported a 59.72% decline in operating revenue for the year-to-date period, totaling ¥840,121,381.56[11]. - Total operating revenue for Q3 2021 was ¥840,121,381.56, a decrease of 59.8% compared to ¥2,085,913,436.06 in the same period last year[24]. - The net profit for Q3 2021 was a loss of ¥244,990,245.76, compared to a profit of ¥18,296,912.38 in Q3 2020, marking a significant decline[25]. - The company reported a comprehensive income total of -¥244,581,912.19 for Q3 2021, compared to ¥18,769,421.63 in the previous year[26]. - Basic and diluted earnings per share for Q3 2021 were both -¥0.2047, a decrease from ¥0.0173 in Q3 2020[26]. Cash Flow and Assets - The cash flow from operating activities for the year-to-date period was ¥37,673,268.40, down 89.96% compared to the previous year[3]. - Cash flow from operating activities generated a net cash inflow of ¥37,673,268.40, down 89.9% from ¥375,199,298.99 in the same quarter last year[27]. - The cash received from sales of goods and services was ¥923,507,086.13, down 53.85% year-on-year[13]. - The company reported a significant increase of 1,415.15% in cash received from investment activities, totaling ¥15,000,000.00[14]. - The cash and cash equivalents at the end of the period totaled 183,041,724.20, compared to 398,042,970.50 at the end of the previous year[28]. - The company's current assets decreased to CNY 7,725,405,517.22 from CNY 8,551,205,699.63, reflecting a decline of approximately 9.7%[22]. - Accounts receivable decreased to CNY 1,313,672,832.53 from CNY 1,619,358,908.57, representing a reduction of about 19%[21]. - Inventory levels decreased to CNY 878,029,920.57 from CNY 982,824,017.42, indicating a decline of approximately 10.6%[22]. Liabilities and Equity - Total liabilities increased to CNY 9,871,657,105.15 from CNY 9,753,908,617.53, marking an increase of about 1.2%[23]. - The company's equity attributable to shareholders decreased to CNY 2,239,007,717.40 from CNY 2,481,358,760.81, a decline of about 9.8%[23]. - Long-term borrowings increased to CNY 2,423,500,000.00 from CNY 2,224,500,000.00, reflecting an increase of approximately 8.9%[23]. - The company's short-term borrowings remained relatively stable at CNY 2,190,400,000.00 compared to CNY 2,198,450,000.00 in the previous period[23]. Shareholder Information - Total number of common shareholders at the end of the reporting period is 62,307[16]. - The largest shareholder, Li Renchao, holds 23.05% of shares, totaling 272,211,184 shares, with 216,200,000 shares pledged[16]. - The second-largest shareholder, Jiang Zhongping, holds 2.22% of shares, totaling 26,218,895 shares[16]. - The top ten shareholders collectively hold significant stakes, with the first three shareholders accounting for 26.43% of total shares[16]. - The company’s shareholder structure shows a concentration of ownership, which may impact governance and decision-making processes[16]. Legal Matters - The company has ongoing litigation involving claims of 24.0776 million yuan related to product defects from a contract signed in 2005[18]. - A separate lawsuit involves a contract worth 186.1 million USD with Indian TRN ENERGY PVT.LTD, with a claim for 12 million yuan currently in court[18]. - The company has terminated contracts with China Machinery Construction Group due to severe delays, with claims totaling 85.8281 million yuan pending in court[18]. - The company is involved in multiple legal disputes, indicating potential financial implications and operational challenges[18]. - The report highlights the importance of monitoring shareholder dynamics and ongoing legal matters for future strategic decisions[17]. Research and Development - Research and development expenses decreased by 34.74% to ¥46,585,276.91 compared to the same period last year[11]. - Research and development expenses for Q3 2021 were ¥46,585,276.91, a decrease of 34.7% compared to ¥71,378,762.08 in Q3 2020[24]. Financial Adjustments and Standards - The company did not require adjustments to the beginning balance sheet items under the new leasing standards[30]. - The company did not engage in any new leasing arrangements that would necessitate adjustments to the financial statements[30]. - The third-quarter report was not audited, indicating a potential area for further scrutiny[31]. Other Financial Metrics - The company incurred financial expenses of ¥177,960,103.80, which included interest expenses of ¥180,632,586.07, up from ¥168,582,280.79 in the previous year[24]. - The company reported an increase in tax and additional fees to ¥13,475,809.11, compared to ¥10,518,996.61 in the same period last year[24]. - The net cash flow from investment activities was -118,266,246.31, a significant decrease compared to -1,209,111,219.01 from the previous year[28]. - Total cash inflow from financing activities amounted to 1,808,700,000.00, while cash outflow was 1,689,018,506.90, resulting in a net cash flow of 119,681,493.10[28]. - Cash received from borrowings was 1,793,700,000.00, a decrease from 2,903,948,333.33 in the previous year[28]. - The impact of exchange rate fluctuations on cash and cash equivalents was -22,378.22, reflecting a minor negative effect[28].

Market Risks and Competition - The company reported a significant risk of market demand decline and intensified competition, particularly in the power generation and municipal engineering sectors, which are closely tied to macroeconomic conditions [7]. - The company faces challenges such as reduced market demand for traditional thermal power projects and increased competition in the industry [39]. - The market for electric boilers is becoming increasingly competitive, with over 20 companies capable of large-scale production of power station boilers [48]. - The company faces risks from declining market demand and intensified competition, particularly in the boiler manufacturing and engineering contracting sectors [88]. Financial Performance - The company's operating revenue for the first half of 2021 was ¥628,566,273.20, a decrease of 46.07% compared to the same period last year [24]. - The net profit attributable to shareholders was a loss of ¥158,044,185.62, representing a decline of 1,299.42% year-on-year [24]. - The net cash flow from operating activities was ¥39,235,028.21, down 82.47% from the previous year [24]. - The basic earnings per share were -¥0.1338, a decrease of 1,294.64% compared to the same period last year [24]. - Total assets at the end of the reporting period were ¥12,332,476,213.79, a decrease of 0.70% from the end of the previous year [24]. - The net assets attributable to shareholders were ¥2,344,034,323.35, down 5.53% from the previous year [24]. - The weighted average return on net assets was -6.58%, a decline of 6.97% compared to the previous year [24]. - The company reported a significant increase in non-recurring losses, with a total of ¥1,869,436.66 after tax adjustments [29]. - Operating profit was -¥188,639,566.47, down 1131.07% year-on-year; total profit was -¥189,136,035.18, a decline of 1100.45% [38]. Production Costs and Raw Materials - The company highlighted that approximately 90% of the production costs for boiler products are attributed to raw materials, primarily steel, which poses a risk due to potential price fluctuations during the long production cycles of 1 to 2 years [8]. - The main raw materials for boiler products, including steel plates and pipes, account for approximately 90% of production costs, exposing the company to risks from price fluctuations [90]. - The company's gross margin for boiler and supporting products decreased by 26.52%, reflecting increased costs of raw materials and transportation [69]. Working Capital and Financing - The company faces a risk of insufficient working capital as the demand for large EPC project contracts increases, which could impact the execution of major orders [9]. - The company plans to address funding needs for major projects through self-funding, direct bank financing, capital market financing, and partnerships with third parties [91]. - The cash flow from financing activities decreased by 88.66% to ¥54,367,600.47, compared to ¥479,431,906.36, due to reduced cash from new borrowings [66]. Contracts and Orders - New signed contracts totaled ¥369 million, a decline of 73.43% year-on-year, indicating a significant reduction in new orders [39]. - The company has ongoing contracts with a total value of CNY 1.02 billion, with significant projects including a CNY 1.02 billion boiler project and a CNY 231.623 million PPP project [163]. - The company confirmed revenue of CNY 184.69 million from ongoing contracts, with CNY 90 million received during the reporting period [163]. Environmental and Social Responsibility - The company has constructed two sets of flue gas purification equipment and a monitoring facility that shares real-time data with local environmental authorities [100]. - The wastewater treatment facilities have a processing capacity of 100 m³/d, utilizing advanced treatment technologies to ensure compliance with environmental standards [102]. - The company has established a solid waste management system, including a 200 m² slag warehouse and a 60 m³ sludge storage tank, to handle waste effectively [103]. - The company has actively participated in social welfare activities, donating over 2 million RMB worth of medical supplies during the COVID-19 pandemic [118]. - The company has maintained a 100% compliance rate for hazardous waste disposal during the reporting period [117]. Legal Matters - The company is involved in a lawsuit with Tianfu South Thermal Power Co., claiming damages of 24.0776 million yuan due to product defects [127]. - The company is facing a lawsuit from China Machinery Construction Group for a total claim of 85.8281 million yuan due to contract termination and unpaid dues [129]. - The company has received a civil lawsuit from a contractor for 4.0373 million yuan related to construction payments [127]. - The company has reported no significant litigation or arbitration matters during the reporting period [127]. - The company is actively managing its legal disputes to mitigate financial impacts and ensure compliance with contractual obligations [127]. Research and Development - Research and development investment was ¥35,928,928.51, down 4.78% from ¥37,733,981.59, indicating a slight reduction in R&D activities [66]. - The company has a total of 284 patents, including invention and utility model patents, focusing on energy-saving and emission-reducing boiler technologies [60]. - The company has received numerous awards for its technological advancements, including the National Science and Technology Progress Award and provincial awards for various boiler projects [61]. Shareholder and Corporate Governance - The company did not issue any new shares or conduct any share buybacks during the reporting period [172]. - The company completed a board and supervisory committee election on November 5, 2020, leading to changes in the locked shares of senior management [171]. - The company reported no preferred shares or corporate bonds during the reporting period [180][183]. - The report indicates that there were no significant changes in the shareholding structure among the top ten shareholders [175].

Financial Performance - The company's operating revenue for Q1 2021 was ¥436,003,608.88, a decrease of 42.36% compared to ¥756,421,955.02 in the same period last year[8] - The net profit attributable to shareholders was -¥54,049,171.99, representing an increase in loss of 193.76% from -¥18,399,219.10 year-on-year[8] - The company reported a significant decrease in operating costs by 36.53% to ¥405,115,891.89, down from ¥638,281,350.99 year-on-year[19] - In Q1 2021, the company reported sales revenue of approximately ¥515.48 million, a year-on-year increase of 43.67% compared to ¥358.80 million in Q1 2020[21] - The company reported a net loss for Q1 2021 of CNY 55,091,469.71, worsening from a net loss of CNY 21,503,400.40 in the same period last year[46] - The total comprehensive income for the current period was -¥54,675,988.48, compared to -¥21,081,815.24 in the previous period[50] Cash Flow and Investments - The net cash flow from operating activities increased by 131.04% to ¥45,695,344.82, compared to ¥19,778,064.29 in the previous year[8] - Cash paid for purchasing goods and services increased by 37.82% to ¥416.71 million from ¥302.35 million in the same period last year[21] - The company received cash from investment recoveries amounting to ¥43.38 million, representing an 87.39% increase from ¥23.15 million in Q1 2020[21] - Cash paid for fixed assets and other long-term assets rose by 47.78% to ¥225.15 million, up from ¥152.35 million in the previous year[21] - The company reported a net cash outflow from investing activities of -¥181,438,939.36, compared to -¥128,393,878.26 in the previous period[53] - Cash inflow from financing activities was ¥50,000,000.00, a decrease from ¥1,525,000,000.00 in the previous period, indicating reduced borrowing[57] Assets and Liabilities - The total assets at the end of the reporting period were ¥12,255,410,840.80, a decrease of 1.32% from ¥12,419,837,727.04 at the end of the previous year[8] - The company's total liabilities as of March 31, 2021, were approximately 9.65 billion yuan, down from approximately 9.75 billion yuan at the end of 2020[38] - The company's equity attributable to shareholders decreased from approximately 2.48 billion yuan at the end of 2020 to approximately 2.43 billion yuan by March 31, 2021[39] - Total current assets decreased to CNY 4,117,945,430.78 from CNY 4,385,826,173.03[40] - The total assets decreased to CNY 8,616,223,959.67 from CNY 8,800,128,488.57, reflecting a contraction in the asset base[41] Research and Development - Research and development expenses rose by 122.47% to ¥13,422,404.66, up from ¥6,033,430.54 in the same period last year[19] - The company incurred research and development expenses of ¥12,008,840.69, up from ¥4,835,833.38 in the previous period, indicating a focus on innovation[49] Shareholder Information - The company had a total of 79,553 common shareholders at the end of the reporting period[11] - The company did not engage in any repurchase transactions during the reporting period[12] Legal and Contractual Matters - The company is currently involved in ongoing litigation related to product defects and contractual disputes, which may impact future operations[22] - The total amount of significant contracts includes a contract with Xinjiang Qiya Aluminum Electric Co., amounting to 1.02 billion yuan, with partial production completed but currently paused[27] - The company reported no significant differences in contract progress that would affect contract amounts by more than 30%[28] Compliance and Governance - The company has no entrusted financial management activities during the reporting period[29] - There were no violations regarding external guarantees during the reporting period[30] - The first quarter report was not audited, which may affect the reliability of the financial data presented[59]

Financial Performance - The company's operating revenue for 2020 was ¥2,207,318,678.96, a decrease of 39.08% compared to ¥3,623,174,397.03 in 2019[18]. - The net profit attributable to shareholders was -¥465,749,056.28 in 2020, a decline of 1370.60% from ¥36,655,786.62 in 2019[18]. - The net cash flow from operating activities was ¥37,509,575.80, down 94.66% from ¥702,195,094.38 in the previous year[18]. - The total assets at the end of 2020 were ¥12,419,837,727.04, a decrease of 3.53% from ¥12,874,812,962.80 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 21.49% to ¥2,481,358,760.81 from ¥3,160,570,797.20 in 2019[18]. - The basic earnings per share for 2020 was -¥0.3944, compared to ¥0.0310 in 2019, reflecting a decline of 1372.26%[18]. - The weighted average return on equity was -15.91% in 2020, down from 1.16% in 2019[18]. - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a figure of -¥469,510,299.64 for 2020[18]. - The quarterly revenue peaked in Q3 at ¥920,365,643.54, but fell to ¥121,405,242.90 in Q4[23]. - The company achieved total operating revenue of ¥2,207,318,678.96, a decrease of 39.08% compared to the previous year[50]. - Operating profit was -¥602,727,677.54, down 32,521.68% year-on-year[50]. - The company reported a significant investment decrease of 191.91% year-on-year, with total investments amounting to ¥47,350,000.00[93]. Risks and Challenges - The company faces risks related to market demand decline and intensified competition, particularly in the power supply and municipal engineering sectors[5]. - The company acknowledges the risk of raw material price fluctuations impacting profit margins, particularly for steel used in production[5]. - The company has a substantial amount of accounts receivable, which poses a risk of bad debts, although the probability remains low due to the strong financial standing of its major clients[5]. - The company is exposed to raw material price fluctuations, with steel accounting for approximately 90% of production costs, which could impact profitability[121]. - The company is addressing operational funding shortages due to large EPC project orders, which require substantial working capital[122]. - The company is at risk of delays in executing large orders due to macroeconomic policy changes and other uncontrollable factors, which could affect project timelines[122]. - The company faced significant challenges in 2020 due to the COVID-19 pandemic, resulting in a slowdown of project execution and a decrease in new orders[50]. Strategic Initiatives - The company plans to expand its operations in the EPC (Engineering, Procurement, and Construction) sector, which requires increased working capital due to large contract amounts and long construction periods[6]. - The company aims to provide diversified energy system solutions, focusing on higher efficiency and cleaner energy technologies[29]. - The company’s strategy includes enhancing its capabilities in special boilers and expanding into new markets, supported by national initiatives like the Belt and Road[38]. - The company intends to leverage investment and mergers to explore quality projects in new energy, new materials, and intelligent manufacturing sectors[117]. - The company plans to improve its financing capabilities by utilizing various financing methods, including bank financing and equity financing, to support new growth[118]. - The company is committed to optimizing its long-term asset quality through effective risk management and control in investment projects[117]. Research and Development - The company has a professional team of about 300 personnel dedicated to R&D, design, manufacturing, and sales of power station and industrial boilers[42]. - The company has developed a biomass boiler that can adapt to 9 different types of fuel, showcasing its industry-leading position in biomass and renewable energy equipment[43]. - The company achieved significant progress in new product development, including the successful application of small-capacity high-parameter boilers and the first domestic special fuel boiler technology scheme[55]. - The company has established partnerships with several prestigious research institutions and universities to accelerate technology transfer and innovation[46]. - The company achieved 18 authorized patents in 2020, including 5 invention patents, reflecting ongoing innovation efforts[79]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection, ensuring 100% compliance in hazardous waste disposal and strict adherence to national environmental standards[183]. - The company donated approximately 2 million yuan worth of medical supplies during the COVID-19 pandemic, supporting local communities and health organizations[183]. - The company has implemented an environmental monitoring plan and completed relevant monitoring for 2020, which has been reported and disclosed[195]. - The company has constructed a 800 m³ accident pool as part of its environmental risk prevention facilities, which is in normal standby[192]. - The company has established a real-time data sharing system with the Zhangye Ecological Environment Bureau for online monitoring of emissions[186]. Corporate Governance - The company’s financial report has been confirmed as true, accurate, and complete by its board of directors and management[4]. - The company has ensured that minority shareholders have opportunities to express their opinions and that their rights are protected[129]. - The company’s independent directors have fulfilled their responsibilities and played their roles effectively in the decision-making process[129]. - The company engaged Yongtuo Accounting Firm for internal control verification, with a total fee of 100,000 RMB for the year[139]. - The company has maintained its accounting firm for two consecutive years[139]. Subsidiaries and Investments - The company established four new subsidiaries in 2020, including Qingdao Huaxi Tai and Shaanxi Huaxi Lintai, with a total registered capital of 105 million CNY[71][72]. - The company plans to invest 3 million RMB to establish Qingdao Huarong Enterprise Development Co., holding a 30% stake with a registered capital of 10 million RMB[200]. - The company intends to increase its investment by 60 million RMB in Sichuan Jinruiqi Intelligent Technology Co., raising its stake to 12% as the registered capital increases from 12.5 million RMB to 14.2045 million RMB[200]. Legal Matters - The company is involved in a lawsuit with Tianfu South Thermal Power Co., with a claimed amount of 24.0776 million RMB, currently under trial[141]. - The company reached a settlement with Zigong First Construction Engineering Company, resolving a dispute over a contract worth 60 million RMB[142]. - The company is facing a lawsuit from China Machinery Construction for a total claim of 85.83 million RMB, which includes unpaid debts and contract termination losses[143].