| 证券代码：002645 | 证券简称：华宏科技 公告编号：2023-082 | | --- | --- | | 债券代码：127077 | 债券简称：华宏转债 | 江苏华宏科技股份有限公司 关于不向下修正"华宏转债"转股价格的公告 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。 特别提示: 1、自 2023 年 8 月 5 日至 2023 年 8 月 25 日，江苏华宏科技股份有限公司 （以下简称"公司"）股票已出现任意连续 30 个交易日中至少有 15 个交易日的 收盘价低于当期转股价格 85%的情形，已触发"华宏转债"转股价格向下修正条 款。 2、经公司第七届董事会第七次会议审议通过，公司董事会决定本次不向下 修正"华宏转债"转股价格。 公司于 2023 年 8 月 25 日召开第七届董事会第七次会议，审议通过了《关于 不向下修正"华宏转债"转股价格的议案》，具体情况如下： 一、可转换公司债券基本情况 （一）可转债发行情况 经中国证券监督管理委员会《关于核准江苏华宏科技股份有限公司公开发行 可转换公司债券的批复》（证监许可〔2022〕1121 号）核准 ...

Financial Performance - The company's operating revenue for the first half of 2023 was ¥3,529,056,834.34, a decrease of 24.25% compared to ¥4,658,882,149.30 in the same period last year[23]. - The net profit attributable to shareholders was a loss of ¥185,353,102.92, representing a decline of 147.81% from a profit of ¥387,702,440.73 in the previous year[23]. - The net cash flow from operating activities increased by 245.77% to ¥325,849,133.17, compared to ¥94,239,421.56 in the same period last year[23]. - The total assets at the end of the reporting period were ¥6,173,941,533.68, down 4.62% from ¥6,472,800,314.90 at the end of the previous year[23]. - The net assets attributable to shareholders decreased by 7.58% to ¥3,694,479,764.64 from ¥3,997,459,859.52 at the end of the previous year[23]. - The basic earnings per share were -¥0.3225, a decrease of 148.42% from ¥0.6661 in the same period last year[23]. - The diluted earnings per share were -¥0.2947, down 144.26% from ¥0.6659 in the previous year[23]. - The weighted average return on equity was -4.79%, a decline of 15.33% from 10.54% in the previous year[23]. - The net profit for the current period is -¥200,351,344.51, a decline of 151.73% from ¥387,277,514.38 in the previous year, attributed to a significant drop in gross margins for key products[54]. - The total comprehensive income for the first half of 2023 was a loss of ¥200,351,344.51, compared to a profit of ¥387,277,514.38 in the previous year[170]. Business Segments and Operations - The company focuses on the research, manufacturing, marketing, and service of recycling resource processing equipment, aiming to become a global provider in this sector[31]. - The main business segments are "recycling resources" and "elevator components," with the recycling resources segment including the development and sales of processing equipment and operations[31]. - The recycling resource processing equipment includes metal crushing, hydraulic shearing, and dismantling equipment for scrapped vehicles, serving various industries[32]. - The company operates two major scrap steel processing bases, providing high-quality scrap steel materials directly to steel mills[32]. - The company is involved in the comprehensive utilization of rare earth recycling materials, producing high-purity rare earth oxides for high-tech applications[33]. - The company has established strategic partnerships with leading elevator brands, providing reliable products and services across multiple regions[34]. - The company has expanded its recycling business into rare earth recovery through acquisitions, enhancing its competitive strength in the industry[50]. Market Trends and Risks - The main risks faced by the company include merger integration risks, intensified market competition, raw material price fluctuations, human resource risks, and exchange rate fluctuations[4]. - The elevator market in China has grown significantly, with production increasing from 365,000 units in 2010 to 1,173,000 units in 2019, representing a compound annual growth rate of 13.85%[40]. - The market size of the elevator industry in China has exceeded 235 billion yuan, positioning it among the largest markets globally[40]. - The domestic elevator installation market has entered a rapid development phase, driven by government policies and urbanization initiatives[41]. - The company faces intensified market competition, prompting plans to improve product quality and production efficiency while optimizing product structure[74]. - The company has identified risks related to raw material price fluctuations and plans to implement strategic procurement methods to mitigate these risks[74]. Research and Development - The company emphasizes a market-oriented approach in its R&D strategy, focusing on both domestic and international market needs[46]. - Research and development expenses decreased by 29.54% to ¥120,127,381.27 from ¥170,480,405.95, indicating a reduction in investment in new technologies[53]. - The company is actively developing new products and technologies to maintain sustainable growth and profitability[74]. - Research and development expenses accounted for 7.4% of total revenue, reflecting the company's commitment to innovation[181]. Cash Flow and Investments - The cash flow from operating activities increased by 245.77% to ¥325,849,133.17, influenced by a decrease in cash payments for materials[53]. - The company reported a significant increase in financial expenses by 413.72% to ¥34,012,502.12 due to interest expenses from the issuance of convertible bonds[53]. - The total investment amount for the reporting period was ¥7,249,840, an increase of 34.26% compared to the previous year's investment of ¥5,400,000[59]. - The company has committed a total investment of ¥51,500,000 for various projects, with ¥50,401,920 already utilized, indicating a utilization rate of 97.86%[66]. - The company reported a total cash outflow from financing activities of 181,137,872.30 RMB in the first half of 2023, compared to 62,134,820.99 RMB in the same period of 2022, indicating increased financing costs[178]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company held its annual general meeting with a participation rate of 52.39% on May 19, 2023[77]. - The total share capital decreased from 582,691,698 shares to 582,441,698 shares after the repurchase and cancellation of restricted shares[86]. - The company completed the repurchase and cancellation of restricted shares, reducing total share capital from 582,081,698 shares to 581,951,198 shares on August 24, 2022[89]. - The company’s independent directors expressed agreement with the implementation of the incentive plan throughout the process[82]. Sustainability and Social Responsibility - The company emphasizes its commitment to environmental protection and sustainable development, aligning with national energy-saving and emission-reduction policies[98]. - The company actively fulfills its social responsibilities, contributing to public welfare and supporting disadvantaged groups[98]. - The company is focused on developing a circular economy and aims to achieve efficiency while minimizing waste and pollution[98]. Future Outlook and Guidance - The company plans to focus on market expansion and new product development to recover from the current financial downturn[173]. - The company has set a performance guidance for the second half of 2023, targeting a revenue growth of 15% and a net profit margin of 8%[197]. - The company aims for a revenue growth target of 10% for the full year 2023[181]. - The company plans to expand its market presence by entering two new regions by the end of 2023[182].

| 证券代码：002645 | 证券简称：华宏科技 公告编号：2023-076 | | --- | --- | | 债券代码：127077 | 债券简称：华宏转债 | 江苏华宏科技股份有限公司 关于"华宏转债"预计触发转股价格向下修正条件的 提示性公告 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。 特别提示: 1、证券代码：002645 证券简称：华宏科技 2、债券代码：127077 债券简称：华宏转债 3、转股价格：13.92 元/股 4、转股期限：2023 年 6 月 8 日至 2028 年 12 月 1 日 自 2023 年 8 月 5 日至 2023 年 8 月 18 日，江苏华宏科技股份有限公司（以 下简称"公司"）股票已有十个交易日的收盘价低于当期转股价格 13.92 元/股 的 85%（即 11.83 元/股），预计后续将有可能触发"华宏转债"转股价格向下 修正条款。敬请广大投资者注意投资风险。 一、可转换公司债券基本情况 （一）可转债发行情况 （二）可转债上市情况 经深圳证券交易所（以下简称"深交所"）"深证上〔2023〕3 号"文同意， 公 ...

关于完成工商变更登记的公告 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。 | 证券代码：002645 | 证券简称：华宏科技 | 公告编号：2023-075 | | --- | --- | --- | | 债券代码：127077 | 债券简称：华宏转债 | | 江苏华宏科技股份有限公司 江苏华宏科技股份有限公司（以下简称"公司"）于 2023 年 4 月 26 日召开 第六届董事会第二十四次会议、2023 年 5 月 19 日召开 2022 年度股东大会，审 议通过了《关于变更注册资本、营业范围并修订<公司章程>的议案》，变更的具 体内容详见公司于 2023 年 4 月 28 日刊登于《证券时报》《上海证券报》和巨潮 资讯网（www.cninfo.com.cn）的《关于变更注册资本、营业范围并修订<公司章 程>的公告》。 近日，公司已完成工商变更登记及《公司章程》备案手续，并取得了无锡市 行政审批局换发的《营业执照》。 统一社会信用代码：913202007658600889 类型：股份有限公司（上市、自然人投资或控股） 法定代表人：胡品贤 注册资本：5815 ...

投资者活动记录表 证券代码：002645 证券简称：华宏科技 江苏华宏科技股份有限公司 华宏科技 2022 年度网上业绩说明会 | | | 编号：2023-001 投资者关系活动 类别 □特定对象调研 □分析师会议 □媒体采访 √业绩说明会 □新闻发布会 □路演活动 □现场参观 □电话会议 □其他： （请文字说明其他活动内容） 参与单位名称 及人员姓名 华宏科技2022年度网上业绩说明会采用网络远程方式进行，面向全体 投资者 时间 2023 年 5 月 12 日 15:30-16:30 地点 深圳证券交易所"互动易平台"http://irm.cninfo.com.cn"云访谈"栏目 公司接待人员 姓名 主持人：华宏科技 董事长：胡士勇 董事、副总经理、财务总监兼董事会秘书：朱大勇 独立董事：刘斌 投资者关系活动 主要内容介绍 1.稀土板块最近行情如何？稀土价格还会继续下跌吗？ 答：投资者您好，稀土价格波动受多方面因素的影响，近期稀土产品 价格较为稳定。谢谢。 2.贵公司一季度的业绩同比下降主要是什么原因，今年的业绩有没有信 心比去年更好？ | 答：投资者您好，2023 | 年第一季度主要受稀土产品价格波动的影 ...

Financial Performance - The company's revenue for Q1 2023 was ¥1,764,103,722.33, a decrease of 24.95% compared to ¥2,350,592,515.17 in the same period last year[5] - The net profit attributable to shareholders was a loss of ¥59,088,586.31, representing a decline of 123.25% from a profit of ¥254,145,067.99 in the previous year[5] - The total profit for the period was a loss of ¥87,300,883.98, a decline of 133.08% compared to a profit of ¥263,917,325.37 in Q1 2022[9] - The net profit for Q1 2023 was a loss of ¥63,321,032.84, compared to a profit of ¥252,826,320.91 in Q1 2022, indicating a significant decline[19] - The basic earnings per share for Q1 2023 was -0.1028, compared to 0.4477 in the same period last year[19] Cash Flow - The net cash flow from operating activities increased by 180.31% to ¥203,411,264.03, up from ¥72,565,554.61 in Q1 2022[5] - The company reported a net cash flow from operating activities of ¥203,411,264.03, an increase from ¥72,565,554.61 in the previous year[21] - The company's cash flow from investing activities showed a net outflow of ¥126,901,710.88, which was an increase in outflow compared to ¥69,081,270.97 in the previous year[9] - The net cash flow from investment activities was -126,901,710.88 CNY, compared to -69,081,270.97 CNY in the previous year[22] - The total cash inflow from financing activities was 47,380,000.00 CNY, down from 130,950,000.00 CNY year-over-year[22] - The net cash flow from financing activities was -39,395,248.20 CNY, a decrease from 55,545,735.00 CNY in the same period last year[22] - The cash and cash equivalents at the end of the period amounted to 795,624,284.89 CNY, up from 403,685,031.72 CNY year-over-year[22] - The net increase in cash and cash equivalents for the quarter was 36,900,516.46 CNY, compared to 58,875,342.45 CNY in the previous year[22] - The company incurred 10,098,995.61 CNY in cash payments for dividends and interest during the quarter[22] - The cash outflow for financing activities totaled 86,775,248.20 CNY, compared to 75,404,265.00 CNY in the previous year[22] - The impact of exchange rate changes on cash and cash equivalents was -213,788.49 CNY[22] Assets and Liabilities - The company's total assets as of March 31, 2023, were ¥6,653,178,140.95, reflecting a 2.79% increase from ¥6,472,800,314.90 at the end of the previous year[5] - The company's total assets amount to 6,653,178,140.95 CNY, an increase from 6,472,800,314.90 CNY at the beginning of the year[15] - Current assets total 4,229,226,811.88 CNY, up from 4,077,352,665.83 CNY at the start of the year[14] - Total liabilities are 2,645,552,497.37 CNY, compared to 2,380,889,288.37 CNY at the beginning of the year[15] - The company's inventory stands at 2,137,106,806.26 CNY, a decrease from 2,212,426,566.17 CNY[14] - The accounts receivable amount to 474,262,843.28 CNY, down from 511,906,530.11 CNY[14] - The company has a long-term equity investment of 58,482,027.62 CNY, slightly down from 58,627,559.00 CNY[14] Expenses - Research and development expenses decreased by 35.84% to ¥58,147,358.63, down from ¥90,634,647.10 in the same quarter last year[9] - Research and development expenses decreased to ¥58,147,358.63 from ¥90,634,647.10, representing a reduction of about 36%[18] - The company reported a significant increase in financial expenses, which rose by 340.71% to ¥16,940,700.16 due to increased interest expenses from convertible bonds[9] - The financial expenses rose to ¥16,940,700.16, compared to ¥3,843,975.33 in the previous year, indicating an increase of over 340%[18] - The company experienced a 406.28% increase in interest expenses, amounting to ¥16,120,519.04, attributed to the issuance of convertible bonds[9] - The company's inventory impairment loss was recorded at ¥139,580,676.69, primarily due to increased inventory write-downs[9] Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming quarters to improve financial performance[19] - The company established a wholly-owned subsidiary, Ningbo Zhonghang Industrial Co., Ltd., with an annual production capacity of 4,000 tons of high-performance sintered neodymium iron boron[13] Shareholder Information - The total number of common shareholders at the end of the reporting period is 29,076[11] - Jiangsu Huahong Industrial Group Co., Ltd. holds 34.52% of shares, totaling 200,884,632 shares, which are pledged[11] Audit Status - The first quarter report was not audited[23]

Financial Performance - The company's operating revenue for 2022 was ¥8,475,015,663.88, representing a 25.06% increase compared to ¥6,776,828,766.80 in 2021[6]. - The net profit attributable to shareholders decreased by 23.58% to ¥406,569,887.16 in 2022 from ¥532,027,212.26 in 2021[6]. - The net profit after deducting non-recurring gains and losses was ¥327,761,518.32, down 34.16% from ¥497,782,396.53 in the previous year[6]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥364,451,798.50 in 2022 compared to a positive cash flow of ¥194,953,667.26 in 2021, marking a 286.94% decrease[6]. - Basic earnings per share fell by 24.47% to ¥0.71 in 2022 from ¥0.94 in 2021[6]. - Total assets increased by 25.41% to ¥6,472,800,314.90 at the end of 2022, up from ¥5,161,188,431.08 at the end of 2021[6]. - The weighted average return on equity decreased to 11.02% in 2022 from 16.18% in 2021, a decline of 5.16%[6]. - The company reported a significant drop in quarterly net profit, with only ¥4,707,326.09 in Q4 2022 compared to ¥254,145,067.99 in Q1 2022[26]. - The company achieved operating revenue of 8.475 billion yuan, an increase of 25.06% year-on-year, while net profit attributable to shareholders was 407 million yuan, a decrease of 23.58%[55]. Industry Overview - The company operates in the recycling equipment manufacturing and waste steel industries, which are critical sectors in China's resource recovery efforts, with waste steel accounting for 65.62% of the total recycled resources in 2021[33]. - The rare earth recycling industry in China has seen rapid development, driven by strong demand for neodymium-iron-boron permanent magnets and government support for recycling initiatives[36]. - The elevator industry in China has experienced significant growth, with production increasing from 365,000 units in 2010 to 1,173,000 units in 2019, representing a compound annual growth rate of 13.85%[38]. - The market size of the elevator industry in China has exceeded 235 billion yuan, positioning it as a leading market globally[38]. Risks and Challenges - The company faces risks including merger integration, intensified market competition, raw material price fluctuations, human resource risks, and exchange rate volatility[4]. - The company’s future plans do not constitute a substantive commitment to investors, highlighting the importance of investment risk awareness[4]. - Since 2022, the company has experienced significant fluctuations in raw material prices, impacting production costs and profitability; strategies include adjusting procurement methods based on market conditions to mitigate risks[91]. - The company is addressing human resource risks by enhancing talent acquisition and internal training mechanisms to ensure a skilled workforce amid rising costs and competition[92]. - The company is exposed to foreign exchange risks due to global operations and plans to use forward foreign exchange contracts to manage these risks effectively[92]. Governance and Compliance - The company has established a comprehensive governance structure, ensuring independence from its controlling shareholder in operations, personnel, and financial matters[100]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[98]. - The company has implemented a robust information disclosure system to ensure transparency and timely communication with investors[99]. - The company is committed to maintaining the rights of all shareholders, particularly minority shareholders, through proper governance practices[97]. - The company operates independently with a self-accounting and self-financing system, establishing a complete financial accounting system[102]. Shareholder Information - The company reported a cash dividend of 2 RMB per 10 shares (including tax) for all shareholders, with no bonus shares issued[4]. - The total distributable profit for the parent company is 680,055,217.44 RMB[130]. - The annual cash dividend distribution plan is set at 2.00 RMB per 10 shares, with a total cash dividend amount of 116,126,792.60 RMB, representing 100% of the distributable profit[130][131]. Research and Development - Research and development expenses increased by 21.67% to ¥317,961,605.47 from ¥261,340,648.16 in 2021[71]. - The company plans to strengthen product upgrades and technological innovation in the recycling resource processing equipment sector to maintain its leading position[90]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product efficiency[158]. Strategic Initiatives - The company has established long-term cooperative relationships with major global elevator manufacturers, enhancing its position in the global supply chain[53]. - The company is actively exploring opportunities in environmental protection, smart manufacturing, and IoT-related industries[41]. - The company aims to actively develop the recycling business, focusing on the dismantling of end-of-life vehicles and expanding into downstream recycling of various metals and non-metals[90]. Employee Information - The total number of employees at the end of the reporting period is 2,383, with 760 from the parent company and 1,623 from major subsidiaries[127]. - The company has a total of 1,416 production personnel, 270 sales personnel, 241 technical personnel, 114 financial personnel, and 342 administrative personnel[127]. - The company has implemented various training programs, including office automation, safety production, and equipment maintenance[129]. Financial Management - The company has independent financial personnel and does not allow interference from controlling shareholders in fund utilization[102]. - The total approved guarantee amount for subsidiaries is CNY 120,000,000, with actual guarantees amounting to CNY 111,500,000 during the reporting period[191]. - The company has committed to a cash asset management plan, with details on entrusted financial management to be disclosed[192].

本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 江苏华宏科技股份有限公司（以下简称"公司"）于 2023 年 4 月 28 日在巨 潮资讯网（www.cninfo.com.cn）上披露了《2022 年年度报告》，为便于广大投 资者更深入地了解公司情况，公司定于 2023 年 5 月 12 日（星期五）15:30—16:30 举行 2022 年度网上业绩说明会。本次年度业绩说明会将采用网络远程的方式举 行，投资者可登录深圳证券交易所"互动易"平台（http://irm.cninfo.com.cn）， 进入"云访谈"栏目参与本次年度业绩说明会。 公司本次年度业绩说明会出席人员有：董事长胡士勇先生；董事、副总经理、 财务总监兼董事会秘书朱大勇先生；独立董事刘斌先生。 | 证券代码：002645 | 证券简称：华宏科技 公告编号：2023-034 | | --- | --- | | 债券代码：127077 | 债券简称：华宏转债 | 江苏华宏科技股份有限公司 关于举行 2022 年度业绩说明会的公告 特此公告。 江苏华宏科技股份有限公司 董 事 会 2023 年 4 ...

Group 1: Industry Overview - The domestic scrapped automobile market has a huge stock, but the effective recovery rate is very low, primarily due to traditional scrapping regulations that hinder recovery, leading many scrapped vehicles to flow into the second-hand market or black market, which poses significant risks to environmental protection and traffic safety [2][3] - If the automobile recovery rate reaches 3% in the next three years, the estimated market for waste materials could reach CNY 120 billion, while the remanufacturing market for the five major assemblies could reach CNY 79.9 billion, totaling CNY 199.9 billion, indicating a vast market space [2][3] Group 2: Regulatory Changes - The new "Regulations on the Recovery and Disposal of Scrapped Motor Vehicles" came into effect on June 1, 2019, and the draft implementation rules have been released, with mandatory national standards for scrapping enterprises approved and implemented since December 17, 2019 [2][3] - The new regulations eliminate total control, allowing for the expansion of recovery enterprises and removing the previous city-specific licensing restrictions, which encourages market-driven pricing for scrapped vehicles [3] Group 3: Company Strategy - The company is a leading domestic waste steel processing equipment manufacturer, with key products including waste steel crushing lines, shears, and balers, which are essential for automobile dismantling [3] - The company has actively laid out its operations in the automobile dismantling and recycling sector, establishing Donghai Huahong in 2013 for waste steel processing and trade, acquiring Beijing Zhongwu Bo in 2018 to enter the automobile recycling and dismantling field, and further expanding its waste steel processing trade scale by acquiring Qian'an Juliy in 2019 [3] - Future plans include strengthening industrial synergy among various business segments to create a comprehensive automobile recycling and dismantling industry platform [3]

[Key Financial Data](index=2&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) [Key Accounting Data and Financial Indicators](index=2&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%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) YTD operating revenue grew 33.58%, but Q3 net profit attributable to shareholders fell sharply by 89.43% Key Financial Indicators for Q3 2022 and Year-to-Date | Indicator | Current Period (Q3) | YoY Change | Year-to-Date (YTD) | YTD YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,887,409,919.40 | 8.25% | 6,546,292,068.70 | 33.58% | | Net Profit Attributable to Shareholders (RMB) | 14,160,120.34 | -89.43% | 401,862,561.07 | 2.89% | | Net Profit Attributable to Shareholders (Non-recurring Items Excluded) (RMB) | -26,346,635.59 | -120.62% | 330,016,032.83 | -10.27% | | Net Cash Flow from Operating Activities (RMB) | — | — | -66,321,358.59 | -122.78% | | Basic Earnings Per Share (RMB/Share) | 0.0243 | -89.43% | 0.6905 | 2.72% | | Total Assets (RMB) | 5,890,574,946.16 | 14.13% (vs. End of Prior Year) | 5,890,574,946.16 | 14.13% (vs. End of Prior Year) | | Equity Attributable to Shareholders (RMB) | 3,879,234,039.76 | 11.27% (vs. End of Prior Year) | 3,879,234,039.76 | 11.27% (vs. End of Prior Year) | [Non-recurring Profit and Loss Items and Amounts](index=2&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) YTD non-recurring profit and loss totaled RMB 71.85 million, primarily driven by government subsidies YTD 2022 Non-recurring Profit and Loss Items | Item | YTD Amount (RMB) | | :--- | :--- | | Government Subsidies Recognized in Current Profit or Loss | 82,305,301.29 | | Other Non-operating Income and Expenses | 3,719,011.60 | | Gains/Losses on Disposal of Non-current Assets | 493,385.65 | | **Total** | **71,846,528.24** | [Analysis of Changes in Key Financial Indicators](index=3&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20%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%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 indicator changes were driven by business expansion, leading to revenue growth but declining profitability - Operating revenue **increased by 33.58% YoY**, driven by the continued growth of the rare earth recycling and comprehensive utilization business[10](index=10&type=chunk) - Operating cost **grew by 40.09% YoY**, outpacing revenue growth, primarily due to increased business volume[12](index=12&type=chunk) - Impairment losses on assets **surged by 678.17% YoY**, mainly from increased provisions for inventory write-downs[12](index=12&type=chunk) - Financial expenses **rose significantly by 249.82% YoY** due to higher interest expenses from increased financing for business expansion[12](index=12&type=chunk) - Net cash flow from operating activities **decreased by 122.78% YoY**, turning negative due to increased cash payments for goods and services as business scaled[12](index=12&type=chunk) - Construction in progress **increased by 98.41% YoY**, mainly due to the construction phase of subsidiary Ganzhou Huazhuo and expansion projects of the parent company and Beijing Huahong[10](index=10&type=chunk) - Short-term and long-term borrowings **surged by 156.61% and 2193.33% respectively**, reflecting a substantial increase in bank financing to support business expansion[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E4%BF%A1%E6%81%AF) [Common Stock Shareholder Information](index=4&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had 24,890 common shareholders, with the largest shareholder's entire 34.52% stake pledged - Total number of common stock shareholders was **24,890** at the end of the reporting period[13](index=13&type=chunk) Top Five Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | | :--- | :--- | :--- | | Jiangsu Huahong Industrial Group Co., Ltd. | Domestic Non-State-Owned Legal Entity | 34.52% | | Zhou Jingcheng | Domestic Natural Person | 6.87% | | Zibo Qinying Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Entity | 5.00% | | Hu Shiyong | Domestic Natural Person | 3.47% | | Zhou Shijie | Domestic Natural Person | 2.33% | - The largest shareholder, Jiangsu Huahong Industrial Group Co., Ltd., has **pledged all of its 200,884,632 shares**[13](index=13&type=chunk) - The actual controllers of the company are the four brothers: Hu Shiyong, Hu Shiqing, Hu Shifa, and Hu Shiqin[16](index=16&type=chunk) [Preferred Stock Shareholder Information](index=5&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E5%85%AC%E5%8F%B8%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%2010%20%E5%90%8D%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had no preferred stock shareholders during the reporting period [Other Important Matters](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company received approval for a public offering of convertible bonds and plans a RMB 250 million investment in a new project - The company's application for a public offering of convertible corporate bonds was **approved by the CSRC on June 8, 2022**[17](index=17&type=chunk)[21](index=21&type=chunk) - The company plans to **invest RMB 250 million** to build a "4,000-ton annual capacity high-performance magnetic materials project" through a new wholly-owned subsidiary[21](index=21&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=%E5%9B%9B%E3%80%81%E5%AD%A3%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Balance Sheet](index=6&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 September 30, 2022, total assets and liabilities grew due to business expansion and related financing activities Key Balance Sheet Items | Item | Sep 30, 2022 (RMB) | Jan 1, 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 5,890,574,946.16 | 5,161,188,431.08 | +14.13% | | Total Liabilities | 1,894,313,131.66 | 1,562,473,152.50 | +21.24% | | Equity Attributable to Parent Company | 3,879,234,039.76 | 3,486,432,122.75 | +11.27% | [Consolidated Income Statement](index=8&type=section&id=2%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2022, strong revenue growth was offset by higher costs, resulting in minimal profit growth Key Income Statement Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 6,546,292,068.70 | 4,900,627,291.45 | +33.58% | | Total Operating Cost | 6,260,917,111.73 | 4,521,774,622.58 | +38.46% | | Net Profit Attributable to Parent Company Shareholders | 401,862,561.07 | 390,570,922.88 | +2.89% | | Basic Earnings Per Share | 0.6905 | 0.6722 | +2.72% | [Consolidated Cash Flow Statement](index=10&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%B9%B4%E5%88%9D%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) YTD operating cash flow turned negative, while financing cash flow surged to support business expansion Key Cash Flow Statement Items (Year-to-Date) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -66,321,358.59 | 291,202,443.62 | -122.78% | | Net Cash Flow from Investing Activities | -312,268,612.37 | -270,937,921.55 | -15.25% | | Net Cash Flow from Financing Activities | 411,710,333.48 | 20,642,785.07 | +1894.45% | | Cash and Cash Equivalents at End of Period | 379,102,620.08 | 337,060,189.13 | +12.47% | [Audit Report](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's third-quarter 2022 report is unaudited - The third quarter report has not been audited[40](index=40&type=chunk)