山东龙泉管道工程股份有限公司 2021 年第三季度报告 证券代码：002671 证券简称：龙泉股份 公告编号：2021-079 山东龙泉管道工程股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导 性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在 虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告 中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 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增 | 年初至报告期末 | 年初至报告期末比上年 | | --- | --- | --- | --- | --- | | | | 减 | | 同期增减 | | 营业收入（元） | 482,154,485.78 | 99.16% | 990,163,193.17 | 12 ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 508,008,707.39, representing a 145.53% increase compared to CNY 206,905,847.58 in the same period last year[19]. - The net profit attributable to shareholders was CNY 5,938,731.60, a significant turnaround from a loss of CNY 84,427,243.44 in the previous year, marking a 107.03% improvement[19]. - The basic earnings per share increased to CNY 0.01 from a loss of CNY 0.18, reflecting a 105.56% increase[19]. - The company's total assets at the end of the reporting period were CNY 3,075,412,627.16, a slight decrease of 0.64% from CNY 3,095,185,184.22 at the end of the previous year[19]. - The net cash flow from operating activities improved to CNY -41,367,259.22, a 46.15% reduction in losses compared to CNY -76,815,877.54 in the same period last year[19]. - The company reported a total comprehensive income of CNY 119,932,664.57, recovering from a comprehensive loss of CNY 39,323,995.99 in the first half of 2020[169]. - The net profit for the first half of 2021 was CNY 119,932,664.57, a significant recovery from a net loss of CNY 39,323,995.99 in the same period of 2020[168]. - The company reported a significant increase in contract assets, rising to CNY 178,211,030.29 from CNY 150,578,681.66, an increase of about 18.4%[155]. Market and Industry Trends - The pre-stressed concrete cylinder pipe (PCCP) industry has seen significant advancements, with domestic manufacturing technology reaching international standards, indicating a strong future demand for PCCP in water conservancy projects[27]. - The industrial metal fittings industry is experiencing a structural shift, with a focus on high-end products due to a shortage in supply, despite the presence of over 1,900 manufacturers in the sector[29][31]. - The company is positioned to benefit from the ongoing construction of major water conservancy projects, including the South-to-North Water Diversion Project, which will drive demand for PCCP[28]. - The domestic market for stainless steel pipes is expanding, particularly in urban areas where drinking water safety is prioritized, leading to increased adoption of thin-walled stainless steel pipes[34]. - The company has identified a growing market for anti-corrosion steel pipes, particularly with the increasing application of 3PE anti-corrosion technology in large pipeline projects[33]. Risks and Challenges - The company faces risks including the impact of the COVID-19 pandemic and fluctuations in raw material prices, which may affect future performance[5]. - The company has acknowledged the uncertainty in achieving future plans due to market conditions and operational challenges[5]. - The company faces risks related to delayed supply of signed contracts for PCCP and metal pipe fittings, which may impact sales revenue due to construction progress being affected by various uncertainties[84]. - Fluctuations in raw material prices, particularly steel and cement, pose a risk to cost control for PCCP pipes and metal fittings, prompting the company to adopt centralized procurement management and establish price adjustment mechanisms with clients[85]. Operational Developments - The company has established initial production capacity for 3PE anti-corrosion steel pipes and achieved a breakthrough in underground pipeline lifecycle management services[36]. - The company has built production bases for PCCP across more than ten provinces, enhancing its sales radius to cover various regions in China[53]. - The establishment of the Smart Pipeline Division allows the company to provide comprehensive management services for underground pipelines, expanding its business from product supply to maintenance[54]. - The company has implemented a "regional + project-based" operational management model to enhance business stability and reduce performance volatility[53]. Subsidiaries and Investments - The major subsidiary, Changzhou Longquan Pipeline Engineering Co., Ltd., reported total assets of ¥422,802,939.84 and a net loss of ¥2,290,362.73 for the period[81]. - The company established two new subsidiaries during the reporting period, Yunnan Zequan Pipeline Co., Ltd. and Jilin Zequan Pipeline Co., Ltd., with no significant impact on overall operations[82]. - The company has established a new wholly-owned subsidiary in Yunnan with an investment of ¥20,000,000.00, aimed at expanding its product offerings in concrete pipe manufacturing[74]. Corporate Governance and Compliance - The company has a modern corporate governance structure that effectively safeguards the rights of shareholders and creditors[98]. - The company adheres to strict environmental regulations and standards, ensuring compliance with various environmental protection laws during its operations[94]. - The company has established a comprehensive employee rights protection system, including social security, compensation benefits, and safety production measures[98]. - The company has no significant litigation or arbitration matters during the reporting period, with 8 cases still under review and the rest resolved[109]. Related Party Transactions - The company reported a procurement transaction amount of 7.22 million yuan with a related party, adhering to market pricing principles[111]. - The company has established a fair pricing mechanism for all related party transactions, ensuring compliance with market conditions[111]. - The company maintains transparency in its related party transactions, with disclosures made in accordance with regulatory requirements[111]. Future Outlook - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[156]. - The company plans to strengthen the development of new products and businesses to mitigate the impact of the pandemic[83]. - The company is actively investing in new technologies and product development to drive future growth and competitiveness[156].

Financial Performance - The company's operating revenue for Q1 2021 was ¥172,680,739.43, representing a 255.43% increase compared to ¥48,584,266.61 in the same period last year[8] - The net profit attributable to shareholders was ¥2,267,053.27, a significant turnaround from a loss of ¥49,467,818.47 in the previous year, marking a 104.58% improvement[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,502,560.50, compared to a loss of ¥49,473,636.98 last year, reflecting a 103.04% increase[8] - The company's operating revenue increased by 255.43% compared to the same period last year, while operating costs rose by 208.72%, primarily due to increased sales[18] - The net profit for Q1 2021 was CNY 596,874.55, compared to a net loss of CNY 50,351,032.99 in the same period last year[42] - The total profit for Q1 2021 was CNY 308,389.67, a significant recovery from a loss of CNY 59,737,195.47 in the same period last year[42] - The company reported a basic and diluted earnings per share of CNY 0.004, recovering from a loss of CNY 0.10 in the previous year[43] - The gross profit margin improved, with a gross profit of CNY 17,388,754.22, compared to a gross loss in the previous period[45] Cash Flow and Liquidity - The company's cash flow from operating activities showed a net outflow of ¥140,613,857.72, which is a 25.43% increase in outflow compared to ¥112,101,273.59 in the previous year[8] - The company's cash and cash equivalents decreased from ¥376,177,607.10 to ¥269,300,711.45, a decline of approximately 28.4%[32] - The net cash flow from operating activities was negative CNY 140,613,857.72, worsening from negative CNY 112,101,273.59 in the prior period[50] - The net increase in cash and cash equivalents was negative CNY 148,084,541.65, compared to negative CNY 97,723,023.04 previously, indicating a decline in liquidity[51] - The ending balance of cash and cash equivalents was CNY 104,368,125.57, down from CNY 134,783,705.30, a decrease of about 22%[51] - Cash inflow from financing activities totaled CNY 125,653,500.00, compared to CNY 83,627,500.00, reflecting an increase of approximately 50%[51] - Cash outflow for debt repayment was CNY 104,000,000.00, significantly higher than CNY 40,000,000.00 in the previous period[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,025,841,749.65, a decrease of 2.24% from ¥3,095,185,184.22 at the end of the previous year[8] - Total liabilities increased to CNY 1,210,728,331.33 from CNY 1,148,352,238.47, indicating a rise in financial obligations[38] - Current liabilities totaled CNY 1,207,513,522.44, compared to CNY 1,145,026,383.62 in the previous period, reflecting a growth in short-term financial commitments[38] - The company's total equity stood at CNY 2,139,988,668.03, slightly down from CNY 2,142,068,562.13, reflecting changes in retained earnings[38] - Total liabilities amounted to CNY 903,749,124.61, with current liabilities totaling CNY 885,216,841.92[58] - The total equity attributable to shareholders reached CNY 2,184,835,659.06, while total equity was CNY 2,191,436,059.61[58] Investments and Expenses - Research and development expenses grew by 50.17% year-on-year, reflecting increased investment in R&D[18] - Research and development expenses increased to CNY 2,612,110.59 from CNY 1,739,480.90 year-over-year, indicating a focus on innovation[41] - The company reported a decrease in employee compensation payable to CNY 17,880,015.12 from CNY 26,310,115.69, indicating potential cost management efforts[34] - The financial expenses for Q1 2021 were CNY 6,510,146.88, slightly down from CNY 6,793,691.73 in the previous period[41] - The company experienced a decrease in management expenses to CNY 40,287,980.97 from CNY 51,795,712.15 year-over-year, reflecting cost control measures[41] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 22,925[11] - The number of restricted stock grants to 65 incentive objects totaled 11.07 million shares, with the listing date set for February 5, 2021[17] - Minority interests increased by 127.24% compared to the beginning of the period, mainly due to changes in the shareholding ratio of minority shareholders[18] Other Financial Metrics - The weighted average return on net assets was 0.10%, an increase of 2.95% from -2.85% in the same period last year[8] - The company reported a 100% reduction in credit impairment losses compared to the previous year, attributed to increased recoveries of prior receivables[18] - Deferred tax assets increased to CNY 92,832,045.59 from CNY 88,433,338.83, suggesting a favorable tax position[35] - The report for the first quarter of 2021 was not audited, which may affect the reliability of the financial data presented[63]

Financial Performance - The company's operating revenue for 2020 was CNY 836,771,454.77, a decrease of 25.16% compared to CNY 1,118,070,925.69 in 2019[16] - The net profit attributable to shareholders was a loss of CNY 90,051,047.58, representing a decline of 1,352.26% from a profit of CNY 7,191,091.30 in the previous year[16] - The net cash flow from operating activities was negative CNY 248,727,976.24, a decrease of 181.62% compared to a positive cash flow of CNY 304,729,532.67 in 2019[16] - Basic and diluted earnings per share were both negative CNY 0.18, a decline of 1,000.00% from CNY 0.02 in 2019[16] - The weighted average return on net assets was -4.37%, down from 0.36% in the previous year[16] - Total assets at the end of 2020 were approximately ¥3.10 billion, a decrease of 1.78% compared to the end of 2019[17] - Net assets attributable to shareholders increased by 9.00% to approximately ¥2.18 billion at the end of 2020[17] - The company reported a total of ¥5.91 million in non-recurring gains and losses for 2020, a significant decrease from ¥19.15 million in 2019[23] - The company reported a total revenue of ¥836,771,454.77 for 2020, a decrease of 25.16% compared to the previous year[43] - The net profit attributable to shareholders was a loss of ¥90,051,047.58, significantly impacted by the COVID-19 pandemic[43] Business Operations - The company has not made any changes to its main business since its listing[15] - The company has established production bases in multiple provinces, including Shandong, Jilin, and Guangdong, to optimize resource allocation and reduce inventory risks[27] - The company is a leading supplier of prestressed concrete pipes (PCCP) in China, benefiting from the increasing demand for large-diameter water pipeline projects[26] - New business initiatives include non-excavation repair services, which are currently in the early stages of development and have not yet generated revenue[29] - The acquisition of 100% of Xinfeng Pipe Industry in 2016 has allowed the company to enter the high-end metal pipe fittings market, particularly in the nuclear power and petrochemical sectors[28] - The company’s production model is primarily order-based, which helps mitigate inventory risks and aligns production with customer specifications[27] - The company has established a strategic development policy focusing on "based in the central and eastern regions, steady expansion, demand-driven factories, and service-oriented"[34] - The company has successfully won bids for several major water diversion projects, enhancing its competitive strength in the PCCP industry[32] Risks and Challenges - The company faces risks including the impact of the COVID-19 pandemic and fluctuations in raw material prices[6] - Future plans and forecasts are subject to market conditions and operational efforts, indicating a level of uncertainty[6] - The company acknowledges the risk of declining bid success rates as project bidding increases, which may raise operational costs and affect performance[105] - The company has identified risks related to delayed supply of signed contracts due to various uncertainties affecting project construction progress[104] - The company faces risks from fluctuations in raw material prices, particularly steel and cement, which impact cost control for PCCP pipes and metal fittings[105] Research and Development - The company has a strong focus on R&D, with significant investments leading to the development of proprietary design software for pipeline products[37] - The company holds 28 invention patents, 113 utility model patents, and 4 software copyrights as of the end of the reporting period[39] - The company’s R&D expenses slightly increased by 0.89% to ¥10,212,696.70, indicating a continued focus on innovation[49] - R&D investment decreased by 13.74% from 36,011,654.14 CNY in 2019 to 31,062,328.15 CNY in 2020, while the proportion of R&D investment to operating revenue increased from 3.22% to 3.71%[67] - The number of R&D personnel decreased by 5.65% from 124 in 2019 to 117 in 2020, with the proportion of R&D personnel to total employees dropping from 10.54% to 9.94%[67] Corporate Governance - The company is under the supervision of the accounting firm He Xin and has appointed CITIC Securities as its sponsor for ongoing guidance[16] - The company has established a modern corporate governance structure to protect the rights of shareholders and creditors, ensuring accurate and timely information disclosure[156] - The company has a strong emphasis on corporate governance, with independent directors and a well-structured supervisory board to ensure compliance and oversight[191] - The company maintains a stable governance structure with no changes in key management personnel during the reporting period[187] - The company has confirmed that all commitments to minority shareholders have been fulfilled on time[119] Financial Management - The company completed a non-public stock issuance, raising ¥338 million, which improved its net asset level and risk resistance[49] - The company repurchased 11,750,155 shares, accounting for 2.07% of its total share capital, to enhance the motivation of its core management team[50] - The company has a commitment to maintain independent assets, ensuring no occupation of funds or assets by the parent company[116] - The company guarantees the establishment of an independent financial department and accounting system, ensuring compliance with financial regulations[115] - The company has a legal obligation to compensate for any economic losses caused by violations of the commitments made[116] Market Outlook - The concrete pipeline industry in China is expected to see sustained growth due to ongoing water resource challenges and infrastructure needs[96] - The market for prestressed concrete cylinder pipes (PCCP) is projected to grow, driven by urbanization and national water resource policies[96] - The company is positioned to benefit from the anticipated growth in the concrete pipeline market, particularly in long-distance water transportation projects[96] - The approval of nuclear power projects has resumed, indicating a potential rapid growth period for nuclear power installations in China, which will increase demand for high-end metal pipe products[99] - The stainless steel pipe market is expected to grow due to increasing demand for safe drinking water and urbanization, with thin-walled stainless steel pipes being designated as the preferred material in major cities[100] Related Party Transactions - The company has established fair pricing agreements based on market prices for procurement transactions with related parties[132] - The company is committed to transparency in its financial dealings and pricing agreements with related parties[132] - The company has engaged in daily related party transactions, with a total of 613.12 million reported for one of the transactions[134] - The company emphasized compliance with market pricing standards in all related party transactions, reflecting a commitment to transparency[134] - The company has outlined specific pricing agreements with related parties, ensuring compliance with market standards[136] Employee Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 3.6219 million CNY[196] - The company employed a total of 1,177 staff, with 631 in production, 106 in sales, 89 in technical roles, 76 in finance, and 275 in administration[199] - The number of employees with a bachelor's degree or higher is 260, while 185 hold a diploma, and 732 have other educational qualifications[199] - The remuneration for the chairman and president, Fu Bo, was 700,000 CNY, while the vice chairman, Liu Qiang, received 592,800 CNY[197] - The company’s employee compensation policy is based on economic performance, production output, and job responsibilities[200]

山东龙泉管道工程股份有限公司 2020 年第三季度报告全文 山东龙泉管道工程股份有限公司 2020 年第三季度报告 2020-103 2020 年 10 月 1 山东龙泉管道工程股份有限公司 2020 年第三季度报告全文 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。 公司负责人付波、主管会计工作负责人贲亮亮及会计机构负责人(会计主管 人员)贲亮亮声明：保证季度报告中财务报表的真实、准确、完整。 2 山东龙泉管道工程股份有限公司 2020 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 3,336,545,575.76 | 3,151,302,506.27 | | 5.88% | | 归属于上市公司股东的净资 ...

Group 1: Event Announcement - Shandong Longquan Pipeline Engineering Co., Ltd. will participate in the "2020 Annual Investor Online Collective Reception Day" for listed companies in Shandong [2] - The event will be held on September 29, 2020, from 15:00 to 16:55 [2] - Investors can join the event through the "Panorama · Roadshow World" website [2] Group 2: Communication Details - Company representatives, including Secretary of the Board Ms. Tang Qian and Securities Affairs Representative Mr. Zhai Shenchen, will engage with investors online [2] - The company encourages active participation from investors during the event [2] Group 3: Assurance of Information Integrity - The company and its board members guarantee the authenticity, accuracy, and completeness of the disclosed information, with no false records or significant omissions [2]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥206,905,847.58, a decrease of 60.64% compared to ¥525,714,474.72 in the same period last year[17]. - The net profit attributable to shareholders was a loss of ¥84,427,243.44, representing a decline of 257.25% from a loss of ¥23,632,464.28 in the previous year[17]. - The net cash flow from operating activities was negative at ¥76,815,877.54, a decrease of 309.10% compared to a positive cash flow of ¥36,736,822.96 in the same period last year[17]. - The basic and diluted earnings per share were both -¥0.18, a decline of 260.00% from -¥0.05 in the previous year[17]. - The total comprehensive income for the first half of 2020 was a loss of ¥86,750,027.96, compared to a loss of ¥25,111,977.75 in the first half of 2019, indicating a significant deterioration in overall financial performance[150]. - The company's total comprehensive income for the first half of 2020 was a loss of CNY 14,991,899, representing a significant decrease compared to the previous period[174]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,160,172,835.40, an increase of 0.28% from ¥3,151,302,506.27 at the end of the previous year[17]. - The total liabilities increased to CNY 1,374,572,282.43 in the first half of 2020, compared to CNY 1,211,999,614.97 in the same period last year[146]. - The total owner's equity at the end of the reporting period was 1,988.30 million yuan, reflecting a decrease from the previous period[167]. - The total liabilities at the end of the reporting period were 1,820.00 million yuan, indicating a stable financial position[167]. Operational Challenges - The company faces risks including project delays, raw material price fluctuations, and impacts from the COVID-19 pandemic[5]. - The ongoing COVID-19 pandemic has introduced supply chain risks and may lead to a decline in business volume due to demand shortages[76]. - There is a risk of delayed supply for signed contracts due to various uncertainties affecting project construction progress, which may impact revenue realization[74]. Business Strategy and Development - The company operates an order-based production model, establishing production bases in multiple provinces to minimize inventory risks and optimize resource allocation[26]. - The company has expanded its business to include drainage pipes and steel pipes in addition to its existing PCCP and high-end metal pipe fittings[28]. - The company has developed a strategic focus on high-end pressure pipeline fittings for the petrochemical and nuclear power sectors, positioning itself as a key supplier for major state-owned enterprises[34]. - The company has signed or won bids for several key projects, including the "Yangtze River Diversion Project (Henan Section)" and "Shenghong Refining and Chemical Co., Ltd." supply agreements, with a total pending order amount of approximately CNY 1.8 billion[44]. Research and Development - The company has established a new subsidiary, Shandong Zequan Scientific Engineering Technology Research Institute Co., Ltd., to enhance its research and development capabilities[45]. - The company holds 28 invention patents, 113 utility model patents, and 3 software copyrights, reflecting its strong technological capabilities in high-pressure hydrogen pipe fittings and nuclear-grade metal fittings[37]. - The research and development expenses for the first half of 2020 were ¥21,245.89, significantly lower than ¥88,355.33 in the first half of 2019, showing a reduction of 76.0%[152]. Market Presence and Competition - The company is a leading supplier of prestressed concrete cylinder pipes (PCCP) in China, maintaining a strong position in the market after over a decade of development[25]. - The brand "Yan Shen Long Quan" has been recognized as a famous brand in Shandong Province, contributing to the company's strong market presence[32]. - The company has actively expanded its overseas business, participating in projects in Pakistan, Vietnam, Myanmar, and Kazakhstan[34]. Financial Management - The company has implemented a unified information management system and centralized procurement to control costs and improve product quality[39]. - The company aims to optimize its business layout and improve its bidding success rate to sustain growth amid increasing competition[76]. - The company is in the process of a non-public stock issuance, which is expected to improve its financial condition and capital structure[45]. Related Party Transactions - The company engaged in related party transactions with Suzhou Yujing Tai Co., Ltd. for raw material procurement amounting to 5.4786 million yuan, accounting for 2.83% of similar transactions[89]. - The pricing for all related party transactions was based on market prices, ensuring fairness and reasonableness in pricing principles[89]. - The total amount of related party transactions was disclosed to be within the approved limits, with no transactions exceeding the thresholds set[89]. Compliance and Governance - The semi-annual financial report was not audited[82]. - There were no major litigation or arbitration matters during the reporting period[85]. - The company has taken corrective measures following administrative penalties related to environmental violations[108].

Financial Performance - The company's operating revenue for 2019 was CNY 1,118,070,925.69, representing a 10.48% increase compared to CNY 1,012,054,468.51 in 2018[16]. - The net profit attributable to shareholders was CNY 7,191,091.30, a significant turnaround from a loss of CNY 94,615,341.13 in the previous year, marking a 107.60% improvement[16]. - The net cash flow from operating activities increased by 125.04% to CNY 304,729,532.67, up from CNY 135,413,768.00 in 2018[16]. - The total assets at the end of 2019 were CNY 3,151,302,506.27, a decrease of 7.01% from CNY 3,388,991,574.33 in 2018[16]. - The company's basic earnings per share improved to CNY 0.02 from a loss of CNY 0.20 in 2018, reflecting a 110.00% increase[16]. - The weighted average return on equity was 0.36%, recovering from -4.63% in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY -11,955,558.09, an 86.99% improvement from CNY -91,919,590.78 in 2018[16]. - The company's net assets attributable to shareholders at the end of 2019 were CNY 2,004,480,772.25, a slight increase of 0.07% from CNY 2,003,013,756.78 in 2018[16]. Business Operations and Strategy - The company is a leading supplier of prestressed concrete pipes (PCCP) in China, with a strong market position in large-scale water pipeline projects[26]. - The company has expanded its business into high-end metal pipe fittings through the acquisition of Xinfeng Pipe Industry, enhancing its capabilities in the nuclear and petrochemical sectors[27]. - The company is actively developing new businesses, including drainage pipes and municipal engineering contracting, to diversify its revenue streams[29]. - The company has successfully won multiple contracts for major water diversion projects across China, enhancing its competitive strength in the PCCP industry[32]. - The company has established a strategic development approach focusing on "central and eastern China, steady expansion, demand-based factories, and customer service" to enhance its market presence[35]. - The company is focusing on expanding its market presence in the PCCP industry, which is expected to grow due to ongoing infrastructure needs[91]. Research and Development - The company has accumulated 27 invention patents, 119 utility model patents, and 3 software copyrights, showcasing its strong commitment to R&D and innovation[39]. - The company is advancing several R&D projects, including "PCCP prestressed steel wire stress monitoring technology" and "smart pipeline research"[46]. - The company aims to increase R&D investment and accelerate external technical cooperation to drive transformation and development[95]. Risk Management - The company faces risks including project delays, raw material price fluctuations, and impacts from the COVID-19 pandemic[5]. - The company faces risks related to the release schedule of large-scale water, petrochemical, and nuclear power projects, which can significantly impact operational performance[96]. - The company is addressing risks associated with raw material price fluctuations by implementing centralized procurement management[97]. Corporate Governance and Compliance - The company has established a commitment to resolve any existing competitive business issues within five years of becoming the actual controller[108]. - The company guarantees that related party transactions will be conducted at fair market prices to protect the interests of non-related shareholders[111]. - The company ensures that its assets are independent and complete, with no asset occupation by itself or its subsidiaries[113]. - The company has ensured compliance with legal and regulatory requirements in its financial reporting practices[134]. Shareholder and Capital Management - The company plans to issue new shares to optimize its capital structure and improve financial conditions[47]. - The company did not distribute cash dividends for the fiscal year 2019, with a net profit attributable to shareholders of 7,191,091.30 RMB, resulting in a cash dividend payout ratio of 0.00%[104]. - The company plans to retain the undistributed profits from 2019 to support future investment and operational funding needs[104]. - The company has not proposed any capital reserve conversion into share capital for the fiscal year 2019[105]. Environmental and Social Responsibility - The company donated 500,000 RMB to support the fight against COVID-19[176]. - The company adheres to environmental protection laws and has made investments in environmental facilities to align with sustainable development goals[178]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[178]. Financial Management - The total amount of cash and cash equivalents increased by 271.12% to ¥76,064,671.14, reflecting improved liquidity[69]. - The company has engaged in entrusted financial management, with a total amount of CNY 35 million in bank financial products, and an unexpired balance of CNY 20 million[169]. - The company has no overdue amounts that have not been recovered during the reporting period[169]. Market and Pricing Strategy - The company has established pricing principles based on market prices for transactions with related parties, ensuring fairness and transparency[154]. - The company emphasizes fair pricing practices in its transactions, ensuring compliance with public trading standards[148]. - The company has maintained a consistent pricing strategy across various regions, including a pricing of 4.3 for products sold in Yingkou[149].

Financial Performance - The company's operating revenue for Q1 2020 was ¥48,584,266.61, a decrease of 68.81% compared to ¥155,749,600.46 in the same period last year[8] - The net profit attributable to shareholders for Q1 2020 was -¥49,467,818.47, representing a decline of 36.56% from -¥36,225,087.31 in the previous year[8] - The net cash flow from operating activities was -¥112,101,273.59, a significant drop of 502.69% compared to -¥18,600,279.88 in the same period last year[8] - Revenue decreased by 68.81% year-on-year, mainly due to delays in resuming work caused by the COVID-19 pandemic[17] - Operating costs decreased by 67.28% year-on-year, primarily due to reduced revenue from the impact of the COVID-19 pandemic[17] - Net profit decreased by 39.28% year-on-year, mainly due to the impact of the COVID-19 pandemic on the company's performance[17] - The net profit for Q1 2020 was a loss of ¥24,402,173.54, compared to a loss of ¥22,688,265.17 in Q1 2019, indicating a worsening performance[43] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,019,430,418.71, down 4.18% from ¥3,151,302,506.27 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 2.47%, from ¥2,004,480,772.25 at the end of the previous year to ¥1,955,012,953.78[8] - Total assets as of March 31, 2020, amounted to CNY 3,169,406,555.30, an increase from CNY 3,089,901,415.68 at the end of 2019[35] - Total liabilities reached CNY 1,315,906,928.13, compared to CNY 1,211,999,614.97 in the previous period[35] - The company's equity attributable to shareholders was CNY 1,853,499,627.17, down from CNY 1,877,901,800.71[35] - Total liabilities amounted to 1,130,558,365.83 yuan, consistent with the previous reporting period[55] Cash Flow - The net cash flow from operating activities was -64,072,350.14 yuan, a decrease from 45,972,033.87 yuan in the previous period[50] - Cash inflow from operating activities totaled 343,878,915.26 yuan, compared to 223,455,123.48 yuan in the prior period, representing a 54% increase[50] - Cash outflow from operating activities increased to 407,951,265.40 yuan from 177,483,089.61 yuan, indicating a significant rise in operational expenses[50] - Cash flow from investing activities showed a net outflow of -1,094,722.87 yuan, an improvement from -10,423,588.50 yuan in the previous period[51] - Cash inflow from financing activities was 44,000,000.00 yuan, up from 30,000,000.00 yuan, reflecting a 47% increase in financing received[51] - The net cash flow from financing activities improved to 7,318,957.04 yuan from -85,068,272.01 yuan, indicating a positive shift in financing operations[51] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,338[11] - The largest shareholder, Liu Changjie, holds 20.64% of the shares, amounting to 97,517,139 shares[11] Operational Challenges - Accounts receivable increased by 165.61% compared to the beginning of the period, mainly due to an increase in commercial acceptance bills received from customers[17] - Other receivables increased by 118.72% compared to the beginning of the period, primarily due to an increase in performance guarantees[17] - R&D expenses decreased by 38.70% year-on-year, mainly due to delays in resuming work caused by the COVID-19 pandemic[17] - The company incurred a loss of ¥1,338,879.44 in asset impairment losses during Q1 2020, compared to a gain of ¥1,681,891.31 in the previous year[43] Regulatory and Strategic Actions - The company is in the process of adjusting its non-public issuance of A-shares, pending approval from the China Securities Regulatory Commission, which carries uncertainty[15] - The report indicates a significant adjustment in contract assets and liabilities due to the new revenue accounting standards[59] - The company reported a long-term equity investment of CNY 1,080,182,774.84, reflecting its commitment to strategic investments[58] Miscellaneous - The company has not undergone an audit for the first quarter report[60] - The report was issued by the board of directors on April 28, 2020, under the representation of the legal representative Fu Bo[61]

Financial Performance - The company's operating revenue for 2019 was CNY 1,118,070,925.69, representing a 10.48% increase compared to CNY 1,012,054,468.51 in 2018[17]. - The net profit attributable to shareholders was CNY 7,191,091.30, a significant turnaround from a loss of CNY 94,615,341.13 in the previous year, marking a 107.60% improvement[17]. - The net cash flow from operating activities increased by 125.04% to CNY 304,729,532.67, up from CNY 135,413,768.00 in 2018[17]. - The total assets at the end of 2019 were CNY 3,151,302,506.27, a decrease of 7.01% from CNY 3,388,991,574.33 at the end of 2018[17]. - The company's basic earnings per share improved to CNY 0.02 from a loss of CNY 0.20 in 2018, reflecting a 110.00% increase[17]. - The weighted average return on net assets was 0.36%, recovering from -4.63% in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY -11,955,558.09, an improvement of 86.99% from CNY -91,919,590.78 in 2018[17]. - The company's net assets attributable to shareholders at the end of 2019 were CNY 2,004,480,772.25, a slight increase of 0.07% from CNY 2,003,013,756.78 in 2018[17]. Business Expansion and Strategy - The company is actively expanding into new business areas, including drainage pipes and municipal engineering contracting[29]. - The company has established production bases in multiple provinces to optimize resource allocation and mitigate inventory risks[27]. - The company has successfully won contracts for multiple significant water diversion projects across China, enhancing its competitive strength in the PCCP industry[32]. - New Peak Pipe Industry has transformed its product focus from ordinary metal fittings to high-end pressure pipeline accessories, becoming a key supplier for major state-owned enterprises in the petrochemical and nuclear power sectors[36]. - The company signed contracts totaling approximately ¥2.24 billion in new business areas, including drainage pipes and municipal engineering[48]. - The company is focusing on enhancing existing capacity and asset utilization while prioritizing core business operations[95]. Research and Development - The company is advancing several R&D projects, including "PCCP prestressed steel wire stress monitoring technology" and "smart pipeline research"[46]. - The company plans to increase R&D investment and enhance external technical cooperation to drive transformation and development[95]. - The company has accumulated 27 invention patents, 119 utility model patents, and 3 software copyrights, showcasing its strong technological innovation capabilities[39]. Risks and Challenges - The company faces risks including project delays, raw material price fluctuations, and impacts from the COVID-19 pandemic[5]. - The company acknowledges the risk of decreased bidding success rates as project undertakings increase, impacting operational costs[98]. - The company is exposed to risks from delays in supply for signed contracts, which may affect expected sales revenue[97]. - Fluctuations in the prices of key raw materials, such as steel and cement, pose a risk to cost control[97]. Shareholder and Governance Matters - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company has committed to minimizing related party transactions during the tenure of the controlling shareholder[127]. - The company will ensure compliance with legal disclosure obligations regarding related party transactions[127]. - The actual controller of the company has made commitments to avoid competition with the company's main business for a period of five years[108]. Financial Management and Compliance - The company reported a change in accounting policies effective from January 1, 2019, in accordance with the latest regulations issued by the Ministry of Finance[131]. - The impairment accounting treatment for financial assets has shifted from "incurred loss model" to "expected loss model," expanding the scope of provisions to better reveal and manage credit risk[133]. - The company has established a comprehensive employee rights protection system, including social security, compensation, and safety measures[177]. Market Outlook - The PCCP industry is expected to see sustained growth due to ongoing water resource challenges and infrastructure needs in China, with significant market opportunities ahead[92]. - The projected investment for major water conservancy projects in China is approximately 1.3 trillion, indicating a robust demand for PCCP products[92]. - The company provided a future outlook projecting a revenue growth of 10% for the next fiscal year, targeting 1.32 billion RMB[114]. Legal and Regulatory Matters - The company is involved in a lawsuit against Dandong Dadong Port Management Co., with a disputed amount of CNY 13.09 million, which has been ruled in favor of the company, and the defendant is currently executing the payment[143]. - The company incurred a fine of CNY 24,000 for not conducting emergency plan reviews as required[144]. - The company has faced environmental penalties totaling CNY 30,000 and CNY 20,000 for violations related to air pollution control[181].