Financial Performance - Operating revenue for the current period reached CNY 676,441,662.50, a 55.76% increase year-over-year[9] - Net profit attributable to shareholders decreased by 37.53% to CNY 30,226,514.08 compared to the same period last year[9] - The net profit after deducting non-recurring gains and losses fell by 45.89% to CNY 24,755,319.00[9] - Basic earnings per share decreased by 38.29% to CNY 0.1244[9] - The weighted average return on net assets decreased by 3.37 percentage points to 1.93%[9] - The company reported a total profit of ¥42,764,861.76 for the third quarter, down 25.7% from ¥57,415,721.84 in the same period last year[56] - The total comprehensive income for the third quarter was ¥30,226,514.08, reflecting a decrease of 37.5% compared to ¥48,384,405.15 in the previous year[56] - The net profit for the year-to-date period was ¥89,615,391.78, a decrease of 31.9% from ¥131,660,195.88 in the previous year[60] - The company reported a basic earnings per share of ¥0.3689 for the year-to-date period, down 32.7% from ¥0.5486 in the previous year[60] Assets and Liabilities - Total assets increased by 21.94% to CNY 2,335,900,536.34 compared to the end of the previous year[9] - Current assets rose to CNY 1,711,406,821.35 from CNY 1,475,341,029.01, indicating an increase of about 16%[42] - The company's non-current assets totaled CNY 624,493,714.99, up from CNY 440,327,988.07, showing a growth of around 42%[43] - The total liabilities increased to CNY 1,711,406,821.35, reflecting a significant rise compared to previous periods[43] - The company's total liabilities reached CNY 755,330,379.95, compared to CNY 363,897,852.47 in the same period last year, indicating a substantial increase of about 107.5%[45] - Current liabilities totaled CNY 512,090,255.92, an increase from CNY 460,388,916.07 in the previous year, representing a rise of approximately 11.4%[49] Cash Flow - The company reported a net cash flow from operating activities of CNY 32,886,717.34, an increase of 108.27% year-to-date[9] - The company reported a net cash flow from operating activities for Q3 2014 of ¥32,886,717.34, a significant improvement compared to a net outflow of ¥397,863,260.74 in the same period last year[67] - Total cash inflow from operating activities reached ¥1,531,770,731.28, up from ¥1,125,963,357.89 year-on-year[66] - Cash outflow from operating activities was ¥1,498,884,013.94, slightly down from ¥1,523,826,618.63 in the previous year[67] - The company reported a net cash flow from investment activities of -¥934,465.76, an improvement from -¥178,318,562.81 in the previous year[67] - Cash outflow from financing activities was ¥886,394,531.60, up from ¥463,086,171.91 year-on-year[68] - The net cash flow from financing activities was -¥133,386,936.82, a decline from a positive net flow of ¥92,839,129.31 in the previous year[68] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,951[13] - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 34.89% of the shares[13] - Shareholders Wanjing Investment and Evergrande Investment committed not to transfer or entrust the management of their shares within six months from the company's stock listing date, which was on May 7, 2015[28] - The actual controller, Wu Huachun, committed not to transfer or entrust the management of shares held indirectly for 36 months from the company's stock listing date[28] - Shareholders committed to not producing or developing any products that may compete with the company's products since April 17, 2012, and will cease any competing business if necessary[29] Operational Highlights - The company plans to use part of the raised funds for the acquisition of 100% equity in Xuzhou Xining Leather Industry Co., Ltd., which was approved by the board and shareholders[27] - The company is focused on expanding its market presence and enhancing product offerings to drive future growth[36] - The company continues to explore new strategies for market expansion and product development to sustain competitive advantage[36] Cost and Expenses - Operating costs rose to ¥1,301,679,582.15, reflecting a 45.75% increase from ¥893,090,585.18, driven by higher sales volume and rising raw material costs[24] - The company’s financial expenses surged by 202.70% to ¥12,935,875.75, primarily due to reduced interest income and increased borrowing costs[24] - The decline in profit margin is attributed to increased procurement costs due to rising import prices of raw hides and unfavorable exchange rate fluctuations, which the company could not pass on to downstream enterprises[32] Dividend Policy - The company has committed to a cash dividend policy, with a minimum cash dividend ratio of 80% for mature stages without major capital expenditures[31] - The company aims to maintain a stable and continuous profit distribution policy, prioritizing cash dividends over stock dividends[31] - The company has implemented a differentiated cash dividend policy based on its development stage and financial conditions[31]

Financial Performance - The company's operating revenue for the reporting period was ¥814,853,629.91, representing a 19.76% increase compared to ¥680,386,169.54 in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 28.68% to ¥59,388,877.70 from ¥83,275,790.73 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥50,873,590.82, down 39.05% from ¥83,461,016.55 in the same period last year[20]. - Basic and diluted earnings per share were both ¥0.2445, reflecting a decrease of 29.54% from ¥0.347 in the same period last year[20]. - Operating profit decreased by 37.92% to ¥61,374,400, reflecting the impact of increased operating costs[28]. - The total comprehensive income for the period was CNY 62,383,317.03, compared to CNY 77,338,194.08 in the previous period, reflecting a decrease of approximately 19.3%[137]. Cash Flow and Investments - The net cash flow from operating activities improved significantly, reaching ¥-27,278,260.03, a 92.22% increase compared to ¥-350,796,868.38 in the previous year[20]. - Operating cash flow was negative at -¥27,278,260.03, but improved by 92.22% compared to the previous year[30]. - The company reported a significant increase in investment income by 169.86% to ¥5,555,812.10, attributed to idle fundraising management[32]. - Cash inflows from operating activities amounted to CNY 802,510,152.04, up from CNY 648,780,808.06, representing an increase of about 23.6%[138]. - The net cash flow from financing activities was negative at CNY -27,704,440.75, a decline from a positive CNY 234,760,715.96 in the prior period[140]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,412,013,252.36, a 25.91% increase from ¥1,915,669,017.08 at the end of the previous year[20]. - The total liabilities of the company amounted to RMB 861,578,210.05, compared to RMB 363,897,852.47 at the beginning of the period, indicating a rise of about 136.5%[128]. - Current assets reached RMB 1,807,344,322.94, compared to RMB 1,475,341,029.01 at the start of the period, indicating an increase of about 22.5%[127]. - The company's equity remained stable with total equity at RMB 1,550,435,042.31, slightly down from RMB 1,551,771,164.61[128]. Research and Development - Research and development expenses increased by 20.47% to ¥25,583,215.03, indicating a commitment to innovation[31]. - New product developments such as "Whole Sheet 211-3" and "8NP" have begun mass production and gained market acceptance[36]. Strategic Initiatives - The company has adjusted its sales strategy to focus on high-profile clients, establishing long-term partnerships with brands like Belle and Aokang[37]. - The introduction of advanced Italian tanning technology has improved yield rates, helping to mitigate rising raw material costs[38]. - The company is in the process of integrating the newly acquired subsidiary, Xuzhou Xingning Leather Co., Ltd., having paid 60% of the share transfer price[34]. Fundraising and Capital Management - The total amount of raised funds is CNY 672.39 million after deducting issuance fees[55]. - The company plans to invest CNY 199.78 million in a new technology processing project for high-end leather[55]. - The company has temporarily idled 8,465.56 CNY million of raised funds to enhance operational efficiency and competitiveness[58]. - The company plans to adjust the investment in the "Reson Leather Annual Processing of 1.2 million cow hides and 300,000 cow wet blue hides project," reallocating 13,487.43 CNY million to expand the annual processing of 1.5 million blue wet hides[58]. Shareholder and Governance Matters - The company plans to distribute a cash dividend of 2.5 yuan per 10 shares, totaling 60,725,000 yuan for the 2013 fiscal year[73]. - The company has implemented a profit distribution plan in accordance with its articles of association, ensuring the interests of all shareholders are protected[71]. - The company has made commitments to avoid competition with its subsidiaries and to refrain from engaging in competitive businesses[101]. - The company emphasizes a stable and continuous profit distribution policy to ensure reasonable returns for investors[105]. Compliance and Reporting - The financial statements are prepared in accordance with the Chinese Accounting Standards and reflect a continuous operation basis[162]. - The company did not report any changes in accounting policies or prior period error corrections during the current period[150]. - The company’s governance practices align with the requirements of the Company Law and relevant regulations[78].

兴业皮革科技股份有限公司 2014 年第一季度报告正文 证券代码：002674 证券简称：兴业科技 公告编号：2014-027 兴业皮革科技股份有限公司 2014 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人吴华春、主管会计工作负责人蔡建设及会计机构负责人(会计主管人员)李光 清声明：保证季度报告中财务报表的真实、准确、完整。 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期 | | | --- | --- | --- | --- | --- | | | | | 增减 | | | 营业收入（元） | 308,455,518.05 | 294,777,790.71 | | 4.64% | | 归属于上市公司股东的净利润 （元） | 28,109,728.10 | ...

Financial Performance - The company achieved operating revenue of CNY 1,780,389,445.99, representing a year-on-year growth of 15.35%[22]. - Net profit attributable to shareholders reached CNY 177,476,066.65, an increase of 22.04% compared to the previous year[22]. - The total profit for the period was CNY 20,950,120.00, reflecting a growth of 22.52% year-on-year[33]. - The company reported a significant increase in operating profit, which amounted to CNY 20,752,690.00, up by 24.75% from the previous year[33]. - The total assets of the company at the end of 2013 were CNY 1,915,669,017.08, marking an 18.29% increase from the previous year[22]. - The net assets attributable to shareholders were CNY 1,551,771,164.61, a growth of 10.4% compared to the end of 2012[22]. - The company’s net profit for the year was 177.48 million yuan, while the net cash flow from operating activities was -10.36 million yuan, indicating a significant discrepancy due to increased inventory and accounts receivable[59]. - The company reported a profit of ¥2,058,700 from its investment in Fujian Jinjiang Rural Commercial Bank, maintaining a 1.915% equity stake[81]. Cash Flow and Investments - The net cash flow from operating activities decreased significantly to -¥103,634,909.97 in 2013 from ¥8,731,320.77 in 2012, mainly due to increased cash payments for raw materials and rising accounts receivable[36]. - The net cash flow from investing activities increased by 231.80% year-on-year, mainly due to the purchase of principal-protected financial products with idle funds during the reporting period[56]. - The net cash flow from financing activities decreased by 96.19% year-on-year, as the previous year included a public offering of 60 million A-shares, raising net funds of 672.39 million yuan[58]. - The company has returned RMB 6,000 million of the raised funds to repay bank loans[98]. - The company temporarily supplemented working capital with raised funds of RMB 50 million on October 30, 2012, and returned it to the special account by April 22, 2013[101]. Dividend Policy - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 60,725,000 CNY based on a total share capital of 242,900,000 shares as of December 31, 2013[3]. - The proposed cash dividend for 2013 is ¥60,725,000, which corresponds to ¥2.5 per 10 shares, representing 34.22% of the net profit attributable to shareholders[151]. - The company’s profit distribution policy mandates that cash dividends must not be less than 30% of the distributable profits for the year[141]. - The total cash dividends distributed over the past three years were ¥144,725,000, reflecting a consistent return to shareholders[151]. Environmental Commitment - The company has maintained its commitment to environmental protection through clean production strategies, aiming to minimize risks to human health and the environment[9]. - The company has significantly increased its investment in environmental protection facilities, enhancing wastewater recycling rates and reducing pollutant emissions[120]. - The company has developed a clean production technology that utilizes eco-friendly materials and processes, enhancing sustainability in leather production[156]. - The company invested ¥2,067,190 in environmental protection in 2013, contributing to a total investment of ¥47,372,400 over the past three years[155]. Research and Development - The company is committed to innovation in leather products, including special effect series and natural wrinkled leather, catering to market trends[9]. - The company is strengthening its R&D efforts by collaborating with international leather craftsmen to innovate and increase product value[34]. - The company has developed 4 design patents, 3 invention patents, and 8 utility model patents to improve product differentiation and competitiveness[75]. - The company’s R&D center has been recognized as a provincial-level enterprise technology center, reflecting its commitment to innovation[75]. Governance and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with key personnel affirming the integrity of the annual report[3]. - The company has a robust governance structure, with all board members present for the report's approval[3]. - The company has not experienced any major accounting errors requiring restatement during the reporting period[137]. - The company has established a plan to prevent the loss of core technical personnel, which is crucial for future product development[133]. Market Position and Strategy - The company aims to strengthen its market presence in the leather materials sector, particularly in the shoe upper leather market, where it holds the largest market share in China[123]. - The company is located in Jinjiang, Fujian Province, near major shoe manufacturing bases, providing geographical advantages for market trend responsiveness[78]. - The company has established strategic partnerships with numerous well-known footwear enterprises, enhancing its customer base and market responsiveness[78]. - The company faces risks related to stringent environmental regulations, which may lead to increased operational costs if compliance standards are raised[129]. Risks and Challenges - The company warns investors about the risks associated with forward-looking statements in the report[12]. - The company faces risks from low industry concentration and disordered competition, primarily from small domestic enterprises, which may impact sales and revenue[131]. - The company’s ability to maintain competitive advantages relies heavily on timely adaptation to downstream industry demand and technological advancements[130].

Financial Performance - The company achieved operating revenue of CNY 1,780,389,445.99, representing a year-on-year growth of 15.35%[22]. - Net profit attributable to shareholders reached CNY 177,476,066.65, an increase of 22.04% compared to the previous year[22]. - The total profit for the period was CNY 209,501,200, reflecting a growth of 22.52% year-on-year[32]. - The company's cash flow from operating activities was negative at CNY -103,634,909.97, a decline of 1,286.93% compared to the previous year[22]. - The weighted average return on equity decreased to 12.08%, down by 1.73 percentage points from the previous year[22]. - Total assets at the end of the year amounted to CNY 1,915,669,017.08, marking an 18.29% increase from the previous year[22]. - The company's operating revenue for 2013 was ¥1,780,389,445.99, representing a 15.35% increase from ¥1,543,406,489.55 in 2012, primarily due to increased product sales and prices[35]. - The cost of goods sold increased by 15.65% to ¥1,475,326,831.7 in 2013 from ¥1,275,650,559.7 in 2012, attributed to higher sales volume[35]. - The net cash flow from operating activities decreased significantly to -¥103,634,909.97 in 2013, compared to ¥8,731,320.77 in 2012, mainly due to increased cash payments for raw materials and rising accounts receivable[35]. - The company reported a substantial increase in investment income, which rose by 141.64% to ¥4,077,715.57 in 2013, driven by increased dividends from investments and returns on idle funds[35]. Dividend Policy - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 60,725,000 CNY based on a total share capital of 242,900,000 shares as of December 31, 2013[3]. - The cash dividend payout ratio for 2013 is 34.22% of the net profit attributable to shareholders, compared to 33.01% in 2012[148]. - The company’s profit distribution policy mandates that cash dividends must not be less than 30% of the distributable profits for the year[138]. - The company’s cumulative undistributed profits exceed 120% of its total share capital, allowing for the possibility of stock dividends[138]. - The proposed cash dividend for 2013 is ¥60,725,000, which corresponds to ¥2.5 per 10 shares, based on a total share capital of 242,900,000 shares[145]. Business Operations - The company has not undergone any changes in its main business operations since its listing[19]. - The company has not reported any changes in its controlling shareholders[19]. - The company has engaged the accounting firm Deloitte Touche Tohmatsu as its auditor for the reporting period[20]. - The company has established strategic partnerships with numerous well-known footwear enterprises, allowing for customized high-value products based on client needs[74]. - The company has maintained a leading position in production equipment, significantly improving automation and product quality through advanced machinery imported from countries like Italy and France[71]. Environmental Commitment - The company has maintained its commitment to environmental protection through clean production strategies, aiming to minimize risks to human health and the environment[9]. - The company has significantly increased its investment in environmental protection facilities, effectively reducing pollutant emissions and improving wastewater recycling efficiency[116]. - The company has implemented a comprehensive wastewater treatment process, achieving compliance with local discharge standards[154]. - The company aims to be a leader in green leather production, emphasizing resource conservation and environmental friendliness[150]. - The company has established a complete set of environmental management systems to ensure compliance and sustainability in operations[152]. Research and Development - Research and development expenses for 2013 amounted to ¥54,476,700.83, a 13.98% increase from ¥47,794,035.95 in 2012, representing 3.06% of operating revenue[49]. - The company has developed 4 design patents, 3 invention patents, and 8 utility model patents, enhancing its product differentiation and competitiveness in the leather industry[70]. - The company’s R&D center has been recognized as a provincial-level enterprise technology center, reflecting its strong innovation capabilities[70]. - The company plans to strengthen its R&D center to align with global leather manufacturing technologies and develop eco-friendly leather products[121]. Market Position and Strategy - The company maintains a leading position in production equipment among domestic leather enterprises and has strong core technology competitiveness in leather processing[115]. - The demand for mid-to-high-end leather products is expected to increase due to consumer upgrades, leading to higher industry concentration and larger market share for major enterprises[113]. - The leather industry experienced a slowdown in growth, with a decrease of 3.6 percentage points in 2013 due to reduced downstream demand[112]. - The industry remains fragmented, with small enterprises accounting for 46.39% of sales in the leather tanning sector, while large enterprises only represent 21.92%[112]. - There is an oversupply of low-end products, while high-end product production capacity is insufficient, leading to severe product homogeneity in the market[112]. Financial Management - The company has not encountered any overdue principal or interest receivables[90]. - The company has not reported any significant changes in the measurement attributes of its main assets during the reporting period[68]. - The company has not faced any administrative penalties during the reporting period, indicating a stable operational environment[156]. - The company has not reported any major market expansions or acquisitions during the reporting period[189]. - The company has not reported any significant changes in user data or performance metrics in the current documentation[189]. Corporate Governance - The company held multiple investor meetings throughout 2013, discussing its business operations and performance with various institutions[158]. - There were no significant litigation or arbitration matters during the reporting period[161]. - The company did not face any media scrutiny during the reporting period[162]. - The company has committed to not transferring or entrusting the management of shares held prior to the IPO for a period of 36 months[190]. - The company has not reported any non-standard audit opinions for the current reporting period[196].