Financial Performance - Net profit attributable to shareholders increased by 106.13% to CNY 21,447,421.28 for the reporting period[4] - Operating revenue for the reporting period was CNY 495,196,063.77, representing a 5.20% increase year-on-year[3] - The basic earnings per share rose by 106.40% to CNY 0.0710[4] - The weighted average return on equity increased by 0.51 percentage points to 0.96%[4] - The estimated net profit attributable to shareholders for 2018 is projected to be between CNY 76.73 million and CNY 99.30 million, representing a year-on-year increase of 70% to 120%[22] - The net profit for 2017 attributable to shareholders was CNY 45.14 million, indicating significant growth in profitability for 2018[22] - The increase in net profit is attributed to a rise in gross profit margin and gross profit amount[22] Cash Flow - The net cash flow from operating activities reached CNY 103,519,009.29, up 100.57% compared to the same period last year[4] - The net cash flow from operating activities increased to ¥252,718,154.33, a 202.49% increase compared to the previous period, primarily due to reduced procurement and payment amounts[13] - The net cash flow from investing activities improved by 28.65% to -¥15,303,989.55, mainly due to a reduction in payments for fixed asset purchases[13] - The net cash flow from financing activities decreased by 180.32% to -¥68,055,480.60, primarily due to an increase in dividend payments during the reporting period[13] Assets and Liabilities - Total assets increased by 1.07% to CNY 2,676,377,065.44 compared to the end of the previous year[3] - Other current assets decreased by 56.87% to CNY 15,394,711.85 due to a reduction in deductible input tax[10] - The amount of notes payable increased by 54.05% to CNY 98,018,767.90 as a result of issuing bank acceptance bills[10] - Prepayments increased by 99.40% to CNY 22,893,883.46 due to an increase in customer advance payments[10] Expenses - Financial expenses decreased significantly by 130.74% to -¥18,218,224.70, mainly due to increased interest income during the reporting period[12] - Other income rose by 101.49% to ¥14,810,370.18, primarily due to an increase in government subsidies received[12] - Investment income showed a significant decline of 149.49%, resulting in a loss of -¥1,305,434.82, attributed to losses recognized from investments in Fujian Xingye Dongjiang Environmental Technology Co., Ltd.[12] - Asset impairment losses increased by 104.48% to ¥166,637.96, mainly due to increased provisions for bad debts on accounts receivable[12] - The loss from asset disposal decreased by 97.61% to -¥12,438.32, primarily due to reduced losses from fixed asset disposals[12] - Operating expenses increased by 164.09% to ¥3,035,328.10, mainly due to increased donation expenditures during the reporting period[12] Dividend Policy - The company implements a differentiated cash dividend policy, with a minimum cash dividend ratio of 80% for mature stages without major capital expenditures[18] - For mature stages with significant capital expenditures, the minimum cash dividend ratio is set at 40% during profit distribution[18] - In growth stages with major capital expenditures, the minimum cash dividend ratio is 20%[18] - The company requires that the distributable profit for the year or half-year must be positive to implement cash distribution[18] - The cumulative distributable profit must be positive, with a minimum of 0.1 yuan per share for the current year[18] - The company will not proceed with cash dividends if there are significant investment plans or cash expenditures exceeding 50% of the latest audited net assets[18] - The company emphasizes a stable and continuous profit distribution policy to ensure sustainable development and reasonable returns for investors[17] - The company aims to maintain a healthy cash dividend system and prioritize cash dividends over stock dividends[17] - The company will deduct cash dividends from shareholders who have illegally occupied company funds[18] Corporate Governance - The company has committed to avoiding competition with its subsidiaries and will cease any competing operations if necessary[16] - The board of directors commits to not using its position to gain improper benefits in related transactions[17] - The company has committed to returning CNY 400 million to the fundraising account before the expiration of the temporary use of idle raised funds[21] - There were no violations regarding external guarantees during the reporting period[24] - The company reported no non-operating occupation of funds by controlling shareholders or related parties during the reporting period[25] - The company has not engaged in any entrusted financial management during the reporting period[26] Investor Relations - The company conducted an on-site research activity on September 12, 2018, with institutional investors[27] - Detailed records of investor relations activities are available on the Giant Tide Information Network[27] - The report indicates ongoing communication and engagement with stakeholders to enhance transparency[27] - The company is committed to maintaining an open dialogue with investors and analysts[27] - The investor relations activity record is accessible through the official website[27] - The company aims to leverage feedback from these engagements to inform strategic decisions[27] - The focus of the discussions included performance summaries and future outlooks[27] - The company emphasizes the importance of these interactions for market expansion strategies[27] - The documentation reflects the company's proactive approach to investor relations[27] - The company is dedicated to providing accurate and timely information to its stakeholders[27]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥774,848,510.65, a decrease of 15.21% compared to ¥913,826,873.22 in the same period last year[15]. - The net profit attributable to shareholders was ¥33,708,273.11, representing an increase of 39.47% from ¥24,169,143.57 year-on-year[15]. - Basic earnings per share rose to ¥0.1116, up 39.50% from ¥0.0800 in the same period last year[15]. - The operating cost decreased by 15.27% to ¥697,122,874.52 from ¥822,752,291.33, also attributed to the decline in sales volume[42]. - The company reported a total of ¥7,348,760.32 in non-recurring gains and losses during the reporting period[20]. - Other income rose by 105.00% to ¥11,991,250.40, primarily due to an increase in government subsidies received[42]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to ¥149,199,145.04, a 150.03% increase compared to a negative cash flow of ¥298,189,990.49 in the previous year[15]. - Cash and cash equivalents at the end of the reporting period amounted to ¥989,844,536.93, representing 37.73% of total assets, an increase of 3.71 percentage points compared to the previous year[49]. - The total assets at the end of the reporting period were ¥2,623,278,418.62, a slight decrease of 0.94% from ¥2,648,145,503.91 at the end of the previous year[15]. - The net assets attributable to shareholders decreased by 4.99% to ¥2,233,493,069.54 from ¥2,350,816,468.49 at the end of the previous year[15]. - Accounts receivable decreased to ¥176,080,894.57, accounting for 6.71% of total assets, a reduction of 1.85 percentage points due to a decline in sales[49]. - Inventory increased to ¥644,074,357.65, making up 24.55% of total assets, an increase of 0.87 percentage points[49]. Investments and Expansion - The company has a production capacity exceeding 100 million square feet of cowhide leather annually, maintaining the number one market share in the domestic cowhide shoe upper leather sector[26]. - The company is actively exploring new applications for leather in bags, furniture, and electronic product coverings to expand market opportunities[23]. - The company plans to invest 134.8 million CNY in the expansion project for processing 1.5 million pieces of wet blue leather, which accounts for 20.06% of the net amount raised from fundraising[64]. - The company has completed the acquisition of 100% equity in Xuzhou Xingning Leather Industry Co., Ltd. for 79.7 million CNY[63]. - The company has established partnerships with international brands such as Earth, Nine West, Polo, Zara, Prada, and Bally to expand its market presence amid weak domestic demand[37]. Environmental Management - The company emphasizes environmental protection, implementing advanced technologies to reduce pollutant emissions and improve wastewater recycling rates[33]. - The company has established a comprehensive wastewater treatment and recycling system, focusing on the separation and targeted treatment of five types of wastewater generated during leather processing[130]. - The company has invested in pollution control facilities, ensuring that emissions from spray painting and grinding processes meet regulatory standards[140]. - The company has implemented various noise control measures, including solid brick walls and sound-absorbing materials, to reduce noise pollution[147]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and approved by experts[150]. Risk Management - The company emphasizes the importance of risk awareness in its forward-looking statements and has detailed potential risks in its report[3]. - The company faces risks related to raw material price fluctuations, particularly for cowhide, which significantly impacts operational performance[83]. - The company is actively collecting market information to mitigate the impact of raw material price volatility on its profitability[83]. Shareholder Policies - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company has committed to a stable and continuous dividend distribution policy, emphasizing reasonable returns for investors and sustainable development[96]. - The company aims to distribute dividends at least once a year, primarily in cash, but may consider mid-term cash dividends based on profitability and funding needs[98]. - The company emphasizes maintaining shareholder rights and interests through its dividend distribution strategy[99]. Corporate Governance - The company did not experience any changes in its board of directors, supervisors, or senior management during the reporting period[181]. - The actual controller of the company has committed to not transferring shares for a period of 36 months following the company's stock listing[95]. - The company has made commitments to avoid any competitive products or businesses with its subsidiaries, ensuring compliance with the commitments made[96].

Financial Performance - The company's operating revenue for 2016 was CNY 2,565,857,719, representing an increase of 8.81% compared to CNY 2,358,148,642 in 2015[14]. - The net profit attributable to shareholders for 2016 was CNY 63,119,198.43, a significant increase of 374.58% from CNY 13,299,906 in 2015[14]. - The basic earnings per share for 2016 was CNY 0.2418, reflecting a growth of 337.25% compared to CNY 0.0548 in 2015[15]. - The total assets at the end of 2016 amounted to CNY 2,686,161,891, which is a 5.35% increase from CNY 2,549,777,753 in 2015[15]. - The net cash flow from operating activities for 2016 was CNY 420,499,636.2, a 619.02% increase from a negative CNY 81,018,774.1 in 2015[14]. - The total operating revenue for 2016 was CNY 2,565,857,719.58, representing an increase of 8.81% compared to CNY 2,358,148,642.13 in 2015[46]. - The net profit for 2016 was ¥63,119,198.43, showing a significant growth of 374.58% compared to the previous year[36]. - The net cash flow from operating activities reached ¥420,499,636.20, which is a remarkable increase of 619.02% year-on-year[36]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 CNY per 10 shares (including tax) based on a total share capital of 302,178,412 shares[3]. - In 2016, the company achieved a net profit of 59,391,321.18 yuan, with 10% allocated to statutory surplus reserves, resulting in a distributable profit of 599,757,758.03 yuan[119]. - The cash dividend for 2016 is set at 45,326,761.80 yuan, which represents 71.81% of the net profit attributable to shareholders[118]. - The company did not distribute any cash dividends in 2015, as it was in a strategic upgrade phase[114]. - The remaining undistributed profits as of the end of 2016 amount to 554,430,996.23 yuan, which will be retained for future distribution[119]. - The cash dividend distribution plan for 2016 is subject to approval at the annual general meeting[116]. - The company has maintained a consistent cash dividend policy, with a total cash dividend of 36,371,700 yuan in 2014, which was 30.32% of the net profit[118]. - The cash dividend for 2016 is 100% of the total distributable profit, indicating a commitment to returning value to shareholders[118]. Environmental Commitment - The company has a commitment to environmental protection through clean production strategies[7]. - Environmental protection measures were effective, with all pollutants meeting discharge standards and zero environmental accidents reported in 2016[45]. - The company has implemented a comprehensive wastewater treatment plan, focusing on the separation and targeted treatment of different types of wastewater generated during leather processing[158]. - The company has implemented a chromium wastewater recycling process, allowing for the reuse of chromium wastewater in the tanning process after treatment, significantly reducing waste[162]. - The company has established a middle water reuse system that employs membrane technology for purification, allowing for the recycling of treated wastewater back into production[171]. - The company has invested in advanced air pollution control measures, including a 40-meter high chimney for boiler emissions, ensuring compliance with environmental standards[176]. - The company has passed the ISO 14001 environmental management system certification[191]. - The company successfully met all local environmental protection standards for pollutant emissions, with no exceedances reported[188]. Operational Stability - The company has not reported any changes in its main business since its listing, indicating stability in its operations[13]. - The company operates under the stock code 002674 and is listed on the Shenzhen Stock Exchange[10]. - The registered address of the company is located in Anhai Second Industrial Zone, Jinjiang City, Fujian Province[10]. - The company has established subsidiaries, including Fujian Ruisen Leather Co., Ltd., which contribute to its operational capabilities[7]. - The company has been recognized as a high-tech enterprise and a national-level enterprise technology center, indicating its leadership in product R&D and innovation[23]. Market Position and Strategy - The company maintained the largest market share in the cowhide upper leather market in China for several consecutive years[23]. - The company plans to continue focusing on market-driven strategies, enhancing innovation, and expanding into diversified international markets[23]. - The company has established long-term partnerships with well-known brands such as Belle and Aokang, focusing on high-end shoe materials[26]. - The company’s production capacity exceeds 120 million square feet of cowhide leather annually, maintaining a leading market share in China[26]. - The company’s strategic focus includes "de-stocking," "de-leveraging," and "cost reduction" to navigate the challenging market environment[36]. Risks and Challenges - The company faces risks from stringent environmental regulations that may increase operational costs and pressure smaller competitors to exit the market[100]. - The company is exposed to risks related to product innovation and technology advancement, which are crucial for maintaining competitive advantages in the industry[101]. - Fluctuations in the price of raw materials, particularly cowhide, could significantly impact the company's financial performance if not managed effectively[102]. - Currency exchange rate fluctuations, particularly with the depreciation of the RMB, pose a risk to the company's earnings due to significant imports of raw materials[104]. - The company operates in a low-concentration industry with intense competition from numerous small enterprises, which may affect its market position and profitability[103]. Research and Development - The company holds 12 invention patents, 15 utility model patents, and 4 design patents as of the end of 2016, reflecting its commitment to technological innovation[27]. - Research and development (R&D) investment increased by 9.15% to ¥72,111,849.56, which is 2.81% of the operating revenue[57]. - The company plans to enhance product innovation through a combination of independent research and cooperative development, focusing on high-end, multifunctional leather products and green chrome-free leather[97]. - The company is committed to talent development by collaborating with universities and research institutions to cultivate skilled employees, ensuring a continuous supply of talent for its R&D team[99]. Financial Management - The company raised a total of RMB 720 million from the public offering in May 2012, with a net amount of RMB 672.39 million after deducting issuance costs[74]. - In August 2016, the company conducted a private placement of 61,510,162 shares at RMB 11.64 per share, raising RMB 715.98 million, with a net amount of RMB 709.97 million after fees[75]. - The company has a total of RMB 70.56 million in excess funds raised from the public offering[74]. - The company has committed to invest RMB 601.83 million in projects, including RMB 199.78 million for a new technology processing project and RMB 402.05 million for a leather processing project[74]. Corporate Governance - The company's independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy[111]. - The company commits to avoiding related party transactions that could harm shareholder interests, ensuring fairness in any unavoidable transactions[122]. - The company will not engage in any business that competes with its subsidiaries, ensuring no conflicts arise from business expansions[121]. - The company emphasizes maintaining a continuous and stable profit distribution policy to ensure reasonable returns for investors[122].

Financial Performance - The company's operating revenue for the first half of 2017 was ¥913,826,873.22, a decrease of 10.98% compared to ¥1,026,509,401.12 in the same period last year[15]. - Net profit attributable to shareholders increased by 151.61% to ¥24,169,143.57 from ¥9,605,890.56 year-on-year[15]. - The net profit after deducting non-recurring gains and losses rose by 162.51% to ¥19,635,173.87 compared to ¥7,479,742.54 in the previous year[15]. - The basic earnings per share increased by 101.51% to ¥0.0800 from ¥0.0397 in the same period last year[15]. - The company's operating revenue for the current period is ¥913,826,873.22, a decrease of 10.98% compared to ¥1,026,509,401.12 in the same period last year, primarily due to a reduction in sales volume[38]. - The operating cost decreased by 12.52% to ¥822,752,291.33 from ¥940,550,912.88, also attributed to the decline in sales volume[38]. - The gross profit margin for the leather industry was 10.09%, reflecting a decrease of 1.80 percentage points compared to the previous year[43]. - The company reported a net increase in cash and cash equivalents of -¥217,053,701.76, a decrease of 207.35% from -¥70,621,807.98 in the same period last year, primarily due to increased payments for raw materials[38]. - The company reported a total of 138,300 million CNY in committed investment projects[57]. - The company reported a total comprehensive income for the first half of 2017 of CNY 24,149,373.59, compared to CNY 9,623,238.11 in the same period last year, an increase of 151.00%[178]. Cash Flow and Investments - The net cash flow from operating activities was negative at -¥298,189,990.49, a decline of 330.14% compared to ¥129,566,828.61 in the same period last year[15]. - Cash flow from operating activities was negative CNY 298,189,990.49, a decline of 330.14% year-on-year, mainly due to increased payments for raw material procurement[31]. - The company reported a total cash inflow from financing activities of 146,086,685.32 CNY, down from 391,573,232.12 CNY in the previous period[186]. - The net cash flow from investing activities was -14,808,193.12 CNY, an improvement from -30,457,602.14 CNY in the previous period[185]. - The company received 150,560,920.32 CNY in borrowings during the financing activities, a decrease from 347,688,675.92 CNY in the previous period[185]. - The company has invested CNY 719.69 million in the high-end leather finishing technology project, achieving 99.44% of the expected investment progress[55]. - The company plans to invest 13,487.43 million CNY in the annual processing expansion project for 150,000 pieces of wet blue cowhide, which accounts for 20.06% of the net raised funds[57]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,812,141,543.45, reflecting a growth of 4.69% from ¥2,686,161,891.25 at the end of the previous year[15]. - The total liabilities increased to CNY 482,061,085.32 from CNY 334,904,044.91, reflecting a growth of approximately 43.93%[170]. - The total equity attributable to shareholders decreased to CNY 2,330,080,458.13 from CNY 2,351,257,846.34, a decline of about 0.90%[171]. - The company's cash and cash equivalents decreased to CNY 740,832,553.87 from CNY 954,080,724.26, a decline of about 22.36%[168]. - The total amount of raised funds is CNY 138,236.48 million, with CNY 1,611.14 million invested during the reporting period[52]. Market Position and Strategy - The company maintains the largest market share in the domestic cowhide upper leather sector, producing over 120 million square feet annually[22]. - The company has established long-term partnerships with well-known domestic brands, including Disanna and Belle, focusing on high-end market segments[23]. - The company is actively expanding its customer base while deepening cooperation with existing clients in key regions such as Wenzhou and Guangzhou[32]. - The company is focusing on expanding its market presence and enhancing product development strategies[192]. - The company has a leading advantage in technology innovation and product development, as well as scale production and cost advantages to meet high-end customer demands[76]. Environmental Responsibility - The company emphasizes the importance of environmental protection and has increased investment in environmental management and supervision systems to comply with stricter regulations[72]. - The company has implemented a comprehensive wastewater treatment system, focusing on the separation and targeted treatment of five types of wastewater, including chromium and sulfur wastewater[115]. - The company has a robust air pollution control system, including desulfurization and dust removal facilities for boiler emissions, ensuring compliance with environmental standards[127]. - The company maintained compliance with all national pollution discharge standards, with no instances of exceeding limits reported during the reporting period[139]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 10,897[150]. - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 28.04% of shares, totaling 84,744,000 shares[151]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[84]. - The company has committed to a cash dividend policy where the minimum proportion of cash dividends should reach 80% during profit distribution in the mature development stage without significant capital expenditure[87].

Financial Performance - The company's operating revenue for 2017 was ¥2,112,745,711.07, a decrease of 17.66% compared to 2016[14]. - The net profit attributable to shareholders for 2017 was ¥45,136,922.93, down 28.49% from the previous year[14]. - The net cash flow from operating activities was ¥35,733,654.83, reflecting a significant decline of 91.50% year-over-year[14]. - Basic earnings per share for 2017 were ¥0.1494, a decrease of 38.21% compared to ¥0.2418 in 2016[15]. - The total assets at the end of 2017 were ¥2,648,145,503.91, a decrease of 1.42% from the previous year[15]. - Total operating revenue for 2017 was ¥2,112,745,711.07, a decrease of 17.66% compared to ¥2,565,857,719.58 in 2016[44]. - Revenue from the cattle leather industry accounted for 99.05% of total revenue, totaling ¥2,092,754,826.32, down 17.80% from ¥2,546,065,040.60 in 2016[45]. - The gross profit margin for the cattle leather industry was 8.43%, a decrease of 0.77 percentage points compared to the previous year[47]. - The company reported a net profit of CNY 36,334,815.35 for the year 2017, with a legal surplus reserve of CNY 3,633,481.54 deducted[122]. Dividend Distribution - The company plans to distribute a cash dividend of 5.00 CNY per 10 shares to all shareholders, based on a total of 302,082,162 shares[3]. - For the 2017 fiscal year, the company plans to distribute a cash dividend of CNY 5.00 per 10 shares, totaling CNY 151,041,081[122]. - In 2016, the company distributed a cash dividend of CNY 1.5 per 10 shares, amounting to CNY 45,326,761.80, which was 71.81% of the net profit[121]. - The company did not distribute any cash dividends in 2015, retaining profits for future distribution[119]. - The total distributable profit as of December 31, 2017, was CNY 587,132,330.04 after accounting for previous distributions[122]. Operational Stability - The company has not reported any changes in its main business since its listing, indicating stability in operations[13]. - The company has not experienced any changes in its controlling shareholders, reflecting stability in ownership[13]. - The company has confirmed that all board members attended the meeting to review the annual report, ensuring governance transparency[3]. Environmental Commitment - The company emphasizes the importance of environmental protection strategies in its production processes, aiming to reduce risks to humans and the environment[7]. - The company invested ¥50,859,800 in environmental protection in 2017, achieving zero accidents in environmental protection[41]. - The company has implemented a comprehensive wastewater treatment system, including specific processes for chromium and sulfur wastewater[171][180]. - The company successfully maintained compliance with all environmental discharge standards, with no instances of exceeding the limits reported during the period[198]. - The company has established emergency response plans for environmental incidents, which have been reviewed and approved by experts[200]. Innovation and Technology - The company has been recognized as a high-tech enterprise and a national-level enterprise technology center, indicating its commitment to technological advancement[25]. - The company plans to enhance innovation and increase the proportion of mid-to-high-end products in its offerings[25]. - The company has developed automated production systems, improving manufacturing efficiency and product quality stability[31]. - The company plans to focus on independent research and development while collaborating with research institutions to innovate in leather processing technologies[102]. - The company intends to invest in smart manufacturing equipment to improve production efficiency and reduce costs[103]. Market Position and Strategy - The company maintains a production capacity of over 100 million square feet of cowhide leather annually, benefiting from strong bargaining power in raw material procurement[28]. - The company has established long-term partnerships with well-known brands such as Senda, Aokang, and military shoe manufacturers, enhancing its market presence[29]. - The company is actively expanding into international markets, gaining recognition from brands like PRADA and BALLY for its shoe and bag leather products[37]. - The company aims to enhance its market position by optimizing channel expansion in key regions such as Guangzhou, Zhejiang, and Fujian[100]. Risk Management - The company has a comprehensive risk management section in its report, detailing potential operational risks for investors[3]. - The company faces risks from fluctuations in raw material prices, particularly for cowhide, which could impact profitability[108]. - The company recognizes the competitive pressure from a fragmented domestic leather industry, which presents both challenges and opportunities for consolidation[109]. - The company faces risks from stringent environmental regulations that may increase operational costs if compliance is required[105]. Corporate Governance - The company has established a dedicated investor relations email for communication, enhancing transparency with stakeholders[11]. - The company has implemented a stable dividend distribution policy, prioritizing cash dividends over stock dividends, with a minimum cash dividend ratio of 80% during profit distribution in mature stages without significant capital expenditure[126]. - The company has made commitments to ensure that the non-public offering will protect the rights of all shareholders and will not harm the company's interests[128]. - The company will disclose reasons for not distributing cash dividends or for distributions below the stipulated ratio in its annual report[127]. Related Party Transactions - The company reported a total of 1,686 million yuan in related party transactions, with a significant portion involving a transaction with Zhangzhou Micro Water Environmental Technology Co., accounting for 33.16% of the total[147]. - The actual amount of daily related party transactions during the reporting period was 64.60 million yuan, which is within the estimated 150 million yuan for the year[150]. - There were no related party debt and credit transactions during the reporting period[153]. Financial Management - The company reported a total of 5,239.66 million CNY in unused raised funds as of December 31, 2017, which includes interest income and investment returns[87]. - The company has implemented strict cost control measures for the raised funds, ensuring effective and economical use during project construction[87]. - The company generated interest income of 799.67 million CNY from idle raised funds during the reporting period[87]. Charitable Contributions - The company made a donation of CNY 2 million to the Quanzhou Charity Association for charitable activities, and an additional CNY 150,000 to support poverty alleviation projects[167].

Financial Performance - The company's operating revenue for Q1 2018 was ¥335,922,136.10, a decrease of 19.99% compared to ¥419,873,982.30 in the same period last year[3] - The net profit attributable to shareholders was ¥9,405,513.31, down 16.71% from ¥11,292,041.78 year-on-year[3] - The basic earnings per share decreased to ¥0.0311, down 16.84% from ¥0.0374 in the same period last year[3] - The net profit attributable to shareholders for the first half of 2018 is expected to be between 31.42 million and 43.50 million CNY, representing a year-on-year increase of 30% to 80%[22] - The net profit for the first half of 2017 was 24.17 million CNY, indicating significant growth in profitability for 2018[22] - The increase in net profit is primarily attributed to higher product operating profits and increased government subsidies[22] Cash Flow - The net cash flow from operating activities improved significantly, reaching ¥47,194,747.72, an increase of 114.80% compared to a negative cash flow of ¥318,966,793.20 in the previous year[3] - Net cash flow from operating activities improved to 47,194,747.72, marking a 114.80% increase compared to the previous period, driven by reduced payments for goods and increased receipts[13] - Net cash flow from investing activities decreased to -3,727,478.09, a 60.65% improvement from the previous period, mainly due to reduced payments for fixed asset purchases[13] - Net cash flow from financing activities was 100,579,526.04, down 34.33% from the previous period, primarily due to a decrease in bank loans[14] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,729,974,736.32, reflecting a 3.09% increase from ¥2,648,145,503.91 at the end of the previous year[4] - The net assets attributable to shareholders increased slightly by 0.40%, reaching ¥2,360,192,727.45 compared to ¥2,350,816,468.49 at the end of the previous year[4] - Accounts receivable decreased by 37.48% to ¥141,651,123.83, primarily due to increased sales collections during the reporting period[10] - Prepayments increased by 31.76% to ¥15,128,352.73, attributed to an increase in customer advance payments[10] Non-Operating Income and Expenses - The company reported non-operating income of ¥962,950.20 from government subsidies, while other non-operating expenses totaled -¥2,000,000.00 due to donations[5] - Financial expenses decreased significantly to -7,672,416.09, a reduction of 559.90% compared to the previous period, mainly due to increased interest income and exchange gains[12] - Asset impairment losses increased to -3,273,660.11, reflecting a rise of 267.66% year-over-year, primarily due to higher bad debt provisions for accounts receivable[12] - Investment income reported a loss of -304,353.05, a 142.82% decline from the previous period, attributed to losses during the construction phase of the associate company[12] Dividend Policy - The company implemented a stable cash dividend policy, prioritizing cash dividends over stock dividends, with a minimum cash dividend ratio of 80% during mature stages without major capital expenditures[18] - In cases of significant capital expenditures, the minimum cash dividend ratio is set at 40%[19] - The company will distribute cash dividends only if the distributable profits are positive and the cumulative distributable profits per share meet certain thresholds[19] - The company plans to conduct annual profit distributions, primarily in cash, but may consider mid-term cash dividends based on profitability and funding needs[20] - The company commits to ensuring that no unfair benefits are provided to individuals or entities, maintaining the interests of all shareholders[20] - The board of directors will propose differentiated cash dividend policies based on industry characteristics, development stages, and operational models[19] - The company will disclose reasons for not distributing cash dividends or for distributions below specified ratios, along with the intended use of retained earnings[19] - The company aims to maintain a continuous and stable profit distribution policy, emphasizing reasonable returns for investors[18] - The company will not engage in related party transactions that could harm its interests or those of its shareholders[18] - The company will ensure compliance with regulatory requirements regarding profit distribution and shareholder rights[20]

Dividend Distribution - The company plans to distribute a cash dividend of 5.00 CNY per 10 shares to all shareholders, based on a total of 302,082,162 shares[3]. - The company proposed a cash dividend of CNY 5.00 per 10 shares, totaling CNY 151,041,081, which accounts for 100% of the profit distribution[120]. - The company retained a remaining undistributed profit of CNY 436,091,249.04 for future distribution[121]. - The company maintains a stable cash dividend policy, with a minimum cash dividend ratio of 80% for mature stages without significant capital expenditure plans[125]. - The company aims to distribute dividends at least once a year, primarily in cash, but may consider mid-term cash dividends based on profitability and funding needs[126]. Financial Performance - The company's operating revenue for 2017 was ¥2,112,745,711.07, a decrease of 17.66% compared to 2016[14]. - The net profit attributable to shareholders for 2017 was ¥45,136,922.93, down 28.49% from the previous year[14]. - Basic earnings per share for 2017 were ¥0.1494, a decrease of 38.21% compared to ¥0.2418 in 2016[15]. - The total assets at the end of 2017 were ¥2,648,145,503.91, a decrease of 1.42% from the previous year[15]. - The company achieved a net profit of CNY 151,041,081, representing a significant increase of 334.63% compared to the previous year[120]. Environmental Commitment - The company emphasizes the importance of environmental protection in its production processes, aiming to reduce risks to humans and the environment[7]. - The company has a commitment to clean production practices, which are applied throughout its production processes[7]. - The company invested ¥50,859,800 in environmental protection in 2017, achieving zero environmental accidents with all pollutants meeting discharge standards[40]. - The company maintains a focus on green development, implementing advanced wastewater treatment and clean production technologies[40]. - The company has implemented a wastewater treatment plan that includes separation and targeted treatment of different types of wastewater[169]. Innovation and Technology - The company was recognized as a high-tech enterprise and a technology demonstration enterprise in the leather and footwear industry[25]. - As of the end of 2017, the company held 24 invention patents, 17 utility model patents, and 9 design patents, showcasing its commitment to innovation[30]. - The company has developed automated production systems, improving manufacturing efficiency and product quality stability[31]. - The company aims to enhance competitiveness and profitability by adapting to market demand changes and focusing on new product development and technology innovation[97]. - The company plans to enhance production efficiency through the introduction of advanced automated and intelligent equipment, aiming to reduce labor and consumption while improving quality[102]. Market and Sales - The company maintained its leading market share in the cowhide upper leather market in China[25]. - The revenue from the cowhide leather industry was ¥2,092,754,826.32, accounting for 99.05% of total revenue, with a year-on-year decrease of 17.80%[44]. - The company is actively expanding into international markets, gaining recognition from brands like PRADA and BALLY for its leather products[36]. - The company plans to optimize market channels by focusing on key sales regions, including Guangzhou, Zhejiang, and Fujian, to strengthen partnerships with leading footwear and bag manufacturers[99]. - The company is committed to increasing the sales proportion of bag leather and developing furniture leather clients to capture market opportunities[100]. Risks and Challenges - The company faces risks from increasingly stringent environmental regulations, which may lead to higher operational costs if compliance requires additional investments in environmental facilities[104]. - The company is exposed to risks related to product innovation and technological advancement, as failure to keep pace with market demands could result in loss of competitive advantage[106]. - Fluctuations in the price of raw materials, particularly cowhide, significantly impact the company's financial performance, necessitating measures to mitigate these risks[107]. - Currency exchange rate fluctuations pose a risk to the company's profitability, especially as it imports raw materials and conducts transactions in foreign currencies[109]. - Changes in consumer fashion trends may reduce the demand for natural leather in footwear, prompting the company to explore new markets for bags and furniture leather[111]. Shareholder Information - The total number of shares held by the top 10 shareholders is 84,744,000, accounting for 28.04% of the total shares[191]. - The largest shareholder, Shihezi Wanxing Equity Investment Partnership, holds 84,744,000 shares, which are pledged for 59,964,190 shares[191]. - The company has a total of 62,595,662 shares, with 61,747,712 shares under lock-up conditions at the end of the reporting period[185]. - The company’s stock structure includes both public and private placements, with specific lock-up periods for different shareholders[186]. - The controlling shareholder of the company is Wu Huachun, holding 52.85% of the shares through Shihezi Wanxing Equity Investment Partnership[197]. Corporate Governance - The company’s board of directors has pledged to adhere to regulations regarding related party transactions post-IPO[124]. - The company’s actual control and shareholders have fulfilled their commitments during the reporting period[122]. - The company has not reported any significant changes in the feasibility of its projects[90]. - The company did not experience any significant accounting errors that required retrospective restatement during the reporting period[135]. - The company’s financial report did not include any non-standard audit reports[131]. Investment and Capital Management - The company raised a total of ¥67,239.37 million in its initial public offering in May 2012, with a net amount of ¥672,393,664.05 after expenses[79]. - The company reported a total investment of 28,098 million CNY in industrial automation technology transformation projects, with a completion rate of 3.26% as of 2018[82]. - The company has not reported any instances of using idle raised funds for non-project purposes as of December 31, 2017[85]. - The company returned CNY 360 million to the fundraising account, which was temporarily used for working capital[128]. - The company has implemented strict cost control measures during project construction to minimize expenses while ensuring quality and progress[86]. Community Engagement - The company made a donation of CNY 2 million to the Quanzhou Charity Association for charitable activities[165]. - An additional CNY 150,000 was allocated through the Xingye Leather Charity Fund to support poverty alleviation projects[165]. Compliance and Legal Matters - There were no significant lawsuits or arbitration matters during the reporting period[140]. - The company did not experience any bankruptcy reorganization during the reporting period[139]. - There were no violations regarding external guarantees during the reporting period[159]. - The company did not engage in any entrusted financial management during the reporting period[160].

Financial Performance - Operating revenue for the reporting period was ¥470,699,330.12, a decrease of 32.42% year-on-year[3] - Net profit attributable to shareholders was ¥10,404,794.90, down 54.83% compared to the same period last year[3] - Basic earnings per share decreased by 60.86% to ¥0.0344[4] - The company reported a 34.36% increase in income tax expenses to ¥8,018,314.90, driven by an increase in total profit[14] - The company experienced a 99.69% decline in non-operating income to ¥17,066.68, primarily due to changes in accounting policies[14] - The estimated net profit attributable to shareholders for 2017 is projected to range from 44.18 million to 75.74 million RMB, reflecting a decrease of 30% to an increase of 20% compared to the previous year[26] - The net profit for 2016 attributable to shareholders was 63.12 million RMB[26] - The decrease in profit is attributed to a decline in sales leading to reduced gross profit[26] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,816,294,088.34, an increase of 4.84% compared to the previous year[3] - The company's net assets attributable to shareholders decreased slightly by 0.46% to ¥2,340,468,891.80[3] - Accounts receivable decreased by 30.46% to ¥170,736,632.04 due to increased sales collections during the reporting period[11] - Inventory increased by 52.74% to ¥954,328,525.50 primarily due to increased procurement of leather materials[11] - Other current assets surged by 711.72% to ¥60,435,820.97, mainly due to an increase in deductible input tax at the end of the reporting period[11] - Short-term borrowings increased to ¥150,000,000.00, reflecting new short-term loans taken during the reporting period[11] - Prepayments decreased by 38.47% to ¥43,466,005.14, primarily due to reduced advance payments for imported leather materials[11] - Other receivables decreased by 37.83% to ¥5,881,957.48, mainly due to an increase in the recovery of deposits during the reporting period[11] Cash Flow - The net cash flow from operating activities was ¥51,613,440.40, a significant increase of 332.44% compared to the previous year[3] - Operating cash flow net amount decreased by 329.67% to -¥246,576,550.09, mainly due to reduced sales receipts and increased payments for leather procurement[17] - Financial expenses improved by 148.53% to -¥7,895,483.03, attributed to reduced interest expenses and increased interest income[14] Shareholder Information - The top shareholder, Shihezi Wanxing Equity Investment Partnership, holds 28.04% of the shares, amounting to 84,744,000 shares[7] - The total number of ordinary shareholders at the end of the reporting period was 11,989[7] Dividend Policy - The company implemented a differentiated cash dividend policy, with a minimum cash dividend ratio of 80% for mature stages without major capital expenditures[22] - The company reported that the cumulative distributable profit for the year must be positive, with a minimum per share distributable profit of 0.1 yuan[22] - The company committed to a stable and continuous dividend distribution policy, prioritizing cash dividends over stock dividends when conditions allow[21] - The company will not engage in any competitive business with its subsidiaries, ensuring no conflicts of interest arise from related transactions[21] - The company’s shareholders have pledged to avoid any competitive products or businesses that may conflict with the company’s operations[20] - The company’s profit distribution policy aims to balance reasonable investor returns with sustainable development[21] - The company will deduct any cash dividends allocated to shareholders who have violated the use of company funds[22] - The company’s board will consider industry characteristics and development stages when proposing cash dividend policies[22] - The company will ensure that any major investment plans do not exceed 50% of the latest audited net assets within the next twelve months[22] - The company’s commitment to avoid related transactions that could lead to unfair advantages for shareholders[21] - The company plans to maintain a cash dividend distribution of at least 30% of the distributable profit when conditions are met[24] - The company will consider stock dividends if the operating conditions are favorable and the stock price is deemed mismatched with the capital scale[24] Compliance and Governance - The company has not engaged in any non-compliant external guarantees during the reporting period[28] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[29] - The company has committed to not providing financial assistance or loans to incentive plan participants[24] - The company has not conducted any research, communication, or interview activities during the reporting period[30] - The company has made commitments to ensure the fulfillment of its non-public offering return measures[24]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥913,826,873.22, representing a decrease of 10.98% compared to ¥1,026,509,401.12 in the same period last year[15]. - Net profit attributable to shareholders increased by 151.61% to ¥24,169,143.57, up from ¥9,605,890.56 in the previous year[15]. - The net profit after deducting non-recurring gains and losses rose by 162.51% to ¥19,635,173.87, compared to ¥7,479,742.54 in the same period last year[15]. - The basic earnings per share increased by 101.51% to ¥0.0800, up from ¥0.0397 in the previous year[15]. - The total assets at the end of the reporting period were ¥2,812,141,543.45, an increase of 4.69% from ¥2,686,161,891.25 at the end of the previous year[15]. - The net assets attributable to shareholders decreased by 0.90% to ¥2,330,080,458.13, down from ¥2,351,257,846.34 at the end of the previous year[15]. - The net cash flow from operating activities was negative at -¥298,189,990.49, a decline of 330.14% compared to ¥129,566,828.61 in the same period last year[15]. - The company reported a 343.45% increase in income tax expenses, amounting to ¥5,311,948.03, due to an increase in total profit[38]. - The company achieved a total profit of CNY 29,481,091.60, which is an increase of 172.00% from CNY 10,803,751.36 in the previous year[152]. - The company reported a net profit of 5,939 thousand, down by 5.93% from the previous period[170]. Cash Flow and Investments - The net cash flow from operating activities was -¥298,189,990.49, a significant decrease of 330.14% compared to ¥129,566,828.61 in the previous year, primarily due to increased payments for raw materials[38]. - Cash inflow from operating activities totaled CNY 1,015,845,699.05, compared to CNY 1,125,401,731.54 in the previous period, indicating a decrease of 9.76%[158]. - Cash outflow from operating activities increased to CNY 1,314,035,689.54 from CNY 995,834,902.93, an increase of 32.00%[158]. - The company reported an investment loss of CNY 673,427.82, a significant decline from the investment income of CNY 888,316.30 in the previous year[151]. - The net cash flow from investing activities was -8,241,331.66 CNY, compared to -21,828,625.78 CNY in the previous period[163]. - The company received 150,000,000.00 CNY in borrowings during the financing activities, a decrease from 196,723,248.24 CNY in the previous period[163]. Market Position and Strategy - The company maintains the largest market share in the domestic cowhide upper leather sector, producing over 120 million square feet annually[22]. - The company has established long-term partnerships with well-known domestic brands, including Disanna and Belle, focusing on mid-to-high-end market segments[23]. - The company is actively expanding its customer base while deepening cooperation with existing clients in key regions such as Wenzhou and Guangzhou[32]. - The company is focused on expanding its market presence and enhancing production capabilities through strategic investments[57]. - The company plans to invest 13,487.43 million CNY in the expansion project for processing 150,000 wet blue hides, which accounts for 20.06% of the net raised funds[57]. Research and Development - The company holds 18 invention patents, 16 utility model patents, and 4 design patents, emphasizing its commitment to technological innovation[25]. - The company is committed to continuous research and development, establishing a technology center to collaborate with research institutions for innovative product development[74]. - The company aims to enhance its research and development efforts to innovate new technologies in the leather industry[170]. Environmental Compliance - The company emphasizes the importance of environmental compliance and has increased investments in environmental protection facilities to reduce pollution and improve wastewater recycling efficiency[72]. - The total COD emissions from the company's facilities were 39.2 tons per year, with a concentration of 300 mg/l, indicating compliance with environmental standards[114]. - The company has implemented a comprehensive wastewater treatment system, ensuring the separation and targeted treatment of different types of wastewater[114]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[84]. - The company has a commitment to avoid competition with its subsidiaries and will cease any conflicting operations if necessary[86]. - The company has committed to a cash dividend policy, with a minimum of 80% of profits distributed as cash dividends during mature stages without significant capital expenditures[87]. - The company will distribute dividends primarily in cash, with a minimum of 30% of the distributable profits allocated for cash dividends[88]. Corporate Governance and Compliance - The company has not experienced any bankruptcy reorganization during the reporting period[93]. - There were no significant litigation or arbitration matters during the reporting period[94]. - The company has not faced any media scrutiny during the reporting period[95]. - The company has committed to not providing financial assistance to incentive plan participants[90]. - The financial statements are prepared based on the accounting standards issued by the Ministry of Finance and comply with the requirements of the China Securities Regulatory Commission[185].

Financial Performance - The company's operating revenue for Q1 2017 was ¥419,873,982.30, a decrease of 1.39% compared to the same period last year[3]. - Net profit attributable to shareholders increased significantly to ¥11,292,041.78, representing a growth of 1,362.18% year-over-year[3]. - The net profit after deducting non-recurring gains and losses was ¥10,148,056.83, up 1,659.20% from the previous year[3]. - The basic earnings per share rose to ¥0.0374, an increase of 1,068.75% compared to the same period last year[3]. - The net profit attributable to shareholders for the first half of 2017 is expected to be between 1,921.18 million and 2,881.77 million CNY, representing a growth of 100% to 200% compared to 960.59 million CNY in the same period of 2016[24]. - The increase in net profit is primarily due to growth in gross profit and a reduction in financial expenses[24]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,787,116,608.80, reflecting a growth of 3.76% from the end of the previous year[4]. - The net assets attributable to shareholders were ¥2,362,545,022.52, a slight increase of 0.48% compared to the previous year[4]. - Other current assets increased by 356.94% to ¥34,020,989.95, primarily due to pending input tax certification[11]. - Inventory increased by 36.31% to ¥851,718,976.50 as a result of higher leather material purchases[11]. - Prepayments increased by 31.18% to ¥92,664,256.01 due to advance payments for imported leather materials[11]. - Other receivables rose by 39.35% to ¥13,182,652.21 primarily due to customs tax payments pending receipt[11]. - Construction in progress rose by 50.22% to ¥7,330,541.69 due to increased investments in projects[11]. Cash Flow - The net cash flow from operating activities was negative at -¥318,966,793.20, a decline of 558.11% year-over-year[3]. - Cash flow from operating activities showed a net outflow of ¥318,966,793.20, a decrease of 558.11% attributed to increased payments for leather materials[15]. - Financing activities generated a net inflow of ¥153,167,609.01, a 207.62% increase due to higher loan amounts[15]. Expenses - Tax expenses surged by 1399.73% to ¥2,407,255.18, driven by an increase in total profit[14]. - Sales expenses rose by 66.41% to ¥2,553,408.77, mainly due to increased salaries for sales personnel[13]. - Financial expenses decreased by 122.76% to -¥1,162,663.91, resulting from reduced interest expenses and increased interest income[14]. Shareholder Policies - The company implements a differentiated cash dividend policy, with a minimum cash dividend ratio of 80% for mature stages without major capital expenditures[20]. - In the case of significant capital expenditures, the minimum cash dividend ratio is set at 40% for mature stages and 20% for growth stages[20]. - The company requires that the distributable profit for the year or half-year must be positive and that the cumulative distributable profit per share should not be less than 0.1 yuan[20]. - The company plans to distribute profits at least once a year, primarily through cash dividends, but may consider mid-term cash dividends based on profitability and funding needs[21]. - The minimum cash distribution amount or ratio should not be less than 30% of the distributable profit for the year[21]. - The company will disclose reasons for not distributing cash dividends or for distributions below the stipulated ratio in the board resolution announcement and annual report[21]. - The company commits to avoiding related transactions and ensuring fair dealings to protect shareholder interests[19]. - The board of directors will propose cash dividend policies considering industry characteristics, development stages, and operational models[20]. - The company emphasizes maintaining a continuous and stable profit distribution policy to ensure sustainable development[19]. - The company will issue stock dividends when operational conditions are good and the board believes it benefits all shareholders[21]. Compliance and Commitments - The company has committed to returning 360 million CNY of idle raised funds to the designated account before the expiration of the temporary supplementary working capital period[23]. - There are no instances of non-compliance with external guarantees during the reporting period[26]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[27]. - The company has not conducted any research, communication, or interview activities during the reporting period[28]. - The company has made commitments to not engage in risk investments or provide financial assistance to entities outside of its controlling subsidiaries[23]. - The company’s board of directors has confirmed that all commitments made are being fulfilled as per the stipulated terms[23]. - The company has no plans for share reduction or any related activities by its major shareholders during the reporting period[22]. - The company’s financial performance is not classified as a turnaround situation, indicating stable operational results[24].