Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.50 per 10 shares to all shareholders, based on a total of 343,032,004 shares[4] - The company announced a cash dividend of 0.50 yuan per 10 shares, totaling 17,151,600.20 yuan for the year, which represents 38.01% of the net profit attributable to ordinary shareholders[192] - The total distributable profit for the year was 45,122,291.52 yuan, with the cash dividend amounting to 100% of the profit distribution[192] - Over the past three years, the company has not conducted any ordinary share dividend distributions or capital reserve transfers[192] - The cash dividend for 2017 was also 17,151,600.20 yuan, which accounted for 17.13% of the net profit attributable to ordinary shareholders[193] - In 2016, the cash dividend was 34,618,720.00 yuan, representing 26.52% of the net profit attributable to ordinary shareholders[193] - The company is in a growth phase and has significant capital expenditure plans, with a minimum cash dividend ratio of 20% required during profit distribution[192] - There were no share buybacks or other cash distributions during the reporting period[192] Financial Performance - The company's operating revenue for 2018 was ¥1,023,786,713.18, a decrease of 28.32% compared to ¥1,428,214,706.47 in 2017[15] - The net profit attributable to shareholders was ¥45,122,291.52, down 54.93% from ¥100,105,551.61 in the previous year[15] - The basic earnings per share for 2018 were ¥0.13, down 55.17% from ¥0.29 in 2017[15] - The weighted average return on equity was 2.38%, a decline of 3.11% from 5.49% in the previous year[15] - The company's total operating revenue for 2018 was approximately CNY 1,023.79 million, a decrease of 28.32% compared to CNY 1,428.21 million in 2017[59] - The revenue from the new energy engineering business dropped by 48.71%, from CNY 843.71 million in 2017 to CNY 432.73 million in 2018[59] - The company's domestic revenue was CNY 1,023,786,713.18, which represents a year-on-year decrease of 28.32%[64] - The company achieved a net profit of CNY 150 million, which is a 10% increase compared to the previous year[87] Cash Flow and Investments - The net cash flow from operating activities increased by 371.64% to ¥618,070,979.42, compared to a negative cash flow of ¥227,531,992.16 in 2017[15] - Cash and cash equivalents increased by 79.06% compared to the previous period, attributed to higher returns from renewable energy projects[37] - The company reported a significant increase in cash inflow due to the recovery of accounts receivable and increased settlements through acceptance bills[99] - The company has a cash dividend policy that requires a minimum of 30% of the average distributable profit over the last three years to be distributed in cash[185] - The company will not distribute cash profits in years when it does not achieve profitability[186] Strategic Focus and Operations - The company is focused on the development of power electronic technology, which is crucial for its product offerings in the electrical sector[9] - The company is transitioning from product provision to offering complete solutions, including design, construction, and financial support[27] - The company aims to address the significant biomass resource waste in Heilongjiang, which has a potential annual collection of 90 million tons of agricultural and forestry biomass[34] - The company is actively pursuing innovations in DC power systems, including centralized monitoring devices and automatic switching systems, to enhance reliability and efficiency[85] - The company is committed to enhancing management and service levels to improve risk management capabilities as it expands[180] Renewable Energy Initiatives - The company is involved in investment and construction projects for new energy power stations, indicating a strategic focus on renewable energy[9] - The renewable energy power station business has become a significant revenue source, with a focus on self-owned power stations for stable long-term income[28] - The company has a total of 14 renewable energy projects in operation, with a combined capacity of 1,000 MW, including 6 wind power projects and 8 solar power projects[30][31] - The company plans to expand its environmental comprehensive energy business, leveraging its experience in Heilongjiang Province to develop similar models in other regions[33] - The company aims to initiate over 500MW of biomass cogeneration projects and acquire or manage urban heating areas exceeding 10 million square meters[173] Research and Development - Research and development expenses for the year totaled approximately 36.80 million yuan, representing 3.59% of the operating revenue[77] - The company completed seven R&D projects in the smart grid sector, including the development of a battery internal resistance online balancing device and a new integrated power supply system[77] - The company is investing CNY 200 million in R&D for new energy technologies, aiming to launch two new products by the end of 2019[81] - The company has accumulated a total of 289 trademarks and patents, being recognized as an advanced unit for technology achievement transformation and industrialization in Harbin[77] Market Position and Competition - The company maintains a strong position as a qualified supplier for the State Grid, with extensive applications in major infrastructure projects[25] - The company is actively aligning its strategies with the national "Belt and Road" initiative to strengthen its international presence in the energy sector[52] - The company is facing risks of overcapacity due to rapid production capacity increases at its subsidiary, Jiuzhou Technology, following the completion of the Jiuzhou Technology Industrial Park[176] - The company anticipates a competitive market for its products, which may lead to overcapacity in its manufacturing sector[175] Acquisitions and Partnerships - The company acquired 70% of Sichuan Xuda Power Engineering Design Co., enhancing its core competitiveness through this strategic move[50] - The company has established a partnership with the State Power Investment Corporation to create a venture capital fund aimed at investing in renewable energy projects[124] - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[80] Risk Management - The company has acknowledged the need for strategic adjustments in response to competitive pressures in the market[117] - The company emphasizes careful project selection to mitigate risks associated with renewable energy project delays and management challenges[180] - The company has partially recognized impairment losses on goodwill from its acquisition of Haocheng Electric, which has a book value of 12.665 million yuan[178]

Financial Performance - Net profit attributable to shareholders was ¥4,610,089.26, a decrease of 79.35% year-on-year[8]. - Operating revenue for the reporting period was ¥153,839,881.81, down 41.72% compared to the same period last year[8]. - Basic earnings per share were ¥0.01, reflecting an 85.71% decline year-on-year[8]. - Net profit decreased by 44.49% to ¥54,910,271.77, attributed to reduced revenue from BT construction projects and increased financing costs compared to the previous year[21]. - Net profit for Q3 2018 was ¥4,801,308.98, a decline of 78.5% from ¥22,327,434.00 in Q3 2017[38]. - The net profit for the current period is CNY -5,493,431.84, compared to a net profit of CNY 17,278,871.26 in the previous period, indicating a significant decline[43]. - The total profit for the current period is CNY -7,172,645.11, compared to CNY 20,380,360.68 in the previous period[43]. - The net profit for the third quarter was CNY 15,746,670.69, a decrease from CNY 70,036,732.16 in the same period last year, representing a decline of approximately 77.5%[50]. - The company reported a total profit of CNY 18,231,020.62 for the quarter, down from CNY 82,689,021.08 year-over-year, a decrease of approximately 78.0%[50]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥3,837,702,965.86, an increase of 1.45% compared to the previous year[8]. - The company's current assets decreased to CNY 1,938,415,963.88 from CNY 2,165,098,070.26, reflecting a decline of approximately 10.5%[29]. - Total liabilities decreased slightly from CNY 1,917,363,277.68 to CNY 1,908,925,565.80, a decrease of about 0.2%[31]. - Total assets as of the end of Q3 2018 were ¥2,757,935,861.49, slightly down from ¥2,772,132,193.28 at the end of Q2 2018[35]. - Total liabilities decreased to ¥1,087,847,521.06 from ¥1,116,146,363.34 in the previous quarter[35]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥255,646,111.47, a significant decrease of 297.11%[8]. - Operating cash flow net amount increased by 297.11% to ¥255,646,111.47 due to the recovery of previous years' receivables and increased settlements using acceptance bills[21]. - Cash flow from operating activities generated a net amount of CNY 255,646,111.47, compared to a negative cash flow of CNY -129,696,258.06 in the previous year, showing a significant turnaround[51]. - Cash flow from investment activities resulted in a net outflow of CNY -192,298,471.02, contrasting with a net inflow of CNY 40,038,839.72 in the previous year[53]. - Cash flow from financing activities showed a net outflow of CNY -109,504,320.46, compared to a net inflow of CNY 61,876,360.89 in the same period last year[53]. Shareholder Information - The total number of shareholders at the end of the reporting period was 22,529[12]. - The largest shareholder, Li Yin, held 20.78% of the shares, amounting to 71,273,702 shares[12]. - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[13]. Expenses and Costs - Total operating costs for Q3 2018 were ¥151,877,722.67, down 37.0% from ¥241,019,661.43 year-over-year[36]. - Financial expenses surged by 10,523.22% to ¥51,942,519.86 due to the inclusion of Wanlong and Jiaxing in the consolidation scope and increased financing scale[21]. - Research and development expenses for Q3 2018 were ¥6,496,335.89, a decrease from ¥7,515,364.42 in Q3 2017[36]. - The financial expenses for the current period amount to CNY 51,942,519.86, compared to a financial income of CNY -498,334.79 in the previous period[45]. - Research and development expenses for the current period are CNY 19,943,727.53, a decrease from CNY 25,487,516.05 in the previous period[45]. Other Income and Gains - The company reported non-recurring gains and losses totaling ¥10,973,815.02 for the year-to-date[9]. - Investment income rose by 390.81% to ¥221,080.82 primarily due to increased financial management income compared to the previous year[21]. - Other income increased by 2,056.69% to ¥2,669,470.92 mainly due to significant amounts received from litigation interest[21].

Financial Performance - Total revenue for the first half of 2018 was CNY 557,460,967.43, a decrease of 23.09% compared to CNY 724,810,589.01 in the same period last year[26]. - Net profit attributable to shareholders was CNY 50,108,962.79, down 34.58% from CNY 76,596,899.83 year-on-year[26]. - Net profit after deducting non-recurring gains and losses was CNY 41,920,454.04, a decline of 41.40% compared to CNY 71,530,686.69 in the previous year[26]. - Basic earnings per share decreased to CNY 0.15, down 34.78% from CNY 0.23 in the previous year[26]. - The company achieved operating revenue of CNY 55,746,000, a decrease of 23.09% year-on-year[47]. - Operating costs were CNY 40,824,000, down 26.74% compared to the previous year[47]. - The company reported a significant decrease in asset impairment losses by 90.35% to CNY 1,476,189.45, attributed to a reduction in accounts receivable[63]. - The total profit for the current period was CNY 55,928,315.51, down from CNY 91,975,639.63, representing a decline of 39.2%[198]. Asset and Liability Management - The company's asset-liability ratio has increased due to rapid expansion in renewable energy station investments, which are capital-intensive and may lead to liquidity risks if expected returns are not met[7]. - Total assets at the end of the reporting period were CNY 3,925,677,132.95, an increase of 3.77% from CNY 3,783,016,420.25 at the end of the previous year[26]. - Total liabilities rose to CNY 2,011,960,484.80, up from CNY 1,917,363,277.68, indicating an increase of 4.9%[189]. - The company's asset-liability ratio stood at 51.25% as of June 30, 2018[47]. - The company reported a decrease in cash and cash equivalents from CNY 136,204,487.49 at the beginning of the period to CNY 100,920,855.41 at the end of the period, representing a decline of approximately 26%[187]. Investment and Acquisition Strategy - The company is actively pursuing investment and acquisition strategies, focusing on targets that are closely related to its main business to enhance profitability and market scale[12]. - The company reported a goodwill value of 126.65 million yuan from the acquisition of Haoceng Electric, which is performing well without impairment losses as of the reporting period[12]. - The company confirmed a revenue of 307 million for renewable energy business and 58 million for operating power plants during the reporting period[33]. - The acquisition of 100% equity in Heilongjiang Xinbei Power Investment Co., Ltd. was completed, which holds project development rights for wind power stations with an expected annual revenue of CNY 16,000,000[51]. - The company acquired four heating companies for a total price of CNY 2,225,000, aiming to enhance clean energy heating operations[51]. Operational Challenges and Risk Management - The company faces risks of overcapacity in its power equipment manufacturing business due to increased competition and slowing customer demand, necessitating product upgrades and cost control measures[5]. - The company is enhancing its project management capabilities to mitigate risks associated with renewable energy station projects, which have significant investment amounts and short cycles[10]. - The company emphasizes careful selection of engineering projects to mitigate risks associated with project delays and management challenges as it expands[90]. - There is a risk that renewable energy projects may not connect to the grid on time, which could extend the investment recovery period; however, the likelihood of this happening is low due to strict regulatory approvals[89]. Revenue and Cost Management - The revenue from the power equipment manufacturing business was 161 million during the reporting period[34]. - The company generated a net cash flow from operating activities of CNY 23,704,000, an increase of CNY 42,666,000 compared to the previous year[47]. - The company recorded a substantial increase in operating income from power generation, which reached CNY 57,625,743.75, with a gross margin of 69.11%[59]. - The company reported a decrease in accounts receivable to CNY 664,664,489.12 from CNY 763,568,844.11, a decline of 12.9%[192]. Strategic Focus and Future Plans - The company plans to optimize its capital structure and explore various financing channels, including issuing convertible bonds and green bonds, to support its development needs[7]. - Future strategies include expanding market presence and exploring potential mergers and acquisitions to drive growth[20]. - The company aims to enhance its core competitiveness through technological innovation and has established long-term partnerships with several universities and research institutions[39]. - The company plans to develop a comprehensive energy utilization project with a total capacity of 400 MW from various renewable sources[49]. Shareholder and Equity Management - The company will not distribute cash dividends, issue bonus shares, or increase capital from reserves for the reporting period[13]. - The management shareholders agreed to a lock-up period of 12 months for 9,097,035 shares and 48 months for 16,295,812 shares following the issuance of shares[98]. - The total number of shares subject to lock-up is significant, indicating a structured approach to shareholder management and market stability[98]. - The company completed the repurchase and cancellation of 3,155,200 shares, with the capital reduction process finalized on June 25, 2018[162]. Legal and Compliance Matters - The company is involved in two significant lawsuits, with amounts of RMB 2,377.38 million and RMB 2,776.83 million, respectively[103]. - The company has not experienced any bankruptcy restructuring during the reporting period[102]. - There are no significant media controversies reported during this period[104]. - The company has not faced any penalties or corrective actions during the reporting period[105].

Financial Performance - Total revenue for Q1 2018 was ¥196,547,150.22, a decrease of 17.62% compared to ¥238,576,332.24 in the same period last year[7]. - Net profit attributable to shareholders was ¥23,955,393.74, an increase of 5.46% from ¥22,714,821.65 year-on-year[7]. - Total operating revenue for the first quarter was CNY 196,547,150.22, a decrease of 17.6% compared to CNY 238,576,332.24 in the previous period[77]. - Net profit for the first quarter was CNY 23,955,393.74, an increase of 5.5% compared to CNY 22,714,821.65 in the previous period[78]. - Earnings per share remained stable at CNY 0.07 for both the current and previous periods[79]. Cash Flow - Net cash flow from operating activities improved significantly to -¥1,165,955.55, a 95.68% increase compared to -¥27,016,497.25 in the previous year[7]. - Cash flow from operating activities increased significantly to CNY 267,732,635.85, up 42.7% from CNY 187,447,106.22 in the previous period[84]. - Total cash inflow from operating activities was 289,744,483.88 CNY, compared to 212,206,308.89 CNY in the previous year, reflecting a year-over-year increase of approximately 36.5%[85]. - The net cash flow from investing activities was -2,740,768.44 CNY, compared to -27,276,656.09 CNY in the same quarter last year, showing significant improvement[86]. - The net cash flow from financing activities was 20,011,279.16 CNY, a turnaround from -34,081,985.41 CNY in the previous year[86]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,738,498,221.58, down 1.18% from ¥3,783,016,420.25 at the end of the previous year[7]. - Total liabilities decreased from CNY 1,917,363,277.68 to CNY 1,833,783,542.28, a decrease of approximately 4.4%[70]. - Total equity attributable to shareholders increased from CNY 1,865,251,845.56 to CNY 1,904,714,679.30, reflecting an increase of about 2.1%[71]. Market and Strategic Focus - The company is facing risks from market competition and potential overcapacity in the manufacturing sector, prompting a focus on product upgrades and cost control[9]. - The company is expanding rapidly in the renewable energy and energy storage sectors, which are capital-intensive and may lead to increased financial pressure if profit expectations are not met[10]. - The company plans to adopt a prudent investment strategy in mergers and acquisitions to mitigate risks associated with integration and performance expectations[11]. - The company plans to expand its business into comprehensive energy management, integrating renewable energy investments and clean heating solutions[32]. - The company’s strategy focuses on technological leadership and customer-centric development, aiming for global expansion in the energy sector[32]. Shareholding and Equity Structure - The company reported a significant increase in shareholding by major shareholders, with Li Yin holding 20.24% and Zhao Xiaohong holding 15.65%[18]. - The total number of restricted shares at the end of the period was 113,269,734, with 2,386,000 shares released during the period[22]. - The company’s major shareholders include state-owned and non-state-owned entities, reflecting a diverse ownership structure[18]. - The company’s equity structure includes a mix of natural persons and corporate entities, indicating a broad base of support[18]. Project Development and Investments - The company’s construction in progress increased significantly by 1660.14% to CNY 118,867,194.64, primarily due to investments in new projects[26]. - The company signed two new photovoltaic ground power station projects with an estimated repurchase price of RMB 260 million, confirming revenue of RMB 79.03 million and a gross profit of RMB 20.54 million, with a completion ratio of 35.06%[34]. - The company completed the acquisition of 100% equity in Heilongjiang Xinbei Power Investment Co., Ltd., which is expected to increase profits after project completion[42]. - The company signed a framework agreement with the Qiqihar Municipal Government for a comprehensive energy service project, focusing on renewable energy sources for clean electricity and heating supply[44]. Financial Management and Performance Commitments - The company has committed to a net profit of at least RMB 37.5 million, RMB 45 million, and RMB 51 million for the years 2015, 2016, and 2017 respectively, with a total of at least RMB 133.5 million over the assessment period[55]. - The management team is responsible for compensating any shortfall in profit targets through share or cash compensation, ensuring accountability[55]. - The company has established a performance-based release schedule for remaining restricted shares, contingent on meeting specified profit targets[55].

Financial Performance - The company's operating revenue for 2017 was ¥1,428,214,706.47, an increase of 8.24% compared to ¥1,319,491,445.24 in 2016[25]. - The net profit attributable to shareholders for 2017 was ¥100,105,551.61, a decrease of 23.30% from ¥130,514,415.82 in 2016[25]. - The net cash flow from operating activities was -¥228,031,992.16, a decline of 299.04% compared to ¥114,563,925.59 in 2016[25]. - The total assets at the end of 2017 were ¥3,783,016,420.25, representing a 33.56% increase from ¥2,832,535,366.46 at the end of 2016[25]. - The basic earnings per share for 2017 was ¥0.29, down 25.64% from ¥0.39 in 2016[25]. - The weighted average return on equity for 2017 was 5.49%, a decrease from 7.62% in 2016[25]. - The company reported a total of ¥7,894,501.97 in non-recurring gains and losses for 2017, compared to ¥10,888,159.95 in 2016[31]. - The company achieved operating revenue of CNY 1,428.21 million in 2017, an increase of 8.24% compared to the previous year[47]. - The net profit attributable to shareholders decreased by 23.30% to CNY 100.11 million in 2017[47]. - The company reported a negative cash flow from operating activities of CNY 228.03 million, a decrease of CNY 342.60 million year-on-year[47]. Investment and Acquisitions - The company is actively pursuing strategic investments and acquisitions, focusing on related fields to enhance profitability and market scale[8]. - The company has a goodwill of 126.65 million yuan from the acquisition of Haoceng Electric, which may face impairment risks if performance does not meet expectations[9]. - The company successfully acquired two wind power plants, enhancing its position in the downstream wind power operation sector[50]. - The company acquired a 99.89% stake in Qitaihe Wanlong Wind Power Co., Ltd. for approximately 143.34 million CNY[65]. - The company acquired a 99.79% stake in Qitaihe Jiaxing Wind Power Co., Ltd. for a cost of CNY 115,684,266.86 on December 31, 2017[164]. - The company established a new subsidiary, Mohe Dawa Daur Autonomous Banner Jiuzhou Solar Power Co., Ltd., with a registered capital of CNY 2 million in March 2017, holding 100% equity[164]. - The company established another new subsidiary, Mohe Dawa Daur Autonomous Banner Jiuzhou Nare Photovoltaic Poverty Alleviation Co., Ltd., with a registered capital of CNY 4.362 million in October 2017, holding 100% equity[164]. Cash Flow and Financial Management - Cash and cash equivalents decreased by 68.92%, attributed to increased contract amounts and procurement payments[37]. - The net cash flow from operating activities turned negative at -¥228,031,992.16 in 2017, a significant decline from a positive ¥114,563,925.59 in 2016[90]. - The company reported a net cash outflow from investment activities of -¥216,464,835.58 in 2017, worsening from -¥100,420,678.79 in 2016[90]. - Financing activities generated a net cash inflow of ¥392,127,012.25 in 2017, a substantial increase of 653.09% compared to ¥52,069,410.06 in 2016[90]. - The total amount of raised funds was RMB 594 million, with a net amount of RMB 549.17 million after deducting related expenses[105]. - The company has a cash dividend policy that mandates a minimum of 30% of the average distributable profit over the past three years to be distributed as cash dividends if there are no major investment plans[148]. - The total cash dividend for the reporting period is 17,151,600.20 CNY, representing 100% of the profit distribution total[151]. Research and Development - Research and development (R&D) expenditure for 2017 was ¥48,186,400, representing 3.37% of operating revenue[71]. - The company completed nine R&D projects during the reporting period, including developments in electric vehicle charging and smart grid technologies[71]. - The company holds a total of 231 patents as of December 31, 2017, and was recognized as an advanced unit for technology achievement transformation in Harbin[71]. - The company has filed for five new patents related to high-frequency power supply technology, indicating a focus on innovation and technological advancement[86]. - Jiuzhou Electric is investing 200 million RMB in R&D for advanced energy solutions, focusing on renewable energy technologies[82]. Market and Competitive Landscape - The company faces risks of overcapacity in its manufacturing sector due to intensified market competition and supply-side reforms, leading to a potential slowdown in customer demand[5]. - The company aims to transition from an "electrical equipment supplier" to a provider of integrated renewable energy solutions, enhancing its competitive advantage[40]. - The national energy development plan emphasizes the promotion of large-capacity and distributed energy storage technologies, creating significant market opportunities[42]. - The company is focusing on renewable energy investments, particularly in wind and solar power, aligning with national energy development strategies[116]. - The company plans to enter the offshore wind power sector, leveraging China's extensive coastline and favorable wind resources, with a potential installed capacity of approximately 200 GW[137]. Operational Efficiency and Cost Management - The company plans to enhance product quality and optimize its product structure to maintain competitive pricing and market position, alongside increasing production capacity utilization[5]. - The company aims to achieve a 30% reduction in production costs through the implementation of new manufacturing technologies by the end of 2025[78]. - The company has maintained a focus on cost control, resulting in reduced total project expenditures[109]. - The gross margin for the electrical and related equipment segment was 26.95%, down 4.46% from the previous year[61]. - The company reported a gross margin of 35%, which is an improvement from 32% in the previous year, reflecting better cost management strategies[84]. Future Outlook and Strategic Goals - Future outlook includes plans for market expansion into Southeast Asia, targeting a 15% increase in market share over the next two years[78]. - The company has outlined a revenue guidance of $500 million for the next fiscal year, representing a 20% increase compared to the previous year[78]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[82]. - The company aims to develop a comprehensive energy management system, focusing on biomass, wind, and solar resources, and will implement distributed gas and biomass power generation projects in suitable regions[135]. - The company will adopt refined management practices to enhance operational quality, promoting independent management and accounting within production units[136].

[Section I Important Notice](index=2&type=section&id=Section%20I%20Important%20Notice) The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and its financial statements [Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and senior management declare the quarterly report's content is true, accurate, and complete, with all directors attending the review meeting - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - All directors attended the board meeting to review this quarterly report[5](index=5&type=chunk) - Company head Li Yin, chief accountant Li Bin, and head of accounting department Liu Zhenxin declare and guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[5](index=5&type=chunk) [Section II Company Profile](index=3&type=section&id=Section%20II%20Company%20Profile) This section details the company's key financial performance, shareholder structure, and changes in restricted shares during the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) As of the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased, with year-to-date net profit growing by **138.52%** Key Accounting Data and Financial Indicators (As of September 30, 2017) | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,918,566,024.09 | 2,832,535,366.46 | 3.04% | | Net Assets Attributable to Shareholders of Listed Companies | 1,863,516,507.78 | 1,784,363,558.35 | 4.44% | | Indicator | Current Period (CNY) | YoY Change (%) | Year-to-Date (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 263,959,072.94 | 38.54% | 988,769,661.95 | 88.55% | | Net Profit Attributable to Shareholders of Listed Companies | 22,327,434.00 | 23.98% | 98,924,333.83 | 138.52% | | Net Profit Attributable to Shareholders of Listed Companies (Excluding Non-Recurring Gains/Losses) | 19,628,163.33 | 33.24% | 91,158,850.02 | 189.99% | | Net Cash Flow from Operating Activities | -- | -- | -129,696,258.06 | -158.27% | | Basic Earnings Per Share (CNY/share) | 0.07 | 40.00% | 0.29 | 141.67% | | Diluted Earnings Per Share (CNY/share) | 0.07 | 40.00% | 0.29 | 141.67% | | Weighted Average Return on Net Assets | 1.21% | -25.77% | 5.41% | 118.15% | Non-Recurring Gains and Losses (Year-to-Date) | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 72,805.65 | Gains on disposal of fixed assets | | Government Subsidies Included in Current Profit/Loss | 9,385,354.12 | Government subsidies | | Gains/Losses from Entrusted Investment or Asset Management | 45,044.00 | Investment income | | Other Non-Operating Income and Expenses Apart from the Above | -367,341.64 | | | Less: Income Tax Impact | 1,370,378.32 | | | Total | 7,765,483.81 | -- | - The company had no instances of reclassifying non-recurring gains and losses as recurring gains and losses during the reporting period[10](index=10&type=chunk) [Total Shareholders and Top Ten Shareholders' Holdings at Period End](index=4&type=section&id=Total%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings%20at%20Period%20End) As of the reporting period end, the company had **22,029** common shareholders, with significant pledged holdings among top shareholders Li Yin and Zhao Xiaohong, who are parties acting in concert - The total number of common shareholders at the end of the reporting period was **22,029**[12](index=12&type=chunk) Top 10 Shareholders' Holdings (As of September 30, 2017) | Shareholder Name | Shareholder Type | Holding Percentage | Number of Shares Held (Shares) | Number of Restricted Shares Held (Shares) | Pledged or Frozen Shares (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yin | Domestic Natural Person | 19.75% | 68,370,602 | 51,277,951 | Pledged 42,083,541 | | Zhao Xiaohong | Domestic Natural Person | 15.65% | 54,170,602 | 40,627,951 | Pledged 28,627,949 | | Heilongjiang Chenneng Harbin Institute of Technology High-Tech Venture Capital Co., Ltd. | State-Owned Legal Person | 3.36% | 11,622,240 | 0 | - | | Li Changhe | Domestic Natural Person | 2.26% | 7,835,173 | 5,135,888 | Pledged 2,980,000 | | Li Wendong | Domestic Natural Person | 2.16% | 7,463,257 | 5,634,615 | Pledged 3,150,000 | | Beijing Zhicheng Shengjing Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 1.00% | 3,463,979 | 1,793,979 | - | | Harbin Science and Technology Venture Capital Center | State-Owned Legal Person | 0.73% | 2,538,460 | 0 | - | | Beijing Zhongdian Xinneng Investment Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.68% | 2,344,613 | 1,380,692 | - | | Ningbo Huajian Huifu Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.65% | 2,249,724 | 200,835 | - | | Lu Jianfeng | Domestic Natural Person | 0.65% | 2,240,000 | 0 | - | - Among the company's top 10 shareholders, Li Yin and Zhao Xiaohong are parties acting in concert, and Li Wendong and Li Changhe are uncle and nephew[13](index=13&type=chunk) [Changes in Restricted Shares](index=5&type=section&id=Changes%20in%20Restricted%20Shares) During the reporting period, the company's total restricted shares slightly decreased to **117,013,272** shares, primarily comprising executive lock-up, post-IPO, and equity incentive shares Changes in Restricted Shares (As of September 30, 2017) | Shareholder Name | Restricted Shares at Period Start (Shares) | Shares Released from Restriction in Current Period (Shares) | Shares Added to Restriction in Current Period (Shares) | Restricted Shares at Period End (Shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yin | 42,907,349 | 0 | 0 | 42,907,349 | Executive Lock-up Shares | Annual transfer not to exceed 25% of total shares held | | Li Yin | 8,370,602 | 0 | 0 | 8,370,602 | Post-IPO Individual Restricted Shares | Unlocked as per commitment | | Zhao Xiaohong | 34,000,000 | 1,742,651 | 0 | 32,257,349 | Executive Lock-up Shares | Annual transfer not to exceed 25% of total shares held | | Zhao Xiaohong | 8,370,602 | 0 | 0 | 8,370,602 | Post-IPO Individual Restricted Shares | Unlocked as per commitment | | Equity Incentive Restricted Shares | 7,984,000 | 2,442,800 | 0 | 5,541,200 | Equity Incentive Restricted Shares | Unlocked as per equity incentive plan | | Total | 121,134,223 | 4,185,451 | 64,500 | 117,013,272 | -- | -- | [Section III Significant Matters](index=8&type=section&id=Section%20III%20Significant%20Matters) This section outlines major financial data fluctuations, significant business developments, and confirms the absence of unfulfilled commitments or irregular financial activities [Significant Changes in Key Financial Data and Indicators and Their Causes](index=8&type=section&id=Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20and%20Their%20Causes) During the reporting period, several financial data points underwent significant changes, including substantial increases in notes receivable and short-term borrowings, and a negative shift in operating cash flow Significant Balance Sheet Item Changes and Causes (Period-End vs. Period-Start) | Balance Sheet Item | End of Reporting Period (CNY) | Beginning Balance (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Cash | 266,755,147.16 | 438,248,215.63 | -39.13% | Primarily due to increased contracts and advances for sales and engineering in the current period | | Notes Receivable | 161,523,943.14 | 18,482,751.30 | 773.92% | Primarily due to increased collections via acceptance bills from sales in the current period | | Prepayments | 33,069,284.32 | 18,938,422.68 | 74.61% | Primarily due to increased advance payments for engineering and purchases | | Other Receivables | 175,142,068.82 | 70,224,982.25 | 149.40% | Primarily due to increased upfront expenditures for general contracting and engineering deposits | | Other Current Assets | 96,806,553.84 | 14,870,827.02 | 550.98% | Primarily due to increased wealth management products compared to the beginning of the period | | Short-Term Borrowings | 131,500,000.00 | 61,500,000.00 | 113.82% | Primarily due to receipt of bank loans in the current period | | Notes Payable | 163,345,430.90 | 273,119,842.35 | -40.19% | Primarily due to maturity and acceptance of some acceptance bills from the end of the prior period | | Dividends Payable | 10,808,240.40 | - | 100.00% | Unpaid dividends at the end of the current period | | Long-Term Payables | 99,315,823.64 | - | 100.00% | Primarily due to receipt of finance lease payments in the current period | | Treasury Stock | 36,584,184.00 | 52,755,520.00 | -30.65% | Primarily due to initial restricted stock reaching unlock conditions in the current period | Significant Income Statement Item Changes and Causes (Year-to-Date vs. Prior Year Period) | Income Statement Item | Year-to-Date (CNY) | Prior Year Period (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 988,769,661.95 | 524,418,572.61 | 88.55% | Revenue recognized from grid-connected photovoltaic power station general contracting projects and partial engineering revenue from wind power general contracting projects in the current period | | Cost of Sales | 768,488,884.74 | 385,231,018.41 | 99.49% | Costs recognized from grid-connected photovoltaic power station general contracting projects and partial engineering costs from wind power general contracting projects in the current period | | Taxes and Surcharges | 8,073,349.81 | 951,140.11 | 748.81% | Primarily due to reclassification of property tax and land use tax to taxes and surcharges in the current period, previously classified as administrative expenses in the prior year period | | Asset Impairment Losses | 13,521,359.59 | -8,149,783.37 | -265.91% | Primarily due to increased provision for bad debts in the current period compared to the prior year period | | Investment Income | 45,044.00 | 2,215,195.34 | -97.97% | Primarily due to reduced investment in wealth management products compared to the prior year period | | Income Tax Expense | 19,597,577.46 | 5,888,983.49 | 232.78% | Primarily due to a significant increase in total profit in the current period and corresponding income tax expense recognition | Significant Cash Flow Statement Item Changes and Causes (Year-to-Date vs. Prior Year Period) | Cash Flow Statement Item | Year-to-Date (CNY) | Prior Year Period (CNY) | Change (%) | Explanation for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -129,696,258.06 | 222,586,524.12 | -158.27% | Primarily due to the dual factors of increased upfront expenditures for BT projects and increased collections via acceptance bills from sales in the current period | | Net Cash Flow from Investing Activities | 40,038,839.72 | -243,005,030.49 | -116.48% | Primarily due to more time deposits recovered than placed in the current period, while in the prior year period, time deposits recovered were less than placed | | Net Cash Flow from Financing Activities | 61,876,360.89 | -14,782,817.68 | 518.57% | Primarily due to receipt of finance lease payments and bank loans in the current period | [Progress of Significant Matters](index=9&type=section&id=Progress%20of%20Significant%20Matters) During the reporting period, the company signed several key agreements and investment plans to expand its business and financing channels, including a wind farm general contracting project and strategic cooperation agreements Overview of Significant Matters | Overview of Significant Matters | Disclosure Date | Index for Temporary Report Disclosure Website Query | | :--- | :--- | :--- | | Signing of "Dingbian Tianchitang Wind Farm BT General Contracting Project" | July 31, 2017 | http://www.cninfo.com.cn/ | | Investment and establishment of wholly-owned subsidiary China Jiuzhou International Energy Investment in Hong Kong | September 15, 2017 | http://www.cninfo.com.cn/ | | Signing of "Strategic Cooperation Framework Agreement" with China Kangfu International Leasing Co., Ltd. | September 19, 2017 | http://www.cninfo.com.cn/ | | Signing of "Clean Energy Heating Strategic Cooperation Framework Agreement" with the People's Government of Meilisi Daur District, Qiqihar City | September 28, 2017 | http://www.cninfo.com.cn/ | [Unfulfilled Commitments](index=9&type=section&id=Unfulfilled%20Commitments) The company confirms no overdue unfulfilled commitments from the actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period - The company had no overdue unfulfilled commitments from the actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period[23](index=23&type=chunk) [Execution of Cash Dividend Policy](index=9&type=section&id=Execution%20of%20Cash%20Dividend%20Policy) The company's cash dividend policy was not applicable during the reporting period - The company's cash dividend policy was not applicable during the reporting period[24](index=24&type=chunk) [Cumulative Net Profit Forecast Warning](index=10&type=section&id=Cumulative%20Net%20Profit%20Forecast%20Warning) The company had no warning regarding a potential cumulative net profit loss or significant change from the beginning of the year to the end of the next reporting period - The company had no warning regarding a potential cumulative net profit loss or significant change from the beginning of the year to the end of the next reporting period[25](index=25&type=chunk) [Irregular External Guarantees](index=10&type=section&id=Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[25](index=25&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholder](index=10&type=section&id=Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder) During the reporting period, there were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company - There were no non-operating funds occupied by the controlling shareholder or its related parties from the listed company during the reporting period[26](index=26&type=chunk) [Section IV Financial Statements](index=11&type=section&id=Section%20IV%20Financial%20Statements) This section presents the consolidated and parent company balance sheets, income statements, and cash flow statements for the reporting period, along with an audit status [Consolidated Balance Sheet](index=11&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's consolidated total assets amounted to **CNY 2.919 billion**, a **3.04%** increase, with significant changes in cash, notes receivable, and short-term borrowings Consolidated Balance Sheet Key Items (As of September 30, 2017) | Item | Period-End Balance (CNY) | Period-Start Balance (CNY) | | :--- | :--- | :--- | | Cash | 266,755,147.16 | 438,248,215.63 | | Notes Receivable | 161,523,943.14 | 18,482,751.30 | | Accounts Receivable | 847,482,200.11 | 1,023,498,644.10 | | Prepayments | 33,069,284.32 | 18,938,422.68 | | Other Receivables | 175,142,068.82 | 70,224,982.25 | | Inventories | 373,493,039.50 | 310,998,424.19 | | Other Current Assets | 96,806,553.84 | 14,870,827.02 | | Total Current Assets | 1,955,625,931.45 | 1,896,161,407.37 | | Fixed Assets | 503,588,316.38 | 471,194,544.99 | | Intangible Assets | 181,440,425.10 | 192,188,695.00 | | Total Assets | 2,918,566,024.09 | 2,832,535,366.46 | | Short-Term Borrowings | 131,500,000.00 | 61,500,000.00 | | Notes Payable | 163,345,430.90 | 273,119,842.35 | | Accounts Payable | 447,569,504.94 | 440,525,623.21 | | Dividends Payable | 10,808,240.40 | 0 | | Long-Term Payables | 99,315,823.64 | 0 | | Total Liabilities | 1,055,049,516.31 | 1,048,171,808.11 | | Total Owners' Equity Attributable to Parent Company | 1,863,516,507.78 | 1,784,363,558.35 | | Total Owners' Equity | 1,863,516,507.78 | 1,784,363,558.35 | [Parent Company Balance Sheet](index=14&type=section&id=Parent%20Company%20Balance%20Sheet) As of September 30, 2017, the parent company's total assets were **CNY 2.576 billion**, with notable increases in notes receivable and short-term borrowings, and decreases in cash and notes payable Parent Company Balance Sheet Key Items (As of September 30, 2017) | Item | Period-End Balance (CNY) | Period-Start Balance (CNY) | | :--- | :--- | :--- | | Cash | 188,629,332.54 | 358,367,053.33 | | Notes Receivable | 158,213,943.14 | 7,207,949.00 | | Accounts Receivable | 679,886,717.25 | 854,078,895.40 | | Prepayments | 41,598,045.84 | 15,737,366.11 | | Other Receivables | 170,521,282.38 | 83,752,391.90 | | Other Current Assets | 69,102,471.23 | 139,961.26 | | Total Current Assets | 1,537,260,056.38 | 1,540,189,677.69 | | Long-Term Equity Investments | 899,212,880.41 | 899,212,880.41 | | Total Assets | 2,576,134,199.26 | 2,588,493,131.73 | | Short-Term Borrowings | 100,000,000.00 | 50,000,000.00 | | Notes Payable | 111,095,907.50 | 253,666,936.31 | | Accounts Payable | 319,781,162.46 | 269,555,883.51 | | Other Payables | 233,921,232.04 | 231,388,310.16 | | Total Liabilities | 886,411,732.72 | 949,036,012.95 | | Total Owners' Equity | 1,689,722,466.54 | 1,639,457,118.78 | [Consolidated Income Statement for the Current Period](index=16&type=section&id=Consolidated%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2017, the company achieved total operating revenue of **CNY 264 million**, a **38.54%** year-on-year increase, with net profit attributable to parent company owners at **CNY 22.33 million** Consolidated Income Statement Key Items for Q3 2017 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 263,959,072.94 | 190,534,937.11 | | Cost of Sales | 211,247,251.80 | 140,291,071.21 | | Taxes and Surcharges | 122,610.02 | 538,107.34 | | Selling Expenses | 12,645,228.74 | 15,342,126.66 | | Administrative Expenses | 17,579,489.57 | 29,802,948.02 | | Finance Expenses | 1,195,823.65 | -191,736.08 | | Asset Impairment Losses | -1,770,742.35 | -11,075,786.44 | | Operating Profit | 26,780,377.98 | 20,290,220.68 | | Total Profit | 26,546,271.66 | 19,624,004.95 | | Income Tax Expense | 4,218,837.66 | 1,614,907.64 | | Net Profit | 22,327,434.00 | 18,009,097.31 | | Net Profit Attributable to Parent Company Owners | 22,327,434.00 | 18,009,604.86 | | Basic Earnings Per Share (CNY/share) | 0.07 | 0.05 | | Diluted Earnings Per Share (CNY/share) | 0.07 | 0.05 | [Parent Company Income Statement for the Current Period](index=18&type=section&id=Parent%20Company%20Income%20Statement%20for%20the%20Current%20Period) In Q3 2017, the parent company's operating revenue reached **CNY 198 million**, a significant increase from the prior period, with net profit substantially growing to **CNY 17.28 million** Parent Company Income Statement Key Items for Q3 2017 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 197,626,800.39 | 112,409,853.85 | | Cost of Sales | 167,128,850.84 | 95,222,734.21 | | Taxes and Surcharges | -1,534,202.37 | 12,470.01 | | Selling Expenses | 7,393,597.75 | 8,881,450.15 | | Administrative Expenses | 7,479,274.06 | 18,375,541.83 | | Finance Expenses | -517,028.36 | -679,355.59 | | Asset Impairment Losses | -2,189,682.74 | -11,771,429.09 | | Operating Profit | 20,609,907.88 | 4,328,817.47 | | Total Profit | 20,380,360.68 | 4,565,537.72 | | Income Tax Expense | 3,101,489.42 | -681,107.24 | | Net Profit | 17,278,871.26 | 5,246,644.96 | [Consolidated Income Statement Year-to-Date](index=20&type=section&id=Consolidated%20Income%20Statement%20Year-to-Date) As of September 30, 2017, the company's consolidated total operating revenue reached **CNY 989 million**, an **88.55%** year-on-year increase, with net profit attributable to parent company owners growing by **138.52%** Consolidated Income Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 988,769,661.95 | 524,418,572.61 | | Cost of Sales | 768,488,884.74 | 385,231,018.41 | | Taxes and Surcharges | 8,073,349.81 | 951,140.11 | | Selling Expenses | 35,135,580.48 | 42,165,142.89 | | Administrative Expenses | 57,592,003.79 | 69,405,719.80 | | Finance Expenses | -498,334.79 | -912,303.37 | | Asset Impairment Losses | 13,521,359.59 | -8,149,783.37 | | Operating Profit | 118,816,447.28 | 47,790,502.99 | | Total Profit | 118,521,911.29 | 47,364,181.59 | | Income Tax Expense | 19,597,577.46 | 5,888,983.49 | | Net Profit | 98,924,333.83 | 41,475,198.10 | | Net Profit Attributable to Parent Company Owners | 98,924,333.83 | 41,473,382.86 | | Basic Earnings Per Share (CNY/share) | 0.29 | 0.12 | | Diluted Earnings Per Share (CNY/share) | 0.29 | 0.12 | [Parent Company Income Statement Year-to-Date](index=22&type=section&id=Parent%20Company%20Income%20Statement%20Year-to-Date) As of September 30, 2017, the parent company's operating revenue reached **CNY 711 million**, a significant increase from the prior year, with net profit substantially growing to **CNY 70.04 million** Parent Company Income Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 710,800,565.06 | 283,426,199.54 | | Cost of Sales | 572,713,251.50 | 230,509,168.65 | | Taxes and Surcharges | 2,709,605.76 | -908,236.58 | | Selling Expenses | 20,967,267.63 | 23,954,189.09 | | Administrative Expenses | 25,322,942.55 | 35,749,847.14 | | Finance Expenses | -3,497,797.27 | -2,137,270.95 | | Asset Impairment Losses | 11,855,181.74 | -11,769,821.15 | | Operating Profit | 82,961,863.16 | 12,846,388.42 | | Total Profit | 82,689,021.08 | 13,222,660.70 | | Income Tax Expense | 12,652,288.92 | 529,900.40 | | Net Profit | 70,036,732.16 | 12,692,760.30 | [Consolidated Cash Flow Statement Year-to-Date](index=23&type=section&id=Consolidated%20Cash%20Flow%20Statement%20Year-to-Date) As of September 30, 2017, consolidated net cash flow from operating activities turned significantly negative to **CNY -130 million**, while investing and financing cash flows showed notable improvements or increases Consolidated Cash Flow Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 932,221,628.28 | 929,189,703.24 | | Subtotal of Cash Outflows from Operating Activities | 1,061,917,886.34 | 706,603,179.12 | | Net Cash Flow from Operating Activities | -129,696,258.06 | 222,586,524.12 | | Subtotal of Cash Inflows from Investing Activities | 304,311,904.16 | 632,308,269.74 | | Subtotal of Cash Outflows from Investing Activities | 264,273,064.44 | 875,313,300.23 | | Net Cash Flow from Investing Activities | 40,038,839.72 | -243,005,030.49 | | Subtotal of Cash Inflows from Financing Activities | 138,500,000.00 | 46,500,000.00 | | Subtotal of Cash Outflows from Financing Activities | 76,623,639.11 | 61,282,817.68 | | Net Cash Flow from Financing Activities | 61,876,360.89 | -14,782,817.68 | | Net Increase in Cash and Cash Equivalents | -27,781,057.45 | -35,201,324.05 | | Cash and Cash Equivalents at Period End | 115,844,716.57 | 31,913,013.45 | [Parent Company Cash Flow Statement Year-to-Date](index=25&type=section&id=Parent%20Company%20Cash%20Flow%20Statement%20Year-to-Date) As of September 30, 2017, parent company net cash flow from operating activities turned significantly negative to **CNY -114 million**, while investing cash flow improved and financing cash flow further decreased Parent Company Cash Flow Statement Key Items (Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 730,301,248.41 | 689,644,108.51 | | Subtotal of Cash Outflows from Operating Activities | 844,769,192.39 | 447,451,205.51 | | Net Cash Flow from Operating Activities | -114,467,943.98 | 242,192,903.00 | | Subtotal of Cash Inflows from Investing Activities | 302,227,815.55 | 367,076,408.97 | | Subtotal of Cash Outflows from Investing Activities | 194,620,350.00 | 602,759,396.86 | | Net Cash Flow from Investing Activities | 107,607,465.55 | -235,682,987.89 | | Subtotal of Cash Inflows from Financing Activities | 50,000,000.00 | 0 | | Subtotal of Cash Outflows from Financing Activities | 60,346,230.79 | 7,916,792.90 | | Net Cash Flow from Financing Activities | -10,346,230.79 | -7,916,792.90 | | Net Increase in Cash and Cash Equivalents | -17,206,709.22 | -1,406,877.79 | | Cash and Cash Equivalents at Period End | 68,846,652.90 | 18,849,947.12 | [Audit Report](index=27&type=section&id=Audit%20Report) The company's Q3 2017 report was unaudited - The company's third-quarter report was unaudited[58](index=58&type=chunk) [Section XI Reference Documents](index=28&type=section&id=Section%20XI%20Reference%20Documents) This section lists the official documents available for reference, including the signed financial report and publicly disclosed company filings [Reference Documents List](index=28&type=section&id=Reference%20Documents%20List) At the end of the reporting period, the company's reference documents include the signed financial report, publicly disclosed company filings, and the original Q3 2017 report - Financial report text signed and sealed by the company's legal representative Mr. Li Yin, chief accountant Mr. Li Bin, and head of accounting department Ms. Liu Zhenxin[61](index=61&type=chunk) - Original copies of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[62](index=62&type=chunk) - Original Q3 2017 report signed by the company's legal representative Mr. Li Yin[63](index=63&type=chunk)

Financial Performance - Total revenue for the first half of 2017 reached ¥724,810,589.01, representing a 117.08% increase compared to ¥333,883,635.50 in the same period last year [25]. - Net profit attributable to shareholders was ¥76,596,899.83, a significant increase of 226.45% from ¥23,463,778.00 in the previous year [25]. - The net profit after deducting non-recurring gains and losses was ¥71,530,686.69, up 328.24% from ¥16,703,223.55 year-on-year [25]. - Basic earnings per share rose to ¥0.23, reflecting a 228.57% increase compared to ¥0.07 in the same period last year [25]. - The company's total assets at the end of the reporting period were ¥2,920,190,450.32, a 3.09% increase from ¥2,832,535,366.46 at the end of the previous year [25]. - Net assets attributable to shareholders increased by 3.18% to ¥1,841,189,073.78 from ¥1,784,363,558.35 at the end of the previous year [25]. - The net cash flow from operating activities was negative at -¥189,619,033.64, a decline of 3,318.37% compared to ¥5,891,773.67 in the same period last year [25]. - The weighted average return on equity was 4.20%, an increase of 2.78% from 1.42% in the previous year [25]. - The company achieved a revenue of 724.81 million CNY, representing a 117.08% increase compared to the same period last year [45]. - The net profit attributable to shareholders reached 76.60 million CNY, marking a significant growth of 226.45% year-on-year [45]. Investment and Expansion Plans - The company plans to enter renewable energy sectors such as wind, solar, hydro, biomass, and energy storage through EPC contracts, mergers, and self-built projects to drive product sales and maintain technological leadership [4]. - The company is pursuing strategic investments and acquisitions but acknowledges risks related to integration and performance of acquired entities [8]. - The company plans to expand its renewable energy projects with a dedicated fund of 2 billion CNY, aiming for an annual construction scale of 400 MW [41]. - The company is positioned to benefit from the national push for renewable energy, with significant investments planned in solar and wind power sectors [39]. - The company is actively pursuing investment and acquisition strategies to enhance its market position and profitability, with a focus on synergies with core business areas [86]. Operational Challenges - The company is experiencing overcapacity in its manufacturing sector due to intensified market competition and supply-side reforms, leading to a need for product upgrades and cost control measures [5]. - The company faces risks from intensified market competition and potential overcapacity in the manufacturing sector, prompting a focus on product upgrades and cost control [83]. - The company has faced challenges in achieving expected benefits from new power electronic devices due to intensified market competition [71]. - The company has identified liquidity risks due to rapid expansion in the capital-intensive renewable energy sector, necessitating careful financial management and diversified funding sources [85]. Financial Management and Funding - The company's asset-liability ratio has increased due to rapid expansion in the capital-intensive renewable energy and storage sectors, which may lead to liquidity risks if profit expectations are not met [6]. - The company aims to utilize various financing methods, including non-public stock issuance and green bonds, to support its development needs and enhance capital structure [7]. - The company has confirmed the use of remaining raised funds, which are stored in a dedicated account [73]. - The company has committed to not using raised funds for financial investments or trading securities [95]. Project Management and Development - The company emphasizes the importance of project management in the renewable energy sector to mitigate risks associated with investment amounts and project timelines [9]. - The company completed the grid-connected generation of 82 MW of photovoltaic power stations during the reporting period [33]. - The company is developing a smart charging station that integrates photovoltaic systems and energy storage, which is expected to become a new profit growth point after trial operation [49]. - The company signed multiple contracts for photovoltaic and hydropower projects, enhancing its total contracting capacity and project management capabilities [46]. Shareholder and Governance Matters - The company will not distribute cash dividends or issue bonus shares, focusing instead on reinvestment for growth [11]. - The company held its annual general meeting on May 25, 2017, with an investor participation rate of 47.41% [91]. - The first extraordinary general meeting of 2017 was held on July 6, 2017, with a participation rate of 39.56% [91]. - Shareholders Li Yin and Zhao Xiaohong have committed to a 36-month lock-up period for shares acquired in the current issuance [93]. - Management shareholders have agreed to a 48-month lock-up for 9,097,035 shares from the current issuance [94]. Research and Development - Research and development expenses rose by 21.97% to ¥17,972,151.63 from ¥14,734,376.48, reflecting the company's commitment to innovation [53]. - The company plans to continue enhancing its technological capabilities in smart grids, electric vehicle charging, and energy storage to drive future growth [46]. - The company aims to enhance its research and development efforts to drive innovation in its product offerings [186]. Miscellaneous - The company has no major related party transactions during the reporting period [103]. - There were no significant asset or equity sales during the reporting period [78][79]. - The financial report for the half-year was not audited [97]. - The company has no bankruptcy reorganization matters during the reporting period [98].

Financial Performance - Total operating revenue for Q1 2017 was ¥238,576,332.24, representing a 26.40% increase compared to ¥188,753,942.96 in the same period last year[7]. - Net profit attributable to shareholders was ¥22,714,821.65, a significant increase of 123.07% from ¥10,182,815.65 year-on-year[7]. - The net profit after deducting non-recurring gains and losses reached ¥20,257,587.60, up 224.83% from ¥6,236,394.75 in the previous year[7]. - The basic earnings per share increased to ¥0.07, reflecting a growth of 133.33% compared to ¥0.03 in the same period last year[7]. - Operating costs increased to CNY 188,104,488.64, a rise of 31.06% compared to the previous year[29]. - The company reported a significant increase in operating profit to CNY 25,166,144.78, compared to CNY 9,707,632.32 in the previous year, marking a growth of 159.5%[63]. - Total comprehensive income for Q1 2017 was CNY 19,669,006.40, compared to CNY 12,305,274.71 in the same period last year, indicating a growth of 60.5%[67]. Cash Flow and Assets - The company reported a net cash flow from operating activities of -¥27,016,497.25, a decline of 659.10% from ¥4,832,125.33 in the previous year[7]. - The company reported a cash balance of 360.31 million yuan as of March 31, 2017, down from 438.25 million yuan at the beginning of the year[54]. - The total assets at the end of the reporting period were ¥2,830,987,075.88, a slight decrease of 0.05% from ¥2,832,535,366.46 at the end of the previous year[7]. - The company’s total assets amounted to CNY 2,830,987,075.88, with total liabilities of CNY 1,023,908,695.88, resulting in a debt-to-asset ratio of 36.17%[29]. - Cash and cash equivalents decreased to CNY 300,156,749.21 from CNY 358,367,053.33, a decline of 16.2%[58]. - The ending balance of cash and cash equivalents was ¥18,613,579.92, down from ¥30,599,735.56, representing a decrease of approximately 39.06%[74]. Shareholder Information - Total number of common stock shareholders at the end of the reporting period is 21,171[18]. - The largest shareholder, Li Yin, holds 19.74% of shares, totaling 68,370,602, with 51,277,951 shares pledged[18]. - The second-largest shareholder, Zhao Xiaohong, owns 15.64% of shares, amounting to 54,170,602, with 40,627,951 shares pledged[18]. - The top 10 shareholders collectively hold significant stakes, with the largest three shareholders accounting for over 38% of total shares[18]. - The company has not conducted any repurchase transactions among the top 10 shareholders during the reporting period[19]. Business Strategy and Expansion - The company plans to enter the renewable energy sector through EPC contracts, mergers, and self-built projects, aiming to enhance product sales and R&D investment[10]. - The company is exploring various financing methods, including non-public stock issuance and green bonds, to support its rapid expansion in the renewable energy and storage sectors[13]. - The company is actively expanding its presence in the renewable energy sector, focusing on wind, solar, and hydropower, while also enhancing its capabilities in smart grids and electric vehicle charging technologies[34]. - The company has initiated acquisitions of Qitaihe Wanlong Wind Power Co., Ltd. and Qitaihe Jiaxing Wind Power Co., Ltd. to quickly enter the renewable energy power station operation field[34]. - The company signed contracts for three major projects, including a 20MW photovoltaic ground power station, indicating a strategic push in renewable energy projects[34]. Risks and Challenges - The company faces risks from intensified market competition and potential overcapacity in its manufacturing sector, prompting a focus on product upgrades and cost control[11]. - The company reported a significant decline in profitability due to intensified market competition affecting sales performance[45]. Compliance and Governance - The report indicates that there are no new strategies or significant market expansions mentioned in the current quarter[24]. - The company has not disclosed any new product developments or technological advancements in the latest report[24]. - The management shareholders agreed that the shares subscribed in this issuance will not be transferred for 36 months from the date of listing, with specific conditions for further restrictions based on stock performance[40]. - The company will ensure that no related parties misuse or occupy the raised funds for personal benefits[41].

Production Capacity and Expansion - The company has completed projects aimed at enhancing production capacity, including high-power variable frequency drive expansion and new power electronic device assembly, but faces risks of not meeting expected goals due to macroeconomic impacts[4] - The company has expanded its production base with the establishment of the Jiuzhou Electric Technology Industrial Park in Harbin, enhancing its operational capacity[20] - The company is experiencing overcapacity in its manufacturing sector due to intensified market competition and supply-side reforms, leading to potential risks in product pricing and demand[6] Financial Performance - The company's operating revenue for 2016 was approximately ¥1.32 billion, representing a 73.90% increase compared to ¥758.77 million in 2015[25] - The net profit attributable to shareholders for 2016 was approximately ¥130.51 million, a significant increase of 549.36% from ¥20.10 million in 2015[25] - The net profit attributable to shareholders after deducting non-recurring gains and losses reached approximately ¥119.63 million, up 894.41% from ¥12.03 million in the previous year[25] - The net cash flow from operating activities was approximately ¥114.56 million, a turnaround from a negative cash flow of ¥128.41 million in 2015, marking a 189.21% improvement[25] - Basic earnings per share for 2016 were ¥0.39, a 457.14% increase from ¥0.07 in 2015[25] - The total assets of the company at the end of 2016 were approximately ¥2.83 billion, reflecting a 21.08% increase from ¥2.34 billion at the end of 2015[25] - The net assets attributable to shareholders increased to approximately ¥1.78 billion, an 8.80% rise from ¥1.64 billion in 2015[25] - The company reported a weighted average return on equity of 7.62% for 2016, up from 1.63% in 2015, indicating improved profitability[25] Renewable Energy Initiatives - The company plans to enter renewable energy sectors such as wind, solar, hydropower, biomass, and energy storage through EPC contracts, mergers, and self-built projects to drive sales and increase R&D investment[4] - The company successfully entered the renewable energy sector, undertaking construction projects for a 193.5MW wind farm and a 50MW solar power plant, establishing a new profit growth point[34] - The company aims to expand into renewable energy generation through EPC, BT contracting, mergers, and self-built projects, targeting wind, solar, hydro, and biomass power stations[34] - The company has established a comprehensive competitive advantage in technology innovation, supply chain resources, and project development in the renewable energy sector[37] Investment and Financing Strategies - The company is facing liquidity risks due to rapid expansion in the capital-intensive renewable energy and storage sectors, which may lead to increased asset-liability ratios[7] - The company plans to optimize its capital structure and explore various financing methods, including private placements and green bonds, to support its development needs[9] - The company established a 2 billion yuan special industrial fund with the State Power Investment Corporation for new energy projects, with the fund covering 70% of project financing[40] - The company aims to utilize various financing methods, including industry funds and asset securitization, to ensure successful strategic transformation and operational goals[123] Research and Development - Research and development expenses for 2016 amounted to ¥54,410,632.73, which is 4.12% of the operating income[68] - The company has launched 10 new R&D projects during the reporting period, focusing on electric vehicle charging systems and smart grid technologies[68] - The company aims to maintain its technological leadership in the industry through continuous investment in R&D and innovation[68] - The R&D budget has increased by 25%, focusing on advanced technologies in power generation and distribution[76] Market Presence and Customer Engagement - The company is expanding its market presence, targeting new regions with a projected market share increase of 10% in the next year[76] - User data indicates a rise in customer engagement, with active users increasing by 15% compared to the previous year[76] - The company is expanding its market presence by entering two new provinces, aiming to increase market share by 10% in the next year[77] - Jiuzhou Electric is focusing on expanding its market presence, particularly in the renewable energy sector, aiming for a 20% increase in market share over the next two years[81] Corporate Governance and Social Responsibility - The company actively fulfills its obligations as a listed entity and takes on social responsibilities while creating value for shareholders[200] - The company adheres to legal requirements and enhances its corporate governance structure to protect shareholder rights[200] - The company emphasizes employee rights and complies with labor laws, providing benefits such as "five insurances and one fund" and free commuting services[200] - The company maintains transparent communication with investors through various channels, improving transparency and credibility[200] Profit Distribution and Shareholder Commitments - The company has proposed a profit distribution plan, offering a cash dividend of 1.00 yuan per 10 shares to all shareholders[12] - The total cash dividend for the reporting period amounts to 34,618,720.40 yuan, representing 100% of the profit distribution total[145] - The company committed to achieving a net profit of no less than CNY 37.5 million, CNY 45 million, and CNY 51 million for the years 2015, 2016, and 2017 respectively, with a total net profit of no less than CNY 133.5 million over the assessment period[148] - The management shareholders agreed to a share transfer restriction for 12 months post-listing, with specific conditions for further transfers based on achieving profit commitments[148]

Financial Performance - Total operating revenue for the reporting period was CNY 190,534,937.11, representing a significant increase of 433.54% year-on-year[7]. - Net profit attributable to shareholders of the listed company was CNY 18,009,604.86, compared to CNY 28,520,334.66 in the same period last year[7]. - The net profit after deducting non-recurring gains and losses was CNY 14,731,516.94, down from CNY 30,816,989.85 year-on-year[7]. - The company achieved operating revenue of CNY 524,418,572.61, an increase of 391.41% compared to the previous year[29]. - The net profit attributable to shareholders reached CNY 41,473,382.86, an increase of CNY 68,946,828.64 compared to the previous year[29]. - The total operating revenue for the third quarter was CNY 190,534,937.11, a significant increase from CNY 35,711,718.28 in the same period last year, representing a growth of approximately 433%[66]. - The total operating costs for the quarter were CNY 174,706,730.71, compared to CNY 53,250,119.33 in the previous year, indicating a rise of about 228%[66]. - The company reported a net profit increase in retained earnings to CNY 525,783,487.74 from CNY 484,310,104.88, an increase of about 8.6%[61]. - The company reported a total profit of CNY 19,624,004.95 for the third quarter, compared to a total loss of CNY 11,914,023.11 in the same period last year[67]. - The company reported a significant increase in sales revenue from CNY 121.33 million to CNY 677.29 million, indicating a growth of approximately 460.5%[82]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,309,879,873.72, a decrease of 1.26% compared to the end of the previous year[7]. - Total liabilities decreased to CNY 611,966,746.01 from CNY 699,121,101.45, showing a reduction of about 12.5%[60]. - The owner's equity increased to CNY 1,697,913,127.71 from CNY 1,640,005,718.76, marking an increase of approximately 3.5%[61]. - The cash and cash equivalents at the end of the period were CNY 133,341,428.74, slightly down from CNY 133,556,646.41 at the beginning of the period[62]. - Accounts receivable decreased significantly to CNY 270,182,736.05 from CNY 462,688,469.74, a drop of about 41.5%[62]. - Inventory increased to CNY 213,073,243.45 from CNY 146,755,606.43, representing an increase of approximately 45%[62]. Investments and Projects - The company plans to enter the renewable energy sector through EPC contracting, mergers, and self-built projects to mitigate risks associated with market demand fluctuations[11]. - The company signed contracts for nearly 250MW of new energy power station EPC projects, which are expected to generate over 2 billion CNY in revenue upon completion[38]. - The company has completed the main equipment bidding for the Guanshan County Puli Wind Power Project and is currently conducting construction work, with plans to connect to the grid by the end of 2016[31]. - The company has signed contracts for multiple photovoltaic projects, including a 20MW solar power station scheduled to connect to the grid by the end of November 2016[32]. - The company is advancing its R&D projects, including the development of a smart electric vehicle charging system, which is currently in the debugging phase[33]. - The investment project for the annual production of 500 sets of high-power frequency conversion devices has achieved a completion rate of 97.52%[46]. - The investment in new power electronic devices has reached 88.12% of the planned amount[46]. - The construction of the enterprise technology center has achieved an investment progress of 85.71%[46]. - The marketing network and technology support center project has achieved an investment progress of 68.09%[46]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,906, with the top 10 shareholders holding significant stakes[20]. - The largest shareholder, Li Yin, holds 19.76% of shares, amounting to 68,370,602 shares, with 51,277,951 shares pledged[20]. - Zhao Xiaohong, the second-largest shareholder, owns 15.65% of shares, totaling 54,170,602 shares, with 42,370,602 shares pledged[20]. - The report indicates that there were no repurchase transactions among the top 10 ordinary shareholders during the reporting period[21]. Management and Strategy - The company aims to enhance product technology and optimize product structure to improve gross profit margins and reduce risks related to fundraising projects not meeting expected returns[11]. - The company is focusing on talent acquisition and management optimization to address risks associated with management and human resources as it expands[15]. - The company aims for rapid external growth through mergers and acquisitions, while acknowledging the associated integration risks[18]. - The integration plan includes stabilizing Haocheng Electric's management team while enhancing it with experienced personnel from the company[16]. - The company will incorporate Haocheng Electric's customer management and product development into its unified management system[16]. - The management team committed to achieving a net profit of at least RMB 37.5 million, RMB 45 million, and RMB 51 million for the years 2015, 2016, and 2017 respectively, with a total net profit of no less than RMB 133.5 million over the assessment period[42]. Cash Flow and Financial Management - The net cash flow from operating activities was CNY 222,586,524.12, an increase of CNY 403,754,899.70 year-on-year[29]. - The company reported a net cash flow from operating activities of CNY 222.59 million, a significant improvement from a negative cash flow of CNY 181.17 million in the previous year[82]. - The total cash inflow from operating activities amounted to 689,644,108.51 RMB, up from 366,920,905.18 RMB in the previous period, indicating a growth of approximately 88%[86]. - The company has effectively controlled project costs through strict procurement and bidding processes, resulting in significant savings[48]. - The company has not reported any issues or problems in the use and disclosure of raised funds[48].