Financial Performance - Total revenue for Q1 2019 was ¥378,702,936.30, an increase of 2.73% compared to ¥368,627,832.81 in the same period last year[8] - Net profit attributable to shareholders was ¥3,174,251.08, a significant turnaround from a loss of ¥9,130,446.16, representing a 134.77% increase[8] - Basic earnings per share improved to ¥0.0146 from a loss of ¥0.0421, marking a 134.68% increase[8] - The total profit for the period was 8.08 million yuan, up 197.08% compared to the previous year[18] - The net profit attributable to shareholders was 3.17 million yuan, reflecting a year-on-year increase of 134.77%[18] - The company reported a net profit of CNY 6,255,812.31 in Q1 2019, compared to a loss of CNY 820,000.00 in the same period last year[57] - The company reported a total profit of CNY 8,081,614.94, compared to a loss of CNY 8,324,864.92 in the previous year[60] - The total comprehensive income for the period was CNY 2,717,011.07, compared to a loss of CNY 10,808,477.50 in the same period last year[60] Cash Flow and Liquidity - The net cash flow from operating activities was negative at ¥84,937,192.53, worsening by 86.16% compared to the previous year[8] - Cash and cash equivalents decreased by 855.76% to -140.79 million yuan, primarily due to reduced cash flow from operating and financing activities[18] - The company's cash and cash equivalents decreased to CNY 185,032,811.43 from CNY 327,850,573.59[53] - The cash flow from operating activities was CNY 363,098,280.15, down from CNY 407,174,019.04 in the previous year, indicating a need for monitoring cash flow efficiency[66] - The net cash flow from operating activities was -50,223,417.58 CNY, compared to -19,495,518.18 CNY in the previous period, indicating a decline in operational performance[71] - Total cash inflow from operating activities was 374,904,424.49 CNY, down from 432,193,401.75 CNY year-on-year, reflecting a decrease of approximately 13.2%[71] - The ending balance of cash and cash equivalents was 146,003,364.63 CNY, down from 197,740,958.87 CNY in the previous period, indicating a decrease of approximately 26%[72] Assets and Liabilities - Total assets decreased by 3.48% to ¥2,014,813,706.41 from ¥2,087,542,420.65 at the end of the previous year[8] - Total liabilities decreased to CNY 934,160,132.03 from CNY 1,024,931,694.42 year-over-year[51] - Owner's equity increased to CNY 1,080,653,574.38 from CNY 1,062,610,726.23, indicating a strengthening financial position[51] - Total assets as of March 31, 2019, were CNY 1,849,446,911.47, down from CNY 1,914,246,907.25 at the end of 2018[56] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,761[12] - The largest shareholder, Anhui Anli Technology Investment Group Co., Ltd., held 21.90% of the shares, amounting to 47,520,000 shares[12] Operational Highlights - The company achieved operating revenue of 378.70 million yuan in Q1 2019, representing a year-on-year increase of 2.73%[19] - The main business revenue reached 370.52 million yuan, with a year-on-year growth of 5.35%[19] - The overall product selling price increased by 11.13% year-on-year, driven by stable raw material prices and effective product development[19] - The company plans to continue expanding its marketing network and enhancing brand influence to drive future growth[19] Research and Development - Research and development expenses increased to CNY 25,199,378.74, up from CNY 23,774,368.05, reflecting a focus on innovation[57] - Research and development expenses were CNY 18,719,648.52, slightly up from CNY 18,395,295.95 in the previous year, indicating continued investment in innovation[62] Risks and Compliance - The company faces risks from exchange rate fluctuations, which could impact export sales prices and the cost of imported raw materials[24] - The company is exposed to risks from rising raw material prices, which account for over 60% of its main business costs[25] - Approximately 50% of the company's total costs are attributed to chemical raw materials, which poses risks related to environmental compliance and may increase operational costs due to stricter regulations[30] - The company has implemented various environmental protection measures and complies with national and local environmental regulations[28] - The company has achieved ISO14001 environmental management certification and is recognized as a "National Green Factory" by the Ministry of Industry and Information Technology[29] Future Outlook - The company expects to turn a profit in the cumulative net profit from the beginning of the year to the next reporting period, with a significant increase compared to the same period last year[42] - The company's product sales volume remains stable, benefiting from the transformation and upgrading of product and customer structures, with a higher proportion of high value-added products leading to increased sales prices and steady revenue growth[42] - The gross profit margin of main products has improved compared to the same period last year[42] Construction and Expansion - The company is currently constructing a factory in Vietnam, with the project expected to be completed by the first half of 2020[35] - The ecological functional polyurethane synthetic leather comprehensive upgrade project is underway, with construction expected to be completed in the first half of 2019[36]

Financial Performance - The company's operating revenue for 2018 was CNY 1,679,430,867.51, representing a 12.49% increase compared to CNY 1,492,956,726.98 in 2017[15]. - The net profit attributable to shareholders in 2018 was CNY 23,041,603.84, a significant turnaround from a loss of CNY 16,662,937.67 in 2017, marking a 238.28% increase[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 25,168,403.44, up 182.34% from a loss of CNY 30,564,977.81 in the previous year[15]. - The net cash flow from operating activities increased by 42.37% to CNY 195,680,425.97, compared to CNY 137,445,951.77 in 2017[15]. - The basic earnings per share for 2018 was CNY 0.1062, a recovery from a loss of CNY 0.0768 per share in 2017[15]. - Total revenue reached 1,679.43 million CNY, with a year-on-year increase of 12.49%[52]. - The net profit attributable to shareholders was 23.04 million CNY, up 238.28% year-on-year[52]. - The company achieved revenue of 1,621.88 million CNY from its main product, polyurethane synthetic leather, representing a year-on-year growth of 15.41%[52]. Assets and Investments - Total assets at the end of 2018 reached CNY 2,087,542,420.65, reflecting a 7.04% increase from CNY 1,950,259,435.90 at the end of 2017[15]. - The net assets attributable to shareholders were CNY 995,667,423.31, a 2.39% increase from CNY 972,410,903.19 in the previous year[15]. - The company's cash and cash equivalents increased by 38.87% compared to the beginning of the period, primarily due to expanded sales and effective control of accounts receivable[37]. - The company's fixed assets increased significantly due to investments in the ecological functional polyurethane synthetic leather comprehensive upgrade project[37]. - The company has invested over 200 million yuan in introducing advanced environmental protection technologies and equipment, achieving compliance with national and local environmental standards[45]. Market and Industry Trends - The main business focuses on the research, production, and sales of eco-functional polyurethane synthetic leather and polyurethane resin, with a growing market demand for eco-friendly products[25]. - The domestic synthetic leather industry is experiencing a shift towards eco-functional polyurethane synthetic leather, driven by stricter environmental regulations and consumer preferences[31]. - Future growth in the synthetic leather industry is expected to focus on quality improvement rather than quantity, with an emphasis on technological advancements and product differentiation[33]. - The market for eco-functional polyurethane synthetic leather is projected to grow significantly, driven by its multifunctional and high-performance characteristics[30]. - The company aims to increase the proportion of high-value-added products, enhancing profitability and market coverage[28]. Environmental and Regulatory Compliance - The company has achieved ISO14001 environmental management system certification and is recognized as a "National Green Factory" by the Ministry of Industry and Information Technology[114]. - The company has established various environmental protection systems, including advanced wastewater treatment and waste recycling systems, to comply with national standards[113]. - The company has invested in clean energy technology upgrades, replacing coal-fired boilers with gas boilers, which may increase operational costs[118]. - The company has implemented a "coal-to-gas" project with an investment of over 45 million yuan, replacing coal boilers with 8 natural gas boilers to improve energy efficiency and reduce emissions[189]. - The company has developed eco-friendly polyurethane synthetic leather products that meet international environmental standards such as REACH and RoHS[177]. Strategic Initiatives and Future Plans - The company plans to distribute a cash dividend of CNY 0.75 per 10 shares, totaling CNY 16,273,000.00 based on 216,987,000 shares[4]. - The company aims to become a global leader in polyurethane composite materials, focusing on innovation and market expansion[104]. - The company plans to enhance its product offerings by optimizing performance and cost, targeting diverse customer needs[105]. - The company will accelerate the construction of its Vietnam subsidiary, aiming for partial production line operation by the end of 2019[107]. - The company has established a joint venture in Vietnam to align with the "Belt and Road" initiative and enhance market responsiveness[200]. Risks and Challenges - The company faced risks including fluctuations in raw material prices, exchange rates, and environmental costs, which may impact future performance[4]. - The company faces risks from exchange rate fluctuations, which could impact export pricing and import costs[108]. - Changes in export tax rebate policies may adversely affect the company's profitability, with a potential reduction in the rebate rate from 17% to 13%[110]. - The company has faced challenges in market demand due to a sluggish macroeconomic environment and intense industry competition, risking underutilization of production capacity[119]. Corporate Governance and Shareholder Relations - The company has consistently ensured that minority shareholders have the opportunity to express their opinions and that their legal rights are protected[125]. - The cash dividend policy complies with the company's articles of association and shareholder resolutions[125]. - The company has fulfilled its commitments regarding avoiding competition and ensuring fair transactions during the reporting period[131]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[145]. - There are no reported violations of commitments regarding shareholder behavior, ensuring compliance with corporate governance standards[142].

Financial Performance - The company's operating revenue for 2018 was CNY 1,679,430,867.51, representing a 12.49% increase compared to CNY 1,492,956,726.98 in 2017[16] - The net profit attributable to shareholders for 2018 was CNY 23,041,603.84, a significant turnaround from a loss of CNY 16,662,937.67 in 2017, marking a 238.28% increase[16] - The net cash flow from operating activities increased by 42.37% to CNY 195,680,425.97 in 2018, up from CNY 137,445,951.77 in 2017[16] - The total assets at the end of 2018 were CNY 2,087,542,420.65, reflecting a 7.04% increase from CNY 1,950,259,435.90 at the end of 2017[16] - The basic earnings per share for 2018 was CNY 0.1062, compared to a loss of CNY 0.0768 per share in 2017, indicating a 238.28% improvement[16] - The weighted average return on equity for 2018 was 2.34%, an increase of 4.03 percentage points from -1.69% in 2017[16] - The company achieved revenue of 1,621.88 million CNY from its main product, polyurethane synthetic leather, representing a year-on-year growth of 15.41%[53] - Total revenue reached 1,679.43 million CNY, with a year-on-year increase of 12.49%[53] - The net profit attributable to shareholders was 23.04 million CNY, up 238.28% year-on-year[53] - The sales volume of the main polyurethane synthetic leather products grew by 9.93% during the reporting period[53] Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.75 per 10 shares to all shareholders, based on a total of 216,987,000 shares[4] - The cash dividend represents 100% of the total profit distribution amount[126] - The company's distributable profit for the year is RMB 302,429,764.73[126] - In 2016, the cash dividend was RMB 0.86 per 10 shares, totaling RMB 18,660,882.00, which was 31.97% of the net profit attributable to shareholders[128] - In 2017, no cash dividends were distributed, and the profit was carried forward to the next year[128] - The cash dividend for 2018 accounts for 70.63% of the consolidated net profit attributable to the company's shareholders[128] - The company is in a growth stage with significant capital expenditure plans, requiring a minimum cash dividend ratio of 20%[125] Market and Industry Trends - The main business focuses on the research, production, and sales of eco-friendly polyurethane synthetic leather, which is expected to see continued market demand growth[26] - The synthetic leather industry is experiencing a shift towards eco-friendly polyurethane products, driven by stricter environmental regulations and consumer preferences[32] - The company anticipates accelerated industry consolidation due to increasing environmental pressures, benefiting larger, more capable enterprises[33] - Future growth in the synthetic leather sector is expected to focus on quality improvements rather than volume increases, emphasizing product differentiation and high-end development[34] - The market for eco-friendly synthetic leather is projected to expand significantly, driven by its multifunctional and high-performance characteristics[32] Environmental and Sustainability Initiatives - The company has invested over 200 million yuan in advanced environmental technology and equipment, achieving compliance with national and local environmental standards[46] - The company’s eco-friendly polyurethane synthetic leather meets various international environmental standards, positioning it favorably in the market[26] - The company has achieved ISO14001 environmental management system certification and is recognized as a "National Green Factory" by the Ministry of Industry and Information Technology[113] - The company has implemented a comprehensive hazardous waste management system, ensuring compliance with national standards for waste disposal[182] - The company has established an emergency rescue team for hazardous chemicals, providing support for local emergency response efforts[184] - The company has focused on creating a clean production environment, adhering to the principles of resource utilization and environmental protection[181] Research and Development - Research and development expenses amounted to 82.08 million CNY, an increase of 1.28 million CNY compared to the previous year[54] - The company maintained a research and development personnel ratio of 15.55% in 2018, with a total of 357 R&D staff[77] - The company has established partnerships with local universities to foster innovation and provide internship opportunities for students[184] - The company is actively developing leading international TPU, water-based, and solvent-free (EPU) polyurethane synthetic leather technologies to promote a green ecological revolution in the industry[178] Operational Efficiency and Management - The company operates on a sales-driven model, with production and procurement aligned to sales demands, maintaining this model throughout the reporting period[28] - Key performance drivers include downstream market demand, raw material price fluctuations, and the company's competitive product advantages, leading to improved profitability[29] - The company implemented new internal control management systems, including energy measurement and production safety protocols, to enhance operational efficiency[63] - The company has implemented advanced production processes and safety management systems to mitigate operational risks, achieving recognition as a "Demonstration Unit for Occupational Health Basic Construction" in Anhui Province[116] Risks and Challenges - The company has identified risks related to raw material price fluctuations, exchange rate volatility, and environmental costs that may impact future performance[4] - The company recognizes the risk of exchange rate fluctuations affecting export sales and is taking measures to mitigate this risk through market expansion and product differentiation[107] - The company has faced challenges in market demand due to a sluggish macroeconomic environment and intense industry competition, risking underutilization of production capacity[118] Corporate Governance and Compliance - The company has committed to avoiding any direct or indirect competition with its own business and products, ensuring compliance from subsidiaries and affiliates[132] - The company has established a framework to ensure that its subsidiaries do not engage in any competitive activities within the market[136] - The company reported a significant change in accounting policies, aligning with the new financial reporting standards issued by the Ministry of Finance on June 15, 2018[147] - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[145] - The company has fulfilled its commitments to minority shareholders in a timely manner[144] Investments and Subsidiaries - The company established a wholly-owned subsidiary in Vietnam with a registered capital of $3 million, following a capital adjustment from $5 million[90] - The company has decided to increase capital in its subsidiary, Anli Russia, by 19 million rubles (approximately $300,000) to enhance operational strength and market competitiveness[200] - The company has not engaged in any major asset or equity sales during the reporting period[98] - The company has not reported any significant contracts or their execution status during the reporting period[164] Awards and Recognition - The company has been recognized as a "National Excellent Private Entrepreneur Caring for Employees" in 2018[175] - The company has received multiple awards for energy conservation and environmental protection from local government authorities[113] - The company has been awarded the title of "Demonstration Unit for Occupational Health Basic Construction" by the Anhui Provincial Safety Supervision Bureau[181]

2018 年第三季度报告 2018-057 2018 年 10 月 1 安徽安利材料科技股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 安徽安利材料科技股份有限公司 2018 年第三季度报告全文 安徽安利材料科技股份有限公司 公司负责人姚和平、主管会计工作负责人陈薇薇及会计机构负责人(会计主 管人员)陈薇薇声明：保证季度报告中财务报表的真实、准确、完整。 2 安徽安利材料科技股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,003,776,073.81 | 1,950,259,435.90 | | 2.74% | | 归属于上市公司股东的净 ...

Financial Performance - Total revenue for the first half of 2018 was CNY 787,846,415.58, representing a 14.08% increase compared to CNY 690,603,431.11 in the same period last year[18]. - Net profit attributable to shareholders was a loss of CNY 13,047,446.75, a decline of 529.34% from a profit of CNY 3,038,985.57 in the previous year[18]. - The net cash flow from operating activities was a negative CNY 28,763,086.79, worsening by 217.48% compared to a negative CNY 9,059,846.35 in the same period last year[18]. - Basic earnings per share decreased to -CNY 0.0601 from CNY 0.0140, reflecting a decline of 529.29%[18]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the first half of 2018, representing a year-on-year growth of 15%[109]. - The net profit for the period was -¥13,787,893.23, a decrease of 468.27% compared to a net profit of ¥3,744,006.17 in the same period last year[60]. - The company reported a total comprehensive income for the first half of 2018 was a loss of CNY 13,867,522.87, compared to a profit of CNY 3,744,006.17 in the same period of 2017[195]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,966,338,253.15, a slight increase of 0.82% from CNY 1,950,259,435.90 at the end of the previous year[18]. - Current liabilities rose to CNY 762,333,389.63, compared to CNY 716,877,546.79, indicating an increase of about 6.3%[186]. - The company's total liabilities amounted to CNY 940,644,796.16, up from CNY 907,396,469.42, marking an increase of approximately 3.3%[186]. - Cash and cash equivalents decreased to CNY 198,185,387.14 from CNY 228,678,965.38, a reduction of approximately 13.3%[189]. - Accounts receivable increased significantly to ¥169,185,131.62 from ¥121,078,486.62, marking an increase of about 39.8%[184]. - Inventory rose to ¥311,036,037.97 from ¥274,899,141.38, indicating an increase of approximately 13.1%[184]. Investment and R&D - The company has committed to investing 100 million CNY in R&D for new technologies over the next two years[110]. - Research and development expenses amounted to ¥43,035,446.39, a decrease of 5.64% from ¥45,608,259.17 in the previous year[58]. - The company has invested a total of 40 million yuan in clean energy technology transformation, upgrading its power system by replacing coal-fired boilers with gas boilers, completed by the end of 2017[98]. - The company is advancing the "Ecological Functional Polyurethane Synthetic Leather Comprehensive Upgrade Project," expected to be completed in the first half of 2019[55]. Market Position and Strategy - The company specializes in the research, production, and sales of eco-friendly polyurethane synthetic leather, with a production capacity of 80 million meters annually, making it the largest in China in this sector[38]. - The demand for eco-friendly polyurethane synthetic leather is expected to continue growing due to rising consumer awareness and environmental concerns, positioning it as a mainstream product in the synthetic leather industry[26]. - The company is positioned to benefit from industry consolidation as smaller firms struggle with stricter environmental regulations[33]. - The company aims to enhance its market position by developing differentiated products and expanding its domestic market presence to reduce reliance on exports[88]. - The company is expanding its market presence, targeting a 25% increase in market share in the Asia-Pacific region by 2019[113]. Risks and Challenges - The company faced risks including exchange rate fluctuations, changes in export tax rebate policies, and rising raw material prices[4]. - The synthetic leather industry is facing downward pressure due to rising costs and weak market demand, leading to a phase of deep adjustment[35]. - The company faces risks from exchange rate fluctuations, particularly due to its significant export business and reliance on imported raw materials, which could impact sales prices and costs[88]. - Raw material costs account for over 60% of the company's main business costs, with significant price volatility linked to petroleum derivatives affecting profitability[91]. - The company is exposed to safety production risks due to the nature of its operations, which involve chemical products and potential hazards[97]. Environmental and Compliance - The company has implemented various environmental protection measures and has received multiple certifications, including ISO14001, to ensure compliance with environmental standards[94]. - The company has been recognized as a "National Green Factory" and a "Clean Production Demonstration Enterprise" by the Anhui Provincial Economic and Information Commission[151]. - The company reported a total discharge of 5.1 tons of chemical oxygen demand, which is compliant with local discharge standards[143]. - The ammonia nitrogen discharge was reported at 0.06 tons, also meeting the required standards[143]. Corporate Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[123]. - The company reported no significant related party transactions during the reporting period, including daily operational transactions and asset acquisitions[128][129]. - The company has established mutual guarantee relationships with its subsidiary, providing guarantees for financing credit, with a total guarantee amount of 5,500 million RMB[132]. - The company's half-year financial report has not been audited[121].

Financial Performance - The company's operating revenue for 2017 was CNY 1,492,956,726.98, an increase of 6.27% compared to CNY 1,404,880,336.69 in 2016[16]. - The net profit attributable to shareholders was a loss of CNY 16,662,937.67, representing a decrease of 128.54% from a profit of CNY 58,379,058.30 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 30,564,977.81, down 175.34% from a profit of CNY 40,571,092.04 in 2016[16]. - The net cash flow from operating activities was CNY 137,445,951.77, a decrease of 19.52% compared to CNY 170,784,518.57 in 2016[16]. - The total assets at the end of 2017 were CNY 1,950,259,435.90, an increase of 1.52% from CNY 1,921,107,115.77 at the end of 2016[16]. - The net assets attributable to shareholders decreased by 3.43% to CNY 972,410,903.19 from CNY 1,006,898,674.90 in 2016[16]. - The basic earnings per share for 2017 was -CNY 0.0768, a decline of 128.55% from CNY 0.2690 in 2016[16]. - The weighted average return on net assets was -1.69%, down 7.61% from 5.92% in the previous year[16]. Business Operations - The company’s main business focuses on the research, production, and sales of high-end polyurethane synthetic leather composite materials, with a strong emphasis on eco-functional polyurethane synthetic leather[26]. - The company operates on a sales-driven model, with production and procurement aligned with sales demands, which has remained unchanged during the reporting period[28]. - Key performance drivers include downstream market demand, fluctuations in raw material and energy prices, and exchange rate volatility, which have negatively impacted the company's operating performance[29]. - The synthetic leather industry is experiencing a shift towards eco-functional polyurethane synthetic leather, encouraged by national policies and increasing environmental regulations[32]. - The company’s ecological polyurethane synthetic leather is expected to grow at a rate surpassing the industry average, indicating a promising market outlook[32]. - The company has an annual production capacity of 80 million meters of polyurethane synthetic leather, making it the largest enterprise in China specializing in ecological functional polyurethane synthetic leather production[35]. Research and Development - The company invested 80.80 million yuan in R&D, an increase of 2.43 million yuan year-on-year, focusing on product and process innovation[47]. - The company applied for 85 new patents in 2017, with a total of 310 patents held, making it the industry leader in patent ownership[51]. - The company has invested over 100 million yuan in advanced environmental protection technologies and equipment, achieving environmental indicators that meet or exceed national and local regulations[42]. - The company has established an ecological functional polyurethane composite materials industry innovation strategic alliance with local universities and research institutes to enhance technological innovation[159]. Environmental Commitment - The company has achieved various environmental certifications, including ISO14001 and "China Eco Synthetic Leather" certification, demonstrating its commitment to environmental protection[103]. - The company has established advanced environmental treatment systems to comply with national standards, ensuring that major pollutants are within regulatory limits[102]. - The company has implemented a comprehensive hazardous waste management system, ensuring compliance with national standards for hazardous waste storage and disposal[158]. - The company has been recognized as a national-level "green factory" and has received multiple awards for energy conservation and environmental protection from local government[166]. Market Strategy - The company is focusing on expanding its market presence through new product development and technological advancements[1]. - The company aims to enhance its production capabilities with ongoing investments in synthetic leather technology[1]. - The projected revenue growth for the upcoming year is expected to be driven by increased demand in the synthetic leather market[1]. - The company is exploring potential mergers and acquisitions to strengthen its market position[1]. Shareholder and Governance - The company plans to distribute no cash dividends and no bonus shares for the year[4]. - The company has maintained a consistent dividend distribution policy over the past three years, despite the loss in 2017[117]. - The company’s independent directors have fulfilled their responsibilities in the dividend decision-making process[115]. - The company has established a fair trading commitment, adhering to market rules and general business principles during commercial interactions[120]. Financial Management - The company has optimized its loan structure, resulting in a 307.27% increase in long-term borrowings compared to the beginning of the period[37]. - The company reported a total investment of 93,614,503.12 yuan during the reporting period, an 18.17% decrease from 114,394,348.56 yuan in the previous year[81]. - The company has not engaged in any significant related party transactions during the reporting period[135]. - The company has not reported any changes in its asset and liability structure during the reporting period[183]. Risk Factors - The company faces risks related to raw material price fluctuations and increased costs for environmental protection and clean energy[4]. - The company may face increased operational costs due to the transition to clean energy and potential supply shortages of natural gas during peak usage seasons[108]. - The company faces risks related to the inability to timely digest production capacity due to a sluggish macroeconomic environment and weak downstream demand[109].

Financial Performance - Total revenue for Q1 2018 was ¥368,627,832.81, an increase of 12.15% compared to ¥328,683,149.02 in the same period last year[7] - Net profit attributable to shareholders was -¥9,130,446.16, a decrease of 702.86% from ¥1,514,532.87 in the previous year[7] - Basic and diluted earnings per share were both -¥0.0421, a decline of 701.43% from ¥0.0070 in the previous year[7] - The company reported a net loss of 10.12 million CNY for the first quarter, a decline of 649.51% compared to a profit of 1.84 million CNY in the same period last year[17] - The total profit for the period was -8.32 million CNY, a decrease of 274.82% from the previous year[17] - The net profit for Q1 2018 was a loss of CNY 9,563,080.47, compared to a profit of CNY 374,379.42 in Q1 2017, indicating a significant decline in profitability[57] Cash Flow and Liquidity - Net cash flow from operating activities was -¥45,624,837.39, showing an improvement of 12.72% compared to -¥52,274,333.11 in the same period last year[7] - The company's cash and cash equivalents decreased significantly, impacting liquidity and operational flexibility[54] - The company reported a total cash and cash equivalents balance of CNY 271,813,540.22 at the end of Q1 2018, down from CNY 286,544,607.30 at the beginning of the period[61] - The cash outflow for repaying debts was 100,500,000.00 CNY, significantly higher than 51,500,000.00 CNY in the previous year[65] - The cash outflow for taxes paid was 8,511,027.31 CNY, compared to 10,064,329.65 CNY in the same period last year[64] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,000,294,286.76, an increase of 2.57% from ¥1,950,259,435.90 at the end of the previous year[7] - Total liabilities reached CNY 970,685,074.23, up from CNY 907,396,469.42, indicating an increase of approximately 6.9%[46] - The company's total equity decreased to CNY 1,029,609,212.53 from CNY 1,042,862,966.48, reflecting a decline of about 1.3%[47] Operational Challenges - The company faces risks related to fluctuations in raw material prices and increased costs associated with environmental protection and clean energy[9] - The gross profit margin decreased significantly due to rising prices of raw materials and energy, leading to increased costs[17] - The company faces potential challenges in market demand due to a sluggish macroeconomic environment and intense industry competition, risking underutilization of production capacity[33] Investments and Future Plans - The company is investing 40 million CNY in clean energy technology upgrades to replace coal boilers with gas boilers due to environmental regulations[31] - The company is planning to start construction of its subsidiary in Vietnam in the second half of 2018[24] - The "Ecological Functional Polyurethane Synthetic Leather Comprehensive Upgrade Project" is progressing and is expected to be completed by the end of 2018[24] Shareholder and Governance Practices - The company has established a long-term commitment to fair trading practices, ensuring that any related transactions are conducted in accordance with market rules and general commercial principles[37] - The company has a strict adherence to shareholder behavior norms, ensuring that major decisions are made solely by the shareholders' meeting and board of directors[38] - The company has committed to maintaining the integrity of its financial obligations and ensuring that all shareholders act in good faith[37]

Financial Performance - The company's operating revenue for 2017 was CNY 1,492,956,726.98, representing a 6.27% increase compared to CNY 1,404,880,336.69 in 2016[16]. - The net profit attributable to shareholders was a loss of CNY 16,662,937.67, a decrease of 128.54% from a profit of CNY 58,379,058.30 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 30,564,977.81, down 175.34% from CNY 40,571,092.04 in 2016[16]. - The net cash flow from operating activities was CNY 137,445,951.77, a decrease of 19.52% from CNY 170,784,518.57 in the previous year[16]. - The total profit for the year was -24.91 million yuan, a year-on-year decrease of 135.96%, while the net profit attributable to shareholders was -16.66 million yuan, down 128.54%[46]. - The gross profit margin for the synthetic leather industry was 17.99%, a decrease of 5.36% compared to the previous year[65]. Assets and Liabilities - The total assets at the end of 2017 were CNY 1,950,259,435.90, an increase of 1.52% from CNY 1,921,107,115.77 at the end of 2016[16]. - The net assets attributable to shareholders decreased by 3.43% to CNY 972,410,903.19 from CNY 1,006,898,674.90 in 2016[16]. - The company's long-term borrowings increased by 307.27% compared to the beginning of the period, indicating a strategic shift towards optimizing its loan structure[37]. - Short-term borrowings rose to 306,883,476.40 yuan, accounting for 15.74% of total liabilities, an increase from 14.84% the previous year[79]. - Long-term borrowings increased significantly to 112,000,000.00 yuan, representing 5.74% of total liabilities, up from 1.43% the previous year[79]. Market and Industry Trends - The synthetic leather industry is experiencing a shift towards eco-friendly polyurethane synthetic leather, driven by stricter environmental regulations and consumer preferences[30][32]. - The company anticipates continued growth in demand for eco-friendly polyurethane synthetic leather, which is becoming a mainstream product in the synthetic leather market[27][32]. - Key performance drivers include downstream market demand, fluctuations in raw material and energy prices, and exchange rate volatility, which negatively impacted the company's performance due to rising costs[29]. - The industry is facing consolidation due to increased environmental pressures, leading to the elimination of outdated production capacities and a shift of resources towards stronger companies[32]. Research and Development - The company invested 80.80 million yuan in R&D, an increase of 2.43 million yuan compared to the previous year, focusing on product and process innovation[50]. - The company applied for 85 new patents in 2017, with a total of 310 patents held by the end of the reporting period, making it the industry leader in patent ownership[51]. - The company has invested over 100 million yuan in advanced environmental protection technologies and equipment, achieving environmental indicators that meet or exceed national and local regulations[42]. Environmental and Safety Initiatives - The company has implemented various environmental protection measures and has received multiple certifications, including ISO14001 and recognition as a national-level "green factory"[104]. - The company achieved dust removal and desulfurization efficiencies of over 90% and 80% respectively through advanced multi-stage dual-alkali and limestone gypsum methods[161]. - The company has established advanced safety management systems and has been recognized as a model for safety culture in Anhui Province[107]. Shareholder Returns and Dividends - The company plans to distribute no cash dividends and no bonus shares for the year, indicating a conservative approach to shareholder returns amid financial losses[4]. - For the 2017 fiscal year, the company reported a loss and proposed no cash dividends, no stock bonuses, and no capital reserve transfers, with undistributed profits carried forward[117]. - The cash dividend for 2016 represented 31.97% of the net profit attributable to shareholders, while the 2017 cash dividend was 0% due to losses[119]. Strategic Partnerships and Acquisitions - The company expanded its international presence by acquiring 51% of ANLI RUS, LLC for up to 2.1 million USD and establishing a joint venture in Vietnam with a registered capital of 5 million USD[49]. - The company aims to enhance its market response speed and customer service efficiency to expand international brand cooperation and product sales[93]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the industry[121]. Management and Governance - The company has a diverse board with members holding various professional qualifications, including registered accountants and legal advisors, enhancing governance[197]. - The management team includes experienced professionals with backgrounds in engineering and economics, contributing to strategic decision-making[197]. - The company has maintained a stable shareholding structure, promoting long-term stable development and sustainable operations[124]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion CNY[123]. - The overall strategic goal for 2018 is to enhance the company's comprehensive strength and strive to become a global leader in the polyurethane composite materials industry[96]. - The company aims to implement a comprehensive upgrade project for water-based and solvent-free ecological functional polyurethane synthetic leather in 2018[100].

Financial Performance - Operating revenue for the reporting period was ¥405,804,017.52, representing a year-on-year increase of 14.07%[8] - Net profit attributable to shareholders was -¥5,898,901.00, a decrease of 140.11% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥8,243,567.59, a decline of 196.14% year-on-year[8] - The basic earnings per share for the reporting period was -¥0.0272, down 140.12% from the previous year[8] - The weighted average return on net assets was -0.59%, a decrease of 139.60% compared to the previous year[8] - Operating profit decreased by 118.15% to -¥7,298,719.17, attributed to a significant rise in raw material prices outpacing revenue growth[16] - Net profit fell by 102.92% to -¥1,537,457.27, mainly due to the decline in operating profit[16] - The net profit for the third quarter was a loss of CNY 5,281,463.44, a significant decline from a profit of CNY 15,978,555.71 in the same quarter last year[45] - The total profit for the third quarter was a loss of CNY 4,774,376.61, compared to a profit of CNY 17,181,519.44 in the previous year[45] - The net profit for the current period was CNY -1,537,457.27, a significant decrease from CNY 52,734,247.51 in the previous period, indicating a decline of approximately 102.91%[53] - The total profit for the current period was CNY 1,861,419.12, down from CNY 56,715,147.73 in the previous period, reflecting a decrease of approximately 96.71%[53] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥21,554,721.61, down 61.83% compared to the same period last year[8] - Cash flow from operating activities decreased by 61.83% to ¥21,554,721.61, primarily due to an increase in accounts receivable and a reduction in government subsidies received[17] - The cash flow from operating activities generated a net cash inflow of CNY 21,554,721.61, down from CNY 56,469,195.58 in the previous period, a decrease of approximately 61.83%[59] - The net cash flow from operating activities for the third quarter was ¥35,561,252.64, a decrease of 49.7% compared to ¥70,659,442.78 in the previous period[61] - The total cash inflow from operating activities was ¥1,276,583,814.29, compared to ¥1,202,090,447.49 in the previous period, indicating a growth of 6.2%[61] - The cash flow from investment activities was negative at -¥55,293,628.47, an improvement from -¥87,819,466.82 in the previous period[61] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,956,037,404.45, an increase of 1.82% compared to the end of the previous year[8] - Accounts receivable increased by 36.38% to ¥158,829,115.91 due to expanded sales and an increase in brand and direct sales customers[16] - Short-term borrowings rose by 70.18% to ¥485,000,000.00 primarily due to increased bank financing during the reporting period[16] - The total liabilities increased to CNY 915,315,666.20 from CNY 857,133,609.96, representing a rise of 6.77%[37] - The owner's equity totaled CNY 1,040,721,738.25, down from CNY 1,063,973,505.81, showing a decrease of 2.18%[38] - The total current assets reached approximately 809.44 million RMB, up from 747.32 million RMB at the beginning of the period[35] Investments and Projects - The company plans to invest up to $2.1 million to acquire 51% of ANLI RUS, LLC in Russia, with the acquisition currently pending government approval[20] - A joint venture company, ANLI (VIETNAM) FREECODE MATERIAL TECHNOLOGY CO., LTD., is being established in Vietnam with a registered capital of $5 million, where the company will contribute $3 million[22] - The company plans to invest approximately 80 million RMB in a clean energy technology transformation project, including the replacement of coal boilers with natural gas boilers[24] - The company has signed contracts for the procurement of natural gas boilers and related infrastructure, with plans to complete the "coal-to-gas" upgrade by the end of the year[24] Market Conditions and Challenges - The company reported a foreign exchange loss of 13.28 million RMB due to fluctuations in the RMB/USD exchange rate, impacting its export business[28] - The company has experienced a 30%-50% increase in chemical material prices and a 50% rise in energy prices since 2017, impacting profitability[28] - The company reported a 6.58% increase in operating revenue for the first three quarters of 2017, but expects a significant decline in cumulative net profit compared to the previous year due to market downturns and rising material costs[28] Research and Development - Research and development expenses increased by 426.8 thousand RMB compared to the previous year, reflecting the company's commitment to product development[29] - The company is actively advancing the construction of the ecological functional polyurethane synthetic leather upgrade project on approximately 35 acres of land[25] Financial Ratios and Metrics - The total operating costs amounted to CNY 413,462,627.34, up from CNY 345,903,327.44, reflecting a year-over-year increase of 19.5%[43] - The total operating expenses for the year-to-date period reached CNY 1,105,078,167.80, up from CNY 990,006,825.96 in the previous year, reflecting an increase of approximately 11.6%[50] - The financial expenses for the third quarter were CNY 14,360,136.48, significantly higher than CNY 4,617,295.07 in the previous year, indicating an increase of approximately 210.5%[48]

Financial Performance - Total revenue for the first half of 2017 was CNY 690,603,431.11, an increase of 2.61% compared to CNY 673,004,941.18 in the same period last year[19]. - Net profit attributable to shareholders decreased by 90.92% to CNY 3,038,985.57 from CNY 33,479,965.23 year-on-year[19]. - The net cash flow from operating activities was negative at CNY -9,059,846.35, a decline of 161.39% compared to CNY 14,757,477.69 in the previous year[19]. - Basic earnings per share dropped by 90.93% to CNY 0.0140 from CNY 0.1543 in the same period last year[19]. - The total profit was CNY 6.64 million, a year-on-year decrease of 83.21%[40]. - The net profit attributable to shareholders was CNY 3.04 million, a year-on-year decrease of 90.92%[40]. - The gross profit margin for ecological functional synthetic leather was 21.83%, a decrease of 3.50% year-on-year[49]. - The net profit for the first half of 2017 was CNY 3,744,006.17, a significant decrease from CNY 36,755,691.80 in the previous year, reflecting a decline of approximately 89.8%[155]. - The total profit for the current period is CNY 9,858,498.10, down from CNY 36,635,299.80 in the previous period, indicating a decrease of about 73%[158]. Assets and Liabilities - Total assets increased by 3.56% to CNY 1,989,541,077.25 from CNY 1,921,107,115.77 at the end of the previous year[19]. - The total assets at the end of the reporting period amounted to CNY 1,875,072,829.73, up from CNY 1,800,832,432.17 at the beginning of the period, indicating an increase of about 4.1%[152]. - The company's total liabilities reached RMB 943,925,650.22, compared to RMB 857,133,609.96 at the beginning of the period, indicating an increase of approximately 10.1%[147]. - The total liabilities at the end of the reporting period were CNY 915,316,288.13, an increase from CNY 829,847,433.15, which is an increase of about 10.3%[152]. - The company's total equity at the end of the period was 970,984,900, with a capital reserve of 364,998,200[177]. Cash Flow - The cash flow from financing activities increased by 67.73% to CNY 98.45 million, mainly due to increased bank borrowings[46]. - The cash and cash equivalents net increase was CNY 36.30 million, a significant increase of 7,672.45% compared to the previous year[46]. - The cash inflow from operating activities shows a net outflow of CNY 9,059,846.35, compared to a net inflow of CNY 14,757,477.69 in the previous period[163]. - The cash and cash equivalents at the end of the period amount to CNY 326,934,649.60, an increase from CNY 271,420,058.74 at the end of the previous period[164]. - The net cash flow from investment activities was -45,997,035.47 CNY, a decrease from -67,324,286.96 CNY in the previous period[167]. Business Operations - The main business remains focused on the R&D, production, and sales of high-end polyurethane synthetic leather composite materials[26]. - The company faces risks related to raw material price fluctuations and environmental compliance costs[5]. - The company's operating model remains unchanged, focusing on sales-driven production and order fulfillment[27]. - The company has a production capacity of 80 million meters of polyurethane synthetic leather, making it the largest in China[31]. - The company is engaged in the production of polyurethane resins and synthetic leather, with a focus on high-performance composite materials[65]. Research and Development - Research and development expenses increased by CNY 3.81 million, up 9.12% compared to the previous year[40]. - The company holds 267 patents, including 57 invention patents, and has participated in setting 46 national and industry standards[32]. - The company added 17 new patents, including 6 invention patents and 11 utility model patents during the reporting period[42]. Environmental and Compliance - The company has invested over 100 million yuan in advanced environmental technology and equipment to meet or exceed regulatory standards[35]. - The company has invested approximately 30 million yuan in environmental protection projects, ensuring compliance with national standards and receiving multiple environmental certifications[70]. - The company is committed to complying with local environmental regulations by implementing clean energy solutions in its operations[119]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The actual controller and shareholders have fulfilled their commitments regarding stock transfer restrictions and voluntary lock-up of shares since the company's initial public offering[80]. - The company has maintained a commitment to integrity towards the company and other shareholders, ensuring accountability in its operations[84]. - The company has a long-term commitment to ensure that subsidiaries with over 50% ownership comply with the established commitments[84]. - The company has not encountered any violations of commitments during the reporting period, indicating strong governance and compliance[81]. Market Expansion - The company plans to acquire 51% of Russian company ANLI RUS, LLC for up to USD 2.1 million to expand its market presence[41]. - The company is focusing on expanding its brand influence and market share through high-performance, multifunctional eco-friendly products[117]. - The company has implemented overseas mergers and acquisitions to enhance its development momentum and achieve sustainable growth[39]. Employee Engagement - The company is actively implementing a second employee stock ownership plan to enhance employee motivation and align interests with shareholders[43]. - The company established a management committee for the second employee stock ownership plan, with 7 members elected[98]. - As of July 21, 2017, the employee stock ownership plan had purchased 3,775,701 shares, accounting for 1.74% of the total share capital, with a total transaction amount of RMB 39,145,837.91[98].