江门市科恒实业股份有限公司 2020 年第一季度报告全文 江门市科恒实业股份有限公司 2020 年第一季度报告 2020 年 04 月 1 江门市科恒实业股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人万国江、主管会计工作负责人李树生及会计机构负责人(会计主 管人员)马丽琴声明：保证季度报告中财务报表的真实、准确、完整。 2 江门市科恒实业股份有限公司 2020 年第一季度报告全文 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 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 266,700,655.14 | 382,146,415.26 | -30.21% | | 归属于上市公司股东的净利润（元） | 8,133,024.63 | 22 ...

Financial Performance - Operating revenue for the period was CNY 456,611,448.11, a decline of 0.86% year-on-year, and a significant drop of 22.21% year-to-date[7] - Net profit attributable to shareholders was a loss of CNY 4,720,591.15, representing a decrease of 134.15% compared to the same period last year[7] - Basic and diluted earnings per share were both CNY -0.0223, down 134.20% year-on-year[7] - Total operating revenue for the current period is ¥456,611,448.11, a decrease of 0.2% from ¥460,555,574.63 in the previous period[36] - Net profit for the current period is a loss of ¥4,802,108.99, compared to a profit of ¥13,795,234.05 in the previous period[37] - The company reported a net profit of CNY 20,075,809.41 for the first nine months of 2019, down 60.83% from CNY 51,258,655.42 in the same period of 2018, mainly due to fluctuations in raw material prices[18] - The total profit for the period was ¥24,269,624.81, down 53.8% from ¥52,559,137.66 in the prior year[45] Cash Flow - The net cash flow from operating activities increased by 242.52% year-to-date, totaling CNY 183,968,232.86[7] - Operating cash inflow for the current period was CNY 1,146,065,403.86, a decrease of 7.1% compared to CNY 1,234,429,063.05 in the previous period[52] - Net cash flow from operating activities was CNY 183,968,232.86, a significant improvement from a negative CNY 129,080,677.49 in the previous period[54] - Cash inflow from investment activities totaled CNY 11,002,240.00, compared to CNY 2,040,150.00 in the previous period, indicating a substantial increase[54] - Cash inflow from sales of goods and services for the parent company was CNY 592,378,506.66, a decrease from CNY 880,814,595.07 in the previous period[56] Assets and Liabilities - Total assets decreased by 3.54% to CNY 3,486,762,285.85 compared to the end of the previous year[7] - Total liabilities decreased from CNY 2,179,669,342.36 to CNY 2,039,806,805.32, a decline of approximately 6.4%[28] - Current liabilities decreased from CNY 1,892,580,353.63 to CNY 1,803,539,222.50, a reduction of about 4.7%[28] - Short-term borrowings decreased significantly from CNY 413,410,000.00 to CNY 271,460,000.00, a decrease of approximately 34.2%[27] - Owner's equity increased from CNY 1,434,879,968.91 to CNY 1,446,955,480.53, an increase of about 0.8%[29] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,069[11] - The largest shareholder, Wan Guojiang, holds 19.14% of the shares, with 32,108,023 shares pledged[11] - There were no significant changes in the number of restricted shares during the reporting period[14] Investment and R&D - Research and development expenses increased to ¥27,803,664.49, up 55% from ¥17,937,705.30 in the previous period[36] - The company reported an investment loss of ¥134,245.12, an improvement from a loss of ¥297,110.47 in the previous period[36] - The company incurred a loss of CNY 2,159,986.81 from investments, a decline of 232.64% compared to a profit of CNY 1,628,443.67 in the previous year, mainly due to losses from an associate company[18] Government Support - The company received government subsidies amounting to CNY 18,995,239.73 during the reporting period[8] Comprehensive Income - Other comprehensive income after tax for the current period is ¥7,366,995.84, compared to a loss of ¥3,004,151.65 in the previous period[38] - Other comprehensive income after tax increased by 140.70% to CNY 4,261,719.98, driven by an increase in the fair value of equity holdings[18]

Financial Performance - Operating revenue for the reporting period was CNY 456,611,448.11, down 0.86% year-on-year, while revenue for the year-to-date was CNY 1,280,086,750.64, a decrease of 22.21% compared to the same period last year[7]. - Net profit attributable to shareholders was a loss of CNY 4,720,591.15, a decline of 134.15% year-on-year, with year-to-date net profit at CNY 20,396,749.99, down 59.93%[7]. - Basic and diluted earnings per share were both CNY -0.0223, a decrease of 134.20% year-on-year, with year-to-date earnings per share at CNY 0.0961, down 59.96%[7]. - Total operating revenue for the current period is ¥456,611,448.11, a decrease of 0.2% from ¥460,555,574.63 in the previous period[37]. - Net profit for the current period is a loss of ¥4,802,108.99, compared to a profit of ¥13,795,234.05 in the previous period[38]. - The company’s total profit for the current period is a loss of ¥5,299,358.54, compared to a profit of ¥13,857,706.34 in the previous period[38]. - Total operating revenue for the period was ¥1,280,086,750.64, a decrease of 22.2% compared to ¥1,645,511,448.27 in the previous period[44]. - Net profit for the period was ¥20,075,809.41, a decline of 60.9% from ¥51,258,655.42 in the same period last year[46]. Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 183,968,232.86, an increase of 242.52% compared to the same period last year[7]. - Cash flow from operating activities improved significantly to CNY 183,968,232.86, a 242.52% increase compared to a negative cash flow of CNY -129,080,677.49 in the same period of 2018, due to enhanced collection of accounts receivable[18]. - Total cash inflow from operating activities amounted to ¥1,146,065,403.86, while cash outflow was ¥962,097,171.00, resulting in a net cash inflow[54]. - The company reported a net cash outflow from investing activities of -¥19,337,401.48, compared to -¥176,221,519.84 in the previous period[55]. - Cash inflow from financing activities was ¥240,860,220.00, while cash outflow was ¥471,489,111.29, leading to a net cash outflow of -¥230,628,891.29[55]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,486,915,195.18, a decrease of 3.53% compared to the end of the previous year[7]. - The company’s cash and cash equivalents decreased by 32.88% to CNY 239,433,026.83 from CNY 356,704,819.24, primarily due to repayment of bank loans[27]. - Total liabilities decreased from CNY 2,179,669,342.36 to CNY 2,039,806,805.32, a decline of approximately 6.4%[29]. - Current liabilities decreased from CNY 1,892,580,353.63 to CNY 1,803,539,222.50, a reduction of about 4.7%[29]. - Short-term borrowings decreased significantly from CNY 413,410,000.00 to CNY 271,460,000.00, a decrease of approximately 34.2%[29]. - The company reported a decrease in available-for-sale financial assets by CNY 128,878,530.04 due to the implementation of new financial instrument standards[64]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,069[11]. - The largest shareholder, Wang Guojiang, held 19.14% of the shares, with 40,605,300 shares pledged[11]. - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12]. Other Income and Expenses - The company reported non-operating income of CNY 15,966,024.92, primarily from government subsidies and other income[8]. - The company reported a significant increase in other income, which rose by 83.73% to CNY 26,983,444.73, attributed to higher government subsidies compared to the previous year[18]. - The company faced a 222.48% increase in income tax expenses, amounting to CNY 4,193,815.40, due to a change in tax rate from 15% to 25% after the cancellation of high-tech enterprise status for a subsidiary[18]. Research and Development - Research and development expenses increased to ¥27,803,664.49, up 54.9% from ¥17,937,705.30 in the previous period[37]. - Research and development expenses were ¥65,975,194.78, slightly decreased from ¥68,437,297.06 in the prior period[44]. Comprehensive Income - Other comprehensive income after tax for the current period is ¥7,366,995.84, compared to a loss of ¥3,004,151.65 in the previous period[39]. - Comprehensive income totaled ¥24,337,529.39, down from ¥40,788,753.62 in the previous period[47].

Financial Performance - The company's operating revenue for 2018 was ¥2,202,287,833.99, representing a 6.88% increase compared to ¥2,060,599,656.75 in 2017[22]. - The net profit attributable to shareholders decreased by 54.98% to ¥53,489,228.83 in 2018 from ¥118,804,280.66 in 2017[22]. - The net profit after deducting non-recurring gains and losses was ¥42,776,079.21, down 56.55% from ¥98,455,676.84 in the previous year[22]. - The net cash flow from operating activities improved significantly to ¥41,619,765.03, a 141.72% increase from -¥99,758,954.57 in 2017[22]. - The total assets at the end of 2018 were ¥3,614,549,311.27, a 4.93% increase from ¥3,444,812,382.57 at the end of 2017[22]. - The net assets attributable to shareholders increased by 1.09% to ¥1,432,886,332.98 at the end of 2018 from ¥1,417,460,366.48 at the end of 2017[22]. - The basic earnings per share decreased by 54.98% to ¥0.2521 in 2018 from ¥0.5600 in 2017[22]. - The weighted average return on equity was 3.75% in 2018, down from 8.77% in 2017[22]. - The company reported a total of ¥10,713,149.62 in non-recurring gains and losses for 2018, compared to ¥20,348,603.82 in 2017[28]. - The company experienced a significant decline in net profit in the fourth quarter, with only ¥2,583,403.81 attributable to shareholders[24]. Revenue Breakdown - Revenue from lithium battery cathode materials reached ¥1,460,816,504.32, with a year-on-year increase of 17.90%[39]. - Revenue from lithium-ion battery automation production equipment was ¥596,789,159.65, showing a decline of 12.86%[39]. - Revenue from materials increased by 17.36% to ¥1,567,094,625.47, accounting for 71.16% of total revenue, while equipment revenue decreased by 12.42% to ¥635,193,208.52, making up 28.84%[44]. - Lithium-ion battery cathode materials generated ¥1,460,816,504.32 in revenue, a 17.90% increase from ¥1,238,995,153.00 in 2017, representing 66.33% of total revenue[44]. - The company reported a significant increase in export revenue, which surged by 62,499.79% to ¥44,205,079.29 from ¥70,615.38 in the previous year[44]. Research and Development - The company has increased its research and development investment to enhance high-end product offerings in the lithium battery sector, aiming to maintain a competitive edge amid rapid technological advancements[6]. - Research and development expenses rose by 3.3% to ¥94,294,152.96, representing 4.28% of total revenue, maintaining a strong focus on R&D to enhance core competitiveness[59]. - The number of R&D personnel increased to 423, accounting for 29.58% of the total workforce, reflecting the company's commitment to innovation and technology development[59]. - The company’s R&D efforts led to the mass production of high-nickel ternary materials and the introduction of new high-speed coating machines, expected to drive future revenue growth[40]. Investment and Expansion - The company is expanding its production capacity with a new 3,000 tons/year project nearing completion and a 5,000 tons/year high-nickel cathode material capacity under construction[41]. - The total investment amount for the reporting period was CNY 251,090,763.39, representing a 53.67% increase compared to CNY 163,391,082.00 in the previous year[70]. - The company has committed to invest a total of 41,546.4 million in various projects, with 38,694.5 million already invested, achieving a completion rate of 93.7%[78]. - The company has successfully completed the construction of the 800-ton rare earth phosphor expansion project, which has improved production capacity and manufacturing processes[79]. Cash Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares (including tax) based on a total of 212,144,720 shares, with no bonus shares issued[10]. - The company’s cash dividend payout ratio for the reporting period was 100% of the total distributable profit of CNY 333,191,894.24[93]. - The cash dividend amount for 2017 was 23,571,635.60, which accounted for 19.84% of the net profit attributable to ordinary shareholders[96]. - The company distributed a cash dividend of CNY 1.00 per share (including tax) to shareholders, totaling CNY 21,214,472, based on a total share capital of 212,144,720 shares[94]. Financial Management and Compliance - The company has not reported any significant equity investments during the reporting period[71]. - The company has not triggered any profit compensation obligations as per the profit commitment compensation agreement[98]. - The company has maintained compliance with all commitments and has not violated any terms as of the end of the reporting period[97]. - The company has not experienced any major litigation or arbitration matters during the reporting period[112]. - The company has not received any non-standard audit reports for the reporting period[104]. Corporate Governance - The company continues to improve its corporate governance structure in accordance with relevant laws and regulations[176]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[177]. - The company has established various specialized committees within the board, including audit and remuneration committees, led by independent directors[177]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking their compensation directly to the company's operating performance[179]. Market Position and Strategy - The company plans to enhance its market share in the new energy industry by improving product quality and adopting flexible sales strategies[88]. - The company is focused on both organic growth and external expansion strategies to enhance its overall competitiveness in the market[88]. - The company has not disclosed any new product developments or market expansion strategies in the provided documents[150]. Shareholder Information - The total number of shareholders increased to 27,212, up from 19,057 in the previous month[148]. - The largest shareholder, Wang Guojiang, holds 19.14% of shares, with a total of 40,605,300 shares, an increase of 18,046,800 shares during the reporting period[148]. - The company has commitments regarding the lock-up period for shares obtained through transactions, which will be released in three phases based on specific conditions[153].

Financial Performance - The company's revenue for 2017 reached ¥2,060,599,656.75, representing a 161.83% increase compared to ¥786,990,823.79 in 2016[22]. - Net profit attributable to shareholders was ¥118,804,280.66, a significant increase of 253.73% from ¥33,585,947.94 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥98,455,676.84, up 223.11% from ¥30,471,408.34 in 2016[22]. - The total assets of the company increased by 59.21% to ¥3,444,812,382.57 at the end of 2017, compared to ¥2,163,661,956.76 at the end of 2016[22]. - The basic earnings per share rose to ¥0.5600, a 69.24% increase from ¥0.3309 in 2016[22]. - The company reported a negative net cash flow from operating activities of ¥99,758,954.57, a decline of 5,710.13% compared to a positive cash flow of ¥1,778,192.77 in 2016[22]. - The weighted average return on equity improved to 8.77%, up from 3.96% in the previous year[22]. - The company achieved operating revenue of CNY 2,060,599,656.75, representing a year-on-year growth of 161.83%[39]. - Net profit attributable to shareholders reached CNY 118,804,280.66, with a year-on-year increase of 253.73%[39]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 2.00 per 10 shares (including tax) based on a total of 117,858,178 shares, with no bonus shares issued[9]. - For the fiscal year 2017, the company proposed a cash dividend of 2.00 per 10 shares, totaling 23,571,635.60, which represents 100% of the profit distribution[90]. - The cash dividend for 2017 accounted for 19.84% of the net profit attributable to shareholders, reflecting a commitment to returning value to investors[92]. - The company has not distributed dividends in the previous two years, highlighting a strategic shift towards profit distribution in 2017[90]. Research and Development - The company aims to enhance its research and development efforts to introduce high-end products in the power sector and keep pace with new technology advancements in the industry[7]. - The company's R&D investment reached ¥91,283,529.81 in 2017, accounting for 4.43% of total revenue, an increase from 3.40% in 2016[57]. - The number of R&D personnel increased to 309 in 2017, representing 22.97% of the total workforce, up from 16.68% in 2016[57]. - Increased investment in R&D is anticipated, focusing on breakthroughs in new product projects through independent and collaborative efforts, as well as acquisitions[87]. Market and Competition - The company is facing risks from raw material price fluctuations, particularly for cobalt and lithium, which could impact product pricing, revenue scale, and gross margin[5]. - The company acknowledges the risks associated with the rapid expansion of its business, including challenges in management and operational adjustments[9]. - The company recognizes the impact of changing policies in the new energy sector, which could adversely affect its lithium battery equipment manufacturing business[6]. - The company is actively analyzing and selecting downstream customers to mitigate the risk of bad debts due to tighter funding conditions in the industry[8]. - The company plans to enhance its market share in the new energy vehicle industry by leveraging stable product quality and flexible sales strategies[87]. Asset Management - The total assets of the company included cash and cash equivalents of ¥372,733,984.00, which increased from ¥225,640,544.90 in 2016[63]. - Accounts receivable rose to ¥820,878,521.60, representing 23.83% of total assets, up from 19.78% in 2016[63]. - Inventory increased to ¥880,320,679.80, accounting for 25.55% of total assets, compared to 20.61% in 2016[63]. - The company reported a financial expense increase of 8,207.85% to ¥13,962,889.19, attributed to higher bank loan interest expenses[55]. Corporate Governance - The company is committed to maintaining a strong governance structure to adapt to its rapid growth and mitigate management risks[9]. - The actual controller and shareholders fulfilled their commitments during the reporting period, with no violations reported[93]. - The company has maintained compliance with all commitments made during the asset restructuring process[93]. - The company has a share lock-up period of 36 months from the end of the issuance, with specific conditions for unlocking shares based on performance audits for 2016, 2017, and 2018[94]. Strategic Initiatives - The company is actively pursuing strategic initiatives, including potential mergers and acquisitions, to enhance its competitive position in the market[22]. - The company has made strategic investments, including a capital increase in Ruifuxin Pharmaceutical and investments in Guangzhou Guangzheng Keheng Medical Health Industry Partnership[40]. - The company has expanded its consolidation scope to include new subsidiaries established in 2017, enhancing its operational capacity[51]. Social Responsibility - The company participated in social welfare activities, including donations to charity events, reflecting its commitment to social responsibility[132]. - The company has engaged in various public welfare activities, including organizing employee participation in charity events[132]. Financial Obligations and Compliance - The company has committed to cash compensation for any losses incurred due to repurchase obligations arising from legal responsibilities[96]. - The company has not triggered any profit compensation obligations as per the profit commitment compensation agreement[94]. - The company has not faced any penalties or rectification situations during the reporting period[110]. Internal Control and Audit - No significant internal control deficiencies were reported during the evaluation period, indicating effective risk management[187]. - The company’s internal control evaluation covered 100% of total assets and revenue, ensuring comprehensive oversight[187]. - The audit committee held four meetings in 2017, focusing on financial reports and internal control evaluations, confirming compliance with regulations[183]. Bond Issuance and Management - The company issued a total of 100 million yuan in corporate bonds with a coupon rate of 6.20%, which were issued on December 15, 2017, and are set to mature in December 2020[192]. - The company’s long-term credit rating was assessed as AA- and the bond rating was AAA, indicating very high safety and low default risk[196]. - The company has established a special account for the use of raised funds, which is managed in accordance with relevant laws and regulations[195].

Financial Performance - The total operating revenue for the reporting period was ¥823,475,302.53, a decrease of 30.51% compared to the same period last year [25]. - The net profit attributable to shareholders was ¥25,117,341.14, down 32.26% year-on-year [25]. - The net profit after deducting non-recurring gains and losses was ¥10,148,482.90, reflecting a significant decline of 66.54% compared to the previous year [25]. - The company reported a total revenue of ¥823,475,302.53, a decrease of 30.51% year-on-year, primarily due to a significant drop in revenue from lithium-ion battery cathode materials, which generated ¥384,478,686.01, down 54.61% year-on-year [39]. - The net profit attributable to shareholders was ¥25,117,341.14, reflecting a decline of 32.26% compared to the previous year, mainly driven by the revenue drop in cathode materials [39]. - The net profit for the period was CNY 53,810,023.45, a decrease of 7.6% compared to the previous year [112]. - The total comprehensive income attributable to the parent company decreased by CNY 4,419,032.41, totaling CNY 37,183,549.97 [112]. - The company reported a decrease in other comprehensive income of 7,465,000 yuan during the current period [184]. Cash Flow and Liquidity - The net cash flow from operating activities improved to ¥117,054,681.45, a turnaround from a negative cash flow of ¥183,612,249.96 in the same period last year, representing a 163.75% increase [25]. - Cash and cash equivalents at the end of the reporting period amounted to ¥255,035,044.3, a decrease of 0.97% from ¥290,681,209.30 in the same period last year [50]. - The company’s cash flow management strategies appear to be improving, as evidenced by the positive net cash flow from operating activities in 2019 compared to the previous year [175]. - The cash flow from operating activities generated a net amount of ¥117,054,681.45, compared to a net outflow of ¥183,612,249.96 in the first half of 2018 [172]. - The ending cash and cash equivalents balance as of the end of the first half of 2019 was ¥15,665,495.74, down from ¥39,518,703.38 at the end of the first half of 2018 [176]. Research and Development - The company is committed to increasing its R&D investment to develop high-end products in the power sector and to keep pace with emerging technologies in the industry [7]. - Research and development expenses were ¥38,171,530.29, a decrease of 24.59% year-on-year, attributed to the significant drop in revenue [43]. - Research and development expenses for the first half of 2019 were CNY 38,171,530.29, down from CNY 50,621,680.84 in the previous year, a decrease of 24.5% [162]. Market and Business Strategy - The company plans to enhance its procurement, sales pricing, and inventory management strategies to mitigate the impact of raw material price fluctuations, particularly for cobalt and lithium [6]. - The company is actively pursuing mergers and acquisitions to expand its lithium battery equipment business, which poses management risks due to rapid growth in scale and complexity [10]. - The company is focusing on expanding into new markets and developing high-end consumer electronics and fuel cell equipment [75]. - The company aims to enhance its management mechanisms and recruit management talent to address risks associated with scale expansion [76]. - The company plans to actively manage risks related to raw material price fluctuations by adopting flexible procurement and pricing strategies [75]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,639,716,789.33, reflecting a slight increase of 0.70% from the end of the previous year [25]. - Total liabilities amounted to CNY 2,179,669,342.36, showing a slight increase of 0.32% from the previous period [108]. - The total amount of restricted cash at the end of the reporting period was ¥222,183,255.90, with various reasons for restrictions including bank guarantees and litigation [53]. - The company’s total assets at the end of the current period were reported at 4,491,000,000 yuan [186]. - The total liabilities of the company were reported at CNY 1,319,220.80 million, indicating a need for improved financial management [190]. Shareholder Information - The total number of shareholders at the end of the reporting period was 26,512 [123]. - The largest shareholder, Wang Guojing, holds 40,605,300 shares, representing 19.14% of total shares [123]. - The company did not issue any preferred shares during the reporting period [128]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period [130]. Compliance and Governance - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements accurately reflect its financial position and performance [198]. - The company has confirmed its ability to continue as a going concern for the next 12 months from the reporting date [199]. - The company has a strong commitment to compliance with financial reporting regulations as per the China Securities Regulatory Commission [198]. Risks and Challenges - The company acknowledges the risk of goodwill impairment following the acquisition of Haoneng Technology, which could adversely affect its financial performance if the acquired entity's operations deteriorate [11]. - The company faces risks related to the adjustment of national policies affecting the new energy vehicle industry, which could impact the investment and procurement decisions of downstream battery manufacturers [7]. - The company reported that the market demand for rare earth luminescent materials has declined significantly due to falling raw material prices and competition from LED alternatives [66].

Business Performance - The company reported a significant increase in the scale of its main business, lithium-ion battery cathode materials, and lithium battery automation equipment, driven by the rapid growth of the new energy vehicle industry [7]. - The total revenue for the reporting period was ¥823,475,302.53, a decrease of 30.51% compared to the same period last year [26]. - The net profit attributable to shareholders was ¥25,117,341.14, down 32.26% year-on-year [26]. - The net profit after deducting non-recurring gains and losses was ¥10,148,482.90, a decline of 66.54% compared to the previous year [26]. - Revenue from lithium-ion battery automation production equipment increased by 51.78% year-on-year, amounting to ¥381,343,132.80 [41]. - The company reported a total revenue of ¥823,475,302.53, a decrease of 30.51% year-on-year, primarily due to a significant drop in revenue from lithium-ion battery cathode materials, which generated ¥384,478,686.01, down 54.61% year-on-year [41]. - The net profit attributable to shareholders was ¥25,117,341.14, reflecting a decline of 32.26% compared to the previous year, mainly due to the sharp decrease in revenue from cathode materials [41]. Financial Health - The company has recognized a total bad debt provision of RMB 182,785,872.01, reflecting the competitive pressure and tightening cash flow among industry peers [9]. - The total assets at the end of the reporting period were ¥3,640,752,322.45, reflecting a slight increase of 0.70% from the end of the previous year [26]. - Cash and cash equivalents at the end of the period amounted to ¥255,035,044.36, representing 7.01% of total assets, a decrease of 0.97% compared to the previous year [53]. - Accounts receivable totaled ¥935,403,823.61, accounting for 25.69% of total assets, down 3.12% year-over-year due to enhanced collection efforts [53]. - Inventory increased to ¥916,767,765.02, making up 25.18% of total assets, an increase of 1.48% as a result of increased production to fulfill existing orders [53]. - The company has maintained a loan repayment rate of 100% [140]. - The company has no overdue debts or unfulfilled debt obligations [140]. Research and Development - The company has committed to increasing its R&D investment to develop high-end products in the power sector and keep pace with new technology advancements in the industry [7]. - The company holds a total of 148 authorized patents, including 70 invention patents and 78 utility model patents, along with 46 software copyrights, highlighting its commitment to R&D [42]. - Research and development expenses decreased by 24.59% to ¥38,171,530.29, attributed to a significant drop in revenue [46]. - The company is focusing on the development of high-nickel ternary materials and high-voltage cobalt lithium materials, which are expected to drive future revenue growth [38]. Strategic Initiatives - The company plans to enhance its procurement, sales pricing, and inventory management strategies to mitigate the impact of raw material price fluctuations on its performance [6]. - The company is actively pursuing mergers and acquisitions to expand its lithium battery equipment business, which poses management challenges due to rapid growth in personnel and operations [10]. - The company is actively pursuing mergers and acquisitions, including the acquisition of Shenzhen Yuchen Automation Equipment Co., Ltd., to enhance its strategic goals and profitability [43]. - The company is actively exploring new products and markets, focusing on high-end consumer electronics and power materials, as well as promoting fuel cell equipment and water treatment membranes [79]. Operational Challenges - The company faces risks related to goodwill impairment following its acquisition of Haoneng Technology, which could adversely affect its financial results if the acquired entity's performance deteriorates [11]. - The company emphasizes the importance of timely adjustments to its management structure to adapt to rapid business expansion and avoid potential operational risks [10]. - The company has recognized a significant impact on the expected returns from the rare earth phosphor material expansion project due to price declines in raw materials and products [66]. Market Conditions - The company is closely monitoring the impact of changing policies in the new energy vehicle sector, which could affect the investment and procurement decisions of downstream lithium battery manufacturers [7]. - The company has not declared any cash dividends or stock bonuses for the reporting period [12]. - The company has not experienced any major litigation or arbitration matters during the reporting period, reflecting a stable legal environment [89]. - The company has not engaged in any significant related-party transactions during the reporting period, ensuring transparency in operations [92]. Future Outlook - The overall financial outlook remains cautious, with management indicating potential challenges in the upcoming periods [178]. - The company plans to focus on market expansion strategies in the upcoming quarters [178]. - The company plans to focus on enhancing its market position and exploring new product development opportunities in the upcoming quarters [182].

Financial Performance - Total revenue for Q1 2019 was ¥382,146,415.26, a decrease of 37.21% compared to ¥608,602,799.70 in the same period last year[7] - Net profit attributable to shareholders was ¥22,280,393.86, down 21.48% from ¥28,375,123.68 year-on-year[7] - Net profit after deducting non-recurring gains and losses was ¥4,980,283.11, a significant decline of 82.65% from ¥28,710,138.46 in the previous year[7] - Basic earnings per share decreased to ¥0.1050, down 21.52% from ¥0.1338 in the previous year[7] - The company's total revenue for Q1 2019 was ¥382,146,415.26, a decrease of 37.21% compared to Q1 2018[15] - The net profit attributable to shareholders for Q1 2019 was ¥22,280,393.86, down 21.48% year-over-year[17] - Revenue from lithium-ion battery cathode materials fell by 54.63% to ¥179,906,408.39 in Q1 2019[17] - Revenue from lithium-ion battery automation equipment increased by 7.48% to ¥179,332,809.47 in Q1 2019[17] - The company reported a net profit of CNY 191,853,426.90, up from CNY 190,164,779.08, a slight increase of 0.89%[41] - Total operating revenue decreased to ¥382,146,415.26 from ¥608,602,799.70, representing a decline of approximately 37.1% year-over-year[42] - Total operating costs decreased to ¥378,288,234.71 from ¥586,622,858.44, a reduction of about 35.5% year-over-year[42] - Net profit for the period was ¥22,319,668.92, down from ¥28,522,029.89, reflecting a decrease of approximately 21.7% year-over-year[44] - Comprehensive income totalled ¥23,658,149.89, down from ¥65,166,662.26, indicating a decrease of approximately 63.7% year-over-year[45] Cash Flow - Operating cash flow for the period was ¥15,306,167.35, a turnaround from a negative cash flow of ¥117,999,435.86 in the same period last year, representing an increase of 112.97%[7] - The net cash flow from operating activities for the first quarter was ¥15,306,167.35, a significant improvement compared to a net outflow of ¥117,999,435.86 in the same period last year[51] - Total cash inflow from operating activities amounted to ¥396,552,229.32, while cash outflow was ¥381,246,061.97, resulting in a net cash inflow[51] - The company reported a decrease in cash inflow from sales of goods and services, totaling ¥187,053,025.40, down from ¥261,625,575.95 in the previous year[53] - Cash outflow for purchasing goods and services was ¥126,733,569.79, a decrease from ¥263,767,049.92 year-over-year[53] - The net cash flow from investing activities was -¥12,999,591.29, compared to -¥39,070,918.09 in the previous year, indicating reduced investment losses[52] - Cash inflow from financing activities was ¥166,600,000.00, while cash outflow was ¥219,169,279.14, leading to a net cash outflow of -¥52,569,279.14[52] - The ending balance of cash and cash equivalents was ¥65,192,372.85, down from ¥87,892,039.31 at the end of the previous year[52] - The company received ¥156,160,000.00 in borrowings during the quarter, compared to ¥230,522,210.80 in the same period last year[52] - The company reported a significant increase in cash received from other operating activities, totaling ¥38,696,738.76, compared to ¥6,640,418.67 last year[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,681,067,253.70, an increase of 1.81% from ¥3,615,582,003.90 at the end of the previous year[7] - Current liabilities rose to CNY 1,929,296,902.00, up from CNY 1,878,693,755.32, indicating an increase of 2.12%[35] - Non-current liabilities decreased to CNY 284,943,796.06 from CNY 293,992,542.83, a decline of 3.56%[35] - Total liabilities increased to CNY 2,214,240,698.06 from CNY 2,172,686,298.15, showing a growth of 1.91%[35] - Owner's equity rose to CNY 1,466,826,555.64 from CNY 1,442,895,705.75, an increase of 1.66%[36] - Cash and cash equivalents increased to CNY 136,549,863.57 from CNY 130,827,783.10, a growth of 4.67%[38] - Accounts receivable decreased to CNY 517,540,455.46 from CNY 607,332,650.15, a decline of 14.77%[38] - Inventory increased to CNY 201,254,080.30 from CNY 147,679,111.02, reflecting a growth of 36.19%[38] - Prepayments rose to CNY 194,855,989.13 from CNY 147,631,331.91, an increase of 32.00%[38] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 19,057[10] - The largest shareholder, Wan Guojiang, holds 19.14% of the shares, with 40,605,300 shares, of which 30,453,975 are pledged[10] Strategic Initiatives - The company plans to enhance procurement and sales pricing strategies to mitigate risks from raw material price fluctuations[19] - The company is facing risks from the rapid expansion of the new energy vehicle industry and potential impacts on its lithium battery equipment sales[19] - The company is actively managing the risk of bad debts due to increased competition and tightening cash flows among customers[20] - The company completed a significant asset restructuring by acquiring Haoneng Technology, resulting in a substantial goodwill amount on the balance sheet, which poses a risk of impairment if Haoneng's future performance deteriorates[21] - The company is actively pursuing mergers and acquisitions of Chengjie Intelligent and Yuchan Automation, which will further increase the goodwill on the balance sheet and the associated impairment risk[21] - The company plans to continue increasing R&D investment in lithium battery equipment to launch more competitive products and expand into new product areas[21] - The company has achieved a 102.47% progress rate on the R&D center expansion project, with total investment reaching ¥3,162.2 million[24] - The annual production capacity for rare earth phosphors has been expanded to 800 tons, with a project completion rate of 99.65%[25] - The company has fully utilized ¥12,890.72 million for the acquisition of Haoneng, achieving a 100% completion rate[25] - The company is facing challenges in achieving expected returns from the rare earth phosphor expansion project due to declining raw material prices and market demand[25] - The company aims to enhance Haoneng's profitability by increasing business and product scale through continuous R&D efforts[21] - The company adjusted the investment scale of the "annual production of 1200 tons of rare earth luminescent materials expansion project" from 1200 tons to 800 tons due to significant changes in market demand and conditions[26] Compliance and Governance - The company reported no violations regarding external guarantees during the reporting period[28] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[29]

Financial Performance - The company's operating revenue for 2018 was ¥2,202,287,833.99, representing a 6.88% increase compared to ¥2,060,599,656.75 in 2017[22]. - The net profit attributable to shareholders for 2018 was ¥57,908,261.24, a decrease of 52.69% from ¥122,400,985.09 in 2017[22]. - The net profit after deducting non-recurring gains and losses was ¥50,333,857.96, down 51.93% from ¥104,705,006.29 in 2017[22]. - The net cash flow from operating activities improved significantly to ¥41,619,765.03, compared to a negative cash flow of ¥99,758,954.57 in 2017, marking a 141.72% increase[22]. - The total assets at the end of 2018 were ¥3,615,582,003.90, a 4.94% increase from ¥3,445,279,692.94 at the end of 2017[22]. - The net assets attributable to shareholders increased by 1.40% to ¥1,440,902,069.82 at the end of 2018, compared to ¥1,421,057,070.91 at the end of 2017[22]. - The basic earnings per share for 2018 were ¥0.2730, down 52.69% from ¥0.5770 in 2017[22]. - The diluted earnings per share also decreased to ¥0.2730, reflecting the same percentage drop as the basic earnings per share[22]. - The weighted average return on equity for 2018 was 4.04%, down from 9.02% in 2017, indicating a decline in profitability[22]. - The company reported a total of ¥7,574,403.28 in non-recurring gains for 2018, compared to ¥17,695,978.80 in 2017[28]. Revenue Breakdown - Revenue from lithium battery cathode materials reached ¥1,460,816,504.32, up 17.90% year-on-year[39]. - Revenue from lithium-ion battery automation equipment was ¥596,789,159.65, down 12.86% year-on-year[39]. - Revenue from materials increased by 17.36% to ¥1,567,094,625.47, accounting for 71.16% of total revenue, while equipment revenue decreased by 12.42% to ¥635,193,208.52, making up 28.84% of total revenue[44]. - Lithium-ion battery cathode materials generated ¥1,460,816,504.32 in revenue, a 17.90% increase from ¥1,238,995,153.00 in 2017, representing 66.33% of total revenue[44]. - The company reported a significant increase in export revenue, which surged by 62,499.79% to ¥44,205,079.29 from ¥70,615.38 in the previous year[44]. Research and Development - The company aims to enhance its research and development efforts to introduce high-end products in the power sector and keep pace with new technology developments in the industry[6]. - The company holds a total of 185 authorized patents, including 68 invention patents and 71 utility model patents[36]. - The company's R&D efforts focus on lithium battery materials and automation solutions, contributing to its competitive advantage and stable economic benefits[40]. - Research and development expenses amounted to CNY 94,294,152.96, representing 4.28% of total revenue, with a slight increase of 3.3% from the previous year[57]. - The total number of R&D personnel increased to 423, representing 29.58% of the workforce, indicating a strong focus on enhancing R&D capabilities[57]. Strategic Initiatives - The company plans to actively manage procurement, sales pricing, and inventory to mitigate the impact of raw material price fluctuations on performance, particularly for cobalt and lithium[5]. - The company is undergoing management challenges due to rapid business expansion and is actively pursuing mergers and acquisitions to broaden its lithium battery equipment business[8]. - The company plans to enhance its competitive edge in lithium battery automation equipment through mergers and acquisitions, including the proposed acquisition of Yuchen Automation and Chengjie Intelligent[40]. - Future strategies include increasing R&D efforts, leveraging partnerships, and pursuing acquisitions to achieve breakthroughs in new product projects and expand business areas[85]. - The company aims to capture opportunities in the new energy industry while improving product quality and sales strategies to increase market share[85]. Dividend Distribution - The company has established a profit distribution plan, proposing a cash dividend of RMB 1.00 per 10 shares to all shareholders, based on a total of 212,144,720 shares[9]. - The cash dividend accounted for 100% of the total profit distribution amount, which was 21,214,472 RMB[90]. - The company's distributable profit for the year was 341,528,836.68 RMB, indicating a strong profit generation capability[90]. - The cash dividend for 2018 represented 36.63% of the net profit attributable to the parent company[93]. - In 2017, the company distributed a cash dividend of 2.00 RMB per 10 shares, totaling 23,571,635.60 RMB, which was 19.26% of the net profit[93]. Legal and Compliance - The company has not faced any regulatory penalties in the past three years for its directors, supervisors, or senior management[159]. - The company reported no penalties or rectification measures during the reporting period, reflecting compliance with regulations[109]. - The company has not encountered any non-compliance issues regarding the lock-up commitments from shareholders during the reporting period[97]. - The company has ensured that no violations of commitments occurred during the reporting period[96]. - The company is currently involved in a case being reviewed by the Guangdong High People's Court[96]. Market Risks - The company acknowledges the risks associated with the adjustment of new energy vehicle policies in China, which may adversely affect the sales of lithium battery equipment[6]. - The company reported a provision for bad debts amounting to RMB 190.44 million, indicating a significant increase in bad debt provisions due to intensified competition in the lithium-ion battery industry[7]. - The company has noted that the tightening of capital chains among industry peers could increase the risk of bad debts if customers are eliminated from the market[7]. - The company is facing risks related to goodwill impairment following the acquisition of Haoneng Technology, which has resulted in a significant amount of goodwill on the balance sheet[9]. Corporate Governance - The company has a clear structure for its supervisory board, ensuring accountability and transparency in operations[157]. - The board includes independent directors with expertise in finance and law, enhancing governance and oversight[156]. - The company has maintained compliance with corporate governance standards as per the relevant regulations and guidelines[175]. - The company’s board believes that the changes in accounting policy will objectively reflect the financial status and operating results without harming the interests of shareholders[104]. - The company has established an independent and complete business system, with clear ownership of both tangible and intangible assets[176].

Financial Performance - Operating revenue decreased by 19.61% to CNY 460,555,574.63 for the current period, but increased by 24.68% to CNY 1,645,511,448.27 year-to-date[7] - Net profit attributable to shareholders decreased by 81.48% to CNY 13,824,144.23 for the current period, and decreased by 62.41% to CNY 50,905,825.02 year-to-date[7] - Basic earnings per share dropped by 81.47% to CNY 0.0652 for the current period, and decreased by 62.41% to CNY 0.2400 year-to-date[7] - The company experienced a 65.15% decline in total profit to ¥52,559,137.66 from ¥150,822,992.16, primarily due to fluctuations in raw material prices affecting product gross margins[19] - The net profit for the current period was ¥51,258,655.42, down 62.3% from ¥135,741,134.44 in the same period last year[48] - The total profit for the current period was ¥52,559,137.66, down 65.1% from ¥150,822,992.16 in the previous period[48] - Total comprehensive income for the current period is ¥10,791,082.40, down from ¥103,496,595.95 in the previous period, a decrease of about 89.6%[41] - The total comprehensive income for the current period was ¥40,788,753.62, compared to ¥164,473,856.29 in the previous period, reflecting a decline of 75.2%[49] Cash Flow - The net cash flow from operating activities showed a significant decline of 261.83%, totaling CNY -129,080,677.49 year-to-date[7] - The company reported a net cash outflow from operating activities of ¥129,080,677.49, worsening from a loss of ¥35,674,201.65 in the previous year, mainly due to increased accounts receivable[20] - The cash flow from operating activities showed a net outflow of ¥129,080,677.49, worsening from a net outflow of ¥35,674,201.65 in the previous period[53] - The net cash flow from operating activities was -83,309,716.75 CNY, compared to -7,468,741.76 CNY in the previous period[57] - Cash inflow from operating activities totaled 931,665,314.95 CNY, significantly up from 455,985,863.99 CNY year-over-year[57] - Cash outflow from operating activities was 1,014,975,031.70 CNY, compared to 463,454,605.75 CNY in the previous period[57] Assets and Liabilities - Total assets increased by 4.75% to CNY 3,608,974,961.20 compared to the end of the previous year[7] - Total assets increased significantly, with construction in progress rising by 1020.29% to ¥100,347,488.31, reflecting new factory and equipment investments[18] - Total liabilities rose to CNY 2,167,153,297.96 from CNY 2,022,588,147.72, an increase of about 7.15%[33] - Owner's equity increased to CNY 1,441,821,663.24 from CNY 1,422,691,545.22, reflecting a growth of approximately 1.35%[33] - Current assets decreased slightly to CNY 2,286,429,895.06 from CNY 2,297,525,356.63, a decline of about 0.01%[31] - Accounts receivable increased by 22.75% to ¥1,007,625,227.71 from ¥820,878,521.66, attributed to the growth in sales scale[18] - Short-term loans rose by 59.08% to ¥459,372,210.80, up from ¥288,760,000.00, due to increased funding needs associated with business expansion and investment projects[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 32,399[11] - The largest shareholder, Wan Guojiang, holds 19.14% of the shares, with 30,453,975 shares pledged[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] Investment Activities - Investment activities resulted in a net cash outflow of ¥176,221,519.84, compared to ¥153,038,088.52 in the same period last year, driven by increased equity investments and new subsidiary projects[20] - The company plans to acquire 100% equity of Shenzhen Yuchen Automation Equipment Co., Ltd. through a combination of share issuance and cash payment, with due diligence and auditing currently underway[21] Operating Costs and Expenses - Operating costs increased by 31.82% to ¥1,404,452,537.03 from ¥1,065,456,019.68, reflecting the substantial growth in sales volume[19] - Total operating costs for the year-to-date period reached ¥1,608,578,261.28, up from ¥1,244,300,718.63, an increase of about 29.3%[47] - Financial expenses increased to ¥17,564,210.67 from ¥5,227,833.02, an increase of approximately 236.5%[38] - The financial expenses for the current period were ¥28,003,689.21, significantly higher than ¥8,813,477.52 in the previous period, primarily due to increased interest expenses[51] - Research and development expenses decreased to ¥17,937,705.30 from ¥23,038,981.85, a reduction of about 22.1%[38] - The company's research and development expenses increased to ¥29,189,643.98, up from ¥27,263,726.53 in the previous period, indicating a focus on innovation[51]