Dividend Distribution - The company plans to distribute a cash dividend of 2.30 RMB per 10 shares to all shareholders, based on a total of 218,321,965 shares [4]. - The total distributable profit for 2018 is 254,481,235.13 yuan, after accounting for a net profit of 84,325,964.28 yuan and a legal reserve of 8,432,596.43 yuan [109]. - The cash dividend for 2018 represents 20.33% of the consolidated net profit attributable to ordinary shareholders [112]. - In 2017, the company distributed a cash dividend of 1.1 yuan per 10 shares, totaling 24,015,416.15 yuan, which was 21.20% of the consolidated net profit [112]. - The cash dividend policy requires a minimum of 20% of distributable profits to be distributed as cash dividends if there are no major investments or expenditures [107]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with no capital reserve increases [110]. - The total cash dividends distributed over the last three years were 50,214,051.95 yuan in 2018, 24,015,416.15 yuan in 2017, and 17,465,757.20 yuan in 2016 [112]. - The company’s cash dividend distribution plan is in accordance with its articles of association and relevant regulations [107]. Financial Performance - The company's operating revenue for 2018 was CNY 1,712,117,473.81, representing a 103.55% increase compared to 2017 [16]. - The net profit attributable to shareholders for 2018 was CNY 247,012,482.19, an increase of 118.10% from the previous year [16]. - The net cash flow from operating activities reached CNY 84,705,030.81, showing a significant increase of 220.96% year-on-year [16]. - The total assets at the end of 2018 amounted to CNY 3,911,495,365.44, reflecting a 26.67% growth compared to the end of 2017 [16]. - The basic earnings per share for 2018 was CNY 1.1314, up 118.08% from CNY 0.5188 in 2017 [16]. - The weighted average return on equity for 2018 was 18.90%, an increase of 9.43 percentage points from the previous year [16]. - The company achieved a project investment progress of 101.57% for the R&D center construction project, with a total investment of RMB 4,570.59 [78]. - The company reported a total of CNY 9,279,375.24 in government subsidies related to its business operations for 2018 [22]. Business Expansion and Strategy - The report indicates that the company is focused on expanding its market reach and developing new technologies [4]. - The company has engaged Zhongyuan Securities as its financial advisor and sponsor, ensuring ongoing compliance and support [15]. - The company is currently one of the leading manufacturers of water treatment chemicals in China, with products exported to multiple countries [25]. - The company is expanding its production capacity with an 18,000-ton water treatment agent expansion project, which is currently under construction [39]. - The company has established a research and development center in collaboration with the Chinese Academy of Sciences, receiving a government subsidy of 1 million yuan for soil pollution remediation projects [31]. - The company is actively developing new products and technologies, including a project for soil remediation in collaboration with the Chinese Academy of Sciences [59]. - The company aims to strengthen its core water treatment agent production and expand its market share and competitiveness by providing value-added services [93]. - The company plans to enhance its industrial wastewater treatment and zero discharge business, focusing on developing core technologies and teams [97]. Risk Management - The company emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting potential risks and countermeasures in future operations [4]. - The company has a comprehensive risk management strategy detailed in the report, which investors are encouraged to review [4]. - The company is at risk of product price fluctuations due to raw material price volatility and downstream industry conditions [100]. - The company is experiencing an increase in accounts receivable as it expands into the environmental comprehensive governance sector, which may impact cash flow management [101]. Corporate Governance and Compliance - The company’s financial report has been confirmed as true, accurate, and complete by its management team, ensuring accountability [3]. - The independent directors have fulfilled their responsibilities in the decision-making process regarding the cash dividend policy [107]. - The company has committed to avoiding or reducing related party transactions with its subsidiaries [116]. - The company guarantees that related party transaction prices will be determined based on market principles to ensure fairness [116]. - The company has established a commitment to ensure that all information provided is free from false records or misleading statements [121]. Environmental and Community Engagement - The company actively engages in environmental protection and community development initiatives [164]. - The company donated a total of 250,000 RMB to support infrastructure projects in impoverished areas during the reporting period [161]. - The company provided a set of integrated treatment equipment valued at 960,000 RMB for rural sewage treatment in a poverty-stricken village [161]. - The company helped 116 registered impoverished individuals to escape poverty during the reporting period [162]. Shareholder Structure and Changes - The total number of shares before the change was 218,321,965, with 54.79% being limited shares and 45.21% being unrestricted shares [176]. - Limited shares decreased by 33,917,500, resulting in a total of 85,697,500 limited shares after the change, which is 39.25% of total shares [176]. - The largest shareholder, Wang Zhiqing, holds 43.64% of the shares, totaling 95,270,000 shares [181]. - The top ten shareholders include entities such as Penghua Asset and Henan Jingwei Investment Consulting, with holdings ranging from 1.25% to 3.54% [181]. - The company has not undergone any changes in its controlling shareholder during the reporting period [183]. Personnel and Management - The company experienced several personnel changes, including the resignation of the general manager and two vice general managers on May 22, 2018, due to job transfers [190]. - New appointments included Wang Jing as a board member and Song Jianbang as a supervisor, both effective February 7, 2018 [190]. - The company’s board of directors includes members with extensive backgrounds in water treatment and management, enhancing its operational expertise [191]. - The management team is composed of individuals with significant experience in the water treatment industry, contributing to the company's strategic direction [191].

Financial Performance - Net profit attributable to shareholders reached ¥44,648,627.60, reflecting a significant increase of 218.80% year-on-year[7]. - Operating revenue for the period was ¥337,263,208.56, marking a 135.20% increase compared to the same period last year[7]. - Basic earnings per share rose to ¥0.2045, up 219.03% from the previous year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥42,698,013.61, up 233.19% year-on-year[7]. - The net profit attributable to the parent company was ¥153,853,894.22, marking a 262.48% increase from ¥42,444,281.04, largely due to increased revenue and the consolidation of Anhui Zhongxu's financial results[18]. - The total operating revenue for the current period reached CNY 1,103,617,010.45, a significant increase from CNY 451,025,677.79 in the previous period, representing a growth of approximately 144.5%[46]. - The net profit for the current period was CNY 180,995,245.08, compared to CNY 48,255,708.82 in the previous period, indicating an increase of about 274.5%[47]. - The total comprehensive income for the current period was CNY 181,013,835.11, compared to CNY 48,219,586.00 in the previous period, reflecting an increase of about 274.5%[48]. Assets and Liabilities - Total assets increased to ¥3,554,998,175.16, a rise of 15.13% compared to the previous year[7]. - Current assets increased to CNY 2,127,799,640.21 from CNY 1,726,419,469.65, reflecting a growth of approximately 23.3%[30]. - Total liabilities reached CNY 1,994,158,328.39, compared to CNY 1,694,423,361.08 at the beginning of the period, indicating an increase of approximately 17.7%[32]. - The company's equity attributable to shareholders increased to CNY 1,328,915,556.21 from CNY 1,195,689,495.20, reflecting an increase of about 11.1%[32]. - Long-term borrowings surged by 434.96% to ¥310,091,310.94, reflecting the company's increased bank loans during the reporting period[17]. Cash Flow - Cash flow from operating activities showed a net outflow of ¥53,819,004.96, a decrease of 64.62% compared to the previous year[7]. - Cash received from sales and services amounted to ¥880,123,713.62, up 189.08% from ¥304,459,226.38, attributed to increased revenue and improved customer payments[18]. - The net cash flow from operating activities was negative at CNY -53.82 million, worsening from CNY -32.69 million in the same period last year[52]. - Cash inflow from operating activities totaled CNY 1.04 billion, a substantial increase from CNY 327.96 million in the previous year[52]. - The company received CNY 855.18 million in borrowings during the financing activities, significantly higher than CNY 224.40 million in the previous year[54]. Shareholder Information - The company reported a total of 12,683 common shareholders at the end of the reporting period[11]. - The largest shareholder, Wang Zhiqing, holds 43.64% of the shares, amounting to 95,270,000 shares[11]. Costs and Expenses - Operating costs rose to ¥695,350,990.65, reflecting a 123.35% increase from ¥311,331,972.45, driven by higher revenue and the inclusion of Anhui Zhongxu's costs in the consolidated financial statements[17]. - The company reported a 537.57% increase in financial expenses, totaling ¥35,462,426.79, due to higher interest expenses from increased bank borrowings[18]. - The total operating costs for the current period amounted to CNY 872,386,384.70, compared to CNY 400,129,859.42 in the previous period, which is an increase of around 118.5%[46]. Research and Development - Research and development expenses for Q3 2018 were ¥4,694,850.12, a slight increase from ¥4,261,671.32 in the same quarter last year[37]. - The company incurred research and development expenses of CNY 11,407,029.66, slightly down from CNY 13,261,191.89 in the previous period, indicating a decrease of approximately 14%[46]. Other Financial Information - Non-recurring gains and losses totaled ¥1,969,229.51 for the year-to-date[8]. - The company reported an investment income of ¥681,105.84, up from ¥275,261.06 year-over-year, indicating a positive trend in investment performance[39]. - The investment income for the current period was CNY 1,694,459.15, compared to CNY 1,430,304.70 in the previous period, showing an increase of about 18.5%[46]. - The company reported no overdue commitments or violations regarding external guarantees during the reporting period[24]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[25].

Financial Performance - Operating revenue for the reporting period reached CNY 337,263,208.56, a 135.20% increase year-on-year[7] - Net profit attributable to shareholders increased by 218.80% to CNY 44,648,627.60 for the reporting period[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses rose by 233.19% to CNY 42,698,013.61[7] - Basic earnings per share increased by 219.03% to CNY 0.2045[7] - The net profit for the third quarter reached CNY 54,250,581.88, compared to CNY 16,015,245.17 in the previous year, marking an increase of about 238.3%[39] - The net profit for the current period was CNY 180,995,245.08, compared to CNY 48,255,708.82 in the previous period, indicating an increase of about 274.5%[47] - The total comprehensive income for the current period was CNY 181,013,835.11, compared to CNY 48,219,586.00 in the previous period, reflecting an increase of about 274.5%[48] Asset and Liability Management - Total assets increased by 16.80% to CNY 3,606,444,576.19 compared to the end of the previous year[7] - The total liabilities of the company were CNY 2,045,604,729.42, up from CNY 1,694,423,361.08, marking an increase of about 20.7%[32] - Long-term borrowings surged by 434.96% to ¥310,091,310.94, reflecting the company's increased bank borrowings during the reporting period[17] - Short-term borrowings increased significantly to CNY 608,768,382.19 from CNY 454,399,019.81, reflecting a growth of approximately 33.9%[32] Cash Flow Analysis - The net cash flow from operating activities for the year-to-date was negative CNY 53,819,004.96, a decrease of 64.62%[7] - Cash inflow from operating activities was CNY 1.04 billion, a substantial increase from CNY 327.96 million in the previous year[52] - Cash flow from investing activities showed a net outflow of CNY -230.33 million, compared to CNY -247.57 million in the previous year, indicating improved cash management[54] - Cash flow from financing activities generated a net inflow of CNY 289.77 million, compared to CNY 182.31 million in the same period last year, reflecting stronger financing capabilities[54] Shareholder Information - The company reported a total of 12,683 common shareholders at the end of the reporting period[11] - The largest shareholder, Wang Zhiqing, holds 43.64% of the shares, totaling 95,270,000 shares[11] Revenue and Cost Structure - The company's revenue for the reporting period reached ¥1,103,617,010.45, a significant increase of 144.69% compared to ¥451,025,677.79 in the previous period, primarily due to increased sales volume and price of water treatment agents, as well as the consolidation of Anhui Zhongxu's revenue[17] - Operating costs rose to ¥695,350,990.65, reflecting a 123.35% increase from ¥311,331,972.45, driven by higher revenue and the inclusion of Anhui Zhongxu's costs in the consolidated financial statements[17] - The total operating costs for the current period amounted to CNY 872,386,384.70, compared to CNY 400,129,859.42 in the previous period, which is an increase of around 118.5%[46] Investment and Financing Activities - The company made cash payments of ¥97,499,000.00 for the acquisition of Anhui Zhongxu, representing an 82.53% increase compared to the previous period[19] - The company plans to issue convertible bonds, with the project progressing as of May 22, 2018, and has received acceptance from the China Securities Regulatory Commission[20] Other Financial Metrics - The company's financial expenses for the current period were CNY 35,462,426.79, significantly higher than CNY 5,562,091.29 in the previous period, indicating an increase of approximately 536.5%[46] - The company's tax expenses for the current period were CNY 56,624,622.74, compared to CNY 7,633,238.65 in the previous period, which is an increase of approximately 642.5%[47] - The company reported other income of CNY 6,025,725.66 for the current period, up from CNY 1,257,687.05 in the previous period, indicating an increase of about 378.5%[46]

Financial Performance - Total operating revenue for the first half of 2018 reached ¥766,353,801.89, representing a 149.11% increase compared to ¥307,633,661.50 in the same period last year[19]. - Net profit attributable to shareholders was ¥109,205,266.62, a significant increase of 284.00% from ¥28,439,128.83 in the previous year[19]. - Basic earnings per share rose to ¥0.5002, up 283.88% from ¥0.1303 in the same period last year[19]. - Operating profit reached 166,804,100 yuan, up 357.41% compared to the same period last year[40]. - The total comprehensive income for the current period was ¥126,746,125.61, compared to ¥32,219,878.39 in the previous period, indicating an increase of about 292.5%[157]. - The profit attributable to the parent company's shareholders was ¥109,205,266.62, compared to ¥28,439,128.83 in the prior period, marking an increase of around 284.5%[156]. Assets and Liabilities - The company's total assets increased by 9.66% to ¥3,386,166,818.10 from ¥3,087,834,126.29 at the end of the previous year[19]. - Total liabilities amounted to CNY 1,881,409,031.45, up from CNY 1,694,423,361.08, reflecting an increase of about 11.0%[148]. - The company's equity attributable to shareholders reached CNY 1,283,130,645.11, up from CNY 1,195,689,495.20, indicating a growth of 7.3%[148]. - The company's long-term borrowings increased significantly to 332,178,105.8 CNY, up from 51,930,452.74 CNY, indicating a rise of 6.75%[52]. Cash Flow - The net cash flow from operating activities was negative at -¥105,563,916.66, worsening by 304.95% from -¥26,068,615.78 in the same period last year[19]. - Cash inflow from financing activities was 675,084,921.79 CNY, with a net cash inflow of 245,855,063.68 CNY, showing strong financing support[164]. - The total cash and cash equivalents at the end of the period were 125,105,126.96 CNY, down from 261,221,279.61 CNY in the previous period[164]. Investments and Acquisitions - The company has actively pursued mergers and acquisitions, acquiring companies such as Tongsheng Environment and Ande Technology, which have expanded its service offerings in water treatment and ecological restoration[27]. - The company has filed for 2 invention patents and 8 utility model patents, reflecting its commitment to technological innovation in the water treatment sector[32]. - The company has pre-invested 23,928,962.87 CNY in fundraising projects, with 15,000,000.00 CNY allocated to cash consideration for asset purchases[66]. Strategic Developments - Future plans and strategic developments are discussed in detail, highlighting potential risks and countermeasures[4]. - The company emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements[4]. - The company plans to issue convertible bonds to raise funds for an 180,000-ton water treatment agent expansion project[43]. Operational Efficiency - The organizational structure was adjusted to improve operational efficiency and management levels, focusing on group control efficiency[42]. - The company has maintained stable customer relationships, ensuring timely and reliable supply to downstream clients, which strengthens its market position[35]. - The company’s management team is highly educated, with two-thirds holding master's degrees or higher, enhancing its operational effectiveness[33]. Risk Management - The company faces intensified industry competition due to increasing market concentration in the environmental protection sector, which may lead to more potential competitors entering the market through investments and acquisitions[80]. - The company is at risk of goodwill impairment if acquired subsidiaries fail to meet performance commitments, which could negatively impact current profits[82]. - Rising costs in the environmental sector, driven by increased prices for labor and materials, present a financial risk, prompting the company to seek diversified financing channels[83]. Shareholder and Governance Matters - The company plans to use a minimum of 30% of the previous fiscal year's audited net profit for stock price stabilization repurchase funds[89]. - The controlling shareholder, Wang Zhiqing, and his spouse are required to complete all shareholding plans within 30 trading days from the announcement date[89]. - The company’s board of directors must approve any stock repurchase plan, which requires a two-thirds majority of the voting rights at the shareholders' meeting[89]. Compliance and Transparency - The company emphasizes compliance with laws and regulations, ensuring transparency and integrity in its operations[118]. - The financial statements are prepared based on the actual transactions and events, in accordance with the accounting standards issued by the Ministry of Finance[187]. - The company has not reported any significant changes in project feasibility or major asset disposals during the reporting period[73][79].

Financial Performance - Total revenue for Q1 2018 reached ¥329,646,819.15, representing a 165.07% increase compared to ¥124,362,498.47 in the same period last year[7] - Net profit attributable to shareholders was ¥49,980,970.87, a significant increase of 453.70% from ¥9,026,762.51 year-over-year[7] - Basic earnings per share rose to ¥0.2289, up 454.24% from ¥0.0413 in the previous year[7] - The company achieved operating revenue of CNY 329,646,819.15, representing a year-on-year increase of 165.07%[23] - Operating profit for the quarter was ¥78,106,970.65, up from ¥12,865,347.57, reflecting a growth of 508.5% year-over-year[46] - The company recorded a comprehensive income total of ¥57,725,851.59, compared to ¥11,575,882.08 in the same quarter last year, representing a growth of 397.5%[47] Assets and Liabilities - The company's total assets increased by 6.26% to ¥3,281,155,446.66 from ¥3,087,834,126.29 at the end of the previous year[7] - Total current assets increased to CNY 1,901,451,197.01 from CNY 1,726,419,469.65, representing a growth of approximately 10.1%[37] - Total liabilities decreased to CNY 1,823,197,439.93 from CNY 1,694,423,361.08, a reduction of approximately 7.6%[39] - Total liabilities amounted to ¥723,728,157.22, a slight decrease from ¥737,046,587.75 in the previous period[46] - Total equity increased to ¥1,217,214,866.31 from ¥1,184,665,958.76, indicating a growth of 2.7%[46] Cash Flow - The company reported a net cash flow from operating activities of -¥131,957,761.58, a decline of 221.08% from -¥41,097,829.61 in the same period last year[7] - Total cash inflow from operating activities was 382,776,920.48 yuan, up from 91,481,913.17 yuan in the previous period, reflecting a strong increase[54] - Cash outflow from operating activities totaled 514,734,682.06 yuan, compared to 132,579,742.78 yuan in the previous period, showing a substantial rise[54] - The net cash flow from financing activities was 295,707,139.84 yuan, compared to 46,156,920.00 yuan in the previous period, indicating a strong financing position[55] Operational Challenges and Strategies - The company faces intensified competition in the environmental protection industry, which may impact future performance[9] - Management plans to enhance internal controls and improve management capabilities to mitigate operational risks as the company expands[10] - The company is focused on managing accounts receivable to avoid cash flow shortages due to increasing receivables[11] - The company aims to stabilize raw material prices and improve material utilization to protect profit margins amid price fluctuations[12] Investments and R&D - Research and development efforts focused on new products such as QSYW3100 and solid products like HEDP, with collaborations on soil remediation and sludge resource utilization technologies[24] - There will be an increase in R&D investment to strengthen core competitiveness[27] - The R&D center construction project has achieved an investment progress of 101.57% as of March 31, 2018[29] - The company plans to continue focusing on the water treatment industry, emphasizing research and development, terminal services, and ecological restoration[23] Shareholder Information - The number of common shareholders at the end of the reporting period was 13,452, with the largest shareholder holding 43.64% of the shares[16] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[17] Inventory and Receivables - Accounts receivable decreased by 37.86% to ¥43,208,566.12, attributed to increased settlements with suppliers using notes[20] - Inventory increased by 40.61% to ¥572,456,865.94, driven by pre-construction compensation payments and unsettled project construction costs[20] - Prepayments increased by 98.25% to ¥102,206,391.17, mainly due to increased advance payments for project materials and engineering costs[20]

Financial Performance - The company's operating revenue for 2017 was ¥841,134,819.71, representing a 75.69% increase compared to ¥478,774,224.60 in 2016[17]. - The net profit attributable to shareholders for 2017 was ¥113,258,926.27, a significant increase of 150.37% from ¥45,236,797.72 in 2016[17]. - The net profit after deducting non-recurring gains and losses was ¥111,937,855.41, up 164.70% from ¥42,288,292.93 in 2016[17]. - The total assets at the end of 2017 reached ¥3,087,834,126.29, marking a 106.78% increase from ¥1,493,292,860.26 at the end of 2016[17]. - The basic earnings per share for 2017 was ¥0.5188, reflecting a 125.96% increase from ¥0.2296 in 2016[17]. - The weighted average return on equity for 2017 was 9.47%, an increase of 2.74% from 6.73% in 2016[17]. - The net cash flow from operating activities for 2017 was ¥26,391,415.34, a slight decrease of 3.63% from ¥27,386,743.32 in 2016[17]. - The company achieved a revenue of 841.13 million yuan, representing a year-on-year growth of 75.69%[41]. - Operating profit reached 142.85 million yuan, an increase of 164.79% compared to the previous year[41]. - Net profit attributable to shareholders was 113.26 million yuan, up 150.37% year-on-year[41]. Dividends and Profit Distribution - The company reported a profit distribution plan of cash dividends of 1.10 RMB per 10 shares (including tax) based on a total of 218,321,965 shares[4]. - The company plans to distribute cash dividends of 1.1 yuan per 10 shares, totaling 24,015,416.15 yuan, while maintaining a cash dividend ratio of 100% of the distributable profit[130]. - The company achieved a net profit of 43,626,534.37 yuan for the year 2017, with a distributable profit of 39,263,880.93 yuan after statutory reserve allocation[132]. - The cash dividends distributed over the three years reflect a consistent approach to returning value to shareholders despite fluctuations in profit margins[136]. - In 2017, the cash dividend increased to CNY 24,015,416.15, accounting for 21.20% of the net profit attributable to shareholders[134]. Acquisitions and Business Expansion - The company acquired several firms, including An De Technology and Zhong Xu Environment, to expand its business scope in water treatment services[28]. - The company acquired 49% of Shaanxi Ande Technology for 129.85 million yuan, making it a wholly-owned subsidiary[42]. - The acquisition of Anhui Zhongxu Environment Construction Co., Ltd. was completed for 368.75 million yuan, enhancing the company's market position in environmental engineering[43]. - The company has made significant equity investments, including a CNY 368.75 million acquisition of Anhui Zhongxu, holding a 55% stake[87]. - The company completed the acquisition of 49% of "Ande Technology," with a commitment of a net profit of no less than 2,300 million CNY for 2017[153]. Operational Strategy and Business Model - The company has established a three-pronged business model focusing on research and development, production, and sales of water treatment agents, as well as municipal and industrial wastewater treatment services[28]. - The company aims to enhance organizational efficiency and protect the interests of minority investors through improved management systems and internal controls[47]. - The company aims to improve its competitive capabilities and operational performance through the expansion of its business and service offerings in environmental management[67]. - The company is focusing on extending its environmental industry chain and enhancing its profitability through strategic acquisitions[44]. - The company aims to develop a water-centric industrial chain, focusing on water treatment agents, municipal water treatment, and industrial wastewater zero discharge[109]. Risk Management and Compliance - The company has a clear risk management strategy outlined in the report, addressing potential operational risks[4]. - The company emphasizes the importance of safety and environmental protection, implementing strict accountability and risk management measures[114]. - The company is exposed to macroeconomic risks, where a slowdown in economic growth or adverse policy changes could negatively impact performance[119]. - The company faces risks from intensified industry competition, particularly from state-owned enterprises and private capital entering the environmental protection sector[118]. - The company has committed to avoiding any competitive business activities during the performance commitment period and for 12 months after leaving the company[139]. Research and Development - The company holds 7 utility model patents and has applied for 2 invention patents and 8 utility model patents in 2017, reflecting its commitment to innovation[33]. - R&D investment amounted to ¥21,734,772.17, representing 2.58% of operating revenue[76]. - The number of R&D personnel increased to 152, accounting for 9.25% of the total workforce[76]. - The company has implemented a talent strategy focused on employee rights and health, ensuring adherence to labor laws[194]. - The company conducted various employee training programs to improve execution capabilities and enhance employee quality[187]. Corporate Governance and Compliance - The company emphasizes transparency and compliance with regulations, ensuring timely and accurate information disclosure to protect investor interests[193]. - The company has established a clear framework for managing related party transactions to protect the interests of shareholders[139]. - The company has committed to timely processing of ownership changes for its assets and will bear all responsibilities for any disputes arising during this process[139]. - The company has confirmed that it does not currently occupy any funds from the target company and will avoid any unrelated financial transactions post-transaction completion[139]. - The company has established measures to prevent any illegal transfer of funds or profits through related party transactions[143]. Social Responsibility and Community Engagement - The company has actively engaged in social responsibility initiatives, including free health check-ups for employees' parents aged 70 and above[186]. - The company has allocated CNY 400,000 to support poverty alleviation projects in Jiyuan City during the reporting period[188]. - The company emphasized the protection of employee rights and has improved its welfare system to enhance employee satisfaction[185]. - The company actively participated in local poverty alleviation efforts, donating CNY 10,000 to the "Charity One Day Donation" event and providing CNY 50,000 for rural tourism planning in Dagu Town[188]. - The company has built strategic partnerships with suppliers and customers to promote sustainable development[185].

Financial Performance - Operating revenue for the reporting period reached CNY 143,392,016.29, a year-on-year increase of 35.33%[7] - Net profit attributable to shareholders increased by 103.07% to CNY 14,005,152.21 for the reporting period[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses rose by 94.14% to CNY 12,814,867.11[7] - Basic earnings per share increased by 82.10% to CNY 0.0641[7] - The company reported a significant increase in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets, totaling CNY 142,412,495.55, which is a 165.48% increase compared to the previous period[19] - The company reported a 69.15% decrease in cash paid for acquiring subsidiaries, amounting to CNY 53,415,429.68, also related to the acquisition of Shaanxi Ande[19] - The total comprehensive income for the quarter was CNY 15,999,707.61, compared to CNY 6,896,720.39 in the previous year, indicating strong overall performance[43] Assets and Liabilities - Total assets increased by 16.87% to CNY 1,745,258,998.73 compared to the end of the previous year[7] - The company's total assets increased significantly, with total liabilities also rising, indicating a growth in operational scale and financial leverage[17] - Total liabilities increased to ¥633,314,646.41 from ¥314,356,758.34, showing a rise of approximately 101.9%[35] - The company reported a total liability of CNY 387,473,972.81, which is an increase from CNY 157,699,299.21 year-over-year[42] - Total current assets increased to ¥882,150,030.58 from ¥662,916,398.25, representing a growth of approximately 33.1%[33] - Total non-current assets reached ¥863,108,968.15, up from ¥830,376,462.01, indicating a growth of about 3.3%[34] Cash Flow - The company reported a net cash flow from operating activities of CNY -32,692,351.47, a decrease of 363.99% compared to the previous year[7] - Cash received from operating activities increased by 226.94% to ¥19,344,083.15 from ¥5,916,739.95, primarily due to the recovery of bid deposits by Shaanxi Ande[18] - The company's cash flow from investment activities decreased by 67.81%, totaling CNY 359,000.00, due to the consolidation of Shaanxi Ande and Henan Tongsheng[19] - The company's cash flow net increase of -¥100,606,272.43 for the quarter, compared to an increase of ¥157,164,733.28 in the previous period[60] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,317[11] - The largest shareholder, Wang Zhiqing, holds 43.64% of the shares, amounting to 95,270,000 shares[11] Government Support and Investments - The company received government subsidies amounting to CNY 2,518,504.90 during the reporting period[8] - The company plans to continue expanding its project investments and consolidating financial statements from newly acquired subsidiaries to enhance overall performance[18] - The company plans to actively proceed with the construction of the "30,000 tons/year water treatment agent expansion project" as part of its investment strategy[22] Financial Ratios and Returns - The weighted average return on equity was 1.20%, an increase from 0.14% in the previous year[7] - The company achieved a 1022.00% increase in cash received from borrowings, amounting to CNY 224,400,000.00, attributed to increased bank loans[19] Operational Costs - Operating costs amounted to CNY 126,880,723.98, up 29.8% from CNY 97,743,922.40 year-over-year[41]

Financial Performance - Total operating revenue for the first half of 2017 was CNY 307,633,661.50, representing a 49.65% increase compared to CNY 205,575,053.22 in the same period last year[19]. - Net profit attributable to shareholders was CNY 28,439,128.83, up 68.78% from CNY 16,849,388.44 year-on-year[19]. - Net profit after deducting non-recurring gains and losses reached CNY 27,514,322.17, an increase of 87.53% compared to CNY 14,671,742.56 in the previous year[19]. - Basic earnings per share rose to CNY 0.1303, a 44.46% increase from CNY 0.0902 in the same period last year[19]. - Operating profit reached 36.47 million yuan, an increase of 89.20% compared to the previous year[39]. - The company reported a total comprehensive income of CNY 32,219,878.39, compared to CNY 16,885,233.90 in the previous year, marking an increase of 91.0%[156]. - The total operating costs amounted to CNY 273,249,135.44, which is an increase of 45.3% from CNY 188,184,231.80 in the prior year[155]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,695,806,028.89, reflecting a 13.56% increase from CNY 1,493,292,860.26 at the end of the previous year[19]. - The total liabilities of the company amounted to CNY 470,011,384.18, an increase from CNY 314,356,758.34, which is an increase of about 49.6%[147]. - The company's total current assets reached CNY 831,611,324.24, up from CNY 662,916,398.25, indicating a growth of about 25.4%[146]. - The company's equity attributable to shareholders increased to CNY 1,189,888,888.29 from CNY 1,178,936,101.92, reflecting a growth of about 0.9%[148]. Cash Flow - The net cash flow from operating activities was negative at CNY -26,068,615.78, a decline of 208.63% compared to CNY 23,997,581.20 in the same period last year[19]. - Cash flow from financing activities saw a remarkable increase of 1,271.73%, reaching 117.26 million yuan, attributed to the consolidation of financial statements[49]. - The cash inflow from sales of goods and services was 149,282,469.71 CNY, slightly down from 149,645,655.80 CNY in the previous period[165]. Investments and Acquisitions - The company completed the acquisition of 51% of Shaanxi Ande Technology Co., Ltd. on January 5, 2017, expanding its service market in water treatment[26]. - The total planned investment for the R&D center construction project is CNY 4,500 million, with an actual investment of CNY 3,156.83 million, achieving 70.15% of the planned investment by December 31, 2017[67]. - The total amount of funds raised by the company is CNY 55,036.72 million[62]. Research and Development - Research and development investment increased by 73.47% to 8.53 million yuan, indicating a strong focus on innovation[49]. - The company has filed for 5 patents in the first half of 2017, including 2 invention patents and 3 utility model patents[31]. - The company is actively developing new products, including non-phosphorus water treatment agents, and has made progress in this area[31]. Market and Competition - The company is the largest professional manufacturer of water treatment chemicals in China and the only listed company in this industry[25]. - The water treatment agent industry is experiencing intensified competition, leading to a decline in gross profit margins during the reporting period[84]. - The company is focusing on expanding its environmental governance service capabilities, integrating water treatment, solid waste treatment, and soil remediation services[33]. Risk Management - The company emphasizes the importance of risk management and has outlined potential risks and countermeasures in its report[4]. - The company anticipates potential fluctuations in net profit due to macroeconomic and policy risks, particularly in the environmental protection sector[83]. - Financial risks are heightened due to increasing accounts receivable, which may affect cash flow and operational stability[87]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,799[127]. - Wang Zhiqing, a natural person, holds 43.64% of the shares, totaling 95,270,000 shares, with 35,200,000 shares pledged[127]. - The company has no significant changes in shareholder structure during the reporting period[126]. Corporate Governance - The semi-annual financial report was not audited[93]. - The company did not experience any bankruptcy reorganization during the reporting period[95]. - There were no major litigation or arbitration matters during the reporting period[96]. Social Responsibility - The company invested a total of 82,000 RMB in targeted poverty alleviation efforts during the reporting period[116]. - The company plans to organize job placements for impoverished laborers and internships for college students from poor families to aid in poverty alleviation[117].

Financial Performance - Total operating revenue for the first half of 2017 was CNY 307,633,661.50, representing a 49.65% increase compared to CNY 205,575,053.22 in the same period last year[20]. - Net profit attributable to shareholders for the first half of 2017 was CNY 28,439,128.83, up 68.78% from CNY 16,849,388.44 in the previous year[20]. - Net profit after deducting non-recurring gains and losses reached CNY 27,514,322.17, an increase of 87.53% compared to CNY 14,671,742.56 in the same period last year[20]. - Basic earnings per share for the first half of 2017 was CNY 0.1303, a 44.46% increase from CNY 0.0902 in the previous year[20]. - Operating profit reached 36.35 million yuan, up 88.59% compared to the same period last year[40]. - The company reported a total comprehensive income of CNY 32,219,878.39, compared to CNY 16,885,233.90, representing an increase of 91.0%[157]. Assets and Liabilities - Total assets as of June 30, 2017, were CNY 1,695,806,028.89, reflecting a 13.56% increase from CNY 1,493,292,860.26 at the end of the previous year[20]. - Total liabilities amounted to CNY 470,011,384.18, compared to CNY 314,356,758.34 at the beginning of the period, reflecting an increase of about 49.6%[148]. - Short-term loans increased to CNY 189,176,313.4, representing an increase of 11.16% in total liabilities, primarily due to the acquisition financing[58]. - The company's cash and cash equivalents decreased to CNY 285,762,441.74 from CNY 332,141,934.09, a decline of approximately 14.0%[146]. Cash Flow - The net cash flow from operating activities was negative CNY 26,068,615.78, a decline of 208.63% compared to a positive CNY 23,997,581.20 in the same period last year[20]. - The cash flow from investment activities has a net outflow of CNY -152,294,912.62, worsening from a net outflow of CNY -53,380,201.15 in the previous period[163]. - The cash inflow from investment activities totaled 104,401,910.96 CNY, an increase from 61,889,510.96 CNY in the previous period, suggesting improved investment returns[167]. Business Expansion and Acquisitions - The company completed the acquisition of 51% of Shaanxi Ande Technology Co., Ltd., expanding its service market in water treatment and enhancing its environmental governance industry chain[28]. - The company is actively pursuing business expansion in regions such as Henan, Sichuan, and Xinjiang, and is involved in PPP projects[43]. - The company has signed a framework agreement for a PPP project with Alar City in Xinjiang, aligning with national strategies[47]. Research and Development - Research and development investment increased to 8.53 million yuan, a rise of 73.47% year-on-year[50]. - The company is focusing on expanding its core business in water treatment agents, municipal and industrial wastewater treatment[41]. - The company is actively developing non-phosphorus water treatment agents and has made progress in this area[33]. Risk Management - The company emphasizes the importance of risk management and has outlined potential risks and countermeasures in the report[4]. - The company plans to enhance its risk management capabilities in response to macroeconomic and policy risks affecting the environmental protection industry[84]. - The company is committed to cautious investment and ensuring the safety and rational use of raised funds to protect shareholder interests[68]. Shareholder Information - The total number of shares is 218,321,965, with 63.74% being restricted shares[123]. - Wang Zhiqing holds 43.64% of the shares, totaling 95,270,000 shares, with 70,000 shares pledged[129]. - The company will not distribute cash dividends or issue bonus shares for the half-year period, indicating a focus on reinvestment[92]. Environmental and Social Responsibility - The company has contributed 0.17 million in funds for targeted poverty alleviation efforts[116]. - The company plans to enhance its poverty alleviation initiatives by organizing job placements and internships for impoverished families[118]. - The company does not belong to the key pollutant discharge units as per environmental protection department announcements[119]. Legal and Compliance - There were no major litigation or arbitration matters during the reporting period, reflecting a stable legal environment for the company[97]. - The company has not experienced any significant penalties or corrective actions during the reporting period, indicating compliance with regulations[98]. Market Conditions - The company reported a significant increase in raw material prices during the first half of 2017, which could pressure profit margins if product prices do not rise correspondingly[85]. - The company is facing intensified market competition in the water treatment agent industry, leading to a decline in gross profit margins for its water treatment agent business[85].

Financial Performance - The company achieved operating revenue of 478.77 million yuan in 2016, representing a year-on-year increase of 20.28% compared to 398.03 million yuan in 2015[20]. - Net profit attributable to shareholders was 45.24 million yuan, up 15.63% from 39.12 million yuan in the previous year[20]. - The company reported a net profit of 42.29 million yuan after deducting non-recurring gains, marking a 24.55% increase from 33.95 million yuan in 2015[20]. - The total assets of the company reached 1.49 billion yuan at the end of 2016, a significant increase of 210.68% from 480.65 million yuan at the end of 2015[20]. - The company’s basic earnings per share were 0.2296 yuan, reflecting a slight increase of 0.48% from 0.2285 yuan in the previous year[20]. - The company’s total equity attributable to shareholders increased to 1.18 billion yuan, up 178.51% from 423.30 million yuan in 2015[20]. - The company reported a net profit for the year, with accumulated profits reaching a significant amount during the specified period[133]. - The company's net profit for 2016 was CNY 45,236,797.72, representing a 10% increase compared to the previous year[129]. Dividend Policy - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares (including tax) based on a profit distribution plan of 218,321,965 RMB[6]. - The proposed cash dividend for 2016 is CNY 0.8 per share, totaling CNY 17,465,757.20, with no stock bonus or capital reserve conversion planned[130]. - The cash dividend payout ratio for 2016 is 38.60% of the net profit attributable to shareholders[131]. - In 2015, the company distributed a cash dividend of CNY 1.50 per share, totaling CNY 10,005,000.00, which was 25.57% of the net profit[131]. - The cash dividend represents 100% of the total distributable profit, aligning with the company's policy to distribute at least 20% of the annual distributable profit[128]. - The company has consistently maintained a positive profit distribution policy over the past three years[131]. Acquisitions and Investments - The company completed the acquisition of Henan Tongsheng Environmental Engineering Co., Ltd., expanding its business into municipal wastewater treatment and environmental engineering design[31]. - The company completed the acquisition of 100% equity of Henan Tongsheng Environmental Engineering Co., Ltd. for a total transaction value of 494.8 million yuan, with 322.28 million yuan paid in shares and 172.52 million yuan in cash[145]. - The company plans to acquire 51% of Shaanxi Ande Technology Co., Ltd. for RMB 80,702,000, and as of December 31, 2016, it has obtained 41.15% of the equity[180]. - The company has established a new subsidiary in Shanxi Province through Henan Tongsheng Environmental Engineering Co., Ltd. using its own funds[181]. - The company has completed the acquisition of 100% equity of Henan Tongsheng Environmental Engineering Co., Ltd. and raised a total of RMB 410,949,981 through a private placement of shares at a price of RMB 23.40 per share, resulting in the issuance of 17,561,965 new shares[176]. Research and Development - The company issued 36 technical specifications to clients and revised 15 production process documents in 2016, demonstrating its commitment to R&D[43]. - The company obtained 21 invention patents and has 2 invention patents and 7 utility model patents pending[43]. - The company is developing heavy metal pollution remediation technology in collaboration with Tongji University, with successful preliminary tests showing compliance with national standards[63]. - The company has completed the small-scale production of a new biocide product, which has received positive feedback from customers[64]. - The company has made significant progress in developing a tracer-type scale inhibitor and dispersant, which improves water treatment efficiency and reduces environmental impact[65]. - The company is increasing its R&D investment, targeting at least 4% of sales revenue for R&D funding, and is establishing new research centers to accelerate the development of environmental technologies[109]. Market and Industry Outlook - The company plans to leverage the growth opportunities in the environmental protection industry, particularly in water treatment, to enhance its business model[31]. - The water treatment industry accounted for 91.51% of total revenue in 2016, with revenue of CNY 438,145,389.08, up 25.35% from CNY 349,532,642.68 in 2015[48]. - The company anticipates that the environmental protection industry will enter a period of rapid growth, driven by supportive government policies and increased investment[103]. - The company aims to enhance its capabilities in municipal and industrial wastewater treatment, focusing on three key areas: municipal sewage treatment, rural sewage treatment, and water supply and drainage network construction[107]. - The company is actively exploring PPP project markets in various sectors, including wastewater treatment and environmental remediation, to optimize its existing business[105]. Financial Management and Risk Control - The company plans to strengthen financial management and risk control to mitigate the increasing pressure from accounts receivable and bad debt risks[119]. - The company recognizes risks from macroeconomic conditions and policy changes that could impact its profitability, particularly in the municipal public environmental protection sector[115]. - The company faces risks from fluctuations in raw material prices, which could pressure profit margins if product prices do not increase correspondingly[116]. - The company is managing multiple new projects, including a 30,000-ton water treatment agent project, and aims to ensure they quickly achieve stable operations to avoid negative impacts on performance[118]. Compliance and Governance - The company emphasizes compliance with regulatory requirements and internal commitments to maintain shareholder trust[134]. - The company and its main management personnel have not faced any administrative or criminal penalties in the last five years, indicating a clean compliance record[133]. - The company has committed to timely handling of asset ownership changes and assumes responsibility for any disputes arising during this process[135]. - The company has established a clear framework for accountability regarding cash flow performance and share transfer obligations[133]. - The company has committed to reducing related party transactions and ensuring fair pricing in accordance with legal regulations[135]. Shareholder Relations and Stock Management - The company plans to implement stock price stabilization measures if its stock price falls below a certain threshold for 20 consecutive trading days[137]. - The company will repurchase shares amounting to no less than 30% of the previous fiscal year's net profit for stabilizing stock prices[138]. - The controlling shareholder and spouse are committed to increasing their holdings within 30 trading days from the announcement date, with a minimum investment of 30% of their after-tax cash dividends received from the company[138]. - The company has established a framework for evaluating and implementing compensation measures related to its stock price stabilization efforts[137]. - The company will ensure compliance with relevant laws and regulations in all its business activities[136].