成都深冷液化设备股份有限公司 2018 年第三季度报告全文 成都深冷液化设备股份有限公司 2018 年第三季度报告 2018-057 2018 年 10 月 1 成都深冷液化设备股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人谢乐敏、主管会计工作负责人曾斌及会计机构负责人(会计主管 人员)曾斌声明：保证季度报告中财务报表的真实、准确、完整。 2 成都深冷液化设备股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □是√否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增 | | --- | --- | --- | --- | --- | | | | | | 减 | | 总资产（元） | 1,102,019,302.27 | | 962,608,715.00 | 14.48% | | 归属于上 ...

Financial Performance - Total revenue for the first half of 2018 was CNY 112,929,233.98, a decrease of 10.54% compared to CNY 126,232,482.85 in the same period last year[19]. - Net profit attributable to shareholders was CNY 7,299,445.81, down 1.71% from CNY 7,426,435.43 year-on-year[19]. - Net profit after deducting non-recurring gains and losses surged by 307.66% to CNY 6,697,931.94 from CNY 1,643,031.41 in the previous year[19]. - The company achieved operating revenue of 112.93 million yuan, a decrease of 10.54% compared to the same period last year[30]. - The net profit attributable to shareholders was 7.30 million yuan, down 1.71% year-on-year[30]. - The net profit for the current period is CNY 6,592,722.57, a decrease of 9.2% compared to CNY 7,265,796.09 in the previous period[124]. - The net profit for the current period is ¥8,642,591.06, compared to ¥8,022,752.74 in the previous period, indicating an increase of about 7.7%[128]. Cash Flow and Liquidity - The company reported a net cash flow from operating activities of CNY -30,106,054.44, an improvement from CNY -42,123,389.38 in the same period last year[19]. - Cash flow from operating activities improved, with a net cash flow of -30.11 million yuan, a 28.53% reduction in losses compared to the previous year[35]. - The company’s cash and cash equivalents increased by 196.87% year-on-year, totaling -51.15 million yuan[35]. - The cash flow from operating activities shows a net outflow of ¥30,106,054.44, an improvement from a net outflow of ¥42,123,389.38 in the previous period[130]. - The total operating cash inflow for the current period is ¥100,900,659.35, compared to ¥53,964,080.74 in the previous period, representing an increase of approximately 86.8%[130]. - The company distributed dividends and interest payments totaling 4,791,633.80 CNY, down from 8,000,000.00 CNY, reflecting a conservative approach to cash distribution[136]. Assets and Liabilities - Total assets increased by 5.65% to CNY 1,017,039,662.47 from CNY 962,608,715.00 at the end of the previous year[19]. - The total assets amount to CNY 960,266,009.31, an increase from CNY 913,419,009.78 at the beginning of the period[120]. - The total liabilities of the company increased to CNY 355,183,660.62 from CNY 304,000,733.11, reflecting a rise of approximately 16.8%[115]. - The total liabilities increased to CNY 320,163,603.40 from CNY 278,614,492.32, representing a rise of 14.9%[120]. - The company's equity attributable to shareholders reached CNY 651,360,908.85, slightly up from CNY 647,406,165.65, showing a marginal increase of about 0.4%[116]. Investment and Capital Expenditure - The company has committed a total of 29,730 million CNY for investment projects, with 19,200 million CNY utilized by the end of the reporting period, achieving a utilization rate of 96%[44]. - The company has allocated 4,410 million CNY for the natural gas liquefaction facility project and 5,320 million CNY for the deep cold liquefaction technology research center project, both of which are on track[44]. - The company has invested 20,000 million CNY to supplement its working capital, with 19,200 million CNY utilized, indicating a 96% utilization rate[44]. - The company reported a total investment cash outflow of 130,194,655.00 CNY, down from 170,042,427.00 CNY, indicating a reduction in capital expenditures[136]. Research and Development - The company continues to focus on research in gas low-temperature liquefaction and separation technology, with a commitment to expanding its product offerings in the LNG and liquid air separation sectors[26]. - Four new invention patents and eight utility model patents were added, including technologies for LNG production and gas separation[33]. - The company is focusing on technological advancements and innovation to enhance its competitive edge in the market[146]. Corporate Governance and Shareholder Information - The company held its first extraordinary general meeting of 2018 on April 9, with an investor participation rate of 61.34%[59]. - The annual general meeting in 2017 had a participation rate of 42.30%[59]. - The company has implemented a restricted stock incentive plan, granting 3.2 million shares, with an initial grant of 3 million shares at a price of 10.65 CNY per share[66]. - A total of 2,910,000 CNY was added to the registered capital, with shareholders contributing 30,991,500 CNY in cash[67]. - The company’s total share capital after the stock incentive plan is 82.91 million shares[67]. - The total number of common shareholders at the end of the reporting period is 12,704[94]. - The largest shareholder, Xie Lemin, holds 12.92% of shares, totaling 5,362,915 shares[94]. Risk Management - The company has identified potential risks and has outlined corresponding mitigation strategies in its report[5]. - The company faces risks related to the timely collection of accounts receivable, which may impact asset quality and financial status[56]. Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[146]. - The company has set a performance guidance for the next quarter, aiming for a revenue growth of 10%[146]. - Future outlook includes potential market expansion and new product development, although specific figures were not provided in the report[136].

Financial Performance - Total operating revenue for Q1 2018 was ¥35,386,094.91, an increase of 44.58% compared to ¥24,474,430.14 in the same period last year[8] - Net profit attributable to shareholders was -¥4,199,164.15, a 13.32% improvement from -¥4,844,324.12 year-on-year[8] - The company achieved operating revenue of 35,386,094.91 yuan, an increase of 44.58% year-on-year, with a net profit of -4,199,164.15 yuan[17] - The net loss for Q1 2018 was CNY 4,438,777.42, compared to a net loss of CNY 5,220,336.31 in the same period last year, showing an improvement of approximately 15%[40] - The company reported a total comprehensive loss of CNY -4,438,777.42, compared to CNY -5,220,336.31 in the same period last year, reflecting a reduction in losses of about 15%[41] Cash Flow - Net cash flow from operating activities was -¥35,945,066.67, a decrease of 20.33% compared to -¥29,871,055.90 in the previous year[8] - Cash flow from operating activities was CNY 35,902,750.77, significantly higher than CNY 14,122,948.61 in the previous period, indicating a growth of approximately 153%[46] - The net cash flow from operating activities was -35,945,066.67 yuan, compared to -29,871,055.90 yuan in the previous period, indicating a decline in operational cash flow[47] - The total cash outflow from operating activities was 72,979,899.19 yuan, compared to 51,698,754.31 yuan in the previous period[47] - The cash inflow from sales of goods and services was 26,105,720.77 yuan, significantly higher than 9,377,431.91 yuan in the previous period[50] Assets and Liabilities - Total assets at the end of the reporting period were ¥986,652,123.42, reflecting a 2.50% increase from ¥962,608,715.00 at the end of the previous year[8] - Total current assets increased to ¥929,371,921.84 from ¥904,764,640.89, representing a growth of approximately 2.7%[31] - Total liabilities increased to ¥332,162,947.43 from ¥304,000,733.11, marking an increase of about 9.3%[33] - The total equity decreased to CNY 631,209,093.25 from CNY 634,804,517.46, a decline of about 0.6%[40] Operating Costs and Expenses - The company experienced a 44.20% increase in operating costs, aligning with the rise in operating revenue[16] - Total operating costs for Q1 2018 were CNY 39,839,252.33, up from CNY 32,188,354.10 in the previous period, indicating an increase of about 23.6%[39] - The company reported a decrease in sales expenses to CNY 1,422,085.35 from CNY 1,548,425.57, a reduction of about 8.2%[40] Orders and Contracts - In Q1 2018, the company signed new orders totaling 305 million yuan, showing significant growth compared to the same period last year[17] - Major new orders include projects for methane deep cooling separation and liquefaction, a 1 million cubic meter per day pipeline natural gas liquefaction project, and a 6000 full liquid air separation device[17] Other Financial Information - The company has accumulated a total of 19,200,000 yuan from fundraising, representing 96.00% of the planned investment[24] - The company has proposed a stock incentive plan to grant 3.2 million restricted shares, with 3 million shares to be granted initially[20] - The company received tax refunds amounting to 72,649.58 yuan during the reporting period[47] - The company did not conduct an audit for the first quarter report[52]

Financial Performance - The company's operating revenue for 2017 was CNY 239,550,930.96, a decrease of 22.24% compared to CNY 308,072,671.22 in 2016[17]. - The net profit attributable to shareholders for 2017 was CNY 19,282,583.15, down 50.03% from CNY 38,588,744.72 in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 5,547,826.21, a decline of 82.51% compared to CNY 31,720,544.18 in 2016[17]. - Basic earnings per share decreased by 58.36% to CNY 0.2410 from CNY 0.5788 in 2016[17]. - The total operating cost for 2017 was CNY 170,523,957.26, which is a decrease of 15.54% from CNY 201,907,633.33 in 2016[49]. - The company reported a significant reduction in sales expenses by 8.15% to CNY 9,298,235.18, while management expenses decreased by 6.62% to CNY 32,303,960.18[53]. - The company's total liabilities increased to CNY 304,000,733.11 from CNY 262,762,307.88, representing a rise of about 15.7%[200]. Assets and Liabilities - Total assets at the end of 2017 were CNY 962,608,715.00, an increase of 6.07% from CNY 907,520,055.14 at the end of 2016[17]. - The net assets attributable to shareholders increased by 1.95% to CNY 647,406,165.65 from CNY 635,047,763.88 in 2016[17]. - Current assets totaled CNY 904,764,640.89, up from CNY 851,772,234.66, indicating an increase of approximately 6.2%[198]. - The cash and cash equivalents rose to CNY 229,836,550.66 from CNY 177,371,858.92, marking a significant increase of about 29.6%[197]. - Accounts receivable increased to CNY 385,035,410.60 from CNY 380,350,931.63, showing a slight growth of around 1.8%[198]. - The total current liabilities increased to CNY 302,592,733.11 from CNY 261,354,307.88, reflecting a rise of about 15.8%[199]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.50 per 10 shares, totaling CNY 4,000,000, based on 80,000,000 shares[4]. - The company reported a cash dividend of 0.5 yuan per 10 shares, totaling 4 million yuan, with a cash dividend payout ratio of 20.74% of the net profit attributable to shareholders[85][89]. - The company has maintained a consistent profit distribution policy, with no dividends in 2015, 8 million yuan in 2016, and 4 million yuan in 2017[86][89]. Contracts and Projects - The total amount of new contracts signed during the reporting period was 305 million yuan, primarily involving natural gas liquefaction devices and LNG gas stations[39]. - The company successfully launched several projects, including a natural gas liquefaction device for Beihai City and a coal gas liquefaction project for Inner Mongolia Yuantong Coal Chemical Group[38]. - The company signed a significant sales contract for a natural gas liquefaction project with a processing capacity of 1 million cubic meters per day, which is currently under construction and expected to be operational in 2018[47]. Research and Development - Research and development investment for 2017 amounted to CNY 12,820,000, resulting in the acquisition of 3 invention patents and 7 utility model patents[42]. - R&D investment amounted to ¥12,824,205.10 in 2017, representing 5.35% of operating revenue, an increase from 4.69% in 2016[54]. - The company aims to develop new products and technologies, including modular design for small LNG units, which can reduce construction time by 3-6 months compared to traditional assembly methods[74]. Market Position and Industry Trends - The natural gas consumption in China reached 235.2 billion cubic meters in 2017, with a year-on-year growth of 17%[28]. - The company is positioned to benefit from national policies promoting natural gas as a key clean energy source, aiming for a 10% share in primary energy consumption by 2020[28]. - In 2017, China's natural gas demand increased by 31 billion cubic meters, a growth of 15% compared to 2016, with total LNG demand reaching 38 million tons, making China the second-largest LNG importer globally[71]. - The global LNG market size grew by 29 million tons by the end of 2017, with liquefaction capacity expansion completed at 45%[71]. Corporate Governance and Management - The company has maintained a stable management team with no changes in the positions of directors, supervisors, and senior management during the reporting period[141]. - The independent directors attended all board meetings and shareholder meetings, with no objections raised against company matters[167][168]. - The company has established a performance evaluation system for senior management, linking their performance directly to compensation[173]. - The audit committee reviewed internal control and related party transactions, ensuring compliance and effective oversight[170]. Employee and Labor Relations - The total number of employees in the company is 256, with 197 in the parent company and 59 in major subsidiaries[152]. - The company has a professional composition of 80 production personnel, 69 sales personnel, 68 technical personnel, 8 financial personnel, and 31 administrative personnel[152]. - The company has implemented a salary system based on responsibility, ability, and performance to encourage employee contributions[154]. - The company has a 100% labor contract signing rate for employees during the reporting period[154]. Audit and Compliance - The audit opinion issued was a standard unqualified opinion, indicating that the financial statements fairly reflect the company's financial position and results of operations[179]. - The company had zero significant deficiencies in internal controls for both financial and non-financial reports during the reporting period[179]. - The management is responsible for ensuring the financial statements are prepared in accordance with accounting standards and maintaining necessary internal controls[188].

[Important Notice](index=2&type=section&id=Section%20I%20Important%20Notice) The Board of Directors and management confirm the truthfulness and completeness of this quarterly report [Board of Directors' Statement](index=2&type=section&id=1.1%20Board%20of%20Directors'%20Statement) The Board of Directors, Supervisory Board, and all senior management affirm the truthfulness, accuracy, and completeness of this quarterly report - Company management confirms the truthfulness, accuracy, and completeness of the quarterly report[5](index=5&type=chunk) - Company head Xie Lemin, chief accountant Zeng Bin, and head of accounting department Zeng Bin ensure the financial statements are true, accurate, and complete[6](index=6&type=chunk) [Company Profile](index=3&type=section&id=Section%20II%20Company%20Profile) The company's Q3 2017 financial performance shows a significant decline in revenue and net profit, while shareholder structure indicates a concentrated ownership by the controlling shareholder and related parties [Key Accounting Data and Financial Indicators](index=3&type=section&id=II.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) As of Q3 2017, total assets were CNY 904 million, with revenue at CNY 160 million and net profit at CNY 10.37 million, both significantly declining due to reduced contracts | Item | Year-Beginning to Period-End | YoY Change from Year-Beginning to Period-End (%) | | :--- | :--- | :--- | | Operating Revenue (CNY) | 159,641,272.68 | -38.54% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 10,372,041.73 | -70.71% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) (CNY) | 4,535,615.54 | -86.86% | | Basic Earnings Per Share (CNY/share) | 0.13 | -77.19% | | Weighted Average Return on Net Assets (%) | 1.63% | -8.60% | | Net Cash Flow from Operating Activities (CNY) | -60,183,914.65 | N/A | Non-Recurring Gains and Losses (Year-Beginning to Period-End) | Item | Amount (CNY) | | :--- | :--- | | Government Grants Recognized in Current Profit/Loss | 6,961,711.89 | | Net Other Non-Operating Income/Expenses | -38,221.93 | | Income Tax Impact | -1,038,523.49 | | Impact on Minority Interests (After Tax) | -48,540.28 | | **Total** | **5,836,426.19** | [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings%20at%20Period-End) As of the reporting period, the company had 12,015 common shareholders, with controlling shareholder Xie Lemin and his concerted parties holding a significant stake - At the end of the reporting period, the company had **12,015** common shareholders[13](index=13&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | Number of Restricted Shares Held | | :--- | :--- | :--- | :--- | | Xie Lemin | 13.39% | 10,714,200 | 10,714,200 | | Sichuan Jianyang Gangtong Economic and Technological Development Co., Ltd. | 11.38% | 9,107,100 | 5,919,615 | | Wuxi Chuxiang Jiaxin Investment Enterprise (Limited Partnership) | 8.04% | 6,428,600 | 0 | | Duilong Chuxiang Hengtong Investment Enterprise (Limited Partnership) | 5.02% | 4,017,900 | 0 | | Wen Xiangnan | 4.02% | 3,214,300 | 3,214,300 | | Huang Su | 4.02% | 3,214,300 | 3,214,300 | | Cheng Yuan | 4.02% | 3,214,300 | 3,214,300 | | Xiao Huihe | 3.35% | 2,678,600 | 2,678,600 | | Cui Zhixiang | 3.01% | 2,410,700 | 2,410,700 | | Zhang Jianhua | 3.01% | 2,410,700 | 2,410,700 | - Shareholder relationship explanation: Xie Lemin is the company's controlling shareholder, and Wen Xiangnan, Cheng Yuan, Huang Su, Xiao Huihe, Zhang Jianhua, Cui Zhixiang are his concerted parties; Wuxi Chuxiang Jiaxin Investment Enterprise and Duilong Chuxiang Hengtong Investment Enterprise are related parties[14](index=14&type=chunk) - During the reporting period, **24,080,385** restricted shares from the initial public offering held by some shareholders were released from lock-up[16](index=16&type=chunk) [Significant Events](index=6&type=section&id=Section%20III%20Significant%20Events) The company experienced significant changes in key financial data, including revenue and net profit declines, while confirming no unfulfilled commitments or illegal financial activities during the reporting period [Significant Changes in Key Financial Data and Their Causes](index=6&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Their%20Causes) During the reporting period, key financial metrics like revenue and net profit significantly declined due to reduced contracts and lower gross margins, while cash flow was impacted by wealth management product purchases and reduced sales collections - Reasons for Balance Sheet Item Changes: - **Cash and cash equivalents** decreased by **73.33%** from the beginning of the period, primarily due to the purchase of principal-protected wealth management products[18](index=18&type=chunk) - **Other current assets** increased by **88.67%** from the beginning of the period for the same reason[18](index=18&type=chunk) - **Prepayments** increased by **78.48%** from the beginning of the period, mainly due to advance payments for procurement contracts[18](index=18&type=chunk) - **Notes payable** decreased by **47.24%** from the beginning of the period, primarily due to the maturity and payment of notes[18](index=18&type=chunk) - Reasons for Income Statement Item Changes: - **Operating revenue** decreased by **38.54%** year-on-year, mainly due to a reduction in contract volume during the reporting period[18](index=18&type=chunk) - **Net profit** decreased by **72.19%** year-on-year, primarily due to reduced operating revenue and a decline in gross profit margin[18](index=18&type=chunk) - **Financial expenses** decreased by **212.83%** year-on-year, mainly due to increased interest income from structured deposits[18](index=18&type=chunk) - **Non-operating income** increased by **411.59%** year-on-year, primarily due to the receipt of government grants[18](index=18&type=chunk) - Reasons for Cash Flow Statement Item Changes: - **Cash inflow from operating activities** decreased by **53.41%** year-on-year, mainly due to reduced cash received from sales of goods[18](index=18&type=chunk) - **Cash inflow from investing activities** was **CNY 120 million**, resulting from the maturity and redemption of principal-protected wealth management products[18](index=18&type=chunk) - **Cash outflow from investing activities** was **CNY 170 million**, primarily due to the purchase of principal-protected wealth management products[18](index=18&type=chunk) [Other Significant Matters](index=6&type=section&id=2.2%20Other%20Significant%20Matters) The company reported no significant unfulfilled commitments, illegal external guarantees, or non-operating fund occupation by controlling shareholders during the period - The company had no overdue unfulfilled commitments during the reporting period[19](index=19&type=chunk) - The company had no illegal external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[20](index=20&type=chunk)[21](index=21&type=chunk) [Financial Statements](index=8&type=section&id=Section%20IV%20Financial%20Statements) The financial statements for Q3 2017 show a decline in assets, revenue, and net profit, with negative cash flows from operations and investing activities, and the report remains unaudited [Consolidated Balance Sheet](index=8&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2017, the company's total assets were CNY 904 million, with total liabilities at CNY 256 million and owner's equity at CNY 638 million, showing a high proportion of accounts receivable and reduced cash due to wealth management purchases Key Items from Consolidated Balance Sheet (Unit: CNY) | Item | Period-End Balance (2017-09-30) | Period-Beginning Balance (2016-12-31) | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 47,306,336.36 | 177,371,858.92 | | Accounts Receivable | 461,467,534.57 | 380,350,931.63 | | Inventories | 47,916,476.42 | 53,124,365.25 | | Other Current Assets | 102,167,993.29 | 54,151,460.85 | | **Total Assets** | **904,131,496.01** | **907,520,055.14** | | **Liabilities** | | | | Notes Payable | 27,147,221.07 | 51,454,885.18 | | Accounts Payable | 144,099,264.04 | 135,821,065.83 | | **Total Liabilities** | **255,915,450.69** | **262,762,307.88** | | **Owners' Equity** | | | | Total Owners' Equity Attributable to Parent Company | 638,213,389.29 | 635,047,763.88 | | **Total Liabilities and Owners' Equity** | **904,131,496.01** | **907,520,055.14** | [Consolidated Income Statement (Current Period)](index=13&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20Current%20Period) In Q3 2017, the company's operating revenue was CNY 33.41 million, and net profit attributable to parent company owners was CNY 2.95 million, both significantly declining year-on-year due to reduced income Consolidated Income Statement (Q3 2017) (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | I. Total Operating Revenue | 33,408,789.83 | 93,289,949.25 | | II. Total Operating Costs | 29,501,283.09 | 85,369,274.93 | | Including: Operating Costs | 19,393,080.28 | 69,252,289.00 | | Financial Expenses | -967,514.97 | 851,438.64 | | III. Operating Profit | 3,907,506.74 | 7,920,674.32 | | IV. Total Profit | 3,975,918.63 | 9,066,034.32 | | V. Net Profit | 3,398,918.29 | 7,845,707.43 | | Net Profit Attributable to Owners of Parent Company | 2,945,606.30 | 6,970,242.79 | [Consolidated Income Statement (Year-Beginning to Period-End)](index=17&type=section&id=5.%20Consolidated%20Income%20Statement%20from%20Year-Beginning%20to%20Period-End) For the first three quarters of 2017, cumulative operating revenue was CNY 160 million and net profit attributable to parent company owners was CNY 10.37 million, both significantly decreasing, with negative financial expenses due to interest income Consolidated Income Statement (Jan-Sep 2017) (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | I. Total Operating Revenue | 159,641,272.68 | 259,744,094.30 | | II. Total Operating Costs | 154,068,484.10 | 216,286,233.37 | | Including: Operating Costs | 121,675,115.82 | 165,556,758.91 | | Financial Expenses | -3,009,907.11 | 2,667,628.46 | | III. Operating Profit | 5,572,788.58 | 43,457,860.93 | | Add: Non-Operating Income | 6,961,711.89 | 1,360,810.00 | | IV. Total Profit | 12,496,278.54 | 44,334,175.46 | | V. Net Profit | 10,664,714.38 | 38,350,907.41 | | Net Profit Attributable to Owners of Parent Company | 10,372,041.73 | 35,409,307.71 | [Consolidated Cash Flow Statement (Year-Beginning to Period-End)](index=21&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period-End) In the first three quarters of 2017, net cash flow from operating activities was negative CNY 60.18 million due to reduced sales collections, while investing activities showed a net outflow of CNY 50.16 million from wealth management product purchases, leading to a significant decrease in period-end cash and cash equivalents Consolidated Cash Flow Statement (Jan-Sep 2017) (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -60,183,914.65 | -26,477,615.69 | | Net Cash Flow from Investing Activities | -50,156,697.89 | -433,021.37 | | Net Cash Flow from Financing Activities | -9,359,849.00 | 236,720,882.33 | | Net Increase in Cash and Cash Equivalents | -119,700,461.54 | 209,810,245.27 | | Period-End Balance of Cash and Cash Equivalents | 33,708,964.95 | 227,132,322.55 | [Audit Report](index=24&type=section&id=II.%20Audit%20Report) The company's Q3 2017 report is unaudited - The company's third-quarter report is unaudited[52](index=52&type=chunk)

Financial Performance - Total revenue for the first half of 2017 was CNY 126,232,482.85, a decrease of 24.16% compared to CNY 166,454,145.05 in the same period last year[20]. - Net profit attributable to shareholders was CNY 7,426,435.43, down 73.89% from CNY 28,439,064.92 year-on-year[20]. - Net profit after deducting non-recurring gains and losses was CNY 1,643,031.41, a decline of 94.25% compared to CNY 28,560,474.37 in the previous year[20]. - Basic earnings per share decreased by 80.85% to CNY 0.09 from CNY 0.47 in the same period last year[21]. - The net cash flow from operating activities was negative CNY 42,123,389.38, a significant decline from positive CNY 4,067,616.40 in the previous year, representing a decrease of 1,135.58%[20]. - The company reported a significant increase in asset impairment losses, which rose to CNY 4,332,618.35 from CNY 12,557,492.89, indicating a reduction of 65.5%[111]. - The total profit for the first half of 2017 was CNY 8,520,359.91, a decrease of 75.8% compared to CNY 35,268,141.14 in the same period of 2016[111]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 906,895,203.71, a slight decrease of 0.07% from CNY 907,520,055.14 at the end of the previous year[21]. - Total current assets decreased slightly to CNY 849,494,242.08 from CNY 851,772,234.66, a decline of approximately 0.27%[102]. - Total liabilities decreased to CNY 262,415,419.21 from CNY 262,762,307.88, a reduction of about 0.13%[103]. - The total owner's equity remained relatively stable at CNY 644,479,784.50 compared to CNY 644,757,747.26, a minor decrease of 0.04%[104]. - The company’s monetary funds increased to 66.47 million yuan, representing 7.33% of total assets, up from 5.22% in the previous year[39]. Cash Flow - Cash flow from operating activities showed a net outflow of 42.12 million yuan, a significant decline compared to a net inflow of 4.07 million yuan in the previous year[36]. - Total cash inflow from operating activities was 53,964,080.74 yuan, while cash outflow was 96,087,470.12 yuan, resulting in a net cash flow deficit[118]. - The net cash flow from financing activities was -9,359,849.00 yuan, compared to a positive cash flow of 11,631,142.17 yuan in the previous period[119]. Investments and Projects - The company is currently constructing multiple LNG facilities, including projects in Hegang, Qitaihe, and Rizhao, which are in various stages of installation and commissioning[31]. - The company signed a contract for a daily processing capacity of 1 million cubic meters of pipeline natural gas liquefaction project, with a total contract value of 196 million yuan, expected to generate revenue of 177.7 million yuan[31]. - The total committed investment projects amount to CNY 29,730 million, with CNY 18,200 million utilized by the end of the reporting period, achieving 91% of the planned investment[42]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,100[87]. - The company has a total of 80,000,000 shares, with 60,000,000 shares subject to restrictions and 20,000,000 shares freely tradable[85]. - The largest shareholder, Xie Lemin, holds 13.39% of the shares, amounting to 10,714,200 shares[87]. Risk Factors - The company faces significant risks and has outlined measures to address these risks in the report[6]. - The company faces risks related to a significant decline in operating performance due to macroeconomic downturns and low LNG prices[53]. - The accounts receivable balance remains high, which may negatively impact the company's asset quality and financial condition if not collected in a timely manner[54]. Corporate Governance - The company has not engaged in any significant related party transactions during the reporting period[69]. - There were no major litigation or arbitration matters during the reporting period[64]. - The company has not initiated any poverty alleviation work or plans for the half-year period[80]. Financial Reporting - The half-year financial report has not been audited[62]. - The financial statements were prepared in accordance with the relevant accounting standards, ensuring compliance and accuracy[142]. - The company does not have any publicly issued bonds that are due or have not been fully paid[97].

Financial Performance - Total operating revenue for Q1 2017 was ¥24,474,430.14, a decrease of 28.81% compared to ¥34,380,212.44 in the same period last year[9] - Net profit attributable to shareholders was -¥4,844,324.12, showing a slight improvement from -¥4,947,478.34 year-on-year[9] - Basic and diluted earnings per share were both -¥0.06, compared to -¥0.08 in the same period last year[9] - Net profit was reported at -¥4,844,324.12, reflecting a year-on-year decline of 2.08% attributed to reduced revenue[19] - Operating profit for Q1 2017 was -CNY 7,713,923.96, compared to -CNY 4,098,712.09 in the same period last year[42] - Net profit for Q1 2017 was -CNY 5,220,336.31, worsening from -CNY 3,910,161.66 in the previous year[42] - The total comprehensive income for the first quarter was -4,123,902.07 CNY, compared to -6,094,261.54 CNY in the same period last year[50] Cash Flow - The net cash flow from operating activities was -¥29,871,055.90, significantly worse than -¥3,447,187.68 in the previous year[9] - Cash inflow from operating activities totaled 21,827,698.41 CNY, significantly lower than 94,270,665.13 CNY in the previous year[50] - Cash outflow from operating activities was 51,698,754.31 CNY, compared to 97,717,852.81 CNY in the same period last year[50] - Cash inflow from investment activities was 50,000,000.00 CNY, with cash outflow of 120,000,000.00 CNY, resulting in a net cash flow of -70,000,000.00 CNY[51] - Cash flow from financing activities showed a net outflow of -1,359,849.00 CNY, compared to a net inflow of 7,640,714.38 CNY in the previous year[51] - The net increase in cash and cash equivalents was -101,230,904.90 CNY, contrasting with an increase of 4,189,724.13 CNY in the same period last year[51] - The ending balance of cash and cash equivalents was 52,178,521.59 CNY, down from 21,511,801.41 CNY year-over-year[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥864,064,779.88, down 4.79% from ¥907,520,055.14 at the end of the previous year[9] - Total liabilities decreased from ¥262,762,307.88 to ¥224,257,206.20, a decrease of about 14.7%[35] - The total assets decreased from ¥907,520,055.14 to ¥864,064,779.88, reflecting a decline of approximately 4.8%[34] - The company's total equity stood at CNY 620,335,533.71, slightly down from CNY 624,189,157.15 year-over-year[39] Risks and Challenges - The company faces significant risks including a potential decline in LNG orders and increased competition, which could further impact performance in 2017[11] - The company has a large accounts receivable balance, which poses a risk to asset quality and financial stability if not collected timely[11] - The company faces potential risks and challenges, which are detailed in the risk section of the report[21] - The company reported no new orders during the reporting period, with existing orders affected by industry downturns and the Spring Festival holiday, indicating a potential net profit decline of over 50% in the first half of the year if no significant changes occur in order execution[27] Investments and Fundraising - Total fundraising amounted to ¥29,730 million, with ¥3,000 million invested in the current quarter[24] - Cumulative investment from fundraising reached ¥15,200 million, representing 76.00% of the planned investment[25] - The company invested ¥50 million in financial products, resulting in cash inflow from investment activities[18] Other Financial Metrics - The company reported non-recurring gains and losses of ¥2,272,608.07, primarily from government subsidies[10] - The company received government subsidies, leading to a 1193.76% year-on-year increase in non-operating income[18] - Sales expenses increased by 68.33% year-on-year, mainly due to the expansion of the marketing department and an increase in marketing personnel[18] - The company's inventory increased from ¥53,124,365.25 to ¥55,254,664.17, an increase of about 4.0%[33] - The company's other current assets rose significantly from ¥54,151,460.85 to ¥124,481,470.50, marking an increase of approximately 130%[33] - The company's retained earnings decreased from ¥191,482,271.72 to ¥186,637,947.59, a decline of about 2.9%[36] - The report for the first quarter was not audited[56]

Financial Performance - The company's operating revenue for 2016 was ¥308,072,671.22, a decrease of 32.19% compared to ¥454,298,914.08 in 2015[21] - The net profit attributable to shareholders for 2016 was ¥38,588,744.72, down 36.46% from ¥60,729,821.66 in 2015[21] - The net cash flow from operating activities was negative at ¥59,087,843.84, compared to a negative ¥45,855,968.93 in 2015[21] - The total operating costs for 2016 amounted to CNY 201,907,633.33, down 31.85% from CNY 296,251,124.49 in 2015[56] - The company reported a total revenue of 1.5 billion CNY for the fiscal year 2016, representing a year-over-year growth of 20%[106] - The company reported a net profit attributable to shareholders of 38.59 million yuan for the reporting period, with a cash dividend distribution of 1 yuan per 10 shares, totaling 8 million yuan[98] - The cash dividend accounted for 100% of the total distributable profit, with retained earnings of 180.04 million yuan to be carried forward to the next year[98] Assets and Liabilities - The total assets at the end of 2016 amounted to ¥907,520,055.14, reflecting an increase of 23.85% from ¥732,767,485.78 at the end of 2015[21] - The net assets attributable to shareholders increased by 115.02% to ¥635,047,763.88 from ¥295,343,357.14 in 2015[21] - The company's total assets included CNY 177,371,858.92 in cash, representing 19.54% of total assets, an increase from 3.41% in 2015[68] - The company's inventory decreased by 29.34% to CNY 53,124,365.25 from CNY 75,183,207.43 in 2015[54] - The company's inventory decreased by 4.41% year-on-year, amounting to 53,124,365.25 CNY, which represents 5.85% of total assets[69] - As of December 31, 2016, the company had a total of 52,034,665.77 CNY in restricted assets, including cash and receivables[70] Research and Development - The company invested 14.46 million yuan in research and development, resulting in 3 new invention patents and 9 utility model patents[47] - Research and development expenses for 2016 were CNY 14,461,028.04, representing 4.69% of operating revenue, an increase from 3.65% in 2015[62] - The company has developed a range of LNG process technologies and equipment, with processing capacities from 20,000 to 1,200,000 cubic meters per day, making it one of the few domestic companies with projects exceeding 1,000,000 cubic meters per day[36] - The company aims to enhance its R&D capabilities and innovation to support its transformation and upgrade, addressing the need for complete solutions beyond just technology and equipment[85] - New product development includes optimizing large-scale deep cold liquefaction technology with a processing capacity of over 3 million cubic meters of natural gas per day, and developing intelligent small-scale liquefaction units for various gas sources[86] Market Position and Strategy - The company is positioned as a one-stop solution provider in the LNG industry, focusing on natural gas liquefaction and air separation technology[31] - The company aims to increase the proportion of natural gas in primary energy consumption from 5.9% in 2015 to an estimated 8.3% to 10% by 2020, as outlined in the national "13th Five-Year" plan[32] - The company has a projected annual growth rate of 8.9% for natural gas production, increasing from 1,350 billion cubic meters in 2015 to 2,070 billion cubic meters by 2020[33] - The company is actively involved in promoting the use of natural gas in various sectors, including power generation and transportation, as part of the national strategy to improve air quality[34] - The company plans to expand its market presence in Southeast Asia, targeting a market share increase of 10% within the next two years[106] Risks and Challenges - The company faces risks related to significant declines in operating performance due to various factors including macroeconomic conditions and market competition[6] - The company has a substantial accounts receivable balance, which may impact asset quality and financial status if not collected timely[9] - The company faces risks including potential declines in operating performance due to macroeconomic conditions, low oil prices, and increased market competition[91] Corporate Governance and Compliance - The company has established a strong governance structure with independent directors overseeing key decisions and ensuring compliance with regulatory standards[178][179] - The company has maintained compliance with all commitments without any violations during the reporting period[102] - The company has confirmed that all commitments made by the board and senior management were fulfilled on time[121] - The audit committee conducted regular reviews of internal controls and related party transactions, ensuring compliance and transparency in financial reporting[198] Shareholder Information - The total number of shareholders reached 16,313 by the end of the reporting period[162] - The company has 20 million unrestricted shares, accounting for 25% of total shares post-IPO[155] - The controlling shareholder, Xie Lemin, is a natural person and serves as the chairman and general manager of the company[164] - The actual controller, Xie Lemin, has not changed during the reporting period[165] - The total number of shares held by the chairman, Xie Lemin, is 10,714,200 shares, with no changes during the reporting period[170] Employee and Management Structure - The total number of employees in the company is 260, with 87 in production, 62 in sales, 73 in technical roles, 8 in finance, and 30 in administration[183] - The company has a 100% labor contract signing rate, ensuring compliance with labor laws and regulations[184] - The company has established a comprehensive training system, including new employee orientation, general skills training, management skills training, and professional skills training[185] - The educational background of employees includes 6 with master's degrees or higher, 166 with university degrees, 33 with high school diplomas, and 55 below high school[183]

Financial Performance - Total operating revenue for the reporting period was CNY 93,289,949.25, an increase of 84.38% year-on-year[8]. - Net profit attributable to shareholders was CNY 6,970,242.79, a significant increase of 995.89% year-on-year[8]. - Basic earnings per share rose to CNY 0.11, reflecting a 1,000.00% increase compared to the same period last year[8]. - The weighted average return on equity was 1.63%, a rise of 579.17% year-on-year[8]. - The company achieved operating revenue of RMB 259.74 million in the first three quarters of 2016, an increase of 2.11% compared to the same period last year[26]. - The net profit attributable to shareholders was RMB 35.41 million, a decrease of 1.30% year-on-year[26]. - Total operating revenue for Q3 2016 was CNY 93,289,949.25, an increase of 84.3% compared to CNY 50,596,692.14 in the same period last year[65]. - Net profit for Q3 2016 reached CNY 7,845,707.43, compared to CNY 1,054,769.58 in Q3 2015, representing a significant increase of 644.5%[66]. - The company's total comprehensive income for the year-to-date period was ¥38,350,907.41, compared to ¥36,821,832.75 in the previous year, indicating a growth of approximately 4.1%[78]. Assets and Liabilities - Total assets increased by 27.41% to CNY 933,630,337.92 compared to the end of the previous year[8]. - Net assets attributable to shareholders increased by 113.04% to CNY 629,189,750.43 compared to the end of the previous year[8]. - Current assets increased to CNY 877,068,054.22 from CNY 677,267,935.19, reflecting a growth of approximately 29.5%[55]. - The total liabilities decreased to CNY 281,089,238.39 from CNY 397,114,192.04, a reduction of 29.3%[63]. - The total assets at the end of the third quarter were RMB 933.63 million, with net assets of RMB 629.19 million[26]. - The total liabilities include short-term borrowings of CNY 60,000,000.00, which were not present in the previous period[57]. Cash Flow - The company reported a net cash flow from operating activities of CNY -26,477,615.69, a decrease of 31.16% year-on-year[8]. - Cash and cash equivalents increased by RMB 222.68 million, a significant increase of 891.17%, mainly due to funds raised from the initial public offering[24]. - The cash flow from financing activities increased by RMB 201.65 million, an increase of 860.39%, attributed to the IPO proceeds[25]. - The cash flow from operating activities showed a net outflow of CNY 26,477,615.69, an improvement from a net outflow of CNY 38,462,588.14 in the same quarter last year[85]. - The total cash inflow from financing activities amounted to 375,400,000.00 CNY, compared to 60,000,000.00 CNY in the prior period, showing significant growth in financing[91]. Investments and R&D - Chengdu Deep Cold is investing 50 million yuan in R&D for new technologies aimed at improving product efficiency and reducing costs[42]. - The company is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[42]. - The company raised a total of RMB 297.30 million from the IPO after deducting issuance costs[27]. Risks and Challenges - The company faces risks related to significant fluctuations in operating performance due to macroeconomic conditions and market competition[10]. - The company has a 10% stake in Changtian Natural Gas, which poses potential risks due to uncertainties in project financing and execution[12]. - Important risk factors and major difficulties affecting future operations are outlined in the risk warning section[34]. Market and Customer Insights - The top five customers generated sales of 81.65 million yuan, constituting 87.52% of total sales, with an increase in revenue compared to the same period last year[31]. - User data indicated that the number of active users for the company's products grew by 20% in Q3 2016, reaching a total of 10,000 users[43]. - The company plans to expand its market presence by entering two new provinces in 2017, aiming for a 30% increase in market share[41].