JSSS(SH:600220)2016-04-28 16:00Item 1. Important Notice This section confirms the accuracy and completeness of the quarterly report by the board of directors, supervisory board, and senior management, noting it is unaudited 1.1 Board of Directors', Supervisory Board's, and Senior Management's Statement The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, which remains unaudited - The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report8 - This company's Q1 2016 report is unaudited5 Item 2. Company's Key Financial Data and Shareholder Changes This section details the company's financial performance in Q1 2016, including significant revenue and net profit growth, alongside an analysis of shareholder structure 2.1 Key Financial Data In Q1 2016, the company achieved CNY 434.10 million in revenue, a 17.75% increase, and CNY 33.59 million in net profit, up 571.82%, largely due to non-recurring gains Key Financial Data for Q1 2016 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 434,100,499.53 | 368,661,201.11 | 17.75% | | Net Profit Attributable to Shareholders (Yuan) | 33,593,860.43 | 5,000,401.29 | 571.82% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (Yuan) | 22,489,317.20 | 3,095,350.49 | 626.55% | | Net Cash Flow from Operating Activities (Yuan) | -33,081,230.63 | 170,649,296.41 | -119.39% | | Basic Earnings Per Share (Yuan/share) | 0.0188 | 0.0028 | 571.43% | | Weighted Average Return on Net Assets (%) | 1.85% | 0.30% | Increased by 1.55 percentage points | Non-Recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Entrusted Loans | 12,182,624.99 | | Government Grants Included in Current Profit/Loss | 2,706,000.00 | | Total | 11,104,543.23 | 2.2 Total Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of Report End As of the reporting period end, the company had 159,165 shareholders, with the top four being concerted parties holding 29.988% of voting rights, and most top shareholders having significant equity pledges - As of the reporting period end, the total number of shareholders was 159,16511 Top Four Shareholders' Holdings and Pledge Status | Shareholder Name | Shareholding Ratio (%) | Pledged Quantity (shares) | Pledge Status | | :--- | :--- | :--- | :--- | | Jiangsu Sunshine Group Co., Ltd. | 8.448% | 150,000,000 | Pledged | | Chen Lifen | 8.309% | 148,181,020 | Pledged | | Lu Yu | 8.092% | 144,300,000 | Pledged | | Sun Ningling | 5.139% | 91,648,980 | Pledged | - Jiangsu Sunshine Group Co., Ltd., the largest shareholder, along with Chen Lifen, Lu Yu, and Sun Ningling, are concerted parties, collectively holding 29.988% of the company's voting rights12 Item 3. Significant Events This section analyzes major changes in financial statement items and key financial indicators, along with the ongoing progress of significant matters 3.1 Analysis of Significant Changes and Reasons for Major Accounting Statement Items and Financial Indicators During the reporting period, the company experienced significant changes across financial items, including increased prepayments and construction in progress, higher monetary funds due to short-term borrowings, and substantial growth in operating and net profit driven by lower coal prices and investment income from entrusted loans Major Balance Sheet Changes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Prepayments | 651.04% | Primarily due to increased prepayments for raw materials | | Construction in Progress | 110.67% | Primarily due to the addition of the talent technology R&D building in this period | | Monetary Funds | 47.73% | Primarily due to increased short-term borrowings | Major Income Statement Changes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Investment Income | 2728.81% | Primarily due to increased interest received from entrusted loans in this period | | Operating Profit | 637.79% | Primarily due to decreased coal prices in the thermal power industry and increased profit | | Net Profit | 700.72% | Primarily due to decreased coal prices in the thermal power industry and increased profit | Major Cash Flow Statement Changes | Item | Change (%) | Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -119.39% | Primarily due to increased cash paid for goods purchased and services received | | Net Cash Flow from Financing Activities | -176.50% | Primarily due to increased cash received from borrowings | 3.2 Analysis of Progress, Impact, and Solutions for Significant Events The bankruptcy liquidation of subsidiary Ningxia Sunshine Silicon Industry Co., Ltd. is still ongoing and has not yet concluded - The bankruptcy liquidation of subsidiary Ningxia Sunshine Silicon Industry Co., Ltd., due to severe losses and insolvency, is still in progress and has not yet concluded13 Item 4. Appendix This appendix provides the unaudited consolidated and parent company financial statements for Q1 2016, including balance sheets, income statements, and cash flow statements 4.1 Financial Statements This section presents the unaudited consolidated and parent company financial statements for Q1 2016, encompassing the balance sheet, income statement, and cash flow statement Consolidated Balance Sheet As of March 31, 2016, total assets were CNY 4.45 billion, up 4.93% from year-end, with total liabilities at CNY 2.36 billion and owners' equity attributable to the parent company at CNY 1.83 billion Key Consolidated Balance Sheet Items (Unit: Yuan) | Item | Period-End Balance | Year-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 4,451,831,277.85 | 4,242,786,792.09 | | Total Liabilities | 2,361,204,124.54 | 2,195,606,235.14 | | Total Owners' Equity Attributable to Parent Company | 1,834,556,144.43 | 1,800,962,284.00 | Parent Company Balance Sheet As of March 31, 2016, the parent company's total assets were CNY 4.43 billion, total liabilities CNY 2.67 billion, and total owners' equity CNY 1.76 billion Key Parent Company Balance Sheet Items (Unit: Yuan) | Item | Period-End Balance | Year-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 4,425,262,980.25 | 4,157,123,011.07 | | Total Liabilities | 2,666,537,915.18 | 2,402,870,485.32 | | Total Owners' Equity | 1,758,725,065.07 | 1,754,252,525.75 | Consolidated Income Statement In Q1 2016, consolidated total operating revenue reached CNY 434.10 million, up 17.75%; operating profit was CNY 54.42 million, up 637.79%; and net profit attributable to parent company owners was CNY 33.59 million, up 571.82% Key Consolidated Income Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 434,100,499.53 | 368,661,201.11 | | Operating Profit | 54,422,146.61 | 7,376,397.04 | | Total Profit | 57,107,512.01 | 9,567,282.73 | | Net Profit Attributable to Parent Company Owners | 33,593,860.43 | 5,000,401.29 | Parent Company Income Statement In Q1 2016, the parent company's operating revenue was CNY 296.97 million, largely flat year-over-year, with net profit reaching CNY 4.47 million, a 33.02% increase Key Parent Company Income Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Operating Revenue | 296,972,011.28 | 296,339,663.57 | | Operating Profit | 5,313,973.48 | 3,013,276.82 | | Net Profit | 4,472,539.32 | 3,362,186.33 | Consolidated Cash Flow Statement In Q1 2016, consolidated net cash flow from operating activities was -CNY 33.08 million, a reversal from positive; net cash outflow from investing activities was CNY 27.18 million; and net cash inflow from financing activities was CNY 151.60 million, primarily due to increased borrowings Key Consolidated Cash Flow Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -33,081,230.63 | 170,649,296.41 | | Net Cash Flow from Investing Activities | -27,183,654.15 | -54,275,489.55 | | Net Cash Flow from Financing Activities | 151,598,055.80 | -198,171,861.90 | | Period-End Cash and Cash Equivalents Balance | 363,599,336.38 | 307,649,545.59 | Parent Company Cash Flow Statement In Q1 2016, the parent company's net cash flow from operating activities was -CNY 11.00 million, net cash outflow from investing activities was CNY 6.94 million, and net cash inflow from financing activities was CNY 151.80 million Key Parent Company Cash Flow Statement Items (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -11,003,883.53 | 112,688,307.27 | | Net Cash Flow from Investing Activities | -6,941,291.23 | -12,201,813.52 | | Net Cash Flow from Financing Activities | 151,803,495.80 | -190,667,092.39 | | Period-End Cash and Cash Equivalents Balance | 201,928,325.64 | 158,226,047.35 |