Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 327.66 million, a slight increase of 0.19% compared to RMB 327.05 million in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2021 was approximately RMB 177.28 million, representing a year-on-year increase of 16.91% from RMB 151.64 million[19]. - The basic earnings per share for the first half of 2021 was RMB 0.06, up 20.00% from RMB 0.05 in the same period last year[20]. - The weighted average return on net assets increased to 6.52%, up 2.33 percentage points from 4.19% in the previous year[20]. - The total assets at the end of the reporting period were approximately RMB 3.03 billion, a decrease of 0.74% from RMB 3.05 billion at the end of the previous year[19]. - The net assets attributable to shareholders at the end of the reporting period were approximately RMB 2.62 billion, a slight decrease of 0.36% from RMB 2.63 billion at the end of the previous year[19]. - The company achieved operating revenue of RMB 327,661,966.34, a slight increase of 0.19% compared to the same period last year[40]. - Net profit attributable to shareholders reached RMB 177,282,900, reflecting a steady performance amid market challenges[38]. - The company reported a total revenue of 150,000 million CNY for the first half of 2021, reflecting a significant increase compared to the previous year[92]. - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[92]. Cash Flow and Investments - The net cash flow from operating activities significantly improved to approximately RMB 218.53 million, a substantial increase of 3,526.98% compared to RMB 6.03 million in the previous year[19]. - The company reported a net cash flow from investment activities of RMB 384,866,148.29, an increase of 442.20% year-on-year, attributed to the recovery of funds and dividends from joint ventures[40]. - Cash and cash equivalents increased to ¥313.36 million, representing 10.35% of total assets, up 311.48% from ¥76.15 million last year[45]. - The company reported a cash inflow from other investment-related activities of ¥239,804,571.03, further boosting the total investment cash inflow[167]. - The company reported a total cash inflow from investment activities amounted to ¥577,650,670.41, up from ¥76,264,063.00 in the previous year, marking an increase of over 658%[167]. Market and Industry Insights - The company’s revenue primarily comes from the production and sales of biopesticides, veterinary drugs, feed additives, and related businesses, including cogeneration and online game development[26]. - The veterinary drug and feed additive market is expected to see significant growth due to the increasing scale and specialization of livestock farming, with a focus on high-quality development[29]. - The domestic pesticide industry remains fragmented, with many companies lacking innovation and relying on generic products, which presents opportunities for consolidation and growth for compliant firms[30]. - New regulations in the pesticide industry have raised entry barriers, requiring companies to possess all necessary certifications to operate, leading to the exit of non-compliant firms[31]. - In the first half of 2021, the recovery of pig farming capacity was supported by national policies, indicating a positive outlook for the veterinary drug market due to increasing demand[28]. Environmental Compliance - Environmental compliance was highlighted, with wastewater and emissions meeting regulatory standards, including COD levels below 50 mg/L and SO2 emissions below 35 mg/Nm³[75][76]. - The company has implemented a strict waste management process, ensuring that hazardous waste is disposed of by qualified units, adhering to the principles of resource utilization, reduction, and harmlessness[77]. - The company has established an 8000 T/D wastewater treatment center, with supporting facilities including a 2400 T/D anaerobic pretreatment system and a 4000 T/D high-concentration pretreatment system, ensuring continuous operation and compliance with environmental standards[79]. - The company has not faced any administrative penalties related to environmental issues during the reporting period, indicating compliance with environmental regulations[85]. Corporate Governance and Management - The company is committed to transparency in its financial reporting and governance practices[68]. - The company has committed to maintaining the independence of its management personnel, ensuring that key executives do not hold positions in other enterprises controlled by the actual controller[89]. - The company has pledged to avoid any competition with its controlling shareholder and their closely related family members, ensuring no direct or indirect involvement in competing businesses[90]. - The company has established a complete operational asset structure, ensuring no unauthorized use of its funds or assets[91]. - The company has committed to minimizing related party transactions and ensuring that any unavoidable transactions are conducted in accordance with legal requirements[90]. Strategic Plans and Future Outlook - The company expects a revenue growth guidance of 15% for the second half of 2021, driven by new product launches and market expansion strategies[94]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[94]. - A new product line is set to launch in Q3 2021, anticipated to contribute an additional 10% to overall revenue[94]. - The company plans to continue focusing on market expansion and new product development to drive future growth[162]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[101].

2021 年第一季度报告 公司代码：600226 公司简称：*ST 瀚叶 浙江瀚叶股份有限公司 2021 年第一季度报告 1 / 27 2021 年第一季度报告 一、 二、 11Í 四、 目录 | --- | |----------------| | | | 重要提示 . | | 公司基本情况 . | | 重要事项 . | | 附录 . | 2 / 27 2021 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 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。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人朱礼静、主管会计工作负责人嵇海斌及会计机构负责人（会计主管人员）嵇海斌 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |-------------------------------------------------|------------- ...

Financial Performance - The company reported a net profit attributable to shareholders of -942,258,861.83 CNY for the year 2020, with a parent company net profit of -1,007,340,511.81 CNY[5]. - The company's operating revenue for 2020 was approximately RMB 555.66 million, a decrease of 31.00% compared to 2019[30]. - The net profit attributable to shareholders of the listed company in 2020 was approximately RMB -942.26 million, compared to RMB -655.87 million in 2019[30]. - The net cash flow from operating activities for 2020 was RMB 46.54 million, an improvement from RMB -78.22 million in 2019[30]. - The total assets at the end of 2020 were approximately RMB 3.05 billion, down 26.66% from 2019[30]. - The net assets attributable to shareholders of the listed company decreased by 25.78% to approximately RMB 2.63 billion at the end of 2020[30]. - The basic earnings per share for 2020 was -0.30 yuan, compared to -0.21 yuan in 2019[30]. - The weighted average return on net assets for 2020 was -31.00%, a decline from -16.62% in 2019[30]. - The company reported a net loss of approximately RMB 942.26 million for the year 2020, compared to a net loss of about RMB 655.87 million in 2019[158]. - The company has not conducted any profit distribution for the fiscal year 2020, which is in line with its current financial situation[5]. Audit and Compliance - The company faced a non-standard audit opinion from Tianjian Accounting Firm regarding its 2020 financial statements, indicating potential issues with financial reporting[11]. - The company’s internal control effectiveness was audited and received a negative opinion, highlighting potential weaknesses in governance[11]. - The company has committed to ensuring the accuracy and completeness of the information provided during the transaction process[183]. - The company has established a commitment to disclose any related party transactions in accordance with legal requirements, ensuring transparency and protection of investor interests[168]. Related Party Transactions - The company had a total of 37,812.46 million CNY in receivables from related parties, with 32,100 million CNY of this amount recovered as of the report date[7]. - The company confirmed that the funds occupied by Shen Peijin and related parties were primarily due to prepayments for project investments[199]. - The total amount of funds occupied by the controlling shareholder and its related parties decreased by RMB 8,212.46 million during the reporting period, resulting in a year-end balance of RMB 25,360 million[199]. - The company has resolved all issues related to fund occupation as of the report disclosure date[199]. Business Operations and Strategy - The company plans to continue focusing on core business areas and improving operational efficiency in the upcoming year[30]. - The company aims to enhance its market presence through a professional and systematic sales network covering global markets[42]. - The company is actively involved in the development of new products and technologies through partnerships with universities and research institutions[42]. - The company plans to enhance collaboration with research institutions to improve the technological content and added value of its veterinary and feed additive products[136]. - The company aims to achieve negative growth in the use of chemical fertilizers and pesticides as part of its commitment to sustainable agriculture[98]. Market Trends and Industry Insights - The veterinary and feed additive business is closely linked to the livestock industry's development, with a significant increase in demand for feed additives in 2020 due to the recovery of pig production capacity[42]. - The company anticipates a steady increase in demand for animal nutrition amino acids driven by rising global protein needs[45]. - The overall market for veterinary drugs and feed additives is expected to expand due to the recovery of the livestock industry post-African swine fever[136]. - The company is focusing on agricultural technology innovation, including bio-pesticides and smart agriculture, as part of its strategic initiatives[98]. Shareholder Actions and Commitments - The company initiated a share buyback program with a total fund of no less than RMB 100 million and no more than RMB 200 million, with a buyback period of 12 months starting from July 15, 2020[160]. - The company proposes not to distribute profits or increase capital reserves for the fiscal year 2020, pending shareholder approval[156]. - The major shareholder has pledged to avoid any business activities that may compete with the company, ensuring no conflicts arise in the future[168]. - The controlling shareholder commits to maintain a shareholding that exceeds the combined shareholding of other shareholders and their concerted actors for 36 months post-transaction completion[180]. Research and Development - The company recorded a significant increase in R&D expenses, rising by 187.47% to CNY 176.76 million[64]. - The company is investing heavily in R&D, with a budget increase of 20% aimed at developing innovative technologies[97]. - The biotechnology segment focused on amino acid feed additives, enhancing product technology and efficiency[60]. Challenges and Risks - The company faced significant challenges, including a loss of employees and a substantial decrease in business scale, leading to a bad debt provision of CNY 466.09 million[54]. - The company has acknowledged the risks associated with forward-looking statements and has advised investors to be cautious[6]. - The company faces risks related to strategic transformation, internet security, investment, market competition, and environmental regulations[149].

Financial Performance - Operating revenue for the first nine months was CNY 467,241,171.25, down 29.45% from CNY 662,311,682.00 in the same period last year[10] - Net profit attributable to shareholders of the listed company was CNY 192,021,460.40, a decrease of 11.60% compared to CNY 217,228,302.34 in the same period last year[12] - The net profit after deducting non-recurring gains and losses increased by 4.22% to CNY 184,950,849.26 compared to CNY 177,461,249.71 in the same period last year[12] - Basic earnings per share decreased by 14.29% to CNY 0.06 from CNY 0.07 in the same period last year[12] - Total operating revenue for Q3 2020 was ¥140,195,723.68, a decrease of 29% compared to ¥197,230,938.78 in Q3 2019[62] - Net profit for Q3 2020 was ¥40,355,228.28, down from ¥65,294,922.25 in Q3 2019, reflecting a decline of approximately 38%[66] - The company reported a total comprehensive income of ¥39,715,102.87 for Q3 2020, compared to ¥65,624,053.31 in Q3 2019, showing a significant decrease[72] - Basic earnings per share for Q3 2020 were ¥0.01, down from ¥0.02 in Q3 2019, indicating reduced profitability[72] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,151,759,496.38, a decrease of 0.18% compared to the end of the previous year[10] - The company's total assets increased by 13.54% in long-term equity investments, reaching ¥1,437,215,687.50 due to increased investment income[21] - Current liabilities decreased significantly to CNY 344,187,925.99 from CNY 502,922,875.47, a reduction of about 31.5%[52] - Non-current liabilities decreased to CNY 77,565,361.33 from CNY 116,124,746.51, a decline of approximately 33.2%[52] - Total liabilities decreased to CNY 421,753,287.32 from CNY 619,047,621.98, a reduction of about 31.8%[54] - The total liabilities amounted to ¥331,968,803.90, a decrease from ¥430,471,100.15 in the previous period, suggesting improved financial health[60] - The total assets of the company as of the third quarter of 2020 were approximately ¥4.16 billion, with total liabilities amounting to ¥1.73 billion[89] Cash Flow - The net cash flow from operating activities for the first nine months was CNY 34,139,717.82, compared to a negative CNY 156,907,045.00 in the same period last year[10] - Cash flow from operating activities in the first three quarters of 2020 was CNY 353,816,117.91, down from CNY 516,027,980.84 in the same period of 2019[79] - The net cash flow from investing activities for the first three quarters of 2020 was CNY 68,805,948.81, an increase from CNY 20,192,297.35 in the same period of 2019[83] - The ending cash and cash equivalents balance for the third quarter of 2020 was approximately ¥8.93 million, compared to ¥14.11 million at the end of the previous year[87] Shareholder Information - The number of shareholders at the end of the reporting period was 66,535, with the top ten shareholders holding significant stakes[20] - Shareholders' equity increased to CNY 3,730,006,209.06 from CNY 3,540,011,567.34, an increase of approximately 5.4%[54] - The company has agreed to repurchase 9,627,566 shares from former shareholders of Yanlong Technology at a price of 1.00 yuan per share[44] - The company has not yet started the share repurchase program approved on July 15, 2020[45] Research and Development - Research and development expenses increased by 80.87% to ¥30,803,914.40, reflecting higher investment in R&D[24] - Research and development expenses increased to ¥8,058,238.71 in Q3 2020, up from ¥3,669,057.85 in Q3 2019, highlighting a focus on innovation[64] Legal and Compliance Issues - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[28] - The company faced potential violations regarding guarantees provided for loans taken by Shen Peijin, which were not approved by the board or shareholders[32] Related Party Transactions - As of September 30, 2020, the company had other receivables amounting to RMB 291 million related to the funds occupied by the related party Shen Peijin[31] - The company confirmed that RMB 240 million of the loans from Shenghua Microfinance were directly paid to third parties arranged by Shen Peijin, resulting in related party fund occupation[31] - The company confirmed that the total amount of loans from Shenghua Microfinance was RMB 24 million, which was fully repaid by the end of the reporting period[35] Operational Challenges - The company is facing operational risks due to significant personnel turnover at its subsidiary Yanlong Technology, which has led to a substantial decline in sales[39] - Chengdu Yanlong Technology Co., Ltd. has partially recovered accounts receivable, but major clients have not fulfilled their repayment commitments, potentially leading to significant impairment losses on accounts receivable[37]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 327,045,447.57, a decrease of 29.68% compared to the same period last year[26]. - The net profit attributable to shareholders for the same period was CNY 151,642,460.36, reflecting a slight increase of 0.57% year-on-year[26]. - The net profit after deducting non-recurring gains and losses was CNY 143,265,251.59, which represents a growth of 22.32% compared to the previous year[26]. - The net cash flow from operating activities was CNY 6,025,110.78, a significant recovery from a negative cash flow of CNY -23,259,640.98 in the same period last year[26]. - The total assets at the end of the reporting period were CNY 4,191,043,645.13, showing a slight increase of 0.77% from the end of the previous year[26]. - The net assets attributable to shareholders increased by 4.26% to CNY 3,697,041,454.89 compared to the end of the previous year[26]. - The basic earnings per share remained stable at CNY 0.05, with a 25.00% increase in diluted earnings per share after excluding non-recurring gains and losses[27]. - The weighted average return on net assets increased by 0.76 percentage points to 4.19% compared to the same period last year[27]. - The total profit amounted to 154,598,458.84, a decrease from 175,509,041.25 in the previous period, reflecting a decline of approximately 11%[200]. - The net profit for the period was 151,011,219.76, showing a slight increase from 148,657,035.06, representing a growth of about 2.3%[200]. Related Party Transactions - The company reported a total receivable from the controlling shareholder, Shen Peijin, amounting to RMB 320.99 million as of June 30, 2020, which is a decrease from RMB 378.12 million at the end of 2019[8]. - The company has acknowledged the existence of non-operating fund occupation by the controlling shareholder, which raises concerns about governance and financial practices[8]. - The company has committed to repaying all occupied funds along with interest by December 31, 2022, as part of a structured repayment plan[11]. - The company confirmed that RMB 240 million in borrowings from Shenghua Small Loan Co., Ltd. were directly paid to third parties arranged by Shen Peijin, resulting in related party fund occupation[114]. - By June 30, 2020, the company had recovered RMB 60 million of the related party fund occupation, with a remaining balance of RMB 320.99 million[114]. - Shen Peijin committed to repay at least 40% of the occupied funds (RMB 151.20 million) by December 31, 2020, with RMB 60 million already repaid by June 30, 2020[114]. - The company has guaranteed that it will independently manage its assets and operations, maintaining a complete and independent labor, personnel, and compensation management system[83]. - The company has established a commitment to disclose any related party transactions in accordance with legal regulations, ensuring transparency and market pricing for such transactions[84]. Legal and Compliance Issues - The company is involved in legal proceedings related to loans and guarantees, which may pose risks to its financial stability[12]. - The company has faced legal actions regarding guarantees provided without following proper decision-making procedures, indicating potential compliance issues[11]. - The company has received a notice from the China Securities Regulatory Commission regarding an investigation into information disclosure violations, with no conclusive opinion as of the report date[120]. - The company has initiated an internal review to address issues identified and improve compliance with information disclosure regulations[120]. - Legal actions have been taken against Jiangsu Jinpu Group for breaching a procurement agreement, with RMB 30 million in assets frozen by the court[120]. - The company is currently in the litigation stage for several cases, including a property preservation application for RMB 26 million related to the aforementioned loan[125]. - The company has engaged legal counsel to pursue a contract dispute with Beijing Yuntu Film and Television Culture Media Co., Ltd., which is currently in the pre-litigation mediation phase[126]. - The company has ongoing legal issues related to guarantees, with some long-term assets frozen or seized[130]. Research and Development - Research and development expenses increased by 70.22% to CNY 22.75 million, indicating a focus on enhancing product technology and value[54]. - The company has established partnerships with well-known universities and research institutions to enhance product research and technology upgrades in its chemical business[41]. - The company has developed over 40 pesticide formulations, focusing on environmentally friendly and eco-friendly products for various crops[41]. - The company is committed to enhancing its research and development capabilities and expanding its product offerings in the biotechnology sector, aiming for sustainable growth and innovation[49]. Environmental Management - The company has implemented pollution control measures, ensuring that major pollutants are within government-approved discharge limits, with total emissions of COD at 53.16 tons/year and SO2 at 67.2 tons/year[148]. - The wastewater treatment center has a capacity of 8000 T/D, with additional systems for anaerobic and high-concentration pretreatment[149]. - The company achieved compliance with the "Biopharmaceutical Industry Pollutant Discharge Standards," with COD concentration at ≤40mg/L and NH3-N at ≤3mg/L[145]. - The company has established an online monitoring system for emissions, which operates 24/7 and is connected to environmental authorities for real-time oversight[149]. - The company has a solid waste management system in place, ensuring that hazardous waste is disposed of by qualified entities, adhering to the principles of resource utilization and reduction[148]. - The company’s nitrogen oxides (NOx) emissions are maintained below 50mg/Nm³, complying with the relevant standards[148]. - The company has conducted regular training and emergency drills to enhance its ability to respond to environmental incidents[151]. - The company has established a performance assessment system linked to environmental management responsibilities for all levels of staff[158]. Shareholder and Equity Information - The company has a total of 869,814,827 shares held by the actual controller, Shen Peijin, which represents 27.80% of the total share capital, all of which are pledged and frozen[163]. - The company has a total of 679,104,477 shares under lock-up for Shen Peijin, which will not be transferable for 36 months from the issuance date[174]. - The largest shareholder, Shen Peijin, holds 869,814,827 shares, representing 27.71% of the total shares, with 679,104,477 shares under lock-up[172]. - The second-largest shareholder, Lu Jian, holds 448,000,000 shares, representing 14.27% of the total shares, all of which are pledged[172]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[175]. - The company has not disclosed any related party relationships among the top shareholders, except for the known relationships between Shen Peijin and Lu Jian[174].

Financial Performance - The company reported a net profit attributable to shareholders of the parent company of -672,992,723.05 yuan for the year 2019, with a net profit of -542,994,243.33 yuan for the parent company[6]. - The company's operating revenue for 2019 was RMB 805,256,358.25, a decrease of 18.00% compared to RMB 982,064,939.24 in 2018[27]. - The net profit attributable to shareholders for 2019 was a loss of RMB 672,992,723.05, a decline of 574.88% from a profit of RMB 141,719,552.61 in 2018[27]. - The basic earnings per share for 2019 was -0.22 RMB, down 540.00% from 0.05 RMB in 2018[28]. - The total assets at the end of 2019 were RMB 4,159,059,189.32, a decrease of 17.95% from RMB 5,068,902,850.12 at the end of 2018[27]. - The net assets attributable to shareholders at the end of 2019 were RMB 3,546,130,674.44, down 18.24% from RMB 4,337,402,756.71 at the end of 2018[27]. - The net cash flow from operating activities for 2019 was -102,419,843.91 RMB, an improvement from -176,120,333.71 RMB in 2018[27]. - The weighted average return on equity for 2019 was -17.10%, a decrease of 20.42 percentage points from 3.32% in 2018[28]. Audit and Compliance - The company has received a non-standard audit opinion from Tianjian Accounting Firm regarding its 2019 financial statements, indicating issues with the effectiveness of internal controls[11]. - The company has acknowledged the risk of potential violations regarding guarantees provided without following proper decision-making procedures[11]. Shareholder and Profit Distribution - The company plans not to distribute profits or increase capital reserves for the year 2019, pending approval at the annual general meeting[6]. - The company maintains a cash dividend policy, ensuring that at least 10% of distributable profits are allocated for cash dividends annually, with a cumulative distribution of no less than 30% over the last three years[198]. - The company prioritizes cash dividends, aiming for a minimum of 80% distribution in mature stages without major capital expenditures, and 40% if such expenditures are present[198]. - The company has implemented a profit distribution plan for 2018, with the distribution date set for July 11, 2019[198]. Debt and Financing - The company borrowed 1,200,000 yuan from Deqing Shenghua Microfinance Co., Ltd. in June 2019, with a monthly interest rate of 2%[10]. - The company confirmed that 2,400,000 yuan in borrowings were directly paid to third parties as requested by the controlling shareholder, resulting in related party fund occupation[10]. - The company has not fully recovered related party funds amounting to 2,712,460 yuan as of the report date[10]. - The company has provided collateral for a special loan of 130 million CNY from Shenghua Microfinance using real estate assets with a net value of 24.54 million CNY as of December 31, 2019[98]. - The company has pledged 30% of its equity in Caitong Fund to supplement working capital, with 9% of the equity already released from pledge by the end of the reporting period[1]. Market and Industry Trends - The company’s revenue from the gaming sector is a significant contributor, with the Chinese gaming market reaching ¥230.88 billion in 2019, a year-on-year growth of 7.7%[40]. - The mobile gaming market accounted for 68.5% of the total market revenue in 2019, with actual revenue of ¥158.11 billion, reflecting an 18.0% increase year-on-year[40]. - In 2019, the number of game users in China reached 640 million, with a year-on-year growth of 2.5%, indicating a significant slowdown in growth[42]. - The actual sales of independently developed games in overseas markets reached 82.52 billion yuan in 2019, representing a year-on-year increase of 21.0%[42]. - The Chinese film and television industry is expected to enhance its overall strength and competitiveness, with a focus on "cultural + internet +" strategies to optimize and upgrade the industry structure[43]. Environmental and Regulatory Challenges - Environmental pressures have increased, leading to rising production costs and stricter regulations, which will accelerate the elimination of outdated production capacity[48]. - By 2020, all fixed pollution sources must obtain discharge permits, impacting the supply structure of the Chinese pesticide industry[48]. - The new environmental protection law imposes stricter pollution fees, increasing the environmental costs for pesticide companies[108]. - The Ministry of Agriculture has set maximum residue limits for pesticides and veterinary drugs, establishing 1,000 new pesticide residue standards and 100 veterinary drug standards in 2018[108]. Research and Development - The company has established a comprehensive R&D system in biopharmaceuticals, with multiple advanced laboratories supporting its product development[57]. - The company has collaborated with external research institutions to optimize fermentation processes, enhancing production levels for key products[120]. - The company is focusing on enhancing its innovation capabilities and reducing environmental pollution in response to industry challenges[105]. Strategic Initiatives - The company aims to enhance its IP licensing and development capabilities, focusing on a full industry chain model from IP authorization to sales[40]. - The company plans to continue expanding its market presence and product offerings in the gaming and entertainment sectors, leveraging its established partnerships and technological advancements[40]. - The company plans to reduce investments in its variety show business due to a lack of competitive advantage and profitability[178]. - The company will adopt a cautious investment strategy in the film and television sector, focusing on projects with strong financial security and controllable returns[181].

Financial Performance - The company reported a net profit attributable to shareholders of the parent company of -672,992,723.05 yuan for the year 2019, with a net profit of -542,994,243.33 yuan for the parent company[6]. - The company proposed not to distribute profits for the year 2019 and not to increase capital reserves into share capital[6]. - The company reported an accumulated undistributed profit of -39,195,210 yuan at the end of 2019[6]. - The company's operating revenue for 2019 was RMB 805,256,358.25, a decrease of 18.00% compared to RMB 982,064,939.24 in 2018[27]. - The net profit attributable to shareholders for 2019 was a loss of RMB 672,992,723.05, representing a decline of 574.88% from a profit of RMB 141,719,552.61 in 2018[27]. - The basic earnings per share for 2019 was -0.22 RMB, a decrease of 540.00% compared to 0.05 RMB in 2018[28]. - The total assets at the end of 2019 were RMB 4,159,059,189.32, down 17.95% from RMB 5,068,902,850.12 at the end of 2018[27]. - The net assets attributable to shareholders decreased by 18.24% to RMB 3,546,130,674.44 at the end of 2019 from RMB 4,337,402,756.71 at the end of 2018[27]. - The company reported a net cash flow from operating activities of -102,419,843.91 RMB in 2019, an improvement from -176,120,333.71 RMB in 2018[27]. - The weighted average return on equity for 2019 was -17.10%, a decrease of 20.42 percentage points from 3.32% in 2018[28]. Audit and Compliance - The company received a non-standard audit opinion from Tianjian Accounting Firm regarding its 2019 financial statements[11]. - The company’s internal control effectiveness was deemed ineffective by the auditor, leading to a negative opinion on internal controls[11]. - The company has not fulfilled the decision-making procedures for providing guarantees, which may involve violations of regulations[11]. Borrowings and Financial Obligations - The company borrowed 12 million yuan from Deqing Shenghua Microfinance Co., Ltd. in June 2019, with a monthly interest rate of 2%[10]. - The company confirmed that 24 million yuan of borrowings were directly paid to third parties as requested by the controlling shareholder, resulting in related party fund occupation[10]. - The company recorded a bad debt provision of 101.99 million yuan for receivables and 18 million yuan for prepayments during the reporting period[92]. Revenue and Market Trends - The company’s revenue from the gaming sector is part of a broader strategy that includes game development, agency distribution, and IP cooperation, aiming for a comprehensive industry chain model[41]. - The Chinese gaming market generated revenue exceeding ¥310 billion in 2019, with a growth rate of 10.6%, while the mobile gaming sector alone accounted for ¥158.11 billion, representing 68.5% of the total market[41]. - The actual sales of independently developed games in the overseas market amounted to 82.52 billion yuan in 2019, representing a year-on-year increase of 21.0%[44]. - The company aims to leverage its strengths in game development and distribution to adapt to market changes and ensure sustainable profitability[41]. Industry Challenges and Regulatory Environment - The chemical industry is facing stricter regulations due to the revised Food Safety Law and Environmental Protection Law, which require higher standards for pesticide and veterinary drug production[100]. - The implementation of the Environmental Protection Tax Law has increased the environmental costs for pesticide companies, with specific tax amounts based on pollution equivalents[103]. - The Chinese pesticide industry is encouraged to consolidate through mergers and acquisitions to enhance competitiveness and reduce the number of companies in the market[100]. - The Ministry of Agriculture has initiated a reduction action plan for the use of veterinary antibiotics, aiming for a "zero growth" in usage over three years[103]. Strategic Initiatives - The company’s strategic focus includes market expansion and new product development, although specific details were not disclosed in the conference call[30]. - The company plans to address the decline in revenue by focusing on market expansion and new product development strategies[72]. - The company aims to focus on the production and sales of environmentally friendly pesticide formulations in response to increasing regulatory pressures[110]. Shareholder and Management Commitments - The company has committed to maintaining the independence of its management and financial operations, ensuring no overlap with other enterprises controlled by the major shareholder[178]. - The major shareholder has pledged to avoid any business activities that may compete with the company, ensuring no conflicts arise in the future[181]. - The company has established a commitment to provide accurate and complete information during significant asset restructuring, ensuring transparency in all transactions[181]. - The company will ensure the independence of its operations, including personnel, assets, and organizational structure, to protect the interests of public shareholders[189].

Financial Performance - Operating revenue for the first quarter was CNY 147,184,813.96, representing a decline of 33.91% year-on-year[12]. - Net profit attributable to shareholders was CNY 21,856,643.79, down 73.69% from the same period last year[12]. - Basic earnings per share decreased by 66.67% to CNY 0.01 from CNY 0.03 in the same period last year[12]. - The weighted average return on net assets was 0.61%, down 1.29 percentage points from 1.90% in the previous year[12]. - The company reported a net loss of ¥12,511,063.83 for the first quarter, compared to a loss of ¥39,195,210.00 in the same quarter last year[48]. - The net profit for Q1 2020 was CNY 20,957,228.36, down 74.4% from CNY 81,731,855.90 in Q1 2019[52]. - The total profit for Q1 2020 was CNY 22,976,653.37, a decline of 75.5% compared to CNY 93,392,026.88 in Q1 2019[52]. - The company's total comprehensive income for Q1 2020 was CNY 20,187,847.22, significantly lower than CNY 81,731,855.90 in Q1 2019[54]. Cash Flow - The net cash flow from operating activities was CNY -23,059,046.01, showing an improvement compared to CNY -295,738,341.12 in the previous year[12]. - Total cash inflow from operating activities was ¥121,746,090.81, while cash outflow was ¥144,805,136.82, resulting in a net cash flow deficit[59]. - Cash inflow from investment activities was ¥0, while cash outflow was ¥2,147,785.57, leading to a net cash flow from investment activities of -¥2,147,785.57[61]. - Cash inflow from financing activities was ¥58,000,000.00, with cash outflow totaling ¥7,513,179.14, resulting in a net cash flow from financing activities of -¥7,513,179.14[61]. - The ending cash and cash equivalents balance was ¥39,001,325.95, down from ¥73,148,510.18 at the beginning of the period[61]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,136,799,691.26, a decrease of 0.54% compared to the end of the previous year[12]. - Cash and cash equivalents decreased by 37.65% from 90,122,688.29 to 56,188,111.28 due to loan repayments during the reporting period[21]. - Total liabilities decreased to ¥432,576,241.98 from ¥430,471,100.15, indicating a slight increase of 0.5%[46]. - The company's total assets as of March 31, 2020, were RMB 4,136.80 million, slightly down from RMB 4,159.06 million at the end of 2019[34]. - The company's long-term equity investments increased to RMB 1,304.78 million as of March 31, 2020, compared to RMB 1,265.87 million at the end of 2019[34]. - Total assets amounted to approximately $4.03 billion, with current assets at $712.91 million and non-current assets at $3.31 billion[76]. - Total liabilities reached approximately $430.47 million, with current liabilities totaling $370.35 million and non-current liabilities at $60.12 million[79]. Shareholder Information - The total number of shareholders at the end of the reporting period was 76,437[20]. - The largest shareholder, Shen Peijin, held 27.71% of the shares, with 869,814,827 shares[20]. - The actual controller's shares were 869,814,827, with 99.99% of them pledged, and 100% of these shares were frozen, totaling 27.71% of the company's total shares[29]. - The company received a compensation of 9,627,566 shares due to the unmet profit commitment for 2018, with a total delayed payment interest of RMB 1.86 million paid by the original shareholders[29]. Operational Challenges - Operating revenue fell by 33.91% from 222,695,273.50 to 147,184,813.96 mainly due to a reduction in gaming revenue[23]. - Operating costs decreased by 12.06% from 127,768,800.10 to 112,365,331.97 as a result of lower gaming revenue leading to reduced cost recognition[23]. - Research and development expenses declined by 35.75% from 9,412,872.07 to 6,047,587.41 due to reduced investment in R&D[23]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[26]. Investment and Acquisitions - The company paid RMB 300 million as a transaction intention fee for the acquisition of 100% equity in Shenzhen Quantum Cloud Technology Co., Ltd., but the deal was terminated without recovering the fee[32]. - The company holds long-term equity investments valued at ¥1,265,866,560.41, indicating a focus on strategic partnerships[70]. - Long-term equity investments were valued at approximately $2.98 billion, indicating a significant investment strategy[76]. Compliance and Standards - The company is committed to adhering to new revenue recognition standards effective from January 1, 2020, which may impact future financial reporting[73]. - The company has implemented new revenue recognition standards starting January 1, 2020, affecting financial reporting[79].

Financial Performance - The company's consolidated financial statements reported a net loss attributable to shareholders of the parent company of ¥672,992,723.05 for the year 2019[6]. - The parent company's net profit for 2019 was ¥542,994,243.33, with an undistributed profit carried forward from the previous year of ¥572,332,669.19, resulting in an ending undistributed profit of -¥39,195,210.00 after deducting cash dividends of ¥68,533,635.86[6]. - The company's operating revenue for 2019 was RMB 805,256,358.25, a decrease of 18.00% compared to RMB 982,064,939.24 in 2018[26]. - The net profit attributable to shareholders for 2019 was a loss of RMB 672,992,723.05, a decline of 574.88% from a profit of RMB 141,719,552.61 in 2018[26]. - The basic earnings per share for 2019 was -0.22 RMB, down 540.00% from 0.05 RMB in 2018[27]. - The total assets at the end of 2019 were RMB 4,159,059,189.32, a decrease of 17.95% from RMB 5,068,902,850.12 at the end of 2018[26]. - The net assets attributable to shareholders at the end of 2019 were RMB 3,546,130,674.44, down 18.24% from RMB 4,337,402,756.71 at the end of 2018[26]. - The net cash flow from operating activities for 2019 was -RMB 102,419,843.91, an improvement from -RMB 176,120,333.71 in 2018[26]. - The weighted average return on equity for 2019 was -17.10%, a decrease of 20.42 percentage points from 3.32% in 2018[27]. Legal and Compliance Issues - The company has faced legal issues, including a court order freezing assets valued at ¥133,229,480 due to non-compliance with decision-making procedures for providing guarantees[11]. - The auditor issued a disclaimer of opinion on the company's 2019 financial statements, indicating significant concerns regarding the accuracy and completeness of the financial reporting[11]. - The internal control effectiveness was deemed ineffective by the auditor, raising concerns about the company's governance and operational integrity[11]. Strategic Initiatives and Market Position - The company has not disclosed any new product developments or market expansion strategies in the report[7]. - The company has not provided specific guidance for future performance or strategic initiatives in the report[7]. - The company aims to enhance its business model by integrating IP authorization, development, and sales into a comprehensive industry chain[40]. - The company plans to leverage its strengths in game development and overseas distribution to capture market opportunities[40]. Industry Trends and Market Analysis - The gaming industry in China saw a total revenue of ¥2,308.8 billion in 2019, with a year-on-year growth of 7.7%[40]. - The mobile gaming market generated ¥1,581.1 billion in 2019, accounting for 68.5% of the total market, reflecting an 18.0% increase year-on-year[40]. - The overall gaming market in China is expected to maintain a stable growth trajectory, with export revenues also on the rise[40]. - In 2019, the number of game users in China reached 640 million, with a year-on-year growth of 2.5%, indicating a significant slowdown in growth[43]. - The actual sales of independently developed games in the overseas market amounted to 82.52 billion yuan in 2019, representing a year-on-year increase of 21.0%[43]. Financial Management and Shareholder Relations - The company plans not to distribute profits or increase capital reserves for the year 2019, pending approval at the annual shareholders' meeting[6]. - The company has a cash dividend policy that requires a minimum of 10% of distributable profits to be distributed as cash dividends annually, with a cumulative distribution of at least 30% of the average annual distributable profits over the last three years[169]. - In 2019, the company distributed cash dividends of 0.22 yuan per 10 shares, totaling approximately 68.53 million yuan (including tax) based on a total share base of 3,115,165,266 shares[171]. - The company did not propose any cash profit distribution plan for 2019 despite having a positive profit available for distribution to ordinary shareholders[173]. Research and Development - The company has invested in advanced research facilities, including gene engineering and microbiology laboratories, to support its R&D efforts in biopharmaceuticals and agricultural products[59]. - The company plans to enhance internal control and risk management systems to improve operational efficiency and competitiveness in 2020[64]. - The company’s investment in research and development is expected to increase as it focuses on high-efficiency, safe, and low-residue products in the veterinary drug market[153]. Environmental and Regulatory Challenges - The chemical industry is facing stricter regulations due to the revised Food Safety Law and Environmental Protection Law, which require higher standards for pesticide and veterinary drug production[99]. - The implementation of the Environmental Protection Tax Law has increased the environmental costs for pesticide companies, with specific tax amounts based on pollution equivalents[102]. - The Ministry of Agriculture has set a target for zero growth in the use of veterinary antibiotics, aiming to control drug residues and antibiotic resistance in livestock[102]. - New regulations require pesticide products to have traceable QR codes, enhancing market supervision and product safety[102]. Operational Efficiency and Cost Management - The company’s cash flow from operating activities showed an improvement, with a net cash outflow of RMB 102,419,843.91, a 41.85% reduction compared to the previous year[68]. - The company's operating costs decreased by 10.06% year-on-year, totaling RMB 521,284,591.07[70]. - Total costs decreased by 9.39% year-on-year, from 495,902,211.46 to 449,335,456.95[76]. Shareholder Commitments and Governance - The controlling shareholder committed to ensuring the independence of the company’s management and financial operations, including establishing an independent financial accounting department[177]. - The actual controller has promised to avoid any actions that could harm the company's interests or those of its shareholders[188]. - The company will ensure that its governance structure is independent and operates in compliance with relevant regulations[188].

Financial Performance - Net profit attributable to shareholders of the listed company was CNY 217,228,302.34, an increase of 1.99% year-on-year[18]. - Operating revenue for the period was CNY 662,311,682.00, representing a decrease of 6.85% compared to the same period last year[18]. - Basic and diluted earnings per share remained at CNY 0.07, unchanged from the previous year[20]. - Non-recurring gains and losses attributable to shareholders of the listed company amounted to CNY 177,461,249.71, a decrease of 12.75% year-on-year[18]. - Total revenue for Q3 2019 was ¥197,230,938.78, a decrease of 7.4% compared to ¥212,570,761.54 in Q3 2018[54]. - Net profit for Q3 2019 was ¥65,294,922.25, compared to ¥68,066,770.75 in Q3 2018, reflecting a decrease of 1.1%[58]. - The company's net profit attributable to shareholders for Q3 2019 was CNY 29,610,557.38, a decrease from CNY 30,571,780.49 in Q3 2018[67]. - Total comprehensive income for Q3 2019 was CNY 29,610,557.38, compared to CNY 30,571,780.49 in the same period last year[69]. Cash Flow - Net cash flow from operating activities was CNY -156,907,045.00, an improvement from CNY -224,764,000.24 in the previous year[18]. - Cash flow from operating activities for the first three quarters of 2019 was CNY 516,027,980.84, an increase from CNY 474,404,955.22 in the same period last year[69]. - Total cash inflow from operating activities was 608,351,623.90, while cash outflow was 765,258,668.90, resulting in a net cash flow deficit[73]. - Cash inflow from investment activities totaled 397,291,890.29, with a net cash flow of 222,366,703.64, a significant recovery from -13,550,335.59 in the previous period[77]. - Cash inflow from financing activities was 241,600,000.00, while cash outflow was 498,540,154.60, leading to a net cash flow of -256,940,154.60[75]. - The total cash and cash equivalents at the end of the period were 67,016,916.41, down from 460,223,437.68 at the beginning of the period, reflecting a decrease of approximately 85%[75]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,067,661,310.95, a decrease of 0.02% compared to the end of the previous year[18]. - Total current assets amounted to ¥1,562,313,890.95, a decrease from ¥1,778,907,032.00 as of December 31, 2018, representing a decline of approximately 12.2%[39]. - The company's total equity as of September 30, 2019, was ¥4,430,552,367.63, slightly up from ¥4,333,175,798.60, representing an increase of approximately 2.3%[43]. - The total liabilities decreased to ¥637,108,943.32 from ¥735,727,051.52, showing a reduction of about 13.4%[43]. - The company's total assets increased to ¥4,850,030,378.41 from ¥4,795,350,818.99, representing a growth of 1.1%[53]. - Total liabilities decreased to ¥489,139,750.34 from ¥536,625,456.13, a reduction of 8.8%[53]. - The company’s total receivables, including other receivables, amounted to ¥396,144,923.20, showcasing diverse income streams[80]. Investments and Acquisitions - The company plans to acquire 100% equity of Shenzhen Quantum Cloud Technology Co., Ltd., with a transaction deposit of ¥300 million already paid[35]. - The company completed the acquisition of Chengdu Yanlong Technology Co., Ltd. and achieved performance commitments for the years 2015 to 2017, but did not meet the 2018 commitment[36]. - The company is owed 9,627,566 shares as compensation for the unmet performance commitment from the original shareholders of Yanlong Technology[36]. - The company reported a significant increase in other receivables, which amounted to ¥485,591,522.01, compared to ¥396,144,923.20, reflecting a growth of about 22.5%[39]. Shareholder Information - The total number of shareholders at the end of the reporting period was 66,114[26]. - The company reported a 22.28% increase in undistributed profits to ¥816,142,907.69 due to changes in operating income and dividend provisions[32].