股票代码：600866 股票简称：星湖科技 编号：临 2021-022 广东肇庆星湖生物科技股份有限公司 关于参加 2021 广东上市公司投资者网上集体接待 日活动暨召开 2020 年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承 担个别及连带责任。 重要内容提示： ●会议内容：2021 广东上市公司投资者网上集体接待日活动暨 召开 2020 年度业绩说明会 ●会议召开时间：2021 年 5 月 19 日 15：40-16：40 ●会议召开地点：全景·路演天下（http://rs.p5w.net） ●会议召开方式：网络互动 广东肇庆星湖生物科技股份有限公司（以下简称"公司"）已于 2021 年 4 月 27 日披露了《广东肇庆星湖生物科技股份有限公司 2020 年年度报告》及其摘要。为促进公司规范运作、健康发展，增强公司 信息透明度，加强与广大投资者沟通交流，进一步提升公司投资者关 系管理水平，根据统一安排，公司拟于 2021 年 5 月 19 日参加由 中国证券监督管理委员会广东监管局和广东上市公司协会举办的 "20 ...

Financial Performance - The company's operating revenue for 2020 was approximately RMB 1.116 billion, representing a year-over-year increase of 6.35% compared to RMB 1.050 billion in 2019[23]. - The net profit attributable to shareholders of the listed company for 2020 was approximately RMB 148.71 million, a slight decrease of 0.56% from RMB 149.55 million in 2019[23]. - The net profit after deducting non-recurring gains and losses was approximately RMB 126.50 million, down 12.51% from RMB 144.59 million in the previous year[23]. - The net cash flow from operating activities increased by 17.27% to approximately RMB 249.99 million, compared to RMB 213.17 million in 2019[23]. - Basic earnings per share for 2020 was CNY 0.2012, a decrease of 0.59% compared to CNY 0.2024 in 2019[26]. - The weighted average return on equity decreased to 9.33% in 2020 from 11.08% in 2019, a decline of 1.75 percentage points[26]. - Operating revenue for Q4 2020 was CNY 310,246,754.73, while net profit attributable to shareholders was CNY 38,882,354.61[28]. - The company reported a net profit of CNY 51,415,828.23 in Q2 2020, marking a substantial increase from Q1's CNY 32,230,924.14[28]. Assets and Liabilities - The total assets at the end of 2020 were approximately RMB 2.422 billion, reflecting a 14.45% increase from RMB 2.116 billion at the end of 2019[23]. - The net assets attributable to shareholders of the listed company increased by 9.78% to approximately RMB 1.669 billion, compared to RMB 1.520 billion at the end of 2019[23]. - Long-term borrowings rose to CNY 156.17 million, accounting for 6.45% of total liabilities, a 643.66% increase attributed to loans for the Zhaodong fermentation industrial park project[78]. - Accounts receivable financing at the end of the reporting period was CNY 99.50 million, accounting for 4.11% of total assets, an increase of 33.61% compared to the previous period[75]. Revenue Breakdown - In 2020, the company's sales revenue from food additives reached 696 million yuan, an increase of 5.10% year-on-year, accounting for 62.32% of total revenue[40]. - The sales revenue from chemical raw materials and intermediates was 410 million yuan, a year-on-year increase of 7.72%, representing 36.70% of total revenue[41]. - Revenue from food and feed additives was 696 million RMB, up 5.08% year-on-year, driven by market expansion and increased demand in the food and catering industries[46]. - Revenue from biochemical raw materials and pharmaceutical intermediates reached 409 million RMB, a 7.72% increase year-on-year, attributed to favorable market conditions[46]. Strategic Initiatives - The company is in a critical stage of strategic transformation, which may impact future performance and risk factors[9]. - The company plans to continue focusing on expanding its market presence in food additives and enhancing the sales of pharmaceutical intermediates[52]. - The company is focusing on expanding its market presence in the food additives sector, which is expected to grow due to increasing consumer demand for diverse and high-quality food products[97]. - The company plans to enhance its market position by increasing investments in environmental protection and upgrading production processes in response to stricter regulations[82]. Research and Development - The company has a strong technical research and development team, collaborating with top universities and maintaining a focus on product innovation and structure adjustment[42]. - Research and development expenses increased by 9.58% to 58.68 million RMB, reflecting the company's commitment to innovation[47]. - The company focuses on high-value product innovation in the biopharmaceutical and health food sectors, aiming to enhance R&D, market, and operational capabilities[98]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development as core operational principles[171]. - The company achieved pollutant discharge levels that consistently meet industry and national standards in 2020[172]. - The company actively engages in social responsibility initiatives, supporting education, culture, and poverty alleviation[171]. - The company has established emergency response plans for environmental incidents, including specific protocols for ammonia and hazardous chemical leaks[178]. Legal and Compliance Issues - The company is currently involved in a significant lawsuit regarding alleged patent infringement, with a claim for damages totaling CNY 20 million[145]. - The company has received feedback from the China Securities Regulatory Commission regarding its non-public issuance application, indicating ongoing regulatory scrutiny[156]. - The company has committed to not expanding its control over Xinghuo Technology or seeking control of its board of directors[133]. Shareholder and Governance - The company reported a total of 739,019,166 shares outstanding, with 645,393,465 shares being freely tradable, representing 87.33% of total shares[184]. - The actual controller of the company is the Guangdong Provincial Government, indicating a state-owned enterprise structure[200]. - The company has a clear cash dividend policy but has not made any adjustments or distributions in recent years[106].

Financial Performance - Net profit attributable to shareholders was ¥34,610,819.02, reflecting a year-on-year increase of 7.38%[12] - Operating revenue for the period was ¥304,035,337.29, representing a growth of 6.01% compared to the same period last year[12] - Basic earnings per share increased to ¥0.0468, up 7.34% from ¥0.0436 in the previous year[12] - Total operating revenue for Q1 2021 was ¥304,035,337.29, an increase of 6.3% compared to ¥286,804,218.43 in Q1 2020[39] - Net profit for Q1 2021 reached ¥34,610,819.02, representing a 7.4% increase from ¥32,230,924.14 in Q1 2020[41] - The total profit for Q1 2021 was ¥36,191,050.46, up 1.6% from ¥33,650,147.05 in Q1 2020[41] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,464,072,661.28, an increase of 1.74% compared to the end of the previous year[12] - Total assets increased to ¥2,464,072,661.28 from ¥2,421,969,298.10, reflecting growth in both current and non-current assets[26] - Current liabilities decreased to ¥518,816,378.40 from ¥554,016,571.43, a reduction of approximately 6.3%[28] - Total liabilities rose to ¥760,466,811.00 from ¥752,974,266.84, an increase of approximately 1.9%[28] - Total equity attributable to shareholders increased to ¥1,703,605,850.28 from ¥1,668,995,031.26, a growth of about 2.1%[28] Cash Flow - Net cash flow from operating activities was ¥14,120,009.43, a decrease of 58.08% year-on-year[12] - Net cash flow from operating activities decreased by 58.08% to ¥14,120,009.43 from ¥33,680,925.89, mainly due to increased cash outflows for purchasing goods and paying performance bonuses[23] - Net cash flow from investing activities worsened to -¥86,830,402.39 from -¥32,629,737.53, primarily due to increased investment in the Zhaodong Fermentation Industrial Park project[23] - Net cash flow from financing activities improved by 256.62% to ¥69,558,444.82 from ¥19,504,888.75, mainly due to reduced cash outflows for loan repayments[23] Shareholder Information - The total number of shareholders at the end of the reporting period was 49,072[18] - The largest shareholder, Guangdong Guangxin Holdings Group, held 134,642,420 shares, accounting for 18.22% of the total shares[18] Expenses - Sales expenses dropped by 77.07% to ¥1,846,198.87 from ¥8,051,346.84, largely due to reclassification of certain costs to contract performance costs[21] - R&D expenses increased significantly, reflecting the company's higher investment in research and development during the reporting period[21] - Financial expenses rose by 104.52% to ¥15,861,549.18 from ¥7,755,423.90, primarily due to a decrease in borrowing rates[21] - Management expenses decreased to ¥34,172,548.29 in Q1 2021, down 25.6% from ¥45,921,546.07 in Q1 2020[39] Accounts and Inventory - Accounts receivable increased by 38.37% to ¥153,862,805.95 from ¥111,199,762.24, mainly due to the impact of the payment settlement cycle[21] - Prepayments decreased by 51.27% to ¥6,935,573.80 from ¥14,231,692.39, primarily because the balance was reduced after receiving invoices for material purchases[21] - Other current assets surged by 103.19% to ¥30,326,688.41 from ¥14,925,297.03, mainly due to an increase in VAT credits from the settlement of the Zhaodong Fermentation Industrial Park project[21] - Inventory decreased to ¥153,839,120.96 from ¥203,218,648.73, a reduction of approximately 24.3%[32] Other Income and Tax - The company received government subsidies amounting to ¥3,152,753.43, which are closely related to its normal business operations[15] - Other income for Q1 2021 was ¥3,152,753.43, an increase from ¥2,079,099.65 in Q1 2020[39] - The company received tax refunds amounting to CNY 2,962,015.17 in Q1 2021, significantly higher than CNY 1,170,162.50 in Q1 2020, representing a growth of 153.5%[53] Product Development and Strategy - The company has not disclosed any new product developments or market expansion strategies in this report[12]

Financial Performance - Net profit attributable to shareholders was ¥109,827,909.42, representing a decrease of 9.91% year-on-year[19]. - Operating revenue for the period was ¥806,030,513.49, down 4.58% from the same period last year[19]. - The net profit after deducting non-recurring gains and losses was ¥101,473,513.42, a decrease of 13.38% year-on-year[19]. - Basic earnings per share were ¥0.1486, down 9.94% from ¥0.1650 in the previous year[19]. - The company reported a net loss of CNY -363,574,648.42, an improvement from the previous year's loss of CNY -473,402,557.84, indicating a reduction in losses[38]. - The company reported a net loss of CNY -213,222,014.25, an improvement from a loss of CNY -260,084,233.37[44]. - The company’s net profit for the first three quarters of 2020 was ¥109.83 million, down 10% from ¥121.90 million in the same period of 2019[50]. - The net profit for Q3 2020 was ¥26.18 million, a decline of 42% from ¥44.80 million in Q3 2019[50]. - The company’s total operating revenue for the first three quarters of 2020 was ¥806.03 million, a decrease of 4.6% from ¥844.69 million in the same period of 2019[48]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,406,897,119.61, an increase of 13.74% compared to the end of the previous year[19]. - The company’s total liabilities reached CNY 776,784,442.96, up from CNY 595,947,634.93, marking an increase of approximately 30.2%[38]. - The company’s total equity attributable to shareholders rose to CNY 1,630,112,676.65 from CNY 1,520,284,767.23, reflecting an increase of about 7.2%[38]. - Total liabilities decreased to CNY 404,996,653.74 from CNY 502,295,070.57, representing a reduction of approximately 19.4%[44]. - The company’s total equity increased to CNY 1,780,485,627.60 from CNY 1,733,623,408.48, reflecting a growth of about 2.7%[44]. - The company’s cash and cash equivalents slightly decreased from CNY 150,443,921.76 to CNY 150,371,853.72, a reduction of about 0.05%[42]. Cash Flow - Net cash flow from operating activities was ¥125,274,513.18, a decline of 30.30% compared to the previous year[19]. - Cash flow from operating activities generated a net amount of ¥125.27 million, down 30.3% from ¥179.75 million in the previous year[59]. - Net cash flow from operating activities was CNY 111,764,162.21, down from CNY 131,002,260.79 year-over-year, reflecting a decline of 14.5%[64]. - Cash outflow from investment activities totaled CNY 27,585,038.04, significantly lower than CNY 340,002,790.75 in the previous year, indicating a reduction of 91.9%[64]. - The ending cash and cash equivalents balance was CNY 150,371,853.72, compared to CNY 164,938,600.75 at the end of the previous year, a decrease of 8.8%[64]. Shareholder Information - Total number of shareholders at the end of the reporting period is 56,148[24]. - The largest shareholder, Guangdong Guangxin Holdings Group, holds 122,812,906 shares, representing 16.62% of total shares[24]. Investments and Projects - The company plans to invest up to CNY 680 million in the first phase of the Zhaodong Bio-fermentation Industrial Park project, which includes a production line for nucleotides[31]. - The company has completed most of the structural engineering and equipment installation for the Zhaodong project, although the overall progress has been delayed due to the COVID-19 pandemic[31]. - Long-term borrowings increased by 728.78% to ¥174,044,175.75, reflecting new loans for the Zhaodong Fermentation Industrial Park project[27]. Research and Development - Research and development expenses increased to ¥15.99 million in Q3 2020, up 21% from ¥13.18 million in Q3 2019[48]. - The company plans to continue focusing on R&D to drive future growth, as indicated by the increase in R&D expenses[48].

Financial Performance - The company's operating revenue for the first half of 2020 was RMB 585,218,179.70, representing a 5.65% increase compared to RMB 553,934,160.35 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was RMB 83,646,752.37, an increase of 8.48% from RMB 77,106,012.82 in the previous year[21]. - Basic earnings per share for the first half of 2020 were RMB 0.1132, up 8.53% from RMB 0.1043 in the same period last year[22]. - The company achieved a revenue of 585 million RMB in the first half of 2020, representing a year-on-year growth of 5.65%[34]. - The net profit attributable to shareholders was 83.65 million RMB, an increase of 8.48% compared to the previous year[34]. - The company reported a net loss of CNY -225,488,901.20 for the first half of 2020, an improvement from a loss of CNY -260,084,233.37 in the same period of 2019[145]. - The total equity attributable to shareholders increased to CNY 1,768,218,740.65 from CNY 1,733,623,408.48, showing a growth of about 2.0%[145]. Cash Flow and Financial Position - The net cash flow from operating activities decreased by 30.36%, amounting to RMB 96,157,080.41 compared to RMB 138,082,101.56 in the same period last year[21]. - The company experienced a 67.28% decrease in net cash flow from financing activities, which fell to ¥39,959,165.58 from ¥122,138,127.50, due to last year's fundraising for the acquisition of Jiuling Pharmaceutical[35]. - The company's cash and cash equivalents amounted to RMB 265,209,937.92, slightly up from RMB 264,917,887.45 at the end of 2019[138]. - The ending balance of cash and cash equivalents was ¥265,026,806.40, an increase from ¥224,502,765.96 at the end of the previous year[161]. - The total liabilities reached CNY 733,727,551.60, up from CNY 595,947,634.93, marking an increase of around 23.1%[139]. Assets and Investments - The total assets of the company at the end of the reporting period were RMB 2,337,659,071.20, a 10.46% increase from RMB 2,116,232,402.16 at the end of the previous year[21]. - The company reported a significant increase in construction in progress, amounting to ¥362,628,573.90, a 763.93% rise from ¥41,974,176.51, due to investments in the Zhaodong fermentation industrial park project[39]. - The company has a total guarantee amount, including those to subsidiaries, of RMB 15,481.40 million[93]. Operational Strategy and Market Focus - The company focuses on food additives, feed additives, chemical raw materials, and pharmaceutical intermediates, with a strategic shift towards the pharmaceutical CMO industry through mergers and acquisitions[28]. - The company maintains a scale production model, balancing production and sales based on customer demand, with key raw materials sourced through a bidding process[28]. - The food additives industry is expected to benefit from the recovery of the catering sector post-pandemic, despite a 44.3% decline in revenue during the first quarter of 2020[29]. - The company is actively engaging in strategic mergers and acquisitions to enhance its growth potential[126]. Risk Management - The company has detailed potential risks in the report, which investors should be aware of[8]. - The company is exposed to risks from fluctuations in raw material prices, particularly corn starch, which significantly impacts product costs[48]. - The company has implemented measures to manage procurement costs and strengthen supplier relationships to mitigate risks[48]. - The company emphasizes risk management and operational stability amid the challenges posed by the pandemic[34]. Environmental and Social Responsibility - The company has implemented a targeted poverty alleviation plan, focusing on improving the income of impoverished households and enhancing public services[96]. - Total funding for poverty alleviation projects amounted to 24.3203 million RMB, with 220 registered impoverished individuals lifted out of poverty[99]. - The company has established online monitoring systems for wastewater and air emissions at its biological engineering base and pharmaceutical plants, ensuring real-time pollution monitoring[109]. - The company achieved a 100% operational efficiency rate for its environmental protection facilities during the reporting period[109]. Corporate Governance and Shareholder Relations - The company has committed to maintaining the stability of Xinghuo Technology's existing main business and enhancing its overall strength through resource integration, with a commitment period starting from February 13, 2009[59]. - The company has confirmed no agreements with Guangxin Group regarding joint action or profit commitments, ensuring independence in decision-making[71]. - The company will not take any actions to increase its control over Xinghuo Technology's shares or interfere with its normal operations[72]. - The company has agreed to waive voting rights for its shares in Xinghuo Technology until all shares are sold[79]. Legal Matters - The company is currently involved in a lawsuit initiated by CJ First Sugar Co., claiming patent infringement related to its "IMP" and "I+G" products, with a compensation demand of RMB 20 million[84]. - There were no new capital contributions or reductions reported from shareholders during the current period[166].

Financial Performance - Net profit attributable to shareholders decreased by 13.02% to CNY 32,230,924.14 year-on-year[12] - Operating revenue declined by 3.79% to CNY 286,804,218.43 compared to the same period last year[12] - Basic earnings per share decreased by 17.58% to CNY 0.0436 compared to the same period last year[12] - The weighted average return on equity decreased by 1.39 percentage points to 2.10%[12] - Total operating revenue for Q1 2020 was ¥286,804,218.43, a decrease of 3.9% compared to ¥298,088,707.74 in Q1 2019[43] - Net profit for Q1 2020 was ¥32,230,924.14, a decline of 13.5% from ¥37,055,693.82 in Q1 2019[46] - Operating profit for Q1 2020 was ¥33,742,589.93, a decrease of 13.5% compared to ¥38,835,312.17 in Q1 2019[43] - Total profit for Q1 2020 was ¥33,650,147.05, down 13.5% from ¥38,880,243.64 in Q1 2019[46] Cash Flow - Net cash flow from operating activities decreased by 47.28% to CNY 33,680,925.89 compared to the previous year[12] - The net cash flow from operating activities decreased by 47.28% to CNY 33,680,925.89, attributed to reduced cash collection from sales and increased payments for last year's performance bonuses[24] - Cash inflow from financing activities in Q1 2020 was CNY 138,500,000.00, significantly higher than CNY 46,000,000.00 in Q1 2019[54] - Net cash flow from financing activities for Q1 2020 was CNY 19,504,888.75, compared to a negative CNY 21,676,259.42 in Q1 2019[54] - Cash outflow for investment activities in Q1 2020 was CNY 32,629,737.53, compared to a cash inflow of CNY 13,492,914.67 in Q1 2019[54] - Total cash inflow from operating activities in Q1 2020 was CNY 210,451,209.92, while total cash outflow was CNY 176,770,284.03[54] Assets and Liabilities - Total assets increased by 2.63% to CNY 2,171,898,280.43 compared to the end of the previous year[12] - The company's total assets increased to CNY 2,171,898,280.43, up from CNY 2,116,232,402.16 in the previous period[30] - Current liabilities totaled ¥530,023,816.39, an increase from ¥507,193,120.06 year-over-year[33] - Total liabilities amounted to ¥619,382,589.06, compared to ¥595,947,634.93, reflecting an increase of about 4.3%[33] - The company's equity attributable to shareholders increased to ¥1,552,515,691.37 from ¥1,520,284,767.23, a rise of approximately 2.1%[33] - The company reported an accumulated deficit of ¥441,171,633.70, improved from ¥473,402,557.84, showing a reduction of approximately 6.8%[33] Shareholder Information - The total number of shareholders at the end of the reporting period was 59,557[16] - The largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., held 121,303,806 shares, accounting for 16.41%[16] Operational Changes - The company has not disclosed any new product developments or market expansion strategies in this report[12] - The company’s management expenses increased by 62.01% to CNY 45,921,546.07, mainly due to production line shutdowns caused by raw material transportation disruptions during the pandemic[24] - The company reported a 34.97% decrease in employee compensation payable, amounting to CNY 22,313,371.29, due to performance bonuses paid during the reporting period[21] Receivables and Inventory - Accounts receivable increased by 63.63% to CNY 168,152,813.71 compared to the previous period due to a significant portion of sales receivables not yet settled[21] - Other receivables rose by 90.30% to CNY 21,956,729.18, primarily due to payments made by a wholly-owned subsidiary for land purchase not yet transferred to intangible assets[21] - The company’s inventory decreased to CNY 301,889,837.93 from CNY 319,491,048.06, indicating a reduction in stock levels[30] - Inventory decreased to ¥236,509,127.68 from ¥269,213,333.37, a decline of approximately 12.1%[37] Accounting Standards - The company implemented new revenue recognition standards starting January 1, 2020, affecting financial reporting[67] - The company adopted new revenue recognition standards starting January 1, 2020, impacting financial reporting[73] - There are no adjustments for prior period comparative data under the new revenue and leasing standards[74]

Financial Performance - The company's operating revenue for 2019 was approximately CNY 1,049.61 million, representing a 22.17% increase compared to CNY 859.11 million in 2018[25]. - The net profit attributable to shareholders for 2019 was CNY 149.55 million, a significant increase of 253.72% from CNY 42.28 million in 2018[25]. - The net cash flow from operating activities reached CNY 213.17 million, marking a 320.57% increase from CNY 50.69 million in the previous year[25]. - The total assets of the company as of the end of 2019 were CNY 2,116.23 million, a 46.42% increase from CNY 1,445.35 million at the end of 2018[25]. - The net assets attributable to shareholders increased by 58.96% to CNY 1,520.28 million at the end of 2019, compared to CNY 956.42 million at the end of 2018[25]. - Basic earnings per share increased by 209.01% to CNY 0.2024 from CNY 0.0655 in 2018[26]. - The company achieved a revenue of 1.05 billion RMB in 2019, representing a year-on-year growth of 22.17%[46]. - The net profit attributable to shareholders was 150 million RMB, reflecting a significant increase of 253.72% compared to the previous year[46]. Revenue Breakdown - Revenue from food additives reached CNY 662 million, an increase of 8.24% year-on-year, accounting for 63.06% of total revenue[39]. - Revenue from chemical raw materials and intermediates was CNY 380 million, a 63.48% increase year-on-year, making up 36.23% of total revenue[39]. - The sales revenue from food and feed additives was 663 million RMB, an increase of 6.49% compared to the previous year[46]. - The sales revenue from biochemical raw materials and pharmaceutical intermediates reached 380 million RMB, up 63.48% year-on-year, largely due to the acquisition of Jiuling Pharmaceutical[46]. - The revenue from food additives was approximately CNY 661.88 million, with a gross margin increase of 9.69 percentage points to 35.79%[82]. - The revenue from biochemical raw materials and pharmaceutical intermediates surged by 63.48% year-on-year, with pharmaceutical intermediates revenue increasing by 155.25% due to the acquisition of Jiuling Pharmaceutical[50]. Strategic Initiatives - The company plans not to distribute profits for 2019 due to negative cumulative profits and is in a strategic transformation phase[8]. - The company is focusing on its strategic transformation and has outlined potential risks and unfavorable factors in its future development[10]. - The company has strengthened its pharmaceutical intermediate R&D and production services through mergers and acquisitions, entering the pharmaceutical CMO industry[37]. - The company completed the acquisition of 100% equity in Jiuling Pharmaceutical, enhancing its operational scale and market presence[45]. - The company plans to undergo upgrades and strategic shifts starting in 2020, with preparations to stock certain products in advance to mitigate sales impacts during the transition[55]. - The company aims to enhance its operational capabilities and market presence while pursuing strategic investments and mergers to tap into emerging industries with strong growth potential[8]. Research and Development - The company’s research and development expenses increased by 46.85% to 36.47 million RMB, indicating a commitment to innovation[47]. - The total R&D investment for the period was 53,550,925.56 yuan, which is 5.10% of the operating income[66]. - The company’s R&D personnel count is 284, making up 12.4% of the total workforce[66]. - The company plans to enhance its product development capabilities to improve production efficiency and market competitiveness[85]. Environmental and Social Responsibility - The company has implemented environmental protection measures, adhering to a comprehensive environmental policy aimed at sustainable development[160]. - The company has engaged in social responsibility initiatives, including targeted poverty alleviation and support for public welfare projects[150]. - The company has undertaken 31 poverty alleviation projects in 2019, with 142 individuals from 35 households achieving poverty alleviation standards[151]. - The total investment in poverty alleviation projects in 2019 was CNY 12.1038 million, with 223 individuals successfully lifted out of poverty[155]. - The company emphasizes sustainable development, integrating economic growth with environmental protection initiatives[163]. Corporate Governance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[10]. - The company has not provided any guarantees in violation of regulatory decision-making procedures[10]. - The company has maintained its registered and tax locations unchanged, ensuring operational stability[105]. - The company has committed to maintaining the stability of its main business and enhancing its overall strength through resource integration, as stated by its controlling shareholder, Guangxin Group[105]. Market Outlook - The pharmaceutical industry in China is experiencing growth, with the production of chemical raw materials remaining stable at around 2.5 million tons per year, indicating a favorable market outlook for the company[77]. - The global active pharmaceutical ingredient (API) market was valued at 165.7 billion USD in 2018, projected to grow to 186.4 billion USD by 2020, with a growth rate exceeding 6%[6]. Shareholder Information - The company issued a total of 93,625,701 new shares, increasing the total share capital to 739,019,166 shares[174]. - The shareholding ratio of Huiri Asset in Xinghuo Technology after the private placement is 14.72%[121]. - The number of ordinary shareholders decreased from 59,467 to 39,324 by the end of the reporting period[180]. - The company plans to unlock shares held by major shareholders in three phases after achieving performance commitments[186].

Financial Performance - Net profit attributable to shareholders surged by 281.36% to CNY 121,904,059.27 year-to-date[19] - Operating revenue rose by 31.42% to CNY 844,691,019.04 for the year-to-date period[19] - The company's revenue increased by 31.42% compared to the same period last year, primarily due to capturing market opportunities and the acquisition of Jiuling Pharmaceutical[30] - The company's net profit attributable to shareholders increased by 281.36% year-on-year, benefiting from the strong sales of its main products and the good performance of Jiuling Pharmaceutical's assets[34] - Total operating revenue for Q3 2019 reached ¥290,756,858.69, a 46.0% increase from ¥199,121,726.35 in Q3 2018[50] - Net profit for Q3 2019 was ¥44,798,046.45, compared to ¥15,410,035.51 in Q3 2018, representing a 190.5% increase[53] - Total profit for the first three quarters of 2019 was ¥127,765,920.69, significantly higher than ¥31,965,839.93 in the same period of 2018[53] - The net profit for Q3 2019 was ¥26,487,739.87, representing an increase of 12.4% from ¥23,627,214.20 in Q3 2018[61] Cash Flow - Net cash flow from operating activities increased significantly by 4,323.86% to CNY 179,746,263.34 year-to-date[19] - The net cash flow from operating activities increased by 175.68 million yuan compared to the same period last year, driven by higher sales revenue[31] - Cash flow from operating activities for the first three quarters of 2019 was ¥179,746,263.34, a significant increase compared to ¥4,063,110.09 in the same period of 2018[64] - Operating cash flow for the first three quarters of 2019 was CNY 131,002,260.79, a significant increase from CNY 3,700,390.19 in the same period of 2018, representing a growth of approximately 3,442%[71] - Cash inflow from sales of goods and services was CNY 595,553,711.79, compared to CNY 439,857,604.69 in the previous year, representing a growth of 35.4%[71] Assets and Liabilities - Total assets increased by 37.60% to CNY 1,988,788,454.16 compared to the end of the previous year[19] - Total liabilities decreased to $425,343,924.07 from $437,130,133.04, a reduction of approximately 2.0%[47] - Current liabilities totaled $360,058,242.09, slightly up from $357,041,871.15 year-over-year[40] - Total liabilities amounted to $488.94 million, with current liabilities at $357.04 million and non-current liabilities at $131.89 million[77] - The company reported a total asset value of $1.65 billion, indicating a stable asset base for future operations[80] Shareholder Information - The total number of shareholders reached 38,823, with the largest shareholder holding 16.41% of shares[22] - The company's capital reserve increased by 42.13%, mainly from the issuance of shares to raise funds for acquiring Jiuling Pharmaceutical's equity[29] - The total equity attributable to shareholders was $956.42 million, with a capital reserve of $761.12 million and retained earnings showing a deficit of $622.95 million[77] Expenses and Costs - The company's management expenses increased by 72.69% year-on-year, mainly due to performance bonuses related to sales growth and the management expenses of Jiuling Pharmaceutical[30] - Research and development expenses for Q3 2019 totaled ¥13,180,312.64, a 72.5% increase from ¥7,672,474.00 in Q3 2018[50] - The company reported a decrease in sales expenses for Q3 2019, totaling ¥6,767,219.92, down from ¥8,508,725.73 in Q3 2018[50] - The company's management expenses increased to ¥20,932,923.44 in Q3 2019, up from ¥19,897,052.94 in Q3 2018, indicating ongoing investments in management capabilities[59] Investment Activities - The company's investment activities resulted in a net cash outflow increase of 173.21 million yuan, primarily due to payments for the acquisition of Jiuling Pharmaceutical and project construction costs[31] - Total cash inflow from investment activities was CNY 130,928,512.00, compared to CNY 3,960,464.92 in the previous year, indicating a substantial increase[71] - Net cash outflow from investment activities was CNY -209,074,278.75, worsening from CNY -20,605,311.50 year-over-year[71] Goodwill and Deferred Tax - The goodwill increased by 198 million yuan, mainly due to the premium generated from the acquisition of Jiuling Pharmaceutical[29] - The company's deferred tax assets increased by 3.40 million yuan, primarily due to Jiuling Pharmaceutical's recognition of deferred tax assets from excess rewards and asset impairment provisions[29]

Financial Performance - The company's operating revenue for the first half of 2019 was RMB 553,934,160.35, representing a 24.87% increase compared to RMB 443,600,565.34 in the same period last year[22]. - The net profit attributable to shareholders of the listed company reached RMB 77,106,012.82, a significant increase of 365.73% from RMB 16,555,804.42 in the previous year[22]. - The net cash flow from operating activities was RMB 138,082,101.56, showing a dramatic increase of 1,765.11% compared to RMB 7,403,444.81 in the same period last year[22]. - The basic earnings per share for the first half of 2019 was RMB 0.1043, a 305.84% increase from RMB 0.0257 in the same period last year[23]. - The weighted average return on net assets increased to 6.33%, up 4.54 percentage points from 1.79% in the previous year[23]. - The company achieved a revenue of 554 million RMB in the first half of 2019, representing a year-on-year growth of 24.87%[37]. - The net profit attributable to shareholders reached 77.11 million RMB, a significant increase of 365.73% compared to the previous year[37]. - The company reported a significant increase in prepayments by 216.98% to CNY 11,155,937.37, attributed to Jiuling Pharmaceutical's prepayments and increased procurement[46]. - The cumulative net profit for the year is expected to show a certain increase compared to the same period last year, as indicated in the forecast[55]. Acquisition and Integration - The company completed the acquisition of 100% equity in Jiuling Pharmaceutical, which was consolidated into the company's financial statements starting February 1, 2019, contributing to the increase in total assets and net profit[26]. - The acquisition of Jiu Ling Pharmaceutical was completed on February 1, 2019, which contributed to the substantial growth in the company's performance[33]. - The net profit from Jiuling Pharmaceutical, which was consolidated into the company's financial statements from February 1, 2019, amounted to CNY 31.7154 million, accounting for 41.13% of the company's net profit for the first half of the year[43]. - The goodwill from the acquisition of Jiuling Pharmaceutical was recorded at CNY 197,786,855.80, reflecting the premium paid during the acquisition[46]. - The integration of Jiuling Pharmaceutical's business systems and resources is expected to leverage synergies and enhance competitiveness, thereby reducing goodwill impairment risks[59]. - Jiuling Pharmaceutical's net profit commitments for 2017, 2018, 2019, and 2020 are set at no less than 30.2 million, 32 million, 37.9 million, and 43.5 million yuan, respectively[65]. Financial Position - The total assets of the company at the end of the reporting period were RMB 1,928,706,558.39, up 33.44% from RMB 1,445,352,319.26 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were RMB 1,447,838,411.96, reflecting a 51.38% increase from RMB 956,416,903.10 at the end of the previous year[22]. - Cash and cash equivalents increased by 129.84% to CNY 224,502,765.96, driven by improved cash inflow from operating activities[46]. - Accounts receivable rose by 100.79% to CNY 128,641,735.98, reflecting the increase in operating income and the addition of Jiuling Pharmaceutical's receivables[46]. - The company's intangible assets increased by 30.39% to CNY 154,013,967.31, primarily due to the intangible assets from Jiuling Pharmaceutical amounting to CNY 38.23 million[46]. - The company's capital reserve increased by 42.13% to CNY 1,081,810,548.93, resulting from the issuance of shares to acquire Jiuling Pharmaceutical's equity[48]. Operational Efficiency - Sales expenses decreased by 18.26% to 13.64 million RMB, primarily due to reduced transportation costs[41]. - Research and development expenses increased by 12.57% to 22.36 million RMB, reflecting the growth in Jiu Ling Pharmaceutical's R&D activities[41]. - The company’s management expenses surged by 103.67% to 63.34 million RMB, driven by performance-based bonuses and the integration of Jiu Ling Pharmaceutical[41]. - The company plans to enhance its innovation capabilities and accelerate industrial upgrades and product structure adjustments in response to economic and policy changes[56]. - The company aims to optimize its procurement strategy by expanding high-quality supplier sources to improve the stability and reliability of raw material supply[59]. Environmental and Social Responsibility - The company emphasizes environmental protection, achieving pollutant discharge levels that meet industry and national standards, with specific emissions data provided for various pollutants[97]. - The company is actively involved in poverty alleviation efforts, focusing on improving the income of targeted impoverished populations[91]. - The company provided financial support of 27.1681 million RMB for poverty alleviation efforts, helping 192 registered impoverished individuals to escape poverty[92]. - A total of 4 industry development poverty alleviation projects were initiated, including agricultural and forestry projects, benefiting 192 impoverished individuals[92]. - The company completed the renovation of 17 out of 18 designated dilapidated houses for impoverished households, with a government subsidy provided[95]. Corporate Governance - The company has no major litigation or arbitration matters during the reporting period[82]. - There are no significant related party transactions reported during the period[85]. - The company has renewed the appointment of Da Hua Accounting Firm as its annual audit institution[82]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[126]. - The company has not issued any preferred shares during the reporting period[125]. Accounting and Financial Reporting - The new financial instrument standards were implemented on January 1, 2019, with no significant impact on the company's financial statements[109]. - The company has not reported any significant accounting errors requiring retrospective restatement during the reporting period[110]. - The financial statements are prepared based on actual transactions and events in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status and operating results[169]. - The company applies the acquisition method for business combinations, measuring the identifiable net assets at fair value on the acquisition date[179].

Financial Performance - In 2018, the company's operating revenue reached ¥859,110,032.61, representing a 25.06% increase compared to ¥686,969,427.88 in 2017[24]. - The net profit attributable to shareholders was ¥42,280,333.75, a significant recovery from a loss of ¥158,273,194.87 in 2017[24]. - The net cash flow from operating activities was ¥50,686,252.69, slightly up by 1.53% from ¥49,920,034.90 in the previous year[24]. - The company's total assets at the end of 2018 were ¥1,445,352,319.26, a decrease of 0.23% from ¥1,448,709,073.40 in 2017[24]. - The net assets attributable to shareholders increased to ¥956,416,903.10, up by 4.63% from ¥914,136,569.35 in 2017[24]. - Basic earnings per share improved to ¥0.0655 from a loss of ¥0.2452 in 2017[24]. - The weighted average return on net assets was 4.52%, an increase of 20.45 percentage points from -15.93% in 2017[24]. - The company achieved operating revenue of 859.11 million RMB, a year-on-year increase of 25.06%[41]. - The net profit attributable to shareholders was 42.28 million RMB, an increase of 201 million RMB compared to the previous year[41]. - The gross margin for food and feed additives improved by 25.44 percentage points to 25.41%[43]. Revenue Breakdown - The total annual revenue from food additives in 2018 was CNY 612 million, representing a year-on-year increase of 59.24% and accounting for 71.18% of total operating revenue[32]. - The sales revenue from food and feed additives reached 622.35 million RMB, up 58.97% year-on-year, benefiting from strong market demand[41]. - The sales revenue from biochemical raw materials was 232.63 million RMB, a decrease of 20.06% due to reduced market demand and increased competition[41]. - Revenue from food additives reached ¥611.50 million, with a year-over-year increase of 59.24% and a gross margin improvement of 25.62 percentage points[45]. - Feed additives revenue increased to ¥10.85 million, with a year-over-year growth of 44.88%, although the gross margin remained negative at -13.89%[45]. - Domestic revenue grew to ¥733.01 million, reflecting a 22.00% increase, while the gross margin improved by 9.68 percentage points to 24.49%[45]. - Export revenue surged by 49.35% to ¥121.97 million, driven by a 282% increase in export volume due to the gradual release of production capacity from the corn fermentation line[45]. Research and Development - The company's R&D expenses increased by 46.52% to 36.47 million RMB, reflecting a commitment to innovation[42]. - The total R&D investment amounted to 36,467,029.86, which is 4.24% of operating revenue[65]. - The company has 221 R&D personnel, making up 12.6% of the total workforce, indicating a strong focus on innovation[65]. - The company plans to enhance R&D efforts on existing products and new product development to improve production efficiency and market competitiveness[66]. - The company is investing heavily in R&D for new technologies, with an allocation of 10% of total revenue towards innovation initiatives[168]. Strategic Initiatives - The company is in a critical phase of strategic transformation, focusing on industry development characteristics and actual conditions[7]. - The company aims to enhance its core product competitiveness and expand into high-growth emerging industries through strategic investments and mergers[86]. - The company plans to achieve continuous growth in revenue and net profit in 2019, focusing on high-quality development amid economic pressures[87]. - The management team emphasized the importance of digital transformation strategies to improve operational efficiency and customer experience[168]. - The company has established long-term strategic partnerships with large domestic and international enterprises, enhancing its competitive position[38]. Environmental and Social Responsibility - The company maintains a strong commitment to environmental protection, achieving stable pollutant discharge levels that meet industry and national standards, including controlling smoke emissions to 16 mg/m³ and SO2 emissions to 83 mg/m³[135]. - The company has implemented a comprehensive GMP quality management system for raw materials, ensuring compliance with international standards and securing continuous orders from large multinational pharmaceutical companies[134]. - The company has actively participated in social responsibility initiatives, supporting local education, culture, and health, while maintaining a harmonious relationship with the community[134]. - The company implemented 35 poverty alleviation projects, helping 192 individuals achieve poverty alleviation standards[126]. - The total investment in poverty alleviation projects amounted to RMB 21.45 million, with 234 individuals helped to escape poverty[127]. Shareholder and Governance - The company has established a clear cash dividend policy and has strictly adhered to it during the reporting period, with no adjustments made[90]. - The company has maintained a consistent approach to shareholder returns, with no dividends declared in the last three years[93]. - The independent auditor confirmed that the financial statements fairly present the company's financial position and operating results for the year ended December 31, 2018[196]. - The board of directors held 12 meetings during the year, with all members present at each meeting[190]. - There were no objections raised by independent directors regarding company matters during the reporting period[190]. Future Outlook - Future outlook includes a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[168]. - A new product line is set to launch in Q3 2019, expected to contribute an additional 5% to overall revenue[168]. - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 8% over the next year[168]. - Shareholder returns are expected to increase, with a proposed dividend payout ratio of 30% of net profits for the upcoming fiscal year[168].