[I. Important Notice](index=3&type=section&id=I.%20Important%20Notice) This section confirms the report's authenticity by management and clarifies that the financial statements are unaudited [1.1 Report Authenticity and Audit Status](index=3&type=section&id=1.1%20Report%20Authenticity%20and%20Audit%20Status) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, which remains unaudited - Management guarantees the report's truthfulness, accuracy, and completeness, explicitly stating this quarterly report is unaudited[6](index=6&type=chunk)[8](index=8&type=chunk) [II. Company's Key Financial Data and Shareholder Changes](index=3&type=section&id=II.%20Company's%20Key%20Financial%20Data%20and%20Shareholder%20Changes) This section details the company's key financial performance, including a profit turnaround despite revenue decline, and outlines significant shareholder information [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In the first three quarters of 2016, revenue decreased by 18.43% year-over-year, but the company achieved a turnaround with a net profit of **15.24 million yuan** for shareholders, compared to a **175 million yuan** loss in the prior year, largely due to **54.51 million yuan** in non-recurring gains Key Financial Data for the First Three Quarters of 2016 | Metric | Year-to-Date (Jan-Sep) | Prior Year-to-Date (Jan-Sep) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 493,190,695.04 RMB | 604,597,183.33 RMB | -18.43% | | Net Profit Attributable to Shareholders | 15,238,728.35 RMB | -175,168,238.95 RMB | N/A (Turned Profit) | | Net Profit Excluding Non-Recurring Items | -39,270,423.77 RMB | -190,582,856.11 RMB | N/A (Reduced Loss) | | Net Cash Flow from Operating Activities | 27,189,161.06 RMB | 19,213,093.19 RMB | 41.51% | | Basic Earnings Per Share (RMB/share) | 0.0236 | -0.2714 | N/A (Turned Profit) | Non-Recurring Gains and Losses for the First Three Quarters of 2016 | Item | Year-to-Date Amount (Jan-Sep) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 44,776,289.16 RMB | | Government Grants Recognized in Current Profit/Loss | 5,380,592.34 RMB | | Investment Income (Financial Assets) | 4,763,649.09 RMB | | Other Non-Operating Income and Expenses | -411,378.47 RMB | | **Total** | **54,509,152.12 RMB** | [2.2 Shareholder Information](index=5&type=section&id=2.2%20Shareholder%20Information) As of the reporting period, the company had **41,711 shareholders**, with Guangdong Guangxin Holdings Group Co., Ltd. (14.94%) and Shenzhen Great Wall Huili Asset Service Enterprise (Limited Partnership) (14.72%) as the top two, the latter having pledged all **95 million shares** - As of the reporting period, the company had a total of **41,711 shareholders**[11](index=11&type=chunk) Top Two Shareholders' Holdings | Shareholder Name | Shares Held at Period End | Percentage (%) | | :--- | :--- | :--- | | Guangdong Guangxin Holdings Group Co., Ltd. | 96,417,436 | 14.94 | | Shenzhen Great Wall Huili Asset Service Enterprise (Limited Partnership) | 95,000,000 | 14.72 | - Shenzhen Great Wall Huili Asset Service Enterprise (Limited Partnership) and Shenzhen Great Wall Huili No. 6 Special Investment Enterprise (Limited Partnership) are parties acting in concert[12](index=12&type=chunk) [III. Significant Matters](index=6&type=section&id=III.%20Significant%20Matters) This section covers significant changes in financial statement items, the fulfillment of commitments by the company and major shareholders, and the company's positive performance forecast [3.1 Analysis of Significant Changes in Financial Statement Items](index=6&type=section&id=3.1%20Analysis%20of%20Significant%20Changes%20in%20Financial%20Statement%20Items%20and%20Causes) During the reporting period, several financial indicators changed significantly: other receivables increased by **134.38%** due to subsidiary equity transfer, investment income surged by **76.81 million yuan** from subsidiary disposal and reduced associate losses, and net cash from investing activities increased by **224 million yuan** due to securities recovery and subsidiary disposal - Balance Sheet Item Changes: - **Other Receivables**: Increased by **134.38%** from the beginning of the period, primarily due to increased receivables from subsidiary equity transfers[12](index=12&type=chunk) - **Advances from Customers**: Increased by **809.22%** from the beginning of the period, mainly due to land use rights expropriation payments received[12](index=12&type=chunk) - **Non-Current Liabilities Due Within One Year**: Increased by **133.52%** from the beginning of the period, mainly due to reclassification of corporate bonds due in July 2017[12](index=12&type=chunk) - Income Statement Item Changes: - **Asset Impairment Losses**: Decreased by **105.52%** year-over-year, primarily due to lower main product costs and reversal of inventory impairment provisions from the prior year[13](index=13&type=chunk)[14](index=14&type=chunk) - **Investment Income**: Increased by **76.81 million yuan** year-over-year, mainly due to **35.96 million yuan** gain from subsidiary equity transfer and no longer recognizing losses from associates[13](index=13&type=chunk)[14](index=14&type=chunk) - **Non-Operating Income**: Increased by **230.25%** year-over-year, primarily due to increased gains from disposal of idle properties[13](index=13&type=chunk)[14](index=14&type=chunk) - Cash Flow Statement Item Changes: - **Net Cash Flow from Operating Activities**: Increased by **41.51%** year-over-year, due to increased gross profit from sales[15](index=15&type=chunk) - **Net Cash Flow from Investing Activities**: Increased by **224 million yuan** year-over-year, due to recovery of securities investments and increased cash from subsidiary disposals[15](index=15&type=chunk) - **Net Cash Flow from Financing Activities**: Increased outflow by **96.88 million yuan** year-over-year, due to repayment of matured corporate bond principal[15](index=15&type=chunk) [3.3 Fulfillment of Commitments by the Company and Shareholders Holding 5% or More](index=7&type=section&id=3.3%20Fulfillment%20of%20Commitments%20by%20the%20Company%20and%20Shareholders%20Holding%205%25%20or%20More) The company and its shareholders holding 5% or more (Guangxin Group, Huili Asset, etc.) strictly fulfilled all commitments made during acquisitions, equity changes, and refinancing activities, with no violations - During the reporting period, the company and relevant shareholders timely and strictly fulfilled all disclosed commitments[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [3.4 Performance Forecast](index=10&type=section&id=3.4%20Performance%20Forecast) The company anticipates achieving a turnaround to profitability for the full year 2016, driven by enhanced management, cost optimization, improved main business profitability, and significant year-over-year increases from asset revitalization and investments - The company expects to achieve a turnaround to profitability this year, primarily due to improved main business profitability, asset revitalization, and a significant year-over-year increase in investment income[19](index=19&type=chunk) [IV. Appendix](index=11&type=section&id=IV.%20Appendix) This section provides the company's unaudited consolidated and parent company financial statements, including the balance sheet, income statement, and cash flow statement [4.1 Financial Statements](index=11&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company financial statements as of September 30, 2016, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=11&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2016, total assets were **1.746 billion yuan**, a **5.30%** decrease from the beginning of the year; net assets attributable to shareholders were **1.063 billion yuan**, up **1.45%**, while total liabilities significantly decreased to **683 million yuan** from **796 million yuan** Key Consolidated Balance Sheet Items (September 30, 2016) | Item | Period-End Balance | Beginning-of-Year Balance | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,746,254,680.23 RMB | 1,843,984,128.12 RMB | -5.30% | | Total Liabilities | 682,912,377.10 RMB | 795,880,553.34 RMB | -14.19% | | Total Equity Attributable to Parent Company Owners | 1,063,342,303.13 RMB | 1,048,103,574.78 RMB | +1.45% | [Consolidated Income Statement](index=15&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2016, total operating revenue was **493 million yuan**, down **18.43%** year-over-year; despite the revenue decline, net profit attributable to parent company owners turned profitable at **15.24 million yuan**, compared to a **175 million yuan** loss in the prior year, with basic EPS at **0.0236 yuan** Key Consolidated Income Statement Items (Jan-Sep 2016) | Item | Year-to-Date Amount | Prior Year-to-Date Amount | | :--- | :--- | :--- | | Total Operating Revenue | 493,190,695.04 RMB | 604,597,183.33 RMB | | Operating Profit | 3,773,176.81 RMB | -179,834,850.04 RMB | | Total Profit | 18,143,963.55 RMB | -176,487,367.80 RMB | | Net Profit Attributable to Parent Company Owners | 15,238,728.35 RMB | -175,168,238.95 RMB | | Basic Earnings Per Share (RMB/share) | 0.0236 | -0.2714 | [Consolidated Cash Flow Statement](index=18&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2016, net cash flow from operating activities was **27.19 million yuan**, up **41.51%** year-over-year; investing activities shifted from a **104 million yuan** net outflow to a **120 million yuan** net inflow, driven by investment recovery and asset disposal; financing activities had a **154 million yuan** net outflow Key Consolidated Cash Flow Statement Items (Jan-Sep 2016) | Item | Year-to-Date Amount | Prior Year-to-Date Amount | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 27,189,161.06 RMB | 19,213,093.19 RMB | | Net Cash Flow from Investing Activities | 120,211,673.21 RMB | -103,950,655.44 RMB | | Net Cash Flow from Financing Activities | -154,020,852.80 RMB | -57,138,582.24 RMB | | Cash and Cash Equivalents at Period End | 157,549,513.59 RMB | 226,196,601.76 RMB | [4.2 Audit Report](index=20&type=section&id=4.2%20Audit%20Report) This quarterly report remains unaudited - The report explicitly states that these financial statements are unaudited[38](index=38&type=chunk)

2016 年半年度报告 公司代码：600866 公司简称：*ST 星湖 广东肇庆星湖生物科技股份有限公司 2016 年半年度报告 重要提示 本报告期不进行利润分配及公积金转增股本。 六、 前瞻性陈述的风险声明 本报告中所涉及的未来计划、业务规划等前瞻性描述不能构成公司对投资者的实质承 诺，敬请投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 1 / 108 一、本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、 准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法 律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人莫仕文、主管会计工作负责人朱华及会计机构负责人（会计主管人员） 倪达新声明：保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 | 第二节 | 公司简介 3 | | --- | --- | | 第三节 | 会计数据和财务指标摘要 4 | | 第四节 | 董事会报告 6 | | 第 ...

Financial Performance - In 2015, the company's operating revenue was approximately RMB 729.76 million, a decrease of 16.26% compared to RMB 871.49 million in 2014[16]. - The net profit attributable to shareholders was a loss of approximately RMB 422.35 million, compared to a loss of RMB 360.80 million in 2014[16]. - The company's total assets decreased by 18.25% to approximately RMB 1.84 billion from RMB 2.26 billion in 2014[16]. - The net assets attributable to shareholders decreased by 28.97% to approximately RMB 1.05 billion from RMB 1.48 billion in 2014[16]. - The basic earnings per share for 2015 was -0.6544 yuan, slightly worse than -0.6494 yuan in 2014[17]. - The weighted average return on equity decreased by 5.67 percentage points to -33.53% in 2015 from -27.86% in 2014[17]. - The company did not propose any profit distribution or capital reserve transfer to share capital due to the negative accumulated profits[2]. - The cash flow from operating activities was approximately RMB 2.75 million, an improvement from a negative cash flow of RMB 20.22 million in 2014[16]. - The company faced a delisting risk warning due to consecutive years of negative net profit in 2014 and 2015[4]. - Total revenue for the first quarter was ¥227,916,655.82, with a decline to ¥125,164,286.71 by the fourth quarter, representing a decrease of approximately 45% over the year[19]. - Net profit attributable to shareholders showed a loss of ¥49,265,433.38 in the first quarter, worsening to a loss of ¥247,186,180.39 by the fourth quarter, indicating a significant increase in losses[19]. - Cash flow from operating activities was positive at ¥14,768,876.71 in the first quarter but turned negative at -¥16,467,801.30 by the fourth quarter, reflecting a downward trend in operational efficiency[19]. - The total cash flow from operating activities for the year was negative, indicating challenges in maintaining liquidity and operational cash generation[19]. - The overall financial outlook remains cautious, with the company indicating a need for strategic adjustments to address ongoing losses and cash flow issues[19]. Market and Industry Context - The company primarily engages in the research, production, and sales of food additives, feed additives, chemical raw materials, and pharmaceutical intermediates, utilizing bio-fermentation and bio-chemical technologies[27]. - The production of major biological fermentation products in China increased from 22.3 million tons in 2011 to 24.2 million tons in 2014, with a total annual output value approaching 280 billion yuan[29]. - The food and feed additive manufacturing industry in China achieved a total output value of 211.41 billion yuan in 2014, reflecting a growth rate of 12.01% compared to the previous year[30]. - The feed additives market is essential for enhancing the nutritional value of basic feed, improving animal production performance, and ensuring animal health[30]. - The company’s key products include inosine, proline, ribavirin, adenine, fructose syrup, and sodium 5'-nucleotide, which serve various applications in the food and pharmaceutical industries[27]. - The company is positioned within the "C14 Food Manufacturing" category according to the industry classification guidelines, specifically in the bio-fermentation manufacturing sector[29]. Operational Challenges - The company faced challenges from market competition, environmental regulations, and outdated production lines, impacting overall performance[35]. - The company implemented reforms to optimize management processes and improve efficiency, although it did not achieve profitability in 2015[35]. - Domestic and international sales revenue declined by 22.07%, primarily due to intense market competition for the main product, disodium guanylate, leading to a significant drop in sales volume[46]. - The gross margin for food and feed additives decreased by 13.75 percentage points, primarily due to oversupply and declining product prices[41]. - The production of disodium guanylate decreased by 45.95%, with sales volume dropping by 52.51%[44]. Financial Management and Investments - The company reported a significant reduction in financial expenses by 31.19% due to decreased debt and bank loan scales[50]. - The total investment in fixed assets and financial products increased, leading to a net cash outflow from investing activities of -16,498.26 thousand yuan[55]. - The company has engaged in cash asset management, with a total of RMB 3,000 million invested in various financial products, yielding returns of up to 28.38%[95]. - The total amount of entrusted financial products reached RMB 47.4 billion, with a total income of RMB 34.8 billion, reflecting a yield of 164.92%[96]. - The company has maintained a stable financial structure, ensuring the protection of creditors' rights and interests, with no incidents of harming creditor interests reported[98]. Shareholder and Governance Information - The number of ordinary shareholders increased from 49,866 to 55,619 during the reporting period, indicating a growth in shareholder engagement[108]. - The top shareholder, Guangdong Guangxin Holdings Group Co., Ltd., holds 14.94% of the shares, totaling 96,417,436 shares[110]. - The company has established a comprehensive quality management system, achieving certifications such as ISO9001:2008 and GMP, ensuring product quality across various stages[100]. - The company has a governance structure that complies with the requirements of the Company Law and the Securities Law, ensuring effective decision-making and supervision[135]. - The company has not reported any changes in shareholding for the current year among its directors and senior management[123]. Future Outlook and Strategic Plans - The company aims to achieve a turnaround and profitability in 2016 amidst a challenging economic environment and intense market competition[74]. - The company plans to enhance production management and optimize cost control to ensure profitability in its main business[75]. - The company is focusing on strategic investments and acquisitions to drive business transformation and improve asset quality[75]. - The company is actively monitoring economic conditions and adjusting its development strategy to maximize efficiency and profitability[77]. - The company committed to maintaining the stability of its main business operations and enhancing its overall strength through resource integration[82].

Financial Performance - Operating revenue for the current period was CNY 154,540,270.63, down 32.19% year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 25,879,320.82, an improvement from a loss of CNY 61,366,986.64 in the same period last year[6] - Basic and diluted earnings per share were both -CNY 0.0374, showing no improvement from the previous year[6] - Operating income decreased by 32.19% year-over-year, primarily due to a reduction in product sales[11] - Operating costs decreased by 34.11% year-over-year, corresponding to the decrease in sales revenue[11] - Sales expenses decreased by 61.79% compared to the beginning of the period, attributed to lower transportation costs due to reduced product sales[11] - The company's net loss for the period was reported at CNY -555,381,881.58, compared to CNY -531,268,254.25 at the beginning of the year, indicating a worsening of the loss[20] - Total operating revenue for Q1 2016 was ¥154,540,270.63, a decrease of 32.2% compared to ¥227,916,655.82 in the same period last year[23] - Net loss for Q1 2016 was ¥24,113,627.33, compared to a net loss of ¥49,269,048.59 in Q1 2015, representing a 51.0% improvement[23] - The total comprehensive loss for Q1 2016 was ¥24,113,627.33, compared to a loss of ¥54,243,469.98 in Q1 2015, indicating a significant reduction in losses[23] Cash Flow - Cash flow from operating activities was CNY 1,398,302.64, a significant decrease of 90.53% compared to CNY 14,768,876.71 in the previous year[6] - Cash flow from operating activities decreased by 90.53% year-over-year, mainly due to a decrease in cash received from sales revenue[11] - The company's operating cash flow for Q1 2016 was RMB 1,398,302.64, a significant decrease of 90.5% compared to RMB 14,768,876.71 in the same period last year[26] - Total cash inflow from operating activities was RMB 105,074,938.68, down 33.3% from RMB 157,663,733.22 year-over-year[26] - Cash outflow from operating activities decreased to RMB 103,676,636.04, a reduction of 27.4% compared to RMB 142,894,856.51 in Q1 2015[26] - The ending cash and cash equivalents balance was RMB 133,321,318.18, down 50.9% from RMB 271,477,007.40 year-over-year[26] - The company reported a net decrease in cash and cash equivalents of RMB -30,848,213.94 for the quarter, compared to a decrease of RMB -96,595,738.85 in the previous year[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,810,324,527.72, a decrease of 1.83% compared to the end of the previous year[6] - The company's current assets totaled CNY 713,408,193.56, down from CNY 726,188,485.95, indicating a decrease of about 1.1%[19] - Total liabilities amounted to CNY 786,334,580.27, down from CNY 795,880,553.34, indicating a decrease of about 1.2%[20] - The company's total equity was CNY 1,023,989,947.45, a decrease from CNY 1,048,103,574.78, reflecting a decline of approximately 2.3%[20] - The company's total liabilities decreased from ¥747,921,661.39 in the previous period to ¥738,690,317.90 in the current period, a reduction of 1.6%[22] - Total equity decreased from ¥1,254,655,366.03 to ¥1,239,335,731.63, reflecting a decline of 1.2%[22] Shareholder Information - The number of shareholders at the end of the reporting period was 49,866[9] - The largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., held 14.94% of the shares[10] Investment and Development - The company reported non-operating income of CNY 1,765,693.49 for the current period[8] - The company's construction in progress increased by 31.63% compared to the beginning of the period, primarily due to increased investment in technological transformation projects[11] - The company's advance receipts increased by 163.69% compared to the beginning of the period, mainly due to an increase in advance payments received[11] - The company reported an investment income of ¥1,155,123.82 in Q1 2016, compared to a loss of ¥10,071,883.48 in the previous year[23] - The net cash flow from investing activities was negative at RMB -18,683,401.85, an improvement from RMB -92,349,522.23 in the previous year[26] Corporate Governance and Control - The company confirmed that it holds a 14.72% voting right in Xinghuo Technology, with the voting rights belonging to Guangxin Group after the non-public offering[14] - The company committed to maintaining its status as the controlling shareholder of Xinghuo Technology for 36 months post the non-public offering, including not reducing its shareholding[14] - The company will take proactive measures, including increasing its shareholding in Xinghuo Technology, to eliminate any impact on its controlling position[14] - The partnership confirmed it does not hold any direct or indirect shares in Xinghuo Technology outside of the shares acquired through this issuance[14] - The partnership will not seek to gain control over the board of directors of Xinghuo Technology and will only nominate one director candidate[14] - Any voting rights exceeding the current 14.72% shareholding will be exercised by Guangxin Group[14] - The partnership will cooperate with Guangxin Group to maintain its control over the board if its nomination rights threaten that control[14] - The company has not entered into any agreements with Shenzhen Changcheng Huili Asset Services regarding joint action[14] - The partnership will not take any measures to change the composition of Xinghuo Technology's board of directors[14] - The company will not vote in favor of any proposals that would violate its commitments regarding the board of directors[14] - The company holds a controlling stake of 14.72% in Xinghuo Technology after the completion of the private placement[15] - The voting rights exceeding the 14.72% stake will belong to Guangxin Group, with compensation equivalent to the market value of the excess shares[15] - The company confirms it will not seek to gain control over the board of Xinghuo Technology directly or indirectly[15] - The company will only nominate one candidate for the board of Xinghuo Technology and will not take actions to change the board's composition[15] - Any actions that may lead to Guangxin Group losing control over the board will be opposed by the company[15] - The company has committed to cooperate with Guangxin Group to restore or consolidate its control over Xinghuo Technology if necessary[15] - The company has not entered into any agreements with Guangxin Group regarding joint actions or control over Xinghuo Technology[15] - The company will not acquire control of Xinghuo Technology through any means, including increasing shareholding or agreements[15] - The company will ensure compliance with the regulations of Xinghuo Technology's articles of association[15] - The company will take proactive measures to reduce its control if it inadvertently gains control over Xinghuo Technology[15]

Financial Performance - Operating revenue increased by 1.69% to CNY 604,597,183.33 for the first nine months compared to the same period last year[7]. - Net profit attributable to shareholders was a loss of CNY 175,168,238.93, an improvement from a loss of CNY 224,083,621.03 in the same period last year[7]. - Basic and diluted earnings per share were both CNY -0.2714, improving from CNY -0.4071 in the same period last year[7]. - Total operating revenue for Q3 2015 was CNY 171,788,134.87, a decrease of 19.6% compared to CNY 213,659,309.49 in Q3 2014[27]. - Net loss for Q3 2015 was CNY 67,202,257.32, compared to a net loss of CNY 74,780,592.63 in Q3 2014, showing an improvement of 7.0%[28]. - The total comprehensive loss for Q3 2015 was CNY 67,202,257.32, compared to CNY 73,803,092.63 in Q3 2014, indicating a reduction in losses[29]. - Year-to-date revenue reached ¥603.93 million, up 4.9% from ¥580.43 million in the same period last year[31]. Assets and Liabilities - Total assets decreased by 7.43% to CNY 2,087,948,102.18 compared to the end of the previous year[7]. - Total liabilities increased from CNY 787,367,729.62 to CNY 799,919,631.99, a rise of about 1.98%[22]. - Current assets totaled CNY 824,628,137.35, down from CNY 930,990,358.50, representing a decrease of about 11.39%[21]. - Cash and cash equivalents decreased by 38.55% compared to the beginning of the period, primarily due to fixed asset purchases, increased investment in financial products, and repayment of bank loans and bond interest[11]. - Total equity decreased from CNY 1,468,160,137.21 to CNY 1,288,028,470.19, a decline of approximately 12.2%[22]. Cash Flow - Net cash flow from operating activities was CNY 19,213,093.19, a significant recovery from a negative cash flow of CNY -60,563,176.50 in the same period last year[7]. - Operating cash flow net inflow increased by 79.78 million compared to the same period last year, primarily due to increased cash received from sales revenue and tax refunds[14]. - Cash flow from operating activities generated ¥19.21 million, a significant recovery from a negative cash flow of ¥60.56 million in the same period last year[34]. - The company reported a net cash outflow from financing activities of CNY -57,138,582.24, an improvement from CNY -135,981,135.54 year-on-year[39]. Shareholder Information - The total number of shareholders at the end of the reporting period was 50,614[10]. - The largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., held 14.94% of shares[10]. - The second largest shareholder, Shenzhen Changcheng Huili Asset Management Co., Ltd., held 14.72% of shares, with 95,000,000 shares pledged[10]. Investments and Expenses - Sales expenses increased by 34.49% compared to the same period last year, mainly due to increased transportation costs associated with higher sales volume[12]. - Financial expenses decreased by 32.63% compared to the same period last year, primarily due to reduced interest expenses from decreased bank loans and bonds[12]. - Investment losses from joint ventures and associates increased by 12.07 million compared to the same period last year, mainly due to increased losses from the new materials company[13]. Commitments and Future Outlook - The company committed to maintaining its controlling stake in Xinghuo Technology for 36 months following the completion of the private placement, ensuring no reduction in shareholding[16]. - The cumulative net profit forecast for the year until the next reporting period may indicate a loss or significant change compared to the same period last year[18].

Financial Performance - The company's operating revenue for the first half of 2015 was RMB 432,809,048.46, representing a 13.62% increase compared to RMB 380,911,407.03 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of RMB 107,968,344.50, an improvement from a loss of RMB 149,307,124.93 in the previous year[17]. - The net cash flow from operating activities was RMB 36,662,822.56, a significant recovery from a negative cash flow of RMB -72,285,714.94 in the same period last year[17]. - The total assets at the end of the reporting period were RMB 2,192,766,157.40, down 2.78% from RMB 2,255,527,866.83 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased by 7.65% to RMB 1,362,556,649.60 from RMB 1,475,499,415.49 at the end of the previous year[17]. - The basic earnings per share for the first half of 2015 was -0.1673, an improvement from -0.2713 in the same period last year[18]. - The weighted average return on net assets increased by 3.06 percentage points to -7.62% from -10.68% in the previous year[18]. - The company reported a net loss of CNY 17,862,169.57 compared to a profit of CNY 74,854,985.06 in the previous period[60]. - The comprehensive income for the current period shows a total loss of 112,949,726.48 RMB, compared to a loss of 144,032,894.50 RMB in the previous period, indicating an improvement of about 21.5%[72]. Operational Highlights - Operating costs increased by 25.52% to ¥420,237,161.98, driven by rising costs of certain products[25]. - Management expenses decreased by 21.30% to ¥52,750,449.20, attributed to a reduction in depreciation costs[25]. - Research and development expenses increased by 7.81% to ¥14,550,552.31, reflecting a slight increase in phase investments[25]. - Domestic sales revenue was ¥280,621,711.22, a decrease of 0.91%, while export sales revenue increased by 56.23% to ¥149,407,549.97[31]. - The company reported non-recurring gains and losses totaling ¥17,684,781.66, primarily from government subsidies and fair value changes of financial assets[19]. Shareholder Information - The total number of shareholders reached 50,614 by the end of the reporting period[46]. - Guangdong Guangxin Holdings Group Co., Ltd. held 96,417,436 shares, accounting for 14.94% of the total shares[47]. - Shenzhen Changcheng Huili Asset Management Co., Ltd. held 95,000,000 shares, representing 14.72% of the total shares, with 95,000,000 shares under lock-up conditions[47]. - Zhaoqing Municipal Government State-owned Assets Supervision and Administration Commission held 15,000,000 shares, which is 2.32% of the total shares, with 7,500,000 shares pledged[47]. - Zhang Liming held 13,134,809 shares, accounting for 2.04% of the total shares[47]. Corporate Governance - The company confirmed that there were no changes in controlling shareholders or actual controllers during the period[50]. - The company has complied with corporate governance regulations and improved its governance structure during the reporting period[43]. - The company committed not to seek control over the board of directors of Xinghuo Technology[42]. - The company has not signed any agreements or made arrangements to gain control over Xinghuo Technology shares[42]. Financial Management - The total amount of entrusted financial management reached 25,800,000 RMB, with actual returns of 21,646,000 RMB, yielding a return rate of 105.68%[32]. - The company raised a total of 36,575,000 RMB through private placement, with 12,090,500 RMB utilized during the reporting period, and 28,113,500 RMB cumulatively used[34]. - The company provided guarantees totaling 18,782,150 RMB, which accounted for 13.86% of the company's net assets[38]. - The company confirmed that it will maintain the stability of its existing main business and enhance its overall strength through resource integration[39]. Risk Management - The company emphasizes that forward-looking statements in the report do not constitute substantive commitments to investors, highlighting investment risks[3]. - The company focused on enhancing execution, responsibility management, and risk management to navigate a challenging economic environment[23]. Accounting Policies - The company continues to adhere to the accounting standards set by the Ministry of Finance, ensuring compliance and transparency in financial reporting[84]. - The company has not made any changes to significant accounting policies or estimates during the reporting period[198]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[93]. Asset Management - Total current assets as of June 30, 2015, amounted to ¥957,631,251.06, an increase from ¥930,990,358.50 at the beginning of the period[56]. - Cash and cash equivalents decreased to ¥319,612,821.92 from ¥368,072,746.25, reflecting a decline of approximately 13.1%[56]. - Inventory increased to ¥302,706,630.89, up from ¥255,213,084.69, representing a growth of about 18.6%[56]. - Total liabilities increased to CNY 837,555,746.67, up from CNY 787,367,729.62, representing a growth of approximately 8.5%[57]. Investment Activities - Cash outflow from investment activities totaled CNY 328,884,704.74, compared to CNY 137,568,151.49 in the previous period, indicating increased investment activity[67]. - The company reported an increase in sales expenses to ¥17,770,047.67 from ¥11,927,267.30, reflecting a rise of 49.2%[62]. Future Outlook - The company plans to strengthen its market presence through mergers and acquisitions and improve marketing capabilities to increase market share[23]. - The company confirmed that it has not directly or indirectly held shares in Star Lake Technology outside of its current holdings[40].

Financial Performance - Operating revenue for the period was CNY 227,916,655.82, representing a year-on-year increase of 21.75%[6] - Net profit attributable to shareholders was CNY -49,265,433.38, showing an improvement from CNY -57,360,779.64 in the same period last year[6] - The weighted average return on equity improved to -3.40% from -3.97% year-on-year[6] - Basic and diluted earnings per share were both CNY -0.0763, compared to CNY -0.1042 in the previous year[6] - The company reported a net loss of CNY 33,722,179.43 for the period[22] - Operating profit for the current period was -¥51,514,796.09, an improvement from -¥59,780,656.09 in the previous period[24] - Net profit for the current period was -¥49,269,048.59, compared to -¥57,365,422.76 in the previous period, showing a reduction in losses[24] - Total comprehensive income for the current period was -¥54,243,469.98, slightly better than -¥58,736,768.21 in the previous period[24] Cash Flow - Cash flow from operating activities was CNY 14,768,876.71, a significant recovery from CNY -58,779,666.82 in the same period last year[6] - The company's operating cash flow for Q1 2015 was CNY 14,768,876.71, a significant improvement compared to a negative cash flow of CNY -58,779,666.82 in the same period last year, marking a turnaround of approximately 125.1%[26] - Total cash inflow from operating activities reached CNY 157,663,733.22, up from CNY 111,325,972.91, representing an increase of about 41.6% year-over-year[26] - Cash outflow from operating activities decreased to CNY 142,894,856.51 from CNY 170,105,639.73, a reduction of approximately 16.0%[26] - The ending cash and cash equivalents balance was CNY 271,477,007.40, compared to CNY 165,894,409.42 at the end of the previous year, showing an increase of about 63.6%[26] - The company’s cash inflow from sales of goods and services was CNY 150,045,600.32, an increase from CNY 107,014,940.85, reflecting a growth of about 40.2% year-over-year[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,192,177,031.08, a decrease of 2.81% compared to the end of the previous year[6] - Total liabilities decreased from CNY 787,367,729.62 to CNY 778,260,363.85, a reduction of approximately 1.4%[20] - Current liabilities decreased from CNY 360,345,440.49 to CNY 313,194,908.08, a decline of about 13.1%[20] - Total assets decreased from CNY 2,392,290,375.69 to CNY 2,338,599,631.99, a decline of approximately 2.2%[22] - Total equity decreased from CNY 1,659,221,552.26 to CNY 1,613,114,325.24, a reduction of about 2.8%[22] Investments and Expenses - Operating costs increased by 33.54% compared to the same period last year, driven by increased sales revenue[14] - Sales expenses increased by 196.06% compared to the beginning of the period, primarily due to higher transportation costs[14] - Investment activities resulted in a net cash outflow increase of 98.15 million compared to the same period last year, due to increased cash payments for securities and financial product investments[15] - The company reported a significant increase in prepayments to ¥24,021,685.58 from ¥7,365,244.06, which is an increase of approximately 226.5%[19] - Investment income showed a loss of -¥10,071,883.48, worsening from -¥4,591,585.55 in the previous period[24] Shareholder Information - The total number of shareholders at the end of the reporting period was 50,614[10] - The largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., held 96,417,436 shares, accounting for 14.94% of total shares[10] - The company holds a 14.72% stake in Xinghuo Technology, with commitments to not seek control over the board of directors[18] - The company is actively managing its shareholding structure to avoid exceeding the control threshold established during the non-public offering[18]

Financial Performance - In 2014, the company's operating revenue was CNY 871,491,716.87, a decrease of 3.47% compared to CNY 902,804,493.62 in 2013[23]. - The net loss attributable to shareholders was CNY -360,800,573.32, representing a significant decline of 1,883.04% from a profit of CNY 20,235,135.45 in the previous year[23]. - Total assets decreased by 13.37% to CNY 2,255,527,866.83 from CNY 2,603,736,039.60 in 2013[23]. - The net cash flow from operating activities was CNY -20,224,407.20, indicating continued financial challenges[23]. - The weighted average return on equity decreased to -27.86%, down 29.21 percentage points from 1.35% in 2013[24]. - The company reported total revenue of 871.49 million yuan in 2014, a decrease of 3.47% compared to 902.80 million yuan in 2013[30]. - The net profit attributable to shareholders was -360 million yuan, reflecting a significant decline from the previous year[30]. - The company reported a net loss of CNY 108,913,834.93, compared to a profit of CNY 251,886,738.39 in the previous period[155]. - The comprehensive income for the period showed a total loss of CNY 349,268,321.57, indicating a significant decrease compared to the previous period[167]. Revenue and Sales - The company achieved a sales revenue of 373 million yuan from biopharmaceuticals, an increase of 8.76% year-on-year[30]. - The sales revenue from feed additives reached 83.99 million yuan, marking a substantial increase of 68.75% compared to the previous year[30]. - Revenue from the manufacturing sector was 86,633.23 million RMB, with a gross margin of 7.11%, reflecting a decrease of 0.35 percentage points compared to the previous year[49]. - Biochemical products generated revenue of 37,302.29 million RMB, with a gross margin of 19.95%, down by 5.49 percentage points year-on-year[50]. - Domestic sales revenue was 665,436,194.52 RMB, showing a decline of 2.48% compared to the previous year, while export sales decreased by 7.16% to 200,896,083.87 RMB[52]. Costs and Expenses - Total manufacturing costs decreased by 1.97% to 89,299.26 million compared to the previous year[37]. - Raw material costs for biochemical drugs increased by 14.59% to 26,180.98 million, accounting for 67.94% of total costs[37]. - Energy costs for food additives rose by 32.34% to 10,316.41 million, representing 24.36% of total costs[37]. - Sales expenses increased by 4.52% to 2,861.98 million due to higher promotional efforts[39]. - Financial expenses decreased by 26.34% to 4,864.38 million as a result of reduced interest payments[39]. Investments and Financing - The company successfully completed a private placement of 95 million shares, raising funds to enhance its competitive advantage during industry downturns[29]. - The net cash flow from investment activities was 197.90 million yuan, a significant increase from 4.40 million yuan in the previous year[32]. - The company raised funds by issuing 95 million shares to improve its financial condition and enhance its competitive edge during industry downturns[47]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 19,896.54 million RMB, accounting for 13.55% of the company's net assets[79]. Subsidiaries and Market Position - The company has a total of 6 subsidiaries, all of which reported net losses in 2014, with the largest loss being -13,137.52 million RMB from Zhaodong Company[63]. - The company holds 100% equity in its subsidiaries, indicating full control over their operations and financial performance[62]. - The company is focusing on expanding its market presence and improving product quality to adapt to increasing competition in the food additive sector[67]. - The biotechnology and generic drug industries are expected to drive growth in the global active pharmaceutical ingredient market, with China being a major beneficiary[66]. Risk Management and Future Plans - The company emphasizes the importance of risk awareness regarding future plans and business strategies[4]. - The company plans to leverage its improved capital structure for future growth opportunities through organic growth and acquisitions[47]. - The company aims to achieve a fourfold increase in sales during the "12th Five-Year Plan" period, focusing on high-value product innovation in the biopharmaceutical and biofood sectors[68]. - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[162]. Corporate Governance and Compliance - The audit report for the year was issued by Da Hua Certified Public Accountants, confirming the accuracy of the financial statements[5]. - The company has implemented a series of internal control systems to protect investor interests and ensure compliance with regulations[135]. - The company maintained effective internal control over financial reporting as of December 31, 2014, according to the audit report by DaHua Accounting Firm[147]. - The company completed the election of a new board of directors and supervisory board in June 2014, ensuring compliance with corporate governance standards[131]. Shareholder Information - The company issued 95,000,000 new shares, increasing total shares from 550,393,465 to 645,393,465, representing a 17.3% increase in total shares outstanding[98]. - The number of shareholders increased from 50,614 to 51,647, showing a growth of approximately 2.0% in shareholder base[101]. - The company has not proposed a cash dividend distribution plan despite having positive undistributed profits, indicating a focus on reinvestment[74]. - The company confirmed that it holds a 14.72% stake in Xinghuo Technology after the completion of the private placement[83].

Financial Performance - Operating revenue for the first nine months was CNY 594,570,716.52, a decrease of 12.29% year-on-year[6]. - Net profit attributable to shareholders was a loss of CNY 224,083,621.03, compared to a loss of CNY 41,343,700.69 in the same period last year[6]. - The weighted average return on net assets decreased by 13.65 percentage points to -16.46%[6]. - Basic and diluted earnings per share were both CNY -0.4071, compared to CNY -0.0751 in the same period last year[6]. - The company reported a significant drop in undistributed profits from CNY 251,260,920.78 to CNY 27,177,299.75, a decline of about 89.2%[27]. - The net profit for the period was a loss of RMB 74,780,592.63, compared to a profit of RMB 21,413,188.90 in the same period last year, reflecting a significant decline[33]. - The company reported an operating loss of RMB 73,056,482.29 for the period, worsening from a loss of RMB 8,468,187.73 in the previous year[33]. - Investment income for the period was a loss of RMB 16,193,047.25, contrasting with a gain of RMB 52,234,198.89 in the same period last year[33]. - The total comprehensive loss for the period was RMB 73,803,092.63, compared to a comprehensive income of RMB 31,245,209.90 in the previous year[33]. Asset and Liability Changes - Total assets decreased by 15.74% to CNY 2,193,804,609.16 compared to the end of the previous year[6]. - Net assets attributable to shareholders decreased by 14.79% to CNY 1,254,911,679.10 compared to the end of the previous year[6]. - Current liabilities increased to CNY 502,735,013.91 from CNY 414,667,139.64, representing a rise of about 21.2%[27]. - Total liabilities decreased from CNY 1,138,323,901.57 to CNY 946,228,458.26, a reduction of approximately 16.8%[27]. - Shareholders' equity decreased from CNY 1,465,412,138.03 to CNY 1,247,576,150.90, a decline of about 14.9%[27]. - Non-current assets decreased from CNY 1,634,985,479.22 to CNY 1,468,432,296.81, a decline of about 10.2%[26]. Cash Flow Analysis - The company reported a net cash flow from operating activities of CNY -60,563,176.50 for the first nine months[6]. - Net cash flow from operating activities decreased by ¥28,753,345.88 to -¥60,563,176.50 due to reduced cash received from sales[12]. - The company’s cash outflow for operating activities was CNY 499.91 million, up from CNY 412.04 million in the previous year, indicating increased operational costs[42]. - Net cash flow from financing activities was -CNY 155.40 million, compared to a positive CNY 42.06 million in the same period last year, reflecting increased debt repayments[40]. - Cash and cash equivalents at the end of the reporting period stood at CNY 184.07 million, slightly down from CNY 166.46 million year-over-year[40]. Shareholder Information - The total number of shareholders was 53,507 at the end of the reporting period[9]. - The largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., held 17.5% of the shares[9]. Investment and Financing Activities - The company plans to issue new shares to repay debts and supplement working capital, which has been approved by the China Securities Regulatory Commission[12]. - The company received government subsidies amounting to CNY 1,253,130.80 during the reporting period[8]. - The company received CNY 316.26 million from investment recoveries, a substantial increase from CNY 154.48 million in the previous year[39]. - The company’s net cash flow from investment activities was CNY 205.59 million, a significant increase from CNY 59.71 million in the previous year[42]. Accounting and Policy Changes - The accounting policy change regarding long-term equity investments did not affect the total assets, liabilities, net assets, or net profit for the year 2013[18]. - The company confirmed that the changes in accounting policies only affected specific line items in the financial statements without altering the overall financial position[23]. - The new accounting standards require adjustments to the book value of long-term equity investments based on changes in the investee's equity, which will be reflected in the owner's equity[21].

Financial Performance - The company's operating revenue for the first half of 2014 was RMB 380.91 million, a decrease of 18.37% compared to RMB 466.61 million in the same period last year[13]. - The net profit attributable to shareholders for the first half of 2014 was a loss of RMB 149.31 million, compared to a loss of RMB 52.11 million in the same period last year[13]. - The basic earnings per share for the first half of 2014 was -0.2713 yuan, compared to -0.0947 yuan in the same period last year[13]. - The weighted average return on net assets decreased to -10.68%, down 7.14 percentage points from -3.54% in the same period last year[13]. - The net profit attributable to shareholders was -¥149,307,124.93, primarily due to intense market competition and a significant drop in non-operating income, which decreased by 97.3% compared to the previous year[15]. - The net profit for the first half of 2014 was CNY 149,317,347.71, compared to a net loss of CNY 62,833,066.94 in the previous year, representing a significant increase in losses[64]. - The net profit for the current period is a loss of RMB 9,666,376.79, contributing to the overall decrease in owner's equity[78]. Revenue and Sales - The biochemical drug business revenue increased by 26.59% year-on-year, despite a decline in revenue from food and feed additives[14]. - The company's main business revenue decreased by 18.59%, mainly due to declines in food and feed additive product revenues and subsidiary export trade income[18]. - Domestic sales revenue was ¥283,203,021.16, down 11.05% year-on-year, while export sales revenue fell by 34.89% to ¥95,631,683.64[21]. - Cash received from sales of goods and services was 231,657,990.19 RMB, down from 386,572,575.26 RMB, highlighting a decrease in sales revenue[68]. Cost Management - Operating costs decreased by 25.44% to ¥334,786,183.32, in line with the reduction in revenue[16]. - Sales expenses decreased by 16.60%, management expenses decreased by 19.49%, and financial expenses decreased by 34.47% during the reporting period[14]. - The company paid 178,967,456.48 RMB for goods and services, a decrease from 318,310,152.09 RMB, suggesting cost control measures[68]. Assets and Liabilities - The company's net assets attributable to shareholders decreased by 9.78% to RMB 1.33 billion from RMB 1.47 billion at the end of the previous year[13]. - Total assets decreased by 2.62% to RMB 2.54 billion from RMB 2.60 billion at the end of the previous year[13]. - The total liabilities rose to CNY 1,145,580,511.15, compared to CNY 1,042,241,923.25 at the beginning of the year, reflecting increased financial obligations[62]. - The total current liabilities increased to RMB 508,985,685.63 from RMB 414,667,139.64, reflecting an increase of approximately 23%[58]. Cash Flow - The net cash flow from operating activities was -72,285,714.94 RMB, compared to -42,476,835.74 RMB in the previous period, indicating a decline in operational cash flow[68]. - The net cash flow from financing activities increased to 137,958,586.67 RMB from 100,286,952.24 RMB, demonstrating improved capital management[69]. - Cash inflow from investment activities totaled 325,447,142.23 RMB, significantly up from 136,353,757.92 RMB in the prior period, reflecting a strong recovery in investment returns[69]. Corporate Governance - The company has continuously improved its corporate governance structure in accordance with relevant laws and regulations, ensuring compliance with the requirements set by the China Securities Regulatory Commission[41]. - The company did not receive any penalties or administrative sanctions from the China Securities Regulatory Commission during the reporting period[40]. - The company’s governance practices align with the standards set by the China Securities Regulatory Commission, with no significant discrepancies noted[41]. Strategic Initiatives - The company established a reform leadership group to enhance economic efficiency and promote innovation in various aspects[14]. - The company emphasized strengthening internal management and cost control to improve efficiency and effectiveness[14]. - The company is currently in a period of industrial transformation and upgrading, with ongoing efforts to adjust its industrial layout and product structure[15]. Shareholder Information - As of the end of the reporting period, the total number of shareholders was 58,982, with the largest shareholder, Guangdong Guangxin Holdings Group Co., Ltd., holding 17.52% of shares[50]. - The top ten shareholders include various entities, with the second-largest being the Zhaoqing Municipal Government State-owned Assets Supervision and Administration Commission, holding 2.73% of shares[50]. Research and Development - Research and development expenses were reduced by 35.92% to ¥13,496,876.09, reflecting a decrease in phase investments[17]. - The company’s research expenditure for the current period amounts to CNY 13,496,876.09, while development expenditure stands at CNY 5,280,000.00[196]. Inventory and Receivables - The ending balance of inventory is 322,877,997.18, down from 374,636,823.17 at the beginning of the period, representing a decrease of approximately 13.8%[178]. - The accounts receivable from non-related parties are primarily within one year, with the largest single amount being ¥27,353,284.69[164]. - The provision for bad debts for other receivables is 4.70%, with a total balance of ¥89,818,056.60[171]. Impairment and Valuation - The company reported a significant impairment loss for available-for-sale financial assets when their fair value dropped below the initial investment cost by over 50% or remained low for more than 12 months[102]. - The company recognizes impairment losses for receivables based on expected future cash flows, ensuring a conservative approach to financial reporting[105]. Future Outlook - The company plans to focus on improving operational efficiency and exploring new market opportunities to enhance future performance[64]. - The company’s future outlook remains uncertain due to the significant net loss and decrease in equity[74].