Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,285,845,716.84, representing a 5.17% increase compared to ¥1,222,683,010.86 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥92,970,783.06, a 29.04% increase from ¥72,050,806.28 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥86,113,971.37, up 26.08% from ¥68,303,521.02 in the same period last year[22]. - The basic earnings per share for the first half of 2020 were ¥0.2905, a 29.00% increase from ¥0.2252 in the same period last year[22]. - The diluted earnings per share were also ¥0.2905, reflecting the same percentage increase of 29.00%[22]. - The company achieved a revenue of 1.29 billion RMB, representing a year-on-year growth of 5.17%[55]. - The net profit attributable to shareholders reached 93 million RMB, with a year-on-year increase of 29.04%[55]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 86 million RMB, up 26.08% year-on-year[55]. - The company reported a net profit of RMB 0.36 million from Shanghai Kaixin Biotechnology Co., Ltd., which is also fully owned[64]. - The total comprehensive income for the first half of 2020 was ¥84,143,941.86, compared to ¥48,761,833.74 in the first half of 2019, showing an increase of approximately 72.5%[140]. Cash Flow and Assets - The net cash flow from operating activities decreased by 62.87%, amounting to ¥62,522,346.01 compared to ¥168,375,609.31 in the previous year[22]. - The total assets at the end of the reporting period were ¥2,683,760,905.90, a 2.07% increase from ¥2,629,345,445.78 at the end of the previous year[22]. - The total current assets as of June 30, 2020, amount to 2,003,905,253.55 RMB, an increase from 1,961,844,839.58 RMB at the end of 2019[125]. - Cash and cash equivalents are reported at 816,145,031.84 RMB, compared to 801,682,121.85 RMB at the end of 2019[125]. - The company’s cash and cash equivalents at the end of the period totaled ¥237,463,826.36, down from ¥334,489,031.12 at the end of the previous year[143]. - The company reported a decrease in cash flow from operating activities, with cash inflows of CNY 364,887,154.55 compared to CNY 429,425,984.60 in the first half of 2019[146]. Liabilities and Equity - The total liabilities reached CNY 340,696,811.89, a marginal increase from CNY 337,115,789.51, representing a growth of about 0.84%[127]. - The total liabilities increased to CNY 157,607,038.99 from CNY 117,100,133.97, reflecting a significant rise of 34.54%[134]. - Shareholders' equity rose to CNY 2,343,064,094.01, compared to CNY 2,292,229,656.27, marking an increase of approximately 2.22%[127]. - The total equity attributable to shareholders of the parent company was CNY 2,105,109,530.17 at the beginning of the year[148]. - The total owner's equity at the end of the reporting period was CNY 2,203,792,869.87, which includes CNY 320,000,000.00 in paid-in capital[154]. Research and Development - Research and development expenses decreased by 22.66% to 15.41 million RMB[58]. - The company has obtained a total of 44 domestic invention patents and 9 utility model patents, enhancing its competitive edge in the industry[49]. - The company has developed over 20,000 fragrance formulas, which contribute to its competitive edge in the market[70]. Business Operations - The main business includes the R&D, manufacturing, and sales of flavors, fragrances, and food ingredients, with a focus on synthetic and natural flavors[28]. - The company operates under a "sales-driven production" model, ensuring timely and quality fulfillment of sales orders[29]. - The company has established a strategic partnership with global leading enterprises for raw material procurement, enhancing cost control[36]. - The company has extended its food ingredient business upstream, contributing to its growth and market expansion[41]. - The company has a robust quality assurance system, ensuring stable product quality and customer trust[45]. Environmental Compliance - The company has implemented a wastewater treatment system with a capacity of 300 tons/day and a sludge dewatering device[92]. - The company achieved a 99.9% removal rate of organic compounds through its waste gas treatment system[92]. - The company reported no exceedance of pollutant discharge limits for major pollutants such as COD, ammonia nitrogen, and nitrogen oxides[91]. - The company has established an emergency management plan for environmental incidents, registered with the environmental protection bureau[93]. - The company has a standardized hazardous waste temporary storage facility and has signed hazardous waste disposal agreements[93]. Corporate Governance - The company did not have any profit distribution plan or capital reserve transfer plan during the reporting period[4]. - The company held its 2019 annual general meeting on May 15, 2020, with 10 shareholders representing 133,679,300 shares, accounting for 41.77% of the total shares[79]. - The integrity status of the company and its controlling shareholders remains good, with no unfulfilled court judgments or significant debts due[86]. - The company has committed to not transferring shares held prior to the public offering during the lock-up period, and will follow regulations for any future share reductions[84]. Risks and Challenges - The company faces risks related to food safety and quality, which could impact sales if significant issues arise in the industry[65]. - The company relies on a concentrated supplier base for food ingredients, with over 50% of purchases from the largest supplier, posing a risk if that supplier faces difficulties[73]. - The company is exposed to price volatility in raw materials, which can affect profitability due to the customized nature of its products[75]. - The company has implemented measures to retain technical personnel, but faces risks related to potential turnover in this critical area[72].

603020 爱普股份 爱普香料集团股份有限公司 2020 年第一季度报告 公司代码：603020 公司简称：爱普股份 爱普香料集团股份有限公司 2020 年第一季度报告 第 1 页共 27 页 | 一、重要提示 | | 3 | | --- | --- | --- | | 二、公司基本情况 | | 3 | | 三、重要事项 | | 5 | | 四、附录 | | 7 | 603020 爱普股份 爱普香料集团股份有限公司 2020 年第一季度报告 一、 重要提示 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 第 3 页共 27 页 单位：元 币种：人民币 本报告期末 上年度末 本报告期末 比上年度末增减(%) 总资产 2,652,292,177.19 2,629,345,445.78 0.87 归属于上市公司股东的净资产 2,133,904,083.65 2,105,109,530.17 1.37 年初至报告期末 上年初至上年报告期末 比上年同期增减(%) 经营活动产生的现金流量净额 1,664,720.96 8,793,643.88 -81.07 年初至报告期末 上年初至上年报 ...

Financial Performance - The company's operating revenue for 2019 was approximately ¥2.47 billion, a decrease of 1.00% compared to ¥2.50 billion in 2018[24]. - Net profit attributable to shareholders increased by 37.80% to approximately ¥151.79 million in 2019 from ¥110.16 million in 2018[24]. - Basic earnings per share rose by 37.80% to ¥0.4743 in 2019, compared to ¥0.3442 in 2018[25]. - The weighted average return on equity increased by 1.72 percentage points to 7.43% in 2019 from 5.71% in 2018[26]. - The total assets of the company reached approximately ¥2.63 billion at the end of 2019, reflecting a 9.78% increase from ¥2.40 billion at the end of 2018[24]. - The net cash flow from operating activities was approximately ¥214.37 million in 2019, a significant recovery from a negative cash flow of ¥36.56 million in 2018[24]. - Total revenue for the year reached approximately 3.87 billion RMB, with a year-on-year growth of 31.96%[86]. - The gross profit margin for the main business was 20.02%, reflecting a decrease of 2.87% year-on-year[88]. Dividend Policy - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders, totaling 48,000,000 RMB (including tax) based on a total share capital of 320,000,000 shares as of December 31, 2019[7]. - The company does not plan to increase capital through capital reserves or issue bonus shares, focusing solely on cash dividends[7]. - In 2019, the company distributed cash dividends amounting to 48 million RMB, representing 31.62% of the net profit attributable to shareholders[117]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be paid as cash dividends when conditions are met, with higher percentages for mature stages without major capital expenditures[116]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits, which requires disclosure of reasons and future plans[118]. Audit and Compliance - The company has received a standard unqualified audit report from its accounting firm, affirming the accuracy of its financial statements[6]. - The company reported no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[9]. - The company has committed to maintaining transparency and accuracy in its financial reporting, as stated by its management[4]. - There were no major litigation or arbitration matters during the reporting period[131]. - The company and its controlling shareholders maintained a good integrity status, with no significant debts unpaid[131]. Operational Strategy - The company has outlined potential risks in its operations, advising investors to pay attention to these risks as detailed in the report[9]. - The company has not disclosed any significant changes in its business strategy or market expansion plans in the report[9]. - The company’s main business includes the research, development, manufacturing, and sales of flavors, fragrances, and food ingredients, with a focus on high-quality products and technology solutions[34]. - The company employs a "sales-driven production" model, ensuring that manufacturing aligns closely with customer orders[35]. - The company has established a strict supplier management system to ensure the quality of raw materials used in production[38]. Market and Competitive Landscape - The domestic flavor and fragrance market is in a growth phase, with increasing competition and market saturation[44]. - The company has a strong competitive advantage in the food ingredient manufacturing and distribution sector, supported by a comprehensive sales network[53]. - International flavor and fragrance companies are increasing investments in China, establishing world-class R&D centers and production facilities, intensifying competition in the domestic market[95]. - Domestic companies are underinvesting in innovation and technology, with only a few having significant capabilities in detection and analysis[96]. Research and Development - The company submitted 6 domestic invention patent applications and 10 utility model patent applications in 2019, totaling 46 invention patents by the end of the reporting period[55]. - Research and development expenses amounted to approximately ¥33.02 million, representing 1.33% of total revenue, with 124 R&D personnel making up 9.85% of the total workforce[73]. - The company plans to invest 200 million RMB in R&D for new technologies aimed at improving production efficiency and product quality over the next three years[190]. Environmental Compliance - The company has achieved ISO14001:2015 certification, but stricter future regulations may impact operations[105]. - The company has implemented a comprehensive environmental monitoring plan, including regular third-party assessments of wastewater and air emissions[157]. - The company has a wastewater treatment capacity of 300 tons per day, ensuring effective management of wastewater and compliance with environmental regulations[150]. - The company reported a total COD emission of 4.1 tons, which is below the regulatory limit of 500 mg/l, indicating no exceedance of pollution standards[149]. Shareholder and Governance - The controlling shareholder, Wei Zhonghao, has pledged not to reduce his shareholding below the issue price during the first two years post-listing[119]. - The company has established a commitment to avoid competition with its controlling shareholder, ensuring no direct or indirect involvement in competing businesses[121]. - The company has implemented measures to ensure compliance with share transfer regulations among its directors and senior management[121]. - The total number of ordinary shareholders at the end of the reporting period was 21,246, down from 23,721 the previous month[173]. Future Outlook - The company provided a positive outlook for 2020, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[191]. - New product development efforts included the introduction of three innovative flavor products, which are expected to contribute an additional 100 million RMB in revenue in 2020[192]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2022[193].

Financial Performance - Net profit attributable to shareholders increased by 26.84% to CNY 122,276,791.24 for the third quarter[7] - Basic earnings per share rose by 26.82% to CNY 0.3821[7] - The company’s weighted average return on equity improved by 1.02 percentage points to 6.01%[7] - The company reported a significant increase of 1,190.19% in deferred income to CNY 12,911,182.92, primarily from government subsidies received[12] - The net profit for Q3 2019 reached ¥90.20 million, representing an increase of 56.83% from ¥57.49 million in Q3 2018[29] - The total comprehensive income attributable to the parent company for Q3 2019 was ¥51.57 million, compared to ¥42.33 million in Q3 2018, marking an increase of 21.88%[28] Revenue and Costs - Operating revenue for the first nine months was CNY 1,868,488,508.98, a slight decrease of 0.05% compared to the same period last year[6] - Total operating revenue for Q3 2019 reached ¥645,805,498.12, a slight increase from ¥633,361,793.34 in Q3 2018, representing a growth of approximately 1.1%[24] - Total operating costs for Q3 2019 were ¥581,468,526.40, down from ¥584,458,233.93 in Q3 2018, indicating a decrease of about 0.2%[24] - The company reported a total revenue from sales of goods and services of ¥2,097,033,328.26 for the first three quarters of 2019, slightly down from ¥2,102,204,237.98 in 2018[31] Assets and Liabilities - Total assets increased by 5.14% to CNY 2,518,229,849.54 compared to the end of the previous year[6] - Total liabilities increased to CNY 256,112,670.29 from CNY 236,202,509.54, marking an increase of about 8.43%[18] - Current assets totaled CNY 1,865,074,821.40, up from CNY 1,795,061,350.05, indicating an increase of about 3.89%[16] - The total assets of the company as of Q3 2019 were ¥2,145,869,943.65, compared to ¥2,007,437,347.92 in the previous year, showing a growth of approximately 6.9%[23] - The total liabilities increased to ¥134,732,721.63 in Q3 2019 from ¥99,917,498.46 in Q3 2018, representing a significant rise of about 35%[23] Cash Flow - The net cash flow from operating activities improved significantly to CNY 246,588,613.75, compared to a negative cash flow of CNY -67,209,900.68 in the previous year[6] - The net cash flow from operating activities for the first three quarters of 2019 was ¥246,588,613.75, a significant improvement compared to a net outflow of ¥67,209,900.68 in the same period of 2018[31] - Total cash inflow from operating activities increased to ¥2,140,592,170.45 in 2019, slightly up from ¥2,138,457,977.91 in 2018[31] - Cash outflow from operating activities decreased to ¥1,894,003,556.70 in 2019 from ¥2,205,667,878.59 in 2018, indicating improved cost management[31] Research and Development - Research and development expenses increased by 39.74% to CNY 28,969,416.55 due to the inclusion of expenses from a newly consolidated subsidiary[12] - Research and development expenses for Q3 2019 amounted to ¥9,041,218.65, up from ¥6,714,394.02 in Q3 2018, marking an increase of about 34.5%[24] - Research and development expenses for Q3 2019 were ¥5.96 million, an increase of 20.67% compared to ¥4.94 million in Q3 2018[28] Shareholder Information - The number of shareholders reached 21,377 by the end of the reporting period[9] - Shareholders' equity rose to CNY 2,262,117,179.25 from CNY 2,158,815,012.57, reflecting an increase of approximately 4.78%[18] Financial Standards and Compliance - The company implemented new financial instrument standards starting January 1, 2019, affecting the classification of certain financial assets[40] - The reclassification of certain financial products from "available-for-sale" to "measured at fair value" was noted, impacting the financial reporting structure[41] - The company continues to adapt to new accounting standards, ensuring compliance and accuracy in financial reporting[48]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,222,683,010.86, a decrease of 1.08% compared to CNY 1,236,007,765.07 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was CNY 72,050,806.28, representing an increase of 32.37% from CNY 54,432,355.15 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 68,303,521.02, up 17.00% from CNY 58,381,245.59 in the same period last year[21]. - The net cash flow from operating activities was CNY 168,375,609.31, compared to a negative cash flow of CNY -86,821,121.25 in the previous year[21]. - The total assets at the end of the reporting period were CNY 2,454,845,471.55, an increase of 2.50% from CNY 2,395,017,522.11 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were CNY 2,024,049,091.59, reflecting a growth of 1.87% from CNY 1,986,892,121.68 at the end of the previous year[21]. - The basic earnings per share for the first half of 2019 was CNY 0.2252, a 32.39% increase from CNY 0.1701 in the same period last year[22]. - The weighted average return on net assets increased to 3.57%, up 0.74 percentage points from 2.83% in the previous year[22]. Business Model and Operations - The company’s main business includes the research, development, manufacturing, and sales of flavors, fragrances, and food ingredients, with a focus on maintaining long-term strategic partnerships with clients[25]. - The business model is based on "sales-driven production," aligning manufacturing and procurement with sales orders to ensure timely and quality fulfillment[26]. - The company adopts a "distribution + direct sales" model, focusing on direct sales for major clients and using distributors for smaller clients, with a strong emphasis on personalized products[27]. - The manufacturing department utilizes a "flexible manufacturing model" to quickly adjust production tasks based on order requirements and environmental changes[28]. - The company has established a strict supplier management system, ensuring raw material quality through a "qualified verification before storage" principle[29]. - The food ingredient business operates on a "sales-driven procurement and production" model, providing one-stop services for downstream clients[30]. Market Position and Innovation - The company has become a leading player in the domestic flavor and fragrance industry, consistently ranking among the top enterprises in the light industry sector since 2011[38]. - As of June 30, 2019, the company holds 45 patents, including 43 domestic invention patents, which bolster its competitive edge in the industry[44]. - The company has established strategic partnerships with globally recognized enterprises for raw material procurement, locking in prices to mitigate cost fluctuations[33]. - The domestic flavor and fragrance market is in a growth phase, with a compound annual growth rate of 3% from 2015 to 2017, while the food manufacturing industry saw a 3.22% growth rate during the same period[36]. - The company maintains a strong focus on technological innovation, management innovation, and system innovation to enhance its core competitiveness[34]. Financial Strategy and Risks - The company reported a substantial increase in trading financial assets, rising by 2,288.50% to CNY 191 million[55]. - The company reduced its accounts receivable by 84.03%, resulting in a balance of CNY 1.13 million[55]. - Prepayments decreased by 38.78% to CNY 77.61 million, indicating a reduction in inventory purchases[55]. - Deferred income increased by 1,195.31% to CNY 12.96 million, primarily due to government subsidies received[55]. - The company faces risks related to food safety and quality, which could impact future sales and market trust[62]. - The company is exposed to high supplier concentration risk in its food ingredient business, with nearly 50% of purchases from its largest supplier[71]. - The fluctuation in raw material prices for fragrance and flavor products poses a risk to the company's profitability[72]. Environmental Management - The company has implemented strict environmental management practices and holds ISO14001:2015 certification, but may face stricter regulations in the future[66]. - The company has a wastewater treatment system with a capacity of 300 tons per day and a sludge dewatering device[92]. - The company achieved a VOCs removal rate of over 85% through its dual hydrogen peroxide spraying and activated carbon adsorption system[93]. - The company reported zero exceedances in pollutant emissions for COD, ammonia nitrogen, smoke, nitrogen oxides, and sulfur dioxide[91]. - The company has established a standardized hazardous waste temporary storage warehouse and signed disposal agreements with environmental protection companies[92]. - The company has implemented an emergency response plan for environmental incidents, which has been registered with the local environmental protection bureau[96]. Shareholder and Governance - The total number of ordinary shareholders as of the end of the reporting period is 21,969[112]. - The largest shareholder, Wei Zhonghao, holds 113,220,000 shares, representing 35.38% of the total shares[114]. - The company has a lock-up period for shares held by major shareholders, extending automatically if the stock price falls below the issue price within six months of listing[79]. - The company’s board members have committed to not transferring shares during their tenure and for six months after leaving their positions[81]. - The commitments made by the actual controller and shareholders are being strictly adhered to, with no reported failures in compliance[79]. Financial Reporting and Compliance - The financial statements are prepared based on the going concern assumption and the accrual basis of accounting[169]. - The company continues to employ the same accounting firm for the 2019 audit to ensure continuity in financial auditing[86]. - The company has not experienced any non-standard audit reports in the previous year[86]. - The company has not made any significant changes to its accounting firm during the reporting period[86]. - The company has a total of 38 subsidiaries, all of which are consolidated in the financial statements[167][168]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[136]. - The company’s financial performance and future outlook remain stable, with no significant changes anticipated in the near term[76].

Financial Performance - Operating revenue decreased by 1.77% to CNY 615,696,109.07 compared to the same period last year[6] - Net profit attributable to shareholders increased by 11.34% to CNY 29,308,891.84 compared to the same period last year[6] - Total operating revenue for Q1 2019 was CNY 615.70 million, a decrease of 1.75% compared to CNY 626.79 million in Q1 2018[27] - Net profit for Q1 2019 reached CNY 35.55 million, an increase of 16.5% from CNY 30.40 million in Q1 2018[29] - Total comprehensive income for Q1 2019 was CNY 19.40 million, compared to CNY 53.65 million in Q1 2018[34] - Net profit for Q1 2019 was CNY 19.40 million, down 63.8% from CNY 53.65 million in Q1 2018[34] Assets and Liabilities - Total assets increased by 0.95% to CNY 2,417,665,784.12 compared to the end of the previous year[6] - Current assets totaled CNY 1,813,396,038.86 as of March 31, 2019, compared to CNY 1,795,061,350.05 at the end of 2018, reflecting a slight increase of 1.0%[17] - Total liabilities decreased to CNY 220,683,187.89 from CNY 236,202,509.54, a decline of about 6.6%[19] - Total equity rose to CNY 2,196,982,596.23 from CNY 2,158,815,012.57, an increase of approximately 1.8%[19] - Total liabilities amounted to CNY 128.58 million in Q1 2019, compared to CNY 99.92 million in Q1 2018, indicating a rise of 28.8%[24] - The company reported a significant decrease of 34.83% in notes receivable due to the maturity of certain notes during the reporting period[13] Cash Flow - Cash flow from operating activities turned positive with a net amount of CNY 8,793,643.88 compared to a negative CNY 129,995,414.29 in the previous year[6] - Cash flow from operating activities generated CNY 8.79 million, a significant improvement from a negative CNY 129.99 million in Q1 2018[38] - The company experienced a decrease in cash outflow for purchasing goods and services, which was ¥110,774,742.05 in Q1 2019, down from ¥133,571,947.42 in Q1 2018, a reduction of about 17.1%[40] - The total cash outflow from operating activities was ¥177,574,260.04, down from ¥237,713,157.76 in the previous year, indicating a decrease of about 25.3%[40] Research and Development - R&D expenses increased by 31.32% to CNY 11,431,886.12 due to increased investment in R&D by subsidiaries[14] - Research and development expenses increased to CNY 11.43 million in Q1 2019, up 31.4% from CNY 8.71 million in Q1 2018[27] - Research and development expenses increased to CNY 8.25 million, up 5.7% from CNY 7.80 million in Q1 2018[33] Shareholder Information - The number of shareholders reached 21,342 at the end of the reporting period[9] - The largest shareholder, Wei Zhonghao, holds 35.38% of the shares, totaling 113,220,000 shares[9] Financial Ratios - The weighted average return on equity increased by 0.08 percentage points to 1.46%[6] - Basic earnings per share for Q1 2019 were CNY 0.0916, compared to CNY 0.0823 in Q1 2018, reflecting a growth of 11.3%[29] - The gross profit margin for Q1 2019 was approximately 6.83%, compared to 5.99% in Q1 2018[27] Other Financial Information - The company has not reported any significant changes in its commitments or major events during the reporting period[14] - The company has implemented new financial and revenue recognition standards, which may impact future financial reporting and performance metrics[42] - The company has not made any retrospective adjustments to prior period comparative data under the new financial instrument standards[50]

Financial Performance - The company's operating revenue for 2018 was approximately CNY 2.50 billion, representing a year-over-year increase of 7.52% compared to CNY 2.32 billion in 2017[22]. - The net profit attributable to shareholders for 2018 was CNY 110.16 million, a decrease of 23.59% from CNY 144.17 million in 2017[22]. - The basic earnings per share for 2018 was CNY 0.3442, down 23.59% from CNY 0.4505 in 2017[23]. - The company's total assets increased by 8.62% to CNY 2.40 billion at the end of 2018, compared to CNY 2.20 billion at the end of 2017[22]. - The net cash flow from operating activities for 2018 was negative CNY 36.56 million, compared to positive CNY 47.10 million in 2017[22]. - The weighted average return on equity for 2018 was 5.71%, a decrease of 2.03 percentage points from 7.74% in 2017[24]. - The company reported a total of CNY 3.10 million in non-recurring gains and losses for 2018, significantly lower than CNY 11.66 million in 2017[28]. - The gross profit margin decreased by 1.61 percentage points to 17.15% compared to the previous year[89]. - The gross profit margin for the flavor and fragrance segment decreased by 5.61 percentage points to 36.01%[65]. - The company's gross profit margin for the fragrance segment was 40.62%, which decreased by 3.18 percentage points year-on-year[89]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.10 per 10 shares, totaling RMB 35,200,000, based on a total share capital of 320,000,000 shares as of December 31, 2018[4]. - The company has implemented a cash dividend policy, distributing at least 20% of the annual distributable profits as cash dividends, with a minimum of 80% during mature phases without major capital expenditures[121]. - In 2018, the company distributed a cash dividend of 1.10 RMB per 10 shares, amounting to 35.2 million RMB, representing 31.95% of the net profit attributable to shareholders[122]. - The company committed to distributing cash dividends of no less than 20% of the annual distributable profits for the next three years[127]. Corporate Governance - The company has established a commitment to disclose any changes in shareholding by its directors and senior management during their tenure[125]. - The company has established a legal commitment to avoid any competition with its subsidiaries from the controlling shareholder and related enterprises[126]. - The company will ensure equal exercise of shareholder rights and obligations without seeking undue benefits from its controlling position[127]. - The company will take legal responsibility for any losses caused by violations of commitments made by the controlling shareholder[127]. - The company has outlined a plan for potential share repurchases and other recognized methods to stabilize its stock price[127]. - The company has established strict confidentiality measures to protect its core technologies, but faces risks related to the potential leakage of proprietary formulas[112]. - The company has implemented a series of governance rules to ensure compliance and effective operation of the board, supervisory board, and shareholders' meetings[197]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[198]. - The company held 5 board meetings during the reporting period, all in accordance with relevant regulations[199]. Risk Management - The report includes a detailed description of the risks faced by the company, which investors should pay attention to[7]. - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[5]. - The company faces risks related to food safety and quality, which could impact sales if significant issues arise in the industry[106]. - The company is exposed to market competition risks due to the increasing presence of international companies in the domestic flavor and fragrance market[108]. - The company has taken measures to mitigate risks from raw material price fluctuations, but remains vulnerable to changes in macroeconomic conditions and supply-demand dynamics[116]. - The company has a high supplier concentration risk, with over 60% of food ingredient costs attributed to the largest supplier, primarily involving dairy products[114]. - The company has a comprehensive safety management system in place, but acknowledges the possibility of safety incidents due to equipment or operational failures[117]. Research and Development - The company continues to focus on research and development in fragrance and food ingredient technologies, which are central to its competitive advantage[32]. - Research and development expenses rose by 22.01% to CNY 29,629,313.94, accounting for 1.19% of total operating revenue[73]. - The company has established a comprehensive training program for technical talent, including annual recruitment from colleges and specialized training for different levels of staff[194]. - The company has developed a high-quality technical team, but faces risks related to potential loss of key technical personnel, which could hinder innovation and business development[113]. - The company emphasizes the importance of continuous technological advancement to maintain its competitive edge in the flavor and fragrance industry[111]. Market Position and Strategy - The company maintains a business model focused on "sales-driven production" for its fragrance and food ingredient segments, ensuring alignment with customer demand[32]. - The company has established strategic partnerships with globally recognized enterprises for sourcing products and raw materials, enhancing its supply chain resilience[41]. - The company has a strong competitive advantage in the food flavoring and ingredient manufacturing sector, supported by a professional sales team of over 100 personnel[50]. - The company has established a significant presence in the domestic market, with 9.74% of total assets being overseas assets amounting to approximately 233 million RMB[47]. - The company aims to enhance market share by localizing production and replacing imported raw materials, focusing on business expansion in niche markets[103]. - The product structure of flavors and fragrances is being optimized, with fragrance products growing faster than flavor products[101]. - International flavor and fragrance companies are increasing investments in China, establishing world-class R&D centers and production facilities, intensifying competition in the domestic market[100]. Environmental Management - The company has achieved ISO14001:2015 certification for environmental management, but stricter future environmental regulations may impact operations[109]. - The company has a wastewater treatment capacity of 300 tons per day and employs a sludge dewatering system[154]. - The company achieved over 99.9% organic matter removal rate through its low-temperature plasma waste gas treatment system[154]. - The company reported a total COD emission of 5.58 tons, with a discharge concentration of 100 mg/l, well below the standard of 500 mg/l[152]. - Ammonia nitrogen emissions were recorded at 0.39 tons, with a discharge concentration of 7 mg/l, significantly lower than the 45 mg/l standard[152]. - The company effectively managed smoke emissions at 53.46 kg, with a concentration of 1.9 mg/m3, under the 20 mg/m3 limit[152]. - Nitrogen oxides emissions totaled 754.55 kg, with a concentration of 134 mg/m3, below the 150 mg/m3 threshold[152]. - Sulfur dioxide emissions were 1,093.79 kg, with a concentration of 3 mg/m3, far below the 100 mg/m3 limit[152]. - The company has established an emergency response plan for environmental incidents, which was approved and registered with the local environmental authority[156]. Shareholder Information - The largest shareholder, Wei Zhonghao, holds 113,220,000 shares, representing 35.38% of the total shares[168]. - Shanghai Xinyu Investment Management Co., Ltd. is the second largest shareholder with 28,800,000 shares, accounting for 9.00%[168]. - The top three shareholders include Shanghai Yile Industrial Co., Ltd. with 13,320,000 shares, which is 4.16% of the total[169]. - The total number of shares held by the top ten unrestricted shareholders amounts to 166,402,060 shares[169]. - The company does not have any other shareholders holding more than 10% of the shares[175]. - The total remuneration for Wei Zhonghao during the reporting period was not disclosed, but he maintained his shareholding of 113,220,000 shares[180]. - The company has no strategic investors or general legal entities becoming top ten shareholders due to new share placements[170]. - There are no restrictions on share reductions applicable to the company[175]. Legal and Compliance - The company has retained the auditing firm for 11 years, with an audit fee of CNY 900,000 for the year[135]. - There were no major lawsuits or arbitration matters during the reporting period[136]. - The company maintained a good integrity status, with no significant debts or court judgments unmet during the reporting period[136]. - The company has not reported any significant changes in accounting policies or estimates during the reporting period[132]. - The company has not granted any stock incentives to its directors and senior management during the reporting period, indicating a focus on operational performance rather than equity compensation[186]. - The company received a warning from the China Securities Regulatory Commission regarding a short-term trading violation by a director, which was acknowledged as an operational error[189].

603020 爱普股份 爱普香料集团股份有限公司 2018 年第三季度报告 公司代码：603020 公司简称：爱普股份 爱普香料集团股份有限公司 2018 年第三季度报告 1 / 22 | 一、重要提示 | | 3 | | --- | --- | --- | | | 二、公司基本情况 | 3 | | 三、重要事项 | | 5 | | 四、附录 | | 8 | 603020 爱普股份 爱普香料集团股份有限公司 2018 年第三季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 3 / 22 | 归属于上市公司股东 | | 96,401,473.43 | 132,630,819.77 | | | -27.32 | | --- | --- | --- | --- | --- | --- | --- | | 的净利润 | | | | | | | | 归属于上市公司股东 的扣除非经常性损益 | | 94,509,017.61 | 124,189,374.74 | | | -23.90 | | 的净利润 | | | | | | | | 加权平均净资产收益 率（%） | 4.99 | | 7.12 | 减少 ...

Financial Performance - The company's operating revenue for the first half of 2018 was ¥1,236,007,765.07, representing a 3.56% increase compared to ¥1,193,497,836.67 in the same period last year[18]. - The net profit attributable to shareholders decreased by 39.67% to ¥54,432,355.15 from ¥90,226,772.58 in the previous year[18]. - The basic earnings per share dropped by 39.68% to ¥0.1701 from ¥0.2820 in the same period last year[18]. - The weighted average return on net assets decreased by 2.02 percentage points to 2.83% compared to 4.85% in the previous year[18]. - The company achieved a revenue of 1.236 billion RMB, representing a year-on-year growth of 3.56%[50]. - The net profit attributable to shareholders was 54 million RMB, a decrease of 39.67% compared to the previous year[50]. - The gross margin for the first half of 2018 was reported at 35%, a slight increase from 32% in the same period last year, indicating improved operational efficiency[74]. - The company reported a total revenue of 1.5 billion RMB for the first half of 2018, representing a year-on-year growth of 15%[75]. Cash Flow and Assets - The net cash flow from operating activities was negative at -¥86,821,121.25, an improvement from -¥151,987,506.95 in the same period last year[18]. - The total assets at the end of the reporting period were ¥2,203,891,868.79, a slight decrease of 0.05% from ¥2,204,982,772.80 at the end of the previous year[18]. - The total current assets amounted to 1,750,751,793.44 yuan, a slight decrease from 1,773,022,005.64 yuan at the beginning of the period[109]. - Cash and cash equivalents decreased to CNY 741,516,837.67 from CNY 772,329,941.16, indicating a cash outflow during the period[115]. - The ending balance of cash and cash equivalents was CNY 224,874,917.00, down from CNY 287,385,767.46 in the previous period[127]. Business Operations - The main business includes the research, manufacturing, and sales of flavors, fragrances, and food ingredients, with a focus on synthetic and natural flavors[25]. - The company operates under a "sales-driven production" model for its spice and flavor business, ensuring timely and quality fulfillment of sales orders[26]. - The food ingredient business also follows a "sales-driven procurement and production" model, providing one-stop solutions for downstream clients[30]. - The company has established strategic partnerships with global enterprises for sourcing food ingredients, locking in prices to mitigate exchange rate risks[33]. - The company has a strong market position in the domestic spice and flavor industry, recognized as a leading brand in the food flavor sector since 2011[38]. Research and Development - The company has developed 42 patents, including 40 domestic invention patents, enhancing its competitive edge in the industry[44]. - The company has a robust R&D capability, recognized as a national high-tech enterprise, and collaborates with several universities for technology development[44]. - The company has invested 50 million RMB in R&D for innovative fragrance technologies, aiming to improve product quality and customer satisfaction[74]. - The company plans to invest 300 million RMB in R&D for new technologies over the next three years[75]. Market Strategy and Expansion - The sales strategy combines direct sales and distribution, with annual contracts signed with major clients to ensure product quality and delivery[27]. - Market expansion efforts are focused on Southeast Asia, with plans to enter two new countries by the end of 2018, targeting a 10% market share in these regions[74]. - The company is exploring strategic acquisitions to enhance its product portfolio and expand its market presence, with a budget of 200 million RMB allocated for potential acquisitions[74]. - A strategic acquisition of a local flavor company was completed, enhancing the company's product portfolio and expected to add 100 million RMB in annual revenue[75]. Environmental and Sustainability Initiatives - The company is committed to reducing the environmental impact of its manufacturing processes as part of its future development strategy[50]. - The company emphasizes environmental protection and has achieved ISO 14001:2004 certification, but may face challenges from stricter future environmental regulations[61]. - A commitment to sustainability has been made, with a goal to reduce production waste by 15% over the next year[74]. - The company has a wastewater treatment system with a capacity of 300 tons per day and has implemented measures for effective waste management[86]. Shareholder and Governance Matters - The company did not propose any profit distribution or capital reserve conversion plans for the half-year period[72]. - The company commits to distributing cash dividends of no less than 20% of the annual distributable profits for the next three years[77]. - The controlling shareholder guarantees compliance with the company's articles of association and will not seek undue benefits from their position[76]. - The company continues to engage the same auditing firm for the 2018 fiscal year, maintaining a good cooperative relationship since the 2017 annual shareholders' meeting[79]. Risks and Challenges - The company is facing challenges from upstream raw material supply shortages and significant price increases, impacting its fragrance business[50]. - The company faces high supplier concentration risk, with over 60% of its food ingredient costs attributed to Fonterra, indicating vulnerability to supplier-related disruptions[66]. - The company is at risk of technology obsolescence if it fails to keep pace with domestic and international technological advancements in flavor and fragrance production[62]. - The company has a high-quality technical team, but faces risks related to potential talent loss, which could hinder innovation and business development[65].

603020 爱普股份 爱普香料集团股份有限公司 2018 年第一季度报告 公司代码：603020 公司简称：爱普股份 爱普香料集团股份有限公司 2018 年第一季度报告 1 / 20 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 7 | 603020 爱普股份 爱普香料集团股份有限公司 2018 年第一季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人魏中浩、主管会计工作负责人冯林霞及会计机构负责人（会计主管人员）冯林霞 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 | | 本报告期末 | 上年度末 | 本报告期末 | | | --- | --- | --- | --- | --- ...