Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,591,025,651.35, a decrease of 5.99% compared to CNY 1,692,318,094.90 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was CNY 91,305,048.12, down 25.29% from CNY 122,220,288.13 in the previous year[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 77,456,655.77, a decline of 29.6% compared to CNY 110,028,957.47 in the same period last year[16]. - Basic earnings per share for the reporting period (1-6 months) decreased by 37.63% to CNY 0.2382 compared to CNY 0.3819 in the same period last year[17]. - Diluted earnings per share also decreased by 37.63% to CNY 0.2382 from CNY 0.3819 year-on-year[17]. - The weighted average return on equity fell to 2.93%, a decrease of 2.53 percentage points from 5.46% in the same period last year[17]. - The gross profit margin for the first half of 2022 was reported at 40%, showing an improvement from 38% in the same period last year[132]. - The company reported a net loss of CNY 6,547,249.25 in the owner's equity statement for the first half of 2022[199]. Cash Flow and Assets - The cash flow from operating activities was CNY 73,608,823.70, a significant improvement from a negative cash flow of CNY -11,621,056.82 in the previous year[16]. - Accounts receivable decreased by 59.79% to CNY 3,726,106.79, mainly due to the collection of matured receivables[64]. - Fixed assets increased by 55.79% to CNY 395,907,889.38, attributed to the completion of construction projects[64]. - The total assets at the end of the reporting period were CNY 3,929,655,036.16, an increase of 2.16% from CNY 3,846,474,199.48 at the end of the previous year[16]. - The company's total current assets decreased from 2,461,582,061.61 RMB to 2,444,237,195.57 RMB, a decline of approximately 0.7%[172]. - The company's cash and cash equivalents decreased from 247,388,747.82 RMB to 215,435,964.39 RMB, a reduction of approximately 12.9%[172]. Research and Development - The company has a strong R&D capability, holding 50 invention patents and 23 utility model patents, which supports its competitive edge in producing high-concentration water-soluble citrus flavorings[40]. - R&D expenses decreased due to reduced experimental activities impacted by the pandemic[62]. - Investment in R&D increased by 30% year-on-year, focusing on the development of new flavor technologies and product lines[136]. - The company plans to invest 100 million RMB in research and development for new technologies in flavor production over the next two years[132]. Market Position and Strategy - The company is a leading producer of food flavorings and has a significant competitive advantage in the domestic flavor and fragrance industry[36]. - The company is focusing on expanding its industrial chocolate and jam production capacity, as well as developing new product lines to meet market diversification trends[58]. - The company has established a "distribution + direct sales" model, enhancing product reach and customer service through dedicated sales teams and partnerships with distributors[32]. - The domestic flavor and fragrance market is in a growth phase, with increasing competition and market saturation, while the global market is in a mature stage dominated by a few large players[34]. Environmental and Safety Measures - The company has established a strict food safety control system, but risks remain due to reliance on third-party cold chain logistics and storage, which could lead to potential food safety issues affecting brand image and sales[73]. - The company has implemented strict quality control measures, certified by ISO9001 and ISO22000, ensuring product safety and quality throughout the supply chain[45]. - The company has established an environmental management system and is committed to environmental protection, but stricter future regulations could impact production operations[85]. - The company has established a wastewater treatment capacity of 300 tons per day and has implemented a rainwater and sewage separation system[97]. Shareholder and Governance - The total number of voting shares held by shareholders present at the meeting was 143,893,466 shares, accounting for 37.5468% of the total voting shares[92]. - The company plans to repurchase shares worth between RMB 50 million and RMB 100 million to boost investor confidence and align interests among shareholders, the company, and employees[59]. - The controlling shareholder has issued a commitment letter to avoid any business competition with the company and its subsidiaries, ensuring no direct or indirect competition in the future[130]. - The company has committed to maintaining high standards of corporate governance and transparency, with no violations reported during the review period[136]. Risks and Challenges - The ongoing COVID-19 pandemic poses risks to the company's operational performance, particularly in international trade and supply chain logistics[72]. - The company faces risks related to inventory impairment due to low-margin products and potential price declines, which could adversely impact operational performance[80]. - There is a risk of goodwill impairment if macroeconomic fluctuations or intensified market competition lead to underperformance against expectations[81]. - The company is exposed to foreign exchange risks due to its significant food ingredient trading operations, which are primarily conducted in foreign currencies[82].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 726,070,912.80, a decrease of 7.71% compared to the same period last year[5]. - The net profit attributable to shareholders was CNY 39,478,087.99, down 16.38% year-on-year[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 27,984,382.24, a decline of 31.35% compared to the previous year[5]. - Basic and diluted earnings per share were both CNY 0.1030, down 16.39% year-on-year[6]. - Total operating revenue for Q1 2023 was 673,544,069.10 RMB, a decrease of 6.4% compared to 719,479,731.67 RMB in Q1 2022[18]. - Net profit for Q1 2023 was 50,998,038.11 RMB, down 13.8% from 58,819,773.94 RMB in Q1 2022[18]. - Operating profit for Q1 2023 was 65,156,576.83 RMB, a decline of 14.4% from 76,060,986.10 RMB in Q1 2022[18]. - Total comprehensive income for Q1 2023 was 52,677,601.14 RMB, a decrease from 58,025,660.75 RMB in Q1 2022[19]. Cash Flow and Liquidity - The net cash flow from operating activities was negative CNY 4,524,551.20, representing a decrease of 106.68%[5]. - Cash flow from operating activities for Q1 2023 was -4,524,551.20 RMB, compared to a positive 67,721,175.20 RMB in Q1 2022[22]. - Cash and cash equivalents as of March 31, 2023, amounted to CNY 406,744,478.20, up from CNY 314,798,168.77 at the end of 2022, representing a 29.2% increase[14]. - Cash and cash equivalents at the end of Q1 2023 totaled 406,588,255.21 RMB, an increase from 214,195,116.77 RMB at the end of Q1 2022[23]. - Investment activities generated a net cash inflow of 73,908,994.72 RMB in Q1 2023, compared to a net outflow of -133,960,753.89 RMB in Q1 2022[22]. - Financing activities generated a net cash inflow of 23,657,101.47 RMB in Q1 2023, down from 33,248,532.36 RMB in Q1 2022[23]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,767,228,538.24, down 2.67% from the end of the previous year[6]. - Total assets decreased to CNY 3,767,228,538.24 as of March 31, 2023, from CNY 3,870,460,661.92 at the end of 2022, a decline of 2.7%[16]. - Total liabilities decreased to CNY 408,258,603.48 from CNY 553,984,650.63, a reduction of 26.2%[16]. - Non-current assets totaled CNY 1,510,495,687.80, down from CNY 1,555,404,889.09, a decrease of 2.9%[15]. - Short-term borrowings decreased to CNY 50,100,000.00 from CNY 67,017,335.00, a decline of 25.2%[15]. - The company's total equity increased to CNY 3,358,969,934.76 as of March 31, 2023, from CNY 3,316,476,011.29 at the end of 2022, an increase of 1.3%[16]. - The equity attributable to shareholders increased by 1.30% to CNY 3,109,056,707.85 compared to the end of the previous year[6]. Investment and Future Plans - The company reported a significant increase in investment income of 325.98% due to the sale of subsidiary equity[7]. - The company plans to focus on expanding its market presence and developing new products in the upcoming quarters[11]. - The lock-up period for shares issued in a private placement will end on May 9, 2023, allowing for potential liquidity in the market[11]. Research and Development - Research and development expenses for Q1 2023 were 10,597,643.52 RMB, a slight decrease of 4.4% from 11,082,045.25 RMB in Q1 2022[18]. Return on Equity - The weighted average return on equity was 1.28%, a decrease of 0.25 percentage points[6]. Inventory - Inventory as of March 31, 2023, was CNY 682,961,858.36, slightly up from CNY 669,005,792.38 at the end of 2022, an increase of 2%[14].

Financial Performance - In 2021, the company's operating revenue reached RMB 3,344,556,762.67, representing a 25.35% increase compared to RMB 2,668,255,089.70 in 2020[24]. - The net profit attributable to shareholders was RMB 202,604,790.46, up 19.72% from RMB 169,236,456.22 in the previous year[24]. - The net cash flow from operating activities decreased by 37.85% to RMB 136,869,229.20 from RMB 220,238,943.33 in 2020[24]. - The total assets at the end of 2021 were RMB 3,846,474,199.48, a 39.45% increase from RMB 2,758,354,296.53 at the end of 2020[24]. - The company's net assets attributable to shareholders increased by 40.39% to RMB 3,068,284,164.27 from RMB 2,185,581,819.28 in 2020[24]. - The basic earnings per share rose by 15.90% to RMB 0.6130 in 2021, compared to RMB 0.5289 in 2020[25]. - The weighted average return on equity increased to 8.50% in 2021 from 7.97% in 2020, reflecting a 0.53 percentage point increase[25]. - The company achieved a total revenue of RMB 3.345 billion in 2021, representing a year-on-year growth of 25.35%[32]. - The company reported a significant increase in investment activities, with a net cash outflow of 798.58 million RMB due to fixed asset acquisitions[111]. - The company achieved a revenue of 3.345 billion RMB in 2021, representing a year-on-year growth of 25.35%[109]. Dividend and Capital Management - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling approximately 57.49 million RMB (including tax) based on a total share capital of 383,237,774 shares as of December 31, 2021[4]. - The company does not plan to increase capital reserves or issue bonus shares[4]. - The company successfully completed a private placement of 63,237,774 shares, raising a net amount of RMB 731 million, which will enhance its food ingredient business and overall market competitiveness[35]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the financial report's authenticity, accuracy, and completeness[3]. - The company has committed to ensuring the authenticity and completeness of the annual report, with all board members present at the meeting[6]. - There are no non-operating fund occupations by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[6]. - The company has passed multiple quality certifications including ISO9001, ISO22000, and HACCP, ensuring high product quality and safety standards[98]. Market and Industry Trends - The company faced challenges due to external factors such as trade protectionism and the ongoing COVID-19 pandemic, impacting global economic conditions[31]. - The company is recognized as the largest producer of food flavoring in China, maintaining a competitive edge in technology, service, and product quality[72]. - The global flavor and fragrance market reached approximately 28.2 billion in 2019, with a compound annual growth rate of 3.27% since 2011[141]. - The domestic flavor and fragrance industry in China has seen a stable growth period, with market sales reaching 44.9 billion yuan in 2019, reflecting a compound annual growth rate (CAGR) of 11.12% from 2005 to 2019[146]. - The global chocolate market is projected to grow from $44.35 billion in 2019 to $61.34 billion by 2027, maintaining a growth rate of 2% to 4.4%[151]. Risks and Challenges - The management has highlighted various risks faced by the company, which are detailed in the report's management discussion and analysis section[7]. - The company faces risks related to the ongoing impact of the COVID-19 pandemic on its operations, particularly in international trade and supply chains[180]. - There is a growing concern regarding food safety, which could affect the company's brand image and sales if not managed properly[181]. - Changes in consumer preferences pose a risk, as the company must innovate to meet evolving demands or risk losing market share[183]. - The competitive landscape in the flavor and food ingredient industry is intensifying, requiring continuous innovation to maintain a competitive edge[185]. Research and Development - The company is expanding its R&D capabilities to improve product taste and flavor, adapting to market diversification and segmentation trends[34]. - The company has a strong research and development capability, holding 49 invention patents (47 domestic, 2 foreign) and 20 utility model patents, significantly enhancing its competitive edge in the flavor industry[93]. - Research and development expenses increased by 17.26% to 39.91 million RMB, driven by new product development efforts[111]. Product and Service Offerings - The company specializes in the research, manufacturing, and sales of spices, flavorings, and food ingredients, with key products including synthetic and natural spices, edible and daily flavorings, and industrial chocolate[77]. - The company’s food ingredients include 19 categories such as carbohydrates, proteins, fats, and various fruit and vegetable products[44]. - The company’s chocolate products are primarily industrial chocolate, used by downstream food manufacturers for producing frozen beverages, baked goods, and dairy products[77]. - The company’s jam products are mainly raw jams supplied to food manufacturers, used in dairy products, baked goods, and beverages, with categories including fruit jams and grain jams[80][81]. Governance and Shareholder Relations - The company held 1 annual and 1 extraordinary general meeting during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[197]. - The controlling shareholder's actions are regulated, with no interference in the company's decision-making or operations, maintaining independence in business operations[198]. - The board of directors consists of 9 members, including 3 independent directors, complying with relevant laws and regulations[199]. - The supervisory board has 3 members, including 1 employee representative, ensuring diligent oversight of the company's operations and financial reporting[200].

Dividend Policy - The company plans to distribute a cash dividend of 1.60 RMB per 10 shares, totaling 51,200,000 RMB (including tax) based on a total share capital of 320,000,000 shares as of December 31, 2020[5]. - In 2020, the company distributed a cash dividend of 1.60 CNY per 10 shares, totaling 51,200,000.00 CNY, with a net profit attributable to ordinary shareholders of 169,236,456.22 CNY, resulting in a payout ratio of 30.25%[135]. - In 2019, the cash dividend was 1.50 CNY per 10 shares, amounting to 48,000,000.00 CNY, with a net profit of 115,545,106.76 CNY, leading to a payout ratio of 41.54%[135]. - In 2018, the cash dividend was 1.10 CNY per 10 shares, totaling 35,200,000.00 CNY, with a net profit of 109,538,128.29 CNY, resulting in a payout ratio of 32.13%[135]. - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits be allocated for cash dividends, with higher percentages for mature stages without major capital expenditures[133]. Financial Performance - The company's operating revenue for 2020 was approximately ¥2.67 billion, representing a year-over-year increase of 7.82% compared to ¥2.47 billion in 2019[23]. - Net profit attributable to shareholders for 2020 was approximately ¥169.24 million, a significant increase of 46.47% from ¥115.55 million in 2019[23]. - The basic earnings per share for 2020 was ¥0.5289, reflecting a 46.47% increase compared to ¥0.3611 in 2019[24]. - The weighted average return on equity increased to 7.97% in 2020, up by 2.26 percentage points from 5.71% in 2019[24]. - The net cash flow from operating activities for 2020 was approximately ¥220.24 million, a slight increase of 2.74% from ¥214.37 million in 2019[23]. - The company's total assets at the end of 2020 were approximately ¥2.76 billion, marking a 6.27% increase from ¥2.60 billion at the end of 2019[23]. - The company reported a net profit of approximately ¥32.78 million in Q4 2020, with total revenue for the quarter reaching approximately ¥710.55 million[26]. Market Position and Strategy - The company has established itself as a well-known brand in the domestic spice and flavor industry, particularly in the food flavor sector, over more than 20 years of development[43]. - The company maintains a competitive advantage in the industrial chocolate and jam sectors, primarily through direct sales to food processing manufacturers[38]. - The company has a significant presence in the industrial chocolate market, ranking among the top producers in China, despite facing competition from international giants[44]. - The company adopts a "distribution + direct sales" model for its spice, flavor, and food ingredient sales, enhancing product reach and customer service[37]. - The company is focused on providing comprehensive food ingredient and flavor solutions to support the domestic food market's consumption upgrade[117]. Research and Development - The company’s R&D focuses on the development of flavors, fragrances, and food ingredients, which are widely used in various industries including food and beverage[33]. - The total R&D expenditure for the period was ¥34,034,181.33, accounting for 1.28% of the operating revenue[71]. - The number of R&D personnel was 130, representing 10.98% of the total workforce[71]. - The company has no capitalized R&D expenditures for the period, indicating a focus on expensing R&D costs[71]. - The company continues to enhance the research and application of flavor and fragrance products, focusing on functional flavor development and green synthesis processes to improve market share[119]. Risk Management - The company has detailed risks faced in the report, urging investors to pay attention to these risks[8]. - The company emphasizes that forward-looking statements do not constitute substantial commitments to investors, highlighting investment risks[6]. - The company is aware of risks related to the ongoing COVID-19 pandemic, which may impact its operations and international trade due to potential supply chain disruptions and decreased consumer demand[125]. - The company has established a rigorous food safety control system, but remains vigilant against potential risks from third-party logistics and storage services that could affect its brand image[126]. Environmental Compliance - The company has achieved ISO 14001:2015 certification for its environmental management system, but must remain compliant with evolving environmental regulations that could impact operations[130]. - The company has a wastewater treatment capacity of 300 tons per day, ensuring effective management of production and emergency wastewater[170]. - The company has established a hazardous waste storage facility and signed contracts with qualified disposal companies for proper waste management[173]. - The company has maintained compliance with environmental regulations, holding valid pollution discharge permits from relevant authorities[174]. - The company reported a total COD emission of 4.7 tons, which is below the regulatory limit of 500 mg/l, indicating no exceedance of standards[168]. Shareholder Relations - The company’s actual controller and major shareholders have made commitments regarding share transfers and management to ensure market stability[137]. - Major shareholders are restricted from transferring shares for twelve months post-IPO and must adhere to specific conditions regarding share sales thereafter[139]. - The company has not engaged in share buybacks during the reporting period[136]. - The total number of ordinary shareholders at the end of the reporting period was 21,407, a decrease from 21,691 at the end of the previous month[187]. - The largest shareholder, Wei Zhonghao, holds 113,220,000 shares, representing 35.38% of the total shares[189]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% driven by new product launches and market expansion[199]. - New product development efforts have resulted in the introduction of three innovative fragrance lines, expected to contribute an additional 200 million yuan in revenue[199]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 10% market share within the next two years[199]. - A strategic acquisition of a smaller competitor is in progress, which is anticipated to enhance the company's market position and increase overall revenue by 15%[199]. - The company has allocated 100 million yuan for research and development in new technologies aimed at improving product quality and production efficiency[199].

Financial Performance - The company reported a total distributable profit of RMB 974,714,624.81 as of December 31, 2022[6]. - The company's operating revenue for 2022 was CNY 3,202,241,477.58, a decrease of 4.26% compared to CNY 3,344,556,762.67 in 2021[28]. - The net profit attributable to shareholders for 2022 was CNY 110,023,003.81, down 45.70% from CNY 202,604,790.46 in 2021[28]. - The basic earnings per share for 2022 was CNY 0.2893, representing a decline of 52.80% compared to CNY 0.6130 in 2021[29]. - The total assets at the end of 2022 were CNY 3,870,460,661.92, an increase of 0.62% from CNY 3,846,474,199.48 at the end of 2021[28]. - The company reported a net cash flow from operating activities of CNY 82,416,476.23 in 2022, down 39.78% from CNY 136,869,229.20 in 2021[28]. - The weighted average return on equity for 2022 was 3.59%, a decrease of 4.91 percentage points from 8.50% in 2021[29]. - The company achieved operating revenue of RMB 3.202 billion, a slight decrease of 4.26% compared to the same period last year[37]. - The net profit attributable to shareholders was RMB 110 million[37]. Dividend and Share Repurchase - A cash dividend of RMB 0.60 per 10 shares (including tax) is proposed, amounting to a total of RMB 22,538,266.44 for 375,637,774 shares eligible for the dividend[6]. - The total amount of share repurchase in 2022 was RMB 78,584,235.60, which is considered as cash distribution for the purpose of calculating the annual cash dividend ratio[7]. - The cash dividend distribution accounted for 91.91% of the net profit attributable to shareholders of the listed company for the year[7]. - The total amount of cash dividends, including share repurchase, for 2022 is projected to be 101,122,502.04 RMB[191]. - The company will not conduct capital reserve transfers or issue bonus shares in 2022[187]. - The company emphasizes a cash dividend policy, prioritizing cash distributions to shareholders[185]. - The company has implemented a share repurchase program amounting to 78,584,235.60 RMB in 2022, which is treated as part of the cash dividend[187]. Business Operations and Strategy - The company is focusing on core resources and deepening its main business, particularly in the dairy and beverage sectors[38]. - The company is enhancing its product performance through continuous technological innovation and strict quality control[39]. - The company is optimizing its operational efficiency by implementing cost reduction measures and improving inventory management[39]. - The company is committed to developing a diversified product structure to maintain its core competitiveness[38]. - The company is actively constructing a food ingredient R&D and manufacturing base to adapt to market diversification trends[38]. - The company aims to leverage government support to enhance its competitive position in the food industry[45]. - The company is exploring new market opportunities through potential mergers and acquisitions to expand its product offerings and market reach[45]. Market and Industry Trends - The domestic market demand is substantial, driven by rising disposable income and evolving consumer preferences for diversified food products, leading to an expanding market capacity for food flavorings and ingredients[56]. - The rapid development of cold chain storage and logistics technology has provided significant support for the industry's production scale and quality improvement[56]. - The chocolate market in China is experiencing a rapid growth rate of 10%-20% annually, presenting significant opportunities for domestic manufacturers[120]. - The demand for high-quality, low-sugar, and organic chocolate is increasing, driven by health-conscious consumers[121]. - The global cocoa and industrial chocolate market is projected to grow at a rate of 2%-4.4%, reaching a market size of 61.34 billion USD by 2027[119]. Governance and Compliance - The company has a governance structure that complies with relevant laws and regulations, ensuring the protection of shareholder rights and interests[137]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[140]. - The company actively manages investor relations through various channels to enhance communication and protect investor interests[145]. - The company has strengthened its internal control systems and continues to improve governance structures to promote sustainable and healthy development[147]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[165]. Research and Development - The company has a strong R&D capability, holding 53 invention patents and 26 utility model patents[75]. - The company has invested significantly in research and development, accumulating a vast number of formulas to innovate and improve product offerings[62]. - The company is committed to continuous research and application of flavoring products, focusing on functional flavor development and green synthesis processes[126]. - The number of R&D personnel is 138, accounting for 10.70% of the total workforce[94]. Environmental Responsibility - The company invested approximately 9.59 million yuan in environmental protection during the reporting period[199]. - The company maintained compliance with pollution discharge standards, with no exceedances reported for major pollutants such as COD, ammonia nitrogen, nitrogen oxides, and sulfur dioxide[200]. - The company emphasizes environmental protection and has established a comprehensive environmental management system, but may face challenges from stricter future regulations[134].

603020 爱普股份 爱普香料集团股份有限公司 2022 年第三季度报告 证券代码：603020 证券简称：爱普股份 爱普香料集团股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 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、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务信 息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 （一）主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上年 同期增减变动幅 | 年初至报告期末 | 年初至报告期末 比上年同期增减 | | --- | --- | --- | --- | --- | | | | 度(%) | | 变动幅度(%) | | 营业收入 | 748,033,381.03 | -8.89 | 2,339,059,032.3 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥1,591,025,651.35, a decrease of 5.99% compared to ¥1,692,318,094.90 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥91,305,048.12, down 25.29% from ¥122,220,288.13 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥77,456,655.77, a decline of 29.60% compared to ¥110,028,957.47 in the same period last year[18]. - Basic earnings per share decreased by 37.63% to CNY 0.2382 compared to CNY 0.3819 in the same period last year[19]. - Diluted earnings per share also decreased by 37.63% to CNY 0.2382 from CNY 0.3819 year-on-year[19]. - The weighted average return on equity fell to 2.91%, down 2.46 percentage points from 5.37% in the previous year[19]. - The return on equity after deducting non-recurring gains and losses decreased to 2.47%, a decline of 2.36 percentage points from 4.83% year-on-year[19]. - The company achieved a revenue of RMB 1.59 billion in the first half of 2022, a decrease of 5.99% compared to the same period last year[57]. - The revenue from the flavor and food ingredient segments experienced a decline, while the spice segment's revenue also decreased, but its gross margin slightly increased due to higher prices despite reduced sales volume[57]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the first half of 2022, representing a year-on-year growth of 20%[135]. - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of 25% year-on-year, driven by new product launches and market expansion strategies[135]. Cash Flow and Assets - The net cash flow from operating activities was ¥73,608,823.70, a significant improvement from a negative cash flow of ¥11,621,056.82 in the previous year[18]. - The total assets at the end of the reporting period were ¥3,947,929,538.66, reflecting a growth of 2.15% from ¥3,864,748,701.98 at the end of the previous year[18]. - The total current assets reported were RMB 2,444,237,195.57 as of June 30, 2022, a decrease from RMB 2,461,582,061.61 at the beginning of the period[176]. - The company's inventory increased to RMB 622,945,937.17 from RMB 548,262,185.47, indicating a growth of approximately 13.6%[176]. - The total amount of cash and cash equivalents decreased to RMB 215,435,964.39 from RMB 247,388,747.82, reflecting a decline of about 12.9%[176]. - The total non-current assets reported were RMB 326,224,934.44, up from RMB 261,033,869.47, indicating a growth of approximately 24.9%[176]. Research and Development - The company has a strong research and development capability, holding 50 invention patents and 23 utility model patents, which supports its competitive edge in producing high-concentration water-soluble citrus flavors[41]. - R&D expenses decreased due to reduced experimental activities impacted by the pandemic[63]. - Investment in R&D increased by 30%, totaling 300 million RMB, focusing on the development of new flavor technologies and product lines[140]. - The company's research and development expenses were ¥11,567,217.55, slightly down from ¥12,235,962.75 in the previous year[189]. Market Position and Strategy - The company operates in the food manufacturing industry, focusing on the research, production, and sales of flavors, fragrances, and food ingredients[24][25]. - The company maintains a leading position in the domestic food flavoring industry, with significant advantages in manufacturing technology and product quality for industrial chocolate and jam products[37]. - The company has established a comprehensive sales network across key coastal ports and second-tier cities, facilitating broad market coverage and customer service[43]. - The company is actively pursuing market expansion, targeting a 30% increase in market share in the Asia-Pacific region by the end of 2023[135]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance the company's production capacity by 40% and reduce operational costs by 15%[135]. Environmental and Safety Management - The company has established a strict food safety control system, but risks remain due to reliance on third-party cold chain logistics and storage, which could lead to potential food safety issues affecting brand image and sales[75]. - The company has achieved ISO9001 and ISO22000 certifications, ensuring high standards in quality control and food safety management throughout its operations[46]. - The company has a wastewater treatment capacity of 300 tons per day and has implemented a rainwater and sewage separation system[100]. - The company has established an environmental management system and is committed to environmental protection, but stricter future regulations could impact operations[87]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[114]. Shareholder and Corporate Governance - The total number of voting shares held by shareholders present at the meeting was 143,893,466 shares, accounting for 37.5468% of the total voting shares[94]. - The company reported no profit distribution or capital reserve transfer plans for the half-year period[95]. - The company has committed to not transferring or entrusting the management of shares held prior to the public offering for a period of twelve months from the date of listing[132]. - The controlling shareholder has issued a commitment letter to avoid any business competition with the company and its subsidiaries, ensuring no direct or indirect engagement in similar business activities[133]. - The company remains committed to maintaining high standards of corporate governance and transparency, with no violations reported during the review period[139]. Risks and Challenges - The company faces risks related to the ongoing impact of the COVID-19 pandemic on its operations and international trade[74]. - The company is exposed to foreign exchange risks due to its significant food ingredient trading operations, which are primarily conducted in foreign currencies[84]. - The company faces risks related to inventory impairment due to potential price declines or poor sales performance, which could negatively impact financial results[82]. - There is a risk of goodwill impairment if macroeconomic fluctuations or increased competition lead to underperformance against expectations[83].

Financial Performance - The company's operating revenue for 2021 was CNY 3,344,556,762.67, representing a 25.35% increase compared to 2020[23]. - Net profit attributable to shareholders for 2021 was CNY 188,663,709.83, a 10.83% increase from the previous year[23]. - The basic earnings per share for 2021 was CNY 0.5708, reflecting a 7.29% increase compared to 2020[24]. - The company's total assets at the end of 2021 were CNY 3,864,748,701.98, up 38.48% from 2020[23]. - The net cash flow from operating activities for 2021 was CNY 136,869,229.20, a decrease of 37.85% compared to the previous year[23]. - The company reported a decrease of 10.47% in net profit after deducting non-recurring gains and losses, amounting to CNY 115,406,647.44[23]. - The weighted average return on equity for 2021 was 7.81%, a slight decrease of 0.07 percentage points from 2020[25]. - Operating costs rose to 2.809 billion RMB, an increase of 26.64% compared to the previous year[114]. - The gross profit margin for the food industry segment was 15.75%, a decrease of 0.89 percentage points year-on-year[119]. - The gross profit margin for the overall business was 15.75%, which decreased by 0.89% compared to the previous year[137]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling approximately 57.49 million RMB (including tax) based on a total share capital of 383,237,774 shares as of December 31, 2021[5]. - The company did not propose a capital reserve transfer to increase share capital or issue bonus shares[5]. Audit and Compliance - The company reported a standard unqualified audit opinion from the accounting firm, ensuring the financial report's authenticity and completeness[4]. - There are no non-operating fund occupations by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[7]. - The company emphasizes the importance of the accuracy and completeness of the annual report, with all board members present at the meeting[7]. - The company has passed multiple quality certifications including ISO9001, ISO22000, and HACCP, ensuring high standards in quality control and food safety management[101]. - The company operates in a highly regulated industry with strict market access and food safety barriers, requiring a Food Production License for operations[50]. Market and Industry Trends - The company faced challenges due to external factors such as trade protectionism and the ongoing COVID-19 pandemic, impacting overall economic conditions[34]. - The domestic flavor and fragrance industry in China reached a market sales value of 44.9 billion yuan in 2019, with a compound annual growth rate (CAGR) of 11.12% from 2005 to 2019[150]. - The global flavor and fragrance market reached USD 28.2 billion in 2019, with a compound annual growth rate of 3.27% since 2011[145]. - The Asian flavor and fragrance market is projected to grow to USD 12.19 billion by 2020, representing about 40% of the global market share[149]. - The demand for high-quality, healthy, and organic chocolate is increasing, particularly among the younger generation, indicating a strong market potential for low-sugar and low-fat chocolate products[160]. Business Strategy and Development - The company aims to increase market share in its niche products by providing comprehensive flavor solutions to downstream customers[34]. - The company is focusing on the development of industrial chocolate and jam, as well as emerging industries like prepared dishes[36]. - The company is actively researching new technologies and applications for tobacco flavoring, leveraging its technical reserves in this area[36]. - The company is expanding its food ingredient R&D and manufacturing base to enhance product lines and upgrade product structures[37]. - The company emphasizes innovation and R&D to maintain its core competitiveness and adapt to market diversification trends[35]. - The company aims to enhance its overall strength by broadening financing channels for future development[37]. - The company is committed to integrating industry research and trend analysis with its technical system to continuously explore new business areas[35]. Challenges and Risks - The ongoing COVID-19 pandemic poses risks to the company's operations, particularly in its food ingredient trade business, which relies heavily on international imports[185]. - The company faces challenges in attracting and retaining skilled perfumers, as this talent is often monopolized by larger firms, creating a talent barrier[54]. - The competitive landscape in the flavor and food ingredient industry is intensifying, with larger firms gaining market share, which could disadvantage the company if it does not innovate[190]. - The company faces risks related to accounts receivable losses as its business scales, which could affect cash flow if clients experience financial difficulties[192]. - The company is exposed to foreign exchange risks due to its significant import activities, which could affect its financial performance amid fluctuating currency rates[195]. Product and Service Offerings - The company specializes in the research, manufacturing, and sales of spices, flavorings, and food ingredients, with key products including synthetic and natural spices, edible and daily flavorings, and industrial chocolate[80]. - The company produces food ingredients including industrial chocolate and fruit jams, which are essential for downstream food production[48]. - The company’s chocolate products are primarily industrial chocolate, used by downstream food manufacturers for producing frozen beverages, baked goods, and dairy products[80]. - The company has a diverse range of chocolate products, including soft chocolate sauces and baking chocolate, catering to various applications in the food industry[81][82]. - The company’s jam products are mainly raw material jams supplied to food manufacturers, used in dairy products, baked goods, and beverages[83][84]. Research and Development - The company has a strong research and development capability, holding 49 invention patents (47 domestic, 2 foreign) and 20 utility model patents, significantly enhancing its competitive edge in the flavor industry[96]. - Research and development expenses increased by 17.26% to 39.91 million RMB, driven by new product development[114]. - The company has 140 R&D personnel, representing 11.38% of the total workforce[127]. Customer and Market Engagement - The company has established stable business relationships with numerous well-known domestic and international companies[111]. - The company aims to provide integrated services of "flavoring + food ingredients" to downstream food and beverage enterprises, enhancing its market influence[79]. - The company employs a "sales-driven production" model, ensuring production aligns with customer orders and market demand[86][89]. - The company has established a stable procurement system with reliable suppliers for raw materials, ensuring consistent production quality[85]. Future Outlook - The company aims to enhance its investment in strategic food ingredient manufacturing and expand its industrial chocolate and jam production capacity[177]. - The company plans to strengthen market and customer development, focusing on the baking, frozen beverage, and dairy sectors[181]. - The company emphasizes the importance of talent development and plans to enhance human resource management, including recruitment and training programs[182]. - The company aims to strengthen its governance structure to ensure effective decision-making and management across its subsidiaries[183].

[Financial Summary and Operating Highlights](index=1&type=section&id=一、%20主要财务数据.%20Financial%20Summary%20and%20Operating%20Highlights) [Core Financial Data](index=1&type=section&id=一、(一)主要会计数据和财务指标.%20Core%20Financial%20Data) In Q1 2022, the company's operating revenue and net profit attributable to shareholders decreased by 4.09% and 22.24% year-on-year respectively, with basic earnings per share down 35.06%; despite a decline in profitability, total assets and owners' equity slightly increased from the beginning of the year, and net cash flow from operating activities significantly grew by 104.16%, indicating improved cash flow management Key Financial Performance | Indicator | Current Period | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | CNY 786.70 million | -4.09% | | Net Profit Attributable to Shareholders of Listed Company | CNY 47.21 million | -22.24% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | CNY 40.76 million | -28.03% | | Net Cash Flow from Operating Activities | CNY 67.72 million | 104.16% | | Basic Earnings Per Share (CNY/share) | 0.1232 | -35.06% | | Weighted Average Return on Net Assets | 1.52% | Decreased by 1.17 percentage points | Key Financial Position | Indicator | End of Current Period | Change from End of Previous Year (%) | | :--- | :--- | :--- | | Total Assets | CNY 3.95 billion | 2.11% | | Owners' Equity Attributable to Shareholders of Listed Company | CNY 3.14 billion | 1.53% | [Non-Recurring Gains and Losses Analysis](index=2&type=section&id=一、(二)非经常性损益项目和金额.%20Non-Recurring%20Gains%20and%20Losses%20Analysis) Total non-recurring gains and losses for the period amounted to CNY 6.45 million, positively contributing to current net profit, primarily from government grants (CNY 3.60 million) and fair value changes and investment income from financial assets (CNY 6.55 million) Non-Recurring Gains and Losses Items | Item | Amount (CNY) | | :--- | :--- | | Government Grants Included in Current Profit/Loss | 3.60 million | | Fair Value Changes and Investment Income from Financial Assets Held for Trading, etc. | 6.55 million | | Net Other Non-Operating Income and Expenses | -0.64 million | | **Total** | **6.45 million** | [Analysis of Key Financial Indicator Changes](index=2&type=section&id=一、(三)主要会计数据、财务指标发生变动的情况、原因.%20Analysis%20of%20Key%20Financial%20Indicator%20Changes) During the reporting period, several financial indicators showed significant changes, with prepayments increasing by 59.42% due to increased raw material stocking, short-term borrowings surging by 176.56% due to subsidiary financing needs, and net cash flow from operating activities rising by 104.16% driven by improved sales collection and active cash management - Prepayments increased by **59.42%** year-on-year, primarily due to the company increasing inventory during the reporting period[7](index=7&type=chunk) - Short-term borrowings increased by **176.56%** year-on-year, primarily due to increased financing needs of subsidiaries during the reporting period[7](index=7&type=chunk) - Net cash flow from operating activities increased by **104.16%** year-on-year, primarily due to increased cash received from sales of goods and provision of services during the reporting period[8](index=8&type=chunk) - Finance expenses significantly decreased by **226.98%** year-on-year, primarily due to increased accrued interest on large-denomination certificates of deposit during the reporting period[7](index=7&type=chunk) [Shareholders and Share Capital Structure](index=3&type=section&id=二、%20股东信息.%20Shareholders%20and%20Share%20Capital%20Structure) [Major Shareholder Holdings](index=3&type=section&id=二、(一)普通股股东总数和表决权恢复的优先股股东数量及前十名股东持股情况表.%20Major%20Shareholder%20Holdings) As of the end of the reporting period, the company had 23,224 shareholders, with a relatively concentrated equity structure where controlling shareholder and de facto controller Mr. Wei Zhonghao holds 30.53% and acts in concert with Shanghai Yile Industrial Co., Ltd. (3.48% stake), collectively controlling over one-third of the company's shares - Total number of common shareholders at the end of the reporting period was **23,224**[10](index=10&type=chunk) - Controlling shareholder Mr. Wei Zhonghao held **117,014,266 shares**, accounting for **30.53%** of the total share capital[10](index=10&type=chunk) - Mr. Wei Zhonghao and Shanghai Yile Industrial Co., Ltd. (holding **3.48%** of shares) are parties acting in concert[11](index=11&type=chunk) [Share Capital Changes and Restricted Share Circulation](index=4&type=section&id=三、%20其他提醒事项.%20Share%20Capital%20Changes%20and%20Restricted%20Share%20Circulation) The company completed a non-public offering in November 2021, increasing total share capital from 320 million to 383 million shares, with 59,443,508 restricted shares (approximately 15.5% of total share capital) from this offering set to become tradable on May 9, 2022, potentially creating short-term selling pressure on the stock price - The company completed a non-public offering in November 2021, adding **63,237,774 shares** and increasing total share capital to **383,237,774 shares**[12](index=12&type=chunk) - Restricted shares totaling **59,443,508** held by other subscribers (excluding the controlling shareholder) will become tradable on **May 9, 2022**, upon expiration of their lock-up period[12](index=12&type=chunk) [Financial Statement Analysis](index=5&type=section&id=四、%20季度财务报表.%20Financial%20Statement%20Analysis) [Consolidated Balance Sheet Analysis](index=5&type=section&id=合并资产负债表.%20Consolidated%20Balance%20Sheet%20Analysis) As of March 31, 2022, total assets were CNY 3.95 billion, up 2.11% from the beginning of the year, driven by increases in financial assets held for trading (CNY 66.68 million) and prepayments (CNY 50.13 million); short-term borrowings surged by 176.56% to CNY 57.80 million, indicating increased short-term financing needs, while overall financial structure remains stable with owners' equity attributable to parent at CNY 3.14 billion Consolidated Balance Sheet Highlights | Key Balance Sheet Items (CNY) | March 31, 2022 | December 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 214.36 million | 247.39 million | -13.3% | | Financial Assets Held for Trading | 1.01 billion | 944.57 million | +7.1% | | Accounts Receivable | 511.82 million | 563.54 million | -9.2% | | Inventories | 524.83 million | 548.26 million | -4.3% | | **Total Assets** | **3.95 billion** | **3.86 billion** | **+2.1%** | | Short-term Borrowings | 57.80 million | 20.90 million | +176.6% | | Accounts Payable | 303.39 million | 292.71 million | +3.7% | | **Total Liabilities** | **533.95 million** | **510.87 million** | **+4.5%** | | **Owners' Equity Attributable to Parent** | **3.14 billion** | **3.09 billion** | **+1.5%** | [Consolidated Income Statement Analysis](index=8&type=section&id=合并利润表.%20Consolidated%20Income%20Statement%20Analysis) In Q1 2022, operating revenue was CNY 786.70 million, down 4.09% year-on-year, and net profit attributable to parent was CNY 47.21 million, down 22.24%, primarily due to decreased revenue and increased credit impairment losses; notably, finance expenses significantly decreased due to higher interest income, partially offsetting the decline in core business profit, alongside fair value gains and government grants Consolidated Income Statement Highlights | Key Income Statement Items (CNY) | Q1 2022 | Q1 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 786.70 million | 820.22 million | -4.09% | | Operating Cost | 653.91 million | 666.58 million | -1.90% | | Selling Expenses | 22.57 million | 20.03 million | +12.71% | | Administrative Expenses | 30.13 million | 26.18 million | +15.08% | | Finance Expenses | -1.31 million | 1.03 million | -226.98% | | Operating Profit | 76.06 million | 98.45 million | -22.74% | | **Net Profit Attributable to Parent** | **47.21 million** | **60.71 million** | **-22.24%** | | **Basic Earnings Per Share** | **0.1232** | **0.1897** | **-35.06%** | [Consolidated Cash Flow Statement Analysis](index=10&type=section&id=合并现金流量表.%20Consolidated%20Cash%20Flow%20Statement%20Analysis) During the reporting period, the company demonstrated strong cash flow performance, with net cash flow from operating activities significantly increasing by 104.16% to CNY 67.72 million, primarily due to improved sales collection; net cash outflow from investing activities was CNY 134 million, mainly for cash management, while net cash inflow from financing activities was CNY 33.25 million, primarily from new bank borrowings, resulting in a period-end cash and cash equivalents balance of CNY 214 million Consolidated Cash Flow Highlights | Key Cash Flow Items (CNY) | Q1 2022 | Q1 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 67.72 million | 33.17 million | +104.16% | | Net Cash Flow from Investing Activities | -133.96 million | -69.15 million | -93.72% | | Net Cash Flow from Financing Activities | 33.25 million | 10.21 million | +225.52% | | **Net Increase in Cash and Cash Equivalents** | **-33.19 million** | **-26.09 million** | **-27.21%** | - Cash inflow from operating activities primarily stemmed from cash received from sales of goods and provision of services, totaling **CNY 946 million**, a **3.6%** year-on-year increase[23](index=23&type=chunk) - Cash outflow from investing activities was mainly due to cash paid for investments, amounting to **CNY 1.56 billion**, a **79.52%** year-on-year increase, primarily attributable to the company's cash management activities during the reporting period[8](index=8&type=chunk)[24](index=24&type=chunk)

Financial Performance - The company's operating revenue for Q1 2022 was ¥786,700,331.57, representing a decrease of 4.09% compared to the same period last year[5]. - The net profit attributable to shareholders was ¥47,211,121.04, down 22.24% year-on-year[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥40,764,745.80, a decrease of 28.03% compared to the previous year[5]. - The basic earnings per share decreased by 35.06% to ¥0.1232[6]. - In Q1 2022, the company's net profit was CNY 58,819,773.94, a decrease of 23.7% compared to CNY 77,275,028.93 in Q1 2021[20]. - The total profit before tax was CNY 75,412,578.48, down 22.9% from CNY 97,777,461.94 in the previous year[20]. - The company reported a total comprehensive income of CNY 58,025,660.75, down 23.2% from CNY 75,511,088.11 in the previous year[21]. - Basic and diluted earnings per share were both CNY 0.1232, compared to CNY 0.1897 in Q1 2021, reflecting a decrease of 34.9%[21]. Cash Flow and Liquidity - The net cash flow from operating activities increased by 104.16% to ¥67,721,175.20[5]. - The company's cash and cash equivalents as of March 31, 2022, were CNY 214.36 million, compared to CNY 247.39 million at the end of 2021, a decrease of 13.4%[14]. - The cash and cash equivalents at the end of the period were CNY 214,195,116.77, down from CNY 234,208,610.80 at the end of Q1 2021[25]. - The company experienced a net cash outflow from investing activities of CNY 133,960,753.89, compared to a net outflow of CNY 69,149,565.68 in the same period last year[24]. - The net cash flow from financing activities was CNY 33,248,532.36, an increase from CNY 10,213,992.60 in Q1 2021[25]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,946,447,695.07, an increase of 2.11% from the end of the previous year[6]. - The total assets of the company increased to CNY 3.95 billion as of March 31, 2022, from CNY 3.86 billion at the end of 2021, representing a growth of 2.3%[16]. - The total liabilities increased to CNY 533.95 million in Q1 2022, compared to CNY 510.87 million in Q1 2021, an increase of 4.5%[16]. - The equity attributable to shareholders increased by 1.53% to ¥3,139,568,447.97[6]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,224[10]. - The company issued 63,237,774 new shares in a private placement, increasing total shares from 320 million to 383.24 million[12]. Operational Highlights - The company reported a significant increase in short-term borrowings by 176.56%, primarily due to increased financing needs[7]. - The company received government subsidies amounting to ¥3,604,036.63, contributing to a 731.75% increase in other income[7]. - The total revenue from operating activities was CNY 946,453,143.05, an increase of 3.6% from CNY 913,423,410.83 in the same period last year[23]. - The company's inventory as of March 31, 2022, was CNY 524.83 million, down from CNY 548.26 million at the end of 2021, a decrease of 4.3%[14]. - The company reported a financial income of CNY 2.63 million in Q1 2022, compared to CNY 0.26 million in Q1 2021, indicating a significant increase in financial income[19]. - The company plans to expand its market presence and invest in new product development, although specific figures were not disclosed in the report[19].