Financial Performance - The company's operating revenue for Q3 2021 was ¥821,031,251.71, representing a year-on-year increase of 22.20%[5] - The net profit attributable to shareholders for the same period was ¥38,871,786.91, showing a decrease of 10.62% compared to the previous year[5] - The net profit excluding non-recurring gains and losses was ¥32,225,681.00, down by 20.93% year-on-year[5] - Total operating revenue for the first three quarters of 2021 reached ¥2,513,349,346.61, a 28.3% increase from ¥1,957,702,539.47 in the same period of 2020[19] - Net profit for the first three quarters of 2021 was ¥202,523,583.01, representing a 32.4% increase compared to ¥153,020,699.67 in 2020[20] - The company reported a gross profit margin of approximately 8.9% for the first three quarters of 2021, compared to 9.0% in the same period of 2020[20] - The total comprehensive income for the first three quarters of 2021 was ¥200,429,249.36, compared to ¥145,469,876.58 in the same period of 2020, indicating a year-on-year increase of 38%[21] Cash Flow - The cash flow from operating activities for the year-to-date period was ¥68,037,009.26, reflecting a decline of 46.11%[6] - The net cash flow from operating activities for the first three quarters of 2021 was ¥68,037,009.26, down 46% from ¥126,244,465.87 in the previous year[23] - The net cash flow from investing activities showed a deficit of ¥96,014,518.20 in 2021, compared to a positive cash flow of ¥3,086,878.40 in 2020[24] - The company recorded a total cash inflow from financing activities of ¥76,930,213.77 in 2021, down from ¥100,639,167.73 in 2020[24] - The company’s total cash outflow from investing activities was ¥2,435,564,749.15 in 2021, compared to ¥1,724,329,544.93 in 2020, reflecting an increase of 41%[24] - The company received cash from investment recovery of ¥2,314,000,000.00 in 2021, an increase from ¥1,719,300,000.00 in 2020, representing a growth of 34%[24] Assets and Liabilities - The total assets as of September 30, 2021, amounted to ¥2,959,114,110.25, an increase of 6.03% from the end of the previous year[6] - Current assets totaled ¥1,990,247,172.47 as of September 30, 2021, slightly down from ¥2,018,199,604.44 at the end of 2020[15] - The company's total liabilities were ¥365,404,343.95 as of September 30, 2021, compared to ¥365,125,320.45 at the end of 2020[16] - Total liabilities reached CNY 365.13 million, down by CNY 20.51 million from the previous period[28] - Shareholders' equity totaled CNY 2.43 billion, remaining stable compared to the previous period[29] Shareholder Information - The company reported a total of 23,022 common shareholders at the end of the reporting period[9] - The equity attributable to shareholders reached ¥2,334,387,199.63, up by 4.99% compared to the previous year-end[6] - The company's equity attributable to shareholders reached ¥2,334,387,199.63 as of September 30, 2021, an increase from ¥2,223,442,925.73 at the end of 2020[17] Earnings Per Share - The basic earnings per share for Q3 2021 was ¥0.1215, a decrease of 10.62% compared to the same period last year[6] - The company reported a basic and diluted earnings per share of ¥0.5034 for Q3 2021, up from ¥0.4264 in Q3 2020, reflecting a growth of approximately 18%[21] Research and Development - Research and development expenses for the first three quarters of 2021 were ¥30,397,317.73, up from ¥24,649,694.30 in the same period of 2020[20] Inventory and Accounts Receivable - Inventory increased significantly to ¥622,457,942.78 in Q3 2021, compared to ¥427,131,822.22 in Q4 2020, marking a 45.6% rise[15] - The company reported accounts receivable of CNY 472.90 million, indicating a stable collection period[28] Changes in Accounting Standards - The company has implemented new leasing standards effective from January 1, 2021, impacting financial reporting[30]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥1,692,318,094.90, representing a 31.61% increase compared to ¥1,285,845,716.84 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥122,220,288.13, up 31.46% from ¥92,970,783.06 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥110,028,957.47, reflecting a 27.77% increase from ¥86,113,971.37 in the same period last year[19]. - Basic earnings per share for the first half of the year increased by 31.46% to CNY 0.3819 compared to CNY 0.2905 in the same period last year[20]. - Diluted earnings per share also rose by 31.46% to CNY 0.3819 from CNY 0.2905 year-on-year[20]. - The company's total revenue for the first half of 2021 was approximately CNY 2,550.85 million, showing a significant increase compared to the previous year[156]. - Net profit for the first half of 2021 was CNY 156.82 million, representing a year-on-year increase of 50.5% from CNY 104.08 million in the first half of 2020[140]. - The total comprehensive income for the first half of 2021 was CNY 153.45 million, compared to CNY 103.73 million in the first half of 2020, reflecting a growth of 47.9%[140]. Cash Flow and Assets - The net cash flow from operating activities was -¥11,621,056.82, compared to ¥62,522,346.01 in the previous year, indicating a significant change[19]. - As of the end of the reporting period, inventory increased by 50.91% to CNY 644,582,594.94, reflecting business expansion and increased stocking[51]. - The company's total assets at the end of the reporting period amounted to CNY 2,293.82 million, reflecting a stable asset base[156]. - The cash balance was 260,408,652.08 RMB at the end of the first half of 2021, compared to 237,463,826.36 RMB at the end of the first half of 2020, indicating a year-over-year increase of about 9.4%[149]. - The total liabilities were CNY 1,029.71 million, which is a critical factor in assessing the company's leverage[156]. Research and Development - The research and development expenses rose by 42.63% to ¥21,982,929.74, up from ¥15,413,050.93, indicating a significant investment in product innovation[48]. - Research and development expenses for the first half of 2021 amounted to CNY 12.24 million, slightly up from CNY 11.32 million in the first half of 2020[143]. Market Position and Strategy - The company focuses on the research, manufacturing, and sales of flavors, fragrances, and food ingredients, with applications in various industries including dairy, beverages, and personal care[25]. - The domestic flavor and fragrance market is in a growth phase, with increasing competition and market saturation[33]. - The company has established itself as a well-known player in the domestic flavor and fragrance industry, particularly in food-grade flavoring[35]. - The production model is based on "sales-driven production," ensuring that production aligns with customer orders and market demand[28]. - The sales strategy combines direct sales and distribution, enhancing market penetration and customer service[29]. Environmental and Regulatory Compliance - The company achieved ISO14001:2015 environmental management certification and has established a comprehensive set of environmental protection measures, ensuring compliance with national discharge standards for "three wastes" during the reporting period[63]. - The company reported that its total emissions of COD, ammonia nitrogen, nitrogen oxides, and sulfur dioxide were within the national standards, with no instances of exceeding limits[73][75]. - The company has implemented noise reduction measures, including the use of low-noise equipment and sound insulation around noise sources[79]. - The company has established an emergency response plan for environmental incidents, which has been registered with the local environmental bureau[83]. - The company has not faced any administrative penalties for environmental issues during the reporting period[90]. Shareholder and Corporate Governance - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[5]. - The company held its first extraordinary general meeting on February 1, 2021, with 140 shareholders representing 48.75% of the total shares present[67]. - The company held its annual general meeting on June 2, 2021, with 8 shareholders representing 45.42% of the total shares present[68]. - The controlling shareholder has issued a commitment to avoid any business competition with the company and its subsidiaries, ensuring no direct or indirect engagement in similar businesses[109]. - There are no significant lawsuits or arbitration matters during the reporting period, indicating a stable legal standing for the company[111]. Financial Position and Liabilities - The total amount of guarantees provided by the company during the reporting period (excluding guarantees to subsidiaries) is CNY 360 million[114]. - The total guarantee balance at the end of the reporting period (excluding guarantees to subsidiaries) is CNY 360 million, which accounts for 15.69% of the company's net assets[114]. - The company has not experienced any changes in its share capital structure during the reporting period[118]. - The company has not issued any convertible bonds or corporate bonds during the reporting period[126]. Future Outlook - The company plans to focus on expanding its market presence and developing new products in the upcoming quarters[157]. - The company recognizes the need for continuous innovation and business expansion to remain competitive in the market[62].

Financial Performance - Operating revenue rose by 41.18% to CNY 820,217,652.95, driven by growth in the ingredient and flavor business[13] - Net profit attributable to shareholders increased by 78.86% to CNY 60,712,339.14, reflecting strong business growth and improved gross margin[6] - Basic earnings per share increased by 78.79% to CNY 0.1897[6] - Total revenue for Q1 2021 reached CNY 820,217,652.95, a 41.2% increase from CNY 580,961,647.55 in Q1 2020[24] - Operating profit for Q1 2021 was CNY 98,451,250.12, up 100% from CNY 49,195,601.90 in Q1 2020[25] - Net profit for Q1 2021 was CNY 77,275,028.93, representing a 97.8% increase compared to CNY 39,008,607.17 in Q1 2020[25] - Earnings per share for Q1 2021 were CNY 0.1897, compared to CNY 0.1061 in Q1 2020, reflecting an increase of 78.3%[26] Asset and Liability Management - Total assets increased by 5.91% to CNY 2,955,670,199.97 compared to the end of the previous year[6] - Total liabilities were CNY 427,802,197.28, compared to CNY 365,125,320.45 at the end of 2020, marking an increase of about 17.2%[17] - The company's equity attributable to shareholders rose to CNY 2,283,372,010.06 from CNY 2,223,442,925.73, a growth of approximately 2.7%[17] - Total assets as of the end of Q1 2021 amounted to CNY 2,363,284,260.69, up from CNY 2,271,931,238.95 at the end of Q1 2020[22] - Total liabilities increased to CNY 184,469,006.39 in Q1 2021 from CNY 122,267,647.70 in Q1 2020, marking a 50.8% rise[22] Cash Flow and Investments - Net cash flow from operating activities surged by 1,892.55% to CNY 33,170,334.41, attributed to increased cash receipts from sales[13] - Cash flow from operating activities for Q1 2021 was RMB 33,170,334.41, a significant increase from RMB 1,664,720.96 in Q1 2020[33] - The company received RMB 840,000,000.00 from investment recoveries in Q1 2021, up from RMB 525,800,000.00 in Q1 2020[34] - The total cash outflow from investing activities in Q1 2021 was RMB 918,930,558.31, compared to RMB 515,510,311.51 in Q1 2020[34] - The net cash flow from financing activities in Q1 2021 was RMB 10,213,992.60, recovering from a negative cash flow of RMB -2,042,541.65 in Q1 2020[34] Shareholder and Market Engagement - The number of shareholders reached 21,531, indicating a broadening investor base[9] - The company plans to continue expanding its market presence and investing in new product development[11] - Future outlook remains positive with expectations of continued market expansion and potential strategic acquisitions to enhance growth[15] Research and Development - Research and development expenses for Q1 2021 were CNY 11,418,098.99, up from CNY 8,746,058.96 in Q1 2020, indicating a 30.4% increase[24] - Research and development expenses increased to RMB 7,550,990.44 in Q1 2021, up from RMB 6,870,733.68 in Q1 2020, indicating a focus on innovation[29] Inventory and Current Assets - Current assets totaled CNY 2,128,009,984.16, up from CNY 2,018,199,604.44 at the end of 2020, indicating an increase of about 5.5%[15] - Inventory increased to CNY 534,178,420.15 from CNY 427,131,822.22, reflecting a rise of approximately 25%[15] - Accounts receivable increased to CNY 483,839,600.90 from CNY 472,899,155.55, showing a growth of approximately 2.9%[15] Financial Ratios and Returns - The weighted average return on equity improved by 1.09 percentage points to 2.69%[6]

Financial Performance - The company's operating revenue for 2020 was approximately ¥2.67 billion, representing a year-on-year increase of 7.82% compared to ¥2.47 billion in 2019[25]. - Net profit attributable to shareholders for 2020 was approximately ¥170.24 million, an increase of 12.15% from ¥151.79 million in 2019[25]. - The basic earnings per share for 2020 was ¥0.5320, reflecting a growth of 12.16% compared to ¥0.4743 in 2019[26]. - The weighted average return on equity increased to 7.88% in 2020, up from 7.43% in 2019, marking an increase of 0.45 percentage points[26]. - 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[25]. - Total assets at the end of 2020 were approximately ¥2.79 billion, a 6.14% increase from ¥2.63 billion at the end of 2019[25]. - The company reported a quarterly revenue of ¥710.55 million in Q4 2020, contributing to a total annual revenue growth[28]. - The company’s net profit in Q2 2020 was approximately ¥59.03 million, showing strong performance during that quarter[28]. Dividend Policy - The company plans to distribute a cash dividend of 1.60 RMB per 10 shares to all shareholders, totaling 51,200,000 RMB (including tax) based on a total share capital of 320,000,000 shares as of December 31, 2020[7]. - The net profit attributable to ordinary shareholders for 2020 was 170,235,002.52 CNY, resulting in a profit distribution ratio of 30.08%[136]. - In 2019, the company distributed cash dividends of 48,000,000.00 CNY, with a per-share dividend of 1.50 CNY, and a profit distribution ratio of 31.62%[136]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[137]. Compliance and Governance - The company reported no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[9]. - The company has not violated decision-making procedures for external guarantees, maintaining compliance with regulations[10]. - The company received a standard unqualified audit report from its accounting firm, affirming the accuracy of its financial statements[6]. - The company’s board of directors and supervisory board members confirmed the authenticity and completeness of the annual report[4]. - The company has not faced any issues with more than half of the directors being unable to guarantee the authenticity of the annual report[10]. Market Position and Strategy - The company continues to focus on the research, development, and sales of flavors, fragrances, and food ingredients, with no changes in its main business operations during the reporting period[35]. - The company has established a "distribution + direct sales" model for its spice, flavor, and food ingredient sales, enhancing product reach and customer service[39]. - The company maintains a competitive advantage in the industrial chocolate and jam sectors, primarily through direct sales to food processing manufacturers[40]. - The domestic spice, flavor, and food ingredient market is in a growth phase, with increasing competition and market saturation[43]. - The company has a significant market position in the domestic industrial chocolate sector, ranking among the top producers in terms of capacity and output[46]. Research and Development - The company has a strong research and development capability supported by a Japanese team, driving product innovation and quality improvement[53]. - Research and development expenses rose by 3.08% to 34 million RMB, reflecting ongoing investment in new product development[69]. - The number of R&D personnel is 130, representing 10.98% of the total workforce[72]. - The company continues to enhance the research and application of flavor and fragrance products, focusing on the development of functional flavors and improving green synthesis processes[120]. Environmental Compliance - The company has established an environmental management system and is committed to compliance with environmental regulations, although stricter future standards may pose challenges[131]. - The company has a wastewater treatment capacity of 300 tons per day, ensuring effective management of production and emergency wastewater[170]. - The company achieved an organic compound removal rate of over 99.9% through its advanced waste gas treatment system[170]. - The company has a total nitrogen oxide discharge of 0.428 tons, which is below the regulatory limit of 50 mg/m3, indicating compliance with environmental standards[168]. - The company has maintained a consistent environmental policy focused on resource conservation and pollution prevention, achieving a balance between economic and environmental goals[170]. Risks and Challenges - The company acknowledges risks related to the ongoing COVID-19 pandemic, which may impact its international trade and overall performance[126]. - The company faces increasing scrutiny regarding food safety, which could affect its brand image and sales if any issues arise[127]. - The company recognizes the risk of intensified market competition, particularly from larger enterprises, and the need for continuous innovation[130]. Shareholder Information - 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]. - Shanghai Xinyu Investment Management Co., Ltd. reduced its holdings by 5,600,000 shares, now holding 16,800,000 shares (5.25%)[189].

Financial Performance - Operating income for the first nine months rose by 4.77% to CNY 1,957,702,539.47 compared to the same period last year[7]. - Net profit attributable to shareholders increased by 11.60% to CNY 136,459,228.09 compared to the same period last year[7]. - Total operating revenue for Q3 2020 reached ¥671,856,822.63, an increase from ¥645,805,498.12 in Q3 2019, representing a growth of approximately 4.1%[25]. - Net profit for Q3 2020 was ¥48,945,612.57, down from ¥56,014,053.04 in Q3 2019, reflecting a decrease of approximately 12.5%[26]. - The total profit for the first three quarters of 2020 was CNY 126.40 million, a decrease of 14.4% from CNY 147.78 million in the same period of 2019[29]. Assets and Liabilities - Total assets increased by 0.80% to CNY 2,650,364,143.39 compared to the end of the previous year[7]. - Total liabilities decreased to CNY 266,054,610.54 from CNY 337,115,789.51, a reduction of approximately 21.06%[18]. - Total non-current assets rose to CNY 724,850,300.27 from CNY 667,500,606.20, indicating an increase of about 8.58%[17]. - The company’s total assets as of September 30, 2020, were CNY 2,650,364,143.39, a slight increase from CNY 2,629,345,445.78 as of December 31, 2019[18]. - The total liabilities increased to ¥158,427,911.02 in Q3 2020 from ¥117,100,133.97 in Q3 2019, showing a significant rise of approximately 35.3%[23]. Shareholder Equity - Net assets attributable to shareholders increased by 4.02% to CNY 2,189,641,975.66 compared to the end of the previous year[7]. - Total equity increased to CNY 2,384,309,532.85 from CNY 2,292,229,656.27, reflecting an increase of about 4.01%[18]. - The total equity as of Q3 2020 was ¥2,116,404,136.74, compared to ¥2,050,570,362.20 in Q3 2019, which is an increase of about 3.2%[23]. Cash Flow - Net cash flow from operating activities decreased by 48.80% to CNY 126,244,465.87 compared to the same period last year[7]. - The net cash flow from operating activities for the first three quarters of 2020 was ¥126.24 million, a decrease of 48.8% compared to ¥246.59 million in the same period of 2019[33]. - The company reported a net cash outflow from financing activities of ¥55.09 million in the first three quarters of 2020, compared to a net outflow of ¥17.22 million in the same period of 2019[34]. Investment Activities - Cash inflow from investment activities in the first three quarters of 2020 was approximately ¥1.73 billion, significantly higher than ¥61.31 million in the same period of 2019[34]. - The cash inflow from the recovery of investments was approximately ¥1.72 billion in the first three quarters of 2020, compared to ¥59 million in the same period of 2019, indicating a substantial increase[36]. - The cash outflow for purchasing fixed assets and intangible assets was approximately ¥91.73 million in the first three quarters of 2020, slightly higher than ¥87 million in the same period of 2019[34]. Operational Efficiency - The weighted average return on net assets increased by 0.34 percentage points to 6.35%[8]. - Basic and diluted earnings per share increased by 11.60% to CNY 0.4264[8]. - The gross profit margin for the first three quarters of 2020 was approximately 33.3%, compared to 30.7% in the same period of 2019[29]. Research and Development - Research and development expenses for Q3 2020 were ¥9,236,643.37, slightly up from ¥9,041,218.65 in Q3 2019[25]. - Research and development expenses for Q3 2020 were CNY 4.12 million, a decrease of 30.8% from CNY 5.96 million in Q3 2019[29]. Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[24]. - The company plans to continue focusing on product innovation and market expansion in the upcoming quarters[30].

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].