Financial Performance - The company's operating revenue for Q3 2021 was CNY 601,713,613.19, representing a year-on-year increase of 35.30%[4] - The net profit attributable to shareholders for Q3 2021 was CNY 42,358,559.22, a decrease of 3.40% compared to the same period last year[4] - The net profit after deducting non-recurring gains and losses for Q3 2021 was CNY 40,105,030.16, down by 8.08% year-on-year[4] - Total operating revenue for the first three quarters of 2021 reached RMB 1,575,924,884.71, a significant increase of 42% compared to RMB 1,111,140,145.23 in the same period of 2020[18] - The company reported a net profit margin improvement, with net profit for the first three quarters of 2021 expected to be higher than in the same period of 2020, although specific figures were not disclosed[18] - In Q3 2021, the company's net profit was CNY 165,938,727.86, slightly down from CNY 166,157,482.49 in Q3 2020, representing a decrease of 0.13%[19] - The operating profit for Q3 2021 was CNY 205,823,269.65, an increase of 4.0% compared to CNY 197,251,570.45 in the same period last year[19] - Basic and diluted earnings per share for Q3 2021 were both CNY 0.77, an increase from CNY 0.72 in Q3 2020[20] - The company’s total comprehensive income for Q3 2021 was CNY 165,840,518.73, slightly down from CNY 166,157,482.49 in Q3 2020[20] Assets and Liabilities - The total assets at the end of Q3 2021 amounted to CNY 3,514,310,412.04, reflecting a growth of 14.54% compared to the end of the previous year[5] - As of September 30, 2021, total assets were RMB 3,514,310,412.04, an increase from RMB 3,068,246,382.92 at the end of 2020[16] - Current assets totaled RMB 2,131,105,836.25, compared to RMB 1,820,541,395.14 at the end of 2020, reflecting a growth of 17%[14] - The company's total liabilities reached RMB 894,030,770.40, compared to RMB 547,970,522.78 at the end of 2020, representing a rise of 63%[17] - The company's total liabilities increased to CNY 1,066,649,277.12 as of the end of Q3 2021, compared to CNY 1,231,846,840.72 at the end of Q3 2020[23] - Shareholders' equity stood at CNY 2.520 billion, reflecting a stable financial position[28] Cash Flow - The net cash flow from operating activities for the year-to-date period was CNY 187,884,084.63, an increase of 55.71% year-on-year[4] - The net cash flow from operating activities for the first three quarters of 2021 was CNY 187,884,084.63, compared to CNY 120,659,686.55 in the same period of 2020, reflecting a growth of 55.6%[23] - The company reported a net cash outflow from investing activities of CNY 280,603,231.11 in the first three quarters of 2021, worsening from a net outflow of CNY 231,137,956.74 in the same period of 2020[23] - The company's cash and cash equivalents decreased to RMB 999,534,810.60 from RMB 1,082,548,233.21 at the end of 2020, a decline of approximately 7.7%[14] - The cash and cash equivalents at the end of Q3 2021 were CNY 920,751,652.80, down from CNY 1,006,117,961.80 at the end of Q3 2020[23] - The company’s cash and cash equivalents were CNY 1.083 billion, ensuring liquidity for operations[26] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,887[10] - The top ten shareholders held a combined 40% of the shares, with the largest shareholder owning 72,000,000 shares[10] Research and Development - Research and development expenses rose to CNY 84,382,778.59 in Q3 2021, up from CNY 60,652,667.96 in Q3 2020, marking an increase of 39.0%[19] Inventory and Management - Inventory as of September 30, 2021, was RMB 233,949,402.20, up from RMB 220,692,058.37, indicating an increase of approximately 6%[14] - The company has a total of CNY 220.69 million in inventory, indicating a solid inventory management strategy[26] Other Financial Metrics - The weighted average return on equity for Q3 2021 was 2.02%, a decrease of 0.21 percentage points from the previous year[5] - The company is undergoing a re-certification process for its subsidiary's high-tech enterprise qualification, which may impact net profit due to tax rate adjustments[5] - The company has recognized a deferred tax asset of CNY 5.01 million, which may benefit future tax liabilities[27] - The company’s goodwill and intangible assets were valued at CNY 132.81 million, reflecting its investment in brand and technology[27] - The company has implemented new accounting policies effective January 1, 2021, impacting financial reporting[29]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥974,211,271.52, representing a 46.19% increase compared to ¥666,408,634.15 in the same period last year[19]. - The net profit attributable to shareholders was ¥96,919,247.98, which is a 12.50% increase from ¥86,154,056.74 in the previous year[19]. - The net cash flow from operating activities increased significantly by 150.42%, amounting to ¥115,714,872.55 compared to ¥46,207,800.28 in the same period last year[19]. - Basic earnings per share for the first half of 2021 were ¥0.54, up 12.50% from ¥0.48 in the same period last year[20]. - The weighted average return on equity increased to 4.69%, up 0.40 percentage points from 4.29% in the previous year[20]. - The company achieved a consolidated revenue of ¥974,211,271.52, representing a year-on-year growth of 46.19%[32]. - The net profit attributable to shareholders was ¥96,919,247.98, reflecting a year-on-year increase of 12.50%[32]. - The company's R&D expenses increased by 29.91% to ¥54,188,656.77, indicating a strong commitment to product development[35]. - The company plans to issue convertible bonds not exceeding ¥100 million to support the construction of the Ningxia project, which has been approved by the board and shareholders[32]. - The company reported a net profit distribution to shareholders of approximately 118.80 million, indicating a strong return on investment[138]. Assets and Liabilities - The total assets of the company at the end of the reporting period were ¥3,322,454,351.69, an increase of 8.29% from ¥3,068,246,382.92 at the end of the previous year[19]. - The net assets attributable to shareholders increased by 2.11%, reaching ¥2,071,124,732.21 compared to ¥2,028,406,562.76 at the end of the previous year[19]. - Total liabilities increased to ¥769,947,967.12 from ¥547,970,522.78, which is an increase of around 40.3%[113]. - The company's equity attributable to shareholders reached ¥2,071,124,732.21, up from ¥2,028,406,562.76, reflecting a growth of about 2.1%[113]. - The total assets at the end of the current period were approximately 2,552.51 million, showing growth in the company's asset base[139]. - The total liabilities at the end of the current period were approximately 1,063 million, maintaining a stable leverage ratio[139]. Market and Industry Position - The company primarily engages in the research, production, and sales of pesticides, flame retardants, and other fine chemical products, including key products like Bacillus thuringiensis and flame retardant decabromodiphenyl ether[25][26]. - The pesticide industry is supported by recent regulations aimed at improving agricultural productivity and ensuring food safety, which enhances the market environment for the company's products[27]. - The company has a strong brand presence in the pesticide sector, recognized as a leading manufacturer with its "Suli" brand being awarded as a famous trademark in China[28]. - The company has maintained a stable customer base, with many clients being industry leaders, ensuring consistent demand for its products[28]. - The company’s export tax rebate for certain products has been increased to 9%, enhancing its competitiveness in international markets[27]. Research and Development - The company has been recognized as a high-tech enterprise and has established research centers, contributing to its technological advancements in pesticide and flame retardant production[29]. - The company's R&D expenses increased to CNY 54,188,656.77, up 29.9% from CNY 41,712,899.92 in the first half of 2020[120]. - Research and development expenses for the first half of 2021 amounted to CNY 7,861,818.59, an increase of 17.3% from CNY 6,728,550.31 in the same period of 2020[124]. Environmental Compliance - The company emphasizes safety and environmental protection, having obtained ISO14001 and OHSAS18001 certifications, but faces risks from stricter regulations and potential penalties[50]. - The company is classified as a key pollutant discharge unit and holds a valid discharge permit until April 2023, indicating ongoing environmental compliance efforts[59]. - The company reported a total COD emission of 1.237 tons per year, with a concentration of 199.17 mg/m³, which is compliant with the standards[60]. - The company has implemented a continuous monitoring system for volatile organic compounds, with emissions recorded at 0.607 tons per year[61]. - The company has made significant investments in environmental protection measures, including the use of activated carbon adsorption for VOCs[70]. Financial Governance - The company has not proposed any profit distribution or capital reserve transfer for the half-year period[57]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period, reflecting good financial governance[90]. - The company has not engaged in any major guarantees or violations during the reporting period, ensuring compliance with regulations[90]. - The total amount of related party transactions during the reporting period was RMB 116,046,095.22, with significant transactions including sales of agricultural products[93]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period is 10,406[102]. - The largest shareholder, Miao Jinfeng, holds 72,000,000 shares, representing 40.00% of the total shares[104]. - The company has not experienced any changes in its share capital structure during the reporting period[101]. - The company maintains a 76% ownership stake in its subsidiary after the capital increase, indicating a strong control over its investments[94]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[136]. - The company is focused on enhancing shareholder value through strategic investments and operational efficiencies[136].

[I. Important Notice](index=3&type=section&id=I.%20Important%20Notice) This section provides a declaration of the report's authenticity and the responsibilities of the management [1.1 Declaration of Authenticity of Quarterly Report](index=3&type=section&id=1.1%20Declaration%20of%20Authenticity%20of%20Quarterly%20Report) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility for its content, which remains unaudited - Company management guarantees the truthfulness, accuracy, and completeness of this quarterly report and assumes legal responsibility[7](index=7&type=chunk) - Company head Miao Jinfeng, chief accountant Li Gang, and head of accounting department Li Gang guarantee the truthfulness, accuracy, and completeness of the financial statements[7](index=7&type=chunk) - This company's Q1 2021 report is unaudited[7](index=7&type=chunk) [II. Company Basic Information](index=3&type=section&id=II.%20Company%20Basic%20Information) This section details the company's key financial performance, non-recurring gains and losses, and shareholder structure [2.1 Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) In Q1 2021, the company's operating revenue grew by 28.61%, but net profit attributable to shareholders decreased by 2.91%, with operating cash flow turning negative, partly due to a temporary tax rate increase for a subsidiary Key Financial Data for Q1 2021 | Metric | Current Period | Prior Year Same Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 415,724,936.72 | 323,243,357.61 | 28.61 | | Net Profit Attributable to Shareholders (RMB) | 37,989,221.24 | 39,127,115.26 | -2.91 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 37,686,464.68 | 40,162,001.52 | -6.16 | | Net Cash Flow from Operating Activities (RMB) | -84,746,621.86 | 5,131,035.84 | N/A | | Basic Earnings Per Share (RMB/share) | 0.21 | 0.22 | -4.55 | | Weighted Average Return on Net Assets (%) | 1.86 | 1.97 | Decrease of 0.11 percentage points | - Subsidiary Baili Chemical's high-tech enterprise qualification expired at the end of 2020 and is pending re-certification, leading to a temporary **25%** corporate income tax rate and a **RMB 3.9946 million** impact on current net profit[8](index=8&type=chunk) [2.1.1 Non-recurring Gains and Losses Items and Amounts](index=4&type=section&id=2.1.1%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **RMB 302,756.56**, primarily from non-current asset disposal, government grants, and other non-operating income/expenses Details of Non-recurring Gains and Losses Items | Item | Current Period Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 224,750.42 | | Government Grants Included in Current Profit/Loss | 248,676.25 | | Gains/Losses from Entrusted Investments or Asset Management | 55,431.67 | | Other Non-operating Income and Expenses | -56,823.06 | | Impact on Minority Interests (After Tax) | -53,618.21 | | Income Tax Impact | -115,660.51 | | **Total** | **302,756.56** | [2.2 Total Number of Shareholders, Top Ten Shareholders, and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of the End of the Reporting Period](index=5&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had **10,486 shareholders**, with the top ten holding over **75%** of shares, indicating a relatively concentrated ownership structure, primarily controlled by Miao Jinfeng and related family members - As of the end of the reporting period, the company had **10,486 shareholders**[12](index=12&type=chunk) Top Ten Shareholders' Shareholding Information | Shareholder Name | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | | Miao Jinfeng | 72,000,000 | 40.00 | | Ningbo Meishan Bonded Port Area Gusheng Investment Co., Ltd | 18,000,000 | 10.00 | | Wang Jingli | 9,000,000 | 5.00 | | Wang Huanxing | 9,000,000 | 5.00 | | Wang Jingjuan | 9,000,000 | 5.00 | | Wang Jingjiao | 9,000,000 | 5.00 | | Zheng Zuoyin | 988,000 | 0.55 | | Huang Weide | 896,852 | 0.50 | | Lin Sen | 827,204 | 0.46 | | Huang Shu | 800,460 | 0.44 | - Key shareholders have related party relationships: Wang Huanxing is Miao Jinfeng's spouse, and Wang Jingli, Wang Jingjiao, and Wang Jingjuan are Miao Jinfeng's daughters; Miao Jinfeng and Wang Huanxing jointly hold equity in Ningbo Meishan Bonded Port Area Gusheng Investment Co., Ltd[13](index=13&type=chunk) [III. Significant Events](index=6&type=section&id=III.%20Significant%20Events) This section analyzes significant changes in the company's key financial statement items and indicators, along with their underlying reasons [3.1 Significant Changes in the Company's Key Financial Statement Items and Financial Indicators and Their Reasons](index=6&type=section&id=3.1%20Significant%20Changes%20in%20the%20Company's%20Key%20Financial%20Statement%20Items%20and%20Financial%20Indicators%20and%20Their%20Reasons) During the reporting period, several financial statement items showed significant changes, including substantial increases in accounts receivable financing and notes payable due to bill transaction volume, over **40%** growth in operating costs driven by sales scale and structure, a sharp decrease in non-operating expenses due to prior year's large donation, and negative operating cash flow primarily from increased cash payments for goods and rising operating receivables Major Balance Sheet Changes and Reasons | Item | Period-end Balance (RMB) | Change from Period-start (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 277,616,921.26 | 34.95 | Increase in bills received and decrease in bill payments | | Prepayments | 13,630,750.45 | -31.14 | Decrease in prepayments to suppliers | | Notes Payable | 161,366,335.53 | 88.20 | Increase in the volume of bank acceptance bills issued | | Contract Liabilities | 9,850,465.49 | -54.14 | Decrease in advance receipts from customers | | Employee Compensation Payable | 18,408,353.46 | -42.73 | Bonuses and salaries accrued last year were paid in this period | | Right-of-Use Assets / Lease Liabilities | 7,655,391.64 / 7,591,732.57 | N/A | Due to the adoption of new lease accounting standards in 2021 | Major Income Statement Changes and Reasons | Item | Current Period Amount (RMB) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Operating Cost | 318,150,817.05 | 40.52 | Growth in sales volume and changes in sales structure | | Other Income | 222,676.25 | -78.75 | Decrease in government grants received | | Investment Income | 829,897.12 | 165.27 | Increase in net profit of joint venture Secom Wuxi | | Non-operating Expenses | 60,000.00 | -97.46 | Prior year had a **RMB 2.34 million** anti-epidemic donation | | Income Tax Expense | 13,774,741.97 | 63.98 | Temporary increase in income tax rate for subsidiary Baili Chemical | Major Cash Flow Statement Changes and Reasons | Item | Current Period Amount (RMB) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Cash Paid for Goods and Services | 263,111,495.75 | 42.18 | Increase in material procurement scale and proportion of cash purchases | | Net Cash Flow from Operating Activities | -84,746,621.86 | N/A | Increase in cash paid for goods, increase in operating receivables, etc | | Cash Paid for Acquisition of Long-term Assets | 45,087,736.72 | -54.00 | Decrease in the scale of project payments required | | Cash Paid for Investments | 84,000,000.00 | 180.00 | Increase in the scale of wealth management using idle self-owned funds | [IV. Appendix](index=9&type=section&id=IV.%20Appendix) This section includes the company's unaudited financial statements for the first quarter of 2021 and details on the impact of adopting new lease accounting standards [4.1 Financial Statements](index=9&type=section&id=4.1%20Financial%20Statements) This chapter presents the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2021 [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, the company's total assets were **RMB 3.098 billion**, a **0.98%** increase from the beginning of the period, with total liabilities at **RMB 534 million** and equity attributable to parent company owners at **RMB 2.067 billion**, up **1.89%** from period-start Key Items from Consolidated Balance Sheet (March 31, 2021) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 3,098,436,761.01 | | Total Liabilities | 533,711,621.80 | | Total Equity Attributable to Parent Company Owners | 2,066,738,648.84 | | Total Owners' Equity | 2,564,725,139.21 | [Parent Company Balance Sheet](index=11&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2021, the parent company's total assets were **RMB 1.351 billion**, total liabilities were **RMB 178 million**, and owners' equity was **RMB 1.174 billion** Key Items from Parent Company Balance Sheet (March 31, 2021) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 1,351,318,411.81 | | Total Liabilities | 177,777,794.68 | | Total Owners' Equity | 1,173,540,617.13 | [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, the company achieved total operating revenue of **RMB 416 million**, a **28.6%** year-over-year increase, with operating profit at **RMB 57.75 million**, down **10.7%**, and net profit attributable to parent company shareholders at **RMB 37.99 million**, a **2.9%** decrease Key Items from Consolidated Income Statement (Q1 2021) | Item | 2021 Q1 (RMB) | 2020 Q1 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 415,724,936.72 | 323,243,357.61 | | Operating Profit | 57,750,349.83 | 64,653,596.17 | | Total Profit | 58,028,760.29 | 62,363,189.71 | | Net Profit | 44,254,018.32 | 53,962,869.81 | | Net Profit Attributable to Parent Company Shareholders | 37,989,221.24 | 39,127,115.26 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2021, the parent company's operating revenue reached **RMB 45.24 million**, a **145.6%** year-over-year increase, achieving a net profit of **RMB 10.64 million** compared to a net loss of **RMB 1.20 million** in the prior year Key Items from Parent Company Income Statement (Q1 2021) | Item | 2021 Q1 (RMB) | 2020 Q1 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 45,243,286.90 | 18,422,294.82 | | Operating Profit | 14,048,082.76 | 1,288,848.54 | | Net Profit | 10,636,807.91 | -1,196,336.40 | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2021, net cash flow from operating activities was **-RMB 84.75 million** (vs. **RMB 5.13 million** in prior year), net cash flow from investing activities was **-RMB 98.56 million** due to increased investments, and period-end cash and cash equivalents totaled **RMB 885 million** Key Items from Consolidated Cash Flow Statement (Q1 2021) | Item | 2021 Q1 (RMB) | 2020 Q1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -84,746,621.86 | 5,131,035.84 | | Net Cash Flow from Investing Activities | -98,556,670.72 | -127,800,360.48 | | Net Cash Flow from Financing Activities | 0.00 | 0.00 | | Net Increase in Cash and Cash Equivalents | -181,721,879.66 | -119,754,689.48 | [Parent Company Cash Flow Statement](index=19&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2021, the parent company's net cash flow from operating activities was **-RMB 24.04 million** (vs. **RMB 33.71 million** in prior year), net cash flow from investing activities was **-RMB 49.42 million**, and period-end cash and cash equivalents totaled **RMB 227 million** Key Items from Parent Company Cash Flow Statement (Q1 2021) | Item | 2021 Q1 (RMB) | 2020 Q1 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -24,035,681.30 | 33,707,011.75 | | Net Cash Flow from Investing Activities | -49,418,077.00 | -122,458,949.76 | | Net Increase in Cash and Cash Equivalents | -73,306,980.98 | -88,640,157.03 | [4.2 Adjustments to Financial Statements at the Beginning of the First Year of Adoption of New Lease Accounting Standards from 2021](index=20&type=section&id=4.2%20Adjustments%20to%20Financial%20Statements%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Adoption%20of%20New%20Lease%20Accounting%20Standards%20from%202021) Effective January 1, 2021, the company adopted new lease accounting standards, adjusting its financial statements at the initial application date by recognizing right-of-use assets and lease liabilities in both consolidated and parent company balance sheets, with no impact on opening retained earnings - The company adopted new lease accounting standards effective January 1, 2021, adjusting its financial statements accordingly, a change approved by the Board of Directors and Supervisory Board[44](index=44&type=chunk)[49](index=49&type=chunk) Impact of New Lease Accounting Standards on Consolidated Balance Sheet Opening Balances | Item | Before Adjustment (RMB) | After Adjustment (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0.00 | 8,165,321.01 | 8,165,321.01 | | Total Assets | 3,068,246,382.92 | 3,076,411,703.93 | 8,165,321.01 | | Lease Liabilities | 0.00 | 8,165,321.01 | 8,165,321.01 | | Total Liabilities | 547,970,522.78 | 556,135,843.79 | 8,165,321.01 | Impact of New Lease Accounting Standards on Parent Company Balance Sheet Opening Balances | Item | Before Adjustment (RMB) | After Adjustment (RMB) | Adjustment Amount (RMB) | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0.00 | 4,776,353.42 | 4,776,353.42 | | Total Assets | 1,341,634,149.55 | 1,346,410,502.97 | 4,776,353.42 | | Lease Liabilities | 0.00 | 4,776,353.42 | 4,776,353.42 | | Total Liabilities | 179,252,750.15 | 184,029,103.57 | 4,776,353.42 |

Financial Performance - In 2020, the company's operating revenue was CNY 1,558,610,029, a decrease of 14.01% compared to CNY 1,812,605,550 in 2019[22]. - The net profit attributable to shareholders was CNY 174,747,119, down 42.36% from CNY 303,187,370 in the previous year[22]. - The net cash flow from operating activities was CNY 169,057,787, representing a decline of 65.24% compared to CNY 486,332,393 in 2019[22]. - Basic earnings per share decreased to CNY 0.97, down 42.26% from CNY 1.68 in 2019[24]. - The weighted average return on equity was 8.75%, a decrease of 7.53 percentage points from 16.28% in 2019[24]. - The company reported a decrease in net profit after deducting non-recurring gains and losses to CNY 172,132,769, down 41.79% from CNY 295,707,200 in 2019[22]. - The decline in revenue and net profit was primarily due to the transition between old and new production lines, leading to reduced production and sales scale, as well as decreased product profitability due to market factors[45]. Assets and Liabilities - The total assets at the end of 2020 were CNY 3,068,246,380, an increase of 7.50% from CNY 2,854,246,340 at the end of 2019[22]. - The net assets attributable to shareholders increased to CNY 2,028,406,560, a growth of 3.48% from CNY 1,960,142,180 in 2019[22]. - The company's fixed assets increased by 117.32% to 823,745,421.72, compared to 379,048,743.98 in the previous year[63]. - The company’s accounts receivable financing increased by 294.24% to 205,724,273.25, compared to 52,181,882 in the previous year[63]. Operational Performance - The company's total revenue for Q1 was approximately CNY 323.24 million, increasing to CNY 447.47 million in Q4, representing a growth of 38.5% from Q1 to Q4[26]. - Net profit attributable to shareholders for Q1 was CNY 39.13 million, with a slight decrease to CNY 44.74 million in Q4, indicating a year-over-year fluctuation[26]. - The cash flow from operating activities showed significant improvement, rising from CNY 5.13 million in Q1 to CNY 48.40 million in Q4, reflecting a strong operational performance[26]. - The production and sales volume of the main product, Decabromodiphenyl Ether, decreased during the reporting period due to the transition from old to new production lines[42]. Market and Industry Outlook - The market for flame retardants is expanding, driven by increasing safety standards and the introduction of new, efficient, and environmentally friendly products[33]. - Recent government policies have improved export tax rebates for pesticides, which is expected to boost the company's export competitiveness[31]. - The overall industry outlook remains positive, with regulatory support aimed at enhancing agricultural productivity and environmental sustainability[33]. - The company is actively pursuing new product development in response to market demands, particularly in the agricultural and chemical sectors[34]. Research and Development - The main business includes the R&D, production, and sales of pesticides and flame retardants, with a focus on enhancing product quality and expanding market reach[31]. - The company has been recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and Technology, highlighting its commitment to technology research and development[36]. - The company obtained 4 invention patents, 16 utility model patents, and 4 design patents during the reporting period, enhancing its R&D capabilities[84]. - Research and development expenses totaled 85,975,117.94, representing 5.52% of total revenue[60]. Environmental Compliance - The company has implemented measures to ensure that all reported emissions are within the legal limits, with no exceedances noted for any pollutants[150]. - The company is committed to environmental compliance and sustainability in its operations[152][153]. - The company has implemented a hazardous waste management plan approved by environmental authorities, ensuring proper disposal of hazardous waste through qualified third-party units[158]. - The company has established a shared rainwater outlet with online monitoring for pH and COD, connected to the local environmental authority[157]. Strategic Initiatives - The company aims to enhance resource utilization and reduce costs through its integrated supply chain, improving overall profitability[39]. - The company is focusing on the development of environmentally friendly pesticide products as part of its strategic direction[70]. - The company plans to enhance its long-term strategic cooperation with internationally renowned pharmaceutical companies through the establishment of a new CDMO service[44]. - The company is transitioning from pure pesticide production to providing application services and integrated pest control packages, adapting to modern agricultural practices[114]. Shareholder and Governance - The total number of ordinary shareholders at the end of the reporting period was 10,575, a decrease from 10,728 at the end of the previous month[172]. - The largest shareholder, Miao Jinfeng, holds 72,000,000 shares, representing 40.00% of the total shares[174]. - The company has established a governance structure that complies with the Company Law and the Securities Law, ensuring effective decision-making and operational independence[199]. - The company has committed to maintaining a strict cash dividend policy, ensuring that dividends are distributed in accordance with its articles of association[126].

Financial Performance - Net profit attributable to shareholders was RMB 130,004,429.80, a decrease of 46.56% year-on-year[9] - Operating revenue for the first nine months was RMB 1,111,140,145.23, down 19.65% from the same period last year[9] - Basic earnings per share decreased to RMB 0.72, down 46.67% from RMB 1.35 in the same period last year[10] - The weighted average return on net assets was 6.52%, a decrease of 6.63 percentage points compared to the previous year[9] - The company reported a loss of RMB 2,396,447.62 from other operating expenses during the reporting period[11] - Revenue from sales of goods and services decreased by 49.17% to ¥722.16 million, reflecting a decline in income scale[16] - The company anticipates a potential decline in cumulative net profit compared to the previous year due to inventory digestion and ongoing pandemic effects[17] - The total comprehensive income attributable to the parent company for the first three quarters of 2020 was CNY 130,004,429, down 15.38% from CNY 153,261,665 in the same period of 2019[38] Assets and Liabilities - Total assets at the end of the reporting period reached RMB 2,956,379,863.03, an increase of 3.58% compared to the end of the previous year[9] - Current assets decreased to CNY 1,729,364,781.20 from CNY 1,843,121,421.66, reflecting a decline of about 6.2%[21] - Non-current assets increased to CNY 1,227,015,081.83 from CNY 1,011,124,925.74, showing a growth of approximately 21.4%[23] - Total liabilities rose to CNY 362,399,737.75 from CNY 317,014,976.67, indicating an increase of around 14.3%[24] - The company's equity attributable to shareholders increased to CNY 1,986,487,172.75 from CNY 1,960,142,189.23, a rise of about 1.3%[24] - The total liabilities increased to CNY 39,365,387.88 from CNY 30,767,119.60, reflecting a growth of 28.06%[33] - The company reported long-term equity investments of CNY 49,750,012.66 and fixed assets of CNY 379,048,743.98[46] Cash Flow - The net cash flow from operating activities was RMB 120,659,686.55, a significant decline of 73.84% compared to the previous year[9] - Cash flow from operating activities decreased by 73.84% to ¥120.66 million, impacted by lower income and cash collection rates[16] - Cash flow from operating activities for the first three quarters of 2020 was CNY 803,963,416.09, down 47.00% from CNY 1,520,285,749.71 in the same period of 2019[41] - The company reported a net cash flow from investment activities of -CNY 91,165,632.53, an improvement from -CNY 146,046,497.32 year-over-year[43] - The total cash inflow from investment activities was CNY 129,287,541.67, compared to CNY 384,170,095.12 in the previous year, indicating a decrease of approximately 66.4%[43] - The company experienced a net decrease in cash and cash equivalents of -CNY 225,728,878.92 for the third quarter of 2020, compared to -CNY 36,433,874.33 in Q3 2019[43] Shareholder Information - The total number of shareholders at the end of the reporting period was 11,107[12] - Major shareholder, Miao Jinfeng, holds 40.00% of the shares, totaling 72,000,000 shares[12] Government Support and Donations - The company received government subsidies amounting to RMB 2,583,554.44 during the reporting period[11] - The company donated ¥2.67 million for COVID-19 relief efforts, leading to a 446.48% increase in other expenses[16] Research and Development - The company plans to continue investing in R&D to enhance product offerings and maintain competitive advantage in the market[39] - Research and development expenses for Q3 2020 were CNY 18,939,768, a decrease of 12.14% compared to CNY 21,566,928 in Q3 2019[33] Market Outlook - The company plans to maintain stable market development potential for its core products, pesticides and flame retardants, despite current challenges[17]

Financial Performance - The company's operating revenue for the first half of 2020 was ¥666,408,634.15, a decrease of 30.14% compared to ¥953,949,940.55 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was ¥86,154,056.74, down 49.63% from ¥171,058,479.96 in the previous year[20]. - The net cash flow from operating activities decreased by 82.85%, amounting to ¥46,207,800.28 compared to ¥269,487,796.48 in the same period last year[20]. - The basic earnings per share for the first half of 2020 was ¥0.48, a decline of 49.47% from ¥0.95 in the same period last year[22]. - The weighted average return on equity decreased to 4.29%, down 4.97 percentage points from 9.26% in the previous year[22]. - The company achieved a consolidated revenue of CNY 666.41 million, a decrease of 30.14% year-on-year[36]. - The net profit attributable to shareholders was CNY 86.15 million, down 49.63% compared to the previous year[36]. - The company's operating cash flow decreased by 82.85%, amounting to CNY 46.21 million[38]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,933,985,670.14, an increase of 2.79% compared to ¥2,854,246,347.40 at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,942,025,922.26, a decrease of 0.92% from ¥1,960,142,189.23 at the end of the previous year[20]. - Total liabilities reached CNY 395,277,348.23, compared to CNY 317,014,976.67 at the end of 2019, reflecting an increase of about 24.7%[106]. - The total amount of guarantees provided by the company during the reporting period to subsidiaries is CNY 150 million[68]. - The total amount of guarantees at the end of the reporting period, including those to subsidiaries, is CNY 150 million, which accounts for 5.91% of the company's net assets[68]. Market and Business Operations - The decline in revenue and profit was primarily attributed to the impact of the pandemic and market conditions affecting sales volume and prices of main products[20][21]. - The company's main business includes the research, production, and sales of pesticides, flame retardants, and other fine chemical products[25]. - The pesticide segment includes active ingredients such as Bacillus thuringiensis and fungicides, while the flame retardant segment features products like decabromodiphenyl ether[26]. - The market for pesticides is expected to grow due to increasing agricultural demands and supportive government regulations, including enhanced export tax rebates[27]. - The export tax rebate for certain pesticide products has been increased to 9%, which is expected to boost the competitiveness of Chinese pesticide exports[27]. - The flame retardant market is expanding, with new, efficient, and environmentally friendly products being developed, supported by increased export tax rebates[29]. - The company has built long-term strategic partnerships with leading clients in the pesticide and flame retardant sectors, ensuring stable sales growth[30]. Research and Development - The company is committed to continuous R&D investment, maintaining a leading position in the market for its main products[31]. - Research and development expenses were CNY 41.71 million, a decrease of 14.05% year-on-year[38]. - The company aims to enhance its research and development capabilities to drive future growth and innovation[106]. Environmental Compliance - The company is committed to improving safety and environmental standards in response to new regulations in the chemical industry[37]. - The company has implemented continuous monitoring for various pollutants, ensuring compliance with environmental regulations[71]. - The company operates in the Jiangyin Port Chemical Park, focusing on the production of fine chemicals[69]. - The company has established an emergency response plan for environmental incidents, which has been filed with local environmental authorities, and conducted drills to evaluate the effectiveness of the plan[86]. - The company has implemented a comprehensive wastewater treatment process, including biochemical treatments such as anaerobic, aerobic, nitrification, and denitrification, to meet discharge standards before sending to the park's wastewater treatment plant[81]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 12,428[94]. - The largest shareholder, Miao Jinfeng, holds 72,000,000 shares, representing 40.00% of the total shares[96]. - The company reported no significant changes in its share capital structure during the reporting period[93]. - There were no new strategic investors or general corporations becoming top ten shareholders due to new share placements[97]. Financial Reporting and Accounting - The company implemented a new revenue recognition standard starting January 1, 2020, which aligns with the Ministry of Finance's regulations and does not significantly impact financial results or cash flows[90]. - The financial statements are prepared based on actual transactions and in accordance with the accounting standards issued by the Ministry of Finance[138]. - The company assesses expected credit losses based on the weighted average of credit losses of financial instruments, considering the risk of default[181]. - The company recognizes credit loss provisions in the current profit or loss as impairment losses or gains[183]. Risks and Challenges - The company faces risks from price fluctuations of key products due to market demand and international trade conditions[51]. - High export sales revenue, primarily settled in USD, exposes the company to exchange rate risks, particularly if the RMB continues to appreciate[52]. - The global spread of COVID-19 continues to pose risks to the company's operations, especially given the high proportion of export sales[54].

江苏苏利精细化工股份有限公司 2020 年第一季度报告 公司代码：603585 公司简称：苏利股份 单位：元 币种：人民币 江苏苏利精细化工股份有限公司 2020 年第一季度报告 1 / 24 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 5 | | 四、 | 附录 8 | 江苏苏利精细化工股份有限公司 2020 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 非经常性损益项目和金额 √适用 □不适用 3 / 24 本报告期末 上年度末 本报告期末比上 年度末增减(%) 总资产 2,906,807,657.74 2,854,246,347.40 1.84 归属于上市公司股东的净资产 2,001,083,081.83 1,960,142,189.23 2.09 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 5,131,035.84 136,020,205.62 -96.23 年初至报告期末 上年初至上年报告 期末 比上年同期增减 （%） 营业收入 323,243,35 ...

Financial Performance - The company's operating revenue for 2019 was CNY 1,812,605,555.46, representing a 10.13% increase compared to CNY 1,645,899,047.57 in 2018[21] - The net profit attributable to shareholders of the listed company was CNY 303,187,370.14, a decrease of 2.86% from CNY 312,104,257.48 in the previous year[21] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 295,707,200.35, down 1.78% from CNY 301,068,538.20 in 2018[21] - The net cash flow from operating activities increased by 15.66% to CNY 486,332,393.01 from CNY 420,486,858.48 in 2018[21] - Basic earnings per share for 2019 was CNY 1.68, a decrease of 2.89% compared to 2018[23] - Diluted earnings per share for 2019 was also CNY 1.68, reflecting the same percentage decrease[23] - The weighted average return on equity decreased by 2.73 percentage points to 16.28% in 2019[23] - The company's operating costs rose by 17.48% to CNY 1.15 billion, primarily due to increased raw material prices and labor costs[44] Assets and Dividends - Total assets at the end of 2019 were CNY 2,854,246,347.40, an increase of 16.00% from CNY 2,460,468,348.81 at the end of 2018[22] - The net assets attributable to shareholders increased by 11.35% to CNY 1,960,142,189.23 from CNY 1,760,319,680.17 in 2018[22] - The company proposed a cash dividend of CNY 6 per 10 shares, totaling CNY 108,000,000, based on a total share capital of 18,000,000 shares as of December 31, 2019[5] - The company’s cash dividend payout ratio for 2019 was 35.62%, reflecting a commitment to returning value to shareholders[135] Operational Highlights - The company’s main business includes the R&D, production, and sales of pesticides and flame retardants[29] - The company employs a direct procurement model for raw materials, ensuring stable supply channels[29] - The sales model primarily focuses on direct sales, supplemented by distribution[30] - The company has established long-term stable strategic partnerships with numerous well-known clients, ensuring stable sales growth due to consistent demand from leading market players[32] - The company’s production system benefits from a complete supply chain, enhancing production efficiency and product quality while reducing costs[36] Research and Development - The company is committed to continuous R&D investment to maintain its technological advantages and product leadership in the pesticide and flame retardant sectors[34] - The total R&D expenditure amounted to ¥92,057,219.79, representing 5.08% of the total revenue, with 208 R&D personnel, accounting for 18.82% of the total workforce[58] - The company received 4 invention patents and 7 utility model patents during the reporting period, enhancing its innovation capabilities[89] - The company is focusing on the research and development of new pesticide active ingredients and formulations, as well as new flame retardants[88] Environmental Compliance - The company has implemented a series of wastewater treatment processes, including alkaline hydrolysis and biological treatment, to ensure compliance with discharge standards[170] - The company has established an emergency response plan for environmental incidents, with two drills conducted in 2019[173] - The company has a comprehensive self-monitoring plan for emissions, which has been approved by the local environmental authority[174] - The company has publicly disclosed its environmental monitoring data and compliance information on its website and relevant platforms[184] Market and Industry Trends - The agricultural chemicals industry is expected to see a consolidation, with a target of reducing the number of pesticide manufacturers by 30% by 2020[71] - The company is focusing on developing environmentally friendly pesticide products in line with national industry policies[72] - The implementation of the Soil Pollution Prevention Law starting January 1, 2019, emphasizes corporate responsibility for soil pollution prevention and strengthens regulatory measures[77] - The company is adapting to the agricultural modernization trend by shifting from pure pesticide production to integrated service offerings, including pesticide application services and comprehensive plant protection packages[122] Risks and Challenges - The company faces risks related to price fluctuations of key products such as Bacillus thuringiensis, azoxystrobin, and decabromodiphenyl ether, which can significantly impact its operational performance due to market demand and supply changes[128] - Continuous capital investment in the Sulin Ningxia project and Baile Chemical's new plant may exert financial pressure and increase costs, with uncertain returns on investment[130] - The global spread of COVID-19 poses risks to the company's operations, particularly due to its high export revenue; the company will implement measures to manage production and financial risks[131] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,319, an increase from 12,241 at the end of the previous month[194] - The top ten shareholders hold a total of 126,000,000 shares, representing 66.00% of the total shares[196] - The largest shareholder, Miao Jinfeng, holds 72,000,000 shares, accounting for 40.00% of the total shares[196] - There were no changes in the number of restricted shares during the reporting period, with all 126,000,000 shares remaining restricted[193] Corporate Governance - The company has committed to not engage in any business activities that may compete with its subsidiaries, ensuring no conflicts of interest[144] - The company has established a priority right for itself to acquire shares in any competing businesses held by its major shareholders[144] - The company will notify the market three trading days in advance if any major shareholder intends to reduce their holdings[144] - The company has not encountered any issues related to the occupation of funds or overdue receivables during the reporting period[144]

Financial Performance - Net profit attributable to shareholders increased by 6.84% to CNY 243,261,665.44 for the year-to-date period[6] - Operating revenue rose by 14.94% to CNY 1,382,821,707.22 for the year-to-date period[6] - Basic earnings per share increased by 7.14% to CNY 1.35[6] - The company reported a total comprehensive income of CNY 95.97 million for Q3 2019, compared to CNY 102.34 million in Q3 2018[26] - The net profit for the first nine months of 2019 was CNY 329.21 million, an increase of 5.7% from CNY 311.46 million in the same period of 2018[25] - The net profit for Q3 2019 reached CNY 15,242,480.57, up 40.5% from CNY 10,836,308.23 in Q3 2018[29] Assets and Liabilities - Total assets increased by 10.82% to CNY 2,726,657,590.37 compared to the end of the previous year[6] - Total liabilities increased to CNY 264,409,592.04 from CNY 223,723,880.88, representing a growth of approximately 18.2% year-over-year[17] - Total equity attributable to shareholders rose to CNY 1,899,098,943.46 from CNY 1,760,319,680.17, marking an increase of about 7.9%[17] - Current assets decreased to CNY 443,332,468.06 from CNY 541,022,998.93, reflecting a decline of approximately 18.1%[20] - Non-current assets increased to CNY 608,964,339.37 from CNY 585,546,629.75, showing a growth of about 4.0%[20] Cash Flow - Net cash flow from operating activities increased by 35.41% to CNY 461,258,298.53 compared to the same period last year[6] - The company's operating cash flow net amount increased by 35.41% year-on-year, reaching CNY 461,258,298.53[14] - The net cash flow from operating activities for the first three quarters of 2019 was CNY 461,258,298.53, an increase of 35.4% from CNY 340,628,805.76 in the same period of 2018[31] - The company reported a net cash outflow from investing activities of CNY 394,026,821.84 in the first three quarters of 2019, compared to a net outflow of CNY 68,544,437.37 in the same period of 2018[32] Shareholder Information - The total number of shareholders reached 11,884[9] - The largest shareholder, Miao Jinfeng, holds 40.00% of the shares[9] - The company's cash dividends increased by 44% to CNY 108,000,000.00 compared to CNY 75,000,000.00 in the previous period[14] Expenses and Costs - Total operating costs for Q3 2019 were CNY 310.87 million, up 13.7% from CNY 273.58 million in Q3 2018[24] - The company's total operating costs for the first three quarters of 2019 were CNY 62,705,312.38, an increase of 22.7% from CNY 51,051,375.13 in the same period of 2018[28] - Research and development expenses for Q3 2019 were CNY 21.57 million, an increase of 20.0% from CNY 17.96 million in Q3 2018[24] Inventory and Receivables - The company reported a significant decrease of 51.15% in notes receivable due to increased endorsement transfer frequency[11] - The company's accounts receivable decreased to CNY 220,512,444.44 from CNY 276,119,959.04, indicating improved collection efficiency[15] - The inventory level increased to CNY 245,244,254.45, up from CNY 203,803,869.43 at the end of 2018[15] Financial Adjustments - The company is not applying new financial instrument standards or lease standards retroactively, ensuring consistency in reporting[45] - There were no adjustments made to prior period comparative data, maintaining clarity in financial statements[45] - The company has not reported any new financial liabilities or significant changes in its financial structure[45]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 953,949,940.55, representing a 17.54% increase compared to CNY 811,617,402.73 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was CNY 171,058,479.96, up 12.09% from CNY 152,613,377.14 in the previous year[22]. - The net cash flow from operating activities reached CNY 269,487,796.48, an increase of 19.49% compared to CNY 225,525,183.82 in the same period last year[22]. - The total assets of the company at the end of the reporting period were CNY 2,627,208,671.38, reflecting a 6.78% increase from CNY 2,460,468,348.81 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company increased to CNY 1,825,685,761.68, a rise of 3.71% from CNY 1,760,319,680.17 at the end of the previous year[22]. - Basic earnings per share for the first half of 2019 were CNY 0.95, an increase of 11.76% from CNY 0.85 in the same period last year[23]. - The company achieved consolidated revenue of CNY 954 million, representing a year-on-year growth of 17.54%[40]. - The total profit for the first half of 2019 was CNY 298,204,722.75, compared to CNY 257,664,846.58 in the previous year, marking an increase of around 15.7%[128]. - The company's total comprehensive income for the first half of 2019 was CNY 233,238,651.60, compared to CNY 209,120,040.57 in the previous year, indicating a growth of approximately 11.5%[129]. Operational Costs and Expenses - The operating cost increased by 18.49% to RMB 560.63 million from RMB 473.15 million, primarily due to rising raw material procurement prices and labor costs[49]. - Research and development expenses rose by 9.59% to RMB 48.53 million, reflecting the company's continued investment in R&D[49]. - Total operating costs amounted to CNY 662,979,486.19, up from CNY 566,277,193.41, reflecting a year-on-year increase of 17.1%[127]. - The company reported a decrease in retained earnings of CNY 75,000,000 for the current period[147]. Investments and Financial Management - The company utilized RMB 380 million of idle funds for wealth management, including RMB 50 million from raised funds, to enhance the efficiency of fund usage[54]. - The company reported a financial expense of RMB -6.64 million, indicating an increase in interest income and exchange gains[49]. - The investment income from joint ventures and associates was CNY 4,084,699.13, up from CNY 2,983,333.91, reflecting a growth of approximately 37.1%[131]. - The company received CNY 350,000,000.00 from investment recoveries, which is an increase from CNY 200,000,000.00 in the previous year, representing a growth of 75%[138]. Shareholder and Equity Management - The company committed to repurchase shares if the stock price remains below the latest audited net asset value for 20 consecutive trading days within three years post-IPO[72]. - Major shareholders and management are required to vote in favor of share repurchase resolutions at shareholder meetings[73]. - The company has established a plan to prevent competition with its subsidiaries by ensuring that major shareholders do not engage in competing business activities[73]. - The total equity attributable to shareholders of the parent company at the end of the period was 1,825,685,000.00, reflecting a growth from the previous year[144]. Environmental Compliance and Management - The company is actively pursuing safety and environmental management, having obtained ISO14001 and OHSAS18001 certifications, to mitigate risks associated with safety and environmental compliance[56]. - The company achieved compliance with air pollutant discharge standards, including the "Comprehensive Discharge Standard for Air Pollutants" and "Odor Pollutant Discharge Standard"[90]. - The company reported that all wastewater and waste gas emissions met standards during the reporting period, achieving zero solid waste discharge[99]. - The company has implemented a strict waste classification and disposal plan, with hazardous waste being treated by qualified third parties[91]. Risk Factors - The company faced various operational risks, which are detailed in the report[8]. - The company faces risks related to its fundraising projects, as future market growth may not meet expectations, potentially leading to sales shortfalls[60]. - A high proportion of the company's export revenue is denominated in USD, and a sustained appreciation of the RMB could adversely affect profitability[61]. - Significant capital expenditures for new projects may lead to increased depreciation, interest costs, and operational challenges, affecting future profitability[63]. Corporate Governance and Compliance - The company appointed Ruihua Certified Public Accountants as the auditing firm for the 2019 fiscal year, approved during the annual shareholders' meeting on May 15, 2019[78]. - The total amount of related party transactions for the reporting period was CNY 204,034,009.39, with significant transactions including sales of pesticides[81]. - The company has no major litigation or arbitration matters during the reporting period[80]. - The company has not disclosed any major contracts or their performance during the reporting period[86].