Financial Performance - The company's operating revenue for Q1 2023 was ¥552,072,654.56, representing a decrease of 30.53% compared to the same period last year[4]. - The net profit attributable to shareholders was ¥22,139,452.33, down 77.45% year-on-year[4]. - The net profit after deducting non-recurring gains and losses was ¥22,179,166.14, a decrease of 77.13% compared to the previous year[5]. - Basic earnings per share were ¥0.12, down 78.18% compared to the same period last year[5]. - Net profit for Q1 2023 was CNY 19.51 million, a decline of 84.4% from CNY 125.28 million in Q1 2022[20]. - Basic earnings per share for Q1 2023 were CNY 0.12, down from CNY 0.55 in Q1 2022[21]. Cash Flow and Liquidity - The net cash flow from operating activities increased significantly to ¥83,284,707.33, up 1,151.67% year-on-year[5]. - The company received increased export tax rebates, contributing to the rise in net cash flow from operating activities[6]. - The company's cash inflow from operating activities for Q1 2023 was not detailed in the provided documents[22]. - In Q1 2023, the cash inflow from operating activities totaled approximately $571.85 million, a decrease of 9.6% compared to $632.37 million in Q1 2022[24]. - The net cash flow from operating activities increased significantly to $83.28 million, compared to only $6.65 million in the same period last year, marking a substantial improvement[24]. - Cash outflow for purchasing goods and services was approximately $358.00 million, down 28.5% from $502.07 million in Q1 2022[24]. - The company reported a net cash outflow from investing activities of approximately -$136.75 million, an improvement from -$343.13 million in Q1 2022[25]. - Cash inflow from financing activities was approximately $48.37 million, a significant decrease from $1.01 billion in Q1 2022[25]. - The net cash flow from financing activities was $38.58 million, down from $945.90 million in the previous year[25]. - The ending cash and cash equivalents balance was approximately $1.70 billion, compared to $1.59 billion at the end of Q1 2022[25]. - The company received tax refunds amounting to approximately $30.36 million, an increase from $16.99 million in Q1 2022[24]. - The total cash outflow for operating activities was approximately $488.56 million, a decrease from $625.72 million in the same quarter last year[24]. - The company experienced a negative impact of approximately -$390,890 from exchange rate fluctuations on cash and cash equivalents[25]. Assets and Liabilities - Total assets at the end of the reporting period were ¥5,265,534,097.78, a decrease of 0.92% from the end of the previous year[5]. - The company's current assets totaled CNY 3,022,631,384.16, down from CNY 3,181,404,276.54, indicating a decrease of about 4.98% year-over-year[15]. - Cash and cash equivalents were reported at CNY 1,854,393,574.82, a decrease from CNY 1,924,266,642.91, representing a decline of approximately 3.63%[14]. - Accounts receivable decreased to CNY 275,807,562.61 from CNY 350,461,210.94, marking a reduction of about 21.34%[14]. - Inventory levels were reported at CNY 338,529,900.21, down from CNY 351,917,979.87, reflecting a decrease of approximately 3.79%[15]. - The company's long-term equity investments stood at CNY 219,625,070.97, slightly down from CNY 220,209,788.04, indicating a decrease of about 0.26%[15]. - Fixed assets decreased to CNY 839,153,644.10 from CNY 861,040,897.26, representing a decline of approximately 2.54%[15]. - The company's total liabilities decreased to CNY 1.91 billion in Q1 2023 from CNY 1.97 billion in Q1 2022, a reduction of 3.5%[17]. - The total equity increased to CNY 3.36 billion in Q1 2023 from CNY 3.34 billion in Q1 2022, reflecting a growth of 0.3%[17]. - The total current liabilities were not specified, but short-term borrowings decreased significantly from CNY 13,130,896.65 to CNY 4,935,784.06, a reduction of about 62.47%[15]. Market and Operational Insights - The decline in revenue was primarily due to decreased demand in the industry and a drop in both sales prices and quantities of major products[6]. - The company experienced a significant increase in sales expenses by 35.29% as it actively expanded into domestic and international markets[9]. - The report indicates that there are no significant new strategies or product developments mentioned for the upcoming quarters[14]. - The company plans to focus on market expansion and new product development in the upcoming quarters[22]. - Research and development expenses for Q1 2023 were CNY 31.37 million, slightly down from CNY 32.08 million in Q1 2022[19]. - The company reported an investment loss of CNY 277,693.54 in Q1 2023, compared to a gain of CNY 1.14 million in Q1 2022[20]. - The company reported a total of 72,000,000 shares held by its largest shareholder, accounting for 40% of the total shares[12].

Financial Performance - The company's operating revenue for 2022 was CNY 3,150,170,752.32, representing a 34.16% increase compared to CNY 2,347,993,708.64 in 2021[22]. - The net profit attributable to shareholders for 2022 was CNY 315,311,882.85, a 30.60% increase from CNY 241,432,485.47 in 2021[22]. - The net profit after deducting non-recurring gains and losses was CNY 311,642,772.14, reflecting a 29.45% increase from CNY 240,739,183.90 in 2021[22]. - The cash flow from operating activities for 2022 was CNY 519,443,185.81, which is a significant increase of 79.93% compared to CNY 288,695,478.03 in 2021[22]. - Total assets at the end of 2022 reached CNY 5,314,462,822.42, marking a 37.16% increase from CNY 3,874,747,210.35 at the end of 2021[23]. - The net assets attributable to shareholders increased to CNY 2,616,497,212.89, an 18.52% rise from CNY 2,207,607,292.68 in 2021[22]. - Basic earnings per share increased by 30.60% to CNY 1.75 in 2022 compared to CNY 1.34 in 2021[24]. - Diluted earnings per share rose by 11.19% to CNY 1.49 in 2022 from CNY 1.34 in 2021[24]. - The weighted average return on equity increased by 1.41 percentage points to 12.78% in 2022, up from 11.37% in 2021[24]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 5.50 per 10 shares (including tax) for the 2022 fiscal year[6]. - The company's net profit attributable to ordinary shareholders for the reporting period was approximately 315.31 million RMB, with a dividend payout ratio of 31.40%[173]. - The company has established a three-year dividend return plan (2021-2023) to enhance transparency and sustainability in profit distribution[168]. - The company has implemented a cash dividend policy, stating that cash dividends should not be less than 20% of the distributable profits for the year[164]. - The company plans to prioritize cash dividends, with a minimum of 80% for mature stages without major capital expenditures[164]. Operational Efficiency and Growth - The company achieved a consolidated revenue of 3.15 billion CNY, representing a year-on-year growth of 34.16%, and a net profit attributable to shareholders of 315 million CNY, up 30.60% year-on-year, indicating double growth in both revenue and net profit[35]. - The cash flow from operating activities improved due to growth in sales and profits, reflecting the company's operational efficiency[53]. - The company reported a significant increase in research and development expenses, attributed to enhanced investment in R&D and increased personnel and material costs[53]. - The company has established long-term strategic partnerships with leading clients in the industry, ensuring stable demand for its products[44]. - The company is focused on expanding its agricultural product supply chain and enhancing its operational capabilities in the chemical industry[73]. Market and Product Development - The sales volume of the active ingredient pyraclostrobin significantly increased due to deeper cooperation with strategic customers and a gradual recovery in downstream demand[36]. - The company is exploring the production of different grades of brominated polystyrene to meet diverse market demands, which is expected to enhance profitability as production capacity is gradually released[36]. - The company is focusing on the development of key materials and additives for high-quality chemical fiber, including flame retardants and catalysts, in line with national industrial development plans[41]. - The company is actively developing new, environmentally friendly flame retardants to meet the growing demand in various industries, including the automotive sector[89]. - The company is positioned to benefit from the new opportunities arising from the 5G infrastructure, which requires flame retardant materials for high-frequency PCB circuit boards and optical fibers[85]. Environmental Compliance and Sustainability - The company invested approximately 90.28 million yuan in environmental protection during the reporting period[178]. - The company is committed to environmental compliance and has established a framework for monitoring and reporting emissions[182]. - The company has implemented measures to ensure that emissions of key pollutants such as ammonia nitrogen and total phosphorus remain within regulatory limits[182]. - The company has established a comprehensive waste management system for both hazardous and general solid waste[198]. - The company has implemented new strategies for environmental compliance, including maintaining discharge standards for various pollutants[185]. Corporate Governance - The company has implemented a robust corporate governance structure, ensuring compliance with legal requirements and protecting shareholder rights[133]. - The company emphasizes strict compliance with legal and regulatory requirements for information disclosure, ensuring timely and accurate communication with shareholders[135]. - The company has established specialized committees, including the audit committee and the strategic committee, with specific members assigned[151]. - The company has a diverse board of directors, with members holding various positions and responsibilities[137]. - The company maintains a commitment to transparency and equal opportunity for all shareholders[135]. Research and Development - Research and development expenses increased by 22.34% to CNY 138.23 million, reflecting the company's commitment to innovation[51]. - The company obtained a total of 10 invention patents and 14 utility model patents during the reporting period, reflecting its commitment to R&D innovation[91]. - The company continues to enhance its R&D capabilities through partnerships with leading research institutions, focusing on new product development in pesticides and flame retardants[91]. - The company has a strategic focus on technology innovation, rewarding teams and individuals for advancements in product development and process improvements[160]. - The company employed 293 R&D personnel, which represents 21.58% of the total workforce[64].

江苏苏利精细化工股份有限公司 2022 年第三季度报告 证券代码：603585 证券简称：苏利股份 转债代码：113640 转债简称：苏利转债 江苏苏利精细化工股份有限公司 2022 年第三季度报告 一、 主要财务数据 (一)主要会计数据和财务指标 | | | | | 单位：元 币种：人民币 | | --- | --- | --- | --- | --- | | 项目 | 本报告期 | 本报告期 比上年同 | | 年初至报告期 末比上年同期 | | | | 期增减变 | 年初至报告期末 | 增减变动幅度 | | | | 动幅度(%) | | (%) | | 营业收入 | 791,344,650.44 | 31.52 | 2,434,674,002.42 | 54.49 | | 归属于上市公司股东的 | 65,994,290.39 | 55.80 | 265,109,611.69 | 90.35 | | 净利润 | | | | | | 归属于上市公司股东的 扣除非经常性损益的净 | 65,872,886.68 | 64.25 | 262,322,701.49 | 96.58 | | 利润 | | | | | | ...

Financial Performance - The company's operating revenue for the first half of 2022 reached CNY 1,643,329,351.98, representing a 68.68% increase compared to CNY 974,211,271.52 in the same period last year[20]. - Net profit attributable to shareholders was CNY 199,115,321.30, up 105.44% from CNY 96,919,247.98 year-on-year[20]. - The net cash flow from operating activities was CNY 236,856,236.71, an increase of 104.69% compared to CNY 115,714,872.55 in the previous year[20]. - Basic earnings per share for the first half of 2022 were CNY 1.11, up 105.56% from CNY 0.54 in the same period last year[21]. - The diluted earnings per share increased to CNY 0.99, representing an 83.33% increase compared to CNY 0.54 in the previous year[21]. - The weighted average return on equity rose to 8.21%, an increase of 3.52 percentage points from 4.69% in the same period last year[22]. - The company achieved consolidated revenue of CNY 1.643 billion, a year-on-year increase of 68.68%[39]. - Net profit attributable to shareholders reached CNY 199 million, reflecting a year-on-year growth of 105.44%[39]. Assets and Liabilities - The total assets of the company at the end of the reporting period were CNY 5,076,387,587.26, reflecting a 31.11% increase from CNY 3,871,812,905.97 at the end of the previous year[20]. - The net assets attributable to shareholders increased to CNY 2,506,822,046.18, a rise of 13.72% from CNY 2,204,468,089.72 at the end of the previous year[20]. - Total current assets increased to CNY 3,443,825,621.08 from CNY 2,406,656,060.81, representing a growth of approximately 43%[136]. - Total non-current assets reached CNY 1,632,561,966.18, compared to CNY 1,477,917,375.70, indicating an increase of about 10%[137]. - Total liabilities rose to CNY 1,857,771,955.71 from CNY 1,172,165,455.38, showing an increase of approximately 58%[138]. - The company's total assets amounted to CNY 5,076,387,587.26, up from CNY 3,884,573,436.51, representing a growth of about 30%[138]. Research and Development - Research and development expenses increased by 28.70% to CNY 69.74 million, driven by new projects and personnel growth[42]. - The company aims to strengthen its R&D capabilities and enhance its product offerings in the pesticide and fine chemical sectors[29]. - The company is focusing on enhancing its core competitiveness and R&D capabilities in response to national technology reform policies[41]. Market and Product Development - The company has seen a growing demand for its pesticide products due to increasing agricultural production needs and regulatory support[26]. - The overall market for pesticides is expected to grow, supported by government policies and increasing agricultural demands[26]. - The company is focusing on the production of pesticide products, including key products like Bacillus thuringiensis and pyraclostrobin, as well as flame retardants such as decabromodiphenyl ether[30]. - The company is actively pursuing market expansion and technological innovation to maintain its competitive edge[29]. Environmental Compliance and Sustainability - The company holds a pollution discharge permit and is classified as a key pollutant discharging unit, with specific emissions data reported[71]. - The company has implemented measures to ensure compliance with the emission standards set by the relevant environmental regulations[73]. - The company is focused on sustainable practices and environmental responsibility in its operations[76]. - The company has taken measures to reduce carbon emissions, including recycling steam condensate and implementing insulation on steam and hot water pipes to reduce energy loss[97]. Financial Management and Investments - The company completed a capital increase of RMB 205.2 million for its subsidiary Su Li Ningxia, raising its registered capital from RMB 300 million to RMB 430 million, maintaining a 76% ownership stake[49]. - The company issued RMB 957.21 million of convertible bonds, with a net fundraising amount of RMB 943.62 million after deducting issuance costs[124]. - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 821,000,000, which accounts for 25.51% of the company's net assets[115]. - The company plans to use cash flows from operating activities to repay the principal and interest of the convertible bonds in the future[133]. Risk Management - The company faced risks related to safety and environmental protection, emphasizing the need for compliance with increasingly stringent regulations[59]. - The company is facing risks from raw material price fluctuations, which significantly impact production and sales costs[61]. - The company has implemented measures to manage foreign exchange risks, including strengthening foreign exchange fund management and engaging in hedging activities[61]. Corporate Governance - The company has committed to fulfilling its obligations regarding performance compensation measures, with potential legal liabilities for any breaches[104]. - The company has not reported any violations or penalties against its directors, supervisors, or senior management during the reporting period[106]. - The company is focused on maintaining fair and reasonable pricing in its transactions with related parties[106]. Subsidiary Performance - The company’s subsidiary Su Li Chemical reported a net profit of RMB 2.59 million on revenue of RMB 31.71 million[58]. - The company’s subsidiary Bai Li Chemical achieved a net profit of RMB 21.71 million with revenue of RMB 133.44 million[58].

Financial Performance - The company's revenue for Q1 2022 reached ¥794,738,969.86, representing a 91.17% increase compared to the same period last year[6] - Net profit attributable to shareholders was ¥98,194,238.52, a significant increase of 158.48% year-on-year, primarily due to improved gross margins on product sales[6] - Basic earnings per share (EPS) increased by 161.90% to ¥0.55, while diluted EPS rose by 142.86% to ¥0.51[6] - Total operating revenue for Q1 2022 reached ¥794,738,969.86, a significant increase of 91.1% compared to ¥415,724,936.72 in Q1 2021[22] - Operating profit for Q1 2022 was ¥147,908,042.61, up 156.5% from ¥57,750,349.83 in the same period last year[23] - Net profit for Q1 2022 was ¥125,282,113.72, representing a 183.5% increase from ¥44,254,018.32 in Q1 2021[24] - Earnings per share for Q1 2022 were ¥0.55, compared to ¥0.21 in Q1 2021, reflecting a substantial growth[24] - The company reported a gross profit margin of approximately 18.9% for Q1 2022, compared to 13.5% in Q1 2021[22] - The total operating costs for Q1 2022 were ¥645,023,095.69, which is an increase of 81.0% from ¥356,305,364.10 in Q1 2021[22] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,819,476,288.77, reflecting a 24.48% increase from the previous year[6] - The company's total current assets as of March 31, 2022, amount to ¥3,320,270,006.20, an increase from ¥2,406,656,060.81 at the end of 2021[18] - Total assets reached ¥4,819,476,288.77, up from ¥3,871,812,905.97 in the previous year[19] - Total liabilities decreased to ¥1,693,539,362.40 from ¥1,853,540,948.74, reflecting a reduction of 8.6%[19] - Total liabilities as of Q1 2022 amounted to ¥1,707,105,162.30, compared to ¥1,172,165,455.38 in Q1 2021, indicating a growth of 45.5%[23] - Total equity increased to ¥3,112,371,126.47 in Q1 2022 from ¥2,699,647,450.59 in Q1 2021, marking a rise of 15.3%[23] Cash Flow - The company reported a net cash flow from operating activities of ¥6,653,878.88, which is not applicable for year-on-year comparison[6] - Cash flow from operating activities for Q1 2022 was ¥6,653,878.88, a recovery from a negative cash flow of ¥84,746,621.86 in Q1 2021[27] - The net cash flow from investment activities was -343,127,430.89 CNY, compared to -98,556,670.72 CNY in the previous period, indicating a significant increase in cash outflow for investments[28] - The total cash inflow from financing activities amounted to 1,005,244,175.73 CNY, with a net cash flow of 945,900,072.85 CNY after outflows[28] - The cash and cash equivalents at the end of the period reached 1,586,113,955.49 CNY, up from 884,927,397.46 CNY in the previous period, reflecting a net increase of 608,701,006.95 CNY[28] - The company received 947,019,207.06 CNY from borrowings during the financing activities, contributing significantly to the cash inflow[28] - The cash outflow for investment activities totaled 358,077,745.38 CNY, which is a substantial increase compared to 129,435,736.72 CNY in the previous period[28] - The company reported an increase in cash received from minority shareholders' investments amounting to 58,224,968.67 CNY[28] - The impact of exchange rate changes on cash and cash equivalents was -725,513.89 CNY, indicating a slight negative effect[28] Shareholder Information - Total number of ordinary shareholders at the end of the reporting period is 14,632[14] - The largest shareholder, Miao Jinfeng, holds 72,000,000 shares, representing 40.0% of total shares[15] - The number of shares held by the top ten shareholders accounts for a substantial portion of the company's equity, with the top shareholder alone holding 40%[15] Research and Development - Research and development expenses grew by 33.71%, attributed to increased investment in R&D projects and personnel[11] - Research and development expenses for Q1 2022 totaled ¥32,078,309.23, an increase of 33.8% from ¥23,990,655.01 in Q1 2021[23] Future Outlook - The company plans to continue expanding its product offerings and market presence, leveraging the increased demand and pricing power in its key product segments[11] - The company has not disclosed any significant new product developments or market expansion strategies in the current report[16]

Financial Performance - In 2021, the company's operating income reached approximately CNY 2.29 billion, representing a year-on-year increase of 47.03% compared to CNY 1.56 billion in 2020[21]. - The net profit attributable to shareholders was approximately CNY 232.39 million, an increase of 32.99% from CNY 174.75 million in the previous year[21]. - The cash flow from operating activities amounted to CNY 316.00 million, reflecting an 86.92% increase compared to CNY 169.06 million in 2020[21]. - The total assets of the company at the end of 2021 were approximately CNY 3.87 billion, a 26.19% increase from CNY 3.07 billion at the end of 2020[21]. - The company's net assets attributable to shareholders increased by 8.68% to approximately CNY 2.20 billion from CNY 2.03 billion in 2020[21]. - Basic earnings per share for 2021 were CNY 1.29, up 32.99% from CNY 0.97 in 2020[23]. - The weighted average return on equity was 11.01%, an increase of 2.26 percentage points from 8.75% in the previous year[23]. - The company achieved a historic breakthrough in consolidated operating revenue, indicating a stable recovery in profitability[32]. - The company achieved a consolidated revenue of 2.292 billion yuan, a year-on-year increase of 47.03%, and a net profit attributable to shareholders of 232 million yuan, up 32.99%[33]. Operational Highlights - In Q1 2021, the company's operating revenue was approximately ¥415.72 million, which increased to ¥715.72 million by Q4 2021, representing a growth of 72%[25]. - The net profit attributable to shareholders was ¥37.99 million in Q1 2021, rising to ¥93.12 million in Q4 2021, marking an increase of 145%[25]. - The cash flow from operating activities showed a significant recovery, moving from a negative ¥84.75 million in Q1 2021 to a positive ¥128.12 million in Q4 2021[25]. - The company achieved a consolidated revenue of CNY 2.292 billion, representing a year-on-year growth of 47.03%[46]. - The net profit attributable to shareholders reached CNY 232 million, marking a year-on-year increase of 32.99%[46]. Product and Market Development - The sales prices of key products such as pyraclostrobin, decabromodiphenyl ether, and hydrobromic acid maintained a growth trend in the second half of 2021, significantly contributing to revenue growth[33]. - The production of pyraclostrobin was stable, and the new production line for decabromodiphenyl ether operated well, leading to an increase in product output and sales volume[34]. - The revenue of the wholly-owned subsidiary, Suli Pharmaceutical, continued to grow, increasing by 32.99% compared to the same period last year[33]. - The company has completed the construction of a 15,000-ton decabromodiphenyl ether production line, which is expected to enhance profitability as it stabilizes operations[34]. - A new 5,000-ton brominated polystyrene production line has been completed and is ready for normal production, contributing to product structure improvement and market expansion[34]. Research and Development - The company is actively investing in R&D to enhance core competitiveness, with plans to build a more specialized R&D team and increase collaboration with academic institutions[34]. - The company has invested in R&D for new formulations and production technologies, particularly in the pesticide sector, to increase production capacity[43]. - The company received 11 invention patents during the reporting period, enhancing its innovation capabilities[87]. - The company emphasizes the importance of independent innovation, noting that firms with strong innovation capabilities will have better development opportunities[113]. Environmental Compliance and Sustainability - The company is committed to safety and environmental management, having obtained ISO14001 and OHSAS18001 certifications to ensure compliance with increasing regulatory standards[121]. - The company is focused on enhancing its production capabilities and expanding its market presence in the chemical industry[171]. - The company is actively monitoring and managing its environmental impact to align with regulatory requirements and sustainability goals[171]. - The company has implemented energy-saving measures, including the use of energy-efficient motors and automatic control of cooling systems, to reduce electricity consumption[195]. - The company has established an environmental self-monitoring plan for 2021, covering wastewater, waste gas, noise, and soil, with periodic monitoring conducted by qualified third parties[190]. Governance and Management - The company has established a governance structure compliant with regulations, ensuring independent operation of the board and effective decision-making[127]. - The board consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[128]. - The company has a diverse board with members having extensive experience in various sectors, enhancing its strategic decision-making capabilities[135]. - The company’s governance structure includes independent directors who contribute to oversight and compliance, ensuring transparency in operations[135]. - The total remuneration for all directors, supervisors, and senior management was 7.2456 million yuan[142]. Employee Development and Welfare - In 2021, the company organized 433 training programs, achieving a completion rate of over 99%, reflecting a commitment to employee development[155]. - The company emphasizes safety and skill enhancement, with nearly 150 employees participating in safety training and skill improvement programs in 2021[154]. - The company has committed to protecting employee rights and has improved employee welfare, including timely payment of social insurance[196]. - The company has a diverse educational background among employees, with 5 holding PhDs and 28 holding master's degrees, enhancing its technical expertise[153]. Risk Management - The company faced challenges due to global supply chain shortages and inflationary pressures, which may impact future operations and profitability[31]. - The company is preparing for potential risks related to safety, environmental compliance, and supply chain disruptions due to ongoing pandemic-related challenges[122]. - The company is exposed to foreign exchange risks due to high overseas procurement and sales, with measures in place to manage currency fluctuations and mitigate financial risks[123]. - Ongoing capital investments in projects like the Ningxia project may lead to financial pressure and uncertain returns, prompting the company to improve investment management and efficiency[124].

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].