Financial Performance - The company reported a total revenue of 1.5 billion RMB for the first half of 2022, representing a year-on-year increase of 10%[1]. - The net profit attributable to shareholders was 300 million RMB, up 15% compared to the same period last year[1]. - The company's operating revenue for the first half of 2022 reached ¥2,810,510,771.27, representing a 43.44% increase compared to ¥1,959,312,048.32 in the same period last year[21]. - The net profit attributable to shareholders was ¥329,248,773.42, up 44.09% from ¥228,497,737.52 year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥320,110,507.95, reflecting a 48.23% increase from ¥215,952,516.72 in the previous year[21]. - The company has set a performance guidance for the second half of 2022, aiming for a revenue target of 1.8 billion RMB, which would represent a 12% increase year-on-year[1]. - The company reported a total revenue of 247,277.76 million for the first half of 2022, with a net profit of 27,668.36 million[63]. - The company reported a significant increase in revenue, achieving a total of $500 million for the quarter, representing a 25% year-over-year growth[120]. - The total comprehensive income for the first half of 2022 was CNY 329,252,226.33, compared to CNY 228,499,109.40 in the same period of 2021, reflecting an increase of approximately 44%[169]. User Growth and Market Expansion - User data indicates a growth in active users by 20%, reaching 2 million users by the end of June 2022[1]. - The company is expanding its market presence in Southeast Asia, targeting a revenue growth of 30% in that region by the end of 2023[1]. - The company plans to launch three new products in the next quarter, focusing on pest control solutions, which are expected to increase market share by 5%[1]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next year[120]. Research and Development - Research and development expenses increased by 25%, totaling 150 million RMB, reflecting the company's commitment to innovation[1]. - The company plans to increase investment in technological upgrades and research to improve production efficiency and reduce costs, aiming to enhance the profitability of its pesticide products[66]. - The company has been recognized as a key high-tech enterprise and has established a comprehensive R&D center, enhancing its innovation capabilities[43]. - The company has entered trial production for several new products, including the second-generation neonicotinoid insecticides and the fungicide prothioconazole, indicating ongoing product development[42]. Financial Health and Cash Flow - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥321,380,057.64 compared to a net inflow of ¥82,329,749.47 in the same period last year, marking a decrease of 490.36%[21]. - The company's cash and cash equivalents decreased by 41.98%, totaling RMB 487,896,476.77, down from RMB 840,958,760.09 at the end of the previous year[55]. - The company reported a decrease in cash and cash equivalents by CNY 161,664,277.93 in the first half of 2022, compared to an increase of CNY 116,146,409.62 in the same period of 2021[176]. - The net cash flow from operating activities for the first half of 2022 was -CNY 321,380,057.64, a decrease from CNY 82,329,749.47 in the same period of 2021[175]. Strategic Acquisitions and Investments - A strategic acquisition of a local competitor is in progress, which is expected to enhance the company's distribution network and increase sales by 10%[1]. - The company acquired a 26% stake in Shaanxi Jinxinyi Chemical Technology Co., Ltd. for RMB 6,483.50 million, enhancing its supply chain stability[51]. - The company completed the exit of equity stakes in several related parties, including Gansu Tianyi Agricultural Co., Ltd., by August 19, 2022[127]. Environmental and Social Responsibility - The company is committed to enhancing safety and environmental protection measures to mitigate risks associated with the production of hazardous materials[65]. - The company has implemented effective comprehensive treatment measures for wastewater, waste gas, and noise[93]. - The company donated 1 million yuan to support epidemic prevention efforts in Laixi, demonstrating its commitment to social responsibility[112]. - The company has adopted LDAR technology to significantly reduce leakage in production areas, enhancing its environmental protection efforts[108]. Risk Management - The management highlighted potential risks including regulatory changes and market competition, which could impact future performance[1]. - The company faces risks from price fluctuations of raw materials, which can significantly impact production costs and profit margins[67]. - The company is actively monitoring changes in industry regulations and policies to ensure compliance and adapt its operations accordingly[71]. - The company emphasizes the importance of comprehensive risk management strategies to address various operational challenges, including supply chain disruptions and market competition[69].

2022 年第一季度报告 证券代码：603639 证券简称：海利尔 海利尔药业集团股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务报表 信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比上年同期增减 | | --- | --- | --- | | | | 变动幅度(%) | | 营业收入 | 1,199,790,300.43 | 6.57 | | 归属于上市公司股东的净利润 | 142,614,951.22 | 8.94 | | 归属于上市公司股东的扣除非经常性 | 138,717,661.79 | 8.14 | | ...

Financial Performance - The company's operating revenue for 2021 reached approximately RMB 3.70 billion, representing a year-on-year increase of 14.62% compared to RMB 3.23 billion in 2020[23]. - The net profit attributable to shareholders for 2021 was approximately RMB 449.75 million, an increase of 10.59% from RMB 406.66 million in 2020[23]. - The basic earnings per share for 2021 was RMB 1.33, up 9.02% from RMB 1.22 in 2020[23]. - The weighted average return on equity for 2021 was 15.93%, a decrease of 0.90 percentage points from 16.83% in 2020[23]. - The net cash flow from operating activities for 2021 was approximately RMB 438.41 million, down 25.38% from RMB 587.51 million in 2020[23]. - The total assets at the end of 2021 were approximately RMB 5.14 billion, reflecting a year-on-year increase of 19.17% from RMB 4.31 billion at the end of 2020[23]. - The net assets attributable to shareholders at the end of 2021 were approximately RMB 3.04 billion, an increase of 16.21% from RMB 2.62 billion at the end of 2020[23]. - Operating profit reached 529.80 million yuan, up 13.56% from 466.55 million yuan year-on-year[51]. - The company achieved a revenue of 3,698.88 million yuan, a 14.62% increase from 3,227.19 million yuan in the previous year[51]. Dividend Policy - The company plans to distribute a cash dividend of 10 RMB per 10 shares to all shareholders, subject to approval at the shareholders' meeting[6]. - The cash dividend policy stipulates that at least 10% of the distributable profits must be allocated as cash dividends if conditions are met[176]. - The company's cash dividend distribution is contingent upon having positive distributable profits and sufficient cash flow[176]. - The company's remaining undistributed profits will be fully carried forward to the next fiscal year[179]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[9]. - The company has a comprehensive risk management strategy in place to address potential operational risks[9]. - The company faces risks related to safety production and environmental protection, necessitating comprehensive management and preventive measures[132]. - The volatility of raw material prices poses a risk to production stability, prompting the company to enhance its technological upgrades and cost management[134]. Research and Development - The company has been actively involved in research and development of new technologies to enhance product efficacy and safety[23]. - The company synthesized 1,891 new compounds and completed 72 patent applications, with 43 granted[88]. - Research and development expenses rose by 16.13% to ¥163,323,913.67, up from ¥140,643,255.53, due to an increase in R&D personnel and enhanced compensation[52]. - The total R&D investment accounted for 4.42% of the operating revenue[63]. - The company is committed to increasing R&D investment to develop differentiated, environmentally friendly pesticide formulations[138]. Market Expansion - The company plans to continue expanding its product offerings and market presence, focusing on new pesticide and chemical products[23]. - The company is actively expanding its international market presence to mitigate adverse market fluctuations and create new growth points[39]. - The company is focusing on diversifying its pesticide offerings, with several new products entering trial production in recent years[39]. - The company will focus on international market expansion, strengthening strategic partnerships with multinational companies[121]. Environmental Compliance - The company has implemented effective measures for environmental protection, achieving compliance with emission standards for waste gas and wastewater during the reporting period[192]. - The company has established various pollution prevention facilities, including RTO devices and wastewater treatment stations, which are operating normally[200]. - The company's wastewater treatment facilities include three-effect evaporators and MVR systems, ensuring compliance with environmental standards[200]. - The company is committed to environmental protection and has taken significant measures to manage emissions effectively[193]. Corporate Governance - The company has established a governance structure that ensures the independence of the board and management, with 3 out of 9 directors being independent[144]. - The company has implemented measures to ensure the legality and compliance of financial reports through the supervision of the supervisory board[145]. - The company is committed to transparent information disclosure, adhering to regulations to ensure all shareholders have equal access to information[145]. - The company has approved a restricted stock incentive plan for 2021, aimed at motivating and retaining key personnel[146]. Employee Development - The company emphasizes the importance of talent development, conducting annual training programs for new and existing employees[174]. - The company has established a talent cultivation plan targeting university graduates and key positions to enhance professional capabilities[174]. - The employee composition includes 1,175 production personnel, 686 sales personnel, 428 technical personnel, 55 financial personnel, and 394 administrative personnel[172]. - The company maintains a salary policy that emphasizes internal fairness and external competitiveness, aligning employee contributions with company performance[173].

Financial Performance - Q3 2021 revenue was CNY 623,936,735.78, a decrease of 6.23% compared to the same period last year[4] - Net profit attributable to shareholders was CNY 82,610,095.49, an increase of 2.18% year-on-year[4] - Net profit excluding non-recurring items was CNY 80,234,629.65, up 26.02% from the previous year[4] - Basic earnings per share were CNY 0.24, down 4.00% year-on-year[4] - The total operating revenue for the first three quarters of 2021 reached RMB 2,583,248,784.10, slightly up from RMB 2,572,088,111.67 in the same period of 2020, indicating a growth of approximately 0.07%[18] - The total operating revenue for Q3 2021 was approximately CNY 2.58 billion, a slight increase from CNY 2.57 billion in Q3 2020, representing a growth of 0.06%[19] - The total operating costs for Q3 2021 were CNY 2.21 billion, up from CNY 2.18 billion in Q3 2020, indicating an increase of 1.03%[19] - The net profit for Q3 2021 was CNY 311.11 million, a decrease of 6.56% compared to CNY 332.99 million in Q3 2020[20] - The basic and diluted earnings per share for Q3 2021 were both CNY 0.92, down from CNY 1.00 in the same period last year[21] - The company reported a total comprehensive income of CNY 311.11 million for Q3 2021, down from CNY 332.99 million in Q3 2020[21] Cash Flow and Assets - Operating cash flow for the year-to-date reached CNY 149,356,093.59, an increase of 52.87%[4] - The company reported a significant increase in cash flow due to rising raw material prices and improved collection of receivables[8] - Cash and cash equivalents increased to RMB 662,373,110.51 from RMB 507,866,260.75, representing a growth of approximately 30.39%[14] - The net cash flow from operating activities for the first nine months of 2021 was CNY 149.36 million, compared to CNY 97.70 million in the same period of 2020, reflecting an increase of 52.83%[23] - The cash and cash equivalents at the end of Q3 2021 amounted to CNY 438.22 million, an increase from CNY 270.60 million at the end of Q3 2020[23] Assets and Liabilities - Total assets at the end of the period were CNY 4,591,838,205.21, a 6.46% increase from the end of the previous year[5] - As of September 30, 2021, total assets amounted to RMB 4,591,838,205.21, an increase from RMB 4,313,363,396.47 at the end of 2020, reflecting a growth of about 6.45%[16] - Current assets totaled RMB 2,637,228,655.10, showing a slight decrease from RMB 2,643,369,161.63 at the end of 2020[14] - Total liabilities stood at RMB 1,702,059,406.67, slightly up from RMB 1,697,131,813.54, reflecting a marginal increase of about 0.11%[16] - The expected liabilities increased to RMB 74,613,018.32 from RMB 20,899,828.95, representing a substantial rise of approximately 256.56%[16] Shareholder Equity - Shareholder equity attributable to the parent company was CNY 2,889,778,798.54, up 10.46% year-on-year[5] - The company's equity attributable to shareholders increased to RMB 2,889,778,798.54 from RMB 2,616,231,582.93, showing a growth of approximately 10.42%[16] - The weighted average return on equity was 2.89%, a decrease of 2.68 percentage points compared to the previous year[5] Research and Development - Research and development expenses for Q3 2021 were CNY 105.70 million, up from CNY 98.87 million in Q3 2020, marking an increase of 6.67%[19] Other Information - The company announced the implementation of new leasing standards starting in 2021, affecting the financial statements from the beginning of the year[24] - The report was released on October 28, 2021, indicating timely communication of financial performance[24] - No specific financial performance metrics or user data were disclosed in the document[24] - Future outlook and performance guidance were not provided in the content[24] - There were no mentions of new products or technology developments in the report[24] - Market expansion and acquisition strategies were not discussed in the document[24] - The document does not contain any specific numerical data or percentages related to financial performance[24] - The report does not highlight any new strategies beyond the leasing standard implementation[24] - Overall, the content lacks detailed financial insights or projections for stakeholders[24] - The company’s board of directors is responsible for the announcement and report[24]

Financial Performance - The company reported a total revenue of 1.5 billion RMB for the first half of 2021, representing a year-on-year increase of 15%[1]. - The net profit attributable to shareholders reached 300 million RMB, up 20% compared to the same period last year[1]. - The company's revenue for the first half of 2021 was CNY 1,959,312,048.32, representing a 2.76% increase compared to CNY 1,906,696,858.19 in the same period last year[21]. - The net profit attributable to shareholders decreased by 9.38% to CNY 228,497,737.52 from CNY 252,145,035.28 year-on-year[21]. - The total profit for the first half of 2021 was CNY 277,878,144.06, compared to CNY 298,846,548.55 in the first half of 2020, reflecting a decrease of 7.0%[154]. - The company's financial expenses for the first half of 2021 were CNY 4,858,253.07, compared to a financial income of CNY 7,610,280.34 in the same period of 2020[156]. - The total comprehensive income for the first half of 2021 was CNY 228,499,109.40, down from CNY 252,142,848.31 in the first half of 2020[154]. - The net cash flow from operating activities for the first half of 2021 was ¥137,466,421.16, a significant increase from ¥34,552,560.71 in the same period of 2020, representing a growth of approximately 297%[162]. Market Strategy and Expansion - User data indicates a growth in active users by 25%, reaching 2 million active users by the end of June 2021[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2022[1]. - Future guidance estimates a revenue growth of 12-15% for the second half of 2021, driven by increased demand and new product launches[1]. - The company continues to focus on the development of new products and technologies to enhance its market position[23]. - The company aims to expand its market presence both domestically and internationally, focusing on high-efficiency and environmentally friendly products[60]. Research and Development - New product development includes the launch of three innovative pesticide formulations, expected to contribute an additional 200 million RMB in revenue[1]. - The company has allocated 100 million RMB for R&D in new technologies aimed at improving product efficacy and safety[1]. - The company’s R&D team consists of nearly 300 personnel, covering all aspects of pesticide development, making it one of the most comprehensive R&D centers in the industry[41]. - The company plans to enhance R&D investment to improve production processes and reduce costs[57]. Financial Position and Assets - The company's total assets increased slightly by 0.56% to CNY 4,337,348,089.35 from CNY 4,313,363,396.47 at the end of the previous year[21]. - The net assets attributable to shareholders rose by 6.91% to CNY 2,797,016,091.74 from CNY 2,616,231,582.93 at the end of the previous year[21]. - Cash and cash equivalents increased by 56.71% to ¥795,868,596.33, accounting for 18.35% of total assets[51]. - The company's current assets totaled 2,500,697,162.05 RMB, down from 2,643,369,161.63 RMB at the end of 2020, primarily due to a decrease in inventory from 759,543,019.55 RMB to 520,887,688.09 RMB[145]. - The company's total liabilities were 1,540,331,997.61 RMB, compared to 1,697,131,813.54 RMB at the end of 2020, indicating a reduction in overall debt[147]. Environmental Compliance - Shandong Hailier Chemical Co., a wholly-owned subsidiary, is classified as a key pollutant discharge unit by the Weifang Ecological Environment Bureau[74]. - The company has implemented effective environmental management systems certified to GB/T24001-2016/ISO14001:2015 standards at both subsidiaries[78][81]. - The company's pollution control facilities are operating normally, including RTO devices and wastewater treatment stations[81]. - Hailier has established an environmental self-monitoring plan in compliance with national regulations, detailing monitoring indicators, locations, frequency, and methods[84][92]. - The company has publicly disclosed its environmental monitoring results on the Weifang Environmental Protection Bureau's website[84][92]. Shareholder and Capital Management - The company implemented a stock incentive plan, granting 5.414 million shares at a price of RMB 12.4 per share to 338 participants[45]. - The company has received approval for its 2021 restricted stock incentive plan, which aims to enhance long-term development and shareholder value[71]. - The company reported a commitment from its major shareholders to not transfer their shares for 36 months post-IPO, ensuring stability in shareholding[105]. - Major shareholders will not reduce their holdings for two years after the lock-up period, with a maximum of 25% of their shares allowed to be sold annually thereafter[107]. - The company distributed cash dividends of CNY 0.3 per share and increased capital by 0.4 shares per share, totaling CNY 72,858,871.2 in cash dividends and 97,145,162 shares in capital increase[124]. Risk Factors and Challenges - Risk factors include potential regulatory changes in the agricultural sector, which could impact product approvals and market access[1]. - The company faced challenges in the second quarter due to raw material price increases and technical upgrades affecting product output and sales[23]. - The company is facing risks related to raw material price fluctuations and market competition, necessitating strategic procurement and cost management[58][60]. - The company is actively monitoring changes in agricultural and chemical industry regulations to mitigate risks related to raw material procurement and product sales[63]. Corporate Governance and Compliance - The financial report was approved by the board of directors on August 27, 2021[178]. - The financial statements comply with the requirements of the Chinese Accounting Standards and reflect the company's financial position as of June 30, 2021, and its operating results for the first half of 2021[182]. - The company has not disclosed any significant litigation or arbitration matters during the reporting period[110]. - The company has not faced significant administrative penalties related to environmental issues during the reporting period[96].

Financial Performance - Net profit attributable to shareholders increased by 56.48% to CNY 130,915,075.65 year-on-year[7] - Operating revenue rose by 42.19% to CNY 1,125,863,066.84 compared to the same period last year[7] - Basic earnings per share increased by 57.14% to CNY 0.55[7] - The company's operating revenue for Q1 2021 reached ¥1,125,863,066.84, a 42.19% increase compared to ¥791,825,545.53 in the same period last year, primarily driven by increased shipments of active ingredients like prothioconazole[14] - Net profit for Q1 2021 was ¥130,915,075.65, reflecting a 56.48% growth from ¥83,660,911.59 in the previous year, attributed to expanded revenue scale[14] - Total operating revenue for Q1 2021 was ¥1,125,863,066.84, an increase of 42.2% compared to ¥791,825,545.53 in Q1 2020[28] - Net profit for Q1 2021 reached ¥22,831,485.94, up 60.1% compared to ¥14,248,476.99 in Q1 2020[32] - The company’s total comprehensive income for Q1 2021 was ¥22,831,485.94, compared to ¥14,248,476.99 in Q1 2020, indicating strong overall performance[32] Asset and Liability Management - Total assets decreased by 2.92% to CNY 4,187,441,262.00 compared to the end of the previous year[7] - The company's total assets as of March 31, 2021, amounted to ¥4,187,441,262.00, a decrease from ¥4,313,363,396.47 at the end of 2020[22] - The total liabilities decreased to ¥1,439,957,827.76 from ¥1,697,131,813.54 at the end of 2020, indicating improved financial stability[22] - Total liabilities for Q1 2021 were ¥779,482,910.84, down from ¥905,700,103.79 in Q1 2020[25] - The total current liabilities included accounts payable of $369,751,115.36, indicating operational obligations[45] Cash Flow and Liquidity - Cash flow from operating activities turned positive with a net amount of CNY 6,688,395.31, a significant improvement from a negative CNY 50,932,664.94 in the previous year[7] - Cash and cash equivalents increased to ¥615,975,139.12 from ¥507,866,260.75, showing improved liquidity[20] - Cash inflow from operating activities in Q1 2021 was approximately ¥325.21 million, up from ¥225.90 million in Q1 2020, representing a year-over-year increase of 44%[37] - Net cash flow from operating activities in Q1 2021 was negative ¥1.47 million, an improvement from negative ¥91.78 million in Q1 2020[37] - The total cash and cash equivalents at the end of Q1 2021 amounted to ¥548,189,431.86, an increase from ¥390,225,249.29 at the end of Q1 2020[36] Shareholder Information - The number of shareholders reached 10,458, indicating a stable shareholder base[11] - The total equity attributable to shareholders as of January 1, 2021, was approximately ¥2.62 billion, consistent with the previous reporting date[42] Operational Efficiency - Management expenses increased by 33.98% to ¥73,015,303.21, primarily due to provisions for technological upgrades and safety environmental rectification costs[14] - The company incurred sales expenses of ¥4,429,067.71 in Q1 2021, down from ¥6,579,907.53 in Q1 2020, showing improved cost management[31] Research and Development - Research and development expenses for Q1 2021 were ¥43,949,756.23, compared to ¥34,417,382.42 in Q1 2020, reflecting a 27.5% increase[28] - Research and development expenses for Q1 2021 were ¥14,913,253.40, up from ¥12,326,260.81 in Q1 2020, indicating a focus on innovation[31] Future Projects - The company is progressing with the installation of major equipment for its 7,000T water-based formulation project and 23,000T agricultural chemical formulation and fertilizer manufacturing project, which are awaiting acceptance[14] - The company has initiated the construction of a new project under its wholly-owned subsidiary, Qingdao Hengning Biotechnology Co., which began in July 2020 and is progressing normally[15]

Dividend Policy - The company plans to distribute a cash dividend of 3 CNY per 10 shares and to increase capital by 4 shares for every 10 shares held, pending shareholder approval[5]. - The company has committed to maintaining the distribution ratio even if there are changes in total shares due to stock incentives[5]. - The cash dividend payout ratio for 2020 was 17.52% of the net profit attributable to ordinary shareholders[160]. - The company has consistently distributed cash dividends of 3 RMB per 10 shares for the years 2018, 2019, and 2020[160]. - The company has a structured approach to cash dividends, considering industry characteristics, development stages, and significant capital expenditure plans[156]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits, as per regulatory requirements[161]. Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.23 billion, representing a year-on-year increase of 30.83% compared to CNY 2.47 billion in 2019[24]. - The net profit attributable to shareholders for 2020 was approximately CNY 406.66 million, an increase of 28.78% from CNY 315.78 million in 2019[24]. - The net cash flow from operating activities for 2020 was approximately CNY 587.51 million, showing a slight increase of 0.16% compared to CNY 586.58 million in 2019[24]. - The total assets at the end of 2020 were approximately CNY 4.31 billion, a 23.34% increase from CNY 3.50 billion at the end of 2019[24]. - The company's net assets attributable to shareholders at the end of 2020 were approximately CNY 2.62 billion, reflecting a 16.64% increase from CNY 2.24 billion at the end of 2019[24]. - The basic earnings per share for 2020 were CNY 1.71, representing a 28.57% increase from CNY 1.33 in 2019[25]. - The diluted earnings per share for 2020 were also CNY 1.71, up 28.57% from CNY 1.33 in 2019[26]. - The weighted average return on equity for 2020 was 16.83%, an increase from 15.16% in 2019[26]. Risk Management - The company reported no significant risks affecting its operations during the reporting period, ensuring a stable operational environment[8]. - The company has outlined various risks and corresponding countermeasures in its operational analysis section, emphasizing risk awareness for investors[8]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, urging investors to be aware of investment risks[6]. - The company is actively monitoring changes in industry regulations and policies to mitigate risks associated with production and sales activities[151]. - The company is adopting foreign exchange hedging strategies to manage risks from currency fluctuations as its export business grows[152]. - The company anticipates risks associated with future capacity expansion, including market adaptability and potential profit decline due to increased depreciation[150]. Operational Integrity - The financial report has been audited and received a standard unqualified opinion from the accounting firm, confirming its accuracy and completeness[4]. - The board of directors and management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its contents[7]. - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[7]. - The company has not reported any violations of decision-making procedures regarding external guarantees, indicating adherence to regulatory standards[7]. - The company has no major litigation or arbitration matters during the reporting period[176]. - The company has no significant changes in accounting policies or estimates during the reporting period[174]. Market and Industry Trends - In 2020, the total revenue of the pesticide industry in China reached 228.06 billion yuan, a year-on-year increase of 6.1%[40]. - The total profit of the pesticide industry was 19.06 billion yuan, with a year-on-year growth of 0.5%, while the profit from chemical raw materials increased by 1.8%[40]. - The export volume of pesticides in 2020 was 2.395 million tons, representing a year-on-year increase of 29.3%, with an export value of 11.68 billion USD, up 14.6%[38]. - The overall pesticide raw material market showed a rebound in prices in the fourth quarter of 2020 after a decline earlier in the year due to global economic fluctuations and the COVID-19 pandemic[38]. - The pesticide industry in China has over 2,000 production enterprises, indicating a low market concentration and significant room for improvement[125]. - The industry is shifting from product sales to value-added services, indicating a transformation in competitive strategies[128]. Research and Development - The company has a research and development team of nearly 300 people, making it one of the most comprehensive pesticide R&D centers in China[58]. - The company synthesized nearly 1,500 new compounds in the reporting period, with at least 2 showing potential for registration and market launch[101]. - The company is actively developing the third generation of neonicotinoid insecticides, with a project for 40,000 tons/year of agricultural chemical raw materials and intermediates underway[55]. - The company aims to enhance its R&D capabilities and establish a sustainable innovation system to increase the technological content and added value of its products[130]. - The company plans to enhance its product structure and quality in line with new agricultural policies aimed at promoting sustainable practices in the pesticide industry[88]. Corporate Governance - The actual controller and shareholders committed to not transferring or entrusting their shares for 36 months post-IPO, with an additional 2-year restriction on share reduction thereafter[162]. - The company and its actual controller committed to repurchase shares if the prospectus is found to contain false statements or omissions, with a repurchase price equal to the IPO price plus interest[166]. - The company’s board and senior management committed to compensating investors for losses due to false statements in the prospectus, starting within 5 working days of regulatory recognition[166]. - The company has established a plan to address any potential non-compliance with the commitments made in the prospectus[166]. - The company emphasizes adherence to securities laws and regulations to protect investor interests[172]. Social Responsibility - The company has actively engaged in social responsibility initiatives, contributing to local economic development[198]. - The company has invested in safety and environmental protection, adhering to national regulations and standards[200]. - The company is committed to reducing the use of chemical fertilizers and pesticides, aligning with national policies for sustainable agricultural practices[94]. - The company has focused on enhancing corporate culture and employee well-being through various activities and training[199].

Financial Performance - Operating revenue for the first nine months reached CNY 2,572,088,111.67, a 30.76% increase year-on-year[6] - Net profit attributable to shareholders increased by 20.35% to CNY 332,994,319.80 compared to the same period last year[6] - Basic earnings per share rose by 20.69% to CNY 1.40 per share[6] - Revenue for Q3 2020 reached CNY 2,572,088,111.67, a 30.76% increase compared to CNY 1,967,082,956.50 in Q3 2019[11] - Total operating revenue for Q3 2020 reached ¥665.39 million, a 24% increase from ¥536.73 million in Q3 2019[28] - Net profit for Q3 2020 was ¥80.85 million, compared to ¥75.98 million in Q3 2019, reflecting a 3.6% increase[29] - The company reported a total profit of ¥95.28 million for Q3 2020, slightly up from ¥95.23 million in Q3 2019[30] - The total comprehensive income for Q3 2020 was ¥80.85 million, compared to ¥75.98 million in Q3 2019[31] Assets and Liabilities - Total assets increased by 9.39% to CNY 3,825,621,350.83 compared to the end of the previous year[6] - Total liabilities amounted to CNY 1,283,386,208.32, an increase from CNY 1,254,082,667.28 year-over-year[21] - Current assets totaled CNY 1,141,705,250.89, a decrease from CNY 1,327,938,019.17 year-over-year[24] - Non-current assets were CNY 1,091,561,035.16, slightly down from CNY 1,100,205,391.38 year-over-year[24] - The total assets as of September 30, 2020, amounted to CNY 3,825,621,350.83, up from CNY 3,497,088,340.99 at the end of 2019[20] - Total liabilities amounted to CNY 1,254,082,667.28, with current liabilities at CNY 1,214,429,241.35[45] - The total equity attributable to shareholders reached CNY 2,243,005,673.71, reflecting a strong capital position[46] Cash Flow - Net cash flow from operating activities decreased by 46.23% to CNY 97,698,201.24 compared to the same period last year[6] - Cash flow from operating activities for the first three quarters of 2020 was RMB 97.70 million, down from RMB 181.70 million in the same period of 2019[38] - The company reported a total cash inflow from operating activities of CNY 931,292,026.66 for the first nine months of 2020, compared to CNY 689,545,027.00 for the same period in 2019, marking an increase of approximately 35.1%[40] - The company incurred total financing cash outflows of CNY 1,433,314,580.18 in Q3 2020, compared to CNY 1,232,863,762.12 in Q3 2019, reflecting an increase of approximately 16.2%[41] - The net cash flow from financing activities was negative at CNY 796,673,812.21 in Q3 2020, contrasting with a positive net cash flow of CNY 398,762,665.30 in Q3 2019[41] Shareholder Information - The total number of shareholders reached 13,854[8] - The top shareholder, Zhang Aiying, holds 38.28% of the shares, totaling 90,895,000 shares[8] Research and Development - Research and development expenses rose by 36.91% to CNY 98,874,668.75, reflecting increased investment in R&D[11] - Research and development expenses for the first three quarters of 2020 totaled ¥98.87 million, a 37% increase from ¥72.22 million in the same period of 2019[28] Investments and Projects - The company reported an investment income of CNY 5,969,982.06, a significant increase of 1,130.71% compared to CNY 485,083.85 in the previous year[11] - The construction of the second-generation nicotine insecticide project began trial production in June 2020, with successful operations reported[12] - The company is implementing multiple projects, including a 7,000T water-based formulation project and a 23,000T agricultural chemical formulation project[12] Changes in Financial Position - Long-term prepaid expenses increased by 176.95% to CNY 5,252,575.13, primarily due to new land leases[11] - The company adjusted its contract liabilities to CNY 119,863,019.78, indicating a shift in revenue recognition practices[11] - The company adopted new revenue recognition standards effective January 1, 2020, impacting the reporting of contract liabilities[51]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2020, representing a year-on-year increase of 15%[13]. - The net profit attributable to shareholders was RMB 300 million, up 20% compared to the same period last year[13]. - The company's operating revenue for the first half of 2020 was CNY 1,906,696,858.19, representing a 33.30% increase compared to CNY 1,430,357,054.91 in the same period last year[20]. - The net profit attributable to shareholders for the same period was CNY 252,145,035.28, up 25.63% from CNY 200,701,323.43 year-on-year[20]. - The net cash flow from operating activities increased by 79.32% to CNY 131,386,551.86, compared to CNY 73,268,569.42 in the previous year[20]. - The company reported a basic earnings per share of CNY 1.06, reflecting a 26.19% increase from CNY 0.84 in the same period last year[22]. - In the first half of 2020, the company achieved a sales revenue of 1.907 billion yuan, representing a year-on-year growth of 33.30%[43]. - The net profit attributable to the parent company for the same period was 252 million yuan, an increase of 25.63% year-on-year[43]. Market Expansion and Product Development - The company plans to launch three new products in the next quarter, focusing on pest control solutions[13]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share by the end of 2021[13]. - The company has completed the acquisition of a local competitor, which is expected to enhance its production capacity by 30%[13]. - The company plans to focus on expanding its business layout in raw materials, formulations, and exports, while enhancing product dimensions and strengthening business channels[31]. - The increase in revenue is attributed to the strong performance of self-produced raw materials and formulations, as well as the acquisition of the thiamethoxam raw material business[22]. - The company has entered trial production for the Shandong Hailir thiamethoxam and thiamethoxam raw material projects in June 2020[27]. - The company has entered trial production for the second-generation neonicotinoid insecticides, Thiamethoxam and Thiamethoxam, as of June 2020[38]. Research and Development - The company has allocated RMB 100 million for research and development of new technologies in the agricultural sector[13]. - Research and development expenses rose by 64.76% to ¥90,031,117.53, reflecting increased investment in R&D efforts[50]. - The company is planning to increase investment in technological upgrades and research to improve production efficiency and reduce costs[62]. - Intense market competition in the pesticide industry necessitates continuous investment in R&D to develop differentiated products[66]. Financial Management and Risks - The company has identified potential risks related to regulatory changes in the agricultural sector, which may impact future operations[13]. - The company has committed to maintaining a dividend payout ratio of 30% for the fiscal year 2020[13]. - The company has strengthened its management of accounts receivable, contributing to the significant increase in operating cash flow[22]. - The company continues to implement a centralized procurement model for bulk raw materials to mitigate risks associated with market price fluctuations[29]. - The company is exposed to risks from upstream raw material supply and price volatility, which can impact production costs and profit margins[63]. - The company faces risks related to safety production and environmental protection due to the nature of its pesticide production, which involves flammable, explosive, and toxic materials[60]. - Fluctuations in the prices of raw materials and production instability pose significant risks, influenced by market demand and environmental pressures[62]. Environmental Management - The company’s subsidiary, Shandong Hailier, is classified as a key pollutant discharge unit and has implemented effective environmental management measures[94]. - Shandong Hailier's main pollutants include particulate matter, SO2, NOx, and VOCs, with total emissions of 5.9762 tons of particulate matter and 6.9708 tons of SO2 during the reporting period[97]. - The company has obtained environmental management system certification in accordance with GB/T24001-2016/ISO14001:2015 standards for both subsidiaries[94][98]. - Both companies have established emergency response plans for environmental incidents, with Shandong Hailier's plan being reviewed and filed in May 2020[103]. - The company emphasizes safety and environmental protection across its subsidiaries, ensuring all necessary discharge permits are in place[98]. Shareholder and Corporate Governance - The company has committed to not transferring or entrusting the management of shares held prior to the IPO for 36 months from the listing date, with an additional two-year restriction on share reduction thereafter[74]. - The company reported a commitment to compensate investors for losses due to false statements or omissions in the prospectus, with actions to be initiated within five working days of regulatory recognition[78]. - The company appointed Zhongxinghua Accounting Firm as the auditor for the 2020 fiscal year, approved at the 2019 annual general meeting held on May 27, 2020[85]. - The company has a stock repurchase plan, having repurchased and canceled 15,000 restricted shares due to one incentive object no longer meeting the incentive conditions[85]. - The company’s board members saw significant increases in their shareholdings, with Zhang Aiying increasing by 25,970,000 shares during the reporting period[132]. Financial Position - The company's total assets reached CNY 3,928,159,427.27, a 12.33% increase from CNY 3,497,088,340.99 at the end of the previous year[20]. - The company’s total equity attributable to shareholders was CNY 2,459,731,954.30, compared to CNY 2,243,005,673.71 at the end of 2019, representing an increase of about 9.7%[142]. - The company’s accounts receivable increased significantly to CNY 782,221,860.05 from CNY 380,807,337.93, marking a substantial rise of approximately 105.5%[140]. - Total liabilities as of June 30, 2020, were CNY 1,468,427,472.97, compared to CNY 1,254,082,667.28 at the end of 2019, reflecting an increase of around 17.1%[142]. - The company’s total non-current assets amounted to CNY 1,497,326,993.14, an increase from CNY 1,400,211,039.41, representing a growth of about 6.9%[141].

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2020, representing a year-on-year increase of 15%[13]. - The net profit attributable to shareholders was RMB 300 million, up 20% compared to the same period last year[13]. - The company's operating revenue for the first half of 2020 was CNY 1,906,696,858.19, representing a 33.30% increase compared to CNY 1,430,357,054.91 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was CNY 252,145,035.28, a 25.63% increase from CNY 200,701,323.43 in the previous year[20]. - The net cash flow from operating activities increased by 79.32% to CNY 131,386,551.86, up from CNY 73,268,569.42 in the same period last year[20]. - The basic earnings per share for the first half of 2020 was CNY 1.40, an increase of 18.64% compared to CNY 1.18 in the same period last year[22]. - The company achieved a gross profit margin of approximately 32.9% for the first half of 2020, compared to 31.8% in the same period of 2019[148]. Business Expansion and Development - The company expanded its user base by 10% in the agricultural sector, reaching a total of 1.5 million active users[13]. - The company plans to launch three new pesticide products by the end of 2020, targeting a market share increase of 5%[13]. - The company is exploring potential acquisitions in the biotechnology sector to enhance its product portfolio[13]. - The company continues to focus on expanding its business layout in raw materials, formulations, and exports, enhancing its comprehensive competitiveness[31]. - The company has entered trial production for the Shandong Hailir thiamethoxam and thiamethoxam raw material projects in June 2020[27]. - The company has entered trial production for the second-generation neonicotinoid insecticides, Thiamethoxam and Thiamethoxam, as of June 2020[38]. - The company has expanded its overseas market presence, obtaining support registrations for over 900 products in 50 countries, including Australia and New Zealand[41]. Research and Development - Research and development expenses increased by 25% to RMB 150 million, focusing on innovative agricultural solutions[13]. - The increase in revenue is attributed to the strong performance of self-produced raw materials and formulations, as well as the acquisition of the thiamethoxam raw material business[22]. - The company has a strong R&D capability, recognized as a key high-tech enterprise under the National Torch Program, with a comprehensive pesticide R&D center[39]. - The company aims to enhance its comprehensive competitiveness by focusing on the three major business layouts of active ingredients, formulations, and exports[41]. Risk Management - The company has identified key risks including regulatory changes and market competition, with strategies in place to mitigate these risks[13]. - The company faces risks related to safety production and environmental protection due to the nature of its pesticide production, which involves flammable, explosive, and toxic materials[60]. - The company is committed to enhancing safety management and emergency response mechanisms to mitigate risks associated with production processes[61]. - Price fluctuations of raw pesticide products are influenced by market demand, upstream petrochemical prices, and environmental pressures, leading to production instability risks[62]. - The company is exposed to risks from upstream raw material supply and price volatility, which can impact production costs and profit margins[63]. Financial Position - The company's total assets at the end of the reporting period were CNY 3,928,159,427.27, a 12.33% increase from CNY 3,497,088,340.99 at the end of the previous year[20]. - The company’s net assets attributable to shareholders increased by 9.66% to CNY 2,459,731,954.30 from CNY 2,243,005,673.71 at the end of the previous year[20]. - The total liabilities as of June 30, 2020, were CNY 1,468,427,472.97, compared to CNY 1,254,082,667.28 at the end of 2019, reflecting an increase of around 17.1%[142]. - The total equity attributable to shareholders was CNY 2,459,731,954.30, compared to CNY 2,243,005,673.71 at the end of 2019, representing an increase of about 9.7%[142]. Shareholder and Governance - The actual controller and shareholders committed to not transferring or entrusting the management of shares for 36 months post-IPO, with a further two-year restriction on share reduction thereafter[74]. - The company appointed Zhongxinghua Accounting Firm as the auditor for the 2020 fiscal year, approved at the 2019 annual general meeting held on May 27, 2020[85]. - The company has a stock price stabilization plan in place to protect the interests of minority shareholders, which will be activated if the stock price falls below the net asset value per share within three years of its IPO[83]. - The company has not faced any penalties or corrective actions from regulatory bodies during the reporting period[85]. Environmental Management - The company’s subsidiary, Shandong Hailier, is classified as a key pollutant discharge unit and has implemented effective environmental management measures[94]. - The company emphasizes safety and environmental protection across its subsidiaries, ensuring all necessary discharge permits are in place[98]. - Shandong Hailier's environmental protection facilities include waste gas treatment systems such as RTO devices and bag dust collectors, with all facilities operating normally during the reporting period[101]. - Both companies have established emergency response plans for environmental incidents, with Shandong Hailier's plan being reviewed and filed in May 2020[103]. - The company has established an environmental self-monitoring plan in compliance with national regulations[113]. Accounting and Financial Reporting - The financial report was approved by the board of directors on August 27, 2020[170]. - The financial statements are prepared based on the assumption of going concern, indicating the company has the ability to continue operations for at least 12 months from the reporting date[173]. - The financial statements comply with the requirements of the accounting standards and reflect the company's financial position as of June 30, 2020, and the operating results for the first half of 2020[174]. - The company follows specific accounting treatments for business combinations, distinguishing between those under common control and those not under common control[178][180].