Financial Performance - The company's operating revenue for 2021 was approximately ¥2.999 billion, representing a 23.73% increase compared to ¥2.424 billion in 2020[22]. - The net profit attributable to shareholders for 2021 was approximately ¥174 million, a decrease of 29.69% from ¥248 million in 2020[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥128 million, down 37.20% from ¥204 million in 2020[22]. - The net cash flow from operating activities for 2021 was approximately ¥165 million, a decline of 47.02% compared to ¥311 million in 2020[22]. - The total assets at the end of 2021 were approximately ¥2.784 billion, an increase of 16.26% from ¥2.394 billion at the end of 2020[22]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥1.790 billion, up 5.06% from ¥1.704 billion at the end of 2020[22]. - The basic earnings per share for 2021 were ¥0.8512, a decrease of 29.69% from ¥1.2107 in 2020[23]. - The diluted earnings per share for 2021 were also ¥0.8512, reflecting the same percentage decrease as the basic earnings per share[23]. - The weighted average return on net assets for 2021 was 10.10%, down 5.01 percentage points from 15.11% in 2020[23]. - The company's operating costs increased by 36.24% to CNY 2.585 billion, primarily due to rising raw material and shipping costs[44]. Revenue Trends - In Q1, the company reported revenue of approximately ¥640.31 million, which increased to ¥883.69 million in Q4, showing a significant growth trend[26]. - The net profit attributable to shareholders was ¥44.43 million in Q1, dropping to ¥18.21 million in Q3, but rebounding to ¥75.16 million in Q4[26]. - The cash flow from operating activities showed a positive trend, moving from a negative ¥34.08 million in Q1 to a positive ¥98.89 million in Q4[26]. - Total revenue for the year reached CNY 3,834,473,305.64, with a year-on-year increase of 14.40% in domestic sales and 14.62% in international sales[47]. - Revenue from the food and feed additives segment reached approximately ¥957.18 million, with a gross margin of 21.96%, reflecting a 1.4% increase in revenue compared to the previous year[105]. Research and Development - Research and development expenses rose by 19.31% to CNY 88.13 million, reflecting the company's commitment to innovation[44]. - The company holds 41 invention patents and has been involved in several national technology projects, indicating strong R&D capabilities[35]. - The company has completed several R&D projects, including the development of a clean production process for sorbic acid and high-quality potassium sorbate[57]. - The number of R&D personnel is 105, making up 15.17% of the total workforce[56]. - The research and development strategy emphasizes the improvement of existing processes and the development of new products, particularly in food additives and pharmaceutical intermediates[92]. Market Position and Strategy - The company has been recognized as a top enterprise in fine chemicals in China and has received multiple high-tech enterprise certifications, enhancing its market position[32]. - The company is actively pursuing "green carbon reduction" research in line with national policies on carbon neutrality, aiming for sustainable development[32]. - The company adjusted its sales strategy in response to raw material price increases and competitive market conditions, leading to varying sales performance across products[31]. - The company is focused on sustainable development and has implemented strategies to improve its core competitiveness through technological innovation[39]. - The company has established a diversified strategic layout in food science, life science, material science, and high-end fine chemicals[76]. Environmental Compliance - The company has established a standardized environmental management system and has obtained ISO 14001:2004 certification, ensuring compliance with environmental standards[126]. - The company reported a total wastewater discharge of 875,577.5 m³ in 2021, which is within the permitted limit of 891,494 m³[172]. - The actual emissions of SO2 were 4.42 t, significantly below the permitted limit of 80 mg/L, indicating compliance with environmental standards[171]. - The company has implemented a series of environmental protection measures to manage wastewater, waste gas, and solid waste[174]. - The company has achieved successful completion and acceptance of six project phases, with specific production capacities detailed for each product[180]. Governance and Management - The company has established a comprehensive governance structure to protect shareholder rights, ensuring compliance with relevant laws and regulations[195]. - The management team has extensive experience in the fine chemical industry, contributing to the company's competitive strategy and market positioning[36]. - The company has implemented a performance evaluation mechanism for senior management, contributing to improved governance standards[160]. - The company has a structured emergency response mechanism in place for environmental incidents, ensuring timely reporting and action[186]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 10.3163 million yuan[142]. Challenges and Risks - The company faced challenges in export markets due to rising logistics costs and currency fluctuations, which compressed profit margins[31]. - The company is exploring new strategies to optimize cost structures and improve overall profitability[136]. - The company faces market risks due to unpredictable factors arising from the COVID-19 pandemic, despite its products being in the food and pharmaceutical sectors, which typically have stable demand[129]. - The company has been recognized as a high-tech enterprise since 2013, benefiting from a reduced corporate income tax rate of 15%[124]. - If the company fails to obtain high-tech enterprise recognition in future years, the corporate income tax rate will increase to 25%, impacting financial performance[125].

2021 年第三季度报告 证券代码：603968 证券简称：醋化股份 南通醋酸化工股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 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。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 单位：元 币种：人民币 | 项目 | 本报告期 | 本报告期比 上年同期增 | | 年初至报告期 末比上年同期 | | --- | --- | --- | --- | --- | | | | 减变动幅度 | 年初至报告期末 | 增减变动幅度 | | | | (%) | | (%) | | 营业收入 | 704,227,391.40 | 13.23 | 2,115,602,202.75 | 17 ...

Financial Performance - The company's operating revenue for the first half of 2021 was ¥1,411,374,811.35, representing a 20.28% increase compared to ¥1,173,392,532.69 in the same period last year[21]. - The net profit attributable to shareholders decreased by 37.56% to ¥80,682,615.62 from ¥129,224,345.75 year-on-year[21]. - The net cash flow from operating activities dropped significantly by 83.85% to ¥28,654,438.52 compared to ¥177,404,980.20 in the previous year[21]. - The total assets increased by 7.60% to ¥2,576,295,339.37 from ¥2,394,434,224.25 at the end of the previous year[21]. - The basic earnings per share decreased by 38.10% to ¥0.39 from ¥0.63 in the same period last year[22]. - The weighted average return on net assets fell to 4.60%, down from 7.91% in the previous year, a decrease of 3.31 percentage points[22]. - The net profit after deducting non-recurring gains and losses was ¥59,638,746.24, a decrease of 50.44% compared to ¥120,343,382.22 in the same period last year[21]. Operating Costs and Expenses - Operating costs increased by 30.82% to CNY 1,243,388,098.79, primarily due to rising raw material prices and increased sales volume[31]. - Research and development expenses rose by 41.09% to CNY 12,103,548.85, reflecting the company's commitment to new product development[31]. - The price of acetic acid, a key raw material, rose from CNY 3,700 per ton at the beginning of January to CNY 8,100 per ton by mid-June, significantly impacting operational costs[28]. Cash Flow and Liquidity - Cash and cash equivalents decreased by 47.59% to ¥469,828,716.87, accounting for 18.22% of total assets[34]. - Accounts receivable increased by 35.59% to ¥528,479,722.46, representing 20.51% of total assets due to business growth and increased revenue[34]. - Inventory rose by 47.55% to ¥190,347,214.42, making up 7.39% of total assets, attributed to increased finished goods and goods in transit[34]. - Short-term borrowings increased by 14.06% to ¥351,061,100.00, accounting for 13.61% of total assets[34]. Environmental Compliance and Management - The company has established a standardized environmental management system and has obtained ISO 14001:2004 certification, ensuring compliance with environmental regulations[48]. - The company has implemented continuous monitoring for various pollutants to ensure compliance with environmental regulations[67]. - The company has a wastewater treatment capacity of 5000 tons per day, utilizing UASB, anaerobic, and aerobic treatment processes, ensuring compliance with the national wastewater discharge standards[74]. - The company has implemented comprehensive air pollution control measures, including the installation of online monitoring devices for emissions from the pyrolysis furnace and VOC concentrations at the plant boundary[75]. Shareholder and Equity Information - The total number of ordinary shareholders at the end of the reporting period is 15,528[108]. - The largest shareholder, Gu Qingquan, holds 20,866,700 shares, accounting for 10.20% of the total shares[109]. - The company has committed to not transferring more than 25% of its total shares held annually during the tenure of its directors and senior management[94]. - The company has confirmed that it holds 5% or more of the shares in Acetic Acid Chemical, and any reduction in holdings must be announced three trading days in advance[94]. Strategic Initiatives and Market Position - The company has been recognized as one of China's top fine chemical enterprises and a national high-tech enterprise, indicating strong market positioning[28]. - The company is focusing on optimizing its supply chain and enhancing its production capabilities to meet national environmental standards[28]. - The company anticipates uncertainties in market sales for the second half of the year due to fluctuating raw material prices and international shipping costs[30]. - The company has implemented strategic adjustments in marketing and internal management to navigate the challenging business environment[29]. Financial Instruments and Accounting Policies - The company's financial statements are prepared based on the accrual basis of accounting, in accordance with the accounting standards issued by the Ministry of Finance[158]. - The company recognizes the operating results and cash flows of newly acquired subsidiaries from the date they are under common control, while those acquired under different control are included from the purchase date[170]. - Financial assets are derecognized when the group no longer expects to recover the contractual cash flows, typically due to the debtor's financial difficulties[194]. Risk Management and Emergency Preparedness - The company has established an emergency response plan for environmental incidents, last updated in January 2021, to minimize economic losses and ensure public safety[80]. - The environmental risk assessment indicates a significant risk level due to potential major environmental incidents, including water and air pollution[81]. - The company has a 24-hour alarm system in place for early warning of potential environmental incidents[83].

Financial Performance - Operating revenue rose by 26.97% to CNY 640,310,110.93 year-on-year[5] - Net profit attributable to shareholders decreased by 26.16% to CNY 44,426,104.62 compared to the same period last year[5] - The weighted average return on equity decreased by 1.19 percentage points to 2.57%[5] - Total operating revenue for Q1 2021 was CNY 640,310,110.93, an increase of 27% compared to CNY 504,295,509.92 in Q1 2020[21] - Net profit for Q1 2021 was CNY 44,426,104.62, a decrease of 26.2% from CNY 60,164,772.77 in Q1 2020[22] - Basic earnings per share for Q1 2021 were CNY 0.22, down from CNY 0.29 in Q1 2020[22] - The company reported a total comprehensive income of CNY 54,361,795.10 for Q1 2021, compared to CNY 50,852,322.47 in Q1 2020, reflecting an increase of 9.9%[22] Cash Flow - Cash flow from operating activities showed a significant decline of 149.90%, resulting in a net outflow of CNY 34,075,645.75[5] - The net cash flow from operating activities decreased by 149.90% to -34,075,645.75 RMB compared to the previous period due to an increase in accounts receivable and prepayments[11] - The net cash flow from investing activities decreased by 222.85% to -212,888,512.76 RMB, attributed to an increase in cash management investments and fixed asset acquisitions[11] - The net cash flow from financing activities decreased by 61.88% to 42,981,068.49 RMB, primarily due to a reduction in net bank borrowings compared to the previous year[11] - Cash flow from operating activities for Q1 2021 was negative at -¥34.08 million, compared to positive cash flow of ¥68.28 million in Q1 2020[26] - Investment activities resulted in a net cash outflow of -¥212.89 million in Q1 2021, compared to a net inflow of ¥173.29 million in Q1 2020[27] - Cash flow from financing activities resulted in a net inflow of $43.04 million, down from $53.08 million year-over-year[29] Assets and Liabilities - Total assets increased by 5.37% to CNY 2,522,971,652.76 compared to the end of the previous year[5] - Total current assets as of March 31, 2021, amounted to 1,746,342,776.24 RMB, an increase from 1,671,259,843.00 RMB at the end of 2020[14] - The total assets as of March 31, 2021, were 2,522,971,652.76 RMB, compared to 2,394,434,224.25 RMB at the end of 2020[16] - The total liabilities increased to 764,597,026.33 RMB from 690,860,743.55 RMB, indicating a rise in financial obligations[16] - Total liabilities increased to CNY 633,457,346.47 in Q1 2021, up from CNY 600,911,666.13 in Q1 2020, marking a rise of 5.4%[19] - The company's total equity reached CNY 1,654,277,116.27 in Q1 2021, compared to CNY 1,612,131,095.26 in Q1 2020, indicating an increase of 2.6%[19] Investment and Research - Research and development expenses increased by 47.65% to CNY 5,300,069.04, indicating a higher investment in innovation[10] - Research and development expenses increased to CNY 5,300,069.04 in Q1 2021, compared to CNY 3,589,617.00 in Q1 2020, reflecting a growth of 47.6%[21] - Financial derivatives business generated an investment income of CNY 13,388,388.61, up 488.08% year-on-year[10] Shareholder Information - The number of shareholders reached 15,709, reflecting a stable investor base[9] - The total equity attributable to shareholders increased to 1,758,374,626.43 RMB from 1,703,573,480.70 RMB, reflecting retained earnings growth[16] Cash and Cash Equivalents - The company's cash and cash equivalents decreased to 693,280,351.62 RMB from 896,394,201.87 RMB, showing a decline in liquidity[14] - Cash and cash equivalents at the end of Q1 2021 were ¥693.28 million, down from ¥879.48 million at the end of Q1 2020[27] - The total cash and cash equivalents at the end of the period decreased to $587.53 million from $758.72 million in the previous year[29] - The beginning cash and cash equivalents balance was $721.44 million, indicating a strong starting position despite the net decrease[29] Foreign Exchange Impact - The company reported a significant reduction in foreign exchange impact on cash and cash equivalents, decreasing by 87.75% to 869,239.77 RMB compared to the previous period[11] - The company experienced a foreign exchange impact on cash and cash equivalents of $796,716.62, compared to $5.46 million in the previous year[29]

Financial Performance - The company's operating revenue for 2020 was approximately ¥2.42 billion, representing a 7.37% increase compared to ¥2.26 billion in 2019[21] - The net profit attributable to shareholders for 2020 was approximately ¥247.57 million, an increase of 12.01% from ¥221.02 million in 2019[21] - The net cash flow from operating activities was approximately ¥311.02 million, reflecting a 9.01% increase from ¥285.33 million in 2019[21] - The total assets at the end of 2020 were approximately ¥2.39 billion, a 14.61% increase from ¥2.09 billion at the end of 2019[21] - The net assets attributable to shareholders increased to approximately ¥1.70 billion, an 8.23% increase from ¥1.57 billion in 2019[21] - The basic earnings per share for 2020 was ¥1.21, a 12.04% increase from ¥1.08 in 2019[22] - The weighted average return on equity for 2020 was 15.11%, an increase of 0.48 percentage points from 14.63% in 2019[22] - Total revenue for 2020 was approximately 2.62 billion RMB, with quarterly revenues of 504.30 million RMB, 669.10 million RMB, 621.95 million RMB, and 628.62 million RMB respectively[24] - Net profit attributable to shareholders for the year was approximately 247.56 million RMB, with quarterly profits of 60.16 million RMB, 69.06 million RMB, 65.24 million RMB, and 53.10 million RMB[24] - The company reported a net cash flow from operating activities of 310.02 million RMB for the year, with quarterly cash flows of 68.28 million RMB, 109.12 million RMB, 92.97 million RMB, and 40.65 million RMB[24] Dividend Distribution - The company plans to distribute a cash dividend of ¥5 per 10 shares, totaling approximately ¥102.24 million[5] - The cash dividend distribution for 2020 represents 41.30% of the net profit attributable to ordinary shareholders, compared to 46.26% in 2019 and 50.89% in 2018[132] - The company has not proposed a cash profit distribution plan despite having positive distributable profits for ordinary shareholders during the reporting period[133] Operational Efficiency - The company adopted a centralized procurement model and a sales strategy combining direct and channel sales to enhance operational efficiency[31] - The company achieved a gross profit margin of 26.32% in international markets, with a year-on-year increase of 3.35 percentage points[50] - The gross profit margin for the food feed segment was 35.22%, with a year-on-year increase of 4.51 percentage points[50] - The company reported a significant reduction in sales expenses by 46.24% to CNY 26,877,767.08 due to the implementation of new revenue recognition standards[56] Research and Development - Research and development expenses amounted to CNY 73,866,887.37, representing 3.05% of total operating revenue[56] - The total number of R&D personnel was 125, accounting for 16.56% of the company's total workforce[56] - The company completed several R&D projects aimed at improving product quality and reducing production costs, including new processes for potassium sorbate and acetylsulfonic acid potassium[57] - The company is committed to enhancing its R&D capabilities, with a focus on process improvements and energy-saving technologies in food/feed additives, and clean production technologies for acetic and pyridine derivatives[89] Market Position and Strategy - The company operates in high-end specialty chemicals, focusing on acetic acid derivatives and pyridine derivatives, with applications in food preservation, pharmaceuticals, and dyes[30] - The company has established stable partnerships with key domestic and international clients, enhancing its brand recognition in the industry[35] - The company is focusing on a diversified strategic layout centered on food science, life science, material science, and high-end fine chemicals, leveraging 60 years of industry experience[75] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[200] Environmental and Safety Compliance - The company emphasizes safety and environmental protection, aiming for high standards in waste discharge and striving for environmental A-level certification[45] - The company has implemented a comprehensive quality management system, certified by multiple international standards, ensuring high product quality[38] - The company has established a comprehensive safety management system to mitigate risks associated with hazardous chemicals in its production processes[127] - The company has implemented continuous monitoring for various pollutants, ensuring compliance with environmental regulations[162] Social Responsibility - The company donated 16.43 tons of 75% alcohol disinfectant, valued at 95,633 RMB, to frontline medical institutions during the early stages of the COVID-19 pandemic[151] - The company contributed 50,000 RMB to support community workers in pandemic prevention efforts[151] - The company actively participates in social responsibility initiatives, including poverty alleviation through consumption and establishing dedicated sales counters[154] Challenges and Risks - The company has detailed the risks it faces, including market, tax, safety, and environmental risks, in the report[7] - The company faces challenges from economic and political environments, including increased regulatory pressure for safety and environmental protection, necessitating a shift towards "green chemistry"[75] - The company acknowledges potential risks from changes in tax policies that could affect its tax rate and overall financial performance[125] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 15,777, an increase from 15,709 at the end of the previous month[186] - The top ten shareholders hold a total of 100,000,000 shares, with the largest shareholder, Gu Qingquan, owning 20,866,700 shares, representing 10.20% of the total[188] - The company has not experienced any changes in its ordinary share capital structure during the reporting period[184]

2020 年第三季度报告 公司代码：603968 公司简称：醋化股份 南通醋酸化工股份有限公司 2020 年第三季度报告 2.1 主要财务数据 1.1 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、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1 / 22 1.3 公司负责人庆九、主管会计工作负责人颜美华 及会计机构负责人（会计主管人员） 王玉娟保证季度报告中财务报表的真实、准确、完整。 | 目录 | | --- | 1.4 本公司第三季度报告未经审计。 | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 5 | | 四、 | 附录 | 8 | 二、 公司基本情况 2020 年第三季度报告 一、 重要提示 | 项目 | 本期金额 | 年初至报告期末金额 | 说明 | | --- | --- | --- | --- | | | （7－9 月） | （1-9 月） | | | 非流动资产处置损益 | -2,724,64 ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥1,147,302,484.21, representing a 6.88% increase compared to ¥1,073,485,002.27 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥129,224,345.75, a 30.73% increase from ¥98,848,539.64 in the previous year[18]. - The net cash flow from operating activities increased by 65.55% to ¥177,404,980.20, compared to ¥107,162,958.89 in the same period last year[19]. - The total assets of the company at the end of the reporting period were ¥2,285,626,867.71, a 9.40% increase from ¥2,089,275,738.61 at the end of the previous year[19]. - The basic earnings per share for the first half of 2020 was ¥0.63, up 31.25% from ¥0.48 in the same period last year[20]. - The weighted average return on net assets increased by 1.34 percentage points to 7.91% compared to 6.57% in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥120,343,382.22, a 36.32% increase from ¥88,279,705.74 in the same period last year[19]. - The total operating revenue for the first half of 2020 reached ¥1,147,302,484.21, an increase of 6.8% compared to ¥1,073,485,002.27 in the same period of 2019[110]. - Net profit for the first half of 2020 was ¥129,224,345.75, representing a 30.7% increase from ¥98,848,539.64 in the previous year[111]. - Basic and diluted earnings per share increased to ¥0.63, compared to ¥0.48 in the first half of 2019, marking a growth of 31.3%[112]. Cash Flow and Investments - The company’s cash flow from operating activities increased by 65.55% to CNY 177,404,980.20, driven by increased payments for goods and tax reductions[34]. - Cash inflows from operating activities amounted to CNY 872,103,374.46, up from CNY 705,812,279.04 in the first half of 2019, representing a growth of approximately 23.6%[116]. - The net cash flow from investing activities was negative CNY 1,590,136.77, an improvement from negative CNY 101,658,471.26 in the same period last year[117]. - The company received CNY 640,000,000.00 from investment recoveries, consistent with CNY 642,000,000.00 in the previous year[117]. - The company reported a cash inflow from financing activities of CNY 453,074,741.29, compared to CNY 192,070,300.00 in the same period of 2019, marking a significant increase[117]. Assets and Liabilities - The company’s total assets amounted to CNY 2,285,626,867.71, reflecting a 9.42% increase from the previous year[35]. - Total liabilities reached RMB 695,731,992.05, compared to RMB 515,288,322.48, representing an increase of about 35%[104]. - Short-term borrowings rose to RMB 250,597,641.29 from RMB 166,000,000.00, indicating an increase of approximately 50.8%[103]. - The company's equity attributable to shareholders was RMB 1,589,894,875.66, slightly up from RMB 1,573,987,416.13, reflecting a growth of about 1%[104]. Research and Development - Research and development expenses decreased by 32.43% to CNY 8,578,472.83, reflecting a shift in the stages of R&D activities[34]. - The company focuses on the R&D, production, and sales of acetic acid and pyridine derivatives[136]. Environmental Compliance - The company has established one wastewater discharge outlet and 36 organized exhaust emission outlets, indicating compliance with environmental regulations[65]. - The company reported a total wastewater discharge of 891,494.13 m³ with an actual discharge of 435,149.74 m³ for the first half of 2020, meeting the pollution discharge permit requirements[68]. - The actual COD discharge was 40.25 tons, significantly below the permitted limit of 445.747 tons, indicating compliance with environmental standards[68]. - The company has implemented a series of environmental protection measures, including wastewater treatment systems to manage various types of wastewater generated during production[71]. - The company has a comprehensive emergency response plan consisting of 14 chapters, addressing various environmental risks and response measures[78]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 14,443[92]. - The top ten shareholders held a total of 100% of the shares, with the largest shareholder, Gu Qingquan, owning 20,866,700 shares, accounting for 10.20%[93]. - The company did not distribute any dividends or increase capital reserves in the first half of 2020, with no shares or cash dividends declared[53]. Risks and Challenges - The company faced challenges due to the COVID-19 pandemic, impacting supply chains and customer orders, but managed to maintain stable production and sales[31]. - The company faced various risks including tax, safety, and environmental risks as detailed in the report[6]. - The company faces risks related to public misunderstanding of food additives, which could impact product sales despite the high safety standards of its products[46]. - Environmental protection costs are expected to rise due to stricter regulations, posing a potential risk to profitability[48]. - International market sales account for approximately 50% of total sales, with current global challenges due to the COVID-19 pandemic affecting demand[49]. Corporate Governance - The company has retained the accounting firm for the 2020 financial audit, as approved in the 2019 annual shareholders' meeting[57]. - There were no significant lawsuits or arbitration matters during the reporting period[57]. - The integrity status of the company and its major shareholders remained good, with no unfulfilled court judgments or significant debts due[57]. - The actual controller and major shareholders have committed to not transferring more than 25% of their shares during their tenure and not transferring any shares for six months after leaving their positions[54]. Accounting Policies - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position as of June 30, 2020, and the operating results for the first half of 2020[141]. - The company follows specific accounting policies for fixed asset depreciation, intangible asset amortization, and revenue recognition[140]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[147].

Financial Performance - Net profit attributable to shareholders rose by 15.7% to CNY 60,164,772.77 year-on-year[8] - Operating revenue decreased by 8.57% to CNY 493,206,445.23 compared to the same period last year[8] - Total revenue for Q1 2020 was ¥493,206,445.23, a decrease of 8.6% compared to ¥539,452,967.94 in Q1 2019[27] - Net profit for Q1 2020 reached ¥60,164,772.77, an increase of 15.5% from ¥52,000,043.48 in Q1 2019[28] - Basic earnings per share for Q1 2020 were ¥0.29, compared to ¥0.25 in Q1 2019[28] - Operating profit for Q1 2020 was ¥60.24 million, slightly higher than ¥58.91 million in Q1 2019, indicating a growth of 2.3%[31] - Net profit for Q1 2020 reached ¥51.60 million, up 2.2% from ¥50.47 million in Q1 2019[31] Cash Flow - Net cash flow from operating activities increased by 60.85% to CNY 68,282,631.06 year-on-year[8] - The net cash flow from operating activities for Q1 2020 was CNY 76,781,452.19, an increase of 11.6% compared to CNY 68,772,617.68 in Q1 2019[36] - Cash inflow from operating activities totaled CNY 309,841,936.22, compared to CNY 280,242,363.14 in the previous year, indicating a year-over-year increase of 10.6%[36] - Cash flow from operating activities increased to ¥68.28 million in Q1 2020, compared to ¥42.45 million in Q1 2019, representing a growth of 60.7%[35] - Cash inflow from financing activities was CNY 224,332,703.20, compared to CNY 170,070,300.00 in Q1 2019, representing a growth of 31.9%[37] - The net cash flow from financing activities for Q1 2020 was CNY 53,079,259.81, slightly up from CNY 49,339,927.18 in Q1 2019, showing an increase of 5.3%[37] Assets and Liabilities - Total assets increased by 8.9% to CNY 2,275,123,569.03 compared to the end of the previous year[8] - Total assets as of March 31, 2020, amounted to CNY 2,275,123,569.03, up from CNY 2,089,275,738.61 at the end of 2019[20] - Current assets totaled CNY 1,599,459,373.82, an increase from CNY 1,388,941,905.38 at the end of 2019[18] - Total liabilities increased to CNY 647,758,483.44 from CNY 515,288,322.48[20] - Total liabilities for Q1 2020 were ¥486,138,168.40, an increase from ¥416,852,048.53 in Q1 2019[23] Inventory and Expenses - Inventory increased by 30.81% to CNY 139,895,595.10, indicating a rise in finished goods stock[13] - The company reported an increase in inventory to CNY 139,895,595.10 from CNY 106,945,056.41[18] - Research and development expenses for Q1 2020 were ¥3,589,617.00, slightly down from ¥3,966,527.04 in Q1 2019[27] - Research and development expenses decreased to ¥2.99 million in Q1 2020 from ¥3.97 million in Q1 2019, a reduction of 24.5%[31] - Financial expenses showed a significant decrease of 227.03% to -CNY 9,453,124.38, primarily due to fluctuations in the USD exchange rate[14] - The company reported a decrease in financial expenses, showing a net income of ¥7.13 million in Q1 2020 compared to an expense of ¥5.16 million in Q1 2019[31] Shareholder Information - The number of shareholders reached 13,443 at the end of the reporting period[12] Other Comprehensive Income - Other comprehensive income for Q1 2020 was a loss of ¥9,312,450.30, contrasting with a gain of ¥8,781,249.94 in Q1 2019[28]

Financial Performance - The company's operating revenue for 2019 was CNY 2,257,560,214.28, representing an increase of 11.31% compared to CNY 2,028,186,225.52 in 2018[22] - The net profit attributable to shareholders for 2019 was CNY 221,019,211.27, up by 10.03% from CNY 200,875,470.71 in the previous year[22] - The net cash flow from operating activities increased by 23.96% to CNY 285,328,016.52 in 2019, compared to CNY 230,176,172.58 in 2018[22] - The total assets of the company at the end of 2019 were CNY 2,089,275,738.61, reflecting a growth of 6.25% from CNY 1,966,395,995.10 in 2018[22] - The net assets attributable to shareholders increased by 8.88% to CNY 1,573,987,416.13 at the end of 2019, compared to CNY 1,445,603,034.09 in 2018[22] - The basic earnings per share for 2019 were CNY 1.08, which is a 10.20% increase from CNY 0.98 in 2018[23] - The weighted average return on equity for 2019 was 14.63%, slightly up from 14.51% in 2018[23] - Q1 2023 revenue was approximately CNY 539.45 million, with Q4 2023 revenue reaching CNY 632.99 million, showing a growth of 17.5% quarter-over-quarter[25] - Net profit attributable to shareholders for Q4 2023 was CNY 65.56 million, representing a 15.5% increase compared to Q3 2023[25] - The net cash flow from operating activities in Q4 2023 was CNY 140.96 million, significantly higher than CNY 37.20 million in Q3 2023, indicating improved operational efficiency[25] Research and Development - The company reported a total of 35 invention patents and 4 utility model patents, showcasing its strong R&D capabilities in the fine chemical industry[35] - Research and development expenses increased by 81.78% to 66.4 million RMB, reflecting the company's commitment to enhancing R&D capabilities[49] - The company emphasizes R&D innovation, with a focus on improving existing processes and developing new products, particularly in food additives and pharmaceutical intermediates[88] - The company has established several innovation platforms and holds multiple core proprietary technologies and patents[87] - The company aims to develop a "green factory" and a "BASF-type enterprise" as part of its long-term strategic goals[89] - The company has a structured approach to technology management, including detailed regulations for R&D projects and funding allocation[91] - The company is committed to increasing funding for R&D projects based on their development progress to ensure rapid conversion of research outcomes into benefits[91] Corporate Governance and Shareholder Rights - The company has established a comprehensive corporate governance structure to protect shareholder rights, ensuring compliance with relevant laws and regulations[156] - The company plans to distribute a cash dividend of 5 RMB per 10 shares, totaling 102.24 million RMB, to shareholders after the annual general meeting approval[130] - The cash dividend distribution for 2019 represents 46.26% of the net profit attributable to ordinary shareholders[133] - The cash dividend policy has not been modified during the reporting period, ensuring the protection of minority shareholders' rights[130] - The independent directors supported the dividend proposal, and the supervisory board monitored the process[131] - The remaining undistributed profits will be carried forward to the next fiscal year[131] - The company has not proposed any cash profit distribution plan despite having positive profits available for distribution[134] - The cash dividend distribution will be executed within two months following the approval at the annual general meeting[131] - The company ensures that all shareholders, especially minority shareholders, can express their opinions during the annual general meeting through online voting[131] Environmental and Safety Management - The company has focused on enhancing safety and environmental protection measures, implementing a comprehensive safety management system in response to recent industry incidents[44] - The company has implemented a comprehensive safety information platform integrating monitoring and management systems to enhance operational safety[68] - New regulations in the chemical industry, including the "Guidelines for Safety Production Deep Inspection," have been adopted to improve safety standards[64] - The company is focusing on technological upgrades and clean production to align with new environmental regulations and enhance operational efficiency[70] - The company has established an emergency response plan for environmental incidents, last updated in November 2019, to minimize economic losses and ensure public safety[173] - The company has a 24-hour effective alarm system in place to monitor and respond to potential environmental hazards[175] - Emergency training and drills are conducted at least once a year for company-level plans and biannually for workshop-level plans[177] - The company has designated May as "Environmental Protection Month," actively reducing wastewater, waste gas, and waste liquid emissions through various initiatives[158] - The company reported actual wastewater discharge of 898,775.42 tons in 2019, meeting the discharge permit requirements[163] - The actual COD discharge was 177.06 tons, significantly below the permitted level of 513.07 tons, indicating compliance with environmental standards[163] - The company achieved a NOx emission concentration of 127 mg/m3, which is 47.08% lower than the permitted limit of 240 mg/m3[164] - The company’s SO2 emissions were recorded at 1.98 mg/m3, well below the allowable limit of 4.96 mg/m3, demonstrating effective pollution control measures[164] Market Position and Strategy - The company has established stable partnerships with key domestic and international clients, enhancing its market position and brand recognition[36] - The product structure includes over 40 products across food additives, pharmaceutical intermediates, and dye intermediates, reflecting a diversified product portfolio[35] - The company aims to focus on green chemistry and high-quality development, aligning with national policies on innovation and environmental protection[34] - The company operates in the fine chemical industry, producing food and feed additives, pharmaceutical and pesticide intermediates, and dye intermediates, which are characterized by high added value and wide applications[73] - The fine chemical industry in China has received significant policy and financial support, leading to substantial growth and making it an important independent branch of the chemical industry[74] - The company has established a diversified strategic layout focusing on "food science, life science, material science, and high-end fine chemicals" to promote high-quality development[74] - The market demand for the company's products is less affected by macroeconomic conditions, as they are closely related to daily life and agricultural practices[75] - The fine chemical industry is characterized by rapid product updates and high R&D requirements, necessitating strong technological capabilities and continuous process improvements[75] Financial Structure and Investments - The company has implemented changes to its financial reporting format, including the separation of "receivables" and "payables" into distinct categories, which did not significantly impact its financial status[138] - The new financial instrument standards adopted on January 1, 2019, require the company to assess credit risk continuously, leading to earlier recognition of credit losses compared to previous standards[139] - The company has not reported any significant accounting policy changes or major accounting errors during the reporting period[140] - The company has invested RMB 18,000 million in structured bank deposit products using raised funds, with no overdue amounts[153] - The company also invested RMB 23,000 million in structured bank deposit products using its own funds, with no overdue amounts[153] Shareholder Composition - The company has reported a total of 13,160 ordinary shareholders as of the end of the reporting period, a decrease from 13,443 in the previous month[188] - The top ten shareholders hold a total of 69,382,885 shares, accounting for 33.92% of the total share capital[196] - Gu Qingquan is the largest shareholder with 20,866,700 shares, representing 10.20% of the total shares[190] - Nantong Xinyuan Investment Development Co., Ltd. holds 17,777,392 shares, which is 8.69% of the total shares[190] - Nantong Industrial Holdings Group Co., Ltd. owns 15,893,729 shares, equivalent to 7.77% of the total shares[190] - The shareholders Gu Qingquan, Qing Jiu, Ding Caifeng, Shuai Jianxin, Qian Jin, and Xue Jinquan are acting in concert[191] - There are no strategic investors or general corporations among the top ten shareholders due to new share placements[191] - The company does not have a controlling shareholder situation[193] - The actual controllers are six natural persons, collectively holding 33.92% of the total shares[196] - There are no restrictions on the reduction of shareholding for the top ten shareholders[197] - The company does not have any preferred shareholders with restored voting rights[191]

Financial Performance - Operating revenue for the first nine months rose by 8.38% to CNY 1,624,568,847.01 year-on-year[7] - Net profit attributable to shareholders increased by 3.81% to CNY 155,462,333.38 for the first nine months[7] - Basic earnings per share rose by 4.11% to CNY 0.76[8] - Total operating revenue for Q3 2019 reached ¥551,083,844.74, an increase of 17.3% compared to ¥470,013,932.30 in Q3 2018[23] - Net profit for the first three quarters of 2019 was ¥181,484,662.14, compared to ¥169,936,391.73 in the same period of 2018, indicating a growth of 6.8%[23] - The net profit for Q3 2019 was CNY 56,613,793.74, a slight increase from CNY 55,216,502.56 in Q3 2018, representing a growth of 2.5%[24] - Total profit for Q3 2019 was CNY 67,541,153.02, up from CNY 64,071,130.88 in Q3 2018, reflecting a growth of 7.7%[24] - The company reported a total comprehensive income of CNY 52,452,430.69 for Q3 2019, compared to CNY 55,595,004.71 in Q3 2018, showing a decrease of 4.1%[26] Assets and Liabilities - Total assets increased by 3.97% to CNY 2,044,365,064.41 compared to the end of the previous year[7] - The total assets of the company reached CNY 2,044,365,064.41, up from CNY 1,966,395,995.10 at the beginning of the year[17] - The company's total liabilities increased to CNY 539,939,241.87 from CNY 520,792,961.01, reflecting changes in current liabilities[17] - Total liabilities increased to ¥430,921,527.58 from ¥388,795,064.42, a growth of 10.8%[22] - Total liabilities reached CNY 520,792,961.01, with current liabilities at CNY 427,781,434.08 and non-current liabilities at CNY 93,011,526.93[41] - Total current liabilities represent approximately 21.7% of total assets, indicating a manageable liquidity position[41] Cash Flow - Cash flow from operating activities net amount increased by 9.97% to CNY 144,364,868.03 compared to the same period last year[7] - Cash flow from investing activities decreased by 78.27% to CNY -132,340,902.72, primarily due to increased purchases of structured deposits[13] - The net cash flow from operating activities for Q3 2019 was ¥144,364,868.03, an increase from ¥131,276,825.88 in Q3 2018, representing a growth of approximately 25.5%[33] - The net cash flow from investment activities was -¥132,340,902.72, worsening from -¥74,235,276.71 in Q3 2018, reflecting a decline of approximately 78.5%[33] - The cash inflow from sales of goods and services for the first three quarters of 2019 was ¥787,316,747.70, down from ¥839,705,111.46 in the same period of 2018, a decline of approximately 6.2%[36] Shareholder Information - The total number of shareholders reached 12,366 by the end of the reporting period[11] - The top ten shareholders hold a combined 53.08% of the total shares[11] Research and Development - Research and development expenses increased by 42.72% to CNY 34,691,887.99 due to increased investment in R&D projects[13] - Research and development expenses for the first three quarters of 2019 were ¥34,691,887.99, compared to ¥24,307,386.18 in the same period of 2018, a rise of 42.9%[23] Investment Income - Investment income surged by 367.42% to CNY 6,528,803.54, driven by higher returns from financial products and dividends from equity investments[12] - The company recorded investment income of CNY 1,356,038.42 in Q3 2019, a recovery from a loss of CNY -3,825,756.70 in Q3 2018[24] Other Financial Metrics - The weighted average return on equity decreased by 0.26 percentage points to 10.40%[7] - Non-recurring gains and losses totaled CNY -1,811,217.96 for the first nine months[10] - Government subsidies recognized in the first nine months amounted to CNY 12,097,426.58[9] - Long-term equity investments increased to CNY 15,855,732.17, marking a 100% increase due to increased external investments[12]