Financial Performance - The company's operating revenue for the first half of 2019 was ¥2,623,083,541.11, representing an increase of 11.96% compared to ¥2,342,909,417.46 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥86,357,504.27, up 7.32% from ¥80,464,251.33 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥78,638,991.83, reflecting a 5.12% increase from ¥74,811,506.98 in the same period last year[20]. - Basic earnings per share for the first half of the year increased by 7.33% to CNY 0.4498 compared to the same period last year[21]. - Diluted earnings per share also rose by 7.33% to CNY 0.4498 year-on-year[21]. - The net profit attributable to the company after deducting non-recurring gains and losses was CNY 0.4096 per share, reflecting a 5.13% increase year-on-year[21]. - The total comprehensive income for the first half of 2019 was ¥93,778,733.47, compared to ¥80,439,149.86 in the same period of 2018, reflecting a growth of 16.67%[143]. - The company reported a profit distribution of CNY -35,783,350.00, indicating a significant reduction in profit allocation to shareholders[160]. Cash Flow and Financial Position - The net cash flow from operating activities was -¥391,441,359.85, a decline of 7.77% compared to -¥363,205,696.99 in the previous year[20]. - The company's total assets at the end of the reporting period were ¥3,319,337,410.81, an increase of 28.42% from ¥2,584,860,939.97 at the end of the previous year[20]. - The net cash flow from operating activities was negative at CNY -391,441,359.85, a decline of 7.77% compared to CNY -363,205,696.99 in the previous year[60]. - Cash inflow from operating activities totaled CNY 2,461,280,418.69, compared to CNY 2,085,310,846.30 in the same period last year, showing a growth of 18%[148]. - The ending balance of cash and cash equivalents as of June 30, 2019, was CNY 237,905,619.97, compared to CNY 111,933,646.51 at the end of June 2018, an increase of 112.5%[152]. - The total liabilities at the end of the reporting period were CNY 345,608,867.20, reflecting a manageable debt level[162]. - The total equity attributable to shareholders increased to RMB 923,614,969.79 from RMB 865,258,142.99, showing a growth of about 6.7%[135]. Business Operations and Strategy - The main business includes pesticide distribution services, plant protection technology services, and plant protection machinery supply, with no significant changes in the business model[27]. - The company has established long-term stable partnerships with leading international pesticide companies, enhancing its procurement capabilities[30]. - The company operates a "one-stop" pesticide raw material supply platform, integrating upstream resources for downstream clients[31]. - The overseas sales business has expanded to over 40 countries across five continents, focusing on pesticide export trade[33]. - The company has developed targeted crop health solutions through its Plant Protection Technology Center, addressing the specific needs of different crops in various regions[38]. - The company is actively exploring full-service models to meet the needs of large-scale planting entities, enhancing its technical service capabilities in major grain-producing areas[50]. - The company aims to deepen market penetration and strengthen risk control in its export business[58]. Research and Development - Research and development expenses increased by 3.19% to CNY 7,265,886.51, reflecting the company's commitment to enhancing product offerings[60][65]. - The company reported an investment income of ¥8,185,734.02, which is an increase from ¥3,431,840.36 year-on-year[142]. - Research and development expenses for the first half of 2019 were ¥7,265,886.51, slightly up from ¥7,041,449.15 in the previous year[142]. Risks and Challenges - The company faces risks from intensified market competition due to the diversification of supply and demand in the agricultural sector[84]. - The company is exposed to product quality risks, which could lead to legal claims and damage to its reputation if issues arise[88]. - Currency fluctuations, particularly in the USD/RMB exchange rate, could significantly affect the company's overall profitability[90]. - Environmental policy changes may impact pesticide manufacturers, potentially altering the competitive landscape for the company[87]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 12,545[123]. - The largest shareholder, China Agricultural Production Materials Group, holds 96,480,000 shares, representing 50.25% of the total shares[125]. - The company distributed cash dividends of RMB 2.50 per share, totaling RMB 40,000,020, and increased its registered capital to RMB 192,000,096 after a capital reserve transfer[176]. Accounting and Compliance - The company has implemented new accounting policies effective January 1, 2019, in accordance with the Ministry of Finance's requirements[110]. - The company’s financial statements are prepared based on the assumption of going concern, indicating stable profitability and significant cash reserves[181]. - The company’s accounting policies include provisions for bad debts and inventory depreciation, ensuring accurate financial reporting[182]. - The company confirmed financial assets or liabilities upon entering into financial instrument contracts, recognizing gains or losses on disposals on the transaction date[199].

Financial Performance - Operating revenue for the period reached CNY 1,181,259,147.80, reflecting a year-on-year growth of 10.81%[6] - Net profit attributable to shareholders was CNY 28,121,640.41, up 20.30% from the same period last year[6] - The weighted average return on equity increased by 0.26 percentage points to 3.20%[6] - Total operating revenue for Q1 2019 was CNY 1,181,259,147.80, an increase of 10.8% compared to CNY 1,066,029,343.58 in Q1 2018[24] - Net profit for Q1 2019 reached CNY 30,627,300.45, compared to CNY 24,164,980.06 in Q1 2018, representing a year-on-year increase of 26.5%[25] - The total comprehensive income for Q1 2019 was CNY 30,606,733.30, compared to CNY 24,159,321.56 in Q1 2018, marking an increase of 26.8%[25] - Revenue for Q1 2019 was approximately CNY 1.08 billion, a 5.2% increase from CNY 1.03 billion in Q1 2018[27] - Net profit for Q1 2019 reached CNY 28.17 million, up 18.5% from CNY 23.72 million in Q1 2018[27] - Operating profit for Q1 2019 was CNY 38.05 million, an increase of 18.4% compared to CNY 32.12 million in Q1 2018[27] Cash Flow - Cash flow from operating activities improved by 38.27%, totaling CNY -94,675,730.65[6] - Net cash flow from operating activities improved by 38.27% to -¥94,675,730.65, attributed to increased sales collections[12] - Cash flow from operating activities showed a net outflow of CNY 94.68 million, an improvement from a net outflow of CNY 153.37 million in Q1 2018[31] - Investment activities generated a net cash inflow of CNY 129.77 million, compared to CNY 67.68 million in Q1 2018[31] - Financing activities resulted in a net cash outflow of CNY 46.66 million, worsening from a net outflow of CNY 9.38 million in Q1 2018[31] - The net cash flow from financing activities was -47,661,430.94 RMB, worsening from -9,380,072.32 RMB in Q1 2018, indicating increased cash outflows for debt repayment[33] Assets and Liabilities - Total assets increased by 14.57% to CNY 2,961,531,205.78 compared to the end of the previous year[6] - Total liabilities increased to ¥1,974,682,288.56 from ¥1,627,789,846.17, indicating higher financial obligations[18] - Shareholders' equity rose to ¥986,848,917.22 from ¥957,071,093.80, reflecting improved financial health[18] - The company's total assets as of Q1 2019 amounted to CNY 2,825,211,364.04, up from CNY 2,435,930,233.36 in the previous year[22] - Total liabilities for Q1 2019 were CNY 1,881,124,126.48, compared to CNY 1,519,988,696.29 in Q1 2018, indicating a rise of 23.7%[22] - The company's equity totaled CNY 944,087,237.56 in Q1 2019, an increase from CNY 915,941,537.07 in Q1 2018[22] Shareholder Information - The number of shareholders reached 13,439, with the top ten shareholders holding a significant portion of shares[9] Government Subsidies and Tax - The company received government subsidies amounting to CNY 804,443.19, closely related to its normal business operations[6] - Tax and additional charges increased by 88.59% to ¥3,711,099.79 due to sales growth[12] - Other income decreased by 76.88% to ¥434,318.19 primarily due to reduced government subsidies amortization[12] - The company received 1,564,536.66 RMB in tax refunds during Q1 2019, slightly lower than 1,785,513.38 RMB in Q1 2018[32] Research and Development - Research and development expenses for Q1 2019 were CNY 535,238.13, a decrease from CNY 764,250.43 in Q1 2018, reflecting a reduction of 29.9%[24] - Research and development expenses decreased to CNY 303,942.43 from CNY 567,801.18 in Q1 2018, reflecting a reduction of 46.6%[27]

Financial Performance - The company achieved a net profit of RMB 117,476,023.70 for the year 2018, with a total distributable profit of RMB 344,586,197.72 as of December 31, 2018[5]. - The company's operating revenue for 2018 was CNY 3,734,627,172.51, representing a year-on-year increase of 6.60% compared to CNY 3,503,462,176.43 in 2017[23]. - The net profit attributable to shareholders of the listed company reached CNY 115,459,384.22, a significant increase of 27.82% from CNY 90,330,227.59 in the previous year[23]. - The net profit after deducting non-recurring gains and losses increased by 46.11% to CNY 106,203,002.40, driven by increased sales scale and profit[23][26]. - The basic earnings per share for 2018 was CNY 0.7216, a slight decrease of 1.47% compared to CNY 0.7324 in 2017[24]. - The weighted average return on equity decreased to 14.01%, down 8.62 percentage points from 22.63% in 2017[25]. - The company reported non-recurring gains of CNY 9,256,381.82 for 2018, compared to CNY 17,641,674.78 in 2017[29]. - The company achieved operating revenue of CNY 373,462.72 million, an increase of CNY 23,116.50 million, or 6.60% year-on-year[58]. - Operating profit reached CNY 15,694.18 million, up CNY 3,422.20 million, representing a growth of 27.89% compared to the previous year[58]. - Net profit attributable to shareholders was CNY 11,545.94 million, an increase of CNY 2,512.92 million, or 27.82% year-on-year[58]. Dividend Distribution - A cash dividend of RMB 2.50 per 10 shares will be distributed, totaling RMB 40,000,020.00, along with a capital reserve increase of 32,000,016 shares[5]. - The company emphasizes the importance of cash dividends to provide stable and reasonable returns to investors[5]. - In 2018, the company distributed cash dividends amounting to 40,000,020 RMB, with a dividend payout ratio of 34.64%[124]. - The company has a cash dividend policy that ensures a minimum distribution of 20% of the distributable profits each year, contingent on operational stability[121]. Operational Risks and Management - The company has no significant operational risks that could materially affect its production and operations during the reporting period[8]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[4]. - The report includes a risk statement regarding forward-looking statements, indicating that future plans do not guarantee profit forecasts[6]. - The company has a commitment to transparency and accuracy in its financial reporting, as stated by its management[7]. - The company has no significant litigation or arbitration matters reported for the year[139]. - The company has not faced any risks of suspension or termination of listing during the reporting period[138]. Market Presence and Business Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[30]. - The company has established long-term stable partnerships with leading international pesticide companies such as Syngenta, Bayer, and BASF, enhancing its procurement capabilities[35]. - The company operates a "one-stop" pesticide raw material supply platform, integrating high-quality product resources from upstream manufacturers[36]. - The company has expanded its international market presence, providing agricultural products and services to over 40 countries across five continents[39]. - The company has been entrusted with national pesticide reserves and disaster relief pesticide reserves since 2012, ensuring dynamic balance between storage and sales[45]. - The company is focusing on introducing new products and expanding its product line to enhance brand recognition and market presence[111]. - The company is actively planning to establish a raw material trading platform to strengthen supply chain management and increase industry influence[112]. - The company aims to establish a comprehensive service platform centered on plant protection technology services, integrating products, services, and information, to promote sustainable agricultural development and ensure food security[106]. Research and Development - The company reported a significant increase in R&D expenses, which rose by 230.93% to CNY 12,382.19 million[60]. - The company’s R&D expenses increased significantly by 230.93% to ¥12,382,191.32, indicating a strong focus on innovation[69]. - The company has made significant progress in the development of new formulations, including the successful optimization of pyrazole ether fungicide and fluconazole emulsions, which have completed pilot testing and production[87]. - A new patent was granted for a thiazole phosphine microencapsulated suspension agent, and four additional patents were applied for in 2018, indicating a strong focus on innovation[88]. - The company has developed two self-propelled high-stalk crop spraying equipment prototypes, enhancing automation and safety features, with the design of a remote monitoring system for application quality[89]. - Research and development investments have increased by 30%, focusing on sustainable agricultural technologies[190]. Financial Management and Investments - The company has engaged Tianzhi International Accounting Firm with an audit fee of ¥900,000.00 for a four-year term[138]. - The company has a bank wealth management investment of 194,599,441.80 RMB, with an outstanding balance of 189,807,876.80 RMB[149]. - The company is involved in various leasing agreements, with total annual rental amounts including 4,722,027.60 RMB for office space and 2,046,850.83 RMB for warehouse space[146][147]. - The company engaged in various entrusted financial management activities, with a total amount of RMB 43 million in a financial product yielding an annualized return of 4.80%[151]. - The company successfully recovered RMB 220,536.99 from the entrusted financial management activities, indicating effective management of financial assets[151]. - The company’s financial management strategies included investments in various financial products, with a total of RMB 129 million allocated across three different financial institutions[151]. Social Responsibility and Community Engagement - The company’s commitment to social responsibility is evident through its active participation in agricultural development and poverty alleviation programs[154]. - In 2018, the company assisted in poverty alleviation efforts in Jiangxi Province, helping 238 impoverished households and 891 individuals through agricultural support initiatives[156]. - The company implemented targeted agricultural solutions in Hubei Province, enhancing the quality of citrus crops and increasing market demand[155]. Shareholder Structure and Governance - The total number of ordinary shares increased to 160,000,080 shares after a capital reserve conversion, impacting earnings per share positively[164]. - The company’s limited shares decreased from 100 million to 80.4 million, while unrestricted shares increased to 79.6 million, reflecting a shift in shareholding structure[162]. - The company has a total of 100,000,000 restricted shares, with 39,600,000 shares released and 20,000,000 shares added during the year[169]. - The company’s major shareholder, China Agricultural Production Materials Group, has voluntarily extended the lock-up period for its shares by 2 years beyond the statutory 3-year period[177]. - The company reported a total of 15,120,000 shares held by Foshan Yilong Investment Co., accounting for 9.45% of the total shares[174]. - The company has no strategic investors or general corporations that became top 10 shareholders through new share placements[178]. - The actual controller of the company is the Supply and Marketing Group, with a significant stake in other listed companies, holding 50.82% of China Recycled Resources Development Co., Ltd. and 24.91% of Supply and Marketing Group Co., Ltd.[180]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 825, with 319 in the parent company and 506 in subsidiaries[199]. - The employee composition includes 100 production personnel, 527 sales personnel, 41 technical personnel, 80 financial personnel, and 77 administrative personnel[199]. - The company has a total of 52 employees with a graduate degree or above, 371 with a bachelor's degree, and 402 with a college degree or below[199]. - The total remuneration for the chairman and general manager, Su Yi, is 503,400 RMB, while the financial director, Huang Baiji, receives 659,500 RMB[186]. - Total remuneration for all directors, supervisors, and senior management amounted to 3.827 million yuan[196]. - The company has undergone a change in board members and senior management due to term expirations and elections[197].

2018 年第三季度报告 公司代码：603970 公司简称：中农立华 中农立华生物科技股份有限公司 2018 年第三季度报告 1 / 20 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 9 | 2018 年第三季度报告 一、 重要提示 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。 1.3 公司负责人苏毅、主管会计工作负责人黄柏集及会计机构负责人（会计主管人员）谢珊保证 季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 单位：元 币种：人民币 | | 本报告期末 | 上年度末 | 本报告期末比上年度末 | | | --- | --- | --- | --- | --- | | | | | 增减(%) | | | 总资产 | 2,695,704,954.68 | 2,782,912,54 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,342,909,417.46, representing a 3.08% increase compared to CNY 2,272,910,163.52 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2018 was CNY 80,464,251.33, which is a 24.84% increase from CNY 64,454,103.21 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 74,811,506.98, up 21.84% from CNY 61,403,939.43 year-on-year[22]. - Basic earnings per share for the first half of 2018 were CNY 0.5029, a decrease of 21.97% compared to CNY 0.6445 in the same period last year[23]. - Diluted earnings per share for the first half of 2018 were also CNY 0.5029, reflecting the same percentage decrease of 21.97% year-on-year[23]. - The total profit for the period was CNY 115,302,762.28, compared to CNY 103,916,890.25 in the previous year, reflecting a growth of 10.5%[128]. - The company reported an operating profit of CNY 114,679,038.24, which is an increase from CNY 103,872,785.64 in the previous year[128]. Cash Flow and Financial Position - The net cash flow from operating activities for the first half of 2018 was negative CNY 363,205,696.99, a significant decrease compared to a positive CNY 127,572,638.05 in the same period last year, reflecting a 384.71% decline[22]. - The company's cash and cash equivalents decreased to 206,708,575.61 RMB from 406,049,208.21 RMB at the beginning of the period, indicating a decline of approximately 49.1%[119]. - The company’s cash flow from operating activities showed a negative net amount of CNY -363,205,696.99, a decline of 384.71% compared to the previous year[60][61]. - The company reported a decrease in cash flow from operating activities, with outflows totaling CNY 2,448,516,543.29, compared to CNY 1,818,420,992.36 last year[134]. - The total cash and cash equivalents at the end of the period were CNY 138,007,851.47, an increase from CNY 115,153,230.58 in the previous year[135]. Assets and Liabilities - As of June 30, 2018, the total assets amounted to CNY 2,646,758,640.67, down 4.89% from CNY 2,782,912,548.63 at the end of the previous year[22]. - The total liabilities decreased to CNY 1,735,752,013.01 from CNY 1,916,561,720.83, reflecting a decline of approximately 9.5%[121]. - Current liabilities amounted to CNY 1,708,959,196.00, down from CNY 1,885,749,593.28, a reduction of about 9.4%[120]. - The accounts receivable surged by 156.71% to CNY 530,449,745.91, attributed to the peak sales season and pending settlements[63][64]. - The company’s short-term borrowings increased by 47.37%, reaching CNY 853,253,845.06, indicating a rise in financing needs[63][64]. Business Operations and Strategy - The main business includes pesticide distribution services, plant protection technology services, and plant protection machinery supply, with no major changes in the core business[30]. - The company has established long-term stable partnerships with leading international pesticide companies, enhancing its procurement capabilities[32]. - The company has expanded its export trade in pesticide formulations and raw materials, achieving sales in multiple countries including Argentina, South Africa, and Russia[35]. - The company aims to enhance its integrated plant protection service system to improve sales channels and product sales[30]. - The company has established a comprehensive agricultural protection technology service model, enhancing brand influence among farmers and promoting pesticide sales through field trials and demonstrations[38]. Shareholder Information - The total share capital increased to 160,000,080 shares after a capital reserve conversion of 26,666,680 shares[99]. - The largest shareholder, China Agricultural Production Materials Group Corporation, held 80,400,000 shares, representing 50.25% of the total shares[106]. - The company has a lock-up period of 36 months for shares held by major shareholders, during which they cannot transfer or manage their shares[84]. - The company confirmed that its subsidiaries are not in heavily polluting industries, and environmental monitoring reports met regulatory requirements[94]. Risks and Challenges - The company faces risks from intensified market competition, changes in cooperation relationships with pesticide manufacturers and distributors, and fluctuations in exchange rates[72][76]. - The company experienced a decline in export scale due to enhanced risk control measures, resulting in a decrease in international sales[56]. Accounting and Compliance - The financial statements are prepared based on the assumption of going concern, indicating confidence in future operations[155]. - The company operates under the Chinese accounting standards, ensuring compliance and transparency in financial disclosures[157]. - There were no significant changes in accounting policies or estimates during the reporting period[95]. - The company has a well-defined accounting policy for bad debt provisions and inventory write-downs, ensuring accurate financial reporting[156].

[I. Important Notice](index=3&type=section&id=I.%20Important%20Notice) The company's management ensures the truthfulness, accuracy, and completeness of this quarterly report and assumes corresponding legal responsibilities, noting that the quarterly financial statements are unaudited [Report Authenticity and Audit Statement](index=3&type=section&id=2.1-2.4) The company's management guarantees the report's integrity and legal responsibility, explicitly stating that the quarterly financial statements are unaudited - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility for its content[6](index=6&type=chunk) - This company's first-quarter report is unaudited[6](index=6&type=chunk) [II. Company Basic Information](index=3&type=section&id=II.%20Company%20Basic%20Information) This section provides an overview of the company's key financial performance, non-recurring items, and shareholder structure for the reporting period [Key Financial Data](index=3&type=section&id=2.5%20Key%20Financial%20Data) In Q1 2018, the company achieved operating revenue of CNY 1.066 billion, a 13.30% increase, and net profit attributable to shareholders of CNY 23.377 million, up 34.10%, indicating steady growth, despite operating cash flow significantly decreasing by 218.19% to -CNY 153 million Key Financial Indicators | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,066,029,343.58 | 940,856,959.30 | 13.30% | | Net Profit Attributable to Shareholders | 23,377,099.10 | 17,432,666.19 | 34.10% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 21,330,138.11 | 16,216,857.87 | 31.53% | | Net Cash Flow from Operating Activities | -153,373,871.56 | 129,768,672.10 | -218.19% | | Basic Earnings Per Share (CNY/share) | 0.18 | 0.17 | 5.88% | | Weighted Average Return on Net Assets | 2.94% | 4.93% | Decrease of 1.99 percentage points | [Non-recurring Gains and Losses Items and Amounts](index=4&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to CNY 2.047 million, primarily comprising government grants of CNY 2.249 million and gains from entrusted investments or asset management of CNY 1.661 million Non-recurring Gains and Losses | Item | Current Period Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit/loss | 2,248,845.69 | | Gains/losses from entrusted investments or asset management | 1,660,641.66 | | Fair value changes in financial assets/liabilities | -537,902.00 | | Other non-operating income and expenses | -126,006.01 | | Impact on minority interests (after tax) | -387,223.52 | | Income tax impact | -811,394.83 | | **Total** | **2,046,960.99** | [Shareholder Information](index=5&type=section&id=2.6%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 19,045 shareholders, with China Agricultural Means of Production Group Co., Ltd. as the controlling shareholder holding 50.25%, indicating a relatively concentrated equity structure - As of the end of the reporting period, the total number of common shareholders was **19,045**[10](index=10&type=chunk) - The largest shareholder is China Agricultural Means of Production Group Co., Ltd., holding **50.25%** of shares, including **67,000,000** restricted shares[10](index=10&type=chunk) [III. Significant Matters](index=7&type=section&id=III.%20Significant%20Matters) This section details major changes in financial statement items and indicators, along with their underlying reasons, and confirms the absence of other significant events [Significant Changes and Reasons for Key Financial Statement Items and Indicators](index=7&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20the%20Company's%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, significant changes occurred across the balance sheet, income statement, and cash flow statement, driven by sales growth increasing accounts receivable and taxes payable, and short-term borrowings rising to support expansion, while operating cash flow faced pressure from increased payments, and investing cash flow improved significantly due to wealth management product redemptions [Balance Sheet Item Changes](index=7&type=section&id=(1)%20Major%20Changes%20in%20Balance%20Sheet%20Items) Key balance sheet changes include a **110.49%** increase in accounts receivable due to sales growth, a **33.51%** rise in short-term borrowings for operational needs, and a **41.84%** decrease in monetary funds due to maturing notes and loan repayments Major Changes in Balance Sheet Items | Statement Item | Change (%) | Explanation | | :--- | :--- | :--- | | Accounts Receivable | 110.49 | Primarily due to sales growth and increased credit limits in the current period | | Taxes Payable | 68.20 | Primarily due to increased VAT payable | | Short-term Borrowings | 33.51 | Primarily due to increased bank short-term borrowings | | Monetary Funds | -41.84 | Primarily due to payments for maturing notes and loan repayments in the current period | | Notes Payable | -47.46 | Primarily due to repayment of maturing notes in the current period | [Income Statement Item Changes](index=8&type=section&id=(2)%20Major%20Changes%20in%20Income%20Statement%20Items) Key income statement changes include a **313.12%** increase in investment income due to higher wealth management returns, while non-operating income significantly decreased by **78.58%** as government subsidies were reclassified to other income under new accounting standards - Investment income increased by **313.12%** year-over-year, primarily due to higher returns from wealth management products[13](index=13&type=chunk) - Non-operating income decreased by **78.58%** year-over-year, primarily due to the reclassification of government subsidies to other income under new accounting standards[13](index=13&type=chunk) [Cash Flow Statement Item Changes](index=8&type=section&id=(3)%20Major%20Changes%20in%20Cash%20Flow%20Statement%20Items) Core cash flow statement changes include a **218.19%** year-over-year deterioration in net cash flow from operating activities due to increased procurement payments and maturing notes, while net cash flow from investing activities significantly improved by **285.89%** due to wealth management product redemptions - Net cash flow from operating activities decreased by **218.19%** year-over-year, primarily due to increased procurement payments and repayment of maturing notes in the current period[13](index=13&type=chunk) - Net cash flow from investing activities increased by **285.89%** year-over-year, primarily due to increased redemptions of wealth management products in the current period[13](index=13&type=chunk) [Other Significant Matters](index=9&type=section&id=3.2-3.4) During the reporting period, the company had no significant matter progress, overdue unfulfilled commitments, or requirements for performance forecast warnings - There were no significant matter developments, no overdue unfulfilled commitments, and no need for a significant change warning regarding cumulative net profit at the end of the next reporting period[14](index=14&type=chunk) [IV. Appendix](index=10&type=section&id=IV.%20Appendix) This section contains the company's unaudited financial statements for the first quarter of 2018, providing detailed data for financial analysis [Financial Statements](index=10&type=section&id=4.1%20Financial%20Statements) The appendix provides the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2018, offering detailed data to support the financial analysis in this report [Consolidated Balance Sheet](index=10&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2018, the company's consolidated total assets were CNY 2.716 billion, a 2.41% decrease from the beginning of the year, with total liabilities at CNY 1.825 billion, and equity attributable to parent company owners at CNY 807 million, up 2.98% from the year's start Consolidated Balance Sheet | Item | Period-end Balance (CNY) | Year-start Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 2,715,714,987.52 | 2,782,912,548.63 | | Total Liabilities | 1,825,199,179.65 | 1,916,561,720.83 | | Total Equity Attributable to Parent Company Owners | 806,596,722.98 | 783,225,036.84 | [Parent Company Balance Sheet](index=12&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2018, the parent company's total assets were CNY 2.568 billion, total liabilities were CNY 1.713 billion, and total owner's equity was CNY 856 million Parent Company Balance Sheet | Item | Period-end Balance (CNY) | Year-start Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 2,568,341,870.38 | 2,660,747,571.70 | | Total Liabilities | 1,712,825,993.15 | 1,828,948,708.33 | | Total Owner's Equity | 855,515,877.23 | 831,798,863.37 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2018, the company's consolidated statements reported total operating revenue of CNY 1.066 billion, operating profit of CNY 34.09 million, and net profit of CNY 24.16 million, with net profit attributable to parent company shareholders at CNY 23.38 million and basic earnings per share of CNY 0.18 Consolidated Income Statement | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 1,066,029,343.58 | 940,856,959.30 | | III. Operating Profit | 34,089,639.30 | 28,478,828.31 | | V. Net Profit | 24,164,980.06 | 20,920,335.85 | | Net Profit Attributable to Parent Company Shareholders | 23,377,099.10 | 17,432,666.19 | | VIII. Earnings Per Share (CNY/share) | 0.18 | 0.17 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2018, the parent company achieved operating revenue of CNY 1.029 billion, operating profit of CNY 32.12 million, and net profit of CNY 23.72 million, serving as the primary source of the company's consolidated profit Parent Company Income Statement | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 1,029,406,211.31 | 945,383,965.17 | | II. Operating Profit | 32,122,384.75 | 31,425,031.46 | | IV. Net Profit | 23,717,013.86 | 23,568,773.60 | [Consolidated Cash Flow Statement](index=17&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2018, the company's net cash flow from operating activities was -CNY 153 million, from investing activities was CNY 67.68 million, and from financing activities was -CNY 9.38 million, with cash and cash equivalents totaling CNY 173 million at period-end Consolidated Cash Flow Statement | Item | Current Period Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -153,373,871.56 | | Net Cash Flow from Investing Activities | 67,677,083.61 | | Net Cash Flow from Financing Activities | -9,380,072.32 | | Net Increase in Cash and Cash Equivalents | -96,622,054.57 | | Cash and Cash Equivalents at Period-end | 172,503,848.30 | [Parent Company Cash Flow Statement](index=19&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2018, the parent company's net cash flow from operating activities was -CNY 103 million, from investing activities was CNY 28.55 million, and from financing activities was -CNY 9.38 million, with cash and cash equivalents totaling CNY 145 million at period-end Parent Company Cash Flow Statement | Item | Current Period Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | -102,793,348.85 | | Net Cash Flow from Investing Activities | 28,550,100.82 | | Net Cash Flow from Financing Activities | -9,380,072.32 | | Net Increase in Cash and Cash Equivalents | -84,857,198.77 | | Cash and Cash Equivalents at Period-end | 144,980,453.95 | [Audit Report](index=20&type=section&id=4.2%20Audit%20Report) This quarterly report is unaudited - The audit report is not applicable as this quarterly report is unaudited[35](index=35&type=chunk)

Financial Performance - The company achieved a net profit of RMB 88,924,184.92 for the fiscal year 2017, with a total distributable profit of RMB 272,191,126.39 after accounting for dividends and reserves[5]. - A cash dividend of RMB 2.5 per 10 shares (including tax) is proposed, totaling RMB 33,333,350, which represents 36.90% of the net profit for the year[5]. - The company's operating revenue for 2017 was CNY 3,503,462,176.43, representing a 3.09% increase compared to CNY 3,398,424,812.35 in 2016[23]. - Net profit attributable to shareholders was CNY 90,330,227.59, a 10.54% increase from CNY 81,717,090.35 in the previous year[23]. - The net cash flow from operating activities surged by 240.85% to CNY 518,829,380.33, primarily due to increased sales collections[24]. - The company's total assets increased by 7.80% to CNY 2,782,912,548.63 from CNY 2,581,459,753.87 in 2016[23]. - The net assets attributable to shareholders rose by 126.98% to CNY 783,225,036.84, driven by public stock issuance and profit contributions[25]. - Basic earnings per share for 2017 were CNY 0.8789, up 7.55% from CNY 0.8172 in 2016[24]. - The weighted average return on equity decreased by 2.85 percentage points to 22.63% compared to 25.48% in 2016[24]. Shareholder and Dividend Policy - The company has established a cash dividend policy, committing to a minimum annual dividend payout ratio of 20% of distributable profits[125]. - The company did not propose a cash profit distribution plan despite having positive distributable profits for ordinary shareholders during the reporting period[129]. - The company has not issued any bonus shares in the last three years, maintaining a focus on cash dividends instead[128]. - The total number of shares for cash dividends in 2017 was 33,333,350, reflecting a consistent dividend policy[128]. - The company has committed to not repurchasing shares during the lock-up period, ensuring shareholder confidence[132]. Operational Risks and Compliance - The company has no significant operational risks that could materially affect its business during the reporting period[8]. - The company has received a standard unqualified audit opinion from Tianzhi International Accounting Firm[4]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[7]. - The company has not faced any risks of suspension or termination of its listing during the reporting period[142]. Business Operations and Strategy - The company continues to focus on pesticide circulation services, plant protection technology services, and plant protection machinery supply as its main business areas[34]. - The company aims to establish a leading platform for the research, production, and supply of plant protection machinery, integrating high-quality pesticides with advanced application machinery[35]. - The company has not reported any significant changes in its main business operations during the reporting period[34]. - The company has established a dynamic supplier evaluation system, selecting 2 to 3 high-quality manufacturers for each major raw material, ensuring product quality and delivery efficiency[36]. - The company has expanded its overseas sales, establishing subsidiaries in Argentina, Ecuador, Colombia, Peru, Bolivia, and the Dominican Republic, enhancing its international market presence[40]. Market and Industry Trends - The company has seen a decrease in pesticide usage in China, with total chemical pesticide usage expected to be around 290,000 tons for the year, slightly down from the previous year[46]. - The company has benefited from the consolidation of the pesticide industry, as smaller firms unable to meet environmental standards are being eliminated, leading to tighter supply and increased prices[46]. - The agricultural chemical industry is experiencing a wave of mergers and acquisitions, with major players consolidating, which may significantly impact the competitive landscape[104]. - The industry concentration is expected to increase due to ongoing environmental regulations and the shift towards larger agricultural entities, which may lead to the elimination of smaller companies[105]. Research and Development - The company improved the formulation and production process of Dimethomorph suspension agent, enhancing production efficiency and product quality, making it more competitive in the market[92]. - The product "Lizao" (46% Fluopyram·Thiamethoxam water-dispersible granules) underwent a formulation upgrade, resulting in higher suspension and dispersion rates, eliminating the need for secondary dilution during use[92]. - The company participated in a national key R&D project to develop intelligent spraying equipment for high-stalk crops, aiming to meet the demand of high-end domestic users[92]. Financial Management - The company reported a decrease in investment cash flow, with a net outflow of CNY 222.03 million, a reduction of 99.01% from the previous year's outflow of CNY 111.57 million[64]. - The company has multiple entrusted loans with amounts including 32,000,000 RMB and 40,000,000 RMB, with interest rates ranging from 2.7% to 3.6%[154]. - The company has a total of 48,000,000 RMB in entrusted loans with a 3.2% interest rate, all of which have been recovered[155]. Governance and Management - The management team comprises industry veterans with over 20 years of experience, enhancing the company's strategic positioning in the pesticide market[55]. - The company has established a strong governance structure with independent directors and a dedicated audit committee to ensure compliance and transparency[188]. - The management team includes experienced professionals with significant roles in various agricultural and financial organizations[186]. - The company has established a competitive compensation management system to attract and retain talent[197]. Employee and Training Initiatives - The number of employees in the parent company is 440, while the main subsidiaries employ 409, totaling 849 employees[196]. - The training plan includes a combination of internal and online training, with performance evaluations to inform promotions and salary increases[199].