广州市浪奇实业股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大 遗漏。 重要内容提示: 1、董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、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。 2、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)声明：保证季度 报告中财务信息的真实、准确、完整。 3、第三季度报告是否经过审计 □是 √否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 1 证券代码：000523 证券简称：*ST 浪奇 公告编号：2021－154 广州市浪奇实业股份有限公司 2021 年第三季度报告 | --- | --- | --- | --- | --- | |------------------------------------------------------|-------------------|-------------------------|--------------------- ...

广州市浪奇实业股份有限公司 2021 年第一季度报告全文 广州市浪奇实业股份有限公司 2021 年第一季度报告 2021-068 2021 年 04 月 1 广州市浪奇实业股份有限公司 2021 年第一季度报告全文 第一节 重要提示 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、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人赵璧秋、主管会计工作负责人李艳媚及会计机构负责人(会计主 管人员)潘国亮声明：保证季度报告中财务报表的真实、准确、完整。 2 广州市浪奇实业股份有限公司 2021 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|-------------------|-------------------|---------------------------| | ...

广州市浪奇实业股份有限公司 2020 年年度报告全文 广州市浪奇实业股份有限公司 2020 年年度报告 2021-065 2021 年 04 月 1 广州市浪奇实业股份有限公司 2020 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 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。 公司负责人赵璧秋、主管会计工作负责人李艳媚及会计机构负责人(会计主 管人员)潘国亮声明：保证本年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 中审众环会计师事务所（特殊普通合伙）为本公司出具了保留意见审计报 告，本公司董事会、监事会和独立董事对相关事项已有详细说明，请投资者注 意阅读。 中审众环会计师事务所（特殊普通合伙）对公司内部控制评价结论为财务 报告内部控制存在重大缺陷，本公司董事会、监事会和独立董事对相关事项已 有详细说明，请投资者注意阅读。 公司在本报告中第四节"经营情况讨论与分析"中"九、公司未来发展的 展望"涉及对未来计划的陈述，该计划不构成公司对投资者的实质性承诺，敬 请投资者及 ...

广州市浪奇实业股份有限公司 2020 年第三季度报告全文 广州市浪奇实业股份有限公司 2020 年第三季度报告 2020 年 10 月 1 广州市浪奇实业股份有限公司 2020 年第三季度报告全文 度报告有关数据可能进行相应调整。 第一节 重要提示 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。但因：截止目前，公安机关、监察机关等有关部门对贸易业务 涉及的存货、应收预付等债权债务相关事项、公司相关人员涉嫌刑事犯罪的有 关侦查工作尚在进行中，公司聘请的中介机构对相关情况也在核查过程中。由 于相关事项涉及金额较大，截止本报告披露日核查工作尚未完成，公司尚无法 判断相关事项对财务报告的影响，如本公司由此对前期会计差错进行更正，对 前期报表进行重述，则本季度报告有关数据可能进行相应调整。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人赵璧秋、主管会计工作负责人李艳媚及会计机构负责人(会计主 | --- | --- | |----------|-------------------------------- ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides essential disclaimers, the report's structural index, and definitions of key terms for clarity [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This chapter includes the company's board of directors, supervisory board, and senior management's assurance of the report's truthfulness, accuracy, and completeness, while also alerting investors to specific risks such as the land reserve of the Guangzhou headquarters plot, and confirming no profit distribution plan for the current reporting period - The company's management guarantees the truthfulness, accuracy, and completeness of this semi-annual report, with no false records, misleading statements, or major omissions[5](index=5&type=chunk) - The company advises investors to pay attention to risks such as the progress of the land reserve for the Chebei plot in Tianhe District, Guangzhou headquarters[7](index=7&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the 2020 semi-annual period[7](index=7&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This chapter provides a comprehensive index of the report's content structure, covering twelve main sections from important notices to financial reports [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This chapter defines the main terms and abbreviations used in the report, including regulatory bodies, company entities, affiliated companies, and professional terms, providing a foundation for understanding the report's content - Clarifies that "the Company" and "Company" in the report refer to "Guangzhou Liby Enterprise Group Co., Ltd."[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's basic information and a summary of its key financial performance metrics [Company Profile](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This chapter provides the company's basic information, including its stock abbreviation "Guangzhou Liby", stock code "000523", listing exchange as Shenzhen Stock Exchange, and details such as the legal representative and contact information | Item | Information | | :--- | :--- | | Stock Abbreviation | Guangzhou Liby | | Stock Code | 000523 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhao Biqiu | [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's key financial indicators significantly declined, with operating revenue decreasing by **43.36%** year-on-year, net profit attributable to shareholders turning from profit to loss with a **538.66%** year-on-year decrease, and net cash flow from operating activities deteriorating sharply by **878.24%** year-on-year | Indicator | Current Reporting Period | Prior Year Period (Adjusted) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 3,888,184,101.06 | 6,864,847,523.35 | -43.36% | | Net Profit Attributable to Shareholders (yuan) | -114,707,826.92 | 26,149,399.52 | -538.66% | | Net Cash Flow from Operating Activities (yuan) | -661,344,245.09 | -67,605,691.61 | -878.24% | | Basic Earnings Per Share (yuan/share) | -0.18 | 0.04 | -550.00% | | Weighted Average Return on Net Assets | -6.20% | 1.28% | -7.48% | | Total Assets (yuan) | 8,641,969,564.87 | 8,892,656,755.31 | -2.82% | | Net Assets Attributable to Shareholders (yuan) | 1,781,364,089.46 | 1,908,622,578.88 | -6.67% | | Item | Amount (yuan) | | :--- | :--- | | Government subsidies included in current profit/loss | 13,818,944.01 | | Gains/losses from entrusted investments or asset management | 2,575,023.09 | | Other non-operating income and expenses | -69,874,792.04 | | **Total** | **-56,474,727.24** | [Company Business Overview](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section outlines the company's primary business activities, significant asset changes, and core competitive advantages [Main Business](index=8&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business involves the production and sale of daily chemical products and chemical raw materials, alongside bulk trade, and has expanded into edible sugar and beverage food sectors through the acquisition of Huatang Food, operating across brand asset management, quality product manufacturing, and modern service industries - The company operates in the chemical raw materials and chemical products manufacturing industry, primarily engaged in daily chemical product production, and has developed chemical raw material production, sales, and bulk trade businesses[30](index=30&type=chunk) - Through the acquisition of Huatang Food, the company added the production and sales of edible sugar and beverages, entering the large consumer goods sector[30](index=30&type=chunk) - The company's Qihua.com is a deeply vertical resource integration platform for the chemical industry chain, combining e-commerce with traditional chemical trade to provide one-stop supply chain services[31](index=31&type=chunk) [Major Asset Changes](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, there were no significant changes in the company's major assets, with decreases in fixed and intangible assets primarily related to the Chebei plot land reserve, and an increase in construction in progress due to investments in the sugar refining project | Asset Item | Change Description | | :--- | :--- | | Fixed Assets | Decreased by 44.72 million yuan, mainly due to fixed assets related to the Chebei plot land reserve entering the clearance phase | | Intangible Assets | Decreased by 10.21 million yuan, mainly due to land use rights related to the Chebei plot land reserve entering the clearance phase | | Construction in Progress | Increased by 63.41 million yuan, mainly due to the sugar refining project | [Core Competitiveness Analysis](index=9&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness is built upon its three business platforms: brand asset management, quality product manufacturing, and modern service industry, leveraging well-known brands, a nationwide production layout with advanced green chemical technology, and an integrated chemical supply chain service platform - Brand Asset Management: Possesses "Liby" and "Gaofuli" two well-known Chinese trademarks, and acquired core food brands like "Hongmian" and "Guangshi" through mergers and acquisitions[35](index=35&type=chunk) - Quality Product Manufacturing: Has established a nationwide production layout centered in Guangzhou Nansha, radiating to Shaoguan in central China and Liaoning in the north, and possesses internationally advanced MES synthesis and application technology[36](index=36&type=chunk)[37](index=37&type=chunk) - Modern Service Business: Its Qihua.com, as a deeply vertical resource integration platform for the chemical industry chain, utilizes a B2P business model and blockchain technology to build a supply chain service system integrating transactions, logistics, finance, and technology[37](index=37&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an overview of the company's operational performance, including main business analysis, non-operating activities, asset and liability status, investment activities, significant asset and equity disposals, analysis of key subsidiaries, and risk management strategies [Operating Overview](index=11&type=section&id=%E6%A6%82%E8%BF%B0) In the first half of 2020, the company swiftly responded to the COVID-19 pandemic by ensuring the supply of disinfection products, proactively adjusted its business structure by reducing low-efficiency trade to stabilize cash flow, continued to advance technological innovation, and accelerated the relocation of its headquarters' Chebei plot, with all initiatives progressing as planned - In response to the COVID-19 pandemic, the company urgently resumed production of washing and disinfection products to ensure market supply and fulfill social responsibility[40](index=40&type=chunk) - To address cash flow pressure, the company proactively adjusted its business structure, orderly exited low-efficiency trade, reduced the proportion of bulk trade business, and tightened customer credit policies[40](index=40&type=chunk) - The company accelerated the overall relocation of its headquarters' Chebei plot in Tianhe District, having received the first and second installments of land compensation totaling approximately **863 million yuan**, accounting for **40%** of the total[43](index=43&type=chunk) [Main Business Analysis](index=12&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Affected by the COVID-19 pandemic and proactive adjustments to its trade business model, the company's operating revenue for the first half of 2020 was **3.89 billion yuan**, a significant **43.36%** year-on-year decrease, with chemical raw materials and products manufacturing revenue down **47.82%**, while sugar, food, and beverage retail revenue grew by **8.78%**, and net cash flow from operating activities was **-661.34 million yuan**, a **878.24%** year-on-year decline, indicating substantial cash flow pressure | Financial Indicator | Current Reporting Period | Prior Year Period | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3.89 billion yuan | 6.87 billion yuan | -43.36% | Impact of pandemic and proactive reduction of low-efficiency chemical trade business scale | | Operating Cost | 3.69 billion yuan | 6.58 billion yuan | -43.93% | Decreased proportionally with the reduction in operating revenue | | Net Cash Flow from Operating Activities | -661.34 million yuan | -67.61 million yuan | -878.24% | Pandemic impact led to reduced sales collection, while contract payments to suppliers continued | | Net Cash Flow from Financing Activities | 375 million yuan | -160 million yuan | 334.49% | Payments to suppliers financed through fundraising | | By Industry | Operating Revenue (yuan) | YoY Change | Gross Profit Margin | Gross Profit Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Chemical Raw Materials and Chemical Products Manufacturing, Daily Necessities Retail | 3,298,893,327.88 | -47.82% | 3.37% | +0.16% | | Sugar, Food, and Beverage Retail | 584,063,308.31 | 8.78% | 14.39% | -0.44% | | By Product | Operating Revenue (yuan) | YoY Change | Gross Profit Margin | Gross Profit Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Industrial Products | 2,971,672,271.01 | -50.29% | 1.87% | -0.70% | | Consumer Products | 327,221,056.87 | -5.06% | 17.00% | +2.72% | | Sugar Products, Food, and Beverage Retail Products | 584,063,308.31 | 8.78% | 14.39% | -0.44% | [Non-Operating Business Analysis](index=15&type=section&id=%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's non-operating activities significantly negatively impacted profit, with non-operating expenses reaching **85.28 million yuan**, accounting for **-71.42%** of total profit, primarily due to provisions for the Xingfa case and asset disposals related to land reserve, none of which are sustainable | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | | :--- | :--- | :--- | :--- | | Investment Income | 2,529,965.22 | -2.12% | Income from wealth management products and profits from investee companies | | Non-Operating Income | 18,108,521.02 | -15.17% | Primarily compensation income corresponding to land reserve disposal materials | | Non-Operating Expenses | 85,283,313.06 | -71.42% | Primarily estimated liabilities for the Xingfa case and asset disposals related to land reserve | [Asset and Liability Status Analysis](index=15&type=section&id=%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) As of the end of the reporting period, the company's total assets were **8.64 billion yuan**, a slight decrease of **2.82%** from the end of the previous year, with accounts receivable being the largest component at **42.74%** of total assets; on the liability side, short-term borrowings significantly increased from **19.87%** to **31.19%** of total assets, indicating increased short-term financing to cover payments and rising short-term solvency pressure | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year Period (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 3,693,810,329.14 | 42.74% | 3,125,955,597.41 | 37.91% | +4.83% | | Inventories | 1,571,372,072.58 | 18.18% | 1,826,318,584.13 | 22.15% | -3.97% | | Short-term Borrowings | 2,695,359,246.42 | 31.19% | 1,638,247,535.19 | 19.87% | +11.32% | - As of the end of the reporting period, the company's total restricted assets amounted to **140 million yuan**, primarily consisting of bank acceptance bill and letter of credit deposits[57](index=57&type=chunk) [Investment Status Analysis](index=16&type=section&id=%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investment increased by **92.04%** year-on-year, primarily in non-equity investments, with the core project being the "150,000 tons/year refined sugar low-carbon production technology upgrade project" which has invested **198 million yuan** and is **95%** complete; additionally, the company engaged in white sugar futures derivative investments totaling **114 million yuan** at period-end for hedging purposes - The investment amount during the reporting period was **413 million yuan**, an increase of **92.04%** compared to **215 million yuan** in the same period last year[58](index=58&type=chunk) - The company is undertaking the "150,000 tons/year refined sugar low-carbon production technology upgrade project," with a cumulative actual investment of **198 million yuan** as of the end of the reporting period, and the project progress reaching **95.00%**[59](index=59&type=chunk) - The company participated in white sugar futures derivative investments, with an investment amount of **114 million yuan** at period-end, accounting for **6.39%** of the company's net assets at the end of the reporting period, primarily for hedging purposes[66](index=66&type=chunk) [Significant Asset and Equity Disposals](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company had two significant asset and equity disposal matters during this reporting period: the sale of a Tianhe district plot to Guangzhou Land Development Center for **2.165 billion yuan**, which is proceeding as planned, and the transfer of a **25%** equity stake in Jiangsu Qiheng Agrochemical Technology Co., Ltd. to Jiangsu Green Leaf Agrochemical Co., Ltd. for **203 million yuan**, which faces significant uncertainty due to the buyer's failure to pay the second installment on time - The company sold a plot located at No. 128 Huangpu Avenue East, Tianhe District, Guangzhou, to Guangzhou Land Development Center for **2,164.6839 million yuan**, aiming to revitalize existing assets and optimize asset structure[70](index=70&type=chunk) - The company transferred a **25%** equity stake in Jiangsu Qiheng Agrochemical Technology Co., Ltd. to Jiangsu Green Leaf Agrochemical Co., Ltd. for **202.9975 million yuan**, but as of the end of the reporting period, the company had not yet received the second installment, indicating significant uncertainty in the transaction[73](index=73&type=chunk) [Analysis of Major Holding and Investee Companies](index=22&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) During the reporting period, the operating performance of major subsidiaries diverged, with Guangzhou Huatang Food Co., Ltd. achieving a net profit of **20.08 million yuan** as a primary profit contributor, while Guangdong Qihua Chemical Trading Center Co., Ltd. suffered a significant loss of **18.93 million yuan** due to the pandemic, and other subsidiaries like Shaoguan Liby and Liaoning Liby also recorded losses, reflecting operational pressures in the chemical and trade sectors | Company Name | Company Type | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | | Guangdong Qihua Chemical Trading Center Co., Ltd. | Subsidiary | 1,570,386,647.09 | -18,928,918.06 | | Guangzhou Huatang Food Co., Ltd. | Subsidiary | 584,063,308.31 | 20,082,360.40 | | Shaoguan Liby Co., Ltd. | Subsidiary | 28,472,106.39 | -3,312,782.96 | | Guangzhou Baifeite Trading Co., Ltd. | Subsidiary | 102,410,494.91 | -3,006,738.62 | | Liaoning Liby Industrial Co., Ltd. | Subsidiary | 0.00 | -1,246,761.56 | [Risks Faced by the Company and Countermeasures](index=25&type=section&id=%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces six major risks: weak profitability, production safety and environmental protection, low capacity utilization, large accounts receivable, increasing short-term debt pressure, and the risk of land reserve for the headquarters plot; to address these challenges, the company has implemented measures such as adjusting business structure, strengthening safety management, optimizing the supply chain, establishing special teams for accounts receivable, enhancing cash management, and actively promoting land reserve work - The company faces six major risks: weak profitability, production safety and environmental protection, low capacity utilization, large accounts receivable, increasing short-term debt pressure (asset-liability ratio as high as **79.54%**), and the land reserve of the headquarters' Chebei plot[86](index=86&type=chunk)[88](index=88&type=chunk) - Countermeasures include: adjusting business structure to promote high-margin businesses; strengthening safety production and environmental protection investments; deepening intelligent production base projects to improve capacity utilization; adopting a "one enterprise, one policy" approach to track accounts receivable collection; strengthening cash management and timely debt repayment; and actively and orderly advancing headquarters relocation and land reserve work[86](index=86&type=chunk)[88](index=88&type=chunk) [Significant Matters](index=27&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant events, including ongoing litigation, the company's integrity status, major related party transactions, significant contracts, social responsibility initiatives, and other important disclosures [Litigation Matters](index=28&type=section&id=%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company was involved in multiple litigation and arbitration cases, notably the international economic and trade arbitration case with Xingfa Hong Kong, where the arbitration commission ruled the company to pay **9.37 million USD** plus related fees, for which the company has accrued estimated liabilities and applied to revoke the arbitration award - The international economic and trade arbitration case between the company and Xingfa Hong Kong Import and Export Co., Ltd. has been decided, requiring the company to pay **9.37 million USD** plus interest and other fees; the company has accrued estimated liabilities and applied to the court to revoke the arbitration award[99](index=99&type=chunk) [Integrity Status](index=30&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, the company had two integrity-related matters: the remaining payment for the acquisition of **100%** equity in Guangzhou Huatang Food Co., Ltd. is still outstanding due to cash flow pressure, and the contract dispute case with Xingfa Hong Kong resulted in an unfavorable arbitration award which the company is seeking to revoke - Due to cash flow pressure, the company has not yet fully paid the remaining amount for the acquisition of **100%** equity in Guangzhou Huatang Food Co., Ltd., having paid **55%** (**236 million yuan**), and is still negotiating payment plans with the counterparty[103](index=103&type=chunk) - In the contract dispute case with Xingfa Hong Kong, the arbitration commission issued an unfavorable award against the company, and the company is taking countermeasures such as applying to revoke the arbitration award[104](index=104&type=chunk) [Significant Related Party Transactions](index=30&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in multiple significant related party transactions during the reporting period, including routine operations such as purchasing raw materials from and selling products to associates like Guangzhou Qining Chemical Co., Ltd., and an asset acquisition of **100%** equity in Guangzhou Huatang Food Co., Ltd. from its controlling shareholder, with part of the payment still outstanding | Related Party | Relationship | Type of Related Transaction | Content of Related Transaction | Amount of Related Transaction (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Guangzhou Qining Chemical Co., Ltd. | Associate | Purchase of Goods | Purchase of sulfonic acid and other products | 7,338.24 | | Jiangsu Qiheng Agrochemical Technology Co., Ltd. | Associate | Purchase of Goods | Purchase of ethylene glycol and other raw materials | 3,366.37 | | Guangzhou Qining Chemical Co., Ltd. | Associate | Sale of Goods | Sale of alkylbenzene and other raw materials | 6,877.86 | | Guangzhou Chemical Import and Export Co., Ltd. | Same ultimate controlling company | Sale of Goods | Sale of washing powder, glycerin, etc. | 2,639.16 | - The company acquired **100%** equity in Guangzhou Huatang Food Co., Ltd. from its controlling shareholder Guangzhou Light Industry & Trade Group Co., Ltd. and related party Guangzhou Overseas Chinese Sugar Factory, with a transfer price of **429.6232 million yuan**[114](index=114&type=chunk) [Significant Contracts and Their Performance](index=36&type=section&id=%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This chapter discloses the company's significant contracts, including a site lease agreement with related party Guangzhou Baihua Flavor & Fragrance Co., Ltd., a **35 million yuan** joint liability guarantee for its subsidiary Guangzhou Qihua Co., Ltd., and **180 million yuan** in bank wealth management product investments using its own funds - The company signed a site lease contract with Guangzhou Baihua Flavor & Fragrance Co., Ltd. to lease properties located in Huangpu Avenue East and Nansha District[128](index=128&type=chunk)[129](index=129&type=chunk) - The company provided a guarantee for its subsidiary Guangzhou Qihua Co., Ltd., with an actual guarantee amount of **35 million yuan**, as a joint liability guarantee[132](index=132&type=chunk) - The company invested **180 million yuan** of its own funds in bank wealth management products, with a zero outstanding balance at the end of the reporting period[135](index=135&type=chunk) [Social Responsibility](index=39&type=section&id=%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company and its subsidiaries Guangzhou Liby Daily Chemical Co., Ltd., Guangzhou Huatang Food Co., Ltd., and Shaoguan Liby Co., Ltd. are designated as key pollutant discharge units; the report details their main pollutants, discharge methods, concentrations, and total amounts, confirming that pollution prevention facilities are built and operating normally, and all hold valid discharge permits - The listed company and its subsidiaries (Guangzhou Liby Daily Chemical, Guangzhou Huatang Food, Shaoguan Liby) are classified as key pollutant discharge units by environmental protection authorities[137](index=137&type=chunk) - Each subsidiary has formulated and filed emergency plans for environmental incidents, commissions third-party organizations for annual environmental monitoring, and operates pollution prevention facilities normally[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [Other Significant Matters](index=43&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) This chapter reiterates the progress of three significant matters: **55%** of the payment for the acquisition of **100%** equity in Huatang Food has been made; the transfer of **25%** equity in Qiheng Company faces significant uncertainty due to the transferee's overdue payment; and **40%** of the compensation, or **863 million yuan**, has been received for the land reserve of the Guangzhou headquarters plot - Acquisition of **100%** equity in Guangzhou Huatang Food Co., Ltd.: **55%** of the total price, or **236,292,760.00 yuan**, has been paid[153](index=153&type=chunk) - Transfer of **25%** equity in Qiheng Company: The transferee, Jiangsu Green Leaf, failed to pay the second installment of the equity transfer price in full, leading to significant uncertainty in the transaction[154](index=154&type=chunk) - Land reserve of Guangzhou headquarters plot: The first and second installments of land compensation totaling **862,592,091.20 yuan**, representing **40%** of the total compensation, have been received[154](index=154&type=chunk) [Changes in Shares and Shareholder Information](index=44&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and provides an overview of its shareholder structure [Changes in Shares](index=44&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at **627,533,125** shares, with minor adjustments in share structure due to the unlocking of shares held by a former senior executive upon retirement, resulting in a decrease of **6,840** restricted shares and a corresponding increase in unrestricted shares - The company's total share capital remained unchanged during the reporting period, still at **627,533,125** shares[160](index=160&type=chunk) - Due to the retirement of former CFO Mr. Wang Yingjie, a portion of his shares were released from restrictions, leading to a decrease of **6,840** restricted shares and an increase of **6,840** unrestricted shares[160](index=160&type=chunk) [Shareholder Numbers and Shareholding](index=46&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **36,561** common shareholders, with its top two shareholders, Guangzhou Light Industry & Trade Group Co., Ltd. and Guangzhou State-owned Assets Development Holdings Co., Ltd., both state-owned legal entities, collectively holding over **45%** of the shares, indicating a stable equity structure - The total number of common shareholders at the end of the reporting period was **36,561**[168](index=168&type=chunk) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Guangzhou Light Industry & Trade Group Co., Ltd. | State-owned Legal Person | 31.04% | 194,783,485 | | Guangzhou State-owned Assets Development Holdings Co., Ltd. | State-owned Legal Person | 14.22% | 89,256,197 | [Preferred Shares Information](index=49&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of preferred shares during the reporting period [Preferred Shares](index=49&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[185](index=185&type=chunk) [Convertible Corporate Bonds Information](index=50&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of convertible corporate bonds during the reporting period [Convertible Corporate Bonds](index=50&type=section&id=%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[188](index=188&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=51&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section outlines changes in the company's senior management personnel [Changes in Senior Management](index=51&type=section&id=%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's senior management underwent changes, with former General Manager Mr. Chen Jianbin resigning due to job reassignment, and the Board of Directors appointing Mr. Zhong Lianjun as the new General Manager - On April 27, 2020, Chen Jianbin resigned as the company's General Manager due to job reassignment[191](index=191&type=chunk) - On April 27, 2020, the Board of Directors appointed Zhong Lianjun as the company's General Manager[191](index=191&type=chunk) [Corporate Bonds Information](index=52&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%80%BA%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of outstanding corporate bonds during the reporting period [Corporate Bonds](index=52&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA) As of the approval date of this semi-annual report, the company has no publicly issued and listed corporate bonds on a stock exchange that are either unexpired or have matured and not been fully redeemed - The company has no publicly issued and listed corporate bonds on a stock exchange that are either unexpired or have matured and not been fully redeemed as of the approval date of the semi-annual report[193](index=193&type=chunk) [Financial Report](index=53&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's financial statements for the reporting period [Financial Statements](index=53&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter provides the company's unaudited consolidated and parent company financial statements for the first half of 2020, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, showing total assets of **8.64 billion yuan**, operating revenue of **3.89 billion yuan**, a net loss attributable to parent company shareholders of **115 million yuan**, and net cash flow from operating activities of **-661 million yuan** - The company's 2020 semi-annual financial report is unaudited[197](index=197&type=chunk) | Consolidated Financial Statement Key Data | June 30, 2020 / First Half of 2020 | | :--- | :--- | | **Balance Sheet** | | | Total Assets | 8,641,969,564.87 yuan | | Total Liabilities | 6,873,915,044.26 yuan | | Equity Attributable to Parent Company Owners | 1,781,364,089.46 yuan | | **Income Statement** | | | Total Operating Revenue | 3,888,184,101.06 yuan | | Net Profit Attributable to Parent Company Owners | -114,707,826.92 yuan | | **Cash Flow Statement** | | | Net Cash Flow from Operating Activities | -661,344,245.09 yuan | [Catalogue of Reference Documents](index=191&type=section&id=%E7%AC%AC%E5%8D%81%E4%BA%8C%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists documents available for inspection [Reference Documents](index=191&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6) This chapter lists the reference documents available for inspection, including financial statements signed and sealed by the legal representative, chief financial officer, and head of accounting department, as well as the originals of all publicly disclosed documents and announcements during the reporting period - Reference documents include: accounting statements signed and sealed by the legal representative, chief financial officer, and head of accounting department; and the originals of all documents and announcements publicly disclosed on newspapers designated by the China Securities Regulatory Commission during the reporting period[710](index=710&type=chunk)

Important Notice [Board of Directors' Statement](index=2&type=section&id=) The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The Board of Directors, Supervisory Committee, and senior management ensure the report's content is **true, accurate, and complete**, and bear legal responsibility[4](index=4&type=chunk) - All directors attended the board meeting to review this quarterly report[5](index=5&type=chunk) - The company's principal Zhao Biqiu, chief accountant Li Yanmei, and head of the accounting department Pan Guoliang guarantee the **truthfulness, accuracy, and completeness of the financial statements**[5](index=5&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's performance declined significantly in Q1 2020, with revenue and net profit falling sharply due to the COVID-19 pandemic Key Financial Indicators for Q1 2020 (Adjusted) | Indicator | Current Period | Prior Year Period (Adjusted) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,724,819,116.58 | 3,252,981,887.76 | -46.98% | | Net Profit Attributable to Shareholders (RMB) | -18,862,733.41 | 14,178,461.16 | -233.04% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | -23,333,902.37 | 8,860,011.16 | -363.36% | | Net Cash Flow from Operating Activities (RMB) | -379,602,383.91 | 88,390,534.50 | -529.46% | | Basic Earnings Per Share (RMB/Share) | -0.03 | 0.02 | -250.00% | | Weighted Average Return on Equity | -0.99% | 0.68% | -1.67% | Non-recurring Profit and Loss Items and Amounts | Item | Amount from Year-Begin to Period-End (RMB) | | :--- | :--- | | Government grants included in current profit or loss | 1,605,671.36 | | Fair value changes from trading financial assets | 1,017,202.59 | | Other non-operating income and expenses | 3,102,365.15 | | Less: Income tax impact | 1,053,698.93 | | Less: Minority interest impact (after tax) | 200,371.21 | | **Total** | **4,471,168.96** | [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had 37,331 common shareholders, with the top two state-owned shareholders holding over 45% collectively - At the end of the reporting period, the total number of common shareholders was **37,331**[11](index=11&type=chunk) - The ultimate controller of the top two shareholders, Guangzhou Light Industry & Trade Group Co, Ltd and Guangzhou State-owned Assets Development Holdings Co, Ltd, is the Guangzhou SASAC; no other related party relationships among the top 10 shareholders are known[14](index=14&type=chunk)[15](index=15&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Number of Shares | | :--- | :--- | :--- | :--- | | Guangzhou Light Industry & Trade Group Co, Ltd | State-owned legal entity | 31.04% | 194,783,485 | | Guangzhou State-owned Assets Development Holdings Co, Ltd | State-owned legal entity | 14.22% | 89,256,197 | | Zheng Lihui | Domestic individual | 0.92% | 5,804,400 | | Wu Yanhan | Domestic individual | 0.80% | 5,038,100 | | Cheng Yumin | Domestic individual | 0.71% | 4,467,200 | Significant Events [Analysis of Major Financial Data Changes](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Several financial metrics fluctuated significantly due to the COVID-19 pandemic and adjustments in business strategy Major Financial Data Changes and Reasons | Item | Change | Reason | | :--- | :--- | :--- | | Operating Revenue | -46.98% | Chemical raw material business revenue decreased as some customers had not fully resumed work due to the pandemic | | Net Profit Attributable to Parent Company | -233.04% | Primarily due to the decrease in operating revenue | | Net Cash Flow from Operating Activities | -529.46% | Cash received from sales decreased due to lower operating revenue | | Prepayments | 51.51% | Resulted from changes in settlement methods for some businesses | | Long-term Payables | 339.30% | Received land reserve funds according to contract progress | | Net Cash Flow from Investing Activities | 282.82% | Received land reserve funds according to contract progress | [Progress of Significant Events](index=7&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company advanced key initiatives, including an asset acquisition, land reserve compensation, and the deregistration of a subsidiary - Cash acquisition progress: As of the disclosure date, the company has paid **55% of the total acquisition price** for 100% equity in Guangzhou Huatang Food Co, Ltd, amounting to **RMB 236 million**[26](index=26&type=chunk) - Land reserve progress: The company received the first installment of land compensation of **RMB 431 million** for its Chebei plot in Tianhe District, which helps monetize assets without impacting operations[26](index=26&type=chunk) - Subsidiary deregistration: On March 27, 2020, the company's subsidiary, Guangzhou Qihua Technology Co, Ltd, completed its corporate deregistration process[26](index=26&type=chunk) [Entrusted Wealth Management and Derivatives Investment](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A7%94%E6%89%98%E7%90%86%E8%B4%A2) The company engaged in wealth management and derivatives investments for hedging purposes using idle funds - The company invested in bank wealth management products using its own funds, with transactions totaling **RMB 162 million** during the period and an outstanding balance of **RMB 59.01 million** at period-end[31](index=31&type=chunk) - The company engaged in derivatives investments, including sugar futures and forward foreign exchange contracts, primarily for **hedging against commodity price and currency fluctuation risks**[33](index=33&type=chunk)[35](index=35&type=chunk) Summary of Derivatives Investments (Unit: RMB 10,000) | Investment Type | Initial Investment Amount | Period-End Investment Amount | % of Period-End Net Assets | Actual P/L for the Period | | :--- | :--- | :--- | :--- | :--- | | Sugar Futures | 9,212.73 | 7,061.07 | 3.75% | 10.10 | | Forward FX Contracts | 21,558.64 | 21,558.64 | 11.46% | 0 | | **Total** | **30,771.37** | **28,619.71** | **15.21%** | **10.10** | [Other Compliance Matters](index=8&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company operated in compliance during the reporting period with no overdue commitments or irregular activities - The company had **no overdue unfulfilled commitments** during the reporting period[28](index=28&type=chunk) - There were **no irregular external guarantees or non-operating fund occupations** by the controlling shareholder[37](index=37&type=chunk)[38](index=38&type=chunk) - The company did not engage in securities investment or host any research visits, communications, or interviews during the period[29](index=29&type=chunk)[36](index=36&type=chunk) Financial Statements [Consolidated Balance Sheet](index=11&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2020, the company's asset and liability structure remained relatively stable with minor changes in total assets and liabilities Key Items of the Consolidated Balance Sheet (Unit: RMB) | Item | March 31, 2020 | December 31, 2019 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 8,889,428,676.85 | 8,892,656,755.31 | -0.04% | | Total Liabilities | 7,007,557,187.24 | 6,988,364,996.99 | +0.28% | | Equity Attributable to Parent Company | 1,889,759,845.47 | 1,908,622,578.88 | -0.99% | [Consolidated Income Statement](index=16&type=section&id=3%20%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2020, a 46.98% year-over-year revenue decline led to a net loss of RMB 18.86 million, a sharp reversal from the prior year's profit Key Items of the Consolidated Income Statement (Unit: RMB) | Item | Current Period | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,724,819,116.58 | 3,252,981,887.76 | -46.98% | | Operating Profit | -22,860,337.72 | 14,502,240.48 | -257.63% | | Total Profit | -21,664,770.18 | 16,809,437.10 | -228.90% | | Net Profit Attributable to Parent Company | -18,862,733.41 | 14,178,461.16 | -233.04% | [Consolidated Cash Flow Statement](index=20&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The company's cash flow deteriorated, with a significant operating cash outflow offset by inflows from investing and financing activities Key Items of the Consolidated Cash Flow Statement (Unit: RMB) | Item | Current Period | Prior Year Period | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -379,602,383.91 | 88,390,534.50 | | Net Cash Flow from Investing Activities | 42,250,898.36 | -23,111,109.02 | | Net Cash Flow from Financing Activities | 79,920,075.28 | -232,961,593.54 | | Net Increase in Cash & Cash Equivalents | -257,413,706.75 | -168,180,485.09 | [Financial Statement Adjustments and Audit Status](index=23&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company adopted the new revenue recognition standard, reclassifying 'advances from customers' to 'contract liabilities' with no material impact - The company adopted the revised 'CAS 14 - Revenue' standard, issued by the Ministry of Finance in 2017, effective January 1, 2020[75](index=75&type=chunk)[78](index=78&type=chunk) - The primary adjustment was the reclassification of **RMB 639 million** in 'advances from customers' to 'contract liabilities' in the opening consolidated balance sheet, with **no impact on shareholders' equity**[71](index=71&type=chunk) - The company's Q1 2020 financial report is **unaudited**[79](index=79&type=chunk)

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides crucial notices, the complete table of contents for the annual report, and definitions of key terms to ensure clear understanding [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report, highlighting the progress of the Guangzhou headquarters' Chebei plot land reserve - Company Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report content[5](index=5&type=chunk) - Investors are specifically reminded to pay attention to the progress of the Guangzhou headquarters' Chebei plot land reserve[7](index=7&type=chunk) 2019 Profit Distribution Plan | Indicator | Amount (incl. tax) | | :--- | :--- | | Cash dividend per 10 shares | 0.2 yuan | [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the complete directory structure of the annual report, covering all chapters from company profile to financial reports and reference documents [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, related parties, stock exchanges, and key technical terms like MES, to ensure clear understanding of the report content - MES refers to Methyl Ester Sulfonate, a green surfactant derived from natural oils and fats[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's basic information, contact details, disclosure channels, registration changes, auditor information, and key financial performance metrics for the reporting period [Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides the company's basic registration information, including stock ticker, code, listing exchange, legal representative, registered and office addresses, website, and email Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Guangzhou Langqi | | Stock Code | 000523 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhao Biqiu | | Registered Address | No. 128 Huangpu Avenue East, Tianhe District, Guangzhou | [Contact Persons and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the names, contact addresses, phone numbers, faxes, and email addresses of the company's Board Secretary and Securities Affairs Representative for investor communication Contact Information | Position | Name | Contact Number | | :--- | :--- | :--- | | Board Secretary | Wang Zhigang | 020-82162933 | | Securities Affairs Representative | Zhang Xiaomin | 020-82162933 or 020-82161128 ext. 6228 | [Information Disclosure and Document Availability](index=5&type=section&id=%E4%B8%89%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9) This section specifies the company's designated information disclosure media, the website of the China Securities Regulatory Commission, and the location where the annual report is available, ensuring transparency - The company's designated information disclosure media are "China Securities Journal" and "Securities Times"[18](index=18&type=chunk) - The website designated by the China Securities Regulatory Commission for publishing the annual report is http://www.cninfo.com.cn[18](index=18&type=chunk) [Changes in Registration](index=6&type=section&id=%E5%9B%9B%E3%80%81%E6%B3%A8%E5%86%8C%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) This section states that the company's organizational code and main business have not changed since listing, and details the history of changes in controlling shareholders, with Guangzhou Light Industry & Trade Group Co., Ltd. becoming the largest shareholder in 2005 - The company's main business has not changed since its listing[20](index=20&type=chunk) - On November 1, 2005, Guangzhou Light Industry & Trade Group Co., Ltd. became the company's largest shareholder[20](index=20&type=chunk) [Other Relevant Information](index=6&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%9C%89%E5%85%B3%E8%B5%84%E6%96%99) This section discloses information about the accounting firm engaged by the company, including its name, office address, and the names of the signing accountants - The company engaged Zhonghuan Certified Public Accountants (Special General Partnership) for auditing[21](index=21&type=chunk) - The signing accountants are Hu Hailin and Lu Maoan[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E5%85%AD%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's key accounting data and financial indicators for 2019 and the preceding two years, including operating revenue, net profit, and cash flow, noting retrospective adjustments due to business combinations under common control - The company needs to retrospectively adjust or restate prior-year accounting data due to business combinations under common control[21](index=21&type=chunk) Key Accounting Data and Financial Indicators (After Retrospective Adjustment) | Indicator | 2019 | 2018 (Adjusted) | YoY Change (Adjusted) | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 12,397,507,679.81 | 13,249,116,773.72 | -6.43% | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 61,355,868.10 | 69,366,682.75 | -11.55% | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains and Losses (yuan) | 11,157,240.73 | 55,939,574.29 | -80.05% | | Net Cash Flow from Operating Activities (yuan) | -556,824,311.36 | -441,817,768.42 | 26.03% | | Basic Earnings Per Share (yuan/share) | 0.10 | 0.12 | -16.67% | | Diluted Earnings Per Share (yuan/share) | 0.10 | 0.12 | -16.67% | | Weighted Average Return on Net Assets | 2.68% | 2.10% | 0.58% | | Total Assets (yuan) | 8,892,656,755.31 | 7,718,807,847.17 | 15.21% | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 1,908,622,578.88 | 2,244,402,019.28 | -14.96% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%B8%83%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk) [Key Quarterly Financial Indicators](index=7&type=section&id=%E5%85%AB%E3%80%81%E5%88%86%E5%AD%A3%E5%BA%A6%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section lists the company's key quarterly financial indicators for 2019 and explains that differences from previously disclosed quarterly reports are due to the acquisition of Huatang Food and the retrospective adjustment of the consolidation scope Key Quarterly Financial Indicators for 2019 | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 3,252,981,887.76 | 3,611,865,635.59 | 3,370,198,397.77 | 2,162,461,758.69 | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 14,178,461.16 | 11,970,938.36 | 15,956,229.36 | 19,250,239.22 | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains and Losses (yuan) | 8,860,011.16 | 5,246,312.13 | 2,747,363.02 | -5,696,445.58 | | Net Cash Flow from Operating Activities (yuan) | 88,390,534.50 | -155,996,226.11 | 126,464,974.60 | -615,683,594.35 | - Quarterly financial indicator differences are primarily due to the acquisition of Huatang Food and retrospective adjustment of the consolidation scope[28](index=28&type=chunk) [Non-recurring Gains and Losses and Amounts](index=8&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) This section details the company's non-recurring gains and losses and their amounts for 2019 and the preceding two years, totaling **50.20 million yuan** in non-recurring gains and losses for 2019 Non-recurring Gains and Losses and Amounts | Item | 2019 Amount (yuan) | 2018 Amount (yuan) | 2017 Amount (yuan) | | :--- | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | -136,464.44 | -56,526.09 | 17,445.98 | | Government grants recognized in current profit or loss | 15,241,812.31 | 24,150,701.81 | 26,130,793.91 | | Gains or losses from entrusted investments or asset management | 2,594,169.90 | 0.00 | 1,804,268.52 | | Net profit or loss of subsidiaries from the beginning of the period to the acquisition date under business combinations involving entities under common control | 34,353,645.22 | 0.00 | 0.00 | | Other non-operating income and expenses apart from the above | 6,990,023.00 | 1,900,388.46 | -447,781.52 | | Less: Income tax impact | 5,509,781.62 | 4,152,007.24 | 3,666,079.19 | | Minority interest impact (after tax) | 3,334,777.00 | 4,969,349.33 | 596,861.53 | | Total | 50,198,627.37 | 13,427,108.46 | 27,829,445.20 | [Company Business Overview](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) This section outlines the company's main business activities, significant asset changes, and core competencies, highlighting its transformation and brand portfolio [Main Businesses Engaged by the Company During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business includes daily chemical product manufacturing, chemical raw material production and sales, with new food businesses like edible sugar and beverages added in 2019 through the acquisition of Huatang Food - The company's main business includes daily chemical product production, chemical raw material production, and sales[36](index=36&type=chunk) - In 2019, the acquisition of Huatang Food added new food businesses, including edible sugar and beverages[36](index=36&type=chunk) - The company owns "Langqi", "Gaofuli", "Hongmian", "Guangshi" and other daily chemical and food and beverage brand systems[36](index=36&type=chunk) - Qihua.com, as a deeply vertical resource integration platform for the chemical industry chain, develops e-commerce and daily chemical industrial internet platforms[36](index=36&type=chunk) [Significant Changes in Major Assets](index=10&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, there were no significant changes in the company's equity investments, fixed assets, intangible assets, or construction in progress, and no major overseas assets - Equity investments, fixed assets, intangible assets, and construction in progress did not undergo significant changes[38](index=38&type=chunk) - The company does not have major overseas assets[39](index=39&type=chunk) [Analysis of Core Competencies](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies are built on brand asset management, quality product manufacturing, and modern service industries, supported by strong brands, advanced production bases, and the Qihua.com e-commerce platform - The company has transformed from a traditional manufacturing enterprise into an advanced manufacturing company supported by internet and other advanced technologies, integrating industry and finance[39](index=39&type=chunk) - "Langqi" and "Gaofuli" were awarded "China Famous Trademarks", and after the acquisition, "Hongmian" and "Guangshi" became core food brands[39](index=39&type=chunk) - The company owns the internationally advanced Guangzhou Langqi Nansha Low-Carbon Industrial Park and has signed a strategic cooperation agreement with China Daily Chemical Research Institute to enhance technological capabilities[39](index=39&type=chunk) - Through the acquisition of Huatang Food, the company expanded its business scope; Huatang Food is a leading domestic refined sugar enterprise with brands like "Hongmian" and "Guangshi"[39](index=39&type=chunk)[41](index=41&type=chunk) - Qihua.com is a leading deeply vertical resource integration platform for the chemical industry chain, offering one-stop services including trading, logistics, finance, technology, information, and data[41](index=41&type=chunk) - In 2019, the Daily Chemical Frontline platform, Daily Chemical Hub platform, and Qihua Chemical Encyclopedia software were recognized as Guangdong High-Tech Products[41](index=41&type=chunk) - During the reporting period, the company's core competencies expanded to include the research, production, application, and market sales of refined white sugar and other sugar products[41](index=41&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's operational performance, financial position, investment activities, and future outlook, including key challenges and strategic responses [Overview](index=13&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In 2019, despite an unfavorable external environment, the company achieved a **4.68%** increase in civilian washing product sales revenue, with total operating revenue of **12.398 billion yuan** (down **6.43%**) and net profit attributable to the parent company of **61.36 million yuan** (down **11.55%**) - 2019 civilian washing product sales revenue increased by **4.68%** year-on-year[44](index=44&type=chunk) 2019 Key Operating Performance | Indicator | Amount | | :--- | :--- | | Operating Revenue | 12.398 billion yuan | | YoY Change | -6.43% | | Net Profit Attributable to Parent Company Owners | 61.36 million yuan | | YoY Change | -11.55% | - The company, through the acquisition of Huatang Food, added food and beverage brands such as "Hongmian" and "Guangshi", and initiated their promotion and reshaping[44](index=44&type=chunk) - In 2019, nearly a hundred new product development projects were undertaken, with approximately one-third of the products launched, achieving expected sales targets[45](index=45&type=chunk) - Nansha Langqi's total output remained stable with an increase, Shaoguan Langqi's industrial cleaning agent business sales significantly increased year-on-year, and sulfonated product output grew year-on-year[47](index=47&type=chunk) - The company deepened its "cost reduction and efficiency improvement" project, with Nansha Langqi achieving nearly **10 million yuan** in cost savings and a decrease in energy consumption per unit throughout the year[47](index=47&type=chunk) [Analysis of Main Business](index=14&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In 2019, the company's operating revenue decreased by **6.43%** to **12.398 billion yuan**, mainly due to adjustments in the chemical raw material business and the Huatang Food acquisition, while operating costs decreased by **7.14%** - 2019 operating revenue was **12.398 billion yuan**, a year-on-year decrease of **6.43%**, primarily due to adjustments in the chemical raw material business and the acquisition of Huatang Food[48](index=48&type=chunk) - Operating cost was **11.796 billion yuan**, a year-on-year decrease of **7.14%**[48](index=48&type=chunk) 2019 Key Expense Information | Expense Type | 2019 Amount (yuan) | YoY Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 226,379,161.41 | 7.88% | Increased investment in sales promotion, transportation, brand promotion, and market development expenses | | Administrative Expenses | 133,837,291.05 | 15.50% | Increased loading and unloading fees and personnel expenses | | Financial Expenses | 136,434,078.53 | 52.42% | Increased financing costs due to rising loan interest rates | | R&D Expenses | 39,946,757.02 | 37.77% | Increased R&D personnel salaries and R&D project material costs | - 2019 R&D investment totaled **325 million yuan**, primarily for the development of new environmentally friendly surfactants, functional and green daily chemical products, and energy-saving production technologies[48](index=48&type=chunk) - Net cash flow from operating activities was **-556.82 million yuan**, mainly due to changes in the external operating environment, extended payment terms to customers, and increased labor costs[52](index=52&type=chunk)[77](index=77&type=chunk) - Inventory increased, primarily due to tight raw material supply and rising procurement costs, leading the company to stock up in advance[52](index=52&type=chunk) - Prepayments increased, mainly due to tight raw material supply, rising procurement costs, and the requirement for advance payments for major raw material purchases[52](index=52&type=chunk) 2019 Operating Revenue Composition (by Industry) | Industry | Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Chemical Raw Materials and Chemical Products Manufacturing, Daily Necessities Retail | 11,182,563,338.98 | 90.20% | -6.50% | | Sugar Industry and Food, Beverage Retail | 1,174,133,253.07 | 9.47% | -6.92% | | Other | 40,811,087.76 | 0.33% | 46.15% | 2019 Operating Revenue Composition (by Product) | Product | Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Industrial Products | 10,058,912,806.79 | 81.14% | -7.52% | | Civilian Products | 1,123,554,309.95 | 9.06% | 4.68% | | Sugar Products and Food, Beverage Retail Products | 1,174,133,253.07 | 9.47% | -6.92% | | Other | 40,907,310.00 | 0.33% | 8.47% | 2019 Operating Revenue Composition (by Region) | Region | Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Domestic Sales | 11,989,886,313.10 | 96.71% | -5.68% | | Export Sales | 407,621,366.71 | 3.29% | -14.03% | - During the reporting period, the company acquired Huatang Food, adding sugar manufacturing and food retail businesses, which contributed to an increase in net profit[65](index=65&type=chunk) 2019 Huatang Food Operating Performance | Indicator | Amount (yuan) | | :--- | :--- | | Operating Revenue | 1,181,261,491.19 | | Net Profit | 34,353,645.22 | - Sales to the top five customers accounted for **24.96%** of the total annual sales[68](index=68&type=chunk) - Purchases from the top five suppliers accounted for **35.17%** of the total annual purchases[68](index=68&type=chunk) [Analysis of Non-Core Business](index=22&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-core businesses significantly impacted total profit, with investment income accounting for **25.51%**, non-operating income for **51.23%** (mainly demolition compensation), and non-operating expenses for **42.45%** (mainly demolition compensation expenses) Impact of Non-Core Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation Reason | | :--- | :--- | :--- | :--- | | Investment Income | 20,030,377.26 | 25.51% | Profit from investment projects | | Asset Impairment | -6,892,023.81 | -8.78% | Increase in accounts receivable and inventory | | Non-operating Income | 40,224,814.03 | 51.23% | Primarily demolition compensation income | | Non-operating Expenses | 33,331,255.47 | 42.45% | Primarily demolition compensation expenses | [Asset and Liability Status](index=22&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) At the end of 2019, the company's total assets increased by **15.21%** year-on-year, while net assets attributable to shareholders decreased by **14.96%**, with significant increases in short-term and long-term borrowings primarily for loan payments Significant Changes in Asset and Liability Composition at Year-End 2019 | Item | 2019 Year-End Amount (yuan) | Proportion of Total Assets | 2019 Year-Beginning Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 8,892,656,755.31 | 100% | 7,718,807,847.17 | 100% | 15.21% | | Net Assets Attributable to Shareholders of Listed Company | 1,908,622,578.88 | 21.46% | 2,244,402,019.28 | 29.08% | -14.96% | | Short-term Borrowings | 2,324,895,173.71 | 26.14% | 1,433,378,182.33 | 18.57% | 7.57% | | Long-term Borrowings | 184,717,948.72 | 2.08% | 0 | 0% | 2.08% | - Short-term and long-term borrowings increased, primarily used for loan payments[80](index=80&type=chunk) - The company adopted new financial instrument standards for the first time, impacting the classification and measurement of financial assets[80](index=80&type=chunk) - There were no asset rights restrictions at the end of the reporting period[84](index=84&type=chunk) [Investment Status](index=23&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5) The company's investment amount for the reporting period was **42.96 million yuan**, a **114.81%** increase year-on-year, primarily driven by the **429 million yuan** cash acquisition of 100% equity in Guangzhou Huatang Food Co., Ltd., which generated **34.35 million yuan** in investment profit or loss Reporting Period Investment Amount | Indicator | Amount (yuan) | YoY Change | | :--- | :--- | :--- | | Reporting Period Investment Amount | 42,962,320.00 | 114.81% | - The company cash-acquired 100% equity in Guangzhou Huatang Food Co., Ltd. for **429 million yuan**, with equity transfer completed[86](index=86&type=chunk) - This investment generated a profit or loss of **34.35 million yuan** for the current period[86](index=86&type=chunk) - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Significant Asset and Equity Sales](index=25&type=section&id=%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company sold the land plot at No. 128 Huangpu Avenue East, Tianhe District, Guangzhou, for **216 million yuan** to revitalize assets, and publicly listed and transferred 25% equity in Jiangsu Qiheng Agrochemical Technology Co., Ltd. for **203 million yuan**, with a transferee identified - The company sold the land plot at No. 128 Huangpu Avenue East, Tianhe District, Guangzhou, for **216 million yuan**, which helps revitalize assets and optimize asset structure[94](index=94&type=chunk) - The company publicly listed and transferred 25% equity in Jiangsu Qiheng Agrochemical Technology Co., Ltd. for **203 million yuan**, with Jiangsu Luye Agrochemical Co., Ltd. identified as the transferee[97](index=97&type=chunk) [Analysis of Major Holding and Participating Companies](index=27&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section analyzes the operational performance of the company's major subsidiaries and associates, highlighting Guangzhou Huatang Food Co., Ltd.'s significant contribution to revenue and net profit after its acquisition, and the development of other entities like Guangdong Qihua Chemical Trading Center Co., Ltd Major Holding and Participating Companies' Operating Performance (2019) | Company Name | Company Type | Main Business | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | Shaoguan Langqi Co., Ltd. | Subsidiary | Production and sales of washing powder and other cleaning products | 68,785,486.87 | -5,257,797.77 | | Guangzhou Langqi Daily Necessities Co., Ltd. | Subsidiary | Production and sales of surfactants and other chemical products | 135,714,142.24 | 2,486,496.14 | | Guangzhou Bafete Trading Co., Ltd. | Subsidiary | Wholesale and retail trade | 255,674,532.63 | 266,211.02 | | Guangzhou Daily Chemical Industry Research Institute Co., Ltd. | Subsidiary | Chemical science research, manufacturing: daily chemicals, chemical products | 6,822,306.39 | 1,160,443.55 | | Liaoning Langqi Industrial Co., Ltd. | Subsidiary | Production and sales of surfactants and washing products | 0.00 | -924,739.98 | | Guangdong Qihua Chemical Trading Center Co., Ltd. | Subsidiary | Operation of chemical trading market, property leasing, warehousing management, etc. | 3,780,181,563.88 | 1,086,954.63 | | Guangzhou Huatang Food Co., Ltd. | Subsidiary | Production and sales of sugar and other food products | 1,181,261,491.19 | 34,353,645.22 | | Guangzhou Qining Chemical Co., Ltd. | Associate | Production of surfactants, sales of own products | 103,210,433.57 | -16,549,948.04 | | Jiangsu Qiheng Agrochemical Technology Co., Ltd. | Associate | Production and sales of agrochemical products | 324,579,681.39 | 9,284,610.96 | - The cash acquisition of Guangzhou Huatang Food Co., Ltd. made it a wholly-owned subsidiary, significantly increasing the company's operating revenue and net profit[102](index=102&type=chunk) - Guangdong Qihua Chemical Trading Center Co., Ltd. integrates resources through a B2P model, creating 9 major product matrices to form a win-win ecosystem with full platform resource synergy and empowerment[104](index=104&type=chunk) - Huatang Food produced **140,000 tons** of processed sugar in 2019 and plans to launch a 150,000 tons/year refined sugar low-carbon production technology upgrade project in May 2020 to improve production efficiency[104](index=104&type=chunk) [Structured Entities Controlled by the Company](index=30&type=section&id=%E5%85%AB%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[105](index=105&type=chunk) [Outlook on Company's Future Development](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E5%B1%95%E6%9C%9B) The company aims to become a leader in China's green industry by focusing on brand asset management, quality product manufacturing, and modern service industries, while addressing challenges like intense competition and evolving channel structures - The daily chemical industry faces intense competition in new product development, with e-commerce channel sales doubling their proportion[106](index=106&type=chunk) - The company's future development strategy is to become a leader in China's green industry and an advocate for environmental friendliness, energy conservation, and low carbon[106](index=106&type=chunk) - In brand asset management, 2020 will focus on "rooting in the nine cities of the Greater Bay Area across all business formats, focusing on core towns in Guangdong and Hainan, and expanding nationally through vertical and horizontal integration"[107](index=107&type=chunk) - In quality product manufacturing, the company will accelerate transformation and upgrading, strengthen refined management, and build a digital, flexible, efficient, high-quality, and cost-optimized supply chain[107](index=107&type=chunk) - In modern service industries, the company will deepen the Qihua.com platform ecosystem, continuously expand business, strengthen risk prevention and cost control, and enhance profitability[107](index=107&type=chunk) - 2020 plans include: adhering to profit orientation, improving capital operation quality, strengthening risk control, accelerating innovation achievement transformation, lean production and strong management, and stimulating employee innovation[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - The company faces risks such as weak profitability, production safety and environmental protection, low capacity utilization, and the land reserve of the Tianhe District plot[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - Regarding the risk of the Tianhe District plot land reserve, the company has established a working group to actively promote headquarters relocation and land reserve work, striving to obtain the incentive payment within the stipulated timeframe[113](index=113&type=chunk) [Reception of Research, Communication, Interview, and Other Activities](index=33&type=section&id=%E5%8D%81%E3%80%81%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E6%83%85%E5%86%B5) The company did not engage in any research, communication, or interview activities during the reporting period - The company did not engage in any research, communication, or interview activities during the reporting period[114](index=114&type=chunk) [Significant Matters](index=34&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers important corporate actions including profit distribution, commitment fulfillment, related party transactions, and other significant events impacting the company's operations and financial position [Profit Distribution of Ordinary Shares and Capital Reserve Conversion to Share Capital](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company's 2019 profit distribution plan proposes a cash dividend of **0.20 yuan** (including tax) per 10 shares, with no bonus shares or capital reserve conversion, and has consistently implemented cash dividends over the past three years - The company's 2019 profit distribution plan proposes a cash dividend of **0.20 yuan** (including tax) per 10 shares, with no bonus shares and no capital reserve conversion to share capital[117](index=117&type=chunk)[120](index=120&type=chunk) Cash Dividends for Ordinary Shares in the Last Three Years | Dividend Year | Cash Dividend Amount (incl. tax, yuan) | Net Profit Attributable to Shareholders of Listed Company (yuan) | Cash Dividend Amount as % of Net Profit | | :--- | :--- | :--- | :--- | | 2019 | 12,550,662.50 | 61,355,868.10 | 20.46% | | 2018 | 12,550,662.50 | 69,366,682.75 | 18.09% | | 2017 | 10,458,885.42 | 46,870,516.79 | 22.31% | [Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period](index=34&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The profit distribution plan for the current reporting period proposes a cash dividend of **0.20 yuan** (including tax) per 10 shares, with no bonus shares or capital reserve conversion, totaling **12.55 million yuan** in cash dividends, representing **100%** of distributable profit Profit Distribution Plan for the Current Reporting Period | Indicator | Value | | :--- | :--- | | Number of bonus shares per 10 shares (shares) | 0 | | Dividend per 10 shares (yuan) (incl. tax) | 0.2 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | | Share capital base for distribution plan (shares) | 627,533,125 | | Cash dividend amount (yuan) (incl. tax) | 12,550,662.50 | | Total cash dividend amount (incl. other methods) (yuan) | 12,550,662.50 | | Distributable profit (yuan) | 279,325,617.02 | | Proportion of total cash dividend to total profit distribution | 100% | [Fulfillment of Commitments](index=35&type=section&id=%E4%B8%89%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, Guangzhou Light Industry & Trade Group Co., Ltd., and senior management personnel have fulfilled their commitments regarding share reduction and increase, with the Light Industry Group completing its share increase plan and executives adhering to their non-reduction commitments - The company's senior management personnel committed not to reduce their holdings of company shares during their tenure and are fulfilling this commitment normally[121](index=121&type=chunk)[123](index=123&type=chunk) - The controlling shareholder, Guangzhou Light Industry & Trade Group Co., Ltd., has completed its commitment to increase its holdings of company shares[125](index=125&type=chunk) - Jiangsu Qiheng Agrochemical Technology Co., Ltd. and its shareholder Wang Jian have fulfilled the investment compensation agreement, and the company has received the compensation payment[125](index=125&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Its Related Parties](index=38&type=section&id=%E5%9B%9B%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The company reported no non-operating fund occupation by its controlling shareholder or related parties during the reporting period - The company reported no non-operating fund occupation by its controlling shareholder or related parties during the reporting period[129](index=129&type=chunk) [Explanation by the Board of Directors, Supervisory Board, and Independent Directors (if any) on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=38&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E7%8B%AC%E7%AB%8B%E8%91%A3%E4%BA%8B%EF%BC%88%E5%A6%82%E6%9C%89%EF%BC%89%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no "non-standard audit report" issued by the accounting firm during the reporting period - The company reported no "non-standard audit report" issued by the accounting firm during the reporting period[129](index=129&type=chunk) [Explanation of Changes in Accounting Policies, Accounting Estimates, and Accounting Methods Compared to the Previous Year's Financial Report](index=38&type=section&id=%E5%85%AD%E3%80%81%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E7%9B%B8%E6%AF%94%EF%BC%8C%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E3%80%81%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1%E5%92%8C%E6%A0%B8%E7%AE%97%E6%96%B9%E6%B3%95%E5%8F%91%E7%94%9F%E5%8F%98%E5%8C%96%E7%9A%84%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Effective January 1, 2019, the company adopted new financial instrument standards, revising financial asset classification and measurement, introducing the "expected credit loss" model, and also implemented revised non-monetary asset exchange and debt restructuring standards, along with financial statement format changes - The company adopted new financial instrument standards effective January 1, 2019, changing the classification and measurement of financial assets and introducing the "expected credit loss" model[129](index=129&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - The company implemented the revised non-monetary asset exchange standards and debt restructuring standards, but these had no impact on financial position and operating results[144](index=144&type=chunk) - The company revised the financial statement format as required by the Ministry of Finance, adjusting the presentation of some items, but without affecting total shareholder equity or net profit[147](index=147&type=chunk) [Explanation of Significant Accounting Error Corrections Requiring Retrospective Restatement During the Reporting Period](index=43&type=section&id=%E4%B8%83%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E4%BC%9A%E8%AE%A1%E5%B7%AE%E9%94%99%E6%9B%B4%E6%AD%A3%E9%9C%80%E8%BF%BD%E6%BA%AF%E9%87%8D%E8%BF%B0%E7%9A%84%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company reported no significant accounting error corrections requiring retrospective restatement during the reporting period - The company reported no significant accounting error corrections requiring retrospective restatement during the reporting period[148](index=148&type=chunk) [Explanation of Changes in Consolidation Scope Compared to the Previous Year's Financial Report](index=43&type=section&id=%E5%85%AB%E3%80%81%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%BA%A6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E7%9B%B8%E6%AF%94%EF%BC%8C%E5%90%88%E5%B9%B6%E6%8A%A5%E8%A1%A8%E8%8C%83%E5%9B%B4%E5%8F%91%E7%94%9F%E5%8F%98%E5%8C%96%E7%9A%84%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The scope of consolidated financial statements changed this year, with Guangzhou Huatang Food Co., Ltd. newly included in the consolidation - Guangzhou Huatang Food Co., Ltd. was newly included in the scope of consolidated financial statements this year[149](index=149&type=chunk) [Appointment and Dismissal of Accounting Firms](index=43&type=section&id=%E4%B9%9D%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%83%85%E5%86%B5) The company currently engages Zhonghuan Certified Public Accountants (Special General Partnership) as its domestic accounting firm, with an audit fee of **0.8745 million yuan**, having served for two consecutive years, and no changes were made during the reporting period - The company currently engages Zhonghuan Certified Public Accountants (Special General Partnership) as its domestic accounting firm[153](index=153&type=chunk) Accounting Firm Information | Indicator | Value | | :--- | :--- | | Domestic accounting firm remuneration (ten thousand yuan) | 87.45 | | Consecutive years of domestic accounting firm audit service | 2 | | Names of domestic accounting firm's certified public accountants | Hu Hailin, Lu Maoan | - No changes were made to the accounting firm during the reporting period, nor were internal control audit accounting firms, financial advisors, or sponsors engaged[153](index=153&type=chunk) [Facing Suspension and Termination of Listing After Annual Report Disclosure](index=44&type=section&id=%E5%8D%81%E3%80%81%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E6%8A%AB%E9%9C%B2%E5%90%8E%E9%9D%A2%E4%B8%B4%E6%9A%82%E5%81%9C%E4%B8%8A%E5%B8%82%E5%92%8C%E7%BB%88%E6%AD%A2%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company did not face suspension or termination of listing after the annual report disclosure during the reporting period - The company did not face suspension or termination of listing after the annual report disclosure during the reporting period[154](index=154&type=chunk) [Bankruptcy and Reorganization Related Matters](index=44&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not experience any bankruptcy or reorganization related matters during the reporting period - The company did not experience any bankruptcy or reorganization related matters during the reporting period[154](index=154&type=chunk) [Significant Litigation and Arbitration Matters](index=44&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[155](index=155&type=chunk) [Penalties and Rectification](index=44&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[156](index=156&type=chunk) [Integrity Status of the Company, Its Controlling Shareholder, and Actual Controller](index=44&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company reported no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period - The company reported no issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[157](index=157&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=44&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company's first employee stock ownership plan was lifted from restrictions and became tradable on January 29, 2019, with **879,900 shares** sold and **1,947,961 shares** remaining during the reporting period - The company's first employee stock ownership plan, comprising **2,827,861 shares**, was lifted from restrictions and became tradable on January 29, 2019[157](index=157&type=chunk) - During the reporting period, the employee stock ownership plan sold **879,900 shares**, with **1,947,961 shares** remaining[157](index=157&type=chunk) [Significant Related Party Transactions](index=45&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in significant related party transactions during the reporting period, including procurement of raw materials and sales of chemical products, as well as asset and equity acquisitions/disposals, notably the termination of Guangzhou Baihua Flavor & Fragrance acquisition and the completion of Guangzhou Huatang Food acquisition 2019 Key Related Party Procurement | Related Party | Related Transaction Content | Amount for Current Period (ten thousand yuan) | Proportion of Similar Transactions | | :--- | :--- | :--- | :--- | | Guangzhou Baihua Flavor & Fragrance Co., Ltd. | Procurement of various flavor and fragrance raw materials | 574.68 | 12.58% | | Guangzhou Qining Chemical Co., Ltd. | Procurement of sulfonic acid, methyl ester sulfonate, etc. | 8,527.1 | 0.88% | | Jiangsu Qiheng Agrochemical Technology Co., Ltd. | Procurement of trichloroacetyl chloride, ethyl chloride, etc. | 4,633.97 | 0.48% | | Foshan Sanshui Feima Packaging Co., Ltd. | Procurement of plastic bottles, plastic caps, etc. | 643.36 | 10.71% | | Guangzhou Renyin Packaging Materials Co., Ltd. | Procurement of plastic packaging bags, shrink film, etc. | 540.74 | 9.00% | | Guangzhou Renmin Printing Factory Co., Ltd. | Procurement of cartons, self-adhesive labels, small bags, labels, etc. | 1,203.83 | 20.05% | 2019 Key Related Party Sales and Labor Services Provided | Related Party | Related Transaction Content | Amount for Current Period (ten thousand yuan) | Proportion of Similar Transactions | | :--- | :--- | :--- | :--- | | Guangzhou Qining Chemical Co., Ltd. | Sales of alkylbenzene, sulfur, and other raw materials | 9,092.99 | 1.73% | | Guangzhou Chemical Import & Export Co., Ltd. | Sales of washing powder and other products | 2,798.01 | 4.31% | | Guangzhou Baihua Flavor & Fragrance Co., Ltd. | Provision of fuel and power support services | 123.37 | 79.18% | | Guangzhou Qitian International Logistics Co., Ltd. | Provision of technical consulting services | 3,405.96 | 94.49% | - The company terminated the acquisition of 97.42% equity in Guangzhou Baihua Flavor & Fragrance Co., Ltd. and continued to advance the acquisition of 100% equity in Guangzhou Huatang Food Co., Ltd[173](index=173&type=chunk)[175](index=175&type=chunk) - The acquisition of Huatang Food increased the company's net profit, with Huatang Food's operating revenue of **1.181 billion yuan** and net profit of **34.35 million yuan** in 2019[175](index=175&type=chunk) [Significant Contracts and Their Fulfillment](index=51&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no trust or contracting arrangements during the reporting period, but engaged in leasing activities that generated revenue, and provided guarantees for subsidiaries totaling **35 million yuan** at the end of the period - The company had no trust or contracting arrangements during the reporting period[180](index=180&type=chunk)[181](index=181&type=chunk) - Subsidiary Nansha Langqi Co., Ltd. signed a housing lease contract with Guangzhou Baihua Flavor & Fragrance Co., Ltd., with an annual rent of approximately **2.49 million yuan**[182](index=182&type=chunk) - The company signed a housing lease contract with Guangzhou Baihua Flavor & Fragrance Co., Ltd., with an annual rent of approximately **1.15 million yuan**[182](index=182&type=chunk) Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (ten thousand yuan) | Actual Guarantee Amount (ten thousand yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Qihua Co., Ltd. | 11,000 | 3,500 | Joint and several liability guarantee | 3 years | No | - The company had no entrusted wealth management, entrusted loans, or other significant contracts during the reporting period[188](index=188&type=chunk)[189](index=189&type=chunk) [Social Responsibility Performance](index=53&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by safeguarding shareholder and creditor rights, promoting environmental protection, protecting consumer and supplier interests, and ensuring employee welfare, while also engaging in public welfare activities - The company maintains and protects the legitimate rights and interests of shareholders and investors by establishing and improving governance systems and internal control systems[190](index=190&type=chunk) - The company was awarded the national "Green Factory" title, and 8 products were recognized as "National Green Design Products" by the Ministry of Industry and Information Technology[193](index=193&type=chunk) - The company adheres to market orientation, establishes a product standard system stricter than national standards, and enhances brand awareness through online and offline brand communication models[194](index=194&type=chunk)[195](index=195&type=chunk) - The company has established supplier management systems and processes, strengthening supplier evaluation and procurement supervision to maintain a high-quality supplier system[195](index=195&type=chunk) - The company strictly complies with labor laws, has established a standardized employee social security management system, and focuses on talent development and compensation incentives[196](index=196&type=chunk)[197](index=197&type=chunk) - The company actively participates in public welfare, conducting charity donation activities and donating funds to poverty-stricken villages[199](index=199&type=chunk) - The company did not carry out targeted poverty alleviation work in the reporting year and currently has no subsequent targeted poverty alleviation plans[200](index=200&type=chunk) Pollutant Emission Status of Major Subsidiaries | Company Name | Main Pollutants and Characteristic Pollutants | Emission Method | Emission Concentration | Applicable Emission Standard | Total Emissions | Approved Total Emissions | Exceeding Standard Emissions | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Langqi Daily Necessities Co., Ltd. | Wastewater, COD, Ammonia Nitrogen | Discharged to municipal pipeline after treatment | ≤ 500mg/L | "Water Pollutant Discharge Limits" (DB44/26-2001) Second Stage Level 3 Standard | 51400 tons/year | / | None | | Guangzhou Langqi Daily Necessities Co., Ltd. | Waste gas, Sulfur Dioxide, Nitrogen Oxides, Particulates, Oil Fumes | Discharged to atmosphere after treatment | Sulfur Dioxide ≤ 300mg/m3, Nitrogen Oxides ≤ 200mg/m3, Particulates ≤ 120mg/m3 | "Boiler Air Pollutant Emission Standard" (DB44/65-2010) Coal-fired A Zone Standard, etc. | 33120 million standard cubic meters/year | Sulfur Dioxide: 8.64 tons/year; Nitrogen Oxides: 13.39 tons/year; Particulates: 60.48 tons/year | None | | Guangzhou Huatang Food Co., Ltd. | COD; Ammonia Nitrogen | Intermittent discharge | Ammonia Nitrogen: 0.92 (mg/l) / COD: 76.19 (500ml/l) | Second Stage Level 3 Standard | COD: 736.3T / Ammonia Nitrogen: 9.16T | COD: 1560T / Ammonia Nitrogen: 46.8T | None | | Shaoguan Langqi Co., Ltd. | COD | Beijiang_HB010000 | 17.8mg\L | <130 mg\L | 3.4062 tons | 8.57 tons/year | No | - The company and its subsidiaries' pollution prevention and control facilities operate normally, and emissions comply with laws, regulations, and regulatory requirements[208](index=208&type=chunk) - The company and its subsidiaries have prepared emergency response plans for environmental incidents as required and commissioned third-party environmental monitoring agencies for monitoring[212](index=212&type=chunk)[213](index=213&type=chunk) [Explanation of Other Significant Matters](index=59&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company terminated the acquisition of 97.42% equity in Guangzhou Baihua Flavor & Fragrance Co., Ltd. but completed the acquisition of 100% equity in Guangzhou Huatang Food Co., Ltd., and signed a land reserve compensation agreement for its Guangzhou headquarters' Tianhe District Chebei plot for **2.156 billion yuan** - The company terminated the acquisition of 97.42% equity in Guangzhou Baihua Flavor & Fragrance Co., Ltd[215](index=215&type=chunk) - The acquisition of 100% equity in Guangzhou Huatang Food Co., Ltd. has been completed, and **55%** of the total acquisition price (**236.29 million yuan**) has been paid[215](index=215&type=chunk) - The company publicly listed and transferred 25% equity in Jiangsu Qiheng Agrochemical Technology Co., Ltd. for **202.9975 million yuan**, and has received the first installment of **60.90 million yuan** for the equity transfer[217](index=217&type=chunk) - The company signed a land reserve compensation agreement with Guangzhou Land Development Center for its Guangzhou headquarters' Tianhe District Chebei plot, with a compensation amount of **2.156 billion yuan**[217](index=217&type=chunk) - The first installment of land compensation, totaling **431.30 million yuan**, has been received[217](index=217&type=chunk) [Significant Matters of Company Subsidiaries](index=60&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) On December 30, 2019, the company's wholly-owned subsidiary, Huatang Food, received a project support fund of **14 million yuan** from the Guangzhou Municipal Bureau of Industry and Information Technology for provincial-level technical transformation incentives - Wholly-owned subsidiary Huatang Food received a project support fund of **14 million yuan** from the Guangzhou Municipal Bureau of Industry and Information Technology[218](index=218&type=chunk) - This fund is for the 2019 provincial-level incentives for industrial enterprise technical transformation[218](index=218&type=chunk) [Share Changes and Shareholder Information](index=61&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital, including restricted and unrestricted shares, and provides an overview of its shareholders and actual controller [Share Change Status](index=61&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) In 2019, the company's restricted shares decreased by **92,061,468 shares**, with a corresponding increase in unrestricted shares, primarily due to the lifting of restrictions on shares held by Guangzhou State-owned Assets Development Holding Co., Ltd. and the first employee stock ownership plan Share Change Status (Unit: shares) | Category | Number Before Change | Proportion Before Change | Increase/Decrease in Current Change (＋,－) | Number After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 92,647,457 | 14.76% | -92,061,468 | 585,989 | 0.09% | | II. Unrestricted Shares | 534,885,668 | 85.24% | 92,061,468 | 626,947,136 | 99.91% | | III. Total Shares | 627,533,125 | 100.00% | 0 | 627,533,125 | 100.00% | - Restricted shares held by Guangzhou State-owned Assets Development Holding Co., Ltd. and the company's first employee stock ownership plan, totaling **92,084,058 shares**, were lifted from restrictions and became tradable on January 29, 2019[224](index=224&type=chunk) - Due to Mr. Fu Yongguo's departure, **75%** (**199,830 shares**) of his **266,440 shares** became locked[227](index=227&type=chunk) - Mr. Zhao Biqiu, newly appointed Chairman, had **75%** (**750 shares**) of his **1,000 shares** locked[227](index=227&type=chunk) - Mr. Wang Yingjie's **87,359 shares** changed from **75%** locked to fully locked due to his departure[227](index=227&type=chunk) [Securities Issuance and Listing Status](index=63&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company did not issue any securities (excluding preferred shares) during the reporting period, and there were no significant changes in its total share capital, shareholder structure, or internal employee shares - The company did not issue any securities (excluding preferred shares) during the reporting period[231](index=231&type=chunk) - There were no significant changes in the company's total share capital, shareholder structure, or asset and liability structure[233](index=233&type=chunk) - The company had no internal employee shares during the reporting period[233](index=233&type=chunk) [Shareholders and Actual Controller Information](index=64&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **41,678** ordinary shareholders, with Guangzhou Light Industry & Trade Group Co., Ltd. as the controlling shareholder (**31.04%** stake) and Guangzhou State-owned Assets Development Holding Co., Ltd. holding **14.22%**, while the actual controller is the Guangzhou Municipal People's Government State-owned Assets Supervision and Administration Commission - As of the end of the reporting period, the total number of ordinary shareholders was **41,678**[234](index=234&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Guangzhou Light Industry & Trade Group Co., Ltd. | State-owned Legal Person | 31.04% | 194,783,485 | 194,783,485 | | Guangzhou State-owned Assets Development Holding Co., Ltd. | State-owned Legal Person | 14.22% | 89,256,197 | 89,256,197 | | Zheng Lihui | Domestic Natural Person | 0.92% | 5,800,000 | 5,800,000 | | Wu Yanhan | Domestic Natural Person | 0.80% | 5,038,100 | 5,038,100 | | Cheng Yumin | Domestic Natural Person | 0.71% | 4,426,100 | 4,426,100 | | Wang Zhixu | Domestic Natural Person | 0.64% | 3,989,200 | 3,989,200 | | Jiang Wenbi | Domestic Natural Person | 0.46% | 2,904,200 | 2,904,200 | | Guangzhou Langqi Industrial Co., Ltd. - Phase 1 Employee Stock Ownership Plan | Other | 0.31% | 1,947,961 | 1,947,961 | | Lin Qiuhuai | Domestic Natural Person | 0.31% | 1,915,675 | 1,915,675 | | Luo Datong | Domestic Natural Person | 0.29% | 1,835,660 | 1,835,660 | - The company's controlling shareholder is Guangzhou Light Industry & Trade Group Co., Ltd., and the actual controller is the Guangzhou Municipal People's Government State-owned Assets Supervision and Administration Commission[241](index=241&type=chunk)[245](index=245&type=chunk) - The company's top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders did not engage in agreed repurchase transactions during the reporting period[240](index=240&type=chunk) [Other Legal Person Shareholders Holding Over 10%](index=67&type=section&id=%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E6%8C%81%E8%82%A1%E5%9C%A8%2010%25%E4%BB%A5%E4%B8%8A%E7%9A%84%E6%B3%95%E4%BA%BA%E8%82%A1%E4%B8%9C) Guangzhou State-owned Assets Development Holding Co., Ltd. is a legal person shareholder holding over **10%** of the company's shares, primarily engaged in asset management, proprietary investment, and investment management services Other Legal Person Shareholders Holding Over 10% | Legal Person Shareholder Name | Legal Representative/Head of Unit | Date of Establishment | Registered Capital | Main Business or Management Activities | | :--- | :--- | :--- | :--- | :--- | | Guangzhou State-owned Assets Development Holding Co., Ltd. | Wang Haibin | September 26, 1989 | 6,526,197,357 yuan | Proprietary investment; enterprise financial consulting services; enterprise headquarters management; investment consulting services; enterprise management services (excluding licensed business projects); investment management services; wholesale trade of goods (excluding licensed and approved goods); retail trade of goods (excluding licensed and approved goods); participation in the establishment of venture capital enterprises and venture capital management consulting institutions; venture capital; asset management (excluding licensed and approved projects); equity investment; equity investment management | [Restrictions on Share Reduction by Controlling Shareholder, Actual Controller, Reorganization Party, and Other Committed Entities](index=68&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E9%87%8D%E7%BB%84%E6%96%B9%E5%8F%8A%E5%85%B6%E4%BB%96%E6%89%BF%E8%AF%BA%E4%B8%BB%E4%BD%93%E8%82%A1%E4%BB%BD%E9%99%90%E5%88%B6%E5%87%8F%E6%8C%81%E6%83%85%E5%86%B5) The company reported no restrictions on share reduction by its controlling shareholder, actual controller, reorganization party, or other committed entities during the reporting period - The company reported no restrictions on share reduction by its controlling shareholder, actual controller, reorganization party, or other committed entities during the reporting period[248](index=248&type=chunk) [Preferred Share Related Information](index=69&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company had no preferred shares during the reporting period [No Preferred Shares in the Reporting Period](index=69&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%85%AC%E5%8F%B8%E4%B8%8D%E5%AD%98%E5%9C%A8%E4%BC%98%E5%85%88%E8%82%A1) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[250](index=250&type=chunk) [Convertible Corporate Bonds Related Information](index=70&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company had no convertible corporate bonds during the reporting period [No Convertible Corporate Bonds in the Reporting Period](index=70&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%85%AC%E5%8F%B8%E4%B8%8D%E5%AD%98%E5%9C%A8%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[253](index=253&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=71&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) This section details the shareholding changes, appointments, remuneration, and overall employment situation of the company's directors, supervisors, senior management, and employees [Shareholding Changes of Directors, Supervisors, and Senior Management](index=71&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) The shareholdings of the company's directors, supervisors, and senior management remained generally stable during the reporting period, with some changes in status or quantity due to departures or new appointments, but the total number of shares held at period-end remained unchanged Shareholding Changes of Directors, Supervisors, and Senior Management (Unit: shares) | Name | Position | Employment Status | Shares Held at Beginning of Period | Shares Increased in Current Period | Shares Decreased in Current Period | Shares Held at End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fu Yongguo | Former Chairman | Resigned | 266,440 | 0 | 0 | 266,440 | | Zhao Biqiu | Chairman | Current | 1,000 | 0 | 0 | 1,000 | | Chen Jianbin | Vice Chairman, General Manager | Current | 165,720 | 0 | 0 | 165,720 | | Fu Rongwu | Director | Current | 20,280 | 0 | 0 | 20,280 | | Li Yun | Supervisor | Current | 2,400 | 0 | 0 | 2,400 | | Chen Tao | Deputy General Manager, Chief Engineer | Current | 165,480 | 0 | 0 | 165,480 | | Chen Wen | Deputy General Manager | Current | 24,520 | 0 | 0 | 24,520 | | Cheng Zhibin | Deputy General Manager | Current | 2,400 | 0 | 0 | 2,400 | | Wang Yingjie | Former Head of Finance, CFO | Resigned | 87,359 | 0 | 0 | 87,359 | | Wang Zhigang | Board Secretary | Current | 16,600 | 0 | 0 | 16,600 | | Total | -- | -- | 752,199 | 0 | 0 | 752,199 | [Changes in Company Directors, Supervisors, and Senior Management](index=72&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company experienced several changes in its directors, supervisors, and senior management, including Ms. Shi Hongfang's departure as Supervisory Board Chairman, Mr. Liu Weihong's succession, Mr. Fu Yongguo's resignation as Chairman, Mr. Zhao Biqiu's election, and Ms. Li Yanmei's appointment as CFO following Mr. Wang Yingjie's retirement - Ms. Shi Hongfang served as Chairman of the Supervisory Board and employee supervisor, then resigned due to work reasons[257](index=257&type=chunk)[259](index=259&type=chunk) - Mr. Fu Yongguo resigned from his positions as company director and chairman due to work reasons[259](index=259&type=chunk) - Mr. Zhao Biqiu was elected as company director and chairman[259](index=259&type=chunk) - Mr. Liu Weihong was elected as Chairman of the Supervisory Board and employee supervisor[259](index=259&type=chunk) - Mr. Wang Yingjie resigned as Head of Finance and CFO due to statutory retirement age, and Ms. Li Yanmei succeeded him[259](index=259&type=chunk) [Employment Status](index=73&type=section&id=%E4%B8%89%E3%80%81%E4%BB%BB%E8%81%8C%E6%83%85%E5%86%B5) This section details the professional backgrounds, key work experiences, and internal and external positions of the company's current directors, supervisors, and senior management, highlighting their close ties with the controlling shareholder, Guangzhou Light Industry & Trade Group Co.,

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