深圳诺普信农化股份有限公司 2022 年第三季度报告 □是 否 证券代码：002215 证券简称：诺 普 信 公告编号：2022-100 深圳诺普信农化股份有限公司 2022 年第三季度报告 本公司及董事会全体成员保证公告内容真实、准确和完整，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 | --- | --- | --- | --- | --- | |-----------------------------------------------------|------------------|-------------------------|--------------------------|---- ...

Financial Performance - The company's operating revenue for 2021 was CNY 4,500,572,279.30, representing an increase of 8.94% compared to CNY 4,131,424,781.76 in 2020[25] - The net profit attributable to shareholders of the listed company reached CNY 305,334,483.81, an increase of 82.93% from CNY 166,910,819.85 in the previous year[25] - The net profit after deducting non-recurring gains and losses was CNY 224,307,612.39, which is an increase of 108.20% compared to CNY 107,735,849.61 in 2020[25] - The basic earnings per share for 2021 was CNY 0.3383, up 82.27% from CNY 0.1856 in 2020[25] - The total assets at the end of 2021 were CNY 7,813,734,085.68, a 30.85% increase from CNY 5,971,465,348.24 at the end of 2020[25] - The net cash flow from operating activities was CNY 421,533,678.90, a decrease of 21.73% compared to CNY 538,562,665.30 in 2020[25] - The weighted average return on equity for 2021 was 11.82%, an increase of 5.03% from 6.79% in 2020[25] Revenue Breakdown - Total revenue for Q1 was ¥1,218,924,353.64, Q2 was ¥1,384,915,446.11, Q3 was ¥697,935,581.99, and Q4 was ¥1,198,796,897.56[30] - Net profit attributable to shareholders for Q1 was ¥147,689,332.31, Q2 was ¥155,504,458.41, Q3 was ¥27,398,367.53, and Q4 was -¥25,257,674.44[30] - The pesticide formulation business reported revenue of 2,671.09 million yuan, a year-on-year growth of 18.18%, while the revenue from the single specialty crop industry chain reached 102.74 million yuan, growing by 69.97%[53] Market Position and Strategy - The company has maintained its position as the industry leader in pesticide formulations, holding the top spot in the Chinese pesticide formulation sector for over a decade[46] - The company is actively integrating traditional agricultural inputs with innovative agricultural services to support rural revitalization[40] - The company is focusing on a brand strategy centered around "large products/packages - technical services," aiming to enhance operational management and economic efficiency[56] - The company is actively pursuing a strategy of integrating research and development with market and marketing efforts to drive technological breakthroughs in key products[56] Research and Development - The total research and development expenditure for 2021 was ¥107,376,636.71, which is an increase of 8.43% compared to ¥99,030,779.11 in 2020[103] - The number of R&D personnel increased to 202 in 2021, up 11.60% from 181 in 2020, with a higher proportion of personnel holding master's degrees[105] - The company plans to enhance its R&D capabilities and launch new products, with multiple pesticide formulations expected to receive registration within the next three years[105] Operational Efficiency - The company has implemented a digital transformation initiative called "Digital Nopson," which has significantly improved business efficiency[59] - The company has maintained zero issues in product quality during the annual market product inspection conducted by the Ministry of Agriculture and Rural Affairs, which covered over 4,800 products[59] - The company is committed to optimizing its channel layout and enhancing customer management, resulting in a notable increase in channel strength[59] Investment and Financial Management - The company invested 89,766,726.47 CNY in 2021, reflecting a 30.90% increase compared to the previous year[127] - The company raised a total of 35,000,000.00 CNY through a private placement, with 2,743.05 CNY utilized in the current period[131] - The company has strengthened its strategic cooperation with financial institutions, successfully completed a private placement to effectively supplement working capital, and implemented measures to lock in prices and procurement volumes[154] Corporate Governance and Shareholder Engagement - The company has established a modern corporate governance structure in compliance with regulatory requirements, ensuring operational independence and proper information disclosure[171] - The company held its annual general meeting on May 14, 2021, with an investor participation rate of 34.62%[187] - The first extraordinary general meeting of 2021 took place on June 1, 2021, with a participation rate of 34.32%[187] Challenges and Risks - The company has faced significant fluctuations in raw material prices, particularly for glyphosate and other key inputs, due to supply chain disruptions and regulatory impacts[61] - The company is addressing risks related to talent management and operational capabilities by emphasizing a partnership model and responsibility among team members[162] - The company is actively collaborating with academic institutions to enhance breeding and seedling research, aiming to mitigate risks from adverse weather and market price fluctuations[163]

深圳诺普信农化股份有限公司 2022 年第一季度报告全文 证券代码：002215 证券简称：诺 普 信 公告编号：2022-037 深圳诺普信农化股份有限公司 2022 年第一季度报告 NOPÓSIÓN 诺 证券代码：002215 证券简称：诺普信 披露日期：2022年4月27日 1 深圳诺普信农化股份有限公司 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。 除下列董事外，其他董事亲自出席了审议本次季度报告的董事会会议。 未亲自出席董事姓名 未亲自出席董事职务 未亲自出席会议原因 被委托人姓名 李常青 独立董事 公务 李晓东 公司负责人高焕森、主管会计工作负责人袁庆鸿及会计机构负责人(会计主管人员)袁庆 鸿声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳诺普信农化股份有限公司 2022 年第一季度报告全文 一、主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | --- | |---------------------- ...

Financial Performance - The company's revenue for Q3 2021 was ¥697,935,581.99, a decrease of 11.47% compared to the same period last year[5] - Net profit attributable to shareholders was ¥27,398,367.53, an increase of 109.76% year-on-year[5] - The net profit excluding non-recurring gains and losses reached ¥22,233,487.20, up 243.52% from the previous year[5] - Basic earnings per share increased by 76.88% to ¥0.0306, while diluted earnings per share rose by 69.94% to ¥0.0294[5] - Operating revenue for the first nine months of 2021 was 330,177.54 million, a decrease of 1,930.41 million or 0.58% compared to the same period in 2020[15] - Net profit for the first nine months of 2021 increased to 33,496.74 million, up by 3,944.38 million or 13.35% year-on-year[15] - The company reported a net cash outflow from operating activities of CNY -680,786,383.15, worsening from CNY -320,490,114.30 in the previous period[1] - The total comprehensive income attributable to the parent company's owners was CNY 314,749,630.34, up from CNY 280,640,727.02, marking a growth of approximately 12.1%[1] - Total profit amounted to CNY 371,035,696.75, compared to CNY 327,935,994.23 in the prior period, reflecting an increase of about 13.1%[1] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,754,373,400.40, reflecting a growth of 13.11% from the end of the previous year[5] - Total assets increased to CNY 6,754,373,400.40 from CNY 5,971,465,348.24, representing a growth of about 13.1%[34] - Total liabilities rose to CNY 3,426,929,818.28 from CNY 3,007,450,766.26, an increase of approximately 13.9%[34] - Shareholders' equity attributable to the parent company increased by 12.46% to ¥2,643,290,856.90[5] - Shareholders' equity increased to CNY 3,327,443,582.12 from CNY 2,964,014,581.98, reflecting a growth of about 12.3%[34] Cash Flow - Cash flow from operating activities showed a negative net amount of ¥680,786,383.15, a decline of 112.42% year-on-year[5] - The net cash flow from operating activities was -68,078.64 million, a decrease of 36,029.63 million or 112.42% compared to the first nine months of 2020[19] - The net cash flow from investing activities improved to 5,355.17 million, an increase of 16,610.02 million or 147.58% compared to the previous year[19] - The company’s financing activities generated a net cash flow of 29,224.96 million, an increase of 13,745.76 million or 88.80% year-on-year[19] - The net cash flow from financing activities was $292,249,580.14, up from $154,791,972.78 in the previous period[59] Investments and Expenses - Investment income dropped to 1,622.41 million, down by 2,648.59 million or 62.01% year-on-year, primarily due to the absence of significant equity disposal gains[15] - Research and development expenses increased slightly to 7,158.36 million, reflecting a growth of 43.45 million or 0.61% compared to the previous year[15] - Research and development expenses were CNY 71,583,641.25, slightly up from CNY 71,149,108.63, indicating a focus on innovation[1] - The company reported a significant increase in non-operating income, which rose to 623.97 million, an increase of 460.73 million or 282.26% year-on-year[15] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 41,779, with the top ten shareholders holding a combined 27.03% of shares[20] - The company plans to invest in the Guangdong Guangken Taizheng Agricultural Supply-Side Equity Investment Fund, with a total fund size of 2 billion RMB[25][27] Operational Metrics - The company reported a significant increase in accounts receivable by 68.12%, amounting to ¥113,321.25[9] - The company’s short-term borrowings increased by 77.59% to ¥191,760.67, primarily due to seasonal business needs[12] - The company’s construction in progress rose by 199.23% to ¥10,818.98, attributed to the expansion of specialty crop projects[12] - Total operating costs for Q3 2021 were CNY 2,949,103,052.29, down from CNY 3,033,407,865.62 in the same period last year, indicating a cost reduction strategy[36] - Sales revenue from goods and services received was CNY 2,359,929,067.54, down from CNY 2,471,777,130.78, indicating a decline in cash inflow from operations[1] Financial Reporting and Standards - The third quarter report was not audited, which may affect the reliability of the financial data presented[60] - The company did not apply the new leasing standards for the financial statements starting from 2021[60]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥2,603,839,799.75, representing a 2.81% increase compared to ¥2,532,714,315.44 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was ¥303,193,790.72, an increase of 11.10% from ¥272,891,469.49 in the previous year[23]. - The net profit after deducting non-recurring gains and losses was ¥281,960,488.36, which is an 8.11% increase compared to ¥260,796,947.05 in the same period last year[23]. - The net cash flow from operating activities was -¥569,888,140.46, a decrease of 61.48% from -¥352,918,292.14 in the previous year[23]. - The total assets at the end of the reporting period were ¥6,173,356,309.66, reflecting a 3.38% increase from ¥5,971,465,348.24 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 11.08% to ¥2,610,906,681.06 from ¥2,350,516,687.86 at the end of the previous year[23]. - The basic earnings per share were ¥0.3372, up 11.10% from ¥0.3035 in the same period last year[23]. - The diluted earnings per share were ¥0.3307, an increase of 8.96% compared to ¥0.3035 in the previous year[23]. - The weighted average return on equity was 11.89%, a decrease of 0.38 percentage points from 12.27% in the previous year[23]. Revenue Breakdown - The revenue from the pesticide formulation business was 1,602.45 million yuan, while the revenue from the Tian Tian Quan holding distributors was 954.55 million yuan[38]. - The traditional business segment generated ¥1,595,513,210.84, accounting for 61.28% of total operating revenue, with a year-on-year growth of 6.49%[63]. - The pesticide segment's revenue was ¥859,079,982.20, a slight decrease of 0.50% from ¥863,372,106.25 in the previous year[66]. - The company experienced a 68.47% increase in revenue from its industrial chain business, reaching ¥46,837,639.84 compared to ¥27,802,406.96 in the previous year[63]. Investment and Cash Flow - The company reported a significant increase in investment activities, with net cash flow from investing activities rising by 159.02% to ¥100,509,558.59 from -¥170,296,813.90[63]. - The net increase in cash and cash equivalents was ¥118,584,120.30, a substantial improvement of 237.70% compared to -¥86,117,465.16 in the same period last year[63]. - Cash flow from financing activities increased by 34.55% to ¥588,036,833.65, attributed to a reduction in bank loan repayments[63]. Research and Development - Research and development expenses increased by 6.73% to ¥53,315,727.63 from ¥49,955,098.87 in the previous year[63]. - The company has accumulated over 300 invention patents and maintains the leading position in the domestic pesticide formulation industry, with a continuous high percentage of environmentally friendly pesticide sales[50]. - The company has a robust research and development system, with nearly 40 postdoctoral researchers contributing to innovative agricultural solutions[55]. - The company is innovating its agricultural research and development system to enhance efficiency by 2-3 times, alongside establishing a training system and partnership framework[37]. Strategic Initiatives - The company is focusing on high-value crops such as dragon fruit and blueberry, aiming to become a leading operator in the specialty crop industry chain[37]. - The company is strategically expanding in Hainan and Yunnan, leveraging favorable climatic conditions for high-end fruit cultivation[37]. - The company has created a "company + farmer" partnership model, allowing farmers to become industry partners and share in the profits, thereby increasing their income[60]. - The company is enhancing strategic cooperation with banks and increasing new formulation development to mitigate procurement risks[93]. Shareholder and Management Information - The company plans not to distribute cash dividends or bonus shares for this period[7]. - The company did not distribute cash dividends or issue new shares from capital reserves in the reporting period[101]. - The total number of ordinary shareholders at the end of the reporting period was 44,518[180]. - The largest shareholder, Lu Boqiang, held 27.03% of the shares, totaling 246,944,915 shares[182]. - The total shares held by the chairman, Lu Boqiang, remained unchanged at 246,944,915 shares[189]. Environmental and Social Responsibility - The company has established a strict environmental management system, ensuring compliance with pollution control procedures and regular monitoring[124]. - The company has not faced any administrative penalties for environmental issues during the reporting period[114]. - The company donated RMB 500,000 worth of epidemic prevention materials to aid disaster relief efforts in Henan in July 2021[125]. - The company has paid over RMB 46 million in labor costs for employing over 900 workers, primarily from surrounding villages, enhancing local employment[126]. Risks and Challenges - The company faces risks related to raw material procurement due to price fluctuations, which may impact profitability[93]. - The company is focusing on improving management capabilities and attracting industry talent to address operational management risks[96]. - The company is collaborating with academic institutions to strengthen breeding and seedling research, aiming to enhance the agricultural supply chain[97].

深圳诺普信农化股份有限公司 2021 年第一季度报告全文 深圳诺普信农化股份有限公司 2021 年第一季度报告 NÓPÓSIÓN 诺 普 证券代码：002215 证券简称：诺普信 披露日期：2021年4月23日 1 深圳诺普信农化股份有限公司 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。 公司负责人高焕森、主管会计工作负责人袁庆鸿及会计机构负责人(会计主 管人员)袁庆鸿声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳诺普信农化股份有限公司 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 | --- | --- | --- | --- | |-----------------------------------------------------|------------------|------------------|---- ...

Financial Performance - The company's operating revenue for 2020 was CNY 4,131,424,781.76, representing a 1.80% increase compared to CNY 4,058,394,534.12 in 2019[22] - The net profit attributable to shareholders for 2020 was CNY 166,910,819.85, a decrease of 29.28% from CNY 236,009,425.93 in 2019[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 107,735,849.61, down 35.29% from CNY 166,502,935.00 in 2019[22] - The basic earnings per share for 2020 was CNY 0.1856, a decrease of 28.89% compared to CNY 0.2610 in 2019[22] - The diluted earnings per share for 2020 was CNY 0.1832, down 29.81% from CNY 0.2610 in 2019[22] - The total revenue for 2020 was approximately CNY 4.13 billion, representing a year-on-year increase of 1.80% compared to CNY 4.06 billion in 2019[78] - The revenue from the main business segment increased by 13.87% to CNY 2.32 billion, accounting for 56.17% of total revenue[78] - The herbicide segment saw a significant revenue increase of 41.28%, reaching CNY 667.44 million, up from CNY 472.44 million in 2019[78] Cash Flow and Assets - The net cash flow from operating activities increased significantly to CNY 538,562,665.30, a 202.22% increase from CNY 178,199,754.83 in 2019[22] - The company reported a significant increase in cash flow from operating activities in Q4 2020, amounting to CNY 859,052,779.59, compared to negative cash flow in the previous quarters[27] - The total assets at the end of 2020 were CNY 5,971,465,348.24, an increase of 1.48% from CNY 5,884,396,026.78 at the end of 2019[22] - The net assets attributable to shareholders at the end of 2020 were CNY 2,350,516,687.86, up 3.14% from CNY 2,279,036,347.94 at the end of 2019[22] - The company’s cash and cash equivalents at the end of the year were 754.33 million, accounting for 12.63% of total assets[124] Research and Development - Research and development expenses increased by 6.52% to 99,030,779.11 CNY in 2020, reflecting the company's commitment to innovation[97] - The company increased its R&D personnel to 181, a rise of 3.43% from 175 in 2019, with R&D personnel now making up 5.81% of the total workforce[103] - The company has a strong focus on R&D innovation, leading in the number of patents and environmentally friendly pesticide formulations[41] - The company completed over 80 pesticide formulation registrations during the reporting period, including new products with innovative formulations[98] Strategic Initiatives - The company aims to create a new agricultural service brand by focusing on high-quality crop industry chains and modernizing agricultural planting[40] - The company is actively exploring strategic upgrades in its industry, focusing on a dual-main business strategy of "new agricultural services and specialty crop industry chains"[35] - The company has developed a "company + farmer" production organization partnership model to enhance farmer participation in the industry[45] - The company is focusing on modern agricultural parks for specific crops like red heart dragon fruit and blueberry, aiming to set the highest standards in the industry[146] Market Position and Partnerships - The company has maintained its position as the top-ranked pesticide formulation company in China for over a decade, according to the China Pesticide Industry Association[41] - The company has established long-term partnerships with major international firms such as BASF and Bayer, enhancing its product offerings and market reach[50] - The company holds a market share of approximately 4.6% in the non-patented crop protection market, up from 4.2% in 2019[71] - As of December 31, 2020, the company and its core subsidiaries held 1,431 pesticide product registration certificates, maintaining a leading position in the industry[72] Dividend and Shareholder Returns - The company proposed a cash dividend of CNY 1 per 10 shares, totaling CNY 91,085,638.40 based on the adjusted share base[6] - In 2020, the company distributed cash dividends of 1.00 CNY per 10 shares, totaling 91,085,638.40 CNY, which is 54.57% of the net profit attributable to ordinary shareholders[168] - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling 91,085,638.40 yuan, which represents 100% of the distributable profit of 450,392,040.77 yuan[171] Operational Efficiency - The company has implemented a digital transformation strategy to enhance operational efficiency and reduce management costs, significantly improving process efficiency[60] - The company has set up three major production and logistics centers in Dongguan, Weinan, and Jinan, achieving a logistics delivery system that ensures most areas receive goods within 48 hours[51] - The company is committed to building a first-class headquarters and efficient operational systems, including financial and human resource management[155] Challenges and Risks - The company is addressing risks related to raw material supply fluctuations by strengthening strategic partnerships and increasing new product development[156] - Investment income decreased significantly by 51.31% to 2,502.68 million due to strategic transformation and operational losses in the period[117] - The company is committed to supporting farmers and enhancing their income through comprehensive agricultural services[40] Changes in Structure and Compliance - The company added three new subsidiaries to its consolidated financial statements while removing six, indicating changes in its operational structure[87] - The company has maintained strict compliance with commitments made by major shareholders and related parties during the reporting period[172] - The company has implemented the revised Accounting Standards for Enterprises No. 14 - Revenue from January 1, 2020, which has impacted the financial statements[179]

深圳诺普信农化股份有限公司 2020 年第三季度报告全文 深圳诺普信农化股份有限公司 2020 年第三季度报告 NOPOSIÓN 瑞 | --- | --- | |------------------|-----------------| | | | | 证券代码： | 002215 | | 证券简称：诺普信 | | | 披露日期： | 2020年10 月28日 | 1 深圳诺普信农化股份有限公司 2020 年第三季度报告全文 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。 公司负责人高焕森、主管会计工作负责人袁庆鸿及会计机构负责人(会计主 管人员)袁庆鸿声明：保证季度报告中财务报表的真实、准确、完整。 2 深圳诺普信农化股份有限公司 2020 年第三季度报告全文 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 | --- | --- | --- | --- | --- | |----------- ...

Financial Performance - The company's operating revenue for the first half of 2020 was ¥2,532,714,315.44, representing a 3.26% increase compared to ¥2,452,871,159.27 in the same period last year[18]. - The net profit attributable to shareholders was ¥272,891,469.49, a 1.57% increase from ¥268,686,110.12 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was ¥260,796,947.05, which is a 6.09% increase from ¥245,815,530.30 in the previous year[18]. - The basic earnings per share were ¥0.3035, reflecting a 2.43% increase from ¥0.2963 in the same period last year[18]. - The company achieved total revenue of CNY 2,532,714,315.44, representing a year-on-year growth of 3.26%[44]. - The net profit attributable to shareholders was CNY 27,289.15 million, an increase of 1.57% compared to the same period last year[44]. - The main business revenue from traditional formulations was CNY 1,498,250,342.16, up 9.62% year-on-year[50]. - The revenue from the holding distributors decreased by 6.77% to CNY 1,004,221,367.63[50]. - The company reported a total profit of CNY 310,690,848.17 for the first half of 2020, up from CNY 297,975,512.44 in the first half of 2019, an increase of 4.67%[147]. - The company’s total comprehensive income for the first half of 2020 was CNY 307,637,619.19, compared to CNY 276,626,731.35 in the same period of 2019, an increase of 11.22%[148]. Cash Flow and Assets - The net cash flow from operating activities was -¥352,918,292.14, a decline of 80.31% compared to -¥195,731,553.18 in the same period last year[18]. - Cash and cash equivalents at the end of the reporting period amounted to ¥649.69 million, representing 10.58% of total assets, a decrease of 0.36% compared to the previous year[53]. - Accounts receivable reached ¥1.23 billion, accounting for 20.05% of total assets, down 2.57% from the same period last year[53]. - Inventory stood at ¥990.45 million, making up 16.12% of total assets, a decline of 3.04% year-over-year[53]. - Long-term equity investments increased to ¥745.38 million, representing 12.13% of total assets, up 4.83% due to new investments in various companies[53]. - The total assets at the end of the reporting period were ¥6,142,482,964.24, an increase of 4.39% from ¥5,884,396,026.78 at the end of the previous year[18]. - The total liabilities amounted to CNY 2,991,342,863.16, a decrease from CNY 3,005,001,041.92, reflecting a decline of about 0.5%[139]. - Owner's equity totaled CNY 3,151,140,101.08, up from CNY 2,879,394,984.86, marking an increase of approximately 9.4%[140]. Research and Development - The company invested CNY 49,955,098.87 in R&D, a decrease of 4.34% from the previous year[47]. - The company is focusing on expanding its product development and production scale to mitigate risks associated with raw material procurement and supply fluctuations[71]. - The company is actively collaborating with universities and agricultural research institutions to improve breeding and seedling research, aiming to elevate the overall planting management level[75]. - The company is committed to research and development in agricultural products and technology applications[173]. Agricultural Services and Market Position - The company continues to focus on the research, production, and sales of agricultural inputs, particularly pesticide formulations and plant nutrition products[26]. - The company aims to enhance production efficiency and support farmers' income growth through its agricultural service model[26]. - The agricultural service market in China is expected to exceed trillions of yuan, driven by modernization, standardization, and branding efforts[30]. - The company maintains a leading position in the industry with over 300 invention patents and a high percentage of environmentally friendly pesticide formulations[37]. - The company has established a nationwide agricultural service network with 112 controlled and affiliated distributors, enhancing local operational efficiency[33]. Shareholder Engagement and Management - The company held several shareholder meetings with participation rates of 41.96% and 35.81% for different meetings, reflecting shareholder engagement[78]. - The company appointed Wang Shihao as the vice chairman of the board on April 23, 2020, as part of its management restructuring[130]. - The company completed the second phase of its employee stock ownership plan, purchasing 49.071867 million shares at an average price of 10.05 CNY per share, accounting for 5.37% of the total share capital[87]. Risks and Challenges - The company has identified risks related to raw material price fluctuations due to environmental regulations and is implementing strategies to stabilize supply and costs[71]. - The company is facing potential risks from adverse weather conditions and natural disasters that could impact its operations[73]. - The company reported a significant loss of CNY 14,200,729.69 in net profit for its financial services subsidiary, indicating challenges in that segment[71]. Corporate Governance and Compliance - The financial report for the first half of 2020 was not audited, indicating a potential area for future scrutiny[135]. - The company did not engage in any securities or derivative investments during the reporting period[63][64]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period[121]. - The company has not conducted any poverty alleviation work or plans for future initiatives during the reporting period[110]. - The company reported no significant environmental protection issues and is not classified as a key pollutant discharge unit by environmental authorities[109]. Future Outlook - Future outlook includes potential growth driven by strategic acquisitions and partnerships within the agricultural sector[177]. - The company is actively pursuing new strategies to enhance operational efficiency and market competitiveness[177].

Financial Performance - The company's operating revenue for 2019 was CNY 4,058,394,534.12, representing a year-on-year increase of 1.32% compared to CNY 4,005,444,207.28 in 2018[25] - The net profit attributable to shareholders of the listed company was CNY 236,009,425.93, a decrease of 28.30% from CNY 329,165,736.61 in the previous year[25] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 166,502,935.00, down 34.83% from CNY 255,472,570.55 in 2018[25] - Basic earnings per share were CNY 0.2610, a decrease of 27.52% from CNY 0.3601 in the previous year[25] - The total assets at the end of 2019 were CNY 5,884,396,026.78, an increase of 6.55% from CNY 5,522,594,812.60 at the end of 2018[25] - The net assets attributable to shareholders of the listed company were CNY 2,279,036,347.94, reflecting a growth of 6.89% from CNY 2,132,130,974.02 in 2018[25] - The weighted average return on net assets was 10.19%, down from 16.26% in the previous year, indicating a decline of 6.07%[25] Cash Flow - The net cash flow from operating activities increased by 122.05% to CNY 178,199,754.83, compared to CNY 80,252,184.61 in 2018[25] - The net cash flow from operating activities showed a significant turnaround, with -¥104,838,490.27 in the first quarter and a positive ¥405,455,516.08 in the fourth quarter[30] - The net cash flow from operating activities surged by 122.05%, reaching ¥178,199,754.83 compared to ¥80,252,184.61 in 2018[84] - The net cash flow from investing activities decreased significantly by 407.95% to CNY -53,594.40 million, attributed to substantial investments in the supply chain and fixed assets[94] - The net cash flow from financing activities increased by 30.83% to CNY 30,560.06 million, due to higher inflows from bank loans and investments[94] Revenue Breakdown - The company's main business revenue from its own operations was CNY 2,037.99 million, accounting for 50.22% of total revenue, which represents a decline of 6.15% year-on-year[64] - The revenue from controlling distributors reached CNY 2,020.40 million, which is a 10.17% increase compared to the previous year, accounting for 49.78% of total revenue[64] - The "TianTian Circle" business model generated total revenue of CNY 2,138.53 million, reflecting a growth of 15.28% year-on-year, with a net profit of CNY 31.20 million, down 1.49% from the previous year[59] Market Position and Strategy - The company maintains a leading position in the pesticide formulation industry, consistently ranking among the top 50 in China for over a decade[44] - The company is focused on enhancing agricultural service efficiency and expanding its "Tian Tian Circle" regional agricultural service platform[39] - The agricultural service market is expected to exceed ¥10 trillion, indicating significant growth potential for the company[43] - The company has established a nationwide agricultural service network through partnerships with 120 distributors, enhancing local agricultural service capabilities[48] - The company is focusing on developing niche crop industries, including dragon fruit and macadamia nuts, to enhance its competitive edge in the agricultural sector[59] Research and Development - Research and development expenses totaled 92,972,714.25 CNY, a decrease of 6.47% compared to the previous year[78] - The company successfully registered 120 new pesticide formulations and launched 7 new products, including a patented compound in collaboration with a foreign enterprise[79] - The company aims to deepen its research and development system to enhance product quality and maintain industry leadership in the pesticide formulation sector[126] Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares (including tax) to all shareholders[8] - In 2019, the company distributed cash dividends of 134,885,836.95 CNY, representing 57.15% of the net profit attributable to ordinary shareholders[155] - The total cash dividend amount, including other methods, was 235,837,468.05 CNY, which accounted for 100% of the distributable profit[159] Risks and Challenges - The company has identified risks related to raw material price fluctuations and operational management, which are detailed in the report[7] - The company faced significant risks from fluctuations in raw material procurement prices due to the chemical cycle and environmental regulations, impacting profitability[147] Organizational Development - The company emphasizes the importance of organizational development and has implemented a customer intelligent management system to drive business innovation and reduce management costs[62] - The company has established a closed-loop management system for talent selection, focusing on moral character and work style as qualification baselines[146] - The company plans to maintain a stable management team while attracting industry talent to strengthen operational management capabilities[148] Financial Adjustments and Compliance - The company adjusted its financial statements according to the new accounting standards, impacting accounts receivable by CNY 858,899,028.60[167] - The company implemented new financial instrument standards starting January 1, 2019, which required adjustments to previous financial data[172] - The company confirmed that there were no significant accounting errors requiring retrospective restatement during the reporting period[180]