Financial Performance - The company's operating revenue for 2019 was CNY 1,370,443,052.37, representing a 36.31% increase compared to CNY 1,005,407,832.48 in 2018[16] - The net profit attributable to shareholders decreased by 49.64% to CNY 89,932,157.43 from CNY 178,584,284.94 in the previous year[16] - The net profit after deducting non-recurring gains and losses was CNY 68,986,307.46, down 57.87% from CNY 163,735,630.12 in 2018[16] - Basic earnings per share fell by 49.32% to CNY 0.3109 from CNY 0.6135 in the previous year[16] - The net cash flow from operating activities was CNY 239,545,250.35, a decrease of 23.72% compared to CNY 314,023,302.09 in 2018[16] - The company's total revenue for Q1, Q2, Q3, and Q4 was approximately ¥279.27 million, ¥365.55 million, ¥365.19 million, and ¥360.43 million respectively, indicating a strong performance in the second quarter[20] - Net profit attributable to shareholders for the same quarters was ¥6.79 million, ¥26.33 million, ¥36.71 million, and ¥20.11 million, showing significant growth in Q3[20] - The net cash flow from operating activities improved significantly, with Q1 at -¥33.58 million, Q2 at ¥76.27 million, Q3 at ¥92.96 million, and Q4 at ¥103.90 million, reflecting better liquidity management[20] Assets and Liabilities - Total assets at the end of 2019 were CNY 1,907,848,550.84, a slight decrease of 1.10% from CNY 1,929,049,392.75 at the end of 2018[16] - The net assets attributable to shareholders increased by 2.09% to CNY 1,612,901,294.82 from CNY 1,579,896,211.52 in 2018[16] - Cash and cash equivalents increased by 410.99% year-on-year, indicating improved liquidity due to the maturity of financial products[28] - The company's cash and cash equivalents increased to CNY 117,334,970.10, up from CNY 22,962,423.12, reflecting improved liquidity[61] - Total assets included CNY 998,109,482.30 in fixed assets, representing 52.32% of total assets, showing a slight increase from the previous year[61] Revenue Sources - The revenue from the chemical manufacturing sector surged by 347.52% to ¥685,786,466.46, while the pharmaceutical manufacturing revenue fell by 25.70% to ¥573,835,522.51[39] - The revenue from the new product line of polyether monomers and water-reducing agents reached ¥504,430,767.83, with a net profit of ¥34,505,097.38[35] - Domestic revenue increased by 165.79% to ¥934,783,298.92, while international revenue decreased by 33.36% to ¥435,659,753.45[39] Research and Development - The company has developed 150 new products in the functional nutrition and special dietary food categories, enhancing its product portfolio[30] - The company invested in R&D, obtaining patent authorizations in China, the USA, and Japan for new taurine production processes[36] - The company’s R&D expenses increased by 126.91% to ¥54,417,065.87, driven by higher investments in R&D and the inclusion of Ling'an Technology's data[51] - The company has obtained new production licenses for plant-based beverages, fruit and vegetable juices, and plant protein drinks, expanding its product offerings[30] Market Position - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[26] - The company plans to expand its production capacity for taurine, with a project to produce 30,000 tons of taurine food additives, which is expected to enhance market share[78] Risk Management - The company faces various risks including safety, operational, exchange rate, and management risks as outlined in the report[5] - The majority of the company's revenue is settled in USD, and fluctuations in the USD/RMB exchange rate pose a risk of significant foreign exchange losses[81] - The company’s management faces challenges due to the expanding scope and scale of its business, necessitating adaptation to new management models and talent development[81] Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares, based on a total of 287,200,897 shares[5] - The cash dividend payout ratio for 2019 increased from 16.50% in 2018 to 47.90% in 2019[89] - The total cash dividend, including share repurchase, amounted to ¥113,936,784.34, accounting for 37.81% of the total distributable profit of ¥668,239,056.46[90] Corporate Governance - The company maintains a strict governance structure in compliance with relevant laws and regulations, ensuring independent operation of the board and supervisory committee[186] - The company has established effective performance evaluation and incentive mechanisms for directors, supervisors, and senior management, enhancing team efficiency[191] - The company has a complete and independent financial accounting system, with no guarantees provided to shareholders, and operates as an independent taxpayer[196] Environmental and Social Responsibility - The company completed a clean production audit and is committed to ongoing environmental protection efforts, including energy conservation and emissions reduction[129] - The company has a wastewater treatment facility with a design capacity of 2,700 m³ per day, utilizing activated sludge nitrogen removal technology[132] - The company emphasizes social responsibility, focusing on quality and service to create value for shareholders and stakeholders[125] Employee Welfare - The company actively engages in employee welfare, providing free meals, accommodation, and health check-ups, enhancing employee morale and cohesion[127] - The company implemented a salary system that includes annual salary, commission, and structured salary systems, enhancing employee welfare with various allowances and benefits[182] - The company conducted 63 training sessions out of a planned 68, achieving a completion rate of 95.6%[183]

Financial Performance - The company's revenue for Q1 2020 was ¥218,568,021.59, representing a decrease of 21.73% compared to ¥279,265,466.80 in the same period last year[8] - Net profit attributable to shareholders was ¥4,943,479.06, down 27.17% from ¥6,787,546.94 year-on-year[8] - The net profit after deducting non-recurring gains and losses increased by 85.49% to ¥2,329,764.15 from ¥1,255,989.38 in the previous year[8] - Basic and diluted earnings per share decreased by 26.09% to ¥0.0170 from ¥0.0230 year-on-year[8] - Net profit decreased by 30.15% to ¥6,862,854.24, attributed to a reduction in total profit[16] - Total operating revenue for Q1 2020 was CNY 218,568,021.59, a decrease of 21.7% compared to CNY 279,265,466.80 in Q1 2019[49] - Net profit for Q1 2020 was CNY 6,862,854.24, representing a decline of 30.0% from CNY 9,824,787.28 in Q1 2019[50] - The total comprehensive income for Q1 2020 was CNY 7,272,708.31, down from CNY 12,210,262.59 in Q1 2019[51] Cash Flow and Liquidity - The net cash flow from operating activities improved by 32.61%, reaching -¥22,630,489.63 compared to -¥33,583,740.70 in the same period last year[8] - Cash and cash equivalents decreased by 33.05% to ¥78,555,180.59 due to reduced collections and increased investments[16] - The company reported a net cash increase of negative CNY 38,779,789.53, compared to a positive increase of CNY 81,030,422.50 in the prior year[59] - Total cash inflow from operating activities was CNY 118,385,171.25, a decline of 41.5% from CNY 202,356,148.37[60] - Total cash outflow from operating activities was CNY 115,351,973.39, down from CNY 216,566,195.78 in the previous period[60] - Investment cash inflow was CNY 223,900,877.40, a decrease of 34.0% compared to CNY 339,068,969.20 in the prior period[58] - Net cash flow from investment activities was negative CNY 20,304,689.70, contrasting with a positive CNY 116,460,262.44 in the previous year[58] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,872,960,719.31, a decrease of 1.83% from ¥1,907,848,550.84 at the end of the previous year[8] - Total liabilities amounted to CNY 251,135,078.84, with current liabilities at CNY 207,901,502.36 and non-current liabilities at CNY 43,233,576.48[65] - Current liabilities decreased from CNY 207,901,502.36 to CNY 141,470,966.46, a reduction of about 32%[41] - Non-current assets totaled CNY 1,126,234,782.76, down from CNY 1,150,809,120.06, reflecting a decrease of approximately 2.14%[40] - Total current assets amounted to ¥746,725,936.55, down from ¥757,039,430.78, reflecting a decrease of approximately 1.4%[38] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,145[12] - The largest shareholder, Chen Yong, holds 21.54% of the shares, totaling 63,468,000 shares[12] - The company has completed the first phase of share repurchase, acquiring 5,038,557 shares, representing 1.71% of the total share capital, with a total transaction amount of RMB 49,992,848.77[23] - The second phase of share repurchase began on September 18, 2019, with a total of 2,443,046 shares repurchased by December 31, 2019, accounting for 0.83% of the total share capital, totaling RMB 20,850,949.14[24] Research and Development - Research and development expenses decreased by 52.51% to ¥4,812,833.07 due to a significant reduction in R&D activities caused by the pandemic[16] - Research and development expenses decreased to CNY 4,812,833.07 in Q1 2020, a reduction of 52.5% compared to CNY 10,134,651.37 in Q1 2019[49] Government Support and Subsidies - The company received government subsidies amounting to ¥2,262,502.99 during the reporting period[9] - Other income for Q1 2020 was CNY 2,262,502.99, an increase from CNY 1,981,324.18 in Q1 2019[49] Compliance and Governance - The company has not engaged in derivative investments during the reporting period, ensuring a focus on core operations[31] - There were no violations regarding external guarantees during the reporting period, reflecting sound governance practices[32] - The company did not report any non-operating fund occupation by controlling shareholders or related parties, indicating a stable financial environment[33] - The company has fulfilled its commitments regarding information disclosure and equity incentive plans[25]

潜江永安药业股份有限公司 2019 年第三季度报告全文 潜江永安药业股份有限公司 2019 年第三季度报告 2019 年 10 月 1 潜江永安药业股份有限公司 2019 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。 公司负责人陈勇、主管会计工作负责人吴晓波及会计机构负责人(会计主管 人员)张天元声明：保证季度报告中财务报表的真实、准确、完整。 2 潜江永安药业股份有限公司 2019 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 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 1,885,983,657.42 | | 1,929,049,392.75 | -2.23% | | 归属于上市公司股东的净资产（元） | 1,607,804 ...

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 644,819,041.79, representing a 27.19% increase compared to CNY 506,955,178.58 in the same period last year[17]. - The net profit attributable to shareholders of the listed company decreased by 68.77% to CNY 33,114,377.05 from CNY 106,018,492.55 year-on-year[17]. - The net profit after deducting non-recurring gains and losses fell by 77.28% to CNY 22,586,012.87 compared to CNY 99,420,354.70 in the previous year[17]. - The net cash flow from operating activities was CNY 42,686,717.45, down 72.85% from CNY 157,220,827.74 in the same period last year[17]. - Basic earnings per share decreased by 70.27% to CNY 0.11 from CNY 0.37 year-on-year[17]. - Operating profit decreased by 59.64% to ¥51,092,928.47, while net profit attributable to shareholders fell by 68.77% to ¥33,114,377.05[33]. - The revenue from the pharmaceutical manufacturing sector decreased by 25.49% to RMB 290,216,756.31, down from RMB 389,513,022.71[40]. - The company reported a net profit attributable to shareholders of RMB 33,114,377.05, a significant decline of 68.77% from RMB 106,018,492.55 due to a drop in taurine prices and a decrease in gross margin[41]. - The company achieved a 128.47% increase in domestic revenue, amounting to RMB 412,099,249.15, compared to RMB 180,374,625.50 in the previous year[41]. - The company reported a total comprehensive income of CNY 42,429,159.00, down from CNY 105,001,914.49 in the previous year[153]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,867,984,626.82, a decrease of 3.17% from CNY 1,929,049,392.75 at the end of the previous year[17]. - The company's total assets decreased to CNY 1,892,397,129.02 from CNY 1,967,901,357.88, reflecting a decline of 3.8%[149]. - Total liabilities decreased to CNY 235,238,297.85 from CNY 323,114,643.94, a reduction of about 27.2%[144]. - The company's total liabilities decreased to CNY 201,526,918.11 from CNY 294,934,009.02, a reduction of 31.6%[149]. - The company's equity attributable to shareholders increased to CNY 1,597,900,178.36 from CNY 1,579,896,211.52, reflecting a growth of approximately 1.1%[144]. - The total equity attributable to shareholders reached 3,566.2 million yuan, up by 5.2% from the previous year[171]. Cash Flow - The company’s cash and cash equivalents increased by 352.55% compared to the beginning of the reporting period, primarily due to the redemption of financial products[27]. - The company’s operating cash flow decreased by 72.85% to ¥42,686,717.45, indicating challenges in cash generation[33]. - Cash flow from operating activities decreased by 72.85% to RMB 42,686,717.45, mainly due to a decline in net profit[41]. - The net cash flow from operating activities decreased to ¥25,065,201.80 in the first half of 2019, down 85.3% from ¥170,969,987.57 in the same period of 2018[163]. - Cash and cash equivalents at the end of the period rose to ¥71,112,399.34, compared to ¥127,537,941.15 at the end of the previous year, indicating a decrease of 44.2%[165]. Research and Development - Research and development expenses increased by 69.74% to RMB 26,539,149.98, primarily due to an expanded consolidation scope and increased investment in new process development[41]. - The company developed 130 new functional nutrition products and received 1 invention patent and 9 new trademark registrations during the reporting period[30]. - The R&D expenditure for the first half of 2019 was 544.57 million yuan, representing 6.7% of total revenue, highlighting the focus on innovation[171]. Market and Product Development - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[25]. - The company’s sales revenue from health food products increased by 48.4% year-on-year, reflecting successful market expansion efforts[35]. - The company plans to expand its market presence by launching new products and enhancing its research and development capabilities[171]. - The company aims to increase its market share by 10% in the next fiscal year through strategic acquisitions and partnerships[171]. Risks and Legal Matters - The company faces various risks including safety and environmental risks, operational risks, exchange rate risks, and management risks[5]. - The company reported that a significant portion of its revenue is denominated in USD, exposing it to exchange rate risks due to fluctuations in the USD/RMB exchange rate[70]. - The company faced a lawsuit regarding its taurine products, which was ultimately withdrawn, resulting in no financial impact[79]. - The company is involved in a contract dispute with Dalian Wenda Chemical Co., with a judgment requiring the latter to pay $322,956 (approximately 2.17 million RMB) for outstanding debts[80]. Shareholder and Capital Management - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total share capital increased from 196.45 million shares to 294.68 million shares following a capital reserve distribution plan[87]. - The company’s stock incentive plan allowed for the release of 4,254,750 shares, representing 30% of the total restricted stock granted[114]. - The company has a total guarantee amount of 9,924,900 yuan, which accounts for 0.62% of the company's net assets[99]. Environmental and Safety Measures - The company has established a 6000m³ emergency pool to mitigate safety and environmental risks associated with its operations[69]. - The company has implemented strict safety management and waste treatment measures in compliance with relevant laws and regulations[69]. - The company has established three wastewater treatment facilities, with a designed daily treatment capacity of 2,700 m³, and has passed environmental inspections[103]. - The company has not reported any significant environmental pollution incidents during the reporting period[102]. Financial Reporting and Compliance - The company has not conducted an audit of its half-year financial report[77]. - The financial statements of the company comply with accounting standards, accurately reflecting the financial position, operating results, and cash flows for the reporting period[185]. - The company's financial statements were approved by the board of directors on August 22, 2019[181].

Financial Performance - The company's operating revenue for Q1 2019 was ¥279,265,466.80, representing a 22.50% increase compared to ¥227,975,737.91 in the same period last year[8] - The net profit attributable to shareholders was ¥6,787,546.94, a significant decrease of 85.01% from ¥45,281,978.12 year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,255,989.38, down 97.01% from ¥42,026,874.13 in the previous year[8] - Basic and diluted earnings per share were both ¥0.0230, down 90.02% from ¥0.2305 in the previous year[8] - The company reported a significant reduction in employee compensation payable, decreasing to ¥16,632,043.34 from ¥35,310,900.02, a drop of approximately 52.9%[38] - The total comprehensive income for Q1 2019 was CNY 12,210,262.59, down 72.0% from CNY 43,582,106.54 in the previous year[48] - The net profit for the first quarter of 2019 was CNY 14,732,548.21, a decrease of 70.8% compared to CNY 50,439,052.16 in the same period last year[50] Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥33,583,740.70, a decline of 163.71% compared to ¥52,715,644.74 in the same period last year[8] - The cash flow from operating activities showed a net outflow of CNY -33,583,740.70, compared to a net inflow of CNY 52,715,644.74 in the same period last year[54] - The cash and cash equivalents at the end of the period totaled CNY 103,992,845.62, compared to CNY 119,510,532.55 at the end of the previous year[55] - The net increase in cash and cash equivalents for the period was ¥87,546,279.27, a decrease of ¥2,465,066.91 compared to the previous period[59] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,892,566,406.86, a decrease of 1.89% from ¥1,929,049,392.75 at the end of the previous year[8] - Total current assets decreased to ¥729,831,426.16 from ¥766,931,412.04, a decline of approximately 4.5%[37] - Total liabilities decreased to ¥236,315,745.03 from ¥323,114,643.94, a reduction of about 26.9%[38] - Total equity increased to CNY 1,725,515,547.22, up from CNY 1,672,967,348.86, reflecting a growth of 3.1%[44] Investments and Expenditures - Long-term equity investments reached ¥29,769,637.40, attributed to the investment in Zhejiang Shuangzi[16] - R&D expenses increased by 65.17% to ¥10,134,651.37, reflecting the consolidation of Ling'an Technology[16] - The company completed a capital increase of ¥26 million in Ling'an Technology, maintaining a 50.8% stake[22] - The company reported an investment income of CNY 5,284,544.04, an increase from CNY 3,554,684.66 in Q1 2018[47] Operational Changes and Strategic Decisions - The company decided to terminate operations of its Canadian subsidiary Inoyan Laboratories, resulting in a reduction of registered capital from $4 million to $2 million[22] - The company plans to repurchase shares with a total amount not less than RMB 25 million and not exceeding RMB 50 million, at a price not exceeding RMB 15.70 per share, within a 12-month period[24] - The company has committed to avoid any business activities that compete with its own products, ensuring no direct or indirect participation in competitive businesses[25] Compliance and Governance - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[30] - There were no violations regarding external guarantees during the reporting period[29] - The company has committed to not use idle raised funds for permanent working capital or repaying bank loans[26] - The company did not undergo an audit for the first quarter report[60]

Financial Performance - The company's operating revenue for 2018 was CNY 1,005,407,832.48, representing a 7.79% increase compared to CNY 932,771,728.82 in 2017[16] - The net profit attributable to shareholders for 2018 was CNY 178,584,284.94, a 34.12% increase from CNY 133,150,739.85 in 2017[16] - The net cash flow from operating activities increased by 59.15% to CNY 314,023,302.09 in 2018, up from CNY 197,318,497.43 in 2017[16] - Basic earnings per share rose to CNY 0.6135 in 2018, a 34.36% increase from CNY 0.4566 in 2017[16] - Total assets at the end of 2018 were CNY 1,929,049,392.75, reflecting a 22.10% increase from CNY 1,579,917,773.10 at the end of 2017[16] - The net assets attributable to shareholders increased by 17.80% to CNY 1,579,896,211.52 at the end of 2018, compared to CNY 1,341,120,538.86 at the end of 2017[16] Dividend Distribution - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 29,468,250.00 based on 294,682,500 shares[5] - The company plans to distribute a cash dividend of CNY 1.00 per share for the 2018 fiscal year, totaling CNY 29,468,250, which represents 16.50% of the net profit attributable to shareholders[87] - For the 2017 fiscal year, the cash dividend was CNY 1.00 per share, amounting to CNY 19,645,500, accounting for 14.75% of the net profit attributable to shareholders[87] Research and Development - The company implemented seven research projects during the reporting period, resulting in three invention patents, enhancing its technological innovation capabilities[29] - Research and development expenses rose by 142.58% to CNY 23,981,920.94, focusing on reducing side effects and improving production processes, resulting in three new patents[51][52] - The company is focusing on the research and development of taurine production technology to maintain its leading position in the industry[29] Market Position and Expansion - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[26] - The company has expanded its product offerings to include epoxy ethane and health-related products through its subsidiaries[15] - The company is currently involved in a patent infringement lawsuit in the United States, which may impact its operations and market strategy[82] - The company has received food production licenses for its taurine project, which is expected to facilitate market expansion[82] - The company reported a significant increase in taurine market demand, particularly in the feed industry, indicating growth potential[82] Investment Activities - The company invested approximately ¥1,000 million in safety and environmental upgrades, ensuring stable operation of safety facilities[35] - The company invested CNY 385,826,732.31 in the construction of a 30,000-ton taurine food additive production facility, with a completion status of 100%[69] - The company acquired a 50.08% stake in Ling'an Technology, becoming its controlling shareholder, and plans to build a new low-carbon epoxy derivative project with an annual capacity of 112,000 tons[34] - The company invested ¥30 million to acquire a 20% stake in Zhejiang Twin, laying the foundation for expansion into intelligent manufacturing[34] Operational Risks - The company faces risks including safety and environmental hazards associated with its ethylene oxide and taurine operations, which could impact production stability and increase operational costs[79] - The company is exposed to operational risks, including potential underperformance of new projects and ongoing losses in health product operations[80] - The company’s revenue is primarily denominated in USD, exposing it to exchange rate fluctuations that could lead to significant foreign exchange losses[80] Corporate Governance - The company has established a comprehensive internal control system to enhance corporate governance and protect shareholder rights[129] - The company has complied with all commitments made by shareholders regarding avoiding competition during the reporting period[90] - The company has a structured approach to determining the remuneration of its directors and senior management, ensuring timely payment according to established guidelines[178] Employee Welfare and Management - The company maintained a 100% signing rate for labor contracts and social insurance participation rate for employees[130] - The company provides various employee benefits, including allowances, holiday benefits, and year-end bonuses, to improve employee compensation levels[185] - The company conducted a staff representative assembly to elect two employee representatives as supervisors, reflecting democratic management practices[131] Environmental Initiatives - The company has planted over 2,370 trees and created approximately 10,980 m² of green space in 2018 as part of its environmental initiatives[133] - The company is committed to continuous environmental protection efforts, including regular monitoring of pollution sources by third parties[139] - The company has a wastewater treatment facility with a design capacity of 2,700 m³/d, which operates using activated sludge nitrogen removal technology[137] Financial Management - The company has a diversified investment strategy, utilizing various financial products with expected annualized returns ranging from 4.90% to 5.48%[123] - The total amount of entrusted financial management at the end of the reporting period was 37,886.8 million, indicating a strong liquidity position[123] - The company has maintained a consistent approach to risk management in its financial investments, with no reported losses or impairments[123] Shareholder Structure - The total number of shareholders at the end of the reporting period was 30,856, an increase from 30,788 at the end of the previous month[157] - Chen Yong, the largest shareholder, holds 21.54% of the shares, with a total of 63,468,000 shares, which decreased by 21,156,000 shares during the reporting period[157] - The company did not experience any changes in its controlling shareholder during the reporting period[159] Legal and Compliance - The company faced a lawsuit regarding a debt of RMB 1.426 million, which was dismissed by the court, maintaining the original ruling[100] - The company reported a total of RMB 142,500 in illegal income confiscated and a fine of RMB 73,500 for violations of food safety laws[102] - In 2018, the company faced a fine of CNY 20,000 due to non-compliance with foreign investment reporting regulations[103]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 506,955,178.58, representing an increase of 18.33% compared to CNY 428,440,271.59 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached CNY 106,018,492.55, a significant increase of 48.52% from CNY 71,382,649.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 99,420,354.70, up 71.66% from CNY 57,916,291.27 in the previous year[17]. - The net cash flow from operating activities was CNY 157,220,827.74, which is a 102.62% increase compared to CNY 77,595,787.66 in the same period last year[17]. - Basic earnings per share increased to CNY 0.37, reflecting a growth of 48.00% from CNY 0.25[17]. - Total assets at the end of the reporting period were CNY 1,740,380,210.57, an increase of 10.16% from CNY 1,579,917,773.10 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were CNY 1,495,028,130.14, up 11.48% from CNY 1,341,120,538.86 at the end of the previous year[17]. - The company reported a total of CNY 6,598,137.85 in non-recurring gains and losses during the reporting period[22]. - The weighted average return on net assets was 7.40%, an increase of 1.53% compared to 5.87% in the previous year[17]. - Operating profit reached ¥126,582,246.51, a growth of 62.75% year-on-year[31]. - Net profit for the period was ¥105,653,374.04, reflecting a 47.64% increase from ¥71,562,638.48 in the previous year[35]. - The total profit for the period was ¥126,640,805.40, marking a 48.27% increase from ¥85,412,490.53 in the previous year[35]. Market Position and Operations - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[26]. - The construction of a new project for an annual production capacity of 30,000 tons of taurine food additives has been completed, increasing total taurine capacity to 64,000 tons[31]. - The pharmaceutical manufacturing sector contributed ¥389,513,022.71, accounting for 76.83% of total revenue, with a year-on-year growth of 23.00%[38]. - The company’s epoxy ethane production capacity is 40,000 tons, primarily to ensure raw material supply for taurine production[26]. - The company plans to strengthen its market presence in health food products through strategic partnerships and new product development[32]. Research and Development - Research and development expenses increased by 46.77% to ¥16,568,388.68, driven by new scientific projects[34]. - The company has filed for a patent on a new method for taurine production, enhancing its competitive edge in the industry[28]. - The company is focused on research and development of new products and technologies to enhance its competitive edge in the market[163]. Cash Flow and Investments - Cash and cash equivalents saw a net decrease of 92.77%, dropping to ¥4,343,436.12 from ¥60,067,327.56, mainly due to increased construction expenditures[35]. - The total investment in the taurine food additive project was ¥262,105,395.71, with cumulative investment reaching ¥408,333,929.26, funded 95% by the company's own resources[49]. - The company recorded a total of ¥12,229,828.33 in stock investments, with a loss of ¥1,966,604.95 during the reporting period[51]. - The total amount of securities investments was reported at ¥17,331,854.36, with a cumulative investment income of ¥13,840,634.50[52]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total number of shares increased from 196,455,000 to 294,682,500 due to the release of restrictions on shares held by directors and senior management[106]. - The company approved the first unlock of the 2016 restricted stock incentive plan, with a total of 4.7275 million shares unlocked, representing 50% of the granted restricted stocks[107]. - The largest shareholder, Chen Yong, holds 21.54% of the shares, with a total of 63,468,000 shares, of which 15,867,000 are frozen[115]. - The company reported no changes in the controlling shareholder or actual controller during the reporting period[117]. Legal and Compliance Matters - The company is involved in a patent infringement lawsuit in the United States, with no current impact on operations[73]. - There were no major litigation or arbitration matters during the reporting period[72]. - The company has committed to not using idle raised funds for permanent working capital or repaying bank loans[69]. - The company has complied with all commitments made regarding avoiding competition during the reporting period[67]. Environmental and Safety Measures - The company has established two wastewater treatment facilities with a designed daily processing capacity of 2,600 m³, and a new facility with a capacity of 2,700 m³ is currently in trial operation[97]. - The company has obtained environmental impact assessment approvals for its production lines, including a 34,000-ton taurine production line and a 40,000-ton ethylene oxide production line[97]. - The company has implemented safety measures, including the installation of an independent safety instrument system and video monitoring for hazardous material storage areas[61]. Financial Reporting and Accounting Policies - The financial report for the first half of 2018 has not been audited[127]. - The company’s financial statements are prepared based on the going concern assumption, with no significant uncertainties regarding its ability to continue operations for the next 12 months[168]. - The accounting policies and estimates have been updated in accordance with the new accounting standards effective from June 12, 2017[169]. - The company includes all subsidiaries in its consolidated financial statements, ensuring uniform accounting policies across the group[175].

Financial Performance - Total assets increased by 16.37% to CNY 1,838,607,913.87 compared to the end of the previous year[8] - Net profit attributable to shareholders decreased by 6.99% to CNY 45,810,075.11 for the current period[8] - Operating income for the current period rose by 2.02% to CNY 221,055,372.95, while year-to-date revenue increased by 12.85% to CNY 728,010,551.53[8] - Basic earnings per share decreased by 5.88% to CNY 0.16, while diluted earnings per share remained the same[8] - The weighted average return on equity was 3.02%, down by 1.09% compared to the previous year[8] - Operating profit rose by 31.92% to ¥179,397,782.82, mainly due to increased taurine prices and higher gross margins[17] - The estimated net profit attributable to shareholders for 2018 is expected to be between RMB 179.75 million and RMB 213.04 million, representing a year-on-year increase of 35% to 60%[25] - The increase in net profit is primarily attributed to the growth in taurine-related performance, excluding the impact of the merger with Hubei Ling'an Technology Co., Ltd.[25] Cash Flow and Investments - Net cash flow from operating activities surged by 1,072.24% to CNY 84,317,177.86 for the current period[8] - Net cash flow from operating activities increased by 184.87% to ¥241,538,005.60, attributed to higher sales revenue and increased tax refunds[17] - Total investment in the taurine food additives project reached ¥5.4 billion after an additional investment of ¥210 million[18] - The company plans to invest RMB 26 million in Hubei Ling'an Technology Co., Ltd., becoming a new shareholder[25] - Total entrusted financial management amount reached CNY 42,306.8 million, with an outstanding balance of CNY 28,306.8 million[32] - The company invested CNY 9,796 million in bank financial products and CNY 32,510.8 million in broker financial products[32] Shareholder Information - The total number of shareholders at the end of the reporting period was 30,961[12] - The largest shareholder, Chen Yong, holds 21.54% of the shares, with 63,468,000 shares, of which 47,601,000 are frozen[12] - The company’s total share capital increased from 196,455,000 shares to 294,682,500 shares following a capital reserve conversion plan approved at the 2017 annual general meeting[21] Research and Development - R&D expenses surged by 1053.48% to ¥22,152,549.71, driven by new research projects and ongoing trial expenditures[17] Project Developments - The company has completed the trial production conditions confirmation for the annual production of 30,000 tons of taurine food additive project, which is now ready for trial production[19] - The company received the food production license for the annual production of 30,000 tons of taurine food additive project from the Hubei Provincial Food and Drug Administration[19] - The company has successfully passed the fire safety acceptance for the taurine food additive project, receiving the relevant approval from the local fire department[19] - The company plans to expand its production capacity to meet the growing demand for taurine in the market[18] Financial Management Strategies - The company plans to continue expanding its financial management strategies with a focus on high-return products[32] - The company has a strategy to diversify its financial investments to mitigate risks associated with high-risk products[32] Market and Competitive Landscape - The company is focusing on the demand and competitive landscape of the taurine market, particularly in the feed industry[35] - The company is assessing the impact of the U.S.-China trade war on its business and market conditions[35] - The company is tracking the progress of its epoxy ethane production and sales amid fluctuating market prices[36] Corporate Governance and Transparency - The company has not reported any violations regarding external guarantees during the reporting period[29] - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[30] - The company is committed to transparency through regular communication with investors and stakeholders regarding project updates and financial performance[35] Strategic Initiatives - The company is exploring potential mergers and acquisitions to enhance market presence and expand its product offerings[36] - The company is actively engaging in risk investment and financial management, with updates on patent infringement lawsuits in the U.S.[36]

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 506,955,178.58, representing an increase of 18.33% compared to CNY 428,440,271.59 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached CNY 106,018,492.55, a significant increase of 48.52% from CNY 71,382,649.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 99,420,354.70, up 71.66% from CNY 57,916,291.27 in the previous year[17]. - The net cash flow from operating activities was CNY 157,220,827.74, which is a 102.62% increase compared to CNY 77,595,787.66 in the same period last year[17]. - Basic earnings per share increased to CNY 0.37, reflecting a growth of 48.00% from CNY 0.25[17]. - Total operating revenue for the first half of 2018 was CNY 506,955,178.58, an increase of 18.3% compared to CNY 428,440,271.59 in the same period last year[137]. - Net profit for the first half of 2018 reached CNY 105,653,374.04, representing a 47.7% increase from CNY 71,562,638.48 in the previous year[139]. - The company reported an operating profit of CNY 126,582,246.51, which is a significant increase of 62.5% from CNY 77,778,221.49 in the previous period[137]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,740,380,210.57, an increase of 10.16% from CNY 1,579,917,773.10 at the end of the previous year[17]. - The total liabilities as of the end of the reporting period were CNY 232,963,302.77, compared to CNY 224,300,300.67, indicating a slight increase of 3.7%[136]. - Owner's equity increased from ¥1,344,686,808.26 to ¥1,498,229,281.03, representing a growth of approximately 11.4%[132]. - The company's total assets decreased by 62.69% in other non-current assets, primarily due to reduced prepayments for projects and equipment[41]. - The total liabilities increased from ¥235,230,964.84 to ¥242,150,929.54, a rise of about 2.0%[131]. Market Position and Operations - The company holds approximately 50% of the global market share in taurine production, with over 80% of its products exported[26]. - The construction of a new project for an annual production capacity of 30,000 tons of taurine food additives has been completed, increasing total taurine capacity to 64,000 tons[31]. - The pharmaceutical manufacturing sector contributed ¥389,513,022.71, accounting for 76.83% of total revenue, with a year-on-year growth of 23.00%[38]. - The company is expanding its health food business and has developed 183 OEM products during the reporting period[32]. Research and Development - Research and development expenses increased by 46.77% to ¥16,568,388.68, driven by new research projects[34]. - The company has filed for a patent on a new method for taurine production, enhancing its competitive edge[28]. Cash Flow and Investments - The net cash flow from investment activities was -¥132,825,575.10, worsening from -¥114,912,102.53 in the previous period[147]. - Cash inflow from investment activities totaled ¥343,661,629.99, down from ¥359,368,197.49, reflecting a decrease of 4.4%[147]. - The company has invested 408.33 million RMB in the annual production project of 30,000 tons of taurine food additives, achieving 95.00% of the project progress[57]. Legal and Compliance - The company is involved in a patent infringement lawsuit in the U.S. but has not yet received a judgment[73]. - The company has committed to not using idle raised funds for permanent working capital or repaying bank loans[69]. - There were no major litigation or arbitration matters during the reporting period[72]. Shareholder Information - Major shareholder Chen Yong holds 21.54% of the shares, with a total of 63,468,000 shares, including a freeze on 15,867,000 shares[115]. - The total number of shares held by directors and senior management increased from 45,711,637 to 68,567,455 shares[122]. - The company’s total share capital increased by 50% due to the profit distribution plan[110]. Environmental and Safety Measures - The company has established a new wastewater treatment plant that meets all processing requirements, ensuring compliance with environmental regulations[61]. - The company has implemented safety measures, including the integration of raw material storage tanks and the installation of independent safety systems to mitigate environmental and safety risks[61]. Financial Reporting and Accounting Policies - The financial report for the first half of 2018 has not been audited[127]. - The company’s accounting policies comply with the requirements of the Accounting Standards for Business Enterprises, reflecting its financial position as of June 30, 2018[170]. - The company includes all subsidiaries in its consolidated financial statements, ensuring uniform accounting policies across the group[175].

Financial Performance - The company's revenue for Q1 2018 was ¥227,975,737.91, representing a 27.58% increase compared to ¥178,685,525.10 in the same period last year[8]. - Net profit attributable to shareholders for Q1 2018 was ¥45,281,978.12, a significant increase of 73.91% from ¥26,037,497.01 in the previous year[8]. - The net profit after deducting non-recurring gains and losses reached ¥42,026,874.13, marking a 135.37% increase from ¥17,855,833.22 year-on-year[8]. - Basic earnings per share for Q1 2018 were ¥0.23, up 76.92% from ¥0.13 in the previous year[8]. - Operating profit increased by 111.35% to 54,266,645.92, driven by higher sales prices of taurine and improved gross margins[18]. - Net profit rose by 70.66% to 45,022,659.45, reflecting the increase in total profit[18]. - The company expects net profit attributable to shareholders for the first half of 2018 to be between 99.9357 million and 135.627 million yuan, representing a year-on-year increase of 40% to 90%[29]. - The increase in net profit is primarily due to stable production and sales of taurine and high prices, along with reduced losses from the ethylene oxide facility running continuously in the second quarter[29]. Cash Flow and Assets - The net cash flow from operating activities was ¥52,715,644.74, a turnaround from a negative cash flow of -¥27,495,886.51 in the same period last year, indicating a 291.72% improvement[8]. - Total assets at the end of the reporting period were ¥1,653,203,579.80, reflecting a 4.64% increase from ¥1,579,917,773.10 at the end of the previous year[8]. - Net assets attributable to shareholders increased by 7.88% to ¥1,446,793,918.37 from ¥1,341,120,538.86 at the end of the previous year[8]. - The total initial investment in assets amounted to 17,331,854.36, with a fair value change loss of -231,354.23 during the reporting period[32]. - The company purchased assets worth 12,955,911.02 and sold assets totaling 12,724,089.64 in the reporting period[32]. - The cumulative investment reached 17,390,391.51, with a total revenue of 237,531.29 recorded[32]. Shareholder Information - The total number of shareholders at the end of the reporting period was 23,739, with the largest shareholder holding 21.54% of the shares[12]. - Shareholder Shenzhen Shangyuan Capital Management Co., Ltd. reduced its holdings by 8,949,278 shares (4.56% of total shares) from August 4, 2017, to January 18, 2018, and further reduced by 3,231,600 shares (1.64% of total shares) from February 5 to February 13, 2018[24]. - The company initiated a stock incentive plan in 2016, granting 9.455 million restricted shares at a price of 13.52 RMB per share[22]. - The company plans to unlock 4.7275 million shares of restricted stock on February 14, 2018, accounting for 2.4064% of the total share capital of 196.455 million shares[23]. Project Development - The company plans to invest a total of 540 million RMB in the taurine food additive project to meet market demand[19]. - The taurine food additive project is in the final stages of construction, with some production lines entering trial operation[20]. - Construction in progress increased by 100.72% to 310,866,062.34, attributed to expenditures for the annual production of 30,000 tons of taurine food additives[17]. Regulatory and Compliance - The company received a warning from the Hubei Securities Regulatory Bureau for failing to report significant shareholding changes in a timely manner, as the shareholder's stake decreased by 5.1194% without proper disclosure[25]. - The company has commitments from its actual controllers and shareholders to avoid competing businesses, ensuring no direct or indirect participation in any competing activities[27]. - The company is in compliance with its commitments regarding the avoidance of competition and has not faced any overdue commitments during the reporting period[28]. - There were no instances of non-compliance with external guarantees during the reporting period[33]. - The company did not experience any non-operational fund occupation by controlling shareholders or related parties[34]. Market Conditions and Risks - The company is actively monitoring the market conditions and potential impacts on its financial performance due to fluctuations in raw material and product prices[29]. - The company faces risks from potential exchange losses if the RMB continues to appreciate against the USD, as most export sales are settled in USD[29]. Other Financial Information - The company received government subsidies amounting to ¥1,064,323.82 during the reporting period, contributing to its financial performance[9]. - The weighted average return on net assets was 3.32%, an increase of 1.27% compared to 2.05% in the previous year[8]. - Derivative financial assets increased to 57,360.00, primarily due to futures investments[17]. - Other receivables rose by 61.42% to 16,556,889.06, mainly due to a significant increase in export tax rebates[17]. - The company engaged in multiple investor communications, including site visits and phone calls, to discuss production capacity and market demand for taurine[35].