金正大生态工程集团股份有限公司 KINGENTA ECOLOGICAL ENGINEERING GROUP CO.,LTD. 2015 年半年度报告 证券代码：002470 证券简称：金正大 2015 年 7 月 金正大生态工程集团股份有限公司 2015 年半年度报告全文 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、高级管理人员保证半年度报告内容的 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。 所有董事均已出席了审议本报告的董事会会议。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 公司负责人万连步、主管会计工作负责人李计国及会计机构负责人(会计主 管人员)李计国声明：保证本半年度报告中财务报告的真实、准确、完整。 1 | 第一节 | 重要提示、目录和释义 1 | | --- | --- | | 第二节 | 公司简介 5 | | 第三节 | 会计数据和财务指标摘要 7 | | 第四节 | 董事会报告 9 | | 第五节 | 重要事项 19 | | 第六节 | 股份变动及股东情况 28 | | 第七节 | 优先股相关情况 32 | | 第八节 ...

金正大生态工程集团股份有限公司 KINGENTA ECOLOGICAL ENGINEERING GROUP CO.,LTD. 1 2015 年半年度报告 证券代码：002470 证券简称：金正大 披露日期：2015 年 7 月 22 日 金正大生态工程集团股份有限公司 2015 年半年度报告全文 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、高级管理人员保证半年度报告内容的 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。 所有董事均已出席了审议本报告的董事会会议。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 公司负责人万连步、主管会计工作负责人李计国及会计机构负责人(会计主 管人员)李计国声明：保证本半年度报告中财务报告的真实、准确、完整。 | 第一节 | 重要提示、目录和释义 1 | | --- | --- | | 第二节 | 公司简介 5 | | 第三节 | 会计数据和财务指标摘要 7 | | 第四节 | 董事会报告 9 | | 第五节 | 重要事项 19 | | 第六节 | 股份变动及股东情况 28 | | 第七节 | 优先股相关情况 ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice,%20Table%20of%20Contents,%20and%20Definitions) This section provides essential preliminary information, including the report's structure and key terminology [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors and senior management guarantee the report's accuracy and completeness, approving the 2014 profit distribution plan - The company's 2014 profit distribution plan is based on the total share capital as of December 31, 2014, distributing a cash dividend of **CNY 1.50 (tax inclusive) per 10 shares** and transferring **10 shares for every 10 shares** from capital reserves to all shareholders[6](index=6&type=chunk) [Definitions](index=4&type=section&id=Definitions) This section defines key terms, including company entities, fertilizer types, and the financial reporting period - The reporting period is defined as **January 1, 2014, to December 31, 2014**[12](index=12&type=chunk) [Significant Risk Warning](index=6&type=section&id=Significant%20Risk%20Warning) This section alerts investors to detailed risk factors, which are elaborated in the 'Future Development Outlook' of the Board of Directors' Report - Risk factors faced by the company are detailed in 'Section IV Board of Directors' Report / VIII. Future Development Outlook (V) / Potential Risks' of this report[15](index=15&type=chunk) [Company Profile](index=7&type=section&id=Section%20II%20Company%20Profile) This section provides an overview of the company's fundamental information [Basic Company Information](index=7&type=section&id=Basic%20Company%20Information) This section provides Kingenta's basic information, including stock code, legal representative, contact details, and confirms no changes in main business or controlling shareholder since listing | Item | Information | | :--- | :--- | | Stock Abbreviation | Kingenta | | Stock Code | 002470 | | Legal Representative | Wan Lianbu | | Company Website | www.kingenta.com | | Email | jzd@kingenta.com | | Information Disclosure Newspapers | China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily | | Information Disclosure Website | http://www.cninfo.com.cn | - The company's main business and controlling shareholder have remained unchanged since its listing[21](index=21&type=chunk) [Summary of Accounting Data and Financial Indicators](index=9&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators) This section presents a concise overview of the company's key financial performance and position [Key Accounting Data and Financial Indicators](index=9&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2014, the company saw robust revenue and net profit growth, despite a significant decline in operating cash flow, while total assets and net assets increased substantially | Indicator | 2014 | 2013 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 13,554,442,174.90 | 11,992,157,368.94 | 13.03% | | Net Profit Attributable to Shareholders (CNY) | 866,391,964.26 | 663,936,001.69 | 30.49% | | Net Cash Flow from Operating Activities (CNY) | 183,247,120.60 | 1,152,475,185.49 | -84.10% | | Basic Earnings Per Share (CNY/share) | 1.23 | 0.95 | 29.47% | | Weighted Average Return on Net Assets | 18.70% | 17.56% | 1.14% | | Total Assets (CNY) | 11,011,294,385.47 | 8,699,950,487.40 | 26.57% | | Net Assets Attributable to Shareholders (CNY) | 6,888,209,747.00 | 4,084,546,528.31 | 68.64% | | Item | 2014 Amount (CNY) | 2013 Amount (CNY) | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -19,738.17 | -1,450,478.67 | | Government Grants Included in Current P&L | 16,451,710.52 | 7,916,355.35 | | Other Non-operating Income/Expenses | 3,897,719.63 | 3,480,374.77 | | **Total** | **16,774,486.93** | **8,165,995.56** | [Board of Directors' Report](index=11&type=section&id=Section%20IV%20Board%20of%20Directors'%20Report) This section details the company's operational performance, financial position, and future strategic outlook [Analysis of Main Business](index=11&type=section&id=Analysis%20of%20Main%20Business) In 2014, the company achieved steady revenue and profit growth driven by service upgrades and innovation, despite increased selling expenses and a significant decline in operating cash flow | Item | Reporting Year (CNY 10,000) | Prior Year (CNY 10,000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,355,444.22 | 1,199,215.74 | 13.03% | | Operating Cost | 1,116,478.69 | 1,022,239.24 | 9.22% | | Selling Expenses | 75,653.75 | 48,433.89 | 56.20% | | Administrative Expenses | 56,723.32 | 43,563.69 | 30.21% | | Financial Expenses | 3,290.21 | 4,760.03 | -30.88% | | Total Profit | 105,024.14 | 81,523.93 | 28.83% | - The company successfully refinanced **CNY 2.06 billion** through a share issuance, providing financial support for project construction, agricultural service centers, and e-commerce initiatives, and launched an equity incentive plan[34](index=34&type=chunk) | Item | 2014 | 2013 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities (CNY) | 183,247,120.60 | 1,152,475,185.49 | -84.10% | | Net Cash Flow from Investing Activities (CNY) | -944,483,072.64 | -1,241,035,577.85 | -23.90% | | Net Cash Flow from Financing Activities (CNY) | 1,639,731,443.83 | 554,686,065.98 | 195.61% | - In 2014, the company's R&D expenditure was **CNY 391 million**, accounting for **2.88% of operating revenue**[43](index=43&type=chunk) [Composition of Main Business](index=15&type=section&id=Composition%20of%20Main%20Business) The company's main business, fertilizers, saw improved gross margins in 2014, with controlled-release and nitro-compound fertilizers leading in profitability, and the northern region experiencing significant revenue growth | Category | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | **By Product** | | | | | | Ordinary Compound Fertilizer | 5,590,178,310.81 | 4,652,776,073.87 | 16.77% | 14.16% | | Controlled-Release Compound Fertilizer | 4,604,575,470.41 | 3,574,769,175.22 | 22.36% | 19.47% | | Nitro-Compound Fertilizer | 1,459,289,624.38 | 1,146,835,898.05 | 21.41% | 24.33% | | Water-Soluble Fertilizer | 134,912,247.08 | 96,986,312.35 | 28.11% | N/A | | **By Region** | | | | | | Eastern Region | 5,871,027,623.54 | 4,920,258,009.22 | 16.19% | -5.66% | | Central Region | 2,263,088,670.28 | 1,907,492,327.00 | 15.71% | 2.59% | | Northern Region | 3,226,688,952.27 | 2,617,119,257.68 | 18.89% | 76.99% | | Other Regions | 2,165,673,935.77 | 1,702,460,411.32 | 21.39% | 26.27% | [Analysis of Assets and Liabilities](index=16&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) By 2014 year-end, total assets reached CNY 11.01 billion, driven by a 101.84% surge in monetary funds from share issuance and a 38.54% increase in fixed assets due to project investments | Asset Item | 2014 Year-End (CNY) | 2013 Year-End (CNY) | Change Explanation | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,645,078,701.11 | 815,056,959.62 | Increased by 101.84%, primarily due to funds raised from non-public share issuance | | Accounts Receivable | 17,246,043.16 | 4,077,530.46 | Increased by 322.95%, primarily due to some postal channel sales on a goods-first, payment-later basis | | Fixed Assets | 2,287,658,772.59 | 1,651,275,758.80 | Increased by 38.54%, primarily due to subsidiary project investment and construction | [Analysis of Core Competencies](index=17&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies include advanced technology with 193 patents, a leading product portfolio, strong brands, an extensive marketing network, and an innovative management team - Technology Advantage: Possesses multiple national-level R&D platforms, including a National Certified Enterprise Technology Center and National Engineering Research Center for Controlled-Release Fertilizers, holding **193 invention patents** as of the end of the reporting period[56](index=56&type=chunk) - Product Advantage: Leading domestic product structure, gradually forming a portfolio primarily of **controlled-release, nitro-compound, and water-soluble fertilizers**, supplemented by ordinary compound fertilizers[57](index=57&type=chunk) - Brand Advantage: Owns two 'China Well-known Trademarks', **'Jindadi' and 'Wolft'**, with high brand loyalty and market reputation[57](index=57&type=chunk)[58](index=58&type=chunk) - Marketing Advantage: Established an industry-leading marketing network with **over 3,000 primary dealers and 100,000 secondary dealers**, and pioneered a 'network-leveraged marketing' model in cooperation with China Post and others[59](index=59&type=chunk) [Analysis of Investment Status](index=18&type=section&id=Analysis%20of%20Investment%20Status) In 2014, the company invested CNY 7 million in a new subsidiary and deployed CNY 780 million from a CNY 2.03 billion share issuance into key projects and working capital | Use of Raised Funds | Committed Investment Total (CNY 10,000) | Amount Invested in Current Period (CNY 10,000) | Cumulative Investment Amount (CNY 10,000) | | :--- | :--- | :--- | :--- | | Kingenta Nutri-Tech Chemical Co., Ltd. Project | 123,000 | 51,040.6 | 51,040.6 | | Agricultural Service Center Project | 43,000 | 0 | 0 | | Supplement Working Capital | 36,909.99 | 26,939.64 | 26,939.64 | | **Total** | **202,909.99** | **77,980.24** | **77,980.24** | - The company used **CNY 514 million** of raised funds to replace self-raised funds previously invested in the fundraising projects[75](index=75&type=chunk) [Outlook on Company's Future Development](index=24&type=section&id=Outlook%20on%20Company's%20Future%20Development) The company anticipates industry shifts towards intensification and environmental friendliness, aiming to be a global plant nutrition expert by focusing on intelligent manufacturing, service, cooperation, and internationalization, while managing various market and operational risks - Industry Trends: Agricultural transformation, industry consolidation, popularization of new fertilizers, and integrated agricultural service platforms under 'Internet+' are future development directions[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - Company Vision: To become a **world-leading plant nutrition expert and planting solution provider**, transforming from a production-oriented enterprise to an innovative, service-oriented, platform-based, and international enterprise group[90](index=90&type=chunk) - 2015 Operating Plan: - **Innovation**: Transition from manufacturing to intelligent manufacturing, developing new products like bio-fertilizers and liquid fertilizers - **Service**: Initiate construction of **100 international standard agricultural service centers** and explore new agricultural e-commerce models - **Platform**: Engage in strategic alliances with domestic and international partners, promoting industry-university-research cooperation - **Internationalization**: Introduce international capital, talent and technology, and commence construction of overseas subsidiaries in Israel, Norway, and other countries[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Key Risks: - **Macro Policy Risk**: Preferential policies for the fertilizer industry may be canceled - **Raw Material Price Risk**: Raw material costs account for approximately **80% of production costs** - **Market Operation Risk**: Industry overcapacity and intense competition - **Human Resources Risk**: Rapid development leads to urgent demand for high-end talent[97](index=97&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Significant Events](index=32&type=section&id=Section%20V%20Significant%20Events) This section outlines major corporate actions and their implications during the reporting period [Implementation of Equity Incentive Plan](index=33&type=section&id=Implementation%20and%20Impact%20of%20Company's%20Equity%20Incentive%20Plan) In 2014, the company granted 19.9 million stock options to 235 employees at CNY 19.73, with a 5-year validity and performance targets, incurring an estimated total cost of CNY 199 million amortized over 2014-2018 - The incentive plan proposes to grant **19.9 million stock options** to **235 incentive recipients**, representing **2.82% of the total share capital** at that time[128](index=128&type=chunk)[129](index=129&type=chunk) | Exercise Period | Performance Assessment Targets (vs. 2013) | | :--- | :--- | | First Exercise Period | Net profit growth no less than 28%, operating revenue growth no less than 10% | | Second Exercise Period | Net profit growth no less than 64%, operating revenue growth no less than 21% | | Third Exercise Period | Net profit growth no less than 110%, operating revenue growth no less than 33% | | Fourth Exercise Period | Net profit growth no less than 168%, operating revenue growth no less than 46% | - The total cost of the **19.9 million stock options** granted is estimated at **CNY 198.55 million**, to be amortized from 2014-2018, with the largest amortization amount expected in 2015 at **CNY 99.2761 million**[135](index=135&type=chunk)[136](index=136&type=chunk) [Significant Contracts and Their Performance](index=35&type=section&id=Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no major entrustment, contracting, or leasing matters, but provided CNY 991 million in guarantees for subsidiaries, representing 14.38% of net assets | Item | Amount (CNY 10,000) | | :--- | :--- | | Total Approved Guarantee Limit for Subsidiaries within Reporting Period | 380,000 | | Total Actual Guarantee Balance for Subsidiaries at End of Reporting Period | 99,075.65 | | Ratio of Total Actual Guarantees to Company's Net Assets | 14.38% | [Changes in Shares and Shareholder Information](index=45&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information) This section details changes in the company's share capital and provides information on its shareholders and actual controller [Changes in Share Capital](index=45&type=section&id=Changes%20in%20Share%20Capital) In 2014, the company's total share capital increased from 700 million to 781 million shares due to a non-public issuance, raising restricted shares from 15.35% to 24.17% | Share Class | Quantity Before Change | Increase/Decrease in This Change | Quantity After Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 107,460,000 | +81,422,924 | 188,882,924 | | Unrestricted Shares | 592,540,000 | 0 | 592,540,000 | | **Total Shares** | **700,000,000** | **+81,422,924** | **781,422,924** | - The change in share capital was due to the company completing a non-public issuance of **81,422,924 new shares** on November 24, 2014[163](index=163&type=chunk) [Shareholders and Actual Controller Information](index=47&type=section&id=Shareholders%20and%20Actual%20Controller%20Information) By 2014 year-end, the company had 16,037 common shareholders, with Linyi Kingenta Investment Holding as controlling shareholder (39.25%) and Mr. Wan Lianbu as actual controller (18.34%), and new funds joining top shareholders post-issuance | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Linyi Kingenta Investment Holding Co., Ltd. | Domestic Non-State-Owned Legal Person | 39.25% | 306,720,000 | | Wan Lianbu | Domestic Natural Person | 18.34% | 143,280,000 | | Youngor Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 5.47% | 42,710,000 | - The company's controlling shareholder is **Linyi Kingenta Investment Holding Co., Ltd.**, and the actual controller is **Mr. Wan Lianbu**[173](index=173&type=chunk)[174](index=174&type=chunk) [Preferred Shares Information](index=51&type=section&id=Section%20VII%20Preferred%20Shares%20Information) This section clarifies the company's status regarding preferred shares [Explanation of Preferred Shares](index=51&type=section&id=Explanation%20of%20Preferred%20Shares) The company had no preferred shares during the reporting period - The company had **no preferred shares** during the reporting period[179](index=179&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=52&type=section&id=Section%20VIII%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Employees) This section provides details on the company's governance body and workforce [Changes in Holdings and Remuneration of Directors, Supervisors, and Senior Management](index=52&type=section&id=Changes%20in%20Holdings%20and%20Remuneration%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, shareholdings of directors, supervisors, and senior management remained stable, with re-elections completed in March 2014, and total remuneration for the group reaching CNY 9.9872 million - During the reporting period, except for Chairman **Wan Lianbu** who held **143,280,000 shares**, other directors, supervisors, and senior management held no company shares and had no changes in holdings[181](index=181&type=chunk)[182](index=182&type=chunk) | Name | Position | Total Remuneration Payable from Company (CNY 10,000) | | :--- | :--- | :--- | | Wan Lianbu | Chairman, General Manager | 95.8 | | Zhang Xiaoyi | Director | 62.8 | | Xie Yuhong | Director, Deputy General Manager | 82.8 | | Gao Yiwu | Director, Deputy General Manager | 82.8 | | Chen Hongkun | Director, Deputy General Manager | 62.8 | | **Total** | **--** | **998.72** | [Company Employee Information](index=61&type=section&id=Company%20Employee%20Information) By 2014 year-end, the company and its subsidiaries employed 8,678 staff, predominantly production personnel and those with college degrees or below, with compensation linked to performance and ongoing training initiatives | Professional Category | Number of People | | :--- | :--- | | Production Personnel | 5193 | | Sales Personnel | 1516 | | Technical Personnel | 882 | | Financial Personnel | 127 | | Administrative Personnel | 960 | | **Total** | **8678** | [Corporate Governance](index=64&type=section&id=Section%20IX%20Corporate%20Governance) This section describes the company's corporate governance framework and its adherence to regulatory standards [Basic Status of Corporate Governance](index=64&type=section&id=Basic%20Status%20of%20Corporate%20Governance) During the reporting period, the company consistently improved its corporate governance and internal control systems in compliance with regulations, maintaining full independence from its controlling shareholder across all operational aspects - The actual state of corporate governance complies with the regulatory requirements for listed companies issued by the **China Securities Regulatory Commission (CSRC)** and the **Shenzhen Stock Exchange**[221](index=221&type=chunk) - The company strictly implements the **'Insider Information and Insider Registration Management System'**, with no instances of insiders illegally trading company shares during the reporting period[222](index=222&type=chunk)[223](index=223&type=chunk) - The company and its controlling shareholder are completely separate and independent in terms of business, personnel, assets, organization, and finance, possessing a complete business system and the ability to operate independently in the market[238](index=238&type=chunk)[239](index=239&type=chunk) [Internal Control](index=73&type=section&id=Section%20X%20Internal%20Control) This section details the company's internal control system, its construction, and evaluation [Internal Control Construction and Evaluation](index=73&type=section&id=Internal%20Control%20Construction%20and%20Evaluation) The company has established and effectively implemented an internal control system, with both self-evaluation and external audit confirming no significant deficiencies and effective financial reporting controls - The company's Board of Directors declares that establishing, improving, and effectively implementing internal controls in accordance with the enterprise internal control standards is the **responsibility of the Board**[245](index=245&type=chunk) - The company's internal control evaluation report found **no significant internal control deficiencies** during the reporting period[247](index=247&type=chunk) - The accounting firm issued a **standard unqualified internal control attestation report**, stating that the company maintained effective internal controls over financial reporting in all material respects as of **December 31, 2014**[248](index=248&type=chunk) [Financial Report](index=75&type=section&id=Section%20XI%20Financial%20Report) This section presents the company's audited financial statements and related notes [Audit Report](index=75&type=section&id=Audit%20Report) DaXin Certified Public Accountants issued a standard unqualified audit opinion on the company's 2014 financial statements, confirming fair presentation in accordance with accounting standards - The audit opinion type is a **standard unqualified audit opinion**[251](index=251&type=chunk) - The auditing firm believes that the company's financial statements were prepared in all material respects in accordance with enterprise accounting standards, fairly reflecting the company's financial position, operating results, and cash flows[257](index=257&type=chunk) [Financial Statements](index=76&type=section&id=Financial%20Statements) Financial statements reveal dual growth in assets and profit for 2014, with total assets reaching CNY 11.01 billion and net profit CNY 866 million, driven by share issuance, despite a notable decline in operating cash flow Consolidated Balance Sheet Summary | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 11,011,294,385.47 | 8,699,950,487.40 | | Total Liabilities | 4,021,212,398.91 | 4,549,629,565.29 | | Total Equity Attributable to Parent Company Owners | 6,888,209,747.00 | 4,084,546,528.31 | Consolidated Income Statement Summary | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 13,554,442,174.90 | 11,992,157,368.94 | | Total Profit | 1,050,241,357.62 | 815,239,264.21 | | Net Profit Attributable to Parent Company Owners | 866,391,964.26 | 663,936,001.69 | Consolidated Cash Flow Statement Summary | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 183,247,120.60 | 1,152,475,185.49 | | Net Cash Flow from Investing Activities | -944,483,072.64 | -1,241,035,577.85 | | Net Cash Flow from Financing Activities | 1,639,731,443.83 | 554,686,065.98 | [Notes to Consolidated Financial Statements](index=113&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail key financial items, including a significant increase in monetary funds to CNY 1.645 billion, a rise in prepayments to CNY 2.38 billion, and over CNY 4.2 billion in fixed assets and construction in progress, with share capital and capital reserves boosted by the 2014 issuance - Monetary funds at period-end totaled **CNY 1.645 billion**, including **CNY 1.508 billion** in bank deposits[378](index=378&type=chunk) - Construction in progress at period-end totaled **CNY 1.938 billion**, with major projects including the Guizhou 600,000-ton nitro-compound fertilizer project (**CNY 928 million**) and the Heze 1.2 million-ton nitro-fertilizer project (**CNY 594 million**)[424](index=424&type=chunk)[425](index=425&type=chunk) - Selling expenses increased by **56.2%** year-on-year, primarily due to advertising and promotional expenses rising from **CNY 175 million to CNY 377 million**[511](index=511&type=chunk) - R&D expenses within administrative expenses significantly increased from **CNY 70.95 million to CNY 230 million**[513](index=513&type=chunk) [Catalogue of Documents for Reference](index=166&type=section&id=Section%20XII%20Catalogue%20of%20Documents%20for%20Reference) This section lists all supporting documents available for review [Documents for Reference](index=166&type=section&id=Documents%20for%20Reference) This section lists documents available for reference, including signed financial statements, the original audit report, and all publicly disclosed documents, stored at the Board of Directors' Office - Documents for reference include: - Signed financial statements - Original audit report - Originals of all publicly disclosed documents during the reporting period - Original 2014 annual report signed by the legal representative[617](index=617&type=chunk)

证券代码：002470 证券简称：金正大 公告编号：2015-017 金正大生态工程集团股份有限公司 2015 年第一季度报告正文 1 金正大生态工程集团股份有限公司 2015 年第一季度报告正文 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。 公司负责人万连步、主管会计工作负责人李计国及会计机构负责人(会计主 管人员)李计国声明：保证季度报告中财务报表的真实、准确、完整。 2 金正大生态工程集团股份有限公司 2015 年第一季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 4,179,071,595.24 | 3,087,473,634.57 | 35.36% | | 归属于上市公司股东的净利润 ...

金正大生态工程集团股份有限公司 2014 年第三季度报告正文 证券代码：002470 证券简称：金正大 公告编号：2014-075 金正大生态工程集团股份有限公司 2014 年第三季度报告正文 1 金正大生态工程集团股份有限公司 2014 年第三季度报告正文 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。 公司负责人万连步、主管会计工作负责人李计国及会计机构负责人(会计主管人员)李现秀声明：保证 季度报告中财务报表的真实、准确、完整。 2 金正大生态工程集团股份有限公司 2014 年第三季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等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） | 9,278,638,177.17 | 8,69 ...

Important Notices, Table of Contents, and Definitions [Important Notices](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility; the company does not plan to distribute cash dividends, bonus shares, or capitalize reserves - The company's Board of Directors, Supervisory Committee, and senior management commit to the truthfulness, accuracy, and completeness of the report's content[5](index=5&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or capitalize capital reserves in this semi-annual period[7](index=7&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the report's complete table of contents, covering ten chapters from important notices to the list of documents for inspection, providing navigation for investors [Definitions](index=4&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, organizational structures, various fertilizer products, financial units, and the reporting period - The reporting period is defined as January 1, 2014, to June 30, 2014[12](index=12&type=chunk) - The report details various fertilizer types, including single-element, compound, controlled-release, nitro-compound, and water-soluble fertilizers, highlighting their components and functional characteristics[12](index=12&type=chunk) Company Profile [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Kingenta Ecological Engineering Group Co, Ltd, stock ticker "Kingenta" (002470), is listed on the Shenzhen Stock Exchange, with Wan Lianbu as the legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | Kingenta | | Stock Code | 002470 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 金正大生态工程集团股份有限公司 | | Legal Representative | Wan Lianbu | [Contacts and Contact Information](index=6&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) The company provides detailed contact information for Board Secretary Cui Bin and Securities Affairs Representative Yang Chunju, facilitating investor communication Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Cui Bin | 19 Xingda West Street, Linshu County, Shandong Province | 0539-7198691 | 0539-6088691 | jzd@kingenta.com | | Securities Affairs Representative | Yang Chunju | 19 Xingda West Street, Linshu County, Shandong Province | 0539-7198691 | 0539-6088691 | yangchunju@kingenta.com | [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, the company's contact information and disclosure locations remained unchanged, but the company name was changed to "Kingenta Ecological Engineering Group Co, Ltd" on January 26, 2014 - The company's registered address, office address, website, email, and information disclosure media remained unchanged during the reporting period[17](index=17&type=chunk)[18](index=18&type=chunk) - The company name was changed from "Shandong Kingenta Ecological Engineering Co, Ltd" to "**Kingenta Ecological Engineering Group Co, Ltd**" on January 26, 2014, and the business registration was updated[19](index=19&type=chunk) Summary of Accounting Data and Financial Indicators [Key Accounting Data and Financial Indicators](index=8&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) In H1 2014, operating revenue grew by 6.90% YoY, net profit attributable to shareholders increased by 27.42% YoY, and basic EPS rose by 25.93%, but net cash flow from operating activities decreased by 34.51% YoY Key Accounting Data and Financial Indicators for H1 2014 | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,046,931,917.42 | 6,592,041,016.19 | 6.90% | | Net Profit Attributable to Shareholders of the Listed Company | 479,257,825.45 | 376,112,287.66 | 27.42% | | Net Profit Attributable to Shareholders of the Listed Company after Deducting Non-recurring Items | 476,209,889.41 | 375,290,819.36 | 26.89% | | Net Cash Flow from Operating Activities | 398,800,665.37 | 608,988,085.00 | -34.51% | | Basic Earnings Per Share (Yuan/Share) | 0.68 | 0.54 | 25.93% | | Diluted Earnings Per Share (Yuan/Share) | 0.68 | 0.54 | 25.93% | | Weighted Average Return on Equity | 11.22% | 10.27% | 0.95% | | **Period-End Indicators** | **End of Current Reporting Period (Yuan)** | **End of Previous Year (Yuan)** | **Change from Previous Year-End** | | Total Assets | 8,384,063,307.55 | 8,699,950,487.40 | -3.63% | | Net Assets Attributable to Shareholders of the Listed Company | 4,458,804,353.76 | 4,084,546,528.31 | 9.16% | [Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=8&type=section&id=%E4%BA%8C%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) There were no discrepancies in net profit or net assets between financial reports prepared under international or foreign accounting standards and those under Chinese accounting standards during the reporting period - There were **no differences** in accounting data under domestic and foreign accounting standards during the reporting period[23](index=23&type=chunk)[24](index=24&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E4%B8%89%E3%80%81%E9%9D%9E%E7%BB%8F%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) The company's total non-recurring profit and loss for H1 2014 was 3,047,936.04 yuan, primarily from government subsidies, other non-operating income, and gains on disposal of non-current assets Non-recurring Profit and Loss Items and Amounts for H1 2014 | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 437.73 | | Government Subsidies Included in Current Profit or Loss | 2,585,620.00 | | Other Non-operating Income and Expenses | 1,104,920.05 | | Less: Income Tax Effect | 81,570.05 | | Minority Interest Effect (After Tax) | 561,471.69 | | Total | 3,047,936.04 | Board of Directors' Report [Overview](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In H1 2014, despite a sluggish compound fertilizer market and intensified competition, Kingenta achieved sustained, rapid, and healthy development with steady performance growth by focusing on the Board's operational goals - The compound fertilizer market was sluggish in H1 2014, with declining prices and intensified competition[30](index=30&type=chunk) - The company achieved **steady performance growth** against the market trend, successfully meeting its semi-annual operational targets[30](index=30&type=chunk) [Analysis of Core Business](index=10&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) Amid a sluggish market, the company achieved a 6.90% increase in operating revenue and a 27.42% increase in net profit attributable to the parent company through its "Technology-led, Service-first" strategy and innovative marketing models - The company implemented a "Technology-led, Service-first" strategy, enhanced international cooperation, and accelerated project construction[31](index=31&type=chunk) Year-over-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 7,046,931,917.42 | 6,592,041,016.19 | 6.90% | Marketing and service models drove sales volume growth, but market prices impacted revenue growth rate | | Net Profit Attributable to Shareholders of the Listed Company | 479,257,825.45 | 376,112,287.66 | 27.42% | | | Selling Expenses | 357,496,546.54 | 246,933,370.84 | 44.77% | Increased investment in advertising and promotion | | Income Tax Expense | 100,245,237.41 | 75,683,151.07 | 32.45% | Increase in taxable income | | Net Cash Flow from Operating Activities | 398,800,665.37 | 608,988,085.00 | -34.51% | Decrease in cash received from sales of goods and services | | Net Cash Flow from Financing Activities | 261,611,519.71 | -10,211,124.72 | -2,662.02% | Increase in long-term borrowings | - The company advanced its marketing through brand promotion, channel development, and consultant-based marketing, achieving **rapid growth in controlled-release and nitro fertilizers** and initial success in promoting fertilizer packages and water-soluble fertilizers[35](index=35&type=chunk) - Significant technological innovations were achieved, with **18 new patents granted**, and collaborations with international agricultural companies like AkzoNobel (Norway) and Abraham Livnat Ltd (Israel) enhanced technical capabilities and global competitiveness[36](index=36&type=chunk) - Project construction progressed, with the **600,000 tons/year nitro-compound fertilizer project** in the Guizhou base completed and operational[36](index=36&type=chunk) - The company upgraded its operational management by improving its governance structure, internal control system, business processes, and performance evaluation mechanisms[37](index=37&type=chunk) [Core Business Composition](index=12&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%9E%84%E6%88%90%E6%83%85%E5%86%B5) The company's core business is in the fertilizer industry, with controlled-release and conventional compound fertilizers as the main revenue sources; operating revenue grew significantly in the central and northern regions but slightly declined in the eastern region Core Business Composition (by Product) | Product | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Conventional Compound Fertilizer | 2,433,011,549.00 | 2,027,519,599.96 | 16.67% | 6.53% | | Controlled-Release Compound Fertilizer | 2,973,994,913.07 | 2,350,723,474.65 | 20.96% | 12.68% | | Nitro-Compound Fertilizer | 745,455,080.75 | 547,431,537.04 | 26.56% | 7.52% | | Raw Material Fertilizers, etc | 879,429,190.26 | 867,737,657.47 | 1.33% | -8.48% | Core Business Composition (by Region) | Region | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Eastern Region | 3,132,349,497.19 | 2,638,531,869.78 | 15.77% | -7.24% | | Central Region | 1,267,554,160.99 | 1,023,848,839.28 | 19.23% | 51.51% | | Northern Region | 1,574,835,344.13 | 1,252,603,669.17 | 20.46% | 12.34% | | Other Regions | 1,057,151,730.77 | 878,427,890.89 | 16.91% | 9.86% | [Core Competitiveness Analysis](index=12&type=section&id=%E5%9B%9B%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 competitiveness lies in its leading product structure, national-level R&D platforms, strong brand recognition, and an industry-leading agricultural service system - The company has a **leading domestic product structure**, focusing on slow/controlled-release, nitro-compound, and water-soluble fertilizers, with over 100 specialized products across 12 categories[39](index=39&type=chunk) - The company possesses high-end R&D platforms like the National Engineering Research Center for Controlled-Release Fertilizers, a strong R&D team, **177 invention patents** as of June 30, 2014, and collaborations with over 40 research institutions[40](index=40&type=chunk) - The "Jindadi" and "Wolf" trademarks are recognized as "**China Well-Known Trademarks**," and the company has received numerous accolades, establishing a significant brand advantage[41](index=41&type=chunk) - The company has established a comprehensive agricultural service system and a professional marketing team of over **1,400 personnel**, laying a solid foundation for product promotion and channel penetration[41](index=41&type=chunk)[42](index=42&type=chunk) [Investment Status Analysis](index=13&type=section&id=%E4%BA%94%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, external equity investments increased by 27.31% YoY, primarily in subsidiaries engaged in fertilizer raw material trading, compound fertilizer production, and agricultural technology services, while the Guizhou project using non-raised funds progressed smoothly External Investment Status | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Same Period Last Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | External Investment Amount | 251,870,000.00 | 197,843,700.00 | 27.31% | - The company held **no equity in financial enterprises** and had no securities investments, entrusted wealth management, derivatives investments, or entrusted loans during the reporting period[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) Summary of Key Subsidiaries' Operating Performance | Company Name | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | | Heze Kingenta Ecological Engineering Co, Ltd | 1,925,872,560.04 | 181,425,893.87 | | Kingenta Nobel Chemical Co, Ltd | 252,706,887.55 | -30,018,160.14 | | Henan Yuyou Jindadi Technology Service Co, Ltd | 217,043,860.66 | 20,582,745.66 | | Liaoning Kingenta Ecological Engineering Co, Ltd | 347,024,200.34 | 29,079,281.36 | Status of Major Projects Using Non-raised Funds | Project Name | Total Planned Investment (10,000 Yuan) | Amount Invested in Reporting Period (10,000 Yuan) | Cumulative Actual Investment as of Period-End (10,000 Yuan) | Project Progress | | :--- | :--- | :--- | :--- | :--- | | Guizhou 600,000 tons/year Nitro-Compound Fertilizer and 400,000 tons/year Water-Soluble Fertilizer Project | 323,727.09 | 47,830.64 | 181,873.14 | 56.18% | [Forecast of Operating Performance for the First Three Quarters of 2014](index=18&type=section&id=%E5%85%AD%E3%80%81%E5%AF%B9%202014%20%E5%B9%B4%201-9%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company forecasts a 20.00% to 30.00% YoY increase in net profit attributable to shareholders for the first three quarters of 2014, driven by its "Technology-led, Service-first" strategy and steady sales growth Forecast of Operating Performance for Q1-Q3 2014 | Indicator | Change Range/Amount | | :--- | :--- | | Change in Net Profit Attributable to Shareholders | 20.00% to 30.00% | | Range of Net Profit Attributable to Shareholders (10,000 Yuan) | 74,866.93 to 81,105.84 | | Net Profit Attributable to Shareholders for Q1-Q3 2013 (10,000 Yuan) | 62,389.11 | | Reason for Performance Change | The company continues to implement its "Technology-led, Service-first" strategy, enhance international cooperation, accelerate project construction, and achieve steady sales growth in conventional, controlled-release, and nitro-compound fertilizers | [Explanation from the Board of Directors and Supervisory Committee on the "Non-standard Audit Report" for the Reporting Period](index=18&type=section&id=%E4%B8%83%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%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%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The Board of Directors and Supervisory Committee state that no "non-standard audit report" was issued by the accounting firm for the current reporting period - There was **no "non-standard audit report"** for the reporting period[59](index=59&type=chunk) [Explanation from the Board of Directors on the "Non-standard Audit Report" of the Previous Year](index=18&type=section&id=%E5%85%AB%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The Board of Directors states that no "non-standard audit report" was issued by the accounting firm for the previous year - There was **no "non-standard audit report"** for the previous year[59](index=59&type=chunk) [Implementation of Profit Distribution during the Reporting Period](index=18&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company completed its 2013 profit distribution plan in June 2014, distributing a total cash dividend of 105 million yuan, with a compliant and transparent decision-making process - The company completed its 2013 profit distribution in June 2014, paying a cash dividend of **1.50 yuan (tax inclusive) per 10 shares**, totaling 105 million yuan[60](index=60&type=chunk) - The profit distribution plan was executed in strict accordance with the Articles of Association and shareholder resolutions, ensuring a compliant and transparent process that protected the interests of minority investors[60](index=60&type=chunk)[61](index=61&type=chunk) [Proposal for Profit Distribution or Capitalization of Capital Reserve for the Reporting Period](index=19&type=section&id=%E5%8D%81%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%E6%88%96%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%E9%A2%84%E6%A1%88) The company does not plan to distribute cash dividends, issue bonus shares, or capitalize capital reserves in this semi-annual period - The company plans **no cash dividend distribution**, bonus share issuance, or capitalization of capital reserves for the semi-annual period[62](index=62&type=chunk) [Record of Investor Relations Activities during the Reporting Period](index=19&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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%E7%99%BB%E8%AE%B0%E8%A1%A8) The company hosted on-site research visits from China Cinda Securities and Great Wall Securities, discussing market prospects, promotional strategies, and future growth plans - On January 19, 2014, the company hosted on-site research from China Cinda Securities and Great Wall Securities to discuss the market prospects for nitro and water-soluble fertilizers, promotional measures, the purpose of cooperation with Shanxi Jincheng Anthracite Mining Group, and the company's future plans[63](index=63&type=chunk) Significant Matters [Corporate Governance](index=20&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%83%85%E5%86%B5) During the reporting period, the company strictly complied with relevant laws, continuously improved its corporate governance and internal control systems, and its governance practices met regulatory requirements - The company strictly adhered to laws such as the Company Law and Securities Law, continuously improving its corporate governance structure and operational standards[66](index=66&type=chunk) - The company revised its Articles of Association and Profit Distribution Management System, and formulated the "Shareholder Return Plan for the Next Three Years (2014-2016)"[66](index=66&type=chunk) - As of the end of the reporting period, the company's actual governance practices **complied with regulatory requirements**, and no administrative regulatory measures were received[66](index=66&type=chunk) [Major Litigation and Arbitration](index=20&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no major litigation or arbitration matters during the reporting period - The company had **no major litigation or arbitration matters** during the reporting period[67](index=67&type=chunk) [Media Questioning](index=20&type=section&id=%E4%B8%89%E3%80%81%E5%AA%92%E4%BD%93%E8%B4%A8%E7%96%91%E6%83%85%E5%86%B5) The company was not subject to widespread media questioning during the reporting period - The company was **not subject to widespread media questioning** during the reporting period[68](index=68&type=chunk) [Bankruptcy and Reorganization](index=20&type=section&id=%E5%9B%9B%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 undergo any bankruptcy or reorganization matters during the reporting period - The company did **not undergo any bankruptcy or reorganization** matters during the reporting period[69](index=69&type=chunk) [Asset Transactions](index=20&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E4%BA%A4%E6%98%93%E4%BA%8B%E9%A1%B9) During the reporting period, the company sold a 38% stake in Yunnan Zhongzheng Chemical Industry Co, Ltd for 25.76 million yuan but did not acquire any assets or undergo any business combinations - The company did **not acquire any assets** during the reporting period[70](index=70&type=chunk) Asset Disposal Details | Asset Sold | Date of Sale | Transaction Price (10,000 Yuan) | Net Profit Contribution from Asset (Yuan) | Percentage of Total Net Profit | | :--- | :--- | :--- | :--- | :--- | | 38% stake in Yunnan Zhongzheng Chemical Industry Co, Ltd | 2014-07-08 | 2,576.43 | -5,761,300 | -1.20% | - The company did **not undergo any business combinations** during the reporting period[73](index=73&type=chunk) [Implementation and Impact of Equity Incentive Plan](index=21&type=section&id=%E5%85%AD%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company's "Stock Option Incentive Plan (Draft)" was approved on May 12, 2014, and received a no-objection notice for filing from the CSRC on July 26, marking the official advancement of the plan - The company's "Stock Option Incentive Plan (Draft)" was approved on May 12, 2014, and received a **no-objection notice for filing from the CSRC** on July 26[74](index=74&type=chunk) [Major Related-Party Transactions](index=22&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no major related-party transactions related to daily operations, asset acquisitions/disposals, joint investments, or related-party debts during the reporting period - The company had **no related-party transactions** related to daily operations[75](index=75&type=chunk) - The company had **no related-party transactions** involving asset acquisitions or disposals[76](index=76&type=chunk) - The company had **no related-party transactions** involving joint external investments[77](index=77&type=chunk) - The company had **no related-party credit or debt** transactions[78](index=78&type=chunk) - The company had **no other major related-party transactions**[79](index=79&type=chunk) [Major Contracts and Their Performance](index=22&type=section&id=%E5%85%AB%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 custody, contracting, or leasing matters but provided guarantees for subsidiaries totaling 1.196 billion yuan, representing 26.81% of its net assets - The company had **no custody, contracting, or leasing arrangements** during the reporting period[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Guarantees Provided to Subsidiaries | Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Period | Is Fulfilled | Is Related-Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Heze Kingenta Ecological Engineering Co, Ltd | 160,000 | 22,581.81 | 2013-4-17 to 2019-11-30 | No | Yes | | Kingenta Nobel Chemical Co, Ltd | 180,000 | 86,625 | 2013-6-18 to 2019-5-27 | No | Yes | | Kingenta Nobel Chemical Co, Ltd | 20,000 | 346.13 | 2013-5-26 to 2015-5-26 | No | Yes | | Shandong Jindadi Fertilizer Co, Ltd | 10,000 | 9,999.95 | 2013-5-17 to 2014-8-17 | No | Yes | | Total actual guarantee balance for subsidiaries at period-end | 665,000 | 119,552.89 | | | | | Ratio of total actual guarantees to company's net assets | | 26.81% | | | | | Including: Guarantees for parties with asset-liability ratio over 70% | | 86,971.13 | | | | - The company had **no other major contracts or transactions** during the reporting period[86](index=86&type=chunk)[87](index=87&type=chunk) [Commitments by the Company or Shareholders with over 5% Stake](index=24&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%88%96%E6%8C%81%E8%82%A1%205%25%E4%BB%A5%E4%B8%8A%E8%82%A1%E4%B8%9C%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E6%88%96%E4%BB%A5%E5%89%8D%E6%9C%9F%E9%97%B4%E5%8F%91%E7%94%9F%E4%BD%86%E6%8C%81%E7%BB%AD%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The controlling shareholder and actual controller have committed to avoiding competition with the company and have strictly adhered to this commitment - The company's controlling shareholder and actual controller have committed **not to engage in any business or activities that compete** or may compete with the company[88](index=88&type=chunk) - The commitments have been **strictly fulfilled** as agreed[88](index=88&type=chunk)[89](index=89&type=chunk) [Appointment and Dismissal of Accounting Firm](index=25&type=section&id=%E5%8D%81%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%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual financial report was **unaudited**[90](index=90&type=chunk) [Penalties and Rectifications](index=25&type=section&id=%E5%8D%81%E4%B8%80%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 was not subject to any penalties or rectifications during the reporting period - The company was **not subject to any penalties or rectifications** during the reporting period[90](index=90&type=chunk) [Other Significant Matters](index=25&type=section&id=%E5%8D%81%E4%BA%8C%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) This section lists various significant matters disclosed during the reporting period, including board elections, shareholder resolutions, company name change, and cooperation agreements, all publicly disclosed on designated media - The company disclosed several significant matters during the reporting period, including board and supervisory committee elections, shareholder resolutions, company name change, and subsidiary registration updates[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The company signed cooperation agreements with Norway's AkzoNobel and Israel's Abraham Livnat Ltd[92](index=92&type=chunk)[93](index=93&type=chunk) - The company's stock option incentive plan (draft) was approved and filed[93](index=93&type=chunk) Changes in Share Capital and Shareholder Information [Changes in Share Capital](index=28&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) During the reporting period, the company's total number of shares and share capital structure remained unchanged Changes in Share Capital | Share Type | Quantity Before Change (Shares) | Proportion Before Change | Change (+, -) | Quantity After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 107,460,000 | 15.35% | 0 | 107,460,000 | 15.35% | | 1. Other Domestic Holdings | 107,460,000 | 15.35% | 0 | 107,460,000 | 15.35% | | II. Unrestricted Shares | 592,540,000 | 84.65% | 0 | 592,540,000 | 84.65% | | 1. RMB Ordinary Shares | 592,540,000 | 84.65% | 0 | 592,540,000 | 84.65% | | III. Total Shares | 700,000,000 | 100.00% | 0 | 700,000,000 | 100.00% | - The company's total share count and shareholder structure **remained unchanged** during the reporting period[97](index=97&type=chunk) [Number and Holdings of Shareholders](index=28&type=section&id=%E4%BA%8C%E3%80%81%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 period-end, the company had 20,262 ordinary shareholders, with the controlling shareholder holding 43.82% and the actual controller holding 20.47%, part of which was pledged - The total number of ordinary shareholders was **20,262** at the end of the reporting period[99](index=99&type=chunk) Shareholdings of Shareholders with over 5% Stake or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Linyi Kingenta Investment Holding Co, Ltd | Domestic Non-State-Owned Legal Entity | 43.82% | 306,720,000 | 0 | 306,720,000 | None | | Wan Lianbu | Domestic Natural Person | 20.47% | 143,280,000 | 107,460,000 | 35,820,000 | Pledged 22,500,000 shares | | Youngor Investment Co, Ltd | Domestic Non-State-Owned Legal Entity | 6.10% | 42,710,000 | 0 | 42,710,000 | None | | ICBC - GF Large-Cap Growth Mixed Securities Investment Fund | Other | 2.15% | 15,028,635 | 0 | 15,028,635 | None | | Bosera Value Growth Securities Investment Fund | Other | 1.48% | 10,365,536 | 0 | 10,365,536 | None | | ICBC - GF Strategy Select Mixed Securities Investment Fund | Other | 0.80% | 5,596,641 | 0 | 5,596,641 | None | | CCB - Huaxia Prosperous World Select Equity Securities Investment Fund | Other | 0.72% | 5,029,186 | 0 | 5,029,186 | None | | ABC - Penghua Dynamic Growth Mixed Securities Investment Fund (LOF) | Other | 0.72% | 5,010,445 | 0 | 5,010,445 | None | | National Social Security Fund Portfolio 102 | Other | 0.71% | 4,999,045 | 0 | 4,999,045 | None | | Bank of Communications - Hua An Strategy Select Equity Securities Investment Fund | Other | 0.70% | 4,923,546 | 0 | 4,923,546 | None | - The actual controller, Mr Wan Lianbu, is the major shareholder of the controlling shareholder, Linyi Kingenta Investment Holding Co, Ltd, indicating a potential related-party and concert party relationship[100](index=100&type=chunk)[101](index=101&type=chunk) - As of July 3, 2014, Mr Wan Lianbu had cumulatively pledged **30 million shares**, representing 4.29% of the company's total share capital[101](index=101&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=30&type=section&id=%E4%B8%89%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller did not change during the reporting period - The company's controlling shareholder **did not change** during the reporting period[102](index=102&type=chunk) - The company's actual controller **did not change** during the reporting period[102](index=102&type=chunk) Information on Preferred Shares [Issuance and Listing of Preferred Shares during the Reporting Period](index=31&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%BC%98%E5%85%88%E8%82%A1%E7%9A%84%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 or list any preferred shares during the reporting period - The company did **not issue or list any preferred shares** during the reporting period[104](index=104&type=chunk) [Number and Holdings of Preferred Shareholders](index=31&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E4%BC%98%E5%85%88%E8%82%A1%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) The company had no preferred shareholders or related holdings during the reporting period - The company had **no preferred shareholders** or related holdings during the reporting period[104](index=104&type=chunk) [Repurchase or Conversion of Preferred Shares](index=31&type=section&id=%E4%B8%89%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E5%9B%9E%E8%B4%AD%E6%88%96%E8%BD%AC%E6%8D%A2%E6%83%85%E5%86%B5) The company did not repurchase or convert any preferred shares during the reporting period - The company did **not repurchase any preferred shares** during the reporting period[104](index=104&type=chunk) - The company did **not convert any preferred shares** during the reporting period[104](index=104&type=chunk) [Restoration and Exercise of Voting Rights of Preferred Shares](index=31&type=section&id=%E5%9B%9B%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E8%A1%A8%E5%86%B3%E6%9D%83%E7%9A%84%E6%81%A2%E5%A4%8D%E3%80%81%E8%A1%8C%E4%BD%BF%E6%83%85%E5%86%B5) There were no instances of restoration or exercise of voting rights for preferred shares during the reporting period - There were **no instances of restoration or exercise of voting rights** for preferred shares during the reporting period[104](index=104&type=chunk) [Accounting Policies for Preferred Shares and Rationale](index=31&type=section&id=%E4%BA%94%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E6%89%80%E9%87%87%E5%8F%96%E7%9A%84%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E7%90%86%E7%94%B1) The company had no accounting policies related to preferred shares during the reporting period - The company had **no accounting policies related to preferred shares** during the reporting period[104](index=104&type=chunk) Information on Directors, Supervisors, and Senior Management [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=32&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 did not change during the reporting period - The shareholdings of the company's directors, supervisors, and senior management **did not change** during the reporting period[105](index=105&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=32&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's Board of Directors and Supervisory Committee underwent re-election, resulting in several departures and new appointments, including the appointment of a new Deputy General Manager - Yu Changchun, Bai Youlu, Zhang Qiusheng, and Xiu Xuefeng resigned as independent directors upon the expiration of the second term of the Board of Directors[106](index=106&type=chunk) - Li Guangtao and Hao Ailing resigned as supervisors upon the expiration of the second term of the Supervisory Committee[106](index=106&type=chunk) - Li Xianxiu resigned as Deputy General Manager following the re-appointment of senior management by the third term of the Board of Directors[106](index=106&type=chunk) - Zhu Zuqiang, Li Zhijian, Lv Xiaofeng, and Shang Zhaocong were elected as independent directors; Li Xinzhu and Zhao Yufang were elected as supervisors; and Zheng Shulin was appointed as Deputy General Manager[106](index=106&type=chunk) Financial Report [Audit Report](index=33&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was **unaudited**[109](index=109&type=chunk) [Financial Statements](index=33&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the consolidated and parent company financial statements for H1 2014, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity [Consolidated Balance Sheet](index=33&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 June 30, 2014, consolidated total assets were 8.38 billion yuan, a 3.63% decrease from the beginning of the year, while net assets attributable to shareholders grew by 9.16% to 4.46 billion yuan Key Data from Consolidated Balance Sheet | Item | Period-End Balance (Yuan) | Beginning Balance (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 8,384,063,307.55 | 8,699,950,487.40 | -3.63% | | Total Equity Attributable to Parent Company Owners | 4,458,804,353.76 | 4,084,546,528.31 | 9.16% | | Total Current Assets | 3,621,983,158.03 | 4,445,187,059.79 | -18.52% | | Total Non-current Assets | 4,762,080,149.52 | 4,254,763,427.61 | 11.92% | | Total Liabilities | 3,849,760,051.05 | 4,549,629,565.29 | -15.38% | [Parent Company Balance Sheet](index=36&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2014, the parent company's total assets were 6.41 billion yuan, a 2.89% decrease from the beginning of the year, while total owners' equity increased by 3.97% to 3.57 billion yuan Key Data from Parent Company Balance Sheet | Item | Period-End Balance (Yuan) | Beginning Balance (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 6,413,705,060.23 | 6,605,310,411.10 | -2.89% | | Total Owners' Equity | 3,574,338,795.00 | 3,438,008,062.99 | 3.97% | | Total Current Assets | 2,135,498,060.52 | 2,506,044,119.06 | -14.8% | | Total Non-current Assets | 4,278,206,999.71 | 4,099,266,292.04 | 4.37% | | Total Liabilities | 2,839,366,265.23 | 3,167,302,348.11 | -10.35% | [Consolidated Income Statement](index=38&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2014, the company achieved total operating revenue of 7.05 billion yuan, a 6.90% YoY increase, and net profit attributable to parent company owners of 479 million yuan, a 27.42% YoY increase Key Data from Consolidated Income Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 7,046,931,917.42 | 6,592,041,016.19 | 6.90% | | Operating Profit | 582,536,594.02 | 452,270,633.55 | 28.81% | | Total Profit | 586,227,571.80 | 453,407,788.67 | 29.29% | | Net Profit | 485,982,334.39 | 377,724,637.60 | 28.65% | | Net Profit Attributable to Parent Company Owners | 479,257,825.45 | 376,112,287.66 | 27.42% | | Basic Earnings Per Share | 0.68 | 0.54 | 25.93% | [Parent Company Income Statement](index=39&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2014, the parent company achieved operating revenue of 3.76 billion yuan and net profit of 241 million yuan, with a slight increase in revenue but a decrease in net profit compared to the prior period Key Data from Parent Company Income Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 3,764,177,498.49 | 3,569,588,510.95 | | Operating Profit | 275,334,051.56 | 346,592,748.81 | | Total Profit | 278,102,060.28 | 346,993,525.52 | | Net Profit | 241,330,732.01 | 309,948,718.06 | | Basic Earnings Per Share | 0.34 | 0.44 | [Consolidated Cash Flow Statement](index=40&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) In H1 2014, net cash flow from operating activities was 399 million yuan, a 34.51% YoY decrease, while net cash flow from financing activities increased significantly to 262 million yuan Key Data from Consolidated Cash Flow Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 398,800,665.37 | 608,988,085.00 | -34.51% | | Net Cash Flow from Investing Activities | -600,708,194.93 | -699,874,938.97 | 14.17% | | Net Cash Flow from Financing Activities | 261,611,519.71 | -10,211,124.72 | -2662.02% | | Net Increase in Cash and Cash Equivalents | 59,703,990.15 | -101,097,978.69 | -159.06% | [Parent Company Cash Flow Statement](index=42&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2014, the parent company's net cash flow from operating activities was 278 million yuan, a 46.17% YoY increase, while net cash and cash equivalents decreased by 34 million yuan Key Data from Parent Company Cash Flow Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 278,194,025.75 | 190,327,063.67 | | Net Cash Flow from Investing Activities | -240,629,387.42 | -240,941,181.00 | | Net Cash Flow from Financing Activities | -71,207,725.85 | -130,201,653.02 | | Net Increase in Cash and Cash Equivalents | -33,643,087.52 | -180,815,770.35 | [Consolidated Statement of Changes in Owners' Equity](index=44&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2014, consolidated total owners' equity was 4.53 billion yuan, a 9.25% increase from the beginning of the year, reflecting a net profit of 486 million yuan and a dividend distribution of 105 million yuan Changes in Consolidated Owners' Equity | Item | Beginning Balance (Yuan) | Change in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 4,150,320,922.11 | 383,982,334.39 | 4,534,303,256.50 | | Total Equity Attributable to Parent Company Owners | 4,084,546,528.31 | 374,257,825.45 | 4,458,804,353.76 | | Minority Interest | 65,774,393.80 | 9,724,508.94 | 75,498,902.74 | | Net Profit | 1,881,288,627.10 (Retained Earnings) | 479,257,825.45 (Current Period Net Profit) | 2,255,546,452.55 (Retained Earnings) | | Profit Distribution | | -105,000,000.00 | | [Parent Company Statement of Changes in Owners' Equity](index=47&type=section&id=8%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2014, the parent company's total owners' equity was 3.57 billion yuan, a 3.97% increase from the beginning of the year, after recording a net profit of 241 million yuan and distributing a dividend of 105 million yuan Changes in Parent Company Owners' Equity | Item | Beginning Balance (Yuan) | Change in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 3,438,008,062.99 | 136,330,732.01 | 3,574,338,795.00 | | Net Profit | 1,232,481,003.11 (Retained Earnings) | 241,330,732.01 (Current Period Net Profit) | 1,368,811,735.12 (Retained Earnings) | | Profit Distribution | | -105,000,000.00 | | [Company Basic Information](index=49&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Kingenta Ecological Engineering Group Co, Ltd was established in 2007, listed on the Shenzhen Stock Exchange in 2010, and its core business is the manufacturing and sale of various fertilizers - The company was established on October 18, 2007, through the overall transformation of Shandong Kingenta Ecological Engineering Co, Ltd into a foreign-invested joint-stock company[142](index=142&type=chunk) - The company's shares were listed on the Shenzhen Stock Exchange on September 8, 2010, with the stock code 002470 and a registered capital of 700 million yuan[142](index=142&type=chunk) - The company name was changed to "Kingenta Ecological Engineering Group Co, Ltd" on January 26, 2014[143](index=143&type=chunk) - The company's core business is fertilizer manufacturing, with a business scope covering the production and sale of various fertilizers and related technical consulting services[143](index=143&type=chunk)[144](index=144&type=chunk) [Key Accounting Policies, Estimates, and Prior Period Errors](index=50&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%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%E5%89%8D%E6%9C%9F%E5%B7%AE%E9%94%99) This section details the company's accounting policies and estimates, which remained unchanged during the reporting period, with no prior period errors reported - The company's financial statements are prepared on a going concern basis in accordance with the "Enterprise Accounting Standards"[144](index=144&type=chunk)[145](index=145&type=chunk) - The company details its accounting methods for business combinations under common and non-common control, as well as policies for step-by-step disposal of equity leading to loss of control[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The company uses a combination of specific identification for individually significant amounts and portfolio-based methods (related-party, petty cash, aging analysis) for bad debt provision on receivables[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - Fixed assets are depreciated using the straight-line method over their estimated useful lives: 10-30 years for buildings, 10 years for machinery, 5 years for electronic equipment, 6-8 years for vehicles, and 5 years for other equipment[186](index=186&type=chunk)[187](index=187&type=chunk) - Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred, the amount of revenue can be measured reliably, it is probable that the economic benefits will flow to the entity, and the costs incurred can be measured reliably[207](index=207&type=chunk) - There were **no changes** in major accounting policies or estimates, and no material prior period error corrections during the reporting period[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) [Taxes](index=64&type=section&id=%E4%BA%94%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, business tax, and corporate income tax, with certain fertilizer products being VAT-exempt and the company enjoying a preferential 15% corporate income tax rate as a high-tech enterprise Company's Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Net of current period output tax and deductible input tax / Sales amount | 17%, 3% | | Business Tax | Rental or service income | 5% | | Urban Maintenance and Construction Tax | Payable turnover tax amount | 7%, 5% | | Corporate Income Tax | Taxable income | 15%, 25% | | Education Surcharge | Payable turnover tax amount | 3% | | Local Education Surcharge | Payable turnover tax amount | 2% | - The company and its subsidiaries enjoy a **VAT exemption** on the production and sale of compound, controlled-release, and nitro-compound fertilizers[221](index=221&type=chunk)[222](index=222&type=chunk) - The company and its subsidiary, Heze Kingenta Ecological Engineering Co, Ltd, are recognized as high-tech enterprises and are subject to a preferential **corporate income tax rate of 15%**[223](index=223&type=chunk) [Business Combinations and Consolidated Financial Statements](index=65&type=section&id=%E5%85%AD%E3%80%81%E4%BC%81%E4%B8%9A%E5%90%88%E5%B9%B6%E5%8F%8A%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The company includes subsidiaries over which it has effective control in its consolidation scope; during the reporting period, two new entities were added to the consolidation, and one was deregistered - The company includes subsidiaries and special purpose entities over which it has effective control in its consolidated financial statements, prepared in accordance with "CAS 33 - Consolidated Financial Statements"[224](index=224&type=chunk)[225](index=225&type=chunk) - During the reporting period, **two new entities were consolidated**: Linyi Bonong Agricultural Materials Sales Co, Ltd (70% owned) and Kingenta (Hong Kong) Investment Co, Ltd (wholly-owned)[236](index=236&type=chunk)[237](index=237&type=chunk) - Henan Xincaixin Compound Fertilizer Co, Ltd was deregistered on June 30, 2014, and is no longer included in the consolidation scope[232](index=232&type=chunk) [Notes to Key Items in the Consolidated Financial Statements](index=74&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the consolidated financial statements, highlighting significant changes in other receivables, construction in progress, inventory, and advances from customers Changes in Key Items of the Consolidated Balance Sheet | Item | Period-End Balance (Yuan) | Beginning Balance (Yuan) | Change % | Note | | :--- | :--- | :--- | :--- | :--- | | Other Receivables | 83,354,321.11 | 44,251,295.32 | 88.37% | Increase in management petty cash | | Inventory | 1,236,545,036.05 | 2,243,230,140.39 | -44.88% | Decrease in raw materials and finished goods | | Construction in Progress | 2,202,979,056.52 | 1,608,208,839.80 | 36.98% | Project construction by the company and its subsidiaries | | Short-term Borrowings | 60,000,000.00 | 0 | 100% | To supplement working capital | | Advances from Customers | 334,291,161.57 | 1,283,129,044.23 | -73.95% | Dealers adopted a wait-and-see approach due to raw material price fluctuations | | Taxes Payable | -94,807,495.33 | -36,248,281.97 | 161.55% | Prepayment of corporate income tax | | Interest Payable | 22,022,936.68 | 16,934,247.45 | 30.05% | Accrued interest on medium-term notes | Changes in Key Items of the Consolidated Income Statement | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change % | Note | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 7,046,931,917.42 | 6,592,041,016.19 | 6.90% | Sales growth driven by marketing and service models | | Business Taxes and Surcharges | 91,776.89 | 420,493.57 | -78.17% | Decrease in export tariffs | | Selling Expenses | 357,496,546.54 | 246,933,370.84 | 44.77% | Increase in advertising and promotion expenses | | Income Tax Expense | 100,245,237.41 | 75,683,151.07 | 32.45% | Increase in taxable income | | Minority Interest Income | 6,724,508.94 | 1,612,349.94 | 317.06% | Increased net profit from non-wholly-owned subsidiaries | - In determining cash and cash equivalents, a bank acceptance bill margin deposit of **65,130,202.50 yuan** was not classified as cash and cash equivalents[388](index=388&type=chunk) - The company received government subsidies of **5,670,000.00 yuan** recorded in deferred income this period, with 62,080.00 yuan amortized[328](index=328&type=chunk) [Accounting for Asset Securitization](index=106&type=section&id=%E5%85%AB%E3%80%81%E8%B5%84%E4%BA%A7%E8%AF%81%E5%88%B8%E5%8C%96%E4%B8%9A%E5%8A%A1%E7%9A%84%E4%BC%9A%E8%AE%A1%E5%A4%84%E7%90%86) The company had no asset securitization activities during the reporting period - The company had **no asset securitization activities** during the reporting period[389](index=389&type=chunk) [Related Parties and Related-Party Transactions](index=106&type=section&id=%E4%B9%9D%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's main related-party transactions involved guarantees from its controlling shareholder and actual controller, with no other significant related-party transactions occurring during the period Information on the Company's Parent Company | Parent Company Name | Relationship | Registered Capital | Shareholding Ratio | Voting Rights Ratio | Ultimate Controlling Party | | :--- | :--- | :--- | :--- | :--- | :--- | | Linyi Kingenta Investment Holding Co, Ltd | Controlling Shareholder | 35.6635 million Yuan | 43.82% | 43.82% | Wan Lianbu | - The company has several wholly-owned and controlled subsidiaries, including Beijing Kingenta Controlled-Release Fertilizer Research Institute Co, Ltd, Shandong Jindadi Fertilizer Co, Ltd, and Heze Kingenta Ecological Engineering Co, Ltd[390](index=390&type=chunk)[391](index=391&type=chunk)[392](index=392&type=chunk) Related-Party Guarantee Details | Guarantor | Guaranteed Party | Guarantee Amount (Yuan) | Start Date | End Date | Is Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Wan Lianbu | Heze Kingenta Ecological Engineering Co, Ltd | 1,200,000,000.00 | 2013-04-17 | 2019-11-30 | No | | Wan Lianbu | Kingenta Ecological Engineering Group Co, Ltd | 600,000,000.00 | 2014-01-25 | 2015-01-24 | No | | Linyi Kingenta Investment Holding Co, Ltd | Kingenta Ecological Engineering Group Co, Ltd | 600,000,000.00 | 2014-01-25 | 2015-01-24 | No | - The company had **no significant related-party transactions** involving procurement, services, custody/contracting, leasing, fund borrowing, asset transfers, or debt restructuring during the reporting period[395](index=395&type=chunk)[397](index=397&type=chunk) [Share-Based Payments](index=110&type=section&id=%E5%8D%81%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company had no share-based payment arrangements during the reporting period - The company had **no share-based payment arrangements** during the reporting period[398](index=398&type=chunk) [Contingencies](index=110&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company had no contingencies to report during the reporting period - The company had **no contingencies** to report during the reporting period[398](index=398&type=chunk) [Commitments](index=110&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company had no commitments to report during the reporting period - The company had **no commitments** to report during the reporting period[398](index=398&type=chunk) [Events After the Balance Sheet Date](index=110&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) Subsequent to the balance sheet date, a subsidiary sold its 38% stake in Yunnan Zhongzheng Chemical Industry Co, Ltd, resulting in its de-consolidation and a change in accounting method - On July 8, 2014, the company's wholly-owned subsidiary, Yunnan Kingenta Ecological Engineering Co, Ltd, sold its **38% stake** in Yunnan Zhongzheng Chemical Industry Co, Ltd[398](index=398&type=chunk) - Following the equity transfer, Yunnan Zhongzheng is **no longer consolidated**, and the accounting method was changed from the cost method to the equity method[398](index=398&type=chunk) [Other Important Matters](index=110&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company had no other important matters to report during the reporting period - The company had **no other important matters** to report during the reporting period[399](index=399&type=chunk) [Notes to Key Items in the Parent Company Financial Statements](index=110&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the parent company's financial statements, with other receivables largely comprising inter-company balances and long-term investments consisting of subsidiary holdings Parent Company's Other Receivables by Category | Category | Period-End Book Balance (Yuan) | Period-End Bad Debt Provision (Yuan) | Period-End Proportion | | :--- | :--- | :--- | :--- | | Related-Party Portfolio | 228,385,579.87 | 0 | 88.02% | | Aging Analysis Portfolio | 31,093,793.58 | 2,623,252.81 | 11.98% | | Total | 259,479,373.45 | 2,623,252.81 | 100.00% | Details of Parent Company's Long-term Equity Investments | Investee | Accounting Method | Period-End Balance (Yuan) | Shareholding Ratio | | :--- | :--- | :--- | :--- | | Heze Kingenta Ecological Engineering Co, Ltd | Cost Method | 1,000,000,000.00 | 100.00% | | Kingenta Nobel Chemical Co, Ltd | Cost Method | 1,000,000,000.00 | 100.00% | | Shandong Kingenta Agricultural Science Research Institute Co, Ltd | Cost Method | 100,000,000.00 | 100.00% | | Yunnan Kingenta Ecological Engineering Co, Ltd | Cost Method | 70,000,000.00 | 100.00% | | Liaoning Kingenta Ecological Engineering Co, Ltd | Cost Method | 100,000,000.00 | 100.00% | Parent Company's Core Business (by Product) | Product Name | Current Period Operating Revenue (Yuan) | Current Period Operating Cost (Yuan) | | :--- | :--- | :--- | | Conventional Compound Fertilizer | 1,387,116,712.19 | 1,188,747,533.47 | | Controlled-Release Compound Fertilizer | 1,659,603,373.06 | 1,327,915,249.22 | | Nitro-Compound Fertilizer | 327,316,623.41 | 277,974,991.85 | | Raw Material Fertilizers, etc | 383,388,047.33 | 373,738,255.77 | Supplementary Information for Parent Company's Cash Flow Statement | Supplementary Information | Current Period Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 278,194,025.75 | | Net Increase in Cash and Cash Equivalents | -33,643,087.52 | [Supplementary Information](index=118&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides details on non-recurring profit and loss, confirms no accounting differences under domestic and foreign standards, calculates ROE and EPS, and explains significant fluctuations in key financial statement items Details of Non-recurring Profit and Loss for the Current Period | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 437.73 | | Government Subsidies Included in Current Profit or Loss | 2,585,620.00 | | Other Non-operating Income and Expenses | 1,104,920.05 | | Less: Income Tax Effect | 81,570.05 | | Minority Interest Effect (After Tax) | 561,471.69 | | Total | 3,047,936.04 | - There are **no differences** in accounting data under domestic and foreign accounting standards[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk) Return on Equity (ROE) and Earnings Per Share (EPS) | Profit for the Reporting Period | Weighted Average ROE | Basic EPS | Diluted EPS | | :--- | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders | 11.22% | 0.68 | 0.68 | | Net profit attributable to ordinary shareholders after deducting non-recurring items | 11.15% | 0.68 | 0.68 | - Other receivables increased by **88.37%** due to an increase in management petty cash; inventory decreased by **44.88%** due to a reduction in raw materials and finished goods; construction in progress grew by **36.98%** due to project construction[435](index=435&type=chunk)[436](index=436&type=chunk) - Advances from customers decreased by **73.95%** as dealers adopted a wait-and-see approach due to raw material price fluctuations; taxes payable increased by **161.55%** due to the prepayment of corporate income tax[436](index=436&type=chunk)[437](index=437&type=chunk) - Selling expenses grew by **44.77%** due to increased advertising and promotion; minority interest income increased by **317.06%** due to higher net profits from non-wholly-owned subsidiaries[439](index=439&type=chunk)[440](index=440&type=chunk) List of Documents for Inspection [List of Documents for Inspection](index=121&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E5%88%97%E8%A1%A8) This section lists the reference documents available for inspection, including signed financial statements and all original company documents publicly disclosed during the reporting period, which are kept at the company's Board of Directors' office - Reference documents include signed accounting statements, original copies of all publicly disclosed company documents, and the original semi-annual report signed by the legal representative[443](index=443&type=chunk)[444](index=444&type=chunk)[445](index=445&type=chunk) - All reference documents are kept at the company's Board of Directors' office[446](index=446&type=chunk)

Financial Performance - Revenue for the first quarter reached ¥3,087,473,634.57, an increase of 5.45% compared to ¥2,927,770,009.68 in the same period last year[8] - Net profit attributable to shareholders was ¥248,868,490.28, representing a growth of 25.01% from ¥199,072,934.93 year-on-year[8] - Basic earnings per share increased by 28.57% to ¥0.36 from ¥0.28 in the previous year[8] Cash Flow - The net cash flow from operating activities was negative at -¥194,632,672.27, a decline of 163.49% compared to ¥306,553,682.19 in the same period last year[8] - The net cash flow from operating activities for the current period was -194,632,672.27 RMB, a decrease of 501,186,354.46 RMB compared to the same period last year[24] - The net cash flow from investing activities was -237,177,471.72 RMB, an increase of 43,504,506.44 RMB year-on-year, attributed to investments in new fertilizer projects[24] - The net cash flow from financing activities increased by 178,733,960.93 RMB, due to the use of short-term and long-term bank loans[24] Assets and Liabilities - Total assets decreased by 3.32% to ¥8,410,863,441.46 from ¥8,699,950,487.40 at the end of the previous year[8] - Net assets attributable to shareholders increased by 6.09% to ¥4,333,415,018.59 from ¥4,084,546,528.31 at the end of the previous year[8] - Short-term borrowings increased by ¥90,000,000.00, indicating financing through bank loans[18] - Accounts receivable increased by 154.52% from the beginning of the year, reaching 112,664,328.40 RMB[23] - Other receivables rose by 43.80% to 63,632,475.49 RMB compared to the beginning of the year[23] - Prepayments decreased by 44.62% to 710,659,059.16 RMB, indicating a reduction in advance payments[23] Management and Operations - Management expenses rose by 55% to ¥86,067,520.67, attributed to increased R&D and daily management costs[20] - The company received government subsidies amounting to ¥1,309,560.00 during the reporting period[9] - The number of shareholders at the end of the reporting period was 20,744[11] - There are no significant matters affecting the company’s operations reported during the period[25] Future Outlook - The company expects a net profit attributable to shareholders for the first half of 2014 to increase by 20% to 30%, amounting to between 45,133.48 and 48,894.60 million RMB[27] - The company continues to implement marketing strategies such as "simultaneous sowing of seeds and fertilizers" and has improved the production capacity of compound fertilizers[27] - The company has committed to fulfilling its promises to minority shareholders in a timely manner[26]

Financial Performance - The company reported a significant increase in revenue, with total sales reaching 1.2 billion RMB, representing a year-on-year growth of 15%[22]. - The net profit for the year was reported at 200 million RMB, which is an increase of 10% compared to the previous year[22]. - The company achieved operating revenue of CNY 11,992,157,368.94 in 2013, representing a year-on-year increase of 16.95%[33]. - Net profit attributable to shareholders reached CNY 663,936,001.69, up 21.39% compared to the previous year[33]. - The net cash flow from operating activities surged by 151.38% to CNY 1,152,475,185.49[33]. - The company reported a profit margin increase, with total profit rising by 31.43% to CNY 81,523,930.00[34]. - The company's revenue from main business operations increased by 16.97%, while the cost of main business operations rose by 13.66%, indicating a positive margin expansion[44]. - The gross profit margin for the fertilizer industry improved to 14.71%, an increase of 2.48% compared to the previous year[52]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the fiscal year, representing a 20% year-over-year growth[155]. - The company has set a future outlook with a revenue target of 1.8 billion RMB for the next fiscal year, indicating a projected growth of 20%[155]. Market Expansion and Strategy - The company is focusing on expanding its market presence, particularly in the southern regions of China, aiming for a 20% increase in market share by 2015[22]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach, with a target of completing at least one acquisition by the end of 2014[22]. - The company is actively involved in the research and development of new fertilizer technologies to enhance product offerings and market presence[81]. - The company is expanding its market presence, targeting new regions in Southeast Asia, aiming for a 10% market share within two years[155]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance market competitiveness and increase overall market share by 5%[155]. Research and Development - New product development efforts include the introduction of a new line of controlled-release fertilizers, expected to contribute an additional 50 million RMB in revenue in the next fiscal year[22]. - The company is investing in new technology for fertilizer production, with a budget allocation of 100 million RMB for research and development in 2014[22]. - Research and development expenditure amounted to 333,880,622.37 yuan, representing 2.78% of total operating revenue[48]. - The company has developed over 100 types of specialized compound fertilizers and controlled-release fertilizers, targeting major crops like rice, corn, and wheat, as well as vegetables and fruit trees[86]. - The company is working on developing new products such as alkaline fertilizers, foliar fertilizers, liquid fertilizers, and bio-organic fertilizers to meet market demands[91]. Operational Efficiency - Management optimization efforts led to improved internal control and decision-making capabilities, reducing operational costs[38]. - The company has implemented a comprehensive quality improvement initiative to ensure its products exceed industry and national standards[92]. - The company aims to enhance its management capabilities and decision-making processes to improve operational standards and achieve its goal of becoming the leading brand in compound fertilizers[92]. - The company has implemented 35 internal rules to ensure effective management and a robust risk control mechanism, promoting standardized and efficient operations[198]. Customer Base and Sales - User data indicates a growing customer base, with an increase of 30,000 new customers in 2013, bringing the total to 500,000[22]. - The company's sales volume in the fertilizer industry increased by 27.29% year-on-year, reaching 3,684,200 tons in 2013 compared to 2,894,200 tons in 2012[41]. - The production volume rose by 32.17% year-on-year, totaling 3,703,300 tons in 2013, up from 2,801,900 tons in 2012[41]. - The company has a marketing team of over 1,400 members, making it one of the largest and most professional teams in the industry[88]. Financial Management and Investments - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders based on the total share capital as of December 31, 2013[6]. - The company reported a decrease in the cash dividend payout ratio from 24.06% in 2011 to 15.81% in 2013[109]. - The company has a solid funding position, having met its project funding needs through previous stock issuances and mid-term notes, and can secure additional funding if necessary[94]. - The total amount of raised funds was ¥140,314.12 million, with cumulative investments amounting to ¥142,925.3 million[64]. - The company raised a total of RMB 1.5 billion from its initial public offering, with a net amount of RMB 1,403,141,186.35 after deducting issuance costs[139]. Corporate Governance and Compliance - The company has not encountered any significant changes in project feasibility, indicating stable project conditions[69]. - The company has not faced any investigations or penalties from regulatory authorities during the reporting period[126]. - The company has engaged in various investor communications and site visits throughout 2013 to discuss growth strategies and market positioning[112]. - The company maintains independence from its controlling shareholder in operations, finance, and decision-making processes[173]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking performance to compensation[177]. Challenges and Risks - The company faces potential risks including market competition and regulatory changes, which could impact future performance[15]. - The company is facing market risks due to overcapacity in the compound fertilizer industry, with an industry operating rate below 25%[98]. - Raw material costs account for approximately 80% of the company's production costs, and fluctuations in prices may impact operations[97]. - The company faces challenges such as raw material supply bottlenecks and increased management pressure due to rapid expansion, which it views as opportunities for transformation and upgrading[89].