Business Focus and Strategy - The company reported a significant shift in its main business focus from "pharmaceutical health + agrochemical" to solely agrochemical products after the divestiture of Ark Pharmaceutical in 2020[19]. - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[5]. - The company completed a change in controlling ownership and adjusted its development strategy to enhance safety and environmental protection investments, laying a solid foundation for future recovery[33]. - The company aims to strengthen its core business in agrochemicals and phosgene products while pursuing continuous production process improvements and automation to enhance production efficiency[34]. - The company plans to extend its industrial chain around the new materials industry and establish a new materials industry cluster, supported by setting up industrial and merger funds to accelerate growth[35]. Financial Performance - The company's operating revenue for 2021 was ¥1,443,932,144.80, representing a 7.60% increase compared to ¥1,341,970,891.91 in 2020[21]. - The net profit attributable to shareholders was -¥491,191,923.36, a significant decrease of 3,413.59% from ¥14,823,557.29 in 2020[21]. - The net cash flow from operating activities was ¥11,796,557.54, down 90.81% from ¥128,305,653.14 in the previous year[21]. - The total assets at the end of 2021 were ¥1,727,949,962.51, a decrease of 25.23% from ¥2,311,049,219.02 at the end of 2020[21]. - The net assets attributable to shareholders decreased by 42.53% to ¥666,636,974.20 from ¥1,159,910,073.71 in 2020[21]. Market and Competition - The global pesticide market is projected to reach $66.703 billion in 2023, with a compound annual growth rate of 3% from 2018 to 2023[32]. - The company faced challenges due to the ongoing impact of the COVID-19 pandemic, rising international shipping costs, and inflationary pressures on raw material prices[31]. - The company is a major domestic producer of fungicides and has pioneered the development of methyl thiophanate, positioning itself as a key player in the fungicide market[36]. - The agricultural chemical industry is undergoing consolidation, with major multinational companies controlling over 60% of the global market share, indicating a competitive landscape for domestic companies[100]. Production and Operations - The company experienced a significant increase in production costs due to rising prices of upstream raw materials, including chlor-alkali and phosphorus chemicals, and high international shipping costs, leading to a negative gross margin for the reporting period[33]. - The company had to shift from self-manufacturing to external procurement for key intermediates like methyl chloroformate and ethyl chloroformate, resulting in a substantial increase in production costs[33]. - The company faced temporary production halts in September 2021 due to local government mandates in response to power supply shortages, adversely affecting overall production operations[33]. - The company is focused on continuous improvement in production technology, achieving a product purity of over 98% for certain products[49]. Research and Development - The company is investing in new product development and market expansion, particularly in the pesticide sector[52]. - Research and development expenses decreased by 18.71% year-on-year, totaling ¥12,916,551.27 in 2021[76]. - The number of R&D personnel decreased by 2.11% to 93 in 2021, while the proportion of R&D personnel in the total workforce increased to 6.62%[79]. Governance and Compliance - The company has established a robust internal control system to ensure effective management and oversight[115]. - There are no significant discrepancies between the company's governance practices and regulatory requirements[117]. - The company has faced multiple penalties for governance issues, indicating a need for improved compliance and transparency in financial reporting[133]. - The company has committed to ensuring the independence of its management team, including the general manager and financial personnel, who will not hold positions in other companies controlled by the shareholders[178]. Environmental Responsibility - The company has implemented a comprehensive air pollution control strategy, achieving stable compliance with emission standards for various production processes[163]. - The company has made significant investments in environmental protection technologies, leading to a continuous reduction in pollutant emissions[165]. - The wastewater treatment facility has a processing capacity of 3000 tons per day, utilizing a multi-step treatment process to meet discharge standards[162]. - The company has established a hazardous waste temporary storage facility with an area of 1584 square meters and a maximum storage capacity of approximately 2000 tons[165]. Shareholder Relations - The company has maintained a stable dividend distribution policy, ensuring that at least 20% of the annual distributable profits are allocated as cash dividends to shareholders[170]. - The company actively engages with shareholders through various communication channels, including investor hotlines and public meetings[169]. - The company has committed to distributing at least 20% of the annual distributable profits in cash dividends when conditions are met[181].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 438,930,890.48, representing a 31.54% increase compared to CNY 333,685,157.13 in the same period last year[2]. - The net profit attributable to shareholders decreased by 28.67% to CNY 881,027.16 from CNY 1,235,069.65 year-on-year[2]. - The company's basic earnings per share fell by 25.00% to CNY 0.003 from CNY 0.004 year-on-year[2]. - Total operating revenue for Q1 2022 was CNY 438,930,890.48, an increase of 31.6% compared to CNY 333,685,157.13 in Q1 2021[17]. - Net profit for Q1 2022 was CNY 881,027.16, a decrease of 28.7% from CNY 1,235,069.65 in Q1 2021[18]. - Earnings per share for Q1 2022 were CNY 0.003, down from CNY 0.004 in Q1 2021[18]. Cash Flow and Liquidity - The net cash flow from operating activities dropped by 73.10% to CNY 4,558,700.20, down from CNY 16,943,743.63 in the previous year[2]. - The company reported a decrease in cash and cash equivalents, reflecting a cash flow challenge in the current quarter[19]. - The net cash flow from operating activities for Q1 2022 was ¥4,558,700.20, a decrease of 73.9% compared to ¥16,943,743.63 in Q1 2021[20]. - Total cash inflow from operating activities was ¥379,373,278.61, compared to ¥372,491,238.24 in the previous year, reflecting a slight increase of 1.9%[20]. - Cash outflow from operating activities totaled ¥374,814,578.41, up 5.4% from ¥355,547,494.61 in Q1 2021[20]. - The ending balance of cash and cash equivalents was ¥65,554,509.09, compared to ¥189,769,647.30 at the end of Q1 2021, indicating a decrease of 65.5%[21]. - The company reported a cash inflow of ¥18,247,880.94 from tax refunds, up 26.5% from ¥14,467,953.64 in Q1 2021[20]. - The company’s cash outflow for employee payments was ¥43,721,050.39, an increase of 40.9% compared to ¥31,016,023.81 in Q1 2021[20]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,634,390,460.62, a decrease of 5.41% from CNY 1,727,949,962.51 at the end of the previous year[2]. - The company’s total liabilities decreased by 5.41% compared to the previous year, reflecting a strategic focus on reducing debt levels[2]. - Total liabilities as of the end of Q1 2022 were CNY 966,055,166.99, down from CNY 1,061,312,988.31 in Q1 2021[15]. - The total current assets decreased to ¥472,430,661.18 from ¥546,039,989.40, a reduction of approximately 13.5%[13]. Research and Development - Research and development expenses decreased by 65.08% compared to the previous year, primarily due to increased capitalization of new project expenditures[8]. - Research and development expenses for Q1 2022 were CNY 1,156,239.90, significantly lower than CNY 3,310,862.46 in Q1 2021, indicating a reduction in investment in innovation[17]. - The company experienced a 100% increase in development expenditures compared to the beginning of the year, attributed to new R&D projects initiated this year[8]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,030[9]. - The largest shareholder, Jiangsu Suhua Group, holds 10.10% of shares, totaling 34,334,137 shares[9]. - The company approved a restricted stock incentive plan, granting 33.85 million shares at a price of ¥3.00 per share, increasing total shares from 340,086,278 to 373,936,278[12]. Investments and Subsidiaries - The company established a wholly-owned subsidiary, Jiangsu Lanfeng Crop Technology Co., Ltd., with a registered capital of ¥20 million[10]. - A joint venture was formed with Chongqing Shenggan New Material Technology Co., Ltd., with a total registered capital of ¥50 million, where Lanfeng New Materials contributed ¥40 million[11]. Government Support - The company received government subsidies amounting to CNY 469,250.00, which are closely related to its normal business operations[3]. Inventory and Receivables - Accounts receivable rose to ¥78,859,371.59 from ¥77,718,926.45, indicating a slight increase of about 1.5%[13]. - Inventory decreased to ¥105,012,723.09 from ¥132,696,240.18, reflecting a decline of approximately 20.9%[13]. - The company reported a significant amount of other receivables at ¥125,640,255.78, down from ¥187,036,041.54, indicating a decrease of about 32.8%[13].

Business Focus and Strategy - The company reported a significant shift in its main business focus from "pharmaceutical health + agrochemical" to solely agrochemical products after the divestiture of Ark Pharmaceutical in 2020[19]. - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[5]. - The company experienced a change in controlling shareholder from Suhua Group to Hainan Jinsui in May 2021, following a series of equity transfer agreements[19]. - The company has committed to ensuring the accuracy and completeness of its financial reports, with key executives affirming the integrity of the annual report[3]. - The company’s main business includes the production, research, and sales of pesticides and fine chemical products, reflecting its expertise in the agrochemical sector[19]. - The new management team has adjusted the company's development strategy, increasing investments in safety and environmental protection to address previous shortcomings[33]. - The company aims to enhance production efficiency and product quality through continuous process improvements and DCS automation[34]. - The company plans to extend its industrial chain around new materials and establish a new materials industry cluster, supported by setting up industry and merger funds[35]. - The company is committed to a strategic shift towards high-end new materials and green chemical sectors, emphasizing innovation and ecological sustainability[98]. - The company’s future development strategy includes leveraging its expertise in phosgene products and agricultural technology to become a leading enterprise in its field[98]. Financial Performance - The company's operating revenue for 2021 was ¥1,443,932,144.80, representing a 7.60% increase compared to ¥1,341,970,891.91 in 2020[21]. - The net profit attributable to shareholders was -¥491,191,923.36, a significant decrease of 3,413.59% from ¥14,823,557.29 in 2020[21]. - The net cash flow from operating activities was ¥11,796,557.54, down 90.81% from ¥128,305,653.14 in the previous year[21]. - The total assets at the end of 2021 were ¥1,727,949,962.51, a decrease of 25.23% from ¥2,311,049,219.02 at the end of 2020[21]. - The net assets attributable to shareholders decreased by 42.53% to ¥666,636,974.20 from ¥1,159,910,073.71 in 2020[21]. - The company reported a basic and diluted earnings per share of -¥1.44, compared to ¥0.04 in 2020, reflecting a decrease of 3,700.00%[21]. - The weighted average return on equity was -53.78%, down 55.08% from 1.30% in 2020[21]. - The company experienced a significant decline in quarterly net profit, with the fourth quarter showing a loss of -¥448,962,605.45[25]. - The company reported a significant decrease in cash inflows from investment activities, primarily due to the previous year's asset disposals[79]. - The company reported a total revenue of 228.76 million CNY for the year 2021, reflecting a year-on-year increase of 15%[130]. Market and Competition - The global pesticide market is projected to reach $66.703 billion in 2023, with a compound annual growth rate of 3% from 2018 to 2023[32]. - The company is committed to expanding its market presence both domestically and internationally, utilizing a mix of direct sales and partnerships with distributors[44]. - The company's main products include high-efficiency, low-toxicity pesticides, with a market share of approximately 30% for both Difenoconazole and Methyl Thiophanate[52]. - The company is focused on developing proprietary technologies, achieving over 98% purity in products like Cyhalofop-butyl through advanced synthesis methods[49]. - The company recognizes the competitive risk in the pesticide industry due to the presence of numerous small manufacturers and intends to accelerate technological upgrades to enhance market competitiveness[101]. Production and Operations - The company experienced a significant increase in production costs due to rising prices of upstream raw materials, with a negative gross margin reported for the period[33]. - The company shifted from self-manufacturing to external procurement for key intermediates like methyl chloroformate and ethyl chloroformate, leading to a substantial increase in production costs[33]. - The company faced temporary production halts in September 2021 due to local government mandates, adversely affecting overall operational performance[33]. - The production capacity utilization rates for key products are as follows: Methyl Thiophanate at 60%, Difenoconazole at 32%, and Benzene-1,4-diamine at 44%[49]. - The company has a production capacity of 400,000 tons/year for sulfuric acid, with a utilization rate of 41%[50]. Research and Development - Research and development expenses decreased by 18.71% to approximately ¥12.92 million in 2021, representing 0.89% of total revenue[76]. - The number of R&D personnel decreased by 2.11% to 93, with R&D personnel accounting for 6.62% of the total workforce[76]. - The company plans to maintain its commitment to research and development, aiming to introduce new products in the next fiscal period[121]. - The company is investing 50 million yuan in R&D for new technologies aimed at improving production efficiency by 25%[126]. Environmental and Safety Management - The company has established a wastewater treatment capacity of 3,000 tons per day, utilizing a multi-step treatment process to ensure compliance with discharge standards[159]. - The company has implemented a comprehensive air pollution control strategy, achieving stable compliance with emission standards through advanced treatment technologies[160]. - The company has invested in technology upgrades and equipment improvements to reduce pollutant emissions, aligning with its commitment to environmental protection[158]. - The company has a total of 487 safety production responsibility items and 39 safety management systems in place to enhance workplace safety[172]. - The company emphasizes the importance of safety training, with all special operation personnel receiving certification from the local labor bureau[172]. Corporate Governance - The company has established an independent financial department with a dedicated accounting system, ensuring independent financial decision-making[116]. - The company has a structured board of directors and supervisory board, ensuring compliance with corporate governance standards[116]. - The company is actively pursuing internal control management and enhancing corporate governance structures[139]. - The board has adopted a strict compliance approach to corporate governance and decision-making processes[138]. - The company has made a long-term commitment to ensure compliance with the regulations governing related party transactions and to maintain fair pricing practices[177]. Shareholder Relations - The company held its annual general meeting on May 13, 2021, with a participation rate of 40.42%[118]. - The company plans not to distribute cash dividends for the 2021 fiscal year and will not increase capital through public reserves or issue bonus shares[147]. - The company reported a positive profit available for distribution to shareholders but did not propose a cash dividend distribution plan[148]. - The company has a cash dividend policy ensuring that at least 20% of the distributable profits from the consolidated financial statements are distributed in cash annually, provided conditions are met[167]. Challenges and Risks - The company faced challenges due to the ongoing impact of the COVID-19 pandemic, rising international shipping costs, and inflationary pressures on raw material prices[31]. - The company is focused on addressing potential risks associated with safety and environmental compliance in its production processes[101]. - The company's agricultural chemical business revenue is nearly two-thirds from exports, primarily settled in USD, making it sensitive to RMB/USD exchange rate fluctuations[102]. - The company faces risks from raw material price fluctuations, with key materials including liquid chlorine, coke, methanol, and sulfur, which are influenced by energy and transportation costs[103].

Financial Performance - The company's revenue for Q3 2021 was ¥445,348,860.72, a decrease of 10.98% compared to the same period last year[4]. - The net profit attributable to shareholders was a loss of ¥28,721,582.20, representing a decline of 239.78% year-over-year[4]. - The net profit after deducting non-recurring gains and losses was a loss of ¥29,772,640.99, down 582.69% from the previous year[4]. - The company reported a net loss of ¥14,675,245.26, compared to a net profit of ¥2,023,237.18 in the same period last year, indicating a significant decline in profitability[24]. - The total comprehensive income for the third quarter was -42,229,317.91 CNY, compared to 10,849,342.85 CNY in the previous period[25]. - Basic and diluted earnings per share were both -0.12 CNY, down from 0.030 CNY in the previous period[25]. Cash Flow and Liquidity - The operating cash flow for the year-to-date period was ¥57,873,864.42, an increase of 108.44%[4]. - Cash inflow from operating activities totaled 1,163,764,621.92 CNY, an increase from 1,014,064,509.71 CNY year-over-year[28]. - The net cash flow from operating activities was 57,873,864.42 CNY, compared to 27,765,369.26 CNY in the previous period[28]. - Cash received from tax refunds increased by 119.17% to ¥49,020,242.25 due to an increase in export tax rebates[11]. - Cash paid for various taxes decreased by 61.91% to ¥5,720,956.85 as Ark Pharmaceutical was no longer included in the consolidation scope[11]. - Cash received from borrowings decreased by 62.63% to ¥82,000,000.00 due to reduced borrowings from financial institutions[11]. - The cash and cash equivalents at the end of the period were 95,348,563.04 CNY, compared to 76,480,304.41 CNY at the end of the previous period[29]. - The company received 82,000,000.00 CNY in borrowings during the period, down from 219,455,000.00 CNY in the previous period[29]. - The company reported a cash inflow of 136,000,000.00 CNY from financing activities, a decrease from 307,918,167.57 CNY in the previous period[29]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,175,101,420.34, a decrease of 5.88% from the end of the previous year[4]. - The total assets decreased to ¥2,175,101,420.34 from ¥2,311,049,219.02, reflecting a reduction of approximately 5.9%[22]. - Current liabilities totaled ¥1,043,374,503.37, down from ¥1,133,924,366.46, representing a decrease of about 7.9%[21]. - The total liabilities decreased to ¥1,058,356,632.50 from ¥1,151,139,145.31, a reduction of approximately 8.1%[21]. - The company’s retained earnings showed a negative balance of ¥1,098,080,958.30, worsening from a negative balance of ¥1,055,851,640.39 in the previous period[22]. Operational Metrics - Total operating revenue for the period reached ¥1,085,671,226.21, a slight increase of 0.1% compared to ¥1,078,645,108.88 in the previous period[23]. - Total operating costs amounted to ¥1,143,331,222.90, up 4.7% from ¥1,092,088,741.15 in the prior period, with operating costs specifically rising from ¥923,023,103.14 to ¥1,010,574,300.94[23]. - The company reported a significant decrease in sales expenses by 56.18% to ¥24,103,059.75, primarily due to the exclusion of Ark Pharmaceutical from the consolidation scope[10]. - Research and development expenses were reported at ¥11,010,052.54, a decrease from ¥12,201,817.24, indicating a reduction of about 9.8%[23]. Changes in Financial Structure - The company's cash and cash equivalents decreased by 48.73% to ¥169,933,876.22 due to increased loan repayments[8]. - Accounts receivable increased by 115.59% to ¥105,250,946.83, attributed to increased credit sales[8]. - Contract liabilities rose by 181.17% to ¥95,174,510.00, indicating an increase in advance payments received[8]. - The company did not adjust the initial balance sheet items due to the new leasing standards, indicating no significant impact on financial status and operating results[30]. - Cash paid for the acquisition of fixed assets increased by 86.77% to ¥92,669,182.62, attributed to payments for fixed asset purchases[11]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,817[14]. - The company registered a new wholly-owned subsidiary with a registered capital of ¥2 million, focusing on pesticide wholesale and retail, and crop seed import and export[16].

Financial Performance - The company's operating revenue for the first half of 2021 was ¥640,322,365.49, representing a 10.71% increase compared to ¥578,381,741.62 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was -¥13,507,735.71, a decrease of 39.28% from -¥9,698,096.76 in the previous year[19]. - The net cash flow from operating activities was ¥44,283,807.14, down 32.30% from ¥65,409,900.22 in the same period last year[19]. - The total assets at the end of the reporting period were ¥2,340,250,084.76, an increase of 1.26% from ¥2,311,049,219.02 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company decreased by 1.22% to ¥1,145,772,914.67 from ¥1,159,910,073.71 at the end of the previous year[19]. - The basic earnings per share were -¥0.04, a decrease of 33.33% from -¥0.03 in the same period last year[19]. - The diluted earnings per share were also -¥0.04, reflecting the same percentage decrease of 33.33%[19]. - The weighted average return on net assets was -1.21%, compared to -0.86% in the previous year, indicating a decline of 0.35%[19]. - The company reported a total of ¥1,552,638.37 in non-recurring gains and losses during the reporting period[24]. - The company achieved operating revenue of CNY 640,322,365.49, representing a year-on-year increase of 10.71%[29]. - The net profit attributable to shareholders was CNY -13,507,735.71, a decrease of 39.28% compared to the previous year[29]. Operational Challenges - The company's gross margin was impacted due to the shift from self-produced to externally purchased raw materials during the downtime of its phosgene synthesis unit[29]. - The company is currently rebuilding its phosgene synthesis facility, which has temporarily halted production, affecting its agricultural and fine chemical products[66]. - The ongoing COVID-19 pandemic continues to impact the company's operations, but it is adapting its production and marketing strategies to mitigate risks[65]. - The company faces intense market competition in the pesticide industry, with a large number of manufacturers leading to price competition, despite being one of the largest producers using phosgene as a raw material[59]. - The company is focusing on technological upgrades and cost reduction to enhance market competitiveness and is actively expanding into emerging markets[60]. Research and Development - The company has developed key technologies for the herbicide ringzine and is a major supplier of this product in China[28]. - The company has over 104 pesticide registration certificates, covering a wide range of insecticides, fungicides, and herbicides[36]. - Research and development expenses decreased by 37.29% to CNY 7,089,994.86 from CNY 11,306,886.35, attributed to a reduction in R&D projects[43]. - The company is initiating research and development for new products aimed at improving agricultural efficiency and sustainability[172]. - The company plans to continue its market expansion efforts, focusing on increasing production capacity and enhancing product offerings in the upcoming quarters[158]. Environmental Compliance - The company has implemented measures to ensure compliance with environmental regulations, maintaining pollutant emissions within national standards[61]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[76]. - The company reported a total COD discharge of 215.2566 tons, which is within the permitted limits[76]. - The company’s wastewater discharge concentration for COD is reported at 9.98 mg/L, which complies with the standards[76]. - The company has successfully implemented a 400kt/a sulfuric acid project, which has been operational since May 2013[80]. - The company has established an emergency response plan for environmental incidents to minimize losses and ensure safety, with complete emergency facilities and resources in place[81]. Financial Management - The company reported a total external guarantee amount of 55,000,000 RMB, with an actual guarantee balance of 4,820,000 RMB at the end of the reporting period[106]. - The actual guarantee amount that occurred during the reporting period totaled 18,700,000 RMB[106]. - The company has not engaged in any major related party transactions during the reporting period[95]. - The company has not reported any significant environmental issues or exceedances in pollutant discharge during the reporting period[76]. - The company has not engaged in poverty alleviation or rural revitalization efforts during the reporting period[84]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 13,541[121]. - The largest shareholder, Xinyi Huayi Investment Management Co., Ltd., held 10.59% of the shares, amounting to 36,001,020 shares[122]. - Jiangsu Suhua Group Co., Ltd. and Hainan Jinsui International Holdings Co., Ltd. held 10.10% and 10.00% of the shares, with 34,334,137 and 34,000,000 shares respectively[122]. - The company underwent a change in controlling shareholder to Hainan Jinsui International Holdings Co., Ltd. on May 19, 2021[124]. - The actual controller changed to Liu Zhi on May 19, 2021[125]. Legal Matters - The company is involved in a significant lawsuit regarding performance compensation, with a claim amount of 6,250,000 yuan[91]. - The company has filed lawsuits against certain individuals for failing to fulfill performance compensation obligations, with ongoing legal proceedings[86]. Corporate Governance - The company underwent a board restructuring on June 15, 2021, with multiple new appointments including Liu Zhi as Chairman and General Manager[71]. - The company has experienced a complete turnover in its board of directors as of June 15, 2021, with all previous members leaving[71]. - The company has appointed new independent directors and supervisors as part of the board restructuring[71]. Financial Reporting - The financial report for the first half of 2021 was not audited[133]. - The financial report was approved by the board on August 18, 2021, ensuring compliance with relevant accounting standards[174]. - The financial statements prepared by the company comply with the requirements of the accounting standards, accurately reflecting its financial position as of June 30, 2021[178].

Financial Performance - The company's operating revenue for 2020 was approximately ¥1.34 billion, a decrease of 10.80% compared to ¥1.50 billion in 2019[16]. - The net profit attributable to shareholders was ¥14.82 million, a significant turnaround from a loss of ¥516.56 million in 2019, representing a 102.87% increase[16]. - The net cash flow from operating activities was ¥128.31 million, down 49.70% from ¥255.08 million in the previous year[16]. - Basic earnings per share improved to ¥0.04 from a loss of ¥1.52 per share in 2019, marking a 102.63% increase[16]. - The weighted average return on net assets was 1.30%, recovering from -37.00% in 2019, an improvement of 38.30 percentage points[16]. - The company reported a net profit excluding non-recurring gains and losses of -¥47.57 million, an improvement of 90.89% from -¥522.09 million in 2019[16]. - Total assets decreased by 14.49% to ¥2,311,049,219.02 in 2020 from ¥2,702,688,081.25 in 2019[18]. - The company reported a net profit of -¥38,394,652.08 in the fourth quarter after deducting non-recurring gains and losses[22]. - The total revenue for the year 2020 was approximately CNY 1.34 billion, a decrease of 10.80% compared to CNY 1.50 billion in 2019[56]. - The agricultural chemical segment generated CNY 1.27 billion, accounting for 94.47% of total revenue, with a year-on-year decrease of 7.82%[56]. - The pharmaceutical segment's revenue fell by 42.54% to CNY 74.16 million, down from CNY 129.06 million in 2019[56]. Business Strategy and Focus - The company plans to focus solely on its pesticide and chemical business following the sale of its pharmaceutical subsidiary, Ark Pharmaceutical[16]. - The company completed the sale of 100% equity in Ark Pharmaceutical by the end of 2020, shifting its business focus[16]. - The company sold its pharmaceutical business to focus on the agricultural chemical sector, aligning with national strategies for sustainable development[29]. - The company aims to enhance safety management and operational efficiency by adopting a "safety first" development philosophy[29]. - The company plans to strengthen resource organization around market demands to improve economic operation quality[30]. - The company is committed to leveraging digital economy and advanced technologies to upgrade traditional processes and extend its value chain[29]. - The company plans to optimize production processes and enhance its agricultural chemical core business in 2021, ensuring high operational efficiency[91]. Market and Competitive Landscape - The company faces risks including market competition, environmental safety, exchange rate fluctuations, and raw material price changes[4]. - The agricultural chemicals market is expected to see stable demand in 2021, with improved supply quality and better market performance for insecticides and fungicides[28]. - The pesticide industry is experiencing accelerated consolidation, with a push towards centralized, large-scale, and specialized operations to improve international competitiveness[90]. - Approximately two-thirds of the company's agricultural business revenue comes from exports, making it sensitive to USD/CNY exchange rate fluctuations[95]. - The company faces significant market competition, with many small manufacturers impacting pricing and market dynamics[95]. Environmental and Safety Compliance - The company focuses on safety and environmental compliance, investing in special rectification and governance to ensure stable production amid strict regulations[42]. - The company has implemented a dual prevention system for risk management and established a comprehensive safety information platform[44]. - Environmental governance efforts have focused on wastewater treatment and emissions reduction, achieving positive results in managing wastewater and waste gas[44]. - The company has established a "five-in-one" safety information platform to improve overall safety management and compliance[44]. - The company is committed to enhancing safety and environmental standards in production, aligning with stricter regulations[92]. - The company has implemented new strategies for environmental compliance, ensuring all emissions are within regulatory standards[156]. Research and Development - The company is collaborating with Hunan Chemical Research Institute to strengthen its product development capabilities in phosgene derivatives[49]. - Total research and development expenses decreased by 54.39% to 15,888,886.40 yuan, which is 1.18% of total revenue, down from 2.32% the previous year[69]. - The company is focused on expanding its product range to meet the demands of high-end customers[93]. Financial Management and Cash Flow - The company has enhanced its cash flow management, maintaining accounts receivable at a low level through strict budget management and cost control measures[46]. - The total cash inflow from investment activities surged by 1,977.82% to 328,381,954.51 yuan, mainly due to proceeds from the sale of subsidiaries[72]. - The company reported a significant reduction in financial expenses by 29.24% to 38,408,726.58 yuan, due to decreased bank borrowings[68]. - The company aims to strengthen cost control measures and improve financial management to ensure operational liquidity[93]. Shareholder and Governance Matters - The company has not distributed cash dividends in the past three years, citing financing pressures and cash flow considerations[100]. - The company has committed to not engage in any competitive business activities with its subsidiaries and to avoid any related party transactions that could harm the interests of the company and its shareholders[105]. - The company has maintained normal performance of its commitments regarding competition and related transactions since February 2016[104]. - The company has appointed independent directors with extensive backgrounds in finance and law, enhancing governance and oversight[199][200]. Legal and Regulatory Compliance - The company received a notice from the China Securities Regulatory Commission (CSRC) on January 8, 2019, regarding an investigation into information disclosure violations[119]. - On April 7, 2020, the company received an administrative penalty decision from the CSRC, confirming the violations but not triggering mandatory delisting conditions[119]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[110]. Employee and Social Responsibility - The company provides comprehensive social security benefits for employees and conducts regular training to enhance their skills[147]. - The company invested 9.09723 million yuan in safety measures during the reporting period, with 44 safety training sessions conducted, totaling 1,924 participants[152]. - The company has not initiated any poverty alleviation projects during the reporting period[153].

Financial Performance - The company's revenue for Q1 2021 was ¥333,685,157.13, representing a 40.28% increase compared to ¥237,864,645.78 in the same period last year[8]. - Net profit attributable to shareholders was ¥1,235,069.65, a significant turnaround from a loss of ¥15,414,150.34 in the previous year, marking an increase of 108.01%[8]. - Basic earnings per share rose to ¥0.004 from a loss of ¥0.05, indicating an increase of 108.00%[8]. - The company reported a total profit of ¥1,522,672.21 for Q1 2021, compared to a total loss of ¥21,043,995.69 in the same period last year[39]. - The net profit for the first quarter was CNY 15 million, which is a 10% increase compared to the same period last year[18]. Cash Flow - The net cash flow from operating activities improved to ¥16,943,743.63, compared to a negative cash flow of ¥43,166,633.92 in the same period last year, reflecting a 139.25% increase[8]. - Operating cash inflow totaled CNY 372,491,238.24, up from CNY 259,437,054.05 in the previous period, representing an increase of approximately 43.5%[47]. - Cash and cash equivalents at the end of the period were CNY 189,769,647.30, down from CNY 226,794,968.20 at the beginning of the period, reflecting a decrease of 16.4%[48]. - Cash inflow from financing activities was CNY 69,000,000.00, a decrease of 25.8% compared to CNY 93,000,000.00 in the previous period[48]. - Cash outflow from financing activities totaled CNY 94,245,287.16, down from CNY 115,815,803.12, indicating a reduction of 18.6%[48]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,297,229,128.34, a slight decrease of 0.60% from ¥2,311,049,219.02 at the end of the previous year[8]. - Total current assets decreased from 822,936,819.64 to 813,490,818.33, a decline of approximately 1.8%[29]. - Total liabilities decreased from 1,151,139,145.31 to 1,136,645,049.91, a reduction of approximately 1.3%[31]. - Total equity increased from 1,159,910,073.71 to 1,160,584,078.43, a growth of about 0.06%[32]. - Total non-current assets slightly decreased from 1,488,112,399.38 to 1,483,738,310.01, a decline of about 0.3%[30]. Shareholder Information - The total number of shareholders at the end of the reporting period was 11,192[11]. - Jiangsu Suhua Group Co., Ltd. was the largest shareholder, holding 20.09% of the shares, equivalent to 68,334,137 shares[11]. - The company did not engage in any repurchase transactions among its top shareholders during the reporting period[12]. Operational Highlights - Operating revenue grew by 40.28% year-on-year, primarily driven by increased product sales[15]. - Operating costs rose by 49.31% year-on-year, attributed to the growth in product sales[15]. - Sales expenses decreased by 86.92% year-on-year, mainly because Ark Pharmaceutical is no longer included in the company's consolidated financial statements[15]. - Research and development expenses fell by 39.45% year-on-year, due to a reduction in R&D projects[15]. - Cash received from sales of goods and services increased by 45.35% year-on-year, reflecting higher operating revenue[15]. Strategic Initiatives - The company plans to invest CNY 50 million in new product development and technology research in the upcoming quarters[18]. - The company has outlined a market expansion strategy targeting Southeast Asia, aiming for a 15% market share within the next two years[18]. - The company plans to continue focusing on market expansion and new product development to drive future growth[38]. Compliance and Governance - There are no reported securities or derivative investments during the reporting period, indicating a conservative investment approach[19][20]. - No significant related party transactions were reported, ensuring transparency and compliance with regulatory standards[18]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[22]. - There were no violations regarding external guarantees, maintaining a strong financial position[22].

Financial Performance - Operating revenue for the reporting period was CNY 500,263,367.26, an increase of 26.17% year-on-year [8]. - Net profit attributable to shareholders was CNY 20,547,439.61, a significant increase of 260.46% compared to the same period last year [8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 6,168,109.86, up 568.42% year-on-year [8]. - Basic earnings per share for the reporting period were CNY 0.06, representing a 200.00% increase compared to the previous year [8]. - The total comprehensive income for Q3 2020 was ¥20,547,439.61, up from ¥5,700,314.40 in Q3 2019, indicating a substantial increase of 260.5% [50]. - Net profit for Q3 2020 was ¥20,547,439.61, compared to ¥5,700,314.40 in Q3 2019, representing an increase of 260.5% [49]. - The total profit for the period was ¥12,872,580.03, a decrease of 64.12% from ¥35,854,446.86 in the previous period [56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,560,541,590.75, a decrease of 5.26% compared to the end of the previous year [8]. - Current assets decreased from CNY 814,771,310.26 to CNY 715,382,524.82, a decline of approximately 12.2% [39]. - Total liabilities decreased from CNY 1,567,332,363.53 to CNY 1,416,786,871.54, a decline of about 9.6% [41]. - Long-term borrowings decreased from CNY 9,212,865.72 to zero, indicating a complete repayment [41]. - Total equity increased to ¥2,284,646,985.13 from ¥2,269,311,590.15, showing a growth of 0.7% [48]. Cash Flow - The net cash flow from operating activities was negative CNY 37,644,530.96, a decrease of 371.41% compared to the same period last year [8]. - Cash inflow from operating activities was CNY 1,014,064,509.71, down from CNY 1,128,919,196.96, indicating a decline of about 10.2% year-over-year [63]. - The net cash flow from operating activities was CNY 27,765,369.26, significantly lower than CNY 187,288,617.41 from the previous year, representing a decrease of approximately 85.2% [65]. - Cash outflow from investing activities totaled CNY 49,617,740.33, compared to CNY 95,745,491.51 in the previous year, showing a reduction of about 48.2% [66]. - The ending balance of cash and cash equivalents was CNY 76,480,304.41, down from CNY 100,336,597.45, reflecting a decrease of about 23.7% [66]. Shareholder Information - The company reported a total of 13,225 shareholders at the end of the reporting period [12]. - Jiangsu Suhua Group Co., Ltd. held 20.09% of the shares, making it the largest shareholder [12]. Research and Development - Research and development expenses decreased by 48.53% year-on-year, mainly due to a reduction in R&D projects [16]. - The company is investing 100 million yuan in R&D for innovative biochemicals over the next two years [23]. - Research and development expenses decreased significantly to ¥894,930.89 from ¥7,905,063.37, a reduction of 88.7% [48]. Market and Product Development - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2022 [25]. - New product development includes a line of eco-friendly pesticides, expected to launch in Q1 2021, projected to contribute an additional 200 million yuan in revenue [22]. - Jiangsu Lanfeng is exploring potential acquisitions in the agricultural sector to enhance its product portfolio and market reach [24]. Other Financial Information - The company did not engage in any repurchase transactions during the reporting period [13]. - There were no securities investments or derivative investments during the reporting period [30][31]. - The company has no non-operating fund occupation by controlling shareholders or their affiliates during the reporting period [34]. - The company has not engaged in any major contracts or entrusted financial management during the reporting period [32][35]. - The company committed to returning all occupied company funds and interest by December 31, 2018, but has not fulfilled this commitment [28]. - The company has not received any performance compensation payments for unfulfilled commitments as of December 31, 2018 [27]. - The company has no violations regarding external guarantees during the reporting period [33]. - The company has not conducted any research, communication, or interview activities during the reporting period [35]. - The company is committed to ensuring its legal rights based on the effective court documents received [29].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥578,381,741.62, a decrease of 26.62% compared to ¥788,218,646.32 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of ¥9,698,096.76, representing a decline of 144.35% from a profit of ¥21,864,800.60 in the previous year[17]. - The net cash flow from operating activities was ¥65,409,900.22, down 23.15% from ¥85,117,077.24 in the same period last year[17]. - The basic earnings per share were -¥0.03, a decrease of 175.00% compared to ¥0.04 in the previous year[17]. - Total assets at the end of the reporting period were ¥2,686,084,906.01, a decrease of 0.61% from ¥2,702,688,081.25 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were ¥1,124,479,822.54, down 0.96% from ¥1,135,355,717.72 at the end of the previous year[17]. - The company reported a significant decline in pharmaceutical revenue, which fell by 49.64% to ¥29,459,850.61 from ¥58,494,415.31 year-on-year[46]. - The agricultural chemical segment generated ¥548,921,891.01, accounting for 94.91% of total revenue, down 24.78% from ¥729,724,231.01[46]. - The company reported a total revenue of 1,254 million yuan for the first half of 2020, with a slight increase of 0.15% compared to the previous period[97]. Risks and Challenges - The company faces risks including market competition, safety and environmental risks, and potential delisting due to consecutive losses[5]. - The company has not made any forward-looking commitments regarding future performance, emphasizing the need for investors to recognize associated risks[5]. - The company has experienced continuous losses in 2018 and 2019, leading to a risk of stock suspension if losses continue in 2020[67]. - New drug development is a high-risk area for the company, with potential impacts on revenue if new drugs fail to gain approval or perform poorly in the market[66]. - The company faces risks related to raw material price fluctuations, as key materials are influenced by energy, transportation, and national policies[65]. Business Segments - The main business segments of the company include agricultural chemicals and pharmaceuticals, focusing on the production and sales of fungicides, insecticides, herbicides, and fine chemical intermediates[25]. - The agricultural chemicals product categories include phosgene products and organophosphorus products, with key products such as multi-bacterial agents and pyrethroids[26]. - The pharmaceutical segment includes the development and production of traditional Chinese medicine and chemical drugs, with notable products like Donepezil Hydrochloride Tablets and Compound Cantharidin Capsules[27]. - The pharmaceutical business primarily targets conditions such as Alzheimer's disease, infections, and cancer, with a range of products approved for various indications[27]. Research and Development - The company emphasizes the importance of research and development in both agricultural and pharmaceutical sectors to drive future growth[25]. - The company has established a research and development platform with renowned institutions to enhance pharmaceutical innovation and product competitiveness[34]. - Jiangsu Lanfeng is investing 50 million RMB in R&D for new product development, focusing on environmentally friendly chemical solutions[75]. Market Strategy - The company aims to optimize product and sales structure in the agrochemical sector, ensuring stable operations with minimal investment[31]. - The company is focusing on expanding key markets and enhancing product marketing strategies[40]. - The company plans to expand its market presence by entering two new provinces in China by the end of 2020, aiming for a 25% increase in market share[78]. - The company is expanding its market presence in Southeast Asia, with plans to enter three new countries by Q4 2020, aiming for a 5% market share in these regions[80]. Financial Management - The company implemented strict budget management and cost control measures to enhance financial efficiency[42]. - The company is committed to energy-saving and efficiency-enhancing measures to reduce overall costs[31]. - The company has experienced a decline in cash flow due to increased operational costs and reduced sales, prompting a review of its financial strategies[179]. Environmental Compliance - The company emphasizes environmental protection and has implemented measures to ensure compliance with national and local environmental standards, achieving good economic and social benefits[64]. - The company has implemented a comprehensive air pollution control strategy, including methods for treating acidic and organic waste gases, ensuring compliance with emission standards[116]. - The company achieved compliance with discharge standards for both water and air pollutants during the reporting period[113]. Corporate Governance - The company has not disclosed any specific future guidance or performance outlook in the provided documents[24]. - The company has not reported any major events concerning its subsidiaries during the reporting period[130]. - The company has been penalized for information disclosure violations, with an administrative penalty decision issued by the China Securities Regulatory Commission[91]. Shareholder Information - The largest shareholder, Jiangsu Suhua Group Co., Ltd., holds 20.09% of the shares, totaling 68,334,137 shares[137]. - The second-largest shareholder, Xinyi City Huayi Investment Management Co., Ltd., holds 10.59% of the shares, totaling 36,001,020 shares[137]. - The total number of common stock shareholders at the end of the reporting period was 15,302[137].

Financial Performance - The company's operating revenue for 2019 was approximately ¥1.50 billion, an increase of 1.56% compared to ¥1.48 billion in 2018[16]. - The net profit attributable to shareholders was a loss of approximately ¥516.56 million, a 40.96% improvement from a loss of ¥874.95 million in 2018[16]. - The net cash flow from operating activities increased significantly to approximately ¥255.08 million, representing a 248.00% increase from ¥73.30 million in 2018[16]. - Total assets decreased by 23.37% to approximately ¥2.70 billion at the end of 2019, down from ¥3.53 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased by 31.49% to approximately ¥1.14 billion, compared to ¥1.66 billion at the end of 2018[16]. - The basic earnings per share for 2019 was -¥1.52, an improvement of 40.86% from -¥2.57 in 2018[16]. - The weighted average return on net assets was -37.00%, an improvement from -41.76% in the previous year[16]. - The company's revenue for the year reached 1,504.43 million yuan, representing a year-on-year growth of 1.56%[40]. - The net profit attributable to shareholders was a loss of 516.55 million yuan due to asset impairment provisions[40]. Business Segments - The main business segments include agricultural chemicals and pharmaceuticals, with products ranging from pesticides to various medicinal formulations[25]. - The pharmaceutical segment includes key products such as Donepezil Hydrochloride Tablets, which are used for treating Alzheimer's disease[26]. - The agricultural chemical segment generated CNY 1.38 billion, accounting for 91.42% of total revenue, with a year-on-year growth of 4.82%[47]. - The pharmaceutical segment's revenue decreased by 23.74% to CNY 129 million, down from CNY 169 million in 2018[47]. Strategic Initiatives - The company completed a significant asset restructuring by acquiring Ark Pharmaceutical, expanding its business into the pharmaceutical sector[15]. - The company is focused on expanding its agricultural chemical product lines, including fungicides and insecticides, to enhance market presence[25]. - The company operates a dual business model in agriculture and pharmaceuticals, leveraging synergies to maximize profits and enhance risk resistance[31]. - The company aims to achieve a dual-main business strategy, balancing agricultural chemicals and pharmaceutical production[37]. - The company is actively seeking growth opportunities through both organic and external development strategies[31]. Risk Factors - The company faces risks including market competition, safety and environmental risks, and potential delisting due to consecutive years of losses[4]. - The company has identified raw material price volatility as a risk factor that could impact economic performance due to external market influences[95]. - The company has experienced substantial losses over the past two years, with a reported net loss of approximately 516.56 million yuan in 2019 and 874.95 million yuan in 2018, leading to potential delisting risks if losses continue in 2020[97][103]. Operational Efficiency - The company emphasizes lean management to reduce costs and improve quality, aiming for overall cost reduction[31]. - The company successfully reduced accounts receivable by CNY 20 million, enhancing cash flow management[42]. - The company implemented a salary adjustment for all employees, focusing on performance while ensuring fairness[44]. - The company has established a "fund pool" to improve capital efficiency across its subsidiaries[42]. Environmental and Safety Management - The company has made significant progress in safety and environmental management, improving operational safety and compliance[41]. - The company emphasizes environmental protection and compliance with national standards, achieving good economic and social benefits through clean production and circular economy initiatives[94]. - The company has invested heavily in environmental governance and pollution prevention, implementing a comprehensive pollution control management system[159]. - The company conducts regular safety training for employees, ensuring compliance with safety regulations before they can work on-site[158]. Shareholder and Governance - The company has not distributed cash dividends for the past three years, with a consistent policy of not issuing dividends or capital reserves for stock increases[101][104]. - The company has established a commitment to avoid any direct or indirect competition with its subsidiaries[108]. - The company has fulfilled its commitments regarding the non-transfer of shares for 36 months from the date of listing[106]. - The company has a total of 19,810 common shareholders at the end of the reporting period[186]. Legal and Compliance Issues - The company is involved in several ongoing litigation cases, including a dispute with Fangzhou Pharmaceutical involving an amount of 21,096.82 thousand yuan[129]. - The company faced administrative penalties from the China Securities Regulatory Commission, which may affect its market reputation and operations[176]. - The company has taken legal measures to secure assets related to the improper fund occupation, including freezing properties and bank accounts[118]. Future Outlook - The company has outlined a detailed plan for 2020 aimed at achieving profitability and addressing the risk of stock delisting[97]. - The company aims to maximize the efficiency of limited resources by expanding into niche markets to meet the differentiated needs of high-end customers[86]. - The pharmaceutical segment faces both opportunities and challenges, with ongoing construction of new facilities and a clearer view of potential markets expected to boost sales performance[91].