江苏蓝丰生物化工股份有限公司 证券代码：002513 证券简称：蓝丰生化 江苏蓝丰生物化工股份有限公司投资者关系活动记录表 编号：2016-001 | --- | --- | --- | --- | |----------------|----------|---------------------------------------------|-------| | | | | | | 投资者关系活动 | √ | 特定对象调研 □分析师会议□媒体采访 □业绩说明 | | | 类别 | | 会 □新闻发布会 □路演活动 | | | | □ | 现场参观 □其他 （请文字说明其他活动内容） | | | 参与单位名称及 | 众悦资产 | 陈星颖 | | | 人员姓名 | 易融乐投 | 代艺榕 | | | | 华商基金 | 梁皓 | | | | 广证恒生 | 唐爱金 | | | | 国元证券 | 李艳荣 | | | | 国元证券 | 臧福江 | | | | 国元证券 | 金红 | | | | 中银国际 | 王军 | | | | 华泰证券 | 曹党合 | | | | 宝盈基金 | 陈金伟 | | | | 瀚信资产 | ...

江苏蓝丰生物化工股份有限公司 证券代码：002513 证券简称：蓝丰生化 江苏蓝丰生物化工股份有限公司投资者关系活动记录表 编号：2017-001 | --- | --- | --- | --- | |----------------|-------|---------------------------------------------|-------| | | | | | | 投资者关系活动 | √ | 特定对象调研 □分析师会议□媒体采访 □业绩说明 | | | 类别 | | 会 □新闻发布会 □路演活动 | | | | □ | 现场参观 □其他 （请文字说明其他活动内容） | | | | | 本次参与人员均为自然人中小投资者 | | | | | 陈勇丽 李军 | | | | | 孙先卫 许先超 | | | | | 陈立军 张刚 | | | | | 王虎田 厚坡 | | | | | 鲍运喜 周玉皎 | | | 参与单位名称及 | | 周素皎 邵静 | | | 人员姓名 | | 陈柯锦 许晴 | | | | | 许卫 付艳芳 | | | | | 许增兰 陈永静 | | | | | 安志凌 戴宏勇 | | ...

Group 1: Company Overview - Jiangsu Lanfeng Bio-chemical Co., Ltd. is listed with the stock code 002513 and abbreviated as Lanfeng Biochemical [1] Group 2: Investor Relations Activity - The investor relations activity took place on September 15, 2017, from 14:30 to 16:30 in the company meeting room [2] - The meeting involved a specific audience survey conducted by Haitong Securities with industry researcher Li Zhi [2] Group 3: Product and Sales Information - The main agricultural chemical products include fungicides (e.g., Multi-sterilizing agent, Methyl thiophanate), herbicides (e.g., Cyhalofop-butyl), and insecticides (e.g., Chlorpyrifos) [2] - Sales of Cyhalofop-butyl, Isoprothiolane, and phosgene intermediates are performing well, while sales of Multi-sterilizing agent and Methyl thiophanate are stable [2] Group 4: Strategic Transition to Pharmaceuticals - The company is transitioning towards the pharmaceutical sector due to the cyclical nature, heavy asset requirements, low profit margins, and environmental pollution associated with the agricultural chemical industry [3] - The pharmaceutical industry offers strong anti-cyclical characteristics, lighter assets, and higher profit margins, making it a complementary business model [3] Group 5: Ark Pharmaceutical's Product Line - Ark Pharmaceutical's main products include traditional Chinese medicine and Western medicine for treating Alzheimer's, with notable products being Compound Banzhilan Capsules and Donepezil Hydrochloride Tablets [3] - The market prospects for anti-tumor and anti-aging products are broad due to the aging population in China [3] Group 6: New Factory Construction - Ark Pharmaceutical is investing approximately 200 million RMB to build a new production facility to meet the new GMP certification requirements, expected to be submitted by May 2018 [3] - The new facility is designed to high technical standards, enhancing operational management and risk prevention [3] Group 7: Future Acquisition Plans - The company has completed a two-month period without planning any major asset restructuring and remains committed to its strategic transition towards pharmaceuticals [4] - The company aims to seek synergistic and performance-supported pharmaceutical companies for acquisition to ensure long-term stable development [4]

Financial Performance - The company's revenue for Q3 2022 was ¥354,200,793.01, a decrease of 20.47% compared to the same period last year[4]. - The net profit attributable to shareholders was -¥1,784,157.70, a decline of 93.79% year-on-year[4]. - Total operating revenue for the period reached ¥1,238,390,567.48, an increase of 14.1% compared to ¥1,085,671,226.21 in the previous period[17]. - The net profit for the period was ¥673,458.03, a significant recovery from a net loss of ¥42,229,317.91 in the same period last year[19]. - The basic and diluted earnings per share were both ¥0.002, compared to a loss per share of ¥0.1242 in the previous year[19]. Assets and Liabilities - The total assets at the end of the reporting period reached ¥2,102,291,260.62, an increase of 21.66% from the end of the previous year[4]. - The company's total assets as of September 30, 2022, amount to ¥2,102,291,260.62, an increase from ¥1,727,949,962.51 at the beginning of the year[15]. - Current assets decreased to ¥495,797,583.81 from ¥546,039,989.40 at the beginning of the year[14]. - The total liabilities increased to ¥1,421,407,702.72, compared to ¥1,061,312,988.31 in the previous period, indicating a rise of 33.9%[16]. - The company's total liabilities increased by 112.03% to ¥486,209,362.19, primarily due to stock incentive plans and pending payments for equipment purchases[9]. Cash Flow - The cash flow from operating activities showed a net outflow of -¥52,841,683.43, representing a decrease of 191.30%[4]. - Cash flow from operating activities showed a net outflow of ¥52,841,683.43, contrasting with a net inflow of ¥57,873,864.42 in the prior period[20]. - The cash inflow from investment activities was ¥66,014,863.23, compared to a cash outflow of ¥22,214.61 in the previous period[20]. - The total cash inflow from financing activities reached 211,943,100.00 CNY, compared to 136,000,000.00 CNY in the same period last year, indicating a 55.8% increase[21]. - The net cash flow from financing activities was 18,082,296.41 CNY, a recovery from the previous year's negative cash flow of -96,660,240.95 CNY[21]. Inventory and Goodwill - The company reported a significant increase in inventory, which rose by 44.63% to ¥191,917,686.46 due to the acquisition of a subsidiary[8]. - The goodwill on the balance sheet reached ¥200,000,000.00, resulting from the acquisition of Jiangxi Deshipu Company[8]. - Inventory increased significantly to ¥191,917,686.46 from ¥132,696,240.18 at the beginning of the year, reflecting a growth of approximately 44.5%[15]. Research and Development - The company’s research and development expenses decreased by 71.50% to ¥3,138,082.33 compared to the previous year[9]. - Research and development expenses decreased to ¥3,138,082.33 from ¥11,010,052.54, reflecting a reduction of 71.5%[17]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 22,566[11]. - The largest shareholder, Jiangsu Suhua Group, holds 9.18% of shares, totaling 34,334,137 shares[11]. - The company has a significant amount of pledged shares, with 17,000,000 shares pledged by Hainan Jinsui International Holdings[11]. Other Financial Information - The company reported a financial asset impairment loss of ¥6,329,745.82, compared to a gain of ¥2,716,162.69 in the previous period[18]. - The company received government subsidies amounting to ¥4,810,265.53, an increase of 269.52% year-on-year[9]. - The company received 101,550,000.00 CNY from investment absorption in Q3 2022, reflecting strong investor confidence[21]. - The company paid 82,000,000.00 CNY in debt repayment during the quarter, down from 122,041,192.54 CNY in the same period last year[21]. - The company did not undergo an audit for the Q3 2022 report[22]. - The report was released by the board of directors on October 27, 2022[23].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥884,189,774.47, representing a 38.09% increase compared to ¥640,322,365.49 in the same period last year[23]. - The net profit attributable to shareholders of the listed company reached ¥2,457,615.73, a significant turnaround from a loss of ¥13,507,735.71 in the previous year, marking an increase of 118.19%[23]. - Basic and diluted earnings per share improved to ¥0.0070 from -¥0.0397, reflecting a 117.63% increase[23]. - The company's revenue for the reporting period reached ¥884.19 million, representing a 38.09% increase compared to ¥640.32 million in the same period last year[45]. - The company's revenue for the agricultural chemicals segment reached ¥823,779,589.65, representing a year-on-year increase of 28.65%[48]. - The gross profit margin for the agricultural chemicals segment decreased by 3.81% compared to the previous year, now standing at 4.77%[48]. - The company reported a total revenue of 1,440,815,000 CNY for the period, with a net profit of 199,948,300 CNY[65]. - The company reported a total comprehensive income of 1.1 billion yuan for the first half of 2022, reflecting a strong performance in its operations[182]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,117,506,622.68, up 22.54% from ¥1,727,949,962.51 at the end of the previous year[23]. - Total assets reached 2.12 billion yuan, up 22.54% from the previous year, while total liabilities increased by 36.44% to 1.45 billion yuan[37]. - The company's total assets increased to ¥2,292,564,650.66 as of June 30, 2022, up from ¥2,089,255,953.94 at the beginning of the year[162]. - Total liabilities increased to CNY 1,448,026,001.05 from CNY 1,061,312,988.31, marking a rise of about 36.4%[158]. - The total liabilities at the end of the current period are 1,098 million yuan, which is a decrease from 1,274 million yuan in the previous year, showing a reduction of approximately 14%[186]. Cash Flow - The net cash flow from operating activities was -¥46,181,038.45, a decline of 204.28% compared to ¥44,283,807.14 in the same period last year[23]. - The company reported a total cash and cash equivalents balance of ¥17,942,975.98 at the end of the first half of 2022, down from ¥140,497,478.41 at the end of the first half of 2021[172]. - The company experienced a net cash decrease of ¥15,024,050.46 in the first half of 2022, compared to a decrease of ¥86,297,489.79 in the first half of 2021[172]. - The cash outflow for financing activities totaled 152,776,767.41 CNY, which is an increase from 133,832,065.67 CNY in the prior period[174]. Research and Development - The company's R&D investment decreased by 68.03% to ¥2.27 million from ¥7.09 million due to capitalized expenditures on collaborative projects with research institutions[45]. - The company has allocated 44 million yuan for research and development in the first half of 2022, emphasizing its commitment to innovation[182]. - Research and development expenses decreased to ¥2,266,478.70 from ¥7,089,994.86 in the first half of 2021, a reduction of approximately 68%[165]. Market and Competition - The agricultural pesticide industry remains in a high prosperity phase, despite challenges from rising production costs and supply chain disruptions[31]. - The company is facing intense market competition in the pesticide industry, with many small manufacturers posing a challenge despite its strong production capacity and reliable product quality[67]. - To mitigate market competition risks, the company plans to accelerate technological upgrades, reduce costs, and expand into emerging markets[67]. - The company is exploring potential mergers and acquisitions to enhance its competitive edge in the market[182]. Environmental and Safety Measures - The company has implemented a comprehensive waste gas treatment plan, achieving significant improvements in equipment integration, automation, and pipeline sealing[84]. - The company has made substantial investments in pollution control technologies, leading to a stable and continuous reduction in various pollutants[82]. - The company has established a hazardous waste temporary storage facility that meets the requirements of the Hazardous Waste Storage Pollution Control Standards[86]. - The company organized a total of 7 workshop-level drills and 1 hazardous waste special drill in the first half of 2022[88]. Shareholder and Stock Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company launched a stock incentive plan, granting up to 33.95 million restricted shares at a price of 3.00 CNY per share to attract and retain key talent[76]. - The stock incentive plan is designed to comply with relevant regulations and is expected to contribute positively to the company's long-term performance[133]. - The total number of restricted shares before the change is 25,670,446, representing 7.55% of the total shares[132]. Legal Matters - The company is involved in a lawsuit regarding performance compensation amounting to 62.5 million yuan, with ongoing enforcement proceedings[105]. - The company is pursuing a performance compensation of 55.02 million yuan due to a court ruling against a former employee[106]. - A court has ordered the immediate execution of a compensation amounting to 69 million yuan from a former employee's bank account[107]. - The company is involved in a legal dispute with Beijing Bochengli New Environment Technology Co., with a claim amount of 13.33 million yuan[108].

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].