Group 1: Company Competitive Advantages - The company has over 20 years of experience in biological fermentation production, making it one of the largest producers of feed-grade gold mycelium globally [1] - Key competitive advantages include technological superiority, regional advantages, customer and market network marketing advantages, product quality advantages, and brand advantages [2] Group 2: Target Consumer Groups - The main consumer groups for the company's products include domestic and international animal health product companies, feed companies, and poultry and livestock farms [2] Group 3: Stock Issuance Progress - As of November 26, 2015, the China Securities Regulatory Commission approved the company's application for a non-public stock issuance, with further steps pending the receipt of formal approval documents [2] Group 4: Strategic Development Goals - The company's strategic goal is to create a world-leading animal health product enterprise, consolidating its advantages in biological fermentation and drug feed additives while innovating and expanding into new veterinary biological products [3]

Group 1: Company Overview - The company, Jinhe Biological Technology Co., Ltd., has over 20 years of development and primarily engages in the production and sales of feed additives, with a focus on feed-grade chlortetracycline [2][3] - Jinhe is the largest global producer of feed-grade chlortetracycline [3] Group 2: Product Functions - Feed-grade chlortetracycline is used to promote animal growth, improve feed conversion rates, and prevent animal diseases. It can reduce mortality rates and increase weight gain and feed conversion rates when fed at low doses [3] Group 3: Fundraising and Financials - The total amount raised from the non-public offering of shares is 47.34 million yuan, with the net proceeds intended to supplement the company's working capital after deducting issuance costs. Approval from the China Securities Regulatory Commission is still pending [3][4] Group 4: Raw Material Impact - The cost of corn, which constitutes approximately 30% to 50% of the company's main business costs, is influenced by various factors including climate, national corn reserve policies, and supply-demand relationships [4]

Group 1: Company Product Advantages - The main advantages of the company's feed additive product,金霉素, include broad-spectrum antibacterial effects, low cost, high safety, and no residue [4] - The product has a low risk of cross-infection between humans and animals, and fewer drug interactions [4] Group 2: Market Performance - The company has signed a five-year procurement agreement with Zoetis in the U.S. for金霉素, effective until December 31, 2019, with good execution so far [4] - Domestic demand for金霉素 is expected to grow due to the intensification of pig farming and standardized drug use [4] Group 3: Industry Barriers - Key barriers to entering the feed additive industry include strict production licensing regulations, technical barriers, financial barriers, and brand reliability [5] Group 4: Future Development Plans - The company aims to become a world-leading animal health product enterprise, focusing on enhancing its advantages in biological fermentation and feed additives [5] - Plans include developing new products, extending the product line, expanding business scale, and enhancing global market influence [5] - The company is also exploring opportunities in environmental protection, particularly in wastewater treatment, to create new profit growth points [5]

Group 1: Company Overview - The company operates in the fields of veterinary drug additives, animal vaccines, animal health products, corn starch processing, and environmental technology [2] - The vision is to create a world-leading animal health product enterprise, enhancing core competitiveness and expanding business scale [2] Group 2: Future Development Plans - The company aims to strengthen its advantages in biological fermentation and drug feed additives while actively developing new products to increase added value [2] - Plans to expand into wastewater treatment as a new profit growth point [2][3] Group 3: Environmental Technology - Inner Mongolia Jinhe Environmental Technology Co., Ltd. focuses on high-concentration industrial wastewater treatment, with a daily treatment capacity of 10,000 tons [3] - The company employs a third-party governance model to improve treatment efficiency and reduce pollution control costs [3] Group 4: Financial Information - The lock-up period for the non-public stock issuance is three years, with no performance commitments or leverage involved [3] Group 5: Product Information - The main function of feed-grade gold mycin is to promote animal growth, improve feed conversion rates, and prevent animal diseases [3]

Group 1: Market Demand and Growth Drivers - The main drivers for the growth of the feed-grade gold mycin industry include an increase in breeding volume, higher per-animal usage, and rising prices. The domestic market has significant long-term growth potential due to intensified farming practices and improved awareness of medication among farmers [2][3]. - The expansion into emerging foreign markets is expected to create substantial demand growth for gold mycin [3]. Group 2: Company Developments and Strategic Positioning - After acquiring Panfield, the subsidiary Pharmaway has shifted its focus to directly producing and selling animal health products in the U.S. market, including gold mycin and other feed additives [3]. - The company successfully completed a non-public stock issuance in February 2016, with future financing activities to be determined based on strategic planning and development [4]. Group 3: Future Plans and Environmental Initiatives - The company aims to become a world-leading animal health product enterprise, enhancing its competitive edge in biopharmaceuticals and feed additives while actively developing new products and expanding its market influence [4]. - The subsidiary Inner Mongolia Jinhe Environmental Technology Co., Ltd. focuses on high-concentration industrial wastewater treatment, currently processing 10,000 tons of wastewater daily, with plans for nationwide business expansion [5]. Group 4: Acquisitions and Product Diversification - The acquisition of a 67% stake in Hangzhou Jianliang Veterinary Biological Products Co., Ltd. is significant due to the stringent regulatory environment for veterinary biological products, allowing the company to quickly enter the vaccine sector and diversify its product offerings [6].

Group 1: Financial Performance and Contracts - The company is currently undergoing a private placement, with announcements to be made according to regulatory procedures [1][2] - The cash flow situation has been disclosed in the company's financial reports [2] - The gross profit margin and net profit margin have increased compared to last year due to better vaccine sales [2][3] Group 2: Product Development and Market Strategy - The company is actively developing vaccines, with a focus on products like the dual vaccine for pigs and the brucellosis vaccine, expected to be registered by mid-next year [5][12] - The company plans to expand its production capacity for gentamicin, with a new project of 60,000 tons expected to be operational by the second half of next year [9][12] - The company is also preparing to launch a pet care division, focusing on deworming products [10][12] Group 3: Market Conditions and Challenges - The company has faced challenges due to rising raw material prices, leading to a 15% price increase for gentamicin [7] - The impact of the pandemic on sales was significant in 2020, but recovery is underway, with domestic sales of gentamicin gradually increasing [7][12] - The company is monitoring the competitive landscape, particularly regarding alternative products being developed by competitors [4][9] Group 4: Investor Relations and Communication - The company emphasizes transparency and timely communication with investors, adhering to legal disclosure requirements [11] - There is a commitment to improving investor relations and providing detailed updates on product registrations and market strategies [11][12] - The company is open to suggestions for enhancing investor communication and engagement [11]

Group 1: Company Growth Strategy - The company aims to achieve a revenue of approximately 5 billion by 2025, with a net profit of 600 million and a market value of 20 billion [1][5][9] - The strategic plan was developed in 2020 and focuses on the animal health industry, with agricultural product processing and environmental treatment as auxiliary sectors [1][5] Group 2: Stock Performance and Market Communication - The company's stock price has been low for several years, attributed to various factors including market conditions and internal communication issues [2][3] - A share buyback plan has been initiated to boost stock prices, with future measures to be considered based on market conditions [2][3][6] Group 3: Financial Performance and Dividends - The company did not distribute cash dividends in 2021 due to poor performance influenced by upstream and downstream industry factors, and to allocate funds for the share buyback plan [4][9] - The company is focused on maximizing shareholder interests and aims for long-term returns [4][9] Group 4: Product Pricing and Market Conditions - The price of the company's gold mildew product is currently around 19,000 yuan per ton, showing an increase compared to last year [5][8] - The company is preparing to launch a brucellosis vaccine, expected to receive certification in 4-6 months, with production planned for the fourth quarter [8][9] Group 5: Competitive Positioning - The main competitors in the chemical drug sector include companies like Chia Tai Animal Health, with the company holding advantages in production capacity, market scale, and technology [5][9] - The company aims to expand its vaccine business, targeting a revenue of over 700 million by 2025, with a projected budget of 340 million for 2022, reflecting a growth of around 20% [8][9]

金河生物科技股份有限公司 2022 年第三季度报告 证券代码：002688 证券简称：金河生物 公告编号：2022-063 □是 否 一、主要财务数据 金河生物科技股份有限公司 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在虚假记载、误导性陈述或重 大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、 完整。 3.第三季度报告是否经过审计 2022 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。 重要内容提示： （一） 主要会计数据和财务指标 适用 □不适用 单位：元 | 项目 | 本报告期金额 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | --- | | 非流动资产处置损益（包括 已计提资产减值准备的冲销 | 41,872.36 | -3,894,793.00 | | | 部分） | | | | | 计入当期损益的政府补助 | | | | | （与公司正常经营业务密切 | | | | ...

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 1,125,411,759.81, representing a 17.11% increase compared to CNY 961,006,050.74 in the same period last year[19]. - The net profit attributable to shareholders decreased by 15.27% to CNY 86,691,851.01 from CNY 102,316,936.86 year-on-year[19]. - The net cash flow from operating activities fell by 32.68% to CNY 73,560,711.95, down from CNY 109,272,456.61 in the previous year[19]. - Basic and diluted earnings per share decreased by 31.04% to CNY 0.1111 from CNY 0.1611 in the same period last year[19]. - The net profit after deducting non-recurring gains and losses was CNY 83,731,221.29, down 9.46% from CNY 92,478,789.74 year-on-year[19]. - The company reported a decrease in the weighted average return on net assets to 3.50% from 6.22% in the previous year[19]. - The company reported a total comprehensive income of CNY 132,235,235.30 for the first half of 2022, compared to CNY 116,593,404.52 in the previous year[196]. - The total profit amounted to CNY 44,860,214.58, compared to CNY 43,225,304.65 in the previous year, indicating an increase of about 3.8%[199]. Revenue Breakdown - Revenue from veterinary chemical drugs was 482.95 million yuan, a decrease of 1.58%, accounting for 42.91% of total revenue[37]. - Revenue from veterinary biological products was 143.99 million yuan, down 10.41%, making up 12.80% of total revenue[37]. - Environmental business revenue increased by 70.68% to 58.68 million yuan, representing 5.21% of total revenue[37]. - The agricultural product processing segment saw a revenue increase of 59.23% to 368.81 million yuan, accounting for 32.77% of total revenue[37]. - The company's revenue from the animal health segment decreased by CNY 29.0013 million, a decline of 4.37% compared to the same period last year[39]. Cost and Expenses - Operating costs rose to CNY 803.30 million, reflecting a 28.41% increase year-on-year, with significant contributions from the animal health and agricultural processing sectors[59]. - The average gross margin for biological products is reported at 58.72% due to favorable market demand and tax incentives[36]. - The average procurement price of corn starch decreased by approximately 7.40% compared to the same period last year, while coal prices increased by over 59%[40]. - The financial expenses decreased significantly by 87.48% to CNY 4.28 million, due to lower borrowing costs and favorable exchange rate impacts[59]. Investment and R&D - The company reported a 20.93% increase in R&D investment, totaling CNY 46.08 million, aimed at enhancing product development and market competitiveness[59]. - The company continues to invest in vaccine product R&D, collaborating with strong research institutions to reduce associated risks[105]. Market and Operational Strategy - The company is focusing on new product development in veterinary drugs, including new vaccines and pet medications[27]. - The company anticipates a favorable market for veterinary chemical drugs and vaccines due to the recovery in pig farming profitability in 2022[36]. - The company is positioned to strengthen its leading role in the veterinary drug industry as market concentration increases following the implementation of new GMP standards[34]. - The company is expanding its market presence internationally, with significant sales in the U.S., Canada, and several Latin American countries[28]. Environmental Compliance - The company reported a total emission of 52.27 tons of particulate matter, with a concentration of 12.23 mg/m³, complying with the emission standard[114]. - Sulfur dioxide (SO2) emissions were recorded at 68.626 tons, with a concentration of 123.01 mg/m³, below the standard limit of 200 mg/m³[114]. - Nitrogen oxides (NOX) emissions totaled 105.302 tons, with a concentration of 186.505 mg/m³, adhering to the emission standard[114]. - The company has implemented real-time monitoring systems for emissions, ensuring compliance with environmental regulations[116]. - The company has established a comprehensive pollution prevention and control system, ensuring the effective treatment of emissions and wastewater[117]. Fundraising and Financial Management - The total amount of funds raised by the company through a non-public offering was approximately RMB 820 million, with a net amount of RMB 802 million after deducting issuance costs[78]. - The company has established a fundraising management system to ensure compliance with relevant laws and regulations, and the funds are stored in a dedicated account[81]. - The company has not engaged in any securities or derivative investments during the reporting period[75][76]. - The company plans to continue investing the raised funds into its projects as per the approved budget[81]. Shareholder Information - The company plans to repurchase shares with a total fund of no less than RMB 120 million and no more than RMB 200 million, having repurchased 10,010,010 shares, accounting for 1.28% of the total share capital, with a total transaction amount of RMB 45,982,364[156]. - The largest shareholder, Inner Mongolia Jinhe Holdings Co., Ltd., holds 241,758,670 shares, representing 30.98% of total shares[172]. - The company’s stock structure includes 620,866,224 unrestricted shares, which represent 79.56% of the total shares[168]. - The company’s total share capital remains unchanged at 780,422,398 shares, indicating stability in its equity structure[169].

Financial Performance - The company's operating revenue for 2021 was ¥2,077,988,730.16, representing a 14.51% increase compared to ¥1,814,638,965.54 in 2020[27]. - The net profit attributable to shareholders for 2021 was ¥93,992,380.84, a decrease of 19.89% from ¥117,324,525.93 in 2020[27]. - The net profit after deducting non-recurring gains and losses was ¥80,041,884.87, down 20.00% from ¥100,055,200.95 in 2020[27]. - The net cash flow from operating activities decreased by 40.72% to ¥152,978,505.57 from ¥258,079,960.72 in 2020[27]. - The total assets at the end of 2021 were ¥4,064,525,859.70, a 20.36% increase from ¥3,376,867,194.00 at the end of 2020[28]. - The net assets attributable to shareholders increased by 50.98% to ¥2,438,211,286.94 from ¥1,614,883,310.48 at the end of 2020[28]. - The company reported a weighted average return on equity of 4.81% for 2021, down from 7.13% in 2020[28]. - The first quarter of 2021 saw a net profit of ¥70,001,205.48, while the fourth quarter reported a net loss of ¥16,285,306.08[31]. - The company achieved operating revenue of 2,077.99 million CNY, an increase of 14.51% year-on-year, with the main revenue sources being veterinary chemical drugs (1,066.09 million CNY, +14.01%), veterinary biological products (291.69 million CNY, +8.66%), and environmental protection business (86.02 million CNY, +54.17%) [49]. - Net profit attributable to shareholders decreased to 93.99 million CNY, down 19.89% year-on-year, while the net profit after deducting non-recurring gains and losses was 80.04 million CNY, a decrease of 20.00% [49]. Cost and Pricing Challenges - The company reported a significant increase in raw material costs, particularly corn starch, which heavily impacts the cost structure of its main product, Jinmeisu, leading to reduced profit margins[6]. - The average price of corn increased by 609.88 CNY/ton (up 28.56%), and coal prices surged by 104.73%, significantly squeezing the company's profit margins [49]. - The overall gross profit margin decreased due to a shift in sales structure towards lower-margin products and the inability to fully pass on cost increases to customers [54]. - The company faced challenges due to low domestic pork prices impacting the purchasing willingness for animal health products, leading to reduced sales volume [50]. - Operating costs increased by 20.45% year-on-year to 1,426.92 million CNY, with significant increases in costs for veterinary chemical drugs (+24.40%) and environmental protection business (+63.66%) [51]. Market and Industry Trends - The livestock industry remains sluggish due to the pig cycle, impacting the company's animal health business, which is closely tied to this sector[8]. - The company anticipates that the veterinary medicine sales in 2021 could reach ¥700 billion, driven by the growth of the livestock industry[37]. - In 2021, China's pig production capacity continued to recover, with pig slaughter reaching 67.128 million heads, an increase of 27.40% year-on-year[40]. - The implementation of the new veterinary GMP on June 1, 2022, is expected to significantly change the industry concentration over the next 2-3 years[37]. - The company holds a leading position in the veterinary chemical drug market, particularly in the production of chlortetracycline, with an expected increase in market space as farming scales up[40]. Research and Development - The company has been investing heavily in vaccine product research and development, which involves long cycles and high costs, presenting inherent uncertainties[9]. - The company is focusing on the development of new products in the veterinary vaccine sector, with plans to launch several new vaccines in the coming years[40]. - The company has a strong emphasis on research and development, with four major technology platforms for vaccine production, leading to significant advancements[47]. - The company is developing a Brucella gene deletion vaccine, with registration materials submitted and under review, expected to be a significant profit growth point[82]. - R&D investment increased by 9.80% to ¥87,289,569.25 in 2021, accounting for 4.20% of operating revenue[84]. Strategic Initiatives and Acquisitions - The company is actively pursuing a strategy of mergers and acquisitions, including the acquisition of Liangshan Ruiyi in Shandong, to support future growth[57]. - The company has acquired a 70% stake in Liangshan Ruyi Yellow River Floodplain Sewage Treatment Co., Ltd., enhancing its capabilities in wastewater treatment and environmental technology[77]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product range[100]. - The company plans to continue expanding its market share by developing relationships with large breeding groups to influence smaller enterprises [55]. Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management team[4]. - The company operates under the supervision of the China Securities Regulatory Commission and discloses its annual reports through various media outlets[23]. - The company has engaged Xinyong Zhonghe Accounting Firm for its auditing needs, ensuring compliance with financial regulations[26]. - The company has established a robust governance structure, ensuring clear separation of powers and responsibilities among shareholders, the board, and management[133]. - The company maintains a governance structure that aligns with legal and regulatory requirements, showing no significant discrepancies[137]. Environmental and Sustainability Efforts - The company has committed to sustainable practices in its operations, aligning with environmental regulations and market expectations[100]. - The company has upgraded its boiler system to ensure compliance with emission standards, specifically for a steam boiler operating at 3.82 Mpa and 450℃[196]. - The wastewater treatment company has initiated a recycled water project with a processing capacity of 10,000 tons per day, reducing external wastewater discharge[197]. - The company has implemented energy-saving modifications by replacing 12 motors in the fermentation workshop with direct-drive motors, which reduces energy consumption and noise[196]. - The company’s environmental protection subsidiary, Jinhe Environmental Protection, is a leader in industrial wastewater treatment and has developed proprietary technology for comprehensive pollution management[197]. Shareholder and Management Information - The profit distribution plan approved by the board proposes no cash dividends or stock bonuses for shareholders, maintaining a base of 780,422,398 shares[10]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 843.86 million[161]. - The company’s board of directors held a total of 7 meetings during the reporting period, with key resolutions announced on March 1, March 12, and March 30, 2021[162]. - The company has ensured timely and full payment of remuneration to its directors, supervisors, and senior management during the reporting period[158]. - The company has a complete salary system based on a multi-position skill salary management system, with basic salary and performance bonuses[178].