Financial Performance - The company's revenue for Q1 2022 was CNY 519,765,405.51, representing a 12.46% increase compared to CNY 462,170,158.21 in the same period last year[4] - Net profit attributable to shareholders decreased by 54.61% to CNY 31,771,635.03 from CNY 70,001,205.48 year-on-year[4] - The total profit for the period decreased by 44.52%, amounting to CNY 46,800,000.00, primarily due to increased raw material and energy costs[10] - The company reported a significant decrease in net profit margin, with the basic earnings per share dropping by 63.64% to CNY 0.04 from CNY 0.11[4] - Basic earnings per share decreased by CNY 0.07, a decline of 63.64%, mainly due to reduced net profit attributable to the parent company and an increase in total share capital from a private placement[14] - Net profit for Q1 2022 was CNY 43,496,662.89, a decrease of 44.4% from CNY 78,069,980.89 in Q1 2021[31] - The company reported a decrease in comprehensive income to CNY 41,952,788.32 from CNY 80,648,225.78 in the previous year, indicating a decline of 48.0%[31] Cash Flow and Liquidity - The net cash flow from operating activities improved significantly, reaching CNY 36,811,868.07, a 245.37% increase from a negative CNY 25,322,456.62 in the previous year[4] - The net cash flow from operating activities increased by CNY 62,134,324.69, an increase of 245.37%, driven by increased operating revenue and cash collection[15] - Cash and cash equivalents net increase decreased by CNY 94,125,422.80, a decline of 110.14%, mainly due to the completion of a private placement in July of the previous year[17] - The cash inflow from financing activities decreased by CNY 219,149,945.66, a decline of 31.81%, due to reduced borrowing from financial institutions[16] - The net cash flow from financing activities decreased by CNY 156,825,905.28, a decline of 88.11%, reflecting a strategic adjustment in financing to reduce financial costs[16] - The company experienced a net decrease in cash and cash equivalents of 8,666,247.65, contrasting with an increase of 85,459,175.15 in the prior year[35] - The cash inflow from financing activities totaled 469,706,529.34, down from 688,856,475.00 year-over-year[35] Assets and Liabilities - The company's total assets increased by 3.45% to CNY 4,204,623,492.54 compared to CNY 4,064,525,859.70 at the end of the previous year[4] - The total liabilities increased to CNY 1,435,183,626.22 from CNY 1,368,031,689.97, marking a rise of 4.9%[30] - The total equity attributable to shareholders of the parent company was CNY 2,469,375,524.97, up from CNY 2,438,211,286.94, reflecting a growth of 1.3%[30] - The company's cash and cash equivalents amounted to RMB 576,243,020.41, up from RMB 517,659,268.06, indicating an increase of about 11.3%[26] - Accounts receivable decreased to RMB 335,716,921.62 from RMB 352,760,335.51, representing a decline of approximately 4.8%[26] - Inventory levels rose to RMB 606,560,301.70 from RMB 577,196,806.30, marking an increase of around 5.1%[27] - Short-term borrowings increased to RMB 908,849,684.56 from RMB 833,899,423.85, which is an increase of about 9.0%[27] Operational Efficiency and Cost Management - The gross profit margin was impacted by rising costs, with operating costs increasing by 32.43% to CNY 88,591,761.06 compared to the same period last year[9] - Financial expenses rose by 33.23% to CNY 17,020,000.00, primarily due to exchange losses from currency fluctuations[9] - Other income increased by 51.26% to CNY 5,973,000.00, mainly due to higher government subsidies received during the period[9] - The company plans to focus on improving operational efficiency and managing costs in response to the challenging market conditions[11] - Research and development expenses for Q1 2022 were CNY 19,280,982.50, an increase of 11.0% from CNY 17,370,744.69 in Q1 2021[30] Projects and Future Plans - The company is constructing a new project with an annual production capacity of 52,000 tons of veterinary-grade high-efficiency gold streptomycin and 1,000 tons of hydrochloride gold streptomycin, expected to complete civil engineering by the end of 2022[23] - The company has initiated the "Hydrochloride Doxycycline Project" in collaboration with related parties, with construction expected to be completed and trial production by the end of 2022[24]

Financial Performance - The company reported a total operating revenue of CNY 2,077,988,730.16 for 2021, representing a year-on-year increase of 14.51% compared to CNY 1,814,638,965.54 in 2020[63]. - 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 attributable to shareholders 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 was ¥152,978,505.57, a decline of 40.72% compared to ¥258,079,960.72 in 2020[27]. - The company achieved operating revenue of 2,077.99 million CNY, a year-on-year increase of 14.51%[49]. - The net profit attributable to shareholders decreased to 93.99 million CNY, down 19.89% compared to the previous year[49]. - The overall gross profit margin decreased due to rising costs and changes in product sales structure, leading to lower profitability[55]. - The company reported a significant difference of 25.30% between net cash flow from operating activities and net profit, primarily due to non-cash factors like depreciation[88]. Cost and Expenses - 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 cost of goods sold increased to 1,426.92 million CNY, a year-on-year increase of 20.45%[51]. - The price of corn increased by 609.88 CNY/ton, representing a rise of 28.56% year-on-year, significantly impacting profit margins[49]. - The cost of raw materials for veterinary chemical drugs was CNY 402,078,509.76, accounting for 56.79% of operating costs, a decrease of 2.90% compared to 2020[72]. - The labor cost for veterinary chemical drugs increased to CNY 55,465,059.38, representing 7.83% of operating costs, down by 0.87% year-on-year[72]. - The energy cost for veterinary chemical drugs rose to CNY 117,274,865.61, making up 16.56% of operating costs, an increase of 1.13% from the previous year[72]. Market and Industry Trends - The livestock industry remains sluggish due to the pig cycle, which poses a risk to the company's animal health business as it is closely tied to the upstream industry[8]. - The company expects the veterinary medicine sales to reach ¥700 billion in 2021, driven by the growth of the livestock industry[37]. - In 2021, China's pig production capacity continued to recover, with pig slaughtering reaching 67.128 million heads, a year-on-year increase of 27.40%[40]. - The implementation of the new veterinary GMP on June 1, 2022, is anticipated to significantly change the industry concentration over the next 2-3 years[37]. Research and Development - The company is investing heavily in vaccine product development, which involves long cycles and high costs, presenting uncertainties in research outcomes[9]. - The company has a strong focus on R&D, with four major technology platforms for vaccine development, enhancing its competitive edge[47]. - The company is developing a Brucella gene deletion vaccine, with registration materials submitted and under review, expected to be a significant future revenue growth point[83]. - The company has completed clinical trials for a pig viral inactivated vaccine and is preparing to submit registration materials, aiming to enhance its vaccine product line[83]. - R&D investment increased by 9.80% from 79,499,200.00 CNY in 2020 to 87,289,569.25 CNY in 2021, while the proportion of R&D investment to operating revenue decreased by 0.18% to 4.20%[85]. Strategic Initiatives - The company is actively pursuing a strategy of mergers and acquisitions, having acquired Liangshan Ruyi in Shandong to support future growth[58]. - The company is focusing on strategic adjustments in its industrial structure to enhance product value and expand its business scale[53]. - The company plans to continue expanding its market share by developing relationships with large breeding group clients[56]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product portfolio[101]. Governance and Management - The company has established a complete and independent governance structure, ensuring no interference from the controlling shareholder in operational decisions[138]. - The board of directors consists of nine members, including three independent directors, meeting the requirement of one-third independence[134]. - The management team strictly adheres to the company's articles of association and board resolutions, ensuring no overstepping of authority[135]. - The company has implemented a robust internal control management system to enhance governance and compliance[133]. Environmental Sustainability - The company has successfully implemented a project for zero wastewater discharge, further enhancing its environmental sustainability efforts[198]. - The company’s emissions monitoring system includes real-time monitoring of particulate matter, SO2, and NOx to ensure compliance with national standards[196]. - Jinhe Environmental Company is a leader in industrial wastewater treatment and has developed the "JAOO" process for comprehensive solutions[196]. - The company has received multiple environmental impact assessment approvals for various projects since 2014, ensuring compliance with environmental regulations[198]. Future Outlook - The company anticipates continued growth in revenue and profitability in the upcoming fiscal year, driven by increased demand for its products[145]. - The company has set a revenue guidance for 2022, projecting a growth rate of 25% to reach CNY 1.875 billion[155]. - New product launches are expected to contribute an additional 300 million yuan in revenue over the next year[154]. - The company is actively pursuing market expansion and new product development strategies[93].

金河生物科技股份有限公司 2021 年第三季度报告 证券代码：002688 证券简称：金河生物 公告编号：2021-079 金河生物科技股份有限公司 2021 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: 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 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比上 | | --- | --- | --- | --- | --- | | | | 增减 | | 年同期增减 | | 营业收入（元） | 477,906,626.41 | 33.26% | 1,438,912,677.15 | 19. ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 961,006,050.74, representing a 13.27% increase compared to CNY 848,429,942.59 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 117,482,792.85, an increase of 23.66% from CNY 95,005,448.80 in the previous year[20]. - The basic earnings per share increased by 20.00% to CNY 0.18 from CNY 0.15 in the same period last year[20]. - The total assets at the end of the reporting period were CNY 3,559,737,305.58, up 5.42% from CNY 3,376,867,194.00 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company increased by 3.16% to CNY 1,665,968,069.14 from CNY 1,614,883,310.48 at the end of the previous year[20]. - The net cash flow from operating activities was CNY 109,272,456.61, a decrease of 2.50% compared to CNY 112,070,629.44 in the same period last year[20]. - The company reported a significant increase in financial expenses by 86.80% to ¥34,189,635.99, primarily due to foreign exchange losses[52]. - The company reported a net profit margin improvement, with retained earnings increasing to CNY 506,946,082.80 from CNY 452,992,255.45, a growth of approximately 11.9%[164]. Revenue Breakdown - The revenue from veterinary chemical drugs was 490.7 million CNY, up 11.20% year-on-year, accounting for 51.06% of total revenue[35]. - The revenue from veterinary biological products reached 160.7 million CNY, a significant increase of 80.85% year-on-year, making up 16.73% of total revenue[35]. - The revenue from environmental protection business was 34.4 million CNY, reflecting a year-on-year increase of 13.21%[35]. - Domestic sales accounted for 65.12% of total revenue, increasing by 27.35% year-on-year, while international sales decreased by 6.12% to 34.88% of total revenue[55]. - The revenue from veterinary biological products surged by 80.85% to ¥160,739,150.45, significantly contributing to overall growth[55]. Operational Challenges - The company faced challenges from the African swine fever and COVID-19, which affected the livestock industry and sales orders[36]. - The average price of corn starch, a key raw material, rose by about 47% compared to the same period last year, impacting production costs[38]. - The company faced various operational risks, which are detailed in the report[4]. - The company faced risks from rising raw material prices, particularly corn, which significantly impacts the cost of its main product, and is implementing measures to mitigate these costs[85]. - The ongoing African swine fever epidemic continues to affect the demand for animal health products, prompting the company to enhance its product competitiveness and marketing efforts[86]. Investment and Development - The company completed a non-public stock issuance project, and the new development strategy is now in the execution phase[49]. - The company established a new subsidiary, Inner Mongolia Jinhai Pharmaceutical Technology Co., Ltd., to implement the doxycycline project[50]. - The company set up a pet division to explore the pet medication market and is in the process of applying for new veterinary drug certificates[50]. - The company has made substantial investments in new product development, particularly in vaccines, which have shown a high gross profit margin and strong sales growth[60]. - The total investment amount for the reporting period was ¥130,721,007.94, representing a year-on-year increase of 187.21% compared to ¥45,513,314.34 in the same period last year[70]. Environmental Compliance - The company reported a total emission of 8.166 tons of particulate matter, with a concentration of 14.28 mg/m³, which is below the standard limit of 30 mg/m³[94]. - The sulfur dioxide (SO2) emissions amounted to 52.611 tons, with a concentration of 85.59 mg/m³, also compliant with the standard limit of 200 mg/m³[94]. - Nitrogen oxides (NOX) emissions were recorded at 90.973 tons, with a concentration of 153.90 mg/m³, adhering to the standard limit of 200 mg/m³[94]. - The company has implemented a "three-level alkaline spray absorption + one-level adsorption" process for treating waste gas, ensuring compliance with national standards[98]. - The company has established itself as a leader in industrial wastewater treatment and solid waste management, providing comprehensive solutions[98]. Shareholder and Equity Information - The company issued 145,132,743 shares of common stock (A-shares) to 10 specific investors, with the stock listed on August 12, 2021[136]. - The total approved guarantee amount for subsidiaries at the end of the reporting period was CNY 74,800.2 million, with an actual guarantee balance of CNY 40,440.09 million, representing 24.27% of the company's net assets[132]. - The company reported a total of CNY 12,920.20 million in guarantees during the reporting period[132]. - The total number of ordinary shareholders at the end of the reporting period was 35,819[146]. - The company has implemented a 75% lock-up on shares held by directors and senior management[143]. Research and Development - Research and development expenses rose by 5.69% to ¥38,107,298.08 from ¥36,054,676.90, indicating continued investment in innovation[52]. - The company has established a research and development center recognized by local authorities, enhancing its innovation capabilities[104]. - The company is accelerating the registration of vaccine products, including live vaccines for sheep and goats, and inactivated vaccines for pigs[49]. Legal and Compliance - The company has not faced any significant legal disputes or non-compliance issues during the reporting period, maintaining a clean legal standing[105]. - There were no administrative penalties due to environmental issues during the reporting period, indicating strong compliance with environmental laws[104]. - The company was fined 20,000 yuan for using absolute terms in advertising and has since deleted the related content[117].

Financial Performance - The company's revenue for Q1 2021 was ¥462,170,158.21, representing a 6.73% increase compared to ¥433,027,256.62 in the same period last year[7]. - Net profit attributable to shareholders was ¥85,425,834.34, a significant increase of 57.97% from ¥54,075,869.30 year-over-year[7]. - The net profit after deducting non-recurring gains and losses was ¥63,697,503.71, up 19.81% from ¥53,166,354.15 in the previous year[7]. - The basic earnings per share increased by 44.44% to ¥0.13 from ¥0.09 in the same period last year[7]. - The company's net profit margin improved significantly, reflecting a strong operational performance and effective cost management strategies[20]. - The company reported a total comprehensive income of CNY 98,859,141.70 for Q1 2021, compared to CNY 66,181,077.77 in the previous year, marking an increase of approximately 49.5%[53]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,660,920,295.03, an increase of 8.41% from ¥3,376,867,194.00 at the end of the previous year[7]. - Total liabilities rose to ¥1,812,698,017.30 from ¥1,626,925,856.12, reflecting an increase of about 11.4%[43]. - The company's equity attributable to shareholders increased to ¥1,701,959,012.78 from ¥1,614,883,310.48, representing a growth of approximately 5.4%[44]. - Current assets increased to ¥1,471,015,962.11 as of March 31, 2021, up from ¥1,240,147,130.98 on December 31, 2020, representing a growth of approximately 18.6%[41]. - Total assets reached ¥3,660,920,295.03, up from ¥3,376,867,194.00, indicating an increase of about 8.4%[44]. Cash Flow - The net cash flow from operating activities was negative at -¥25,322,456.62, a drastic decline from ¥169,026.42 in the same period last year, representing a decrease of 15,081.36%[7]. - Cash received from operating activities increased by ¥8,293,766.36, a rise of 169.89%, mainly due to the return of previously paid land compensation[22]. - Cash flow from investing activities showed a net outflow increase of ¥35,758,681.30, a rise of 111.87%, primarily due to the concentrated procurement phase of the vaccine base construction project[24]. - Cash flow from financing activities increased by ¥67,169,988.99, a rise of 60.61%, due to increased reserves for operational needs and changes in borrowing models[24]. Shareholder Information - The total number of shareholders at the end of the reporting period was 36,906, indicating a stable shareholder base[11]. - The controlling shareholder, Inner Mongolia Jinhai Construction and Installation Co., Ltd., underwent a division, transferring 241,758,670 shares to Inner Mongolia Jinhai Holdings Co., Ltd.[25]. Research and Development - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[45]. - Research and development expenses for Q1 2021 were CNY 17,370,744.69, up from CNY 14,920,829.51, indicating a focus on innovation[51]. Regulatory and Compliance - The company received approval from the China Securities Regulatory Commission for a non-public stock issuance on December 11, 2020[25]. - There were no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[29]. - The company reported no securities or derivative investments during the reporting period[30][31]. - There were no violations regarding external guarantees during the reporting period[34]. - The company did not engage in any entrusted financial management during the reporting period[33]. - The company has not undergone an audit for the first quarter report[72].

Financial Performance - In 2020, the company's operating revenue was CNY 1,814,638,965.54, representing a 1.81% increase compared to CNY 1,782,364,081.84 in 2019[15]. - The net profit attributable to shareholders decreased by 36.56% to CNY 117,324,525.93 from CNY 184,938,644.89 in the previous year[15]. - The net profit after deducting non-recurring gains and losses was CNY 100,055,200.95, down 31.39% from CNY 145,831,108.52 in 2019[15]. - The basic earnings per share fell by 37.93% to CNY 0.18 from CNY 0.29 in 2019[15]. - The total assets at the end of 2020 were CNY 3,376,867,194.00, a 0.97% increase from CNY 3,344,278,815.41 at the end of 2019[15]. - The net assets attributable to shareholders decreased by 3.81% to CNY 1,614,883,310.48 from CNY 1,678,925,673.71 in 2019[15]. - The net cash flow from operating activities was CNY 258,079,960.72, down 8.54% from CNY 282,185,997.03 in the previous year[15]. - The weighted average return on equity decreased to 7.13% from 10.45% in 2019, reflecting a decline of 3.32 percentage points[15]. - The company achieved operating revenue of CNY 1,814.64 million, an increase of 1.81% year-on-year[44]. - The net profit attributable to shareholders decreased by 36.56% to CNY 117.32 million[44]. - The revenue from veterinary chemical drugs was CNY 935.08 million, accounting for 51.53% of total revenue, which is a decrease of 11.70% compared to the previous year[55]. - The revenue from veterinary biological products surged to CNY 268.43 million, a significant increase of 210.22% year-on-year, indicating strong market acceptance[55]. - Domestic sales reached CNY 1.17 billion, representing 64.32% of total sales, with a year-on-year growth of 9.95%[56]. Market and Product Development - The company aims to expand its product offerings in veterinary pharmaceuticals, including new vaccines and pet medications, to capture emerging market opportunities[24]. - The company is positioned as a leader in the veterinary antibiotic market, particularly in the production of veterinary tetracycline[24]. - The market for veterinary pharmaceuticals is steadily growing, with a global market demand for aquatic and pet medications reaching $12.5 billion[32]. - The company's main product, Jinmeisu, has an annual production capacity of approximately 55,000 tons, accounting for about 50% of the global capacity[39]. - The company has established four major technology platforms for vaccine development, enhancing its competitive edge in the veterinary vaccine market[39]. - The company is actively expanding its marketing network, establishing a global sales network and enhancing its international presence[44]. - The company is focusing on R&D, with new vaccine approvals and ongoing development of several veterinary vaccines[48]. - The company plans to continue expanding its market presence and product offerings, particularly in the veterinary vaccine sector[62]. Environmental Initiatives - The company has initiated projects for zero wastewater discharge and solid waste landfill, enhancing its environmental solutions capabilities[28]. - The company is actively expanding its business areas and models in the environmental protection sector, focusing on high-difficulty wastewater treatment[34]. - The company has invested significantly in environmental protection, establishing itself as a benchmark in the treatment of fermentation wastewater and resource utilization[166]. - The company achieved compliance with the "Comprehensive Emission Standard for Air Pollutants" (GB16297-1996), with all systems and equipment operating effectively[163]. - The company has installed online monitoring devices for real-time emissions tracking, ensuring compliance with national environmental standards[165]. - The company is classified as a key pollutant discharge unit and has implemented effective pollution control measures[159]. - The company emphasizes its commitment to social responsibility and aims to be a leading animal health company[147]. Shareholder and Capital Management - The company plans to distribute a cash dividend of CNY 1 per 10 shares based on a total share capital of 635,289,655 shares as of December 31, 2020[4]. - The cash dividend for 2020 represents 54.15% of the net profit attributable to the company's ordinary shareholders[114]. - The company has established a shareholder return plan for the next three years (2021-2023) to enhance transparency in profit distribution[110]. - The company plans to issue non-public shares following approval from the China Securities Regulatory Commission, aiming to enhance its capital structure[52]. - The company has committed to not engage in any competitive activities with its controlling shareholder, Inner Mongolia Jinhai Construction Installation Co., Ltd., during the reporting period[116]. - The company has not experienced any violations of commitments during the reporting period, and all commitments are being strictly fulfilled[118]. Management and Governance - The company appointed new board members on May 11, 2020, including Wang Dongxiao as Chairman and Xie Changxian as General Manager[194]. - The company reported significant changes in its management team, with multiple appointments of vice presidents and independent directors on May 12, 2020[195]. - The management team has extensive experience in the biotechnology and agricultural sectors, which is expected to drive innovation and growth[199]. - The board's diverse professional backgrounds are anticipated to contribute to the company's strategic decision-making processes[197]. - The company is focused on maintaining stability in its leadership structure, with no new appointments or departures reported[192]. Risks and Challenges - The company faced challenges due to the COVID-19 pandemic, regulatory changes, and the impact of African swine fever on the livestock industry[44]. - The company has identified potential risks in its future development, which investors are advised to consider[4]. - The adjustment of veterinary drug regulations is expected to positively impact the long-term market for the company's product, chloramphenicol, despite short-term challenges[52]. Research and Development - The company has a strong commitment to R&D, particularly in the veterinary vaccine sector, following the acquisition of the U.S. company Pharmgate Biologics[39]. - Research and development expenses increased by 9.32% to ¥66,358,027.62, reflecting a greater emphasis on R&D and an increase in the number and compensation of R&D personnel[72]. - The company’s R&D investment totaled ¥79,499,200, accounting for 4.38% of total revenue, with a decrease of 4.36% compared to the previous year[73]. - The number of R&D personnel increased by 23.76% to 250, representing 11.89% of the total workforce[73].

Financial Performance - Operating revenue for the reporting period was CNY 358,633,107.37, down 13.57% year-on-year[8] - Net profit attributable to shareholders was CNY 6,931,601.38, a significant decline of 81.86% compared to the same period last year[8] - Basic earnings per share were CNY 0.01, down 83.33% compared to the same period last year[8] - The weighted average return on net assets was 0.43%, a decrease of 1.89 percentage points year-on-year[8] - Net profit attributable to shareholders decreased by CNY 41,321,238.51, a decline of 28.84%, mainly due to reduced sales of a key product and increased exchange losses[21] - The net profit for the third quarter was CNY 11,107,893.29, compared to CNY 37,524,806.44 in the same period last year, reflecting a significant decline[56] - The total profit for the quarter was CNY 8,363,126.53, down from CNY 47,034,283.86 in the previous year[56] - The net profit attributable to the parent company was CNY 101.94 million, down 28.8% from CNY 143.26 million year-on-year[65] - The total operating revenue for the third quarter was CNY 131,621,328.74, a decrease from CNY 233,848,963.15 in the previous period[59] Cash Flow and Liquidity - The net cash flow from operating activities was CNY 37,009,264.25, a decrease of 60.87% year-on-year[8] - Cash flow from operating activities decreased by CNY 80,029,333.53, a drop of 34.93%, mainly due to increased payments for raw materials and services[23] - Cash and cash equivalents decreased by CNY 118,819,515.64, a reduction of 32.83%, primarily due to cash dividends paid to shareholders[16] - Cash and cash equivalents decreased to approximately CNY 243.09 million from CNY 361.91 million at the end of 2019, representing a decline of about 32.8%[45] - The net cash flow from operating activities for Q3 2020 was ¥149,079,893.69, a decrease of 34.9% compared to ¥229,109,227.22 in Q3 2019[72] - Cash inflow from financing activities was ¥1,152,030,316.69, with cash outflow totaling ¥1,181,293,483.59, leading to a net cash flow of -¥29,263,166.90[73] - The company reported a cash balance of ¥223,686,878.96 at the end of Q3 2020, down from ¥235,363,136.12 at the end of Q3 2019[73] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,279,600,314.42, a decrease of 1.93% compared to the end of the previous year[8] - Total assets amounted to CNY 3,344,278,815.41, with current assets at CNY 1,240,717,688.82 and non-current assets at CNY 2,103,561,126.59[79] - Total liabilities reached CNY 1,537,400,385.63, with current liabilities at CNY 1,145,351,088.56 and non-current liabilities at CNY 392,049,297.07[81] - The total amount of receivables, including accounts receivable and other receivables, is CNY 193,721,748.58[84] - The company holds inventory valued at CNY 429,610,788.66, indicating a strong asset base for operations[79] Changes in Financial Position - Cash and cash equivalents increased by CNY 74,629,273.44, a growth of 97.58%, primarily due to increased bank borrowings to support operations[26] - The company received CNY 158,365,000.00 from other financing activities, an increase of 1,015.16%, mainly from the unfreezing of large deposits[26] - Accounts receivable financing increased by CNY 25,691,786.82, an increase of 35.28%, mainly due to bank acceptance bills used for settlement[16] - Accounts payable decreased by CNY 69,735,692.99, a reduction of 45.88%, primarily due to decreased procurement and payment for raw materials and coal[17] - Contract liabilities increased by CNY 16,845,667.17, attributed to adjustments made under the new revenue recognition standards[17] Financial Expenses and Income - Financial expenses increased by CNY 27,927,050.24, a rise of 109.62%, mainly due to the appreciation of the RMB and increased interest income from bank deposits[18] - Interest income surged by CNY 8,455,934.74, an increase of 1,009.70%, primarily from the unfreezing of large deposits[19] - The company reported a significant increase in financial expenses, amounting to CNY 22,640,180.60, compared to a negative CNY 13,621,506.42 in the previous period[59] - The company incurred income tax expenses of CNY 12.72 million, significantly lower than CNY 34.43 million in the same quarter last year[67] Shareholder and Corporate Actions - The company plans to issue shares through a non-public offering, which was approved in board and shareholder meetings[27] - The company’s controlling shareholder underwent a restructuring, resulting in a change of the controlling entity to Inner Mongolia Jinhai Holdings Co., Ltd.[29] - The company has not engaged in any securities or derivative investments during the reporting period[34][35] - There were no overdue commitments from the actual controller, shareholders, or related parties during the reporting period[33] Research and Development - Research and development expenses amounted to CNY 4,920,646.62, down from CNY 7,113,804.73 in the same period last year[59] - Research and development expenses for the quarter were CNY 20.38 million, a decrease of 10.2% from CNY 22.83 million in the previous year[67] Comprehensive Income - The company reported a decrease in comprehensive income from CNY 5,647,398.42 to CNY -2,963,642.81[48] - The comprehensive income totalled CNY -5,395,373.33 for the quarter, contrasting with CNY 40,471,164.30 in the previous year[57] - The company experienced a loss in comprehensive income attributable to the parent company of CNY -7,101,369.21, compared to CNY 40,724,257.39 in the previous year[57] - The comprehensive income attributable to the parent company was CNY 93.33 million, down from CNY 145.91 million year-on-year[65]

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 848,429,942.59, representing a 1.77% increase compared to CNY 833,702,310.89 in the same period last year[15]. - The net profit attributable to shareholders of the listed company decreased by 9.55% to CNY 95,005,448.80 from CNY 105,038,435.48 year-on-year[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 91,914,488.91, down 7.56% from CNY 99,430,945.90 in the previous year[15]. - The net cash flow from operating activities was CNY 112,070,629.44, a decrease of 16.70% compared to CNY 134,531,768.18 in the same period last year[15]. - The basic earnings per share decreased by 11.76% to CNY 0.15 from CNY 0.17 year-on-year[15]. - The total assets at the end of the reporting period were CNY 3,345,092,169.86, a slight increase of 0.02% from CNY 3,344,278,815.41 at the end of the previous year[15]. - The net assets attributable to shareholders of the listed company decreased by 3.33% to CNY 1,623,036,488.80 from CNY 1,678,925,673.71 at the end of the previous year[15]. Revenue Breakdown - The sales revenue from the animal feed additive business was 437.05 million yuan, a decrease of 13.57% year-on-year, reflecting a decline in market demand due to COVID-19[32]. - The veterinary vaccine business saw sales revenue of 88.88 million yuan, an increase of 152.97% year-on-year, indicating successful market expansion[32]. - The sales revenue from veterinary chemical drugs increased to 23.28 million yuan, a growth of 95.71% year-on-year, driven by rising demand in the livestock sector[33]. - The agricultural product processing business generated revenue of 232.49 million yuan, an increase of 7.30% year-on-year, with net profit rising by 19.47%[33]. - The environmental protection business reported revenue of 30.37 million yuan, a decrease of 17.18% year-on-year, due to delayed resumption of operations in upstream water supply companies[33]. Cash Flow and Financing - The net cash flow from operating activities was ¥112.07 million, a decrease of 16.70% year-on-year, attributed to increased payments for raw materials and utilities[36]. - The financial expenses decreased by 38.47% to ¥18.30 million, mainly due to the release of large deposits and lower interest expenses[35]. - The company reported a net increase in cash and cash equivalents of ¥55.88 million, a significant improvement of 157.20% year-on-year[39]. - The investment activities generated a net cash flow of -¥52.08 million, an improvement of 39.32% compared to the previous year, due to reduced capital expenditures[36]. - The company received ¥705,000,000.00 in loans during the first half of 2020, compared to ¥460,000,000.00 in the same period last year, reflecting increased leverage[161]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The total number of shares before the recent changes was 635,289,655, with 1,166,775 shares reduced from limited shares, resulting in a new total of 624,444,580 unlimited shares[113]. - The company reported a decrease in limited shares from 12,011,922 to 10,845,147, reflecting a reduction of 1,166,775 shares[116]. - The company’s major shareholders include Inner Mongolia Jinhai Construction Installation Co., Ltd., which holds 82% of the shares, and Lu Mudan, who holds 18%[120]. - The company’s shareholder structure indicates a significant concentration of ownership among a few key individuals and entities[120]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[94]. - The total emissions of smoke and dust are 8.368 tons, with a standard limit of 30 mg/m³, indicating compliance[94]. - The total emissions of SO2 are 71.372 tons, with a standard limit of 200 mg/m³, indicating compliance[94]. - The company has received multiple environmental impact assessment approvals and pollutant discharge permits, demonstrating its commitment to environmental compliance[99]. - The company upgraded its steam boiler to ensure compliance with emission standards, operating at a pressure of 3.82 Mpa and a temperature of 450℃ with a capacity of 2×35t/h[96]. Strategic Initiatives - The company highlighted potential risks and countermeasures in its operational analysis section[4]. - The company plans to address risks related to industry policy changes, raw material price increases, exchange rate fluctuations, new product development, market development expectations, and animal epidemic outbreaks[64][65]. - The company is focusing on enhancing its research and development capabilities for veterinary products, which involves significant investment and long development cycles[64]. - The company anticipates potential fluctuations in net profit for the upcoming reporting period due to various market and operational factors[64]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 15% market share within the next two years[191]. Legal and Governance Matters - The half-year financial report has not been audited[71]. - There were no significant litigation or arbitration matters during the reporting period[74]. - The company underwent a board restructuring on May 11, 2020, with all current directors and senior management being elected or appointed[131]. - The total number of independent directors who left their positions due to term expiration was three, indicating a significant change in governance[130]. - The company has not reported any new product developments or market expansion strategies in the provided financial documents[138].

Financial Performance - The company's revenue for Q1 2020 was ¥433,027,256.62, representing a 12.58% increase compared to ¥384,630,239.08 in the same period last year[7]. - Net profit attributable to shareholders was ¥54,075,869.30, a 43.31% increase from ¥37,734,004.99 year-over-year[7]. - The net profit after deducting non-recurring gains and losses was ¥53,166,354.15, up 48.60% from ¥35,778,746.87 in the previous year[7]. - The basic earnings per share increased by 50.00% to ¥0.09 from ¥0.06 in the same period last year[7]. - The total comprehensive income attributable to shareholders increased by ¥24,370,153.68, a growth of 68.80%[18]. - Net profit for Q1 2020 reached CNY 59,453,809.43, compared to CNY 36,784,353.67 in the same period last year, reflecting a growth of approximately 61.5%[46]. - The company reported a total comprehensive income of CNY 66,181,077.77 for Q1 2020, compared to CNY 34,066,575.69 in the same period last year[47]. Assets and Liabilities - The total assets at the end of the reporting period were ¥3,511,630,838.99, a 5.00% increase from ¥3,344,278,815.41 at the end of the previous year[7]. - The company's equity attributable to shareholders reached CNY 1,738,850,223.89, up from CNY 1,678,925,673.71, representing an increase of about 3.6%[38]. - Total liabilities increased to CNY 1,638,440,828.65 from CNY 1,537,400,385.63, which is an increase of approximately 6.6%[37]. - The company's total liabilities increased to CNY 1,135,020,827.97 from CNY 942,889,537.47, indicating a rise of about 20.5%[45]. - Current assets reached CNY 1,395,517,616.82, up from CNY 1,240,717,688.82, indicating an increase of about 12.5%[35]. Cash Flow - The net cash flow from operating activities was ¥169,026.42, a significant decrease of 95.47% compared to ¥3,731,560.95 in the same period last year[7]. - Cash inflow from operating activities amounted to CNY 404,345,431.78, an increase from CNY 376,065,554.73, reflecting a growth of about 7.5%[53]. - Cash outflow from operating activities totaled CNY 404,176,405.36, compared to CNY 372,333,993.78 in the previous year, showing an increase of approximately 8.5%[54]. - The net cash flow from financing activities increased by ¥43,487,733.71, a growth of 64.59%, mainly due to increased bank borrowings for loan repayments[21]. - The company reported a net cash outflow from investing activities of CNY 31,963,446.17, compared to CNY 29,802,810.33 in the previous year, indicating a decline of about 7.2%[54]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 35,395[10]. - The company's retained earnings increased to CNY 552,987,945.89 from CNY 498,912,076.59, showing a growth of approximately 10.8%[38]. Government Support and Other Income - The company received government subsidies amounting to ¥1,130,958.33 during the reporting period[8]. - Other comprehensive income after tax increased by ¥9,445,046.32, a growth of 347.53%, primarily due to foreign exchange differences[17]. - Interest income rose by ¥649,301.29, an increase of 271.82%, mainly from a one-time interest income received by a subsidiary[15]. Operational Costs - Total operating costs for Q1 2020 were CNY 365,234,360.24, up from CNY 340,404,778.12 in the previous period, with operating costs specifically rising from CNY 218,739,868.46 to CNY 267,084,257.49[45]. - Research and development expenses decreased to CNY 14,920,829.51 from CNY 19,235,074.07, showing a reduction of approximately 22.4%[45].

Financial Performance - The company's operating revenue for 2019 was CNY 1,782,364,081.84, representing a 9.42% increase compared to CNY 1,628,890,098.36 in 2018[16] - The net profit attributable to shareholders for 2019 was CNY 184,938,644.89, which is a 13.02% increase from CNY 163,628,881.41 in 2018[16] - The net cash flow from operating activities increased significantly by 140.83% to CNY 282,185,997.03 from CNY 117,174,643.71 in 2018[16] - The basic earnings per share for 2019 was CNY 0.29, up 11.54% from CNY 0.26 in 2018[16] - The total assets at the end of 2019 were CNY 3,344,278,815.41, a slight increase of 0.27% from CNY 3,335,354,103.12 at the end of 2018[16] - The net assets attributable to shareholders at the end of 2019 were CNY 1,678,925,673.71, showing a marginal increase of 0.06% from CNY 1,677,942,572.62 in 2018[16] - The company reported a decrease of 4.22% in net profit attributable to shareholders after deducting non-recurring gains and losses, totaling CNY 145,831,108.52 in 2019 compared to CNY 152,255,616.24 in 2018[16] - The weighted average return on net assets for 2019 was 10.45%, slightly up from 10.24% in 2018[16] Dividend Distribution - The company plans to distribute a cash dividend of CNY 2.5 per 10 shares, based on a total share capital of 635,289,655 shares as of December 31, 2019[4] - The company plans to distribute a cash dividend of 2.50 yuan per 10 shares, totaling 158,822,413.75 yuan for 2019, which represents 85.88% of the net profit attributable to shareholders[105] Market and Product Development - The company has expanded its product offerings to include animal health products, environmental wastewater treatment, and corn deep processing, diversifying its revenue streams[25] - The company aims for a scale farming rate of 58% by 2022, supported by government policies promoting large-scale farming operations[30] - The company transitioned its product classification from drug feed additives to veterinary drugs starting in 2020, aligning with international regulatory standards[30] - The company has transitioned the use of the antibiotic additive, Chlortetracycline, from a feed additive to a veterinary drug, primarily for therapeutic prevention in livestock, with a usage dosage of 400-600g (active ingredient) per ton of feed[32] - The company plans to evolve from a single product supplier to a comprehensive service provider for multiple veterinary products, necessitating enhanced efforts in channel development and technical service team building[34] - The company is focusing on cost control and market expansion in the veterinary chemical drug business, which has been impacted by the decline in pig inventory due to African swine fever[50] - The company is actively developing new vaccines, including a recombinant protein subunit vaccine for swine fever and a dual inactivated vaccine for swine reproductive and respiratory syndrome[50] Research and Development - The company has a strong focus on R&D, with a dedicated research center and partnerships with renowned universities and research institutions[40] - The total R&D investment amounted to ¥83,125,940.19, representing 4.66% of the company's revenue, an increase of 23.26% compared to 2018[69] - The company reported a 49.84% increase in R&D expenses, totaling ¥60,702,589.06, due to enhanced investment in R&D to improve market competitiveness[68] - The company has established a research and development center and applied for two invention patents and two utility model patents during the reporting period[52] Environmental Initiatives - The company has made significant investments in environmental protection, including the establishment of a wastewater treatment subsidiary that has received positive industry feedback[147] - The company has installed 9 sets of online monitoring systems for environmental compliance, ensuring effective pollution control measures are in place[155] - The company has developed a third-party pollution treatment demonstration base to enhance its wastewater treatment technology and maintain a leading position in the industry[147] - The company is actively developing new business areas in environmental protection, capitalizing on favorable national policies[96] - The environmental protection business is driven by national policies, with a 15% corporate income tax rate reduction for third-party pollution prevention enterprises from January 1, 2019, to the end of 2021[35] Financial Management - The company's financial expenses rose by 71.66% to ¥43,717,586.33, attributed to increased average bank loan amounts and reduced exchange gains[68] - The net cash flow from investing activities was -184,084,838.72 yuan, showing a slight improvement of 4.13% compared to the previous year[71] - The net cash flow from financing activities decreased by 339,507,618.48 yuan, a decline of 221.08%, mainly due to increased repayments of bank loans and cash distributions to shareholders[71] - The company's net profit attributable to shareholders was 184,938,600 yuan, with a significant difference of 9,724,740 yuan compared to the net cash flow from operating activities, representing a difference of 52.58%[72] Shareholder Structure - The largest shareholder, Inner Mongolia Jinhai Construction Installation Co., Ltd., holds 241,758,600 shares, representing 38.05% of total shares[177] - The second-largest shareholder, Shangyin Fund - Pudong Development Bank - Shangyin Fund, holds 33,706,780 shares, with a decrease of 16,676,300 shares during the reporting period[177] - The company reported a total of 33,662 common shareholders at the end of the reporting period[177] - The shareholding structure indicates that 90,689,655 shares were released from limited sale conditions, impacting the liquidity of the stock[173] Corporate Governance - The company has established a comprehensive corporate governance structure and internal control system to protect the rights of shareholders and creditors, ensuring timely and accurate information disclosure[145] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[113] - The company has no significant penalties or rectification measures during the reporting period[123] - The company has not engaged in any share buyback activities during the reporting period[173] Strategic Partnerships - The company signed a five-year procurement agreement with the world's largest animal health company, Merck, for chlortetracycline products[47] - The company has made significant progress in product registration and sales in overseas markets, including the United States, Brazil, and several Southeast Asian countries[50] - The company has received FDA approval for several product applications, including the combination use of Deracin and Tiamulin in the U.S. market[48] Challenges and Risks - The company faces risks from rising raw material prices, particularly corn, which significantly impacts product costs[97] - The company is under pressure from the ongoing African swine fever epidemic, which may affect the demand for its animal health products[99]