证券代码：002688 证券简称：金河生物 公告编号：2018-060 金河生物科技股份有限公司 2018 年第三季度报告正文 1 金河生物科技股份有限公司 2018 年第三季度报告正文 金河生物科技股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人王东晓、主管会计工作负责人牛有山及会计机构负责人(会计主 管人员)周立航声明：保证季度报告中财务报表的真实、准确、完整。 2 金河生物科技股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 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 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 3,191,328,510.37 | 2,959,911,864.10 | | 7.82% | | 归属 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 703,552,615.17, representing a 9.82% increase compared to CNY 640,651,552.54 in the same period last year[16]. - The net profit attributable to shareholders was CNY 85,178,965.69, up 10.90% from CNY 76,809,220.02 year-on-year[16]. - The net cash flow from operating activities increased significantly by 138.93%, reaching CNY 55,860,584.37 compared to CNY 23,379,329.00 in the previous year[16]. - The total assets at the end of the reporting period were CNY 3,041,861,887.51, a 2.77% increase from CNY 2,959,911,864.10 at the end of the previous year[16]. - The net assets attributable to shareholders increased by 4.43%, amounting to CNY 1,594,100,948.42 compared to CNY 1,526,518,658.25 at the end of the last year[16]. - The basic earnings per share rose to CNY 0.13, an increase of 8.33% from CNY 0.12 in the same period last year[16]. - Operating profit reached 101.32 million yuan, reflecting an increase of 11.24% year-on-year[27]. - The company achieved operating revenue of 703.55 million yuan, an increase of 9.82% compared to the same period last year[27]. - The company reported a government subsidy of CNY 8,933,749.76 during the period[20]. - The weighted average return on net assets was 5.44%, up from 5.06% in the previous year[16]. Revenue Breakdown - The sales revenue from veterinary vaccines was 64.78 million yuan, marking a significant increase of 44.18% year-on-year[34]. - Revenue from animal feed additives reached CNY 436.37 million, an increase of 45.16% year-on-year[44]. - Revenue from veterinary biological products grew by 58.00% year-on-year, totaling CNY 64.78 million, driven by breakthroughs in vaccine sales[44]. - Domestic sales accounted for 66.44% of total revenue, increasing by 28.68% year-on-year, while international sales decreased by 14.88%[42]. - Foreign sales increased by 43.26% year-on-year to CNY 236.13 million, despite a decline in previous quarters[44]. - The company's revenue from environmental protection services rose by 31.82% year-on-year, attributed to increased wastewater treatment contracts[44]. Cost and Expenses - Total operating costs amounted to CNY 610,750,935.69, up from CNY 554,158,517.22, reflecting a growth of 10.21%[143]. - Sales expenses amounted to 48.41 million, an increase of 10.72% year-on-year, primarily due to the expansion of the sales team and increased marketing efforts[37]. - Management expenses reached 100.29 million, an increase of 18.75% year-on-year, attributed to the increase in the number of management personnel and rising employee compensation[37]. - Financial expenses decreased by 36.93% to 16.70 million, mainly due to significant foreign exchange gains and higher average bank borrowing costs[38]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3.04 billion, with cash and cash equivalents at CNY 308.61 million, representing 10.15% of total assets[49]. - Short-term borrowings increased to CNY 666.90 million, accounting for 21.92% of total assets, up from 16.02% in the previous year[49]. - Current liabilities totaled CNY 892,076,626.02, an increase from CNY 855,124,288.22, reflecting a rise of 4.03%[135]. - Non-current liabilities decreased to CNY 449,899,288.84 from CNY 467,468,972.11, a decline of 3.63%[135]. - The company's total equity increased to CNY 1,699,885,972.65 from CNY 1,637,318,603.77, marking a growth of 3.81%[136]. Research and Development - The company invested 33.25 million in R&D, a 35.25% increase year-on-year, focusing on multiple vaccine projects[40]. - The company is focusing on strategic adjustments to enhance product value and extend the industrial chain[34]. - The veterinary chemical drugs segment is actively pursuing new product development, although market expansion is still in progress[35]. Environmental Initiatives - The company has invested heavily in environmental protection, establishing itself as a leader in industrial wastewater treatment and resource utilization[101]. - The company installed 13 tail gas photocatalytic oxidation treatment devices in five fermentation workshops and 5 devices in the extraction workshop during the reporting period[100]. - The total COD emissions from Inner Mongolia Jinhe Environmental Protection Technology Co., Ltd. were 42.44 tons, below the approved limit of 63.87 tons[99]. - The company’s SO2 emissions were recorded at 121.551 tons, significantly below the limit of 436.39 tons[99]. - The company’s NOx emissions were 145.277 tons, also well within the limit of 436.39 tons[99]. Shareholder Information - The company held its first extraordinary shareholders' meeting in 2018 with a participation rate of 40.36% on January 26, 2018[69]. - The annual shareholders' meeting for 2017 had a participation rate of 41.04% and was held on April 13, 2018[69]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[70]. - The total number of ordinary shareholders at the end of the reporting period was 35,092[116]. Risks and Challenges - The company faces risks from rising raw material prices, particularly corn, which significantly impacts product costs, and is focusing on cost control and market analysis[65]. - The company is also addressing risks related to exchange rate fluctuations and new product market development, ensuring a strong sales team and market-oriented strategies[66]. - Regulatory changes in the veterinary medicine industry pose a risk, and the company is committed to adapting to these changes while enhancing its product offerings[66]. Corporate Governance - There were no violations of commitments by the actual controller and shareholders during the reporting period[71]. - The company has committed to not engage in any competitive activities with its own business during the reporting period[72]. - The company has not conducted any audits for its half-year financial report[76]. Financial Reporting - The financial report for the first half of 2018 was not audited[131]. - The company's financial statements reflect the impact of exchange rate fluctuations on cash flows, which are reported separately in the cash flow statement[195]. - The company recognizes deferred tax assets related to deductible temporary differences if new information indicates that the economic benefits can be realized within 12 months post-acquisition, reducing goodwill accordingly[183].

金河生物科技股份有限公司 2018 年第一季度报告正文 证券代码：002688 证券简称：金河生物 公告编号：2018-034 金河生物科技股份有限公司 2018 年第一季度报告正文 1 金河生物科技股份有限公司 2018 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人王东晓、主管会计工作负责人牛有山及会计机构负责人(会计主 管人员)周立航声明：保证季度报告中财务报表的真实、准确、完整。 2 金河生物科技股份有限公司 2018 年第一季度报告正文 第二节 公司基本情况 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 非经常性损益项目和金额 √ 适用 □ 不适用 单位：元 | 项目 | 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部分） | 139,710.61 | | | 计入当期损益的政府补助（与企业业务 ...

Financial Performance - The company's operating revenue for 2017 was CNY 1,457,826,359.89, a decrease of 2.53% compared to CNY 1,495,686,256.40 in 2016[16] - The net profit attributable to shareholders for 2017 was CNY 108,423,892.06, down 33.94% from CNY 164,129,151.92 in 2016[16] - The net profit after deducting non-recurring gains and losses was CNY 95,070,633.81, a decline of 41.67% compared to CNY 162,982,205.94 in the previous year[16] - The net cash flow from operating activities was CNY 27,253,028.88, a significant drop of 90.68% from CNY 292,411,555.48 in 2016[16] - The basic earnings per share for 2017 was CNY 0.17, down 34.62% from CNY 0.26 in 2016[16] - The total revenue for Q4 2023 reached approximately ¥492.45 million, marking a substantial increase compared to previous quarters[20] - The net profit excluding non-recurring gains and losses in Q3 2023 was approximately ¥14.30 million, reflecting a decline compared to earlier quarters[20] - The company reported a government subsidy of approximately ¥15.97 million in 2017, contributing positively to its financial performance[21] Assets and Investments - The total assets at the end of 2017 were CNY 2,959,911,864.10, an increase of 11.18% from CNY 2,662,337,623.01 at the end of 2016[16] - The net assets attributable to shareholders at the end of 2017 were CNY 1,526,518,658.25, a slight increase of 2.01% from CNY 1,496,388,507.06 in 2016[16] - Equity assets increased by 608,400 CNY, a growth of 78.39%, mainly due to the investment in the joint venture Codiagro by the subsidiary Farmawei[33] - Fixed assets increased by 47,740,800 CNY, a growth of 7.11%, primarily due to the completion of projects such as the Jinhe Environmental Protection Phase III and the renovation of the vaccine production line by subsidiary Hangzhou Youben[33] - Cash and cash equivalents increased by 105,910,000 CNY, a growth of 44.24%, mainly to supplement liquidity after providing guarantees for Farmawei's external loan business[33] Business Operations and Strategy - The company has expanded its business scope to include the production of additive premixed feed since 2015[15] - The company is focusing on expanding its product line in feed additives, with an emphasis on high-quality and safe products to meet increasing market demand[29] - The company has engaged in a series of mergers and acquisitions to establish a strategic layout in the animal health product industry, including feed additives and veterinary pharmaceuticals[25] - The veterinary vaccine industry is experiencing rapid growth due to increased awareness of disease prevention in livestock and stricter food safety regulations[30] - The company is positioned to capitalize on the growing demand for environmental services, driven by stricter regulations and increased investment in pollution control[31] - The company plans to invest 600 million RMB to build an animal vaccine industrial base to expand production capacity and enhance profitability[49] Research and Development - The company is advancing the R&D and registration of new products such as bacteriocins and salinomycin in the U.S. market, and has established a new subsidiary focused on animal nutrition feed additives[46] - The company has established four major technology platforms in the vaccine business, enhancing its core competitive advantage in product technology[37] - The company plans to accelerate the research and development of new products such as brucellosis live vaccine and rabies vaccine, targeting to achieve one new product per year[104] - The company has allocated 200 million RMB for research and development in 2018, focusing on innovative veterinary solutions[185] Market Performance - The feed additive business generated main business revenue of 979.03 million RMB, a year-on-year decrease of 9.14%, accounting for 67.89% of main business revenue[45] - Revenue from animal feed additives was CNY 979 million, accounting for 67.16% of total revenue, down 9.14% from CNY 1.08 billion in 2016[56] - Revenue from veterinary biological products surged by 127.69% to CNY 94.25 million, up from CNY 41.39 million in 2016[56] - Domestic sales increased by 32.13% to CNY 928.79 million, while international sales fell by 33.27% to CNY 529.03 million[56] Human Resources and Corporate Governance - The company emphasizes talent acquisition and development, ensuring a strong human resource foundation for rapid growth[41] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 721.22 million CNY[190] - The company has a structured governance framework with a clear delineation of roles among its board members and executives[179] - The company has established a comprehensive employee protection system, focusing on improving working conditions and increasing employee wages[152] Compliance and Risk Management - The company has ensured compliance with regulations regarding the storage, use, management, and disclosure of raised funds, with no violations reported[94] - The company is facing risks related to rising raw material prices, particularly corn, which significantly impacts product costs[106] - The company is also exposed to risks from exchange rate fluctuations affecting its overseas sales revenue[106] Shareholder Information - The cash dividend for 2017 is proposed at RMB 0.30 per 10 shares, totaling RMB 19,058,689.65, with a retained profit of RMB 301,518,732.56 to be carried forward[115] - The cash dividend payout ratio for 2017 is 17.58% of the net profit attributable to shareholders[115] - The total number of ordinary shareholders at the end of the reporting period was 38,830, an increase from 36,444 at the end of the previous month[168] - The largest shareholder, Inner Mongolia Jinhai Construction Installation Co., Ltd., holds 38.05% of the shares, totaling 241,758,600 shares, with 97,590,000 shares pledged[169] Environmental Responsibility - The company has maintained compliance with environmental regulations, ensuring that all pollutants are discharged within the legal limits[154] - The company’s subsidiary, Jinhe Environmental Protection, has treated wastewater with an inflow COD of approximately 10,000 mg/L, reducing it to around 50 mg/L post-treatment, showcasing its leadership in environmental management[154] - Jinhe Environmental Protection has been recognized as a "demonstration base for third-party environmental pollution control" by local environmental authorities, reflecting its commitment to sustainable practices[155]

Financial Performance - Operating revenue decreased by 7.31% to CNY 324,723,153.51 for the current period, and by 7.80% to CNY 965,374,706.05 year-to-date[8] - Net profit attributable to shareholders decreased by 23.23% to CNY 22,449,131.06 for the current period, and by 19.61% to CNY 99,258,351.08 year-to-date[8] - Net profit after deducting non-recurring gains and losses dropped by 66.64% to CNY 8,755,065.60 for the current period[8] - Basic and diluted earnings per share both decreased by 20.00% to CNY 0.04[8] - Weighted average return on equity fell to 1.54%, down 0.30% from the previous year[8] - Net cash flow from operating activities was negative at CNY -23,159,502.89, a decrease of 133.40% compared to the same period last year[8] - Net cash flow from operating activities decreased by CNY 86,237,511.31, a decline of 83.07%, attributed to lower sales performance[22] Assets and Liabilities - Total assets increased by 9.35% to CNY 2,911,389,818.19 compared to the end of the previous year[8] - Accounts receivable increased by CNY 14,410,562.76, a growth of 72.78%, due to an increase in customers using bank acceptance bills for payment[16] - Prepayments rose by CNY 106,291,604.23, a growth of 166.94%, primarily due to increased advance payments for raw materials[16] - Other receivables increased by CNY 46,098,555.74, a growth of 418.15%, mainly from patent technology transfer payments and increased loans to subsidiaries[16] - Short-term borrowings increased by CNY 231,674,500.00, a growth of 78.18%, to supplement insufficient working capital[17] - Financial expenses increased by CNY 34,670,161.81, a growth of 406.30%, due to higher average bank borrowings and reduced exchange gains[20] Cash Flow - Cash received from investment increased by CNY 6,045,879.44, a growth of 30.23%, due to increased maturity of bank wealth management products[22] - Cash paid for fixed assets and other long-term assets increased by CNY 41,199,275.31, a growth of 53.00%, due to increased environmental investments[22] - Cash received from borrowings increased by CNY 175,301,448.54, a growth of 33.98%, due to insufficient working capital from reduced sales revenue[23] - Other comprehensive income decreased by CNY 5,504,397.90, a decline of 98.17%, mainly due to the impact of RMB appreciation on foreign subsidiary financial statements[19] Shareholder Information - The total number of shareholders at the end of the reporting period was 37,821[12] - The largest shareholder, Inner Mongolia Jinhai Construction Installation Co., Ltd., holds 38.05% of the shares[12] Strategic Developments - The company is currently in a strategic investment phase for its animal vaccine business, resulting in lower-than-expected performance contributions[30] - The U.S. market is experiencing a decline in overall sales due to changes in the method of adding feed-grade antibiotics, impacting the company's revenue[30] - The company has established a new subsidiary, Inner Mongolia Jinhai Animal Nutrition Technology Co., Ltd., with a registered capital of RMB 20 million, where the company holds a 67% stake[30] - The company approved an investment of approximately RMB 35 million for the construction and operation of a wastewater treatment plant in Inner Mongolia[30] Compliance and Governance - The company has no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[28] - There are no violations regarding external guarantees during the reporting period[31] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[32] - The company has not conducted any research, communication, or interview activities during the reporting period[33] Future Projections - The estimated net profit attributable to shareholders for 2017 is projected to be between RMB 131.30 million and RMB 196.95 million, reflecting a change of -20% to 20% compared to the previous year[30] - The net profit for 2016 attributable to shareholders was RMB 164.13 million[30]

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 640,651,552.54, a decrease of 8.04% compared to CNY 696,658,310.42 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was CNY 76,809,220.02, down 18.49% from CNY 94,227,913.92 year-on-year[17]. - The net cash flow from operating activities was CNY 23,379,329.00, representing a significant decline of 72.96% compared to CNY 86,457,337.42 in the previous year[17]. - Basic earnings per share decreased by 20.00% to CNY 0.12 from CNY 0.15 in the same period last year[17]. - The company reported a significant decrease in net profit after deducting non-recurring gains and losses, which was CNY 72,912,445.69, down 21.72% from CNY 93,143,873.69 in the previous year[17]. - The weighted average return on net assets was 5.06%, down from 6.44% in the same period last year, a decrease of 1.38%[17]. - The company achieved operating revenue of 640.65 million yuan, a decrease of 8.04% compared to the same period last year[33]. - The operating profit was 91.08 million yuan, down 20.65% year-on-year, while the net profit attributable to shareholders was 76.81 million yuan, a decrease of 18.49%[33]. - The gross profit margin for the main business was 36.84%, an increase of 2.23 percentage points year-on-year, with the feed-grade chlortetracycline margin at 43.41%, up 1.82 percentage points[35]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,785,440,042.13, an increase of 4.62% from CNY 2,662,337,623.01 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased by 1.53% to CNY 1,473,526,208.58 from CNY 1,496,388,507.06 at the end of the previous year[17]. - The company's total assets at the end of the reporting period were CNY 2,785,440,042.13, an increase from CNY 2,662,337,623.01 at the beginning of the period[140]. - Current assets totaled CNY 996,106,547.26, up from CNY 865,202,870.27 at the beginning of the period, reflecting a growth of approximately 15.1%[138]. - The company's total liabilities increased to CNY 1,227,726,142.95 from CNY 1,078,206,185.58, indicating a growth of about 13.9%[139]. - The company's equity attributable to shareholders decreased to CNY 1,473,526,208.58 from CNY 1,496,388,507.06, a decline of approximately 1.5%[140]. - The company’s inventory rose to CNY 347.68 million, accounting for 12.48% of total assets, an increase from 11.28% year-on-year[51]. - Short-term loans increased to CNY 446.33 million, representing 16.02% of total assets, up from 11.13% in the previous year[51]. Cash Flow - The net cash flow from operating activities was ¥23.38 million, a decrease of 72.96% year-on-year, attributed to reduced operating income and increased employee-related expenditures[38]. - The net cash flow from investment activities was -¥150.52 million, an increase of 11.25% compared to the previous year, mainly due to the maturity of bank wealth management investments[38]. - The net cash flow from financing activities was ¥22.59 million, a decrease of 86.83% year-on-year, primarily due to the absence of similar fundraising activities as in the previous year[38]. - The cash inflow from operating activities totaled CNY 709,693,468.43, down from CNY 751,016,467.60 in the previous year, a decline of 5.5%[155]. - The company incurred financial expenses of CNY 1,617,367.93, compared to a financial income of CNY 10,660,205.33 in the previous year, indicating a significant shift in financial performance[150]. Investments and Acquisitions - The company’s subsidiary, PHARMGATE LLC, completed the acquisition of 100% of the shares of the U.S. company, ProTech, expanding into the veterinary vaccine sector[34]. - The company is investing 50 million yuan in the FDA registration fees for new veterinary drug applications and related expenditures to enter the U.S. terminal market[62]. - The company has completed the construction of a new pressure station system and upgraded the feed-grade gold mycin product to meet market demands[62]. - The company is actively exploring external business expansion in the environmental protection sector, laying a foundation for sustainable development[34]. - The company has expanded its market presence through acquisitions, including the acquisition of Hohhot Jinsheng Water Co., Ltd. for wastewater treatment operations[177]. Research and Development - Research and development investment increased by 100.44% to ¥24.58 million, reflecting the company's commitment to enhancing technological innovation and new product development[40]. - The company is focusing on research and development of new technologies to drive future growth and innovation[165]. - The company is investing in new product development and technology integration, although the performance has not yet effectively materialized[73]. Market Performance - Domestic sales accounted for 56.70% of total revenue, increasing by 24.73% year-on-year, while international sales decreased by 31.58% to 43.30% of total revenue[43]. - Revenue from veterinary biological products increased by 571.97% compared to the same period last year, primarily due to the acquisition of 100% equity in U.S. company Putech in October of the previous year[47]. - The company reported a total revenue of 19,986.71 million yuan for the first half of 2017, with a net profit of 1,640.25 million yuan, reflecting a significant performance in the market[96]. Compliance and Governance - The company has ensured compliance in the storage, use, management, and disclosure of raised funds, with no violations reported[64]. - The company has not violated any commitments related to competitive practices during the reporting period[82]. - The company reported no major violations of commitments during the reporting period, and all commitments are being strictly adhered to[84]. - The company has not undergone any bankruptcy restructuring during the reporting period[86]. - There are no significant litigation or arbitration matters affecting the company, and the arbitration result regarding a dispute with Zhejiang Jianliang Bioengineering Co., Ltd. is not expected to have a major impact on the company's profits[88]. Shareholder Information - The total number of shares decreased from 635,289,655 to 632,320,282 due to the release of restricted shares, resulting in a reduction of limited shares from 16.79% to 16.17%[116]. - The number of shareholders holding more than 5% of ordinary shares was reported at 32,683 at the end of the reporting period[122]. - The company has a significant shareholder structure, with the top ten shareholders holding a substantial portion of the total shares, indicating concentrated ownership[124]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[125]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit by environmental protection authorities[109]. - The actual discharge of chemical oxygen demand (COD) was approximately 175 tons per year, with a total COD discharge of 350 tons per year[109]. - The company’s subsidiary, Jinhe Environmental Protection, operates as a third-party pollution control demonstration base[109].

Financial Performance - The company's operating revenue for Q1 2017 was ¥338,065,029.81, a decrease of 2.89% compared to ¥348,137,495.99 in the same period last year[8] - Net profit attributable to shareholders was ¥41,028,303.54, down 18.82% from ¥50,542,734.29 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥38,986,000.78, reflecting a decline of 21.64% compared to ¥49,750,266.17 in the previous year[8] - Basic and diluted earnings per share were both ¥0.06, a decrease of 33.33% from ¥0.09 in the previous year[8] - Net profit attributable to shareholders for the first half of 2017 is expected to range from ¥7,538.23 million to ¥11,307.35 million, reflecting a growth rate of -20% to 20% compared to the same period in 2016[23] Cash Flow and Assets - The net cash flow from operating activities decreased by 29.54%, amounting to ¥33,575,748.40, down from ¥47,652,963.27 in the same period last year[8] - Total assets at the end of the reporting period were ¥2,734,398,909.64, an increase of 2.71% from ¥2,662,337,623.01 at the end of the previous year[8] - Net assets attributable to shareholders increased by 2.66% to ¥1,536,179,846.84 from ¥1,496,388,507.06 at the end of the previous year[8] Government Support and Subsidies - The company received government subsidies amounting to ¥2,446,701.53 during the reporting period[9] - Operating income increased by ¥1,628,146.38, a growth of 174.50% compared to Q1 2016, mainly due to significant government subsidies received[18] Liabilities and Borrowings - Long-term borrowings increased by ¥115,896,872.33, a growth of 56.28% compared to December 31, 2016, primarily due to a five-year bank loan taken for a $15 million payment to the original shareholders of subsidiary Farmawei[16] - Estimated liabilities decreased by ¥108,799,712.37, a reduction of 53.45% compared to December 31, 2016, also related to the $15 million payment to the original shareholders of Farmawei[16] Expenses and Costs - Tax and additional fees increased by ¥2,216,813.17, a rise of 162.62% compared to Q1 2016, due to changes in tax accounting regulations[18] - Financial expenses rose by ¥2,691,214.28, an increase of 31.41% compared to Q1 2016, attributed to higher average bank loan amounts and interest expenses[18] - Cash paid to employees increased by ¥17,462,246.33, a rise of 43.74% compared to Q1 2016, due to a larger consolidated scope and increased performance bonuses[19] Other Financial Changes - Other receivables increased by ¥8,889,124.15, representing an increase of 80.63% compared to the end of the previous year[15] - Other current assets decreased by ¥26,953,891.10, a reduction of 70.68% compared to the end of the previous year[15] - Investment cash payments increased by ¥105,879,514.25, primarily due to payments made for the acquisition of shares from the original shareholders of Farmawei[19] - Cash received from tax refunds decreased by ¥6,247,939.18, a decline of 67.11% compared to Q1 2016, due to reduced export tax refunds[19] Future Outlook - The company anticipates that the vaccine business from acquisitions will remain in a strategic investment phase, impacting financial expenses and overall profitability in the near term[23]

Financial Performance - The company's operating revenue for 2016 was CNY 1,495,686,256.40, representing a 19.61% increase compared to CNY 1,250,468,533.75 in 2015[14]. - The net profit attributable to shareholders for 2016 was CNY 164,129,151.92, a significant increase of 56.83% from CNY 104,652,699.99 in 2015[14]. - The net cash flow from operating activities reached CNY 292,411,555.48, up 36.03% from CNY 214,966,344.15 in the previous year[14]. - The basic earnings per share for 2016 was CNY 0.26, reflecting a 36.84% increase from CNY 0.19 in 2015[14]. - Total assets at the end of 2016 amounted to CNY 2,662,337,623.01, a 41.22% increase from CNY 1,885,202,579.18 at the end of 2015[15]. - The net assets attributable to shareholders increased to CNY 1,496,388,507.06, marking a 44.56% rise from CNY 1,035,121,425.48 in 2015[15]. - The company reported a weighted average return on equity of 14.56% for 2016, up from 10.56% in 2015[14]. - The net profit after deducting non-recurring gains and losses was CNY 162,982,205.94, a 65.87% increase from CNY 98,260,757.72 in 2015[14]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares, based on a total share capital of 635,289,655 shares as of December 31, 2016[4]. - The net profit attributable to ordinary shareholders for 2016 was 164,129,151.92 CNY, with a dividend payout ratio of 58.06%[117]. - The company reported a total distributable profit of 300,938,114.40 CNY for the year[119]. - In 2016, the company distributed a cash dividend of 1.50 CNY per 10 shares, totaling 95,293,448.25 CNY, which represents 100% of the profit distribution[119]. - The cash dividend for 2015 was 50,823,172.40 CNY, with a net profit of 104,652,699.99 CNY, resulting in a payout ratio of 48.56%[117]. - The remaining undistributed profit of 205,644,666.15 CNY will be carried forward to the next year[119]. Acquisitions and Strategic Initiatives - The company completed the acquisition of 100% of the U.S. Putech Company, enhancing its R&D capabilities in vaccine technology[42]. - The company has completed strategic acquisitions in the animal feed additive and veterinary pharmaceutical sectors, enhancing its product portfolio[24]. - The company acquired 51% of Jinbang Animal Pharmaceutical Co., which has been renamed Jinhe Muxing (Chongqing) Biotechnology Co., increasing its subsidiary count by one[128]. - The company acquired 67% of Hangzhou Youben Animal Vaccine Co. and the remaining 33% by the parent company, further expanding its business operations[128]. - The company also acquired 65% of Hohhot Jinseng Water Co. through its subsidiary Jinhe Environmental Protection, enhancing its market presence[128]. Research and Development - Research and development (R&D) investment reached 47,263,597.15 yuan, accounting for 3.16% of the company's operating revenue, with a 72% increase compared to the previous year[71]. - The company is investing 100 million RMB in research and development for innovative biotechnologies over the next two years[190]. - The company is focused on expanding its research and development capabilities and has plans for future projects[121]. - The company is increasing R&D investment to accelerate the development of new products and technology upgrades in the veterinary pharmaceutical business[108]. Market Performance and Sales - The animal feed additive business benefited from a recovery in the pig farming industry, leading to increased product sales and a significant reduction in production costs, resulting in a substantial increase in gross margin[40]. - The company achieved a revenue increase of 2,298.83 million yuan, a growth of 44.96%, and a net profit increase of 1,916.52 million yuan, a growth of 115.50% compared to the previous year[103]. - The company is actively expanding its market presence and enhancing product promotion efforts to drive sales growth[102]. - The company is focusing on the market sales of the circular purification vaccine domestically and the sales of the Mycoplasma-Porcine Circovirus II vaccine in overseas markets[107]. Financial Management and Cash Flow - The net cash flow from operating activities increased by 36.03% to 292,411,555.48 yuan, primarily due to a significant increase in operating income[74]. - The company reported a 98.47% increase in cash inflow from financing activities, totaling 1,138,845,188.68 yuan, mainly from non-public stock issuance[74]. - The company raised 458.01 million yuan through a private placement of 36,275,862 shares, aimed at supplementing working capital and reducing financial costs[45]. - The company has a total of 100,278,432 shares subject to lock-up, with various shareholders having different release dates[171]. Environmental and Technological Initiatives - The environmental business segment is rapidly developing, leveraging proprietary wastewater treatment technologies with high COD removal rates[29]. - The company has established a new subsidiary focused on wastewater treatment with an investment of 500,000, achieving 100% ownership[86]. - The company is focused on expanding its market presence in the environmental protection sector[86]. - The company has a pollution discharge of 52 tons of COD, well below the regulatory limit of 75 tons, demonstrating compliance with environmental standards[159]. Corporate Governance and Compliance - The company has established a complete internal control system to protect the rights of shareholders and creditors, with no reported violations[157]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[124]. - The company has not experienced any penalties or rectification issues during the reporting period[133]. - The company has not conducted any risk investments in the past 12 months and has committed to not engage in risk investments during the period of using idle raised funds[94]. Employee and Management Structure - The total number of employees in the company is 2,066, with 1,191 in the parent company and 875 in major subsidiaries[199]. - The professional composition includes 1,267 production personnel, 126 sales personnel, 225 technical personnel, 57 financial personnel, and 391 administrative personnel[199]. - The total remuneration for directors and senior management during the reporting period amounted to CNY 756.62 million[198]. - The company experienced a change in senior management with the resignation of Vice General Manager Hao Xinle due to illness on October 27, 2016[186].

Financial Performance - Total assets increased by 29.54% to CNY 2,442,142,815.02 compared to the end of the previous year[8]. - Net assets attributable to shareholders increased by 51.42% to CNY 1,567,400,089.69 compared to the end of the previous year[8]. - Operating revenue for the current period was CNY 350,343,829.63, an increase of 18.43% year-on-year[8]. - Net profit attributable to shareholders for the current period was CNY 29,242,231.07, a significant increase of 64.88% year-on-year[8]. - Basic earnings per share rose by 66.67% to CNY 0.05 for the current period[8]. - Operating revenue for the first nine months of 2016 increased by ¥199,832,596.58, a growth of 23.59%, attributed to a recovery in the sales market and increased sales volume[20]. - The net profit attributable to shareholders for 2016 is expected to range from 146.51 million to 188.37 million RMB, representing a growth of 40% to 80% compared to the previous year[33]. - The net profit for 2015 was 104.65 million RMB, indicating a significant improvement in profitability for 2016[33]. Cash Flow and Assets - Cash flow from operating activities for the year-to-date was CNY 103,818,308.72, an increase of 38.64%[8]. - The company reported a significant increase in cash and cash equivalents by 68.82% to CNY 155,140,492.10 due to funds raised from a targeted stock issuance[15]. - Cash received from operating activities increased by ¥7,413,299.56, a growth of 39.23%, mainly from increased tender deposits and the return of standby loans[22]. - Cash paid for various taxes increased by ¥42,274,562.67, reflecting a growth of 118.03%, due to significantly higher sales revenue and profit levels[23]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 31,099[11]. - The largest shareholder, Inner Mongolia Jinhai Construction Installation Co., Ltd., holds 38.05% of the shares[11]. Investments and Acquisitions - The company completed a non-public stock issuance, raising ¥505,685,723.24, a staggering increase of 168,561.91% compared to the previous year[24]. - The company signed a conditional equity transfer agreement, agreeing to pay a deposit of RMB 20 million for acquiring a 33% stake in Hangzhou Youben Animal Vaccine Co., Ltd. from Zhejiang Jianliang Biotechnology Co., Ltd.[26]. - The company approved a loan of up to RMB 288.1 million to its subsidiary PHARMGATE LLC for the acquisition of 100% equity in ProtaTek International, Inc., with an initial payment of USD 20 million made on October 12, 2016.[27]. - The company has completed the acquisition of 67% of Hangzhou Youben Company, which is expected to enhance operational efficiency and profitability[33]. Fund Management - The company plans to use 60 million RMB of idle raised funds to temporarily supplement working capital, with a commitment not to engage in high-risk investments during this period[32]. - An additional 75 million RMB of over-raised funds will be permanently used to supplement working capital, with similar commitments regarding investment risks[32]. - The company is committed to strict management of raised funds, ensuring they are used according to promised purposes and amounts[32]. - The company has no violations regarding external guarantees during the reporting period[35]. - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[36]. - The company has not engaged in any research, communication, or interview activities during the reporting period[37]. Expenses - Management expenses rose by ¥40,549,127.70, an increase of 41.16%, due to improved performance leading to higher employee bonuses and increased R&D investment[21]. - Short-term borrowings decreased by ¥164,110,900.00, a reduction of 33.58%, as the company repaid bank loans with funds raised from the stock issuance[18]. Other Assets - Prepayments increased by 118.08% to CNY 74,594,322.92, primarily due to increased procurement payments for corn and construction projects[15]. - As of September 30, 2016, other receivables increased by ¥180,784,398.41, a growth of 1,058.99%, primarily due to uncollected debts from the acquisition of Hangzhou Youben Animal Vaccine Co., Ltd.[16]. - Other current assets rose by ¥17,266,274.21, reflecting a 511.99% increase, mainly from financial investments made with temporarily idle funds[16]. - Long-term equity investments decreased by ¥224,993,348.54, a reduction of 99.89%, due to the consolidation of Hangzhou Youben Animal Vaccine Co., Ltd.[16]. - Goodwill increased by ¥253,881,498.90, a surge of 3,292.88%, resulting from the acquisition of Hangzhou Youben Animal Vaccine Co., Ltd.[17].

Financial Performance - The company's operating revenue for the first half of 2016 was CNY 696,658,310.42, representing a 26.36% increase compared to CNY 551,348,276.68 in the same period last year[20]. - The net profit attributable to shareholders was CNY 94,227,913.92, an increase of 85.04% from CNY 50,922,582.05 year-on-year[20]. - The net cash flow from operating activities surged to CNY 86,457,337.42, a significant increase of 1,619.15% compared to CNY 5,029,081.61 in the previous year[20]. - Basic earnings per share rose to CNY 0.15, reflecting a 66.67% increase from CNY 0.09 in the same period last year[20]. - The company achieved a sales revenue of 696.66 million yuan, an increase of 26.36% compared to the previous year, driven by a recovery in the sales market and increased sales volume[35]. - The net profit attributable to shareholders reached 94.23 million yuan, reflecting an 85.04% year-on-year growth, benefiting from improved market conditions and cost reductions[28]. - The main business income from feed additives was 541.91 million yuan, up 7.76% year-on-year, accounting for 77.85% of total main business income[29]. - The company's gross profit margin for the main business improved to 34.62%, an increase of 6.17 percentage points year-on-year, primarily due to lower raw material and energy costs[31]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 2,306,055,507.59, up 22.32% from CNY 1,885,202,579.18 at the end of the previous year[20]. - The net assets attributable to shareholders increased to CNY 1,537,716,794.15, marking a 48.55% rise from CNY 1,035,121,425.48 at the end of the previous year[20]. - The company's short-term borrowings decreased by 34.91% to CNY 318,092,400.00, due to the completion of a private placement[37]. - Accounts receivable rose by 48.83% to CNY 250,177,243.12, attributed to increased sales and extended collection periods[36]. - The company's total liabilities decreased to CNY 725,195,898.66 from CNY 830,677,072.85, a reduction of 12.6%[126]. Cash Flow and Investments - The company’s cash flow from operating activities reached 86.46 million yuan, a substantial increase of 1,619.15% year-on-year, indicating strong cash inflow from operations[34]. - The company’s investment activities resulted in a net cash outflow of 169.61 million yuan, primarily due to payments for the acquisition of a subsidiary[34]. - The company reported a total cash and cash equivalents balance of CNY 279,472,878.43 at the end of the reporting period, up from CNY 204,922,049.14 at the end of the previous period[141]. - The company reported a significant increase in sales expenses, which rose to CNY 26,811,817.86 from CNY 13,104,068.51 in the previous year, reflecting a growth of 104.67%[136]. Dividends and Shareholder Returns - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - The company plans to distribute cash dividends of 2 RMB per 10 shares, totaling 50,823,172.40 RMB, and to increase capital by converting 15 shares for every 10 shares held, resulting in a total share capital of 635,289,655 shares[67]. - The company’s cash dividend policy is in compliance with its articles of association and shareholder resolutions, ensuring the protection of minority shareholders' rights[68]. Research and Development - Research and development expenses increased by 188.81% to CNY 12,265,344.55, reflecting a significant investment in innovation[36]. Acquisitions and Subsidiaries - The company completed the acquisition of 67% equity in Hangzhou Youben Biopharmaceutical Co., which is expected to enhance profitability, although the integration of resources is still ongoing[65]. - The total planned investment for the acquisition of 67% equity in Hangzhou Youben Biopharmaceutical Co. is 30,150 million RMB, with 7,650 million RMB invested during the reporting period[64]. - The company’s subsidiary, Inner Mongolia Jinhe Biological Products Co., Ltd., acquired a 67% stake in Hangzhou Jianliang Veterinary Biological Products Co., Ltd.[55]. Compliance and Governance - The company emphasizes that forward-looking statements in the report do not constitute a substantive commitment to investors, urging them to be aware of investment risks[5]. - The company’s governance practices are in compliance with relevant laws and regulations, ensuring proper information disclosure and investor relations management[73]. - The company has no violations in the management and disclosure of raised funds[56]. Market Conditions and Future Outlook - The company reported a significant increase in main business revenue and profit levels compared to the previous year, driven by improved market demand and lower production costs[65]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[144]. - The company anticipates reduced operational losses due to shorter seasonal maintenance periods compared to the previous year[66].