Financial Performance - The company's revenue for Q1 2022 was CNY 1,584,746,474.76, representing a 56.61% increase compared to CNY 1,011,910,611.71 in the same period last year[5]. - Net profit attributable to shareholders was CNY 106,924,931.52, up 37.00% from CNY 78,047,185.06 year-on-year[5]. - Basic and diluted earnings per share increased by 32.48% to CNY 0.2007 from CNY 0.1515 in the same period last year[5]. - Total operating revenue for the first quarter reached ¥1,584,746,474.76, a significant increase of 56.2% compared to ¥1,011,910,611.71 in the previous year[49]. - Net profit for the quarter was ¥106,869,101.26, representing a 37.5% increase from ¥77,680,503.48 year-over-year[49]. - The net profit attributable to the parent company was approximately ¥106.92 million, an increase from ¥78.05 million in the previous period, representing a growth of 37%[53]. - The total comprehensive income attributable to the parent company was approximately ¥102.53 million, compared to ¥80.63 million in the previous period, reflecting a growth of 27%[53]. Cash Flow - The net cash flow from operating activities was negative CNY 28,312,350.64, a decrease of 107.78% compared to CNY 364,115,945.78 in the previous year[5]. - Cash inflows from operating activities totaled approximately ¥1.85 billion, up from ¥1.18 billion in the previous period, indicating a growth of 57%[54]. - Cash outflows from operating activities amounted to approximately ¥1.88 billion, compared to ¥812.07 million in the previous period, resulting in a net cash flow from operating activities of approximately -¥28.31 million, down from ¥364.12 million[57]. - Cash inflows from financing activities were approximately ¥585.93 million, significantly higher than ¥62.67 million in the previous period, showing an increase of 834%[60]. - The net cash flow from financing activities was approximately -¥33.52 million, compared to -¥203.46 million in the previous period, indicating an improvement[60]. - The cash and cash equivalents at the end of the period were approximately ¥319.92 million, down from ¥377.32 million in the previous period[60]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,173,266,717.34, a 3.66% increase from CNY 5,955,165,411.81 at the end of the previous year[7]. - Total liabilities rose to ¥3,287,407,231.71, up from ¥3,171,782,359.89, indicating an increase of 3.6%[45]. - The company's total liabilities increased, with contract liabilities rising by 25.81% due to expanded sales activities[13]. Research and Development - Research and development expenses grew by 29.91%, reflecting the company's commitment to innovation and product development[14]. - Research and development expenses for the quarter were ¥17,432,842.73, up 30.5% from ¥13,419,264.15 in the previous year[49]. - The company is advancing several R&D projects, including improvements in chili red pigment production processes aimed at enhancing product yield and quality[32]. - The company is optimizing the production process for stevia and marigold, with the goal of achieving large-scale production to meet market demand[32]. - The company has completed the pilot test verification for the development of rutin products and is currently conducting summary analysis[35]. Market and Sales - The company experienced a 60.50% increase in cash received from sales of goods and services compared to the previous year[18]. - The sales volume of chili red pigment increased by over 30% year-on-year, with sales revenue growing by over 40% due to rising raw material costs[32]. - The sweet stevia sugar sales revenue exceeded 60 million yuan, achieving a year-on-year doubling in revenue[32]. - The health food business generated over 20 million yuan in revenue, leveraging the company's raw material and production advantages[32]. - The company is focusing on market expansion and risk control in its cottonseed business, with orderly progress in its New Third Board listing[32]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,306, with the largest shareholder holding 18.43%[21]. - The largest shareholder, Lu Qingguo, held 98,196,051 shares, with 73,647,038 shares pledged[24]. - The total number of restricted shares at the beginning of the period was 107,093,569, with 1,443,822 shares released during the period[28]. - The company has a commitment from certain executives not to transfer their shares for specified periods after leaving their positions[28]. Other Financial Metrics - The weighted average return on equity was 3.77%, up from 3.47% in the previous year, indicating improved profitability[5]. - Cash dividends and interest payments increased by 60.64% year-on-year, attributed to the growth in financing scale and corresponding interest expenses[19]. - The company reported a gross profit margin of approximately 13.5% for the quarter, compared to 12.2% in the same period last year[49]. - The total equity attributable to shareholders increased to ¥2,888,284,610.78 from ¥2,785,482,526.20, reflecting a growth of 3.7%[45].

Financial Performance - The company's revenue for Q3 2021 reached ¥1,105,865,310.31, representing a year-on-year increase of 25.38%[4] - Net profit attributable to shareholders was ¥70,914,808.74, up 32.29% compared to the same period last year[4] - The net profit excluding non-recurring gains and losses was ¥67,025,215.57, reflecting a significant increase of 74.63% year-on-year[4] - Total operating revenue for Q3 2021 reached ¥3,205,015,929.74, an increase of 18.3% compared to ¥2,708,004,737.07 in the same period last year[56] - Net profit rose to ¥258,946,990.39, compared to ¥204,195,444.07 in the previous period, marking an increase of about 26.73%[59] - The total profit increased to ¥291,522,245.48 from ¥239,316,633.13, showing a growth of approximately 21.83%[59] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥4,142,085,245.23, a decrease of 11.01% from the end of the previous year[4] - Total liabilities reduced to ¥1,442,909,818.40, down 44% from ¥2,594,943,316.89, indicating improved financial stability[55] - The company's equity attributable to shareholders increased to ¥2,701,001,130.64 from ¥2,064,141,483.17, a growth of 30.9%[55] - Accounts receivable decreased to ¥233,937,292.60 from ¥295,103,396.78, a reduction of 20.8% year-over-year[48] - Inventory levels significantly dropped to ¥902,109,371.50, down 49.7% from ¥1,792,640,449.91 at the end of 2020[48] Cash Flow - The company's cash flow from operating activities for the year-to-date was ¥1,282,564,727.68, showing a decline of 8.69% compared to the previous year[4] - Cash inflow from operating activities totaled ¥3,590,017,777.69, compared to ¥3,252,429,712.19 in the previous period, an increase of about 10.39%[63] - Cash received from financing activities decreased by 66.67% year-on-year, primarily due to the absence of new convertible bond issuances in the reporting period[18] - Cash inflow from investment activities was CNY 701,399,445.34, significantly higher than CNY 4,373,281.46 in the previous period[1] Investments and Growth - The company plans to invest 26.08 million USD in Zambia to expand its natural colorant project and establish a lutein extraction factory[28] - Investment income increased by 150.27% year-on-year, driven by effective cash management and improved performance from associated companies[12] - The company is actively developing a health food business with a focus on OEM models, achieving sales revenue of over 35 million yuan, which is more than double the previous year[28] - The company has a strategy to expand its market presence through potential acquisitions and partnerships, as indicated by its recent activities[45] Research and Development - The company is implementing a market-oriented R&D model to enhance product stability and improve extraction rates for various natural products[28] - The company is actively collaborating with several universities and research institutions, including China Agricultural University and Zhejiang University, to enhance its R&D capabilities[29] - The company has completed small-scale process development for the Rutin product and is currently conducting pilot tests[32] - The company has developed a new product based on the extraction of tea polyphenols, which meets market demand and has completed trial production[32] Shareholder Information - The total number of common shareholders at the end of the reporting period was 13,315, an increase from 12,882 at the end of July 2021[38] - The largest shareholder, Lu Qingguo, holds 18.43% of the shares, amounting to 98,196,051 shares, with 32,700,000 shares pledged[36] - The company issued 630 million RMB convertible bonds, with a conversion price of 12.25 RMB per share, and 6,273,758 bonds were converted into shares[44] - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three shareholders alone holding over 25%[36] Operational Efficiency - The company experienced a 65.95% decrease in short-term borrowings, attributed to increased operational cash flow and reduced accounts receivable[11] - The gross profit margin for natural colorants and spices decreased by 3.01% year-on-year, while the gross profit margin for cottonseed products decreased by 2.29%[24] - Total operating costs increased to ¥2,968,337,074.25 from ¥2,476,200,994.05, representing a growth of approximately 19.87% year-over-year[59] - Research and development expenses increased to ¥57,554,798.30 from ¥51,811,347.28, reflecting a growth of approximately 11.4%[59]

Financial Performance - The company reported a total revenue of 532,773,991 RMB for the year 2020, with a cash dividend distribution of 1 RMB per 10 shares to all shareholders[7]. - The company's operating revenue for 2020 was CNY 3,912,935,282.07, representing a 19.84% increase compared to CNY 3,265,232,815.43 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 267,741,336.03, a 38.32% increase from CNY 193,572,517.02 in 2019[20]. - Basic earnings per share for 2020 were CNY 0.5540, up 46.99% from CNY 0.3769 in 2019[20]. - The total assets at the end of 2020 were CNY 4,654,478,102.66, reflecting a 3.27% increase from CNY 4,507,082,722.33 at the end of 2019[20]. - The net assets attributable to shareholders increased by 18.08% to CNY 2,064,141,483.17 from CNY 1,748,100,417.02 in 2019[20]. - The company reported a quarterly revenue of CNY 1,204,930,544.82 in Q4 2020, which was the highest among the four quarters[23]. - The diluted earnings per share for 2020 were CNY 0.5275, a 39.96% increase from CNY 0.3769 in 2019[20]. - The weighted average return on equity for 2020 was 14.36%, up from 10.65% in 2019[20]. - The company reported a non-operating income of approximately ¥42.24 million, a significant increase from ¥15.08 million in 2019, representing a growth of 179.5%[27]. - The company received government subsidies amounting to ¥53.76 million in 2020, compared to ¥19.49 million in 2019, indicating a growth of 175.5%[27]. Market Strategy and Development - The company aims to build a global natural extract industry base, emphasizing the importance of global resource allocation to achieve this goal[5]. - The company’s development strategy includes expanding its market presence and enhancing product offerings through new technologies and research[5]. - The company is committed to addressing challenges posed by international operations, including legal and cultural differences, to ensure sustainable growth[5]. - The company has established raw material bases in regions such as Xinjiang, Yunnan, and India, and is currently trialing raw material cultivation in Zambia[34]. - The company employs a market-oriented R&D model that includes stages from small trials to industrial production, ensuring alignment with market needs[34]. - The company has a complete procurement, R&D, production, and sales model, continuously improving its operational strategies based on market demands[34]. - The company is focusing on the rapid development of secondary products, including spice extracts and nutritional extracts, to improve profitability and operational resilience[166]. - The company intends to expand its OEM business in health food products and develop new products in the premium oil sector, aiming for significant growth in these areas[168]. Risk Management - The company plans to conduct thorough research before overseas investments to mitigate risks associated with foreign laws, taxes, and political stability[5]. - The company will actively use financial instruments to accelerate foreign exchange settlement and reduce the impact of exchange rate volatility on its operating performance[5]. - The company has not identified any new significant risks that could adversely affect its operations in the next reporting period[5]. - Foreign exchange fluctuations pose a risk as overseas revenue is a significant part of the company's income, primarily priced in USD; the company plans to use financial instruments to mitigate these risks[182]. - The company will conduct thorough research before overseas investments to minimize risks associated with international operations[181]. Research and Development - The company is committed to building a first-class research and development platform for natural extracts, attracting top talent to drive technological innovation[53]. - The company has established 21 technology platforms, including 5 national-level platforms, enhancing its research and development capabilities[56]. - The company has been awarded 65 technology-related awards at national, provincial, and municipal levels, including 2 National Science and Technology Progress Second Prizes[56]. - The company has completed 35 technology achievement appraisals, with 9 recognized as "internationally leading" and 12 as "internationally advanced"[57]. - The company has applied for 341 patents, with 216 granted, and published 143 papers out of 198 submissions[57]. - The company is committed to increasing R&D efforts to enhance product competitiveness in response to potential changes in export tax rebate policies[181]. Product Offerings and Market Position - The company’s product offerings include natural pigments, spices, nutritional extracts, and oils, catering to various industries such as food, pharmaceuticals, and cosmetics[31]. - Morning Glory Biotechnology has become the largest listed company in the domestic plant extract industry and ranks among the top tier globally, gradually catching up with or surpassing foreign leaders like Frutarom and Kalsec[37]. - The company has three main products—capsanthin, capsaicin, and lutein—ranking first or among the top in the world, with other products like pepper extract and curcumin in a rapid growth phase[37]. - The company’s main products, including chili red, lutein, and lycopene, rank among the top in the world, with stable growth in market share and profitability[86]. - The company aims to develop around ten world-leading products in the natural extraction industry, leveraging its 20 years of experience and strong brand reputation[86]. Financial Management and Shareholder Relations - The company’s profit distribution plan was approved, with no new shares being issued from capital reserves[7]. - The total cash dividend distributed for 2020 was 53.28 million yuan, representing 19.90% of the consolidated net profit attributable to shareholders[197]. - The cash dividend per 10 shares was set at 1.0 yuan (including tax), with a total of 532,773,991 shares as the base for distribution[190]. - The company plans to maintain a minimum cash dividend of 10% of the distributable profit annually, barring significant investment plans or cash expenditures[188]. - The company has consistently increased its cash dividend over the past three years, with 2020 showing a significant increase compared to previous years[195]. - The company has established a commitment to notify and facilitate any business opportunities that may compete with its operations[199]. - The company has implemented a share incentive plan to align the interests of shareholders and management[200]. Operational Efficiency - The company saved nearly 20,000 working hours through standardized and IT-driven management processes, significantly improving work efficiency and accuracy[80]. - The company has completed several projects aimed at improving production efficiency and reducing costs, including the installation of a new biomass steam boiler[124]. - The company has successfully implemented safety enhancement modifications in the production workshop[121]. - The company has completed the automatic palletizing robot transformation in the filling workshop, improving automation levels[121]. - The company aims to improve its production efficiency and cost advantages through integrated production and resource utilization strategies[164]. Environmental and Social Responsibility - The company is committed to enhancing its environmental protection measures and has invested in strict environmental monitoring systems to comply with increasing regulatory standards[180]. - The company donated over 10 million yuan worth of medical supplies during the pandemic, including alcohol, masks, protective clothing, and lycopene soft capsules, contributing to the fight against COVID-19[81].

Financial Performance - The total revenue for 2019 was CNY 3,265,232,815.43, representing a 6.59% increase from CNY 3,063,440,575.35 in 2018[17]. - The net profit attributable to shareholders for 2019 was CNY 193,572,517.02, a 33.24% increase compared to CNY 145,283,057.15 in 2018[17]. - The net profit after deducting non-recurring gains and losses was CNY 178,488,174.16, up 47.25% from CNY 121,216,504.02 in 2018[17]. - The basic earnings per share for 2019 was CNY 0.3769, an increase of 33.04% from CNY 0.2833 in 2018[17]. - The total assets at the end of 2019 were CNY 4,507,082,722.33, a 34.25% increase from CNY 3,357,108,727.95 at the end of 2018[17]. - The net assets attributable to shareholders at the end of 2019 were CNY 1,748,100,417.02, a slight increase of 0.23% from CNY 1,744,120,502.21 at the end of 2018[17]. - The net cash flow from operating activities for 2019 was CNY -24,346,095.32, an improvement of 56.67% from CNY -56,182,968.88 in 2018[17]. - The weighted average return on equity for 2019 was 10.65%, up from 8.63% in 2018[17]. - The company reported a quarterly revenue of CNY 959,104,617.63 in Q4 2019, which was the highest among the four quarters[19]. Dividend Distribution - The profit distribution plan approved by the board proposes a cash dividend of 0.5 RMB per 10 shares, based on a total of 481,561,019 shares[4]. - The company distributed a cash dividend of 0.5 yuan per 10 shares, totaling 24,078,050.95 yuan for the year 2019[147]. - The total cash dividend, including other methods, amounted to 171,545,884.66 yuan, representing 100% of the total distributable profit[148]. - The cash dividend for 2019 accounted for 12.44% of the consolidated net profit attributable to shareholders[151]. - Over the past three years, the company has maintained a cash dividend distribution policy, with a minimum of 10% of the distributable profit allocated for cash dividends annually[145]. International Operations and Risks - The company aims to build a global natural extract industry base, with significant reliance on overseas revenue, which constitutes a large portion of total revenue[4]. - The company acknowledges potential risks from varying legal, tax, and foreign exchange regulations in different countries, which could adversely affect performance[4]. - The company’s overseas income is primarily settled in USD, making it sensitive to currency fluctuations[4]. - Future export volumes are expected to grow as production scales up, but may be impacted by changes in foreign exchange policies[4]. - The company emphasizes the importance of thorough research before project investments to minimize risks associated with overseas operations[4]. - The company is exposed to exchange rate fluctuations due to a significant portion of its revenue being generated from overseas sales, primarily settled in USD[140]. - The company benefits from export tax rebate policies, which enhance its competitiveness in international markets, but any changes in these policies could impact operational costs[141]. Research and Development - The company is focused on R&D with a market-oriented approach, implementing a phased development model for new products[29]. - The company has established 21 technology platforms, including 5 national-level platforms and 12 provincial-level platforms, contributing to a total of 60 technology-related awards received[38]. - The company has applied for 324 patents, with 206 patents granted, and has published 128 papers, showcasing its strong focus on research and development[40]. - The company has developed new products such as green coffee bean extract and pepper oil resin, enhancing its product portfolio to meet market demands[37]. - The company invested CNY 184,718,776.76 in R&D in 2019, representing 5.66% of its operating revenue[84]. - The number of R&D personnel increased to 117 in 2019, accounting for 8.74% of the total workforce[84]. Production and Supply Chain - The company is expanding its raw material bases in regions like Xinjiang, India, and Yunnan, and is trial planting in Zambia[29]. - The company has established a stable supply chain by collaborating with local farmers and agricultural institutions in regions like Xinjiang and Yunnan, ensuring a steady supply of high-quality raw materials[46]. - The company has developed a unique "three-in-one" planting model in collaboration with seed companies to ensure stable raw material supply[46]. - The company has successfully commercialized high-purity, application-oriented products, breaking foreign monopolies in the high-end application market[37]. - The company has implemented a cost control system that significantly reduces raw material procurement costs and improves production efficiency[47]. Market Position and Sales - The company’s major products include natural pigments and extracts, with key products like chili red pigment and lutein leading the industry[27]. - In 2019, the company achieved a sales volume of 5,896 tons of chili red pigment, maintaining its position as the world's number one for twelve consecutive years[52]. - The sales volume of feed-grade lutein reached 385 million grams, representing a year-on-year growth of approximately 18%[52]. - The sales volume of food-grade lutein increased by about 62% to 43.67 million grams[53]. - The company expanded its planting of marigold in Xinjiang to over 150,000 acres and in Yunnan to nearly 40,000 acres, contributing to local farmers' income and government support[53]. Financial Management and Investments - The company has not identified any new significant risks that could adversely affect operations in the next reporting period[4]. - The company has established a management system for raised funds to protect investor rights and ensure proper usage[105]. - The company has committed to not engage in any business that directly or indirectly competes with its main operations, ensuring no similar products are produced[152]. - The company has a clear and transparent profit distribution policy, ensuring that minority shareholders have the opportunity to express their opinions[146]. - The company has not faced any major litigation or arbitration matters during the reporting period[165]. Environmental and Social Responsibility - The company is actively investing in environmental protection facilities and has implemented a strict environmental monitoring system to comply with increasing regulatory standards[140]. - The company has implemented a clean production system with wastewater and waste gas recycling, achieving compliance with environmental standards[190]. - The company donated approximately CNY 100,000 to local education and public welfare initiatives during the reporting period[188]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the annual report, ensuring no misleading statements or omissions[3]. - The company has established a safety management department and emphasizes regular maintenance of production equipment to ensure safety[187]. - The company has maintained a continuous relationship with its auditing firm for 7 years, with an audit fee of RMB 826,000[164].

Financial Performance - The company reported a significant increase in revenue, with total operating income reaching RMB 1.5 billion, representing a year-on-year growth of 25%[5]. - Total revenue for the reporting period reached ¥1,610,469,899.53, an increase of 24.27% compared to ¥1,295,956,241.87 in the same period last year[23]. - Net profit attributable to shareholders was ¥111,025,496.29, up 17.38% from ¥94,588,768.77 year-on-year[23]. - Basic earnings per share increased by 22.22% to ¥0.22, compared to ¥0.18 in the same period last year[23]. - The company's operating revenue for the reporting period reached RMB 1,610,469,899.53, representing a year-on-year increase of 24.27% compared to RMB 1,295,956,241.87 in the same period last year[69]. - The gross profit margin for the natural colorants/spices/nutrition and medicinal products segment increased, with revenue of RMB 825,206,000 and a gross profit of RMB 180,970,100, reflecting year-on-year growth of 37% and 27% respectively[71]. - The net profit for the first half of 2019 was CNY 108,847,705.09, representing a 16.7% increase from CNY 93,304,480.91 in the first half of 2018[188]. - The total comprehensive income for the first half of 2019 was CNY 111,386,001.00, compared to CNY 86,898,275.10 in the same period of 2018, reflecting a growth of 28.0%[189]. Cash Flow and Financial Position - Net cash flow from operating activities surged by 159.16% to ¥429,174,323.95, compared to ¥165,600,957.26 in the previous year[23]. - Cash and cash equivalents increased by 61.78%, mainly due to the accumulation of unused funds from guarantees and temporary receivables[36]. - The company's total liabilities decreased to RMB 1,515,847,690.53 from RMB 1,616,920,521.54, indicating a reduction in financial obligations[179][180]. - The company's equity attributable to shareholders rose to RMB 1,810,075,763.73 from RMB 1,744,120,502.21, reflecting retained earnings growth[180]. - The cash flow from financing activities showed a net outflow of CNY 249,536,789.45, compared to CNY 20,795,908.50 in the first half of 2018[196]. Investments and R&D - The company plans to continue increasing investments in natural colorants/spices/nutrition and medicinal products in the second half of the year to enhance operational performance in this segment[72]. - The company's R&D expenses amounted to RMB 68,232,441.46, a slight decrease of 2.53% from RMB 70,005,984.59 in the previous year, while R&D project costs increased significantly by 107.80% to RMB 26,095,760.42[70]. - The company has 20 technology platforms, including 5 national-level platforms, enhancing its R&D capabilities and industry technology support[40]. - The company has applied for 298 patents, with 181 patents granted, indicating a strong focus on innovation[43]. - The company has established a research center with advanced laboratories and is collaborating with universities to develop industry-leading products, including key technologies for natural extract crystallization[58]. Market and Product Development - The company remains a leader in the natural plant extract sector, with key products like chili red pigment and lutein ranking first in the industry[31]. - The company has seen rapid growth in products such as cottonseed dephenolized protein and other natural extracts, indicating a strong market expansion[31]. - The company achieved a sales volume of over 3,000 tons of its main product, chili red, representing a year-on-year growth of 31%[54]. - The sales volume of ordinary lutein increased by 35% year-on-year, further expanding market share[54]. - The company has developed and launched 6 types of SC health products, with 10 more in development and 6 registered health food products[54]. Risk Management and Compliance - The company is actively utilizing financial instruments such as export financing and forward foreign exchange contracts to mitigate currency fluctuation risks[5]. - Future growth strategies include thorough market research before project investments to minimize risks associated with overseas operations[5]. - The management has indicated that there are no significant risks that could adversely affect the company's operations in the next reporting period[5]. - The company is committed to maintaining compliance with international standards and certifications to enhance product safety and quality[11]. - The company has established a management system for raised funds to protect investor rights and ensure compliance with regulations[87]. Shareholder and Governance - No cash dividends or stock bonuses will be distributed to shareholders for this reporting period[6]. - The annual shareholders meeting had a participation rate of 35.93%, representing 183,910,738 shares, which is 35.93% of the total voting shares[115]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[116]. - The company reported a commitment compliance rate of 100% among its shareholders, with no violations found during the reporting period[119]. - The company has not reported any significant changes in the status of its pledged assets or raised funds management[88]. Social Responsibility and Environmental Impact - The company has increased investments in environmental protection facilities to comply with stricter regulations and reduce production impacts[110]. - The company has actively fulfilled its social responsibilities, including safety management and employee training programs[145]. - The company has expanded its marigold planting area to 130,000 mu, benefiting 29,000 impoverished households[145]. - The company has implemented low nitrogen combustion technology in its natural gas boilers, achieving ultra-low emissions standards[142].

Group 1: Company Overview - Morning Light Biological Technology Group Co., Ltd. is participating in the 2019 Annual Investor Online Reception Day on May 15, 2019 [1] - The company aims to provide comprehensive insights into its situation, development strategy, operational status, and sustainable development [1] Group 2: Event Details - The event will take place from 15:00 to 17:00 on May 15, 2019, organized by the Hebei Regulatory Bureau of the China Securities Regulatory Commission [1] - Investors can participate through the online platform "Panorama Roadshow" [1] Group 3: Engagement and Interaction - Company executives will engage in interactive communication with investors during the event [1] - The company encourages active participation from investors [1]

Financial Performance - Operating revenue for the reporting period was ¥847,192,398.50, up by 2.44% compared to the same period last year[8] - Net profit attributable to shareholders of the listed company was ¥33,358,284.51, a decrease of 10.72% year-on-year[8] - Basic earnings per share were ¥0.065, down by 10.96% compared to the same period last year[8] - The weighted average return on net assets was 1.95%, a decrease of 0.41% year-on-year[8] - The total operating revenue for the third quarter was CNY 541.31 million, a decrease of 17% from CNY 652.29 million in the same period last year[74] - The net profit for the third quarter was CNY 32.76 million, down 11.5% from CNY 36.90 million year-over-year[74] - The total comprehensive income for the third quarter was CNY 30.35 million, slightly down from CNY 31.48 million in the same quarter last year[75] - The total profit for the third quarter was CNY 34.94 million, compared to CNY 47.39 million in the same period last year, representing a decrease of 26.3%[74] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,979,567,594.62, an increase of 3.72% compared to the end of the previous year[8] - Net assets attributable to shareholders of the listed company were ¥1,725,699,664.20, reflecting a growth of 6.20% year-on-year[8] - The total liabilities decreased to CNY 1,088,162,762.92 from CNY 1,127,625,870.63, a decline of 3.5%[70] - The company's non-current assets totaled approximately ¥958.26 million, up from ¥848.52 million, reflecting a growth of 12.9%[66] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥365,000,248.53, down by 39.16% compared to the previous year[8] - Cash received from borrowings increased by 161.67% year-on-year, reflecting the company's growing financing needs[28] - The net cash flow from operating activities for Q3 2018 was CNY 384,135,820.69, a decrease of 6.4% compared to CNY 412,933,412.44 in Q3 2017[90] - The cash and cash equivalents at the end of Q3 2018 were CNY 150,479,058.62, up from CNY 41,311,342.14 at the end of Q3 2017[91] Expenses - Sales expenses rose by 35.36% compared to the same period last year, due to increased product sales and related shipping costs[24] - Interest expenses increased by 33.71% year-on-year, corresponding to a rise in short-term borrowings[25] - The company's financial expenses include interest expenses of CNY 31,967,150.30, which increased from CNY 21,457,010.23 in the previous period[84] - The operating costs for the third quarter were CNY 482.10 million, down from CNY 583.53 million year-over-year, indicating a reduction of 17.4%[77] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 12,032[12] - The company has a profit distribution policy that mandates at least 10% of the annual distributable profit to be distributed in cash[48] - The company aims for cumulative cash distributions over any three consecutive fiscal years to be no less than 30% of the average annual distributable profit for those years[48] - The company will only distribute cash dividends if the distributable profit is positive and cash flow is sufficient to ensure ongoing operations[51] Research and Development - Development expenses surged by 374.89% year-on-year, reflecting increased spending on health food research and development[20] - The company is currently developing 17 projects, including the stevia sugar project aimed at optimizing production processes and improving yield and energy consumption[37] - Research and development expenses for Q3 2018 were CNY 5,471,338.29, down from CNY 6,948,270.13, a decrease of 21.2%[72] Market and Sales Performance - Revenue from natural colorants/spices/nutritional and medicinal products decreased by 7.35% year-on-year, while the gross profit margin decreased by 2.62%[35] - Sales of cottonseed products (self-produced) increased by 34.08% year-on-year, achieving a gross profit of approximately 65.47 million yuan, an increase of about 63.80 million yuan year-on-year[34] - The sales scale of pepper extract increased by over 50% year-on-year, and the sales of lycopene increased by over 500% year-on-year, indicating strong growth potential for these products[34] Investments and Projects - The company plans to establish a wholly-owned subsidiary in Yanchi County, Xinjiang, with an investment of RMB 10 million to enhance its competitiveness in the natural extract industry[41] - The company has completed the installation of a new production line capable of processing 60 tons of ultrafine powder daily at its Kashgar facility[40] - The company is implementing several automation and efficiency improvement projects, including the installation of touch screens for real-time monitoring and control in various workshops[40]

Financial Performance - Total revenue for the reporting period reached CNY 1,295,956,241.87, a slight increase of 0.50% compared to CNY 1,289,526,401.45 in the same period last year [20]. - Net profit attributable to shareholders increased by 20.47% to CNY 94,588,768.77 from CNY 78,515,870.97 year-on-year [20]. - The net profit after deducting non-recurring gains and losses rose by 24.95% to CNY 84,610,787.96 compared to CNY 67,714,097.68 in the previous year [21]. - Basic earnings per share improved by 12.50% to CNY 0.18 from CNY 0.16 in the same period last year [21]. - Total assets at the end of the reporting period were CNY 2,985,667,296.53, reflecting a growth of 3.93% from CNY 2,872,804,942.41 at the end of the previous year [21]. - Net assets attributable to shareholders increased by 4.29% to CNY 1,694,746,671.84 from CNY 1,624,996,886.83 at the end of the previous year [21]. - The net cash flow from operating activities decreased by 45.29% to CNY 165,600,957.26 from CNY 302,700,669.11 in the same period last year [21]. - The company reported a total of CNY 9,977,980.81 in non-recurring gains and losses for the reporting period [25]. Investment and Financing - The total amount of raised funds was ¥99,273.45 million, with no new investments during the reporting period, and a cumulative change in use of funds amounting to ¥3,452 million, representing 3.48% of total raised funds [86]. - The company raised a total of RMB 690 million from its initial public offering, with a net amount of RMB 649.09 million after deducting fees [88]. - In a non-public offering, the company raised RMB 347.8 million, resulting in a net amount of RMB 343.65 million after expenses [89]. - The company has committed to various investment projects, including a project for producing 20,000 tons of pigment raw materials, which has achieved 99.92% of its investment target [91]. - The supercritical technology project for producing 2,000 tons of premium natural pigments has reached 65.41% of its investment target [91]. - The company has invested RMB 11.23 million in a project for producing 60,000 tons of plant protein, achieving 92.54% of its investment target [91]. - The company has established a management system for the use of raised funds to protect investor rights, which has been approved by the shareholders' meeting [89]. Research and Development - The company’s R&D model focuses on market-driven innovation, utilizing a phased approach from small trials to industrial production [32]. - The company has a strong technological advantage, recognized as a national enterprise technology center, with multiple research platforms and projects funded by national programs [36]. - A total of 54 approved technology projects, including 17 national-level projects and 25 provincial-level projects, have been established, enhancing the company's research and development capabilities [39]. - The company has applied for 249 patents, with 159 patents granted, demonstrating its commitment to innovation and intellectual property protection [39]. - The company has initiated multiple R&D projects in collaboration with universities, focusing on plant ingredient analysis and antioxidant properties, with several projects making clear progress [54]. Market and Operations - The company operates in the natural plant extract sector, with leading products including chili red pigment, chili extract, and lutein, which are at the forefront of the industry [29]. - The company has seen a 32.07% increase in construction projects, primarily due to investments in plant extract projects in Yunnan and other locations [34]. - The company has expanded its overseas investments, with significant assets in India and Zambia, contributing to its global footprint [35]. - The company maintains a sales model that combines distributor distribution and direct sales, enhancing its market coverage and partnerships [32]. - The company has formed long-term strategic partnerships with major clients, enhancing its competitive position in both domestic and international markets [43]. Risk Management - The company plans to mitigate exchange rate risks by utilizing financial products for export financing and gradually cultivating the domestic market [5]. - The company aims to enhance the social value of its overseas subsidiaries to reduce the impact of cultural and diplomatic risks [5]. - The company is committed to addressing management risks through proactive measures in foreign subsidiaries [5]. - The company has not encountered any significant risks that could adversely affect its operations in the next reporting period [5]. - The company is exposed to foreign exchange risks due to its significant export activities, with plans to utilize financial instruments to mitigate these risks [111]. Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the board of directors and management [4]. - The board of directors has confirmed that all members attended the meeting to review this report [4]. - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period [98][99][100]. - There were no significant litigation or arbitration matters during the reporting period, reflecting a stable legal environment for the company [123]. - The company has not faced any penalties or corrective actions during the reporting period, indicating compliance with regulations [124]. Environmental and Social Responsibility - The cumulative emissions of SO₂ and NOx during the reporting period were 37.42 tons and 32.14 tons, respectively, which are 36.44% and 17.94% of the annual pollutant discharge permit standards [146]. - The company received significant subsidy income during the reporting period, including CNY 1,000,000 for technology development and CNY 2,000,000 for agricultural development [148]. - The company has implemented a natural gas conversion for its coal-fired boilers to reduce total pollutant emissions [146]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 98,6101 [159]. - Major shareholder Lu Qingguo held 18.73% of the shares, totaling 96,223,091 shares, with 2,806,060 shares increased during the reporting period [159]. - The total number of shares increased from 366,954,422 to 513,736,190 due to a capital reserve conversion, adding 146,781,768 shares [153]. - The total number of restricted shares at the end of the reporting period was 139,743,778, with 101,423,896 shares being restricted [157].

Financial Performance - Total revenue for the first quarter of 2018 was CNY 638,533,119.94, representing a 5.81% increase compared to CNY 603,451,351.61 in the same period last year[7] - Net profit attributable to shareholders was CNY 47,056,281.09, a significant increase of 35.64% from CNY 34,691,443.17 year-on-year[7] - The net profit after deducting non-recurring gains and losses was CNY 42,329,021.60, up 45.51% from CNY 29,550,051.80 in the previous year[7] - Basic earnings per share rose to CNY 0.1282, reflecting a 35.66% increase compared to CNY 0.0945 in the same quarter last year[7] - The company reported a gross profit margin of approximately 18.5% for Q1 2018, compared to 15.4% in the same quarter last year[84] - The total comprehensive income for the first quarter was CNY 6,232,558.99, compared to CNY 25,730,630.09 in the previous period, indicating a significant decrease[89] - Basic and diluted earnings per share were both CNY 0.0170, down from CNY 0.0701 in the previous period, reflecting a decline in profitability[89] Cash Flow and Liquidity - The net cash flow from operating activities decreased by 38.83% to CNY 46,890,743.50, down from CNY 76,660,524.28 in the previous year[7] - Cash inflow from operating activities totaled CNY 759,257,042.08, an increase from CNY 685,196,795.00 year-over-year[91] - The net cash flow from operating activities was CNY 46,890,743.50, down from CNY 76,660,524.28 in the previous period, indicating a reduction in cash generation[91] - Cash outflow from investing activities was CNY 23,748,693.94, compared to CNY 20,665,077.36 in the previous period, showing an increase in investment expenditures[92] - The net cash flow from financing activities was CNY 44,220,535.62, a significant improvement from a net outflow of CNY 133,022,606.90 in the previous period[92] - The ending balance of cash and cash equivalents was CNY 192,111,616.49, slightly up from CNY 190,214,445.36 in the previous period[92] - The company received CNY 196,450,796.00 in cash from borrowings, compared to CNY 75,000,000.00 in the previous period, indicating increased financing activity[92] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,899,666,579.38, a 0.94% increase from CNY 2,872,804,942.41 at the end of the previous year[7] - The total liabilities as of March 31, 2018, were 1,236,941,115.15 CNY, down from 1,248,882,438.63 CNY at the beginning of the period[78] - The total equity attributable to shareholders of the parent company was 1,664,421,220.28 CNY as of March 31, 2018, compared to 1,624,996,886.83 CNY at the beginning of the period[78] - Cash and cash equivalents increased to 192,111,616.49 CNY from 127,304,108.03 CNY[75] - Accounts receivable decreased to 206,510,944.18 CNY from 217,323,409.51 CNY[75] - Inventory slightly decreased to 1,462,295,381.72 CNY from 1,467,265,771.90 CNY[75] - Short-term borrowings increased to 949,101,820.23 CNY from 891,877,841.40 CNY[77] Revenue Breakdown - Revenue from plant extract products was 321.20 million yuan, with a year-on-year decline of 13.16%[34] - Revenue from cottonseed products (self-produced) increased by 49.60% year-on-year, with a gross margin of 12.96%[34] - The overall revenue and gross profit from cottonseed business increased by 36% and 61% year-on-year, respectively[36] - The company’s main products, such as chili red pigment and lutein, saw sales volume growth exceeding 30% year-on-year despite price adjustments[35] Investment and Projects - Total raised funds for the quarter amounted to 64,908.51 million[62] - The project for producing 20,000 tons of pigment granules has achieved a completion rate of 99.92%[62] - The project for producing 2,000 tons of premium natural color has a completion rate of 65.41%[62] - The project for producing 60,000 tons of plant protein has a completion rate of 92.54%[62] - The project for establishing the Natural Pigment Engineering Technology Research Center in Hebei has a completion rate of 87.38%[62] - The project for producing 40,000 tons of dephenolized cottonseed protein has achieved a completion rate of 100%[62] - The project for producing 1,000 tons of water-soluble color has a completion rate of 99.62%[62] Strategic Initiatives and Challenges - The company aims to build a global natural extract industry base, facing challenges from international legal and tax environments[10] - The company has not identified any new significant risks that could adversely affect its operations in the next reporting period[10] - The company faces management risks due to increasing complexity from multiple subsidiaries, prompting the implementation of a divisional management model to improve efficiency[50] - The natural extract industry is experiencing intensified competition, leading the company to enhance market share through strategic alliances and customer benefits[51] - The company is addressing technology risks associated with rapid changes in the industry by fostering collaboration with experts and teams to accelerate business development[51] - The company has established strategic partnerships with key raw material suppliers to ensure timely supply and stable prices, particularly for major raw materials like chili and marigold[53] Research and Development - Development expenses increased by 207.65% compared to the beginning of the period, driven by increased R&D investments in health product projects[19] - Collaborative research projects with universities have been established, focusing on plant ingredient analysis and antioxidant properties, with several projects achieving significant progress[47] - The company has passed BRC supervision and completed internal audits for cGMP, enhancing its certification standards[48] - A new training mechanism for master's and doctoral candidates has been established, emphasizing practical experience to strengthen skills[49] Dividend Policy - The cash dividend policy stipulates that the company will distribute at least 10% of the annual distributable profit in cash, provided there are no major investment plans[68] - The proposed cash dividend for 2017 is 29,356,353.76 CNY, representing 20.55% of the net profit attributable to ordinary shareholders[69] - In 2016, the cash dividend was 20,968,824.16 CNY, which accounted for 22.68% of the net profit attributable to ordinary shareholders[69] - The cash dividend for 2015 was 10,828,543.60 CNY, representing 15.72% of the net profit attributable to ordinary shareholders[69]

Financial Performance - The company's operating revenue for 2017 was ¥2,772,135,813.82, representing a 29.49% increase compared to ¥2,140,846,680.03 in 2016[16]. - The net profit attributable to shareholders for 2017 was ¥142,829,814.13, a 54.45% increase from ¥92,474,001.24 in 2016[16]. - The net profit after deducting non-recurring gains and losses was ¥115,067,213.92, up 56.66% from ¥73,452,399.33 in 2016[16]. - The total assets at the end of 2017 were ¥2,872,804,942.41, reflecting a 15.26% increase from ¥2,492,400,096.21 at the end of 2016[16]. - The company reported a basic earnings per share of ¥0.3916 for 2017, which is a 54.11% increase from ¥0.2541 in 2016[16]. - The company's revenue reached over 2.7 billion yuan, setting a historical high, with a year-on-year increase in inventory due to expanded operational scale[31]. - The net cash flow from operating activities for 2017 was -¥145,946,531.30, an improvement of 54.62% from -¥321,620,459.29 in 2016[16]. - The total operating revenue for 2017 reached ¥2,772,135,813.82, representing a year-on-year increase of 29.49% compared to ¥2,140,846,680.03 in 2016[68]. - Revenue from natural plant extraction products amounted to ¥1,403,244,053.72, accounting for 50.62% of total revenue, with a year-on-year growth of 23.10%[69]. - The domestic revenue was ¥2,085,387,299.93, which is 75.23% of total revenue, showing a significant increase of 36.11% from the previous year[69]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.80 RMB per 10 shares to all shareholders, based on a total of 366,954,422 shares[5]. - The company has proposed a capital reserve conversion plan, offering 4 additional shares for every 10 shares held[5]. - In 2017, the cash dividend accounted for 20.55% of the net profit attributable to shareholders, which was 142,829,814.13 yuan[169]. - The company has a policy to distribute at least 10% of the distributable profit as cash dividends annually, provided there are no major investment plans or cash expenditures[163]. - The total undistributed profit as of December 31, 2017, was 36,732.26 million yuan, with a capital reserve of 81,589.01 million yuan[166]. - The company has a clear and transparent profit distribution mechanism, ensuring the protection of minority shareholders' rights[164]. - The company has consistently increased its cash dividends over the past three years, reflecting a commitment to returning value to shareholders[169]. Risk Management - The company will actively use financial products to mitigate exchange rate fluctuation risks, including export financing and forward foreign exchange settlements[5]. - The company has established a comprehensive risk management strategy to address potential challenges in international markets[5]. - The company is committed to reducing the impact of foreign exchange management and tax changes on its operations[5]. - The company has no new significant risks that could adversely affect its operations in the next reporting period[5]. - The company acknowledges challenges in market analysis and product development, particularly in cottonseed products and new product development, indicating a need for improved management standards[64]. - The company is exposed to foreign exchange risks due to a significant portion of revenue being generated from exports, primarily settled in USD[157]. - The company is at risk of changes in export tax rebate policies, which could affect operating costs and overall profitability[157]. Research and Development - The company has established a strong talent pool for natural plant extraction research, improving its innovation and production capabilities[39]. - The company has completed 12 key R&D projects, with five new products, including microemulsion of lycopene, entering trial production and market[51]. - The company has developed new products such as green coffee bean extract and various pepper oil resins, enhancing its R&D capabilities[36]. - Research and development investment reached approximately CNY 125.9 million in 2017, accounting for 4.54% of operating revenue[88]. - The number of R&D personnel increased to 85, representing 9.11% of the total workforce, up from 6.86% in 2016[88]. - The company is actively developing multiple R&D projects, including stevia sugar and tomato lycopene, with ongoing production trials and optimization efforts[84]. - The company has made significant progress in the development of various extraction and production processes, including for lutein and curcumin, with several projects nearing completion[85]. Market Expansion and Strategy - The company aims to build a global natural extract industry base, indicating a long-term development goal focused on global resource allocation[5]. - The company is focusing on expanding its plant extract product line, which has over 300 varieties available for industrial extraction[126]. - The company aims to leverage government support for agricultural development to enhance its upstream supply chain[126]. - The company plans to expand its market share and enhance product competitiveness through technological advancements and strategic partnerships[69]. - The company is actively pursuing market expansion opportunities, including establishing raw material bases in Zambia and India[148]. - The company aims to build a world-class natural extract industry base, with a strategic goal of creating a 100 billion enterprise and a trillion industry cluster[149]. - The company plans to expand its production capabilities by establishing new extraction factories for lycopene and grape seed in the USA and Italy, leveraging existing facilities in India and Zambia[149]. Operational Efficiency - The company has established raw material bases in regions like Xinjiang and India, implementing a "farmer + government + enterprise" model for raw material procurement[27]. - The sales model combines distributor sales and direct sales, aiming for global market coverage and fostering partnerships within the industry ecosystem[29]. - The company achieved a daily processing capacity of over 700 tons for chili particles across three lines in Xinjiang, surpassing the combined production of all other global competitors[55]. - The company completed the transformation of the saponification production line, achieving a daily processing capacity of no less than 15 tons and reducing raw material processing costs by over 20%[86]. - The capacity of the grape seed extract project was increased to a daily input of 20 tons, enhancing automation control and reducing labor costs[86]. - The company reduced labor costs by 25% through the renovation of the spray drying process in the medicinal division[86]. - The company is committed to technological advancements and production efficiency, with multiple projects aimed at expanding production capacity and improving product quality[142]. Corporate Governance and Compliance - The company has a clear and transparent profit distribution mechanism, ensuring the protection of minority shareholders' rights[164]. - The company has not made any significant equity investments during the reporting period[106]. - There were no changes in the use of raised funds reported during the period[107]. - The company has not faced any major litigation or arbitration matters during the reporting period[178]. - There were no significant penalties or rectification measures during the reporting period[179]. - The company has maintained good integrity status, with no significant debts or court judgments pending[180]. - There were no major related party transactions reported during the period[185]. Employee and Community Engagement - The company is focused on increasing local employment and income in regions where its subsidiaries operate to improve community relations[5]. - The average salary increase for employees in 2017 exceeded 20%, alongside increased incentives to boost motivation and creativity[62]. - The company completed 67 new investment and management innovation projects in 2017, with over 3,700 employee suggestions leading to a reward of 480,000 yuan[56].