晨光生物科技集团股份有限公司 2018 年年度报告全文 晨光生物科技集团股份有限公司 2018 年年度报告 2019-022 2019 年 03 月 1 晨光生物科技集团股份有限公司 2018 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人卢庆国、主管会计工作负责人周静及会计机构负责人(会计主管 人员)宋书军声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 | --- | |-----------------------------------------------------------------------------------------| | | | 报告期，公司无新增加的可能对公司下一报告期经营产生不利影响的重大 | | 风险。公司的长期发展目标是 —— 建设世界天然提取物产业基地，要实现该目 | | 标，全球化资源配置是必由之路。但境外的法律、税收、外汇管理、人文环境 | | 以及外交关系 ...

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].

Financial Performance - Operating revenue increased by 91.55% to CNY 826,974,274.49 for the current period, and by 43.24% to CNY 2,116,500,675.94 year-to-date[8] - Net profit attributable to shareholders increased by 31.49% to CNY 37,362,863.21 for the current period, and by 45.86% to CNY 115,878,734.18 year-to-date[8] - Basic earnings per share rose by 30.77% to CNY 0.102 for the current period, and by 46.08% to CNY 0.317 year-to-date[8] - The weighted average return on equity increased to 2.36% for the current period, up from 0.46%[8] - Total operating revenue for Q3 2017 reached CNY 826,974,274.49, a significant increase from CNY 431,728,825.07 in the same period last year, representing a growth of approximately 91.5%[73] - The net profit for the third quarter of 2017 was CNY 36,896,722.54, compared to CNY 28,868,404.67 in the previous year, reflecting a growth of about 28%[74] - The total profit for the third quarter was CNY 135,736,290.26, an increase from CNY 97,392,232.13 in the previous year, indicating a growth of around 39.3%[82] Cash Flow and Assets - Net cash flow from operating activities reached CNY 599,919,211.88, an increase of 79.95% year-to-date[8] - Cash and cash equivalents decreased by 52.44% compared to the beginning of the year, primarily due to increased business investments and a significant procurement period starting from the end of Q3[21] - The company’s cash and cash equivalents decreased from CNY 266.85 million at the beginning of the period to CNY 126.92 million by the end of the period[65] - The company’s total assets decreased to CNY 2,133,963,797.04 from CNY 2,492,400,096.21, reflecting a decline of approximately 14.4%[68] - The ending cash and cash equivalents balance was CNY 41,311,342.14, down from CNY 272,405,648.60 in the previous period, reflecting a decrease of about 85%[92] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 8,983[12] - The largest shareholder, Lu Qingguo, holds 18.58% of the shares, with 51,121,867 shares pledged[12] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[15] - The company adheres to a stable profit distribution policy, ensuring that cash dividends distributed each year are no less than 10% of the annual distributable profit[44] - The company has committed to a cash distribution of at least 30% of the average annual distributable profit over any three consecutive fiscal years[44] Liabilities and Equity - Total liabilities decreased to CNY 536,768,651.74 from CNY 967,458,003.89, a reduction of approximately 44.6%[67] - Current liabilities decreased significantly to CNY 482,952,562.41 from CNY 912,297,497.00, a reduction of about 47.1%[67] - The total equity attributable to shareholders increased to CNY 1,590,998,541.54 from CNY 1,503,033,843.04, marking a growth of approximately 5.8%[68] Inventory and Receivables - Accounts receivable notes increased by 53.95% compared to the beginning of the year, attributed to changes in customer settlement methods[22] - Inventory decreased by 31.37% compared to the beginning of the year, as the initial stock was reduced through sales over the three quarters[22] - The company’s accounts receivable decreased from CNY 245.38 million to CNY 186.85 million during the reporting period[65] Investments and Projects - The company is actively developing new products, including stevia sugar and tomato lycopene, with various projects at different stages of production optimization and testing[37] - The saponification production line transformation project has been completed and is now operational, achieving a daily processing capacity of no less than 15 tons and reducing raw material processing costs by over 20%[38] - The crystal lutein expansion project is nearing completion, with installation nearly finished and final adjustments underway to meet the growing market demand for lutein[38] Financial Expenses and Income - Financial expenses increased by 1882% year-on-year, primarily due to reduced interest income and increased interest expenses from bank financing[27] - Investment income decreased by 62.16% year-on-year, as previous idle funds generated higher returns from financial products compared to the current period[27] - The company incurred financial expenses of CNY 10,553,525.83 in the third quarter, compared to a financial income of CNY 1,096,283.53 in the same period last year[74] Government Subsidies - The company received a total of 405.34 million yuan in various government subsidies during the reporting period, including 100 million yuan for technology innovation and 253.34 million yuan for strategic emerging industries[40] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to sustain growth in the upcoming quarters[74] - The company expects a net profit attributable to shareholders of approximately CNY 136 million to CNY 156 million for 2017, representing a year-on-year growth of 47.07% to 68.70%[58]

Financial Performance - Total revenue for the reporting period reached ¥1,289,526,401.45, an increase of 23.30% compared to ¥1,045,880,022.80 from the same period last year[21]. - Net profit attributable to shareholders was ¥78,515,870.97, reflecting a growth of 53.87% from ¥51,028,860.60 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥67,714,097.68, up 39.89% from ¥48,405,541.11 year-on-year[21]. - Basic earnings per share increased to ¥0.22, a rise of 57.14% compared to ¥0.14 in the same period last year[21]. - The company achieved a net profit of 78.52 million yuan, representing a year-on-year growth of 53.87%[48]. - The company reported a total profit of ¥88,348,462.58, which is an increase of 36.0% compared to ¥64,936,347.73 in the previous year[183]. - The company recorded a net profit margin of approximately 5.0% for the first half of 2017, compared to 5.5% in the same period last year[184]. Cash Flow and Financial Management - The company’s cash flow from operating activities was ¥302,700,669.11, an increase of 10.92% compared to ¥272,903,478.97 from the previous year[21]. - Cash inflow from financing activities was CNY 336,557,542.28, significantly higher than CNY 81,429,215.28 in the previous period[191]. - Net cash flow from operating activities was CNY 302,700,669.11, up from CNY 272,903,478.97, reflecting a growth of 10.1%[190]. - The ending balance of cash and cash equivalents was CNY 146,425,438.77, down from CNY 264,403,777.56[191]. - The company’s cash flow management strategies are expected to enhance liquidity and support future growth initiatives[188]. Investment and R&D - The company has increased its investment in new projects and production line upgrades, with construction in progress rising by 74.26% compared to the beginning of the period[33]. - The company has established 15 technology platforms, including 4 national-level platforms, and has been approved for 52 technology projects, with 17 being national-level projects[39]. - The company has developed new products such as green coffee bean extract and pepper oil resin, enhancing its R&D capabilities through collaborations with universities[38]. - The company increased its R&D investment to 50,818,375.66 CNY, a significant rise of 450.27% compared to the previous period[64]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development[84]. Operational Efficiency and Management - The company is committed to improving its operational management to address potential risks effectively[5]. - The company has implemented a cost control system that significantly reduces raw material procurement costs and labor costs through automation[45]. - The company has enhanced its production efficiency by adopting molecular distillation technology, which improves yield and reduces production costs[52]. - The company is actively pursuing technology upgrades and safety improvements, including the establishment of a GMP workshop and safety training for staff[52]. - The company aims to improve its financial management by refining its profit accounting system based on product pricing and content indicators[87]. Market and Strategic Positioning - The company has built a stable customer base, exporting products to various regions including Europe, Japan, and North America, and has established partnerships with well-known companies[41]. - The company is actively exploring international markets, including establishing a planting base in Zambia, to leverage high-quality raw materials and reduce costs[104]. - The company has established strategic partnerships with key raw material suppliers to mitigate risks associated with raw material supply and price fluctuations[104]. - The company faces risks related to market competition, particularly from new entrants in the natural extract industry, which could impact its market share and profitability[102]. Shareholder and Corporate Governance - No cash dividends or stock bonuses will be distributed to shareholders during this reporting period[6]. - The company has committed to transparency and accountability in the use of raised funds, as evidenced by the audit reports from the accounting firm[84]. - The company has not distributed cash dividends or bonus shares for the half-year period, opting to retain earnings for reinvestment[110]. - The company has ensured that no shares held by its natural person shareholders will be transferred in excess of 25% of their total holdings annually[113]. - The company has implemented a restricted stock incentive plan, granting 1,854,380 shares, which is approximately 0.86% of the total share capital of 21,657.09 million shares[122]. Risks and Challenges - The company anticipates potential risks from exchange rate fluctuations due to a significant portion of its revenue being generated from foreign sales, primarily settled in USD[106]. - The company has not identified any significant risks that could adversely affect its operations in the next reporting period[5]. - The company reported a significant decline in profits for its subsidiaries in Kashgar and Karamay, with both experiencing negative profit trends due to cyclical fluctuations in the prices of oil and meal products[100]. - The company has not reported any significant impact on overall performance from its newly acquired subsidiaries, as they are still in the product development stage[99]. Compliance and Regulatory Matters - The half-year financial report was not audited, indicating a lack of external verification for the reported figures[115]. - The company has not experienced any major litigation or arbitration matters during the reporting period[117]. - There were no penalties or rectification measures imposed on the company during the reporting period[119]. - The company did not engage in any related party transactions during the reporting period[125].

Financial Performance - Total revenue for Q1 2017 reached ¥603,451,351.61, an increase of 24.39% compared to ¥485,122,844.72 in the same period last year[8] - Net profit attributable to shareholders was ¥34,691,443.17, representing a significant increase of 116.79% from ¥16,002,513.38 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥29,550,051.80, up 72.80% from ¥17,100,286.22 in the previous year[8] - Basic earnings per share rose to ¥0.1324, a 114.94% increase compared to ¥0.0616 in the same period last year[8] - The company achieved a revenue of 603.45 million yuan and a net profit attributable to shareholders of 34.69 million yuan, representing a year-on-year growth of 24.39% and 116.79% respectively[35] Cash Flow and Assets - The net cash flow from operating activities decreased by 29.42% to ¥76,660,524.28 from ¥108,609,949.73 year-on-year[8] - Total assets at the end of the reporting period were ¥2,420,109,641.44, down 2.90% from ¥2,492,400,096.21 at the end of the previous year[8] - The company's cash and cash equivalents decreased from CNY 266,845,187.45 at the beginning of the year to CNY 190,214,445.36 by the end of the reporting period[64] - The accounts receivable increased to CNY 259,446,393.26 from CNY 245,383,106.00 at the beginning of the year[64] - Inventory levels rose slightly to CNY 1,042,401,375.62 from CNY 1,025,751,154.38 at the beginning of the year[64] Liabilities and Expenses - Total liabilities decreased to CNY 685.55 million in Q1 2017 from CNY 771.41 million at the beginning of the year, indicating a reduction of 11.1%[70] - Sales and management expenses increased by 62.08% and 59.37% year-on-year, primarily due to the expansion of the cottonseed business and increased transportation costs since 2016[23] - Financial expenses grew by 42.29% year-on-year, attributed to a higher scale of short-term borrowings compared to Q1 2016, resulting in increased interest expenses[23] - Cash paid for various taxes increased by 146.58% year-on-year, driven by substantial growth in revenue and profits from the previous year[26] Investments and Projects - The company has initiated several investment projects, including a drug research project and an analysis testing project, with registration completed for relevant subsidiaries[44] - The company has completed the transformation of the saponification line, aiming for a daily processing capacity of no less than 15 tons and a reduction in raw material processing costs by over 20%[32] - The annual production capacity of 20,000 tons of pigment granules project has a completion rate of 99.92%[50] - The company has completed the investment of 6,539.83 million RMB in the establishment of Mornsun Biotechnology (India) Co., Ltd., achieving 100% investment progress[52] Market and Competition - The natural extract industry is experiencing intensified competition, with new entrants threatening market share, despite the company's leading position and core competitive advantages[40] - The company is exposed to raw material price volatility, which significantly impacts production costs, and is actively working to mitigate these risks through strategic sourcing and establishing raw material bases[42] - Major products such as chili red pigment and lutein remain key drivers of business development, with no significant changes compared to previous periods[29] Strategic Goals and Management - The company aims to build a global natural extract industry base, which requires effective management of international legal and tax differences[11] - The company is focusing on technology innovation and management improvement to enhance overall competitiveness, with ongoing projects in various production processes[36] - The company has received approximately 500 employee suggestions for improvement, with some already implemented, fostering a culture of innovation[40] Compliance and Governance - The company has not identified any violations of commitments by shareholders as of the report date[48] - The company has made commitments to ensure no competition with its own business from controlling shareholders[48] - The company has maintained a transparent cash dividend policy, ensuring the protection of minority shareholders' rights[58]

Financial Performance - The company's operating revenue for 2016 was ¥2,140,846,680.03, representing a 68.89% increase compared to ¥1,267,629,195.49 in 2015[16]. - The net profit attributable to shareholders for 2016 was ¥92,474,001.24, a 34.29% increase from ¥68,862,534.01 in 2015[16]. - The net profit after deducting non-recurring gains and losses was ¥73,452,399.33, up 47.44% from ¥49,817,193.80 in 2015[16]. - The total assets at the end of 2016 reached ¥2,492,400,096.21, a 25.17% increase from ¥1,991,269,824.00 at the end of 2015[16]. - The basic earnings per share for 2016 was ¥0.3558, an increase of 11.33% compared to ¥0.3196 in 2015[16]. - The company reported a negative net cash flow from operating activities of ¥321,620,459.29 in 2016, worsening from a negative cash flow of ¥64,657,564.53 in 2015[16]. - The total operating revenue for 2016 reached ¥2,140,846,680.03, representing a year-on-year increase of 68.89% compared to ¥1,267,629,195.49 in 2015[70]. - The revenue from pigment/spice/nutritional and medicinal products was ¥1,139,912,903.54, accounting for 53.25% of total revenue, which is a decrease of 6.40% from the previous year[71]. - The cash received from investment increased by 23,350.00% year-on-year, primarily due to the purchase of financial products that generated returns for the company[67]. - The cash paid for debt repayment decreased by 40.16% year-on-year, attributed to a reduction in financing scale after the previous year's private placement[67]. Dividends and Capital Reserves - The company reported a cash dividend of 0.80 RMB per 10 shares (including tax) and a capital reserve increase of 4 shares per 10 shares for all shareholders[5]. - The cash dividend distribution policy ensures that at least 10% of the annual distributable profit is allocated as cash dividends, with a cumulative distribution of at least 30% over the last three years[155]. - In 2016, the cash dividend amount was 20,968,824.16, representing 22.68% of the net profit attributable to ordinary shareholders of 92,474,001.24[161]. - In 2015, the cash dividend was 10,828,543.60, which accounted for 15.72% of the net profit of 68,862,534.01[161]. - In 2014, the cash dividend was 2,693,563.08, making up 12.03% of the net profit of 22,381,383.47[161]. - The company will also increase its capital stock by 4 shares for every 10 shares held, based on a total share capital of 262,110,302 shares[157]. Market and Strategic Goals - The company aims to build a global natural extract industry base, indicating a long-term strategic goal of global resource allocation[5]. - The company emphasizes the importance of adapting to legal, tax, foreign exchange management, and cultural differences in overseas markets[5]. - The company has established long-term cooperative relationships with local agricultural entities in Xinjiang, ensuring a stable supply of high-quality raw materials[42]. - The company aims to achieve a per capita sales target of 5 million, with a long-term goal of reaching 10 million, to enhance employee compensation and competitiveness[137]. - The company is focusing on technological innovation and product diversification to maintain competitive advantage in the plant extract market[125]. - The company aims to enhance its market presence and product offerings through ongoing research and development initiatives[148]. Risk Management - The company faces significant foreign exchange risk due to a large proportion of sales in foreign markets, primarily settled in USD[5]. - The company plans to mitigate foreign exchange risks by utilizing financial products for export financing and gradually cultivating the domestic market[5]. - The company has established strategic partnerships with key raw material suppliers to mitigate risks related to supply and price fluctuations[150]. - The company faces management risks due to increased complexity in organizational structure and decision-making as it expands its operations[148]. - Market competition risks are heightened as new competitors enter the natural extract industry, potentially impacting the company's market share[148]. - The company has conducted feasibility studies for its investment projects, but uncertainties remain regarding the expected returns from these projects[149]. Research and Development - The company has a strategic focus on R&D driven by market needs, ensuring the development of cutting-edge products[27]. - The company has developed new products such as green coffee bean extract and pepper oil resin, collaborating with various universities and research institutes to strengthen its R&D capabilities[36]. - R&D investment in 2016 amounted to ¥82,700,526.15, representing 3.86% of operating revenue[90]. - The company plans to enhance R&D investment and establish a mechanism for regular project reporting and expert guidance to accelerate the development and transformation of technological achievements[142]. - The company will implement a performance evaluation system for innovation tasks across departments, targeting the completion of over ten projects with significant economic benefits[142]. Operational Efficiency - The company is focusing on optimizing production processes to meet market demand and reduce costs across various product lines[89]. - The company completed the capacity expansion and transformation of the protein production line, enhancing production value and quality[88]. - The sweet stevia production line adopted an innovative extraction process, increasing daily input by over 60% and achieving the largest single-line capacity in the country[50]. - The company has initiated a project to upgrade wastewater treatment for stevia sugar, aiming for a daily processing capacity of 1,000 tons[89]. - The company is actively working on market expansion and product development to address competitive pressures in the industry[109]. Corporate Governance - The company has fulfilled all commitments made by actual controllers, shareholders, and related parties during the reporting period[163]. - The company has not discovered any violations of commitments by shareholders regarding share transfer limits during their tenure[164]. - The company ensures that shareholders will not engage in any competing business activities that could harm the company's interests[163]. - The company has maintained good integrity, with no significant debts or court judgments outstanding[174]. - The company has not encountered any non-operating fund occupation by controlling shareholders or related parties[166]. Investment and Fund Management - The total amount of raised funds is RMB 34,364.94 million, with RMB 18,607.77 million invested in the current year[117]. - The company has established a management system for raised funds to ensure compliance with relevant regulations and protect investor rights[106]. - The company signed tripartite supervision agreements with banks to manage the raised funds effectively[106]. - The company has completed the cancellation of accounts related to the raised funds, confirming the proper use of the funds[106]. - The company has committed to using the raised funds in accordance with the approved projects and regulations[107].

Financial Performance - Total operating revenue for the reporting period was ¥431,728,825.07, representing a year-on-year increase of 77.44%[8] - Net profit attributable to shareholders was ¥28,414,637.04, a significant increase of 228.86% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥25,263,883.94, up 275.97% year-on-year[8] - Basic earnings per share for the reporting period was ¥0.109, reflecting a growth of 230.30% compared to the same period last year[8] - Operating profit, total profit, net profit, and net profit attributable to shareholders increased by 125.33%, 69.38%, 77.48%, and 60.93% year-on-year, respectively[29] - Basic and diluted earnings per share increased by 61.38% year-on-year, reflecting the growth in net profit attributable to shareholders[29] - The company achieved a net profit of 79.44 million yuan, representing a year-on-year increase of 60.93%[41] - The company reported a comprehensive income total of ¥30,476,642.61 for the quarter, compared to ¥8,659,266.78 in the previous year, an increase of 252.5%[91] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,001,714,994.16, an increase of 0.52% compared to the end of the previous year[8] - Cash and cash equivalents increased by 39.10% compared to the beginning of the period, mainly due to the early stage of centralized procurement of raw materials and increased cash inflow from sales[24] - Accounts receivable increased by 40.85% compared to the beginning of the period, driven by increased sales volume and extended payment terms for customers[24] - Total liabilities decreased from ¥564,119,156.87 to ¥474,870,821.60, a decline of 16%[83] - Shareholders' equity increased to ¥1,526,844,172.56 from ¥1,427,150,667.13, an increase of 7%[84] Cash Flow - The company reported a net cash flow from operating activities of ¥333,378,692.14, which is a 131.76% increase year-to-date[8] - The net cash flow from operating activities was CNY 333,378,692.14, compared to CNY 143,846,167.10 in the previous period, marking an increase of about 132%[104] - Total cash inflow from operating activities was CNY 1,220,263,444.66, up 48.1% from CNY 823,564,661.64 year-on-year[107] Shareholder Information - The total number of shareholders at the end of the reporting period was 11,236, with the top ten shareholders holding significant stakes[13] - The company has a commitment from major shareholders not to reduce their holdings within six months after leaving their positions, and within twelve months thereafter, they can only reduce up to 50% of their holdings[21] - The company has not engaged in any repurchase agreements during the reporting period, indicating a stable shareholder structure[17] - The company’s management has committed to maintaining their shareholdings during their tenure, ensuring alignment with shareholder interests[19] Strategic Initiatives - The company aims to build a global natural extract industry base, facing challenges related to international legal and tax environments[11] - The company has initiated the construction of a subsidiary in Zambia for soybean extraction projects, continuing its global expansion strategy[44] - The company has established strategic partnerships with new suppliers and customers, enhancing its procurement and sales capabilities[40] - The company is exploring potential mergers and acquisitions to strengthen its market position[82] Risks and Challenges - The company has a significant exposure to foreign exchange risks due to a large proportion of sales in USD, and plans to mitigate this through financial products[11] - Market competition risks are heightened as new competitors enter the natural extract industry, potentially impacting market share[46] - The company is exposed to exchange rate risks due to significant foreign sales, primarily settled in USD[50] - Changes in export tax rebate policies could adversely affect the company's production costs and cash flow[50] Research and Development - Research and development expenses increased significantly as the company focused on technological innovation[28] - The company has completed multiple patent applications and received one foreign patent authorization, strengthening its innovation capabilities[43] - The company has developed differentiated products, receiving positive feedback from customers and increasing market share in niche segments[42] Investment Projects - The project for producing 20,000 tons of pigment granules has achieved a cumulative investment of 5,963.28 million, with a progress rate of 99.92%[57] - The project for producing 6,000 tons of plant protein has a cumulative investment of 9,707.61 million, with a progress rate of 92.54%[57] - The project for producing 1,000 tons of water-soluble color has a cumulative investment of 3,446.98 million, with a progress rate of 99.62%[58] Profit Distribution - The company has a profit distribution policy that mandates a minimum cash distribution of 10% of the annual distributable profit and at least 30% of the average distributable profit over any three consecutive years[66] - The company’s cash distribution is contingent upon achieving positive distributable profits, having sufficient cash flow, and not having significant investment or acquisition plans that exceed 30% of the latest audited net assets[69]