[Important Notice and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board assures report accuracy, highlighting key risks in VD3 price, Jinxi project, and management, and proposes a 2018 cash dividend - The company faces three core risks: - **Vitamin D3 Price Volatility Risk**: Performance highly depends on VD3 products; unfavorable price changes will lead to performance decline[7](index=7&type=chunk) - **Project Investment Risk**: The Jinxi Science and Technology Park project has uncertainties in construction progress and implementation effects[8](index=8&type=chunk) - **Management and Human Resources Risk**: Rapid development increases demand for high-quality talent, posing challenges in acquisition, training, and retention[8](index=8&type=chunk) - The company's 2018 profit distribution plan proposes a cash dividend of **CNY 1.30 (tax inclusive) per 10 shares** to all shareholders, based on **479,288,315 shares**, with no bonus shares or capital reserve conversion[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Key Financial Data and Indicators](index=7&type=section&id=%E4%BA%94%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) 2018 saw strong revenue and net profit growth, robust operating cash flow, and improved ROE, despite lower basic EPS | Indicator | 2018 | 2017 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 660,216,835.24 | 419,868,699.41 | 57.24% | | Net Profit Attributable to Parent (CNY) | 307,408,646.99 | 130,403,327.65 | 135.74% | | Net Cash Flow from Operating Activities (CNY) | 252,735,039.10 | 148,043,897.35 | 70.72% | | Basic EPS (CNY/share) | 0.64 | 0.72 | -11.11% | | Weighted Average ROE | 21.70% | 16.07% | 5.63% | | **Assets and Equity (Year-end)** | **2018 Year-end** | **2017 Year-end** | **YoY Change** | | Total Assets (CNY) | 1,646,296,555.26 | 1,394,834,071.76 | 18.03% | | Net Assets Attributable to Parent (CNY) | 1,561,685,782.26 | 1,281,117,280.91 | 21.90% | | Quarter | Operating Revenue (CNY) | Net Profit Attributable to Parent (CNY) | | :--- | :--- | :--- | | 第一季度 | 235,500,525.62 | 121,898,566.96 | | 第二季度 | 85,305,707.18 | 31,245,331.55 | | 第三季度 | 154,981,647.10 | 71,601,524.89 | | 第四季度 | 184,428,955.34 | 82,663,223.59 | - During the reporting period, the company's total non-recurring gains and losses amounted to **CNY 21,344,531.77**, primarily from **CNY 17,018,234.12** in income from wealth management products and **CNY 6,888,633.61** in government grants[34](index=34&type=chunk) [Business Overview](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) [Main Business and Operating Model](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company focuses on a complete VD3 industrial chain, producing cholesterol, VD3, and 25-Hydroxyvitamin D3, primarily through direct sales - The company's R&D, production, and sales revolve around the Vitamin D3 industrial chain, with key products including: - **Cholesterol**: A primary raw material for VD3, also used in feed, medicine, and cosmetics - **Vitamin D3**: Widely applied in feed additives, food additives, nutritional supplements, and pharmaceuticals - **25-Hydroxyvitamin D3**: An active metabolite of VD3 with stronger physiological activity, offering advantages over ordinary VD3[39](index=39&type=chunk) - The significant performance growth in 2018 was primarily driven by a substantial year-on-year increase in Vitamin D3 product prices and a rise in cholesterol sales[41](index=41&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Core competencies include full industrial chain, leading technology, cost, scale, and brand advantages, making it a global VD3 leader - The company's core competencies include: - **Full Industrial Chain Advantage**: Covering the entire chain from upstream raw materials (cholesterol) to downstream high-end applications (25-Hydroxyvitamin D3, full-activity VD3) - **Technological Advantage**: Three core production processes (VD3, NF-grade cholesterol, 25-Hydroxyvitamin D3) are at domestic or international leading levels - **Cost Advantage**: Self-producing NF-grade cholesterol from lanolin significantly lowers VD3 production costs compared to competitors - **Scale Advantage**: One of the world's leading producers of VD3 upstream and downstream products by variety, with sales volume among the highest globally - **Brand Advantage**: The 'Huayuan' brand enjoys high industry recognition, with long-term partnerships established with internationally renowned manufacturers[45](index=45&type=chunk)[46](index=46&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Operating Overview](index=11&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) 2018 saw record sales and profits, driven by strong cholesterol and 25-Hydroxyvitamin D3 demand, advancing the Jinxi project and securing R&D awards | Indicator | 2018 Annual | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (CNY million) | 660.22 million | 57.24% | | Total Profit (CNY million) | 356.54 million | 135.37% | | Net Profit Attributable to Shareholders (CNY million) | 307.41 million | 135.74% | - The company initiated the Jinxi Science and Technology Park project to accommodate relocation and future projects, acquiring **771 mu** of land and commencing full-scale construction[52](index=52&type=chunk)[53](index=53&type=chunk) - The company achieved significant R&D results, with its collaboration with Zhejiang University on 'Molecular Recognition and Separation Technology and Application of Natural Active Homologs' winning the **2018 National Technology Invention Award Second Prize**[53](index=53&type=chunk) [Main Business Analysis](index=11&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) 2018 main business excelled: revenue up **57.24%**, gross margin up **10.38 percentage points** to **67.75%**, driven by VD3 prices and cholesterol sales, with strong operating cash flow [2. Revenue and Costs](index=12&type=section&id=2%E3%80%81%E6%94%B6%E5%85%A5%E4%B8%8E%E6%88%90%E6%9C%AC) 2018 revenue reached **CNY 660 million** (+**57.24%** YoY), driven by VD3 and lanolin derivatives, with international sales growing **66.69%**; high VD3 prices boosted gross margin to **84.01%** | Revenue Composition | 2018 Amount (CNY) | Proportion | YoY Change | | :--- | :--- | :--- | :--- | | **By Product** | | | | | Vitamin D3 and D3 Analogs | 448,808,003.96 | 67.98% | 54.29% | | Lanolin and its Derivatives | 205,680,128.45 | 31.15% | 61.81% | | **By Region** | | | | | Domestic Sales | 157,704,775.35 | 23.89% | 33.19% | | International Sales | 502,512,059.89 | 76.11% | 66.69% | | Main Product/Region | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Vitamin D3 and D3 Analogs | 448,808,003.96 | 71,744,884.52 | 84.01% | +15.41% | | Lanolin and its Derivatives | 205,680,128.45 | 137,727,089.70 | 33.04% | +1.23% | | International Sales | 502,512,059.89 | 156,300,755.30 | 68.90% | +9.53% | - In 2018, inventory volume increased by **36.77%** YoY, primarily due to a significant rise in cholesterol production and sales, leading to a corresponding increase in related derivative output[63](index=63&type=chunk)[66](index=66&type=chunk) [3. Expenses](index=15&type=section&id=3%E3%80%81%E8%B4%B9%E7%94%A8) 2018 period expenses were well-controlled: selling expenses up **44.85%**, financial expenses down **127.27%** due to exchange gains, and R&D expenses up **38.05%** for future projects | Expense Item | 2018 (CNY) | 2017 (CNY) | YoY Change | Key Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 18,725,651.62 | 12,927,663.65 | 44.85% | Increase in commission fees and product insurance premiums | | Financial Expenses | -2,157,808.98 | 7,912,021.08 | -127.27% | Increase in exchange gains and interest income | | R&D Expenses | 30,511,965.76 | 22,102,535.26 | 38.05% | Increased R&D investment for new project technology reserves | [4. R&D Investment](index=15&type=section&id=4%E3%80%81%E7%A0%94%E5%8F%91%E6%8A%95%E5%85%A5) The company increased R&D investment by **38.05%** to **CNY 30.51 million** in 2018, growing R&D personnel to **90**, focusing on product and process optimization and technology reserves | Indicator | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | R&D Investment Amount (CNY) | 30,511,965.76 | 22,102,535.26 | 16,434,638.64 | | R&D Investment as % of Revenue | 4.62% | 5.26% | 4.99% | | Number of R&D Personnel (Persons) | 90 | 78 | 60 | | R&D Personnel as % of Total | 18.25% | 16.63% | 12.96% | [5. Cash Flow](index=16&type=section&id=5%E3%80%81%E7%8E%B0%E9%87%91%E6%B5%81) 2018 cash flow was healthy: operating cash flow up **70.72%** to **CNY 253 million**, investing cash outflow expanded to **CNY 432 million** for wealth management and assets, and financing cash flow turned negative | Cash Flow Item | 2018 (CNY) | 2017 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 252,735,039.10 | 148,043,897.35 | 70.72% | | Net Cash Flow from Investing Activities | -431,619,127.69 | -159,889,386.47 | 172.16% (Outflow Increase) | | Net Cash Flow from Financing Activities | -77,292,106.43 | 403,610,421.33 | -119.15% | - Key reasons for cash flow changes include: - **Increased Operating Net Cash Flow**: Driven by higher sales revenue, improved product gross margin, and increased cash receipts from sales - **Expanded Investing Net Cash Outflow**: Due to increased balances of wealth management products and higher expenditures for land and fixed asset acquisitions - **Financing Net Cash Flow Turning Negative**: Resulting from the previous period's non-public offering proceeds and current period's repayment of short-term borrowings and dividend distribution[77](index=77&type=chunk)[78](index=78&type=chunk) [Assets and Liabilities](index=17&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) As of year-end 2018, total assets reached **CNY 1.646 billion** (+**18.03%** YoY), with cash decreasing due to wealth management, and intangible assets/construction in progress increasing due to the Jinxi project, while all short-term borrowings were repaid - Cash and cash equivalents decreased by **20.36 percentage points** from the beginning of the period, primarily due to the use of idle raised funds to purchase bank wealth management products[80](index=80&type=chunk) - Intangible assets increased by **81.66%** from the beginning of the period, mainly because subsidiary Huayuan Nutrition acquired land use rights through auction for the Jinxi Science and Technology Park project construction[44](index=44&type=chunk) - Construction in progress increased by **114.02%** from the beginning of the period, primarily due to the commencement of the Jinxi Science and Technology Park project construction[44](index=44&type=chunk) [Analysis of Major Holding and Participating Companies](index=20&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Major subsidiaries operate well, with Hangzhou Xiasha Bio contributing **CNY 58.94 million** and Hangzhou Luoshen Technology **CNY 14.77 million** in net profit; new subsidiary Zhejiang Huayuan Nutrition is under construction for the Jinxi project | Subsidiary Name | Main Business | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | | Hangzhou Xiasha Bio-Technology Co., Ltd. | Pharmaceutical intermediate manufacturing, sales | 153,128,729.07 | 58,941,951.59 | | Hangzhou Luoshen Technology Co., Ltd. | Lanolin production, sales | 124,203,053.83 | 14,774,723.54 | | Zhejiang Huayuan Nutrition Technology Co., Ltd. | Feed/food additive R&D and production, etc. | 2,883,691.13 | -1,753,793.98 | - During the reporting period, the company established the wholly-owned subsidiary 'Zhejiang Huayuan Nutrition Technology Co., Ltd.' through new investment; this company is still in its construction phase and had minimal impact on the overall production, operations, and performance for the current period[93](index=93&type=chunk) [Future Development Outlook](index=21&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E5%B1%95%E6%9C%9B) The company will continue its VD3 industrial chain strategy, aiming to be a world leader, with 2019 goals focused on stable operations, expanding market share, accelerating the Jinxi project, and pursuing M&A for scale - The company's development strategy consistently focuses on 'building a complete Vitamin D3 upstream and downstream industrial chain,' aiming to become a 'world-leading manufacturer of Vitamin D3 upstream and downstream products'[96](index=96&type=chunk) - 2019 operating objectives include: - **Stabilizing Existing Business**: Expanding cholesterol market share and increasing sales of food and pharmaceutical-grade VD3 - **Accelerating Project Construction**: The Jinxi Science and Technology Park project is a key focus for 2019, aiming for Phase I production by year-end - **External Expansion**: Seeking suitable market targets, accelerating mergers and acquisitions, and promoting multi-product development[97](index=97&type=chunk) [Significant Matters](index=22&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Profit Distribution](index=22&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company maintained a stable cash dividend policy, with payout ratios above **20%**; 2017 saw a **CNY 1.4** cash dividend and **15 bonus shares per 10 shares**, while 2018 proposes **CNY 1.3** cash dividend per 10 shares, totaling **CNY 62.3075 million** | Dividend Year | Cash Dividend Amount (Tax Incl., CNY) | % of Consolidated Net Profit Attributable to Parent | | :--- | :--- | :--- | | 2018 (Proposed) | 62,307,480.95 | 20.27% | | 2017 | 26,840,145.64 | 20.58% | | 2016 | 9,070,000.00 | 20.72% | - On May 4, 2018, the company completed its 2017 profit distribution, implementing a **15 bonus shares per 10 shares** plan, increasing total share capital from **192 million shares** to **479 million shares**[104](index=104&type=chunk) [Significant Related Party Transactions](index=28&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in two significant related party transactions: procuring construction services for **CNY 59.776 million** from Zhejiang Huayuan Construction, and transferring idle land use rights to Zhejiang Huayuan New Energy at appraised value - The company procured civil engineering construction services from 'Zhejiang Huayuan Construction Co., Ltd.', controlled by the ultimate controlling party, with **CNY 59.776 million** incurred this period, which is below the approved limit of **CNY 210 million**[131](index=131&type=chunk) - The company transferred some idle land use rights to the related party 'Zhejiang Huayuan New Energy Co., Ltd.', with the transfer price determined based on a third-party appraisal report[135](index=135&type=chunk) [Social Responsibility and Environmental Protection](index=31&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills social responsibilities, prioritizing investor returns, employee rights, and legal compliance; environmental efforts include compliant waste treatment and responsible hazardous waste disposal, with no incidents or penalties - Subsidiary Hangzhou Xiasha Bio-Technology Co., Ltd. is listed as a key polluting unit by environmental protection authorities[147](index=147&type=chunk) - The company has built and effectively operates exhaust gas absorption devices and wastewater online monitoring facilities, strictly implements the transfer manifest system for hazardous waste, and had no environmental pollution incidents during the reporting period[150](index=150&type=chunk) [Share Changes and Shareholder Information](index=33&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Share Changes](index=33&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total share capital increased by **150%** from **191.7 million** to **479.3 million shares** due to the 2017 profit distribution plan, which converted capital reserves into **15 bonus shares per 10 shares** | Item | Quantity Before Change | Change in This Period | Quantity After Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 21,221,826 | +24,845,129 | 46,066,955 | | II. Unrestricted Shares | 170,493,500 | +262,727,860 | 433,221,360 | | III. Total Shares | 191,715,326 | +287,572,989 | 479,288,315 | - The increase in total share capital was primarily due to the implementation of the 2017 profit distribution plan, which involved converting capital reserves into **15 bonus shares per 10 shares** for all shareholders[161](index=161&type=chunk) [Shareholders and Actual Controller Information](index=35&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) As of year-end 2018, the company had **21,698** shareholders; Zhejiang Xiangyun Technology Co., Ltd. is the controlling shareholder (**36.10%** equity), with Shao Qinxing as actual controller, and **96.5 million** shares pledged | Shareholder Name | Shareholder Nature | Shareholding Percentage | Shares Held at Period-end | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Xiangyun Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 36.10% | 172,999,527 | Pledged 96,500,000 | | Shao Junfang | Domestic Natural Person | 3.70% | 17,745,437 | - | | Gong Jinqing | Domestic Natural Person | 3.21% | 15,399,658 | - | | Zhang Zhijian | Domestic Natural Person | 2.17% | 10,407,000 | - | | Jiutai Fund...Trust Plan | Other | 2.17% | 10,388,657 | - | - The company's controlling shareholder is Zhejiang Xiangyun Technology Co., Ltd., and the actual controller is Shao Qinxing[173](index=173&type=chunk)[176](index=176&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=40&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%92%8C%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) [Overview of Senior Management and Employees](index=40&type=section&id=%E4%B8%80%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) The company's stable management team has diverse backgrounds; in 2018, key management received **CNY 3.4643 million** in compensation, while **493** employees, including **294** production staff and **114** with bachelor's degrees or higher, are supported by performance-linked pay and training | Name | Position | Total Pre-tax Compensation from Company (CNY '000) | | :--- | :--- | :--- | | Shao Junfang | Chairman | 577.10 | | Ma Huanzheng | Vice Chairman, General Manager | 501.80 | | Liu Jiangang | Director, Executive Vice General Manager | 402.10 | | Yu Quanheng | Director, Vice General Manager, Board Secretary | 350.00 | | Qian Guoping | Vice General Manager | 353.10 | | Professional Composition | Number of People | Education Level | Number of People | | :--- | :--- | :--- | :--- | | Production Personnel | 294 | Bachelor's Degree or Above | 114 | | Sales Personnel | 19 | Associate Degree | 64 | | Technical Personnel | 81 | Associate Degree or Below | 315 | | Financial Personnel | 30 | | | | Administrative Personnel | 69 | | | | **Total** | **493** | **Total** | **493** | [Corporate Governance](index=46&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) [Governance and Internal Control](index=46&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%9A%84%E5%9F%BA%E6%9C%AC%E7%8A%B6%E5%86%B5) The company operates strictly under relevant laws, maintaining sound corporate governance and independence from its controlling shareholder, with no horizontal competition; internal control reports confirmed effective controls as of December 31, 2018, and no material weaknesses - The actual status of the company's corporate governance does not materially differ from the normative documents on corporate governance for listed companies issued by the China Securities Regulatory Commission[210](index=210&type=chunk) - The company is completely separate from its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing independent and complete business operations and autonomous operating capabilities[211](index=211&type=chunk)[214](index=214&type=chunk) - According to the internal control evaluation report and the attestation report from the accounting firm, the company found no material weaknesses or significant deficiencies in financial or non-financial reporting[227](index=227&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) [Financial Report](index=52&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=52&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) Dahua Certified Public Accountants issued a standard unqualified audit opinion on the 2018 financial statements, affirming fair presentation of financial position, operating results, and cash flows, with key audit matters including revenue recognition and allowance for doubtful accounts receivable - The audit opinion type is a standard unqualified opinion[237](index=237&type=chunk)[238](index=238&type=chunk) - Key audit matters include: 1. **Revenue Recognition**: Due to revenue being a significant financial indicator, there is a risk of material misstatement 2. **Allowance for Doubtful Accounts Receivable**: Due to the material balance of accounts receivable and the significant accounting estimates and judgments involved in assessing the allowance[240](index=240&type=chunk) [Key Financial Statements](index=54&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) As of year-end 2018, total assets were **CNY 1.646 billion** and total liabilities **CNY 85 million**, with a robust **5.14%** asset-liability ratio; 2018 revenue reached **CNY 660 million** and net profit **CNY 307 million**, with operating cash flow of **CNY 253 million**, indicating high earnings quality Consolidated Balance Sheet Key Items (Unit: CNY) | Item | Period-end Balance | Period-start Balance | | :--- | :--- | :--- | | Cash and Cash Equivalents | 184,808,905.68 | 440,675,594.77 | | Notes and Accounts Receivable | 107,167,420.49 | 64,593,216.96 | | Inventories | 252,223,301.70 | 202,988,558.29 | | Other Current Assets | 410,271,073.01 | 146,979,485.70 | | Fixed Assets | 405,850,376.38 | 397,634,838.17 | | **Total Assets** | **1,646,296,555.26** | **1,394,834,071.76** | | Short-term Borrowings | 0.00 | 45,000,000.00 | | Notes and Accounts Payable | 38,851,402.58 | 34,333,968.76 | | **Total Liabilities** | **84,610,773.00** | **113,716,790.85** | | **Total Owners' Equity** | **1,561,685,782.26** | **1,281,117,280.91** | Consolidated Income Statement Key Items (Unit: CNY) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Operating Revenue | 660,216,835.24 | 419,868,699.41 | | Operating Cost | 212,922,430.20 | 178,999,975.30 | | R&D Expenses | 30,511,965.76 | 22,102,535.26 | | Investment Income | 17,018,234.12 | 2,422,764.31 | | Operating Profit | 355,854,964.81 | 150,535,267.26 | | **Net Profit** | **307,408,646.99** | **130,403,327.65** | [Significant Accounting Policies and Accounting Estimates](index=74&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) The company adheres to enterprise accounting standards, preparing financial statements on a going concern basis; key policies include revenue recognition (domestic/export), inventory valuation (moving weighted average, lower of cost/NRV), R&D expenditure (research expensed, development capitalized), and government grants (asset/income related, gross method) - **Revenue Recognition Policies**: - **Domestic Sales**: Revenue is recognized when products are delivered to the buyer and receipt is confirmed - **Export Sales**: Revenue is recognized when products are declared at customs and the bill of lading is delivered[437](index=437&type=chunk)[440](index=440&type=chunk) - **Inventory Accounting Policy**: Inventories are valued using the moving weighted average method upon issuance; at period-end, inventory impairment provisions are made based on the lower of cost or net realizable value for individual inventory items[379](index=379&type=chunk)[380](index=380&type=chunk) - **R&D Expenditure Policy**: Internal research and development project expenditures are classified into research and development phases; expenditures in the research phase are expensed as incurred; expenditures in the development phase are capitalized as intangible assets if capitalization criteria are met[428](index=428&type=chunk)[429](index=429&type=chunk)

Financial Performance - Operating revenue for the period reached CNY 154,981,647.10, a 100.79% increase year-on-year[8] - Net profit attributable to shareholders increased by 156.06% to CNY 71,601,524.89 compared to the same period last year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 146.70% to CNY 64,361,005.89 compared to the same period last year[8] - Basic earnings per share rose by 150.00% to CNY 0.15[8] - The weighted average return on equity increased to 4.96%, up 1.60 percentage points from the previous year[8] - Net profit rose by 117.88% to ¥224,745,423.40, attributed to higher operating revenue and improved product gross margins[18] - Total profit increased by 117.12% to ¥261,421,254.75, driven by rising operating revenue and product gross margin improvements[18] - Total operating revenue for the third quarter reached ¥154,981,647.10, a significant increase from ¥77,187,458.57 in the same period last year, representing a growth of 100.0%[35] - Net profit for the period was ¥71,601,524.89, compared to ¥27,962,875.94 in the previous year, marking an increase of 156.5%[37] - The company reported an operating profit of ¥83,180,263.42, compared to ¥32,109,503.28 in the previous year, an increase of 158.0%[37] - The company reported a total profit of CNY 72,717,004.56 for the third quarter, compared to CNY 22,290,260.30 in the previous year, indicating an increase of approximately 226.5%[41] Assets and Liabilities - Total assets increased by 13.95% to CNY 1,589,478,052.51 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 15.45% to CNY 1,479,022,558.67 compared to the end of the previous year[8] - The company's total assets reached ¥1,589,478,052.51, up from ¥1,394,834,071.76 at the beginning of the period[30] - The total liabilities decreased slightly to ¥110,455,493.84 from ¥113,716,790.85, indicating improved financial stability[30] - The company's equity attributable to shareholders increased to ¥1,479,022,558.67 from ¥1,281,117,280.91, reflecting strong retained earnings growth[30] - Current liabilities rose to ¥256,913,792.18, up from ¥95,610,638.65, indicating an increase of 168.5%[33] Cash Flow - The net cash flow from operating activities for the year-to-date reached CNY 168,562,463.96, an increase of 36.17%[8] - Cash received from sales and services increased by 29.53% to ¥451,289,019.32 compared to ¥348,395,304.60 in the same period last year[19] - Cash inflow from investment activities surged by 282.54% to ¥1,571,760,036.10, primarily due to an increase in matured financial products[19] - Cash outflow for investment activities increased by 298.54% to ¥1,856,176,478.34, mainly due to higher purchases of financial products[19] - The net cash flow from financing activities showed a significant decline of 783.66%, resulting in a net outflow of ¥31,674,365.18, attributed to increased cash dividends distributed[19] - Cash flow from operating activities generated a net amount of CNY 168,562,463.96, up from CNY 123,786,816.78 year-over-year, reflecting a growth of approximately 36.2%[50] - The company’s cash flow from financing activities resulted in a net outflow of -CNY 31,674,365.18, compared to -CNY 3,584,437.50 in the previous year[52] Research and Development - Research and development expenses surged by 156.92% to ¥16,537,979.55, reflecting increased investment in new products and processes[17] - Research and development expenses for the quarter were ¥7,540,518.64, compared to ¥4,389,041.50 in the previous year, an increase of 71.8%[35] - Research and development expenses increased to CNY 16,537,979.55 from CNY 6,436,910.88, reflecting a rise of about 157.5%[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,417[11] - The total number of restricted shares increased to 46,202,893, with a total of 28,050,367 shares added during the period[14] Government Subsidies - The company received government subsidies amounting to CNY 7,151,708.22 during the reporting period[9] - Other income increased by 85.05% to ¥7,151,708.22, mainly due to higher government subsidies received[17] Taxation - The company reported a 146.53% increase in taxes and surcharges to ¥7,169,227.21, resulting from increased export tax exemptions[17] - The company paid CNY 50,754,377.09 in taxes during the quarter, compared to CNY 24,738,807.12 in the previous year, indicating an increase of about 105.5%[50]

Financial Performance - Total operating revenue for the first half of 2018 was CNY 320,806,232.80, representing a 37.70% increase compared to CNY 232,979,322.05 in the same period last year[18]. - Net profit attributable to shareholders of the listed company reached CNY 153,143,898.51, a significant increase of 103.68% from CNY 75,188,910.33 year-on-year[18]. - Net profit after deducting non-recurring gains and losses was CNY 146,118,223.48, up 103.86% from CNY 71,676,349.56 in the previous year[18]. - Net cash flow from operating activities was CNY 132,259,785.07, reflecting a 136.09% increase compared to CNY 56,020,471.04 in the same period last year[18]. - Basic earnings per share rose to CNY 0.32, an increase of 88.24% from CNY 0.17 in the previous year[18]. - The significant growth in performance was driven by a substantial increase in the selling price of vitamin D3 products and a year-on-year increase in cholesterol sales volume[26]. - Operating profit for the first half of 2018 was CNY 176,481,192.33, up from CNY 87,307,440.20 in the same period last year, indicating a growth of approximately 102%[118]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,496,787,105.57, a 7.31% increase from CNY 1,394,834,071.76 at the end of the previous year[18]. - The company's total liabilities decreased from CNY 113,716,790.85 to CNY 89,366,071.79, representing a reduction of about 21.4%[110]. - Current assets totaled CNY 911,909,293.33 at the end of the reporting period, compared to CNY 868,996,300.88 at the beginning, indicating an increase of approximately 4.9%[109]. - The company's equity attributable to shareholders rose from CNY 1,281,117,280.91 to CNY 1,407,421,033.78, an increase of about 9.9%[111]. - The total current liabilities decreased from CNY 109,380,742.07 to CNY 85,938,908.71, a decrease of approximately 21.4%[110]. Investment and Expansion Plans - The company plans to set up a new production base in Jinhua Economic and Technological Development Zone to improve management efficiency and reduce operational costs[33]. - The company is focused on expanding its project investments and enhancing its talent pool to support its growth strategy[5]. - The company plans to continue expanding its market presence and investing in new product development, although specific figures were not disclosed in the report[118]. - The company plans to expand its market presence by establishing a wholly-owned subsidiary, Zhejiang Huayuan Nutrition Technology Co., Ltd., with a registered capital of CNY 20 million[147]. Risks and Challenges - The company faces risks related to the price fluctuations of Vitamin D3, which significantly impact its revenue[5]. - The company anticipates potential risks in project investment and human resource management as it expands its operations[55]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company plans to distribute at least 30% of the annual distributable profit in cash if the diluted earnings per share for the year falls below the previous year's level[62]. - The company has committed to repurchasing shares if there are significant investment plans or cash expenditures that exceed 30% of the total audited assets[61]. Compliance and Governance - The half-year financial report has not been audited[64]. - The company has established measures to ensure compliance with public commitments made by its controlling shareholders and management[63]. - The company will disclose the fulfillment status of public commitments in periodic reports[63]. Environmental and Social Responsibility - The company has installed online monitoring facilities for wastewater discharge and is connected with environmental protection departments[81]. - The company has not conducted any poverty alleviation work during the reporting period[82]. - The company has not experienced any environmental pollution incidents or disputes during the reporting period[81]. Financial Management - The company has committed to several fundraising projects, including a core premix project and an environmentally friendly rodenticide project, with a total planned investment of ¥42,200 million[45]. - The company will strictly manage the use of raised funds to ensure they are utilized effectively for their intended purposes[62]. - The company has not engaged in any entrusted financial management or derivative investments during the reporting period[48][49]. Future Outlook - The company projects a revenue growth of 10% for the second half of 2018, aiming for a total annual revenue of 2.5 billion RMB[169]. - Future outlook remains positive, with management confident in achieving a net profit margin of 20% by the end of 2018[176].

Financial Performance - The company's operating revenue for 2017 was CNY 419,868,699.41, representing a 27.58% increase compared to CNY 329,093,755.62 in 2016[17]. - The net profit attributable to shareholders for 2017 was CNY 130,403,327.65, a significant increase of 197.91% from CNY 43,772,785.03 in 2016[17]. - The net profit after deducting non-recurring gains and losses was CNY 122,807,508.92, up 219.51% from CNY 38,436,637.86 in 2016[17]. - The net cash flow from operating activities reached CNY 146,743,897.35, an increase of 197.86% compared to CNY 49,266,348.80 in 2016[17]. - The total assets at the end of 2017 were CNY 1,394,834,071.76, a 59.02% increase from CNY 877,146,580.49 at the end of 2016[17]. - The net assets attributable to shareholders at the end of 2017 were CNY 1,281,117,280.91, reflecting a 70.12% increase from CNY 753,076,716.91 at the end of 2016[17]. - The basic earnings per share for 2017 were CNY 0.72, a 200.00% increase from CNY 0.24 in 2016[17]. - The diluted earnings per share for 2017 were also CNY 0.72, marking a 200.00% increase from CNY 0.24 in 2016[17]. - The weighted average return on equity for 2017 was 16.07%, up from 5.98% in 2016, indicating improved profitability[17]. Revenue and Sales - Domestic sales reached CNY 118.41 million, a significant increase of 54.24% compared to the previous year, while international sales were CNY 301.46 million, up 19.47%[38]. - The company's operating revenue for 2017 was CNY 419.87 million, an increase of 27.58% compared to the previous year, primarily due to increased sales volume of 25-hydroxyvitamin D3 and higher product prices[34]. - In Q1 2017, the company's operating revenue was approximately ¥86.69 million, while in Q2 it increased to ¥146.29 million, followed by a decrease to ¥77.19 million in Q3, and rebounding to ¥109.70 million in Q4[19]. - The net profit attributable to shareholders for Q2 2017 was ¥54.65 million, representing a significant increase compared to Q1's ¥20.54 million, but decreased to ¥27.25 million in Q4[19]. Cash Flow and Investments - The company reported a net cash flow from financing activities of CNY 403.61 million, a substantial increase of 1,074.55% due to funds raised from a private placement[35]. - The company's cash and cash equivalents increased by 655.86% compared to the previous period, attributed to funds raised from a private placement[27]. - The company's cash flow from investment activities was negative at CNY 158.59 million, a decrease of 47.93% year-on-year, mainly due to an increase in the balance of bank wealth management products[34]. - Investment cash inflow surged to ¥752,941,133.59 in 2017, a staggering increase of 3,434.43% from 2016[51]. Research and Development - Research and development expenses rose to CNY 22.10 million, a 39.58% increase from the previous year, reflecting the company's commitment to enhancing R&D efforts[34]. - The company is focusing on enhancing core technology and product competitiveness through various R&D projects, including the optimization of ultra-pure lanolin technology and the industrialization of active vitamin D3[48]. - The company's R&D investment in 2017 amounted to ¥22,102,535.26, representing 5.26% of total revenue, an increase from 4.99% in 2016[48]. - The number of R&D personnel increased to 78 in 2017, accounting for 16.63% of the workforce, up from 12.96% in 2016[48]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1.40 per 10 shares, with no bonus shares issued[7]. - In 2017, the cash dividend represented 20.58% of the net profit attributable to ordinary shareholders, which was RMB 130,403,327.65[80]. - The cash dividend for 2016 was RMB 0.50 per 10 shares, totaling RMB 9,070,000, which accounted for 20.72% of the net profit attributable to ordinary shareholders[78]. - The company is in a growth phase and aims for a minimum cash dividend distribution ratio of 20% during profit distribution[74]. Environmental and Social Responsibility - The company was recognized as a "Demonstration Enterprise for Environmental Protection" in Zhejiang Province, enhancing its corporate image[31]. - The company has installed online monitoring facilities at wastewater discharge points, ensuring compliance with environmental regulations[111]. - No environmental pollution incidents or disputes occurred during the reporting period, and the company did not receive any environmental protection administrative penalties[111]. - The company is classified as a key pollutant discharge unit and adheres to environmental protection standards[109]. Corporate Governance - The company has a clear governance structure that ensures equal rights for all shareholders, particularly minority shareholders[152]. - The company has maintained a continuous relationship with its accounting firm for four years, with an audit fee of ¥600,000[88]. - The company has not faced any regulatory criticism regarding information disclosure practices during the reporting period[154]. - The company has established a performance evaluation and incentive system for senior management, linking their compensation to the achievement of annual operational goals[164]. Employee and Management Structure - The total number of employees in the company is 463, with 295 in the parent company and 168 in major subsidiaries[146]. - The company has established a comprehensive talent training system to support strategic goals and enhance employee capabilities[149]. - The management team includes professionals with backgrounds in economics, engineering, and pharmaceuticals, contributing to the company's strategic direction[138]. - The total remuneration for directors and senior management during the reporting period amounts to 260.62 million yuan[145].

浙江花园生物高科股份有限公司 2018 年第一季度报告全文 浙江花园生物高科股份有限公司 2018 年第一季度报告 2018 年 04 月 1 浙江花园生物高科股份有限公司 2018 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人邵君芳、主管会计工作负责人吴春华及会计机构负责人(会计主 管人员)姚丽锦声明：保证季度报告中财务报表的真实、准确、完整。 2 浙江花园生物高科股份有限公司 2018 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | | --- | --- | --- | --- | --- | | 营业总收入（元） | 235,500,525.62 | 86,690,649.04 | | 171.66% | | 归属于上市公司股东的净利润（元） | 121, ...

Financial Performance - The company's operating revenue for 2017 was CNY 419,868,699.41, representing a 27.58% increase compared to CNY 329,093,755.62 in 2016[16] - The net profit attributable to shareholders for 2017 was CNY 130,403,327.65, a significant increase of 197.91% from CNY 43,772,785.03 in 2016[16] - The net profit after deducting non-recurring gains and losses was CNY 122,807,508.92, up 219.51% from CNY 38,436,637.86 in 2016[16] - The net cash flow from operating activities reached CNY 146,743,897.35, a 197.86% increase from CNY 49,266,348.80 in 2016[16] - Basic earnings per share for 2017 were CNY 0.72, a 200% increase compared to CNY 0.24 in 2016[16] - Total assets at the end of 2017 amounted to CNY 1,394,834,071.76, reflecting a 59.02% increase from CNY 877,146,580.49 at the end of 2016[16] - The net assets attributable to shareholders increased by 70.12% to CNY 1,281,117,280.91 from CNY 753,076,716.91 in 2016[16] Cash Dividends - The company plans to distribute a cash dividend of CNY 1.40 per 10 shares, totaling CNY 26,240,000.56 based on 191,715,326 shares[6] - In 2017, the company distributed cash dividends totaling CNY 9.07 million, amounting to CNY 0.50 per share, based on a total share capital of 18.14 million shares[70] - The cash dividend policy is fully compliant with the company's articles of association and provides clear standards and procedures for distribution[71] - The company reported a total distributable profit of CNY 130.4 million, with cash dividends accounting for 100% of the profit distribution total[71] - The cash dividend for 2017 accounted for 20.58% of the net profit attributable to ordinary shareholders, which was RMB 130,403,327.65[78] Investment and R&D - The company is focused on expanding its investment projects, although there are uncertainties regarding construction progress and costs[5] - Research and development expenses rose to CNY 22.10 million, a 39.58% increase from the previous year, reflecting the company's commitment to enhancing R&D efforts[33] - The company plans to develop fully active vitamin D3 and similar products to enter the pharmaceutical and health product markets in the future[27] - The company is focusing on enhancing core technology and product competitiveness through R&D projects, including the optimization of ultra-pure lanolin technology and the development of granular lanolin products[47] Market and Sales - Vitamin D3 and its analogs accounted for 69.28% of total revenue, with sales amounting to CNY 290.88 million, reflecting a 40.79% increase from the previous year[37] - Domestic sales reached CNY 118.41 million, representing 28.20% of total revenue, with a year-on-year growth of 54.24%[37] - The gross margin for the food manufacturing sector was 57.41%, with a year-on-year increase of 20.48%[39] - The top five customers accounted for 55.41% of total sales, with the largest customer contributing 27.38% of annual sales[44] Corporate Governance - The company has maintained the same accounting firm for four consecutive years, with an audit fee of ¥600,000[86] - The company has implemented measures to ensure the fulfillment of public commitments by its controlling shareholders and management[81] - The company operates independently from its controlling shareholder in terms of business, personnel, assets, organization, and finance[152] - The company held its annual general meeting with a participation rate of 52.74% on February 13, 2017, and a first extraordinary general meeting with a participation rate of 53.91% on August 14, 2017[154] Employee and Management - The total number of employees in the company is 463, with 295 in the parent company and 168 in major subsidiaries[143] - The professional composition includes 297 production personnel, 15 sales personnel, 61 technical personnel, 29 financial personnel, and 61 administrative personnel[143] - The company has established a comprehensive talent training system to support strategic goals and enhance employee capabilities[146] - The total remuneration for directors and senior management during the reporting period amounts to 260.62 million yuan[142] Risks and Challenges - The company faces risks related to the price fluctuations of Vitamin D3, which significantly impact revenue[5] - The company has not encountered any major changes in project feasibility or funding usage, maintaining a consistent investment strategy[59] - The company is in a growth phase and has significant capital expenditure plans, with a minimum cash dividend distribution ratio of 20% of the distributable profit[73] Related Party Transactions - The company reported a significant related party transaction involving the purchase of goods and services amounting to 809.15 million RMB, with the largest transaction being 733.89 million RMB, representing 90.70% of the total[93] - The company engaged in a significant related party transaction involving the acquisition of land use rights totaling 41,984.00 square meters for CNY 29,303,300, which was identified as a key audit matter[172] Financial Position - The total assets of Zhejiang Huayuan Biological High-tech Co., Ltd. as of December 31, 2017, amounted to CNY 1,394,834,071.76, an increase from CNY 877,146,580.49 at the beginning of the year, representing a growth of approximately 58.8%[179] - The company's cash and cash equivalents increased significantly to CNY 440,675,594.77 from CNY 58,300,970.43, marking a growth of approximately 655.5%[180] - The total current assets reached CNY 868,996,300.88, up from CNY 379,391,699.77, indicating a growth of approximately 128.7%[181]

Financial Performance - Operating revenue for the reporting period was ¥77,187,458.57, representing a year-on-year growth of 20.77%[8] - Net profit attributable to shareholders surged by 156.64% to ¥27,962,875.94[8] - Basic earnings per share rose by 150.00% to ¥0.15[8] - The company's operating revenue for the year-to-date reached CNY 310,166,780.62, representing a 39.06% increase compared to CNY 223,044,004.77 in the same period last year, primarily due to increased sales volume of 25-hydroxy VD3 and higher average selling prices[18] - Net profit for the period was CNY 103,151,786.27, a significant increase of 287.42% from CNY 26,625,280.38 in the previous year, driven by higher operating revenue and improved product gross margins[19] - Total operating revenue for the current period reached ¥310,166,780.62, a significant increase from ¥223,044,004.77 in the previous period, representing a growth of approximately 39.0%[50] - Net profit for the current period was ¥103,151,786.27, compared to ¥26,625,280.38 in the previous period, reflecting a substantial increase of approximately 287.5%[51] - The company’s operating profit for the current period was ¥101,085,477.93, compared to ¥17,103,108.24 in the previous period, representing a 493% increase[54] Assets and Liabilities - Total assets at the end of the reporting period reached ¥940,022,998.04, an increase of 7.17% compared to the previous year[8] - Total current assets increased to ¥424,822,332.83 from ¥379,391,699.77, reflecting a growth of 12.0%[35] - Total non-current assets increased to ¥515,200,665.21 from ¥497,754,880.72, a rise of 3.5%[36] - Total liabilities decreased to ¥92,864,494.85 from ¥124,069,863.58, a decline of 25.2%[37] - Total equity attributable to shareholders increased to ¥847,158,503.19 from ¥753,076,716.91, a growth of 12.5%[38] - Cash and cash equivalents rose by 96.85% to CNY 114,762,579.00, up from CNY 58,300,970.43, mainly due to increased sales revenue and improved collection of receivables[18] - Accounts receivable decreased to ¥51,773,012.08 from ¥89,560,851.13, a decline of 42.3%[35] Cash Flow - Cash flow from operating activities for the year-to-date reached ¥123,786,816.78, a 120.84% increase[8] - Cash flow from operating activities increased by 120.84% to CNY 123,786,816.78, compared to CNY 56,052,537.70 in the same period last year, attributed to increased sales revenue and collection of payments[20] - The company reported cash inflows from investment activities totaling ¥410,871,905.86, a substantial increase from ¥13,250,226.77 in the prior period[59] - The net cash flow from financing activities was negative at -¥3,584,437.50, down from a positive ¥36,362,687.23 in the previous period[59] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,284[12] - The largest shareholder, Zhejiang Xiangyun Technology Co., Ltd., holds 38.72% of the shares, amounting to 70,233,011 shares[12] - The company plans to strictly adhere to the commitments regarding the circulation restrictions of its shares and voluntary lock-up during the lock-up period[24] - After the lock-up period expires, the company intends to reduce its shareholding by no more than 10% of its total holdings each year for two years[24] - The company will announce any planned share reductions three trading days in advance[25] Commitments and Regulations - The company has committed to not selling shares held prior to the public offering during the lock-up period[25] - The company will ensure that any share reductions comply with relevant laws and regulations[25] - The company will handle any income obtained from non-compliance with commitments according to legal requirements[24] - The company will extend the lock-up period if it fails to fulfill its commitments before the expiration date[25] - Zhejiang Huayuan Bio-High-Tech Co., Ltd. reported a commitment to distribute at least 20% of the annual distributable profit in cash dividends[27] Financial Strategy - The company plans to repurchase shares with a total amount of 20 million yuan, utilizing its own funds within one month from the triggering event[27] - The controlling shareholder, Xiangyun Technology, will extend the share lock-up period by six months to stabilize the stock price[27] - The company will implement stock price stabilization measures if the trading average price falls below the net asset value per share for 20 consecutive trading days[27] - The company’s board will announce specific plans for stock price stabilization within seven trading days after the triggering event[27] - The company plans to expand its existing business to increase market share and improve profitability, thereby mitigating the risk of diluted returns for investors due to new stock issuance[29]

Financial Performance - Total operating revenue for the first half of 2017 was CNY 232,979,322.05, representing a 46.40% increase compared to CNY 159,133,719.40 in the same period last year[20]. - Net profit attributable to shareholders of the listed company reached CNY 75,188,910.33, a significant increase of 378.01% from CNY 15,729,524.96 year-on-year[20]. - Net profit after deducting non-recurring gains and losses was CNY 71,676,349.56, up 445.80% from CNY 13,132,450.07 in the previous year[20]. - Net cash flow from operating activities was CNY 56,020,471.04, marking a 715.01% increase from CNY 6,873,562.32 in the same period last year[20]. - Basic earnings per share were CNY 0.41, a 355.56% increase compared to CNY 0.09 in the previous year[20]. - The company's revenue for the reporting period was ¥232,979,322.05, representing a year-on-year increase of 46.40%, primarily due to increased sales volume of 25-hydroxyvitamin D3[40]. - Operating profit for the first half of 2017 was ¥87,375,099.62, up from ¥15,735,353.14 in the same period last year, indicating a growth of approximately 454%[116]. - Total comprehensive income for the period reached ¥68,831,999.99, compared to ¥9,269,220.64 in the previous period, indicating significant growth[121]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 928,911,244.55, reflecting a 5.90% increase from CNY 877,146,580.49 at the end of the previous year[20]. - The total liabilities decreased to CNY 109,715,617.30 from CNY 124,069,863.58, marking a reduction of approximately 11.5%[108]. - The company's equity attributable to shareholders increased to CNY 819,195,627.25 from CNY 753,076,716.91, reflecting a growth of around 8.8%[109]. - The company's current assets totaled CNY 410,558,011.37 at the end of the reporting period, compared to CNY 379,391,699.77 at the beginning, indicating an increase of about 8.2%[107]. - Cash and cash equivalents decreased to CNY 51,985,832.25 from CNY 58,300,970.43, a decline of about 10.5%[106]. Market and Product Development - The main driver for the company's performance growth was the substantial increase in sales volume of 25-hydroxyvitamin D3, which saw a year-on-year surge[29]. - The company has established a complete industrial layout for vitamin D3 and its upstream and downstream products, enhancing its core competitiveness[27]. - The company is recognized as the largest producer of vitamin D3 globally, with a comprehensive product range including vitamin D3, 25-hydroxyvitamin D3, and NF-grade cholesterol[33]. - The company has plans for market expansion and new product development, although specific details were not provided in the financial report[116]. - For the future outlook, the company expects a revenue growth of 25% for the second half of 2017, driven by new product launches and market expansion strategies[63]. Risks and Challenges - The company faces risks related to the fluctuation of vitamin D3 prices, which significantly impact its performance[5]. - The company faces risks related to fluctuations in vitamin D3 prices, rapid expansion management challenges, and potential talent shortages in the specialized field[54][55]. - The company has implemented measures to avoid competition with its subsidiaries, ensuring no overlap in business operations[64]. Shareholder and Dividend Policies - The company does not plan to distribute cash dividends or issue bonus shares[7]. - A commitment to distribute at least 20% of its distributable profits as cash dividends has been reaffirmed, contingent on the absence of major investment plans[64]. - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from capital reserves for the semi-annual period[59]. Compliance and Governance - The actual controller and shareholders have fulfilled their commitments during the reporting period, with normal compliance noted for share transfer restrictions[60]. - The company will adhere to the commitments regarding the circulation restrictions of shares held prior to the public offering, with a plan to reduce holdings by no more than 10% of the shares held within two years after the lock-up period[62]. - The company has not conducted any major litigation or arbitration matters during the reporting period[71]. - The company has not engaged in any major related party transactions during the reporting period[74]. Research and Development - The company is investing in R&D for new technologies, particularly in the development of Vitamin D3, which is expected to enhance its product portfolio significantly[64]. - Research and development expenses were ¥9,656,672.08, showing a slight decrease of 2.04% from the previous year[40]. Financial Management - The company reported a significant increase in cash flow from operating activities, reaching ¥56,020,471.04, a 715.01% increase, attributed to higher product gross margins and increased sales receipts[40]. - The company has received multiple certifications for quality management, including FAMI-QS and ISO certifications, ensuring high product quality[35]. - The company has implemented a management process focused on safety and environmental standards, earning a special award from the Dongyang Environmental Protection Bureau[38]. Stock and Shareholder Management - The company will manage dividend income as a guarantee for fulfilling commitments if it fails to meet them[62]. - The company will announce any planned share reductions three trading days in advance[62]. - The company will repurchase its own shares using 20 million yuan within one month from the announcement date[65]. - The controlling shareholder will extend the lock-up period of shares by six months to support stock price stability[65].

浙江花园生物高科股份有限公司 2017 年第一季度报告全文 浙江花园生物高科股份有限公司 2017 年第一季度报告 2017 年 04 月 2 浙江花园生物高科股份有限公司 2017 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 1 浙江花园生物高科股份有限公司 2017 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人邵钦祥、主管会计工作负责人吴春华及会计机构负责人(会计主 管人员)姚丽锦声明：保证季度报告中财务报表的真实、准确、完整。 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 86,690,649.04 | 61,178,119.72 | 41.70% | | 归属于上市公司股东的净利润（元） | 20 ...

Revenue and Profitability - The revenue from Vitamin D3 and similar products accounts for over 60% of the company's total revenue, indicating significant exposure to price fluctuations in this segment[5]. - The company's operating revenue for 2016 was CNY 329,093,755.62, representing a 117.62% increase compared to CNY 151,221,057.40 in 2015[18]. - The net profit attributable to shareholders for 2016 was CNY 43,772,785.03, a significant increase of 262.52% from CNY 12,074,699.33 in 2015[18]. - The net profit after deducting non-recurring gains and losses reached CNY 38,436,637.86, up 707.60% from CNY 4,759,352.56 in 2015[18]. - The company achieved a net cash flow from operating activities of CNY 49,266,348.80, an increase of 15.87% compared to CNY 42,519,381.99 in 2015[18]. - The company’s basic earnings per share for 2016 were CNY 0.24, a 242.86% increase from CNY 0.07 in 2015[18]. - The weighted average return on equity for 2016 was 5.98%, up from 1.70% in 2015[18]. - The company reported a total profit for the current period of ¥50,708,298.36, compared to ¥11,778,192.78 in the previous period, representing an increase of approximately 330.5%[172]. Inventory and Assets - As of the end of the reporting period, the company's inventory value was 165 million CNY, representing 18.81% of total assets and 43.49% of current assets, highlighting a high level of inventory due to increasing sales[7]. - The total assets at the end of 2016 were CNY 877,146,580.49, reflecting an 11.34% increase from CNY 787,837,573.71 at the end of 2015[18]. - The company’s total current liabilities increased to CNY 119,316,043.36 from CNY 70,161,051.09, indicating a rise of about 69.9%[165]. - The company’s fixed assets increased to CNY 382,635,172.39 from CNY 355,009,267.59, reflecting a growth of approximately 7.8%[164]. - The company’s cash and cash equivalents decreased to CNY 58,300,970.43 from CNY 72,167,491.48, a decline of about 19.2%[163]. Strategic Initiatives - The company plans to issue up to 35 million shares in a private placement to raise no more than 460 million CNY to extend its Vitamin D3 industry chain[5]. - The company is focused on enhancing its competitive position in the Vitamin D3 market through strategic investments and product development[5]. - The company aims to expand its existing business significantly to increase market share and profitability, thereby promoting performance growth[79]. - The company plans to accelerate the sales of lanolin series products from Luoshen Technology, aiming to become a new profit growth point[67]. - The company’s development strategy focuses on building a complete upstream and downstream industrial chain for vitamin D3, emphasizing technological innovation[67]. Risk Management - The company has established a comprehensive governance structure and operational system to manage the risks associated with rapid expansion, although management risks remain a concern[5]. - The management emphasizes the importance of talent utilization in technology development and operational management to mitigate risks associated with rapid growth[5]. - The company is actively monitoring the market for potential impacts on its financial performance due to external factors affecting the Vitamin D3 pricing landscape[5]. - The company has made sufficient provisions for inventory impairment based on prudence, but market changes could still lead to potential losses affecting operational performance[5]. Profit Distribution - The profit distribution plan approved by the board proposes a cash dividend of 0.50 CNY per 10 shares, with no bonus shares issued, based on a total of 18.14 million shares[5]. - The total distributable profit for the year was CNY 43,772,785.03, with cash dividends accounting for 100% of the profit distribution[74]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of CNY 9,070,000 in both 2016 and 2014, and CNY 2,721,000 in 2015[76]. - The cash dividend payout ratio for 2015 was 22.53%, while for 2014 it was 24.32%[76]. - The independent directors have confirmed that the profit distribution plan aligns with the company's actual situation and does not harm the interests of minority shareholders[73]. Shareholder Structure - The total number of shares is 181,400,000, with 47.45% being restricted shares before the change and 46.76% after the change[107]. - The largest shareholder, Zhejiang Xiangyun Technology Co., Ltd., holds 37.91% of the shares, totaling 68,770,740 shares[111]. - The company has a total of 9,290 shareholders as of the report date[111]. - The company did not conduct any repurchase transactions among the top ten shareholders during the reporting period[112]. - The controlling shareholder of the company is Zhejiang Xiangyun Technology Co., Ltd., with a natural person as the actual controller[113]. Governance and Compliance - The company has established a comprehensive training system to enhance employee capabilities and align with strategic goals[129]. - The company has implemented a robust internal control system that meets regulatory requirements and effectively manages risks[143]. - The company’s governance structure ensures equal rights for all shareholders, particularly minority shareholders[135]. - The company has actively improved its governance practices in line with relevant laws and regulations, enhancing transparency and accountability[135]. - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the financial statements[160]. Employee and Management - The total number of employees receiving compensation is 461, with a total salary expense of 29.89 million RMB, accounting for 9.08% of the current operating income[128][129]. - The average salary for senior management is 27.51 million RMB per person[129]. - The company emphasizes a performance-based compensation system to encourage employee contributions to profitability and development[129]. - The company’s board includes a mix of experienced professionals with backgrounds in economics, engineering, and finance, enhancing its governance capabilities[121][122][123]. Financial Health - The company reported a decrease in general risk reserves, which were CNY 40,117,262 at the end of the period[191]. - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[200]. - The company reported a comprehensive income of RMB 9,211,853.60 for the period[194]. - The company has a registered capital of RMB 18,140,000 after the recent capital increase[197].