Financial Performance - The company's operating revenue for the first half of 2022 was ¥294,649,309.84, representing a 21.98% increase compared to ¥241,557,660.99 in the same period last year[20]. - The net profit attributable to shareholders of the listed company reached ¥323,577.14, a significant increase of 421.28% from ¥62,073.24 in the previous year[20]. - The net cash flow from operating activities was ¥15,920,867.23, showing a remarkable increase of 373.15% compared to ¥3,364,867.18 in the same period last year[20]. - Basic earnings per share rose to ¥0.0028, up 460.00% from ¥0.0005 in the previous year[20]. - The company reported a net profit after deducting non-recurring gains and losses of -¥8,399,212.66, a decrease of 14.46% compared to -¥7,338,344.90 in the previous year[20]. - The company achieved operating revenue of ¥294,649,309.84, representing a year-on-year increase of 21.98%[43]. - The net profit attributable to shareholders was ¥323,577.14, showing a significant year-on-year growth of 421.28%[43]. - The company reported a total investment of ¥700,000.00 during the reporting period, marking a 100% increase compared to the previous year[61]. - The company reported a total of 8,640,000 shares held by Jiangsu Gaotou Development Investment Co., Ltd., representing 7.40% of the total shares[136]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,890,393,960.18, a slight increase of 0.74% from ¥1,876,521,079.39 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were ¥1,429,268,530.90, showing a marginal increase of 0.02% from ¥1,428,944,953.76 at the end of the previous year[20]. - The company's cash and cash equivalents increased to ¥499,215,723.41, representing 26.41% of total assets, up from 21.91% last year, a change of 4.50%[59]. - Accounts receivable decreased to ¥19,544,058.37, accounting for 1.03% of total assets, down from 1.97%, a decline of 0.94%[59]. - Inventory rose to ¥121,916,165.36, making up 6.45% of total assets, an increase of 0.70% from the previous year[59]. - Long-term borrowings increased to ¥275,352,749.84, which is 14.57% of total assets, up from 11.19%, a rise of 3.38%[59]. - The total liabilities of the company were reported at 397.7 million yuan, which is a critical factor for assessing financial health[176]. Market and Industry - The company operates in the edible mushroom industry, focusing on research, factory cultivation, and sales, and is recognized as a leading enterprise in this sector in China[29]. - The edible mushroom industry faces intense competition due to increased supply and fluctuating prices of raw materials and logistics[29]. - The overall market demand for edible mushrooms remains strong, despite challenges posed by the COVID-19 pandemic affecting consumer behavior[29]. - The company is actively pursuing a nationwide strategic layout to strengthen its market position and expand into Southeast Asia[46][47]. - The company is expanding its production bases in Jiangsu, Chongqing, Hebei, and Guangxi to enhance market coverage and reduce costs[45][46]. Research and Development - The company has established a technical management department responsible for research and development, focusing on strain cultivation, medium formulation, and new product development[41]. - The company's R&D investment increased by 53.39% to ¥5,730,520.02, reflecting a commitment to enhancing research capabilities[54]. - Research and development expenses increased to CNY 5.73 million in the first half of 2022, up from CNY 3.74 million in the first half of 2021, marking a 53.1% increase[158]. - The company is exploring potential mergers and acquisitions to accelerate growth and expand market presence[174]. - The company has initiated research and development for new technologies, aiming to enhance its competitive edge in the market[178]. Risks and Challenges - The company has disclosed potential risk factors in the report, urging investors to pay attention to investment risks[4]. - The company faces risks from intensified market competition, which could lead to price declines and fluctuations in gross margins[78]. - Raw material price volatility poses a risk to production costs, as raw materials account for a significant portion of total costs[79]. - Seasonal fluctuations in agricultural product prices may impact the profitability of the company's mushroom products[81]. - The contamination rate of the company's enoki mushrooms remained low during the reporting period, but risks from bacteria and pests could adversely affect operations and performance[84]. Corporate Governance and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The company has not conducted any investor communications or research activities during the reporting period[86]. - The total number of ordinary shareholders at the end of the reporting period is 12,307[133]. - The largest shareholder, Yu Yangchao, holds 30.84% of the shares, totaling 35,987,628 shares[134]. - The company has a diverse shareholder base, including both domestic individuals and institutional investors[134]. Financial Reporting and Compliance - The financial report for the first half of 2022 has not been audited[147]. - The company adheres to the enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position and operating results as of June 30, 2022[193]. - The company’s accounting period follows the calendar year, from January 1 to December 31[194]. - The company uses RMB as its functional currency for accounting purposes[196].

Financial Performance - The company's revenue for Q1 2022 was CNY 170,717,067.49, representing a 22.76% increase compared to CNY 139,064,824.26 in the same period last year[3] - Net profit attributable to shareholders decreased by 13.20% to CNY 26,734,954.17 from CNY 30,799,153.39 year-on-year[3] - The net profit for the first quarter of 2022 was CNY 26,747,582.62, a decrease of 13.6% compared to CNY 30,833,493.13 in the same period last year[20] - The operating profit for the first quarter was CNY 26,795,582.62, down from CNY 30,842,969.01, reflecting a decline of 13.3% year-over-year[20] - The company's basic earnings per share dropped by 67.14% to CNY 0.23 from CNY 0.70 in the same period last year[3] - The basic and diluted earnings per share for the first quarter were both CNY 0.23, down from CNY 0.70 in the previous year[21] Cash Flow - The net cash flow from operating activities surged by 482.66% to CNY 53,725,956.55, significantly higher than CNY 9,220,734.28 in the previous year[3] - The total cash flow from operating activities was CNY 53,725,956.55, significantly up from CNY 9,220,734.28 in the previous year, indicating a strong improvement in cash generation[24] - The company reported cash inflow from investment activities of CNY 423,881,553.42, compared to CNY 39,133,914.68 in the prior year, marking a substantial increase[24] - The net cash flow from financing activities was CNY 39,673,983.59, a turnaround from a net outflow of CNY 10,444,443.56 in the same quarter last year[25] - The total cash and cash equivalents at the end of the period reached CNY 605,921,777.86, a significant increase from CNY 171,300,923.23 at the end of the previous year[25] Assets and Liabilities - Total assets increased by 3.93% to CNY 1,950,254,096.69 from CNY 1,876,521,079.39 at the end of the previous year[3] - The total liabilities of the company amounted to RMB 481,808,825.00, up from RMB 438,923,390.32 at the beginning of the year, indicating an increase of 9.8%[17] - The company's fixed assets increased to RMB 826,366,345.60 from RMB 776,779,939.41, reflecting a growth of 6.4%[15] - The company's inventory increased to RMB 113,898,638.05 from RMB 107,921,860.27, showing a rise of 5.5%[15] Operating Costs and Expenses - Operating costs rose by 32.86% to CNY 143,765,250.74, primarily due to increased raw material costs and the production commencement of a new company[7] - Total operating costs for Q1 2022 were RMB 148,586,196.63, up 32.8% from RMB 111,933,934.05 in Q1 2021[19] - Research and development expenses for Q1 2022 were RMB 1,683,353.92, a decrease of 19.2% compared to RMB 2,081,209.43 in Q1 2021[19] - The company incurred interest expenses of CNY 1,142,550.36, which is a notable increase from CNY 142,444.44 in the same period last year[20] Shareholder Information - The company reported a total of 13,251 common shareholders at the end of the reporting period[10] - The company received government subsidies amounting to CNY 3,994,020.82, which are closely related to its normal business operations[5] - The company received CNY 4,100,000.00 from minority shareholders as part of capital contributions during the quarter[25] New Developments - The company established a new subsidiary in Guangxi with a registered capital of RMB 50 million to develop a modern agricultural edible fungus factory project[12] - The company reported a net profit increase, with retained earnings rising to RMB 477,345,631.89 from RMB 450,620,871.46, an increase of 5.9%[17]

Financial Performance - The company's performance declined year-on-year, with specific reasons detailed in the "Management Discussion and Analysis" section[6]. - The company's operating revenue for 2021 was ¥578,088,209.15, a decrease of 5.14% compared to ¥609,398,494.86 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥15,504,571.94, representing a significant decline of 88.30% from ¥132,500,434.75 in 2020[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,916,130.92, down 96.79% from ¥122,153,693.17 in 2020[21]. - The net cash flow from operating activities decreased by 58.27% to ¥83,083,400.59 in 2021 from ¥199,089,625.62 in 2020[21]. - The total assets at the end of 2021 increased by 61.11% to ¥1,876,521,079.39 compared to ¥1,164,722,157.98 at the end of 2020[21]. - The net assets attributable to shareholders rose by 68.54% to ¥1,428,944,953.76 at the end of 2021 from ¥847,838,098.33 at the end of 2020[21]. - The gross profit margin for edible mushrooms was 6.66%, down by 20.62% from the previous year[58]. - The company reported a net profit of ¥15,504,600 in 2021, with significant discrepancies between net profit and cash flow from operating activities attributed to depreciation, inventory increases, and changes in receivables and payables[74]. Dividend and Share Capital - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[7]. - The company distributed a cash dividend of RMB 5.20 per 10 shares, totaling RMB 30,342,000 (including tax) for the 2020 fiscal year[152]. - The company did not propose any cash dividend distribution for the 2021 fiscal year, focusing instead on long-term investment needs[156]. - The company plans to increase its total share capital from 58,350,000 shares to 116,700,000 shares by issuing 10 additional shares for every 10 shares held[152]. Research and Development - The company’s R&D team is composed of experienced professionals from agriculture, food, and biology, supporting sustainable innovation[39]. - Research and development investment amounted to RMB 8,624,943.56, resulting in the addition of 49 new patents, enhancing the company's technological strength[52]. - The company is focused on developing 2-3 new patents and research papers related to mushroom cultivation technologies[68]. - The company is working on improving equipment and processes to enhance the economic benefits of deer antler mushroom cultivation[68]. - The company completed the automation design for the feeding process in the enoki mushroom production, enhancing production efficiency and reducing energy consumption[69]. - The company developed liquid strains for crab mushrooms, resulting in reduced production cycles and costs, while increasing yield and quality[70]. Market and Product Development - The company operates in the agricultural sector, specifically in the cultivation of edible fungi, which has seen a shift towards factory-based production models[31]. - The company’s main products include enoki mushrooms, king oyster mushrooms, and maitake mushrooms, which are popular cooking ingredients[35]. - The company is expanding its production bases, with the Jiangsu base expected to produce 7,800 tons of enoki mushrooms and the Hebei base projected to produce 54,000 tons of fresh enoki mushrooms annually[51]. - The company has established a subsidiary in Chongqing focused on the research, production, and sales of Cordyceps flowers, diversifying its product offerings beyond enoki mushrooms[51]. - The company aims to diversify its product offerings by expanding research, production, and sales of other edible mushroom products to improve market competitiveness and sustainable profitability[191]. Governance and Compliance - The company has established a complete governance structure, including a board of directors, supervisory board, and shareholder meetings, ensuring independent operation[121]. - The company emphasizes transparency in information disclosure, utilizing multiple media outlets for timely updates[115]. - The company has a dedicated investor relations management system to enhance communication with investors[115]. - The company has implemented a performance evaluation system for directors and senior management, ensuring accountability and effective governance[113]. - The company has maintained a governance structure that complies with relevant laws and regulations[165]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding future plans and forecasts[6]. - The company faces risks from intensified market competition, which may lead to price declines and fluctuations in gross margins[106]. - The company is exposed to risks from raw material price volatility, which significantly impacts production costs and gross margins[106]. - The company relies heavily on a single product, enoki mushrooms, which accounted for over 90% of total sales, posing a risk if demand decreases[107]. - Changes in tax policies could adversely affect the company's net profit, as current sales of agricultural products are exempt from VAT and corporate income tax[108]. Social Responsibility - The company is committed to social responsibility, contributing to local employment and rural revitalization while providing green and healthy food[50]. - The company actively fulfills its corporate social responsibility by adhering to labor laws and providing various employee benefits[165]. - The company has not engaged in poverty alleviation or rural revitalization efforts during the reporting period[166]. Employee Management - The total number of employees at the end of the reporting period was 1,829, with 822 in the parent company and 1,007 in major subsidiaries[147]. - The company's compensation policy emphasizes a fair and sustainable distribution system, including basic salary, skill salary, performance salary, and various bonuses[149]. - The company plans to continuously improve its compensation performance system to ensure internal fairness and external competitiveness[149]. Fundraising and Financial Management - The company completed its initial public offering, raising a net amount of RMB 59,610.98 million, which supports the long-term development of its main business[52]. - The company has established a financial management system to oversee the use of raised funds effectively[86]. - The company approved the change of fundraising usage, terminating the "annual production of 30,000 tons of true mushrooms project" and reallocating the raised funds of CNY 309.60 million to the construction of the Hebei Hualv annual production of 54,000 tons of fresh enoki mushroom factory project[87]. - The company has committed to accelerate the construction of fundraising projects to achieve expected benefits as soon as possible[191]. Shareholder Relations - The company held 4 shareholder meetings during the reporting period, complying with legal regulations and company bylaws[113]. - The annual shareholders meeting had a participation rate of 42.75% on May 18, 2021[123]. - The company has a plan to stabilize its stock price for three years post-IPO, which includes timely disclosures and potential compensation for unfulfilled commitments[187]. Legal and Regulatory Compliance - The company has not reported any significant legal disputes related to its investments[84]. - The company did not identify any risks during the supervisory activities of the supervisory board in the reporting period[146]. - The company reported no penalties from regulatory bodies for its directors and senior management in the past three years, indicating a clean compliance record[135].

Revenue and Profit - Revenue for Q3 2021 was CNY 139,783,840.34, an increase of 9.20% compared to the same period last year[2] - Net profit attributable to shareholders was CNY -4,172,489.69, a decrease of 113.62% year-on-year[2] - The company reported a basic earnings per share of CNY -0.0358, down 105.11% from the same period last year[2] - Total revenue for the current period was CNY 381,341,501.33, a decrease of approximately 13.5% compared to CNY 441,013,158.38 in the previous period[25] - The company's net profit attributable to shareholders decreased to CNY 430,854,389.14 from CNY 465,458,299.52, a decline of approximately 7.4%[24] - The net profit for Q3 2021 was -4,026,910.21 CNY, compared to a net profit of 101,775,629.99 CNY in the same period last year, indicating a significant decline[26] - Operating profit for Q3 2021 was -3,880,071.58 CNY, a sharp decrease from 103,877,512.59 CNY in Q3 2020[26] - The total comprehensive income attributable to the parent company was -4,110,416.45 CNY, compared to 101,815,589.87 CNY in the same period last year[27] Assets and Liabilities - Total assets at the end of Q3 2021 reached CNY 1,821,346,947.47, representing a 56.38% increase from the end of the previous year[3] - The company's total liabilities increased to CNY 408,642,364.75 from CNY 313,672,792.10, reflecting a growth of about 30.3%[23] - The company's registered capital increased from CNY 5,835 million to CNY 11,670 million following the approval of a capital change at the shareholders' meeting[19] - The company’s long-term borrowings increased to CNY 204,140,359.42 from CNY 133,004,653.53, reflecting a growth of about 53.5%[23] Cash Flow - Cash flow from operating activities showed a net amount of CNY 2,267,161.54, a significant decrease of 98.27% year-to-date[2] - Operating cash flow decreased by 98.27% to ¥2,267,161.54 compared to ¥130,889,358.12 in the same period last year, primarily due to rising raw material costs and declining sales prices[11] - Cash flow from operating activities generated a net cash inflow of 2,267,161.54 CNY, down from 437,167,664.87 CNY in the previous year[31] - Investment activities resulted in a net cash outflow of -112,278,356.50 CNY, compared to -125,883,969.31 CNY in the previous year[31] - Financing activities generated a net cash inflow of 657,598,389.29 CNY, a significant increase from -30,034,742.55 CNY in Q3 2020[32] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 14,175[13] - The largest shareholder, Yu Yangchao, holds 30.84% of the shares, amounting to 35,987,628 shares[14] - The second-largest shareholder, Ruan Xiulian, holds 8.30% of the shares, totaling 9,683,876 shares[14] - The company has a total of 43,760,000 restricted shares, which will be released on April 11, 2024[18] - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest holding being 35,987,628 shares[14] - The company is actively managing its shareholder structure, with several shareholders having significant stakes and potential future liquidity events[17] - The company has seen an increase in the number of shares held by institutional investors, indicating growing interest from the investment community[15] Expenses and Costs - Sales expenses rose to CNY 5,418,513.11, a 74.75% increase due to enhanced sales efforts and increased personnel[10] - Financial expenses turned negative at CNY -9,438,143.94, a decrease of 645.35% attributed to increased interest income[10] - The total operating costs rose to CNY 396,225,132.55, up from CNY 344,835,842.14, indicating an increase of about 15%[25] - The company incurred a total operating expense of 385,151,310.83 CNY, compared to 306,278,306.75 CNY in the same quarter last year[31] Government Support and Future Plans - The company received government subsidies amounting to CNY 10,417,491.92, a 49.53% increase compared to the previous year[10] - The company plans to continue focusing on market expansion and product development to enhance future performance[18] - The company established new subsidiaries in Chongqing and Wangdu County, enhancing its market presence[19] Inventory and Cash Equivalents - The company reported a significant increase in inventory, which rose to CNY 107,274,054.43 from CNY 83,823,317.74, an increase of approximately 28%[21] - The company's cash and cash equivalents significantly increased to CNY 739,584,919.14 from CNY 191,997,724.81, marking a growth of about 285.5%[21] - The company reported a cash and cash equivalents balance of 739,584,919.14 CNY at the end of the quarter, up from 85,003,138.97 CNY at the end of the same quarter last year[32]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥241,557,660.99, a decrease of 15.85% compared to ¥287,061,212.07 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥62,073.24, down 99.91% from ¥71,161,104.78 in the previous year[19]. - The net cash flow from operating activities was ¥3,364,867.18, a decline of 96.78% compared to ¥104,511,522.34 in the same period last year[19]. - Basic earnings per share were ¥0.001, a decrease of 99.94% from ¥1.63 in the same period last year[19]. - The diluted earnings per share were ¥0.001, down 99.84% from ¥0.61 in the previous year[19]. - The weighted average return on net assets was 0.00%, a decrease of 9.21% from 9.21% in the same period last year[19]. - The gross profit margin for the main product, enoki mushrooms, decreased by 30.81% to 1.86% due to a 22.39% drop in revenue[58]. - The total comprehensive income for the first half of 2021 was CNY 217,511.65, compared to CNY 71,160,612.46 in the first half of 2020, reflecting a drastic decline[163]. Assets and Liabilities - The total assets at the end of the reporting period increased by 52.88% to ¥1,780,569,805.14 from ¥1,164,722,157.98 at the end of the previous year[19]. - The total liabilities of the company were CNY 362,622,375.56, compared to CNY 313,672,792.10 at the end of 2020, marking an increase of about 15.6%[154][155]. - The equity attributable to the owners of the parent company rose to CNY 1,414,425,171.50 from CNY 847,838,098.33, representing an increase of approximately 66.7%[155]. - The company's current assets reached CNY 884,975,650.16, up from CNY 336,016,401.75 at the end of 2020, indicating a significant increase of about 163.5%[152][153]. - The total amount of guarantees provided by the company during the reporting period was 5,594.71 million RMB, with an approved guarantee amount of 32,400 million RMB[123]. Market and Industry Context - The edible mushroom market is experiencing a downward price trend, while raw material costs have increased, leading to a decrease in overall industry profitability[47]. - The company ranks fourth in the scale production of enoki mushrooms according to the 2019 report by the China Edible Mushroom Association[48]. - The company faces risks from intensified market competition leading to price declines and fluctuations in gross margin, with the edible mushroom market experiencing a downward trend in average prices[81]. - Raw material prices significantly impact production costs, with major materials including corn cobs and rice bran; any sustained increase in these prices could adversely affect gross margin and overall performance[82]. Research and Development - The company has established a strong R&D team with expertise in agriculture, food, and biology, ensuring sustainable development of its R&D capabilities[43]. - The research and development expenditure for the period was RMB 3,735,853.06, down 18.64% from the previous year[56]. - The company has allocated 10.5 million for new product development and technological advancements in the current fiscal year[183]. Corporate Governance and Compliance - The company has detailed potential risk factors in the report, urging investors to be aware of investment risks[5]. - The company does not report any discrepancies between domestic and international accounting standards for net profit and net assets[20]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[76][77]. - The financial report for the first half of 2021 was not audited[150]. Future Outlook and Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[180]. - The company expects revenue growth of 10% in the next fiscal year, driven by new product launches and market expansion efforts[180]. - The company aims to improve its operational efficiency and reduce costs by 5% in the upcoming quarters[180]. - The company has initiated a strategic review of potential acquisition targets to enhance its market position[180]. Shareholder Information - Major shareholder Yu Yangchao holds 30.84% of the shares, while other significant shareholders include Ruan Xiulian with 8.30% and Jiangsu Gaotou Development Venture Capital Co., Ltd. with 7.40%[138]. - The total number of ordinary shareholders at the end of the reporting period was 14,502[138]. - The company’s registered capital increased from RMB 43.76 million to RMB 58.35 million following the share issuance[136].

Financial Performance - The company's revenue for Q1 2021 was ¥139,064,824.26, a decrease of 22.10% compared to ¥178,521,545.80 in the same period last year[9] - Net profit attributable to shareholders was ¥30,799,153.39, down 57.43% from ¥72,345,807.65 year-on-year[9] - Basic earnings per share decreased to ¥0.70, down 57.58% from ¥1.65 in the same period last year[9] - The company's net profit for Q1 2021 was CNY 30,833,493.13, down from CNY 72,345,807.65 in Q1 2020, representing a decline of 57.3%[41] - The total comprehensive income for Q1 2021 was CNY 30,833,493.13, significantly lower than CNY 72,345,807.65 in Q1 2020, indicating a decline of 57.3%[41] - The total operating profit for Q1 2021 was CNY 30,842,969.01, down from CNY 73,865,216.08 in Q1 2020, reflecting a decline of 58.3%[44] - The company reported a gross profit margin of approximately 22.5% for Q1 2021, down from 36.9% in Q1 2020, indicating a decline in profitability[43] Cash Flow - The net cash flow from operating activities was ¥9,220,734.28, representing a significant decline of 88.50% compared to ¥80,158,178.84 in the previous year[9] - The cash flow from operating activities for Q1 2021 was CNY 9,220,734.28, a substantial decrease from CNY 80,158,178.84 in the same period last year[48] - Total cash inflow from investing activities was ¥17,633,000.00, while cash outflow was ¥4,966,212.54, resulting in a net cash flow of ¥12,666,787.46, compared to a negative cash flow of ¥11,155,728.73 in the previous year[51] - The company reported a total cash inflow from financing activities of ¥128,800,000.00, with cash outflow of ¥40,173,000.01, leading to a net cash flow of -¥40,173,000.01, compared to -¥1,116,329.12 in the previous year[52] - The ending balance of cash and cash equivalents was ¥3,778,347.45, a significant decrease from ¥38,765,850.68 in the same period last year[52] - The company’s cash and cash equivalents decreased by ¥8,992,161.86 during the quarter, compared to an increase of ¥33,656,395.04 in the same period last year[52] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,160,414,284.53, a slight decrease of 0.36% from ¥1,164,722,157.98 at the end of the previous year[9] - The company's total assets as of March 31, 2021, were CNY 699,767,520.01, down from CNY 718,422,385.54 at the end of 2020[35] - The total liabilities decreased to CNY 209,392,332.38 from CNY 240,831,285.16, showing a reduction of approximately 13%[36] - The company's net assets attributable to shareholders increased by 3.61% to ¥878,483,672.62 from ¥847,838,098.33 at the end of the previous year[9] Receivables and Payables - Accounts receivable increased by 75.53% to ¥27,265,577.18 due to the addition of new customers[17] - The balance of other receivables rose by 241.38% to ¥802,358.30, primarily due to an increase in receivable interest[17] - Employee compensation payable at the end of the reporting period was ¥6,244,062.69, a decrease of 67.44% compared to the beginning of the year, mainly due to the payment of the 2020 year-end bonus in the first quarter[18] - Tax payable at the end of the reporting period was ¥87,398.93, a decrease of 61.34% compared to the beginning of the year, primarily due to the payment of taxes accrued at the beginning of the year in the first quarter[18] Expenses - Sales expenses for the first quarter of 2021 amounted to ¥1,521,677.93, an increase of 88.58% year-on-year, attributed to the increase in the number of sales offices and personnel[19] - Management expenses for the first quarter of 2021 were ¥1,847,871.93, a decrease of 65.83% year-on-year, due to cost control measures implemented by the company[19] - Financial expenses for the first quarter of 2021 were -¥1,821,284.33, a decrease of 919.96% year-on-year, mainly due to increased interest income[19] - Other income for the first quarter of 2021 was ¥3,614,192.31, an increase of 49.51% year-on-year, primarily due to higher government subsidies received[19] - Cash paid for purchasing goods and services in the first quarter of 2021 was ¥81,344,269.89, an increase of 36.62% year-on-year, due to increased material procurement for new production bases[19] - Cash received from investment income in the first quarter of 2021 was ¥79,996.87, a decrease of 77.36% year-on-year, due to reduced financial income compared to the previous year[19] Research and Development - Research and development expenses for Q1 2021 were CNY 1,554,727.72, slightly lower than CNY 1,769,929.01 in the previous year[43] Asset Disposal - The company incurred a loss of CNY 8,411.75 from asset disposal in Q1 2021, compared to a loss of CNY 108,782.56 in the same period last year[44] Accounting Policies - The company did not adjust the balance sheet items at the beginning of the year under the new leasing standards, indicating no significant changes in accounting policies[53]

Financial Performance - The company's operating revenue for 2020 was CNY 609,398,494.86, representing a 5.90% increase compared to CNY 575,423,257.00 in 2019[15] - The net profit attributable to shareholders for 2020 was CNY 132,500,434.75, which is a 9.80% increase from CNY 120,671,631.53 in the previous year[15] - The basic earnings per share for 2020 was CNY 3.03, reflecting a 9.78% increase from CNY 2.76 in 2019[15] - The total assets of the company at the end of 2020 were CNY 1,164,722,157.98, a 14.44% increase from CNY 1,017,724,461.83 at the end of 2019[15] - The net assets attributable to shareholders at the end of 2020 were CNY 847,838,098.33, which is a 15.01% increase from CNY 737,207,163.58 in 2019[15] - The company reported a net cash flow from operating activities of CNY 122,153,693.17 for 2020, up 7.44% from CNY 113,690,614.31 in 2019[15] - The weighted average return on equity for 2020 was 16.23%, down from 17.81% in 2019[15] - The company achieved operating revenue of CNY 609.60 million, an increase of 5.90% compared to the previous year[54] - The net profit attributable to the parent company was CNY 132.50 million, reflecting a growth of 9.80% year-on-year[54] - The company’s total assets as of December 31, 2020, amounted to CNY 1.16 billion, with net assets attributable to shareholders of CNY 847.84 million[54] Cash Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 5.2 per 10 shares, totaling CNY 30,000,000 based on 58,350,000 shares[5] - The cash dividend represents 22.90% of the net profit attributable to ordinary shareholders, which was RMB 132,500,434 for 2020[137] - The total distributable profit for the year was RMB 465,458,299.52, with 100% allocated to cash dividends[130] - The company proposed a cash dividend of RMB 5.2 per 10 shares, totaling RMB 30,342,000 for the year 2020[133] - The company is in a growth phase and aims to maintain a minimum cash dividend ratio of 20% during profit distributions[132] - The board's profit distribution proposal requires approval from the shareholders' meeting after independent director and supervisory board review[128] Market and Product Development - The company specializes in the research, industrial cultivation, and sales of edible mushrooms, positioning itself as a leading enterprise in this sector in China[25] - The main products include enoki mushrooms, king oyster mushrooms, maitake mushrooms, and lion's mane mushrooms, which are cultivated using advanced biotechnological methods[26] - The company successfully launched a new product, the factory-cultivated maitake mushroom, with an annual production capacity of 2,500 tons, further diversifying its product offerings[56] - The company has developed advanced liquid strain technology, which has been recognized for its efficiency and cost-effectiveness in production[48] - The company is actively developing new edible mushroom varieties and exploring downstream food processing sectors to diversify its product structure[103] - The company plans to enhance production capacity and implement a nationwide layout strategy, accelerating the construction of various projects in different regions[107] - The company aims to develop new varieties of cultivated edible mushrooms and deep-processing products, expanding its product range beyond the current main products[108] Research and Development - Research and development expenses for 2020 were ¥8,816,948.24, an increase of 16.60% compared to ¥7,561,605.82 in 2019[78] - The company has invested in optimizing production processes and enhancing R&D capabilities, focusing on high-yield strain cultivation and automated production processes[59] - The company has a total of 57 patents as of the end of the reporting period, indicating a strong focus on innovation and technology development[63] - The company is investing heavily in R&D, allocating 100 million RMB for the development of new technologies aimed at enhancing product efficiency[144] Risk Management - The company has identified potential risks in its future development, which investors should be aware of[5] - The company recognizes the risk of intensified market competition leading to price declines and fluctuations in gross margins due to increased supply from new entrants[117] - The company faces risks from raw material price fluctuations, which significantly impact production costs and gross margins[118] - The company is exposed to risks associated with product concentration, as over 90% of sales come from enoki mushrooms, making it vulnerable to market changes[119] - The company acknowledges the potential impact of seasonal market fluctuations on agricultural product prices, which could affect profitability[120] Corporate Governance and Compliance - The company has committed to fulfilling all promises made during the IPO and related transactions[138] - The company will provide timely and effective supplementary commitments to safeguard investor rights[174] - The company has established a responsibility mechanism for accountability in case of non-compliance with commitments[175] - The company will comply with all relevant laws and regulations regarding shareholding and transfer[173] - The company has made commitments to protect the rights of investors and ensure compliance with regulations[194] Strategic Acquisitions and Market Expansion - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 500 million RMB allocated for potential mergers[146] - The company plans to expand its market presence by entering three new provinces in China by the end of 2021, aiming to increase its market share by 10%[158] - A strategic acquisition of a local biotech firm is expected to enhance the company's product portfolio and increase market competitiveness[162] Customer and Supplier Management - The company maintains a stable customer base while continuously expanding new clients to reduce sales concentration[41] - Total sales from the top five customers amounted to ¥142,832,039.30, representing 23.44% of the annual total sales[73] - The top five suppliers accounted for ¥122,790,250.07 in purchases, which is 39.83% of the total annual purchases[74] Sustainability and Social Responsibility - The company is committed to modern efficient agriculture and promoting a circular economy in agriculture, focusing on producing green and healthy food[101] - The company is committed to maintaining food quality and safety standards, having obtained relevant certifications to mitigate risks associated with product safety[121] - The management emphasized a commitment to sustainability, aiming to reduce operational costs by 8% through eco-friendly practices by 2022[189]