中农立华(603970) - 2025 Q2 - 季度财报

Section 1 Definitions This section provides definitions of key terms used throughout the report Section 2 Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance metrics for the reporting period I. Company Information This section outlines the basic information of Sino-Agri Leading Biosciences Co., Ltd., including company name, abbreviation, foreign name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 中农立华生物科技股份有限公司 (Sino-Agri Leading Biosciences Co., Ltd.) | | Chinese Abbreviation | 中农立华 (Sino-Agri Leading) | | Foreign Name | SINO-AGRI LEADING BIOSCIENCES CO.,LTD | | Foreign Name Abbreviation | SAL | | Legal Representative | 苏毅 (Su Yi) | II. Contacts and Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including name, address, phone, fax, and email Contact Information | Position | Name | Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | 黄柏集 (Huang Baiji) | 北京市西城区宣武门外大街甲1号九层912室 (Room 912, 9th Floor, Building A1, Xuanwumenwai Street, Xicheng District, Beijing) | 010-59337358 | 010-59337389 | sal@sino-agri-sal.com | | Securities Affairs Representative | 常青 (Chang Qing) | 北京市西城区宣武门外大街甲1号九层912室 (Room 912, 9th Floor, Building A1, Xuanwumenwai Street, Xicheng District, Beijing) | 010-59337358 | 010-59337389 | sal@sino-agri-sal.com | III. Brief Introduction to Changes in Basic Information During the reporting period, there were no changes in the company's basic information such as registered address, office address, website, and email - During the reporting period, the company's basic information remained unchanged[29] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations During the reporting period, there were no changes in the company's information disclosure website address and semi-annual report custody location - During the reporting period, the company's information disclosure and document custody locations remained unchanged[31] V. Company Stock Overview The company's stock is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Sino-Agri Leading and stock code 603970 Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | SSE | 中农立华 (Sino-Agri Leading) | 603970 | - | VII. Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue increased by 3.27% to 6.745 billion yuan, but total profit and net profit attributable to shareholders both decreased by over 10%; net cash flow from operating activities was negative and significantly declined, while total assets increased by 20.54% H1 2025 Key Accounting Data | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,745,417,178.40 yuan | 6,531,899,796.88 yuan | 3.27 | | Total Profit | 204,247,225.52 yuan | 228,000,032.22 yuan | -10.42 | | Net Profit Attributable to Shareholders of Listed Company | 142,180,574.70 yuan | 158,090,134.79 yuan | -10.06 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 136,464,935.58 yuan | 153,153,287.76 yuan | -10.90 | | Net Cash Flow from Operating Activities | -1,174,294,556.38 yuan | -617,103,636.02 yuan | N/A | | End of Current Period | End of Prior Year | Period-end vs Prior Year-end Change (%) | | | Net Assets Attributable to Shareholders of Listed Company | 1,540,916,331.57 yuan | 1,520,445,416.61 yuan | 1.35 | | Total Assets | 6,752,721,194.42 yuan | 5,602,253,258.06 yuan | 20.54 | H1 2025 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.5289 | 0.5881 | -10.07 | | Diluted Earnings Per Share (Yuan/Share) | 0.5289 | 0.5881 | -10.07 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (Yuan/Share) | 0.5077 | 0.5698 | -10.90 | | Weighted Average Return on Net Assets (%) | 8.94 | 10.41 | Decreased by 1.47 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 8.58 | 10.08 | Decreased by 1.50 percentage points | IX. Non-Recurring Gains and Losses Items and Amounts In H1 2025, the company's total non-recurring gains and losses amounted to 5.7156 million yuan, primarily from government grants, gains/losses from entrusted investments, and fair value changes of financial assets/liabilities H1 2025 Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from disposal of non-current assets | -445,155.41 | | Government grants recognized in current profit/loss | 4,434,476.90 | | Gains/Losses from fair value changes and disposal of financial assets and liabilities | 382,416.66 | | Gains/Losses from entrusted investments or asset management | 4,508,066.45 | | Other non-operating income and expenses | 447,732.89 | | Less: Income tax impact | 2,330,991.41 | | Minority interest impact (after tax) | 1,280,906.96 | | Total | 5,715,639.12 | Section 3 Management Discussion and Analysis This section discusses the company's industry, main business operations, core competencies, and key financial performance during the reporting period, along with risk factors and mitigation strategies I. Description of the Company's Industry and Main Business Operations During the Reporting Period The company's main business is pesticide distribution and plant protection technical services, covering the entire industry chain from raw material trade to formulation sales; in H1 2025, raw material prices fluctuated at the bottom, exports grew steadily, and stricter safety regulations are anticipated - The company's main business is pesticide distribution and plant protection technical services, including raw material and formulation sales, and crop health solutions[37] - The company's operating model focuses on high-value segments in agrochemical, building a global supply chain platform with four business segments: Crop Health, International, Chemical, and Joint Sales[38] - In H1 2025, the pesticide raw material price index decreased by 1.27% year-on-year, with herbicides down 2.43%, fungicides down 5.2%, and insecticides up 6.04%; China's pesticide export volume and value increased by 15.9% and 13.4% respectively[39] - A chemical plant explosion in Shandong indicates future stricter safety production regulations for pesticides, presenting market opportunities for enterprises with "technology + cost" advantages[40] II. Discussion and Analysis of Operations Facing declining pesticide raw material prices and sluggish market demand, the company achieved total assets of 6.753 billion yuan, operating revenue of 6.745 billion yuan, and net profit of 159 million yuan in H1 2025, implementing strategies like service center expansion, product optimization, and supply chain enhancement - In H1 2025, the company's total assets were 6.753 billion yuan, operating revenue 6.745 billion yuan, net profit 159 million yuan, and net profit attributable to shareholders 142 million yuan[40] - The company promoted the construction of China Agricultural Materials - Farmer Service Centers, establishing 5 new centers in Zhejiang, Henan, Sichuan, and Hunan[41] - The company launched 11 new products, improving product lines and crop solutions, with service area for key solution products increasing by over 100%[42] - The company obtained 40 new independent product registrations overseas, accumulating 2,081 overseas pesticide product registrations, and increasing the sales proportion of independently registered products[43] - The company adjusted the product structure of raw materials and intermediates, optimizing the proportion of high-value-added products, accelerating the digestion of old product inventory, and improving product turnover[44] - The company optimized warehouse and logistics resources, ensuring 24-hour delivery for provincial orders, and controlling warehousing costs through temporary short-term leases[45][46] III. Analysis of Core Competencies During the Reporting Period The company's core competencies span brand influence, global supply chain, R&D application, information services, and talent team, leveraging its "SINO-AGRI" and "China Agricultural Materials" brands, extensive network, patented technologies, industry price index, and skilled workforce - The company promotes its independent brand "SINO-AGRI" in international markets and inherits the "China Agricultural Materials" brand gene domestically, building the "Lihua Weihong" service brand and launching crop solutions like "Zhongnong Dingliangzhu"[47][48] - The company collaborates with over 300 global suppliers, building a "one-stop" integrated supply platform with 6 overseas subsidiaries, 27 domestic warehousing and distribution centers, and over 3,000 channel partners, creating a global glyphosate supply chain value platform[49][50] - The company has a pesticide application R&D center with "Pesticide Registration Test Unit" qualification, undertakes national and supply and marketing cooperative technology projects, collaborates with domestic and international research institutes, holds 19 national invention patents, and conducts nearly 6,000 trials and demonstrations annually[51][52] - The company pioneered the Sino-Agri Leading Raw Material Price Index, becoming an industry benchmark, and established long-term cooperation with several central and industry media to enhance brand visibility[53][54] - The company possesses a professional, efficient, and advanced management team and a high-caliber professional talent pool, with 57% of employees under 35 years old and 65% holding a bachelor's degree or above[55] IV. Key Operating Performance During the Reporting Period In H1 2025, operating revenue increased by 3.27%, but total profit and net profit declined; sales and administrative expenses rose, R&D investment increased, and operating cash flow saw a significant outflow; total assets grew by 20.54%, with notable increases in accounts receivable and prepayments, and significant increases in short-term borrowings and accounts payable H1 2025 Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,745,417,178.40 | 6,531,899,796.88 | 3.27 | | Operating Cost | 6,317,359,596.00 | 6,096,899,513.54 | 3.62 | | Selling Expenses | 119,422,066.82 | 111,089,111.50 | 7.50 | | Administrative Expenses | 37,032,569.81 | 28,928,778.60 | 28.01 | | Financial Expenses | 17,278,859.33 | 18,745,422.61 | -7.82 | | R&D Expenses | 29,276,430.61 | 26,781,175.52 | 9.32 | | Net Cash Flow from Operating Activities | -1,174,294,556.38 | -617,103,636.02 | N/A | | Net Cash Flow from Investing Activities | 934,096,877.20 | 392,274,714.62 | 138.12 | | Net Cash Flow from Financing Activities | 215,182,750.01 | 275,808,966.62 | -21.98 | - Operating revenue and cost increases are primarily due to increased export volume and value; selling expenses increased due to higher promotion and credit insurance costs; administrative expenses increased due to higher management-related expenditures; financial expenses decreased due to lower exchange losses from currency fluctuations; R&D expenses increased due to greater R&D investment[57] - Net cash flow from operating activities significantly decreased primarily due to increased procurement payments; net cash flow from investing activities significantly increased primarily due to higher redemption of structural deposits; net cash flow from financing activities decreased primarily due to reduced interest-bearing debt[57] Assets and Liabilities Changes (Period-end vs Prior Year-end) | Item Name | Current Period-end Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Total Assets | 6,752,721,194.42 | 20.54 | | | Financial Assets Held for Trading | 71,396,958.67 | -92.86 | Decrease in balance of structural deposits purchased | | Notes Receivable | 13,169,977.63 | -90.74 | Partial commercial acceptance bills matured and settled | | Accounts Receivable | 3,226,309,279.34 | 119.17 | Adjustment of credit terms due to business development, and overseas subsidiary settlement business not applicable to hedge accounting | | Prepayments | 558,161,048.64 | 60.74 | Increase in advance payments for locking in procurement prices | | Inventories | 1,752,197,897.79 | 11.37 | | | Short-term Borrowings | 991,379,983.00 | 57.74 | Increase in procurement scale | | Financial Liabilities Held for Trading | 0.00 | -100.00 | Exchange rate fluctuations of forward foreign exchange contracts | | Accounts Payable | 1,311,562,461.91 | 103.58 | Increase in outstanding procurement payments not yet due | | Deferred Income | 962,192.87 | 559.45 | Increase in government grants related to income received | - Overseas assets at period-end were 1.408 billion yuan, accounting for 20.85% of total assets[60] - Restricted funds at period-end amounted to 98.9559 million yuan, primarily for bank acceptance bill deposits and temporary judicial freezes[61] V. Other Disclosures The company faces risks from intensified market competition, low raw material prices, changes in cooperation with manufacturers and distributors, and exchange rate fluctuations; to address these, the company is implementing a "quality improvement, efficiency enhancement, and return focus" action plan, emphasizing core business, stable dividends, R&D innovation, investor communication, and governance optimization - Market competition intensification risk: The pesticide industry is undergoing structural adjustments, facing fierce competition and challenges from well-funded competitors[65] - Raw material price low-level fluctuation risk: Raw material prices are expected to remain at the bottom in H2 2025, with potential for sharp fluctuations due to unforeseen events[66] - Cooperation relationship change risk: The company's operations rely on stable cooperation with pesticide manufacturers and distributors, and policy changes may impact operating performance[67] - Exchange rate fluctuation risk: Overseas sales are settled in USD, and fluctuations in the RMB to USD exchange rate will affect the company's profitability[67] - The company focuses on core business and sustainable development by promoting service center construction, launching new products, optimizing product structure and supply chain, and improving warehousing service quality[68] - The company maintains stable dividends and increases shareholder returns, having distributed cash dividends 8 times since listing, totaling 594 million yuan, with an average annual cash dividend payout ratio of 44.80% of net profit[69] - The company drives innovation and develops core competencies by increasing R&D investment in green pesticides, undertaking national and supply and marketing cooperative technology projects, and obtaining 19 invention patents[70] - The company emphasizes investor communication and conveys company value by improving information disclosure quality, holding earnings calls, and completing 65 institutional surveys[71] - The company adheres to standardized operations and optimizes corporate governance by formulating a "Public Opinion Management System," revising 27 institutional documents, and improving governance structure[72] - The company strengthens "key minority" responsibilities and enhances performance capabilities by organizing training for directors, supervisors, and senior management on regulatory policies[73] Section 4 Corporate Governance, Environment, and Society This section covers changes in the company's directors and senior management, profit distribution plans, employee incentive measures, environmental information, and contributions to poverty alleviation and rural revitalization I. Changes in Company Directors and Senior Management During the reporting period, there were no changes in the company's directors and senior management - During the reporting period, the company's directors and senior management remained unchanged[75] II. Profit Distribution or Capital Reserve Conversion Plan The company will not distribute profits or convert capital reserves into share capital for the semi-annual period - The company will not conduct semi-annual profit distribution or capital reserve conversion into share capital[75] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, there was no progress or change in the company's equity incentive plans, employee stock ownership plans, or other employee incentive measures - During the reporting period, there was no progress or changes in company equity incentive plans, employee stock ownership plans, or other employee incentive measures[76] IV. Environmental Information of Listed Companies and Their Main Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law Except for its controlling subsidiary Tianjin Lihua, which engages in pesticide formulation processing and packaging, the company and its other subsidiaries primarily conduct pesticide distribution and are not in heavily polluting industries; Tianjin Lihua's environmental monitoring reports show compliance with environmental requirements for wastewater, exhaust gas, and noise - The company and its other subsidiaries primarily engage in pesticide distribution and are not in heavily polluting industries; only the controlling subsidiary Tianjin Lihua engages in pesticide formulation processing and packaging services[76] - Tianjin Lihua's environmental monitoring results for Q1 and Q2 2025 show that wastewater, exhaust gas, and noise conditions all comply with environmental requirements[77] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company actively consolidates poverty alleviation achievements and contributes to rural revitalization by ensuring pesticide supply, strengthening offline and online technical services, and optimizing yield-increasing solutions, including signing supply agreements, being listed as a key agricultural material supplier, conducting popular science promotion, and achieving significant yield increases with its "Zhongnong Dingliangzhu" solution - The company ensures pesticide supply by signing spring plowing supply cooperation agreements with 166 pesticide manufacturers, being selected as a "2025 National Supply and Marketing Cooperative Key Agricultural Material Supplier," and carrying out "Escort Spring Plowing 315" popular science promotion[78] - The company strengthens offline and online technical services by conducting over 3,000 trials and demonstrations and over 5,000 farmer training sessions; in H1, it held over 90 live broadcasts, with over 4 million viewers, and released over 600 short videos[79] - The promoted "Zhongnong Dingliangzhu" yield increase solution showed an average wheat yield increase of 141.1 jin per mu (yield increase rate of 12.2%) and an average rice yield increase of 237.3 jin per mu (yield increase rate of 19.8%)[79] Section 5 Significant Matters This section details the fulfillment of commitments, non-operating fund occupation by controlling shareholders, illegal guarantees, significant litigation, integrity status, major related-party transactions, and significant contracts I. Fulfillment of Commitments The company's actual controller, shareholders, and related parties (Supply and Marketing Group, Sino-Agri Group, Guangdong Yilong) have strictly fulfilled their commitments to resolve horizontal competition, not engaging in competitive businesses since June 2015 - Supply and Marketing Group, Sino-Agri Group, and Guangdong Yilong have strictly fulfilled their commitments to resolve horizontal competition, not engaging in competitive businesses since June 2015[81] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties - During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties[82] III. Illegal Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[83] VII. Significant Litigation and Arbitration Matters The company is involved in significant litigation and arbitration matters, including administrative penalty disputes and cargo leakage disputes; subsidiary Guangzhou Lihua was fined 3.8614 million yuan for unlicensed pesticide sales, with a re-trial application rejected and a provision for liabilities made; subsidiary Shanghai Aige is involved in a cargo leakage arbitration, facing a claim of 35.9275 million yuan, with 24.2894 million yuan in bank deposits frozen, but the company believes it has a high probability of winning; subsidiary Zhongnong Fengmao is involved in a sales contract dispute, with 750,000 yuan in bank accounts frozen, and the company believes it has a high probability of winning - Administrative penalty dispute: Subsidiary Guangzhou Lihua was fined a total of 3,861,378.00 yuan by Guangzhou Baiyun District Agriculture and Rural Bureau for unlicensed sales of restricted pesticides; the company has fully accrued estimated liabilities, and Guangdong High People's Court has rejected the re-trial application[83][269][375][504][505][506] - Cargo leakage dispute: Subsidiary Shanghai Aige was subject to arbitration by Brazilian Agricultural Cooperation Co., Ltd., demanding compensation of 35.9275 million yuan, with Shanghai Aige's bank deposits of 24.2894 million yuan frozen; the company believes it has a high probability of winning[507][508][509][510][511] - Sales contract dispute: Subsidiary Zhongnong Fengmao was sued by Laiyang Jiabao Auto Parts Co., Ltd., involving 706,166.16 yuan, with bank accounts frozen for 750,000 yuan; the company believes it has a high probability of winning[512][513][514] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts, maintaining good integrity - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts[84] X. Major Related-Party Transactions The company's estimated daily related-party transactions for 2025 are not to exceed 741 million yuan, with 136 million yuan incurred as of June 30; the company conducts financial business with Supply and Marketing Group Finance Co., Ltd., including deposits, credit facilities, and cross-border fund centralization services, earning 22,500 yuan in financial service fees - The company expects daily related-party transactions with associated parties, including goods sales, procurement, and warehousing and transportation services, to not exceed 740.8 million yuan in 2025[86] - As of June 30, 2025, the company's various daily related-party transactions amounted to 136.05 million yuan[86] Financial Business with Supply and Marketing Group Finance Co., Ltd | Related Party | Relationship | Business Type | Beginning Balance (Yuan) | Ending Balance (Yuan) | Total Deposits This Period (Yuan) | Total Withdrawals This Period (Yuan) | Total Credit Line (Yuan) | Actual Amount Incurred (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 供销集团财务有限公司 (Supply and Marketing Group Finance Co., Ltd.) | 受同一最终控制方控制 (Under same ultimate control) | 存款业务 (Deposit Business) | 99,283,277.74 | 98,382,287.92 | 297,906,210.18 | 298,807,200.00 | - | - | | 供销集团财务有限公司 (Supply and Marketing Group Finance Co., Ltd.) | 受同一最终控制方控制 (Under same ultimate control) | 授信业务 (Credit Business) | - | - | - | - | 100,000,000.00 | 0.00 | - The company processed 100 million yuan in cross-border cash pool business through Supply and Marketing Group Finance Co., Ltd., collecting 22,450.00 yuan in financial service fees[93] XI. Significant Contracts and Their Performance The company has several related-party lease contracts, primarily for office buildings and warehouses, with a high estimated annual rent; additionally, the company provided a 250 million yuan guarantee for its subsidiary SINO AGRI BIOSCIENCES SINGAPORE PTE.LTD., valid until June 2026 Major Related-Party Lease Information (Estimated Annual Rent) | Lessor Name | Leased Asset | Amount Involved in Leased Asset (Yuan) | Related Party Relationship | | :--- | :--- | :--- | :--- | | 中国农业生产资料集团有限公司 (China Agricultural Materials Group Co., Ltd.) | 办公楼 (Office Building) | 4,701,640.16 | 控股股东 (Controlling Shareholder) | | 中国农业生产资料集团有限公司 (China Agricultural Materials Group Co., Ltd.) | 办公楼 (Office Building) | 1,835,128.20 | 控股股东 (Controlling Shareholder) | | 天津中农化肥储运贸易有限公司 (Tianjin Zhongnong Chemical Fertilizer Storage and Transportation Trade Co., Ltd.) | 仓库 (Warehouse) | 1,120,000.00 | 集团兄弟公司 (Group Sister Company) | | 天津中农化肥储运贸易有限公司 (Tianjin Zhongnong Chemical Fertilizer Storage and Transportation Trade Co., Ltd.) | 仓库 (Warehouse) | 1,730,000.00 | 集团兄弟公司 (Group Sister Company) | | 天津中农化肥储运贸易有限公司 (Tianjin Zhongnong Chemical Fertilizer Storage and Transportation Trade Co., Ltd.) | 仓库 (Warehouse) | 4,195,218.00 | 集团兄弟公司 (Group Sister Company) | | 中国供销集团南通国际棉花有限公司 (China Supply and Marketing Group Nantong International Cotton Co., Ltd.) | 仓库 (Warehouse) | 1,060,000.00 | 集团兄弟公司 (Group Sister Company) | Company Guarantees for Subsidiaries | Guarantor | Guaranteed Party | Guarantee Amount (Ten Thousand Yuan) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | The Company | SINO AGRI BIOSCIENCES SINGAPORE PTE.LTD. | 15,000.00 | June 20, 2025 | June 20, 2026 | No | | The Company | SINO AGRI BIOSCIENCES SINGAPORE PTE.LTD. | 10,000.00 | June 26, 2025 | June 25, 2026 | No | | Total Guarantee Amount | 25,000.00 | | | | | | Total Guarantee Amount as % of Company's Net Assets | 16.22% | | | | | - The company plans to provide guarantees for its controlling subsidiary Shanghai Aige and its wholly-owned subsidiary Singapore Company, with amounts not exceeding 200 million yuan and 300 million yuan (converted to RMB) respectively[490] Section 6 Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the holdings of directors and senior management, confirming no changes in share capital or controlling shareholder during the reporting period I. Share Capital Changes During the reporting period, the company's total share capital and share structure remained unchanged, with a total of 268,800,134 shares at period-end - During the reporting period, the company's total share capital and share structure remained unchanged[102] Share Capital Changes | Item | Beginning Balance (Shares) | Changes This Period (+, -) | Ending Balance (Shares) | | :--- | :--- | :--- | :--- | | Total Shares | 268,800,134.00 | 0 | 268,800,134.00 | II. Shareholder Information As of the end of the reporting period, the company had 15,403 common shareholders; China Agricultural Materials Group Co., Ltd. was the largest shareholder with 50.25% stake, and Guangdong Yilong Investment Co., Ltd. held 9.45%; all top ten shareholders held unrestricted tradable shares - As of the end of the reporting period, the total number of common shareholders was 15,403[103] Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-end (Shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | 中国农业生产资料集团有限公司 (China Agricultural Materials Group Co., Ltd.) | 135,072,000 | 50.25 | 境内非国有法人 (Domestic Non-State-Owned Legal Person) | | 广东益隆投资有限公司 (Guangdong Yilong Investment Co., Ltd.) | 25,401,600 | 9.45 | 境内非国有法人 (Domestic Non-State-Owned Legal Person) | | 北京中农利成管理咨询有限公司 (Beijing Zhongnong Licheng Management Consulting Co., Ltd.) | 3,225,600 | 1.20 | 境内非国有法人 (Domestic Non-State-Owned Legal Person) | | 刘锋 (Liu Feng) | 2,887,800 | 1.07 | 境内自然人 (Domestic Natural Person) | | 浙江浙农金泰生物科技有限公司 (Zhejiang Zhenong Jintai Biotechnology Co., Ltd.) | 2,736,000 | 1.02 | 境内非国有法人 (Domestic Non-State-Owned Legal Person) | | 中国对外经济贸易信托有限公司－外贸信托－仁桥泽源股票私募证券投资基金 (China Foreign Economy and Trade Trust Co., Ltd. - Foreign Trade Trust - Renqiao Zeyuan Stock Private Securities Investment Fund) | 2,035,080 | 0.76 | 境内非国有法人 (Domestic Non-State-Owned Legal Person) | | 何海林 (He Hailin) | 1,955,071 | 0.73 | 境内自然人 (Domestic Natural Person) | | 刘荣珍 (Liu Rongzhen) | 1,210,960 | 0.45 | 境内自然人 (Domestic Natural Person) | | 韦红 (Wei Hong) | 1,120,340 | 0.42 | 境内自然人 (Domestic Natural Person) | | 张捷 (Zhang Jie) | 1,036,760 | 0.39 | 境内自然人 (Domestic Natural Person) | - Among the top ten shareholders, China Agricultural Materials Group Co., Ltd. is the controlling shareholder, holding 50.25% of the shares[105] III. Directors and Senior Management Information During the reporting period, there were no changes in the shareholdings of the company's directors and senior management, nor were they granted any equity incentives - During the reporting period, there were no changes in the shareholdings of the company's current and former directors and senior management[107] - During the reporting period, directors and senior management were not granted equity incentives[107] IV. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the reporting period, there were no changes in the company's controlling shareholder or actual controller[107] Section 7 Bond-Related Information This section confirms that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds during the reporting period I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[109] II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[109] Section 8 Financial Report This section presents the company's unaudited semi-annual financial statements for 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial items I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[16] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively presenting the company's financial position and operating results Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 6.753 billion yuan, with a high proportion of current assets; total liabilities were 5.045 billion yuan, primarily short-term borrowings and accounts payable; equity attributable to parent company owners was 1.541 billion yuan - As of June 30, 2025, consolidated total assets were 6,752,721,194.42 yuan, with total current assets of 6,498,249,851.57 yuan[112] - Total liabilities were 5,045,172,150.60 yuan, including short-term borrowings of 991,379,983.00 yuan, notes payable of 1,509,172,894.47 yuan, and accounts payable of 1,311,562,461.91 yuan[112][113] - Total equity attributable to parent company owners was 1,540,916,331.57 yuan[113] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 5.432 billion yuan, with a high proportion of current assets; total liabilities were 4.042 billion yuan, primarily short-term borrowings, notes payable, and contract liabilities; total owners' equity was 1.390 billion yuan - As of June 30, 2025, parent company total assets were 5,431,794,222.41 yuan, with total current assets of 5,029,334,491.92 yuan[114][115] - Total liabilities were 4,041,955,344.52 yuan, including short-term borrowings of 849,486,635.00 yuan, notes payable of 1,446,023,119.93 yuan, and contract liabilities of 766,126,424.63 yuan[115][116] - Total owners' equity was 1,389,838,877.89 yuan[116] Consolidated Income Statement In January-June 2025, the company's consolidated total operating revenue was 6.745 billion yuan, a 3.27% year-on-year increase; net profit was 159 million yuan, a 7.73% year-on-year decrease; net profit attributable to parent company shareholders was 142 million yuan, a 10.06% year-on-year decrease - In January-June 2025, consolidated total operating revenue was 6,745,417,178.40 yuan, a year-on-year increase of 3.27%[118] - Consolidated net profit was 159,282,374.69 yuan, compared to 172,574,061.09 yuan in the prior year period, a year-on-year decrease of 7.73%[119] - Net profit attributable to parent company shareholders was 142,180,574.70 yuan, compared to 158,090,134.79 yuan in the prior year period, a year-on-year decrease of 10.06%[119] - Basic earnings per share were 0.5289 yuan/share, compared to 0.5881 yuan/share in the prior year period, a year-on-year decrease of 10.07%[119] Parent Company Income Statement In January-June 2025, the parent company's operating revenue was 3.132 billion yuan, a 1.54% year-on-year decrease; net profit was 126 million yuan, a 6.50% year-on-year decrease - In January-June 2025, parent company operating revenue was 3,132,174,342.96 yuan, compared to 3,181,286,141.62 yuan in the prior year period, a year-on-year decrease of 1.54%[121] - Parent company net profit was 125,880,519.69 yuan, compared to 134,631,237.34 yuan in the prior year period, a year-on-year decrease of 6.50%[121] Consolidated Cash Flow Statement In January-June 2025, net cash flow from operating activities was -1.174 billion yuan, indicating a significant increase in cash outflow; net cash flow from investing activities was 934 million yuan, mainly due to increased cash received from investment redemptions; net cash flow from financing activities was 215 million yuan - Net cash flow from operating activities was -1,174,294,556.38 yuan, compared to -617,103,636.02 yuan in the prior year period, indicating a significant increase in cash outflow[123] - Net cash flow from investing activities was 934,096,877.20 yuan, compared to 392,274,714.62 yuan in the prior year period, primarily due to increased cash received from investment redemptions[124] - Net cash flow from financing activities was 215,182,750.01 yuan, compared to 275,808,966.62 yuan in the prior year period, a year-on-year decrease of 21.98%[124] Parent Company Cash Flow Statement In January-June 2025, the parent company's net cash flow from operating activities was -1.149 billion yuan, net cash flow from investing activities was 958 million yuan, and net cash flow from financing activities was 189 million yuan - Net cash flow from operating activities was -1,149,086,502.72 yuan, compared to -482,179,810.04 yuan in the prior year period[126] - Net cash flow from investing activities was 958,104,902.75 yuan, compared to 412,089,968.99 yuan in the prior year period[127] - Net cash flow from financing activities was 189,011,105.51 yuan, compared to 215,419,643.86 yuan in the prior year period[127] Consolidated Statement of Changes in Owners' Equity As of June 30, 2025, the company's consolidated total owners' equity was 1.708 billion yuan, an increase of 24.8616 million yuan from the beginning of the period, with equity attributable to parent company owners increasing by 20.4709 million yuan and minority interests by 4.3907 million yuan - As of June 30, 2025, consolidated total owners' equity was 1,707,549,043.82 yuan, an increase of 24,861,569.85 yuan from the beginning of the period[131] - Total equity attributable to parent company owners increased by 20,470,914.96 yuan, and minority interests increased by 4,390,654.89 yuan[131] Parent Company Statement of Changes in Owners' Equity As of June 30, 2025, the parent company's total owners' equity was 1.390 billion yuan, an increase of 4.9205 million yuan from the beginning of the period, with total comprehensive income of 126 million yuan and profit distribution decreasing by 121 million yuan - As of June 30, 2025, parent company total owners' equity was 1,389,838,877.89 yuan, an increase of 4,920,459.54 yuan from the beginning of the period[135] - Total comprehensive income for the period was 125,880,519.84 yuan, with profit distribution decreasing by 120,960,060.30 yuan[135][136] III. Company Basic Information Sino-Agri Leading Biosciences Co., Ltd. was established on April 8, 2009, with its registered capital increasing to 269 million yuan; the company's business scope includes agricultural science, technology services, and trade, with China National Supply and Marketing Cooperatives as the ultimate controlling party; the financial statements were approved by the board on August 26, 2025 - The company was established on April 8, 2009, with registered capital increasing from 80 million yuan through multiple increments, changing to 268,800,134.00 yuan as of May 18, 2023[139][140][141][142][143] - The company's business scope is extensive, including agricultural science research, technical services, fertilizer sales, chemical product sales, agricultural machinery services, and import/export of goods, also covering licensed items like hazardous chemical operations and pesticide wholesale[144] - The company's parent company is China Agricultural Materials Group Co., Ltd., and the ultimate controlling party is China National Supply and Marketing Cooperatives[144] - The company's financial statements were approved for issuance by the board of directors on August 26, 2025[145] IV. Basis of Financial Statement Preparation These financial statements are prepared on a going concern basis, adhering to enterprise accounting standards, and a comprehensive assessment of the company's ability to continue as a going concern for the next 12 months has been conducted, with sufficient resources reasonably expected - These financial statements are prepared on a going concern basis, in accordance with relevant provisions of enterprise accounting standards, based on actual transactions[146] - The company has fully assessed its ability to continue as a going concern for the next 12 months from the balance sheet date, reasonably expecting to have sufficient resources to maintain continuous operations[148] V. Significant Accounting Policies and Estimates The company has established specific accounting policies and estimates for items like bad debt provisions for receivables, inventory impairment, depreciation of fixed assets, amortization of right-of-use assets, intangible assets, and revenue recognition, adhering to the latest enterprise accounting standards; the fiscal year is the calendar year, with RMB as the functional currency for domestic entities and USD for overseas sub-subsidiaries; this section details policies on business combinations, consolidated financial statements, financial instruments, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, employee benefits, provisions, revenue, government grants, deferred income tax, leases, and hedge accounting - The company has formulated specific accounting policies and estimates for transactions such as bad debt provisions for receivables, inventory impairment provisions, depreciation of fixed assets, amortization of right-of-use assets, amortization of intangible assets, and revenue recognition, based on industry operating characteristics[149] - These financial statements comply with the latest enterprise accounting standards, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance, truly and completely reflecting the company's financial position, operating results, and cash flows[150] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with 12 months as the normal operating cycle; the company and its domestic subsidiaries use RMB as the functional currency, while overseas sub-subsidiaries use USD[151][152][153] - The company classifies financial assets based on the business model for managing financial assets and their cash flow characteristics into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[170] - For accounts receivable and notes receivable that do not contain a significant financing component, the company applies the simplified model for expected credit losses, always measuring loss provisions at an amount equal to the expected credit losses over the entire lifetime[184][188] - The company's revenue primarily includes sales revenue from pesticide raw materials and formulations, recognized when the customer obtains control of the related goods; domestic sales are recognized upon receipt of customer signed documents, and export sales are recognized upon obtaining the bill of lading after customs declaration and shipment[233][234] VI. Taxes The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, property tax, and corporate income tax; the company and its subsidiaries' pesticide formulation and agricultural machinery wholesale/retail businesses are exempt from VAT; some subsidiaries, as small low-profit enterprises, enjoy a corporate income tax reduction, paying at a 20% rate on 25% of taxable income Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods or provision of taxable services | Exempt, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual paid turnover tax amount | 5%, 7% | | Education Surcharge | Actual paid turnover tax amount | 2%, 3% | | Property Tax | Original value, rent | 1.2%, 12% | | Corporate Income Tax | Taxable income | 17%, 20%, 22%, 25%, 35% | - The company and its subsidiaries' pesticide formulation and agricultural machinery wholesale and retail businesses are exempt from Value-Added Tax[251] - Some subsidiaries are eligible for corporate income tax preferential policies for small low-profit enterprises, calculating taxable income at 25% and paying corporate income tax at a 20% rate, extended until December 31, 2027[252] VII. Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning balances, and changes for each item in the company's consolidated financial statements, including cash, financial assets held for trading, notes receivable, accounts receivable, inventories, short-term borrowings, accounts payable, operating revenue and cost, various expenses, investment income, credit impairment losses, and asset impairment losses; notably, accounts receivable and short-term borrowings significantly increased, while financial assets held for trading and notes receivable substantially decreased Consolidated Financial Statement Key Items Period-end Balances | Item | Period-end Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash and Bank Balances | 454,724,884.47 | 405,312,076.94 | | Financial Assets Held for Trading | 71,396,958.67 | 1,000,000,000.00 | | Notes Receivable | 13,169,977.63 | 142,210,395.93 | | Accounts Receivable | 3,226,309,279.34 | 1,472,052,100.51 | | Inventories | 1,752,197,897.79 | 1,573,274,085.46 | | Short-term Borrowings | 991,379,983.00 | 628,482,348.09 | | Accounts Payable | 1,311,562,461.91 | 644,241,980.56 | | Operating Revenue | 6,745,417,178.40 | 6,531,899,796.88 | | Operating Cost | 6,317,359,596.00 | 6,096,899,513.54 | | Selling Expenses | 119,422,066.82 | 111,089,111.50 | | Administrative Expenses | 37,032,569.81 | 28,928,778.60 | | R&D Expenses | 29,276,430.61 | 26,781,175.52 | | Financial Expenses | 17,278,859.33 | 18,745,422.61 | | Investment Income | 5,848,555.45 | 4,877,103.04 | | Credit Impairment Losses | -11,516,617.59 | -14,324,414.66 | | Inventory Impairment Losses and Contract Performance Cost Impairment Losses | -17,640,979.94 | -12,974,097.23 | - At period-end, restricted funds for use, such as pledged, mortgaged, or frozen funds, amounted to 98,955,897.03 yuan, primarily for bank acceptance bill deposits and temporary judicial freezes[255] - Financial assets held for trading significantly decreased by 92.86%, mainly due to a lower balance of structural deposits purchased at the end of the current period[59][257] - Accounts receivable significantly increased by 119.17%, mainly due to adjustments in credit terms for business development and the inapplicability of hedge accounting to settlement business through overseas subsidiaries[59][62] - Short-term borrowings increased by 57.74%, mainly due to an increase in procurement scale during the current period[59][62] - Accounts payable increased by 103.58%, mainly due to an increase in outstanding procurement payments not yet due during the current period[59][62] VIII. R&D Expenses In H1 2025, the company's R&D expenses were 29.2764 million yuan, a 9.32% year-on-year increase, primarily comprising employee compensation, travel expenses, and accumulated depreciation and amortization; all R&D expenditures were expensed, with no capitalized R&D expenditures R&D Expenses by Nature of Expense | Item | Amount This Period (Yuan) | Amount Last Period (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 21,998,690.22 | 18,890,229.40 | | Travel Expenses | 5,513,192.65 | 5,484,280.91 | | Accumulated Depreciation and Amortization | 928,031.70 | 1,102,739.16 | | Technical Experiment Fees | 680,406.79 | 912,532.50 | | Office Expenses | 76,060.38 | 203,715.00 | | Other | 80,048.87 | 187,678.55 | | Total | 29,276,430.61 | 26,781,175.52 | | Of which: Expensed R&D Expenditures | 29,276,430.61 | 26,781,175.52 | | Capitalized R&D Expenditures | 0 | 0 | - All R&D expenditures for the current period were expensed, with no capitalized R&D expenditures[399] IX. Changes in Consolidation Scope During the reporting period, there were no changes in the company's consolidation scope, including non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries - During the reporting period, there were no changes in the company's consolidation scope, including non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries[481] X. Interests in Other Entities The company holds interests in multiple controlling subsidiaries, primarily engaged in pesticide sales and technical consulting services across various domestic provinces and overseas countries; Aige (Shanghai) Biotechnology Co., Ltd. is a significant non-wholly-owned subsidiary with a 30% minority interest, contributing 15.2349 million yuan to minority shareholders' profit for the period; the company also holds interests in associates like Hebei Jilong Biotechnology Co., Ltd. and Sino-Agri Group Seed Industry Holding Co., Ltd Major Subsidiaries | Subsidiary Name | Registered Place | Business Nature | Direct Shareholding (%) | Indirect Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | 黑龙江中农立华北大荒生物科技有限公司 (Heilongjiang Sino-Agri Leading Beidahuang Biotechnology Co., Ltd.) | 黑龙江 (Heilongjiang) | 农药销售及技术咨询服务 (Pesticide sales and technical consulting services) | 55.00 | | | 中农立华农业科技（上海）有限公司 (Sino-Agri Leading Agricultural Technology (Shanghai) Co., Ltd.) | 上海 (Shanghai) | 农药销售及技术咨询服务 (Pesticide sales and technical consulting services) | 100.00 | | | 爱格（上海）生物科技有限公司 (Aige (Shanghai) Biotechnology Co., Ltd.) | 上海 (Shanghai) | 农药销售及技术咨询服务 (Pesticide sales and technical consulting services) | 70.00 | | | SINO AGRI BIOSCIENCES SINGAPORE PTE.LTD. | 新加坡 (Singapore) | 农药销售及技术咨询服务 (Pesticide sales and technical consulting services) | | 70.00 | Financial Information of Significant Non-Wholly-Owned Subsidiary (Aige (Shanghai) Biotechnology Co., Ltd.) | Indicator | Amount (Yuan) | | :--- | :--- | | Minority Shareholding (%) | 30.00 | | Profit/Loss Attributable to Minority Shareholders This Period | 15,234,898.47 | | Dividends Declared to Minority Shareholders This Period | 9,000,000.00 | | Minority Interest Balance at Period-end | 98,196,162.14 | | Operating Revenue | 1,972,072,993.23 | | Net Profit | 51,105,814.94 | | Total Comprehensive Income | 50,035,070.25 | | Cash Flow from Operating Activities | -26,429,249.16 | - The company holds interests in associates such as Hebei Jilong Biotechnology Co., Ltd. and Sino-Agri Group Seed Industry Holding Co., Ltd., with a total investment gain of 876,700 yuan recognized this period[317][454] XI. Government Grants In H1 2025, the company received 1.0186 million yuan in income-related government grants, with 4.5450 million yuan recognized in current profit or loss Government Grant Liability Item Changes | Financial Statement Item | Beginning Balance (Yuan) | New Grants This Period (Yuan) | Amount Recognized in Non-Operating Income This Period (Yuan) | Amount Transferred to Other Income This Period (Yuan) | Ending Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 145,907.77 | 1,018,600.00 | 0 | 202,314.90 | 962,192.87 | 与收益相关 (Income Related) | - Government grants recognized in current profit or loss for this period amounted to 4,544,961.32 yuan[457] XII. Risks Related to Financial Instruments The company's main financial instruments include cash, receivables, and borrowings, exposing it to credit risk, liquidity risk, and market risk (interest rate risk, exchange rate risk); these risks are managed through credit assessment, accounts receivable monitoring, cash flow planning, and the use of forward foreign exchange contracts and hedge accounting - The company's main financial instruments include cash, notes receivable financing, other receivables, bank borrowings, notes payable, accounts payable, other payables, lease liabilities, non-current liabilities due within one year, and other non-current liabilities, primarily for financing its operations[458] - The main risks faced by the company are credit risk, liquidity risk, and market risk (interest rate risk, exchange rate risk)[460] - The company manages credit risk by conducting credit risk assessments for new customers, setting credit limits, quarterly monitoring customer credit ratings, and monthly reviewing accounts receivable aging[461] - The company manages liquidity risk by preparing monthly cash plans, monitoring cash balances, and rolling forecasts of future 12-month cash flows[462] - The company faces low interest rate risk; exchange rate risk is primarily related to overseas operating activities and net investments in overseas subsidiaries, mitigated through forward foreign exchange contracts[464][465][466] - The company engages in forward foreign e