永安药业(002365) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management ensure report accuracy; the chairman is under investigation; the company faces various risks and plans no dividend distribution - Chairman Chen Yong is under investigation by the Hefeng County Supervisory Commission, preventing him from performing his duties[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] - The company faces risks including environmental safety, operational, exchange rate, and management risks[5] Table of Contents This section lists the nine main chapters of the semi-annual report with their starting page numbers and provides a directory of reference documents - The report comprises nine main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data[8] - Reference documents include signed financial statements, original drafts of public disclosure documents, and the semi-annual report summary and full text[10] Definitions This section provides definitions for common terms used in the report, including company and subsidiary names, laws, regulations, and currency units, to ensure clear understanding of the content - In the report, "Company," "the Company," and "Yongan Pharmaceutical" all refer to Qianjiang Yongan Pharmaceutical Co., Ltd[12] - The reporting period refers to January 1, 2025, to June 30, 2025[12] - Several subsidiary names and their full names are listed, such as Yongan Kangjian, Yaan Investment, Lingan Technology, etc[12] Company Profile and Key Financial Indicators Company Profile This section introduces the company's basic information, including stock abbreviation, code, listing exchange, Chinese and foreign names, and legal representative - The company's stock abbreviation is "Yongan Pharmaceutical," stock code "002365," listed on the Shenzhen Stock Exchange[14] - The company's legal representative is Chen Yong[14] Contact Person and Contact Information This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's board secretary and securities affairs representative - The Board Secretary is Xiong Shengjie, and the Securities Affairs Representative is Zhao Xiuli[15] - The company's contact address is No. 2 Guangze Avenue, Economic Development Zone, Qianjiang City, Hubei Province[15] Other Information This section states that the company's registered address, office address, website, email, and information disclosure and placement locations remained unchanged during the reporting period, with specific details available in the 2024 annual report - The company's contact information, information disclosure, and placement locations remained unchanged during the reporting period[16][17] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue and net profit significantly decreased year-on-year, but net cash flow from operating activities grew substantially, while total assets and net assets attributable to shareholders slightly declined 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 367,377,098.49 | 425,816,581.92 | -13.72% | | Net Profit Attributable to Shareholders of Listed Company | 12,495,723.72 | 52,485,217.27 | -76.19% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 2,285,336.05 | 35,976,817.65 | -93.65% | | Net Cash Flow from Operating Activities | 51,181,550.62 | 31,480,712.95 | 62.58% | | Basic Earnings Per Share (CNY/share) | 0.0432 | 0.1781 | -75.74% | | Diluted Earnings Per Share (CNY/share) | 0.0432 | 0.1781 | -75.74% | | Weighted Average Return on Net Assets | 0.63% | 2.61% | -1.98% | | Period-End Indicators | Current Period-End (CNY) | Prior Year-End (CNY) | Period-End vs. Prior Year-End Change | | Total Assets | 2,266,586,574.48 | 2,308,602,905.85 | -1.82% | | Net Assets Attributable to Shareholders of Listed Company | 1,962,244,823.27 | 1,993,780,889.08 | -1.58% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company's financial reports for the reporting period show no differences in net profit and net assets disclosed under International Accounting Standards or overseas accounting standards compared to Chinese Accounting Standards - The company's financial report shows no differences in net profit and net assets under domestic and overseas accounting standards[20][21] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to CNY 10,210,387.67, primarily from fair value changes of financial assets, government grants, and disposal of non-current assets 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 32,631.44 | Disposal of equipment and other assets | | Government Grants Included in Current Profit/Loss | 1,574,555.06 | Deferred income from asset-related government grants recognized in this period, and revenue-related government grants received | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Gains/Losses from Disposal of Financial Assets and Liabilities | 10,732,932.60 | Gains/losses from fair value changes and investment income from disposal of securities, wealth management products, and other financial assets | | Reversal of Impairment Provisions for Accounts Receivable Subject to Separate Impairment Testing | 55,958.54 | Reversal of impairment provisions for other receivables collected individually | | Other Non-Operating Income and Expenses Apart from the Above | -215,426.62 | | | Other Gains and Losses Meeting the Definition of Non-Recurring Gains and Losses | 101,782.23 | Primarily withholding tax handling fees for individual income tax | | Less: Income Tax Impact | 1,906,116.79 | | | Impact on Minority Interests (After Tax) | 165,928.79 | | | Total | 10,210,387.67 | | Management Discussion and Analysis Main Businesses Engaged by the Company During the Reporting Period The company primarily operates in three business segments: taurine, health food, and special dietary food (creatine), with taurine as its core business, holding approximately 50% global market share; health food develops through CDMO and its "Yijianeng" brand; and creatine is managed by subsidiary Lingan Technology - The company's main businesses include the R&D, production, and sales of taurine products; R&D, production, and sales of health food; and R&D, production, and sales of special dietary food (creatine)[26] - The company is the world's largest taurine production base, with a market share of approximately 50% and an annual production capacity of 78,000 tons[28] - The health food business adopts a dual-track development model: "Contract Development and Manufacturing Organization" (CDMO) and "Independent Brand Operation" (Yijianeng)[31][32] - Subsidiary Lingan Technology focuses on the production, R&D, and sales of creatine monohydrate, and has initiated technical renovation projects[33][35] (1) Taurine Business Taurine, a crucial non-protein amino acid, is widely used in pharmaceuticals, food, beverages, pet food, and feed; the company is the world's largest producer with about 50% market share, primarily exporting to global clients, and has expanded its production capacity to 78,000 tons/year - Taurine has wide applications in pharmaceuticals, food additives, beverages and nutritional products, pet food, and feed industries[26][27] - The company is the world's largest taurine production base, with a market share of approximately 50%[28] - The first phase of the 40,000 tons/year taurine food additive project (20,000 tons/year) has been completed and put into operation, increasing the company's taurine production capacity to 78,000 tons/year[28] - Procurement models are flexible, allowing for self-supply or external procurement of ethylene oxide; production follows a "make-to-order" model; sales combine agents and end-customers[28][30] (2) Health Food Business The global nutrition and health food industry is growing steadily, driven by increasing demand for functional foods and precise nutrition; subsidiary Yongan Kangjian strategically develops health food and medical nutrition through CDMO and its "Yijianeng" brand, supported by a modern production system - The global nutrition and health food industry maintains steady growth driven by health consumption upgrades and deepening policy regulations[30] - Yongan Kangjian has established a modern production system covering multiple dosage forms, including tablets, powders/granules, liquids, and hard capsules[31] - Yongan Kangjian adopts a dual-track development model: Contract Research and Manufacturing (CDMO) and its independent brand "Yijianeng"[31][32] (3) Special Dietary Food (Creatine) Business Creatine monohydrate, a natural nutrient and supplement additive, is experiencing significant demand growth in the sports nutrition market, offering considerable potential; subsidiary Lingan Technology focuses on its R&D, production, and sales, optimizing procurement, production, and market expansion - Creatine monohydrate plays a significant role in promoting muscle growth, delaying fatigue, and accelerating physical recovery, leading to significant demand growth in the sports nutrition supplement market[32] - Subsidiary Lingan Technology specializes in the production, R&D, and sales of creatine monohydrate, with centralized procurement, production based on customer orders, and active market expansion[33][34] (4) Main Performance Drivers In the first half of 2025, the company's operating revenue and net profit decreased year-on-year due to international trade protectionism and global economic downturn; taurine business faced price pressure from market competition and high inventory, but the company maintained market share through strategic adjustments and cost reduction; health food and creatine businesses achieved growth or transformation through new product development, channel expansion, and technical renovation projects - In the first half of 2025, the company's operating revenue decreased by 13.72% year-on-year, and net profit attributable to shareholders of the listed company decreased by 76.19% year-on-year, primarily due to international trade protectionism and global economic downturn[34] - Taurine business revenue was CNY 236 million, a year-on-year decrease, but market share remained largely stable, with the company responding to market pressure through marketing strategy adjustments and cost reduction initiatives[34] - Yongan Kangjian's health food business achieved a significant year-on-year increase in overall operating revenue, with the contract manufacturing service segment reaching CNY 51.8411 million and the independent brand business reaching CNY 5.5635 million[35] - Lingan Technology completed its creatine monohydrate business transformation, actively expanded its market, and initiated technical renovation projects[35] Analysis of Core Competitiveness The company's core competitiveness lies in its scale advantage, technological R&D advantage, and brand advantage, with taurine capacity expanding to nearly 100,000 tons/year, continuous R&D investment ensuring product leadership, independent R&D capabilities in subsidiaries, and high brand recognition for "Chuniu" taurine - The company is the world's largest taurine production base, with a market share of approximately 50%, and its annual production capacity will reach nearly 100,000 tons after expansion, further highlighting its scale advantage[36] - The company continuously invests in R&D resources, overcoming key technical bottlenecks, and obtained 1 Chinese invention patent: "A Method for Efficiently Circulating and Preparing Columnar Taurine"[36][37] - Subsidiaries Yongan Kangjian and Lingan Technology have independent R&D teams, continuously introducing new products, with Yongan Kangjian recognized as a "Hubei Province Specialized, Refined, Unique, and New Small and Medium-sized Enterprise"[37] - The company's "Chuniu" brand trademark enjoys high recognition and reputation both domestically and internationally, enhancing market competitiveness[38] Analysis of Main Business During the reporting period, the company's operating revenue decreased by 13.72% year-on-year, primarily due to declining taurine sales volume and price; pharmaceutical manufacturing (taurine) accounted for the largest share of revenue but decreased by 31.04% year-on-year, with a 13.39% decrease in gross profit margin; health food business revenue increased by 201.05% year-on-year, with a 2.10% increase in gross profit margin; overseas revenue accounted for 51.93% but decreased by 28.40% year-on-year, while domestic revenue increased by 10.81% Main Financial Data Year-on-Year Changes (2025 Semi-Annual vs 2024 Semi-Annual) | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 367,377,098.49 | 425,816,581.92 | -13.72% | | | Operating Cost | 309,288,489.16 | 313,331,804.97 | -1.29% | | | Selling Expenses | 14,587,095.68 | 7,878,264.03 | 85.16% | Primarily due to increased promotion and advertising expenses for Kangjian's own brand Yijianeng products | | Administrative Expenses | 29,255,363.87 | 47,990,569.62 | -39.04% | Primarily due to reduced shutdown losses, US patent attorney fees, and year-end bonus accruals in this period | | Financial Expenses | -1,697,812.82 | -7,625,062.93 | -77.73% | Primarily due to exchange rate fluctuations, resulting in reduced exchange gains in this period | | Income Tax Expense | 924,809.50 | 9,674,869.63 | -90.44% | Primarily due to reduced total profit in this period | | R&D Investment | 17,358,750.95 | 21,546,474.74 | -19.44% | | | Net Cash Flow from Operating Activities | 51,181,550.62 | 31,480,712.95 | 62.58% | Primarily due to reduced procurement expenditures and tax payments year-on-year in this period | | Net Cash Flow from Financing Activities | -22,007,442.95 | -12,037,303.18 | 82.83% | Primarily due to share repurchases and repayment of bank loans in this period | | Operating Profit | 9,696,394.81 | 61,098,850.33 | -84.13% | Primarily due to year-on-year decline in sales volume and price of the main product, taurine | Operating Revenue Composition (2025 Semi-Annual vs 2024 Semi-Annual) | Category | Current Reporting Period Amount (CNY) | Proportion of Operating Revenue | Prior Year Period Amount (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | Pharmaceutical Manufacturing | 235,617,809.79 | 64.14% | 341,664,564.25 | 80.24% | -31.04% | | Chemical Manufacturing | 39,965,979.21 | 10.88% | 17,969,556.04 | 4.22% | 122.41% | | Health Food | 90,615,428.92 | 24.66% | 30,100,052.99 | 7.07% | 201.05% | | By Product | | | | | | | Taurine | 235,617,809.79 | 64.14% | 341,664,564.25 | 80.24% | -31.04% | | Other | 131,759,288.70 | 35.86% | 84,152,017.67 | 19.76% | 56.57% | | By Region | | | | | | | Overseas | 190,772,558.31 | 51.93% | 266,446,464.10 | 62.57% | -28.40% | | Domestic | 176,604,540.18 | 48.07% | 159,370,117.82 | 37.43% | 10.81% | Industries, Products, or Regions Accounting for Over 10% of Operating Revenue or Operating Profit (2025 Semi-Annual vs 2024 Semi-Annual) | Category | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | | Pharmaceutical Manufacturing | 235,617,809.79 | 200,003,570.47 | 15.12% | -31.04% | -18.12% | -13.39% | | Chemical Manufacturing | 39,965,979.21 | 40,058,912.17 | -0.23% | 122.41% | 81.35% | 22.70% | | Health Food | 90,615,428.92 | 68,603,185.29 | 24.29% | 201.05% | 192.90% | 2.10% | | By Product | | | | | | | | Taurine | 235,617,809.79 | 200,003,570.47 | 15.12% | -31.04% | -18.12% | -13.39% | | Other | 131,759,288.70 | 109,284,918.69 | 17.06% | 56.57% | 58.24% | -0.87% | | By Region | | | | | | | | Overseas | 190,772,558.31 | 151,661,716.13 | 20.50% | -28.40% | -15.79% | -11.91% | | Domestic | 176,604,540.18 | 157,626,773.03 | 10.75% | 10.81% | 18.31% | -5.65% | Analysis of Non-Main Business During the reporting period, non-main businesses contributed significantly to total profit, with investment income accounting for 120.89% and fair value change gains/losses for 21.14%; these non-recurring items primarily stemmed from the disposal and holding of financial assets and are not sustainable Impact of Non-Main Business on Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 11,461,930.22 | 120.89% | Gains from disposal of trading financial assets and equity investment income | No | | Gains/Losses from Fair Value Changes | 2,004,491.16 | 21.14% | Gains/losses from fair value changes of trading financial assets held | No | | Asset Impairment | -444,891.00 | -4.69% | Reversal of inventory depreciation provision | No | | Non-Operating Income | 295,984.95 | 3.12% | Primarily income from disposal of scrap | No | | Non-Operating Expenses | 511,411.57 | 5.39% | Primarily fines | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders both slightly decreased; monetary funds and accounts receivable decreased, mainly due to expanded wealth management, repayment of bank loans, and timely collection of payments; fixed assets increased and construction in progress decreased, primarily due to completed construction projects being transferred to fixed assets; the ending balance of trading financial assets significantly increased Significant Changes in Asset Composition (Period-End vs Prior Year-End) | Item | Current Period-End Amount (CNY) | Proportion of Total Assets | Prior Year-End Amount (CNY) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 267,439,688.60 | 11.80% | 320,405,292.96 | 13.88% | -2.08% | Primarily due to expanded wealth management and repayment of bank loans in this period | | Accounts Receivable | 112,529,066.48 | 4.96% | 153,967,383.89 | 6.67% | -1.71% | Primarily due to timely collection of payments in this period | | Fixed Assets | 902,878,924.94 | 39.83% | 881,816,043.56 | 38.20% | 1.63% | Primarily due to completed construction in progress being transferred to fixed assets in this period | | Construction in Progress | 17,613,475.71 | 0.78% | 66,409,104.74 | 2.88% | -2.10% | Primarily due to completed construction in progress being transferred to fixed assets in this period | Assets and Liabilities Measured at Fair Value (Period-End vs Period-Beginning) | Item | Period-Beginning Balance (CNY) | Fair Value Change Gains/Losses in Current Period (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold in Current Period (CNY) | Period-End Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 600,160,393.06 | 2,004,491.16 | 492,222,499.91 | 430,818,244.38 | 663,569,139.75 | Analysis of Investment Status During the reporting period, the company's investment decreased by 63.00% year-on-year; ongoing non-equity investment projects include the Yongan Science Park Phase II construction, Yongan Kangjian workshop renovation, and the 10,000 tons/year creatine monohydrate project, all in construction or nearing completion; for securities investments, the period-end book value of domestic and overseas stocks was CNY 34,984,002.15, and wealth management products CNY 628,585,137.60 Investment Amount During the Reporting Period | Investment Amount During Reporting Period (CNY) | Investment Amount in Prior Year Period (CNY) | Change Percentage | | :--- | :--- | :--- | | 21,455,025.44 | 57,979,784.41 | -63.00% | Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Is it Fixed Asset Investment | Investment Industry | Amount Invested in Current Period (CNY) | Cumulative Actual Investment Amount as of Period-End (CNY) | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yongan Science Park Phase II Construction Project | Self-built | Yes | Food Manufacturing | 8,059,928.33 | 55,751,670.64 | 93.00% | | Yongan Kangjian Workshop Renovation Project | Self-built | Yes | Food Manufacturing | 3,649,216.60 | 24,933,528.74 | 96.00% | | 10,000 Tons/Year Creatine Monohydrate Project | Self-built | Yes | Food Manufacturing | 5,590,380.60 | 5,590,380.60 | 30.00% | Securities Investment Status (Period-End Book Value) | Security Type | Period-End Book Value (CNY) | | :--- | :--- | | Domestic and Overseas Stocks | 34,984,002.15 | | Wealth Management Products | 628,585,137.60 | - The company had no derivative investments or use of raised funds during the reporting period[56][57] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets or equity during the reporting period[58][59] Analysis of Major Holding and Participating Companies During the reporting period, subsidiary Yongan Kangjian's operating revenue increased by 76.08% year-on-year, but net profit slightly decreased by 0.57% due to increased promotion expenses for its independent brand; Lingan Technology's operating revenue increased by 53.93%, but net loss increased by 108.87% due to initial business development, unreleased capacity, and increased period expenses; Qianjiang Qi'an Hydrogen Energy's operating revenue increased by 23.29%, and net loss decreased by 43.24% due to shutdown maintenance and reduced fixed asset depreciation costs Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit (2025 Semi-Annual) | Company Name | Company Type | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Yongan Kangjian | Subsidiary | 57,415,428.14 | 2,549,993.24 | 2,447,110.74 | | Lingan Technology | Subsidiary | 45,712,824.68 | -8,653,078.92 | -6,625,751.57 | | Qi'an Hydrogen Energy | Subsidiary | 722,963.09 | -3,529,087.53 | -3,529,087.53 | - Yongan Kangjian's operating revenue increased by 76.08% year-on-year, while net profit decreased by 0.57% year-on-year, primarily due to increased promotion expenses for its independent brand business[61] - Lingan Technology's operating revenue increased by 53.93% year-on-year, and net loss increased by 108.87% year-on-year, primarily due to unreleased capacity in the initial development phase of the creatine monohydrate business and increased period expenses[62] - Qi'an Hydrogen Energy's operating revenue increased by 23.29% year-on-year, and net loss decreased by 43.24% year-on-year, primarily due to shutdown maintenance and reduced fixed asset depreciation costs[62] - During the reporting period, the company established wholly-owned subsidiary Fuweile Pet Food (Wuhan) Co., Ltd. and controlling subsidiary Hubei He'an Biotechnology Co., Ltd[61] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[63] Risks Faced by the Company and Countermeasures The company faces four major risks: environmental safety, operational, exchange rate, and management; environmental safety risks are managed through strict compliance and DCS automation; operational risks are addressed by refined management, process improvement, market expansion, diversification, raw material price monitoring, and active defense in US patent litigation; exchange rate risks are mitigated by closely monitoring fluctuations, strategic settlement timing, and trade term adjustments; management challenges from business expansion are met by adjusting management structure, strengthening training, and fostering teamwork - The company has 5 major hazard sources and 3 key supervised chemical processes, addressing environmental safety risks through strict compliance with regulations and DCS automation control[63] - Operational risks include increased fixed costs, global economic uncertainty, taurine market competition, new business development falling short of expectations, raw material price fluctuations, and US patent litigation[64] - The company addresses operational risks through refined management, process improvement, diversified market layout, new business expansion, and intellectual property protection[65] - The company's majority income is settled in USD, exposing it to exchange rate fluctuation risks, which will be mitigated by closely monitoring exchange rates, selecting settlement timings, and adjusting trade terms[66] - Expanding business scope and scale bring management risks, which the company will address by adjusting its management structure, strengthening team training, and improving cross-departmental communication[66] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system nor disclosed a valuation enhancement plan[67] Implementation of "Quality and Return Dual Enhancement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[67] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were changes in the company's board of directors, with Guo Xiaohua elected as an independent director and Chen Wen resigning as an independent director due to personal reasons Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Guo Xiaohua | Independent Director | Elected | January 14, 2025 | Election | | Chen Wen | Independent Director | Resigned | January 14, 2025 | Personal reasons | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[69] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[70] Environmental Information Disclosure The company and its three major subsidiaries (Qianjiang Yongan Pharmaceutical, Hubei Lingan Technology, Qianjiang Qi'an Hydrogen Energy) are all included in the list of enterprises required to disclose environmental information by law, with corresponding environmental information disclosure report query indexes provided - The company and its three major subsidiaries are included in the list of enterprises required to disclose environmental information by law[71] - Query indexes for environmental information disclosure reports of Qianjiang Yongan Pharmaceutical Co., Ltd., Hubei Lingan Technology Co., Ltd., and Qianjiang Qi'an Hydrogen Energy Development Co., Ltd. are provided[71] Social Responsibility Status During the reporting period, the company did not carry out work related to consolidating and expanding poverty alleviation achievements or rural revitalization - During the reporting period, the company did not carry out work related to poverty alleviation achievements or rural revitalization[72] Significant Matters Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, etc., that were Fulfilled During the Reporting Period or Overdue and Unfulfilled as of the End of the Reporting Period The company's actual controller, Mr. Chen Yong, and shareholder Huanggang Yongan Pharmaceutical Co., Ltd. have both issued commitment letters to avoid horizontal competition and complied with these commitments during the reporting period; there were no other overdue and unfulfilled commitments as of the end of the reporting period - The company's actual controller, Mr. Chen Yong, and shareholder Huanggang Yongan Pharmaceutical Co., Ltd. have both issued commitment letters to avoid horizontal competition[74][75] - During the reporting period, the aforementioned shareholders complied with their commitments to avoid horizontal competition[74] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[77] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[78] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[79] Explanation of Non-Standard Audit Report by Board of Directors and Supervisory Board The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[80] Explanation by Board of Directors Regarding Prior Year's Non-Standard Audit Report The company had no non-standard audit report for the prior year during the reporting period - The company had no non-standard audit report for the prior year during the reporting period[80] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[80] Litigation Matters The company is involved in a significant US patent infringement lawsuit, where the plaintiff VITAWORKS IP, LLC has filed for bankruptcy, temporarily suspending the appeal process; the company is actively monitoring developments; additionally, the company and its subsidiaries are involved in 6 other contract disputes and lawsuits, with a total amount involved of CNY 3.2449 million, some of which have been ruled or settled and are currently being enforced - The company is involved in a significant US patent infringement lawsuit, where the plaintiff VITAWORKS IP, LLC has filed for bankruptcy, temporarily suspending the appeal process[81][82] - The company was ruled in February 2024 not to have infringed the plaintiff's patent and was awarded partial attorney fees[81] - The company and its subsidiaries are involved in 6 other lawsuits, with a total amount involved of CNY 3.2449 million, some of which have been won, settled, or are currently being enforced[83] Penalties and Rectification Status Subsidiary Lingan Technology was fined CNY 600,000 for a general poisoning and asphyxiation accident, and Yongan Kangjian was fined CNY 90,000 for non-compliant product labels; both subsidiaries have actively implemented rectification measures, strengthening safety production management and product quality control Penalties and Rectification Status | Name/Entity | Type | Reason | Type of Investigation and Penalty | Conclusion (if any) | | :--- | :--- | :--- | :--- | :--- | | Lingan Technology | Other | A general poisoning and asphyxiation accident occurred in the factory area | Investigated by competent authority | Lingan Technology was fined CNY 600,000 by Qianjiang Emergency Management Bureau for its primary responsibility in production safety. This was a general production safety liability accident and did not have a significant adverse impact on Lingan Technology's production and operations | | Yongan Kangjian | Other | Sample inspection of product labels found content not compliant with relevant standards | Investigated by competent authority | Confiscation of retained samples and products from the same batch, with a total fine of CNY 90,000 | - Lingan Technology has carried out safety hazard investigations and production safety rectification work, strengthening on-site management and employee training[85] - Yongan Kangjian has strictly implemented food safety standards, strengthened quality control, and redesigned and reviewed product labels[86] Integrity Status During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[87] Significant Related Party Transactions During the reporting period, the company entered into a framework agreement for equipment processing and manufacturing with related party Hubei Yongbang Engineering Technology Co., Ltd., with related transaction amount of CNY 2,124,076.13; a framework agreement for equipment manufacturing and system integration supply with Zhejiang Shuangzi Intelligent Equipment Co., Ltd., with related transaction amount of CNY 15,000.00; and had purchase/sale of goods and leasing related transactions with Hubei Tianan Daily Chemical Co., Ltd Related Party Transactions for Purchase/Sale of Goods, Provision and Acceptance of Services (Purchase of Goods/Acceptance of Services) | Related Party | Related Transaction Content | Amount in Current Period (CNY) | Approved Transaction Limit (CNY) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Hubei Yongbang Engineering Technology Co., Ltd. | Equipment, materials, installation engineering | 1,928,791.55 | 20,000,000.00 | No | | Hubei Tianan Daily Chemical Co., Ltd. | Materials | -1,273,186.64 | | No | | Zhejiang Shuangzi Intelligent Equipment Co., Ltd. | Equipment | 14,150.94 | 10,000,000.00 | No | Related Party Transactions for Purchase/Sale of Goods, Provision and Acceptance of Services (Sale of Goods/Provision of Services) | Related Party | Related Transaction Content | Amount in Current Period (CNY) | | :--- | :--- | :--- | | Hubei Lingan Chemical Co., Ltd. | Sale of goods | 2,819,876.47 | | Hubei Tianan Daily Chemical Co., Ltd. | Sale of goods | 14,630,705.83 | - The company, as lessor, leased buildings to Hubei Tianan Daily Chemical Co., Ltd., recognizing lease income of CNY 67,241.50 in this period[122][534] - The company signed a 2025 annual framework agreement for equipment processing and manufacturing with Hubei Yongbang Engineering Technology Co., Ltd., with a total transaction amount not exceeding CNY 20 million[94] - The company signed a 2025 annual framework agreement for equipment manufacturing and system integration supply with Zhejiang Shuangzi Intelligent Equipment Co., Ltd., with a total transaction amount not exceeding CNY 10 million[94] Significant Contracts and Their Performance During the reporting period, the company had no trusteeship or contracting arrangements; as lessor, the company leased part of its premises to Hubei Tianan Daily Chemical Co., Ltd., recognizing lease income of CNY 76,778.20; the company provided a joint and several liability guarantee of CNY 30 million to its subsidiary Hubei Lingan Technology Co., Ltd., which is not yet fulfilled; the company's wealth management transactions amounted to CNY 488.067 million, with an outstanding balance of CNY 619.3395 million - The company had no trusteeship or contracting arrangements during the reporting period[95][97] - The company, as lessor, leased part of its premises to Hubei Tianan Daily Chemical Co., Ltd., recognizing lease income of CNY 76,778.20[98] Company Guarantees to Subsidiaries | Guaranteed Party | Guarantee Amount (CNY 10,000) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Hubei Lingan Technology Co., Ltd. | 3,000 | December 27, 2022 | December 26, 2025 | No | Wealth Management Status | Specific Type | Amount of Wealth Management Transactions (CNY 10,000) | Unexpired Balance (CNY 10,000) | | :--- | :--- | :--- | | Other | 6,195.9 | 0 | | Bank Wealth Management Products | 3,610.8 | 0 | | Brokerage Wealth Management Products | 39,000 | 61,933.95 | | Total | 48,806.7 | 61,933.95 | - The company had no other significant contracts during the reporting period[102] Explanation of Other Significant Matters The first phase of the company's 40,000 tons/year taurine food additive project has been completed and put into operation, with some facilities already capable of producing 40,000 tons/year; the company's actual controller and chairman, Mr. Chen Yong, is under investigation and detention by the Hefeng County Supervisory Commission, with director Mr. Chen Zidi temporarily performing the chairman's duties, and the company's production and operations remain normal - The first phase of the company's 40,000 tons/year taurine food additive project (20,000 tons/year) has been completed and put into operation, with some facilities already capable of producing 40,000 tons/year of taurine[103] - The company's actual controller and chairman, Mr. Chen Yong, is under investigation and detention by the Hefeng County Supervisory Commission[104] - Director Mr. Chen Zidi is temporarily performing the chairman's duties, and the company's production and operations remain normal[105] Significant Matters of Company Subsidiaries The company's wholly-owned subsidiary Yongan Kangjian established wholly-owned subsidiary Fuweile Pet Food (Wuhan) Co., Ltd.; the company, with other investors, jointly established controlling subsidiary Hubei He'an Biotechnology Co., Ltd.; controlling subsidiary Lingan Technology obtained a food production license, expanding its business scope - Wholly-owned subsidiary Yongan Kangjian established wholly-owned subsidiary Fuweile Pet Food (Wuhan) Co., Ltd., with a registered capital of CNY 2 million[107] - The company, with other investors, jointly established controlling subsidiary Hubei He'an Biotechnology Co., Ltd., with the company holding 75% of the shares[107] - Controlling subsidiary Lingan Technology obtained a food production license, qualifying it for the production of special dietary food (creatine)[107] Changes in Shares and Shareholder Information Changes in Shares During the reporting period, the company's total share capital remained unchanged at 294,682,500 shares; the proportions of restricted and unrestricted shares also remained constant; the company completed its share repurchase plan on April 28, 2025, having repurchased a cumulative total of 5,537,350.00 shares, representing 1.88% of the total share capital, for a total amount of CNY 40,454,553.49 Changes in Shares (Period-End vs Period-Beginning) | Share Category | Number Before This Change (shares) | Proportion Before This Change | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 49,122,399 | 16.67% | 49,122,399 | 16.67% | | II. Unrestricted Shares | 245,560,101 | 83.33% | 245,560,101 | 83.33% | | III. Total Shares | 294,682,500 | 100.00% | 294,682,500 | 100.00% | - The company completed its share repurchase plan on April 28, 2025, having repurchased a cumulative total of 5,537,350.00 shares, representing 1.88% of the total share capital, for a total transaction amount of CNY 40,454,553.49[112] Issuance and Listing of Securities The company had no issuance and listing of securities during the reporting period - The company had no issuance and listing of securities during the reporting period[113] Company Shareholder Numbers and Shareholding Status As of the end of the reporting period, the total number of common shareholders was 64,480; among the top ten shareholders, Chen Yong held 21.54% of shares, being the largest shareholder, with some of his shares restricted; some shares of Dalian Tongze Enterprise Management Consulting Partnership (Limited Partnership) and Liaoning Wangsheng E-commerce Co., Ltd. were frozen; the company's dedicated securities account for repurchases held 5,537,350 shares, ranking fifth - As of the end of the reporting period, the total number of common shareholders was 64,480[114] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders (Period-End) | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Yong | Domestic Natural Person | 21.54% | 63,468,000.00 | 47,601,000.00 | 15,867,000.00 | Not applicable | | Zhao Liqian | Domestic Natural Person | 4.17% | 12,292,552.00 | 0 | 12,292,552.00 | Not applicable | | Huanggang Yongan Pharmaceutical Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.57% | 10,529,232.00 | 0 | 10,529,232.00 | Not applicable | | Central Huijin Asset Management Co., Ltd. | State-Owned Legal Person | 2.58% | 7,610,350.00 | 0 | 7,610,350.00 | Not applicable | | Dalian Tongze Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.94% | 2,759,000.00 | 0 | 2,759,000.00 | Frozen 2,759,000.00 | | Liaoning Wangsheng E-commerce Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.70% | 2,076,204.00 | 0 | 2,076,204.00 | Frozen 2,076,204.00 | - The company's dedicated securities account for repurchases held 5,537,350 shares, accounting for 1.88% of the total share capital, ranking fifth among all shareholders of the company in the current period by number of shares held[115] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period, with specific details available in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[117] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller did not change during the reporting period - The company's controlling shareholder did not change during the reporting period[118] - The company's actual controller did not change during the reporting period[118] Information on Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[119] Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[121] Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[123] Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the financial position and operating results at the end of the reporting period - Consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity are provided[124][128][132][135][138][140][143][150] Company Basic Information This section details the company's unified social credit code, enterprise type, domicile, legal representative, registered capital, establishment date, business term, industry nature, and business scope, along with its historical evolution and changes in registered capital - The company's unified social credit code is 91429005728313974F, and its enterprise type is a joint-stock company (listed, invested or controlled by natural persons)[156] - The company's legal representative is Chen Yong, and its registered capital is CNY 294,682,500[156] - The company's business scope includes the production and sales of raw materials, food additives, feed additives, and related import/export businesses[156] - The company's registered capital has undergone multiple changes, ultimately becoming CNY 294.6825 million[157] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis - Financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and Article 15 of the "Information Disclosure Rules for Companies Issuing Securities to the Public – General Provisions for Financial Reports" by the China Securities Regulatory Commission[158] - Financial statements are prepared on a going concern basis[159] Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates regarding accounting periods, operating cycles, functional currency, materiality standards, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, financing for accounts receivable, other receivables, contract assets, inventories, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, safety production fees, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, and repurchase of company shares - The company uses RMB as its functional currency, with some subsidiaries using USD[164] - Detailed explanations are provided for the classification, recognition criteria, measurement methods, and impairment testing methods of financial instruments[176][196] - Fixed assets are depreciated using the straight-line method, and construction in progress is measured at actual cost and transferred to fixed assets upon reaching its intended usable state[222][225] - Revenue recognition is based on the point at which the customer obtains control of goods or services, distinguishing between export and domestic sales[258][262] - Disclosure of the basis and proportion for accruing safety production fees[257] Taxation This section lists the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge; the company and its subsidiaries enjoy a 15% corporate income tax preferential rate as high-tech enterprises, and the taurine export tax rebate rate has increased to 13% Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services income | 13.00%, 9.00%, 6.00%, 3.00% | | Urban Maintenance and Construction Tax | Actual VAT and consumption tax paid | 7.00% | | Corporate Income Tax | Taxable income | 15.00%, 16.50%, 20.00%, 25.00% | | Education Surcharge | Sum of actual turnover tax paid and VAT exempted/offset with approval in the current period | 3.00% | | Local Education Surcharge | Sum of actual turnover tax paid and VAT exempted/offset with approval in the current period | 2.00% | - Qianjiang Yongan Pharmaceutical Co., Ltd. and Yongan Kangjian Pharmaceutical (Wuhan) Co., Ltd., as high-tech enterprises, enjoy a 15% corporate income tax preferential rate[295] - The value-added tax export rebate rate for the company's overseas sales of taurine has increased to 13%[296] Notes to Consolidated Financial Statements This section provides detailed information on each item in the consolidated financial statements, including monetary funds, trading financial assets, notes receivable, accounts receivable, financing for accounts receivable, other receivables, prepayments, inventories, other current assets, long-term equity investments, fixed assets, construction in progress, intangible assets, goodwill, deferred income tax assets/liabilities, other non-current assets, assets with restricted ownership or use rights, short-term borrowings, accounts payable, other payables, contract liabilities, employee compensation payable, taxes payable, other current liabilities, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, special reserves, surplus reserves, undistributed profits, operating revenue and operating costs, taxes and surcharges, administrative expenses, selling expenses, R&D expenses, financial expenses, other income, fair value change gains/losses, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expense, earnings per share, cash flow statement items, foreign currency monetary items, and leases Monetary Funds (Period-End vs Period-Beginning) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 221,864.01 | 246,845.40 | | Bank Deposits | 243,554,636.91 | 260,327,127.09 | | Other Monetary Funds | 23,663,187.68 | 59,831,320.47 | | Total | 267,439,688.60 | 320,405,292.96 | Trading Financial Assets (Period-End vs Period-Beginning) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Equity Instrument Investments | 34,984,002.15 | 33,901,129.15 | | Wealth Management Products | 628,585,137.60 | 566,259,263.91 | | Total | 663,569,139.75 | 600,160,393.06 | Operating Revenue and Operating Costs (Current Period vs Prior Period) | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 366,199,217.92 | 308,665,667.93 | 415,303,177.43 | 305,805,564.58 | | Other Businesses | 1,177,880.57 | 622,821.23 | 10,513,404.49 | 7,526,240.39 | | Total | 367,377,098.49 | 309,288,489.16 | 425,816,581.92 | 313,331,804.97 | R&D Expenses (Current Period vs Prior Period) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Raw Materials and Fuels | 5,819,956.47 | 9,746,960.11 | | Utilities | 1,730,709.50 | 2,424,433.29 | | Employee Compensation | 6,287,913.44 | 5,835,022.77 | | Depreciation and Amortization | 3,008,824.07 | 3,015,708.45 | | Other Expenses | 511,347.47 | 524,350.12 | | Total | 17,358,750.95 | 21,546,474.74 | Earnings Per Share (Current Period vs Prior Period) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.0432 | 0.1781 | | Diluted Earnings Per Share (CNY/share) | 0.0432 | 0.1781 | R&D Expenses During the reporting period, the company's total R&D expenditure was CNY 17,358,750.95, all expensed, representing a 19.44% year-on-year decrease; major expenditures included raw materials and fuels, employee compensation, utilities, and depreciation and amortization; the company had no R&D projects eligible for capitalization R&D Expenses (Current Period vs Prior Period) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Raw Materials and Fuels | 5,819,956.47 | 9,746,960.11 | | Utilities | 1,730,709.50 | 2,424,433.29 | | Employee Compensation | 6,287,913.44 | 5,835,022.77 | | Depreciation and Amortization | 3,008,824.07 | 3,015,708.45 | | Other Expenses | 511,347.47 | 524,350.12 | | Total | 17,358,750.95 | 21,546,474.74 | | Of which: Expensed R&D Expenditure | 17,358,750.95 | 21,546,474.74 | - During the reporting period, the company had no R&D projects eligible for capitalization[496] Changes in Consolidation Scope In the current period, the company established new subsidiaries Hubei He'an Biotechnology Co., Ltd. and Fuweile Pet Food (Wuhan) Co., Ltd., and included them in the scope of consolidated financial statements - In the current period, new subsidiaries Hubei He'an Biotechnology Co., Ltd. and Fuweile Pet Food (Wuhan) Co., Ltd. were established and included in the scope of consolidated financial statements[498] Interests in Other Entities The company owns multiple subsidiaries, including Yongan Kangjian Pharmaceutical, Hubei Lingan Technology, and Qianjiang Qi'an Hydrogen Energy; Hubei He'an Biotechnology Co., Ltd.'s financial statements are 100% consolidated due to other investors' failure to fulfill capital contributions; the company also holds interests in associates such as Zhejiang Shuangzi Intelligent Equipment Co., Ltd., Hubei Lingan Chemical Co., Ltd., Huanggang Yongan Daily Chemical Co., Ltd., and Wuhan Low-Dimensional Materials Research Institute Co., Ltd Composition of Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Registered Capital (CNY) | Shareholding Proportion (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | | Yongan Kangjian Pharmaceutical (Wuhan) Co., Ltd. | 110,000,000.00 | 100.00% | Establishment | | Hubei Lingan Technology Co., Ltd. | 16,670,000.00 | 50.80% | Business Combination Not Under Common Control | | Qianjiang Qi'an Hydrogen Energy Development Co., Ltd. | 60,000,000.00 | 60.00% | Business Combination Not Under Common Control | | Hubei He'an Biotechnology Co., Ltd. | 10,000,000.00 | 100.00% (Actual Control) | Establishment | - The financial statements of Hubei He'an Biotechnology Co., Ltd. are 100% included in the company's consolidated scope because other investors have not yet fulfilled their capital contribution obligations[501] Important Joint Ventures or Associates | Name of Joint Venture or Associate | Shareholding Proportion (Direct) | Accounting Treatment Method for Investment in Joint Venture or Associate | | :--- | :--- | :--- | | Zhejiang Shuangzi Intelligent Equipment Co., Ltd. | 18.33% | Equity Method | | Hubei Lingan Chemical Co., Ltd. | 24.89% (Indirect) | Equity Method | | Huanggang Yongan Daily Chemical Co., Ltd. | 6.52% | Equity Method | | Wuhan Low-Dimensional Materials Research Institute Co., Ltd. | 40.00% | Equity Method | [Government Grants](i