[中报]新 和 成(002001):2022年半年度报告（英文版）
原标题:新 和 成:2022年半年度报告（英文版） August 2022 Section I Important Notes, Contents, and Definitions The Board of Directors and its members, Board of Supervisors and its members, and senior executives of the Company hereby guarantee that the information presented in this semi-annual report is authentic, accurate, complete and free of false records, misleading statements or material omissions, and they will bear individual and joint liabilities for such information. 胡柏藩 (Hu Baifan), the Company’s legal representative, 石观群 (Shi Guanqun), the officer in charge of accounting, and 王晓碧 (Wang Xiaobi), the head of accounting department hereby declare that they guarantee the financial statements in this semi-annual report are authentic, accurate and complete. All members of the Board of Directors have attended the meeting of the Board of Directors for deliberation of this semi-annual report. The future plan and other forward-looking information disclosed in this semi-annual report shall not be regarded as a commitment to investors. We kindly remind investors of all possible risks in investments. The Company will not distribute cash dividend, distribute bonus shares, or distribute shares from capital reserve during the current reporting period. This Semi-Annual Report is an English translation of the Chinese Semi-Annual Report. In case the English version does not conform to the Chinese version, the Chinese version prevails. Contents Section I Important Notes, Contents, and Definitions .................................................................... 1 Section II Company Profile and Key Financial Indicators ............................................................ 5 Section III Management Discussion and Analysis .......................................................................... 9 Section IV Corporate Governance ................................................................................................. 20 Section V Environmental and Social Responsibilities .................................................................. 22 Section VI Significant Events .......................................................................................................... 27 Section VII Movements in Shares and Information about Shareholders ................................... 35 Section VIII Preferred Shares ........................................................................................................ 40 Section IX Bonds .............................................................................................................................. 41 Section X Financial Report ............................................................................................................. 42 Documents Available for Reference I. Financial statements signed and sealed by the Company’s legal representative, officer in charge of accounting, and head of accounting department; II. Original copy of all the Company's documents and announcements published on the newspapers designated by CSRC within the reporting period III. Other documents for reference. Definitions
Section II Company Profile and Key Financial Indicators I. Company profile
II. Contact information
III. Other Information 1. Company’s Contact Information Whether the Company’s registered address, office address, zip code, website and e-mail address has changed during the reporting period □ Applicable √ Not applicable The Company’s registered address, office address, zip code, website and e-mail address have not changed during the reporting period, which can be found in the 2021 Annual Report. 2. Information Disclosure and Location Whether information disclosure and location has changed during the reporting period □ Applicable √ Not applicable The name of the Company’s selected information disclosure newspaper, the URL of the website designated by the CSRC where the semi-annual report is posted, and the place where the Company’s semi-annual report is available have not changed during the reporting period, which can be found in the 2021 Annual Report. 3. Other relevant Information Whether other relecant information has changed during the reporting period □ Applicable √ Not applicable IV. Key accounting data and financial indicators Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years √ Yes □ No Reason for retroactive adjustment or restatement Accounting policy changes and other reasons
shares to 3,090,907,356 shares. The above EPS of the comparative period was recalculated based on the adjusted share capital. [Note2] The company has implemented The Interpretation of Accounting Standards for Business Enterprises No. 15 since January 1, 2022. The interpretation requires that if the company sells the products or by-products produced before the fixed assets reach the expected serviceable state or during the research and development process, the income and cost related to the trial operation sales shall be accounted for separately and included in the current profit and loss, The net amount of the revenue from trial operation sales after offsetting the relevant costs shall not be used to offset the cost of fixed assets or R&D expenses. The company makes retroactive adjustment according to requirements. V. Differences in accounting data under Chinese accounting standards and overseas accounting standards 1. Difference in net profit and net assets in financial statements disclosed respectively under IFRS Standards and Chinese accounting standards □ Applicable √ Not Applicable The Company has no difference in net profit or net assets in financial statements disclosed respectively under IFRS Standards and Chinese accounting standards. 2. Difference in net profit and net assets in financial statements disclosed respectively under overseas accounting standards and Chinese accounting standards □ Applicable √ Not Applicable The Company has no difference in net profit or net assets in financial statements disclosed respectively under overseas accounting standards and Chinese accounting standards. VI. Non-recurring profit or loss √ Applicable □ Not Applicable Unit: RMB Yuan
The Company has no other profit or loss satisfying the definition of non-recurring profit or loss. Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss. □ Applicable √ Not Applicable The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss. Section III Management Discussion and Analysis I. The main business of the Company during the reporting period The Company is a national high-tech company mainly engaged in the production and sales of nutrition, flavor and fragrance, new polymer materials, and APIs. It focuses on fine chemicals, adheres to the concept of innovation-led development and competition- driven growth, and continuously develops various functional chemicals based on the two core platforms of chemical and biology, providing value-added services and solutions to customers in more than 100 countries and regions around the world. It continuously improves the quality of human life with high-quality, healthy and green products, and creates sustainable value for stakeholders. With leading technology, scientific management and sincere service, the Company has become one of the four major world vitamin manufacturers, one of the top 100 national fine chemical companies, one of the top 10 companies in China’s light of industry fragrance and a well-known special engineering plastics manufacturer. 1. Main products and applications Nutrition: The Company’s vitamin products, as the main business, have a substantial market share, with a prominent position in the industry and obvious brand advantages. It is in a leading position in both domestic and overseas markets. Its main products include vitamin E, vitamin A, vitamin C, methionine, vitamin D3, biotin, coenzyme Q10, carotenoids, etc. They are mainly used in feed additives and nutrition supplements of food, beverages, health food, etc. The Company actively implements the serialized and differentiated development of nutrition, and continuously improves the competitiveness of its products by optimizing the processing line and tackling key issues. In addition, through internal integration and external cooperation, it embraces the ideology of open cooperation. It actively deploys cutting-edge biotechnology, and builds the Company’s “Bio+” platform. Flavor and fragrance: At present, the main fragrance products target the global market, in which, the products are competitive, with a high market share and relatively stable market structure. The main products include linalool, citral, and cis-3-hexenol series, and methyl dihydrojasmonate, raspberry ketone and ligustral, which are widely used in personal care, cosmetic and food fields. Relying on the two major technology platforms of chemical synthesis and biological fermentation, the Company continuously enriches the varieties of fragrance products to meet the changing market demands. New polymer materials: The Company focuses on the development of high molecular polymers and key intermediates, and appropriately develops downstream applications of materials according to the principles of integration and serialization. The entire industry chain of PPS from raw materials to high molecular polymers, then through modifying processing to special fibers has enabled the Company as the only company in China that can stably produce fiber grade, injection molding grade, extrusion grade and coating grade PPS. The main products include PPS and PPA. They are mainly used in electronic and electrical, automotive, environmental protection, etc. APIs: The main products are concentrated in the series of vitamins and antibiotics. The main products include moxifloxacin hydrochloride, vitamin A, vitamin D3, etc., which are mainly used as active pharmaceutical ingredients for processing and producing pharmaceutical preparations. 2. Main business models (1) Procurement model The Company has always been adhering to the procurement principle of “fairness, transparency and optimal cost”, and adopts a combination of long-term strategic cooperation and open competitive procurement, and makes best use of market trend analysis, to ensure the stable supply of the Company’s strategic materials. The Company pays attention to source procurement, and continuously promotes the removal of intermediate links in the supply chain to reduce procurement costs; the Company implements transparent procurement, and launches information systems such as procurement platform, supplier and bidding management system, etc. to make the procurement process more transparent, standardized and efficient, which promotes the healthy development of the supply chain and reduces costs and increases efficiency for the Company’s operations. (2) Production model The Company has always been adhering to the production strategy based on the principle of “production and sales coordination, efficient operation, excellent quality, and cost leadership”. The Company maintained a balance between production and sales through analysis of changes in market demands, and reasonable production plans. In addition, the Company keeps innovating the production model, digging out internal potentials, and optimizing the production process, in order to promote safe, green, standardized and efficient production, and continuously improve the competitiveness of its products. (3) Sales model The Company has always been adhering to the “customer-centric, market-oriented” sales strategy. It divides business lines by product application fields, and establishes a sales model that suits market needs according to market characteristics and industry practices. Most of the Company’s sales are achieved through direct sales. By doing so, it establishes long-term and stable strategic cooperative relationships with end customers to create greater value for them. Meanwhile, it also selects excellent agents or distributors for distribution. By doing so, it services customers indirectly based on market and customer features. 3. Key performance drivers The Company has built four modern industrial bases across the country. It adheres to the development strategy of integration, serialization and synergy, and insists on innovation-driven. Relying on the solid foundation of fine chemical industry, it focuses on “chemical+” and “biology+” to form NHU featured R&D models with industrial clusters, and technology and industry platforms interdependent. Not only can its products connect basic chemical raw materials in the upstream, but also extend to special intermediates, nutrition, flavor and fragrance, new polymer materials, and APIs in the downstream. It has formed a product network structure to resist risks and respond to market emergencies. During the reporting period, the company's original products were refined and the construction of new projects, the R&D of new products were carried out in an orderly manner. In the nutrition sector, the Company’s second phase of methionine 250,000 tons/year project, of which 100,000-ton equipment was operating smoothly, with comprehensive competition continuously improved. And of which 150,000-ton equipment was constructed according to schedule and the construction is expected to be completed in June 2023. 5,000 tons / year vitamin B6 and 3,000 tons / year B12 started production and sales, 30,000 tons/year NH-acid project was constructed under schedule. In the Flavor and fragrance sector, the project with an annual output of 5,000 tons of menthol was constructed according to the schedule, and the project progress was controllable. In the new polymer materials sector, the commissioning of the phase III PPS project with an annual output of 7,000 tons was progressing smoothly; The adiponitrile project was in the pilot test stage, and the project approval process was advancing in an orderly manner. In the API sector, the 500 tons/year azabicyclo project was commissioned and the products was sold. Now the process route has been opened and the process is in the process of continuous improvement. In the future, the API product structure will be adjusted, transformed and upgraded, the specific project is in the process of approval. During the reporting period, in the face of the raging Covid-19 epidemic and the more complex international economic situation, the Company coordinated the epidemic control and business development, actively responded to market changes, adjusted sales strategies, strengthened supply chain scheduling, reasonably arranged production plans to ensure its product supply, and strive to create value for customers and the society, and achieved good business performance. During the reporting period, the business of flavor and fragrance, new polymer materials developed steadily. The sales volume of methionine increased, the product price was stable, and the cost advantage was provided. The sales price and sales volume of main vitamin products decreased compared with the same period of the previous year. At the same time, affected by the domestic epidemic and the global political and economic environment, some raw materials’ price has increased, resulting in an increase in product costs. During the reporting period, the company realized an operating revenue of 8.22bn, with an increase of 11.92% over the same period of the previous year; The total profit was 2.62bn, with a decrease of 7.28% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was 2.21bn, with a decrease of 8.78% over the same period of the previous year. Overall, in the first half of 2022, the company maintained a stable operating state, and the company's performance conformed to the development law of the industry. During the reporting period, the Company’s main business and its business model remained unchanged. II. Core competitiveness analysis During the reporting period, the Company’s core competitiveness remained unchanged, please refer to 2021 Annual Report of Zhejiang NHU Co., Ltd. for details. III. Main Business Analysis Overview Refer to “I. The Main Business of the Company during the Reporting Period” Year-on-year changes in key financial data Unit: RMB Yuan
□ Applicable √ Not applicable No significant changes in the composition of the Company’s profit or sources of profit during the reporting period. Operating Income Structure Unit: RMB Yuan
Industry, product, or regions accounting for more than 10% of the Company’s operating revenue or profit √ Applicable □ Not applicable Unit: RMB Yuan
When the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’s main business data in the most recent period should be subject to the one after the statistical caliber adjusted at the end of the reporting period. □ Applicable √ Not applicable Reasons for over 30% changes in related data on year-on-year basis √ Applicable □ Not applicable ① By Product: Compared with the corresponding period of last year, the operating revenue of flavor and fragrance is increased by 31.17%, mainly due to the joint influence of the price rise and sales volume increase of such products. ② By Region: Compared with the corresponding period of last year, the operating cost of domestic sales is increased by 39.34%, mainly due to the increase in sales volume of nutrition products and the increase in freight costs. IV. Non-main business analysis √ Applicable □ Not Applicable Unit: RMB Yuan
1. Significant changes in asset composition Unit: RMB Yuan
□ Applicable √ Not applicable 3. Assets and liabilities at fair value √ Applicable □ Not Applicable
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