Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
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Annual Report 2023 To be a Global Leading Crop Protection Company
SHANDONG WEIFANG RAINBOW CHEMICAL CO., LTD
Operating Summary of 2023
Section I. Company Information and Key Financial Indicators
I. Company Information
Short form of the stock 润丰股份 Stock code 301035
Chinese name of the Company SHANDONG WEIFANG RAINBOW CHEMICAL CO.,LTD
Chinese abbreviation of the
润丰股份
Company
Name of the Company in
SHANDONG WEIFANG RAINBOW CHEMICAL CO.,LTD
English (if any)
Abbreviation of the Company in
RAINBOW CHEMICAL
English (if any)
Legal representative of the
Wicky Wang
Company
Registered address No.03001 Lvjian Road, Binhai Economic Development Zone, Weifang City, Shandong Province
Postal code of registered
262737
address
Previous changes of registered
N/A
address of the Company
Business address 30th Floor, Building 5, Zone 5, Hanyu Financial Center, High-tech Zone, Jinan City, Shandong Province
Postal code of business address 250101
Website www.rainbowagro.com
E-mail rfzqb@rainbowagro.com
II. Contact Person and Contact Information
Secretary of the board Securities affairs representative
Name Xing Bingpeng Hu Dongju
30th Floor, Building 5, Zone 5, Hanyu 30th Floor, Building 5, Zone 5, Hanyu
Contact address Financial Center, High-tech Zone, Jinan City, Financial Center, High-tech Zone, Jinan City,
Shandong Province Shandong Province
Tel 0531-83199916 0531-83199916
Fax 0531-83191676 0531-83191676
E-mail rfzqb@rainbowagro.com rfzqb@rainbowagro.com
III. Information Disclosure and Place of Report
Website of the stock exchange for release of the Annual Report Shenzhen Stock Exchange: http://www.szse.cn
Securities Times, China Securities Journal, Shanghai Securities
Name and website of the media for release of the Annual Report News, Securities Daily, Economic Information Daily, CNINFO
(www.cninfo.com.cn)
30th Floor, Building 5, Zone 5, Hanyu Financial Center, High-tech
Place where the Annual Report is available for inspection
Zone, Jinan City, Shandong Province
IV. Other Relevant Information
Accounting firm engaged by the Company
Shangkuai Certified Public Accountants (Special General
Name of the accounting firm
Partnership)
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Annual Report 2023 To be a Global Leading Crop Protection Company
Business address of the accounting firm 25th Floor, No. 755 Weihai Road, Jing'an District, Shanghai
Name of certified accountants Yu Renqiang, Yin Zuoyong
The sponsor institution engaged by the Company to perform continuous supervision during the reporting period
Applicable □ Not applicable
Name of the sponsor Business address of the Name of sponsor Duration of continuous
institution sponsor institution representative supervision
No. 6666 Shengtai Street, From July 28, 2021 to December
Northeast Securities Co., Ltd. Liu Junjie, Sun Bin
Changchun 31, 2024
V. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
Yes □No
Reasons for retrospective adjustments or restatements
Changes in accounting policies
Year-on-year
2022 2021
change
2023
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Operating 11,484,792,643. 14,460,175,154. 14,460,175,154. 9,797,107,551.3 9,797,107,551.3
-20.58%
income (RMB) 38 41 41 8 8
Net profit
attributable to
1,413,238,278.1 1,413,285,697.6
shareholders of 771,120,761.85 -45.44% 799,718,982.72 799,718,982.72
1 2
the Company
(RMB)
Net profit
attributable to
shareholders of
the Company 1,417,676,562.7 1,417,723,982.2
762,265,074.25 -46.23% 798,010,406.55 798,010,406.55
excluding non- 2 3
recurring gains
and losses
(RMB)
Net cash flow -
1,370,655,408.2 1,370,655,408.2
from operating 1,350,375,311.3 -198.52% 791,071,609.73 791,071,609.73
5 5
activities (RMB) 6
Basic earnings
per share 2.78 5.12 5.12 -45.70% 3.39 3.39
(RMB/Share)
Diluted earnings
per share 2.77 5.07 5.07 -45.36% 3.39 3.39
(RMB/Share)
Weighted
average return 12.30% 25.70% 25.70% -13.40% 21.22% 21.22%
on net assets
Year-on-year
End of 2022 End of 2021
change
End of 2023
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Total assets 14,897,954,098. 11,598,874,181. 11,600,953,298. 10,311,655,543. 10,311,655,543.
28.42%
(RMB) 13 42 90 89 89
Net assets
attributable to
6,546,153,851.2 6,184,265,166.5 6,184,121,051.6 4,908,724,302.7 4,908,724,302.7
shareholders of 5.85%
4 6 5 1 1
the Company
(RMB)
Reasons for changes in accounting policies and correction of accounting errors
For details, please refer to "43. Changes in Significant Accounting Policies and Accounting Estimates" in "V. Significant Accounting Policies
and Accounting Estimates" in "Section X. Financial Report".
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Annual Report 2023 To be a Global Leading Crop Protection Company
The lower of the Company's net profit before and after deduction of non-recurring gains and losses for the last three fiscal years is negative,
and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue operating
□ Yes No
The lower of the Company's net profit before and after deduction of non-recurring gains and losses is negative
□ Yes No
VI. Key Quarterly Financial Indicators
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 2,233,266,009.68 2,810,236,694.34 3,475,391,281.15 2,965,898,658.21
Net profit attributable to
shareholders of the 182,814,094.72 241,576,708.06 297,230,701.58 49,499,257.49
Company
Net profit attributable to
shareholders of the
Company excluding non- 182,952,103.05 236,546,183.86 296,836,814.30 45,929,973.04
recurring gains and
losses (RMB)
Net cash flow from
-438,843,869.41 28,507,187.20 164,258,343.26 -1,104,296,972.41
operating activities
Whether there is any material difference between the above financial indices or their total and the relevant financial indices disclosed by the
Company in the quarterly report and semi-annual report
□ Yes No
VII. Items and Amounts of Non-recurring Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount of 2023 Amount of 2022 Amount of 2021 Notes
Gains and losses on
disposal of non-current
assets (including write- -8,325,617.35 -24,471,080.42 -25,602,738.28
offs of asset impairment
provisions)
Government subsidies
included in the current
gains and losses
(excluding the
government subsidies
closely related to regular
businesses of the
10,539,793.70 12,079,027.93 15,234,035.09
Company, in line with
national policies,
received by a standard
quota or quantity, and
consecutively affecting
the Company's gains and
losses)
Gains and losses arising
from changes in the fair
value of financial assets
and liabilities held by
non-financial
companies, and gains 1,294,116.14 3,467,771.89
and losses from the
disposal of financial
assets and liabilities,
other than the effective
hedging business related
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Annual Report 2023 To be a Global Leading Crop Protection Company
to the normal operation
of the Company
Rollback of impairment
provisions for
receivables that are 3,117,367.81 308,619.60
separately tested for
impairment
Other non-operating
revenue and
2,853,757.55 3,910,755.03 12,074,283.42
expenditure other than
those mentioned above
Other gains and losses
items that meet the
definition of non- 579,787.41
recurring gains and
losses
Less: affected amount of
1,223,609.55 -675,243.78 339,152.38
income tax
Affected amount of
minority shareholders' -20,091.89 100,002.82 -33,528.72
equity (after tax)
Total 8,855,687.60 -4,438,284.61 1,708,576.17 --
Other gains and losses items that meet the definition of non-recurring gains and loss:
Applicable □ Not applicable
Other gains and losses items that meet the definition of non-recurring gains and losses in this reporting period are personal tax commission
refunds.
Reasons for the non-recurring profit and loss items listed in Explanatory Announcement on Information Disclosure for Companies Offering
Their Securities to the Public No.1 - Non-recurring Gains and Losses recognized as recurring gains and losses items
□ Applicable Not applicable
There is no circumstance where the non-recurring profit and loss items listed in Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to the Public No.1 - Non-recurring Gains and Losses are recognized as recurring gains and losses items.
Section II. Discussion and Analysis of Management of the Company
I. The situation of the industry during the reporting period
The Company shall comply with the disclosure requirements of "related business of the chemical industry" in the Guidelines of SZSE for Self-
Discipline Regulation of Listed Companies No.3 – Industrial Information Disclosure
The Company is categorized into the industry of chemical pesticide manufacturing (C2631) in chemical raw materials and chemical
manufacturing (C26). Pesticides are also commonly known as crop protection products in the industry, which refer to products with a broader
scope, including non-chemical pesticides (such as bio-pesticides, and bio-stimulants). Pesticides are known as preparations for the prevention
and control of crop diseases and insect pests. Pesticide products actually used are pesticide preparations made from pesticide active
compound and pesticide auxiliaries. The active compound takes effect, and it is also called active ingredients or active constitute. In addition,
depending on the targets, the pesticides can also be categorized into herbicide, insecticide, fungicide, plant growth regulator, etc.
(I) The development and trend of crop protection industry:
1. Structural growth opportunities still exist in the global crop protection market with rigid demands
From the global perspective, the crop protection industry is an existing market that has rigid demands and is steadily growing in market
shares. The demand for crop protection is closely related to the demands of humans for food and other crops. In recent years, with the
increase in the population of the world, and the continuous occurrence of pests and diseases, the scale of global crop protection market is
constantly expanding. According to the S&P Global Commodity Insights crop science team, the global crop protection market size grew from
USD 35.575 billion to USD 87.7 billion from 2006 to 2022, at a CAGR of around 5.80%. It is not an industry featuring rapid growth in terms of
the total growth rate, and it is also an industry that lacks change or strong growth dynamic due to the limitation of the non-linear
improvement of new compound development costs, but it still has three clear structural growth opportunities: First, the continuous
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Annual Report 2023 To be a Global Leading Crop Protection Company
expansion of the market shares of non-patented crop protection products. Second, with the continuous expansion of non-patented crop
protection market share, excellent multinational generic companies grow rapidly (such as UPL in India). Third, with the promotion of different
transgenic seeds and the resistance of different varieties, the prohibition policy from the government has brought about the change of usage
amount of different varieties (such as glufosinate-ammonium, diquat, prothioconazole and chlorantraniliprole gained rapid growth in the
global market in the past few years).
2. Non-patented crop protection market shares and excellent multinational non-patented crop protection companies grow fast
With the continuous expansion of the non-patented crop protection market shares, excellent multinational non-patented crop protection
companies have grown rapidly. The most eye-catching case in the industry in past few years is how Indian company UPL rapidly strengthened
itself and expanded its market share internationally by purchasing Arysta and other companies with strong channel brands and constantly
investing in the self-production of important non-patented active ingredients. Excellent multinational non-patented crop protection
companies with high growth rate must have the following five features:
(1) Fast response and decision-making mechanism (quick response to the rapid changes in the supply-end, cost-end and market-end globally
is needed);
(2) Simple structure and low-cost rate (fierce homogeneous competition in non-patented crop protection markets will make gross profit
margin of the market channels constantly decline);
(3) Diversified and complete product portfolio for providing an integrated crop solution (not relying too much on a single product);
(4) The broad global market coverage and channel, and the construction of the brand (not relying too much on a single market, and having
a good brand channel);
(5) Be able to exert the impact on a number of important active ingredients (advanced manufacturing of important active components to
form the complete industrial chain from the factory to the farm, thus stabilizing the supply and cost advantage, and supporting further
expansion of the global market).
3. The global usage amount of different varieties changes rapidly
With the promotion of different transgenic seeds, the prohibition/ restriction policies of government, and the resistance of different varieties,
the usage amount is changing rapidly among different varieties.
(1) With the promotion of transgenic seeds, the growth rate of global use of glufosinate-ammonium and 2,4D was significantly higher than
that of other varieties in the past three years.
(2) The prohibition or restriction policies of the government have a great impact on the use of different varieties: For example, the prohibition
of paraquat in China, Brazil, Vietnam, Thailand and other markets has prompted significant increase of its alternatives varieties such as
glufosinate-ammonium and diquat; To give another example, the prohibition of chlorpyrifos in Argentina, Vietnam, the EU, Myanmar, the
United States and other markets directly has led to a significant decline in the global use of chlorpyrifos, and promoted the rapid growth of
other alternative varieties; Another example is the prohibition of chlorothalonil in the EU directly has led to the serious excess of
chlorothalonil production.
(3) The resistance changes of different varieties require the mixed use of several alternatives for the same target diseases, insects and weeds:
For example, countries such as Vietnam and Pakistan in South Asia have habitually used a single insecticide frequently and intensively,
resulting in the rapid rise of its insecticide resistance and the frequent changes of different varieties; For another example, the fungicide
resistance of Brazil to prevent soybean Asian rust changes rapidly, and it needs to be used alternately or mixed among different varieties.
The rapid change in such different varieties enables manufacturers who are relying too much on a single active ingredient to face significant
opportunities or major crises.
4. The development of crop protection products market in different regions of the world is imbalanced, the growth rate is different,
and emerging markets are growing rapidly.
In the past five years, the growth rate of the crop protection products market in different regions of the world has been different, and the
growth rate in emerging markets is faster, which is represented as follows:
(1) The Latin American region continues to grow rapidly: Latin America has become an increasingly important source of agricultural
production and supply in the world. In the past five years, Latin America has sustained rapid growth, especially in Brazil.
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Annual Report 2023 To be a Global Leading Crop Protection Company
(2) The growth rate in the Northern American market slows down: The market size of the United States and Canada is relatively stable, and
with the increase in the market share of non-patented crop protection products, competition has intensified;
(3) Steady and slow growth of the Asia-Pacific market: India, Indonesia, Bangladesh, Vietnam and other markets in the region are growing
relatively fast;
(4) The growth rate in Africa is accelerating: With the development of economy, countries in Africa increase investment in agriculture, and
the market scale of crop protection products grows rapidly;
(5) The size of the EU market is stable and slightly decreased: The EU's policy of prohibiting and restricting more and more active ingredients,
and the high product registration and maintenance costs to meet regulatory requirements have made this market less attractive due to the
high risk of registration investment and high amortization cost of intangible assets, despite its high gross profit margin. The market size in
this region is stable and continues to decline slightly, but the market for bio-pesticide and bio-stimulant will become a growth point.
5. The management regulations and policies of crop protection products in different countries worldwide are frequently adjusted
and increasingly strict
To enter the market of any country, crop protection products need to obtain a product registration certificate in that country in accordance
with relevant laws and regulations of that country. Obtaining a product registration in country A does not mean that it can be sold in country
B. That is, even the same product also needs to be sold in accordance with relevant laws and regulations of each country, to obtain the
product registration certificate in the target country. The management regulations and policies for crop protection products in various
countries around the world are frequently adjusted and increasingly strict, mainly in the following aspects:
(1) Changes in registration policies or approval fees have increased the registration costs of individual products in various countries: For
example, the adjustment of the registration policy of the imported API product of India in 2017, has made the registration fee of a single
imported technical drug directly rise from USD 20,000 to around USD 400,000 to USD 800,000 now.
(2) Registration policies are being adjusted towards high data standardization and complication, making registration more difficult: Even
countries with very loose requirements are increasingly changing from accepting public data to requiring GLP experiments reports. The types
of reports required are more and more complex, which increases the types of data required for the registration of a single product, improves
the standard, and increases the preparation time of data, and some of the data is extremely difficult to prepare professionally.
(3) The efficiency of government approval and certification is declining: In countries such as Argentina, Bangladesh, Sri Lanka, Malaysia, and
Algeria, government departments have even introduced policies limiting the annual number of product registration applications for each
applicant, resulting in slow process with prolonged cycles for new product certification in most countries.
(4) The registration process in important crop protection product markets generally takes a long time: The process takes long in the world's
important crop protection product markets such as Brazil, Argentina, Mexico, Russia, India, China, the EU and etc. In Brazil, it generally takes
5-8 years; in Russia, India, and the EU, it generally takes 4-6 years; in Argentina, Mexico, and China, it generally takes 3-5 years; in the United
States, it generally takes 2-3 years.
The above-mentioned changes in industry management regulations and policies are very beneficial to those companies that have a
registration team that registers KNOW-HOW in various markets around the world, have efficient decision-making and organizational
coordination mechanisms, and have a large number of registrations in various markets around the world.
(II) 2023 global crop protection market environment
1. Prices of bulk agricultural products remain at a reasonable median value all-time. Farmers are willing to use pesticides, and the planting
areas of agricultural products remain unabated, which means that the rigid consumption demand for pesticides by end consumers - growers
continues to be stable. According to China Customs statistics for January-December 2023, the export quantity under Customs Code 3808
rose by 10.53% year-on-year in 2023, indicating that the global market for agrochemical products remains rigid, with market demand
returning to normal.
2. Prices of the active ingredients of most crop protection products decreased during the reporting period. The Sino-Agri Price Index for APIs
was reported at 80.19 points on December 31, 2023, down 37.5% year-on-year; of the hundreds of products tracked, 92% showed a decline,
while 8% remained flat, with none of them going up. Prices of large-tonnage active ingredients such as glyphosate (-48%), glufosinate-
ammonium (-58.00%), alachlor (-56%), 2,4-D (-45%), chlorantraniliprole (-45%), prothioconazole (-64%), and pyrimethanil (-39%) dropped
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Annual Report 2023 To be a Global Leading Crop Protection Company
significantly, hitting or breaking the historical lowest level.
3. With new production capacities of pesticide active compound in China and India since the fourth quarter of 2022, coupled with the high
stockpiling inventory in various market channels due to the poor global supply and logistics over the past two years, competition in the
market has intensified, with the overall trend of oversupply. Therefore, active ingredients manufacturing will inevitably undergo the de-
production capacity and capacity optimization in the future. Manufacturers without competitive technical costs or compliance advantages
will gradually exit the market, and the concentration of the active ingredients manufacturing industry will be further increased, enabling
advantaged leading companies in active ingredients and those with brand advantages in globalized marketing channels to further expand
their market share.
(III) Outlook for the global crop protection products market in 2024
1. Prices of most active ingredients of crop protection products will continue to stabilize at the bottom. Prices of most active ingredients have
been at or even below the historical lowest level, to such an extent that no further decline is possible. However, due to the expansion and
release of pesticide production capacity in China and India over the past three years, most active ingredients will still face excess supply over
demand, meaning that their price will continue to stabilize at the bottom.
2. Products with historical low prices may experience major price fluctuations in the short term at any time along with incidental events, so
accurate decision-making and quick response in inventory management and market strategy are particularly important.
3. Market demand continues to pick up. Along with the recovery of rigid demand in large markets such as Brazil, Argentina and the United
States in the second half of the year, the demand will be significantly stronger than in the first half of the year, with continued rebound in
rigid market demand.
4. The adjustment of the competitive pattern of global head enterprises will be accelerated. First, the market share of generic crop protection
products continues to expand. Second, along with the continued expansion of the market share of generic crop protection products,
multinational big-names of generic protection products will experience accelerated growth.
II. Analysis of Core Competitiveness
1. Originating from China and serving the world - Unique business model to achieve "From Made in China to Globalization of
Chinese Brands".
In the early years after the Company's establishment, relying on the experience accumulated by the founding team in the crop protection
product industry, it participated in the global pesticide industry chain as basic manufacturers and suppliers for different active ingredients.
It achieved rapid growth and initial accumulation with the help of the rapid development of the global crop protection products market and
the wave of industrial transfer to emerging countries such as China.
With the changes in the global economic environment, the global crop protection industry is also undergoing changes. Especially after the
outbreak of the financial crisis in 2008, affected by the decline in overall market demand, the overcapacity problem of domestic
manufacturing industry was more and more prominent due to years of continuous low-level repeated production. Many products were
oversupplied and generated vicious price competition, which adversely affected the profitability of enterprises in the industry. In response
to the challenges brought about by changes in domestic and foreign economic and market environments, the Company responded quickly.
Since the second half of 2008, it began to explore and plan for the optimization and upgrading of the its sales model and development route.
The Company has gradually formed a global marketing network with "Team + Platform + Innovation" as the basic elements, combining the
traditional export mode of crop protection products with the independent overseas registration mode, and featuring a "Quick Market Access
Platform".
The core of the "Quick Market Access Platform" is to obtain the registration of a rich and complete product portfolio in each target country
and to adhere to the concept of open platform. The rich and complete product portfolio registration can provide growers with integrated
crop solutions, and the concept of open platform enables the Company to build its own local team based on the target country platform, to
carry out the B-C business model of its own brand. In addition, the Company adopts flexible way to open the platform to other excellent
partners to carry out B-B operation. Based on this open platform, the Company can rapidly expand market share through multiple channels
including the Company's self-built team and cooperation with industry partners.
In each target country, the Company adheres to the combination of the traditional export model of crop protection products and the overseas
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Annual Report 2023 To be a Global Leading Crop Protection Company
self-registration model. The Company can flexibly adjust and switch between different market roles such as suppliers, brand owners and
service providers according to changes in market scenarios and product differences. Two models promote and complement each other. The
traditional export model provides a solid customer base and market awareness for business expansion under the overseas self-registration
model. The abundant overseas self-registration not only greatly improves the Company's brand awareness, but also can better meet
customer needs with more various products and improve the intimacy with customers, which is more conducive to the development of the
Company's traditional export business.
At present, the Company's traditional export business model still accounts for a considerable proportion of revenue. In the future, with the
continuous increase of the Company's overseas self-registration quantities and the continuous improvement of the construction of the global
marketing network characterized by "fast market entry platform", the proportion of revenue of the overseas self-registration model and the
proportion of B-C revenue of self-owned brands will be further increased. In addition, the Company's profitability and capabilities to maintain
sustainable and stable growth and operation will be significantly improved, so as to achieve stable, sustainable and rapid growth.
According to the mid-term strategic plan, the Company is speeding up and increasing the investment in overseas self-registration to enrich
the product portfolio in each target country, and starting the construction of a "fast market entry platform" in more target countries. In the
meanwhile, the Company also adheres to the characteristics of "simple structure and rapid response" to accelerate the development of its
own brand B-C business in each target country. With its own strength and China's strong supply chain, the Company is striving to achieve
"From Made in China to Globalization of Chinese Brands".
2. Clear strategic plan that is firmly implemented
In 2019, based on the BLM model, with the participation of all core team members, the Company reached a consensus and determined the
mid-term strategic plan for 2020-2024 after in-depth and sufficient discussions. The mid-term strategic plan was formulated based on the
guidelines of "Persisting in doing the difficult but correct work, moving towards the forefront of industrial value chain, and building a
complete industrial chain".
After the mid-term strategic plan is completed, the Company organizes an annual review and update in the middle of each year to ensure
that the critical tasks formulated around the plan keep pace with the times. Based on the mid-term strategic plan, the Company formulates
the annual business plan, annual department work plan and personal PBC. After goal-splitting level by level, it forms a strategic plan
implementation map, summarizes, reviews and assesses the implementation every quarter, and proposes the next improvement plan to
ensure that all staff focus on strategic planning and annual work plans, and work together to achieve the goals.
3. A professional and dedicated international core team
The Company has nurtured a stable operation team. For more than 20 years, the operation team led by founding shareholders, Wicky Wang,
Sun Guoqing, Qiu Hongbing, Yuan Liangguo and Liu Yuanqiang, has focused on the sector of crop protection products. They have a profound
expertise and rich hands-on experiences with insights into segmented markets and development trends globally.
The Company's vision is "To be a Global Leading Crop Protection Company" and its mission is "All about Growing". The core values of the
Company are "Customer Oriented; Rapid Response; Constant Effort; Open and Inclusive; Together We Work; Together We Win". With the
guidance of the vision, mission and core values, and by practicing them, the Company builds cultural identities and unity of team members.
Through continuously improving positions, salaries and benefits, performances and training systems, the Company builds an international
team to facilitate global business expansion.
To fully implement the core value of "Together We Win", the Company has launched a restricted share incentive plan for excellent core
members of the operational team other than the founding shareholders in 2021. This will be an integral part of the Company's efforts in
continuously improving the combined system of positions, salaries and benefits, performances and training, with an aim to build a united
international team who will give collective efforts towards shared goals.
4. Widely covered global marketing network
The Company's business covers the world, with five manufacturing bases in Wei Fang, Qingdao (Shandong Province, China), Pingluo (Ningxia
Province, China), Argentina and Spain. The Company has set up over 100 subsidiaries overseas with its businesses in over 100 countries. With
strong global registration competence, the Company is expanding its global marketing network at high speed.
According to the Company's medium-term strategic plan (updated in 2023), in terms of the construction of "Fast Market Access Platform",
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Annual Report 2023 To be a Global Leading Crop Protection Company
the Company will complete the preliminary stage of the project in all major markets except the United States, Canada and Japan by 2024. In
addition, the Company will complete the project in all major markets between 2025 and 2029 to complete the construction of the "Fast
Market Access Platform". The Company will implement the plan for running self-branded B2C operations in at least 25 new target countries
by the end of 2024.
5. Advanced manufacturing supported by R&D innovation
The Company started to shift the focus of R&D and innovation to advanced manufacturing of single products with active ingredients in 2019.
After years of accumulation, five core capabilities have been shaped in advanced manufacturing supported by R&D and innovation:
(1) Product selection capability based on thorough understanding of the whole industry chain
Under our unique business model, we have gained thorough understanding of the whole industry chain from factory to farm, and built up
the capability of screening active ingredients in line with our characteristics and target market demands in terms of active ingredients, with
a rich R&D pipeline to ensure the sustainability of advanced manufacturing. In terms of preparations, we have formed the capability of
selecting and planning differentiated preparations oriented to the pain points of the end market, to improve the product portfolio.
(2) Resource integration capability based on industry influence and the "Open and Inclusive, Together We Win" culture
To practice the core values of "Open and Inclusive, Together We Win", we make full use of the contacts accumulated in the international
market, and actively integrate top experts and R&D teams in each specialized field from all over the world, for strong alliance. Currently, we
have built up a technical team with world-class capabilities, and cooperated closely with numerous research institutes, colleges and
universities, as well as enterprises.
(3) Process development capability based on mechanistic studies and engineering conversion capability based on process analysis
Focusing on advanced manufacturing supported by R&D and innovation, we have strengthened the research on reaction mechanisms and
laws, to upgrade our process development and engineering conversion capabilities, forming a potent team for process development and
engineering conversion. Regarding active ingredients, we have set up multiple dangerous process technology platforms, to support the
commercialization of multiple active ingredients. As for preparations development, a platform technology for the rapid development of
preparations and continuous production has taken shape, with more than 1,300 production formulations, over 900 of which have realized
engineering conversion.
(4) Flexibility to adopt different implementation standards and methods based on product and market characteristics
We classify the active ingredients reasonably from the dimensions of scale, patent, and mechanism of action, and employ different
implementation standards accordingly. We ensure the advanced manufacturing of important active ingredients with large-scale effects, the
rapid implementation of those with unique mechanisms of action and small-scale effects, and the prioritized deployment of those with large
market potential and early patent expiration dates. Different implementation standards match with self-production, customization or
combination of the two to enable rapid industrialization.
(5) Continuous improvement capability based on core technology advantages and lean manufacturing
By fully utilizing the core technology advantages and lean manufacturing experience accumulated over the years, we conduct in-depth
research on the mechanism and law of reaction regarding active ingredients, to strengthen process analysis, and continue to explore the
potential to reduce API costs. In terms of preparations, we continue to upgrade formulas to improve drug efficacy and reduce acreage costs,
thus enhancing the enduring competitiveness of our products.
6. Simple structure and rapid response based on the complete industrial chain and thorough understanding of the whole process,
originating from China and serving the world
The Company has built a complete industrial chain involving research and development of active ingredients, manufacturing, branding
towards the global market, trading channels, sales and services from the factory to the farm. The Company also has a thorough understanding
of the whole industrial chain and can make values in each section. By leveraging its own productivity, strong supply chain in China and a
global marketing network, the Company responds to changes on the supply side, cost side and global market rapidly, which features as
"simple structure, and fast response". It originates from China and serves the world.
The global marketing network enables the Company to gain insights in the market dynamics and advert risks of blind investment in R&D and
manufacturing side.
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Annual Report 2023 To be a Global Leading Crop Protection Company
The global vision, international professional teams and core values of "Open and Inclusive, Together We Win" also help the Company
successfully integrate the upstream and downstream of the global industrial chain as well as to grow rapidly in the capital market.
III. Analysis on main businesses
1. Overview
Rainbow's present medium-term strategic plan (2020-2024) was drawn under the guiding principle of "Persisting in doing the difficult but
correct things, moving towards the forefront of industrial value chain, and building a complete industrial chain". Based on this medium-term
strategic plan, the Company will continue to focus on further improving its global marketing network and enhancing advanced manufacturing
supported by R&D and innovation. Following is the summary of progresses made in these two aspects in 2023.
(I) Improving the global marketing network
1. Team building: The marketing and registration team has rapidly expanded through recruitment campaigns at domestic universities and
colleges, social recruitment and local recruitment in different countries. Especially after enhancing recruitment of local staff overseas, the
set-up and management of international teams has become more systematic and mature. We have specially designed a two-year Rainbow
Leadership Program for Chinese team members stationed overseas who need to transform their roles into business managers. With more
young staff joining the team, the Company has further enriched and optimized the marketing and registration training scheme and serial
training materials. It has successfully organized 4-month training course for new staff recruited at universities and colleges and an annual 1-
week intelligence training camp for on-the-job staff, which achieved the goal of improving unity, sharing lessons learned at work and
educating methodologies of success.
2. Market expansion: The marketing team follows through on the Company's critical tasks. While deepening the business in the existing
target markets, the team continues to expand into new markets and accelerate the improvement of the global marketing network.
(1) Completed in-depth research on markets including the United States, Canada, Mali, Guinea, Moldova, and Mongolia;
(2) Established wholly-owned or joint venture subsidiaries or offices in Australia, New Zealand, Turkey, Guyana, Ghana, Dominica, Tunisia,
and Algeria;
(3) Set up wholly-owned or joint venture local teams in Russia, Turkey, Ecuador, Cambodia, and Bangladesh, and launched local to-customers
channel construction to boost the sales performance of the brand.
3. Global registration: As the construction of the global marketing network accelerates, the Company also pays more efforts and accelerates
the global registration layout.
(1) Expanded the global registration team rapidly, from 169 team members in 2022 to more than 190 at present.
(2) Acquired new registrations in countries such as Poland, Turkey, Bosnia and Herzegovina, Azerbaijan, Tunisia, Armenia, Zimbabwe, Togo,
Madagascar, Botswana, and Namibia.
(3) Owned more than 6,000 pesticide registration certificates at home and abroad as of December 31, 2023.
The Company is accelerating the construction of global marketing network comprehensively and orderly according to the mid-term strategic
planning.
(II) Advanced manufacturing supported by R&D innovation
1. Team building: In 2023, the Company continued to step up efforts in recruiting talents through various means such as campus recruitment
and social recruitment, with the technical team expanding by 77 members, further enhancing the overall R&D capability. Meanwhile, with a
wide expertise network build through years in the international market and an international vision, the Company has actively integrated top
experts in segmented domains and further improved R&D processes. So far, the Company has preliminarily built an international technology
team with top expertise and a science-based, rigorous, effective and systematic work flow which provides strong support o successful
construction and stable operation of programs in the Company planning.
2. Project planning: Under the guidance of its medium-term strategic plan, by leveraging its advantages in sharp market acumen and full
transparent industrial chain, the Company has selected products in a systematic, rigorous and targeted way for medium-term product
planning. In terms of manufacturing active ingredients, important active ingredients with expired patents or with soon-to-expire patents
were in the process of being handled by different project teams in steady progress.
3. Progress of implementation: In terms of manufacturing active ingredients, the Company has developed and optimized processing
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Annual Report 2023 To be a Global Leading Crop Protection Company
technologies of manufacturing important active ingredients based on goals of automation, continuity and sustainability to make the
processing more refined and chemical-based. During the reporting period, 1 single-line multi-product project with a domestically pioneering
process has been put into operation; 2 projects for full-chain continuity transformation of active ingredients finished the development, with
one already under implementation while the other ready for implementation; 2 active ingredients finished the development in the second
half of 2023, and have been ready for implementation in 2024; 1 active ingredient was expected to finish the development in the second half
of 2024, and get ready for implementation in 2025; and the pilot tests of 2 active ingredients were expected to be completed in 2024.
The successful execution and stable operation of each project in the medium-term strategic planning will gradually improve the whole
industrial chain of Rainbow and provide strong support to the expansion of the global market.
(III) Operation analysis for 2023
Each task has been implemented and completed according to the medium-term strategic plan and annual work plan, but looking forward,
there are still obvious gap in the Company capacity.
1. The overall operation of the Company is in good form and order throughout the year. Each critical task has been implemented according
to the medium-term strategic plan and annual work plan. Both the progress and quality of each critical task match expectations.
2. The global market is developed in a better-than-expected speed and quality. Against the downward cycle of the industry, the Company
has firmly and substantially increased the investment in further improving the global marketing network. With in-depth market penetration
and business model optimization and upgrading, especially the better-than-expected progress in Model C, the Company enjoys a solid
foundation and a good momentum for sustained, healthy and stable growth.
3. The operation team fully leverages the advantages of "simple structure and rapid response" to calmly embrace the rapid and dramatic
changes in the market environment. Based on thorough understanding of the entire industrial chain from factory to farm, the operation
team responds quickly with accurate decision-making, effectively minimizing the business risks, and highlighting the Company's unique
competitive advantages.
4. During the Company's globalized operation, it also needs to continuously improve its capabilities, mainly including the globalized operation
capability based on an adapted management system and the capability to build an excellent end-to-end process system in line with Rainbow's
business, and guarantee the implementation of processes.
(IV) Operation outlook for 2024
Following the end of de-inventorying and the recovery of demand in various markets, as well as the orderly and smooth progress of each
critical task in the medium-term strategic plan, especially with the newly launched Model C subsidiaries embarking on their healthy and rapid
development journeys one by one over the past two years, the Company has a solid foundation and good momentum for sustained, healthy
and stable growth.
2. Incomes and costs
(1) Composition of operating incomes
Overall operating incomes
Unit: RMB
2023 2022 Year-on-year
Proportion in Proportion in increase or
Amount Amount
operating incomes operating incomes decrease
Total operating
11,484,792,643.38 100% 14,460,175,154.41 100% -20.58%
incomes
Industry
Chemical Industry 11,484,792,643.38 100.00% 14,460,175,154.41 100.00% -20.58%
By products
Major product-
8,422,644,480.51 73.34% 12,283,317,574.94 84.95% -31.43%
Herbicide
Major product-
1,543,789,001.29 13.44% 1,003,238,894.16 6.94% 53.88%
Insecticide
Major product-
1,374,579,539.96 11.97% 797,108,900.12 5.51% 72.45%
Fungicide
Major product- 97,381,873.13 0.85% 239,960,446.90 1.66% -59.42%
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Annual Report 2023 To be a Global Leading Crop Protection Company
Other
Other 46,397,748.49 0.40% 136,549,338.29 0.94% -66.02%
By regions
Foreign 11,140,007,933.22 97.00% 14,161,700,842.29 97.94% -21.34%
Domestic 344,784,710.16 3.00% 298,474,312.12 2.06% 15.52%
Distribution mode
Model A + Model B 7,600,491,696.45 66.18% 10,597,400,188.69 73.29% -28.28%
Model C 3,884,300,946.93 33.82% 3,862,774,965.72 26.71% 0.56%
(2) Industries, products, regions, and sales patterns that account for 10% or more of the Company's operating incomes or operating profits
Applicable □ Not applicable
The Company shall comply with the disclosure requirements of "related business of the chemical industry" in the Guidelines of SZSE for Self-
Discipline Regulation of Listed Companies No.3 – Industrial Information Disclosure
Unit: RMB
Year-on-year
Year-on-year Year-on-year
Operating Gross profit change of
Operating cost change of change of gross
income margin operating
operating cost profit margin
income
Industry
Chemical 11,484,792,643. 9,051,614,099.7
21.19% -20.58% -21.52% 0.95%
Industry 38 2
By products
Major product- 8,422,644,480.5 6,867,127,536.9
18.47% -31.43% -30.34% -1.27%
Herbicide 1 5
Major product- 1,543,789,001.2 1,036,124,660.6
32.88% 53.88% 34.92% 9.43%
Insecticide 9 0
Major product- 1,374,579,539.9 1,069,485,641.1
22.20% 72.45% 73.00% -0.25%
Fungicide 6 5
By regions
11,140,007,933. 8,743,099,682.0
Foreign 21.52% -21.34% -22.40% 1.08%
22 6
Distribution mode
Model A + 7,600,491,696.4 6,290,055,546.8
17.24% -28.28% -28.35% 0.08%
Model B 5 5
3,884,300,946.9 2,761,558,552.8
Model C 28.90% 0.56% 0.24% 0.23%
3 7
Main business data adjusted by the caliber at the end of the reporting period in the most recent year if the statistical caliber of the Company's
main business data has been adjusted during the reporting period
□ Applicable Not applicable
Unit: RMB
Sales price trend
Product name Production volume Sales volume Income realized during the Reason for change
reporting period
The sales price of
herbicide products
The market price of
in the second half of
Major product- herbicides
240,258 tons 247,710 tons 8,422,644,480.51 the year dropped by
Herbicide continues to
10.41% compared
decline.
to the first half of
the year.
(3) Composition of operating costs
Sector
Unit: RMB
2023 2022 Year-on-year
Sector Item Proportion in Proportion in increase or
Amount Amount decrease
operating costs operating costs
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Annual Report 2023 To be a Global Leading Crop Protection Company
Chemical 8,296,988,882.4 10,764,496,939.
Material costs 91.66% 93.33% -22.92%
Industry 1 90
Chemical Direct labor
240,895,618.81 2.66% 255,530,538.91 2.22% -5.73%
Industry costs
Chemical Manufacturing
387,029,302.50 4.28% 407,795,505.67 3.54% -5.09%
Industry costs
Chemical Transportation
126,700,296.00 1.40% 105,640,103.27 0.92% 19.94%
Industry costs
Chemical 9,051,614,099.7 11,533,463,087.
Total 100.00% 100.00% -21.52%
Industry 2 75
(4) Main sales customers and major suppliers
The Company's main sales of customers
Total sales amount of the top 5 customers(RMB) 1,348,206,768.30
Proportion of total sales amount of top 5 customers in total annual
11.74%
sales
Proportion of related party sales of top 5 customer sales in total
0.00%
annual sales
The top 5 customer information of the Company
Proportion in total sales
Serial number Customer name Sales amount (RMB)
amount of the year
1 First 468,983,441.21 4.08%
2 Second 242,250,783.26 2.11%
3 Third 235,429,065.60 2.05%
4 Fourth 203,097,106.00 1.77%
5 Fifth 198,446,372.23 1.73%
Total -- 1,348,206,768.30 11.74%
Other notes on major customers
□ Applicable Not applicable
Main suppliers of company
Total purchase amount of top 5 suppliers (RMB) 1,671,274,276.07
Proportion of total purchase amount of top 5 suppliers in total
19.50%
annual purchase
Proportion of related party purchase from top 5 suppliers in total
0.00%
annual purchase
Information of top 5 suppliers
Proportion in total purchase
Serial number Supplier name Purchase amount (RMB)
amount of the year
1 First 380,335,705.44 4.44%
2 Second 347,234,936.96 4.05%
3 Third 339,536,771.30 3.96%
4 Fourth 332,292,110.14 3.88%
5 Fifth 271,874,752.23 3.17%
Total -- 1,671,274,276.07 19.50%
3. Expenses
Unit: RMB
Year-on-year increase Notes on significant
2023 2022
or decrease changes
Mainly due to the
increase in overseas staff
remunerations,
registration fees, travel
Sales expenses 432,967,568.95 292,303,865.92 48.12%
expenses, consulting
fees and promotional
items fees during the
reporting period
Management expenses 515,227,243.83 369,515,096.10 39.43% Mainly due to the
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Annual Report 2023 To be a Global Leading Crop Protection Company
increase in overseas staff
remunerations, office
expenses, consulting
assessment expenses,
depreciation and
amortization during the
reporting period
Mainly due to the
significant decrease in
Financial expenses -37,006,582.21 -345,422,688.78 89.29%
exchange gains during
the reporting period
R&D expenditures 298,481,326.30 335,089,330.53 -10.92%
4. Cash flow
Unit: RMB
Year-on-year increase or
Item 2023 2022
decrease
Subtotal of cash inflow in
10,640,249,509.56 14,574,948,887.65 -27.00%
business activities
Subtotal of cash outflow in
11,990,624,820.92 13,204,293,479.40 -9.19%
business activities
Net cash flow from operating
-1,350,375,311.36 1,370,655,408.25 -198.52%
activities
Subtotal of cash inflow in
80,942,265.18 254,109,998.76 -68.15%
investment activities
Subtotal of cash outflow in
973,642,232.48 1,121,419,806.70 -13.18%
investment activities
Net cash flow in investment
-892,699,967.30 -867,309,807.94 -2.93%
activities
Subtotal of cash inflow in
2,993,358,639.12 870,925,420.51 243.70%
financing activities
Subtotal of cash outflow in
1,574,640,461.90 1,336,259,609.93 17.84%
financing activities
Net cash flow from financing
1,418,718,177.22 -465,334,189.42 404.88%
activities
Net increase in cash and cash
-890,508,390.70 43,760,530.28 -2,134.96%
equivalents
Explanation of the main reasons of significant changes in statistics compared with the same period last year
Applicable □ Not applicable
(1) The decrease in net cash flow from operating activities as compared with the previous year was mainly due to the increase in purchases
and payments during the reporting period in order to increase the inventories of various products, as well as the increase in employee
remunerations.
(2) The decrease in cash inflow from operating activities as compared with the previous year was mainly due to the decrease in sales income
during the reporting period, which resulted in a corresponding decrease in collected payments.
(3) The decrease in cash inflow from investing activities as compared with the previous year was mainly due to the decrease in cash received
from the recovery of investments during the reporting period.
(4) The increase in cash inflow from financing activities as compared with the previous year was mainly due to the substantial increase in
short-term bank borrowings during the reporting period.
IV. Non-major Businesses
Applicable □ Not applicable
Unit: RMB
Proportion of total Whether it is
Amount Causes
profits sustainable
Mainly due to
Investment returns -293,585,468.43 -31.22% investment losses No
resulting from disposal
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Annual Report 2023 To be a Global Leading Crop Protection Company
of derivative financial
assets
Mainly due to changes
Profits and losses of in fair value of
118,175,428.04 12.57% No
changes in fair values derivative financial
assets
Mainly due to the
accrued provision for
Asset Impairment -11,664,630.86 -1.24% inventory depreciation No
during the reporting
period
Mainly due to incomes
Non-operating income 12,413,819.18 1.32% from scrapping non- No
current assets
Mainly due to losses
Non-operating expenses 17,481,532.95 1.86% from scrapping non- No
current assets
Mainly due to the
Credit impairment -68,872,941.51 -7.32% accounts receivable No
credit impairment loss
V. Analysis on Assets and Debts
1. Significant changes in asset composition
Unit: RMB
End of 2023 Beginning of 2023 Notes on
Increase/Decrea
Proportion in Proportion in significant
Amount Amount se in proportion
total assets total assets changes
Mainly due to
the decrease in
3,271,577,916.5 3,793,952,509.1 collected
Monetary funds 21.96% 32.70% -10.74%
1 7 payments during
the reporting
period
Accounts 4,707,041,417.8 3,201,703,461.5
31.60% 27.60% 4.00%
receivable 2 3
Mainly due to
the increase in
local inventories
3,336,332,619.5 1,657,230,533.1 of some
Inventory 22.39% 14.29% 8.10%
8 2 overseas
subsidiaries
during the
reporting period
Investment real
8,512,192.20 0.06% 9,136,334.57 0.08% -0.02%
estate
Long-term
equity 1,445,021.57 0.01% 1,669,386.12 0.01% 0.00%
investment
2,008,437,417.2 1,691,830,176.4
Fixed assets 13.48% 14.58% -1.10%
8 7
Construction in
395,645,781.60 2.66% 360,840,138.91 3.11% -0.45%
progress
Assets with
14,463,991.44 0.10% 15,379,959.49 0.13% -0.03%
rights of use
Mainly due to
the increase in
2,261,455,023.9
Short-term loan 15.18% 404,206,509.66 3.48% 11.70% bank borrowings
5
during the
reporting period
Contract liability 29,592,998.73 0.20% 46,035,630.83 0.40% -0.20%
Long-term loan 77,624,331.91 0.52% 17,176,777.87 0.15% 0.37%
Lease liability 8,219,602.23 0.06% 8,595,962.05 0.07% -0.01%
Overseas assets account for a relatively high proportion
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Annual Report 2023 To be a Global Leading Crop Protection Company
□ Applicable Not applicable
2. Assets and liabilities measured in fair value
Applicable □ Not applicable
Unit: RMB ten thousand
Changes of
Changes in
gain or loss Impairment Purchase Sales
accumulativ
in fair accrued amount amount
Opening e fair values Other Ending
Item values during the during the during the
balance that are changes Balance
during the reporting reporting reporting
counted
reporting period period period
into equity
period
Financial assets
1. Trading
financial
assets
(derivative 854.27 254.27 600.00
financial
assets
excluded)
Sub-total of
financial 854.27 254.27 600.00
assets
The above
854.27 254.27 600.00
total
Financial
12,218.35 11,817.54 414.16
debts
VI. Vision of Future Development
(I). Rainbow's present medium-term strategic plan (2020-2024) was drawn under the guiding principle of "Persisting in doing the difficult but
correct work, moving towards the forefront of industrial value chain, and building a complete industrial chain". Based on this medium-term
strategic plan, the Company will continue to focus on further improving its global marketing network and enhancing advanced manufacturing
supported by R&D and innovation. Work progresses the Company has made in these two aspects in 2023 have been described in detailed in
the section of analysis on major businesses above, which will not be repeated here. The implementation plan of the Company's mid-term
strategic plan and the important work in 2024 about these two aspects are summarized as follows:
1. Firmly implement the medium-term strategic plan
In terms of improving the global marketing network, the Company plans to complete preliminary construction of the Quick Market Access
Platform in all major markets around the globe except the United States, Canada and Japan during the medium-term strategic planning stage
(by the end of 2024), and complete the construction of the Quick Market Access Platform in all major markets around the globe between
2025 and 2029. The Company will implement the plan for running self-branded B2C operations in at least 25 new target countries by the end
of 2024.
In terms of R&D and innovation-backed advanced manufacturing, the Company plans to complete advanced manufacturing of important
active ingredients towards the goals of automation, continuity and environmental protection during the medium-term strategic planning
stage (by the end of 2024). For important active ingredients whose patent period is about to expire, preliminary preparation is carried out
actively to achieve successfully advanced manufacturing during 2025-2029.
2. Critical tasks for 2024
(1) Accelerate in-depth research and business penetration in more markets, strengthen in-depth expansion of Model A/B, and build and
rapidly expand Model C/C+ in more markets, so as to ensure the maximum value of the platform, continuously upgrade business quality,
expand market share, and further improve the global marketing network.
(2) Build such a management system that adapts to the global operation, strengthen global operation capabilities, enhance corporate risk
resistance, and ensure efficient, safe and stable operations and development.
(3) Thoroughly understand the whole industrial chain from factory to farm, with quick responses and accurate decision-making, and establish
and effectively operate the procurement-and-sale collaborative mechanism with the characteristics of Rainbow.
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Annual Report 2023 To be a Global Leading Crop Protection Company
(4) Update registration planning on an annual basis, to realize order-based registration 1.0/2.0 processes, and obtain "significant value"
registrations accurately and on schedule.
(5) Establish screening, planning, scheduling and promotion systems for differentiated products to ensure their first successful
commercialization in key markets.
(6) Update preparations manufacturing planning annually, and continuously optimize and efficiently run the delivery system to ensure high
quality, fast and on-schedule delivery of orders.
Section III Company Governance
I. Employees of the Company
1. Number of employees, professional composition and education level
Number of on-the-job employees in the parent company at the end
2,034
of the reporting period (persons)
Number of on-the-job employees of major subsidiaries at the end
2,393
of the reporting period (persons)
Total number of on-the-job employees at the end of the reporting
4,427
period (persons)
Total number of employees receiving salary in the current period
4,427
(persons)
Number of retired employees (people) borne by the parent
0
company and its major subsidiaries
Professional composition
Category of professional composition Number of people of professional composition (persons)
Production personnel 2,292
Sales personnel 850
Technical personnel 547
Financial personnel 165
Administrative personnel 214
Integrated management personnel 359
Total 4,427
Education
Education Category Quantity (persons)
Doctor 5
Master 435
Undergraduate 1,466
Junior college 850
Below junior college 1,671
Total 4,427
II. The Company's profit distribution and conversion of capital reserve fund into share capital
Preparation, enforcement or adjustment of profit distribution policy, particularly the policy for cash dividend within the reporting period
Applicable □ Not applicable
During the reporting period, the Company strictly implemented the relevant provisions of the cash dividend policy and the 2022 equity
distribution plan: based on the total share capital of 277,115,744 shares as of December31, 2022, a cash dividend of RMB 16.30 (tax inclusive)
for every 10 shares was paid to all shareholders, with a total cash distribution of RMB 451,698,662.72. The remaining undistributed profits
are carried forward to the next year.
Special notes about the policy for cash dividend
Whether it is in line with the requirements of the Articles of
Yes
Association or the resolutions of the Board of Shareholders:
Whether the dividend standard and proportion are clear: Yes
Whether relevant decision-making procedures and mechanisms
Yes
are complete:
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Annual Report 2023 To be a Global Leading Crop Protection Company
Whether the independent directors fulfill their duties responsibly
Yes
and play their due roles;
In case of no cash dividend, the Company shall disclose the specific
Not applicable
reasons and the next steps proposed to enhance investor returns:
Whether the minority shareholders are provided with the
opportunity to fully voice their opinions and demands, and whether Yes
their legitimate rights and interests have been fully protected:
Whether the conditions and procedures are compliant and
Not applicable
transparent if the policy for cash dividend is adjusted or changed:
Within the reporting period, the Company's profit distribution plan and plan for conversion of capital reserve into share capital are tally with
the Company's Articles of Association and management measures for dividend.
Yes □ No □ Not applicable
The Company's profit distribution plan and the plan of conversion of capital reserve into share capital within the reporting period are in
conformity with relevant provisions of the Company's Articles of Association.
Profit distribution and conversion of capital reserve into share capital in current year
Bonus shares per 10 shares (shares) 0
Dividends per 10 shares (RMB) (tax-inclusive) 10
Transferred shares per 10 shares (shares) 0
Share capital base of the distribution plan (shares) 278,662,094.00
Cash dividend amount (RMB) (tax-inclusive) 278,662,094.00
Amount of cash dividends in other ways (such as share repurchase)
0.00
(RMB)
Total cash dividends (including other ways) (RMB) 278,662,094.00
Distributable profit (RMB) 1,966,740,756.92
Proportion of total cash dividends (including other ways) in total
100.00%
distributable profit
Details of the cash dividends distribution
If the development phase of the Company is in the growth phase and there exist material capital expenditure arrangements, when making
profit distribution, the proportion of cash dividends in this profit distribution shall be at least 20%
Details of the plan for profit distribution or capital reserve converted into share capital
Based on the total share capital of 278,662,094 shares at the end of 2023, a cash dividend of RMB 10.00 (tax inclusive) was distributed
to all shareholders for every 10 shares, and the remaining undistributed profits are carried forward to the next year. Except for the above-
mentioned cash dividend distribution, no share dividend is distributed this time, and there is no conversion of capital reserve into share
capital.
The Company was profitable during the reporting period, with positive profit available for distribution to shareholders of the parent company,
but no cash dividend distribution proposal was made.
□ Applicable Not applicable
Section IV. Financial Report
I. Audit Report
Type of Audit Opinions Standard unqualified opinion
Signing Date of the Audit Report April 24, 2024
Shangkuai Certified Public Accountants (Special General
Name of the Audit Institution
Partnership)
Audit Report Reference No. SKSBZ (2024) No. 5520
Name of CPAs Yu Renqiang, Yin Zuoyong
Text of Audit Report
Audit Report
SKSBZ (2024) No. 5520
To all shareholders of Shandong Weifang Rainbow Chemical Co., Ltd.,
I. Audit Opinions
24
Annual Report 2023 To be a Global Leading Crop Protection Company
We have audited the attached financial statements of Shandong Weifang Rainbow Chemical Co., Ltd. (hereinafter referred to as "Rainbow"),
including the consolidated and company balance sheet as of December 31, 2023, consolidated and company income statements,
consolidated and company cash flow statements, consolidated and company statements of changes in owner's equity and relevant notes to
financial statements of 2023.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with Accounting Standards for Business
Enterprises, and give a fair view of the consolidated and financial position of Rainbow as of December 31, 2023 and its consolidated operating
results and cash flow of 2023.
II. Basis for Our Opinions
We implemented audit in accordance with stipulations of the Auditing Standards for Chinese Certified Public Accountants. Our
responsibilities under those standards are further explained in the part of "CPA's Responsibilities for the Audit of the Financial Statements"
of this audit report. In accordance with the Code of Ethics for Certified Public Accountants in China, we are independent of Rainbow and
fulfill our other ethical responsibilities. We believe that the audit evidences which we have acquired are sufficient and appropriate, which
offer basis for the provision of audit opinions.
III. Key Matters to be Audited
Key matters to be audited are those that we, in our professional judgment, consider to be the most important for the audit of the financial
statements for the current period. These matters shall be addressed in the context of audit of the overall financial statements and formation
of audit opinion, and we will not express an opinion on these matters separately. Key audit matters we have identified in our audit include:
1. Income recognition
(1) Key matters to be audited
Rainbow is devoted into the research, development, production and sales of plant friendly products, i.e. pesticide active compounds and
preparations. As stated in Notes for Consolidated Financial Statements VII. 61. RMB 11,438,394,894.89 is recorded in main operating income
for 2023, with a decrease of 20.14% compared with 2022. The Company's income is a considerable amount and has seen a great decrease in
the current period. Operating income, as a key performance indicator of the Company, has inherent risk that the management manipulates
the time point of income recognition in order to achieve a specific goal or expectation. Therefore, we identify income as a key audit matter.
(2) Audit response
The main audit procedures we implement for income confirmation are as follows:
① Understand the key internal controls related to income recognition, evaluate the design of these controls, determine whether they have
been implemented, and test the operational effectiveness of relevant internal controls;
② Have knowledge of the Company's business model, obtain the Company's sales income breakdown, carry out revenue analysis procedures,
analyze income constituents and compare income, cost, gross margin and other indicators related to main products with the peer data;
③ For the Company's export income, check accounting vouchers, sales orders, delivery documents, export declarations, bills of lading, sales
invoices and other income recognition basis among major customers. For the Company's domestic sales income, check accounting vouchers,
sales contracts, delivery documents, shipment records, customer acceptance records and other income recognition basis among major
customers;
④ As per the external confirmations of accounts receivable, send income confirmation requests to selected major customers to verify the
truthfulness of the recognized incomes of the Company;
⑤ Perform a cutoff test for major earnings before and after the balance sheet date to check whether the income is recorded in the
appropriate accounting period.
2. Provisions for bad debts of accounts receivable
(1) Key matters to be audited
The ending balance of accounts receivable of Rainbow is a large amount. As stated in Notes for Consolidated Financial Statements VII. 5, as
of December 31, 2023, RMB 4,980,106,156.48 is recorded in the ending balance of accounts receivable. RMB 273,064,738.66 is recorded in
the ending balance of bad debt provision, and the amount of accounts receivable is 31.6% of total assets. The management uses significant
accounting estimates and judgments in deciding whether the credit risk of account receivable of the Company increases significantly and
25
Annual Report 2023 To be a Global Leading Crop Protection Company
measuring expected credit loss and estimated recoverable amount of account receivable. Thus, we identify the bad debt provision for
accounts receivable as a key audit matter.
(2) Audit response
The main audit procedures we have implemented for the bad debt provision for accounts receivable are as follows:
① Understand and evaluate management and internal controls related to accounts receivable management, and evaluate the design and
operational effectiveness of these internal controls;
② Analyze the rationality of the Company's accounting estimates for the bad debt provision for accounts receivable, including the basis for
determining risk feature portfolios, and the criteria used in bad debt testing for accounts receivable on an individual basis;
③ For the accounts receivable which the bad debt provisions have been made by aging, have knowledge of the Company's credit policy and
its implementation, check the collections of accounts receivable and evaluate the rationality of the bad debt provisions for accounts
receivable, by analyzing the aging of accounts receivable and customers' credibility;
④ For the accounts receivable which the bad debt provisions have been made on an individual basis, check the judgment basis of the
management's estimated future recoverable amounts, including but not limited to customers' credit records, the record of the Company's
claims made against China Export & Credit Insurance Corporation, the record of compensations received, the record of customer default or
late payment transactions, and analyze and review the rationality of the bad debt provisions that have been made on an individual basis.
IV. Other Information
The management of Rainbow is responsible for Other Information, which includes the information covered in the 2023 Annual Report of
Rainbow, but does not include the financial statements and our audit report.
Our audit opinion on the financial statements does not cover the Other Information, and we do not issue any form of verification conclusion
on Other Information.
In combination with our audit of the financial statements, our responsibility is to read the Other Information. In the process, WE consider
whether the Other Information is materially inconsistent with the financial statements or the information we learned during the audit, or
whether there is a material mis-statement.
Based on the work that we have already done, if we determine that the Other Information contains material mis-statements, we should
report the fact. In this regard, we have nothing to report.
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The management of Rainbow (hereinafter referred to as "Management") is responsible for preparing the financial statements in accordance
with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and designing, implementing and
maintaining necessary internal controls so that there are no material mis-statements caused by fraud or errors in the financial statements.
In preparing the financial statement, the management is responsible for assessing Rainbow's capability to continue as a going concern,
disclosing matters related to going concern (if applicable) and using the going concern basis of accounting, unless the management either
intends to liquidate Rainbow or to cease operations, or has no realistic alternative.
Those charged with governance are responsible for monitoring the financial reporting process of Rainbow.
VI. CPA's Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance that the financial statements as a whole are free of material misstatement due to fraud or
error, and to issue an audit report that includes our audit opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with audit standards will always detect a material mis-statement when it exists. The mis-statement
may be caused by fraud or errors. If each or all of the mis-statement could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements, it is generally deemed as material mis-statement.
We exercise professional judgment and maintain professional skepticism in carrying out our audit in accordance with audit standards. At the
same time, we also do the following work:
1. Identify and assess the risks of material mis-statement of the financial statements due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material mis-statement resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery,
26
Annual Report 2023 To be a Global Leading Crop Protection Company
intentional omissions, mis-representations, or the override of internal control.
2. Understand the internal controls related to auditing, in order to design appropriate audit procedures.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management of Rainbow.
4. Conclude on the appropriateness of using the going concern assumption by the management of Rainbow. At the same time, based on the
audit evidence obtained, a conclusion shall be drawn on whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the ability of Rainbow to continue as a going concern. If we conclude that a material uncertainty exists, according to
audit standards, we are required to draw attention in our audit report of related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion.]If we conclude that there is material uncertainty, the audit standards require us to
bring relevant disclosures in our audit report, in order to draw the attention of the financial statements users .If disclosure is inadequate, we
should express unqualified opinions. Our conclusion is based on the information available as of the audit report date. However, future events
or conditions may cause Rainbow to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and evaluate whether the
financial statements fairly reflect relevant transactions and events.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of Rainbow in entities and business activities to
express an audit opinion on the consolidated financial statements. We are responsible for guidance, supervision and implementation of the
group audit and take full responsibility for the audit opinions.
We have communicated with those charged with governance regarding the planned scope and schedule of the audit, and significant audit
matters, including any significant audit deficiencies in internal control that we identify during our audit.
We have also provided declarations to those charged with governance that we have complied with professional ethics requirements relating
to independence, and communicated with them all relationships and other matters that may reasonably be considered to affect our
independence, as well as relevant preventive measures (where appropriate).
For the matters communicated with those charged with governance, we determine which matters are most important to the audit of the
financial statements for the current period, and thus constituted the key audit matters. We describe these matters in our audit report, unless
the public disclosure of these matters is prohibited by laws and regulations, or in rare cases, if it is reasonably expected that the negative
consequences caused by communication of certain matters in our audit report outweigh benefits generated in public interest, we confirm
that such matters should not be communicated in our audit reports.
Shangkuai Certified Public Accountants (Special General Partnership) Chinese Certified Public Accountant
(Engagement Partner)
Chinese Certified Public Accountant
Shanghai, China April 24, 2024
II. Financial Statements
The currency of the statements in the financial notes is: RMB
1. Consolidated balance sheet
Prepared by: Shandong Weifang Rainbow Chemical Co., Ltd.
December 31, 2023
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary funds 3,271,577,916.51 3,793,952,509.17
Deposit reservation for balance
Lending to banks and other financial
institutions
Financial assets held for trading 6,000,000.00 8,542,688.56
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Annual Report 2023 To be a Global Leading Crop Protection Company
Derivative financial assets
Notes receivable 55,955,879.66 59,112,584.14
Accounts receivable 4,707,041,417.82 3,201,703,461.53
Receivables financing 500,000.00 680,000.00
Pre-payments 129,020,462.65 75,294,804.30
Premium receivable
Re-insurance accounts receivable
Reserves for re-insurance contract
receivable
Other receivables 44,646,181.87 33,525,890.70
Including.: interest receivable
Dividends receivable
Financial assets purchased under resale
agreement
Inventory 3,336,332,619.58 1,657,230,533.12
Contracted assets
Assets held for sale
Non-current assets that mature within one
year
Other current assets 329,901,506.56 184,823,557.40
Total current assets 11,880,975,984.65 9,014,866,028.92
Non-current assets:
Disbursed loans and advances
Debt investments
Other debt investment
Long-term receivables
Long-term equity investment 1,445,021.57 1,669,386.12
Other equity instrument investment
Other non-current financial assets
Investment real estate 8,512,192.20 9,136,334.57
Fixed assets 2,008,437,417.28 1,691,830,176.47
Construction in progress 395,645,781.60 360,840,138.91
Productive biological assets
Oil and gas assets
Assets with rights of use 14,463,991.44 15,379,959.49
Intangible assets 214,122,877.97 226,245,165.26
Development expenditure 36,791,601.49
Goodwill 94,866,025.56 94,866,025.56
Long-term deferred expenses 34,125,613.10 31,898,939.40
Deferred income tax assets 117,262,810.63 84,605,109.39
Other non-current assets 91,304,780.64 69,616,034.81
Total non-current assets 3,016,978,113.48 2,586,087,269.98
Total assets 14,897,954,098.13 11,600,953,298.90
Current liabilities:
Short-term loan 2,261,455,023.95 404,206,509.66
Borrowings from the central bank
Borrowing from banks and financial
institutions
Financial liabilities held for trading
Derivative financial liabilities 4,141,579.45 122,183,523.97
Notes payable 4,057,148,069.12 3,367,152,536.58
Accounts payable 1,096,628,295.09 753,042,513.89
Advance receipts 232,358.87 254,920.26
Contract liability 29,592,998.73 46,035,630.83
Financial assets sold for repurchase
Deposits and interbank deposits received
Amount received from agency trading of
securities
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Annual Report 2023 To be a Global Leading Crop Protection Company
Amount received from agency underwriting
of securities
Payroll payable 218,457,162.23 191,738,722.30
Taxes payable 77,730,510.55 106,896,314.07
Other payables 81,107,290.26 43,899,535.81
Including: Interests payable
Dividends payable
Charges and commissions payable
Re-insurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 9,623,075.76 21,399,902.40
Other current liabilities 57,442,707.33 59,862,778.90
Total current liabilities 7,893,559,071.34 5,116,672,888.67
Non-current liabilities:
Provision for insurance contracts
Long-term loan 77,624,331.91 17,176,777.87
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liability 8,219,602.23 8,595,962.05
Long-term payables
Long-term payroll payable
Accrued liabilities
Deferred income 11,713,887.21 13,755,569.25
Deferred income tax liabilities 67,145,243.72 57,673,208.16
Other non-current liabilities
Total non-current liabilities 164,703,065.07 97,201,517.33
Total liabilities 8,058,262,136.41 5,213,874,406.00
Owner’s equity:
Share capital 278,662,094.00 277,115,744.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2,382,932,252.27 2,301,293,600.92
Less: Treasury stock
Other comprehensive income -53,797,771.67 5,821,782.13
Special reserve 38,596,260.53 19,551,007.62
Surplus reserve 158,674,657.07 158,674,657.07
General risk reserve
Undistributed profit 3,741,086,359.04 3,421,664,259.91
Total owners' equity attributed to parent
6,546,153,851.24 6,184,121,051.65
company
Minority shareholder’s interest 293,538,110.48 202,957,841.25
Total owner’s equity 6,839,691,961.72 6,387,078,892.90
Total liabilities and owners’ equity 14,897,954,098.13 11,600,953,298.90
Legal Representative: Wicky Wang Chief Accountant in Charge: Xing Bingpeng Chief of Accounting Institution: Zhang Baolin
2. Balance sheet of the parent company
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary funds 2,068,062,646.26 2,592,754,067.74
Financial assets held for trading
Derivative financial assets
Notes receivable 8,126,473.00 74,053,690.88
Accounts receivable 4,702,695,819.76 3,001,894,514.80
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Annual Report 2023 To be a Global Leading Crop Protection Company
Receivables financing 500,000.00 600,000.00
Pre-payments 128,913,766.54 43,980,754.21
Other receivables 827,880,813.07 991,789,825.67
Including.: interest receivable
Dividends receivable
Inventory 734,862,014.63 622,588,496.95
Contracted assets
Assets held for sale
Non-current assets that mature within one
year
Other current assets 103,249,615.62 47,282,239.64
Total current assets 8,574,291,148.88 7,374,943,589.89
Non-current assets:
Debt investments
Other debt investment
Long-term receivables
Long-term equity investment 624,541,993.45 613,683,635.19
Other equity instrument investment
Other non-current financial assets
Investment real estate
Fixed assets 970,475,370.21 763,503,751.45
Construction in progress 212,411,472.76 216,753,391.79
Productive biological assets
Oil and gas assets
Assets with rights of use 10,618,846.96 12,297,044.43
Intangible assets 39,286,592.63 41,495,120.64
Development expenditure 36,742,669.45
Goodwill
Long-term deferred expenses 3,428,134.55
Deferred income tax assets 23,421,436.66 41,738,009.89
Other non-current assets 42,380,243.97 38,667,219.91
Total non-current assets 1,963,306,760.64 1,728,138,173.30
Total assets 10,537,597,909.52 9,103,081,763.19
Current liabilities:
Short-term loan 1,530,311,475.46 147,040,732.40
Financial liabilities held for trading
Derivative financial liabilities 116,668,962.10
Notes payable 3,173,804,324.86 2,722,206,699.86
Accounts payable 621,509,251.91 669,901,497.16
Advance receipts 3,984.00
Contract liability 8,721,263.54 42,531,647.79
Payroll payable 144,232,179.83 127,910,809.91
Taxes payable 3,769,917.28 28,993,999.52
Other payables 180,960,439.96 172,095,494.72
Including: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 8,261,043.80 19,530,820.50
Other current liabilities 9,385,795.08 74,169,590.61
Total current liabilities 5,680,955,691.72 4,121,054,238.57
Non-current liabilities:
Long-term loan 3,813,993.66
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liability 4,862,142.34 6,794,107.92
Long-term payables
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Annual Report 2023 To be a Global Leading Crop Protection Company
Long-term payroll payable
Accrued liabilities
Deferred income 1,474,705.66 1,880,107.78
Deferred income tax liabilities 43,494,641.66 36,970,045.09
Other non-current liabilities
Total non-current liabilities 49,831,489.66 49,458,254.45
Total liabilities 5,730,787,181.38 4,170,512,493.02
Owner’s equity:
Share capital 278,662,094.00 277,115,744.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2,389,729,206.17 2,307,349,954.34
Less: Treasury stock
Other comprehensive income
Special reserve 13,004,013.98
Surplus reserve 158,674,657.07 158,674,657.07
Undistributed profit 1,966,740,756.92 2,189,428,914.76
Total owner’s equity 4,806,810,728.14 4,932,569,270.17
Total liabilities and owners’ equity 10,537,597,909.52 9,103,081,763.19
3. Consolidated income statement
Unit: RMB
Item 2023 2022
I. Gross Operating Income 11,484,792,643.38 14,460,175,154.41
Including: Operating income 11,484,792,643.38 14,460,175,154.41
Interest income
Premium earned
Handling charges and commissions income
II. Total Operating Costs 10,290,668,713.77 12,202,936,725.77
Including: Costs of business 9,051,614,099.72 11,533,463,087.75
Interest expenses
Handling charges and commission expenses
Surrender value
Net payments for insurance claims
Net withdrawal of reserve for insurance
responsibility contracts
Expenditures of policy dividend
Re-insurance expense
Taxes and surcharges 29,385,057.18 17,988,034.25
Sales expenses 432,967,568.95 292,303,865.92
Management expenses 515,227,243.83 369,515,096.10
R&D expenditures 298,481,326.30 335,089,330.53
Financial expenses -37,006,582.21 -345,422,688.78
Including: Interest expenses 64,196,305.12 24,117,176.10
Interest income 44,863,783.93 54,422,900.37
Add: Other incomes 7,417,858.89 12,059,027.93
Income from investment (“－” for loss) -293,585,468.43 -259,460,460.87
Including: Income from investment in
-224,364.55 -141,152.57
associated enterprises and joint ventures
Income recognized at termination of
financial assets measured at amortized cost
Foreign exchange gain ("-" fro loss)
Net exposure hedging income ("-" for loss)
Income from changes in fair value ("-" for
118,175,428.04 -171,103,311.09
loss)
Credit impairment losses ("-" for loss) -68,872,941.51 -56,341,452.37
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Annual Report 2023 To be a Global Leading Crop Protection Company
Asset impairment losses ("-" for loss) -11,664,630.86 -6,825,463.24
Gains from asset disposal ("-" for loss) -149,423.81 -22,810.39
III. Operating Profit ("-" for loss) 945,444,751.93 1,775,543,958.61
Add: Non-operating income 12,413,819.18 6,419,294.11
Less: Non-operating expenses 17,481,532.95 29,320,723.84
IV. Total Profit Before Tax (“-” for total
940,377,038.16 1,752,642,528.88
losses)
Less: Income tax expenses 90,267,060.96 265,083,504.97
V. Net Profit ("-" for net loss) 850,109,977.20 1,487,559,023.91
(I) Classification by business continuity
1. Net profit from continuing operations
850,109,977.20 1,487,559,023.91
(“-” for net loss)
2. Net profit from discontinued operations
(“-” for net loss)
(II) Classification by ownership
1. Net profit attributed to the shareholders
771,120,761.85 1,413,285,697.62
of the parent company
2. Profit or loss of minority shareholders 78,989,215.35 74,273,326.29
VI. Net Amount after Tax of Other
-42,731,664.90 27,082,329.50
Comprehensive Income
Net amount of other comprehensive
income after tax attributed to the owners of -59,619,553.80 12,212,537.59
parent company
(I) Other comprehensive income that
cannot be reclassified into profit or loss
1. Changes due to re-measurement on
defined benefit plan
2. Other comprehensive income that
cannot be converted into profit and loss
under the equity method
3. Changes in fair value of other equity
instrument investments
4. Changes in the fair value of the credit risk
of the enterprise
5. Other
(ii) Other comprehensive income that will
-59,619,553.80 12,212,537.59
be reclassified into profit and loss
1. Other comprehensive income that can be
converted to profit or loss under the equity
method
2. Changes in fair value for other
investment on bonds
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
creditor's rights investment
5. Cash flow hedge reserve
6. Difference of foreign currency financial
-59,619,553.80 12,212,537.59
statement translation
7. Other
Net amount of other comprehensive
income after tax attributed to minority 16,887,888.90 14,869,791.91
shareholders
VII. Total Comprehensive Income 807,378,312.30 1,514,641,353.41
Total comprehensive income attributed to
711,501,208.05 1,425,498,235.21
parent company owners
Total comprehensive income attributed to
95,877,104.25 89,143,118.20
minority shareholders
VIII. Earnings per Share
(i) Basic earnings per share 2.78 5.12
(ii) Diluted earnings per share 2.77 5.07
For business combination under the same control in the current period, the net profit of the merged party before the business combination
32
Annual Report 2023 To be a Global Leading Crop Protection Company
is RMB , and the net profit of the merged party in the previous period is RMB .
Legal Representative: Wicky Wang Chief Accountant in Charge: Xing Bingpeng Chief of Accounting Institution: Zhang Baolin
4. Income statement of the parent company
Unit: RMB
Item 2023 2022
I. Operating income 8,250,668,576.93 10,898,944,871.36
Less: Operating costs 7,221,103,435.49 9,051,094,701.33
Taxes and surcharges 9,050,505.18 8,747,822.70
Sales expenses 195,113,669.61 169,384,380.28
Management expenses 183,209,297.23 181,295,004.00
R&D expenditures 247,628,334.62 270,285,580.17
Financial expenses -10,657,645.58 -326,787,190.26
Including: Interest expenses 25,369,120.49 16,176,626.76
Interest income 31,601,498.05 45,590,272.52
Add: Other incomes 2,656,907.46 5,536,230.04
Income from investment (“－” for loss) -252,497,791.88 -145,802,780.09
Including: Income from investment in
-224,364.55 -141,152.57
associated enterprises and joint ventures
Income from derecognition of financial
assets at amortized cost ("-" for loss)
Net exposure hedging income ("-" for loss)
Income from changes in fair value ("-" for
116,668,962.10 -146,324,871.10
loss)
Credit impairment losses ("-" for loss) -6,063,749.10 310,322.99
Asset impairment losses ("-" for loss) -6,756,567.89 -1,169,553.81
Gains from asset disposal ("-" for loss) -202,786.44 -135,392.79
II. Operating profits ("-" for Losses) 259,025,954.63 1,257,338,528.38
Add: Non-operating income 4,394,092.97 2,565,108.48
Less: Non-operating expenses 7,838,844.12 20,597,197.47
III. Total profits ("-" for total losses) 255,581,203.48 1,239,306,439.39
Less: Income tax expenses 26,570,698.60 167,574,637.88
IV. Net profits ("-" for net losses) 229,010,504.88 1,071,731,801.51
(1) Net profits from continuing operations
229,010,504.88 1,071,731,801.51
("-" for net losses)
(2) Net profits from discontinued
operations ("-" for net losses)
V. Net amount of other comprehensive
incomes after tax
(I) Other comprehensive income that
cannot be reclassified into profit or loss
1. Changes due to re-measurement on
defined benefit plan
2. Other comprehensive income that
cannot be converted into profit and loss
under the equity method
3. Changes in fair value of other equity
instrument investments
4. Changes in the fair value of the credit risk
of the enterprise
5. Other
(ii) Other comprehensive income that will
be reclassified into profit and loss
1. Other comprehensive income that can be
converted to profit or loss under the equity
method
2. Changes in fair value for other
investment on bonds
33
Annual Report 2023 To be a Global Leading Crop Protection Company
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
creditor's rights investment
5. Cash flow hedge reserve
6. Difference of foreign currency financial
statement translation
7. Other
VI. Total comprehensive income 229,010,504.88 1,071,731,801.51
VII. earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item 2023 2022
I. Cash Flows Generated from Operating
Activities:
Cash received from sales of goods and
9,629,482,775.97 13,572,480,618.90
services
Net increase in deposit from customers and
interbank
Net increase in borrowing from central
bank
Net increase in borrowings from other
financial institutions
Cash receipts from premiums under direct
insurance contracts
Net cash receipts from re-insurance
business
Net cash receipts from policyholders'
deposits and investments
Cash receipts from interest, handling fees
and commissions
Net increase in capital borrowed from
banks and other financial institutions
Net increase in repurchase business capital
Net cash received from securities trading
brokerage
Cash receipts from tax refunds 900,056,609.14 930,849,321.41
Cash received relating to other operating
110,710,124.45 71,618,947.34
activities
Subtotal of cash inflow in business activities 10,640,249,509.56 14,574,948,887.65
Cash payments for goods acquired and
10,052,446,201.34 11,389,552,441.41
services received
Net increase in customer loans and
advances
Net increase in deposits in central bank and
interbank
Cash payments for original insurance
contract claims
Net increase in lending funds from banks
and other financial institutions
Cash payments for interest, fee and
commission
Cash payments for insurance policyholder
dividends
Cash payments to employees and on behalf
817,790,399.46 587,155,777.58
of employees
Cash payments for taxes 440,126,045.60 594,564,409.51
Other cash payments relating to operating
680,262,174.52 633,020,850.90
activities
34
Annual Report 2023 To be a Global Leading Crop Protection Company
Subtotal of cash outflow in business
11,990,624,820.92 13,204,293,479.40
activities
Net cash flow from operating activities -1,350,375,311.36 1,370,655,408.25
II. Cash Flows from Investing Activities:
Cash receipts from investment withdrawal 200,000,000.00
Cash receipts from return on investments
Net cash receipts from disposals of fixed
assets, intangible assets and other long- 36,302,257.22 12,692,146.84
term assets
Net cash receipts from disposal of
subsidiary or any other business unit
Other cash receipts relating to investing
44,640,007.96 41,417,851.92
activities
Subtotal of cash inflow in investment
80,942,265.18 254,109,998.76
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long- 638,317,292.72 596,726,880.36
term assets
Cash payments for investment 6,000,000.00
Net increase in pledged loans
Net cash payments to acquire subsidiary
219,654,452.37
and other business units
Other cash payments relating to investment
335,324,939.76 299,038,473.97
activities
Subtotal of cash outflow in investment
973,642,232.48 1,121,419,806.70
activities
Net cash flow in investment activities -892,699,967.30 -867,309,807.94
III. Cash Flows from Financing Activities:
Cash received from capital contributions 39,583,744.23 22,670,360.71
Including: Cash received from investment of
minority shareholder from subsidiary
Cash receipts from borrowings 2,953,774,894.89 848,255,059.80
Other cash receipts relating to financing
activities
Subtotal of cash inflow in financing
2,993,358,639.12 870,925,420.51
activities
Cash repayments of borrowings 1,056,659,534.33 1,075,430,244.63
Cash payments for distribution of
dividends, profits, or cash payments for 505,728,255.32 254,002,907.78
interest expenses
Including: Dividends and profits paid to
minority shareholders by subsidiaries
Other cash paid related to financing
12,252,672.25 6,826,457.52
activities
Subtotal of cash outflow in financing
1,574,640,461.90 1,336,259,609.93
activities
Net cash flow from financing activities 1,418,718,177.22 -465,334,189.42
IV. Effect of Exchange Rate Changes on Cash
-66,151,289.26 5,749,119.39
and Cash Equivalents
V. Net Increase in Cash and Cash
-890,508,390.70 43,760,530.28
Equivalents
Add: Beginning balance of cash and cash
2,076,062,785.79 2,032,302,255.51
equivalents
VI. Closing Balance of Cash and Cash
1,185,554,395.09 2,076,062,785.79
Equivalents
6. Cash flow statement of the parent company
Unit: RMB
Item 2023 2022
I. Cash Flows Generated from Operating
Activities:
Cash received from sales of goods and 6,531,185,540.84 10,010,254,125.54
35
Annual Report 2023 To be a Global Leading Crop Protection Company
services
Cash receipts from tax refunds 697,641,835.50 813,511,891.11
Cash received relating to other operating
36,627,191.57 53,401,154.77
activities
Subtotal of cash inflow in business activities 7,265,454,567.91 10,877,167,171.42
Cash payments for goods acquired and
7,615,312,682.86 8,945,150,619.42
services received
Cash payments to employees and on behalf
465,918,300.45 356,241,205.92
of employees
Cash payments for taxes 81,377,650.09 200,092,671.75
Other cash payments relating to operating
182,516,895.69 764,785,985.20
activities
Subtotal of cash outflow in business
8,345,125,529.09 10,266,270,482.29
activities
Net cash flow from operating activities -1,079,670,961.18 610,896,689.13
II. Cash Flows from Investing Activities:
Cash receipts from investment withdrawal 200,000,000.00
Cash receipts from return on investments
Net cash receipts from disposals of fixed
assets, intangible assets and other long- 10,054,016.36 9,715,487.87
term assets
Net cash receipts from disposal of
subsidiary or any other business unit
Other cash receipts relating to investing
45,465,313.43 32,997,396.18
activities
Subtotal of cash inflow in investment
55,519,329.79 242,712,884.05
activities
Cash payments to acquire or construct fixed
assets, intangible assets and other long- 317,468,481.70 329,896,591.09
term assets
Cash payments for investment 8,360,000.00
Net cash payments to acquire subsidiary
and other business units
Other cash payments relating to investment
297,738,740.76 178,659,023.70
activities
Subtotal of cash outflow in investment
615,207,222.46 516,915,614.79
activities
Net cash flow in investment activities -559,687,892.67 -274,202,730.74
III. Cash Flows from Financing Activities:
Cash received from capital contributions 40,861,256.71 22,670,360.71
Cash receipts from borrowings 2,270,808,937.88 686,011,461.39
Other cash receipts relating to financing
activities
Subtotal of cash inflow in financing
2,311,670,194.59 708,681,822.10
activities
Cash repayments of borrowings 911,187,229.23 1,025,875,435.97
Cash payments for distribution of
dividends, profits, or cash payments for 469,046,900.15 247,070,974.89
interest expenses
Other cash paid related to financing
10,243,374.35 5,545,804.45
activities
Subtotal of cash outflow in financing
1,390,477,503.73 1,278,492,215.31
activities
Net cash flow from financing activities 921,192,690.86 -569,810,393.21
IV. Effect of Exchange Rate Changes on Cash
-11,044,754.63 48,103,622.66
and Cash Equivalents
V. Net Increase in Cash and Cash
-729,210,917.62 -185,012,812.16
Equivalents
Add: Beginning balance of cash and cash
1,201,820,433.48 1,386,833,245.64
equivalents
VI. Closing Balance of Cash and Cash
472,609,515.86 1,201,820,433.48
Equivalents
36
Annual Report 2023 To be a Global Leading Crop Protection Company
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: RMB
2023
Equity attributed to owners of the parent company
Other equity Othe Mino
instruments r rity Total
Gene Undi shar own
Item Shar Capit Less: com Speci Surpl
ral strib
e Prefe Perp al Treas preh al us Othe Subt ehol er’s
risk uted der’s equit
capit rred etual Othe reser ury ensiv reser reser r otal
reser profi
al shar bond r ve stock e ve ve inter y
ve t est
es s inco
me
I.
Balan
ce at
the
end 277, 2,30 19,5 158, 3,42 6,184 202, 6,38
5,82
of 115, 1,29 51,0 674, 1,80 ,265, 957, 7,22
1,78
the 744. 3,60 07.6 657. 8,37 166.5 841. 3,00
2.13
perio 00 0.92 2 07 4.82 6 25 7.81
d of
previ
ous
year:
Add:
Chan
ges
- -
in -
144, 144,
acco 144,1
114. 114.
untin 14.91
91 91
g
polici
es
Corre
ction
of
error
s
from
previ
ous
perio
d
Othe
r
II.
Open
ing
277, 2,30 19,5 158, 3,42 6,184 202, 6,38
balan 5,82
115, 1,29 51,0 674, 1,66 ,121, 957, 7,07
ce of 1,78
744. 3,60 07.6 657. 4,25 051.6 841. 8,89
the 2.13
00 0.92 2 07 9.91 5 25 2.90
curre
nt
year
III.
Chan
ges
-
in 81,6 19,0 319, 90,5 452,
1,54 59,6 362,0
Curre 38,6 45,2 422, 80,2 613,
6,35 19,5 32,79
nt 51.3 52.9 099. 69.2 068.
0.00 53.8 9.59
Perio 5 1 13 3 82
0
d (“-”
for
decr
37
Annual Report 2023 To be a Global Leading Crop Protection Company
ease)
(I)
Total
-
com 771, 95,8 807,
59,6 711,5
preh 120, 77,1 378,
19,5 01,20
ensiv 761. 04.2 312.
53.8 8.05
e 85 5 30
0
inco
me
(II)
Capit
al
contr
ibuti 81,6 83,1
1,54 83,18
on 38,6 85,0
6,35 5,001
and 51.3 01.3
0.00 .35
redu 5 5
ction
by
owne
rs
1.
Ordi
nary
share 39,3 40,8
1,54 40,86
s 14,9 61,2
6,35 1,256
inves 06.7 56.7
0.00 .71
ted 1 1
by
owne
rs
2.
Capit
al
contr
ibute
d
from
other
equit
y
instr
ume
nt
hold
ers
3.
Amo
unts
of
share
-
base
42,3 42,3
d 42,32
23,7 23,7
paym 3,744
44.6 44.6
ents .64
4 4
recog
nized
in
owne
rs'
equit
y
4.
Othe
r
38
Annual Report 2023 To be a Global Leading Crop Protection Company
(III) - -
- -
Profit 451, 456,
451,6 5,29
distri 698, 995,
98,66 6,83
butio 662. 497.
2.72 5.02
n 72 74
1.
Appr
opria
tion
of
surpl
us
reser
ve
2.
Appr
opria
tion
of
gene
ral
risk
reser
ve
3.
Distri
butio - -
- -
n to 451, 456,
451,6 5,29
owne 698, 995,
98,66 6,83
rs (or 662. 497.
2.72 5.02
share 72 74
hold
ers)
4.
Othe
r
(IV)
Inter
nal
carry
-over
of
owne
rs'
equit
y
1.
Capit
al
reser
ve
conv
erted
into
capit
al (or
share
capit
al)
2.
Surpl
us
reser
ve
conv
erted
into
39
Annual Report 2023 To be a Global Leading Crop Protection Company
capit
al (or
share
capit
al)
3.
Reco
very
of
losse
s by
surpl
us
reser
ves
4.
Carry
-over
retai
ned
earni
ngs
from
defin
ed
bene
fit
plan
chan
ges
5.
Carry
-over
retai
ned
earni
ngs
from
other
com
preh
ensiv
e
inco
me
6.
Othe
r
(V)
19,0 19,0
Speci 19,04
45,2 45,2
al 5,252
52.9 52.9
reser .91
1 1
ves
1.
With
draw
45,0 45,6
al in 45,01 641,
16,1 57,5
the 6,172 362.
72.4 34.7
curre .41 38
1 9
nt
perio
d
2. - -
- -
Use 25,9 26,6
25,97 641,
in 70,9 12,2
0,919 362.
the 19.5 81.8
.50 38
curre 0 8
40
Annual Report 2023 To be a Global Leading Crop Protection Company
nt
perio
d
(VI)
Othe
r
IV.
Balan
ce at
the -
278, 2,38 38,5 158, 3,74 6,546 293, 6,83
end 53,7
662, 2,93 96,2 674, 1,08 ,153, 538, 9,69
of 97,7
094. 2,25 60.5 657. 6,35 851.2 110. 1,96
the 71.6
00 2.27 3 07 9.04 4 48 1.72
curre 7
nt
perio
d
Amount in the previous period
Unit: RMB
2022
Equity attributed to owners of the parent company
Other equity Othe Mino
instruments r rity Total
Gene Undi
Item Shar Capit Less: com Speci Surpl shar own
ral strib ehol er’s
e Prefe Perp al Treas preh al us Othe Subt
risk uted
capit rred etual Othe reser ury ensiv reser reser r otal der’s equit
reser profi inter y
al shar bond r ve stock e ve ve
ve t
es s inco est
me
I.
Balan
ce at
the
end 276, 2,22 - 14,7 158, 2,23 4,908 134, 5,04
of 180, 6,84 6,39 83,4 674, 8,62 ,724, 379, 3,10
the 000. 8,87 0,75 85.6 657. 8,03 302.7 479. 3,78
perio 00 8.76 5.46 3 07 6.71 1 89 2.60
d of
previ
ous
year:
Add:
Chan
ges
- -
in -
191, 191,
acco 191,5
534. 534.
untin 34.42
42 42
g
polici
es
Corre
ction
of
error
s
from
previ
ous
perio
d
Othe
r
II. 276, 2,22 - 14,7 158, 2,23 4,908 134, 5,04
Open 180, 6,84 6,39 83,4 674, 8,43 ,532, 379, 2,91
41
Annual Report 2023 To be a Global Leading Crop Protection Company
ing 000. 8,87 0,75 85.6 657. 6,50 768.2 479. 2,24
balan 00 8.76 5.46 3 07 2.29 9 89 8.18
ce of
the
curre
nt
year
III.
Chan
ges
in
74,4 12,2 1,18 1,275 68,5 1,34
Curre 935, 4,76
44,7 12,5 3,22 ,588, 78,3 4,16
nt 744. 7,52
22.1 37.5 7,75 283.3 61.3 6,64
Perio 00 1.99
6 9 7.62 6 6 4.72
d (“-”
for
decr
ease)
(I)
Total
com 12,2 1,41 1,425 89,1 1,51
preh 12,5 3,28 ,498, 43,1 4,64
ensiv 37.5 5,69 235.2 18.2 1,35
e 9 7.62 1 0 3.41
inco
me
(II)
Capit
al
contr
ibuti 74,4 75,3
935, 75,38
on 44,7 80,4
744. 0,466
and 22.1 66.1
00 .16
redu 6 6
ction
by
owne
rs
1.
Ordi
nary
share 21,7 22,6
935, 22,67
s 34,6 70,3
744. 0,360
inves 16.7 60.7
00 .71
ted 1 1
by
owne
rs
2.
Capit
al
contr
ibute
d
from
other
equit
y
instr
ume
nt
hold
ers
3. 52,7 52,7
52,71
Amo 10,1 10,1
0,105
unts 05.4 05.4
.45
of 5 5
42
Annual Report 2023 To be a Global Leading Crop Protection Company
share
-
base
d
paym
ents
recog
nized
in
owne
rs'
equit
y
4.
Othe
r
(III) - - -
-
Profit 230, 20,5 250,
230,0
distri 057, 64,7 622,
57,94
butio 940. 56.8 696.
0.00
n 00 4 84
1.
Appr
opria
tion
of
surpl
us
reser
ve
2.
Appr
opria
tion
of
gene
ral
risk
reser
ve
3.
Distri
butio - - -
-
n to 230, 20,5 250,
230,0
owne 057, 64,7 622,
57,94
rs (or 940. 56.8 696.
0.00
share 00 4 84
hold
ers)
4.
Othe
r
(IV)
Inter
nal
carry
-over
of
owne
rs'
equit
y
1.
Capit
al
reser
ve
43
Annual Report 2023 To be a Global Leading Crop Protection Company
conv
erted
into
capit
al (or
share
capit
al)
2.
Surpl
us
reser
ve
conv
erted
into
capit
al (or
share
capit
al)
3.
Reco
very
of
losse
s by
surpl
us
reser
ves
4.
Carry
-over
retai
ned
earni
ngs
from
defin
ed
bene
fit
plan
chan
ges
5.
Carry
-over
retai
ned
earni
ngs
from
other
com
preh
ensiv
e
inco
me
6.
Othe
r
(V) 4,76 4,767 4,76
Speci 7,52 ,521. 7,52
al 1.99 99 1.99
44
Annual Report 2023 To be a Global Leading Crop Protection Company
reser
ves
1.
With
draw
36,2 36,8
al in 36,20 654,
02,0 56,7
the 2,063 659.
63.1 22.6
curre .12 51
2 3
nt
perio
d
2.
Use
- -
in - -
31,4 32,0
the 31,43 654,
34,5 89,2
curre 4,541 659.
41.1 00.6
nt .13 51
3 4
perio
d
(VI)
Othe
r
IV.
Balan
ce at
the
277, 2,30 19,5 158, 3,42 6,184 202, 6,38
end 5,82
115, 1,29 51,0 674, 1,66 ,121, 957, 7,07
of 1,78
744. 3,60 07.6 657. 4,25 051.6 841. 8,89
the 2.13
00 0.92 2 07 9.91 5 25 2.90
curre
nt
perio
d
8. Statement of changes in owners' equity of the parent company
Amount in the current period
Unit: RMB
2023
Other equity instruments Other
Less: Total
Item Capital compr Special Surplus Undistr
Share Preferr Perpet Treasu owner’
reserv ehensi reserv reserv ibuted Other
capital ed ual Other ry s
e ve e e profit
shares bonds stock equity
income
I.
Balanc
e at the
end of
277,11 2,307,3 158,67 2,189,5 4,932,7
the
5,744.0 49,954. 4,657.0 70,288. 10,643.
period
0 34 7 45 86
of
previo
us
year:
Add:
Change
- -
s in
141,37 141,37
accoun
3.69 3.69
ting
policies
Correct
ion of
errors
from
previo
45
Annual Report 2023 To be a Global Leading Crop Protection Company
us
period
Other
II.
Openin
g 277,11 2,307,3 158,67 2,189,4 4,932,5
balanc 5,744.0 49,954. 4,657.0 28,914. 69,270.
e of the 0 34 7 76 17
current
year
III.
Change
s in
- -
Curren
1,546,3 82,379, 13,004, 222,68 125,75
t
50.00 251.83 013.98 8,157.8 8,542.0
Period
4 3
(“-” for
decrea
se)
(I) Total
compr 229,01 229,01
ehensi 0,504.8 0,504.8
ve 8 8
income
(II)
Capital
contrib
ution 1,546,3 82,379, 83,925,
and 50.00 251.83 601.83
reducti
on by
owners
1.
Ordina
ry
1,546,3 39,314, 40,861,
shares
50.00 906.71 256.71
investe
d by
owners
2.
Capital
contrib
uted
from
other
equity
instru
ment
holders
3.
Amoun
ts of
share-
based
43,064, 43,064,
payme
345.12 345.12
nts
recogni
zed in
owners
' equity
4.
Other
(III) - -
Profit 451,69 451,69
distrib 8,662.7 8,662.7
ution 2 2
46
Annual Report 2023 To be a Global Leading Crop Protection Company
1.
Approp
riation
of
surplus
reserve
2.
Distrib
ution - -
to 451,69 451,69
owners 8,662.7 8,662.7
(or 2 2
shareh
olders)
3.
Other
(IV)
Interna
l carry-
over of
owners
' equity
1.
Capital
reserve
conver
ted
into
capital
(or
share
capital)
2.
Surplus
reserve
conver
ted
into
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Carry-
over
retaine
d
earning
s from
define
d
benefit
plan
change
s
5.
Carry-
over
retaine
47
Annual Report 2023 To be a Global Leading Crop Protection Company
d
earning
s from
other
compr
ehensi
ve
income
6.
Other
(V)
Special 13,004, 13,004,
reserve 013.98 013.98
s
1.
Withdr
awal in 27,222, 27,222,
the 889.74 889.74
current
period
2. Use
- -
in the
14,218, 14,218,
current
875.76 875.76
period
(VI)
Other
IV.
Balanc
e at the 278,66 2,389,7 158,67 1,966,7 4,806,8
13,004,
end of 2,094.0 29,206. 4,657.0 40,756. 10,728.
013.98
the 0 17 7 92 14
current
period
Amount in the previous period
Unit: RMB
2022
Other equity instruments Other
Less: Total
Item Capital compr Special Surplus Undistr
Share Preferr Perpet Treasu owner’
reserv ehensi reserv reserv ibuted Other
capital ed ual Other ry s
e ve e e profit
shares bonds stock equity
income
I.
Balanc
e at the
end of
276,18 2,232,5 158,67 1,348,0 4,015,3
the
0,000.0 16,427. 4,657.0 03,539. 74,623.
period
0 23 7 08 38
of
previo
us
year:
Add:
Change
- -
s in
248,48 248,48
accoun
5.83 5.83
ting
policies
Correct
ion of
errors
from
previo
us
period
48
Annual Report 2023 To be a Global Leading Crop Protection Company
Other
II.
Openin
g 276,18 2,232,5 158,67 1,347,7 4,015,1
balanc 0,000.0 16,427. 4,657.0 55,053. 26,137.
e of the 0 23 7 25 55
current
year
III.
Change
s in
Curren 841,67 917,44
935,74 74,833,
t 3,861.5 3,132.6
4.00 527.11
Period 1 2
(“-” for
decrea
se)
(I) Total
compr 1,071,7 1,071,7
ehensi 31,801. 31,801.
ve 51 51
income
(II)
Capital
contrib
ution 935,74 74,833, 75,769,
and 4.00 527.11 271.11
reducti
on by
owners
1.
Ordina
ry
935,74 21,734, 22,670,
shares
4.00 616.71 360.71
investe
d by
owners
2.
Capital
contrib
uted
from
other
equity
instru
ment
holders
3.
Amoun
ts of
share-
based
53,098, 53,098,
payme
910.40 910.40
nts
recogni
zed in
owners
' equity
4.
Other
(III) - -
Profit 230,05 230,05
distrib 7,940.0 7,940.0
ution 0 0
1.
Approp
49
Annual Report 2023 To be a Global Leading Crop Protection Company
riation
of
surplus
reserve
2.
Distrib
ution - -
to 230,05 230,05
owners 7,940.0 7,940.0
(or 0 0
shareh
olders)
3.
Other
(IV)
Interna
l carry-
over of
owners
' equity
1.
Capital
reserve
conver
ted
into
capital
(or
share
capital)
2.
Surplus
reserve
conver
ted
into
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Carry-
over
retaine
d
earning
s from
define
d
benefit
plan
change
s
5.
Carry-
over
retaine
d
earning
50
Annual Report 2023 To be a Global Leading Crop Protection Company
s from
other
compr
ehensi
ve
income
6.
Other
(V)
Special
reserve
s
1.
Withdr
awal in 19,513, 19,513,
the 242.40 242.40
current
period
2. Use
- -
in the
19,513, 19,513,
current
242.40 242.40
period
(VI)
Other
IV.
Balanc
e at the 277,11 2,307,3 158,67 2,189,4 4,932,5
end of 5,744.0 49,954. 4,657.0 28,914. 69,270.
the 0 34 7 76 17
current
period
In the case of any deviation from the explanations presented hereof, the 2023 Annual Report in Chinese version shall prevail.
SHANDONG WEIFANG RAINBOW CHEMICAL CO., LTD.
Board of Directors
Date: 10/05/2024
51
