2023-04-20-深交所-新_和_成_2022年年度报告（英文版）_174页_3mb

Summary of Zhejiang NHU Co., Ltd. 2022 Annual Report

Core Content Overview

Zhejiang NHU Co., Ltd. (stock code: 002001) is a national high-tech enterprise primarily engaged in the production and sales of nutrition, flavor and fragrance, new polymer materials, and APIs. The company operates under the principles of innovation-led development and competition-driven growth, with a focus on fine chemicals and the "Chemical+" and "Bio+" technology platforms. The annual report provides detailed financial data, business analysis, and future outlook, emphasizing the company's commitment to sustainable development and global market expansion.

Main Financial Indicators

The following are the key financial data points for Zhejiang NHU Co., Ltd. for the years 2022, 2021, and 2020:

Notes:

• The share capital increased from 2,578,394,760 to 3,090,907,356 in 2021 due to the profit distribution plan.
• The company implemented the new accounting standards (ASBE No. 15) in 2022, which led to retroactive adjustments in financial data.
• The net profit after deducting non-recurring items in the last three years is negative, and the company's ability to continue operations is uncertain.

Key Business Sectors

1. Nutrition

• Products: Vitamins (E, A, C, D3, B5), amino acids (methionine), biotin, coenzyme Q10, carotenoids.
• Applications: Feed additives, food and beverage nutrition supplements, health products.
• Market Trends: Global population growth and aging drive demand for nutritional products. China is the largest vitamin producer, accounting for 83.40% of global production. The industry faced challenges such as falling demand, complex industry structure changes, and rising costs in 2022.

2. Flavor and Fragrance

• Products: Linalool, citral, cis-3-hexenol series, methyl dihydrojasmonate, raspberry ketone, ligustral.
• Applications: Personal care, cosmetics, food and beverages.
• Market Trends: The global market size is about $35 billion, with long-term stable growth. Emerging markets like China, India, and Southeast Asia are key drivers. The Asia-Pacific region accounted for over 31.4% of the global market in 2022.

3. New Polymer Materials

• Products: PPS (Polyphenylene sulfide), PPA (Poly phthalamide).
• Applications: Electronic and electrical, automotive, environmental protection, etc.
• Market Trends: New polymer materials are critical to a country's economic and technological strength. The company is a leader in PPS production, offering fiber grade, injection molding grade, extrusion grade, and coating grade products.

4. APIs (Active Pharmaceutical Ingredients)

• Products: Moxifloxacin, vitamin A, vitamin D3, caronic anhydride, azabicyclic.
• Applications: Pharmaceutical preparations, especially in the fields of pulmonary, cardiology, and oncology.
• Market Trends: The API market size was USD 177.05 billion in 2021, expected to grow at a CAGR of about 7.5%. The pandemic has shifted demand towards complex APIs for novel formulations.

Profit Distribution Proposal

• Dividend: A cash dividend of 5 yuan per 10 shares will be distributed to all shareholders.
• No Bonus Shares or Share Capital Conversion: The company will not distribute bonus shares or convert capital reserves into share capital.
• Note on Repurchased Shares: Shares in the repurchase account do not participate in profit distribution or capital reserve conversion.

Key Business Models

(1) Procurement Model

• Principle: Fairness, transparency, and optimal cost.
• Strategy: Combines long-term strategic cooperation with open competitive procurement.
• Implementation: Utilizes market trend analysis, promotes supply chain optimization, and implements transparent procurement systems to enhance efficiency and reduce costs.

(2) Production Model

• Principle: Coordination of production and sales, efficient operation, excellent quality, and cost leadership.
• Strategy: Balances production with market demand and effectively responds to challenges like repeated epidemics.

Future Outlook and Risks

• Future Development: The company is expected to continue its growth in the nutrition, flavor and fragrance, new polymer materials, and API sectors.
• Risks: The report highlights the need to pay attention to possible risks in business operations, particularly in the "Outlook for the future development of the Company" section.
• Countermeasures: The company is advised to strengthen its innovation capabilities, improve the synergy between the innovation chain and the industrial chain, and enhance its ability to resist market risks.

Corporate Governance and Compliance

• The company has implemented retroactive adjustments in financial data due to changes in accounting standards and policies.
• The financial statements are signed and sealed by the legal representative, accounting officer, and head of the accounting department.
• The annual report is an English translation of the Chinese version, with the Chinese version prevailing in case of discrepancies.

Conclusion

Zhejiang NHU Co., Ltd. continues to focus on innovation and high-quality development in the fine chemical industry. Despite facing challenges in 2022, including market demand fluctuations and rising costs, the company maintains a strong position in the global market. The company is committed to sustainable growth and enhancing its competitiveness through technological advancement and efficient management.