2025-04-18-深交所-新_和_成_2024年年度报告（英文版）_207页_3mb

Zhejiang NHU Co., Ltd. 2024 Annual Report Summary

Core Content

Zhejiang NHU Co., Ltd. (stock code: 002001) is a national high-tech company engaged in the production and sales of nutrition, flavor and fragrance, new polymer materials, and APIs. The annual report highlights the company's commitment to transparency, accuracy, and compliance with financial reporting standards, as well as its strategic focus on innovation and sustainable development.

Key Financial Indicators

Annual Financial Highlights (2024 vs. 2023 vs. 2022)

• Operating Revenue: 21,609.59 billion yuan (2024), up 42.95% year-on-year.
• Net Profit (Shareholders): 5,868.55 billion yuan (2024), up 117.01% year-on-year.
• Net Profit (after non-recurring): 5,828.94 billion yuan (2024), up 122.97% year-on-year.
• Net Cash Flows from Operating Activities: 7,073.06 billion yuan (2024), up 38.16% year-on-year.
• Basic EPS: 1.91 yuan/share (2024), up 119.54% year-on-year.
• Weighted Average ROE: 21.78% (2024), an increase of 10.54 percentage points year-on-year.
• Total Assets: 42,989.13 billion yuan (2024), up 9.79% year-on-year.
• Net Assets (Shareholders): 29,324.99 billion yuan (2024), up 18.22% year-on-year.

Quarterly Financial Performance (2024)

• Operating Revenue:
  • Q1: 4,498.76 billion yuan
  • Q2: 5,345.95 billion yuan
  • Q3: 5,937.03 billion yuan
  • Q4: 5,827.85 billion yuan
• Net Profit (Shareholders):
  • Q1: 869.62 billion yuan
  • Q2: 1,334.74 billion yuan
  • Q3: 1,785.16 billion yuan
  • Q4: 1,879.03 billion yuan
• Net Profit (after non-recurring):
  • Q1: 857.47 billion yuan
  • Q2: 1,299.99 billion yuan
  • Q3: 1,724.72 billion yuan
  • Q4: 1,946.76 billion yuan
• Net Cash Flows from Operating Activities:
  • Q1: 480.90 billion yuan
  • Q2: 1,657.43 billion yuan
  • Q3: 2,438.41 billion yuan
  • Q4: 2,496.33 billion yuan

Main Business Overview

Nutrition

• Products include vitamins (e.g., E, A, C, D3), amino acids (e.g., methionine, biotin), and pigments.
• Used in feed additives, nutrition supplements, and health foods.
• The company actively develops serialized and differentiated products, optimizing production and expanding high-value-added lines to enhance competitiveness.
• Vitamins are a key segment, with China being the largest producer globally, contributing 85.90% of global production in 2024.
• Vitamin prices rebounded, and most products returned to profitability in 2024.
• Methionine, a sulfur-containing amino acid, is used in poultry, dairy, and fish feed. China's production capacity and exports increased significantly, while imports decreased.

Flavor and Fragrance

• Products include linalool, citral, cis-3-hexenol, methyl dihydrojasmonate, raspberry ketone, ligustral, and menthol.
• Widely used in personal care, cosmetics, and food industries.
• The company is a key supplier in the global flavor and fragrance industry, with a significant share of global supply for key products like vanillin and linalool.
• The company continues to enrich its fragrance portfolio and develop bio-based products to meet evolving market needs.

New Polymer Materials

• Focus on high-performance polymers such as PPS (Polyphenylene Sulfide), PPA (Poly Phthalamide), and HDI (Hexamethylene Diisocyanate).
• Products are used in automotive, electronics, environmental protection, and industrial sectors.
• The company has built a complete PPS industrial chain and is working on large-scale production of nylon materials.

APIs (Active Pharmaceutical Ingredients)

• Products include moxifloxacin hydrochloride, vitamin A, vitamin D3, etc.
• Used in pharmaceutical preparations and are a pillar industry in the domestic pharmaceutical sector.

Business Strategy and Models

Procurement Model

• Based on principles of fairness, transparency, and optimal cost.
• Uses long-term strategic cooperation and open competitive procurement.
• Minimizes intermediaries and selects suppliers with good reputation and quality assurance agreements.
• Prioritizes environmentally friendly and sustainable products, promoting carbon emission reduction and green production.

Production Model

• Emphasizes production and sales coordination, efficient operations, and cost leadership.
• Dynamically adjusts production plans based on market demand.
• Implements innovative production management and lean operations to improve efficiency and reduce energy consumption.

Sales Model

• Customer-centric and market-oriented.
• Divides business lines by application fields and establishes sales models that align with market needs.
• Focuses on direct sales and long-term strategic partnerships with end customers.
• Also employs excellent agents and distributors for indirect sales.
• Enhances customer service through customer service months, strategic cooperation, and evaluation models.

Risk and Outlook

• The report emphasizes the importance of understanding potential business risks and outlines countermeasures.
• The company's future development plan includes maintaining and enhancing its competitive advantage in key industries.
• It is expected to continue its growth in the flavor and fragrance, nutrition, and polymer materials sectors, driven by increasing global demand and technological advancements.

Non-Recurring Profit or Loss

• The company reported non-recurring profit or loss items for 2024, 2023, and 2022, with total figures as follows:
  • 2024: 39,607,494.29 yuan
  • 2023: 90,028,126.96 yuan
  • 2022: 33,397,934.74 yuan
• No other profit or loss items that satisfy the definition of non-recurring were reported.

Compliance and Standards

• The company's financial statements are prepared in accordance with Chinese accounting standards and are consistent with those under IFRS and overseas standards.
• The financial report is verified by Pan-China Certified Public Accountants LLP, with the audit report confirming the company's financial statements are accurate and complete.
• The report is available on the Shenzhen Stock Exchange website and in designated media such as the Securities Times and China Securities Journal.

Company Information

• Legal Representative: Hu Baifan
• Registered Address: No. 418 Xinchang Dadao West Road, Qixing Sub-district, Xinchang County, Zhejiang Province, China
• Postal Code: 312500
• Stock Exchange: Shenzhen Stock Exchange
• Official Website: http://www.cnhu.com
• Contact Email: 002001@cnhu.com

Governance and Legal Matters

• The company's Board of Directors and senior executives have confirmed the authenticity and accuracy of the report.
• Two directors (Zhou Guiyang and Ji Jianyang) were absent from the meeting due to official business.
• The report is an English translation of the Chinese version, with the Chinese version taking precedence in case of discrepancies.

Conclusion

Zhejiang NHU Co., Ltd. has demonstrated strong financial performance in 2024, with significant growth in operating revenue and net profit. The company is a leader in the vitamin and methionine markets, and its focus on innovation, sustainability, and strategic development positions it well for continued growth in the fine chemical and pharmaceutical industries. The report provides comprehensive insights into the company's operations, financial health, and future outlook, emphasizing its commitment to transparency and long-term value creation.