Zhejiang Yongtai Technology Co., Ltd. Class ASZSE: 002326

2024 Third Quarterly Report

Oct 30, 2024 at 11:35 AM UTC · Issued by Zhejiang Yongtai Technology Co., Ltd. Class A

2024 Third Quarterly Report of Zhejiang Yongtai Technology Co., Ltd.

Zhejiang Yongtai Technology Co., Ltd.

Important Notice:

1.The board of directors, supervisory committee, directors, supervisors, and senior management warrant the truthfulness, accuracy and completeness of the contents of this quarterly report and that there is no false representation, misleading statements contained herein or material omission of this quarterly report, for which they will assume joint and several liabilities.

2.The person in charge of the Company, the responsible person for accounting work, and the person in charge of the accounting department (the principal officer of accounting), hereby warrant that the financial statements contained in this quarterly report are true, accurate and complete.

3.Whether the third quarterly report is audited or not

□Yes  No

I.MAJOR FINANCIAL DATA

(I)Major Accounting Data and Financial Indicators

Whether the Company needs to retroactively adjust or restate accounting data from previous years □Yes  No

Increase/decrease

Increase/decrease in

From the beginning

from the beginning of

This

reporting

this reporting

period

the year to the end of

Items

of the year to the end

period

as compared with the

reporting

period

of reporting period

same period last year

compared

with

the

same period last year

Operating income (Yuan)

1,199,540,529.49

13.32%

3,338,764,469.83

7.30%

Net profit attributable to shareholders of the

-127,508,743.04

7.61%

-89,858,428.78

9.57%

listed company (Yuan)

Net profit attributable to shareholders of the

listed company after deducting non-recurring

-132,723,409.24

6.82%

-106,204,070.19

42.44%

profits and losses (Yuan)

Net cash flow from operating activities (Yuan)

-59,662,531.82

7.65%

Basic earnings per share (Yuan/share)

-0.139

10.90%

-0.098

10.91%

Diluted earnings per share (Yuan/share)

-0.139

10.90%

-0.098

10.91%

Weighted average return on net assets

-4.06%

Increase

0.08

-2.87%

Increase

0.13

percentage points

Increase / decrease at the end

Items

At the

end of this

reporting

At the end of the previous

of this

reporting

period

year

compared to the

end

the

previous year

Total assets (Yuan)

11,496,030,291.28

11,404,306,777.82

0.80%

Net assets attributable to shareholders of the

3,080,099,947.09

3,162,895,712.22

-2.62%

2024 Third Quarterly Report of Zhejiang Yongtai Technology Co., Ltd.

listed company (Yuan)

(II) Non-recurring profit and loss items and amounts

 Applicable □Not applicable Unit: yuan

						Amounts for the period
Items			Amounts	for	the	from the beginning of	Notes
		reporting period		the year to the end of the

						reporting period
Profits and losses from disposal of non-current assets (including the	-2,718,387.08	-16,159,641.23
writing-off part of the assets with impairment provision withdrawn)

Government subsidies included in the current profits and losses
(except for those closely related to the Company's normal business			6,397,310.58	23,017,658.15
operations, in compliance with national policies and regulations,
enjoyed according to the determined standards, and have a
continuous impact on the Company's profits and losses)
The profits and losses from changes in fair value arising from the
holding of financial assets and financial liabilities as well as the
profits and losses arising from the disposal of financial assets and			2,008,535.94	6,948,682.36
financial liabilities by non-financial enterprises, except for the

effective hedging business related to the normal operation of the
Company.
Non-operating income and expenses other than those mentioned			864,441.92	8,978,458.60
above

Less: amount impacted of income tax			1,215,803.28	4,802,935.62
Amount impacted of minority shareholders' equity (after tax)			121,431.88	1,636,580.85
In total				5,214,666.20	16,345,641.41	--

Specific situation of other profit and loss items that satisfy the definition of non-recurring profit and loss: □Applicable  Not applicable

There was no specific situation of other profit and loss items that satisfy the definition of non-recurring profit and loss in the Company.

Explanation of the circumstances in which the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure by Public Issuers of Securities --Non-recurring Profit and Loss Items (《公开发行证券的公司信息披露解释性公告第 1 号--非经常性损益》) are defined as recurring profit and loss items.

□Applicable  Not applicable

There was no circumstance of non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure by Public Issuers of Securities - Non-recurring Profit and Loss Items are defined as recurring profit and loss items in the Company.

(III) Changes in major accounting data and financial indicators and reasons for such changes

Applicable □ Not applicable

Overall performance:

In the first three quarters of 2024, the Company achieved operating revenue of RMB 3.339 billion, an increase of 7.30% year-on-

year. This was mainly due to the recovery of market conditions in the pesticide industry after destocking adjustments in the previous

year, and the Company actively seized opportunities to expand its market, resulting in an increase in sales of its main products in the

crop science and trading sectors. In the first three quarters of 2024, the Company actively implemented a series of cost reduction and

efficiency improvement measures, resulting in an increase in overall gross profit margin from 15.30% in the same period last year to

2024 Third Quarterly Report of Zhejiang Yongtai Technology Co., Ltd.

17.62% in the current period. At the same time, period expenses such as management expenses, marketing expenses, and R&D expenses decreased compared to the same period last year, resulting in a net profit after deducting non-recurring profits and losses of RMB - 106.204 million, the losses were reduced by RMB 78.3042 million compared to the same period last year.

In the third quarter of 2024, the Company achieved a net profit after deducting non-recurring profits and losses of RMB -132.7234 million, the losses were reduced by RMB 9.7205 million compared to the same period last year. However, this was a decrease compared to the first and second quarters of 2024, mainly due to a decrease in gross profit margin caused by a decline in market prices of some products, while period expenses such as management expenses, marketing expenses, and financial expenses remained relatively rigid, resulting in a loss. In terms of gross profit margin: in the first three quarters of 2024, the Company achieved gross profit margins of 24.11%, 19.00%, and 11.65%, respectively, mainly due to fierce market competition in the pharmaceutical and pesticide industries and a continuous decline in market prices of some products in this year. The gross profit margin in the third quarter decreased the most, mainly due to the expiration of patents for some of the Company's pharmaceutical products, resulting in an increase in the supply of generic drugs and upstream intermediates and raw materials, and thus a decrease in market prices. In terms of period expenses: in the third quarter, the Company's management expenses-environmental protection fees increased by RMB 13.4623 million and RMB 9.6738 million compared to the first and second quarters of this year, respectively, due to the centralized disposal of solid waste. In addition, in order to stimulate the enthusiasm of key technology, business and management personnel, the Company implemented a new restricted stock incentive plan in the third quarter and adjusted the salaries of some employees, resulting in an increase of RMB 18.7249 million and RMB 10.2227 million in employee compensation compared to the first and second quarters, respectively. These measures aim to enhance employee cohesion and stability and improve the Company's competitiveness. The Company's financial expenses in the third quarter were RMB 46.4896 million, an increase compared to the previous two quarters, mainly due to increased exchange losses caused by fluctuations in the US dollar exchange rate.

Looking ahead, the Company will closely monitor market dynamics and adjust its business strategy in a timely manner. The Company will further reduce costs, improve efficiency, and enhance profitability through measures such as optimizing product structure, strengthening market development, and implementing effective employee incentives, in order to create greater value for shareholders. At the same time, the Company will continue to fulfill its social responsibilities and promote the sustainable development of the Company and the industry.

1、Explanation of reasons for changes in balance sheet items exceeding 30%

Items	Percentage		Reasons for change
change

Transactional financing assets	-59.46%	Mainly due to the decrease in the purchase of financial products;
Notes receivable	177.90%	Mainly as a result of the increase in bank endorsed outstanding notes during the
period;

Receivables financing	-86.70%	Mainly as a result of higher settlement of bills receivable during the period;
Right of use assets	-36.15%	Mainly as a result of the increase in accumulated depreciation of right of use
assets during the period;

Transaction financial liabilities	-100.00%	Mainly due to the closure of foreign exchange contract business in the current
period;

Remuneration payable to employees	-62.60%	Mainly as a result of the payment of last year's year-end bonus;
Taxes payable	-45.86%	Mainly as a result of the payment of income tax and property tax;
Long-term payables	120.53%	Mainly as a result of the increase in finance leases.

2024 Third Quarterly Report of Zhejiang Yongtai Technology Co., Ltd.

2、Explanation of reasons for changes in income statement items exceeding 30%

Items	Percentage	Reasons for change
	change

Other income	Mainly attributable to the decrease in government grants received during the
-35.98%period;
Income from investment	Mainly as a result of the increase in profit on disposal of trading financial assets
159.32% and investment income from Anbison during the period;
Gains from changes in fair value	48.07% Mainly as a result of changes in forward exchange rates during the period;
Credit impairment loss	Mainly due to the increase in the balance of accounts receivable during the period
-112.95% and the corresponding increase in the provision of bad debts
Asset impairment loss	Mainly as a result of the reversal of inventory impairment provisions in the prior
-100.00%period;
Gain from disposal of assets	Mainly as a result of the disposal of a patent at a significant loss during the
-129.39% reporting period;
	Mainly attributable to the receipt of government compensation and incentives for
Non-operating income	-69.80% the relocation of Shanghai E-Tong and Shanghai Youngcobe during the previous
	period;
Income tax expense	Mainly as a result of the increase in provision for bad debts and deferred income
40.21% tax expense arising from losses;
Minority shareholders' profits and	Mainly as a result of the decrease in loss of Yongtai Hi-Tech in the current period
losses	70.14% as compared to the same period of the previous year;
Net after-tax amount of other	Mainly as a result of the difference in translation of foreign currency financial
comprehensive incomes	118.29% statements for the current period.

3、Explanation of reasons for changes in cash flow statement items exceeding 30%

Items	Percentage	Reasons for change
	change

Net cash flows from financing	Mainly due to the increase in GDRs proceeds and bank borrowings received in
activities	-89.76% the same period of the previous year.

II. SHAREHOLDER INFORMATION

(I)Table of the total number of ordinary shareholders and number of preference shareholders with voting rights restored and shareholdings of the top 10 shareholders

Unit: Share

Total number of ordinary shareholders

125,169

Total number of preference shareholders

with voting rights restored as at the end of

Nil

as at the end of the reporting period

the reporting period (if any)

Shareholdings of the top 10 shareholders(excluding the shares lent through refinancing)

Number of shares

Shares pledged,

Name

Percentage of

Number of

marked or frozen

Nature of shareholders

held subject to

shareholder

shareholding

held

Status

selling restrictions

Quantity

Wang Yingmei

Domestic natural person

15.59%

144,248,400

108,186,300

Pledge

84,794,100

He Renbao

Domestic natural person

12.04%

111,400,000

Pledge

45,539,999

Zhejiang

Yongtai

Domestic

non-state-

1.39%

12,887,500

Pledge

12,887,500

Holdings Co., Ltd.

owned legal person

Hong

Kong

Not

Securities

Clearing

Overseas legal person

0.91%

8,460,454

applicable

Co., Ltd.

Citibank,

National

Overseas legal person

0.79%

7,318,800

Not

Association

applicable

2024 Third Quarterly Report of Zhejiang Yongtai Technology Co., Ltd.

Jin Ying

Domestic natural person

0.75%

6,977,680

Not

applicable

Shanghai

Axing

Investment

Management

Co.,

Others

0.49%

4,530,000

Not

Ltd. - Axing Gezhi

applicable

No.12

Private

Equity

Investment

Fund

Wang Ping

Domestic natural person

0.40%

3,719,376

Not

applicable

Zheng Xiaoju

Domestic natural person

0.34%

3,158,537

Not

applicable

Mai Wangqiu

Domestic natural person

0.33%

3,098,000

Not

applicable

Shareholdings of the top 10 shareholders not subject to selling restrictions(excluding shares lent through refinancing, shares held by senior

management under lock-up)

Number of

circulating

Type and number of shares

Name of shareholders

held not

subject to

sales

Type of shares

Quantity

restrictions

He Renbao

111,400,000