Section I: Important Notices, Table of Contents, and Definitions
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The Board of Directors, directors, and senior management of the Company guarantee that the information in this semi-annual report is true, accurate, and complete, with no false records, misleading statements, or major omissions, and they assume individual and joint legal liability.
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Company head Bao Jianhua, person in charge of accounting Yang Guang, and head of the accounting department (accounting supervisor) Xie Haiyan declare: Guarantee the truth, accuracy, and completeness of the financial report in this semi-annual report.
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All directors attended the board meeting to review this semi-annual report.
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Non-standard audit opinion prompt
Not applicable
- Risk warning regarding forward-looking statements such as future plans in the semi-annual report
Applicable
Any content in this report involving future plans, performance forecasts, etc., does not constitute a commitment by the Company to any investors or relevant parties. Investors and relevant parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments.
- The Company requests that investors read the full semi-annual report and pay special attention to the following risk factors:
Does the Company need to comply with special industry disclosure requirements?
Yes
Pharmaceutical and biological products industry; lithium-ion battery industry chain related industries;
- Market competition risk
In the pharmaceutical manufacturing sector, the Company primarily focuses on chemical synthetic enzyme inhibitors, carbapenem series, and lovir-class antiviral drug intermediates. It is gradually initiating R&D for sterile APIs and preparation technologies, combining these with existing API production advantages to form a sustainable, tiered, and serialized product portfolio to ensure the Company's future growth. If the Company cannot successfully extend its existing products downstream or enrich its product line, future market growth space and competition will adversely affect the Company's operations. The Company promotes cost reduction and efficiency, continuously improving management and production levels to ensure product market competitiveness. Simultaneously, it continuously improves the product industry chain to effectively avoid systemic industry chain risks.
Regarding lithium battery electrolyte additives, the Company currently focuses on VC and FEC products and will extend the industry chain horizontally and vertically into additives, lithium salts, and other product areas. With the rapid development of new energy vehicles and the energy storage industry, domestic production capacity is growing rapidly, making market competition more intense. The Company has firm confidence in the long-term prospects of new energy materials. It will not only continuously innovate products and adjust product structures according to market conditions to vigorously expand the market but will also strengthen technical transformation and internal control to maintain the market competitiveness of its products.
- Environmental protection risk
With increasingly strict national environmental standards and the enhancement of social environmental awareness, the Company's sewage treatment costs may further increase. Since its inception, the Company has focused on environmental protection and governance, reducing pollutant generation through process improvement and source control; promoting clean production, strict management, and increasing investment in environmental treatment to reduce "three wastes" emissions. In daily production and operation, the Company has formulated strict and perfect operating procedures, but it may still cause uncontrolled discharge of "three wastes" or accidental environmental accidents due to operational errors or other unpredictable factors. The Company will continue to increase investment in environmental treatment, actively pay attention to and study environmental regulations, continuously improve the environmental awareness of management and key personnel, and earnestly fulfill its safety production and environmental responsibilities.