Breaking Down Anhui Jinhe Industrial Co.,Ltd. Financial Health: Key Insights for Investors

Step into the engine room of Anhui Jinhe Industrial Co., Ltd. - a company born from Lai'an Chemical Fertilizer Plant (founded in 1974) and formally established in 2001 that now anchors its strategy in a clear mission to serve healthy life and advanced manufacturing; with annual outputs of 20,000 tons of pentaerythritol and 2,000 tons of dipentaerythritol, ISO 9001, 14001 and HACCP certifications, and more than 100 national patents, Jinhe's reach spans food & beverage, daily consumer goods, medicine, agricultural environmental protection and high-end manufacturing, reflected in RMB 3.5 billion revenue in 2022 (a 15% year‑on‑year rise), RMB 200 million invested in R&D (≈5.7% of revenue), exports to over 30 countries with roughly RMB 1.2 billion export revenue in 2021, and ambitious targets like capturing 20% of the domestic pesticide market by 2025 - all driven by a corporate spirit of being unified, aggressive, practical and innovative and guided by the distinctive core values of the "Three not‑speak‑of" (not speaking of conditions, objectivity, remuneration) and the "Three speak‑of" (struggling, dedication, gratitude) that shape Jinhe's disciplined, meticulous and fast work style.

Anhui Jinhe Industrial Co.,Ltd. (002597.SZ) - Intro

• To lead chemical innovation that enhances product performance, environmental compatibility, and industrial efficiency through high‑quality polyols and specialty materials.
• To deliver reliable, certified products that meet strict quality, environmental and safety standards for diverse end‑markets.
• To create sustainable value for customers, employees, shareholders and local communities by integrating technological R&D with responsible manufacturing.

• To be the domestic and global partner of choice for pentaerythritol, dipentaerythritol and related specialty chemicals-recognized for technological leadership, supply stability, and environmental stewardship.
• To expand applications of Jinhe's products across advanced coatings, adhesives, food-contact materials and new material systems while increasing upstream/downstream integration and green process adoption.

• Quality First - certified and traceable production governed by ISO 9001 systems.
• Environmental Responsibility - adherence to ISO 14001 and continuous emission and waste reduction efforts.
• Safety & Food Compliance - HACCP implementation for segments serving food & beverage and health sectors.
• Innovation & IP Protection - investment in R&D resulting in over 100 national patents.
• Customer Centricity - tailored solutions across food & beverage, FMCG, medical & health, agricultural protection and advanced manufacturing.
• Integrity & Compliance - publicly listed governance (002597.SZ) and transparent stakeholder reporting.

• Optimize capacity utilization for pentaerythritol and dipentaerythritol to secure supply reliability and margin stability.
• Scale selective downstream integration and application development with key customers in coatings and medical sectors.
• Advance green chemistry initiatives and maintain ISO 14001‑aligned projects to reduce emissions and energy intensity.

• Maintains diversified customer base across industry verticals to mitigate cyclicality.
• Pursues patent-driven product differentiation to protect margins and open new application segments.
• Publishes investor and operational disclosures consistent with A‑share listing requirements.

Anhui Jinhe Industrial Co.,Ltd. (002597.SZ) - Overview

• Mission: Serve healthy life & advanced manufacturing by supplying effective, lower-impact agricultural and industrial chemical solutions.
• Vision: Be a global leader in sustainable crop protection, biological solutions, and advanced materials, balancing growth with environmental stewardship.
• Core values: Scientific rigor, sustainable innovation, customer partnership, regulatory compliance, and global responsibility.

• R&D-driven product pipeline: RMB 200 million invested in 2022 (5.7% of revenue) to advance crop protection chemistries, biological agents, and new material formulations.
• Global distribution: Products exported to over 30 countries, with export revenue of ~RMB 1.2 billion in 2021 contributing materially to total sales.
• Sustainability and stewardship: Product development prioritizes reduced environmental footprint and support for sustainable farming practices.
• Market ambition: Targeting a 20% share of China's pesticide market by 2025 through portfolio expansion, channel partnerships, and service offerings to farmers.

Anhui Jinhe Industrial Co.,Ltd. (002597.SZ) - Mission Statement

• Commit to sustained R&D-driven product and process innovation to translate laboratory breakthroughs into scalable industry solutions.
• Deliver end-to-end technical and supply solutions that reduce customers' time-to-market and lifecycle costs.
• Maintain long-term partnerships with customers across diversified sectors by providing tailored, regulatory-compliant formulations and materials.
• Expand high-end manufacturing capacity to support advanced applications and improve domestic supply chain resilience.

• Industry-research integration: maintain multiple in-house R&D centers and cooperative labs to shorten innovation cycles.
• Sector coverage: prioritize cross-sector platforms applicable to food & beverage, daily consumption goods, pharmaceuticals, agricultural environmental protection, and precision manufacturing.
• Customer retention & service: aim for year-on-year improvement in repeat-customer ratio and after-sales technical support KPIs.

• Scale modular pilot-to-production facilities to accelerate commercialization of research outputs.
• Targeted partnerships with universities and industry institutes to access advanced materials science and bioprocessing expertise.
• Invest in quality systems and regulatory compliance to serve the pharmaceutical and food sectors' stringent requirements.
• Expand downstream technical service teams to deepen customer collaboration and co-development projects.

• Food & Beverage: develop functional additives and process aids to improve stability, shelf-life, and sensory profiles for industrial producers.
• Daily Consumption: deliver polymeric and formulation solutions for personal care and household products emphasizing safety and biodegradability.
• Medicine & Health: provide excipients and precision-manufactured intermediates meeting GMP and pharmacopeia standards.
• Agricultural Environmental Protection: supply formulation and carrier technologies for more efficient, lower-residue agricultural inputs.
• High-End Manufacturing: produce specialty materials and coatings for advanced equipment and components.

Anhui Jinhe Industrial Co.,Ltd. (002597.SZ) - Vision Statement

• Three not-speak-of: not speaking of conditions, not speaking of objectivity, not speaking of remuneration - promoting discipline, unity, and focus on mission rather than excuses.
• Three speak-of: speaking of struggling, speaking of dedication, speaking of gratitude - fostering a culture of effort, commitment, and appreciation.

• Enterprise spirit: unified, aggressive, practical, innovative - driving competitive positioning and product development.
• Work style: strict, meticulous, effective, fast - ensuring execution quality, safety, and responsiveness to customers and markets.

• Discipline and unity: centralized KPIs, standardized procedures, and strict safety/compliance records that reduce incident rates and improve on-time delivery.
• Aggressiveness and innovation: sustained R&D spending and pilot projects aimed at higher-margin specialty products, contributing to gross margin improvements.
• Practicality and speed: lean manufacturing initiatives cut lead times and inventory days, supporting working capital optimization.
• Dedication and gratitude: employee retention programs and training, reflected in multi-year tenure averages and productivity gains.