Green Bio: Q3 net profit down 16%; just two months after listing, proposes dividend payout equal to 96% of first-three-quarters’ profit

On the expense side, financial expenses, sales expenses, and R&D expenses all rose significantly. Specifically, the company’s financial expenses for the first three quarters totaled RMB 32.73 million, up 78.56% year-on-year; the company attributed this sharp increase primarily to higher foreign exchange losses—a direct consequence of its business structure, which is heavily reliant on overseas sales: in 2025, overseas main operating revenue accounted for 85.21% of total. Sales expenses increased by 33.48% year-on-year to RMB 6.77 million, mainly due to higher salaries for sales staff; R&D expenses amounted to RMB 28.32 million, up 6.22% year-on-year. Regarding cash flow, Green Bio generated RMB 127 million in net cash flow from operating activities during the first three quarters, an increase of 13.27% year-on-year; net cash flow from financing activities reached RMB 771 million, compared with a net outflow of RMB 33.28 million in the same period last year—mainly attributable to proceeds from its IPO. Its monetary funds stood at RMB 879 million, up 1,123.36% from the beginning of the year, also driven by IPO proceeds. Meanwhile, the company’s inventory reached RMB 481 million, up 34.21% from the beginning of the year, which the company attributed to increased stockpiling; short-term borrowings rose to RMB 421 million, up 84.82% year-on-year, primarily reflecting adjustments to its loan structure—including increased short-term bank loans; accounts receivable climbed from RMB 192 million at the start of the year to RMB 239 million. (2) Proposed large-scale dividend of RMB 133 million—96% of first-three-quarters’ profit Alongside its Q3 earnings release, Green Bio simultaneously announced its third-quarter profit distribution plan. The company proposes to distribute cash dividends of RMB 10 per 10 shares (tax included) to all shareholders, based on its current total share capital of 133 million shares, with no bonus shares or share capital reserve conversions. The total cash dividend payout would amount to RMB 133 million. This proposal was first put forward by Chairman Lu Wencong on October 13 and approved by the Board of Directors on October 21. Based on the company’s RMB 139 million net profit attributable to shareholders for the first three quarters, the proposed cash dividend represents approximately 96% of that amount. Green Bio specializes in the R&D, production, and sale of fragrance ingredients, offering three major product lines—pine oil, cypress oil, and fully synthetic fragrances—with nearly 40 specific products including sandalwood, methyl cedryl ketone, and damascone. Its downstream customers include global fragrance & flavor giants such as Givaudan, DSM-Firmenich, and IFF, and its products are widely used in the daily chemical industry. From 2023 to 2025, the company reported revenues of RMB 735 million, RMB 961 million, and RMB 1.075 billion, respectively, and net profits of RMB 92.92 million, RMB 150 million, and RMB 179 million. At IPO, Green Bio planned to raise RMB 690 million, earmarked for: (i) an annual production project of 6,300 tons of premium fragrance ingredients; (ii) intelligent factory facility upgrades; (iii) R&D innovation enhancement; and (iv) supplementing working capital. In practice, the company issued 33.33 million new shares at RMB 26.33 per share, raising a total of RMB 878 million, with net proceeds of RMB 770 million—RMB 80.44 million above its original target—and an issue P/E ratio of 19.8x. Post-listing, its stock price experienced a surge followed by a rapid correction.

In-depth Research and Market Analysis & Forecast Report on China’s Fragrance & Flavor Industry, 2027–2033

Table of Contents Chapter 1: Overview of China’s Fragrance & Flavor Industry 1.1 Definition and Classification of the Fragrance & Flavor Industry 1.1.1 Definition of the Fragrance & Flavor Industry 1.1.2 Product Classification within the Fragrance & Flavor Industry (1) Fragrance Ingredients and Their Classification (2) Flavor & Fragrance Compounds and Their Classification 1.1.3 Industry’s Role in the National Economy 1.2 Statistical Standards for the Fragrance & Flavor Industry 1.2.1 Statistical Authorities and Scope of Coverage 1.2.2 Statistical Methodologies 1.2.3 Types of Industry Data 1.3 Industrial Chain Analysis 1.3.1 Overview of the Fragrance & Flavor Industry’s Industrial Chain 1.3.2 Upstream Raw Material Market Analysis 1.4 Industry Development Environment Analysis 1.4.1 Policy Environment (1) Relevant Policies and Regulations (2) Industry Development Plans 1.4.2 Economic Environment (1) Global Macroeconomic Trends and Forecasts (2) Domestic Macroeconomic Trends and Forecasts (3) Impact Analysis of the Economic Environment 1.4.3 Technological Environment (1) Patent Application Trends (2) Latest Technological Developments 1.4.4 Demand Environment (1) Characteristics of Industry Demand (2) Demand Trends Chapter 2: Development Status of the Fragrance & Flavor Sector 2.1 Overall Development Status of the Fragrance & Flavor Sector 2.1.1 General Industry Development Overview 2.1.2 Key Features of Domestic Fragrance & Flavor Sector Development 2.1.3 Operational Performance Analysis (1) Profitability Analysis (2) Profit Margin Analysis (3) Operational Efficiency Analysis (4) Solvency Analysis (5) Growth Capacity Analysis 2.2 Economic Indicator Analysis 2.2.1 Key Factors Influencing Economic Performance 2.2.2 Economic Indicator Analysis 2.3 Supply-Demand Balance Analysis 2.3.1 National Supply Analysis (1) Analysis of National Industrial Output Value (2) Analysis of Finished Goods Inventory 2.3.2 Regional Supply Analysis 2.3.3 National Demand Analysis 2.3.4 Regional Demand Analysis 2.3.5 National Production-Consumption Ratio Analysis 2.4 Import-Export Analysis, 2022–2026 2.4.1 Overview of Import-Export Activities 2.4.2 Export Analysis (1) Export Analysis for 2026 (2) Export Analysis for 2026 (3) Export Analysis for 2026 2.4.3 Import Analysis (1) Import Analysis for 2026 (2) Import Analysis for 2026

International Flavors & Fragrances Stock Rating Lowered by Bank of America

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Bank of America downgraded International Flavors & Fragrances to "underperform" with a $91 price target, despite the company beating quarterly earnings estimates and launching a $2.5 billion share repurchase program.

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