SAL(603970)2025-04-17 11:50Financial Performance - The company achieved a net profit of RMB 153,609,634.54 for the year 2024, with a total distributable profit of RMB 733,430,283.06 after accounting for dividends and reserves[25]. - The proposed cash dividend is RMB 4.50 per share, totaling RMB 120,960,060.30, which represents 59.48% of the net profit for 2024[25]. - The company's operating revenue for 2024 was CNY 10,595,818,394.20, representing a 1.30% increase compared to CNY 10,459,621,436.86 in 2023[44]. - The net profit attributable to shareholders for 2024 decreased by 9.55% to CNY 203,377,446.48 from CNY 224,840,982.74 in 2023[44]. - The net profit after deducting non-recurring gains and losses was CNY 194,274,434.29, down 3.14% from CNY 200,575,072.44 in 2023[44]. - The net cash flow from operating activities improved significantly to CNY 307,399,564.69 in 2024, compared to a negative cash flow of CNY -944,205,452.99 in 2023[44]. - The basic earnings per share for 2024 were CNY 0.7566, down 9.55% from CNY 0.8365 in 2023[46]. - The weighted average return on equity for 2024 was 13.74%, a decrease of 2.50 percentage points from 16.24% in 2023[46]. - The net assets attributable to shareholders increased by 5.62% to CNY 1,520,445,416.61 at the end of 2024, compared to CNY 1,439,532,454.33 at the end of 2023[44]. Research and Development - The company has committed to increasing R&D investment to overcome barriers in new product applications and technological innovations[5]. - The company’s R&D expenses increased by 2.11% to CNY 66,740.14 million, reflecting a commitment to enhancing product development[76]. - The company established a pesticide application R&D center, obtaining "Pesticide Registration Testing Unit" qualification in 2023, and is involved in two national technology projects for 2024[71]. - The company has 19 technology patents authorized by national intellectual property rights as of the end of 2024, supporting long-term development[71]. - The company is focusing on developing new technologies and formulations in pesticide products, enhancing its research and development capabilities[115]. Market Expansion and Strategy - The company aims to enhance its competitiveness and influence in the global agricultural market through the promotion of its own brand "SINO-AGRI" and a comprehensive supply platform[21]. - The company is focusing on expanding its market presence and enhancing its product offerings in the agricultural biotechnology sector[36]. - Future guidance indicates a strategic emphasis on research and development of new products and technologies to drive growth[36]. - The company expanded its international business, with increasing sales revenue from key regional markets and a focus on brand image enhancement through unified product branding[56]. - The company is actively involved in industry consolidation, with increasing market concentration as weaker firms are either eliminated or acquired by larger enterprises[104]. Supply Chain and Operations - The company has established a service network comprising over 3,000 major channel partners and 29 warehousing and distribution centers across China[21]. - The company maintains a strategic cooperation model with suppliers, ensuring product quality through continuous evaluation and selection of 2 to 3 qualified manufacturers for each product[60]. - The company has established a comprehensive service platform with over 300 global suppliers, enhancing its supply chain capabilities[69]. - The company signed supply agreements with 162 major pesticide manufacturers to ensure a stable supply chain for the 2024 spring farming season[179]. - The company is focusing on expanding its service capabilities in the agricultural supply chain, aiming to enhance green product supply and technical service capabilities[104]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, promoting sound governance practices[128]. - The company has conducted 11 board meetings and 5 supervisory meetings during the reporting period, ensuring effective oversight and decision-making[128]. - The company has maintained a consistent structure in its board and supervisory committee with no significant changes in personnel[132]. - The company has a total of 12 directors and supervisors, with no shareholding changes reported[133]. - The company has appointed a new independent director, Yang Jian, with a term ending in May 2027[133]. Social Responsibility and Environmental Initiatives - The company donated agricultural products worth RMB 80,000 and RMB 26,500 to disaster-stricken areas in Xinjiang and Hunan respectively[9]. - The company invested CNY 743,400 in environmental protection during the reporting period[171]. - The company has implemented an emergency response plan for environmental incidents, detailing risk identification, assessment, and response measures[173]. - The company’s subsidiary conducts quarterly environmental assessments, ensuring compliance with environmental regulations[172]. - Total donations for social responsibility projects amounted to CNY 1.115 million, including CNY 50,000 to Hainan University and CNY 800,000 in agricultural product donations to Xinjiang Akesu[178]. Risk Management - The company plans to strengthen risk management by monitoring potential risks and developing emergency response plans to ensure quick responses to urgent events[118]. - The company is committed to risk assessment and management, particularly concerning its financial services agreements with related parties[144]. - The company faces intensified market competition in the pesticide industry, with ongoing structural adjustments and transformations leading to accelerated industry consolidation[119]. - Political and regulatory risks in countries where the company's foreign subsidiaries operate, such as Argentina and Brazil, may increase compliance costs and affect overseas business[124]. - There is a risk of product quality issues that could impact the company's reputation and operational performance, despite strict procurement processes[121]. Financial Partnerships and Investments - The company approved a series of resolutions regarding credit applications from various banks, indicating a focus on strengthening financial partnerships[143]. - The company has established a private equity investment fund in collaboration with a fund management company, indicating a strategic move towards diversifying investment avenues[108]. - The company reported a long-term equity investment in Hebei Jilong with a year-end balance of RMB 271.35 million, reflecting an increase of RMB 33.88 million[106]. - The company is in the process of applying for credit lines from banks such as Zhejiang Merchants Bank and Industrial Bank[146]. - The company plans to conduct foreign exchange hedging business as part of its financial strategy[144].