ADAMA(000553)2020-04-27 16:00Financial Performance - Adama reported a revenue of RMB 2,446,553,582 for the year 2019, with a cash dividend of RMB 0.12 per 10 shares proposed for distribution to shareholders[3]. - The company's operating revenue for 2019 was 27,563,239 thousand yuan, an increase of 2.59% compared to the previous year[12]. - The net profit attributable to shareholders for 2019 was 277,041 thousand yuan, a decrease of 88.68% year-on-year[12]. - The net profit after deducting non-recurring gains and losses was 610,059 thousand yuan, down 29.02% from the previous year[12]. - The net cash flow from operating activities was 843,487 thousand yuan, a decline of 63.31% compared to the previous year[12]. - The total assets at the end of 2019 were 45,288,940 thousand yuan, reflecting a 2.61% increase from the end of 2018[12]. - The net assets attributable to shareholders at the end of 2019 were 22,371,665 thousand yuan, a decrease of 1.64% compared to the end of 2018[12]. - The gross profit for 2019 was RMB 8,799,324 thousand, with a gross margin of 32%, down from 33% in 2018[28]. - The pre-tax profit plummeted to RMB 451,572 thousand, reflecting an 86.04% decrease from RMB 3,235,708 thousand in the previous year[28]. - The net profit for 2019 was RMB 277,041 thousand, an 88.47% decline compared to RMB 2,402,462 thousand in 2018[28]. Market Position and Strategy - The company emphasizes its strong R&D capabilities and diverse product offerings, serving farmers in over 100 countries[2]. - Adama operates in approximately 100 countries, focusing on the development and marketing of non-patented crop protection products[17]. - The group holds a leading position in the non-patent crop protection market, with no single active ingredient accounting for over 5% of sales in 2019, enhancing business stability[22]. - The group has established a strong domestic market position in China, leveraging its integration with Syngenta Group and aiming to lead the fragmented crop protection market[24]. - The company aims to leverage expiring patents to develop new crop protection products, enhancing its competitive advantage in the agricultural market[58]. - The company plans to enhance its market position by introducing differentiated, high-quality products that meet farmers' needs, focusing on innovative solutions and complex formulations[85]. - The company recognizes the increasing market share of non-patented products as a trend that may reshape the competitive landscape in the crop protection industry[84]. Research and Development - The company has a strong commitment to listening to farmers' feedback to enhance its market offerings[2]. - The management team possesses extensive industry knowledge and experience, focusing on maintaining leadership and financial strength[27]. - The company's R&D investment amounted to 437,802 thousand yuan in 2018, showing a slight decrease of 1.01% compared to 442,253 thousand yuan in 2017[59]. - The number of R&D personnel increased to 269 in 2019, representing a growth of 5.91% from 254 in 2018[59]. Acquisitions and Investments - The company completed several acquisitions in 2019, including AgroKlinge in Peru and SFP in France-Switzerland, to strengthen its market position[31]. - The company acquired Jiangsu Anbang Chemical Co., Bonide Products INC, Agro Klinge S.A., and SFP during the reporting period, indicating market expansion efforts[149]. - The acquisition of Bonide Products, Inc. allows the company to directly offer advanced pest control solutions to consumers in the U.S. market[80]. Challenges and Risks - The company faced challenges due to severe weather conditions and trade tensions, impacting crop planting and sales efficiency[30]. - The company is exposed to potential civil and criminal liabilities due to non-compliance with environmental regulations, which could lead to substantial fines and operational disruptions[102]. - The crop protection market is highly competitive, dominated by seven multinational companies, with the top five holding 60% of the market share, posing a threat to the company's market position[98]. - The company faces significant risks from currency fluctuations, particularly with the Euro, Israeli Shekel, and Brazilian Real, which can impact sales and profitability[94]. - The company anticipates continued high prices and tight product supply in the agricultural chemical market, driven by increased production costs and regulatory measures in China[83]. Environmental and Social Responsibility - The company has maintained a high compliance record in environmental protection and took specific measures to meet regulatory requirements[154]. - The company is committed to sustainable development and community education initiatives[171]. - The company allocated a total of 763,500 RMB (76.35 million RMB) for poverty alleviation efforts in 2019, including 77,000 RMB (7.7 million RMB) in funds and 686,500 RMB (68.65 million RMB) in material donations[174]. - The company operates wastewater treatment facilities with a design capacity of 37,400 tons/day and 11,000 tons/day, which are currently functioning normally and meeting discharge standards for COD and ammonia nitrogen[177]. Corporate Governance - The board of directors has approved the annual report, ensuring the accuracy and completeness of the financial statements[3]. - The company has conducted 35 investor meetings with 33 institutions and 5 individuals throughout the reporting period[123]. - The company has not disclosed any significant undisclosed information during investor communications[123]. - The company appointed Ignacio Dominguez as the new CEO effective March 1, 2020, following the transition of Chen Lichtenstein to a strategic role at Syngenta Group[184].