GD TIANHE(002999)2024-04-15 12:21Agricultural Services and Environmental Impact - The company conducted agricultural social services covering 3.3 million mu in Guangdong Province, with 810,000 mu dedicated to pest control and fertilizer application services, benefiting approximately 50,000 farmers and generating cost savings and income increases exceeding 100 million yuan[29] - The company reduced pesticide usage by 974 tons, fertilizer application by 4,321 tons, and pesticide packaging waste by 219 tons in 2023[29] - The company is committed to building a modern agricultural social service system, promoting the construction of a professional agricultural materials and technology service network in Guangdong, and accelerating the establishment of a network covering the entire agricultural production process from "plowing, planting, managing, and harvesting"[30] - The company actively coordinates the construction of agricultural non-point source pollution prevention and control demonstration systems, professional pest control, and formula fertilizer promotion services through the agricultural materials and technology service network[30] Financial Performance and Profit Distribution - The company proposed a profit distribution plan of 1.20 yuan per 10 shares (tax included) with a total of 347,592,000 shares as the base[16] - Total revenue for 2023 reached RMB 15,511.47 million, with a focus on sales of fertilizers, pesticides, and agricultural technical services[144] - Net profit for 2023 was 92,582,778.51 yuan, a significant decline from 146,763,754.42 yuan in 2022, representing a decrease of approximately 37%[189] - Operating revenue for 2023 reached 15,511,472,446.93 yuan, up from 14,503,838,569.13 yuan in 2022, indicating a growth of about 7%[183] - Earnings per share (EPS) for 2023 was 0.29 yuan, down from 0.31 yuan in 2022, reflecting a decrease of approximately 6.5%[192] - Revenue for 2023 was RMB 10.94 billion, a decrease of 2.7% compared to RMB 11.25 billion in 2022[193] - Operating profit for 2023 increased by 84.7% to RMB 286.81 million from RMB 155.25 million in 2022[193] - Net profit for 2023 rose by 74.1% to RMB 232.08 million from RMB 133.28 million in 2022[196] - Sales revenue from goods and services in 2023 was RMB 16.90 billion, a decrease of 2.9% from RMB 17.39 billion in 2022[198] Asset and Liability Management - Cash and cash equivalents decreased from RMB 957.96 million as of January 1, 2023, to RMB 724.65 million as of December 31, 2023[134] - Accounts receivable increased significantly from RMB 163.59 million at the beginning of 2023 to RMB 375.40 million by the end of the year[134] - Inventory balance as of December 31, 2023, was RMB 2,501.38 million, with a provision for inventory impairment of RMB 31.60 million[146] - Prepayments decreased slightly from RMB 1,829.02 million at the start of 2023 to RMB 1,676.67 million by year-end[134] - Long-term equity investments decreased from RMB 37.54 million to RMB 5.41 million during the year[134] - Fixed assets stood at RMB 510.06 million as of December 31, 2023, compared to RMB 517.80 million at the beginning of the year[134] - Construction in progress increased from RMB 314.50 million to RMB 502.14 million, indicating ongoing capital expenditures[134] - Intangible assets decreased slightly from RMB 192.79 million to RMB 185.56 million during the year[134] - Total liabilities increased to 5.411 billion yuan from 5.203 billion yuan, a growth of 4%[161] - Total owner's equity rose to 1.463 billion yuan from 1.440 billion yuan, an increase of 1.6%[161] - Monetary funds decreased to 678.36 million yuan from 894.87 million yuan, a decline of 24.2%[162] - Accounts receivable surged to 66.47 million yuan from 8.57 million yuan, a significant increase of 675.4%[162] - Prepayments dropped to 1.213 billion yuan from 1.504 billion yuan, a decrease of 19.4%[162] - Total current assets increased slightly to 4.182 billion yuan from 4.100 billion yuan, a growth of 2%[162] - Long-term equity investments grew to 708.33 million yuan from 696.35 million yuan, an increase of 1.7%[162] - Fixed assets decreased to 45.91 million yuan from 49.01 million yuan, a decline of 6.3%[165] - Total non-current assets rose to 851.14 million yuan from 847.83 million yuan, a growth of 0.4%[165] - Short-term borrowings increased to 533.05 million yuan from 410.23 million yuan, a growth of 29.9%[165] - Total assets increased to 6,874,236,063.87 yuan in 2023 from 6,643,463,883.23 yuan in 2022, reflecting a growth of approximately 3.5%[180] - Total liabilities decreased to 3,861,388,786.99 yuan in 2023 from 3,973,492,428.58 yuan in 2022, a reduction of about 2.8%[182] - Total equity increased to 1,171,932,413.10 yuan in 2023 from 974,612,233.76 yuan in 2022, marking a growth of about 20%[182] - The company's total non-current assets increased to 1,452,552,547.03 yuan in 2023 from 1,398,939,789.42 yuan in 2022, showing a growth of approximately 3.8%[180] Corporate Governance and Leadership Changes - The company's fixed asset depreciation policy change was approved by the 24th meeting of the 5th Board of Directors and the 10th meeting of the 5th Board of Supervisors on April 27, 2023, and was applied from January 1, 2023[40] - The company appointed Zhang Cigan, Cui Yongtao, and Ye Jiancai as vice presidents on December 22, 2023, and their pre-tax remuneration for December was disclosed[50] - Guo Jiawen resigned as a non-independent director of the 5th Board of Directors on February 19, 2024, and will no longer hold any position in the company or its subsidiaries[50] - The company appointed Zou Jinhan as the financial director on March 26, 2024, and he did not receive remuneration from the company by the end of the reporting period[50] - The company's total pre-tax remuneration for directors, supervisors, and senior management in 2023 was RMB 7.6316 million[50] - The company's Chairman, Liu Yi, received a pre-tax remuneration of 1.01 million yuan[175] - The company's Director and General Manager, Yao Weiying, received a pre-tax remuneration of 991,900 yuan[175] - The company's Director and Deputy General Manager, Luo Xuanbin, received a pre-tax remuneration of 978,600 yuan[175] - The company's independent directors, including Liu Lianghui, Yang Biao, and Feng Xia, each received a remuneration of 60,000 yuan[175] - The company's financial management personnel, including Zou Jinhan, received remuneration from the company, with specific amounts not disclosed[175] - The company's financial management personnel, including Zou Jinhan, are also associated with other companies, indicating potential conflicts of interest[175] - The company's financial management personnel, including Zou Jinhan, have been in their positions since 2020, indicating stability in financial leadership[170] - The company's financial management personnel, including Zou Jinhan, are responsible for multiple subsidiaries, indicating a complex organizational structure[170] - The company appointed Zou Jinhan as the new CFO on March 26, 2024, and elected Lin Weiran as a new director on March 18, 2024[95] - Several senior executives, including Yao Weiying, Xu Zhigang, and Xia Huanghui, resigned from their positions in 2023 due to job adjustments, personal reasons, and retirement, respectively[95][101][104] Subsidiaries and Organizational Structure - The company established 14 new subsidiaries in 2023, including Lianping Lianhe Supply and Marketing Agricultural Technology Service Co., Ltd., Guangzhou Xinhe Agricultural Technology Service Co., Ltd., and Longchuan Youhe Agricultural Technology Service Co., Ltd., among others[55] - The company closed 3 subsidiaries in 2023, including Qingyuan Tiantian Storage Co., Ltd., Guangdong Jiahe Industrial Development Co., Ltd., and Tiantian Jiasui Agricultural Technology (Nanjing) Co., Ltd[55] - The company's consolidated financial statements included 146 subsidiaries at the end of the reporting period, reflecting an increase of 14 new subsidiaries and a decrease of 3 closed subsidiaries compared to the previous year[55] - The company's subsidiary, Guangdong Jiayu Chemical Co., Ltd., completed a capital increase and expansion of RMB 26.195 million, with core employees Li Long and Xiao Junwen becoming new shareholders[85] - The company's subsidiary, Guangdong Jiayu Chemical Co., Ltd., completed a capital increase and share expansion in 2023, with related announcements published on January 20 and February 18, 2023[97] Shareholder and Equity Information - The company completed the equity distribution for the 2022 annual profit allocation plan on June 6, 2023[77] - The company's pre-IPO shares of 123,340,000 shares (35.4841% of total shares) became tradable on the Shenzhen Stock Exchange on September 28, 2023[79] - Shareholder Guangdong New Supply and Marketing Commerce Chain Co., Ltd. transferred 14,000,000 shares (4.03% of total shares) to Guangdong Yuehe Asset Management Co., Ltd. to settle debts on November 29, 2023[80] - The total number of shares held by directors, supervisors, and senior management at the end of the period was 7,200,600 shares, a decrease of 555,200 shares compared to the beginning of the period[94] - Luo Xuanbin, Vice President, reduced his shareholding by 100,000 shares, bringing his total shares to 2,105,000 due to personal financial needs[94] - Qiu Junwei, Vice President, reduced his shareholding by 228,000 shares, bringing his total shares to 684,000 due to personal financial needs[94] - Xu Zhigang, former Vice President, reduced his shareholding by 227,200 shares, bringing his total shares to 681,600 due to personal financial needs[94] - Ke Yingchao resigned from his positions as Director, Member of the Remuneration and Assessment Committee, Member of the Strategy Committee, and General Manager, and will no longer hold any positions in the company or its subsidiaries[94] - The company's major shareholders, including Guangdong Supply and Marketing Group Co., Ltd., Guangdong New Supply and Marketing Commercial Chain Co., Ltd., and Guangdong New Supply and Marketing Tianrun Grain and Oil Group Co., Ltd., had their pre-IPO restricted shares fully released on September 28, 2023, totaling 123,340,000 shares[101] - The company's total restricted shares decreased from 129,111,850 shares at the beginning of the period to 6,114,850 shares at the end of the period, with 123,340,000 shares released during the year[104] - The company's total restricted shares held by directors, supervisors, and senior executives amounted to 343,000 shares at the end of the period[104] - The company's internal employee shares remained unchanged during the reporting period, with no new issuances or changes in the number of shares[105] - The total number of ordinary shareholders at the end of the reporting period was 37.714 million, compared to 37.636 million at the end of the previous month[108] - Guangdong Supply and Marketing Group Co., Ltd. holds 30.25% of the shares, totaling 105.14 million shares, with no changes during the reporting period[108] - Guangdong New Supply and Marketing Commercial Chain Co., Ltd. holds 4.03% of the shares, totaling 14 million shares, all of which are pledged[108] - Guangdong Zhongke Baiyun Emerging Industry Venture Investment Fund Co., Ltd. holds 2.46% of the shares, totaling 8.550152 million shares[108] - Shenzhen Yueke Xintai Equity Investment Fund Management Co., Ltd. holds 2.20% of the shares, totaling 7.630949 million shares, with a decrease of 2.543551 million shares during the reporting period[108] - Guangdong New Supply and Marketing Tianrun Grain and Oil Group Co., Ltd. holds 1.21% of the shares, totaling 4.2 million shares[108] - Luo Xuanbin, an individual shareholder, holds 0.61% of the shares, totaling 2.105 million shares, with a decrease of 100,000 shares during the reporting period[108] - Société Générale, a foreign legal entity, holds 0.53% of the shares, totaling 1.8482 million shares, all newly added during the reporting period[108] - Pan Yaowen, an individual shareholder, holds 0.53% of the shares, totaling 1.84 million shares[108] - CITIC Securities Co., Ltd. holds 0.48% of the shares, totaling 1.658042 million shares, with an increase of 580,348 shares during the reporting period[108] - The company's controlling shareholder is Guangdong Supply and Marketing Group Co., Ltd., established on August 4, 2020, with a legal representative named Zou Ning[115] - The actual controller of the company is Guangdong Supply and Marketing Cooperative Association, established on February 1, 1951, with a legal representative named Ye Meifen[116] - The company's limited-sale shares decreased from 129,820,600 (37.35%) to 6,114,850 (1.76%) due to changes in shares held by domestic legal entities and natural persons[125] - The company's unrestricted shares increased from 217,771,400 (62.65%) to 341,477,150 (98.24%) due to the same changes[125] - The total number of shares remained unchanged at 347,592,000 (100.00%)[126] - The company's shares held by domestic legal entities decreased from 123,340,000 (35.48%) to 0[125] - The company's shares held by domestic natural persons decreased from 6,480,600 (1.87%) to 6,114,850 (1.76%)[125] - The company's shares held by other domestic entities decreased from 129,820,600 (37.35%) to 6,114,850 (1.76%)[125] - The company's shares held by foreign entities remained unchanged at 0[125] - The company's shares held by foreign natural persons remained unchanged at 0[125] Audit and Financial Reporting - The company's domestic accounting firm, Guangdong Sinong Accounting Firm (Special General Partnership), was paid RMB 1.78 million for audit services[41] - The company changed its audit firm to Guangdong Sinong Accounting Firm (Special General Partnership) in 2023, paying RMB 280,000 for internal control audit services[57] - The company received a standard unqualified audit opinion from Guangdong Sinong Accounting Firm for the 2023 financial statements[138] - The company changed its audit firm to Guangdong Sinong Certified Public Accountants (Special General Partnership) for the 2023 fiscal year[79] Legal and Arbitration Matters - The company reported total litigation and arbitration cases with amounts involved of RMB 4,626,790, RMB 2,472,190, and RMB 165,200, none of which formed estimated liabilities or had a significant impact on the company[58] Research and Development - Research and development expenses slightly increased to 4,004,897.29 yuan in 2023 from 3,928,482.85 yuan in 2022, showing a modest rise of about 2%[183] Investment and Income - Interest income for 2023 decreased by 25.1% to RMB 47.57 million from RMB 63.47 million in 2022[193] - Investment income for 2023 increased by 2.1% to RMB 79.22 million from RMB 77.58 million in 2022[193] - Credit impairment loss for 2023 was RMB -6.36 million, compared to a gain of RMB 13.40 million in 2022[193] - Asset impairment loss for 2023 improved to RMB -8.44 million from RMB -23.96 million in 2022[193] Comprehensive Income - The company's total comprehensive income for 2023 was 92,593,480.84 yuan, down from 149,079,564.54 yuan in 2022, indicating a decrease of about 37.9%[192] - Total comprehensive income for 2023 was RMB 232.08 million, up 74.1% from RMB 133.28 million in 2022[196] Shareholder Meetings - The 2023 First Extraordinary General Meeting had a 41.92% investor participation rate, held on January 4, 2023[88] - The 2022 Annual General Meeting saw a 41.76% investor participation rate, held on May 22, 2023[88] - The 2023 Second Extraordinary General Meeting had a 41.06% investor participation rate, held on September 7, 2023[88] - The 2023 Third Extraordinary General Meeting had a 40.59% investor participation rate, held on December 1, 2023[88] Related-Party Transactions - The company's total related-party transactions amounted to RMB 72.0931 million, accounting for 0.32% of the total purchase amount and 0.15% of the total sales amount[45] Board and Supervisory Committee Members - Lin Weiran, male, born in February 1981, currently serves as a director of Tianhe Co., Ltd. and Deputy General Manager of Guangdong Supply and Marketing Group Co., Ltd. [65] - Gao Shuping, female, born in September