LMGF(SZ:002734)2016-03-30 03:43Financial Performance - The company's operating revenue for 2015 was CNY 834,544,051.70, representing a 10.10% increase from CNY 757,952,977.85 in 2014[16] - The net profit attributable to shareholders for 2015 was CNY 67,439,600.00, a 39.43% increase compared to CNY 48,366,766.85 in 2014[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 63,267,670.97, up 44.56% from CNY 43,767,166.25 in 2014[16] - The net cash flow from operating activities increased by 45.03% to CNY 91,238,821.99 from CNY 62,912,067.78 in 2014[16] - The total assets at the end of 2015 were CNY 1,151,142,023.00, a 23.70% increase from CNY 930,613,000.82 at the end of 2014[17] - The net assets attributable to shareholders increased by 52.43% to CNY 770,917,111.23 from CNY 505,759,249.51 in 2014[17] - The basic earnings per share for 2015 was CNY 0.53, a 6.00% increase from CNY 0.50 in 2014[16] - The diluted earnings per share for 2015 was also CNY 0.53, reflecting the same 6.00% increase from CNY 0.50 in 2014[16] - The weighted average return on equity for 2015 was 9.23%, down from 10.15% in 2014[16] - The company's total revenue for 2015 was ¥834,544,051.70, representing a year-on-year increase of 10.10% compared to ¥757,952,977.85 in 2014[36] - The cost of goods sold for 2015 was ¥779,946,123.86, which is a 9.31% increase from ¥713,517,005.47 in 2014[36] - The gross profit margin for the pesticide segment was 25.11%, up from 22.54% in the previous year, indicating a 2.57% increase[40] - The company’s R&D investment increased by 44.92% to ¥37,538,985.80 in 2015, accounting for 4.50% of total revenue[49] - The company’s revenue from the domestic market was ¥279,251,753.71, a 7.19% increase, while revenue from international markets rose by 11.63% to ¥555,292,297.99[38] - The company reported a total revenue of 1.5 billion RMB for the fiscal year 2015, representing a year-over-year increase of 10%[93] Dividend Policy - The company plans to distribute a cash dividend of CNY 3 per 10 shares to all shareholders, based on a total of 130,000,000 shares[4] - The company emphasizes the importance of maintaining a stable profit distribution policy, prioritizing cash dividends when conditions allow[81] - The company plans to distribute at least 20% of its distributable profits in cash annually, or 60% of the average annual distributable profits over three consecutive years[82] - For the fiscal year 2015, the company proposed a cash dividend of 3.00 CNY per 10 shares, totaling 39,000,000 CNY, which is 100% of the distributable profits[91] - The company reported a net profit of 67,439,600 CNY for 2015, with cash dividends representing 57.83% of the net profit attributable to ordinary shareholders[91] - The company has not proposed any cash dividends for the fiscal year 2013, indicating a shift in dividend policy over the years[88] - The company’s cumulative distributable profits must be positive for cash dividends to be implemented[83] - The company must have a standard unqualified audit report for the financial year to proceed with cash dividends[83] - The company’s cash dividend policy is compliant with its articles of association and shareholder resolutions[86] - The company has established a mechanism for adjusting its profit distribution policy, which requires board approval and shareholder meeting consent[84] - The company has engaged with minority shareholders to gather their opinions on dividend proposals[84] Market Expansion and Strategy - The company expanded its international market presence by establishing a subsidiary in Cambodia and enhancing its operations in East Africa, particularly in Kenya[33] - The company aims to expand its international market presence, particularly in Southeast Asia, the Middle East, and Africa, while also exploring emerging markets in Latin America[74] - The company plans to enhance its core competitiveness and aims for substantial breakthroughs in transformation, innovation, and diversification over the next five years[72] - The company is focusing on technology innovation by establishing an academic workstation and collaborating with universities for the development of new products and clean production technologies[73] - New product development efforts included the introduction of three innovative chemical products, expected to contribute an additional 200 million RMB in revenue[94] - The company plans to issue 32.7543 million A-shares to raise approximately RMB 759.9006 million, with a subscription from controlling shareholder Li Xinsheng amounting to RMB 280.1246 million for 12.0743 million shares[112] Environmental Management - The company is committed to environmental management, having obtained ISO14001 certification and continuously improving its clean production technologies[29] - The company has established wastewater treatment facilities capable of processing 6,000 cubic meters of wastewater daily, ensuring compliance with local discharge standards[128] - The company has implemented a comprehensive environmental management system, achieving ISO9001, ISO14001, and OHSAS18001 certifications[126] - The company has reduced its pollutant emissions and improved resource recycling rates through technological upgrades and clean production practices[131] - The company has a strong focus on environmental protection, adhering to national regulations and implementing various pollution control measures[127] - The company has established a dedicated environmental management organization to oversee compliance and pollution prevention efforts[127] - The company has conducted emergency response drills for hazardous chemical leaks and other environmental incidents to enhance its preparedness[131] - The company has not faced any significant environmental penalties or major pollution incidents during the reporting period[131] Research and Development - The company successfully completed the technical upgrade project for the production of 25,000 tons of complex manganese zinc, significantly improving product quality and yield, reaching world-class standards[32] - The number of R&D personnel rose to 176, a 6.02% increase from 166 in 2014, with R&D personnel now making up 16.15% of the workforce[49] - The company focuses on developing high-end formulations and increasing market share in domestic markets, particularly in differentiated products[33] - The company emphasizes technological innovation and quality management, having achieved ISO9001 certification and developed advanced wastewater treatment technologies[28] Management and Governance - The company has established a comprehensive internal control system to protect the rights of all shareholders and creditors[122] - The company has a performance evaluation system linking senior management's performance directly to their remuneration[163] - The governance structure includes a board of directors, a supervisory board, and specialized committees, with 5 shareholder meetings and 15 board meetings held during the reporting period[172] - The company has maintained a focus on leadership continuity with the appointment of experienced individuals in key positions[153] - The company has a strong emphasis on environmental management, with a dedicated environmental protection department led by a qualified professional[159] - The company has established an independent financial department with a complete financial accounting system, enabling it to make independent financial decisions and conduct tax declarations independently[177] Shareholder Structure - The company has a total share capital of 130,000,000 shares after a capital increase of 55,000,000 shares through a bonus issue[135] - The total number of shareholders holding shares over 5% included Li Ming with 36,465,000 shares (28.05%) and Beijing Shangqi Jiuding Investment Center with 11,895,000 shares (9.15%)[142] - The total number of restricted shares at the beginning of the period was 75 million, with 22.5 million shares released during the period, resulting in 97.5 million restricted shares at the end[138] - The company’s stock was listed on the Shenzhen Stock Exchange on January 27, 2015[139] - The company’s shareholding structure saw significant changes due to the issuance of new shares and the release of restricted shares[140] Risks and Challenges - The company faces risks from market competition, particularly from Indian manufacturers in the fungicide sector, which could impact pricing and profit margins[75] - The company is exposed to raw material price fluctuations, particularly for petrochemical products, which could affect operational costs[75] - The company acknowledges potential risks from environmental regulations and the possibility of certain pesticide products being banned or restricted in international markets[77]