HLC(SH:600731)2025-04-28 09:30Financial Performance - The net profit attributable to shareholders for 2024 is CNY 265,402,035.13, with an undistributed profit at year-end of CNY 1,225,036,629.08[7] - The proposed cash dividend is CNY 2 per 10 shares, totaling CNY 111,748,483.20, which represents 42.11% of the net profit attributable to shareholders for 2024[7] - The company's operating revenue for 2024 reached ¥2,470,839,068.50, representing a year-on-year increase of 4.06% compared to ¥2,374,351,376.60 in 2023[23] - The net profit attributable to shareholders for 2024 was ¥265,402,035.13, a decrease of 3.06% from ¥273,777,847.66 in 2023[23] - The net profit after deducting non-recurring gains and losses increased by 33.73% to ¥246,651,152.98 in 2024 from ¥184,434,195.93 in 2023[23] - The cash flow from operating activities for 2024 was ¥371,131,401.58, down 9.45% from ¥409,859,513.87 in 2023[23] - The total assets at the end of 2024 were ¥4,586,333,606.52, an increase of 4.18% compared to ¥4,402,336,693.11 at the end of 2023[23] - The basic earnings per share for 2024 were ¥0.4750, a decrease of 4.47% from ¥0.4972 in 2023[24] - The weighted average return on equity for 2024 was 8.61%, down from 9.74% in 2023, a decrease of 1.13 percentage points[24] Dividend Policy - The company plans to maintain its current dividend distribution policy without issuing new shares from capital reserves[8] - The company plans to distribute a cash dividend of 2 RMB per 10 shares, totaling approximately 111.75 million RMB, which represents 40.82% of the net profit attributable to shareholders for the year 2023[154] - The cumulative cash dividend over the last three accounting years amounts to approximately 223.50 million RMB, with an average net profit of about 297.15 million RMB, resulting in a cash dividend ratio of 75.21%[159] Risk Management - The company faces various risks including policy, market, operational, and financial risks, which are detailed in the management discussion section[10] - The company is committed to maintaining a robust risk management framework to address potential market, liquidity, and credit risks associated with its derivative investments[80] - The company has established a risk management framework to address credit, liquidity, and market risks associated with its financial instruments[108] - The company faces potential risks from policy changes, including stricter environmental regulations that could impact production and operational costs[98][100] - The company is exposed to market competition risks due to the fragmented nature of the pesticide industry and increasing entry of new projects[102] - The company faces product substitution risks as the global market for carbamate pesticides is declining due to bans in developed countries, necessitating a shift towards more efficient and less toxic pesticide varieties[104] - Raw material supply and price volatility pose significant risks to the company's production costs and profit margins, particularly due to seasonal procurement challenges[105] - The company is exposed to safety production risks due to the hazardous nature of its chemical products, which could lead to accidents and financial losses if not managed properly[106] Research and Development - The R&D investment intensity reached 5.7%, with 252 active compounds synthesized and 20 invention patents applied for during the reporting period[34] - The company has established strategic cooperation agreements with partners to jointly develop new products[41] - The company is focusing on technological innovation in vegetable seed development, collaborating with research institutions to improve seed quality[65] - The company has developed 85 A-level insecticidal and acaricidal active compounds and 70 A-level fungicidal active compounds during the reporting period, indicating a strong focus on original innovation in green products[69] - Research and development expenses rose by 17.04% to CNY 142,559,341.54, reflecting increased investment in innovation[45] - The company plans to maintain a high level of R&D investment and enhance collaboration with research institutions to support the rapid development of new chemical materials[94] Market Expansion - The company expanded its market presence by registering 16 products in countries such as India, Pakistan, Thailand, and Argentina, adding 273 new customers[32] - The company achieved a total revenue of 2.471 billion RMB and a net profit attributable to the parent company of 265 million RMB during the reporting period[31] - International sales accounted for ¥1,349,153,909.61, reflecting a significant increase of 61.60% compared to the previous year[48] - The company is focusing on expanding its market presence and enhancing user data analytics capabilities[129] - The company aims to enhance its competitive edge by focusing on innovation, internationalization, and the integration of its supply chain[89] - The company plans to strengthen marketing efforts to tap into new and existing product market potential, aiming to expand market share[92] Corporate Governance - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[4] - The company has established a long-term mechanism to prevent the controlling shareholder from misappropriating company funds, ensuring operational independence[121] - The company has implemented performance evaluation standards and incentive mechanisms for directors, supervisors, and senior management[123] - The company emphasizes investor relations management, conducting regular performance briefings and engaging with investors through various channels[125] - The company has revised its internal control management system to enhance governance and compliance with laws and regulations[117] - The company maintains transparency in information disclosure, ensuring all investors have equal access to relevant information[124] Environmental Responsibility - The company has invested approximately 46.37 million yuan in environmental protection during the reporting period[166] - The company has a comprehensive wastewater treatment facility with a daily processing capacity of 10,000 tons[169] - The company has installed online monitoring systems for wastewater and exhaust emissions, which are connected to environmental protection departments[170] - The company has established an ISO14001 environmental management system and has obtained environmental pollution liability insurance for the year 2024[175] - The company has implemented measures to reduce carbon emissions and has achieved stable compliance in wastewater and exhaust emissions[177] - The company has actively participated in international low-carbon supply chain initiatives and completed carbon footprint assessments for several products[177] Subsidiaries and Investments - The company holds a 77.42% stake in subsidiary Haili Gui, which reported total assets of approximately ¥722.61 million and a net profit of ¥23.32 million during the reporting period[82] - Haili Zhuo, another subsidiary with a 51% ownership, reported total assets of approximately ¥167.88 million and a net profit of ¥26.23 million[82] - The company has strengthened management control over subsidiaries, ensuring compliance and efficient operations through regular performance analysis meetings[163] - The company provided a guarantee of 35,000,000 RMB for its wholly-owned subsidiary "Haili Changde" during the reporting period[193] - The company has a guarantee of 24,200,000 RMB for its controlling subsidiary "Haili Guixi" during the reporting period[193] - The company has a guarantee of 18,500,000 RMB for its wholly-owned subsidiary "Haili Ningxia" during the reporting period[194] Operational Efficiency - The company is actively pursuing technological upgrades and the construction of smart factory systems to enhance operational efficiency[35] - The company has implemented a performance-based compensation policy, linking employee salaries to company performance and individual contributions, ensuring competitive compensation for key positions[151] - The company plans to implement new operational strategies aimed at reducing production costs by 5% over the next year[130] - The company has established a comprehensive employee training system, with plans for various training programs in 2024, including safety training and management training, to enhance employee skills and career development[152] Future Outlook - The future plans and projections mentioned in the report are subject to uncertainties and do not constitute a commitment to investors[9] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10% to 1.32 billion yuan[130] - The company aims to achieve a gross margin of 40% in the upcoming quarter, up from 35% in the previous quarter[130] - The company plans to explore potential mergers and acquisitions to strengthen its market position[129] - The management team has undergone changes, with several key executives leaving, which may impact strategic direction[129]