Yangnong Chemical(SH:600486)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was CNY 8,701,471,746.53, representing a 1.38% increase compared to CNY 8,583,306,585.81 in 2018[24]. - The net profit attributable to shareholders for 2019 was CNY 1,169,770,145.98, a 19.40% increase from CNY 979,674,835.22 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was CNY 884,088,654.31, showing a decrease of 8.79% compared to CNY 969,253,520.00 in 2018[24]. - The net cash flow from operating activities was CNY 1,370,154,497.15, which is a 2.35% increase from CNY 1,338,704,839.59 in 2018[24]. - The total assets at the end of 2019 were CNY 9,637,484,864.40, reflecting an 8.13% decrease from CNY 10,489,894,319.86 in 2018[24]. - The net assets attributable to shareholders at the end of 2019 were CNY 5,054,374,473.91, a slight decrease of 0.62% from CNY 5,086,140,927.48 in 2018[24]. - The basic earnings per share (EPS) for 2019 was CNY 3.775, representing a 19.40% increase compared to CNY 3.161 in 2018[25]. - The weighted average return on equity (ROE) increased to 25.53% in 2019, up by 1.03 percentage points from 24.50% in 2018[25]. - The total profit amounted to 1.398 billion RMB, with a year-on-year increase of 17.51%, and the net profit attributable to shareholders reached 1.170 billion RMB, up by 19.40%[48]. Dividends and Shareholder Returns - The proposed cash dividend for 2019 is CNY 6.5 per 10 shares, with a total cash dividend payout of CNY 201,434,289.55, resulting in a cash dividend ratio of 17.22%[6]. - The company has consistently distributed cash dividends over the past three years, with a cumulative cash distribution ratio of 90.56% of the average distributable profit during that period[131]. - The company has a cash dividend policy that prioritizes cash distributions to shareholders, aiming for a minimum of 30% of the average distributable profit over the last three years[130]. Acquisitions and Investments - The company acquired 100% equity of Zhonghua Crop and Agricultural Research Company, leading to significant changes in financial metrics and an increase in liabilities[37]. - The company completed the acquisition of agricultural research companies, enhancing its integrated research, production, and sales capabilities, and expanding its product variety and market channels[42]. - The company completed the acquisition of 100% equity in Sinochem Crop Protection Co., Ltd. and Shenyang Sinochem Agrochemical R&D Co., Ltd. in September 2019, which will no longer be classified as related transactions[156]. - The company invested CNY 22,855.97 million in environmental protection, accounting for 2.63% of operating revenue[102]. - The company invested 132 million RMB to acquire 100% equity of Baoye Company, with the registration of the equity change completed on January 16, 2020[173]. Research and Development - The company developed 72 new products, including 4 innovative varieties and 11 national key new products, and has been awarded over 22 provincial and national technology awards[41]. - The company has over 400 patents authorized, showcasing its strong commitment to research and development[41]. - The company has a total of 21 projects focused on raw materials and intermediates research, and 10 projects on formulation development[86]. - The company synthesized over 50 new compounds during the reporting period, with several showing promising activity in initial screenings[86]. - Research and development expenses totaled CNY 333,963,075.25, accounting for 3.84% of the total operating revenue[67]. Environmental Management - The company has established a high-standard waste treatment system, achieving full life cycle management of chemicals in the agricultural chemical industry[43]. - The company has implemented a centralized treatment system for waste gas, utilizing two RTO thermal oxidation units with a capacity of 40,000 Nm³/hr each, enhancing the control and detection of unorganized emissions[182]. - The company has established a comprehensive wastewater treatment facility with a daily capacity of 12,000 tons at two plants, ensuring stable and compliant pollutant discharge in 2019[182]. - The company has compiled environmental impact reports for all construction projects, which have been approved by local environmental authorities[186]. - The company has developed emergency response plans for environmental incidents, with annual drills conducted at least once for preparedness[187]. Market Position and Strategy - The company is the largest player in the domestic biorational pesticide industry, with a leading position in the production and revenue of pyrethroid pesticides[40]. - The company aims to diversify its pesticide offerings to mitigate the impact of climate variability on agricultural demand[35]. - The company has a market share of approximately 70% in the domestic health pyrethroid market and ranks third in China's pesticide exports[81]. - The company ranks among the top ten in China's pesticide export and sales, being the third in exports and fifth in sales, and has been recognized as one of the top 20 global agrochemical companies for five consecutive years[49]. - The company aims to enhance its market presence by deepening cooperation with strategic customers and expanding sales in both domestic and international markets[119]. Risks and Challenges - The company faces external challenges including insufficient foreign demand and price declines affecting major profit products, which could significantly impact performance[113]. - The company is facing foreign exchange risks due to significant export volumes and will strengthen its research on international trade and exchange rate policies[126]. - The company has acknowledged the ongoing risks from international trade tensions that could affect product prices and sales volumes[126]. - The company has committed to improving safety and environmental management in its production processes, which involve hazardous materials and high-risk operations[127]. Shareholder Structure - The total number of ordinary shareholders at the end of the reporting period was 12,027, down from 15,971 at the end of the previous month[193]. - Jiangsu Yangnong Chemical Group Co., Ltd. held 112,084,812 shares, representing 36.17% of the total shares[197]. - The top ten shareholders included Jiangsu Yangnong Chemical Group Co., Ltd. and Yangzhou Fuyuan Chemical Technology Co., Ltd., both state-owned entities[197]. - The company reported no changes in the total number of ordinary shares and capital structure during the reporting period[192]. - Jiangsu Yangnong Chemical Group Co., Ltd. is the controlling shareholder, established on October 20, 1990, primarily engaged in the manufacturing and sales of pesticides and chemicals[200].