Yangnong Chemical(SH:600486)2022-03-28 16:00Financial Performance - The company achieved a total revenue of 11.84 billion RMB in 2021, marking a year-on-year increase of 20.45%[22] - The net profit attributable to shareholders reached 1.22 billion RMB, reflecting a slight increase of 1.02% compared to the previous year[22] - The net cash flow from operating activities was 1.45 billion RMB, up by 5.55% year-on-year[22] - The company's total assets increased by 20.26% to 13.10 billion RMB by the end of 2021[22] - The weighted average return on equity decreased to 19.08%, down by 3.12 percentage points from the previous year[16] - The company reported a basic earnings per share of 3.943 RMB, a 1.02% increase from 2020[16] - The company's operating revenue for 2021 reached ¥11,841,464,403.89, representing a 20.45% increase compared to ¥9,831,156,365.16 in the previous year[35] - Operating costs increased by 25.76% to ¥9,110,424,890.35 from ¥7,244,451,247.98, primarily due to rising raw material prices[35] - The gross profit margin for the pesticide segment decreased by 3.11 percentage points to 23.43%[39] - The company achieved a significant reduction in financial expenses by 44.88%, down to ¥98,598,107.77 from ¥178,886,195.09[36] Dividend Distribution - The company plans to distribute a cash dividend of 6.5 CNY per 10 shares, totaling approximately 201.43 million CNY (including tax), with a cash dividend ratio of 16.48% for the year 2021[4] - The company has consistently distributed cash dividends over the past three years, with a cumulative distribution ratio of 61.60% of the average distributable profit during that period[113] - The cash dividend payout ratio for the year 2021 is 16.48%[114] Research and Development - The company has received over 600 domestic and international patent authorizations, reflecting its strong research and development capabilities[26] - The company applied for 75 domestic invention patents and 5 PCT patents, with 40 patents granted in 2021[32] - Research and development expenses rose by 12.40% to ¥373,534,510.49, reflecting the company's increased investment in innovation[36] - Total R&D investment amounted to 375,244,872.12 CNY, representing 3.17% of operating revenue, with capitalized R&D accounting for 0.69%[46] - The company employed 399 R&D personnel, making up 12.80% of the total workforce, with 18 holding doctoral degrees[47] Market Performance - The domestic pesticide market saw a 7% year-on-year growth, driven by brand formulation sales and new product launches[28] - The overseas trade business experienced a significant growth of 93.4% year-on-year, with strong performance in markets such as the Americas, Eastern Europe, and the Asia-Pacific[28] - The company is recognized as one of the top twenty pesticide exporters in China and ranked second in the national agrochemical industry[28] - The company holds approximately 70% market share in domestic health pyrethroids and ranks second among China's top 100 pesticide sales companies in 2021[54] Operational Efficiency - The company is focusing on enhancing efficiency and reducing costs amidst ongoing market pressures[22] - The company has implemented various cost control measures to mitigate the impact of rising raw material prices and ensure supply stability[31] - The company achieved a historical high in production levels by optimizing production processes and enhancing energy efficiency[31] - The company's production model is based on sales orders, ensuring efficient production planning and execution[55] Corporate Governance - The company is committed to improving corporate governance and has conducted self-inspections as per regulatory requirements[86] - The company’s independent director, Chen Liuping, resigned after six years, and Ren Yongping was elected as a new independent director[86] - The company has a remuneration system for directors and supervisors that was approved by the shareholders' meeting[98] - The company’s senior management remuneration is linked to the company's operating performance as per the established assessment plan[99] Environmental Management - The company is classified as a key pollutant discharge unit and complies with specific environmental discharge standards[124] - The company has established wastewater treatment facilities with a daily capacity of 12,000 tons at two sites, ensuring compliance with pollution discharge standards[126] - The company has implemented a comprehensive hazardous waste management system, ensuring all hazardous waste is transferred and disposed of in compliance with regulations[126] - The company has achieved a 100% leak repair rate in its gas emission management, enhancing its ability to control odor emissions[133] Strategic Initiatives - The company plans to leverage its strong product structure and technological capabilities to capitalize on growth opportunities in the agricultural sector[23] - The company aims to enhance its R&D capabilities in localized plant protection, targeting rapid growth in performance and becoming a benchmark for innovation in the agricultural chemical industry[74] - The company plans to strengthen market construction and achieve high growth in operating performance by deepening customer relationships and expanding product sales[76] - The company is exploring potential mergers and acquisitions to strengthen its position in the agricultural sector[95] Risk Management - The company has established a comprehensive risk identification and assessment process to mitigate operational risks[117] - The company faces challenges such as macroeconomic uncertainties and increased production costs due to rising energy prices, which may impact the agricultural chemical market[73] - The company sees opportunities in national food security initiatives and the acceleration of transgenic commercialization, which could boost demand for agricultural chemical products[72] Employee Management - The total number of employees in the company and its main subsidiaries is 3,118, with 311 in the parent company and 2,807 in subsidiaries[109] - The company has developed training programs to enhance employee skills and leadership capabilities[112] - The management team includes experienced professionals, with the average age of executives being around 50 years, showcasing a blend of experience and leadership[93]