Yangnong Chemical(SH:600486)2023-03-19 16:00Financial Performance - The company achieved a sales revenue of RMB 15.81 billion in 2022, representing a year-on-year increase of 33.52%[24]. - The net profit attributable to shareholders reached RMB 1.79 billion, up 46.82% compared to the previous year[24]. - The net profit after deducting non-recurring gains and losses was RMB 1.93 billion, reflecting a 69.92% increase year-on-year[17]. - The operating cash flow net amount was RMB 2.12 billion, an increase of 46.10% from the previous year[17]. - The company's total assets at the end of 2022 were RMB 14.79 billion, a 12.91% increase from the end of 2021[17]. - Basic earnings per share for 2022 were RMB 5.79, a 46.82% increase from 2021[18]. - The weighted average return on equity rose to 23.18%, an increase of 4.11 percentage points from the previous year[18]. - The company's operating revenue reached approximately CNY 15.81 billion in 2022, a year-on-year increase of 33.52% from CNY 11.84 billion in 2021[37]. - The gross profit margin improved by 2.61 percentage points to 26.03% compared to the previous year[41]. - The company reported a total revenue of 1.2 billion RMB for the year 2022, representing a year-on-year increase of 15%[99]. Dividend Distribution - The company plans to distribute a cash dividend of 13.0 CNY per 10 shares (including tax) and issue 3 bonus shares for every 10 shares held, totaling a cash dividend payout of 402,868,579.10 CNY and 92,969,672 bonus shares[4]. - The cash dividend ratio for the year is 22.45%[4]. - Over the past three years, the cumulative cash dividends distributed by the company accounted for 50.33% of the average distributable profits during that period[120]. - The company has consistently paid cash dividends for the last three years, with total cash dividends reaching 1.83 times the total raised funds since its listing[120]. Audit and Compliance - The company has received a standard unqualified audit report from Suya Jincheng Accounting Firm[3]. - The company has confirmed that more than half of the directors can guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has not faced any significant legal liabilities related to the annual report[3]. - The company has established a comprehensive internal control system, conducting monthly self-assessments of operational risks across five areas, with no major risk events reported during the year[126]. - The internal control audit conducted by Suya Jin Cheng Accounting Firm provided a standard unqualified opinion on the company's internal control system[128]. Market Position and Growth - The company is recognized as a national key high-tech enterprise and is the only Chinese company among the top 10 global agrochemical firms, with its core product, pyrethroid, ranking first in the domestic pesticide industry[28]. - The company maintained a strong market position in the pyrethroid sector, with a domestic market share of approximately 70% for its sanitary pyrethroids[56]. - The company ranked 2nd among China's top 100 pesticide sales enterprises in 2022 and has been included in the top 10 global agrochemical companies since 2019[56]. - The company plans to strengthen its market presence by expanding raw material sales and enhancing its formulation business, targeting growth in Southeast Asia, Europe, Japan, and the Americas[82]. Research and Development - The company has developed 12 new pesticide varieties and has been awarded over 750 domestic and international patents, showcasing its strong research and development capabilities[29]. - Research and development expenses rose to approximately CNY 498 million, an increase of 33.33% compared to the previous year[37]. - The company synthesized 2,980 new compounds in 2022, focusing on five products with good commercialization prospects[34]. - The company plans to prioritize technological innovation, focusing on the development of new pesticide products and improving existing product lines to maintain industry leadership[85]. Environmental Performance - The company achieved a significant reduction in CO2 emissions and major pollutants in wastewater and air, continuing to enhance its environmental performance[30]. - The company invested 28,949.6 million RMB in environmental protection during the reporting period[133]. - Jiangsu Yangnong has developed a carbon reduction action plan and is actively researching carbon reduction pathways as part of its commitment to green low-carbon development[146]. - The company has established emergency response plans for environmental incidents and conducted self-monitoring of environmental performance, with results consistently meeting standards[145]. Challenges and Risks - The company faced challenges such as logistics disruptions and raw material price fluctuations but managed to achieve record sales performance[24]. - The company faces significant challenges in maintaining stable operating performance due to global economic downturns and price declines in key products like glyphosate[77]. - The company faces risks from climate anomalies, currency fluctuations, market volatility, safety and environmental concerns, and geopolitical tensions, which it aims to mitigate through strategic measures[87][88]. Strategic Initiatives - The company plans to expand its business scope and amend its articles of association as part of its strategic initiatives[92]. - The company aims to enhance its development quality and efficiency, focusing on optimizing production layout and promoting transformation and upgrading to become a globally competitive agricultural chemical manufacturer[79]. - The company is undertaking multiple project constructions, including a digital flagship factory, to enhance operational efficiency and support future growth[86].