HLC(SH:600731)2022-04-06 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of RMB 268,402,640.46, with an undistributed profit at the end of the year amounting to RMB 540,596,397.88[5]. - The company's operating revenue for 2021 was CNY 2,702,324,118, representing a 23.79% increase compared to CNY 2,183,017,101 in 2020[23]. - The net profit attributable to shareholders for 2021 was CNY 268,402,640, a decrease of 9.44% from CNY 296,395,378 in 2020[23]. - The cash flow from operating activities for 2021 was CNY 121,943,073, down 72.18% from CNY 438,354,074 in 2020[23]. - Basic earnings per share for 2021 were CNY 0.6431, a decline of 22.93% from CNY 0.8344 in 2020[24]. - The weighted average return on equity for 2021 was 16.30%, down 6.17 percentage points from 22.47% in 2020[26]. - The total assets at the end of 2021 were CNY 3,245,037,226.62, a slight increase of 1.63% from CNY 3,193,068,140.29 at the end of 2020[23]. - The company reported a significant decrease in cash flow from financing activities, totaling -¥439,815,164.95[67]. - The company's cash and cash equivalents decreased by 44.02% to ¥471,212,914.31, primarily due to reduced bank loans and increased material procurement payments[69]. - The company reported a total revenue of 23.4 billion with a net profit margin of approximately 3.9%[147]. Risk Management - The company faces various risks including policy, market, operational, and financial risks, which are discussed in detail in the management analysis section[9]. - The company has a comprehensive risk management strategy in place to address potential uncertainties in future operations[9]. - The company is exposed to market competition risks due to the fragmented nature of the pesticide industry and the entry of new domestic and international competitors[115]. - The company faces risks from potential changes in environmental protection policies that could lead to increased operational costs and production limitations[112]. - Raw material supply and price volatility pose significant risks to the company's production costs and gross margins, particularly due to seasonal procurement challenges and increasing demand as production scales up[118]. - The company has established a risk management framework to address various financial risks, including credit, liquidity, and market risks, ensuring regular assessments and updates to its policies[123]. Strategic Initiatives - The board proposed not to distribute profits for 2021 and not to increase capital from the capital reserve, aiming to enhance competitiveness and fund key projects in 2022[5]. - The company is focusing on significant projects in Ningxia and Guixi, which will require substantial capital investment to achieve strategic goals[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[30]. - The company aims to enhance competitiveness through a strategy focused on "industrial scale, product diversification, green production, international operations, precise services, and scientific management"[106]. - The company is actively involved in mergers and acquisitions within the agricultural chemical sector, consolidating industry resources[79]. - The company plans to achieve an annual production capacity of 4,000 tons of methamidophos and 5,000 tons of methyl thiophanate at its Ningxia base upon completion[37]. Research and Development - R&D investment accounted for 3.79% of total revenue, with 25 new patent applications and 12 patents granted during the reporting period[36]. - The company has established a strong R&D capability, achieving significant breakthroughs in continuous process technology for several products[36]. - The company is focusing on green product innovation and has over 100 new pesticide compounds under research, with several projects recognized as key national research initiatives[88]. - The company is investing in R&D, allocating 5% of its revenue towards developing new technologies and products[152]. Corporate Governance - The company conducted a governance self-inspection in 2021, addressing issues related to fund occupation by related parties[133]. - The board of directors consists of 9 members, including 3 independent directors, and operated within legal requirements[136]. - The company has not engaged in any related party transactions that would affect its independence[142]. - The company has established a robust internal control management system, continuously optimizing its governance structure and internal control systems based on operational realities, achieving the expected internal control objectives[189]. Environmental Compliance - The company has implemented automatic monitoring for key pollutants, ensuring compliance with environmental standards[198]. - The total COD discharge was 109.698 tons, with a concentration of 74.247 mg/L, below the limit of 135.75 tons/year[198]. - The company processed 5,407.1531 tons of pesticide waste through its own incineration facility[200]. - The company has a total of 1 wastewater discharge outlet, with a pH level of 7, compliant with the standard of 6-9[198]. Market Position - The company ranked 40th among the top 100 pesticide sales in China and 16th in pesticide exports in 2021, with approximately 50% of its products sold internationally[82]. - The company is recognized as a leading enterprise in the domestic carbamate pesticide market, with a high market share[50]. - The company has been awarded multiple national and provincial honors for product quality and innovation, enhancing its brand reputation[52]. Human Resources - The company employed a total of 1,844 staff, with 116 in the parent company and 1,728 in major subsidiaries[172]. - The workforce includes 889 production personnel, 101 sales personnel, 314 technical personnel, 51 financial personnel, and 225 administrative personnel[172]. - The company has established a multi-level compensation incentive policy linking employee salaries to company performance and individual performance[175]. - In 2021, the company organized various training programs, including safety training and modern enterprise management training, to enhance employee skills[176].