Cynda(SH:603086)2019-04-09 16:00Financial Performance - In 2018, the company's operating revenue reached approximately CNY 1.64 billion, representing a 46.21% increase compared to CNY 1.12 billion in 2017[18]. - The net profit attributable to shareholders was approximately CNY 251 million, a significant increase of 128.00% from CNY 110 million in the previous year[18]. - The net cash flow from operating activities was approximately CNY 157 million, up 115.19% from CNY 73 million in 2017[18]. - The company's total assets increased by 25.91% to approximately CNY 1.73 billion at the end of 2018, compared to CNY 1.37 billion at the end of 2017[18]. - The basic earnings per share rose to CNY 2.24, reflecting an increase of 111.32% from CNY 1.06 in 2017[19]. - The weighted average return on equity improved to 20.28%, an increase of 8.46 percentage points from 11.82% in the previous year[19]. - The company's net assets attributable to shareholders increased by 21.39% to approximately CNY 1.36 billion at the end of 2018[18]. - The total annual operating revenue for 2018 was approximately CNY 1.73 billion, with a net profit attributable to shareholders of approximately CNY 251.07 million[22]. Revenue Breakdown - In Q1 2018, the company's operating revenue was approximately CNY 311.98 million, with net profit attributable to shareholders at CNY 28.86 million[22]. - In Q2 2018, operating revenue increased to approximately CNY 523.94 million, with net profit attributable to shareholders rising to CNY 94.25 million[22]. - In Q3 2018, the company reported operating revenue of approximately CNY 311.30 million and net profit attributable to shareholders of CNY 56.19 million[22]. - In Q4 2018, operating revenue was approximately CNY 488.67 million, with net profit attributable to shareholders at CNY 71.75 million[22]. - The company exported products worth USD 116.84 million in 2018, an increase of 59.86% compared to the previous year[46]. - The company's revenue from domestic sales reached ¥50,510.08 million, representing a year-on-year increase of 60.37%[97]. - Direct export revenue was ¥77,963.43 million, with a year-on-year growth of 57.46%[97]. - Indirect export revenue amounted to ¥30,880.79 million, showing a slight increase of 3.47% year-on-year[97]. Operational Highlights - The company operates in the chemical raw materials and chemical products manufacturing industry, specifically in the pesticide manufacturing sector[34]. - The company employs both direct sales and agency sales models for domestic sales, while utilizing self-export and indirect export models for international sales[32][33]. - The company has established a complete R&D, procurement, production, quality inspection, marketing, and sales system to ensure stable and sustainable development[28]. - The company collaborates with Nankai University and Central China Normal University for research and development of new products, enhancing its technological innovation capabilities[29]. - A new production project with a capacity of 6,000 tons of active ingredients and 10,000 tons of formulations is under construction to strengthen product advantages[40]. - The company has implemented strict quality control standards across all production processes to ensure product quality meets international standards[39]. - The production volume of herbicides increased by 16.32% to 8,135.35 tons, while sales volume rose by 20.17% to 8,056.13 tons[57]. Research and Development - Research and development expenses totaled CNY 87,339,996.52, which is an increase of 58.38% year-on-year, accounting for 5.34% of operating revenue[67]. - The company has made significant progress in R&D, including the development of new structured compounds in collaboration with universities and the optimization of existing product synthesis processes[85]. - The company has established a "Xianda Agricultural Technology Innovation Research Institute" in collaboration with universities to enhance R&D capabilities[38]. - The company is focusing on developing environmentally friendly pesticide products and enhancing production processes to comply with national safety and environmental regulations[79]. Environmental Management - The company has established a comprehensive environmental management system certified to meet ISO 14001 standards, ensuring effective pollution control measures are in place[156]. - The company reported a total ammonia nitrogen discharge of 0.235 tons in 2018, with a concentration of 1.61 mg/L, which is within the permitted limits[157]. - The total COD discharge for the company was 18.465 tons in 2018, with a concentration of 261 mg/L, also compliant with regulatory standards[157]. - The company has established various environmental protection facilities, including low-temperature refrigerants and RTO regenerative thermal oxidizers, which have been operational since August 2018[163]. - The company has implemented an emergency response plan for environmental pollution incidents, with regular drills conducted[166]. Shareholder and Capital Structure - The total number of ordinary shares increased from 80,000,000 to 112,000,000, reflecting a capital increase of 32,000,000 shares[172]. - The company distributed cash dividends of 12,000,000 RMB, amounting to 1.5 RMB per 10 shares[173]. - The number of restricted shares released for circulation was 31,795,531 shares, effective from May 11, 2018[173]. - The largest shareholder, Wang Xianquan, holds 37,537,208 shares, representing 33.52% of the total shares[180]. - The top ten shareholders include various entities, with Shenzhen Songhe Growth Investment holding 5,412,400 shares (4.83%) and Nantong Songhe Investment holding 3,243,340 shares (2.90%)[180]. - The company has no controlling shareholder or actual controller changes during the reporting period[183]. Risk Management - The company faces risks from market competition, with potential price declines affecting profitability, prompting a focus on product optimization and new product development[113]. - The company is exposed to raw material price volatility, which could impact production costs, and plans to strengthen procurement management to mitigate this risk[114]. - The company has a significant portion of export revenue, making it vulnerable to exchange rate fluctuations, and will enhance risk assessment and cash flow management to address this[115]. Corporate Governance - The company has implemented a robust internal control system to protect the rights and interests of shareholders and stakeholders, ensuring compliance with relevant laws and regulations[151]. - The company appointed Dahua Certified Public Accountants (Special General Partnership) as the auditor for the 2018 fiscal year, with an audit fee of RMB 600,000[138]. - The company has not received any penalties from the China Securities Regulatory Commission or other relevant departments during the reporting period[139]. - The management team includes individuals with extensive experience in various sectors, enhancing the company's strategic capabilities[192]. Employee Management - The total number of employees in the parent company and major subsidiaries is 1,143, with 420 in the parent company and 698 in subsidiaries[197]. - Employee composition includes 790 production personnel, 89 sales personnel, 103 technical personnel, 31 financial personnel, and 130 administrative personnel[197]. - The company has implemented three salary schemes based on different job roles: Production System Salary Scheme, Administrative System Salary Scheme, and Sales System Salary Scheme[198]. - In 2018, the company introduced a consulting plan to improve management, completing training on performance evaluation, qualification, and budgeting systems[200].