hailir(SH:603639)2019-05-06 16:00Financial Performance - In 2018, the company's operating revenue reached ¥2,191,465,177.73, representing a growth of 37.88% compared to ¥1,589,421,937.70 in 2017[20]. - The net profit attributable to shareholders was ¥367,401,372.13, an increase of 28.45% from ¥286,035,336.33 in the previous year[20]. - The basic earnings per share rose to ¥2.19, marking a 26.59% increase from ¥1.73 in 2017[20]. - The net cash flow from operating activities surged by 509.23%, reaching ¥244,307,282.99, compared to a negative cash flow of ¥59,699,333.59 in 2017[20]. - Total assets increased by 40.71% to ¥3,229,574,444.83, up from ¥2,295,220,889.36 in 2017[20]. - Operating profit reached RMB 421.25 million, up 28.31% from RMB 328.32 million year-on-year[49]. - The company achieved a consolidated revenue of 2.191 billion yuan in 2018, representing a year-on-year growth of 37.88%[41]. - The company reported a total cost of CNY 1,416,767,703.87, with the pesticide segment accounting for 89.64% of total costs[57]. Dividend Policy - The company plans to distribute a cash dividend of 3 RMB per 10 shares to all shareholders, subject to approval at the shareholders' meeting[5]. - In 2018, the company continued with a cash dividend of 3 RMB per 10 shares, with a total cash dividend amounting to 50,819,958 RMB, representing 13.83% of the net profit attributable to ordinary shareholders[137]. - The cash dividend distribution plan for 2018 was based on a total share capital of 169,399,860 shares, with the final cash dividend amount subject to actual distribution[137]. - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be allocated for cash dividends when conditions are met[133]. - The company has committed to maintaining shareholder value through consistent dividend payments while ensuring long-term operational stability[139]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[7]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in its report[6]. - The company faces risks related to safety production and environmental protection due to the nature of its pesticide production, which involves flammable, explosive, and toxic substances[126]. - Fluctuations in raw material prices and production instability pose risks to the company's pesticide raw material products, influenced by market demand and environmental pressures[128]. - The company is exposed to risks from upstream raw material supply and price volatility, which can affect production costs and gross margins[129]. Research and Development - The company has been recognized as a "National Key High-tech Enterprise" and has established a strong R&D center since 2003[37]. - The company’s R&D expenses increased by 83.98% to RMB 90.68 million, indicating a strong focus on innovation[51]. - The company is focusing on expanding its business layout across raw materials, formulations, and exports to enhance its competitive edge[82]. - The company has developed new technologies for safe herbicides and high-efficiency pesticides, contributing to improved product performance[85]. - The company plans to enhance its product development capabilities, focusing on new compound research and expanding the production capacity of existing active ingredients[120]. Environmental Compliance - The company has a strong focus on safety and environmental protection, adhering to national regulations without any major violations during the reporting period[176]. - The company has established an environmental management system certified to meet the GB/T24001-2004idtISO14001:2004 standard[181]. - The company has implemented effective comprehensive treatment measures for waste water, waste gas, waste residue, and noise[181]. - The company has developed an emergency response plan for environmental incidents and conducted drills as required[188]. - The company has not experienced any major violations of environmental laws or regulations during the reporting period[190]. Market Position and Strategy - The company continues to focus on the research, production, and sales of pesticide formulations, intermediates, and raw materials, with no significant changes in its main business operations[27]. - The pesticide segment accounted for 91.05% of total revenue, with a revenue of CNY 1,995,448,576.78, but saw a decrease in gross margin by 3.39 percentage points[54]. - The company ranks 27th in the overall pesticide industry and 5th in the pesticide formulation segment according to the 2018 China Pesticide Industry Sales Top 100 List[79]. - The company is expanding its business model to include government procurement and cooperative purchasing with farmers' cooperatives[95]. - The company aims to enter the top ten in the pesticide industry and achieve a revenue of over 10 billion yuan within five years[119]. Corporate Governance - The audit report issued by Zhongxinghua Certified Public Accountants was a standard unqualified opinion[4]. - The company has established a commitment to transparency and accountability in its financial disclosures and investor communications[143]. - The company has appointed Zhongxinghua Accounting Firm as the auditor for the 2018 fiscal year, with an audit fee of RMB 700,000[153]. - The company has implemented a restricted stock incentive plan, which was approved in a board meeting on January 22, 2018[154]. - The company has not reported any issues regarding the integrity of its controlling shareholders or actual controllers[154].