hailir(SH:603639)2020-04-27 16:00Dividend Policy - The company plans to distribute a cash dividend of 3 RMB per 10 shares (including tax) to all shareholders, and will also increase capital by 4 shares for every 10 shares held, subject to shareholder approval[5] - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed as cash dividends, provided certain conditions are met[157] - In 2019, the company distributed a cash dividend of 3 RMB per 10 shares and increased capital reserves by 4 shares per 10 shares[162] - The company’s cash dividends for 2019 amounted to approximately 50.89 million RMB, representing 16.11% of the net profit attributable to ordinary shareholders[162] - The company’s cash dividend distribution for 2018 was also 3 RMB per 10 shares, with a total of approximately 50.82 million RMB distributed[162] - The company’s cash dividend distribution for 2017 was 3 RMB per 10 shares, along with a capital reserve increase of 4 shares per 10 shares, totaling approximately 36 million RMB[162] Financial Performance - The company’s operating revenue for 2019 was CNY 2,466,784,002.17, representing a year-on-year increase of 12.56% compared to CNY 2,191,465,177.73 in 2018[21] - The net profit attributable to shareholders decreased by 14.05% to CNY 315,784,848.62 in 2019 from CNY 367,401,372.13 in 2018[21] - The net cash flow from operating activities significantly increased by 140.10% to CNY 586,577,102.59 in 2019, compared to CNY 244,307,282.99 in 2018[21] - The total assets at the end of 2019 were CNY 3,497,088,340.99, an increase of 8.28% from CNY 3,229,574,444.83 at the end of 2018[21] - The basic earnings per share for 2019 was CNY 1.88, down 14.16% from CNY 2.19 in 2018[22] - The weighted average return on equity decreased by 5.48 percentage points to 15.16% in 2019 from 20.64% in 2018[22] - The company reported a significant increase in cash flow due to adjustments in operational strategies, including reducing advance payments and increasing accounts payable[23] - The net assets attributable to shareholders increased by 14.64% to CNY 2,243,005,673.71 at the end of 2019 from CNY 1,956,564,549.58 at the end of 2018[21] - The company experienced a decline in net profit primarily due to falling raw material prices impacting profitability levels[23] - The company reported non-recurring gains of CNY 18,377,179.04 in 2019, compared to CNY 4,834,515.63 in 2018[28] Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[8] - The company has a comprehensive risk management strategy in place to address potential operational risks[8] - The company emphasizes the importance of understanding the risks associated with forward-looking statements regarding future development plans and strategies[6] - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[7] - The company acknowledges risks related to safety production and environmental protection, implementing comprehensive management and preventive measures[145][146] - The company faces price volatility risks in raw materials and production instability, responding with increased R&D investment and cost control measures[147][148] - The company is actively monitoring changes in agricultural and chemical industry regulations to mitigate risks associated with compliance[154] - The company is exposed to foreign exchange risks due to increasing export ratios, with a focus on mitigating these through hedging strategies[155] Business Operations - The company primarily engages in the research, production, and sales of pesticide formulations, intermediates, active ingredients, and water-soluble fertilizers, with no significant changes in its main business operations[32] - The company has established a centralized procurement model for bulk raw materials, signing large contracts with suppliers to secure annual procurement intentions and mitigate risks associated with price fluctuations[33] - The company has developed a diverse product range, holding 218 pesticide registration certificates, with a focus on integrating formulations, active ingredients, and intermediates to enhance overall competitiveness[43] - The company has a strong research and development capability, recognized as a key high-tech enterprise and has established a comprehensive pesticide R&D center covering all aspects of pesticide development[42] - The company has expanded its overseas market presence, obtaining support registrations for over 900 products in 50 countries, including Australia and New Zealand, and is actively pursuing registrations in additional countries[44] - The company aims to achieve a business layout focusing on active ingredients, formulations, and exports, while continuously enhancing its product dimensions and business channels[44] - The company has reported a significant increase in the market scale of its main active ingredients, with global production capacity for imidacloprid around 30,000 tons, predominantly located in China[35] - The company has acquired Kaiyuanxiang, adding the active ingredient Mavridine to its product portfolio, further strengthening its integrated advantages[41] - The company emphasizes product quality and efficacy, establishing a strong brand reputation in the market, recognized as one of the most favored pesticide brands by Chinese farmers[44] Industry Overview - The total assets of the pesticide industry in China reached 266.05 billion RMB, with a 5.6% year-on-year increase[47] - The total profit of the pesticide industry was 19.78 billion RMB, a slight decrease of 0.2% year-on-year[47] - The production of chemical pesticide raw materials increased by 1.4% to 2,254,000 tons, ending a two-year decline[48] - The pesticide export trade volume decreased by 5.0% to 5.62 billion USD, with a trade surplus decline of 9.8%[49] - The pesticide industry in China has over 2,000 production enterprises, with a low concentration level, indicating significant room for improvement[123] - The "13th Five-Year Plan" aims to reduce the number of pesticide raw material enterprises by 30% by 2020, with top 20 enterprises expected to account for 70% of total sales[124] - Recent changes in the pesticide industry include stricter regulations and a shift towards value-added services and differentiated competition[127] - The promotion of new environmentally friendly pesticides will significantly optimize the product structure of the pesticide industry, meeting agricultural production needs while reducing environmental impact[128] - The goal of the "13th Five-Year Plan" for the pesticide industry is to cultivate 2-3 large enterprises with sales exceeding 10 billion yuan by 2020, and for the top 20 pesticide companies to account for over 70% of the total national pesticide sales[130] - The pesticide industry is undergoing accelerated consolidation, aiming for a more concentrated and large-scale development, with a focus on enhancing international competitiveness[131] Research and Development - The company emphasizes the importance of R&D and market channel competition in the pesticide industry, focusing on high-efficiency and low-toxicity products[126] - The company plans to enhance its R&D capabilities and establish a sustainable innovation system to increase the technological content and added value of pesticide products[129] - The company aims to build a comprehensive agricultural service platform, focusing on seven strategic areas including talent development, technological innovation, and international market expansion[133] - The company intends to increase investment in strategic raw material products and expand its integrated strategy advantages in raw material formulations[134] - The company prioritizes technological empowerment, ensuring leading R&D capabilities and developing a top-tier research team to maintain competitive advantages[138] Corporate Governance - The actual controller and shareholders committed to not transferring or entrusting the management of shares for 36 months post-IPO, with a further commitment not to reduce holdings for two years after the lock-up period[164] - If the stock price falls below the issue price for 20 consecutive trading days within six months post-IPO, the lock-up period will automatically extend by six months[166] - The company and its actual controller committed to repurchase shares and compensate investors in case of false statements or omissions affecting issuance conditions[166] - The company has established a plan to protect the interests of minority shareholders and investors[175] - The company has made commitments regarding shareholding reductions by major shareholders to comply with regulations[174] Social Responsibility - The company has actively engaged in social responsibility initiatives, contributing to local economic development[198] - The company has received recognition as an excellent unit in investor education and protection activities in Qingdao[200] - The company emphasizes the importance of corporate culture and has organized multiple outdoor activities and training sessions for employees[199] - The company has maintained a focus on employee health and development through various initiatives[199] - The company has invested in safety and environmental protection, adhering to national regulations and standards[200] - The company has not experienced any major violations of environmental laws or significant pollution incidents during the reporting period[200]