hailir(SH:603639)2021-04-27 16:00Dividend Policy - The company plans to distribute a cash dividend of 3 CNY per 10 shares and to increase capital by 4 shares for every 10 shares held, pending shareholder approval[5]. - The company has committed to maintaining the distribution ratio even if there are changes in total shares due to stock incentives[5]. - The cash dividend payout ratio for 2020 was 17.52% of the net profit attributable to ordinary shareholders[160]. - The company has consistently distributed cash dividends of 3 RMB per 10 shares for the years 2018, 2019, and 2020[160]. - The company has a structured approach to cash dividends, considering industry characteristics, development stages, and significant capital expenditure plans[156]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits, as per regulatory requirements[161]. Financial Performance - The company's operating revenue for 2020 was approximately CNY 3.23 billion, representing a year-on-year increase of 30.83% compared to CNY 2.47 billion in 2019[24]. - The net profit attributable to shareholders for 2020 was approximately CNY 406.66 million, an increase of 28.78% from CNY 315.78 million in 2019[24]. - The net cash flow from operating activities for 2020 was approximately CNY 587.51 million, showing a slight increase of 0.16% compared to CNY 586.58 million in 2019[24]. - The total assets at the end of 2020 were approximately CNY 4.31 billion, a 23.34% increase from CNY 3.50 billion at the end of 2019[24]. - The company's net assets attributable to shareholders at the end of 2020 were approximately CNY 2.62 billion, reflecting a 16.64% increase from CNY 2.24 billion at the end of 2019[24]. - The basic earnings per share for 2020 were CNY 1.71, representing a 28.57% increase from CNY 1.33 in 2019[25]. - The diluted earnings per share for 2020 were also CNY 1.71, up 28.57% from CNY 1.33 in 2019[26]. - The weighted average return on equity for 2020 was 16.83%, an increase from 15.16% in 2019[26]. Risk Management - The company reported no significant risks affecting its operations during the reporting period, ensuring a stable operational environment[8]. - The company has outlined various risks and corresponding countermeasures in its operational analysis section, emphasizing risk awareness for investors[8]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, urging investors to be aware of investment risks[6]. - The company is actively monitoring changes in industry regulations and policies to mitigate risks associated with production and sales activities[151]. - The company is adopting foreign exchange hedging strategies to manage risks from currency fluctuations as its export business grows[152]. - The company anticipates risks associated with future capacity expansion, including market adaptability and potential profit decline due to increased depreciation[150]. Operational Integrity - The financial report has been audited and received a standard unqualified opinion from the accounting firm, confirming its accuracy and completeness[4]. - The board of directors and management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its contents[7]. - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring financial integrity[7]. - The company has not reported any violations of decision-making procedures regarding external guarantees, indicating adherence to regulatory standards[7]. - The company has no major litigation or arbitration matters during the reporting period[176]. - The company has no significant changes in accounting policies or estimates during the reporting period[174]. Market and Industry Trends - In 2020, the total revenue of the pesticide industry in China reached 228.06 billion yuan, a year-on-year increase of 6.1%[40]. - The total profit of the pesticide industry was 19.06 billion yuan, with a year-on-year growth of 0.5%, while the profit from chemical raw materials increased by 1.8%[40]. - The export volume of pesticides in 2020 was 2.395 million tons, representing a year-on-year increase of 29.3%, with an export value of 11.68 billion USD, up 14.6%[38]. - The overall pesticide raw material market showed a rebound in prices in the fourth quarter of 2020 after a decline earlier in the year due to global economic fluctuations and the COVID-19 pandemic[38]. - The pesticide industry in China has over 2,000 production enterprises, indicating a low market concentration and significant room for improvement[125]. - The industry is shifting from product sales to value-added services, indicating a transformation in competitive strategies[128]. Research and Development - The company has a research and development team of nearly 300 people, making it one of the most comprehensive pesticide R&D centers in China[58]. - The company synthesized nearly 1,500 new compounds in the reporting period, with at least 2 showing potential for registration and market launch[101]. - The company is actively developing the third generation of neonicotinoid insecticides, with a project for 40,000 tons/year of agricultural chemical raw materials and intermediates underway[55]. - The company aims to enhance its R&D capabilities and establish a sustainable innovation system to increase the technological content and added value of its products[130]. - The company plans to enhance its product structure and quality in line with new agricultural policies aimed at promoting sustainable practices in the pesticide industry[88]. Corporate Governance - The actual controller and shareholders committed to not transferring or entrusting their shares for 36 months post-IPO, with an additional 2-year restriction on share reduction thereafter[162]. - The company and its actual controller committed to repurchase shares if the prospectus is found to contain false statements or omissions, with a repurchase price equal to the IPO price plus interest[166]. - The company’s board and senior management committed to compensating investors for losses due to false statements in the prospectus, starting within 5 working days of regulatory recognition[166]. - The company has established a plan to address any potential non-compliance with the commitments made in the prospectus[166]. - The company emphasizes adherence to securities laws and regulations to protect investor interests[172]. Social Responsibility - The company has actively engaged in social responsibility initiatives, contributing to local economic development[198]. - The company has invested in safety and environmental protection, adhering to national regulations and standards[200]. - The company is committed to reducing the use of chemical fertilizers and pesticides, aligning with national policies for sustainable agricultural practices[94]. - The company has focused on enhancing corporate culture and employee well-being through various activities and training[199].