SAL(SH:603970)2019-04-22 16:00Financial Performance - The company achieved a net profit of RMB 117,476,023.70 for the year 2018, with a total distributable profit of RMB 344,586,197.72 as of December 31, 2018[5]. - The company's operating revenue for 2018 was CNY 3,734,627,172.51, representing a year-on-year increase of 6.60% compared to CNY 3,503,462,176.43 in 2017[23]. - The net profit attributable to shareholders of the listed company reached CNY 115,459,384.22, a significant increase of 27.82% from CNY 90,330,227.59 in the previous year[23]. - The net profit after deducting non-recurring gains and losses increased by 46.11% to CNY 106,203,002.40, driven by increased sales scale and profit[23][26]. - The basic earnings per share for 2018 was CNY 0.7216, a slight decrease of 1.47% compared to CNY 0.7324 in 2017[24]. - The weighted average return on equity decreased to 14.01%, down 8.62 percentage points from 22.63% in 2017[25]. - The company reported non-recurring gains of CNY 9,256,381.82 for 2018, compared to CNY 17,641,674.78 in 2017[29]. - The company achieved operating revenue of CNY 373,462.72 million, an increase of CNY 23,116.50 million, or 6.60% year-on-year[58]. - Operating profit reached CNY 15,694.18 million, up CNY 3,422.20 million, representing a growth of 27.89% compared to the previous year[58]. - Net profit attributable to shareholders was CNY 11,545.94 million, an increase of CNY 2,512.92 million, or 27.82% year-on-year[58]. Dividend Distribution - A cash dividend of RMB 2.50 per 10 shares will be distributed, totaling RMB 40,000,020.00, along with a capital reserve increase of 32,000,016 shares[5]. - The company emphasizes the importance of cash dividends to provide stable and reasonable returns to investors[5]. - In 2018, the company distributed cash dividends amounting to 40,000,020 RMB, with a dividend payout ratio of 34.64%[124]. - The company has a cash dividend policy that ensures a minimum distribution of 20% of the distributable profits each year, contingent on operational stability[121]. Operational Risks and Management - The company has no significant operational risks that could materially affect its production and operations during the reporting period[8]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[7]. - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm[4]. - The report includes a risk statement regarding forward-looking statements, indicating that future plans do not guarantee profit forecasts[6]. - The company has a commitment to transparency and accuracy in its financial reporting, as stated by its management[7]. - The company has no significant litigation or arbitration matters reported for the year[139]. - The company has not faced any risks of suspension or termination of listing during the reporting period[138]. Market Presence and Business Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[30]. - The company has established long-term stable partnerships with leading international pesticide companies such as Syngenta, Bayer, and BASF, enhancing its procurement capabilities[35]. - The company operates a "one-stop" pesticide raw material supply platform, integrating high-quality product resources from upstream manufacturers[36]. - The company has expanded its international market presence, providing agricultural products and services to over 40 countries across five continents[39]. - The company has been entrusted with national pesticide reserves and disaster relief pesticide reserves since 2012, ensuring dynamic balance between storage and sales[45]. - The company is focusing on introducing new products and expanding its product line to enhance brand recognition and market presence[111]. - The company is actively planning to establish a raw material trading platform to strengthen supply chain management and increase industry influence[112]. - The company aims to establish a comprehensive service platform centered on plant protection technology services, integrating products, services, and information, to promote sustainable agricultural development and ensure food security[106]. Research and Development - The company reported a significant increase in R&D expenses, which rose by 230.93% to CNY 12,382.19 million[60]. - The company’s R&D expenses increased significantly by 230.93% to ¥12,382,191.32, indicating a strong focus on innovation[69]. - The company has made significant progress in the development of new formulations, including the successful optimization of pyrazole ether fungicide and fluconazole emulsions, which have completed pilot testing and production[87]. - A new patent was granted for a thiazole phosphine microencapsulated suspension agent, and four additional patents were applied for in 2018, indicating a strong focus on innovation[88]. - The company has developed two self-propelled high-stalk crop spraying equipment prototypes, enhancing automation and safety features, with the design of a remote monitoring system for application quality[89]. - Research and development investments have increased by 30%, focusing on sustainable agricultural technologies[190]. Financial Management and Investments - The company has engaged Tianzhi International Accounting Firm with an audit fee of ¥900,000.00 for a four-year term[138]. - The company has a bank wealth management investment of 194,599,441.80 RMB, with an outstanding balance of 189,807,876.80 RMB[149]. - The company is involved in various leasing agreements, with total annual rental amounts including 4,722,027.60 RMB for office space and 2,046,850.83 RMB for warehouse space[146][147]. - The company engaged in various entrusted financial management activities, with a total amount of RMB 43 million in a financial product yielding an annualized return of 4.80%[151]. - The company successfully recovered RMB 220,536.99 from the entrusted financial management activities, indicating effective management of financial assets[151]. - The company’s financial management strategies included investments in various financial products, with a total of RMB 129 million allocated across three different financial institutions[151]. Social Responsibility and Community Engagement - The company’s commitment to social responsibility is evident through its active participation in agricultural development and poverty alleviation programs[154]. - In 2018, the company assisted in poverty alleviation efforts in Jiangxi Province, helping 238 impoverished households and 891 individuals through agricultural support initiatives[156]. - The company implemented targeted agricultural solutions in Hubei Province, enhancing the quality of citrus crops and increasing market demand[155]. Shareholder Structure and Governance - The total number of ordinary shares increased to 160,000,080 shares after a capital reserve conversion, impacting earnings per share positively[164]. - The company’s limited shares decreased from 100 million to 80.4 million, while unrestricted shares increased to 79.6 million, reflecting a shift in shareholding structure[162]. - The company has a total of 100,000,000 restricted shares, with 39,600,000 shares released and 20,000,000 shares added during the year[169]. - The company’s major shareholder, China Agricultural Production Materials Group, has voluntarily extended the lock-up period for its shares by 2 years beyond the statutory 3-year period[177]. - The company reported a total of 15,120,000 shares held by Foshan Yilong Investment Co., accounting for 9.45% of the total shares[174]. - The company has no strategic investors or general corporations that became top 10 shareholders through new share placements[178]. - The actual controller of the company is the Supply and Marketing Group, with a significant stake in other listed companies, holding 50.82% of China Recycled Resources Development Co., Ltd. and 24.91% of Supply and Marketing Group Co., Ltd.[180]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 825, with 319 in the parent company and 506 in subsidiaries[199]. - The employee composition includes 100 production personnel, 527 sales personnel, 41 technical personnel, 80 financial personnel, and 77 administrative personnel[199]. - The company has a total of 52 employees with a graduate degree or above, 371 with a bachelor's degree, and 402 with a college degree or below[199]. - The total remuneration for the chairman and general manager, Su Yi, is 503,400 RMB, while the financial director, Huang Baiji, receives 659,500 RMB[186]. - Total remuneration for all directors, supervisors, and senior management amounted to 3.827 million yuan[196]. - The company has undergone a change in board members and senior management due to term expirations and elections[197].