SAL(SH:603970)2021-04-19 16:00Financial Performance - The company achieved a net profit of RMB 117,935,297.67 for the fiscal year 2020, with a total distributable profit of RMB 469,381,971.42 as of December 31, 2020[7]. - The proposed cash dividend is RMB 3.0 per 10 shares, totaling RMB 57,600,028.80, which represents 43.49% of the net profit for the year[7]. - The company's operating revenue for 2020 was CNY 6,640,994,269.80, representing a 52.93% increase compared to CNY 4,342,465,253.71 in 2019[25]. - Net profit attributable to shareholders for 2020 was CNY 132,443,776.12, an increase of 11.41% from CNY 118,876,449.73 in 2019[25]. - The net cash flow from operating activities increased by 60.86% to CNY 352,123,389.76, up from CNY 218,901,571.90 in 2019[25]. - Total assets grew by 46.89% to CNY 4,024,012,103.50 at the end of 2020, compared to CNY 2,739,439,752.86 at the end of 2019[25]. - Basic earnings per share for 2020 was CNY 0.6898, reflecting an increase of 11.42% from CNY 0.6191 in 2019[27]. - The company reported a weighted average return on equity of 13.27% for 2020, slightly up from 13.14% in 2019[27]. Risk Management - The company has no significant risks that could materially affect its production and operations during the reporting period[10]. - The company emphasizes the importance of risk awareness in its forward-looking statements and plans[8]. - The company recognizes the risk of natural disasters impacting agricultural production, which could lead to reduced demand for pesticides[126]. - The company is facing risks from the ongoing COVID-19 pandemic, which may adversely affect the global economy and the pesticide industry[124]. - The company has faced risks from global trade tensions and exchange rate fluctuations, which could impact overseas sales and overall profitability[129]. - The company has implemented strict procurement processes to mitigate risks related to pesticide product quality, although potential legal and reputational risks remain[130]. Research and Development - The company plans to continue its focus on research and development of new products and technologies to enhance its market position[8]. - The company is actively engaged in R&D collaborations, with ongoing development of new pesticide formulations and the completion of several product optimizations, including 6 products that have undergone formulation evaluation[99][100]. - The company aims to enhance its R&D investment, focusing on new technologies, formulations, and product applications to increase the technical content and added value of its products and services[116]. - The company has a research center for pesticide application technology, focusing on the core application of pesticide products in line with green agricultural development trends[52]. Business Operations - The main business includes pesticide distribution and plant protection technology services, with no significant changes in the business model during the reporting period[36]. - The company aims to establish a leading platform for the research and supply of plant protection machinery, integrating high-efficiency machinery with quality pesticides[36]. - The company has established a one-stop pesticide raw material supply platform, integrating high-quality product resources from upstream manufacturers[40]. - The company has a service network covering major agricultural counties, consisting of 19 warehousing and distribution centers and nearly 3,000 main channel partners[51]. - The company has established long-term stable partnerships with leading international pesticide manufacturers, enhancing its product resource advantages[52]. - The company has developed a supply chain service system that combines self-owned warehousing and third-party logistics, providing comprehensive supply chain services[45]. - The agricultural chemical business accounted for 99.55% of total revenue, with significant growth in raw pesticide product sales[71]. Corporate Governance - The company is committed to ensuring accurate and complete financial reporting as stated by its management[6]. - The company has a strategic commitment to extend the lock-up period for its largest shareholder's shares by an additional 24 months beyond the statutory 36-month lock-up[167]. - The company has a clear policy for the appointment and remuneration of its board members, ensuring transparency and accountability[181]. - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure[179]. - The company has maintained a stable management team with no significant turnover among directors and supervisors[175]. Environmental Compliance - The company's environmental compliance is satisfactory, with no significant pollution issues reported during the monitoring period[158]. - The "Pesticide Packaging Waste Recovery and Treatment Management Measures" came into effect on October 1, 2020, mandating producers and operators to establish recovery systems for pesticide packaging waste, enhancing environmental protection awareness in the industry[90]. Financial Strategy - The company has established a cash dividend policy, ensuring a minimum annual dividend payout ratio of 20% of the distributable profits[133]. - The company is committed to maintaining a stable and continuous dividend distribution policy, considering factors such as profitability and cash flow[133]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[135]. - The company has no overdue amounts in its wealth management activities, indicating effective cash management[150]. Employee Management - The total number of employees in the parent company and major subsidiaries is 885, with 232 in the parent company and 653 in subsidiaries[184]. - The employee composition includes 82 production personnel, 478 sales personnel, 112 technical personnel, 105 financial personnel, and 108 administrative personnel[184]. - The educational background of employees shows 78 with postgraduate degrees, 355 with bachelor's degrees, and 452 with college diplomas or below[184]. - The company has implemented a competitive salary and bonus structure to attract and retain talent, ensuring performance incentives are aligned with annual goals[185]. Audit and Compliance - The company received a standard unqualified opinion on its internal control audit, indicating effective internal controls[196]. - The audit was conducted in accordance with the Chinese Certified Public Accountant auditing standards[200]. - The audit opinion is based on the comprehensive evaluation of the financial statements[200]. - The auditors believe that the audit evidence obtained is adequate for forming the audit opinion[200].