SAL(SH:603970)2022-04-18 16:00Financial Performance - The net profit for the year 2021 reached RMB 156,191,677.48, with a total distributable profit of RMB 564,805,072.24 as of December 31, 2021[7]. - The company plans to distribute a cash dividend of RMB 3.5 per 10 shares, totaling RMB 67,200,033.60, which represents 39.46% of the net profit for the year[7]. - The company's operating revenue for 2021 was CNY 8,822,111,307.52, representing a year-on-year increase of 32.84% compared to CNY 6,640,994,269.80 in 2020[26]. - The net profit attributable to shareholders for 2021 was CNY 170,309,383.86, which is a 28.59% increase from CNY 132,443,776.12 in 2020[26]. - The basic earnings per share for 2021 was CNY 0.8870, up 28.59% from CNY 0.6898 in 2020[27]. - The weighted average return on equity increased to 15.63% in 2021, up 2.36 percentage points from 13.27% in 2020[27]. - The total assets at the end of 2021 were CNY 4,741,703,753.83, reflecting a 17.84% increase from CNY 4,024,012,103.50 at the end of 2020[26]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 159,439,140.70, which is a 34.88% increase from CNY 118,208,657.69 in 2020[26]. - The total net assets attributable to shareholders at the end of 2021 were CNY 1,171,141,107.42, an increase of 14.23% from CNY 1,025,272,662.04 at the end of 2020[26]. - The cost of sales for 2021 was CNY 826,885.45 million, up 35.39% year-on-year, resulting in a comprehensive gross profit margin decrease of 1.77%[63]. Operational Highlights - The company has no significant operational risks that could materially affect its production and operations during the reporting period[10]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures regarding external guarantees[9]. - The company has a history of maintaining a stable and reasonable return for investors through cash dividends[7]. - The company has not faced any significant risks that could impact its future development strategies[10]. - The company emphasizes the importance of investor awareness regarding potential investment risks associated with forward-looking statements[8]. - The company introduced new products for pest control and enhanced agricultural services, focusing on crop health solutions for grain, economic, and specialty crops[34]. - The company has established a stable supply chain and cooperative relationships with upstream and downstream partners to mitigate the impact of external pressures[36]. - The company is enhancing its service efficiency by improving customer engagement and optimizing logistics networks to reduce costs[37]. - The company has developed a targeted crop health solution for different regions and crops, enhancing brand influence among farmers[50]. Research and Development - The company invested CNY 37,527,549.23 in R&D, representing 0.43% of total revenue[71]. - The number of R&D personnel was 135, making up 16% of the total workforce[72]. - The company has 13 technology patents authorized by the national intellectual property office as of 2021, enhancing its R&D and agricultural technology service capabilities[87]. - Research and development expenses increased by 10.25% to 37,527.55 million RMB, supporting the company's focus on green pesticides[61]. - New product development includes a one-piece spray nozzle and research on drift-reducing nozzles and unmanned spray machines[40]. Market Environment - The agricultural chemical industry is experiencing intensified competition, with significant mergers and acquisitions among major players[41]. - The global pesticide industry is highly concentrated, with major companies dominating the high-end market, while China's pesticide industry remains fragmented with low concentration[96]. - The demand for pesticides is stable, driven by the need to ensure national food security amid rising global commodity prices and pest outbreaks[97]. - The industry concentration is expected to increase, with government policies promoting the consolidation of pesticide companies and aiming to reduce the number of producers to below 1,600 by 2025[97]. - The agricultural circulation industry is facing increasing demands for diversified and refined agricultural services, leading to a rise in value-added services as a competitive strategy[86]. Governance and Compliance - The company adheres to strict governance practices, holding regular meetings of the board and committees to ensure compliance and protect shareholder interests[114]. - The company strictly adhered to the information disclosure regulations, ensuring accurate and timely reporting[116]. - The company has no significant differences in governance compared to regulatory requirements[116]. - The company has independent directors and supervisors with extensive experience in various agricultural and financial sectors[124][125][126]. - The company has established a governance structure with clear roles for its board and management[127]. - The company has not reported any non-compliance issues related to its major shareholders or actual controllers[168]. Financial Management - The company has a cash dividend policy that stipulates a minimum distribution of 20% of the distributable profits each year, ensuring stable returns for shareholders[144]. - The company has structured deposits amounting to CNY 496,000,000.00 and bank wealth management products totaling CNY 343,000,000.00, both fully invested[182]. - The company has a total of CNY 50,000,000.00 in a structured deposit with an annualized yield of 3.76%, and CNY 65,000,000.00 in another product with a yield of 3.60%[184]. - The company has not reported any overdue amounts in its financial management activities[182]. - The company has not engaged in any major acquisitions or disposals of assets during the reporting period[170]. Social Responsibility - The company completed the storage task of 1 billion yuan worth of pesticide products for the 2021-2022 National Disaster Relief Pesticide Reserve Project[152]. - The company donated pesticides worth 500,000 yuan to flood-affected areas in Henan Province to assist in agricultural recovery[153]. - The company conducted over 10,000 online and offline activities to provide technical guidance on pesticide application[155]. Risks and Challenges - The ongoing COVID-19 pandemic and global political instability pose risks to the company's operations and export capabilities[107]. - The company faces intensified market competition as the agricultural chemical industry undergoes structural adjustments[108]. - Changes in procurement or sales policies by pesticide manufacturers and distributors could adversely affect the company's performance[109]. - Fluctuations in exchange rates, particularly between the RMB and USD, may impact the company's overall profitability[112].