ADAMA(SZ:000553)2019-03-20 16:00Financial Performance - In 2018, Adama achieved a revenue of CNY 25,615,119 thousand, representing a 7.54% increase compared to CNY 23,819,568 thousand in 2017[13]. - The net profit attributable to shareholders of the listed company in 2018 was CNY 2,402,462 thousand, a significant increase of 55.41% from CNY 1,545,879 thousand in 2017[13]. - The net profit after deducting non-recurring gains and losses reached CNY 859,448 thousand in 2018, up 124.82% from CNY 382,275 thousand in 2017[13]. - Basic earnings per share increased by 48.77% to CNY 0.9820 in 2018, compared to CNY 0.6601 in 2017[13]. - Total revenue for 2018 reached 25,615,119 thousand yuan, a year-on-year increase of 7.54% from 23,819,568 thousand yuan in 2017[30]. - Agricultural chemicals accounted for 93.2% of total revenue, with sales increasing by 8.36% year-on-year[30]. - The company reported a total operating income of RMB 23,386,214,000 for the reporting period, with a net profit of RMB 2,372,249,000[60]. Cash Flow and Assets - The net cash flow from operating activities decreased by 49.42% to CNY 2,002,139 thousand in 2018, down from CNY 3,958,389 thousand in 2017[13]. - Total assets as of December 31, 2018, were CNY 42,812,505 thousand, reflecting an 8.07% increase from CNY 39,613,922 thousand in 2017[13]. - The company reported a significant increase in investment activities, with net cash outflow from investment activities reaching -954,124 thousand yuan, reflecting a 25.91% improvement year-on-year[41]. - The company’s total asset value is RMB 35,203,576,000 and net assets of RMB 15,526,029,000[60]. - The company maintained a net debt/EBITDA ratio of 0.7, consistent with the previous year[28]. Market Presence and Strategy - Adama operates in over 100 countries, leveraging a diverse product line to enhance agricultural productivity[1]. - The company achieved a balanced regional sales contribution in 2018, with Europe at 27%, Latin America at 24%, North America at 19%, Asia-Pacific at 16%, and India, the Middle East, and Africa at 10%, indicating a diversified business growth strategy[22]. - Emerging markets contributed over 50% to the company's sales in 2018, with strategic investments made over the past 20 years in key regions such as Brazil, Eastern Europe, and India[22]. - The company is focused on developing new formulations and delivery technologies based on expiring patents to create differentiated value solutions for farmers[38]. - The company plans to enhance its product portfolio by focusing on high-margin, differentiated products, including unique formulations and patented innovations[64]. Research and Development - Research and development expenses increased by 22.59% to 441,897 thousand yuan, reflecting the company's commitment to innovation[36]. - The company has established research and development centers in Israel, India, Brazil, and China, focusing on chemical research and product registration[39]. - The company has registered around 1,150 new product registrations over the past five years, enhancing its ability to introduce new products efficiently in key markets[24]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in its annual report[2]. - The company faces risks from currency fluctuations, particularly exposure to the euro, Israeli shekel, and Brazilian real, which may impact sales and profitability[72]. - The group is subject to increasingly stringent environmental, health, and safety regulations, requiring substantial financial and human resources to comply, potentially affecting profit margins and market entry[79]. - The group faces risks related to product registration legislation, which may lead to increased costs and impact the ability to enter new markets or maintain existing market share[81]. Corporate Governance and Shareholder Relations - The company has established a clear cash dividend policy, ensuring the protection of minority shareholders' rights[100]. - The company plans to distribute a cash dividend of 0.97 CNY per 10 shares, totaling 237,315,697.45 CNY for the year 2018, which represents 9.88% of the net profit attributable to shareholders[102]. - The company has committed to gradually eliminate existing competition with its subsidiaries over the next seven years through internal restructuring and market differentiation[106]. - The company has a long-term commitment to avoid competition with its parent company in the domestic market, including measures like asset restructuring and market segmentation[107]. Environmental Responsibility - The company is committed to exceeding regulatory requirements in environmental protection efforts[141]. - The company reported a total pollutant discharge of 294.3 tons for chemical oxygen demand (COD), which is below the regulatory limit of 100 mg/L[138]. - The company has established a comprehensive environmental monitoring plan, including continuous monitoring of wastewater and air emissions[140]. Employee and Management Structure - The total number of employees in the company is 1,470, with 1,444 in the parent company and 26 in major subsidiaries[176]. - The company has a structured compensation policy based on global professional standards and individual performance[174]. - The company has implemented a new compensation structure in 2018, integrating position salaries with quarterly and annual performance bonuses without increasing labor costs[178]. Audit and Compliance - The audit opinion was a standard unqualified opinion, confirming the reliability of the financial statements[197]. - The company’s internal control evaluation report indicated that 70.33% of total assets and 75.34% of total revenue were included in the evaluation scope[192]. - The internal control audit report issued an unqualified opinion, indicating no major defects in non-financial reporting[194].