FENGLE SEED(SZ:000713)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥2,456,598,310.13, representing a 2.19% increase from ¥2,403,955,879.24 in 2019[20]. - The net profit attributable to shareholders decreased by 11.92% to ¥50,404,764.44 from ¥57,228,862.54 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was ¥21,851,571.45, down 49.21% from ¥43,020,583.20 in 2019[20]. - The net cash flow from operating activities increased by 51.15% to ¥199,476,257.59 compared to ¥131,969,391.68 in 2019[20]. - The total assets at the end of 2020 were ¥2,656,602,166.06, a 2.00% increase from ¥2,604,454,274.10 at the end of 2019[20]. - The net assets attributable to shareholders increased by 1.04% to ¥1,713,493,464.28 from ¥1,695,816,746.35 in 2019[20]. - The basic earnings per share decreased by 13.93% to ¥0.1149 from ¥0.1335 in the previous year[20]. - The weighted average return on equity was 2.95%, down from 3.55% in 2019[20]. - The company reported a total of ¥28,553,192.99 in non-recurring gains for 2020, compared to ¥14,208,279.34 in 2019[26]. - The company achieved a revenue of 2,456.60 million CNY in 2020, an increase of 2.19% compared to 2,403.96 million CNY in the previous year[54]. - The net profit attributable to shareholders was 50.40 million CNY, a decrease of 11.92% from 57.23 million CNY in the previous year[54]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.2 RMB per 10 shares (including tax) based on a total of 438,582,129 shares, and will also increase capital by 4 shares for every 10 shares held[6]. - The total cash dividend for 2020 is 8,771,642.58 CNY, which accounts for 17.40% of the net profit attributable to ordinary shareholders[150]. - The cash dividend per 10 shares is 0.20 CNY (including tax), with a total distribution of 8,771,642.58 CNY[151]. - The company plans to increase its share capital by 4 shares for every 10 shares held, resulting in a total increase of 175,432,852 shares[151]. - The total share capital will rise from 438,582,129 shares to 614,014,981 shares after the capital increase[151]. - The cash dividend distribution represents 100% of the total distributable profit of 390,489,294.48 CNY[150]. Market and Industry Position - The company operates in the seed and agricultural chemical industries, with key products including hybrid rice and corn seeds, herbicides, and natural mint oil[29]. - The company is recognized as a leading enterprise in the domestic seed industry, with a strong emphasis on research and development capabilities[34]. - The agricultural chemical industry is shifting towards environmentally friendly, efficient, and low-toxicity products, with the company ranking among the top 50 in the industry[34]. - The company is focusing on high-efficiency, low-risk pesticide development while phasing out high-pollution production capacities[42]. - The company is ranked among the top 50 pesticide enterprises in China, indicating its significant market position[43]. Research and Development - The company has established a comprehensive research and development system with 37 authorized invention patents and 170 domestic pesticide registration certificates[48]. - The company engages in various research and development models, including independent research and collaboration with scientific institutions, to innovate in crop breeding[40]. - The company has established 15 breeding stations and 280 testing sites across major agricultural regions in China to enhance its breeding programs[41]. - The company has a strong emphasis on market-oriented research and development, with a well-structured team of 84 researchers in the seed industry[48]. - The company has introduced a 55% benzoic acid and propanamide suspension agent, which is the highest concentration product in its category domestically[60]. - The company is actively engaged in the research and development of new herbicides, including a patented combination for comprehensive weed control in rice fields[60]. Risks and Challenges - The company has faced risks related to seasonal fluctuations in seed product sales, natural disasters, market price volatility, and storage quality deterioration[6]. - The company’s subsidiary, Fengle Agricultural Chemicals, is involved in the chemical industry, which may face policy, market, and safety risks[6]. - The domestic pesticide industry is experiencing strict regulatory measures, which may limit the entry of new competitors and favor established companies[43]. - The company is facing challenges such as the need for leading scientific research talents and the severe homogeneity of seed varieties[139]. Strategic Investments and Acquisitions - The company acquired 31.5% equity in Hunan Jinong Seed Industry Co., Ltd. for approximately 4.9964 million yuan, increasing its total ownership to 82.5%[47]. - The company also acquired 40% equity in Yunnan Quanao Agricultural Technology Co., Ltd. for about 6.8590 million yuan, resulting in 100% ownership[47]. - The company made a significant equity investment of 4,996,400 yuan in Hunan Agricultural University, acquiring a 31.50% stake in the seed production and sales business[98]. - The company is focusing on expanding its market presence through strategic investments in agricultural technology and seed production[98]. - The company is actively pursuing opportunities for mergers and acquisitions to strengthen its market position[98]. Operational Efficiency and Management - The company has a commitment to ensuring the authenticity and completeness of its financial reports, with key personnel responsible for financial oversight[5]. - The company emphasizes the importance of accurate financial reporting and has declared that all board members attended the meeting to review the annual report[5]. - The company is committed to improving its management level by reforming its operational structure and marketing system[143]. - The company has a strong emphasis on safety and environmental protection in its product formulations, aligning with industry trends and regulatory requirements[59]. Legal and Compliance - The company has engaged legal counsel to actively protect its legal interests amid ongoing litigation and asset freezes[96]. - The company guarantees compliance with relevant regulations and will not engage in any competitive business activities that may harm its interests or those of its shareholders[160]. - The company has committed to not participating in any competitive business activities for three years following the completion of the transaction[158]. - The company has fulfilled its commitments regarding related party transactions and competitive behavior during the reporting period[152]. Future Outlook - The company expects a revenue growth of 10% for the upcoming fiscal year, projecting a target revenue of 1.32 billion RMB[163]. - New product launches are anticipated to contribute an additional 200 million RMB in revenue, with a focus on innovative seed varieties[164]. - The company plans to enhance its breeding innovation and product structure improvement in 2021, focusing on quality enhancement and marketing system construction[140]. - The company aims to increase the production capacity of new environmentally friendly pesticides and accelerate the development of new products, targeting low-toxicity and high-efficiency fertilizers and pesticides[142].