FENGLE SEED(SZ:000713)2022-04-19 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,617,242,367.84, representing a 6.54% increase compared to CNY 2,456,598,310.13 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 182,992,849.45, a significant increase of 263.05% from CNY 50,404,764.44 in 2020[20]. - The net profit after deducting non-recurring gains and losses was CNY 41,913,965.66, up 91.81% from CNY 21,851,571.45 in the previous year[20]. - The basic earnings per share for 2021 was CNY 0.2980, an increase of 262.97% compared to CNY 0.0821 in 2020[20]. - The total assets at the end of 2021 were CNY 2,713,568,456.91, reflecting a 2.14% increase from CNY 2,656,602,166.06 at the end of 2020[21]. - The net assets attributable to shareholders increased by 9.60% to CNY 1,877,941,693.85 at the end of 2021, compared to CNY 1,713,493,464.28 at the end of 2020[21]. - The net cash flow from operating activities decreased by 61.26% to CNY 77,269,518.94 in 2021 from CNY 199,476,257.59 in 2020[20]. - The weighted average return on equity for 2021 was 10.19%, up from 2.95% in 2020, indicating improved profitability[20]. - The company reported a total revenue of 12,922 million CNY for the year 2021, with a year-on-year increase of 14.6%[93]. - The company achieved a net profit of CNY 200 million in 2021, an increase of 10% compared to the previous year[128]. Dividend and Profit Distribution - The company reported a profit distribution plan based on a total of 614,014,980 shares, proposing a cash dividend of 0.20 RMB per 10 shares (including tax) with no bonus shares[5]. - In 2021, the company distributed cash dividends of ¥12,280,299.60 (including tax), amounting to ¥0.20 per 10 shares based on a total share capital of 614,014,980 shares[157]. Risks and Challenges - The company faces risks including seasonal fluctuations in seed product sales, natural disasters, market price volatility, and declining seed storage quality[5]. - The company’s full subsidiary, Fengle Agricultural Chemicals, is involved in the chemical industry and may encounter policy, market, and environmental risks[5]. - The company emphasizes the importance of investor awareness regarding potential risks associated with its forward-looking statements and strategic plans[5]. Corporate Governance and Compliance - The company is committed to ensuring the accuracy and completeness of its financial reports, with key personnel affirming the integrity of the annual report[4]. - The company has established a comprehensive governance structure in compliance with relevant laws and regulations, ensuring effective internal control systems[119]. - The company has successfully revised its governance documents, including the Articles of Association and various management rules, to enhance operational transparency[119]. - The company has not engaged in any competitive activities with its controlling shareholder, ensuring a clear operational focus[124]. - The company has committed to timely and accurate information disclosure, providing equal access to all shareholders[121]. Research and Development - The company is actively involved in research and development to enhance its competitive edge in the seed and agricultural sectors[30]. - The company has established two national-level and three provincial-level R&D platforms, focusing on advanced commercial breeding systems[52]. - The company has registered a total of 71 domestic trademarks and 5 foreign trademarks in the seed industry, along with 263 trademarks and 41 invention patents in the agrochemical sector[42]. - The company has initiated six government science and technology projects, with two projects led by the company and four in which it participates[60]. - The company has allocated 100 million CNY for R&D in new agricultural technologies over the next two years[134]. Market and Product Development - The seed industry is highlighted as a strategic focus, with government policies emphasizing the importance of seed security and innovation in agricultural technology[30]. - The company produced a total of 31.5 million kilograms of seeds from an area of 102,900 acres, with a sales return amounting to 54.15 million yuan[41]. - The company’s main products include hybrid rice and corn seeds, as well as a range of agricultural chemicals and flavoring agents, indicating a diversified product portfolio[33]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[128]. - New product launches in 2021 included three innovative seed varieties, contributing to a 30% increase in sales volume[128]. Environmental and Social Responsibility - The company has established wastewater and air pollution treatment facilities that operate in compliance with national standards[171]. - The company actively participates in social responsibility initiatives, including promoting green agricultural practices and donating seeds and fertilizers to farmers during the pandemic[174]. - The company is committed to supporting rural development and food security, establishing green planting demonstration bases, and providing technical assistance to farmers[175]. - The company has made commitments to protect the rights of shareholders and creditors, ensuring fair treatment and compliance with legal regulations[178]. Operational Efficiency and Strategy - The company has established a performance-based salary system, focusing on key positions and outstanding performers, with a compensation structure that includes fixed monthly salary, quarterly performance bonuses, and annual performance bonuses[152]. - The company is committed to improving its management level and implementing a comprehensive quality control system[114]. - The company aims to integrate its "seed, medicine, and fertilizer" operations to enhance efficiency and market competitiveness[113]. - The company has implemented new technology in its production process, resulting in a 15% reduction in costs and improved efficiency[180]. Future Outlook - The company plans to leverage favorable national policies for seed industry development, emphasizing self-reliance in seed sources[110]. - The company aims for a revenue growth target of 18% for 2022, driven by new product introductions and market expansion strategies[128]. - The company has provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[182].