登海种业(002041) - 2018 Q4 - 年度财报

Financial Performance - The company reported a total revenue of 880 million RMB for the year 2018, reflecting a year-on-year increase of 10%[21] - The net profit attributable to shareholders was 120 million RMB, representing a growth of 15% compared to the previous year[21] - The company's operating revenue for 2018 was ¥761,065,669.78, a decrease of 5.32% compared to ¥803,820,973.69 in 2017[30] - The net profit attributable to shareholders for 2018 was ¥32,530,859.09, representing a significant decline of 80.49% from ¥166,703,137.36 in 2017[30] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥27,706,086.68, down 82.42% from ¥157,634,624.98 in 2017[30] - The net cash flow from operating activities for 2018 was -¥28,700,927.21, an improvement of 84.36% compared to -¥183,564,760.07 in 2017[30] - The total assets at the end of 2018 were ¥3,758,477,180.81, a decrease of 15.46% from ¥4,445,988,733.36 at the end of 2017[30] - The net assets attributable to shareholders at the end of 2018 were ¥2,792,129,001.63, a slight decrease of 0.47% from ¥2,805,358,142.54 at the end of 2017[30] - The company reported a basic earnings per share of ¥0.0370 for 2018, down 80.46% from ¥0.1894 in 2017[30] Market Conditions - The overall inventory in the corn seed industry remains high, which poses a market risk for the company[6] - The agricultural production cycle is seasonal, with the majority of revenue concentrated in the months of November to June[6] - The decline in performance was primarily due to the national agricultural supply-side structural reform, which reduced the planting area of grain corn in non-advantageous regions by 50 million mu[46] - The cancellation of the corn temporary storage price policy led to low corn prices, negatively impacting farmers' enthusiasm for planting[46] - The domestic seed market faced oversupply and significant competition from counterfeit and illegal seeds, further decreasing demand for seeds[46] Research and Development - The company is focusing on the research and development of new seed varieties to meet market demands, despite the high costs and long timeframes involved[7] - The company is committed to enhancing its breeding technology to improve the quality and yield of its seed products[7] - The company’s research and development activities are primarily conducted by its corn research institute, with ownership of research results belonging to the company[46] - In 2018, the company developed and approved 28 new hybrid corn varieties, including 23 that passed national approval[56] - The company applied for 6 plant variety rights and obtained 12, while also applying for 5 patents, all of which were invention patents[56] - The company invested CNY 55,064,960.60 in R&D in 2018, representing a 7.96% increase from CNY 51,005,116.11 in 2017[77] - The number of R&D personnel increased to 196 in 2018, up 7.10% from 183 in 2017, with R&D personnel accounting for 22.17% of the total workforce[77] Strategic Initiatives - The company aims to expand its market presence through strategic partnerships and collaborations in the agricultural sector[6] - The company is focused on accelerating the scale development of its corn seed industry and diversifying into wheat, rice, and other crops[103] - The company plans to invest 50 million RMB in research and development for new agricultural technologies over the next three years[194] - A strategic acquisition of a regional seed company is anticipated to be finalized by Q2 2024, expected to add 5% to overall revenue[194] - The company is exploring potential mergers and acquisitions to enhance its competitive position in the agricultural sector[189] Risks and Challenges - The company highlighted the risk of natural disasters affecting seed production, which is sensitive to climate conditions[6] - The company employs a "company + farmer" production model, which is susceptible to risks from natural disasters and the management practices of contracted farmers[46] - The company faces risks related to the promotion of new varieties, policy adjustments in the corn industry, seed production, and management[105][106][107][108] Governance and Compliance - The company has maintained a stable governance structure and is committed to improving information disclosure quality[134] - The company faced regulatory scrutiny due to violations related to illegal planting activities, resulting in a warning letter from the China Securities Regulatory Commission[131] - The company has not faced any major litigation or arbitration matters during the reporting period[130] - The company has not undergone any bankruptcy reorganization during the reporting period[129] Shareholder Information - The company reported a total of 880 million shares outstanding, with 99.30% being unrestricted shares[163] - The largest shareholder, Laizhou Agricultural Science Institute, holds 53.21% of the shares, with a recent increase of 115,100 shares[166] - The company has a total of 47,598 common shareholders as of the end of the reporting period[166] - The actual controller, Li Denghai, is recognized as a leading figure in corn breeding and has held various significant positions in agricultural committees[173] Employee and Remuneration - The total number of employees in the company is 884, with 338 in the parent company and 546 in major subsidiaries[200] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 389.5万元[196] - The highest remuneration was received by the chairman, Tao Xudong, at 66万元, while the honorary chairman, Li Denghai, received 27万元[196] - The company has a structured remuneration system based on administrative positions and roles, approved by the board or shareholders[196]