Lier Chemical (SZ:002258)2022-08-08 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 5,078,112,991.44, representing a 60.72% increase compared to CNY 3,159,600,234.67 in the same period last year[26]. - The net profit attributable to shareholders for the first half of 2022 was CNY 1,047,583,941.10, a 107.46% increase from CNY 504,953,337.19 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,050,698,840.97, up 114.61% from CNY 489,576,876.54 year-on-year[26]. - The net cash flow from operating activities reached CNY 1,296,536,529.40, marking a significant increase of 371.86% compared to CNY 274,774,118.70 in the previous year[26]. - Basic earnings per share for the first half of 2022 were CNY 1.4181, a 106.24% increase from CNY 0.6876 in the same period last year[26]. - The total assets at the end of the reporting period were CNY 11,700,632,821.03, reflecting a 14.35% increase from CNY 10,232,167,212.33 at the end of the previous year[26]. - The net assets attributable to shareholders at the end of the reporting period were CNY 5,830,605,293.02, up 17.15% from CNY 4,977,230,721.13 at the end of the previous year[26]. - The weighted average return on net assets was 19.30%, an increase of 7.34% compared to 11.96% in the previous year[26]. Market and Industry Trends - The global pesticide market size grew from $35.575 billion in 2006 to $67.629 billion in 2019, with a compound annual growth rate of 5.07%[36]. - The demand for pesticides increased significantly due to heightened concerns over food security amid geopolitical conflicts and the pandemic[36]. - The sales of pyridine herbicides reached $1.322 billion globally in 2020, with a projected growth rate of 3.4% to $1.563 billion by 2025[40]. - The global market share of major international agrochemical companies exceeds 60%, indicating a trend towards consolidation in the industry[36]. - The company is positioned to benefit from the increasing demand for green pesticides and the ongoing transformation of the pesticide industry in China[39]. Company Operations and Strategy - The company focuses on the research, production, and sales of high-efficiency, low-toxicity pesticide active ingredients, including glyphosate and chlorinated pyridine herbicides[40]. - The company has over 40 pesticide active ingredients and more than 100 formulations, catering to various agricultural needs[42]. - The company effectively organized production and improved supply chain management to meet customer demands despite challenges from the pandemic and rising raw material costs[41]. - The company has established a stable strategic partnership with top international agrochemical companies such as Corteva, BASF, and Syngenta, exporting products to over 30 countries including the USA, Brazil, and Australia[47]. - The company operates seven production bases across China, ensuring a multi-base supply guarantee for its main products[52]. - The company has a complete independent system for research and development, procurement, production, testing, and sales, ensuring effective operational management[4]. Environmental Management - The company has implemented an ISO14001 environmental management system, achieving advanced levels in environmental management within the industry[52]. - The company has increased its environmental protection investments, ensuring compliance with national standards for waste emissions, while continuing to enhance its environmental management systems[93]. - The company has implemented continuous monitoring systems across multiple discharge points to ensure compliance with environmental standards[114]. - The company reported no exceedances in pollutant discharge limits across all monitored categories[114]. - The company is committed to ongoing improvements in waste management and emissions reduction strategies[114]. - The company has established four sets of dual (multi) effect evaporation treatment devices for high-concentration wastewater, with a daily processing capacity of 800m³[121]. Financial Investments and Risks - The company has successfully completed two refinancing rounds in the past, ensuring sufficient funding for its strategic development goals[55]. - The company maintains good credit with major domestic banks, providing ample credit limits to support its business development[55]. - The company has not achieved the planned progress and expected returns for several projects, with reasons not specified in the report[68]. - The company is focusing on expanding its investment in the chemical industry, particularly in pesticide intermediates[68]. - The company has implemented measures to mitigate foreign exchange risks, including establishing internal control systems for derivative trading[81]. Corporate Governance and Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The largest shareholder, Sichuan Jiuyuan Investment Holding Group Co., Ltd., holds 25.58% of the shares, totaling 190,376,009 shares, with an increase of 54,393,145 shares during the reporting period[187]. - The total number of ordinary shareholders at the end of the reporting period was 31,287, with significant changes in the top shareholders[187]. - The company did not engage in any repurchase transactions during the reporting period[191]. - The report indicates that there are no known related party relationships among the top shareholders, except for the connection between Sichuan Jiuyuan Investment Holding Group and Sichuan Huacai Technology Co., Ltd.[190]. Employee and Community Engagement - The company has actively participated in social responsibility initiatives, including organizing over 20 volunteer activities related to COVID-19 prevention and environmental beautification[140]. - During the reporting period, the company provided assistance to employees facing difficulties, resolving 13 specific issues through its union and charitable fund[139]. - The company has organized 15 cultural and sports activities to enhance employee engagement and cohesion[139]. - The company has established a robust employee health and safety program, including regular health check-ups and safety training sessions[139]. Safety and Compliance - The company has implemented a comprehensive safety management system, achieving 7,150 days without safety or environmental incidents at its subsidiary, Xingxing Huachuang[142]. - The company has developed a strict monitoring mechanism for safety and environmental checks, ensuring timely rectification of identified hazards[141]. - The company received a safety administrative penalty of RMB 46,000, which did not significantly impact its performance[155].