LFBC(SZ:002513)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was approximately CNY 1.50 billion, an increase of 1.56% compared to CNY 1.48 billion in 2018[16]. - The net profit attributable to shareholders was a loss of approximately CNY 516.56 million, a 40.96% improvement from a loss of CNY 874.95 million in 2018[16]. - The net cash flow from operating activities increased significantly to approximately CNY 255.08 million, a 248.00% increase from CNY 73.30 million in 2018[16]. - Total assets decreased by 23.37% to approximately CNY 2.70 billion at the end of 2019, down from CNY 3.53 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased by 31.49% to approximately CNY 1.14 billion at the end of 2019, compared to CNY 1.66 billion at the end of 2018[16]. - The basic earnings per share for 2019 was -CNY 1.52, an improvement of 40.86% from -CNY 2.57 in 2018[16]. - The weighted average return on net assets was -37.00%, an improvement from -41.76% in the previous year[16]. - The company reported a government subsidy of CNY 11.79 million in 2019, which is an increase from CNY 10.16 million in 2018[21]. - The company achieved an operating revenue of 1,504.43 million yuan in 2019, representing a year-on-year growth of 1.56%[40]. - The net profit attributable to shareholders of the parent company was a loss of 516.55 million yuan due to asset impairment provisions[40]. Business Segments - The company’s main business segments include agricultural chemicals and pharmaceuticals, focusing on the production and sales of various pesticides and pharmaceutical products[25]. - The agricultural chemicals segment includes products such as multi-bacterial agents and herbicides, while the pharmaceutical segment includes treatments for Alzheimer's and infections[26]. - The agricultural chemical segment generated ¥1,375,375,865.62, accounting for 91.42% of total revenue, with a year-on-year growth of 4.82%[47]. - The pharmaceutical segment saw a decline in revenue to ¥129,058,797.74, down 23.74% from ¥169,225,523.28 in 2018[47]. Market and Competition - The company faces risks including market competition, safety and environmental risks, and potential delisting due to consecutive years of losses[4]. - The global pesticide market remains robust due to increasing food demand and climate-related challenges, with a positive outlook for high-efficiency and environmentally friendly products[31]. - The agricultural business focuses on optimizing product and sales structures based on market supply and demand, ensuring stable operations with minimal investment[31]. - The pharmaceutical segment is adapting to policy changes, exploring niche markets, and advancing towards a networked and information-driven approach[31]. Research and Development - The company is actively involved in the research and development of new pharmaceutical products, including treatments for various diseases[25]. - The company has established a research and development platform with renowned institutions to enhance its pharmaceutical R&D capabilities[36]. - Research and development efforts are ongoing, with a focus on optimizing existing products and passing GMP inspections[43]. - The number of R&D personnel rose by 45.05% to 322, representing 17.51% of the total workforce[59]. Financial Management - The company implemented cash flow management measures, reducing accounts receivable by ¥20 million and enhancing credit financing efforts[42]. - The company established a "fund pool" to improve capital efficiency across its subsidiaries, including Ningxia Lanfeng and Ark Pharmaceutical[42]. - The company has restricted assets totaling CNY 934,873,795.73, primarily due to margin and risk deposits, with specific amounts for fixed assets and intangible assets pledged as collateral for loans[67]. - The company has made a provision for bad debts amounting to CNY 123.91 million, with a cumulative provision of CNY 157.76 million[119]. Environmental and Safety Compliance - The company emphasizes the importance of environmental protection and compliance with national standards in its production processes, aiming for sustainable economic and social benefits[94]. - Significant investments have been made in environmental protection and pollution prevention, with a focus on resource and energy conservation[160]. - The company has established a dedicated energy-saving leadership team to set and evaluate energy consumption reduction targets annually[160]. - The company has a continuous monitoring system for emissions, ensuring compliance with air quality standards[163]. Strategic Initiatives - The company is actively seeking growth opportunities through both organic and external development strategies[31]. - The company plans to enhance product supply capabilities by implementing a sales-driven production model and improving communication between production and sales departments[87]. - The company aims to maximize the efficiency of limited resources by expanding into niche markets to meet the differentiated needs of high-end customers[86]. - The company plans to establish a research and development fund to mitigate risks and enhance product offerings through acquisitions and technical transfers[93]. Shareholder and Governance - The company has not distributed any cash dividends over the past three years, with a consistent policy of not issuing dividends or capital reserve transfers[101]. - The company has fulfilled its commitments regarding the non-transfer of shares for 36 months from the date of listing, which was completed on February 26, 2016[106]. - The company has maintained compliance with the regulations set by the China Securities Regulatory Commission and the stock exchange[106]. - The company emphasizes the protection of shareholder and creditor rights, adhering to laws and regulations, and maintaining a stable dividend policy[156]. Legal and Regulatory Matters - The company is involved in several ongoing litigation cases, including a dispute with Fangzhou Pharmaceutical involving an amount of 21,096.82 thousand yuan[129]. - The company faced administrative penalties from the China Securities Regulatory Commission, as disclosed on December 31, 2019[176]. - The company has not reported any non-operating fund occupation by controlling shareholders during the reporting period[117]. - The company has engaged in discussions regarding the restructuring plan with relevant parties following the conclusion of an investigation by the Jiangsu Securities Regulatory Bureau[118].