LFBC(SZ:002513)2021-04-19 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.34 billion, a decrease of 10.80% compared to ¥1.50 billion in 2019[16]. - The net profit attributable to shareholders was ¥14.82 million, a significant turnaround from a loss of ¥516.56 million in 2019, representing a 102.87% increase[16]. - The net cash flow from operating activities was ¥128.31 million, down 49.70% from ¥255.08 million in the previous year[16]. - Basic earnings per share improved to ¥0.04 from a loss of ¥1.52 per share in 2019, marking a 102.63% increase[16]. - The weighted average return on net assets was 1.30%, recovering from -37.00% in 2019, an improvement of 38.30 percentage points[16]. - The company reported a net profit excluding non-recurring gains and losses of -¥47.57 million, an improvement of 90.89% from -¥522.09 million in 2019[16]. - Total assets decreased by 14.49% to ¥2,311,049,219.02 in 2020 from ¥2,702,688,081.25 in 2019[18]. - The company reported a net profit of -¥38,394,652.08 in the fourth quarter after deducting non-recurring gains and losses[22]. - The total revenue for the year 2020 was approximately CNY 1.34 billion, a decrease of 10.80% compared to CNY 1.50 billion in 2019[56]. - The agricultural chemical segment generated CNY 1.27 billion, accounting for 94.47% of total revenue, with a year-on-year decrease of 7.82%[56]. - The pharmaceutical segment's revenue fell by 42.54% to CNY 74.16 million, down from CNY 129.06 million in 2019[56]. Business Strategy and Focus - The company plans to focus solely on its pesticide and chemical business following the sale of its pharmaceutical subsidiary, Ark Pharmaceutical[16]. - The company completed the sale of 100% equity in Ark Pharmaceutical by the end of 2020, shifting its business focus[16]. - The company sold its pharmaceutical business to focus on the agricultural chemical sector, aligning with national strategies for sustainable development[29]. - The company aims to enhance safety management and operational efficiency by adopting a "safety first" development philosophy[29]. - The company plans to strengthen resource organization around market demands to improve economic operation quality[30]. - The company is committed to leveraging digital economy and advanced technologies to upgrade traditional processes and extend its value chain[29]. - The company plans to optimize production processes and enhance its agricultural chemical core business in 2021, ensuring high operational efficiency[91]. Market and Competitive Landscape - The company faces risks including market competition, environmental safety, exchange rate fluctuations, and raw material price changes[4]. - The agricultural chemicals market is expected to see stable demand in 2021, with improved supply quality and better market performance for insecticides and fungicides[28]. - The pesticide industry is experiencing accelerated consolidation, with a push towards centralized, large-scale, and specialized operations to improve international competitiveness[90]. - Approximately two-thirds of the company's agricultural business revenue comes from exports, making it sensitive to USD/CNY exchange rate fluctuations[95]. - The company faces significant market competition, with many small manufacturers impacting pricing and market dynamics[95]. Environmental and Safety Compliance - The company focuses on safety and environmental compliance, investing in special rectification and governance to ensure stable production amid strict regulations[42]. - The company has implemented a dual prevention system for risk management and established a comprehensive safety information platform[44]. - Environmental governance efforts have focused on wastewater treatment and emissions reduction, achieving positive results in managing wastewater and waste gas[44]. - The company has established a "five-in-one" safety information platform to improve overall safety management and compliance[44]. - The company is committed to enhancing safety and environmental standards in production, aligning with stricter regulations[92]. - The company has implemented new strategies for environmental compliance, ensuring all emissions are within regulatory standards[156]. Research and Development - The company is collaborating with Hunan Chemical Research Institute to strengthen its product development capabilities in phosgene derivatives[49]. - Total research and development expenses decreased by 54.39% to 15,888,886.40 yuan, which is 1.18% of total revenue, down from 2.32% the previous year[69]. - The company is focused on expanding its product range to meet the demands of high-end customers[93]. Financial Management and Cash Flow - The company has enhanced its cash flow management, maintaining accounts receivable at a low level through strict budget management and cost control measures[46]. - The total cash inflow from investment activities surged by 1,977.82% to 328,381,954.51 yuan, mainly due to proceeds from the sale of subsidiaries[72]. - The company reported a significant reduction in financial expenses by 29.24% to 38,408,726.58 yuan, due to decreased bank borrowings[68]. - The company aims to strengthen cost control measures and improve financial management to ensure operational liquidity[93]. Shareholder and Governance Matters - The company has not distributed cash dividends in the past three years, citing financing pressures and cash flow considerations[100]. - The company has committed to not engage in any competitive business activities with its subsidiaries and to avoid any related party transactions that could harm the interests of the company and its shareholders[105]. - The company has maintained normal performance of its commitments regarding competition and related transactions since February 2016[104]. - The company has appointed independent directors with extensive backgrounds in finance and law, enhancing governance and oversight[199][200]. Legal and Regulatory Compliance - The company received a notice from the China Securities Regulatory Commission (CSRC) on January 8, 2019, regarding an investigation into information disclosure violations[119]. - On April 7, 2020, the company received an administrative penalty decision from the CSRC, confirming the violations but not triggering mandatory delisting conditions[119]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[110]. Employee and Social Responsibility - The company provides comprehensive social security benefits for employees and conducts regular training to enhance their skills[147]. - The company invested 9.09723 million yuan in safety measures during the reporting period, with 44 safety training sessions conducted, totaling 1,924 participants[152]. - The company has not initiated any poverty alleviation projects during the reporting period[153].