LFBC(SZ:002513)2023-04-26 16:00Business Strategy and Focus - Jiangsu Lanfeng Bio-chemical Co., Ltd. reported a strategic shift in its main business focus from "pharmaceutical health + agrochemical" to solely agrochemical products production and sales[22]. - The company has established a strategic development direction rooted in agricultural technology and new materials, relying on phosgene products[22]. - The company’s main business has been focused on the production and sales of agrochemical products since the end of 2020[22]. - The company has no plans for major asset restructuring or acquisitions in the near future[22]. - The company is focusing on product innovation and R&D to meet the growing demand for safe and environmentally friendly agricultural products[36]. - The company aims to expand its market presence by developing new formulations and technologies, establishing a comprehensive solution capability[39]. - The company is exploring capital strategies to overcome challenges and enhance core competitiveness, aiming to improve profitability[39]. Financial Performance - The company’s operating revenue for 2022 was ¥1,445,239,989.37, a slight increase of 0.09% compared to ¥1,443,932,144.80 in 2021[24]. - The net profit attributable to shareholders was -¥320,692,444.11, an improvement of 34.71% from -¥491,191,923.36 in the previous year[24]. - The net cash flow from operating activities was -¥64,335,908.57, a significant decline of 645.38% compared to ¥11,796,557.54 in 2021[24]. - The basic and diluted earnings per share were both -¥0.8576, showing a 40.44% improvement from -¥1.44 in 2021[24]. - Total assets decreased by 14.61% to ¥1,475,544,376.48 at the end of 2022, down from ¥1,727,949,962.51 at the end of 2021[24]. - The net assets attributable to shareholders fell by 46.36% to ¥357,586,939.14 from ¥666,636,974.20 in the previous year[24]. - The company reported a quarterly operating revenue of ¥206,849,421.89 in Q4 2022, a decrease compared to previous quarters[28]. - The company achieved a total revenue of CNY 1,445,239,989.37 in 2022, representing a slight increase of 0.09% compared to the previous year[57]. - The gross margin for 2022 was reported at 35%, showing a slight improvement from 33% in the previous year[86]. Market Conditions and Challenges - The company faced various risks including market competition, safety and environmental risks, exchange rate fluctuations, and raw material price changes[4]. - The company faced significant challenges in the agricultural chemical industry due to rising raw material prices and supply chain disruptions[35]. - The agricultural chemical market continues to be affected by the energy consumption control policies from Q4 2021 to Q3 2022, leading to significant challenges in production scheduling and inventory management[39]. - The company is exposed to exchange rate fluctuations, with nearly two-thirds of its agricultural chemical revenue coming from exports, and will implement strategies to mitigate this risk[103]. - The company is managing raw material price volatility risks by securing stable supply contracts and optimizing production processes to control costs[104]. Research and Development - The company has established a new research institute focused on strategic new materials, aiming to enhance innovation in environmental protection and high-performance materials[54]. - The company is focusing on developing new technologies, including continuous production processes for key products, to enhance production stability and reduce costs[70]. - Research and development expenses amounted to ¥11,651,282.22, reflecting a decrease of 9.80% compared to the previous year[69]. - The number of R&D personnel decreased by 18.28% from 93 in 2021 to 76 in 2022, with the proportion of R&D personnel in total employees dropping from 6.62% to 4.52%[71]. Environmental Compliance and Safety - The company adheres to various environmental standards, including the "Comprehensive Emission Standard for Air Pollutants" and "Soil Environmental Quality Standards"[159][160]. - The company is classified as a key pollutant discharge unit by environmental protection authorities, indicating a commitment to compliance with environmental regulations[159]. - The company has implemented strict measures for hazardous waste storage, ensuring compliance with the "Hazardous Waste Storage Pollution Control Standard"[161]. - The company has conducted 1 city-level emergency drill and 1 company-level emergency drill for environmental incidents in 2022, along with 16 workshop-level drills[172]. - The company has established a comprehensive emergency response plan for environmental incidents, which has been filed with the relevant environmental authorities[172]. Governance and Management - The company governance structure complies with the relevant regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[114]. - The board of directors consists of 7 members, including 3 independent directors, and held 7 meetings during the reporting period[111]. - The company actively engages in investor relations management to enhance governance levels[108]. - The company has established a performance evaluation system for senior management, linking compensation to work performance to enhance accountability and operational efficiency[150]. - The company has implemented a comprehensive internal control system to ensure compliance with laws and regulations, enhancing operational transparency and protecting shareholder rights[153]. Shareholder Relations and Dividends - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the year[144]. - The company has established a cash dividend policy, distributing no less than 20% of the annual distributable profits in cash, ensuring returns for shareholders[176]. - The company has not proposed any cash dividend distribution plan during the reporting period despite having a positive profit available for distribution to shareholders[144]. Legal Matters and Disputes - The court ruled that Jiangsu Lanfeng must pay a total of CNY 3,058,210 for repair costs and CNY 92,080 for tree compensation to Meili Pulp Paper[194]. - Jiangsu Lanfeng has expressed dissatisfaction with the first-instance judgment and has appealed to the Intermediate People's Court of Zhongwei[194]. - The company has initiated legal proceedings against Wang Yu for failing to fulfill performance compensation commitments, with a claim amounting to CNY 55.02 million and penalties[195]. Future Outlook - The company has provided a revenue guidance of 1.8 billion RMB for the next fiscal year, projecting a growth rate of 20%[125]. - Future guidance for 2023 includes a revenue target of 1.65 billion RMB, representing a growth rate of 10%[87]. - The company plans to launch three new pesticide products in 2023, aiming for a market share increase of 5%[87]. - Jiangsu Lanfeng is exploring market expansion opportunities in Southeast Asia, targeting a revenue contribution of 15% from this region by 2025[87].