LMGF(SZ:002734)2019-04-11 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,519,182,041.58, representing a 6.73% increase compared to ¥1,423,420,520.05 in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥206,113,576.77, a significant increase of 50.09% from ¥137,323,646.53 in 2017[18]. - The net cash flow from operating activities reached ¥231,571,605.77, marking a substantial increase of 216.94% compared to ¥73,063,987.57 in the previous year[18]. - The basic earnings per share for 2018 was ¥0.74, up 51.02% from ¥0.49 in 2017[18]. - Total assets at the end of 2018 amounted to ¥2,735,314,477.10, reflecting a 14.65% increase from ¥2,385,880,926.07 at the end of 2017[18]. - The company reported a net profit of ¥198,193,103.79 after deducting non-recurring gains and losses, which is an 89.82% increase from ¥104,412,748.53 in 2017[18]. - The total operating revenue for 2018 was ¥1,519,182,041.58, representing a year-on-year increase of 6.73% from ¥1,423,420,520.05 in 2017[41]. - The revenue from pesticides accounted for 98.56% of total revenue, with a year-on-year growth of 9.46% to ¥1,497,274,208.64[41]. - The revenue from agricultural fungicides was ¥1,191,102,417.75, which is 78.40% of total revenue, showing a 2.14% increase compared to the previous year[43]. - The gross profit margin for pesticides was 27.51%, with a slight decrease of 0.41% from the previous year[43]. - Domestic revenue reached ¥697,926,846.54, accounting for 45.94% of total revenue, with a year-on-year growth of 14.72%[41]. - The gross profit margin for 2018 was 48.14%, down from 59.75% in 2017, indicating a decline in profitability[93]. Dividend Policy - The company reported a cash dividend of 3.50 CNY per 10 shares (including tax) based on a total of 283,500,570 shares[5]. - The cash dividend for the 2017 fiscal year was 5.00 CNY per 10 shares, with a capital reserve conversion of 7 shares for every 10 shares held[90]. - The company maintains a policy to distribute at least 20% of the annual distributable profit as cash dividends, ensuring sustainable returns to investors[86]. - In the case of rapid revenue and net profit growth, the company may propose stock dividends in addition to cash dividends[87]. - The company’s cash dividend distribution is subject to conditions such as positive net profit and sufficient cash flow to ensure ongoing operations[86]. - The board of directors is responsible for proposing dividend distribution plans, which must be approved by the shareholders' meeting[88]. - The company has a structured approach to engage with minority shareholders regarding dividend policies and proposals[88]. - The cash dividend policy aligns with the company's articles of association and shareholder resolutions[89]. - The company has not proposed any capital reserve conversion to increase share capital for the 2018 fiscal year[89]. - The company’s cash dividend distribution for the past three years reflects a commitment to providing reasonable returns to shareholders[92]. - In 2018, the company's net profit reached CNY 195,987,413.50, with a total distributable profit of CNY 475,699,216.29[95]. - The cash dividend distribution plan proposes a cash dividend of CNY 3.50 per 10 shares, totaling CNY 99,225,199.50, which accounts for 100% of the profit distribution[95]. Market Position and Strategy - The company is a leading manufacturer in the pesticide industry, focusing on high-efficiency, low-toxicity, and low-residue products[27]. - The global pesticide market has shown an upward trend, driven by population growth and increased demand for economic crops[28]. - The company is positioned as the largest producer of protective fungicides in China, with a significant presence in over 80 countries and regions[28]. - The company emphasizes the development of new, environmentally friendly pesticides as a key trend in the industry[28]. - The company expanded its international market presence by establishing a subsidiary in Myanmar and completed 147 new product registrations, with a focus on Southeast Asia, the Middle East, and Central and South America[38]. - The company aims to enhance its technological capabilities through the establishment of GLP laboratories and industry-academia-research platforms[76]. - The company will focus on capital operations by integrating related projects and cautiously implementing a dual-main business strategy[77]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic initiatives[100]. Research and Development - The company’s R&D expenditure was ¥57,145,679.91, which is 3.76% of total revenue, down from 4.11% in the previous year[53]. - The number of R&D personnel increased by 10% to 308, representing 15.90% of the total workforce[53]. - The company holds 15 authorized invention patents and 28 utility model patents, with its subsidiary Hebei Shuangji holding 2 authorized invention patents and 7 utility model patents[31]. - The company is investing in new technology development, allocating 100 million yuan towards R&D initiatives[187]. Acquisitions and Investments - The company initiated a major asset purchase project to acquire 100% equity of Weiyuan Biochemical, Animal Pharmaceuticals, and Inner Mongolia Xinweiyuan, which was approved by the first extraordinary general meeting of shareholders in 2019[39]. - The company plans to complete the construction of a 500-ton benzoyl methyl ring project by the second half of 2019, and a 10,000-ton DF product project by its subsidiary Hebei Shuangji by the first half of 2019[39]. - The company planned to acquire 70% of Shandong Damin for RMB 10,875 million, but the acquisition agreement was terminated due to changes in the operating environment[67]. - The company reported that the acquisition of Hebei Shuangji did not meet expected benefits due to increased costs and product structure adjustments[66]. - The company continues to maintain business cooperation with Shandong Damin and BASF for the supply of raw materials despite the termination of the acquisition agreement[66]. - The company has committed to ensuring that Hebei Shuangji achieves a net profit of no less than CNY 41 million in 2018[97]. - The company has a profit commitment for Hebei Shuangji to achieve a net profit of no less than 45 million yuan in 2019[100]. Environmental Compliance - The company has invested a total of 330 million yuan in environmental protection measures, achieving compliance with "three wastes" discharge standards[79]. - The company has established three wastewater treatment facilities with a daily processing capacity of 7,800 tons, ensuring compliance with discharge standards[145]. - The company has 14 sets of exhaust gas treatment devices with an annual processing capacity of 208,000 standard cubic meters, effectively controlling emissions[145]. - The company has received 8 utility model patents and 2 invention patents related to environmental protection, demonstrating its commitment to innovation in this area[143]. - The company has been recognized as an advanced unit in environmental protection during the "12th Five-Year Plan" period and received accolades for its contributions to green development[144]. - The company has implemented a comprehensive solid waste management system, ensuring hazardous waste is handled by qualified units and maintaining complete records[146]. - The company has not faced any environmental administrative penalties or major pollution incidents during the reporting period, indicating strong compliance[147]. - The company has a well-defined emergency response plan for environmental incidents, enhancing its ability to manage potential environmental emergencies[146]. - The company has achieved ISO9001, ISO14001, and OHSAS18001 certifications, reflecting its adherence to quality and environmental management standards[147]. Corporate Governance - The company has independent directors who have served in various capacities, ensuring compliance and governance[192]. - The company is actively involved in the agricultural chemicals sector, indicating a strategic focus on this market[192]. - The company has a commitment to enhancing its corporate governance through independent oversight[192]. - The management team includes individuals with a range of expertise, contributing to the company's strategic direction[195]. - The total remuneration for the board of directors and senior management during the reporting period amounted to CNY 713.45 million[196]. - The highest remuneration was received by the general manager, totaling CNY 107.15 million[195]. - The company has established a performance evaluation system linking senior management's performance to their compensation[193]. Employee and Shareholder Information - The total number of employees in the parent company is 1,123, with a combined total of 1,937 employees across the parent and major subsidiaries[198]. - The professional composition includes 1,253 production personnel, 155 sales personnel, 375 technical personnel, 21 financial personnel, and 133 administrative personnel[199]. - The company has 51 retired employees for whom it bears costs[198]. - The salary policy emphasizes strategic orientation, focusing on job value, employee capability, and performance, with a special incentive structure for core employees[200]. - The total number of ordinary shareholders at the end of the reporting period was 14,077, an increase from 13,093 at the end of the previous month[169]. - The largest shareholder, Li Ming, holds 21.86% of the shares, totaling 61,990,500 shares, with 49,592,000 shares pledged[169]. - The company has no preferred shares outstanding during the reporting period[177]. - The top ten shareholders include both natural persons and non-state-owned legal entities, with significant share pledges noted[170].