LMGF(SZ:002734)2021-04-19 16:00Financial Performance - The company achieved a revenue of 438,804.79 million CNY, representing a year-on-year growth of 54.91%[46]. - The net profit attributable to shareholders reached 38,602.49 million CNY, with a year-on-year increase of 19.92%[46]. - The company's operating revenue for 2020 was CNY 4,388,047,897.50, representing a 54.91% increase compared to CNY 2,832,674,577.01 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 386,024,873.13, a 19.92% increase from CNY 321,894,664.90 in 2019[19]. - The net profit after deducting non-recurring gains and losses was CNY 364,661,837.18, up 24.73% from CNY 292,368,139.31 in 2019[19]. - The net cash flow from operating activities reached CNY 903,335,207.94, a significant increase of 358.63% compared to CNY 196,965,174.87 in 2019[19]. - The total assets at the end of 2020 were CNY 5,189,717,085.51, an 8.86% increase from CNY 4,767,286,264.84 at the end of 2019[19]. - The basic earnings per share for 2020 were CNY 1.05, reflecting a 17.98% increase from CNY 0.89 in 2019[19]. - The company received government subsidies totaling CNY 22,627,936.62 in 2020, accounting for 5.86% of the net profit for the year[25]. Dividend Policy - The company distributed a cash dividend of 2.50 CNY per 10 shares, totaling 93,128,610.25 CNY for the year 2020, which represents 24.13% of the net profit attributable to ordinary shareholders[119]. - The cash dividend policy stipulates that at least 20% of the distributable profit must be distributed in cash annually, with a minimum of 40% if there are significant capital expenditure plans[114]. - The company’s cash dividend distribution is aligned with its articles of association and has been approved by the shareholders' meeting[117]. - The company has a policy to communicate with minority shareholders regarding dividend proposals, ensuring their opinions are considered[116]. - The cash dividend distribution for 2020 was 100% of the total profit distribution amount[121]. Market Position and Strategy - The company is positioned to benefit from the shift towards high-efficiency, low-toxicity pesticides, which are expected to dominate the market due to increasing environmental awareness[28]. - The company is a leading domestic pesticide producer with significant capacities in various products, including the largest production of mancozeb and other key pesticides[31]. - The company has a market presence in over 80 countries and regions, indicating strong international competitiveness[31]. - The company’s sales strategy includes both domestic and international markets, with a focus on direct sales to large farms and distributors for smaller packages[37]. - The company aims to strengthen its market position through industry consolidation and technological advancements[30]. Research and Development - The company is actively involved in the research and development of environmentally friendly products in response to stricter environmental regulations[30]. - The company has established a complete system for R&D, procurement, production, and sales, enhancing operational efficiency[37]. - The number of R&D personnel rose by 58.01% to 730, with R&D investment amounting to ¥185.57 million, which is 4.23% of operating revenue[74]. - The company has a total of 8 authorized patents related to its main products, enhancing its research and development capabilities[51]. Risk Management - The company faces various risks, including market competition and raw material price fluctuations, which could impact future performance[5]. - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements[5]. - The company has a risk management framework in place to address various risks including market, liquidity, credit, and operational risks[92]. - The company has established performance commitment agreements to mitigate risks associated with the Weiyuan asset group's operational performance[108]. Environmental Management - The company has received multiple environmental management certifications, including ISO 9001, ISO 14001, and OHSAS 18001, demonstrating its commitment to environmental protection and sustainable development[174]. - The company has implemented a "three simultaneous" policy for environmental protection during project construction, ensuring all projects pass environmental approvals and inspections[174]. - The company has not faced any environmental administrative penalties or major pollution incidents during the reporting period[179]. - The company has established and improved environmental management regulations and emergency plans, including various management systems and emergency response plans[175]. Safety Management - The company has a safety management team consisting of 29 dedicated safety personnel and has maintained its safety production license since 2006[158]. - The total safety investment for 2020 amounted to approximately 7.7 million RMB, with a focus on enhancing safety management systems[159]. - The company organized 126 emergency drills throughout the year, improving employees' emergency response capabilities[161]. - The company has implemented a dual control mechanism for risk management, identifying and addressing potential risks across various departments[160]. Subsidiary Performance - The net profit of the subsidiary Limin Chemical reached RMB 134,358,502, contributing significantly to the overall financial performance of the company[102]. - The company’s subsidiary Weiyuan Biochemical reported a net profit of RMB 109,288,335, indicating strong performance in the pesticide production sector[102]. - The total assets of the subsidiary Weiyuan Biochemical stand at RMB 1,629,928,510, reflecting its substantial market presence[102]. Financial Oversight - The financial advisor for the reporting period was Zhongyuan Securities Co., Ltd., indicating ongoing financial oversight[18]. - The company appointed Tianheng Certified Public Accountants (Special General Partnership) as its auditor for the fiscal year 2020, with an audit fee of 1.1 million yuan[134].