LMGF(SZ:002734)2022-04-19 16:00Financial Performance - The company reported a significant increase in revenue, with total revenue reaching 1.5 billion yuan, representing a year-on-year growth of 15%[14]. - The company’s net profit for the year was reported at 300 million yuan, reflecting a 10% increase compared to the previous year[14]. - The company's operating revenue for 2021 was ¥4,737,565,985.43, representing a 7.97% increase compared to ¥4,388,047,897.50 in 2020[19]. - The net profit attributable to shareholders decreased by 20.49% to ¥306,922,328.31 in 2021 from ¥386,024,873.13 in 2020[19]. - The company’s revenue for 2021 was CNY 1,331.526 million, with a net profit of CNY 99.8364 million, accounting for 28.11% and 29.80% of the consolidated financial statements respectively[45]. - The company achieved a total operating revenue of CNY 4,737.57 million in 2021, representing a year-on-year growth of 7.97%[60]. - The company’s revenue from agricultural pesticides reached CNY 4,239.64 million, accounting for 89.49% of total revenue, with a growth of 9.04% year-on-year[60]. - The company’s revenue from veterinary drugs was CNY 477.25 million, representing a year-on-year increase of 9.11%[60]. Dividend Policy - The company plans to distribute a cash dividend of 3.00 yuan per 10 shares (including tax) to all shareholders[4]. - The total cash dividend, including other methods, reached ¥157,445,461.38, representing 100% of the profit distribution total[166]. - The company has implemented a cash dividend policy, distributing at least 20% of the annual distributable profit in cash, or 60% of the average annual distributable profit over three years[162]. - The company aims for a minimum cash dividend ratio of 80% for mature stages without major capital expenditures, and 40% with major expenditures[162]. - The company engages in regular communication with shareholders, especially minority shareholders, regarding dividend distribution proposals[164]. Market Expansion and Strategy - The company is focusing on expanding its market presence in Southeast Asia, particularly in Cambodia and Myanmar, to enhance its competitive edge[11]. - The company aims to achieve a revenue target of 1.8 billion yuan for the next fiscal year, indicating a growth forecast of 20%[14]. - The company is exploring strategic acquisitions to enhance its product portfolio and market reach, with a focus on companies in the agricultural sector[11]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[137]. - The company is actively pursuing opportunities for mergers and acquisitions to bolster its market position and expand its product portfolio[132]. Research and Development - The company has invested 200 million yuan in research and development for new pesticide formulations, aiming to launch three new products in the next fiscal year[14]. - The total R&D expenses for the year were ¥183,613,230.94, an increase of 4.85% compared to the previous year[74]. - The total R&D investment for 2021 was approximately ¥189.67 million, an increase of 2.21% compared to ¥185.57 million in 2020[78]. - The company has established five R&D platforms, including a GLP-certified laboratory, enhancing its capabilities in new drug discovery and pesticide technology development[50]. - The company has ongoing R&D projects for new pesticides, aiming for new product commercialization to create additional profit growth points[75]. Production and Capacity - The company has established a new production facility in Jiangsu province, expected to increase production capacity by 25%[14]. - The production capacity for the main product, raw pesticide, is designed at 83,300 tons/year, with a utilization rate of 84.16%[44]. - The company has a total designed capacity for pesticide formulations of 114,360 tons/year, with a utilization rate of 78.85%[44]. - The company is implementing a technical transformation project to produce 12,000 tons of aluminum phosphonate annually, with 80% of the output exported to European wine grape regions[52]. - The annual production project for 5,000 tons of Glyphosate by subsidiary Weiyuan Biochemical is expected to lower costs and emissions, improving market competitiveness[52]. Environmental Commitment - The company is committed to sustainability and has implemented new environmental practices in its production processes[11]. - The company has established comprehensive management systems for wastewater discharge and emergency response to environmental incidents[185]. - Limin Chemical reported a total pollutant discharge of 57.59 tons for COD, 6.33 tons for ammonia nitrogen, and 0.22 tons for cyanide, all within the regulatory limits[183]. - The company has continuously improved its pollution prevention technologies and increased investment in environmental protection initiatives[186]. - The company has signed a contract with China University of Mining and Technology for clean production technology services, focusing on improving production processes[186]. Risk Management - The company has identified potential risks including market competition and raw material price fluctuations, which may impact future performance[4]. - The company has implemented measures to mitigate risks associated with exchange rate fluctuations, customer defaults, and internal control risks related to derivative investments[93]. - The company is committed to enhancing environmental protection measures and carbon reduction capabilities in response to increasing ESG requirements[109]. - The company faces safety production risks due to the flammable, explosive, toxic, and corrosive nature of some raw materials, with production disruptions increasing safety risks[110]. - The company has a structured approach to performance incentives, linking rewards to both individual contributions and company performance[140]. Corporate Governance - The company has a robust governance structure with a board of directors, supervisory board, and specialized committees, ensuring compliance with corporate governance regulations[114]. - The independent directors actively participated in corporate governance and decision-making, providing valuable professional opinions on system improvement and operational development[147]. - The company has established a dedicated internal audit department to oversee internal controls and financial reporting[178]. - The company has a complete procurement, production, sales, and R&D system, allowing for independent market operations[119]. - The company maintains a clear separation of assets and operations from its controlling shareholders, ensuring independence in business operations[116]. Employee Management - The total number of employees at the end of the reporting period is 4,579, with 2,825 in production, 467 in sales, 872 in technology, and 354 in administration[155]. - The company encourages skill enhancement among employees, providing subsidies for skill certification and establishing a skill wage promotion channel[157]. - The company has a structured training program for middle and senior management to enhance leadership capabilities, including projects like "Learning from Huawei" and "Coaching Leadership"[159]. - The company has implemented a cash dividend policy, distributing at least 20% of the annual distributable profit in cash, or 60% of the average annual distributable profit over three years[162]. - The company has established an incentive mechanism for senior management, linking their income to performance, which has improved operational management[173].