ZJAMP.(SZ:002758)2022-04-26 16:00Financial Performance - The company's operating revenue for 2021 was ¥35,143,834,632.84, representing a 22.25% increase compared to ¥28,747,252,789.39 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥658,384,303.75, an increase of 87.52% from ¥351,110,025.28 in 2020[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥596,751,972.27, a significant increase of 1,259.42% compared to ¥43,897,430.43 in 2020[25]. - The company's total assets at the end of 2021 were ¥16,312,540,728.50, a 29.68% increase from ¥12,579,456,290.43 at the end of 2020[25]. - The basic earnings per share for 2021 was ¥1.35, up 87.50% from ¥0.72 in 2020[25]. - The weighted average return on equity for 2021 was 20.12%, an increase of 7.57% compared to 12.55% in 2020[25]. - The total revenue for 2021 reached 1,635,469.71 million CNY, with a year-on-year increase of 13.87% in revenue from outside Zhejiang Province[47]. - The company reported a comparable operating income of 146,662.46 million CNY in 2021, up from 134,630.56 million CNY in 2020[47]. - The company reported a total of ¥61,632,331.48 in non-recurring gains for 2021, compared to ¥307,212,594.85 in 2020[31]. Dividends and Profit Distribution - The company reported a cash dividend of 3.00 RMB per 10 shares (including tax) to all shareholders, with no bonus shares or capital reserve conversion[5]. - The total distributable profit for the company as of December 31, 2021, is RMB 269,441,224.59, with a net profit of RMB 293,861,269.54 for the year[187]. - The cash dividend distribution accounts for 100% of the total profit distribution amount[187]. - The cash dividend distribution plan is subject to approval at the annual general meeting[187]. Corporate Governance - The board of directors confirmed the accuracy and completeness of the annual report, ensuring no false records or misleading statements[4]. - The company ensures compliance with corporate governance regulations, maintaining a transparent and independent operational structure[144]. - The company has established a complete independent business system, ensuring no asset or financial intermingling with the controlling shareholder[146]. - The company has developed a series of internal control systems to ensure compliance with regulatory requirements and effective risk management[145]. - The company maintains an independent financial accounting department, ensuring no interference from shareholders in financial decisions[147]. - The company has a complete organizational structure that operates independently from its controlling shareholder[148]. - The company has established a governance structure that includes a board of directors and various committees to enhance decision-making processes[200]. Market and Industry Position - The company has maintained a strong competitive position in the agricultural input distribution sector, ranking among the top three for 12 consecutive years according to the China Agricultural Production Materials Circulation Association[35]. - The company has established strategic partnerships with major domestic and international fertilizer manufacturers to enhance its supply chain capabilities[40]. - The company has engaged in continuous supervision and financial advisory services from Huajin Securities and Haitong Securities, respectively, since June 2020[23]. - The company has established strategic partnerships with top international agricultural production and trade companies, enhancing its resource advantages[52]. - The company is focused on expanding its market presence and enhancing product quality to mitigate identified risks[5]. Risks and Challenges - The company highlighted risks including market competition, changes in customer demand, and operational product quality, which are detailed in the management discussion section[5]. - The company acknowledges potential risks from changes in industrial policies that may impact its main products, including agricultural chemicals and automotive regulations[136]. - The company faces intensified market competition, with industry leaders increasing mergers to expand market share amid a fragmented market[136]. - The company recognizes the risk of changing customer demands, shifting from quantity to quality, particularly in agricultural inputs and pharmaceuticals[137]. - The company is aware of the risks associated with product quality and brand reputation, which could adversely affect downstream distributors[137]. Strategic Initiatives - The company is expanding its third-party pharmaceutical logistics and traditional Chinese medicine production, aiming for a comprehensive development model[41]. - The company plans to enhance its product offerings, including slow-release fertilizers and traditional Chinese medicine, to boost sales revenue[79]. - The company aims to enhance operational quality and accelerate new product development, optimizing product structure based on customer needs to increase market share and profitability[126]. - The company plans to strengthen mergers and acquisitions, leveraging its financing advantages to improve industry layout and enhance market value management[127]. - The company intends to improve service quality by building a modern agricultural social service system characterized by integration and digitalization[129]. Employee and Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 753.61 million[171]. - Chairman Bao Zhonghai received a total remuneration of CNY 67.75 million for the reporting period[170]. - General Manager Lin Changbin's remuneration was CNY 146.26 million, the highest among the directors[170]. - The company has a total of 32 stores, with 28 located in Zhejiang Province and 4 outside, covering a total area of 269,083.42 square meters[47]. - The company has implemented a talent inheritance mechanism to strengthen its human resources and enhance its market adaptability[54]. Research and Development - Research and development expenses increased by 7.78% to ¥13,546,859.08, with a significant increase in R&D personnel by 140% to 60[79]. - The company is investing 200 million RMB in R&D for new technologies aimed at enhancing product efficiency and sustainability[159]. - The company has established the Zhejiang Agricultural Modern Agricultural Technology Research Institute to focus on crop solutions and precision agriculture, utilizing technologies like AI and big data[54]. Operational Efficiency - The company has implemented cost-cutting measures that are projected to save approximately 50 million RMB annually[159]. - The company aims to reduce operational costs by 8% through efficiency improvements in the supply chain[165]. - The company has taken steps to improve its internal control processes, including the establishment of anti-fraud procedures and control measures[193]. Future Outlook - The company provided a revenue guidance of 1.5 billion RMB for the fiscal year 2022, indicating a projected growth of 25%[159]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a focus on companies in the health sector[159]. - The company plans to strengthen its pharmaceutical business by focusing on product channels and expanding direct chain stores in rural areas[130].