Forbon(SZ:300387)2022-04-19 16:00Financial Performance - The company achieved a revenue of 683 million CNY in 2021, an increase of 5.82% year-on-year, while the net profit attributable to shareholders decreased by 42.97% to 39.45 million CNY due to the absence of intellectual property licensing income and rising raw material prices[82]. - The company's operating revenue for 2021 was ¥683,004,665.86, representing a 5.82% increase compared to ¥645,426,216.14 in 2020[19]. - The net profit attributable to shareholders decreased by 42.97% to ¥39,453,512.58 in 2021 from ¥69,184,965.14 in 2020[19]. - The net profit after deducting non-recurring gains and losses was ¥34,987,446.87, down 47.13% from ¥66,174,773.61 in the previous year[19]. - The total assets at the end of 2021 were ¥1,682,371,141.40, a decrease of 3.10% from ¥1,736,133,043.14 at the end of 2020[19]. - The net assets attributable to shareholders decreased by 3.26% to ¥1,190,339,370.19 at the end of 2021 from ¥1,230,420,905.69 at the end of 2020[19]. - The company reported a basic earnings per share of ¥0.14, down 41.67% from ¥0.24 in 2020[19]. - The weighted average return on equity was 3.28%, a decrease of 2.46% from 5.74% in 2020[19]. - The company reported a significant decline in revenue from technical services, dropping by 99.14% to CNY 214,134.40 in 2021[94]. - The revenue from fertilizer products surged by 78.25% to CNY 102 million in 2021, compared to CNY 57 million in 2020[94]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.50 per 10 shares to all shareholders, based on a total of 289,789,018 shares[5]. - The company has not issued any bonus shares during the reporting period, maintaining a focus on cash dividends[5]. - The company’s stock repurchase program indicates a commitment to enhancing shareholder value[176]. Risk Management and Operational Challenges - The company emphasizes the importance of risk awareness regarding forward-looking statements in the report, highlighting potential operational risks and countermeasures[5]. - The report includes a section on future development prospects, detailing possible risks and strategies to mitigate them[5]. - The company is facing risks from global pandemic uncertainties, which could impact supply chain and operational stability[150]. - The company has implemented measures to mitigate foreign exchange risks, including a hedging management system[156]. - The company is addressing raw material price volatility by increasing procurement frequency and maintaining reasonable inventory levels[156]. Research and Development - The company achieved a 44.28% year-on-year increase in R&D investment, reaching CNY 31.73 million in 2021, with a total of 171 domestic authorized patents[74]. - The company is investing 100 million RMB in R&D for new technologies aimed at enhancing product efficiency[184]. - The company has a total of 121 R&D personnel, accounting for 40.33% of the workforce, an increase from 37.50% in 2020[107]. - The company is focusing on the development of high-efficiency collectors for low-grade phosphate ore, aiming to improve resource utilization and reduce production costs[106]. Business Segments and Market Expansion - The company operates in three main business segments: fertilizer additives, value-added fertilizers and soil conditioners, and digital agriculture[29]. - The digital agriculture market in China is currently valued at approximately 577.8 billion yuan, with projections to reach 1.26 trillion yuan by 2025, indicating a strong growth trajectory[37]. - The company is focusing on value-added fertilizers and soil conditioners, establishing a subsidiary to provide customized nutrition solutions based on soil testing and crop needs[43]. - The company has established investment layouts in multiple countries including Israel, France, the Netherlands, Canada, and Morocco, laying the foundation for global digital agriculture[45]. - The company is actively pursuing market expansion through strategic partnerships, including a joint venture with Morocco's OCP to establish a research center in Wuhan[79]. Governance and Management - The company maintains a transparent governance structure, with a board of directors comprising 9 members, including 3 independent directors, ensuring compliance with legal requirements[163]. - The company has implemented a stock option and restricted stock incentive plan to attract and retain talent, aligning interests among shareholders, management, and employees[165]. - The company has established a complete and independent asset ownership structure, ensuring clarity in rights and ownership of necessary assets for production and operations[169]. - The company has seen a change in senior management, with multiple resignations and new appointments in 2021[178]. - The company’s Chairman and General Manager, Wang Renzong, has extensive experience in various leadership roles across multiple companies since 1990[178]. Strategic Initiatives and Future Outlook - The company aims to achieve a strategic transformation from traditional agriculture to digital agriculture, utilizing its long-term industry experience and technological accumulation[45]. - The company plans to enhance its product offerings in the additive sector and expand its marketing network, particularly in overseas markets related to the "Belt and Road" initiative[141]. - The company is committed to building a digital agriculture model, utilizing innovative technologies to provide comprehensive planting services and improve agricultural efficiency[143]. - The company will focus on the integration of soil data and agricultural inputs to achieve standardized management and traceability in agricultural production[143]. - The company aims to create a digital agriculture industry park to serve as a demonstration base for modern agricultural practices and education[144].