Layn(002166)2024-04-09 16:00Dividend Distribution - The company plans to distribute a cash dividend of 2 CNY per 10 shares to all shareholders, based on a total share capital of 741,986,825 shares, excluding shares in the repurchase account[5]. - The company has a total of 741,986,825 shares outstanding, which will be the basis for the dividend distribution[5]. - In 2022, the company distributed cash dividends of RMB 74,208,242.50, at a rate of RMB 1.00 per 10 shares, based on a total share capital of 742,082,425 shares[200]. Financial Performance - The company's operating revenue for 2023 was ¥1,493,929,546.69, representing a 6.65% increase compared to ¥1,400,737,343.44 in 2022[22]. - The net profit attributable to shareholders decreased by 53.84% to ¥82,510,982.99 from ¥178,745,385.35 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 86.17% to ¥20,615,597.65 from ¥149,067,554.85 in 2022[22]. - The net cash flow from operating activities improved significantly, reaching ¥116,589,971.61, compared to a negative cash flow of ¥258,422,111.78 in 2022, marking a 145.12% increase[22]. - The total assets at the end of 2023 were ¥4,625,577,132.96, a 3.82% increase from ¥4,455,360,858.16 at the end of 2022[22]. - The net assets attributable to shareholders increased by 2.18% to ¥3,131,659,215.31 from ¥3,064,751,877.97 in 2022[22]. - The company achieved total revenue of CNY 149,392.95 million, a year-on-year increase of 6.65%, with plant extraction business revenue reaching CNY 148,410.45 million, up 12.27% due to market demand recovery in Q4[73]. - Net profit attributable to shareholders was CNY 8,251.10 million, a decrease of 53.84%, primarily due to a decline in market prices of core plant extraction products and increased expenses[73]. Market Trends and Industry Insights - In 2023, China's plant extract industry experienced its first negative growth in recent years, with total export value declining to 2.91 billion, down 6.2% year-on-year, indicating a contraction in demand from traditional markets like the US and Europe[38]. - The ASEAN market showed significant growth, with non-essential oil plant extract exports reaching 176.17 billion in 2022, expected to approach 54.4 billion by 2027, with China's functional skincare market expected to grow to ¥418 billion by 2026[130]. - The global plant extract market is expected to grow from 32.46 billion by 2027, with a CAGR of 7.9%[130]. Research and Development - The company is focusing on R&D and innovation to maintain a competitive edge in a market characterized by homogenization and increasing consumer demand for personalized health solutions[37]. - The company has developed over 300 standardized plant extraction products, including monk fruit extract, stevia extract, industrial hemp extract, and tea extract, serving various sectors such as food, beverage, medicine, and cosmetics[48]. - The company has established a Plant Science Innovation Center focused on the R&D and cultivation of high-quality monk fruit and stevia seedlings, and set up a Health Product R&D Center in Shanghai for application research of plant extracts in consumer products[62]. - The company has formed strategic partnerships with several universities and research institutions, including Hunan Agricultural University and Jiangnan University, to enhance R&D capabilities and talent cultivation[63]. - The company has implemented a "company + cooperative + farmer" model for raw material procurement, ensuring stable supply and quality of stevia and monk fruit[70]. - The company is developing a proprietary monk fruit breeding system to ensure a sustainable supply of high-quality raw materials[99]. - The company's R&D investment increased by 10.00% to ¥55,950,286.47 in 2023, representing 3.75% of total revenue[100]. Corporate Governance - The governance structure includes a board of 7 members, with 3 independent directors, ensuring compliance with legal requirements and promoting effective decision-making[171]. - The company has established a robust internal control system to enhance operational efficiency and governance standards[170]. - The company is committed to maintaining independence from its controlling shareholder, ensuring autonomous business operations[170]. - The board has established specialized committees, including an audit committee, to provide professional oversight and recommendations[172]. - The company has a fully independent business system, focusing on the research, production, and sales of natural health products, with no competition from its controlling shareholders[176]. - The company has established an independent financial department and accounting system, ensuring no shared bank accounts with controlling shareholders[175]. Employee Development and Training - The total number of employees at the end of the reporting period is 1,146, with 775 in the parent company and 371 in major subsidiaries[195]. - The company organized 62 training sessions in 2023, totaling 15,517 hours of training, resulting in an average of 22 hours of training per employee[197]. - The company developed over 60 internal training courses in 2023 to enhance employee skills and promote internal talent development[198]. - The company adheres to a performance evaluation system to determine salary levels based on job nature and regular assessments[196]. - The company plans to continuously improve performance evaluation standards and attract and retain talented individuals[196]. Strategic Initiatives - The company plans to enhance its market expansion efforts and product development in response to the recovering market demand[28]. - The company aims to strengthen its global supply chain through investments, collaborations, and renovations to meet diverse customer needs[128]. - The company is exploring strategic acquisitions to enhance its product portfolio and market reach, with a budget of $30 million allocated for potential deals[166]. - The company plans to accelerate the development of new consumer products in the health sector, including low-sugar food and beverages, while enhancing its sales channels and self-operated platforms[150]. - The company aims to enhance competitiveness by increasing investment in formula applications and collaborating with research institutions for product optimization[134]. Risk Management - The company acknowledges potential risks from regulatory changes in food safety and industrial hemp, and plans to adapt its strategies accordingly to maintain competitiveness[156]. - The company is focused on mitigating financial risks associated with foreign exchange fluctuations and increasing accounts receivable and inventory levels due to business growth[162]. - Management risks are heightened due to business expansion, prompting the company to invest in training and digital capabilities for its management team[163].