SAL(SH:603970)2024-04-18 12:19Financial Performance - The company's operating revenue for 2023 was CNY 10,459.62 million, a decrease of CNY 1,239.15 million or 10.59% compared to the previous year[20]. - The company's operating revenue for 2023 was CNY 10,459,621,436.86, a decrease of 10.59% compared to CNY 11,698,774,538.31 in 2022[80]. - The net profit attributable to shareholders for 2023 was CNY 224,840,982.74, representing a 6.91% increase from CNY 210,315,345.71 in 2022[80]. - The company achieved a net profit of ¥195,634,838.05 for the fiscal year 2023, with a distributable profit to shareholders amounting to ¥716,141,672.27 after accounting for dividends and reserves[66]. - The net profit after deducting non-recurring gains and losses was CNY 200,575,072.44, up by 0.83% from CNY 198,918,401.97 in the previous year[80]. - The company reported a net profit of CNY 98,642,393.05 for the second quarter of 2023, with a significant drop in cash flow from operating activities to CNY -164,457,730.19 in the third quarter[83]. - The company reported a gross margin of 7.39% for the pesticide distribution segment, a decrease of 10.94% year-on-year[27]. Cash Flow and Assets - The company's cash flow from operating activities showed a net outflow of ¥944,205,452.99, a significant change from the previous year's inflow of ¥1,535,609,866.20[16]. - Cash and cash equivalents decreased by 55.27% to CNY 864.09 million, down from CNY 1,931.72 million in the previous period[18]. - The net cash flow from operating activities was -94,420.55 million RMB, a decrease of 247,981.53 million RMB compared to the previous year[126]. - The total assets reported were approximately 1.78 billion, with a decrease of 4.67 million in other current assets[181]. - The company's total assets decreased by 10.59% compared to the previous year, reflecting a strategic shift in asset management[18]. - Total assets at the end of 2023 were CNY 6,008,221,030.09, down 3.81% from CNY 6,246,304,846.14 at the end of 2022[80]. Research and Development - R&D expenses rose by 42.76% to ¥65,363,825.67, reflecting a significant increase in R&D investment[1]. - The total R&D investment accounted for 0.62% of operating revenue, with no capitalized R&D expenditures[2]. - The number of R&D personnel is 165, representing 19.3% of the total workforce[5]. - The company obtained three national invention patents in 2023, enhancing its R&D capabilities in pesticide formulations[122]. - The company focuses on the research and introduction of pesticide products and plant protection technologies, increasing investment in new technologies and formulations[188]. Sales and Market Performance - The company reported a 4.10% growth in domestic business sales compared to the previous year, despite a decline in overseas sales[9]. - Sales of pesticide formulations increased by 11.49% year-on-year, despite a decline in raw pesticide product sales due to falling prices[23]. - The sales of crop nutrition products increased by over 100% year-on-year, with the sales of the key product, Fulvia, approaching CNY 200 million[89]. - The overall agricultural chemical market is experiencing a supply surplus, with high inventory levels and declining prices affecting demand[110]. - The domestic pesticide market is expected to recover as inventory levels decrease, with most products currently at historical low prices[185]. Investments and Subsidiaries - The company established a new subsidiary in Singapore and increased its stake in a subsidiary from 58% to 90%[13]. - The company’s long-term equity investments remained stable, with a slight increase of 1.09% to CNY 29.60 million[18]. - The company has expanded its international presence, with subsidiaries in over 50 countries and a focus on global pesticide product registration[144]. Risk Management - The company has outlined various risks in its operations and has detailed measures to mitigate these risks in the management discussion section of the report[68]. - The company is facing challenges in the domestic agrochemical market due to global geopolitical conflicts affecting traditional chemical supply chains[132]. - The company faces risks from market competition and potential changes in procurement policies from pesticide manufacturers and distributors[192]. - The company's overseas sales are primarily quoted and settled in USD, making it susceptible to exchange rate fluctuations[193]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 4.50 per 10 shares, totaling CNY 120.96 million, which represents 53.80% of the net profit for 2023[40]. - The company reported an increase in retained earnings to ¥645,670,370.83 at the beginning of the year, after distributing dividends of ¥105,600,052.80 for the previous year[66]. Operational Improvements - The company expanded its logistics network by increasing warehouse numbers and upgrading logistics information systems to improve delivery efficiency[89]. - The company has established a comprehensive agricultural service network with over 3,000 channel partners and 32 warehousing and distribution centers across major agricultural counties in China[119]. - The company has established a comprehensive supply chain service in the agrochemical distribution sector, integrating R&D, processing, trading, and sales[122]. - The company has established a "Lihua Youpin" crop health solution platform, providing comprehensive technical services to farmers[147].