LMGF(SZ:002734)2024-04-25 12:09Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2023[15]. - The company's operating revenue for 2023 was approximately ¥4.22 billion, a decrease of 15.80% compared to ¥5.02 billion in 2022[20]. - Net profit attributable to shareholders was approximately ¥62.05 million, down 71.67% from ¥219.04 million in the previous year[20]. - The company reported a significant drop in net profit after deducting non-recurring gains and losses, with a decrease of 75.92% to approximately ¥45.49 million[20]. - The company's total revenue for 2023 was CNY 4,223.94 million, a decrease of 15.80% compared to CNY 5,016.36 million in 2022[54]. - The revenue from the pesticide segment was CNY 3,819.27 million, accounting for 90.42% of total revenue, with a year-on-year decline of 15.27%[57]. - The total revenue from agricultural fungicides was approximately CNY 2.08 billion, with a sales volume of 88,925.39 tons, reflecting a downward trend due to market supply and demand changes[60]. - The total revenue from veterinary medicines was approximately CNY 369.63 million, with a sales volume of 4,215.22 tons, also showing a downward trend[60]. Dividend Distribution - The company plans to distribute a cash dividend of 2 RMB per 10 shares to all shareholders, based on a total of 359,494,014 shares[4]. - The cash dividend distribution will account for 100% of the total profit distribution amount, with the available distributable profit being 588,805,197.56 yuan[158]. - The company has achieved a net profit of -25,206,855.52 yuan for the year, but the total available profit for distribution after adjustments is 588,805,197.56 yuan[158]. - The company has a mechanism for adjusting profit distribution policies, which requires board approval and must be submitted to the shareholders' meeting for approval[157]. - The company’s independent directors are required to provide clear opinions on the dividend distribution proposals and engage with minority shareholders to gather their feedback[156]. 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[15]. - The company anticipates a revenue growth target of 10% for 2024, driven by new product launches and market expansion efforts[15]. - The company is exploring strategic acquisitions to bolster its product portfolio and market share in the agricultural sector[15]. - The company plans to enhance overseas expansion and domestic channel integration, focusing on market demand and profitability[102]. Research and Development - The company has invested in new product development, particularly in the agricultural chemicals sector, aiming to launch three new products by the end of 2024[15]. - The company is committed to enhancing its research and development capabilities, with a budget increase of 20% for the upcoming fiscal year[15]. - The company has established a technical research and development center to optimize and manage R&D resources, focusing on biochemistry and new energy projects[55]. - The company focuses on a "5+N" R&D system, integrating biological fermentation, chemical synthesis, and formulation processing to ensure product quality and safety[51]. - The number of R&D personnel increased by 18.86% to 895, enhancing the company's innovation capacity[69]. Operational Efficiency and Cost Management - The company is committed to technological innovation and has invested in research and development to strengthen its competitive edge in the agricultural and veterinary sectors[36]. - The company is focused on cost reduction and efficiency improvement through advanced technology and process management in its production[44]. - The company has implemented a share buyback program, with a total of 1.941 million shares repurchased[120]. - The company has a structured remuneration scheme that includes basic salary, performance pay, and special reward pay based on various factors[133]. Environmental and Safety Management - The company is committed to sustainable development, emphasizing green manufacturing and environmental responsibility in its operations[56]. - The company has established comprehensive environmental management systems, including ISO9001 and ISO14001 certifications, to ensure compliance with environmental regulations[175]. - The company has implemented several new environmental management regulations and guidelines as of 2023[168]. - The company aims to achieve safety production standardization level one by 2024, emphasizing a safety-first approach and comprehensive governance[195]. - The company has established a safety management committee led by the general manager, with 23 dedicated safety management personnel[196]. Corporate Governance - The company has established a robust corporate governance structure, holding 3 shareholder meetings, 9 board meetings, and 5 supervisory meetings during the reporting period[112]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, and operations, ensuring a complete and independent business system[114]. - The company’s governance practices align with relevant laws and regulations, ensuring compliance and transparency[141]. - The board of directors held a total of 21 meetings during the reporting period, with the latest meeting on October 27, 2023[136]. Risk Management - The company has identified potential risks including market competition and raw material price fluctuations, which may impact future performance[4]. - The company is facing uncertainty regarding its ability to continue as a going concern, as indicated by the recent audit report[20]. - The company is closely monitoring exchange rate fluctuations, particularly as exports are primarily quoted and settled in USD, to mitigate foreign exchange risks[106]. - The company is exposed to raw material price fluctuation risks, which significantly impact operating costs and gross margins, and it will strengthen procurement controls to mitigate these risks[105].