FENGLE SEED(000713)2024-04-25 12:37Financial Performance - The company's operating revenue for 2023 was CNY 3,113,679,181.58, representing a 3.61% increase compared to CNY 3,005,259,332.24 in 2022[24]. - The net profit attributable to shareholders decreased by 31.62% to CNY 40,214,103.71 from CNY 58,811,922.83 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 26,641,226.62, down 42.84% from CNY 46,608,132.14 in 2022[24]. - The net cash flow from operating activities was CNY 165,737,655.61, a significant decline of 58.15% compared to CNY 396,058,647.71 in the previous year[24]. - Basic earnings per share decreased by 31.63% to CNY 0.0655 from CNY 0.0958 in 2022[24]. - Total assets at the end of 2023 were CNY 2,953,035,625.21, reflecting a 0.99% increase from CNY 2,923,986,705.65 at the end of 2022[24]. - The net assets attributable to shareholders increased by 1.47% to CNY 1,952,168,486.44 from CNY 1,923,925,353.62 in the previous year[24]. - The overall gross margin for the company was 66.66%, a decrease of 6.43% from the previous year[83]. - The company reported a total amount of 13,572,877.09 in 2023, an increase of 11.24% compared to 12,203,790.69 in 2022[30]. - The company achieved zero accidents in safety production throughout the year, reinforcing its commitment to safety and environmental standards[67]. Dividend Distribution - The company plans to distribute a cash dividend of 0.2 CNY per 10 shares to all shareholders, based on a total of 614,014,980 shares[5]. - The company has not proposed any stock bonus or capital increase from reserves in its profit distribution plan[5]. - The company reported a distributable profit of 517,129,905.52 CNY, with cash dividends accounting for 100% of the profit distribution[166]. Risks and Challenges - The company emphasizes the risks associated with seasonal fluctuations in seed production and sales, as well as potential impacts from natural disasters and market price volatility[4]. - The company is subject to various risks, including policy, market, and environmental risks related to its chemical business[4]. - The pesticide industry is experiencing a downturn with oversupply and declining prices, impacting profitability[34]. - The fertilizer market is facing volatility with fluctuating raw material prices and low demand, leading to decreased profit margins[34]. - The company faces risks from natural disasters and environmental regulations, with measures in place to strengthen production supervision and improve environmental governance[123]. Research and Development - The company has established a national-level technology center and various research partnerships to enhance its R&D capabilities[35]. - The company has a strong emphasis on independent research and development in the seed industry, with a breeding cycle typically lasting 3-5 years[42]. - The company has launched a variety of new seed products, including hybrid rice and conventional rice seeds, to meet market demands[37]. - The company approved 24 new crop varieties in 2023, including 6 rice varieties (5 national approvals, 1 provincial approval) and 18 corn varieties (13 national approvals, 5 provincial approvals)[44]. - The company has made significant advancements in rice hybridization technology, maize double haploid technology, and non-GMO herbicide-resistant technology, positioning itself as an industry leader[57]. Market and Product Strategy - The company aims to improve its market competitiveness through product differentiation and customized services in the agricultural sector[34]. - The company is recognized as a leading enterprise in the seed industry, with a focus on high-quality and innovative seed products[35]. - The company has established demonstration areas for new rice varieties, targeting market demands for high-quality rice[87]. - The company is focusing on expanding its market presence and enhancing its competitive advantages in the corn and rice sectors[126]. - The company is actively pursuing strategic initiatives, including potential acquisitions and partnerships to strengthen its research and development capabilities[126]. Governance and Compliance - The company has established a robust internal control management system to enhance governance levels, meeting the requirements set by the China Securities Regulatory Commission[131]. - The board of directors and supervisory board operated independently, with no subordinate relationship to the controlling shareholder, ensuring effective governance[133]. - The company respects the rights of various stakeholders, including creditors, employees, consumers, suppliers, and the community, promoting sustainable and healthy development[131]. - The company has maintained an independent financial department with a separate accounting system and independent bank accounts, ensuring no financial overlap with the controlling shareholder[132]. - The company is focused on ensuring compliance with corporate governance standards following the changes in its board[137]. Environmental Responsibility - The company has committed to environmental protection and sustainable development, ensuring compliance with pollution discharge standards through regular third-party monitoring[182]. - The company has a comprehensive environmental protection system in place, including emergency response plans for environmental incidents, which are regularly rehearsed[179]. - The company has upgraded the exhaust treatment facilities of its phosphate fertilizer production line and steam boiler to reduce pollutant emission concentrations[182]. - The company has established a green rice planting demonstration base in Tuan Yang, promoting a "green fertilizer + rice" rotation method to reduce agricultural non-point source pollution[182]. - The company has actively participated in ecological civilization construction in Chaohu, focusing on sustainable agricultural practices[182]. Employee and Management - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 5.7871 million yuan[149]. - The company has implemented a differentiated salary management system, increasing employee wages and adjusting performance bonuses to align with operational performance[161]. - The total number of employees at the end of the reporting period is 1,369, with 387 in the parent company and 982 in major subsidiaries[159]. - The professional composition includes 355 production personnel, 338 sales personnel, 257 technical personnel, 63 financial personnel, and 356 administrative personnel[159]. - The company emphasizes continuous training for employees, combining internal and external resources to improve professional skills[162]. Strategic Initiatives - The company is exploring potential mergers and acquisitions to enhance its market share and product portfolio[143]. - The company is committed to fulfilling its promises regarding industry competition and ensuring compliance with relevant regulations[188]. - The company is focused on enhancing its agricultural product offerings, including high-quality new varieties of rice, corn, and melons, to improve planting efficiency and profitability[185]. - The company is currently fulfilling its long-term commitments regarding related transactions and fund occupation[190]. - The company will ensure compliance with the China Securities Regulatory Commission's regulations regarding the independence of listed companies[193].