LIANHE TECHNOLOGY(002250)2024-04-26 12:38Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.2 RMB per 10 shares to all shareholders, based on the total share capital excluding repurchased shares of 11,913,139 shares[5]. - The board of directors has approved the profit distribution plan, emphasizing the commitment to shareholder returns[5]. - The company has implemented a stable profit distribution policy, with a cash dividend amount of ¥18,226,662.34, representing 100% of the total profit distribution[194]. - The net profit for the parent company in 2023 was ¥16,843,405.01, after allocating ¥1,684,340.50 to surplus reserves[194]. - The total distributable profit available for shareholders was ¥2,189,322,816.79, with the previous year's undistributed profit being ¥2,266,488,377.88[194]. - The company has not proposed a cash dividend distribution plan despite having positive distributable profits[194]. - The company’s cash dividend per 10 shares is ¥0.2, with no stock dividends issued[194]. - The company’s cash dividend policy aligns with its mature development stage and aims to enhance investor returns[194]. Financial Performance - The company’s operating revenue for 2023 was ¥6,442,152,833.02, a decrease of 18.10% compared to ¥7,865,465,550.37 in 2022[21]. - The net profit attributable to shareholders for 2023 was -¥465,243,948.60, representing a decline of 166.76% from ¥696,838,439.53 in 2022[21]. - The net cash flow from operating activities increased by 68.67% to ¥1,077,406,421.58 in 2023, up from ¥638,760,811.35 in 2022[21]. - The total assets at the end of 2023 were ¥13,907,013,976.85, a decrease of 7.34% from ¥15,008,660,120.73 at the end of 2022[21]. - The net assets attributable to shareholders decreased by 7.33% to ¥6,441,634,199.75 at the end of 2023, down from ¥6,951,263,314.13 at the end of 2022[21]. - The basic earnings per share for 2023 was -¥0.5039, compared to ¥0.7548 in 2022, reflecting a significant decline[21]. - The total profit for 2023 was CNY -402.05 million, a decline of 142.57% year-on-year, while the net profit attributable to shareholders was CNY -465.24 million, a decrease of 166.76% compared to the previous year[68]. Research and Development - The company has a focus on research and development of new products and technologies, aiming to enhance its market position[5]. - The pharmaceutical R&D team expanded in 2023, with over 1/3 of employees holding master's or doctoral degrees, and developed more than 10 continuous process projects and 4 continuous photocatalysis projects[62]. - The company established a new R&D service (CRO) base in 2023 to enhance R&D capabilities and expanded its technical fields, including PROTAC, Linker, and GalNAc[62]. - The R&D team is committed to optimizing existing product processes and increasing the development of high-value and differentiated products to enhance core competitiveness[61]. - The company is actively participating in the development of innovative drugs, with a pipeline of clinically promising products in phases II and III[43]. - The company has established a multi-level R&D platform to promote rapid integration of process technology and engineering technology, improving market competitiveness of customized and proprietary products[57]. Market and Industry Trends - The company operates in the plant protection industry, which is characterized by high R&D barriers for patented products and intense competition in the non-patented product market[31]. - The global carbon reduction goals are driving the agricultural protection industry to develop more efficient and low-toxicity products, with an increasing demand for biological products and green production processes[32]. - The CDMO model is increasingly adopted by pharmaceutical companies to outsource R&D and production, providing more opportunities for CDMO firms to participate in the entire product supply chain[34]. - The domestic MAH system has created new opportunities for the pharmaceutical market and CDMO companies, enhancing their innovation and production capabilities[35]. - The demand for functional chemicals is rapidly expanding due to increasing needs for battery chemicals and new materials, driven by geopolitical factors and carbon neutrality strategies[36]. - The lithium battery market in China is projected to reach a shipment volume of 886 GWh in 2023, reflecting a year-on-year growth of 35%[131]. Corporate Governance and Compliance - The company emphasizes the importance of accurate and complete financial reporting, with all board members present for the meeting[5]. - The report outlines the company's governance structure and responsibilities of the board and management[5]. - The board of directors consists of seven members, with three independent directors, ensuring compliance with legal and regulatory requirements[160]. - The company has a transparent information disclosure system, ensuring timely and accurate communication with investors[161]. - The company has established a comprehensive internal control system, covering 15 subsidiaries, to ensure effective governance and compliance[198]. - The company has engaged in capital increases and employee stock ownership plans for its subsidiaries, including Shanghai Baofeng and Taizhou Lianhua[197]. Operational Performance and Strategy - The company is committed to compliance with safety, health, environment, and quality standards in its operations[5]. - The company is actively involved in the production of fine chemicals and pharmaceutical intermediates, contributing to its revenue streams[5]. - The company is focused on developing electronic chemicals, battery chemicals, and high-performance polymer materials, while maintaining a stable and high-quality product line[44]. - The company aims to maintain a competitive edge through continuous investment in engineering equipment upgrades and innovative technology applications[63]. - The company is focusing on process optimization for clients' existing products to maintain market competitiveness and has successfully applied unique technical capabilities in various projects[75]. - The company aims to build an end-to-end supply chain management system to maximize production resource utilization while ensuring order delivery capabilities[71]. Employee and Training Initiatives - The total number of employees at the end of the reporting period was 5,771, with 1,086 in the parent company and 4,685 in major subsidiaries[189]. - The company conducted 7,551 internal offline training sessions in 2023, totaling 12,230 hours and reaching 199,166 participants[192]. - Online learning totaled 136,668 hours with 40,272 participants in 2023[192]. - The company spent nearly 4.66 million yuan on various internal and external training consulting fees in 2023[192]. - The professional composition of employees includes 3,573 production personnel, 1,532 technical personnel, and 54 sales personnel[189]. - The company emphasizes a fair compensation policy based on internal, external, and individual fairness[190]. Future Outlook and Strategic Goals - The company aims to maintain industrial business revenue at no less than 2023 levels in 2024, although this target is subject to macroeconomic and market conditions[134]. - The company plans to enhance its core competitiveness by focusing on innovation and expanding its CDMO business, particularly in biopesticides and pharmaceuticals[133]. - In 2024, the company will continue to optimize costs in its pesticide business by improving production processes and introducing advanced environmental treatment technologies[138]. - The pharmaceutical segment is expected to grow steadily, with multiple client validation projects completed in 2023 and new project verifications planned for 2024[140]. - The company is committed to sustainable development and will strengthen its SHEQ&C management system to enhance its core competitiveness in safety, health, and environmental quality[135]. - The company plans to increase its investment in environmental protection and safety measures, which may lead to higher costs but aims to meet stringent regulatory standards[147].