Cynda(SH:603086)2024-04-29 11:25Financial Performance - In 2023, XianDa Co. reported its first annual loss since establishment, with a significant decline in the pesticide industry, where profits dropped by 60% year-on-year[4]. - The company's operating revenue for 2023 was approximately ¥2.48 billion, a decrease of 20.58% compared to ¥3.13 billion in 2022[32]. - The net profit attributable to shareholders was approximately -¥97.89 million, representing a decline of 125.68% from ¥381.20 million in the previous year[32]. - The net cash flow from operating activities was -¥890,425.90, a significant drop of 100.24% compared to ¥364.45 million in 2022[32]. - The revenue after excluding non-main business income was approximately ¥2.46 billion, down 20.77% from ¥3.10 billion in 2022[32]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥109.87 million, a decrease of 126.14% from ¥420.22 million in 2022[32]. - The company's net assets attributable to shareholders decreased by 7.93% to CNY 2,003,780,750.03 compared to the end of 2022[33]. - Total assets decreased by 1.06% to CNY 3,317,294,993.02 compared to the end of 2022[33]. - Basic earnings per share dropped to -CNY 0.23, a decline of 126.14% compared to the previous year[33]. - The weighted average return on net assets fell by 23.18 percentage points to -4.55%[33]. Market Strategy and Product Development - The company plans to focus on core product production capabilities and has suspended investments in homogeneous products, such as the 5,000 tons/year Acetochlor project[6]. - XianDa Co. aims to enhance its market presence by developing unique, differentiated herbicides suitable for the Chinese market, leveraging its proprietary technology and partnerships with top research institutions[9]. - The company has established a new drug research base in Shenyang and has successfully launched its first proprietary herbicide, Quinclorac, in 2021, which is the world's first selective herbicide for sorghum fields[10]. - The company plans to continue focusing on high-end herbicide technology innovation and product development amid market challenges[39]. - The company is focusing on developing proprietary products to address the emergence of resistant weeds, adapting to changes in weed communities due to large-scale herbicide use[116]. - The company will expand the registration scope of proprietary products like "Quinclorac" and "2,4-D Butyric Acid" to maximize market potential in 2024[118]. - The company plans to invest in a new automated comprehensive formulation project with an annual capacity of 20,000 tons, aimed at enhancing processing capabilities for various formulation types[45]. Research and Development - The company has successfully developed patented compounds such as Quizalofop and Pyrazolyl, with Quizalofop already launched in the domestic market and registered in Pakistan[41]. - The company has established a formulation development center to optimize formulation research and development processes, aiming to enhance R&D efficiency and expand the product line[42]. - The company is focusing on research and development of new herbicide compounds in collaboration with research institutions and universities[121]. - The company has established a modern laboratory of 5,000 square meters in Shenyang, enhancing its R&D capabilities through project management and collaboration with universities[91]. - The company has implemented a performance evaluation mechanism for senior management to align compensation with long-term business interests[166]. Environmental and Safety Management - The company has implemented a comprehensive safety management strategy, enhancing safety production levels and ensuring normal operations[46]. - The company has committed to fulfilling its environmental responsibilities by reducing traditional energy use and enhancing resource conservation[190]. - The company has established an environmental self-monitoring plan in accordance with the "Technical Specifications for the Application and Issuance of Pollutant Discharge Permits - Pesticide Manufacturing Industry" (HJ862-2017), detailing monitoring indicators, points, frequency, methods, and standards for pollutant emissions[188]. - The company has conducted emergency drills in accordance with the emergency response plan requirements during the reporting period[187]. - The company has implemented carbon reduction measures, including energy management, replacing high-energy-consuming equipment, and improving waste gas treatment efficiency, contributing to reduced carbon emissions[190]. Governance and Compliance - The company has established a sound internal governance structure, ensuring compliance with laws and regulations during shareholder meetings and board operations[131]. - The company guarantees that all shareholders, especially minority shareholders, can fully exercise their legal rights during shareholder meetings[131]. - The company maintains strict information disclosure practices, ensuring that all shareholders receive fair and timely information[132]. - The company has not faced any penalties from securities regulatory agencies in the past three years[143]. - The company has a structured approach to governance, ensuring that directors abstain from discussions regarding their own remuneration[141]. Shareholder Returns and Capital Management - The company plans to distribute cash dividends amounting to at least 10% of the net profit attributable to shareholders for the year, with a cumulative distribution of no less than 30% of the average distributable profit over any three consecutive years[158]. - The company approved a plan for shareholder returns for the next three years (2023-2025) during the annual general meeting[133]. - The total cash dividend amount (including tax) is ¥77.65 million, which also accounts for 20.37% of the net profit attributable to ordinary shareholders[161]. - The company plans to issue 4 bonus shares for every 10 shares held and distribute a cash dividend of ¥2.50 per 10 shares (including tax)[160]. Operational Challenges and Market Outlook - Despite current industry challenges, the overall market for herbicides remains optimistic, with expected stabilization and potential rebound in product prices[12]. - The domestic pesticide industry is facing short-term pressure due to supply-demand imbalances, with profits in the sector declining by 60% year-on-year in 2023[48]. - The global agricultural pesticide market reached a total of 3.54 million tons in 2021, with major usage concentrated in countries like the USA, Brazil, and China[83]. - The global agricultural chemical market is projected to reach $82.845 billion in 2023, with a slight year-on-year increase of 0.1%[48]. Employee Management and Development - The company has a structured compensation system that includes guaranteed, allowance-based, and incentive-based salaries, aiming to motivate employees and align their goals with the company's objectives[153]. - The company has implemented a training program that combines online and offline methods to meet both corporate and employee development needs[155]. - The total number of employees in the parent company is 384, while the main subsidiaries employ 1,796, resulting in a total of 2,180 employees[152].