Core Viewpoint - The company experienced a decline in performance in 2024 due to foreign exchange losses, but the proportion of C-end revenue continues to rise, with a strong start to 2025 as the net profit attributable to shareholders increased by 67.98% year-on-year in Q1 2025 [1] Financial Performance - In 2024, the company achieved operating revenue of 13.296 billion yuan, a year-on-year increase of 15.77%, while the net profit attributable to shareholders was 450 million yuan, a year-on-year decrease of 41.63% [2] - In Q4 2024, the company reported operating revenue of 3.511 billion yuan, a year-on-year increase of 18.38% but a quarter-on-quarter decrease of 14.44%, with a net profit of 109 million yuan, a year-on-year increase of 119.23% but a quarter-on-quarter decrease of 32.08% [2] - In Q1 2025, the company achieved operating revenue of 2.686 billion yuan, a year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49%, with a net profit of 257 million yuan, a year-on-year increase of 67.98% and a quarter-on-quarter increase of 136.59% [2] Business Development - The company is focusing on the growth of its TO C business, with the revenue share from TO C increasing from 33.82% in 2023 to 37.65% in 2024, and the TO C business gross margin rising to 28.99%, an increase of 0.09% year-on-year [3] - The company has seen an increase in its EU and North America business share, rising from 5.69% in 2023 to 9.75% in 2024, and the share of insecticide and fungicide business revenue increased from 25.41% to 25.71% [3] - The company has strengthened its biopesticide segment by establishing a global bioproducts team, achieving first-year sales of approximately 10 million USD [3] - The company has enhanced its global marketing network, obtaining over 1,000 new registrations in 2024, totaling over 7,700 pesticide registration certificates domestically and internationally by December 31, 2024 [3]

Core Insights - The company reported a revenue of 13.296 billion yuan for 2024, a year-on-year increase of 15.77%, but a decline in net profit attributable to shareholders by 41.63% to 450 million yuan [1] - The agricultural protection industry is nearing a bottom, with product prices continuing to decline but at a slower rate than in 2023 [2] - The company is expanding its global marketing network, with a significant increase in revenue from its To C business model [3] Financial Performance - In Q4 2024, the company achieved a revenue of 3.511 billion yuan, a year-on-year increase of 18.38%, but a quarter-on-quarter decrease of 14.44% [1] - For Q1 2025, the company reported a revenue of 2.686 billion yuan, a slight year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49% [1] - The gross profit margins for herbicides, insecticides, and fungicides decreased in 2024 due to falling product prices, with respective declines of 0.7 percentage points, 6.0 percentage points, and 0.1 percentage points [2] Cost and Expenses - Sales expenses increased by 51.1% to 654 million yuan in 2024, primarily due to higher overseas employee salaries and increased consulting, travel, advertising, and export credit insurance costs [2] - Financial expenses rose significantly due to increased foreign exchange losses, impacting the company's overall performance [2] - In Q1 2025, the gross margin decreased by 0.8 percentage points to 19.3% year-on-year, but improved by approximately 1.1 percentage points compared to Q4 2024 [2] Market Expansion - The company has established six manufacturing bases and over 110 subsidiaries globally, operating in more than 100 countries [3] - By the end of 2024, the company held over 7,700 pesticide registration certificates, with 1,000 new registrations obtained during the year [3] - Revenue from the company's To C business model reached 5.01 billion yuan in 2024, a year-on-year increase of 28.9%, with its revenue share rising by 3.8 percentage points to 37.65% [3] Profit Forecast - Due to the decline in agricultural product prices and increased expenses, the company's 2024 performance was below previous expectations [4] - The profit forecast for 2025-2027 has been adjusted upwards, with expected net profits of 979 million yuan, 1.228 billion yuan, and 1.520 billion yuan respectively [4]