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]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 13.296 billion yuan in 2024, a year-on-year increase of 15.77%, but the net profit attributable to shareholders decreased by 41.63% to 450 million yuan [5] - The agricultural protection industry is at a low point, with exchange rate losses impacting the performance in 2024 and Q1 2025 [6] - The company has seen a significant increase in its To C business revenue, which reached 5.01 billion yuan in 2024, a year-on-year growth of 28.9% [7] Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 35.11 billion yuan, a year-on-year increase of 18.38%, but a quarter-on-quarter decrease of 14.44% [5] - For Q1 2025, the company reported a revenue of 26.86 billion yuan, a slight year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49% [5] Industry Insights - The overall prices of agricultural protection products continue to decline, but the rate of decline in 2024 is less than in 2023, indicating that the industry has likely bottomed out [6] - The company has expanded its global marketing network, with over 110 subsidiaries and operations in more than 100 countries [7] Profitability and Forecast - The report adjusts the profit forecasts for 2025-2027, expecting net profits of 979 million yuan, 1.228 billion yuan, and 1.520 billion yuan respectively [8] - The company’s gross margin is projected to decline to 18.7% in 2025 but is expected to improve in subsequent years [12]