Core Viewpoint - Lier Chemical (002258) has disclosed its 2025 management compensation and assessment plan, with significant changes in the conditions for the annual super-target reward compared to previous plans [1][2]. Summary by Sections Compensation Structure - The annual compensation for the management team includes basic salary, performance salary, and annual super-target reward [1]. - The basic and performance salaries remain unchanged from previous plans, while the super-target reward conditions have been adjusted [1]. Super-Target Reward Conditions - For 2025, the conditions for the super-target reward are set at a minimum revenue of 8.5 billion yuan and a net profit of at least 350 million yuan [1]. - If the net profit reaches 350 million yuan, the reward is 1 million yuan; if it reaches 400 million yuan, the reward increases to 1.5 million yuan; and for 500 million yuan, the reward is 3 million yuan [1]. - The total of the super-target reward and performance salary cannot exceed 2.5 times the basic salary for the year, with excess amounts available for future adjustments [1]. Historical Context - The previous plan for 2024 set the revenue threshold at 8.16 billion yuan and net profit at 300 million yuan, with different reward structures [2]. - In 2024, Lier Chemical reported revenues of 7.311 billion yuan and a net profit of 215 million yuan, indicating that the management team likely did not receive the super-target reward [2]. - Since 2021, Lier Chemical has been disclosing its management compensation plans, with increasing thresholds for super-target rewards over the years [3]. Performance Trends - Lier Chemical is a major producer of glyphosate and has seen its performance decline due to increased industry competition and falling product prices since late 2022 [3]. - The company's net profits were 604 million yuan in 2023 and 215 million yuan in 2024, reflecting year-on-year declines of 66.68% and 64.34%, respectively [3]. - However, in the first quarter of the current year, the company experienced a noticeable recovery in performance due to increases in sales volume and prices of certain products [4].

Core Viewpoint - Lier Chemical's 2024 annual performance shows a significant decline in revenue and profit, indicating ongoing challenges in the pesticide industry due to intense competition and market conditions [1][2]. Financial Performance - Revenue for 2024 was 7.311 billion yuan, a year-on-year decrease of 6.87% - Profit was 215 million yuan, down 64.34% year-on-year, marking the lowest profit level since 2017 - Gross margin was 16.06%, compared to 23.34% in the previous year [1]. Market Conditions - The pesticide industry has not shown significant recovery in 2024, with continued intense competition and most pesticide product prices remaining at low levels - Market inventory is gradually returning to normal, but overall supply exceeds demand, impacting industry development [1]. - The price for glyphosate raw materials is reported at 47,000 yuan/ton, while refined glyphosate raw materials are priced at 72,000 yuan/ton [1]. International Sales - International sales revenue for 2024 was 3.437 billion yuan, accounting for 47.01% of total revenue - This represents a decline from 6.158 billion yuan (60.76% of total revenue) in 2022 and 3.958 billion yuan (50.42% of total revenue) in 2023 [2]. Shareholder Information - The company plans to implement a profit distribution plan of "10 for 2 yuan (including tax)" for a total dividend of 160 million yuan - Shanghai Yuanhong Investment Management Co., Ltd. has become the seventh largest shareholder with 5.3327 million shares, valued at approximately 49.11 million yuan [3]. Future Outlook - The company anticipates significant adjustments in the supply structure of the industry, with opportunities arising from supply contraction and the introduction of new products - The global pesticide market is expected to show steady growth due to increasing food demand driven by population growth and the rapid development of genetically modified crops [3].