ABACHEM(SZ:300261)2025-04-22 13:25Financial Performance - The company reported a net profit attributable to shareholders of -257.70 million RMB for the year 2024, indicating a significant decline compared to the previous year due to product price fluctuations and intensified market competition [4]. - The company's operating revenue for 2024 was ¥1,202,178,750.59, a decrease of 6.00% compared to ¥1,278,848,252.00 in 2023 [19]. - The net profit attributable to shareholders for 2024 was -¥257,702,742.43, representing a decline of 213.15% from -¥82,293,808.08 in 2023 [19]. - The company's operating profit was CNY -30,815.19 million, down 292.50% year-on-year, and the total profit was CNY -30,890.67 million, a decline of 247.79% [52]. - The net profit attributable to the parent company was CNY -25,770.27 million, representing a decrease of 213.15% compared to the previous year [52]. - The company reported a significant increase in the sales of chemical products, with operating revenue after deductions amounting to ¥1,168,285,996.89 in 2024 [20]. - The company faced challenges in the pesticide industry, with global market growth from $35.575 billion in 2006 to $87.7 billion in 2022, reflecting a compound annual growth rate of approximately 5.80% [29]. - The company reported a total revenue of 2.55 billion in the latest financial period, reflecting a growth of 10.5% compared to the previous year [146]. Dividend and Capital Management - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves for the year [7]. - The company plans to distribute cash dividends of RMB 0.5 per 10 shares, totaling a cash dividend of RMB 481,654.74, which is 0.00% of the total profit distribution [168]. - The company has no plans for cash dividends, stock bonuses, or capital reserve transfers for the 2024 profit distribution [170]. - The company raised a total of RMB 867,109,999.04 through a non-public offering of 105,231,796 shares, with a net amount of RMB 847,613,986.89 after deducting issuance fees [92]. Research and Development - The company has invested significantly in R&D, leading to strong technical advantages and cost efficiencies in the production of its pesticide intermediates [40]. - R&D expenses increased by 2.71% to CNY 12,327.90 million, reflecting the company's commitment to innovation [52]. - The company is focusing on technological innovations in continuous manufacturing and AI-assisted drug design to enhance global competitiveness [32]. - The company is committed to continuous innovation in R&D, focusing on green chemistry processes and continuous flow technology to improve production efficiency and reduce environmental impact [118]. Market and Competitive Landscape - The company's operational performance is under pressure from multiple factors, including market competition and product pricing [4]. - The company noted that despite a competitive market, domestic pesticide production is expected to gain strength with increasing approvals for new pesticide formulations [30]. - The company is actively pursuing certifications such as GMP compliance and Halal certifications to enhance its marketability and compliance [39]. - The company is targeting significant market demand for its new pesticide products, indicating a strong growth potential in the agricultural sector [40]. Environmental and Sustainability Efforts - The company is committed to environmental management and has obtained various environmental certifications, including ISO 14001 [39]. - The company has established comprehensive waste treatment facilities to minimize environmental impact during production activities [179]. - The company has implemented a sustainable procurement system and conducting annual assessments of suppliers to ensure alignment with business needs [120]. - The company is focused on ESG governance, aiming to improve management efficiency and reduce carbon emissions in line with SBTi commitments [121]. Governance and Compliance - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements [133]. - The company maintains an independent financial department with a complete accounting system, allowing for independent financial decision-making and tax compliance [139]. - The company has established a governance structure that complies with relevant laws and regulations, with no unresolved governance issues [130]. - The company has implemented an employee stock ownership plan, with 53 employees holding a total of 6,400,000 shares, representing 0.90% of the company's total equity [170]. Operational Efficiency and Capacity - The designed capacity for pesticide intermediates and raw materials is 7,400 tons, with a utilization rate of 27.58% [36]. - The company is currently constructing additional capacity of 700 tons for pesticide intermediates and raw materials [36]. - The company has established six core production bases and two cooperative production bases, optimizing its supply chain and ensuring stable operations [45]. - The company has completed upgrades on certain production lines at the Taicang base, with a total investment of 37,032,000 RMB, achieving a 100% completion rate [100]. Risk Management - The company has detailed potential risks and countermeasures in the management discussion and analysis section of the report [6]. - The company is managing goodwill impairment risks from acquisitions by strengthening governance of subsidiaries and supporting their business development [124]. - The company is addressing potential risks from new project investments by conducting thorough market research and establishing a dedicated project management team [123]. - The company is monitoring exchange rate fluctuations and utilizing financial tools to mitigate risks associated with currency volatility [125].