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2016 Annual Report
I. Company Information
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Stock Short Name |
Kingenta |
Stock Code |
002470 |
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Stock Exchange |
Shenzhen Stock Exchange |
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Chinese Name of Company |
金正大生态工程集团股份有限公司 |
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Chinese Abbreviation |
金正大 |
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English Name of Company (if any) |
Kingenta Ecological Engineering Group Co., Ltd. |
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English Abbreviation |
KINGENTA |
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Legal Representative of Company |
Wan Lianbu |
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Registered Address |
No. 19, Xingda West Street, Linshu County |
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Post Code of the Registered Address |
276700 |
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Office Address |
No. 19, Xingda West Street, Linshu County, Shandong Province |
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Post Code of the Office Address |
276700 |
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Website Address |
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Email Address |
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VI. Main Accounting Data and Financial Index
Whether the Company will conduct retroactive adjustment or retells the previous annual accounting data due changes of accounting policies and correction of accounting errors
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|
2016 |
2015 |
Year-to-Year Increase /Decrease |
2014 |
|
Operating Revenue (RMB) |
18,736,455,230.79 |
17,748,028,363.62 |
5.57% |
13,554,442,174.90 |
|
Net Profit attributable to Shareholders of Listed Company (RMB) |
1,016,946,827.23 |
1,112,047,405.00 |
-8.55% |
866,391,964.26 |
|
Net Profit Net of Non-Recurring Gains and Loss attributable to Shareholders of Listed Company (RMB) |
971,289,692.54 |
1,093,896,494.71 |
-11.21% |
849,617,477.33 |
|
Net Cash Flow Generated from Business Activities (RMB) |
9,456,335.98 |
2,254,532,713.30 |
-99.58% |
183,247,120.60 |
|
Basic Earnings per Share (RMB/Share) |
0.32 |
0.35 |
-8.57% |
0.30 |
|
Diluted Earnings per Share (RMB/Share) |
0.32 |
0.35 |
-8.57% |
0.30 |
|
Weighted Average Return on Equity |
12.03% |
15.08% |
-3.05% |
18.70% |
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|
End of 2016 |
End of 2015 |
Year-to-Year Increase/Decrease |
End of 2014 |
|
Total Assets (RMB) |
14,979,111,775.17 |
11,745,952,203.62 |
27.53% |
11,011,294,385.47 |
|
Net Assets attributable to Shareholders of Listed Company (RMB) |
8,957,801,000.12 |
8,033,736,759.04 |
11.50% |
6,888,209,747.00 |
VIII. Quarter Main Financial Indexes
Unit: RMB
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|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
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Operating Revenue |
4,640,393,244.28 |
5,924,628,860.26 |
6,851,726,434.94 |
1,319,706,691.31 |
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Net Profit attributable to Shareholders of Listed Company |
404,577,456.30 |
373,789,823.65 |
348,904,600.00 |
-110,325,052.72 |
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Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) |
403,671,926.09 |
356,143,813.29 |
342,859,246.71 |
-131,385,293.55 |
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Net Cash Flow Generated from Operating Activities |
-92,099,755.23 |
662,584,835.68 |
1,273,729,826.37 |
-1,834,758,570.84 |
Whether the financial indexes above or their total has significant differences from the relevant financial indexes in the quarterly reports and semi-annual reports that have been disclosed by the Company
□ Yes √ No
(1) Operating Revenue composition
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2016 |
2015 |
Year-to-Year Increase/Decrease |
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Amount |
Proportion in Operating Revenue |
Amount |
Proportion in Operating Revenue |
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Total Operating Revenue |
18,736,455,230.79 |
100% |
17,748,028,363.62 |
100% |
5.57% |
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Industries |
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Fertilizer Industry |
18,736,455,230.79 |
100% |
17,748,028,363.62 |
100% |
5.57% |
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Products |
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Common Compound Fertilizer |
7,304,658,392.02 |
38.99% |
6,997,243,551.55 |
39.43% |
4.39% |
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Controlled Release Compound Fertilizer |
4,970,311,901.68 |
26.53% |
4,664,611,925.91 |
26.28% |
6.55% |
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Nitrate-based Compound Fertilizer |
1,182,712,498.38 |
6.31% |
1,747,120,062.40 |
9.85% |
-32.31% |
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Water-Soluble Fertilizer |
583,333,860.15 |
3.11% |
682,028,843.97 |
3.84% |
-14.47% |
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Raw Materials Chemical Fertilizer, etc |
4,253,003,063.45 |
22.70% |
3,635,237,317.97 |
20.48% |
16.99% |
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Potting Soil |
158,444,885.97 |
0.85% |
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Plant-Protection Fertilizer |
151,431,122.14 |
0.81% |
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Plant-Protection Products |
92,412,164.22 |
0.49% |
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Grass Seeds |
7,273,071.56 |
0.04% |
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Other Businesses |
32,874,271.22 |
0.18% |
21,786,661.82 |
0.12% |
50.89% |
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Regions |
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Eastern Region |
9,661,631,160.53 |
51.57% |
9,335,561,217.31 |
52.60% |
3.49% |
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Central Region |
2,488,873,276.51 |
13.28% |
2,384,945,955.80 |
13.44% |
4.36% |
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Northern Region |
3,593,074,851.57 |
19.18% |
3,583,922,375.20 |
20.19% |
0.26% |
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Other Regions |
2,992,875,942.18 |
15.97% |
2,443,598,815.31 |
13.77% |
22.48% |
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(2) About the Industries, Products or Regions Accounting for over 10% of the Operating Revenue or the Operating Profit of the Company
√ Applicable □ Not Applicable
Whether the Company needs to comply with the disclosed requirements of special industry
Unit: RMB
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Operating Revenue |
Operating Cost |
Gross Profit Rate |
Operating Revenue Year-to-Year Growth/Decrease |
Operating Cost Year-to-Year Growth/Decrease |
Gross Profit Rate Year-to-Year Growth/Decrease |
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Industries |
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Fertilizer Industry |
18,736,455,230.7 |
15,776,205,873.2 |
15.80% |
5.57% |
5.91% |
-0.27% |
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Products |
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Common Compound Fertilizer |
7,304,658,392.02 |
5,758,994,278.23 |
21.16% |
4.39% |
-1.39% |
4.62% |
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Controlled Release Compound Fertilizer |
4,970,311,901.68 |
4,110,728,003.21 |
17.29% |
6.55% |
11.89% |
-3.95% |
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Nitrate-based Compound Fertilizer |
1,182,712,498.38 |
989,917,219.47 |
16.30% |
-32.31% |
-27.47% |
-5.58% |
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Water-Soluble Fertilizer |
583,333,860.15 |
482,777,986.49 |
17.24% |
-14.47% |
14.26% |
-20.81% |
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Raw Materials Chemical Fertilizer, etc |
4,253,003,063.45 |
4,153,224,262.57 |
2.35% |
16.99% |
16.13% |
0.73% |
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Potting Soil |
158,444,885.97 |
104,892,360.86 |
33.80%
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|
|
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Plant-Protection Fertilizer |
151,431,122.14 |
93,800,430.14 |
38.06% |
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Plant-Protection Products |
92,412,164.22 |
54,289,479.42 |
41.25% |
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Seeds |
7,273,071.56 |
4,836,649.57 |
33.50% |
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Other Businesses |
32,874,271.22 |
22,745,203.27 |
30.81% |
50.89% |
24.92% |
14.38% |
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Regions |
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Eastern Region |
9,661,631,160.53 |
8,283,143,263.09 |
14.27% |
3.49% |
5.00% |
-1.23% |
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Central Region |
2,488,873,276.51 |
2,143,830,026.45 |
13.86% |
4.36% |
5.93% |
-1.28% |
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Northern Region |
3,593,074,851.57 |
2,950,987,978.65 |
17.87% |
0.26% |
0.22% |
0.03% |
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Other Regions |
2,992,875,942.18 |
2,398,244,605.04 |
19.87% |
22.48% |
17.62% |
3.31% |
Where the statistical data of the main business of the company is adjusted in the reported period, the company adjusted its main business data according to the end of the reporting period in the year 1.
□ Applicable √ Not Applicable
(3) Whether the actual sales revenue of the Company is higher than the services revenue
√ Yes □ No
|
Industry |
Items |
Unit |
2016 |
2015 |
Year-to-Year Increase/Decrease |
|
Fertilizer Industry |
Sales Volume |
10,000 ton |
617.75 |
537.34 |
14.96% |
|
Production Capacity |
10,000 ton |
614.87 |
543.88 |
13.05% |
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|
Stock |
10,000 ton |
53.52 |
44.3 |
20.81% |
Reasons for the year-to-year relevant date change over 30%
□ Applicable √ Not Applicable
3. Expenditures
|
|
2016 |
2015 |
Year-to-Year Increase/Decrease |
Significant Changes |
|
Selling Expenses |
1,017,797,412.64 |
833,364,925.16 |
22.13% |
The selling expenses has increased by 22.13%, which mainly owed to selling expenses generated by Compo AcquiCo S.à.r.l. and its 24 home gardening business companies acquired during this period. |
|
Management Expense |
926,595,435.33 |
724,641,315.87 |
27.87% |
The management expenses increased by 27.87% in the current phase, - mainly caused by the increase of the employees salary and the Research and development expenses carried by the Company. |
|
Financial Expense |
-40,023,789.08 |
-17,313,320.22 |
131.17% |
The financial costs decreased by 131.17% compared with last period, mainly because of the increase of the exchange rate earnings by the e Company in the current period. |
4. Input to Research and Development
√ Applicable □ Not Applicable
Adhering to the development strategy of “Technique Orientation”, Kingenta has established a perfect independent research and development system. In 2016, Kingenta kept on technical innovation, has successfully improved the technology from leading in China to leading in the world. During the reported period, Kingenta mainly spent in Research and demonstrations of: compound fertilizers, slow/controlled-release fertilizers, water-soluble fertilizer and other new types of fertilizers, as well as the comprehensive utilization development project of phosphorus resources. Finally, During 2016, Kingenta achieved new progress in the research and development of new type of fertilizers including water-soluble fertilizer, liquid fertilizer, foliar fertilizer, bacterial fertilizer and silicon calcium potassium magnesium fertilizer, and also made a great breakthrough in terms of high-efficiency comprehensive utilization of resources -. In addition, Kingenta established 40 crop research institutes and soil research institutes and plant protection institutes, successfully developed 26 crop nutritional management schemes and completed 28 national and provincial scientific research programsincluding: green manufacturing program and fertilizer reduction program.
R&D and Investment
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|
2016 |
2015 |
Variable Proportion |
|
Number of Researchers (People) |
680 |
650 |
4.62% |
|
Ratio of Researchers |
7.89% |
7.83% |
0.06% |
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Investment Amount in R & D (RMB) |
459,257,696.17 |
476,437,624.78 |
-3.61% |
|
Ratio of Investment in R & D to Operating Revenue |
2.45% |
2.68% |
-0.23% |
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Capitalized Amount of Investment in R & D (RMB) |
0 |
0 |
|
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Ratio of Capitalized Investment in R & D to Investment in R & D |
0 |
0 |
|
Reasons for significant changes in the ratio of total investment in R & D in the operating revenue of this year compared to last year.
□ Applicable √ Not Applicable
Reasonsfor substantial changes in thecapitalization rate of in R & D investment and its rational explanation
□ Applicable √ Not Applicable
5. Cash Flow
Unit: RMB
|
Items |
2016 |
2015 |
Year-to-Year Increase/Decrease |
|
Operations Cash Inflow subtotal - |
18,956,724,081.89 |
17,519,196,198.21 |
8.21% |
|
Operation Cash Outflow subtotal |
18,947,267,745.91 |
15,264,663,484.91 |
24.13% |
|
Operations Net Cash Flow |
9,456,335.98 |
2,254,532,713.30 |
-99.58% |
|
-Cash Inflow Subtotal |
172,545,407.55 |
80,797,068.21 |
113.55% |
|
Investment Activities Cash Outflow Subtotal |
1,460,891,022.18 |
1,079,246,901.73 |
35.36% |
|
- Investment Activities Net Cash Flow |
-1,288,345,614.63 |
-998,449,833.52 |
29.03% |
|
Cash Inflow Financing Activities cash inflow subtotal |
3,431,758,148.11 |
512,200,000.00 |
570.00% |
|
Financing Activities cash outflow subtotal |
2,389,242,517.43 |
1,608,592,329.38 |
48.53% |
|
Financing Activities Net Cash Flow |
1,042,515,630.68 |
-1,096,392,329.38 |
-195.09% |
|
Cash and Cash Equivalents Net increase |
-235,401,465.74 |
160,658,883.63 |
-246.52% |
Explanation of the main factors that has caused significant changes on the relevant data.
Net cash flow generated from operating activities decreased by RMB 2,245,076,377.32 compared with the same period of last year, mainly for the reasons oftheprepayments of raw materials and the increase of raw materials stock which resulted in the increase of capital outflow; the net cash outflow of investment activities was higher than the same period of the previous year with an increase of RMB 289,895,781.11 -, mainly for the reason that Kingenta acquired the 100% stock equities of Compo AcquiCo S.à.r.l with its 24 home gardening business companies; and the -financing activities net cash inflow increased by RMB 2,138,907,960.06 from the same period of last year, mainly for the reason that the Company absorved the cash received - from the investment and the cash received from the borrowings.
Reasons for significants differences between the net cash flow generated by Company operating activities during the reporting period and the Company net profit - for the year. √ Applicable □ Not Applicable
The significant differences between the Company business activities net cash flow - during the report period and the Company net profit - in this year has been caused by the increase of capital outflow resulted from the increase of advance payments and stock of raw materials.
V. Company Staff
1. Number of Staff, Major Differences and Education Background
|
Number of employees in Parent Company (People) |
2,610 |
|
Number of employees in Major Subsidiaries (People) |
5,905 |
|
Total Number employees f (People) |
8,623 |
|
Total Number of Staff Receiving Salary in Current Phase (People) |
8,623 |
|
Number of Retired Staff paid by Parent Company and Major Subsidiaries (People) |
0 |
|
Major Differences |
|
|
Category |
Number (People) |
|
Production Personnel |
4,922 |
|
Sales Personnel |
1,736 |
|
Technical Personnel |
876 |
|
Financial Staff |
141 |
|
Administrative Staff |
948 |
|
Total |
8,623 |
|
Education Background |
|
|
Category |
Number (People) |
|
Doctor |
15 |
|
Master |
263 |
|
Bachelor |
1,359 |
|
Junior College |
2,152 |
|
Senior High School and Below |
4,834 |
|
Total |
8,623 |
2. Salary Policy
Salary distribution is based on the principle of strategic orientation and performance, focusing on improving the productivity ratio and also considering efficiency and fairness. Staff’s salary is composed of fixed salary and performance pay. According to the job nature, salary is distributed in different ways. The performance payment is determined by the piecework r production personnel; while for salesman, it is determined by sales performance and other indicators; for other support personnel, it is determined by detailed duties and job performance.
3. Training Plan
In order to improve the overall quality and work efficiency of employees, the HR Department of the Company will formulate the training plan for next year at the end of each year, which covers training contents, time and participants. The training contents mainly include staff quality, skills improvement, production safety management, cost management, field management, education training, etc.
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