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2016 Annual Report

2017-04-25 back

I. Company Information

Stock Short Name

Kingenta

Stock Code

002470

Stock Exchange

Shenzhen Stock Exchange

Chinese Name of Company

金正大生态工程集团股份有限公司

Chinese Abbreviation

金正大

English Name of Company (if any)

Kingenta Ecological Engineering Group Co., Ltd.

English Abbreviation

KINGENTA

Legal Representative of Company

Wan Lianbu

Registered Address

No. 19, Xingda West Street, Linshu County

Post Code of the Registered Address

276700

Office Address

No. 19, Xingda West Street, Linshu County, Shandong Province

Post Code of the Office Address

276700

Website Address

www.kingenta.com

Email Address

jzd@kingenta.com

 

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

□ Yes √ No

 

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%

 

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

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Operating Revenue

4,640,393,244.28

5,924,628,860.26

6,851,726,434.94

1,319,706,691.31

Net Profit attributable to Shareholders of Listed Company

404,577,456.30

373,789,823.65

348,904,600.00

-110,325,052.72

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

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 

 

2016

2015

Year-to-Year Increase/Decrease

Amount

Proportion in Operating Revenue

Amount

Proportion in Operating Revenue

Total Operating Revenue

 18,736,455,230.79

 100%

17,748,028,363.62 

 100%

 5.57%

Industries

Fertilizer Industry

 18,736,455,230.79

  100%

 17,748,028,363.62

 100%

  5.57%

Products

Common Compound Fertilizer

 7,304,658,392.02

 38.99%

 6,997,243,551.55

 39.43%

 4.39%

Controlled Release Compound Fertilizer

 4,970,311,901.68

 26.53%

 4,664,611,925.91

 26.28%

 6.55%

Nitrate-based Compound Fertilizer

 1,182,712,498.38

 6.31%

 1,747,120,062.40

 9.85%

 -32.31%

Water-Soluble Fertilizer

 583,333,860.15

 3.11%

 682,028,843.97

 3.84%

 -14.47%

Raw Materials Chemical Fertilizer, etc

 4,253,003,063.45

 22.70% 

 3,635,237,317.97

 20.48%

 16.99%

Potting Soil

 158,444,885.97

 0.85%

 

 

 

Plant-Protection Fertilizer

 151,431,122.14

 0.81%

 

 

 

Plant-Protection Products

 92,412,164.22

 0.49%

 

 

 

Grass Seeds

 7,273,071.56

 0.04%

 

 

 

Other Businesses

32,874,271.22

 0.18%

 21,786,661.82

 0.12%

  50.89%

Regions

Eastern Region

 9,661,631,160.53

 51.57%

 9,335,561,217.31 

 52.60%

 3.49%

Central Region

 2,488,873,276.51

 13.28%

 2,384,945,955.80

 13.44%

 4.36%

Northern Region

 3,593,074,851.57

 19.18%

 3,583,922,375.20

 20.19%

 0.26%

Other Regions

 2,992,875,942.18

 15.97% 

 2,443,598,815.31

  13.77%

22.48%

 

(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

 

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

Industries

Fertilizer Industry

18,736,455,230.7
9

 

15,776,205,873.2
3

15.80%

5.57% 

5.91%

-0.27%

Products

Common Compound Fertilizer

7,304,658,392.02

5,758,994,278.23

21.16%

4.39%

-1.39%

4.62%

Controlled Release Compound Fertilizer

4,970,311,901.68

4,110,728,003.21

17.29%

6.55% 

11.89%

-3.95%

Nitrate-based Compound Fertilizer

1,182,712,498.38 

989,917,219.47

16.30% 

-32.31%

-27.47%

-5.58%

Water-Soluble Fertilizer

583,333,860.15

482,777,986.49

17.24% 

-14.47%

14.26%

 -20.81%

Raw Materials Chemical Fertilizer, etc

4,253,003,063.45

4,153,224,262.57

 2.35%

16.99%

16.13%

0.73%

Potting Soil

158,444,885.97 

104,892,360.86

33.80%

 

 

 

Plant-Protection Fertilizer

151,431,122.14

93,800,430.14

38.06%

 

 

 

Plant-Protection Products

92,412,164.22

54,289,479.42

41.25%

 

 

 

Seeds

7,273,071.56

4,836,649.57

33.50%

 

 

 

Other Businesses

32,874,271.22

22,745,203.27

30.81%

50.89%

24.92%

14.38%

Regions

Eastern Region

9,661,631,160.53  

8,283,143,263.09

14.27%

3.49%

5.00%

-1.23%

Central Region

2,488,873,276.51 

2,143,830,026.45

13.86%

4.36%

5.93%

-1.28%

Northern Region

3,593,074,851.57 

2,950,987,978.65

17.87%

0.26%

0.22%

0.03%

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%

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

 

 

2016

2015

Variable Proportion

Number of Researchers (People)

680

650

4.62%

Ratio of Researchers

7.89%

7.83%

0.06%

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%

Capitalized Amount of Investment in R & D (RMB)

0

0

 

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.