I. Discussion and Analysis of Operating Situation
During the reporting period, affected by the "3.21" special major safety accident in Rongshui, the domestic chemical industry's safety and environmental protection remediation efforts have been increased to an unprecedented extent. The cessation of heat supply by the only centralized heat supply company in the park where the company is located and the subsequent implementation of the safety and environmental protection improvement work of the chemical industry by the relevant provincial and municipal government departments had a greater impact on the stable production of the company throughout the year. Under the correct leadership of the Company's management, the entire Company overcame the difficulties and centered on the core task of "active rectification and resumption of production in compliance with the standards", externally adjusted the sales strategy and other positive measures to maintain the stable operation of the sales market; internally strengthened the Company's internal management, further implemented the modern enterprise management system and improved the level of corporate governance. As of October 25, 2019, the heating company resumed heat supply, and the company's original drug synthesis workshop reached the production resumption standard through safety and environmental protection rectification and improvement, and obtained the government's approval for production resumption, taking the lead in resuming production in Yancheng City.
During the reporting period, due to the company's original drug synthesis workshop shut down for half a year, the start rate is seriously insufficient, making the sales revenue decline, shutdown costs increased, while the safety and environmental protection rectification costs year-on-year enhancement, the company realized sales revenue of 866 million yuan in FY2019, a year-on-year decrease of 34.24%; net profit of 0.35 billion yuan, a year-on-year decrease of 74.96%.
A review of the company's major operating activities during the reporting period is as follows:
1) Increase safety and environmental protection investment, and promote the rectification and enhancement of the resumption of production
The company has always attached great importance to safety and environmental protection, and has always been adhering to the concept that safety and environmental protection are the lifeblood of an enterprise. After the "3.21" explosion accident, the national safety and environmental protection standards have been further improved, and the company has increased its capital investment, innovated its technology, and upgraded and remodeled. During the shutdown period, the company took the initiative to invite domestic authoritative experts on the company's safety and environmental protection many times to carry out a dragnet inspection, the development of efficient remediation and upgrading programs, high-quality, high-standard and rapid rectification, take the lead in the resumption of production, to ensure that the production of stable operation.
Safety production: the company's automation upgrading of existing equipment, reducing the number of on-site operators, to further improve the level of automation control and intrinsic safety; through the warehousing of hazardous chemicals inspection, rectification and further consolidation of the foundation of safety production. The company has also repeatedly organized safety training, safety drills and other activities to enhance the safety awareness of employees.
Environmental protection governance: the company closely follows the requirements of the relevant provincial government documents, and implements environmental protection remediation against the documents article by article, and the investment in the three waste management facilities in 2019 is the most in the year since the establishment of Fengshan Group. The company has further realized cleaner and more efficient and low-cost production by adding new closed automated solid-liquid separation equipment, new double-effect and MVR wastewater evaporation devices with high automation and low energy consumption, new high-standard hazardous waste warehouse and other "three-waste" disposal facilities, as well as upgrading and reconstructing the existing solid-waste incinerator, tailpipes, hazardous waste warehouse, and biochemical system, High-efficiency, low-cost production, but also successfully passed the inspection and re-inspection of environmental protection bureaus at all levels.
2) Orderly promotion of research and development projects, the combination of production and research is effective
In 2019, the R&D center completed the small pilot study of chlorpyrifos and quinquefoil salt reduction technology, and had the conditions for trial production; it also initially completed the process development and research of acetonitrile and azoxystrobin products, which improved the product yields and quality, overcame key intermediate synthesis problems and optimized the process; developed the optimal wastewater and waste salt recycling system, and also passed the inspection and review of environmental protection bureaus at all levels. We have developed the optimal wastewater and waste salt recycling treatment plan to solve the constraints of high salt wastewater on production capacity. During the reporting period, the R&D center of the company wrote and submitted 3 new patent applications.
The company closely focuses on leading technology, advanced equipment and professional management to carry out production work, puts the R&D projects into production, pays attention to cost reduction and formulates corresponding management and assessment measures, realizes the optimization of process, upgrades the old products, launches new products, optimizes the product structure, combines the new packages, and further achieves the purpose of cost reduction, efficiency and energy saving.
3) Adjust sales and purchasing strategy, consolidate strategic partnership
In 2019, subject to the impact of the production shutdown of the company's original drug synthesis workshop, the company's main product output is obviously insufficient. In order to cope with the market changes brought by the production stoppage, the company timely adjusted its sales strategy, strictly controlled the procurement cost, formulated the inventory sales program, and focused on the marketing and promotion of preparations to ensure that the company's operating losses during the production stoppage were minimized. During the shutdown period, on one hand, the company strengthened the construction of brand effect, maintained the stability of the main customer base, and actively developed new customers to expand the foreign market. On the other hand, strengthen the cooperation with strategic suppliers, consolidate the strategic relationship, in the case of tight supply of raw materials, give priority to provide us with sources of goods, to achieve sustainable procurement to ensure stable production.
4) Improve the internal control system, do a good job of risk control
In 2019, the company specially invited the internal control consulting company to guide and improve the construction of the internal control system of our company, set up a leading group and a working group for the construction of the internal control, prepared and issued the Internal Control Manual, further improved the job responsibilities of the directors, supervisors, and all employees, and comprehensively refined the system of funds management, fixed assets management and The company has strengthened the functions and operation procedures of the internal work and promoted the improvement of the overall management level of the company. At the same time, the Company strengthened the performance of audit supervision and service functions, and carried out special audits around the construction management of fund-raising projects, salary budget and implementation, internal control management and other aspects. The company continues to organize all functional departments and molecular companies to carry out self-examination and self-assessment of the implementation of the internal control system, in order to understand and grasp the implementation of the system and the problems encountered in the operation of the system, and to analyze and feedback in a timely manner, so as to ensure the effective implementation of the system.
5) Implementation of the Share Incentive Plan, ****Enjoying the fruits of development
In order to better stabilize and motivate the management team, the Company convened the First Extraordinary Shareholders' General Meeting of 2019 on October 9, 2019, and considered and passed the "Motion Regarding the Company<2019 Restricted Stock Incentive Plan (Draft)> and its Summary", "Motion Regarding the Company<2019 Restricted Stock Incentive Plan (Draft)> and its Summary", and "Motion Regarding the Company< lt;2019 Restricted Stock Incentive Plan Implementation Assessment Management Measures> and other related motions, and completed the stock issuance and the registration of the first grant on December 16, 2019, the equity incentive to fully mobilize the enthusiasm of the middle and senior management and the core backbone of the staff, to enhance their sense of ownership, and to better stabilize and motivate the management team.
Second, the main operating conditions during the reporting period
During the reporting period, the Company realized an operating income of 865,755,100 Yuan, a decrease of 34.24% compared with that of 1,316,552,100 Yuan in the same period of last year, and realized an operating profit of 43,836,100 Yuan, a decrease of 73.32% compared with that of 164,326,300 Yuan in the same period of last year. shareholders of RMB34,758,900, down 74.96% from RMB138,785,900 in the same period last year, realizing net profit attributable to shareholders of listed companies after extraordinary gains and losses of RMB22,669,900, down 83.22% from RMB135,078,300 in the same period last year, realizing basic EPS of RMB0.43/share, and weighted average return on net assets of 3.15%.
During the reporting period, the company's net cash flow from operating activities amounted to RMB122,415,000, a decrease of 19.95% compared with RMB152,907,000 in the same period of last year, net cash flow from investing activities amounted to RMB-82,916,600, a change of 73.84% compared with RMB-316,920,000 in the same period of last year, and net cash flow from financing amounted to RMB 3,992.8 thousand yuan, a decrease of 98.49% from 264,840.9 thousand yuan in the same period of last year.
Third, the company's future development of the discussion and analysis
(a) industry patterns and trends
Pesticide industry pattern analysis:
1, pesticide products pattern of differentiation. The bottoming out of grain prices and extreme weather in major grain-growing regions have had an impact on pesticide demand. At the same time, due to the resumption of production by some enterprises and the transfer of production capacity to the central and western regions, the new supply of pesticides has gradually increased. Pesticide prices have been under overall pressure since the beginning of 2019, and the original drug price index slipped to a low point in the past two years at the end of 2019, but the supply pattern of the pesticide industry has shown significant improvement compared to 2017, environmental protection and other factors such as cost improvement support, the pivot of pesticide prices compared to the pre-2017 period has been systematically shifted upward.
2, the head of the pesticide enterprise stronger. Pesticide industry listed companies capital expenditure to the head of the company to concentrate, according to 22 samples of listed pesticide companies, the market value of the top 10% of the enterprises in the construction in progress accounted for the proportion of the total from 2014Q3 26% to 2019Q3 40%. The gap that exists between pesticide companies in terms of cost control, product layout, technological strength, and integration layout has also expanded significantly.
(Note: The above data is from Industrial Securities' "<2020 pesticide management work highlights> will accelerate the optimization of the industry pattern; pesticide product pattern differentiation, the head of the enterprise stronger and stronger" report)
Pesticide industry trend analysis:
1, pesticide market size overall slow growth. In the face of the world's population growth brought about by the dilemma of food demand and shrinking arable land area, chemical pesticides will continue to be the main technical solutions for the crop protection market, the overall slow growth of the chemical pesticide market.
2, biopesticides demand growth. Zero growth in the use of pesticides and fertilizers has become the new normal, innovative solutions for biopesticides will become the crop protection market market position is growing, Bayer, FMC and other global giants are laying out and strengthen the R & D investment in biopesticides, RNA pesticides are following the chemical pesticides, genetically modified crops after the protection of agricultural diseases and pests on another new scientific and technological revolution.
3, the scientific use of pesticides supervision and scientific guidance to strengthen. The use of pesticides to reduce and increase efficiency will become a long-term regulatory policy, the scientific use of pesticides policy regulation and policy guidance, will be more stringent, continue to promote. The next 5-10 years, in the registration, production, sales, quality, packaging and other regulatory basis, PCA (Agricultural Plant Protection Technology Manager) system in the future or will rise to the national mandatory implementation of the system and industry qualifications.
4, the global agrochemical market and China's agrochemical market concentration will be further improved. Global agrochemicals five giants (Syngenta, Bayer, BASF, Cordyceps, Fumitsu) to form a relatively stable competitive pattern, but Latin America, Asia (especially China) market concentration will be further enhanced, mergers and acquisitions to integrate an important means.
(B) the company's development strategy
The company will "create an international brand, the tree century Fengshan" mission vision, adhere to the "Fengshan pesticides to protect the agricultural harvest," the development of the concept, and continue to optimize the industrial layout and product structure. We will continue to optimize our industrial layout and product structure, give full play to our advantages in safety and environmental protection, branding, industrial foundation, customer resources and capital operation platform, and accelerate our development in accordance with the principles of "safety and environmental protection, value growth, efficiency enhancement and overseas development". In terms of developing specific strategic initiatives:
First, consolidate safety and environmental protection to ensure production and operation. The company will continue to consolidate and improve safety management, fully implement the production safety responsibility system, continue to strengthen staff safety education and training, and enhance the level of intrinsic safety; implement green development, in accordance with the requirements of "quality, standard, speed", in order to reduce, recycling, harmless as the direction of the company's eco-civilization construction with high quality.
Secondly, we will promote value growth and focus on high-end development. The company will strengthen the ability of capital operation, mergers and acquisitions of high-quality target enterprises, the layout of the new chemical materials field, to achieve breakthroughs in emerging businesses, and enhance the competitive strength of the product, technology, capacity expansion; in the stronger and better to expand the existing core products at the same time to strengthen the research and development of new products, the layout of safe pesticide brand, and accelerate the transition to high-performance, high value-added, high-growth products, improve the innovation system, and promote synergistic innovation, to achieve the brand value to hold the enhancement, and to promote the brand value to enhance the brand value. Innovation, to realize the brand value to enhance the sustainable growth of enterprise value.
The third is to promote efficiency improvement, the implementation of lean operation. The company will focus on promoting lean operation, improve operational efficiency, continue to optimize product unit consumption, energy consumption level, optimize the level of production and operation of the plant, to achieve the operation and cost management to reach the level of the world's advanced chemical enterprises; to promote excellence in purchasing, excellence in sales, optimize the supply chain management, to achieve the "product provider" to the "market organizer", to achieve the "market organizer". We will promote excellent procurement and sales, optimize supply chain management, transform from a "product provider" to a "market organizer", improve the market-oriented marketing and sales model, and pursue a more qualitative and more effective development.
Fifth, the company will further promote reform, improve the management system, in accordance with the principles of "streamlining, flat, efficient" and "simple process, simplified management, efficient process", improve the organizational structure system, deepen the "business units + functional departments", "business units + functional departments", "business units + functional departments", "business units + functional departments" and "business units + functional departments". In accordance with the principles of "streamlining, flattening and efficiency" and "simple process, simplified management and efficient process", we will improve the organizational structure system, deepen the matrix management mode of "business unit + functional departments", accelerate the innovation of mechanism and explore the construction of a first-class talent team, build efficient organizational capacity, and realize the rejuvenation and specialization of talent team.
(C) business plan
1, full protection of safety and environmental protection, solid foundation for industrial development
Following the "3.21" major explosions in Ringshui, safety and environmental protection as the basis for the development of the company, we must learn from the lessons, improve safety and environmental protection alertness, and to do a solid and detailed work in every link to ensure that the company's industrial health and development of the company. In 2020, the company will be pragmatic and practical, fall into action; full participation, prevention; sound system, legal compliance.
2, focus on human resources construction, optimize the talent echelon
2020, the company will boldly carry out human resources innovation, through the development of talent engineering plan, optimize the age and professional structure of the talent echelon, and gradually realize the middle and senior management personnel rejuvenation, specialization. We will establish a perfect salary system, innovate incentive mechanism, and actively introduce high-end professionals with favorable treatment, so as to reserve sufficient talent resources for the sustainable development of the enterprise. Comprehensively promote the performance appraisal management system, staff training as a mandatory indicator of induction and post level assessment and promotion, to enhance the overall quality of staff.
3, take multi-dimensional promotion means, strengthen the enterprise brand construction
2020, the company will make every effort to build the Fengshan brand, increase the publicity of new products, and really achieve targeted and accurate publicity. Increase the efforts of downland promotion test, improve the recognition rate of grass-roots rural users, and realize the transformation from layman to insider, from traditional customer service to field technical service, and from amateur to professional. At the same time, the company will continue to innovate in communication channels and methods, from the product brand publicity to the group brand, public welfare brand, social brand and other multi-dimensional extension, and gradually through the brand construction of a strong cultural kernel, enhance the corporate image and brand value.
4, strengthen innovation management, improve the company's profitability
In order to complete the 2020 business objectives, the company will focus on technological innovation and management innovation to achieve cost reduction and efficiency. We will focus on strategic cooperation and smooth information flow of suppliers to ensure the supply and reasonable price of raw materials and stabilize production and operation. We will conduct in-depth research on new changes and trends in product development and sales models at home and abroad, strengthen cooperation with the world's top ten agrochemical companies, enhance the organizational construction of sales and talent training, and gradually build a marketing team with professionalism and industry leadership. Through the excellence of all business management, to ensure the smooth realization of the 2020 profit target.
5, accelerate the implementation of fund-raising projects put into production, add momentum for subsequent development
2020, the company will be high-quality, high-speed full promotion of fund-raising project construction, and strive for early production and standardization, to promote the company's technological research and development, production equipment, production capacity, product mix, marketing and other aspects of competitiveness enhancement for the company's subsequent development of a new impetus.
6, the full implementation of the combination of production and financing, take a key step in capital operation
2020, under the guidance of the company's development strategy, to ensure that the company's endogenous growth continues to be based on high-speed, the company will make full use of the listed companies of the various resources, to seize the development trend of the industry, and closely follow the agrochemical industry, the "14th Five-Year" Development Plan, the policy dividends, to carry out the development of the company's business. Development plan of the policy dividends, capital operation, the full implementation of mergers and acquisitions, reorganization and other actions, supporting the refinancing, to help the company grow rapidly.
(D) may face the risk
1, the risk of regulatory policy changes
Chemical industry, safety and environmental management is very difficult and has a long way to go. Following the Yancheng City Ringshui Chemical Plant explosion on March 21, 2019, the relevant governments have successively issued documents such as "Program" (Su Ban [2019] No. 96), "Detailed Requirements" (Su Chemistry Governance Office [2019] No. 3), "Basic Requirements" (Su Emergency Response [2019] No. 53), and "Implementation Plan" (Yanban [2019] No. 71), etc., to strengthen the chemical industry's safety environmental protection supervision and verification efforts, and strictly deal with unqualified chemical enterprises and parks. In the face of increasingly stringent safety and environmental protection regulatory policies, if the Company fails to meet the corresponding requirements in a timely manner when the safety and environmental protection policies change, it may be subject to production restriction, suspension of production or face the risk of being subject to safety and environmental protection penalties. At the same time, if the relevant safety and environmental protection standards increase, will further increase the company's investment in safety and environmental protection, increase the company's operating costs, thus affecting the company's operating results.
The company belongs to the key sewage disposal units announced by the environmental protection department, and it is also an enterprise with greater influence on safety management. Since its inception, the company has been adhering to the "safety, environmental protection is the lifeline of the enterprise," the basic production management principles, has never occurred in the environmental protection, safety and major accidents. In view of the above risks, on the one hand, the company will continue to strictly carry out the annual shutdown, maintenance and upgrading work according to the regulatory policies successively issued by the government, carry out the rectification and maintenance for the self-examined safety hazards, environmental protection and other related problems, and actively cooperate with the government's safety and environmental protection verification work, so as to ensure that the company's production and operation will be stable and orderly for a long period of time; on the other hand, the company will consider further reducing the safety and environmental protection risk by means of expanding the new business, new bases and new products, etc. in the later stage. On the other hand, the company will consider expanding new businesses, new bases, new products and other means to further reduce the risk of changes in safety and environmental protection regulatory policies.
2, the risk of loss of customers
The company in the production, mainly to take the sale of production mode. Once the company's production due to safety and environmental protection, the lack of supply of raw materials and other reasons into production stoppage, production limitations, resulting in the company can not be in accordance with the time of the order as promised delivery, the company's credibility will be affected, coupled with the current international pesticide industry giants have to enter the domestic market, the industry competition is increasingly intensified if the company's prolonged suspension of production, production limitations, but also face the risk of loss of old customers. During the reporting period, the Company received a notice from the Park Centralized Heating Company (hereinafter referred to as the "Heating Company") to carry out safety maintenance on the whole line of its steam pipeline network, and the Company's synthesis workshop of the original drug has temporarily suspended production since April 18, 2019, and resumed production on October 25, 2019, with a suspension period of more than 6 months, which may not be able to meet the supply demand for a long period of time. meet the supply demand for a long time, the company may face the risk of customer loss.
In response to the above risks, the company will accelerate the development of new products, optimize the product structure, improve product quality, and further enhance the competitiveness of the company's products in the market, as well as further improve the company's sales system, continue to build a good customer service platform, expand brand awareness, and establish a good market image of the company.
3, exchange rate risk
Part of the company's original drug products are exported to foreign countries, by the international economy, financial changes in the impact of exchange rate fluctuations on the company's product exports will have a certain impact.
In response to the above risks, the company will strengthen the study of international trade and exchange rate policies, and reasonably formulate the terms of trade and settlement, such as the choice of favorable currencies, the contract entered into a currency preservation clause and appropriate adjustment of product prices to prevent exchange rate risks. The company will take the initiative to use banks or financial institutions to provide financial tools to avoid and reduce losses caused by exchange rate fluctuations, to improve the company's own ability to control exchange rate risks.
4, product substitution risk
Since its establishment, the company has formed the core business system of 4 major raw materials and their corresponding formulation products, including fluroxypyr, fumioxazin sulfuron, quinquefolam and chlorpyrifos, and the company's main pesticide products have also matured. In the face of the continuous evolution of pests and diseases and the gradual increase of resistance to pesticides, resulting in increasing pesticide use, environmental burden, drug residues exceeding the standard and other issues, stimulating the demand for more abundant and efficient formulation compounding, thus promoting the structural changes in the demand for pesticide market. Once the emergence of new more efficient pesticide products, the original pesticide products will have a substitution effect, affecting the demand for the use of the original pesticide products. If the company's production and operation of pesticide products can not keep up with market demand, the product may be replaced by the risk of market share and brand awareness will decline, the company's operating results have a certain impact.
5, the loss of talent and the risk of rising labor costs
Human cost is one of the important components of the company's operating costs. With the rapid development of the national economy, the rise in the cost of living, the average social wage increases year by year, with a high level of professionalism and rich business experience in the high-end talent wages and salaries are on the rise, the company is facing the risk of a decline in the level of profits due to rising labor costs. With the continuous development of the company, the demand for talents is becoming more and more urgent.
In response to the above risks, the Company has implemented the 2019 Restricted Stock Incentive Plan, which effectively stabilizes the middle and senior management and core technical backbone, and fully mobilizes their enthusiasm to promote the realization of the Company's strategic objectives. In addition, the company will continue to improve the salary assessment system, innovative employee incentive mechanism, formulate talent engineering plan, and vigorously introduce high-end professionals while stabilizing the existing management team and core employees to ensure the sustainable development of the company.
6, the fund-raising project did not meet the expected risk
The company raised funds to invest in the annual output of 1,500 tons of nitroxasulfuron, annual output of 800 tons of quinquefoil and 500 tons of quinwofosfen, annual output of 700 tons of cyhalofop and 300 tons of acetylsulfamethoxazole, with an annual output of 1,000 tons of triclopyr and 1,000 tons of triclopyr butoxyethyl, such as the original production line of technical transformation projects. The implementation of the above projects is important to the company's development strategy. The implementation of the above projects is of great significance to the realization of the Company's development strategy, the expansion of the scale of operation and the enhancement of profitability. Affected by the "3.21" large-scale safety accident in 2019 and the new coronary pneumonia incident in 2020, the company's fund-raising projects have not been successfully implemented in accordance with the established plan, and the company will not be able to realize the expected economic benefits in accordance with the established plan, which will have an impact on the overall return on investment and the expected benefits of the company's fund-raising projects.
Fourth, the report period core competitiveness analysis
1, safety and environmental protection advantages
The company has always attached great importance to safety and environmental protection governance, with the improvement of safety and environmental protection standards, the company has continued to increase capital investment, innovation process, upgrading and transformation. During the reporting period, the company invested a lot of money in the park heating company pipe network maintenance and upgrading to stop heating during the period, according to the government at all levels of the newly introduced on the chemical industry safety and environmental protection norms and requirements, and took the initiative to invite domestic authoritative experts on the company's safety hazards to carry out a number of dragnet investigation to develop remediation and enhancement programs, high-quality and high-standard rectification. During this period, the company upgraded the automation of the existing equipment, reduced the number of operators on site, further improved the level of automation control and intrinsic safety, continuously strengthened the safety awareness of the staff, repeatedly organized safety training, the implementation of the responsibility system for production safety, and strengthened the awareness of intrinsic safety; the company also carries out the remediation and upgrading work of the "three wastes" project, which mainly includes tail gas, waste water and waste water. The company also carries out the remediation and upgrading of the "three wastes" project, which mainly includes the remediation and upgrading of exhaust gas, wastewater and solid wastes, further improves the configuration of environmental protection infrastructure, enhances the company's overall level of environmental protection and production, and basically realizes the efficient treatment of pollutants and discharge of pollutants up to the standard, which provides an effective guarantee for the company's stable and continuous production during the future environmental protection verification. After the park heating company resumed heat supply, the company is the first chemical enterprise to resume production in Yancheng, highlighting the company's advantages in safety and environmental protection.
2, pesticide industry integration development advantages
The company has a production capacity of 20,000 tons of formulations, the company's fluridone, chlorpyrifos, fumonisulfuron, the four major drug production capacity of 19,500 tons of quinquefolam, supporting the capacity of the fund-raising project will be released one after another. The integration strategy of the company's preparation, API and intermediates realizes that the pesticide preparation business and API business complement each other and promote each other, which is beneficial to weaken the cyclical fluctuation risk of the API, and the key intermediates of the company's four major APIs have been synthesized independently, so that the company is able to effectively resist the adverse effects of key raw materials and intermediates, and to fully tap the "chemical products→intermediates→primary pharmaceuticals→preparation" link in the pesticide industry chain. "Fully explore the pesticide industry chain in each link of the better profit opportunities, improve the company's overall anti-risk ability and profitability. On the one hand, the company makes full use of the self-produced original drug, develops the preparation products with market competitiveness, such as insecticide, herbicide, fungicide, etc., with complete categories and stable sales; on the other hand, the company's preparation business contributes to the promotion of the company's original drug products, the company has a perfect preparation sales channel and complete technical service system, the preparation products have a good brand image among users, and part of the original drug is directly used in the Some of the original drugs are directly used in the production of preparation products, which is conducive to the promotion and sales of the company's original drug products.
3, quality management advantages
Quality system is the lifeline of the enterprise, the company has built a perfect quality control system. The company has set up strict quality control standards and control processes in the formulation of product standards, raw material procurement and incoming inspection, production process control, product control to prevent cross-contamination, product control, after-sales technical service and support, etc. With strict quality management system and complete quality management process, the company has passed the environmental management system ISO14001:2004, occupational health and safety management system OHSAS18001:2008, and has also passed the ISO14001:2008, OHSAS18001:2008, OHSAS18001:2008, and OHSAS18001:2008. health and safety management system OHSAS18001:2007, quality management system ISO9001:2008 and other system certifications, and has been awarded the "Jiangsu Province Quality Management Advanced Enterprise", "National Quality Management Standard Enterprise" and other honorary titles. The company has been awarded the honorary title of "Jiangsu Advanced Quality Management Enterprise" and "National Quality Management Standard Enterprise". The company's original drug and preparation business production in line with the quality management standards, and always keep in line with the domestic first-class agrochemical enterprises.
4, marketing channel advantages
After years of marketing network construction, the company has established sales and service outlets in many cities across the country, basically realizing a comprehensive coverage of the domestic provinces, municipalities, autonomous regions, and in foreign countries, Oceania, South America and other major pesticide use areas to establish a stable sales channels and networks, the company uses the existing marketing network to understand, collect and feedback market information, to grasp the national market demand, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality, product quality and product quality. The company uses the existing marketing network to understand, collect and feedback market information in a timely manner, to master the product demand and price information of the national market, and to adjust the production plan, sales plan and new product development plan accordingly. The perfect marketing network has become an important channel for the company's product sales and new product promotion. The synergistic development of domestic and international markets, on the one hand, expands the company's sales scale, realizes the stable growth of income and profit, and enhances the company's anti-risk ability; on the other hand, it alleviates the seasonal impact of sales in a single market, and the balanced development of the two markets greatly improves the utilization rate of the equipments, and reduces the fixed cost of the products. At the same time, the company has established long-term and stable business relationships with internationally renowned agrochemical companies such as ADAMA, LANDMARK, 4FARMERS, Sumitomo Chemical and so on, by virtue of its outstanding quality advantages and high quality service guarantee ability.
5. Advantage of HSE management system
The company has obtained the certificate of HSE management system compliance enterprise in China's pesticide industry in FY2018, which provides stability data testing for pilot scale-up of innovative product development projects, conducts process safety assessment, and adopts a series of scientific methods to conduct comprehensive risk analysis to ensure the process safety of the pilot test and mass production. The company has always attached importance to risk prevention and control and attempt management, strengthened the control of dangerous processes and made great efforts to improve the automation level, so as to avoid the occurrence of safety and environmental protection accidents from the source. The company has been awarded as "Advanced Unit of Safe Production in Jiangsu Province", "Model Enterprise of Safe Culture in Jiangsu Province", and "Enterprise of Safety Standardization Level 2", "Advanced Collective in Work Safety", "Environmental Protection and Safety Award" and many other honors related to work safety. In order to continue to promote the level of HES management, and in the process of production and operation, to improve the level of HSE management with high standards and high requirements, to provide support for the company to obtain the core supplier seat of multinational enterprises.