ANDRE JUICE(605198)2021-03-30 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥842 million, a slight increase of 0.46% compared to ¥838 million in 2019[23]. - The net profit attributable to shareholders decreased by 10.33% to approximately ¥152 million in 2020 from ¥169 million in 2019[23]. - The net profit after deducting non-recurring gains and losses fell by 45.78% to approximately ¥86 million in 2020 compared to ¥159 million in 2019[23]. - The net cash flow from operating activities significantly increased by 1,759.86% to approximately ¥211 million in 2020 from ¥11 million in 2019[23]. - The company's total assets grew by 9.05% to approximately ¥2.224 billion at the end of 2020, up from ¥2.040 billion at the end of 2019[23]. - The basic earnings per share decreased by 12.77% to ¥0.41 in 2020 from ¥0.47 in 2019[23]. - The weighted average return on equity decreased by 1.54 percentage points to 7.63% in 2020 from 9.17% in 2019[23]. - The company's gross profit for 2020 was 201,024,167.18 RMB, with a gross margin of 23.87%, down from 264,284,664.03 RMB and 31.53% in 2019, primarily due to decreased sales prices and increased operating costs[49]. - The net profit attributable to the parent company was 151,778,272.20 RMB, a decrease of 10.33% from 169,268,723.74 RMB in the previous year, impacted by the pandemic and rising shipping costs[50]. - Main business revenue for 2020 was 835,579,859.39 RMB, a year-on-year increase of 0.49%, while main business costs rose by 11.83% to 638,702,439.05 RMB[52]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.50 per 10 shares based on 367,300,000 shares[5]. - The proposed cash dividend of RMB 0.50 per 10 shares totals RMB 18,365,000, which represents 12.10% of the net profit attributable to ordinary shareholders for 2020[97]. - The cash dividend level for 2020 was below 30% due to the expenditure of HKD 91,423,765 for repurchasing H shares and the need to reserve funds for raw material purchases for the new juicing season[101]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[103]. - The company’s retained earnings will be carried forward for future distribution, as the cash dividend was lower than previous years[97]. - The company’s profit distribution plan requires approval from the shareholders' meeting after being reviewed by the board and supervisory committee[99]. Risks and Challenges - The company is affected by major risks including raw material supply shortages and uncertainties due to the global COVID-19 pandemic[6]. - The company's financial performance is influenced by factors such as Sino-U.S. trade tensions[6]. - The company is facing risks from the ongoing US-China trade tensions, which have imposed a 25% tariff on concentrated apple juice exports to the US, affecting sales uncertainty[92]. - The company has implemented measures to mitigate risks from raw material supply shortages and has adjusted procurement strategies to manage price volatility[88]. - The company has developed emergency measures to address uncertainties in the operating environment due to the COVID-19 pandemic, including increasing logistics options and monitoring customer payment statuses[91]. Market and Business Operations - The company’s main business involves the production and sale of fruit juice products[15]. - The company has established eight concentrated juice processing bases and has a designed annual processing capacity of 1 million tons[30]. - The company has cumulatively paid over ¥10 billion to farmers for raw fruit since its establishment[30]. - The company is recognized as a national key leading enterprise in agricultural industrialization and a top 100 enterprise in food industry exports in China[30]. - The concentrated apple juice market in developed countries accounts for 80% of global consumption, with stable demand expected despite short-term trade tensions[34]. - The company aims to optimize its customer base by actively seeking new clients and enhancing communication with existing ones to increase order volumes[46]. - The company has developed a stable sales network that extends to major countries and regions worldwide, including the US, Japan, and Europe, enhancing its market presence[44]. - The company maintains long-term stable partnerships with renowned beverage manufacturers such as Coca-Cola and PepsiCo, ensuring a solid customer base[41]. Research and Development - The company has invested over 40 million RMB to establish a state-of-the-art R&D center, which supports new product development and technological advancements[38]. - The company reported a significant increase in R&D expenses, which rose by 227.21% to 7,907,103.54 RMB, indicating a focus on innovation[51]. - Total R&D investment accounted for 0.94% of operating revenue, with 49 R&D personnel representing 5.66% of the total workforce[61]. - The company is actively seeking to reduce reliance on a single product by diversifying into apple fructose, pear fructose, and fresh-squeezed juices, responding to market demands[93]. Environmental Compliance - The company has been listed as a key pollutant discharge unit by local environmental authorities for four subsidiaries, indicating a focus on environmental compliance[129]. - The wastewater from the subsidiaries is treated to meet standards before being discharged into the municipal sewage system, ensuring environmental protection[131]. - The company has established a wastewater treatment station in Baishui since 2004, which passed environmental protection acceptance in March 2008[135]. - The company has implemented online monitoring systems for pollutants such as COD, total phosphorus, and nitrogen at wastewater discharge outlets[140]. - The company adheres to the wastewater discharge standards of GB8978-1996 and GB/T31962-2015, with specific limits for COD at 500 mg/L and ammonia nitrogen at 45 mg/L[134]. Corporate Governance - The company has established a comprehensive governance structure in accordance with the Company Law and Securities Law, ensuring effective checks and balances among various decision-making bodies[200]. - The governance framework includes a series of management systems based on the Articles of Association and rules for shareholder meetings, board meetings, and supervisory meetings[200]. - Responsibilities and procedures for the general meeting of shareholders, board of directors, supervisory board, and management team are clearly defined[200]. - The governance structure promotes scientific division of labor and effective supervision among power institutions, decision-making bodies, operational institutions, and supervisory institutions[200]. - The company emphasizes the importance of compliance with institutional norms in exercising rights and fulfilling responsibilities[200]. Shareholder Information - The company has a total of 5,912 ordinary shareholders as of the end of the reporting period[158]. - The top ten shareholders held a total of 28.61% of the shares, with Hong Kong Central Clearing holding 108,128,440 shares (28.61%) and Donghua Fruit Industry Co., Ltd. holding 65,779,459 shares (17.40%)[161]. - The actual controllers of the company are Wang An and Wang Meng, with no other significant changes in control during the reporting period[172]. - The company has no plans for share reduction or other significant changes in shareholding structure[175]. Employee Management - The company employed a total of 865 staff, including 461 production personnel, 20 sales personnel, 253 technical personnel, 39 financial personnel, and 92 administrative personnel[195]. - The company has established a performance-based salary management system to align remuneration with overall company interests and market competitiveness[196]. - The company organized various training programs covering safety, policy, law, information technology, marketing, operational techniques, and finance to enhance employee skills[198]. - The company emphasizes the importance of employee training to improve understanding of corporate decisions and enhance competitiveness[197].