COFCO TECH(SZ:000930)2022-04-28 16:00Financial Performance - The company reported a total revenue of 1,865,273,596 RMB for the year, with a cash dividend of 2.45 RMB per 10 shares distributed to shareholders[6]. - The company's operating revenue for 2021 was ¥23,468,553,115.67, representing a 17.88% increase compared to ¥19,909,350,658.56 in 2020[28]. - The net profit attributable to shareholders in 2021 was ¥1,133,198,037.30, a significant increase of 91.06% from ¥593,116,803.94 in 2020[28]. - The net profit after deducting non-recurring gains and losses reached ¥1,054,340,097.55 in 2021, up 102.28% from ¥521,231,909.82 in 2020[28]. - The net cash flow from operating activities improved to ¥4,841,590,965.35 in 2021, a 266.33% increase from -¥2,910,855,638.13 in 2020[28]. - The basic earnings per share for 2021 was ¥0.6127, reflecting a 90.93% increase compared to ¥0.3209 in 2020[28]. - The total operating revenue for 2021 reached ¥23,468,553,115.67, representing a year-on-year increase of 17.88% compared to ¥19,909,350,658.56 in 2020[72]. - The revenue from agricultural product processing and sales accounted for 98.60% of total revenue, amounting to ¥23,141,074,192.25, with a year-on-year growth of 20.17%[72]. - The company achieved a historic breakthrough with revenue exceeding 20 billion RMB and net profit reaching over 1 billion RMB, marking a year-on-year increase in performance despite global economic challenges[62]. Shareholder and Capital Structure - The company’s total share capital increased to 1,865,763,788 shares following the completion of a restricted stock grant, with the controlling shareholder's stake slightly decreasing to 47.34%[24]. - COFCO Bio-chemical Investment Co., Ltd. became the controlling shareholder with a 47.80% stake after the completion of a stock issuance for asset acquisition[24]. - The company’s actual controller, COFCO Group, holds a total of 1,035,233,262 shares, representing 55.49% of the total shares[24]. - The company implemented a cash dividend policy, distributing CNY 2.45 per 10 shares, totaling CNY 456,992,031.02 for the year, which represents 100% of the total profit distribution[196]. Business Operations and Strategy - The company’s main business shifted to include fuel ethanol, edible alcohol, starch, starch sugar, citric acid, and monosodium glutamate since 2018[24]. - The company is experiencing increased operational pressure due to rising corn prices and energy costs, impacting the corn starch industry[40]. - The corn deep processing industry in China is facing challenges due to policy adjustments, significant fluctuations in raw material prices, and overcapacity, while industry consolidation is expected to accelerate[42]. - The company maintains a leading position in the fuel ethanol industry, achieving significant profit growth through diversified raw material utilization and continuous optimization of fermentation processes[51]. - The company is committed to innovation and continuous improvement in production processes to meet the growing demand for specialized products driven by consumer trends[42]. - The company’s strategy includes a diversified raw material approach and flexible production to ensure sustainable operations in the fuel ethanol sector[45]. - The company is positioned to benefit from the increasing market demand for functional high-end food additives and biodegradable materials due to health and environmental concerns[42]. - The company is actively developing biodegradable materials in response to national policies on plastic pollution, with projects underway for a 30,000-ton lactide production facility and a kiloton-level PHA production unit[51]. Research and Development - The company has developed an international leading cellulose ethanol technology solution, obtaining 62 patent authorizations and completing a 50,000-ton demonstration facility process package[46]. - The company is advancing key fermentation technology for fuel ethanol, aiming to reduce overall production costs and enhance process levels[92]. - The company is developing multi-grain fermentation technology to diversify raw material applications, which is expected to lower raw material costs for alcohol products[92]. - The company is increasing R&D investment to drive sustainable development, focusing on functional sugar products and cellulose ethanol technology[137]. - Research and development expenses increased by 4.93% to CNY 119,277,453.53 in 2021 compared to CNY 113,672,793.15 in 2020[89]. - R&D investment increased by 4.21% from ¥114,386,332.05 in 2020 to ¥119,196,565.97 in 2021, while the proportion of R&D investment to operating revenue decreased from 0.57% to 0.51%[93]. Environmental and Sustainability Initiatives - The company’s production facilities achieved zero wastewater discharge in fuel ethanol production, setting a precedent in the industry for environmental sustainability[58]. - The company is committed to sustainable development, integrating green practices into its operations and achieving 100% compliance in pollution source monitoring[55]. - The company is implementing "dual carbon" goals, focusing on carbon reduction measures and energy management systems to lead industry green transformation[137]. Market and Sales Performance - The company reported a quarterly operating revenue of ¥6,377,175,641.39 in Q2 2021, with a net profit attributable to shareholders of ¥350,179,550.23[31]. - Sales of high-value-added products such as specialty starches, specialty starch sugars, specialty alcohols, and specialty citric acid saw significant year-on-year growth, reaching historical highs[52]. - The sales volume of specialty products, including "small specialty new" syrup, exceeded 100,000 tons, achieving a year-on-year growth of over 40%[66]. - The company successfully reduced raw material costs by importing over 200,000 tons of cassava, leveraging price differences between domestic corn and imported cassava[65]. - The company’s domestic revenue was ¥21,814,785,206.18, representing 92.95% of total revenue, with a year-on-year growth of 19.62%[72]. Governance and Management - The governance structure has been strengthened, with the addition of two independent directors to the board[151]. - The company’s management team includes several independent directors, enhancing governance and oversight[159]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations[163]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to 11.55 million yuan (pre-tax), with independent directors receiving a total of 360,000 yuan (pre-tax)[174]. - The company held a total of 10 board meetings during the reporting period, with all directors attending at least one meeting in person[182]. Employee and Training Initiatives - The company has a total of 8,413 employees, with 7,245 in production, 273 in sales, 399 in technology, 220 in finance, and 276 in administration[189]. - The company conducted over 1,200 training sessions in 2021, with a total of 17,000 participants, aimed at enhancing talent quality and organizational vitality[194]. - The company has established a talent training system that covers management, professional, and technical personnel[194].