KINGKEY SMART AGRI(SZ:000048)2014-05-30 16:00Shareholder Changes - The company reported a significant change in its controlling shareholder, with Shenzhen Longgang Investment Management Company transferring its 36.16% stake to Shenzhen Huachao Investment Development Co., Ltd. and Shenzhen Zhongquan Construction Supervision Co., Ltd. in 2003[20]. - The controlling shareholder, Shenzhen Huachao Investment Group, was established in May 1996 with a registered capital of 60 million RMB[163]. - The actual controller of the company is Luo Aihua, who holds 60% of the shares in Shenzhen Huachao Investment Group Co., Ltd.[164]. - The largest shareholder, Shenzhen Huachao Investment Group Co., Ltd., holds 102,998,857 shares, accounting for 26.36% of total shares[160]. - The company has no other shareholders holding more than 10% of the shares[166]. Financial Performance - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The financial report for 2013 received a qualified opinion from Ruihua Certified Public Accountants, indicating potential concerns regarding the accuracy of the financial statements[6]. - The company’s operating revenue for 2013 was CNY 1,565,306,163.41, representing a 7.7% increase compared to CNY 1,453,353,016.90 in 2012[34]. - The net profit attributable to shareholders was CNY -9,020,255.58, a decrease of 132.21% from CNY 28,008,566.99 in the previous year[34]. - The basic earnings per share were CNY -0.0231, down 132.22% from CNY 0.0709 in 2012[34]. - The total assets at the end of 2013 were CNY 1,330,565,566.90, an increase of 9.81% from CNY 1,211,733,970.00 in 2012[34]. - The company reported a net cash flow from operating activities of CNY -73,535,170.86, a significant decline compared to CNY -25,169,753.80 in 2012[35]. - The company reported a net cash flow from investment activities that decreased by CNY 50 million compared to the previous year, primarily due to a reduction in the purchase of short-term bank financial products[36]. - The company reported a net profit for the year of CNY 299,491.85, a significant decrease compared to the previous year's loss of CNY 7,140,654.67[87]. - The company reported an increase in total assets to CNY 1,055,755.32, with total liabilities at CNY 546,483.23[86]. Business Operations - The company has maintained its main business operations without any changes since its listing[20]. - The company established Shenzhen Kangdarl Qianhai Investment Co., Ltd. to develop a financial service platform for the agricultural industry chain[34]. - The company acquired two companies in Xiamen focused on ecological black pig farming and brand meat marketing, enhancing its strategic layout in high-end agricultural products[34]. - The company completed the acquisition of Xiamen Muxing Company and Yuanshengtai Company, focusing on black pig breeding and brand meat marketing, marking a significant step in its agricultural development strategy[36]. - The company aims to enhance its agricultural development strategy by focusing on a supply chain that integrates urban and rural markets[61]. - The company has established a diversified business model that includes agriculture, public utilities, real estate, and financial investments[61]. - The company aims to expand its agricultural brand by focusing on high-quality and safe agricultural products, aiming to establish a leading low-carbon urban agriculture brand[72]. - The company plans to expand its market presence through new product development and strategic partnerships in the upcoming fiscal year[64]. Risk Management and Compliance - The company has not disclosed any major risks in its report, suggesting a stable operational environment[12]. - The company is under investigation by the China Securities Regulatory Commission for suspected false statements, which may impact its financial statements[77]. - The company will enhance its internal control system and governance structure to ensure compliance with legal and regulatory requirements[78]. - The company has been actively communicating with investors regarding various operational updates, including project progress and litigation status throughout 2013[94]. - The company has been assessing its risk management strategies, including hedging activities related to its feed production operations[94]. Investments and Acquisitions - The company made external investments totaling ¥142,361,700, a substantial increase of 429.82% from ¥26,870,000 in the previous year[62]. - The company completed the acquisition of assets valued at RMB 2,735.37 million, enhancing its agricultural production strategy[108]. - The acquisition is expected to positively impact the company's operational efficiency and market expansion[108]. - The company aims to strengthen its supply chain and expand its market presence through the acquisition[108]. - The company acquired 100% of Shenzhen Kangdarl Urban Farm to strengthen its agricultural supply chain and enhance market presence[67]. Revenue and Cost Management - The company’s feed production costs increased by CNY 63.00 million, mainly due to increased production and sales volumes[43]. - The company’s breeding business costs rose by CNY 51.67 million, attributed to the acquisitions made during the year[43]. - The company’s water supply business costs decreased by CNY 9.16 million, reflecting improved operational management and a 7.65% increase in recovery rates[43]. - The company has implemented cost-cutting measures that are projected to save 50 million RMB annually, improving overall profitability[172]. Corporate Governance - The company has established a performance evaluation and remuneration management system for senior management[178]. - The reporting period saw no penalties or disciplinary actions against any board members or senior management[177]. - The company’s management team has extensive experience in various sectors, including finance, agriculture, and real estate[176]. - The company is focused on maintaining compliance with regulatory standards and enhancing corporate governance practices[177]. - The independent directors contributed to the internal control system's construction and evaluation, enhancing the company's governance structure[194]. Legal Matters - The company reported a litigation amount of RMB 37.248 million related to a property dispute with Xin Xing Company, which was resolved with a withdrawal of the case[95]. - The ongoing litigation with COFCO Group involves a claim of RMB 13.165 million, with evidence exchange scheduled for October 9, 2013[95]. - The company is involved in a land compensation dispute regarding 77,600 square meters of land, with a compensation claim of RMB 37.248 million based on a rate of RMB 480 per square meter[96]. Employee and Management Information - The total remuneration for senior management during the reporting period amounted to CNY 4.8549 million[178]. - The company reported a total of 1,449 employees, with 709 in production, 297 in sales, 122 in technology, 102 in finance, and 219 in administration[183]. - The company has no retired employees that require expense coverage, indicating a streamlined workforce[183].