CCGB(SZ:300138)2025-04-07 12:20Financial Performance - The company's performance significantly declined during the reporting period, primarily due to a 3.48% decrease in gross margin from cottonseed-related products, leading to substantial operating losses[6]. - Sales prices and gross margins for products such as chili red, chili extract, lutein, stevia, and pepper extract also experienced declines, with gross margins for natural colorants/spices/nutrition and medicinal products dropping by 4.54% and 16.42% year-on-year, negatively impacting profitability[6]. - Despite the overall performance drop, the demand for natural plant extracts remains robust, with most product sales volumes maintaining growth[7]. - The company reported no significant adverse changes in its core competitiveness during the reporting period, indicating stable financial health and operational capacity[7]. - The company's revenue for 2024 reached ¥6,994,192,786.23, representing a 1.79% increase compared to ¥6,871,515,007.68 in 2023[26]. - Net profit attributable to shareholders decreased by 80.39% to ¥94,049,622.14 from ¥479,722,222.22 in the previous year[26]. - Basic earnings per share dropped by 79.84% to ¥0.1818 from ¥0.9017 in 2023[26]. - The net profit attributable to shareholders was CNY 94.05 million, a significant decline of 80.39% compared to the previous year[95]. Operational Efficiency - The net cash flow from operating activities improved by 62.14%, reaching -¥222,814,959.97 compared to -¥588,469,172.69 in 2023[26]. - The overall financial condition and capital operation of the company are reported to be sound, with no significant risks to ongoing operational capabilities[7]. - The company has a robust R&D team and has made significant investments in technology innovation, focusing on process improvement and new product development[43]. - The company has implemented a comprehensive procurement, R&D, production, and sales model, continuously improving its operations based on market demand[48]. - The company has established core product planting bases in raw material advantage areas such as Xinjiang, Yunnan, and Hebei, and is expanding internationally in India, Zambia, and Myanmar to reduce raw material costs and enhance competitive advantage[45]. Market Position and Strategy - The company is positioned as the largest listed company in the domestic plant extract industry and is competing with global leaders like Frutarom and Kalsec[40]. - The global plant extract industry is expected to grow at a CAGR of 12.3% from 2022 to 2027, reaching a market size of $61.5 billion by 2027[36]. - The company aims to develop around ten products that rank first or among the top in the world, leveraging its strong industrial production capabilities[44]. - The company has developed over 100 new products, significantly increasing its market share in the international market for chili red pigment from less than 2% to over 80%[43]. - The company is focused on expanding its market presence and product structure to strengthen its core competitiveness amid increasing competition in the natural plant extract industry[54]. Research and Development - The company has established 26 technology platforms, including 6 national-level platforms, enhancing its research and development capabilities[78]. - The company’s research and development efforts focus on product innovation, process improvement, and equipment upgrades[76]. - The company has applied for 678 patents and was granted 437 patents, with 469 papers submitted and 300 published[83]. - The company is conducting ongoing research to improve the extraction processes for turmeric and tomato extracts, aiming to enhance overall product competitiveness[121]. - The company aims to complete the development of various microencapsulated products to expand its formulation product types[122]. Risk Management - The company has not identified any major risks that could adversely affect its operations in the next reporting period[7]. - The company faces risks related to raw material supply and price fluctuations, which could significantly impact performance; it has established long-term strategic partnerships with suppliers to mitigate these risks[51]. - The company is exposed to foreign exchange risks due to its significant overseas revenue, primarily priced and settled in USD; it will utilize financial instruments to mitigate the impact of currency fluctuations[56]. - The company emphasizes the importance of understanding the risks associated with forward-looking statements regarding future plans and forecasts[7]. Governance and Compliance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective decision-making and supervision[181]. - The board of directors consists of 6 members, including 3 independent directors, ensuring compliance with legal requirements[184]. - The company respects and safeguards the legitimate rights and interests of stakeholders, emphasizing social responsibility and communication with various parties to promote sustainable development[188]. - The company adheres to strict information disclosure practices, ensuring that all shareholders can access information fairly and timely through multiple channels[189]. Environmental and Social Responsibility - The company has invested significantly in environmental protection facilities and established a strict environmental monitoring system to mitigate the impact of increasing environmental regulations on production[55]. - The company is committed to sustainable practices in its operations, aiming to reduce its carbon footprint by 20% over the next five years[195]. - The company has a focus on quality and food safety management, ensuring high standards in its product offerings[200]. Future Outlook - Future guidance indicates a projected revenue increase of 10% for the next fiscal year, driven by new product launches and market penetration strategies[194]. - The company plans to enhance production technology for its main product, chili red pigment, aiming for a 1%-2% increase in yield in 2025[168]. - The company intends to expand its market share for sweet stevia products and aims to capture two-thirds of the global market for silymarin[168]. - The company plans to continue exploring market opportunities for its fundraising projects while applying for extensions on project implementation periods[156].