亚盛集团(600108) - 2020 Q4 - 年度财报

Definitions This section provides definitions of key terms used in the report Company Profile and Key Financial Indicators This section outlines the company's basic information and presents its key financial performance over recent years Company Overview Yasheng Group is a company listed on the Shanghai Stock Exchange (stock code: 600108), primarily engaged in modern agriculture-related businesses with Li Keshu as its legal representative - The company's Chinese abbreviation is “Yasheng Group”, stock code is 600108, and it is listed on the Shanghai Stock Exchange[13][17] Key Accounting Data and Financial Indicators In 2020, the company's operating revenue grew by 10.32% to 3.132 billion yuan, but net profit attributable to shareholders turned to a significant loss of 0.852 billion yuan, with key financial indicators deteriorating significantly due to a substantial fourth-quarter decline Key Accounting Data for the Last Three Years | Key Accounting Data | 2020 | 2019 | Period-over-Prior-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3.132 billion yuan | 2.839 billion yuan | 10.32% | | Net Profit Attributable to Shareholders of Listed Company | -0.852 billion yuan | 0.078 billion yuan | -1,196.37% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | -0.579 billion yuan | 0.021 billion yuan | -2,875.94% | | Net Cash Flow from Operating Activities | 0.119 billion yuan | -0.076 billion yuan | Not Applicable | | Net Assets Attributable to Shareholders of Listed Company | 4.006 billion yuan | 4.989 billion yuan | -19.70% | | Total Assets | 8.339 billion yuan | 9.004 billion yuan | -7.39% | Key Financial Indicators | Key Financial Indicators | 2020 | 2019 | Period-over-Prior-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.4379 | 0.0399 | -1,197.49% | | Weighted Average Return on Net Assets (%) | -18.68% | 1.62% | Decreased by 20.30 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Items) (%) | -12.69% | 0.43% | Decreased by 13.12 percentage points | - The net profit attributable to shareholders of the listed company in Q4 2020 was -0.866 billion yuan, which was the main reason for the significant full-year loss[22] - Total non-recurring gains and losses in 2020 amounted to -0.274 billion yuan, primarily due to a -0.317 billion yuan loss under "Other Non-operating Income and Expenses"[23] Business Overview This section provides an overview of the company's principal businesses, operating model, and industry context Principal Business, Operating Model, and Industry Overview The company is a large modern agricultural enterprise integrating crop cultivation, processing, R&D, services, and distribution, focusing on products like hops, forage, and potatoes, operating under a vertically integrated management model with core strengths in land resources and technology aligned with national rural revitalization strategies - The company's principal business involves crop cultivation and processing, with key products including hops, high-quality forage, potatoes, corn, and fruits[28] - The company has established a vertically integrated management system of "Group Parent Company—Specialized Subsidiaries—Base Branch Companies" to achieve overall industrial planning and specialized operations[28] - The company's core competencies lie in its large-scale land base and technological support, emphasizing standardized, green production that aligns with national rural revitalization and agricultural modernization trends[28][29] Analysis of Core Competencies The company's core competencies are rooted in five key areas: extensive cultivated land resources, a professional management team, strong R&D and technology transfer capabilities, advanced agricultural machinery (over 85% mechanization rate), and differentiated, high-quality products with market advantages due to its location in the Hexi Corridor - The company's core competencies are reflected in five key aspects: resources, organization, technology, equipment, and products/market[30] - The company possesses abundant cultivated land resources, a comprehensive mechanization rate exceeding 85%, and an Agricultural Research Institute to support technological innovation[30] Management Discussion and Analysis This section discusses the company's operational performance, financial position, and future outlook Review of Operations In 2020, the company navigated challenges from the COVID-19 pandemic and natural disasters by ensuring production, adjusting industrial structure, optimizing existing potential through refined management, expanding new businesses like land transfer and organic fertilizers, strengthening technological innovation and talent acquisition, and exploring new sales channels - Facing the COVID-19 pandemic and natural disasters, the company strived to ensure stable agricultural production and achieved orderly resumption of work and production[32][33] - The company undertook business asset restructuring and structural adjustments, spinning off the chili pepper industry from the food group for independent operation to promote specialized development[33] - The company actively expanded incremental businesses, including transferring high-quality land resources, developing the organic fertilizer industry, investing in potato seed breeding bases, and establishing a seed company[34] - The company strengthened technological and talent support, establishing collaborations with multiple research institutions and recruiting over 200 various professionals throughout the year[35] Analysis of Key Operating Performance During the reporting period, the company's operating revenue increased by 10.32% to 3.132 billion yuan, but net profit attributable to the parent company significantly declined to -0.852 billion yuan due to factors such as the COVID-19 pandemic, natural disasters, industrial restructuring, increased costs, substantial asset impairment provisions, and asset write-offs from frost damage Key Operating Data for 2020 | Indicator | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 3.132 billion yuan | +10.32% | | Net Profit Attributable to Owners of Parent Company | -0.852 billion yuan | -930.22 million yuan | | Net Profit Attributable to Owners of Parent Company (Excluding Non-recurring Items) | -0.579 billion yuan | -599.75 million yuan | | Total Assets | 8.339 billion yuan | -7.39% | | Total Liabilities | 4.324 billion yuan | +8.85% | Analysis of Income Statement and Cash Flow Statement In 2020, the company's profit significantly declined, with operating profit decreasing by 0.614 billion yuan primarily due to increased costs and expenses and a substantial rise in asset impairment provisions, while net cash flow from operating activities turned positive, increasing by 0.195 billion yuan mainly from higher cash received from sales Analysis Table of Changes in Key Accounts of Income Statement and Cash Flow Statement | Account | Current Period Amount (million yuan) | Prior Year Same Period Amount (million yuan) | Change Rate (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 329.9585 | 250.9328 | 31.49 | Increased product write-offs due to epidemic and environmental remediation investments | | Credit Impairment Losses | -141.1759 | -52.8623 | Not Applicable | Impact of epidemic, increased difficulty in collecting receivables | | Asset Impairment Losses | -235.2112 | -8.8180 | Not Applicable | Impairment provision due to industrial structure adjustment and inventory price decline | | Operating Profit | -556.3380 | 57.9588 | -1,059.88 | Increased costs and expenses, and increased provision for asset impairment | | Non-operating Expenses | 326.8329 | 1.0566 | 30,833.14 | Alfalfa frost damage and agricultural facility write-offs | | Net Profit Attributable to Parent Company | -852.4703 | 77.7541 | -1,196.37 | Decline in operating profit and frost damage losses | | Net Cash Flow from Operating Activities | 118.7220 | -76.1028 | Not Applicable | Increased cash received from sales of goods | Revenue and Cost Analysis By industry, the agriculture segment dominated revenue with a 13.06% increase, but its gross margin significantly declined due to rising costs, while industrial and trade segments both reported negative gross margins; by product, edible sunflower seed revenue surged by 62.70% but its gross margin turned negative, while hops revenue grew by 28.64% with improved gross margin, and inventory levels for alfalfa, potatoes, and edible sunflower seeds substantially increased Principal Business by Industry Segment | By Industry Segment | Operating Revenue (billion yuan) | Operating Cost (billion yuan) | Gross Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Agriculture | 2.522 | 2.140 | 15.16 | 13.06 | 22.44 | | Industry | 0.264 | 0.309 | -17.14 | 69.99 | 123.08 | | Trade | 0.718 | 0.731 | -1.87 | -1.05 | 12.26 | Production and Sales Volume of Key Products | Key Products | Production Volume (tons) | Sales Volume (tons) | Inventory Volume (tons) | Inventory Volume Change from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | | Alfalfa | 173,183.71 | 128,433.25 | 62,037.43 | 258.87% | | Hops | 2,382.92 | 2,958.47 | 3,206.29 | -15.22% | | Potatoes | 111,779.10 | 92,386.50 | 24,799.98 | 358.63% | | Edible Sunflower Seeds | 32,041.28 | 24,616.96 | 8,585.84 | 639.19% | | Fruits | 37,328.27 | 41,662.78 | 11,115.44 | -28.06% | Expense Analysis During the reporting period, administrative and R&D expenses significantly increased, with administrative expenses rising by 31.49% due to product write-offs and environmental remediation, and R&D expenses growing by 94.88% reflecting increased investment Expense Changes | Item | Current Period Amount (yuan) | Prior Year Same Period Amount (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 59,866,916.41 | 59,815,926.40 | 0.09 | | Administrative Expenses | 329,958,515.25 | 250,932,799.89 | 31.49 | | R&D Expenses | 20,551,153.10 | 10,545,474.89 | 94.88 | | Financial Expenses | 130,030,161.34 | 135,564,162.92 | -4.08 | R&D Investment In 2020, the company's total R&D investment was 20.5512 million yuan, all expensed, representing 0.66% of operating revenue, with 71 R&D personnel comprising 1.33% of the total workforce R&D Investment | Indicator | Value | | :--- | :--- | | Current Period Expensed R&D Investment | 20,551,153.10 yuan | | Total R&D Investment | 20,551,153.10 yuan | | Total R&D Investment as % of Operating Revenue | 0.66% | | Number of Company R&D Personnel | 71 persons | | R&D Personnel as % of Total Company Staff | 1.33% | Cash Flow Analysis During the reporting period, net cash flow from operating activities turned positive to 0.119 billion yuan, net cash outflow from investing activities significantly decreased to -0.068 billion yuan, and net cash outflow from financing activities substantially increased to -0.055 billion yuan, primarily due to higher debt repayments and interest payments Cash Flow Situation | Cash Flow | Current Period Amount (yuan) | Prior Year Same Period Amount (yuan) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 118,722,012.69 | -76,102,820.38 | / | | Net Cash Flow from Investing Activities | -68,080,067.70 | -166,937,767.56 | / | | Net Cash Flow from Financing Activities | -54,860,212.14 | 15,425,626.53 | -455.64 | Analysis of Assets and Liabilities At the end of the reporting period, total assets decreased by 7.39% to 8.339 billion yuan, while total liabilities increased by 8.85% to 4.324 billion yuan; construction in progress significantly increased by 335.49%, productive biological assets decreased by 39.83% due to write-offs from industrial restructuring, and retained earnings substantially declined by 42.60% due to losses Changes in Key Balance Sheet Items | Item Name | Current Period End Amount (million yuan) | Change Rate from Prior Period End (%) | Main Reason | | :--- | :--- | :--- | :--- | | Construction in Progress | 98.2350 | 335.49% | Project construction progress | | Productive Biological Assets | 56.7825 | -39.83% | Industrial structure adjustment, asset write-offs | | Long-term Deferred Expenses | 312.9801 | 37.15% | Increased land improvement and soil fertility enhancement expenses | | Contract Liabilities | 102.2475 | Not Applicable | Impact of new revenue recognition standard implementation | | Retained Earnings | 1,160.3439 | -42.60% | Increased production costs, impairment provisions, and write-offs | - As of the end of the reporting period, the total book value of the company's key restricted assets was 79.9855 million yuan, including monetary funds, accounts receivable, fixed assets, and intangible assets[52] Investment Analysis During the reporting period, the company established two new subsidiaries to promote industrial specialization: Gansu Xingnong Chili Industry Development Co., Ltd. for independent chili operations, and Gansu Yasheng Seed Industry Co., Ltd. with a 0.12 billion yuan investment, which also acquired Gansu Nongken Liangzhong and Huangyanghe Seed Industry to integrate seed resources and enhance technological innovation - Gansu Xingnong Chili Industry Development Co., Ltd. was newly established to operate the chili pepper industry independently and enhance market competitiveness[54] - The company invested 0.12 billion yuan to establish Gansu Yasheng Seed Industry Co., Ltd. and completed the acquisition of 100% equity in Gansu Nongken Liangzhong Co., Ltd. and Gansu Huangyanghe Group Seed Industry Co., Ltd., aiming to integrate resources and enhance seed industry technological innovation capabilities[54][55] Analysis of Major Holding and Participating Companies During the reporting period, several of the company's major subsidiaries incurred significant losses primarily due to provisions for asset impairment and inventory write-downs, including Gansu Yasheng Haoshibang Food Group with a loss of 0.178 billion yuan, Gansu Yasheng Tianyuan Mugao Grass Industry Group with a loss of 0.164 billion yuan due to frost damage, and Gansu Ruisheng Yameite High-Tech Agriculture Co., Ltd. with a loss of 0.124 billion yuan Operating Performance of Major Subsidiaries (Unit: million yuan) | Company Name | Net Profit | Analysis of Net Profit Change Reasons | | :--- | :--- | :--- | | Gansu Xingnong Chili Industry Development Co., Ltd. | -18.6373 | Due to provision for inventory impairment | | Gansu Yasheng Tianyuan Mugao Grass Industry Group Co., Ltd. | -164.3207 | Due to frost damage losses in current period | | Gansu Yasheng Haoshibang Food Group Co., Ltd. | -178.1528 | Due to provision for asset impairment in current period | | Gansu Yasheng Yameite Water Saving Co., Ltd. | -95.7022 | Due to provision for asset impairment in current period | | Gansu Ruisheng Yameite High-Tech Agriculture Co., Ltd. | -123.7204 | Due to provision for asset impairment in current period | Company's Future Development Outlook The company anticipates future agricultural development towards technology, information, scale, and green organic practices, with its strategy focusing on rural revitalization, dual-driven capital operation and real economy, and accelerating the construction of modern agriculture, trade logistics, and modern management systems, with the 2021 operating plan emphasizing management improvement, existing asset optimization, new business expansion, market development, technological support, and talent development - The company's development strategy adheres to a dual-driven approach of capital operation and real economy, accelerating the construction of modern agricultural systems, trade logistics systems, and modern management systems[59] - The 2021 operating plan focuses on management improvement, optimizing existing assets for efficiency, strategic new business expansion, market development, strengthening technological support, talent team building, and corporate culture development[60][61][62][63] - The company faces key risks including macroeconomic policy risks, operational management risks, market competition and rising cost risks, agricultural product safety risks, project risks, natural disaster risks, and COVID-19 pandemic risks[65][66] Significant Matters This section details important events and decisions during the reporting period, including profit distribution, accounting policy changes, related party transactions, and social responsibility initiatives Profit Distribution Plan The company's 2020 profit distribution plan proposes no profit distribution or capital reserve to share capital conversion, with a "Shareholder Return Plan for the Next Three Years (2020-2022)" in place to ensure dividend policy continuity and stability - The 2020 profit distribution plan proposes no profit distribution and no capital reserve to share capital conversion[5] Dividend Distribution Plan for the Last Three Years | Dividend Year | Dividend per 10 shares (yuan) (tax inclusive) | Cash Dividend Amount (tax inclusive) | Ratio to Net Profit Attributable to Parent Company (%) | | :--- | :--- | :--- | :--- | | 2020 | 0 | 0 | 0 | | 2019 | 0.045 | 8,761,118.04 yuan | 10.87% | | 2018 | 0.045 | 8,761,118.04 yuan | 10.34% | Changes in Accounting Policies Effective January 1, 2020, the company adopted the new revenue recognition standard, primarily impacting financial statement presentation by reclassifying "Prepayments from Customers" to "Contract Liabilities" and "Other Current Liabilities" without affecting opening retained earnings - The company adopted the new revenue recognition standard effective January 1, 2020, replacing the risk and reward transfer model with control transfer as the criterion for revenue recognition[72] - Implementing the new revenue standard resulted in a 62.2182 million yuan decrease in "Prepayments from Customers" on the consolidated financial statements as of January 1, 2020, with a corresponding 59.7218 million yuan increase in "Contract Liabilities" and a 2.4964 million yuan increase in "Other Current Liabilities", without affecting opening retained earnings[73] Significant Related Party Transactions During the reporting period, the company engaged in two significant related party transactions: its wholly-owned subsidiary, Gansu Yasheng Seed Industry Co., Ltd., acquired 100% equity in Gansu Nongken Liangzhong and Huangyanghe Seed Industry from related parties, and the company terminated its plan to jointly establish Gansu Military-Civilian Integration Food Security Co., Ltd. with its controlling shareholder - The company's wholly-owned subsidiary, Yasheng Seed Industry, completed the acquisition of 100% equity in related parties Gansu Nongken Liangzhong Co., Ltd. and Gansu Huangyanghe Group Seed Industry Co., Ltd.[78] - The company terminated its plan to jointly establish Gansu Military-Civilian Integration Food Security Co., Ltd. with its controlling shareholder, Gansu Nongken Group, to reduce related party transactions[78] Social Responsibility The company actively fulfills its social responsibilities through initiatives in poverty alleviation, safety production, product quality, employee rights protection, environmental protection, and public welfare, having driven the development of 25,000 surrounding farming households and invested 4.9209 million yuan in poverty alleviation during the reporting period, while also promoting circular and low-carbon agriculture to reduce chemical fertilizer and pesticide use and enhance ecological protection - The company has driven the development of approximately 25,000 surrounding farming households, cultivating about 300,000 mu of advantageous crops through industrial and technical support, with an average annual direct benefit exceeding 100 million yuan[83] - In terms of environmental protection, the company promotes water-fertilizer integrated technology, reduces the use of chemical fertilizers and pesticides, increases organic fertilizer application, and strengthens agricultural film recycling to improve cultivated land quality and protect the ecological environment[88][90][91] Share Changes and Shareholder Information This section details changes in the company's ordinary shares and provides information on its shareholders and actual controller Shareholder and Actual Controller Information As of the end of the reporting period, the company had 155,843 ordinary shareholders, with Gansu Provincial Agricultural Reclamation Group Co., Ltd. as the controlling shareholder, holding a combined 24.58% stake with its concerted action party, and the actual controller being the Gansu Provincial People's Government State-owned Assets Supervision and Administration Commission Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | Gansu Provincial Agricultural Reclamation Group Co., Ltd. | 303,121,313 | 15.57 | | Gansu Provincial Agricultural Reclamation Asset Management Co., Ltd. | 175,371,852 | 9.01 | | Zhu Nengshun | 30,352,977 | 1.56 | | Central Huijin Asset Management Co., Ltd. | 13,578,400 | 0.70 | | China Securities Finance Co., Ltd. | 8,783,582 | 0.45 | - The controlling shareholder is Gansu Provincial Agricultural Reclamation Group Co., Ltd., and the actual controller is the Gansu Provincial People's Government State-owned Assets Supervision and Administration Commission[97][98] Directors, Supervisors, Senior Management, and Employees This section provides information on the company's board of directors, supervisors, senior management, and employee structure Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's board, supervisory board, and senior management team underwent significant changes, with Li Keshu elected as the new Chairman and Niu Jijun appointed as General Manager and elected as a Director, while the former Chairman, several directors, the Chairman of the Supervisory Board, and four Vice General Managers departed - Li Keshu was elected as the company's Chairman, and Niu Jijun was appointed as General Manager and elected as a Director[108] - Former Chairman Li Kehua, Director Bi Jin, Chairman of the Supervisory Board Li Fu, and four Vice General Managers (Li Keyin, Yin Tuting, Shen Xiaohong, Tang Liang) departed[108][109] Employee Information As of the end of the reporting period, the company had a total of 5,344 employees, with production personnel constituting the largest group at 2,961, and the vast majority (84.8%) holding college diploma or lower education levels Employee Professional Composition | Professional Category | Number of Persons | | :--- | :--- | | Production Personnel | 2,961 | | Sales Personnel | 166 | | Technical Personnel | 391 | | Financial Personnel | 254 | | Administrative Personnel | 1,034 | | Other | 538 | | Total | 5,344 | Corporate Governance This section provides an overview of the company's corporate governance practices and internal control effectiveness Overview of Corporate Governance During the reporting period, the company operated in strict compliance with relevant laws and regulations, continuously improving its corporate governance structure, holding 3 shareholder meetings and 11 board meetings to ensure standardized, objective, and scientific decision-making, with its governance practices aligning with CSRC regulations and receiving a standard unqualified opinion on its internal control audit report - During the reporting period, the company held 3 shareholder meetings and 11 board meetings, with its corporate governance complying with relevant regulations[115][116] - The company engaged Daxin Certified Public Accountants to audit its internal controls, receiving a standard unqualified opinion[119] Financial Report This section presents the company's audited financial statements and related notes for the reporting period Audit Report Daxin Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, identifying three key audit matters: revenue recognition from agricultural product sales, provision for inventory impairment, and provision for fixed asset impairment - The auditing firm is Daxin Certified Public Accountants, which issued a standard unqualified audit opinion[121] - Key audit matters include: - Revenue recognition from agricultural product sales: Due to revenue being a key performance indicator and inherent industry risks - Provision for inventory impairment: Due to high inventory book value, significant impact of impairment provision on financial statements, and involvement of significant management judgment - Provision for fixed asset impairment: Due to high fixed asset book value, significant impact of impairment provision on financial statements, and involvement of significant management judgment[122][123][124] Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the 2020 fiscal year - Financial statements include the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[130][133][136][142][147] Notes to Consolidated Financial Statements This section provides detailed explanations of key items in the financial statements, showing that at the end of 2020, the company's total assets were 8.339 billion yuan, total liabilities 4.324 billion yuan, operating revenue 3.132 billion yuan, and net profit -0.883 billion yuan, with specific details on accounts receivable, inventory, and fixed asset impairment provisions Period-End Balances of Key Asset and Liability Items (Consolidated) | Item | Period-End Balance (yuan) | | :--- | :--- | | Monetary Funds | 1,096,754,803.24 | | Accounts Receivable | 1,298,033,340.09 | | Inventory | 940,094,924.15 | | Fixed Assets | 932,749,729.56 | | Intangible Assets | 2,627,123,759.41 | | Short-term Borrowings | 1,229,435,139.37 | | Bonds Payable | 1,436,597,118.18 | - The book balance of accounts receivable at period-end was 1.519 billion yuan, with a bad debt provision of 0.221 billion yuan, representing a provision rate of 14.54%[248] - The book balance of inventory at period-end was 1.074 billion yuan, with an inventory impairment provision of 0.134 billion yuan, resulting in a book value of 0.940 billion yuan[271] - The original book value of fixed assets at period-end was 1.761 billion yuan, with an impairment provision of 0.120 billion yuan, resulting in a book value of 0.933 billion yuan[280] 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