LHG(SH:600186)2021-03-30 16:00Financial Performance - In 2020, the company's operating income was CNY 1,654,638,589.14, a decrease of 2.81% compared to CNY 1,702,510,415.08 in 2019[24]. - The net profit attributable to shareholders of the listed company was CNY 74,286,138.33, an increase of 7.30% from CNY 69,230,596.66 in 2019[24]. - The net profit after deducting non-recurring gains and losses was CNY 68,271,976.85, compared to a loss of CNY 261,914,958.69 in 2019[24]. - The net cash flow from operating activities was negative CNY 794,229,165.46, showing a significant decline from negative CNY 95,910,673.00 in 2019[24]. - As of the end of 2020, the net assets attributable to shareholders of the listed company were CNY 385,307,198.86, an increase of 23.92% from CNY 310,928,628.43 at the end of 2019[24]. - Total assets decreased by 30.14% to CNY 1,503,783,979.79 from CNY 2,152,656,203.22 in 2019[24]. - Basic earnings per share remained at CNY 0.05, unchanged from 2019[27]. - The weighted average return on net assets was 21.34%, indicating a strong performance[27]. - The company achieved total sales revenue of CNY 1.655 billion in 2020, with sales of monosodium glutamate at 117,600 tons, flour at 118,200 tons, and chicken essence at 24,800 tons[41]. - The net profit attributable to shareholders was CNY 74.29 million, marking a turnaround from previous losses[41]. Operational Highlights - The company has established a comprehensive sales network across China, with sales representatives in major cities and distribution points in most counties[36]. - The company has a strong brand advantage, recognized as a leading enterprise in the agricultural industry and awarded multiple quality accolades[37]. - The company maintains a full industry chain production model for its key products, including monosodium glutamate and chicken essence, while shifting towards semi-finished product processing due to rising production costs[36]. - The company has a national-level technology center and a post-doctoral research station, accumulating rich experience and proprietary technologies in the production of its products[37]. - The company’s sales strategy primarily relies on distributors, supplemented by direct sales, targeting a diverse consumer base[36]. Research and Development - R&D expenses surged by 1,700.39% to CNY 17.72 million, reflecting increased investment in new product development following the company's restructuring[46]. - Total R&D investment amounted to ¥33,114,340.40, representing 2% of total revenue, with 136 R&D personnel making up 8.69% of the workforce[56]. - The company plans to develop a "5+N" product system, focusing on upgrading MSG to amino acid seasonings and expanding the range of compound seasonings and liquid seasonings[79]. - Research and development investments have increased by 30%, focusing on sustainable practices and advanced technology[147]. Financial Management - The company did not distribute profits or increase capital reserves in 2020[7]. - The company received approval for a private placement of up to 413,977,186 new shares to enhance its capital structure and support project development[41]. - The company has not proposed any cash profit distribution plan despite having positive distributable profits for the reporting period, indicating a focus on reinvestment[86]. - The total remuneration paid to all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 3.5141 million yuan[153]. Legal and Compliance - The company did not experience any significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[95]. - The company is currently involved in multiple lawsuits, with a total amount involved of approximately ¥2,500,000, including disputes over contracts and advertisements[97]. - The company has ongoing litigation related to trademark disputes with the National Intellectual Property Administration, with cases still under review[97]. - The company has not faced any risks of suspension or termination of its listing during the reporting period, ensuring continued market presence[94]. Environmental Management - The company has established a comprehensive environmental management system, adhering to ISO14001 standards, to enhance resource utilization and reduce environmental impact[112]. - Wastewater discharge standards for COD and ammonia nitrogen are set below national and local standards, with COD controlled under 100 mg/L and ammonia nitrogen under 10 mg/L[112]. - The company operates a wastewater treatment facility with a capacity of 5,000 m³/day, currently processing 600 m³ of industrial wastewater daily[113]. - The company has implemented a pollution emergency response plan to manage environmental incidents effectively[117]. Market Strategy - The company has a strong focus on the compound seasoning market, which is expected to grow due to changing consumer preferences towards healthier and more natural products[66]. - The company plans to leverage its brand, channel, and technological advantages to capture opportunities in the compound seasoning market[66]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[147]. - A strategic acquisition of a local competitor is anticipated to enhance the company's product offerings and increase market penetration by 5%[147]. Future Outlook - The company plans to complete the relocation of production and auxiliary units by mid-2021 and finish the new office building by the third quarter[76]. - The management team highlighted the importance of adapting to market trends and consumer preferences[142]. - The company has set ambitious performance guidance for the next fiscal year, aiming for a revenue growth of over 15%[142]. - The company is committed to enhancing shareholder value, with plans to initiate a dividend payout of 0.5 per share starting next quarter[147].