HZSY(SH:600191)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was CNY 111,070,495.39, representing a 69.82% increase compared to CNY 65,403,885.16 in 2018[21] - The net profit attributable to shareholders for 2019 was CNY 23,862,910.80, a significant turnaround from a loss of CNY 116,583,904.65 in 2018, marking a 120.47% increase[21] - The basic earnings per share for 2019 was CNY 0.0492, compared to a loss of CNY 0.2404 in 2018, reflecting a 120.47% improvement[23] - The company's total assets at the end of 2019 were CNY 2,022,276,786.27, a decrease of 4.49% from CNY 2,117,356,856.06 in 2018[22] - The net assets attributable to shareholders increased by 3.18% to CNY 1,887,275,311.20 at the end of 2019, up from CNY 1,829,095,766.90 in 2018[22] - The cash flow from operating activities showed a net outflow of CNY 11,029,242.86 in 2019, an improvement from a larger outflow of CNY 43,051,684.89 in 2018[21] - The company reported a net profit of CNY -291.68 million for its wholly-owned subsidiary, Baotou Huazi Sugar Reserve Warehouse Co., Ltd.[54] Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.15 per share, totaling CNY 7,273,980, which is 30.48% of the net profit attributable to shareholders[5] - The company did not implement a cash dividend plan for the reporting period due to a loss in 2018, with a net profit of -116,583,904.65 RMB[65] - In 2019, the company reported a net profit of 7,273,980.00 RMB, with a cash dividend of 0.1 RMB per share, representing 30.48% of the net profit attributable to shareholders[66] - The company has a clear cash dividend policy established in its articles of association to protect the rights of minority investors[65] - The company reported a profit distribution of RMB -4,849,320.00 to shareholders during the reporting period[185] Operational Adjustments and Market Strategy - The company has shifted its focus from beet sugar production to refining raw sugar due to unfavorable market conditions, which has led to consistent losses in recent years[33] - The company is actively adjusting its industrial structure in response to the challenges in the sugar market, including collaborating with other sugar producers for raw sugar processing[32] - The company aims to expand its sugar production based on favorable conditions in Inner Mongolia, including high-quality sugar beet cultivation and expected direct subsidies for sugar beet planting[57] - The company plans to develop its logistics business and strengthen its reserve warehouse operations, leveraging its geographical advantages and existing infrastructure[58] - The company is seeking diversification in its operations to create new profit growth points amid increasing competition in its main business[58] Financial Health and Liabilities - The company's total liabilities decreased significantly, with a notable reduction in short-term borrowings, reflecting improved financial health[49] - The total liabilities decreased from CNY 288,261,089.16 in 2018 to CNY 135,001,475.07 in 2019, a significant reduction of about 53.1%[153] - The company's total liabilities decreased to ¥223,217,585.93 in 2019 from ¥374,612,472.02 in 2018, reflecting a reduction of approximately 40.5%[159] Shareholder Information - The total number of common shareholders at the end of the reporting period was 33,598, down from 38,016 at the end of the previous month[91] - The top ten shareholders hold a total of 268,000,000 shares, with the largest shareholder, Baotou Grassland Sugar Industry (Group) Co., Ltd., owning 152,717,960 shares, representing 31.49% of the total[93] - The company does not have any preferred shareholders with restored voting rights at the end of the reporting period[94] - The controlling shareholder is Baotou Grassland Sugar Industry (Group) Co., Ltd., established on June 6, 1996, primarily engaged in the production of electronic components and agricultural products[94] Governance and Management - The company has maintained a stable management structure with no significant changes in shareholding among the board members during the reporting period[104] - The company is focused on maintaining strong governance practices with independent directors actively involved in oversight[107] - The overall compensation structure reflects the company's commitment to aligning management incentives with shareholder interests[104] Audit and Compliance - The company has engaged Zhongzhun Accounting Firm for auditing services, with a fee of 400,000 RMB for the year[72] - The financial statements for the year ended December 31, 2019, fairly reflect the company's financial position and operating results in accordance with accounting standards[132] - The company has not reported any significant deficiencies in internal control during the reporting period[127] Cash Flow and Investments - The cash flow from investing activities generated a net inflow of ¥124.39 million, compared to ¥51.40 million in 2018[166] - The company reported a significant investment income of approximately ¥100.07 million in 2019, compared to a loss of ¥63.17 million in 2018[162] - The company received 137,500,000.00 RMB from borrowings in 2019, which was fully utilized for debt repayment[169] Employee and Workforce - The total number of employees in the parent company is 483, with a combined total of 490 employees across the parent and major subsidiaries[115] - The company strictly adheres to national policies and its own wage standards, providing employees with labor protection and welfare benefits, including five social insurances and one housing fund[116] - The company conducts classified training for employees at different levels and positions, enhancing professional skills and personal qualities, as well as management knowledge and capabilities[117]