HZSY(SH:600191)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥38,639,412.05, a decrease of 65.21% compared to ¥111,070,495.39 in 2019[20] - The net profit attributable to shareholders for 2020 was -¥125,302,443.18, representing a decline of 625.09% from ¥23,862,910.80 in 2019[20] - The basic earnings per share for 2020 was -¥0.2584, a decrease of 625.20% compared to ¥0.0492 in 2019[21] - The total assets at the end of 2020 were ¥1,786,359,303.93, down 11.93% from ¥2,028,357,784.50 at the end of 2019[20] - The net assets attributable to shareholders decreased by 10.92% to ¥1,686,575,498.72 at the end of 2020 from ¥1,893,356,309.43 at the end of 2019[20] - The cash flow from operating activities for 2020 was -¥7,907,285.64, an improvement from -¥11,029,242.86 in 2019[20] - The weighted average return on equity for 2020 was -7.00%, a decrease of 8.29 percentage points from 1.29% in 2019[21] - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of -¥134,236,124.60 for 2020, a decline of 605.30% from ¥26,565,740.33 in 2019[20] Revenue Discrepancies - In Q1, the company reported revenue of CNY 514,939.72, which was significantly lower than the previously disclosed figure of CNY 10,869,866.53, resulting in a discrepancy of CNY -10,354,926.81[24] - In Q2, the revenue was CNY 36,326,210.43, down from the previously reported CNY 49,091,624.69, reflecting a decrease of CNY -13,030,901.00[24] - For Q3, the reported revenue was CNY 1,211,593.61, compared to the previously disclosed CNY 24,183,728.11, indicating a substantial drop of CNY -22,972,134.41[25] Cash Flow Analysis - The cash flow from operating activities showed a negative CNY -5,078,830.75 in Q1, improved to CNY -284,786.01 in Q2, but turned negative again at CNY -11,567,377.13 in Q3, before recovering to CNY 9,023,708.25 in Q4[23] - Cash flow from operating activities for 2020 was a net outflow of ¥7,907,285.64, an improvement from a net outflow of ¥11,029,242.86 in 2019[147] - Cash flow from investing activities generated a net inflow of ¥31,249,166.31 in 2020, down from ¥124,390,153.19 in 2019[147] - Cash flow from financing activities resulted in a net outflow of ¥14,423,980.00 in 2020, compared to a net outflow of ¥136,978,010.62 in 2019[148] Industry Challenges - The company faced significant challenges in the sugar industry due to high production costs and oversupply, exacerbated by the global economic downturn caused by the COVID-19 pandemic[33] - The sugar production for the 2020/21 season was reported at 353.38 million tons, a decrease of 26.32 million tons compared to the previous year, with a sales rate of 41.62%, down by 10.48 percentage points[34] - The company has shifted its focus from beet sugar production to refining raw sugar, due to unfavorable market conditions and low profitability in the sugar industry[33] Shareholder Information - The company has not proposed any profit distribution plan or capital reserve transfer to increase share capital for the reporting period[4] - The company implemented a cash dividend of 0.15 RMB per 10 shares for the 2019 fiscal year, totaling 7,273,980 RMB distributed to shareholders[62] - The net profit attributable to ordinary shareholders for 2019 was 23,862,910.80 RMB, resulting in a dividend payout ratio of 30.48%[62] - The company reported a net loss of 125,302,443.18 RMB in 2020, with no dividends declared for that year[62] Governance and Management - The company has established a clear cash dividend policy to protect the rights of minority investors, as per regulatory guidelines[62] - The current auditor, Zhongzhun Accounting Firm, has been engaged for 13 years with an audit fee of 400,000 RMB[65] - The company has not made any changes to accounting policies or estimates during the reporting period[65] - The company has not reported any asset or project that failed to meet original profit forecasts during the reporting period[64] Employee and Board Structure - The total number of ordinary shareholders at the end of the reporting period is 42,080, down from 43,428 at the end of the previous month[79] - The total number of employees in the parent company is 454, with a combined total of 458 employees including major subsidiaries[98] - The professional composition includes 305 production personnel, 8 sales personnel, 80 technical personnel, 33 financial personnel, and 32 administrative personnel[98] - The company has a diverse board with members having extensive backgrounds in finance, law, and management, enhancing its governance[90] Financial Position - Total assets decreased from CNY 2,028,357,784.50 in 2019 to CNY 1,786,359,303.93 in 2020, a decline of approximately 11.93%[134] - Current assets decreased significantly from CNY 219,676,561.40 in 2019 to CNY 85,189,184.08 in 2020, a drop of about 61.19%[134] - Total liabilities decreased from CNY 135,001,475.07 in 2019 to CNY 99,783,805.21 in 2020, a decline of about 26.00%[135] - Shareholders' equity decreased from CNY 1,893,356,309.43 in 2019 to CNY 1,686,575,498.72 in 2020, a drop of approximately 10.94%[135] Audit and Compliance - The internal control audit report issued by Zhongjun Accounting Firm provided a standard unqualified opinion, affirming the company's financial statements' compliance with accounting standards[114][115] - The audit report emphasized the importance of communication with governance regarding significant audit findings and internal control deficiencies[131] - The financial statements were prepared in accordance with accounting standards, ensuring fair representation and necessary disclosures regarding the company's ongoing operations[125] Risk Management - The company faces risks from fluctuations in sugar prices and insufficient procurement of raw sugar, which could impact operational performance[59] - The company has maintained a consistent approach to risk management by allocating funds to general risk reserves, ensuring financial stability[159]