GUANNONG SHARE(SH:600251)2019-03-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 2,174,777,459.60, an increase of 35.73% compared to CNY 1,602,327,485.38 in 2017[19]. - Net profit attributable to shareholders for 2018 was CNY 94,612,828.13, up 11.21% from CNY 85,073,450.08 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 67,826,762.33, a decrease of 4.86% compared to CNY 71,293,459.24 in 2017[19]. - The net cash flow from operating activities was -CNY 181,118,077.90, an improvement of 79.24% from -CNY 872,501,499.76 in the previous year[19]. - The company's total assets at the end of 2018 were CNY 6,212,818,770.43, representing a 23.13% increase from CNY 5,045,660,131.78 at the end of 2017[19]. - The net assets attributable to shareholders at the end of 2018 were CNY 2,023,747,777.73, an increase of 3.31% from CNY 1,958,846,660.73 in 2017[19]. - Basic earnings per share for 2018 were CNY 0.1206, an increase of 11.25% from CNY 0.1084 in 2017[20]. - The weighted average return on equity for 2018 was 4.75%, an increase of 0.33 percentage points from 4.42% in 2017[20]. Dividend Distribution - The company plans to distribute a cash dividend of 0.13 RMB per 10 shares, totaling 10,202,946.10 RMB based on the total share capital of 784,842,008 shares as of the end of 2018[7]. - The company distributed a cash dividend of CNY 0.13 per 10 shares in 2018, totaling CNY 10.20 million[80]. - The company has not proposed a cash profit distribution plan for 2018 despite positive profits available for distribution[81]. - The company has committed to a stable profit distribution policy, prioritizing cash dividends, with a minimum of 10% of the distributable profits allocated annually, and a cumulative distribution of at least 30% of the average annual distributable profits over the last three years[87]. Operational Highlights - The main business includes processing and sales of tomatoes, cotton, and sugar beets, with tomato processing capacity at 60,000 tons for bulk tomato paste and 200,000 tons for small packaged products[28]. - The company holds a 20.3% stake in Guotou Luokai, a 25.28% stake in Guodian Kaidu River, and a 5.5% stake in Korla Bank, which are key investment projects supporting its main business[29]. - The company has the largest single-unit processing capacity for tomatoes in China, with a daily processing capability of 9,750 tons[33]. - The sugar production capacity is 5,000 tons per day, utilizing advanced German equipment for key processes[33]. - The company achieved a 100% inspection pass rate for its products, meeting and exceeding national standards[36]. Market and Industry Insights - The global tomato product trade has been growing rapidly, with China's position becoming increasingly significant in the market[30]. - The company anticipates potential positive factors for cotton prices in 2019, despite recent market challenges[30]. - The tomato industry in Xinjiang is a major contributor, with the region being the third-largest tomato sauce production area globally, accounting for approximately 25% of the world's tomato sauce trade[70]. Social Responsibility and Community Engagement - The company donated CNY 4 million to a local elderly care institution and provided support to impoverished households, enhancing its social responsibility profile[39]. - The company invested 275,000 CNY to provide 250 breeding ewes to 25 impoverished households, aiming to enhance their income[120]. - The company aims to provide job placements for 60 seasonal workers in the sugar and tomato industries, generating additional income of CNY 15,000 per worker[122]. - The company has established a poverty alleviation work team to assist in the poverty alleviation efforts of the 51st regiment[119]. Environmental Compliance and Sustainability - Green Yuan Sugar's wastewater treatment facility operated for 76 days in 2018, treating 378,185.76 tons of wastewater, with COD emissions of 21.41 tons and ammonia nitrogen emissions of 2.12 tons, all meeting national discharge standards[129]. - The company has implemented a comprehensive wastewater treatment process combining anaerobic and aerobic methods to ensure compliance with environmental standards[129]. - All subsidiaries have reported no instances of exceeding environmental protection regulations during the operational period[129]. Governance and Compliance - The company received a standard unqualified audit report from Zhongshun Hua Certified Public Accountants[7]. - The company and its controlling shareholders adhered to the principles of honesty and integrity, fulfilling all commitments without any abuse of rights or harm to the interests of the company and other shareholders during the reporting period[95]. - The company has established a comprehensive governance structure, adhering to relevant laws and regulations to improve operational standards[161]. Future Outlook and Strategic Initiatives - In 2019, the company aims to achieve a sales revenue of 5 billion yuan, representing a 100% year-on-year growth, and a net profit of 150 million yuan, reflecting a 50% increase[74]. - The company plans to enhance its agricultural resource advantages and focus on the dual strategy of "main business + investment" to drive sustainable development[73]. - The company is committed to increasing R&D investment in new products and technologies to adapt to market changes and enhance competitiveness[70].