GUANNONG SHARE(SH:600251)2022-03-25 16:00Financial Performance - In 2021, the company's operating revenue increased by 56.62% year-on-year, reaching approximately CNY 4.34 billion, primarily due to an increase in inventory and cotton trade volume [20]. - The net profit attributable to shareholders increased by 22.01% year-on-year to approximately CNY 301.35 million, with a significant rise in investment income by 96.13% due to higher sales prices of potassium sulfate [22]. - The net cash flow from operating activities surged by 107.74% year-on-year, amounting to approximately CNY 123.61 million, attributed to seasonal production cycles and reduced raw material costs [22]. - Basic earnings per share rose by 20.75% to CNY 0.38, while the weighted average return on equity increased by 0.93 percentage points to 11.68% [22]. - The company's total assets at the end of 2021 were approximately CNY 7.12 billion, reflecting an 11.12% increase from the previous year [20]. - The net assets attributable to shareholders increased by 14.04% year-on-year, reaching approximately CNY 2.75 billion [20]. - The company achieved a revenue of CNY 4,337,189,310.41 in 2021, representing a 56.62% increase compared to CNY 2,769,325,551.73 in the previous year [46]. Corporate Governance - The company has a comprehensive corporate governance structure, with all directors and supervisors ensuring the report's integrity [3]. - The company has confirmed that all board members attended the board meeting, ensuring collective responsibility for the report's accuracy [4]. - The company has not violated decision-making procedures for external guarantees, indicating strong governance practices [8]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting the importance of investment risk awareness [7]. - The company was recognized as an "A" level enterprise in the State-owned Enterprise Reform Action by the State Council, highlighting its governance effectiveness [39]. - The company has committed to continuous improvement in corporate governance and compliance with legal regulations to enhance operational standards and protect shareholder rights [95]. Risk Management - The company has established a comprehensive risk control system to enhance operational compliance and safety management [31]. - The company recognizes risks from external environmental changes, including the ongoing COVID-19 pandemic and geopolitical tensions, and is preparing to adapt to these uncertainties [88]. - The company faces market risks due to rising international commodity prices, which could impact product pricing and profit margins if adverse changes occur in macroeconomic conditions [89]. - The company is addressing raw material price volatility, which has increased production costs, by enhancing supply chain management and optimizing production processes [91]. - The company is managing financing and debt risks by maintaining a reasonable debt ratio and improving financial management to ensure sustainable growth and repayment capabilities [93]. Investment and Expansion - The company plans to continue expanding its market presence and enhancing product offerings in response to favorable market conditions [22]. - The company invested 180 million RMB in the first phase of a tomato product project, with a production capacity of 25,000 tons per year [29]. - The company plans to issue convertible bonds of up to 1.1 billion RMB to fund deep processing projects [31]. - The company is focused on resolving competition issues with Yongrui Supply through the equity transfer [101]. - The company plans to enhance its supply chain by focusing on "extending, supplementing, and strengthening" its core business areas, particularly in tomato and sugar beet production [83]. Research and Development - A total of 39.67 million RMB was allocated for R&D and technological transformation, resulting in 28 patent applications [30]. - Research and development expenses increased by 169.84% to CNY 7,310,990.68, compared to CNY 2,709,330.98 in the previous year [46]. - The company plans to enhance tomato processing technology and develop high-value-added products, indicating a commitment to market expansion and innovation [61]. - The number of R&D personnel is 62, representing 7.76% of the total workforce, highlighting the company's investment in talent [61]. Environmental Compliance - The company processed a total of 90,000 cubic meters of wastewater in 2021, with a chemical oxygen demand (COD) discharge of 1.671 tons and ammonia nitrogen discharge of 0.083 tons, all meeting environmental standards [150]. - The company has obtained all necessary environmental impact assessments and discharge permits for its projects, with the latest permit issued on April 22, 2020 [152]. - The company has not faced any environmental penalties in 2021, indicating effective compliance with environmental regulations [150]. - The company has implemented a comprehensive monitoring system for its emissions, ensuring real-time compliance with environmental standards [151]. Shareholder Relations - The company plans to distribute a cash dividend of 0.40 RMB per 10 shares, totaling approximately 31.26 million RMB based on a total share capital of 781,431,283 shares [6]. - The company has established a three-year shareholder return plan for 2021-2023, ensuring a transparent and compliant profit distribution policy [136]. - The company has implemented a cash dividend policy that aligns with legal regulations and has been approved by the shareholders' meeting, ensuring protection of minority shareholders' rights [135]. - The company has committed to ensuring the independence of its operations and maintaining the interests of minority shareholders following the acquisition by Lvyuan State-owned Assets [164]. Financial Management - The company has significant capital investment needs, with approximately CNY 600 million required for projects starting in 2022, including a 300,000-ton cotton seed processing project and a 25,000-ton tomato product project [138]. - The company is focused on maintaining financial stability by reserving funds for debt repayment and operational liquidity to reduce financial risks [138]. - The company has a structured approach to determining the remuneration of its directors and senior management based on board resolutions and performance assessments [112]. - The company has implemented a salary management method for senior management personnel, which includes a basic annual salary and a performance-based annual salary [112].