ZSIG(SH:600313)2021-04-13 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 27,094,534.97 CNY, a 49% increase compared to 2019[7]. - The company's operating revenue for 2020 was 3,662,548,774.43 CNY, representing a decrease of 28.68% from 2019[23]. - The net cash flow from operating activities increased by 276.98% to 151,676,344.87 CNY in 2020 compared to 2019[23]. - The total assets of the company at the end of 2020 were 3,320,001,240.25 CNY, a 7.50% increase from the end of 2019[23]. - The company's net assets attributable to shareholders increased by 1.88% to 1,467,297,044.45 CNY at the end of 2020[23]. - Basic earnings per share for 2020 were 0.0250 CNY, up 48.81% from 2019[26]. - The company reported a significant turnaround in net profit after deducting non-recurring gains and losses, achieving 566,347.73 CNY in 2020 compared to a loss of 14,667,057.42 CNY in 2019, marking a 103.86% improvement[23]. - The company plans not to distribute dividends for 2020 due to accumulated undistributed profits being negative[7]. - The weighted average return on net assets for 2020 was 1.86%, an increase of 0.59 percentage points from 2019[26]. Revenue and Sales - In Q1 2020, the company reported a revenue of CNY 307.93 million, which increased to CNY 1.38 billion in Q4 2020, showing a significant growth trend[9]. - The net profit attributable to shareholders was negative in Q1 2020 at CNY -10.25 million, but turned positive to CNY 32.39 million by Q4 2020[9]. - The net cash flow from operating activities was CNY 29.57 million in Q1 2020, with a notable increase to CNY 179.71 million in Q4 2020[9]. - The company achieved a revenue of 3.663 billion yuan in 2020, a year-on-year decrease of 28.68%[46]. - The seed business generated a revenue of 617 million yuan in 2020, with a year-on-year growth of 1.98%[46]. - The company sold 11,700 tons of corn seeds in 2020, resulting in a revenue of 143 million yuan, a year-on-year decline of 17.60%[46]. - The company sold 120.67 million tons of fertilizers in 2020, generating revenue of CNY 2.29 billion, a year-on-year decline of 39.55%[50]. - The company sold 11.97 million tons of wheat seeds in 2020, with revenue of CNY 354 million, a slight decrease of 0.33% year-on-year[49]. - The company sold 1.09 million tons of rice seeds in 2020, achieving revenue of CNY 112 million, a year-on-year increase of 2.04%[49]. Business Strategy and Operations - The core business focuses on the R&D, production, and sales of crop seeds, with a significant emphasis on corn, wheat, and rice seeds[36]. - The company is focusing on transforming from a seed supplier to an integrated agricultural service provider, offering comprehensive services including machinery, agricultural inputs, planting plans, storage, processing, and financial services[39]. - The company is adapting to market changes by developing direct sales to large agricultural operators and integrating services across the agricultural supply chain[36]. - The company has five subsidiaries recognized as "China Seed Industry Credit Backbone Enterprises" and four with national "breeding, propagation, and promotion integration" production qualifications[39]. - The company is enhancing its research and development capabilities, with a strong team and advanced research facilities, contributing to the introduction of new crop varieties[44]. - The company is actively expanding its market presence and enhancing customer service to maintain relationships with major clients while supporting the development of small and medium-sized customers[40]. - The company is exploring the integration of high-quality resources in the industry and related sectors to promote order agriculture and modern agricultural service systems[44]. - The company is facing increased market competition due to a supply-demand imbalance in the seed market, leading to intensified competition among seed enterprises[39]. Research and Development - The total R&D investment amounted to CNY 647.78 million, representing 1.77% of operating revenue[75]. - The company’s research and development expenses increased slightly by 0.72% to approximately ¥34.51 million compared to the previous year[60]. - The number of R&D personnel was 73, accounting for 6.82% of the total workforce[75]. - The company aims to enhance its biological breeding capabilities and address key technological challenges to support national food security[96]. - The company intends to enhance its technological innovation capabilities by collaborating with domestic and international research institutions to develop competitive green varieties[99]. Legal and Compliance Issues - The company is involved in a significant lawsuit regarding a debt dispute with Yichang Jiahua Real Estate Co., with a claim for repayment of CNY 43.4 million plus overdue interest[135]. - The company has a debt recovery case involving Yichang Jiahua Real Estate Co., with properties valued at approximately CNY 52.5 million being used to offset debts, but the recovery timeline remains uncertain[138]. - The company has initiated legal actions to recover CNY 22.79 million owed by Guo Wenjiang, with a court ruling requiring him to repay CNY 20.81 million plus penalties[138]. - The company has engaged in multiple legal proceedings to secure compensation and protect its financial interests, indicating a proactive approach to debt recovery[138]. - 河南农化 has outstanding receivables of 74,333.78 CNY from Shandong Qiaochang Chemical Co., Ltd. as of October 31, 2019[142]. - 河南农化 has been awarded a court judgment to receive 1,182,455.03 CNY from Shandong Yingtai for unpaid project fees, with 786,000 CNY already paid[142]. Environmental and Social Responsibility - The company has implemented various environmental protection measures, including waste gas and wastewater treatment, achieving compliance with discharge standards[195]. - The company has constructed facilities for the production of 10,000 tons of MEA, 10,000 tons of DEA, and 1,000 tons of Quinclorac, all passing environmental protection acceptance[196]. - The company has developed an emergency response plan for environmental incidents, filed with local ecological environment authorities[197]. - The company’s financial performance reflects a commitment to both profitability and social responsibility through targeted community support[182]. - The company invested a total of 24.05 million in poverty alleviation projects, with 1 project initiated[186]. - The company established a standardized production demonstration base for brewing wheat in Xiaoxian County, enhancing local agricultural productivity[182].