Dunhuang Seed(SH:600354)2021-04-28 16:00Financial Performance - In 2020, the company achieved a net profit of CNY 25,381,945.77, with a net profit attributable to shareholders of CNY 29,542,933.97, compared to a loss of CNY 169,953,913.09 in 2019[5]. - The company's operating revenue for 2020 was CNY 954,210,631.49, representing a decrease of 19.39% from CNY 1,183,712,575.19 in 2019[22]. - The company's net profit for 2020 was -23,494,237.97 RMB, a decrease from -25,320,028 RMB in 2019[27]. - The basic earnings per share for 2020 was CNY 0.0560, recovering from a loss of CNY -0.3220 in 2019[24]. - The weighted average return on equity for 2020 was 5.37%, a significant recovery from -27.65% in 2019[24]. - The total profit for 2020 reached CNY 31,899,443.18, compared to a total loss of CNY 211,790,527.68 in the previous year[158]. - The total comprehensive income for the year was CNY 25,381,945.77, compared to a comprehensive loss of CNY 215,861,822.75 in 2019[156]. - The company reported a net profit of approximately ¥29.54 million for 2020, with no cash dividends distributed[72]. Revenue and Costs - The company's operating revenue for the reporting period was CNY 954.21 million, a decrease of 19.39% compared to the previous year, while operating costs decreased by 22.69% to CNY 819.78 million[37]. - The total operating costs for 2020 were CNY 1,048,072,868.60, down from CNY 1,355,526,744.29 in 2019, reflecting a reduction of 22.6%[154]. - The gross profit margin for the seed segment was 21.89%, with a slight increase of 0.01 percentage points year-on-year, while the food and trade segment's gross profit margin was 8.30%, an increase of 3.18 percentage points[39]. Assets and Liabilities - The total assets at the end of 2020 were CNY 1,664,080,442.33, down 15.30% from CNY 1,964,665,507.74 in 2019[23]. - The company's total liabilities decreased to CNY 630,039,101.25 in 2020 from CNY 822,022,899.71 in 2019, representing a reduction of 23.4%[152]. - The company's equity attributable to shareholders increased to CNY 584,814,489.18 in 2020 from CNY 520,441,500.74 in 2019, an increase of 12.3%[152]. - The company's current assets totaled CNY 1,059,885,787.93, slightly down from CNY 1,084,634,238.89 in 2019, indicating a decrease of about 2.3%[145]. - Accounts receivable decreased from CNY 195,796,075.22 in 2019 to CNY 92,678,564.72 in 2020, indicating a decline of approximately 52.7%[145]. Cash Flow - The company's cash flow from operating activities was CNY 118,617,083.99, a significant improvement from a negative cash flow of CNY -2,746,985.02 in 2019[22]. - The net cash flow from investment activities improved to ¥200,939,465.19 in 2020 from a negative cash flow of ¥33,300,575.43 in 2019[162]. - The ending balance of cash and cash equivalents increased to ¥495,926,779.79 in 2020 from ¥337,154,207.03 in 2019, showing a growth of about 47%[163]. Industry Performance - The seed industry generated revenue of 389.76 million RMB in 2020, an increase of 51.45 million RMB compared to the previous year[34]. - The food and trade industry reported revenue of 498.13 million RMB in 2020, a decrease of 278.90 million RMB from the previous year[34]. - The seed industry accounted for 40.85% of total revenue, while the food and trade sector contributed 52.51%[31]. Research and Development - R&D expenses totaled ¥9,728,228.20, accounting for 1.02% of operating revenue[48]. - The company completed the application and advancement of 30 new corn varieties during the reporting period, with 2 varieties completing the national testing process and 4 varieties completing the provincial testing process[35]. - The company is focusing on innovation and upgrading its business model in response to increasing competition in the food industry[32]. Strategic Initiatives - The company aims to enhance its proprietary seed variety development and expand its operational scale in the seed industry[34]. - The company is committed to advancing digital agriculture and utilizing big data to improve market oversight in the seed industry[64]. - The company plans to actively utilize idle assets through disposal, leasing, and cooperation to improve asset utilization[68]. Social Responsibility - The company aims for a 10% increase in per capita net income for poverty alleviation households in 2020 compared to the previous year, with an estimated average income of 6,110 RMB per person[86]. - The company provided 4,200 RMB for insurance coverage for five poverty alleviation households, including protection against major diseases and natural disaster risks[88]. - The company received the Outstanding Contribution Award for Poverty Alleviation from the Gansu Provincial Listed Companies Association in April 2020[91]. Legal and Compliance - The company is involved in a lawsuit with Dunhuang Seed Industry against Jilin Ping An Seed Industry Co., Ltd. for a contract dispute, with a claim amount of 22,496,516.76 RMB[77]. - The company has not disclosed any major related party transactions during the reporting period[80]. - There are no significant litigation or arbitration matters reported for the year[79]. Governance and Management - The company has a diverse board of directors with varying ages and backgrounds, with total compensation for the chairman reported at 340,300 RMB[112]. - The management team consists of experienced professionals with backgrounds in agriculture, finance, and corporate governance, ensuring effective leadership[114]. - The company has established a fair and transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, linking income to performance[126].