Dunhuang Seed(SH:600354)2022-05-17 16:00Financial Performance - In 2021, the company achieved a net profit of CNY 42,041,503.37, with a net profit attributable to shareholders of CNY 9,051,140.60, representing a decrease of 69.36% compared to the previous year[5]. - The company's operating revenue for 2021 was CNY 922,131,315.29, down 3.36% from CNY 954,210,631.49 in 2020[20]. - The basic earnings per share decreased by 69.29% to CNY 0.0172 from CNY 0.0560 in 2020[22]. - The net cash flow from operating activities was CNY 111,667,157.93, a decrease of 5.86% compared to CNY 118,617,083.99 in 2020[20]. - The company reported a net loss of CNY 44,063,149.87 for the parent company in 2021, leading to a cumulative undistributed profit of CNY -973,336,748.07 at the end of the reporting period[5]. - The company did not propose any profit distribution for the reporting period due to the negative retained earnings[5]. - The weighted average return on equity decreased to 1.48% from 5.37% in the previous year, reflecting a decline of 3.89 percentage points[22]. - Non-recurring gains totaled 32.77 million RMB in 2021, significantly lower than the previous year's 174.52 million RMB[27]. - The company reported a total revenue of 10,612 million for the year, with a year-on-year increase of 11%[78]. - The company reported a total comprehensive income of CNY 40.28 million for 2021, compared to CNY 25.38 million in 2020, an increase of 58.6%[155]. Revenue Breakdown - The seed industry achieved a revenue of 605.637 million RMB in 2021, representing a growth of 55.39% compared to the previous year[29]. - The food and trade industry reported a revenue of 199.6872 million RMB in 2021, a decrease of 59.91% year-on-year due to the impact of the COVID-19 pandemic and rising costs[30]. - The company's seed industry revenue accounted for 66% of total revenue, while the food and trade segment contributed 21.65%[34]. - During the reporting period, the company produced 4,638 million kg of seeds and sold 6,243 million kg, reflecting a production increase of 31.51% and a sales increase of 35.95% compared to the previous year[40]. Cost and Expenses - The overall operating revenue decreased by 3.36% to 922,131,315.29 RMB, while operating costs decreased by 11.63% to 724,472,735.84 RMB[38]. - Research and development expenses increased by 109.39% to 14,824,329.01 RMB, indicating a focus on innovation and product development[38]. - The gross margin for dehydrated vegetable products decreased by approximately 10% year-on-year, leading to operational losses in this segment[30]. - The food and trade segment saw a significant decline in revenue, with a 59.91% decrease in gross profit margin, resulting in a gross profit margin of 15.16%[38]. - The company’s financial expenses totaled 22,889,617.05 CNY, down from 35,782,201.54 CNY in the previous year[45]. Market and Industry Trends - The corn planting area in China increased to 64.4 million acres in 2021, with a total production of 274 million tons, reflecting growth rates of 4.2% and 5.1% respectively[32]. - The company anticipates a growing market for functional foods, particularly tomato and onion powder products, driven by increasing health awareness among consumers[63][64]. - The company faces market risks due to accelerated variety updates and intense competition, with strategies in place to enhance research and marketing efforts[67]. - The impact of the COVID-19 pandemic on food product exports has been significant, prompting the company to adapt its sales strategies accordingly[67]. Strategic Initiatives - The company implemented cost control measures and precision marketing to improve operational efficiency amid fierce market competition[29]. - The company aims to enhance product quality and adjust the internal and external sales structure to increase product added value[34]. - The company is actively pursuing innovation to drive industry transformation and upgrade its business model[34]. - The company plans to focus on expanding its seed industry, improving operational quality, and enhancing risk management in the food trade sector in 2022[65][66]. - The company aims to improve operational efficiency by 10% through digital transformation initiatives[80]. Governance and Compliance - The company held 5 supervisory board meetings during the reporting period, ensuring compliance with laws and regulations to protect shareholder interests[71]. - The company has established a fair and transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, linking their income to performance[71]. - The company revised its insider information management system during the reporting period to enhance confidentiality and prevent insider trading[72]. - The company has established specialized committees, including an audit committee, nomination committee, compensation and assessment committee, and strategic committee[92]. Legal Matters - The company reported a lawsuit involving a contract dispute with a claim amount of approximately ¥22.5 million[117]. - Another lawsuit related to a sales contract dispute has a claim amount of approximately ¥49.6 million[117]. - A third lawsuit regarding a sales contract dispute has a claim amount of approximately ¥41.6 million[117]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 75,076, an increase from 70,009 at the end of the previous month[125]. - The largest shareholder, Jiuquan Modern Agriculture (Holding Group) Co., Ltd., holds 68,170,168 shares, representing 12.92% of the total shares[128]. - The company has not engaged in any cash asset management or entrusted loan activities during the reporting period[123]. - The company has not provided any guarantees to shareholders or related parties during the reporting period[122]. Assets and Liabilities - Total assets at the end of the reporting period amounted to 1,590,000,000.00 yuan, with a decrease of 1.02% compared to the previous period[52]. - The company's total equity as of December 31, 2021, was CNY 538,994,548.47, down from CNY 584,814,489.18 in 2020, indicating a decrease of approximately 7.83%[151]. - Total liabilities decreased to CNY 431,825,949.45 in 2021 from CNY 630,039,101.25 in 2020, a reduction of about 31.56%[151]. - The company reported a total of CNY 149,994,337.58 in contract liabilities for 2021, slightly up from CNY 145,193,683.39 in 2020, an increase of about 5.0%[146].