XTAD(SH:600359)2021-04-09 16:00Financial Performance - The company's operating revenue for 2020 was CNY 556,230,065.25, a slight increase of 0.99% compared to CNY 550,803,077.66 in 2019[19]. - The net profit attributable to shareholders of the listed company reached CNY 38,241,556.44, representing a significant increase of 359.35% from CNY 8,325,227.07 in the previous year[19]. - The net cash flow from operating activities was CNY 81,179,775.35, a substantial increase from CNY 562,306.67 in 2019, marking a growth of 14,336.92%[19]. - The total assets at the end of 2020 were CNY 1,751,879,686.69, a slight decrease of 0.17% from CNY 1,754,784,560.73 in 2019[19]. - The net assets attributable to shareholders of the listed company increased by 11.50% to CNY 493,959,150.11 from CNY 443,022,535.59 in 2019[19]. - Basic earnings per share for 2020 were CNY 0.10, a 400% increase compared to CNY 0.02 in 2019[20]. - The weighted average return on net assets rose to 8.16%, an increase of 6.34 percentage points from 1.82% in 2019[20]. - The company reported a quarterly revenue of CNY 272,551,458.96 in Q4 2020, contributing significantly to the annual total[21]. - The net profit attributable to shareholders in Q4 2020 was CNY 25,631,166.6, indicating strong performance in the last quarter[21]. - The company reported a non-recurring profit of CNY 36,824,795.76 in 2020, compared to a loss of CNY 101,389,731.47 in 2019[24]. Business Operations - The company’s core business includes dairy processing and sales, seed processing and sales, and licorice deep processing, with significant contributions from subsidiaries[29]. - The dairy business primarily operates through Xin Nong Dairy, focusing on milk production and sales, with a production model based on market demand[29]. - The seed processing business is conducted through Tahe Seed Industry, with a focus on cotton and rice seeds, utilizing a "company + base + cooperative" model for seed breeding[30]. - The licorice product line is managed by Xin Nong Licorice, producing various licorice extracts and derivatives, with production plans adjusted based on market trends[30]. - The company’s competitive advantage lies in its regional agricultural resources and a strong supply chain in agricultural production materials and deep processing[33]. - The company aims to enhance its core competitiveness and scale through agricultural industrialization, benefiting from over ten years of experience in the industry[33]. Market Trends - The overall dairy industry in China shows significant growth potential, with low per capita consumption levels[31]. - The seed industry is currently facing challenges due to declining planting areas and rapid seed renewal rates[31]. - The licorice market has a wide range of applications in pharmaceuticals, food, and cosmetics, with over 100 compounds extracted from licorice[31]. Financial Management - Operating costs decreased by 9.97% to 418.88 million RMB, primarily due to staff reductions and lower management expenses[39]. - Sales expenses dropped significantly by 63.79% to 19.66 million RMB, attributed to the implementation of three institutional reforms[39]. - The company achieved a gross margin increase in the industrial sector by 15.62 percentage points, with a gross margin of 22.39%[41]. - Total costs for the period amounted to 413,672,267.99, a decrease of 10.68% compared to 463,121,191.26 in the same period last year[46]. - Direct materials accounted for 80.50% of total costs in the industrial sector, down from 83.50% year-over-year[46]. - The manufacturing expenses in the industrial sector increased by 28.14% to 34,200,376.20, compared to 26,690,073.80 in the previous year[46]. Shareholder Information - The company has not disclosed any plans for profit distribution or capital reserve transfer to increase share capital for the reporting period[5]. - The company reported a net profit attributable to ordinary shareholders of RMB 38,241,556.44 for the year 2020, with a profit distribution ratio of 0%[64]. - The company has not proposed any cash profit distribution plan despite having positive profits for the reporting period[64]. - The total number of ordinary shareholders at the end of the reporting period is 69,988[84]. - The largest shareholder, Aral Tongzhong State-owned Assets Management Co., Ltd., holds 153,815,575 shares, representing 40.32% of total shares[86]. - The second largest shareholder, Xinyu Win at the Starting Point Enterprise Management Co., Ltd., increased its holdings by 2,703,200 shares, now holding 0.71%[86]. Governance and Compliance - The company appointed Da Xin Accounting Firm (Special General Partnership) as the auditor with a remuneration of RMB 850,000 for a term of one year[71]. - The internal control audit will also be conducted by Da Xin Accounting Firm with a fee of RMB 300,000[71]. - The company emphasizes risk management strategies to address management, industry, product quality, policy, project investment, and liquidity risks[58][59][60][61]. - The company strictly adheres to legal regulations and maintains a transparent governance structure to protect shareholder interests[107]. - The company has implemented a performance assessment system to determine the remuneration of directors and senior management based on annual performance indicators[99]. - The company held 4 shareholder meetings during the reporting period, including 1 annual meeting and 3 temporary meetings, passing a total of 22 resolutions[112]. Employee and Management Structure - The company has a total of 541 employees, with 32 in the parent company and 509 in major subsidiaries[102]. - The employee composition includes 227 production personnel, 66 sales personnel, 76 technical personnel, 29 financial personnel, and 143 administrative personnel[102]. - The company has established a scientific and standardized human resources policy to motivate employees and ensure fair treatment[103]. - The training program for 2020 focused on enhancing employee skills in management, team building, and effective management[104]. - The average age of the current board members and senior management is 46 years[95]. - The company has seen a consistent leadership structure with no significant changes in management roles during the reporting period[95]. Future Outlook - The company expects to achieve a revenue of 1.1 billion yuan in 2021, indicating a significant growth outlook[57]. - The company plans to focus on expanding its market presence and enhancing product development in the upcoming fiscal year[158]. - The company aims to improve its financial performance through strategic investments and potential mergers and acquisitions[158].