XTAD(SH:600359)2021-06-01 16:00Financial Performance - The company's operating revenue for 2020 was CNY 556,230,065.25, representing a 0.99% increase compared to CNY 550,803,077.66 in 2019[19] - The net profit attributable to shareholders for 2020 was CNY 38,241,556.44, a significant increase of 359.35% from CNY 8,325,227.07 in 2019[19] - The net cash flow from operating activities reached 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 basic earnings per share for 2020 was CNY 0.10, up 400% from CNY 0.02 in 2019[20] - The weighted average return on equity increased to 8.16% in 2020, up by 6.34 percentage points from 1.82% in 2019[20] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1,416,760.68, compared to a loss of CNY 94,201,028.28 in 2019, reflecting a 101.5% improvement[19] - The company's net assets attributable to shareholders increased by 11.50% to CNY 493,959,150.11 at the end of 2020, compared to CNY 443,022,535.59 in 2019[19] Revenue Sources - The company’s core business includes dairy processing and sales, seed processing and sales, and licorice deep processing, with dairy products being primarily handled by its subsidiary Xin Nong Dairy[30] - The company’s seed processing and sales are conducted through its subsidiary Tahe Seed Industry, focusing on cotton, rice, and wheat seeds, among others[30] - The company’s licorice products are managed by its wholly-owned subsidiary Xin Nong Licorice, which produces various licorice extracts and derivatives[30] - The company achieved an operating income of 556.23 million RMB, a year-on-year increase of 0.99%, while operating costs decreased by 9.97% to 418.88 million RMB[39][40] - The company reported total revenue of CNY 216,498.01, compared to CNY 41,481.08 in 2019, indicating a year-over-year increase of approximately 421%[144] Cost Management - The company reduced sales expenses by 63.79% to 19.66 million RMB, primarily due to the implementation of three institutional reforms[40] - Research and development expenses decreased by 13.98% to 6.60 million RMB, indicating a focus on cost management[40] - 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 costs were 159,774,413.48, accounting for 78.50% 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] Market Outlook - The overall dairy industry in China shows significant growth potential, despite currently low per capita consumption levels[32] - The seed industry is facing challenges due to declining planting areas and faster seed renewal rates, particularly in the cotton seed sector[32] - The licorice industry benefits from a wide range of applications in pharmaceuticals, food, tobacco, and cosmetics, with over 100 compounds extracted from licorice[32] - The company expects to achieve a revenue of 1.1 billion yuan in 2021, indicating a significant growth outlook[58] Financial Position - Cash and cash equivalents decreased by 24.33% from the previous period, amounting to 105.9 million yuan, which represents 6.05% of total assets[51] - The company’s long-term borrowings increased by 8.97% to 59.3 million yuan, accounting for 3.39% of total assets[51] - The company has 49.07 million yuan in restricted cash due to bank acceptance bill guarantees and pledged loans[52] - The total liabilities decreased to CNY 1,269,739,624.33 from CNY 1,325,241,265.28, a reduction of approximately 4.2%[134] - The company's total equity increased to CNY 482,140,062.36 from CNY 429,543,295.45, reflecting a growth of about 12.2%[134] Governance and Compliance - The company emphasizes the importance of product quality management to mitigate risks associated with product quality incidents[61] - The company did not propose any cash dividend distribution plan for the reporting period, despite having a positive profit available for distribution to ordinary shareholders[65] - The company has committed to avoiding any business activities that may compete directly or indirectly with Xin Nong Development, ensuring no conflicts of interest arise[66] - The company has implemented the new revenue recognition standards effective January 1, 2020, which introduced a five-step method for revenue recognition[68] - The company has maintained a good integrity status for both itself and its controlling shareholders during the reporting period[73] Audit and Internal Control - The independent auditor issued a standard unqualified opinion on the internal control audit report, confirming effective financial reporting internal controls as of December 31, 2020[118] - The audit report emphasizes the importance of evaluating the appropriateness of accounting policies and estimates made by management[128] - The company has implemented significant audit procedures to assess the appropriateness of revenue recognition and asset impairment, which are critical audit matters[125] Employee and Management Structure - The company has a total of 541 employees, with 32 in the parent company and 509 in major subsidiaries[101] - The employee composition includes 227 production personnel, 66 sales personnel, 76 technical personnel, 29 financial personnel, and 143 administrative personnel[101] - The company has established a scientific and standardized human resources policy to motivate employees and ensure fair treatment[102] - The board of directors operates independently, ensuring no interference from the controlling shareholder in decision-making[108] - The company continues to maintain a stable leadership structure with no significant changes in key positions during the reporting period[94] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 64,453, down from 69,988 at the end of the previous month[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 company has no strategic investors or general legal entities among the top 10 shareholders[87] - The actual controller is the State-owned Assets Supervision and Administration Commission of the First Division of the Xinjiang Production and Construction Corps, which oversees the management of state-owned assets[90] Financial Instruments and Accounting Policies - The company’s accounting policies comply with the requirements of the "Enterprise Accounting Standards," ensuring accurate financial reporting[172] - Financial assets are classified as measured at amortized cost if the business model is to collect contractual cash flows, and as fair value through other comprehensive income if the model is to both collect cash flows and sell the asset[184] - The company recognizes contract assets when it has the right to receive consideration for transferred goods or services, with impairment losses measured using the expected credit loss model[194]