XINSAI CO.,LTD(SH:600540)2021-03-22 16:00Financial Performance - In 2020, Xinjiang Sayram Modern Agriculture Co., Ltd. achieved a consolidated net profit of CNY 8.52 million, a decrease of 57.92% compared to CNY 20.88 million in 2019[6]. - The company's operating revenue for 2020 was CNY 1.12 billion, down 18.92% from CNY 1.38 billion in 2019[22]. - The basic earnings per share for 2020 were CNY 0.0187, a decrease of 57.79% from CNY 0.0443 in 2019[23]. - The total net profit for 2020 was significantly impacted by non-recurring losses, totaling ¥27,307,144.33 for the year[24]. - The company reported a net profit attributable to the parent company of CNY 21.55 million for the year, with accumulated undistributed profits at the beginning of the year at CNY -42.13 million[6]. - The company reported a net profit of 8.52 million yuan, a decrease of 57.19% compared to the previous period's profit of 19.91 million yuan, primarily due to a reduction in product sales volume and a revenue decline of 261 million yuan[53]. - The company’s debt-to-asset ratio increased to 62.51%, up 2.25 percentage points from the beginning of the year[48]. - The company’s cash flow from operating activities was negative at CNY -215.73 million, a decrease of 320.85% compared to the previous year[50]. Assets and Liabilities - The net assets attributable to shareholders of the listed company increased by 1.09% to CNY 676.58 million at the end of 2020, compared to CNY 669.27 million at the end of 2019[22]. - The total assets of the company rose by 8.85% to CNY 1.76 billion at the end of 2020, compared to CNY 1.62 billion at the end of 2019[22]. - Cash and cash equivalents decreased by 158.93 million yuan, a decline of 64.91% compared to the beginning of the year, primarily due to increased inventory and slower cash recovery[75]. - Short-term borrowings increased by 190.46 million yuan, a rise of 33.89%, primarily due to slower cash recovery from increased inventory[76]. - The total balance of investments in subsidiaries at the end of the period was 572,708,670.55 CNY, with an increase of 3,000,000 CNY during the reporting period[113]. Operational Strategy - The company aims to strengthen its core cotton business by leveraging Xinjiang's cotton resource advantages and expanding vertically along the supply chain[30]. - The strategic focus has shifted to a dual-core business model, emphasizing cotton and logistics, to enhance product value and mitigate risks[30]. - The company plans to engage in mergers and acquisitions to integrate high-quality cotton processing enterprises and expand its market presence[30]. - The company is committed to modern agricultural industrialization, integrating agriculture, industry, science, and trade[30]. - The company is actively seeking strategic partnerships and financing opportunities to strengthen its control over quality cotton resources[39]. Market and Industry Trends - In 2020, Xinjiang's cotton production reached 5.161 million tons, a 3% increase from the previous year, accounting for 87.3% of the national total[31]. - The average annual domestic cotton supply-demand gap over the past three years is approximately 2.4 million tons, with expectations for continued growth in demand[31]. - The logistics industry is experiencing rapid development, with a focus on cold chain logistics to meet the increasing demand for fresh agricultural products[34]. - The company is exploring development plans for its cotton business based on advanced production technologies from the region, aiming to meet industry demands and expand profitability[87]. Investment and Financing - The company plans to invest CNY 1.2 billion in a new 300,000-ton polyester elastic fiber project[42]. - The company is undergoing a private placement of A-shares, with approval from the relevant authorities received on September 4, 2020[163]. - The company has increased its equity stake in Xinjiang Puyao New Building Materials Co., Ltd. from 15% to 24.72% through a capital increase, amounting to an investment of 49,093,127.33 CNY[111]. Governance and Management - The company has established a cash dividend policy, aiming for a minimum cash dividend ratio of 80% during mature stages without major capital expenditures[142]. - The company has appointed Sigma Accounting Firm for a five-year audit period with a remuneration of RMB 65,000 for the financial audit and RMB 30,000 for internal control audit[149]. - The company has revised six important governance rules to align with the latest laws and regulations, enhancing its governance structure[165]. - The company reported a leadership change with Liu Jiang resigning as CEO on September 4, 2020, and Chen Jianjiang temporarily taking over the role[199]. Social Responsibility and Compliance - The company maintained a zero occurrence of COVID-19 cases through strict pandemic prevention measures, including 20 deployment meetings and 7 inspections throughout the year[172]. - The company donated 200,000 yuan to the Red Cross Society and provided 1.34 tons of alcohol and 2,500 KF94 masks to local hospitals and the epidemic prevention command[172]. - The company established an environmental management system, ensuring compliance with national and local environmental protection standards without any pollution incidents reported[176][177].