XINSAI CO.,LTD(SH:600540)2022-04-27 16:00Financial Performance - In 2021, Xinjiang Sayram Modern Agriculture Co., Ltd. reported a consolidated net loss of ¥175,054,879.75, with a net loss attributable to the parent company of ¥166,551,526.53[6]. - The parent company achieved a net profit of ¥-172,767,565.03 for the year, resulting in a total available profit for distribution to shareholders of ¥-572,567,471.04 after accounting for previous losses[6]. - The company will not distribute cash dividends or increase capital reserves for the year 2021, pending approval at the annual shareholders' meeting[6]. - The company's operating revenue for 2021 was CNY 1,096,901,880.13, an increase of 3.85% compared to CNY 1,056,225,864.82 in 2020[24]. - The net profit attributable to shareholders was a loss of CNY 166,551,526.53, a significant decrease from a profit of CNY 8,786,216.47 in the previous year, representing a decline of 1,995.60%[24]. - The net cash flow from operating activities was a negative CNY 668,203,684.46, worsening from a negative CNY 215,729,961.31 in 2020[24]. - The total assets increased by 40.76% to CNY 2,479,647,394.03 at the end of 2021, compared to CNY 1,761,579,393.07 at the end of 2020[24]. - The basic earnings per share for 2021 was -CNY 0.3537, a decrease of 1,991.44% from CNY 0.0187 in 2020[25]. - The weighted average return on equity dropped to -28.07%, a decrease of 29.37 percentage points from 1.30% in the previous year[25]. Risk Management - The report includes a risk statement indicating that future operational plans and development strategies do not constitute a substantive commitment to investors, highlighting the importance of investment risk awareness[7]. - The company has detailed potential risks in the annual report, which can be found in the management discussion and analysis section[8]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[8]. - The company plans to focus on improving inventory management and reducing financial costs in the upcoming year[26]. - The company is committed to improving its governance structure, ensuring compliance with laws and regulations, and enhancing its governance capabilities[185]. Operational Highlights - The company achieved an operating income of CNY 1.097 billion and a total production value of CNY 153 million in 2021[34]. - As of December 31, 2021, the company's total assets amounted to CNY 2.48 billion, with total liabilities of CNY 1.985 billion, resulting in a debt-to-asset ratio of 80.04%[34]. - Fixed asset investments totaled CNY 33.0974 million in 2021, including projects for housing and production line upgrades[34]. - The company completed a non-public stock issuance, raising CNY 560 million by issuing 110,453,647 shares at a price of CNY 5.07 per share[35]. - The company identified over 200 potential hazards and rectified 196 safety issues during 40 safety inspections in 2021[35]. Market and Industry Trends - The average purchase price of seed cotton increased by approximately 91.04% compared to the previous year, contributing to higher inventory levels[26]. - The company is classified under the agriculture sector, focusing on cotton processing and sales, with a strategy of integrating upstream and downstream operations[36]. - The company is actively exploring high-value-added services to expand its cotton industry operations[38]. - The company is expanding into the cotton textile and garment industry, leveraging its initial processing and spinning capabilities[38]. - The logistics and warehousing services are a key focus, with plans for new logistics projects to capture market opportunities[38]. Research and Development - The total R&D expenditure was 413,725.20 yuan, accounting for 0.0377% of operating revenue[71]. - The company has established a postdoctoral research station to enhance its R&D capabilities, focusing on key technologies in cotton processing and new cotton varieties[49]. - The company is committed to agricultural high-tech product research and development to enhance market offerings[38]. Governance and Compliance - The company has revised its articles of association to strengthen the voting rights of minority shareholders in the election of directors and supervisors[186]. - The company improved its governance structure and compliance through a series of rectifications following a review by the Xinjiang Regulatory Bureau[187]. - The audit committee, composed of 3 independent directors and 2 directors, oversaw internal and external audits to ensure compliance[192]. - The company maintained transparency in information disclosure, adhering to regulations and ensuring accurate and complete reporting[188]. Future Outlook - The company plans to acquire 205,000 tons of seed cotton and produce 77,000 tons of lint cotton in 2022, aiming for a revenue target of 1.5 billion yuan, with a projected growth of approximately 8% in total production value[175]. - The company aims to enhance its financial risk management by improving direct financing capabilities and expanding financing channels to support future development[176]. - The company is committed to achieving zero accidents in safety and environmental compliance across all production facilities in 2022[175]. - The overall market outlook for cotton products remains uncertain due to fluctuating macroeconomic conditions and ongoing inflationary pressures[169].