HACL(SH:600598)2021-03-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 3,240,890,962.86, representing a 4.16% increase compared to CNY 3,111,306,139.60 in 2019[17]. - The net profit attributable to shareholders for 2020 was CNY 989,978,629.23, which is a 16.66% increase from CNY 848,615,373.80 in 2019[17]. - The net cash flow from operating activities increased by 46.08% to CNY 1,189,327,787.24 in 2020, compared to CNY 814,168,317.31 in 2019[17]. - The total profit reached 987 million yuan, up by 164 million yuan or 19.98% year-on-year, attributed to agricultural insurance refunds and other income sources[33]. - The basic earnings per share for 2020 were CNY 0.557, a 16.77% increase from CNY 0.477 in 2019[19]. - The total comprehensive income for 2020 was approximately CNY 996,083,602.87, contributing significantly to the overall equity increase[192]. Assets and Liabilities - The total assets at the end of 2020 were CNY 8,093,774,209.50, up 3.17% from CNY 7,845,324,492.20 at the end of 2019[18]. - The company's total liabilities decreased by 3.19% year-on-year to RMB 137,035.56 million, accounting for 16.93% of total assets[50]. - The asset-liability ratio stood at 16.93%, a decrease of 1.11 percentage points compared to the end of the previous year[33]. - The company's long-term borrowings decreased by 32.95% year-on-year to RMB 298.50 million, primarily due to repayments made by the paper division[52]. Cash Flow - The net cash flow from operating activities for the reporting period was RMB 118,932.78 million, an increase of 46.08% year-on-year, primarily due to increased cash receipts from fertilizer sales and reduced cash payments to employees[49]. - The cash flow from financing activities resulted in a net outflow of CNY 658.88 million in 2020, compared to a net outflow of CNY 707.74 million in 2019, indicating an improvement of about 6.9%[187]. - The ending balance of cash and cash equivalents increased to CNY 1,575.65 million at the end of 2020, compared to CNY 951.15 million at the end of 2019, representing a growth of approximately 65.7%[187]. Agricultural Operations - The agricultural sector remains a key focus, with the company positioned as a leading grain production base in China, benefiting from favorable policies and resource advantages[25]. - The company has 16 agricultural subsidiaries, primarily producing rice, corn, and soybeans, leveraging the fertile soil of the Sanjiang Plain[27]. - The total grain production reached 5.69 million tons, a 13% increase compared to the previous year[34]. - The agricultural segment generated revenue of 3.23 billion yuan, with a profit of 970 million yuan, marking a 12.13% increase in profit year-on-year[34]. Research and Development - Research and development expenses totaled ¥16,098,409.71, accounting for 0.5% of operating revenue, with a 12.50% increase compared to the previous year[47]. - The company employed 298 R&D personnel, making up 0.87% of the total workforce[47]. - New agricultural technologies are being tested, including rice planting techniques aimed at reducing labor costs and improving yield efficiency[48]. Governance and Compliance - The company has implemented a modern enterprise management system, enhancing internal control and overall governance[32]. - The internal control audit report issued by Ruihua CPA confirmed the effectiveness of internal controls as of December 31, 2020, with a standard unqualified opinion[163]. - The company has not faced any significant litigation or arbitration matters during the reporting period[78]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 120,815[126]. - The largest shareholder, Beidahuang Agricultural Group Co., Ltd., holds 1,140,262,121 shares, representing 64.14% of total shares[128]. - The total pre-tax compensation for the reporting period amounted to 576.29 million CNY, including basic annual salary, performance salary, and bonuses[135]. Environmental and Social Responsibility - The company actively fulfilled social responsibilities in safety production, product quality control, environmental protection, and employee rights protection[120]. - The company achieved a 95% recovery rate for agricultural waste materials, including pesticide packaging and residues[121]. - The company has not reported any pollution incidents or emergencies during the reporting period, indicating effective environmental management[123]. Legal Matters - The company has a pending receivable of 24,404,519.16 RMB from Qingfeng Flax Co., Ltd. as per the court's first-instance judgment[81]. - The company has initiated a lawsuit against Jilin Province Fuyu County Changchun Ridge Grain Depot for a total of 25,637,552.53 RMB related to a corn and rice purchase contract[81]. - The company is currently in the process of enforcing a judgment against Harbin Xinglong Feed Sales Co., Ltd. due to non-compliance with a court ruling[79]. Future Outlook - The company aims to achieve an annual operating income of RMB 3.3 billion and a total profit of RMB 920 million in 2021, with a total grain output target of 11.76 billion jin[62]. - The company plans to build a national food security industrial belt and agricultural modernization demonstration zone, emphasizing "agricultural land operation + digital technology + capital operation" as its development strategy[61].