Shede Spirits (SH:600702)2021-04-28 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 581,135,189.18 in 2020, representing a 14.42% increase compared to RMB 507,910,345.79 in 2019[4]. - Total operating revenue for 2020 was RMB 2,703,669,822.21, a 2.02% increase from RMB 2,650,122,823.84 in 2019[20]. - The net cash flow from operating activities increased by 49.37% to RMB 997,180,936.55 in 2020, up from RMB 667,600,835.46 in 2019[20]. - The company's total assets reached RMB 6,453,963,533.93 at the end of 2020, an 11.73% increase from RMB 5,776,505,460.06 at the end of 2019[20]. - The net assets attributable to shareholders increased by 17.84% to RMB 3,580,178,258.57 at the end of 2020, compared to RMB 3,038,055,646.48 at the end of 2019[20]. - Basic earnings per share for 2020 were RMB 1.7452, a 14.68% increase from RMB 1.5218 in 2019[21]. - The weighted average return on equity was 17.36% in 2020, a decrease of 0.71 percentage points from 18.07% in 2019[21]. - The company reported a total of ¥33.09 million in non-recurring gains and losses for 2020, with significant contributions from government subsidies and other income[25]. - The company reported a net loss from investment activities of -668,390,310.30 RMB, a significant increase of 289.83% compared to the previous year[66]. - The company reported a total revenue of 185,946.47 million RMB for the reporting period[117]. Dividend Policy - The company plans to distribute a cash dividend of RMB 2.50 per 10 shares, totaling RMB 83,158,935.25 to shareholders[4]. - The cash dividend policy stipulates that at least 10% of the distributable profits must be distributed as cash dividends annually, with a cumulative minimum of 30% over three years[107]. - In 2020, the company proposed a cash dividend of 2.00 RMB per 10 shares, totaling 66,620,286.21 RMB distributed to shareholders[108]. - The company reported a net profit of 581,135,189.18 RMB for 2020, with a cash dividend payout ratio of 14.31%[112]. Market Strategy - The company has a strategic focus on high-end ecological liquor production, leveraging its extensive inventory of over 120,000 tons of aged liquor to enhance its market position[36]. - The company aims to establish the "Shede" brand as the leading brand in the aged liquor category and enhance the "Tuopai" brand as a cost-effective mass-market liquor[32]. - The company is focused on expanding its market presence in traditional strongholds while also exploring new sales channels such as e-commerce and modern supermarkets[31]. - The company aims to enhance its online marketing strategy by increasing distribution channels and optimizing product structure over the next 2-3 years[87]. - The company is focusing on expanding into new regions and channels, particularly in emerging markets around Lake Tai and Hunan[100]. Research and Development - The company has established a strong technical research and development team with over 160 independent research projects and 40 invention patents[38]. - Research and development expenses increased by 148.67% to 20,869,779.63 RMB, reflecting a significant rise in investment in R&D activities[62]. - The company has built a high-level research platform in collaboration with Sichuan University and local government, enhancing its innovation capabilities[38]. Environmental Responsibility - The company is listed as a key pollutant discharge unit in the 2020 Sichuan Province water environment list, with a total COD discharge of 27.66 tons per year and a concentration of 66.78 mg/L[156]. - The company has established a wastewater treatment plant with a design capacity of 10,000 tons per day, achieving compliance with the relevant environmental discharge standards[159]. - The company has implemented a "coal-to-gas" energy-saving project, ceasing operations of its thermal power subsidiary, which eliminates boiler flue gas emissions[159]. - The company has no instances of exceeding pollutant discharge standards in 2020[158]. - The company has established a self-monitoring plan for wastewater and air emissions, with results meeting environmental protection requirements[163]. Corporate Governance - The company has committed to not infringe on its own interests and to ensure fair treatment in its operations[113]. - The company is facing multiple equity freezes due to disputes involving Tianyang Holdings Group, with the total frozen amounts exceeding 15.178 billion RMB[134]. - The company aims to improve its governance and oversight mechanisms following the recent regulatory challenges[128]. - The company has disclosed various legal proceedings and their outcomes on the Shanghai Stock Exchange website, ensuring transparency[128]. Employee Management - The total number of employees in the company and its main subsidiaries is 4,649, with 2,973 in the parent company and 1,676 in subsidiaries[200]. - The workforce includes 2,134 production personnel, 1,327 sales personnel, 630 technical personnel, 49 financial personnel, and 509 administrative personnel[200]. - The company experienced a significant increase in employee numbers in 2020 compared to 2019 due to talent acquisition aimed at enhancing production capacity and launching cultural tourism initiatives[200]. - The actual remuneration for directors, supervisors, and senior management during the reporting period totaled 15.9187 million yuan[196]. Legal Matters - The company is involved in a civil lawsuit with Tianyang Holdings Group, with a claim amounting to 48,266.22 thousand RMB, which has been adjudicated in favor of the company[127]. - The company’s former chairman and other executives are under criminal investigation for suspected breach of trust and damage to the company's interests[128]. - The company received administrative regulatory measures from the China Securities Regulatory Commission due to fund occupation issues, with the controlling shareholder Tuo Pai She De Group receiving a corrective order on September 1, 2020[125]. Shareholder Information - The largest shareholder, Sichuan Tuopai Shede Group Co., Ltd., holds 100,695,768 shares, accounting for 29.95% of the total shares[176]. - The second largest shareholder, Sichuan Shihong Guangsha Real Estate Development Co., Ltd., holds 11,777,751 shares, representing 3.50%[176]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three shareholders alone accounting for over 36%[176]. - The company has no restricted shares among the top ten shareholders, indicating a fully tradable share structure for these stakeholders[177].