Cofco Sugar(SH:600737)2022-04-18 16:00Financial Performance - The net profit attributable to shareholders for 2021 was RMB 519,524,549.52, representing a profit distribution plan of RMB 1.10 per share (including tax), totaling RMB 235,273,305.08, which accounts for 45.29% of the net profit[4]. - The company's operating revenue for 2021 was approximately ¥25.16 billion, representing a year-over-year increase of 19.08% compared to ¥21.13 billion in 2020[18]. - The net profit attributable to shareholders of the listed company for 2021 was approximately ¥519.52 million, a decrease of 1.82% from ¥529.15 million in 2020[18]. - The net profit after deducting non-recurring gains and losses was approximately ¥472.22 million, down 13.12% from ¥543.53 million in 2020[18]. - The net cash flow from operating activities for 2021 was approximately ¥59.07 million, a significant decrease of 94.16% compared to ¥1.01 billion in 2020[18]. - The total assets at the end of 2021 were approximately ¥18.74 billion, an increase of 6.92% from ¥17.53 billion at the end of 2020[18]. - The net assets attributable to shareholders of the listed company at the end of 2021 were approximately ¥10.02 billion, reflecting an increase of 11.12% from ¥9.02 billion at the end of 2020[18]. - The basic earnings per share for 2021 were ¥0.2429, a decrease of 1.82% from ¥0.2474 in 2020[19]. - The weighted average return on net assets for 2021 was 5.40%, down 0.96 percentage points from 6.36% in 2020[19]. - The company reported a net loss of approximately ¥231.80 million in the fourth quarter of 2021, contrasting with profits in the earlier quarters[26]. Operational Highlights - The company achieved an operating revenue of 25.16 billion yuan in 2021, representing a year-on-year growth of 19.08%[35]. - The total profit for the year was 760 million yuan, an increase of 2.71% compared to the previous year[35]. - The total operating volume of sugar exceeded 4.3 million tons, further consolidating the company's leading position in the industry[35]. - The company has established a refining capacity of 1.9 million tons, maintaining the top position in the industry[35]. - The company sold 2.1 million tons of its "Zhongtang" brand sugar, significantly improving product structure with high-end products[35]. - The company is advancing its "14th Five-Year Plan," with significant breakthroughs in the refining sugar industry, including a new refining capacity of 200,000 tons[35]. - The company is focusing on lean management to enhance operational efficiency and ensure product quality amid extreme weather challenges[36]. - The company is committed to talent development, enhancing its workforce's capabilities in sugar refining technology and market-oriented incentives[37]. - The company is actively expanding into non-food sugar markets, including chemical, construction, and feed sectors, to meet diverse customer needs[52]. Market Position and Strategy - The company is the largest sugar producer in China, holding nearly one-third of the market share, with a strong brand reputation for its "Zhongtang" products[45]. - The domestic sugar consumption is approximately 15.8 million tons, indicating growth potential as the per capita consumption is only 11.19 kg, below the global average[39]. - The company controls over 40% of the domestic sugar import market, establishing a comprehensive logistics service system across major regions[52]. - The company achieved a sugar production volume of 310,000 tons from Tully Sugar, marking the second-best performance since its acquisition[55]. - The company’s strategic inventory management allowed it to capitalize on low international raw sugar prices, enhancing its competitive edge[45]. - The company is focusing on technological innovation by collaborating with research institutions to enhance product competitiveness[89]. - The company plans to expand its refining capacity along the coast and optimize its industrial structure[86]. Risks and Challenges - The company faces risks related to policy changes, sugar price fluctuations, exchange rate changes, raw material supply, and international situations[4]. - The company is addressing potential risks from policy changes in the sugar industry by enhancing policy research and innovation[90]. - The company faces risks from fluctuations in sugar prices, which are influenced by both domestic and international supply and demand dynamics, as well as energy prices[91]. - Currency exchange rate fluctuations, particularly with USD as the settlement currency for sugar and tomato trades, pose a risk to the company's performance[92]. - The company is exposed to raw material supply risks due to potential natural disasters and competition from higher-yield crops, impacting the stability of sugar beet, sugarcane, and tomato supplies[93]. - Geopolitical risks and trade protectionism may affect the company's export business for sugar and tomato products, prompting a focus on enhancing domestic sales of tomato products[94]. Governance and Compliance - The audit report for the fiscal year was issued by Tianzhi International Accounting Firm with a standard unqualified opinion[4]. - The company has established a mechanism to ensure independence from its controlling shareholder, maintaining operational autonomy in personnel, assets, finance, and business[100]. - The company held four temporary shareholder meetings in 2021, with key resolutions including the election of non-independent directors and amendments to the articles of association[109]. - The company has maintained a consistent shareholding structure, with no changes in shareholdings reported for the board members during the reporting period[110]. - The company is committed to maintaining transparency and compliance with regulatory requirements as demonstrated in its shareholder meetings[109]. - The company has appointed new directors to the board, enhancing its governance structure[109]. Environmental Responsibility - The company is classified as a key pollutant discharge unit, indicating its commitment to environmental protection[141]. - The total actual discharge of COD was 85.55 tons, with a permitted discharge of 741.0 tons, indicating no exceedance of standards[142]. - The actual discharge of ammonia nitrogen was 3.55 tons, compared to a permitted discharge of 66.69 tons, with no exceedance reported[142]. - The company has achieved certification as a "green factory" for 2 subsidiaries at the national level and 1 at the regional level, reflecting its commitment to sustainable practices[151]. - The company has initiated a "carbon peak" action plan, focusing on energy-saving technologies and transitioning to cleaner energy sources, aiming to reduce carbon emissions from production processes[152]. - The company has established a comprehensive environmental monitoring system, publicly displaying pollution data and ensuring compliance with regulatory standards[148]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[149]. Employee Development and Training - The total number of employees in the company and its main subsidiaries is 6,385, with a professional composition including 4,380 production staff, 170 sales staff, and 560 technical staff[128]. - The company implemented a performance-oriented compensation policy, emphasizing a market-oriented incentive mechanism to enhance employee motivation and operational efficiency[130]. - The training program for employees included a "34885" education training system, with a focus on enhancing organizational capabilities and strategic implementation[131]. - The company has established a positive incentive system to encourage high performance and has implemented a profit-sharing mechanism for new market initiatives[130]. - The company has a total of 13,744 logins to its online learning platform in 2021, with an average monthly learning duration of 758 minutes per person[131].