OGI(SH:600811)2020-04-29 16:00Financial Performance - The company's operating revenue for 2019 was approximately ¥13.16 billion, a decrease of 9.11% compared to ¥14.48 billion in 2018[27] - The net profit attributable to shareholders for 2019 was approximately ¥583.63 million, down 10.99% from ¥655.69 million in 2018[27] - The net profit after deducting non-recurring gains and losses was approximately ¥181.75 million, a significant decline of 63.04% from ¥491.77 million in 2018[27] - The basic earnings per share for 2019 were ¥0.1581, a decrease of 10.42% from ¥0.1765 in 2018[28] - The diluted earnings per share also stood at ¥0.1581, reflecting the same percentage decrease as basic earnings[28] - The weighted average return on net assets for 2019 was 2.80%, down 0.45 percentage points from 3.25% in 2018[28] - The company decided not to distribute cash dividends or issue bonus shares for the 2019 fiscal year[7] Cash Flow and Assets - The net cash flow from operating activities increased dramatically to approximately ¥3.32 billion, up 1,349.04% from ¥229.32 million in 2018[27] - The total assets at the end of 2019 were approximately ¥46.62 billion, a decrease of 5.84% from ¥49.51 billion at the end of 2018[27] - The net assets attributable to shareholders increased by 2.07% to approximately ¥21.02 billion compared to ¥20.59 billion at the end of 2018[27] - The total cash flow from operating activities for the four quarters of 2019 was CNY 9.29 billion, CNY 20.23 billion, CNY 4.38 billion, and negative CNY 0.68 billion respectively[31] Revenue Breakdown - The company achieved a revenue of 12.462 billion yuan in agricultural product processing and sales, ranking among the top in the industry[50] - The retail business of the company saw a significant growth with brand rice sales reaching 682 million yuan, a year-on-year increase of 214.59%[50] - The oilseed business generated sales revenue of CNY 3.58 billion, up 181.30% year-on-year[72] - Revenue from agricultural product processing and sales reached ¥1,246,205.22 million, with a year-on-year increase of 35.68%[103] - The revenue from land and real estate development decreased by 88.08% year-on-year, totaling CNY 619 million[102] Strategic Initiatives - The company aims to strengthen its brand retail business and expand product categories, contributing to steady growth in operational efficiency[41] - The company has developed a nationwide sales model that integrates offline supermarkets and online platforms, ensuring product quality and availability[42] - The company is focusing on expanding its agricultural supply chain system, which has contributed to its revenue growth in the agricultural sector[50] - The company has established a comprehensive agricultural supply chain financial service system to address financing difficulties for suppliers, achieving the first full-process online accounts receivable financing in Heilongjiang Province in September 2019[61] - The company is actively involved in the development of inclusive financial products, promoting low-interest, sustainable financing options for rural areas[55] Market Position and Growth - The company has successfully expanded its retail business, with brand products entering 22 provinces and winning multiple awards, including the "Gold Award" at the China Quality Rice Expo[59] - The company achieved significant brand recognition, winning the "Best Cooperation Award" from Wumart Group in November 2019, being the only rice supplier to receive this award[73] - The company is committed to creating a complete supply chain from farm to table, focusing on high-margin segments within the modern agriculture and health food industries[139] Challenges and Risks - The company recorded a total of CNY 4.05 billion in impairment provisions for various assets in Q4 2019, reflecting a cautious approach to market conditions[31] - The new urbanization development segment reported a revenue of 619 million in 2019, a decline of 88.08%, with a net profit of -622 million, primarily due to delays in land development projects[85] - The company is closely monitoring agricultural market fluctuations and will adjust production plans to mitigate risks from price volatility and supply chain disruptions[145] Future Plans - The company plans to achieve revenue of 16 billion RMB in 2020, focusing on modern agriculture and health food industries[140] - The company aims to enhance its market presence in the C-end market with branded rice, flour, edible oil, and soybean products, targeting retail, group buying, and catering channels[140] - The company plans to optimize its asset structure and improve capital turnover efficiency in the new urbanization development sector[138] - The company aims to leverage technology to reduce intermediaries and enhance operational efficiency within the corn industry[56] Investments and Acquisitions - The company has acquired various financial licenses, including agricultural financial leasing and online micro-loans, to support its financial services targeting the agricultural sector[55] - The company has completed a strategic acquisition of China Corn Network, enhancing its data service capabilities and creating a national supply chain service platform for bulk agricultural products[56] - The company acquired 77% equity of Xiamen Yinxiang Bean Products Co., Ltd. from Xiamen Yangsheng Douyuan Trading Co., Ltd. during the reporting period[160] Legal and Compliance - The company has not faced any major litigation or arbitration matters during the reporting period[172] - The company has initiated legal proceedings against Jiuniu Agriculture's shareholders for failing to fulfill their profit compensation obligations[162]