Snowsky Salt(SH:600929)2021-04-23 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,164,477,644.54, a decrease of 4.73% compared to 2019 [21]. - The net profit attributable to shareholders for 2020 was CNY 145,350,963.29, a decrease of 1.12% from the previous year [21]. - The net profit after deducting non-recurring gains and losses increased by 2.43% to CNY 125,474,775.12 in 2020 [21]. - The total operating revenue for 2020 was 2.164 billion RMB, a decrease of 4.73% year-on-year, while the net profit attributable to shareholders, excluding non-recurring gains and losses, was 125 million RMB, an increase of 2.43% year-on-year [59]. - The basic earnings per share for 2020 was CNY 0.1584, a decrease of 1.06% compared to 2019 [24]. - The diluted earnings per share for 2020 was CNY 0.1549, down 3.25% from the previous year [24]. - The company reported a net cash flow from operating activities of CNY 219,014,769.32, a decrease of 21.38% compared to 2019 [21]. - The company's total assets grew by 27.17% year-on-year, reaching CNY 4,572,374,503.69 at the end of 2020 [21]. - The net assets attributable to shareholders increased by 9.82% to CNY 2,720,299,830.43 at the end of 2020 [21]. Profit Distribution - The proposed profit distribution plan for 2020 is to distribute RMB 0.80 per 10 shares, totaling RMB 73,420,091.84, which accounts for 50.51% of the net profit attributable to ordinary shareholders [6]. - In 2020, the company distributed cash dividends totaling 73,420,091.84 RMB, representing 50.51% of the net profit attributable to ordinary shareholders [134]. Risks and Compliance - The company reported no significant risks that could materially affect its operations during the reporting period [8]. - The company faces risks from intensified market competition following the end of the salt industry reform transition period, which may impact operational performance [128]. - The company’s main product, industrial salt, is closely tied to the cyclical nature of the macroeconomic environment, which could affect market demand and pricing [128]. - Coal prices significantly impact the company's gross margin, as they constitute a large portion of the main business costs; fluctuations could pressure profitability [128]. - The company has established a comprehensive environmental protection and safety management system to comply with increasingly stringent regulations [131]. - The company is committed to adhering to legal regulations and fulfilling its promises without seeking undue benefits from its controlling shareholder status [155]. Corporate Governance - The company received a standard unqualified audit report from Tianzhi International Accounting Firm [5]. - The company has confirmed that all board members attended the board meeting [5]. - The company has established a commitment to fill the dilution of immediate returns, ensuring that management actions do not harm the company's interests [145]. - The company has made a commitment to compensate investors for losses incurred due to false statements or omissions in the prospectus, with joint liability from major shareholders and executives [145]. - The company has committed to a share lock-up period of 36 months from the date of listing, during which major shareholders, including Light Salt Group and High-tech Investment, will not transfer or entrust the management of their shares [140][141]. Market and Product Development - The company’s main business includes the production and sales of salt and salt chemical products, with a diverse range of salt products catering to different consumer needs [33]. - The company has expanded its product offerings by developing differentiated products such as mushroom-flavored salt and barbecue salt, enhancing its market competitiveness [47]. - The company is positioned as a leading producer of food salt, industrial salt, and mirabilite in China, with a focus on integrated production and sales [48]. - The company has established a sales network with 142,700 sales terminals by the end of 2020, enhancing its market reach [46]. - The company has completed the acquisition of Yongda Salt, which has expanded its product categories to include sea salt production and imports [49]. - The company plans to diversify its product offerings from solely rock salt to include sea salt, lake salt, and imported salt, enhancing product quality to meet diverse consumer needs [116]. Technological Innovation - The company has developed 157 authorized patents, including 25 invention patents, indicating a strong focus on technological innovation [47]. - The company has implemented advanced production techniques, achieving a salt purity of 99.6% and becoming the first in Asia to realize a single set production capacity of one million tons of vacuum salt [48]. - The company is focusing on technological upgrades and automation to improve manufacturing efficiency and reduce costs, aiming to build smart factories [120]. - The company is committed to increasing its investment in technological innovation, particularly in energy-saving and green production technologies [121]. Financial Management - The company managed RMB 759 million in bank financial products, with an outstanding balance of RMB 242 million [177]. - The company’s financial management included various structured deposits with annualized returns ranging from 2.85% to 3.15% [180]. - The total amount of structured deposits from Citic Bank Changsha reached 1,650,000,000.00 RMB with a yield of 3.00% for the product issued on 2020/8/22 [187]. - The structured deposit from Citic Bank Changsha with a total amount of 400,000,000.00 RMB had a yield of 3.65% and was redeemed on 2020/6/2 [193]. Investment and Acquisitions - The company participated in the public transfer project of 42.14% equity and 10 million yuan debt of Hebei Yongda Salt Co., Ltd., with an investment amount of 1,424.9 million yuan [94]. - The company has invested 25,271.54 million yuan in the edible salt quality improvement technology transformation project, with a progress rate of 92.33% [95]. - The company has invested 21,273.10 million yuan in the salt production system energy-saving and efficiency-enhancing technology transformation project, with a progress rate of 69.78% [95]. - The company has completed the acquisition of a 10% equity stake in Jiu Er Salt Industry, with a total investment of 54 million yuan, achieving 100% project progress [98]. Employee and Talent Management - The company is implementing a talent development plan to optimize its human resources structure and improve workforce capabilities [117]. - There are no ongoing employee stock ownership plans or other incentive measures reported [167].