SuKen Agriculture(601952)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was CNY 8,620,080,031.28, representing a 7.38% increase compared to 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 669,700,032.92, which is a 13.25% increase from the previous year[25]. - The net profit after deducting non-recurring gains and losses was CNY 559,215,757.06, reflecting a 15.78% increase year-on-year[25]. - The company's total assets at the end of 2020 were CNY 8,670,455,459.46, up 7.62% from 2019[25]. - The basic earnings per share for 2020 was CNY 0.49, an increase of 13.95% compared to 2019[26]. - The weighted average return on net assets for 2020 was 11.01%, an increase of 0.65 percentage points from the previous year[26]. - The cash flow from operating activities for 2020 was CNY 769,819,659.44, which is a 16.83% increase compared to 2019[25]. - The company achieved a consolidated revenue of 8.62 billion yuan and a net profit attributable to shareholders of 670 million yuan in 2020[54]. - The total production of wheat and rice reached 2.506 billion jin, maintaining a historical high, with an average wheat yield of 1,143 jin per mu, an increase of 58 jin from the previous year[54]. - The company reported a gross profit margin of 15.03%, an increase of 2.38 percentage points compared to the previous year[63]. Dividend Distribution - The company plans to distribute a cash dividend of 2.1 RMB per 10 shares, totaling 289,380,000 RMB (including tax) based on a total share capital of 1,378,000,000 shares as of the end of 2020[6]. - The company reported a cash dividend of 2.10 RMB per 10 shares for the year 2020, totaling 28,938,000 RMB, which accounted for 43.21% of the net profit attributable to ordinary shareholders[115]. - In 2019, the company distributed a cash dividend of 2.00 RMB per 10 shares, amounting to 27,560,000 RMB, representing 46.60% of the net profit attributable to ordinary shareholders[116]. - The company has committed to maintaining compliance with cash dividend policies to protect the rights of minority shareholders[115]. - The company has not proposed any new cash dividend distribution plans despite positive earnings, indicating a focus on reinvestment strategies[117]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy and completeness of the financial report[5]. - The company is committed to ensuring the authenticity and completeness of its annual report, with all board members present at the meeting[4]. - There are no non-operating fund occupations by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[8]. - The company has confirmed that there are no major issues regarding the integrity of its controlling shareholders and actual controllers during the reporting period[132]. - The company has engaged Tianjian Accounting Firm for auditing services, with a remuneration of RMB 1.55 million for the year 2020[130]. Agricultural Operations and Strategy - The company emphasizes the importance of agricultural support protection subsidies, which were consolidated into a single policy in 2016 to support farmland fertility protection and moderate-scale grain production[17]. - The company operates under the "Five Unifications" model, which standardizes crop layout, seed supply, agricultural production measures, machinery operation standards, and product sales[15]. - The company has a focus on breeding and producing high-yield, disease-resistant crop varieties through various methods[15]. - The company has established stable partnerships with major supermarket chains, enhancing its market presence[37]. - The company’s agricultural service business includes the supply of fertilizers and pesticides, supporting modern agricultural practices[40]. - The agricultural production process is highly mechanized, resulting in lower production costs and higher efficiency[48]. - The company is positioned to benefit from the trend towards industrialized and standardized agricultural production, driven by national policies[41]. - The company has developed proprietary seed varieties, including Huajing No. 5 rice and Huamai No. 5 wheat, which are currently in the mature stage[90]. Risks and Challenges - The company has outlined potential risks in its future development, which are detailed in the report[8]. - The company is facing challenges from rising production costs due to international market price fluctuations of agricultural materials, influenced by the pandemic and global inflation[41]. - The company faces risks related to natural disasters that could significantly impact crop yields and quality, potentially affecting operational performance[110]. - There is a risk of product quality issues that could harm the company's reputation and lead to economic claims, impacting sales and operational performance[110]. - The company is subject to risks from changes in government subsidy policies, particularly in agriculture, which could significantly impact profitability[110]. Research and Development - The company has developed over 160 rice products and 60 edible oil varieties, with 11 patents obtained in technology development[54]. - Research and development expenses increased by 32.70% to CNY 48 million, indicating a commitment to innovation[58]. - The company has established a modern agricultural technology research and promotion system, including a research institute and several specialized centers, enhancing its R&D capabilities[54]. - The company has established stable research cooperation with multiple universities, enhancing its innovation capabilities[57]. Land Management and Expansion - The company has contracted a total of 993,627 mu of farmland with the Agricultural Reclamation Group since December 2011, with an annual rental fee of 360 RMB per mu, which was adjusted to 398.33 RMB per mu for 972,380 mu in December 2016[85]. - The company has implemented a new land management model, achieving a total of 37,800 mu of land entrusted for management as of the autumn sowing of 2020[85]. - The company has engaged in significant land leasing agreements with local governments, ensuring stable operational rights until 2028[146]. - The company has established a long-term agricultural land management strategy, focusing on sustainable practices and community engagement[149]. Community Engagement and Social Responsibility - The company has been actively involved in poverty alleviation efforts, focusing on sustainable development and market-oriented measures[178]. - The company has established various agricultural production bases to support targeted poverty alleviation in economically weak regions[178]. - The company donated 60 tons of rice and 25 tons of cooking oil to Hubei during the pandemic, along with 920,000 yuan for special epidemic prevention efforts[183]. - The company has conducted volunteer blood donation activities, accumulating over 30,000 milliliters of blood donated[186]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 68,105, down from 70,396 at the end of the previous month[196]. - The largest shareholder, Jiangsu Nongken Group Co., Ltd., held 934,896,426 shares, representing 67.84% of the total shares[196]. - The top ten shareholders accounted for a significant portion of the company's equity, with the largest shareholder alone holding over two-thirds of the shares[196]. - The company confirmed that there are no known relationships or concerted actions among the top shareholders[200].