SuKen Agriculture(SH:601952)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was CNY 10,639,526,240.88, representing a 23.43% increase compared to CNY 8,620,080,031.28 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 737,049,233.23, a 10.06% increase from CNY 669,700,032.92 in 2020[20]. - The net cash flow from operating activities for 2021 was CNY 1,021,897,454.40, showing a 32.75% increase from CNY 769,819,659.44 in 2020[20]. - The total assets at the end of 2021 were CNY 14,098,995,385.81, a 62.61% increase from CNY 8,670,455,459.46 at the end of 2020[20]. - The basic earnings per share for 2021 was CNY 0.53, an increase of 8.16% compared to CNY 0.49 in 2020[20]. - The company achieved a consolidated revenue of 10.64 billion RMB and a net profit attributable to shareholders of 737 million RMB for the reporting period[30]. - The company reported a total of 787.27 million RMB in agricultural infrastructure investments, adding 55,000 mu of high-standard farmland[30]. - The company achieved a consolidated operating revenue of 10.64 billion RMB, an increase of 23.43% compared to the previous year[48]. - The consolidated net profit attributable to shareholders reached 737 million RMB, reflecting a growth of 10.06% year-on-year[48]. - The total assets of the company at the end of the reporting period amounted to 14.10 billion RMB, up 4.33% from the beginning of the year[48]. Dividend Distribution - The company plans to distribute a cash dividend of 2.4 RMB per 10 shares, totaling 330,720,000 RMB (including tax) based on a total share capital of 1,378,000,000 shares as of the end of 2021[4]. - The company distributed a cash dividend of 2.1 RMB per 10 shares, totaling 289,380,000 RMB, which represents 43.21% of the net profit attributable to shareholders for the year[155]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Certified Public Accountants[4]. - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[4]. - The company has established a transparent performance evaluation system for its management team, promoting accountability and effective management practices[111]. - The company emphasizes compliance management to enhance operational efficiency and safety[101]. - The company has a complete and independent financial accounting system, allowing for autonomous financial decision-making and compliance with relevant accounting standards[112]. Agricultural Operations and Strategy - The company emphasizes the importance of agricultural support protection subsidies to promote grain production and increase farmers' income[10]. - The company has a focus on expanding its agricultural production and management practices, including land transfer and management models[10]. - The company is committed to developing new crop varieties through breeding and seed production[10]. - The company has outlined its strategic plans for market expansion and potential mergers and acquisitions in the agricultural sector[10]. - The company operates in the agriculture sector, specifically in grain planting (A011), rice processing (C1311), edible oil processing (C1311), and agricultural materials trading (F5166 and F5167)[33]. - The company aims to enhance its agricultural social services through agricultural materials trading, supporting modern agricultural practices and new agricultural business entities[36]. - The company has established a comprehensive agricultural product quality traceability system since 2008, ensuring full traceability from planting to processing[41]. - The company has established deep research collaborations with several universities and research institutions, enhancing its technological capabilities[44]. Market and Competitive Landscape - The rice processing industry is characterized by small and scattered enterprises, with a trend towards scale, branding, and industrialization due to overcapacity and intense competition[36]. - The edible oil processing industry has experienced severe overcapacity since 2011, with the top 15 companies accounting for approximately 85% of total capacity[36]. - The competitive landscape in the rice processing industry is marked by intense regional competition, particularly in East China, where major players are vying for market share[36]. - The company is facing dual pressures of transformation and intense competition due to rising agricultural costs and external market challenges[79]. Research and Development - The company has obtained a total of 4 invention patents, 29 utility model patents, and 1 design patent, with a focus on agricultural technology innovation and research[44]. - Research and development expenses rose by 35.93% to 65.29 million RMB, driven by increased investment in R&D resources[51]. - The total R&D expenditure was 65,286,617.47 CNY, representing 0.61% of total revenue[68]. - The number of R&D personnel was 184, making up 1.86% of the total workforce[69]. Risk Management - The company faces risks from natural disasters that could significantly impact crop yields and quality[102]. - The company is exposed to product quality risks that could harm its brand image and lead to economic liabilities[104]. - Changes in tax incentives could adversely affect the company's financial performance[102]. - The company is at risk of not meeting expectations for the use of raised funds due to changes in market conditions and project feasibility[102]. Governance and Management - The company held one annual and one extraordinary shareholders' meeting during the reporting period, ensuring full communication and transparency with shareholders, especially minority shareholders[108]. - The board of directors consists of three independent directors, accounting for one-third of the total board, who actively participate in training and discussions on major company matters[108]. - The company has a diverse leadership team with members holding positions in multiple organizations, enhancing its strategic influence[5]. - The company has maintained continuity in its leadership roles while integrating new members to adapt to market changes[5]. Land Management - The company has contracted a total of 955,231 acres of land with an annual fee of 361.64 RMB per acre as of February 18, 2022[80]. - The company has expanded its land transfer area to approximately 250,200 acres since 2013, collaborating with local governments and farmers[80]. - The company manages a total of 1.33 million acres of agricultural land under various contracts, with no reported income from these management agreements[182]. Environmental and Social Responsibility - The company has actively engaged in environmental protection measures, with no administrative penalties reported during the reporting period[160]. - The company has engaged in a rural revitalization initiative, impacting 319,900 acres of farmland and selling 1,898.2 tons of quality seeds[165]. - The company has established a soil restoration technology research initiative to improve soil fertility[163].