LEHUI International(SH:603076)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was CNY 852,148,606.43, representing a 13.05% increase from CNY 753,770,003.25 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 105,674,118.60, a significant recovery from a loss of CNY 24,813,581.09 in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 84,220,735.90, compared to a loss of CNY 37,218,190.80 in the previous year[21]. - The net cash flow from operating activities was CNY 163,308,432.90, a decrease of 4.82% from CNY 171,587,447.60 in 2019[21]. - The total assets at the end of 2020 were CNY 1,815,703,121.35, down 7.73% from CNY 1,967,735,544.38 at the end of 2019[21]. - The net assets attributable to shareholders increased by 13.55% to CNY 856,734,656.19 from CNY 754,529,542.93 in 2019[21]. - The company reported a basic earnings per share of 1.42 RMB in 2020, a significant recovery from a loss of 0.33 RMB per share in 2019[22]. - The company achieved a net profit attributable to shareholders of 105.67 million yuan, with a net profit excluding non-recurring gains and losses of 84.22 million yuan[40]. - Total operating revenue reached 852.15 million yuan, representing a year-on-year increase of 13.05%, while operating costs increased by 10.70% to 595.33 million yuan[47]. - The gross profit margin improved by 1.42 percentage points, with main business revenue of 844.48 million yuan, up 13.19% year-on-year[40]. Investment and Expansion - The company is investing in craft beer business projects, including the Ningbo Damu Bay Craft Beer Cultural and Tourism Complex and the Shanghai Songjiang Urban Craft Beer Experience Factory[33]. - The company is actively pursuing two fundraising projects: the fresh beer vending machine operation project and the same-day fresh craft beer workshop project, which are crucial for sales growth[86]. - The company has established subsidiaries in key markets such as Nigeria, Brazil, and Myanmar, enhancing its international competitiveness[36]. - The company plans to establish craft beer experience factories in major cities, enhancing brand recognition and consumer engagement[85]. - The company has completed the Shanghai Songjiang craft beer project with an annual production capacity of 3,000 tons, currently operating at full capacity[85]. Risk Management - The company has outlined potential risks in its forward-looking statements, emphasizing the importance of investor awareness regarding investment risks[5]. - The company is facing risks related to the COVID-19 pandemic, which has impacted production and exports, as well as financial risks from high accounts receivable and inventory levels[88]. - The company is facing management risks due to increased mergers and acquisitions and the establishment of overseas subsidiaries, which may lead to discrepancies in legal, accounting, and cultural practices[90]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of CNY 1.50 per 10 shares, totaling CNY 12,932,286.90[4]. - The cash dividend payout ratio for 2020 is 12.24%, which is below 30% due to the need for capital investment in ongoing projects and short-term borrowings exceeding RMB 200 million[96]. - The proposed profit distribution plan includes a cash dividend of RMB 1.50 per 10 shares, totaling RMB 12,932,286.90, and a capital reserve transfer of 4 shares for every 10 shares held, increasing the total shares from 86,215,246 to 120,701,344[94]. - The company aims to maintain a sufficient level of undistributed profits to reduce external borrowing and lower financial costs, supporting its dual business strategy in equipment manufacturing and craft beer[95]. Corporate Governance - The company has implemented an Amiba management model to reduce costs and improve management efficiency across subsidiaries[84]. - The company maintains complete independence from its controlling shareholder, ensuring no non-operating fund occupation or information disclosure violations occurred[175]. - The company’s governance structure includes four specialized committees to enhance decision-making efficiency and professionalism[174]. - The board of directors held a total of 7 meetings in 2020, with 5 conducted via communication methods and 2 combining on-site and communication methods[179]. Environmental and Social Responsibility - The company has established a comprehensive environmental protection management system, ensuring compliance with environmental standards[129]. - The company has implemented safety management practices, achieving recognition as a model enterprise for safety production standards in Ningbo[129]. - The company donated RMB 800,000 to support COVID-19 prevention and treatment efforts[130]. - The company signed a strategic cooperation agreement for targeted poverty alleviation with Xiangshan County People's Government and China Agricultural Bank, purchasing Yanbian rice for RMB 102,977.6[130]. Market Trends and Industry Insights - The beer market in China has seen a decline in total consumption since 2013, with production dropping from 38.12 million kiloliters in 2018 to 34.11 million kiloliters in 2020, reflecting a trend towards premiumization[65]. - The craft beer segment in China saw an increase in consumption, with sales reaching 873,000 kiloliters in 2019, accounting for 2.1% of total beer consumption[79]. - The overall sales revenue of the dairy processing industry in China was CNY 419.558 billion in 2020, marking a growth of 6.22%[68]. Employee and Talent Management - The total number of employees in the parent company is 513, while the total number of employees in major subsidiaries is 445, resulting in a combined total of 958 employees[168]. - The company has established a comprehensive talent training system, focusing on personalized training plans for different departments and positions to enhance employee skills[170]. - The remuneration for directors, supervisors, and senior management is determined based on the company's performance evaluation and approved by the board of directors[165]. Audit and Compliance - The audit report for the company was issued by Zhonghua Certified Public Accountants, confirming the accuracy and completeness of the financial statements[7]. - The company has not reported any significant accounting errors or issues that would affect its financial reporting[103]. - The company has not made any significant changes to its accounting policies that would materially affect its financial position[102].