GREAT-SUN(SH:603336)2021-03-26 16:00Financial Performance - The company's operating revenue for 2020 was CNY 964,036,408.96, representing a 13.16% increase compared to CNY 851,958,111.77 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 73,157,821.12, a decrease of 7.37% from CNY 78,976,900.87 in 2019[25]. - The net cash flow from operating activities for 2020 was CNY 23,748,638.35, down 6.07% from CNY 25,283,858.34 in 2019[25]. - The total assets at the end of 2020 were CNY 1,510,508,739.72, a 39.50% increase from CNY 1,082,808,121.09 at the end of 2019[25]. - The basic earnings per share for 2020 was CNY 0.22, down 8.33% from CNY 0.24 in 2019[26]. - The weighted average return on equity for 2020 was 8.13%, a decrease of 1.26 percentage points from 9.39% in 2019[26]. - The comprehensive gross profit margin for the company was 12.47%, down 3.01 percentage points from the previous year, with sales prices declining by 15.93%[56]. - Operating profit was RMB 73.30 million, a decrease of 8.78% year-on-year, while net profit was RMB 73.19 million, down 7.38% year-on-year[68]. - The net profit attributable to the listed company was RMB 73.16 million, a decrease of 7.37% year-on-year, primarily due to the appreciation of the RMB and increased interest expenses from convertible bonds[56]. Dividend and Shareholder Information - The company plans to distribute a total cash dividend of CNY 21,950,000 (including tax) to shareholders, with a capital reserve conversion of 3 shares for every 10 shares held[6]. - In 2020, the company distributed a cash dividend of 0.6505 CNY per share, totaling 21,950,000 CNY (after tax) based on a total share capital of 337,432,575 shares[128]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[129]. - The company approved a profit distribution plan on April 29, 2020, distributing a cash dividend of 1.10 RMB per 10 shares and issuing 3 bonus shares for every 10 shares held, resulting in a total share capital increase to 326,774,175 shares[170]. - The total number of shares after the profit distribution and conversion activities reflects the company's strategy to enhance shareholder value through dividends and capital increases[170]. Audit and Compliance - The company has received a standard unqualified audit report from Asia-Pacific (Group) CPA[5]. - The company has committed to maintaining the integrity and completeness of its financial reporting and accounting practices[131]. - The company has retained the auditing firm Asia-Pacific (Group) CPA for the 2020 fiscal year, with an audit fee of 650,000 CNY[135]. - There were no significant lawsuits or arbitration matters reported for the year[136]. - The company has a good integrity status, with no instances of failing to repay large debts or fulfill commitments during the reporting period[136]. Risk Management - The company has detailed the major risks associated with its operations in the annual report, which investors should review[9]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a substantive commitment to investors[7]. - The company faces risks related to price fluctuations of fruit and vegetable products, which can impact gross margins and overall performance due to various external factors[118]. - The company acknowledges potential risks from natural disasters and climate change that could affect production yields and quality, and is enhancing disaster management practices[119]. - The company is closely monitoring market demand and economic conditions to mitigate risks associated with new business ventures in frozen foods and grain oil[122]. Business Operations and Strategy - The company operates multiple wholly-owned subsidiaries across various regions, enhancing its market presence[15]. - The company maintains a business model integrating planting management, post-harvest acquisition, cold storage, processing, and distribution of fresh produce[34]. - The company continues to focus on quality control and traceability in its supply chain through a "company + base + farmer" model[39]. - The company has not changed its main business operations during the reporting period[34]. - The company is actively expanding its market presence through new product development and strategic partnerships, enhancing its competitive edge[50]. - The company aims to deepen its integration within the agricultural supply chain, enhancing its service capabilities and product offerings[53]. - The company is focusing on developing new business areas such as frozen foods and grain oil, with projects underway in Guangdong and Guangzhou to establish production and distribution capabilities[116]. Investments and Acquisitions - The company acquired 100% equity of TJL PLANTATION SDN. BHD. for approximately RMB 58.6 million (34,742,240.23 Malaysian Ringgit) on April 23, 2020[47]. - The company invested RMB 97 million in the construction of processing and distribution bases in Guangzhou and Shanghai, enhancing its logistics capabilities[65]. - The company has invested approximately RMB 30 million in the Guangzhou Jiajia Mai edible oil processing, bottling, and distribution project, focusing on products like peanut oil, corn oil, and olive oil[99]. - The company completed the acquisition of 100% equity in TJL Plantation Sdn. Bhd. as part of its investment in a tropical fruit plantation project in Malaysia[96]. Supply Chain and Quality Control - The company emphasizes the importance of agricultural production standards and certifications, such as GLOBALGAP and ISO standards, to ensure product quality[15]. - The company has received various international quality certifications, including GLOBALGAP, ISO22000, and ISO9001, ensuring product quality and safety[52]. - The company has implemented a strict quality control system to ensure product safety and quality, which is crucial for maintaining market access and competitiveness[117]. - A closed-loop quality control system will be established to prioritize product safety and quality, facilitating market access through domestic and international certifications[113]. - The development of cold chain logistics is emphasized to reduce post-harvest losses and maintain product quality, which is crucial for modern agricultural supply chains[110]. Employee and Community Engagement - The company actively listens to employee feedback and promotes skill training to enhance employee satisfaction and development[149]. - The company has a commitment to social responsibility, focusing on employee rights and community engagement[149]. - The company has invested in poverty alleviation projects, increasing procurement from impoverished areas to boost farmers' incomes and create jobs[152]. - A strategic cooperation agreement was signed with Guangzhou Qianxian E-commerce Co., Ltd. to promote consumption poverty alleviation initiatives[152]. Financial Instruments and Capital Structure - The company issued 3.32 million convertible bonds totaling RMB 332 million to support its projects and working capital[66]. - The initial conversion price of the convertible bonds was adjusted from RMB 14.61 to RMB 10.00 per share effective May 22, 2020[157]. - The total number of bondholders at the end of the reporting period was 8,373, with the top ten holders owning a combined total of RMB 56.5 million in bonds[159]. - The cumulative conversion amount during the reporting period was RMB 106.29 million, representing 3.25% of the company's total shares before conversion[161]. - The company's long-term credit rating remains at AA- with a stable outlook, as assessed by China Chengxin International Credit Rating Co., Ltd.[165].