TIANMA TECH(SH:603668)2021-04-29 16:00Financial Performance - The company reported no cash dividend distribution, capital reserve transfer to share capital, or stock dividend distribution for the year 2020[7]. - The company’s operating revenue for 2020 was approximately ¥3.64 billion, representing a 49.89% increase compared to ¥2.43 billion in 2019[25]. - The net profit attributable to shareholders for 2020 was approximately ¥68.94 million, a 21.26% increase from ¥56.85 million in 2019[25]. - The basic earnings per share for 2020 was ¥0.20, an increase of 11.11% compared to ¥0.18 in 2019[26]. - The weighted average return on equity for 2020 was 5.83%, up by 0.48 percentage points from 5.35% in 2019[26]. - The total assets at the end of 2020 were approximately ¥3.30 billion, a 21.15% increase from ¥2.73 billion at the end of 2019[25]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥1.22 billion, reflecting a 6.41% increase from ¥1.15 billion at the end of 2019[25]. - The company reported a net profit of approximately ¥40.22 million in Q2 2020, which was the highest quarterly profit for the year[29]. - The company experienced a net loss of approximately ¥12.06 million in Q4 2020, indicating challenges in the latter part of the year[29]. - The company achieved a total operating revenue of CNY 363,995.70 million, representing a year-on-year growth of 49.89%[86]. - The net profit attributable to the parent company was CNY 68,943.50 million, with a year-on-year increase of 21.26%[86]. - The total assets reached CNY 330,304.46 million, up 21.15% from the previous year[86]. Audit and Compliance - The company received a standard unqualified audit report from Rongcheng Accounting Firm[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible persons[6]. - The company has not violated decision-making procedures for external guarantees[9]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not proposed any cash profit distribution plan for 2020, citing strategic upgrades and the need to retain earnings for working capital and future development[142]. - The company has a commitment to ensure that any related party transactions are conducted at fair market prices[145]. - The company has established a commitment to strictly adhere to its promises regarding related party transactions and to maintain the independence of its operations[145]. Risk Management - The company has outlined potential risks in its future development strategy and operational plans, which are detailed in the report[10]. - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements[8]. - The company has a comprehensive risk management strategy to mitigate risks from natural disasters, raw material price fluctuations, and talent retention[134]. Business Operations and Strategy - The company’s stock is listed on the Shanghai Stock Exchange under the code 603668[22]. - The company has established a modern ecological circular aquaculture model, promoting environmentally friendly practices in eel farming[39]. - The company aims to build a national good seed base in the future, expanding its seedling promotion system[40]. - The company is actively expanding its export business, maintaining a positive trend in eel exports and live eel trade[39]. - The company emphasizes a comprehensive quality control system to ensure food safety across its operations[39]. - The company has implemented a "center + subsidiary" operational model, establishing various centers to support procurement, production, R&D, finance, marketing, and human resources[47]. - The company is focused on expanding its product offerings, including frozen grilled eel and local specialties, supported by a strong R&D system[52]. - The company is committed to a full industry chain strategy, integrating aquaculture, feed production, and food processing to provide healthy food products[127]. - The company aims to enhance its competitive advantage by extending its business model along the entire industry chain, focusing on technology and scale effects[122]. Research and Development - The company has established strategic partnerships with several universities and research institutions to enhance its R&D capabilities[70]. - The company holds 62 patents, including 51 invention patents, showcasing its commitment to innovation and technology development[70]. - The company is actively involved in the research and development of new feed products, with a focus on enhancing nutritional value and production efficiency[43]. - The total R&D expenditure amounted to CNY 85.70 million, accounting for 2.35% of total operating income, with a year-on-year increase of 26.75%[105][106]. Environmental and Social Responsibility - The company emphasizes maintaining food safety and quality, adhering to multiple management systems including ISO9001 and HACCP[136]. - The company is focused on sustainable development and improving the quality of aquatic products through advanced processing techniques and logistics systems[124]. - The company has a strong commitment to corporate social responsibility, actively participating in charitable activities and community support[195]. - The company contributed 1 million RMB to the local talent training fund and made various donations totaling over 1.5 million RMB to support education and social welfare initiatives[195]. - The company donated approximately RMB 4.875 million in cash and materials to support COVID-19 prevention efforts[189]. Market Trends and Industry Insights - The special aquatic feed industry in China has seen a compound annual growth rate (CAGR) of 7.12% from 2006 to 2020, with production increasing from 752,400 tons to 1,971,000 tons[58]. - The feed production industry in China saw a compound annual growth rate of 4.55% from 2010 to 2020, with total feed production increasing from 16,202 million tons to 25,276.1 million tons[121]. - The overall market for China's feed industry remains promising due to the continuous growth in demand for meat products driven by rising incomes and urbanization[58]. Future Plans and Goals - The company aims to achieve a revenue target of 450 million to 550 million yuan and a net profit target of 10 million to 13 million yuan in 2021[129]. - The company plans to enhance its global marketing layout through the "Hundred Regiments Battle" strategy, aiming for rapid revenue growth and market expansion[127]. - The company aims to strengthen its talent pool by establishing a resource database and enhancing the recruitment of high-quality leadership talent[132]. - The company plans to enhance its information technology infrastructure, including the integration of various management systems and digitalization of operations[132].