JINHUI(SH:603919)2020-03-30 16:00Financial Performance - The company achieved a net profit of RMB 251,196,688.54 for the year 2019, with a 10% statutory surplus reserve of RMB 25,119,668.85 extracted[7]. - The total undistributed profits at the end of 2019 amounted to RMB 873,781,806.54 after distributing cash dividends of RMB 88,088,000.00 for the year 2018[7]. - A cash dividend of RMB 2.42 per 10 shares (including tax) will be distributed to shareholders, totaling RMB 94,428,399.52[7]. - The company plans to increase its total share capital to 507,259,997 shares by issuing 3 additional shares for every 10 shares held, totaling 117,059,999 shares[7]. - In 2019, the company's operating revenue reached ¥1,634,398,043.55, an increase of 11.76% compared to ¥1,462,412,630.65 in 2018[28]. - The net profit attributable to shareholders was ¥270,605,164.84, reflecting a growth of 4.64% from ¥258,616,295.35 in the previous year[28]. - The net cash flow from operating activities surged by 330.26% to ¥370,864,384.64, compared to ¥86,195,939.84 in 2018[28]. - The company's total assets increased by 17.70% to ¥3,178,409,582.00 at the end of 2019, up from ¥2,700,487,304.80 in 2018[28]. - The basic earnings per share remained stable at ¥0.71, with a diluted earnings per share also at ¥0.71 for 2019[29]. - The weighted average return on equity decreased by 1.73 percentage points to 11.84% in 2019, down from 13.57% in 2018[29]. - The company reported a total of ¥846,051.79 in non-recurring gains and losses for 2019, compared to ¥7,475,021.43 in 2018[34]. Operational Highlights - The company continues to focus on the production and sales of liquor, with a strong emphasis on ecological and cultural branding strategies[37]. - The sales model primarily relies on distributors, with a focus on selecting distributors based on various criteria including financial strength and market reputation[42]. - The company has established multiple product design studios to enhance product quality and meet customer demands through market research[39]. - The company is located in a favorable ecological environment in Gansu Province, which is essential for high-quality liquor production due to its abundant water resources and pollution-free surroundings[44]. - The company has a rich history in liquor production, dating back over 2,000 years, contributing to the strong cultural identity of its brand "Jinhui Liquor" in the Northwest region[46]. - The company utilizes advanced production techniques and strict quality management systems, ensuring high product quality and safety[48]. - The company has established a strong market presence in Northwest China, covering regions such as Gansu, Shaanxi, Ningxia, Xinjiang, Tibet, and Inner Mongolia[49]. - The company owns over 50 well-preserved ancient locust wood wine barrels, which enhance the quality of its premium products[50]. - The company has implemented a unique solid-state brewing IoT monitoring system, which has received a national invention patent and won a first-class award for commercial technological progress[53]. - The company has a strong talent pool with over 450 brewing technicians and a well-established R&D system focused on product quality and safety[54]. Strategic Initiatives - The company has initiated a five-year development plan (2019-2023) to enhance its governance structure and align management incentives with performance targets[57]. - The company plans to enhance the sales of high-end products and optimize product structure in response to market trends[97]. - The company aims to strengthen its market presence in the northwest region, focusing on Gansu, Shaanxi, Ningxia, and expanding into Inner Mongolia, Qinghai, and Xinjiang[119]. - The company has established a long-term mechanism for poverty alleviation, emphasizing sustainable development and self-sufficiency in the assisted regions[173]. - The company plans to continue its poverty alleviation efforts, focusing on industry, employment, education, and social assistance[176]. Social Responsibility - The company actively participated in social responsibility initiatives, including educational support and poverty alleviation efforts, enhancing its brand image[58]. - The company invested RMB 824.16 million in various poverty alleviation initiatives during the reporting period[175]. - A total of RMB 730.00 million was allocated to support 2,854 impoverished students as part of the education poverty alleviation efforts[175]. - The company provided vocational skills training to 6,321 individuals, with an investment of RMB 64.46 million in this area[175]. - The company has constructed a wastewater treatment plant with a daily processing capacity of 2,000 tons, ensuring that treated wastewater meets the GB27631-2011 standards, with most of it used for landscaping[180]. - The wastewater treatment plant operates 24/7 and has installed online monitoring equipment that uploads data every 10 minutes, ensuring compliance with environmental standards[181]. - The company has achieved a dust removal efficiency of 99% through the installation of advanced dust collection systems in its grain crushing workshop[182]. Risk Management - The report includes a risk statement regarding future plans and development strategies, indicating potential investment risks[8]. - The company faces risks from changes in the industry environment, including economic downturns affecting consumer purchasing power and increased competition[121]. - The company has a risk of supply shortages for essential raw materials due to environmental factors and potential policy changes[125]. - The company’s raw material costs may be affected by fluctuations in grain prices and packaging materials, which could impact operational performance if not managed effectively[125]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[5]. - The audit report for the company was issued by Tianjian Accounting Firm, confirming a standard unqualified opinion[6]. - The company has established a cash dividend policy, ensuring that cash dividends distributed each year will not be less than 30% of the net profit achieved in that year[131]. - The company’s board of directors will propose a differentiated cash dividend policy based on the company's development stage and significant capital expenditure plans[135]. - The company has not disclosed any reasons for not proposing a cash profit distribution plan during the reporting period despite having positive distributable profits[138]. Environmental Compliance - The company has established a complete environmental protection system and has been certified as an "A-level enterprise" in environmental protection standards[125]. - The company has maintained compliance with environmental standards, with no exceedances reported in pollutant emissions[179]. - The company has developed an emergency response plan for environmental incidents, which has been revised and approved by local environmental authorities[184]. - The company has engaged a third-party firm for monthly environmental monitoring, with results published on the provincial environmental statistics platform[186]. - The company’s high-efficiency dust removal devices ensure that emissions meet the GB13271-2014 standards for air pollutants[182]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 25,213, down from 26,821 at the end of the previous month[194]. - Gansu Yate Investment Group Co., Ltd. held 201,212,050 shares, representing 51.57% of total shares, with 156,160,000 shares pledged[197]. - The first employee stock ownership plan holds 4,928,571 shares, accounting for 1.26% of total shares[197]. - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder owning over 51%[197]. - The company has not issued any new securities during the reporting period[194].