JINHUI(SH:603919)2021-03-19 16:00Financial Performance - The company achieved a net profit of RMB 292,613,802.15 for the year 2020, with a statutory surplus reserve of RMB 29,261,380.22 deducted, resulting in an undistributed profit of RMB 1,042,705,828.95 at the end of 2020[6]. - The company's operating revenue for 2020 was CNY 1,730,671,339.32, an increase of 5.89% compared to CNY 1,634,398,043.55 in 2019[27]. - The net profit attributable to shareholders for 2020 was CNY 331,317,332.77, representing a growth of 22.44% from CNY 270,605,164.84 in 2019[27]. - The net cash flow from operating activities decreased by 9.09% to CNY 337,143,809.16 in 2020 from CNY 370,864,384.64 in 2019[27]. - The total assets at the end of 2020 were CNY 3,531,948,502.03, an increase of 11.12% from CNY 3,178,409,582.00 at the end of 2019[27]. - The basic earnings per share for 2020 was CNY 0.65, an increase of 18.18% compared to CNY 0.55 in 2019[27]. - The gross profit margin improved to 62.89%, an increase of 2.10 percentage points compared to the previous year[78]. - The company reported a total of CNY 341,791.99 in non-recurring gains and losses for 2020, down from CNY 846,051.79 in 2019[31]. Dividend Distribution - A cash dividend of RMB 2.40 per 10 shares (including tax) is proposed, totaling RMB 121,742,399.28 to be distributed to shareholders[6]. - After the dividend distribution, the remaining undistributed profit will be RMB 920,963,429.67, carried forward to the next year[6]. - The cash dividends for 2020 represent 36.74% of the net profit attributable to ordinary shareholders, while the 2019 dividends represented 34.90%[154]. - In 2019, the company distributed cash dividends of RMB 2.42 per 10 shares, totaling RMB 94,428,399.52 (including tax) and issued 3 bonus shares for every 10 shares held[154]. Corporate Governance - The board of directors and senior management have confirmed the accuracy and completeness of the annual report[3]. - The company operates under the supervision of the China Securities Regulatory Commission and adheres to relevant regulations[21]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[10]. - The company has maintained good integrity status for itself and its controlling shareholders during the reporting period[162]. - The company did not face any risks of suspension or termination of listing during the reporting period[162]. Risk Management - The report includes a risk statement indicating that future plans and strategies do not constitute a substantive commitment to investors, highlighting investment risks[8]. - The company faces significant risks due to economic downturns affecting liquor consumption, with potential for substantial declines in operating performance if product structure and marketing strategies are not optimized[134]. - The company is exposed to risks from rising raw material prices, particularly grains and packaging materials, which could adversely affect production costs if not managed effectively[141]. - The ongoing COVID-19 pandemic poses risks to consumption scenarios, and the company is focusing on high-end product promotion to mitigate these impacts[144]. Marketing and Sales Strategy - The company has a strong marketing network covering regions such as Gansu, Shaanxi, Ningxia, Xinjiang, Tibet, Inner Mongolia, and Qinghai, establishing itself as a leading brand in the northwest market[34]. - The company primarily utilizes a distributor model for sales, with distributors selected based on various criteria including financial strength and market reputation[52]. - The company is actively expanding its sales network beyond Gansu to other regions, aiming to establish a nationwide brand presence[60]. - The company plans to implement a "deep distribution + major customer operation" dual-driven marketing model in 2021 to enhance high-end product sales[110]. - Online sales strategies are being developed to integrate online and offline channels, enhancing customer experience and service quality[119]. Research and Development - The company has established a research and development team led by national-level wine judges to innovate and improve product offerings based on market demand[47]. - The company invested CNY 40,121,940.60 in R&D, a 40.07% increase from the previous year, reflecting a focus on innovation[76]. - The total R&D expenditure was ¥40,121,940.60, accounting for 2.32% of total revenue, with 242 R&D personnel representing 11.16% of the total workforce[91]. - The company has developed a unique solid-state brewing IoT monitoring system, the first of its kind in the domestic liquor industry, which has received a national invention patent[63]. Social Responsibility - The company actively participates in poverty alleviation efforts, contributing RMB 1,307.85 million in funds and RMB 66.80 million in material donations[181]. - The company donated CNY 728,000 to support 2,908 impoverished college students in Northwest China during the reporting period[72]. - The company provided vocational skills training with an investment of RMB 69.13 million, benefiting 4,837 individuals[183]. - The company donated RMB 3 million to support COVID-19 prevention efforts and RMB 5 million for disaster relief in Gansu Province[184]. - The company plans to continue its poverty alleviation initiatives and align them with rural revitalization strategies in the future[185]. Environmental Compliance - The company has achieved "Environmental Protection Standardization A Level" certification, indicating compliance with national environmental protection laws and regulations[135]. - The company has a wastewater treatment facility with a daily processing capacity of 2,000 tons, ensuring compliance with the discharge standards for wastewater[189]. - The total annual emissions of wastewater were 18.230 tons, which is below the approved discharge limit of 29.000 tons[188]. - The company achieved a dust removal efficiency of 99% through advanced dust collection systems installed in its grain crushing workshop[192]. - The company has implemented an online monitoring system for its wastewater treatment plant, uploading data every 10 minutes to ensure compliance with environmental standards[191]. Related Party Transactions - The total amount of related party transactions for the year reached ¥28,119,952.68, accounting for 1.6498% of similar transactions[171]. - The company sold liquor products to various related parties, with the largest transaction amounting to ¥11,223,452.96, representing 0.6581% of similar transactions[165]. - The pricing principle for all related party transactions was based on market prices[165]. - The company confirmed that there were no significant changes or progress in previously disclosed related party transactions[169].