KINGKEY SMART AGRI(SZ:000048)2021-03-25 16:00Financial Performance - The company's operating revenue for 2020 was CNY 4,071,503,296.81, a decrease of 17.22% compared to 2019[24]. - Net profit attributable to shareholders for 2020 was CNY 866,563,499.30, down 21.28% from CNY 1,100,831,801.48 in 2019[25]. - The net cash flow from operating activities increased by 78.15% to CNY 1,806,061,154.61 in 2020[25]. - Total assets at the end of 2020 reached CNY 9,903,753,908.17, reflecting a 53.02% increase from CNY 6,471,993,600.37 at the end of 2019[25]. - The company's net assets attributable to shareholders rose by 28.93% to CNY 2,752,406,812.98 at the end of 2020[25]. - The company reported a basic earnings per share of CNY 2.1530, a decrease of 21.28% from CNY 2.7350 in 2019[25]. - Total revenue for 2020 was approximately $4.07 billion, a decrease of 17.22% compared to $4.92 billion in 2019[59]. - The revenue from the real estate development sector was approximately $3.22 billion, accounting for 79.13% of total revenue, with a year-on-year decrease of 5.64%[60]. - The feed production revenue was approximately $690 million, representing 16.95% of total revenue, with a year-on-year decrease of 24.78%[61]. - The company's sales volume in the feed production sector decreased by 27.47% to approximately 238,021 tons in 2020[63]. - The gross profit margin for the real estate development sector was 68.57%, with a decrease of 0.95% compared to the previous year[61]. - The total operating costs for the feed production sector were approximately $618 million, down 25.68% from $832 million in 2019[64]. - The company reported a significant reduction in water supply revenue, which fell by 81.91% to approximately $60 million[59]. - The revenue from the Shenzhen region accounted for 81.38% of total revenue, with a year-on-year decrease of 13.74%[60]. - The company experienced a 52.92% decline in financial revenue, dropping to approximately $557,000[61]. - The total revenue for 2020 was 5,333,187,026.16 CNY, representing a 10.80% increase compared to 2019[80]. - Research and development expenses rose by 12.68% to 33,527,987.19 CNY, accounting for 0.82% of total revenue[77]. - The company reported a significant decrease in sales costs in the breeding industry, down 18.04% to 73,522,021.86 CNY[74]. - The company reported a total revenue of 129,818.31 million yuan for the year 2020, with a cumulative payment of 23,194.66 million yuan by the end of the reporting period[165]. Profit Distribution - The company reported a profit distribution plan to distribute a cash dividend of 15 RMB (including tax) for every 10 shares, along with 3 bonus shares (including tax), based on a total share capital of 402,491,731 shares as of December 31, 2020[5]. - In 2020, the company distributed cash dividends of 603,737,596.50 yuan (including tax), which accounted for 69.67% of the net profit attributable to ordinary shareholders[115]. - The cash dividend distribution for 2020 represents a significant increase compared to the previous year's distribution of 301,868,798.25 yuan, which was 27.42% of the net profit[115]. - The profit distribution plan for 2020 includes a cash dividend of 15 yuan per 10 shares and a bonus share distribution of 3 shares per 10 shares, totaling 120,747,519 shares[118]. Business Operations and Strategy - The company expanded its business scope to include livestock breeding, sales, and pork slaughtering, as well as meat product packaging, cold storage, and transportation, effective from September 2020[20]. - The company operates in three main sectors: modern agriculture, real estate, and financial investment, focusing on standardized livestock farming and food safety[33]. - The company plans to build multiple integrated pig industry chain projects in Guangdong Province and surrounding areas[35]. - The company has signed 11 framework agreements with local governments in Guangdong, Guangxi, and Hainan, targeting a total production capacity of approximately 13 million pigs[37]. - The company's breeding model allows for a maximum output of 180,000 pigs per production line, enhancing operational efficiency and reducing health risks through closed-group management[38]. - The company has established a comprehensive food safety traceability system across its entire supply chain, ensuring quality control from feed production to end sales[40]. - The company has developed a proprietary breeding technology system, reducing reliance on external breeding sources and associated costs[39]. - The company has implemented energy-saving and environmentally friendly practices, including automatic manure cleaning and closed-loop waste treatment systems[38]. - The company has established strategic partnerships with institutions like South China Agricultural University to enhance its research and development capabilities in breeding and nutrition[42]. - The company aims to achieve the goal of "domestic breeding of quality pigs" through its collaboration with the Chinese Academy of Agricultural Sciences[39]. - The company has signed framework agreements for pig farming projects with multiple local governments, targeting a total production capacity of approximately 13 million pigs[49]. - The first phase of the Gaozhou project, designed for an annual capacity of 540,000 pigs, successfully completed its first building in August 2020 and began production in October 2020[49]. - The company achieved a breeding stock of over 40,000 sows by the end of the reporting period, with ongoing projects progressing steadily[49]. - The company is actively expanding its market presence and product offerings, including a strategic cooperation agreement with the Shenzhen Market Supervision Administration to stabilize supply and prices[49]. - The company plans to launch the Shanhai Gongguan and Shanhai Yuyuan projects in the second half of 2021, with ongoing construction progress[55]. - The company is facing increased financing costs in the real estate sector due to new regulatory measures aimed at stabilizing the housing market[48]. - The company will enhance its research and development in feed products, particularly for special aquatic feeds, to maintain competitive advantage[103]. - The company plans to maintain its annual chick production at the 2020 level while gradually expanding production[103]. - The company will continue to explore new sales channels and commercial models to strengthen its brand presence in the market[103]. - The company anticipates that the price of live pigs will decline in 2021 due to recovering production capacity and normalizing market demand[101]. - The company will implement strict biosecurity measures to mitigate risks associated with disease outbreaks in livestock[106]. - The company is committed to enhancing its environmental compliance by upgrading production facilities to meet regulatory standards[106]. - The company plans to increase R&D investment to improve breeding efficiency and reduce costs in the pig farming sector, addressing the cyclical price fluctuations of live pigs[107]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 13,359, an increase from 13,165 at the end of the previous month[185]. - The largest shareholder, Jingji Group Co., Ltd., holds 42.88% of the shares, totaling 172,597,757 shares[185]. - The company has a total of 402,491,731 shares, with 99.98% being unrestricted shares[183]. - The company reported a significant increase in shareholder engagement, with a notable rise in the number of shareholders holding more than 5% of shares[185]. - The controlling shareholder, Jingji Group, holds 172,597,757 shares, representing a significant portion of the company's equity[188]. - The second largest shareholder, Shenzhen Jingji Times Industrial Co., Ltd., holds 120,141,071 shares, indicating a strong alignment in shareholder interests[188]. - The top ten unrestricted shareholders collectively hold a substantial number of shares, with the largest shareholder owning approximately 100% of the voting rights[188]. - The company plans to increase its shareholding by investing between RMB 100 million and RMB 200 million within six months starting from November 30, 2020[197]. - The actual controller, Chen Hua, has not changed during the reporting period, ensuring stability in management[191]. - The company does not have any preferred shares outstanding, simplifying its capital structure[199]. Regulatory and Compliance - The company has not reported any changes in its controlling shareholders during the reporting period[20]. - The company’s financial report for the reporting period does not show any discrepancies between international accounting standards and Chinese accounting standards regarding net profit and net assets[22]. - The company’s financial advisor and continuous supervision responsibilities during the reporting period were not applicable[21]. - The company’s accounting firm is Dahua Certified Public Accountants (Special General Partnership) with no changes reported in the accounting firm during the reporting period[21]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[123]. - The company has not faced any bankruptcy reorganization matters during the reporting period[131]. - The company has maintained normal performance in fulfilling its commitments regarding related party transactions and competition avoidance[121]. - The company has not reported any significant accounting errors requiring retrospective restatement during the reporting period[125]. - The company has not experienced any changes in the scope of consolidated financial statements compared to the previous year[126]. - The company faced litigation involving an amount of 21.95 million RMB, but it did not form any expected liabilities[132]. - The company received a warning and a fine of 400,000 RMB from the China Securities Regulatory Commission for suspected information disclosure violations[134]. - The company reported a total of 427.94 million RMB in related party transactions, with 96.77% of the transactions priced at market rates[139]. - The company has a total external guarantee amount of 360 million RMB, with actual guarantees amounting to 234.79 million RMB[153]. - The company is involved in a city renewal project covering approximately 243,000 square meters of land in Shenzhen[144]. - The total approved guarantee amount for subsidiaries during the reporting period was CNY 480,000, with an actual guarantee amount of CNY 77,300[156]. - The total guarantee amount at the end of the reporting period was CNY 840,000, with an actual guarantee balance of CNY 312,090.8, representing 113.39% of the company's net assets[157]. - The company engaged in entrusted financial management with a total amount of CNY 233,525.99, of which CNY 5,702.47 was the balance of unexpired investments[159]. - The company has no instances of unauthorized external guarantees during the reporting period[158]. - The company has no entrusted loan situations during the reporting period[160]. - The company has cumulative payments of CNY 14,779.03 for the construction contract with Guangxi Construction Group as of the end of the reporting period[163]. - The company has cumulative payments of CNY 31,345.54 for another construction contract with Guangxi Construction Group as of the end of the reporting period[163]. - The company has cumulative payments of CNY 40,520.28 for real estate project development and management services as of the end of the reporting period[163]. - The company has cumulative payments of CNY 10,202.15 for the construction contract with Guangdong Wuchuan Construction and Installation Engineering as of the end of the reporting period[163]. - The company has no overdue amounts in its entrusted financial management[159]. Corporate Social Responsibility - The company actively engaged in social responsibility by donating pandemic prevention materials worth hundreds of thousands of yuan and providing support to frontline workers during the COVID-19 outbreak[172]. - The company emphasizes environmental protection by upgrading its facilities and adopting advanced technologies for waste treatment, aiming for a sustainable development model[170]. - The company has received multiple honors, including "2019 Guangdong Province Contract-abiding and Trustworthy Enterprise" and "2020 Excellent 'Zhenpin' Enterprise," reflecting its commitment to quality and social responsibility[170]. - The company has not yet initiated targeted poverty alleviation efforts and has no plans for such initiatives in the near future[173]. - The company has established a talent training system with five major series of training programs to enhance employee skills and promote organizational capability[169]. - The company has implemented a comprehensive safety production management system, ensuring a safe working environment for employees and addressing health concerns during the COVID-19 pandemic[167]. Market Trends and Industry Outlook - The agricultural industry is transitioning towards modernization, with a focus on scale, intelligence, and traceability, presenting new development opportunities for large enterprises[97]. - In 2020, the national poultry output reached 15.57 billion birds, with a total poultry meat production of 23.61 million tons, while the top four listed poultry companies accounted for only 12.11% of the total output[98]. - The national pig output in 2020 was 52.704 million heads, with 13 listed pig companies collectively accounting for 10.53% of the market share[98]. - The company plans to achieve a production capacity of approximately 13 million heads in the Guangdong-Hong Kong-Macao Greater Bay Area, with over 2 million heads already in production[102]. - The company aims to accelerate pig production and expects the first batch of pigs to be sold by May 2021, while also focusing on project development and construction[102].