SHUNXIN AGRICULTURE(SZ:000860)2023-03-24 16:00Corporate Governance - The company reported a plan not to distribute cash dividends, issue bonus shares, or increase capital from reserves[5]. - The company’s legal representative is Li Yinglin[16]. - The company has not changed its main business since its listing[19]. - The company has not experienced any changes in its controlling shareholders[19]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in its annual report[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[4]. - The company’s annual report is available on the Shenzhen Stock Exchange website and other financial media[18]. - The company’s contact information includes a dedicated email for investor relations: sxnygf000860@163.com[17]. - The company maintains a complete separation from its controlling shareholders in terms of business operations, personnel, and financial management, ensuring independent operational capabilities[98]. - The company is committed to enhancing its corporate governance structure in compliance with relevant laws and regulations, aiming for improved decision-making and management efficiency[97]. - The company held its annual shareholder meeting with a participation rate of 45.66% on May 25, 2022, indicating strong investor engagement[99]. - A temporary shareholder meeting was conducted on December 26, 2022, with a participation rate of 48.28%, reflecting ongoing investor interest in corporate governance[99]. - The company has a diverse management team with backgrounds in finance, law, and international trade, enhancing its strategic capabilities[105]. - The management team includes professionals with extensive experience in various sectors, contributing to the company's operational efficiency[108]. - The company has established a clear framework for remuneration adjustments based on performance and regulatory standards, ensuring competitive compensation[110]. - The board of directors includes individuals with significant experience in finance and management, which supports strategic decision-making[109]. - The company has a robust governance structure with independent directors providing oversight and strategic guidance[106]. - The management team is actively involved in various subsidiaries, indicating a hands-on approach to leadership and operational management[107]. - The company emphasizes the importance of performance-based remuneration to motivate and retain key talent[110]. - The total remuneration for directors, supervisors, and senior management amounted to 10.5638 million yuan[110]. - The company has maintained a stable leadership structure with key positions filled promptly after resignations[103]. - The overall management transition is aimed at aligning with the company's long-term vision and operational needs[103]. Financial Performance - The company's operating revenue for 2022 was ¥11.68 billion, a decrease of 21.46% compared to ¥14.87 billion in 2021[20]. - The net profit attributable to shareholders was a loss of ¥673.23 million, representing a decline of 758.08% from a profit of ¥102.30 million in 2021[20]. - The total assets at the end of 2022 were ¥20.26 billion, an increase of 4.45% from ¥19.39 billion at the end of 2021[20]. - The net assets attributable to shareholders decreased by 8.90% to ¥7.08 billion from ¥7.77 billion in 2021[20]. - The company reported a basic earnings per share of -¥0.9076, down 758.16% from ¥0.1379 in 2021[20]. - The revenue from the liquor business was CNY 8.11 billion, down 20.70% year-on-year, accounting for 69.44% of total revenue[58]. - The pork business generated revenue of CNY 2.56 billion, representing a decline of 22.84% year-on-year, and accounted for 21.89% of total revenue[58]. - The total revenue for the company in 2022 was approximately CNY 11.69 billion, a decrease of 21.20% compared to the previous year[59]. - The company's gross profit margin for the liquor industry improved to 44.20%, an increase of 6.48% compared to the previous year[60]. - The company reported a significant reduction in raw material costs, which decreased by 48.04% to CNY 2.29 billion, reflecting improved cost management[65]. - The company reported a significant increase in gross profit for its liquor segment in the first half of 2022, attributed to improved sales strategies and market positioning[94]. Market and Industry Trends - The white liquor industry in China saw a production decline of 5.6% in 2022, continuing a trend of decreasing output[30]. - In the pork industry, China’s pig output increased by 4.3% in 2022, indicating recovery from previous challenges[31]. - In 2022, China's commercial housing sales area decreased by 24.3% year-on-year, with sales revenue down by 26.7%, indicating a significant downturn in the real estate sector[32]. - The real estate sector is expected to gradually enter a healthy development phase due to ongoing policy improvements[32]. - The company is focusing on product upgrades and expanding its market presence to adapt to changing consumer preferences[30]. - The company aims to leverage the recovery of economic construction and the upgrade of light bottle liquor to enhance its market position and product quality[88]. - The company plans to implement inventory reduction and transformation strategies in its real estate business, with a focus on key projects in Beijing, which are expected to improve revenue and cash flow[33]. - The company is focused on expanding its market through new product development and strategic acquisitions, aligning with its long-term vision[46]. - The company is actively monitoring the competitive landscape in the light liquor market, aiming to strengthen its market position[94]. Product Development and Innovation - The company is focusing on brand upgrades and marketing innovations to stabilize key markets and improve sales performance[55]. - The company introduced new products like "Jinbiao Chenxiang," which has received positive feedback and will be promoted nationwide[35]. - The company is focusing on expanding its market presence and enhancing product offerings through innovative R&D initiatives and strategic investments[72]. - The company will enhance its research and innovation capabilities, focusing on quality marketing trends and establishing a wine fingerprint database to improve product quality stability[90]. - The marketing strategy for the "Golden Standard" product will include nationwide promotion and unified brand image construction[90]. - The company is focused on the successful launch and promotion of new products, such as "Golden Standard Chenjiu" to enhance market competitiveness[93]. Environmental Responsibility - The company complied with various environmental protection laws and regulations, ensuring all construction projects met environmental impact assessment requirements[134]. - The company invested CNY 5.8654 million in environmental protection in 2022[140]. - The company paid CNY 698,600 in environmental protection tax in 2022[140]. - The company implemented a 24-hour online monitoring system for wastewater discharge, tracking COD, ammonia nitrogen, total phosphorus, and total nitrogen[139]. - The company adopted a "biological + biochemical" process for wastewater treatment to reduce biochemical oxygen demand and chemical oxygen demand[138]. - The company utilized low-nitrogen burners in boilers to decrease nitrogen oxide emissions[138]. - The company conducted monthly third-party testing of wastewater and air emissions, with results published on the ecological environment bureau's website[139]. - The company established an emergency response plan for environmental incidents, led by the general manager[138]. - The company achieved a 90-day natural degradation process for wastewater in its livestock breeding facility[138]. - The company promoted energy-saving and emission-reduction concepts through various communication channels[140]. - The company completed its annual carbon emission verification and reporting as required by the Beijing Ecological Environment Bureau[140]. Legal and Compliance Issues - The company faced a lawsuit involving a trademark infringement case with an estimated amount of RMB 6 million, currently under trial[159]. - The company is involved in a contract dispute arbitration case with Beijing Qinlongda Biotechnology Co., Ltd. with an estimated amount of RMB 3.6 million, which has been ruled against the applicant[159]. - The company reported a pending case with an estimated amount of RMB 2.01 million, which was dismissed by the court[159]. - The company has not experienced any bankruptcy reorganization during the reporting period[158]. - There were no penalties or rectification situations reported during the reporting period[161]. Related Party Transactions - The company reported a significant related party transaction with Beijing Shunxin Agricultural Co., Ltd., amounting to 28,796.7 million yuan, which represents 80.13% of similar transaction amounts[162]. - The company engaged in a related party transaction for advertising services with Beijing Shunxin Mingzhu Cultural Development Co., Ltd., totaling 5,535.38 million yuan, accounting for 15.40% of the approved transaction amount[162]. - A related party transaction for operational maintenance services with Beijing Futu Internet Technology Group Co., Ltd. was recorded at 953.45 million yuan, representing 2.65% of the approved transaction amount[162]. - The company reported a related party transaction for training services with Beijing Shunxin Borun Management Consulting Co., Ltd., amounting to 24.03 million yuan, which is 0.07% of the approved transaction amount[162]. - A related party transaction for construction services with Beijing Shunxin Green Oasis Ecological Environment Co., Ltd. was valued at 192.35 million yuan, representing 0.54% of the approved transaction amount[162]. - The company disclosed a related party transaction for leasing services with Beijing Shunxin Holdings Group Co., Ltd., totaling 394.16 million yuan, which is 1.10% of the approved transaction amount[163]. - A related party transaction for purchasing agricultural products with Inner Mongolia Shunxin Xinyuan Animal Husbandry Co., Ltd. was reported at 101.37 million yuan, accounting for 2.59% of the approved transaction amount[163]. - The company engaged in a related party transaction for purchasing agricultural products with Beijing Shunxin Agricultural Supply Chain Management Co., Ltd., amounting to 1,036.91 million yuan, which represents 26.47% of the approved transaction amount[163]. - A related party transaction for purchasing agricultural materials with Beijing Shunxin Rui Nong Seed Industry Co., Ltd. was recorded at 2,408.78 million yuan, accounting for 61.49% of the approved transaction amount[163]. - The company reported a related party transaction for purchasing food products with Beijing Shunxin Food Group Co., Ltd., totaling 251.87 million yuan, which is 6.43% of the approved transaction amount[163]. - The total amount of related party transactions for the year is estimated to not exceed 47,745 million yuan, with actual transactions falling within this range[164]. Financial Management and Investments - The company has a financing guarantee limit of up to 300 million yuan for its subsidiary to support homebuyers in obtaining bank mortgage loans[47]. - The total amount of guarantees approved during the reporting period was CNY 37,836.4 million, with an actual guarantee amount of CNY 21,453 million[176]. - The total amount of guarantees approved by the end of the reporting period was CNY 42,636.4 million, with an actual guarantee balance of CNY 17,392.3 million[176]. - The company approved a total guarantee amount of CNY 7,836.4 million for subsidiaries during the reporting period, with an actual guarantee amount of CNY 1,360 million[176]. - The total approved guarantee amount for subsidiaries by the end of the reporting period was CNY 12,636.4 million, with an actual guarantee balance of CNY 3,557.58 million[176]. - The company has not engaged in entrusted financial management during the reporting period[176]. - The company executed new accounting standards effective January 1, 2022, with no significant impact on its financial status or operating results[150]. - The company committed to timely and accurate disclosure of significant information affecting investors[146]. - The company has not reported any changes in credit ratings during the reporting period[199]. - The company has not changed the use of the raised funds from the bond issuance during the reporting period[199]. Human Resources and Employee Management - The total number of employees at the end of the reporting period was 4,462, including 3,362 at the parent company and 1,100 at major subsidiaries[122]. - The company has implemented a total salary management policy to motivate employees and attract talent, aligning with national laws and regulations[123]. - The company conducted various training programs, including new employee training and management training, to enhance strategic and risk management capabilities[124]. - The company has a total of 78 employees with a postgraduate degree or higher, and 770 employees with a bachelor's degree[122]. - The company’s workforce includes 2,784 production personnel, 190 sales personnel, and 417 technical personnel[122]. Strategic Focus and Future Plans - The company plans to focus on the liquor and meat industries, aiming to become the most influential liquor group in China and an independent meat food industry group[87]. - The company intends to explore new marketing models that integrate cultural tourism with its operations, enhancing its innovative capabilities[89]. - The meat business plan includes deepening market penetration in Beijing and developing a nationwide frozen product sales network to increase product absorption capacity[91]. - The company aims to optimize production efficiency through deeper integration of the entire industry chain, enhancing collaboration between breeding and processing sectors[91]. - The real estate business will focus on the development of key residential projects and actively promote the transformation and divestment of real estate operations[91]. - Future plans include a detailed strategy for the real estate business, focusing on effective asset management and market responsiveness[94].