KINGENTA(SZ:002470)2021-04-29 16:00Financial Performance - The company reported a non-standard audit opinion for the 2020 financial report due to unresolved issues from the 2019 audit, which may lead to adjustments in financial statements [7]. - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves for the year [8]. - The company's operating revenue for 2020 was ¥9,354,986,043.85, a decrease of 17.28% compared to ¥11,308,871,930.00 in 2019 [20]. - The net profit attributable to shareholders was -¥3,366,308,989.54, representing a decline of 392.75% from -¥683,163,953.97 in the previous year [20]. - The net cash flow from operating activities was -¥1,365,664,119.54, a decrease of 24.25% compared to -¥1,099,096,675.47 in 2019 [20]. - The basic earnings per share were -¥1.020, down 385.71% from -¥0.21 in 2019 [20]. - Total assets at the end of 2020 were ¥17,903,964,654.33, a decrease of 21.48% from ¥22,801,048,957.64 at the end of 2019 [20]. - The net assets attributable to shareholders decreased by 35.25% to ¥6,305,380,168.09 from ¥9,738,516,305.43 in 2019 [20]. - The company achieved a production capacity of 30% organic matter in its organic-inorganic compound fertilizers, with various formulations available [63]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the year, representing a 15% year-over-year growth [69]. Corporate Governance and Compliance - The company’s board of directors and supervisory board have confirmed the accuracy and completeness of the annual report [6]. - The company has faced significant internal control deficiencies as noted in its self-evaluation report [7]. - The company has implemented strict epidemic prevention measures to ensure the resumption of production and operations [52]. - The company has improved its internal control management system to enhance operational efficiency and compliance with listing requirements [54]. - The company received a qualified audit opinion for its 2020 financial report, which objectively reflects its financial status and operating conditions [153]. - The company is actively addressing compliance issues as indicated by the receipt of warning letters and ongoing investigations [166]. - The company has established a robust internal control system to enhance corporate governance [194]. - The company is required to bear all costs associated with the enforcement of the debt recovery, including legal and notary fees [165]. Market Position and Strategy - The company has not reported any changes in its main business since its listing [18]. - The company aims to enhance soil quality and promote sustainable agriculture through its "soil improvement" initiatives [31]. - The company is focusing on agricultural service development to meet the increasing demand for quality and traceable agricultural products [31]. - The company holds a leading position in the domestic market for traditional and new fertilizers, as well as soil improvement products [33]. - The company is leveraging its advantages in resource integration, technology, and customer relationships to lead in the modernization of agricultural services [34]. - The company is exploring potential mergers and acquisitions to strengthen its market position and product offerings [62]. - The company is actively expanding its domestic and international sales markets despite the challenges posed by the COVID-19 pandemic [52]. - The company has established multiple national-level platforms for research and development in fertilizer technology, enhancing its innovation capabilities [56]. Product Development and Innovation - The company has a strong R&D team with 299 patents and has participated in over 50 national and provincial major scientific research projects [45]. - The company has developed a series of specialized compound fertilizers tailored to regional crop nutrient needs, improving product effectiveness [56]. - The company has developed a smart decision-making system for water, fertilizer, and pesticides based on the LabVIEW platform, addressing the challenges of traditional integrated equipment [58]. - The company has introduced a new organic fertilizer with a minimum nutrient content of N+P2O5+K2O≥5% and organic matter ≥45%, effective from March 2019 to March 2024 [64]. - The company is focusing on the development of amino acid water-soluble fertilizers, with a minimum amino acid content of 100g/L, launched in July 2017, expiring in July 2022 [66]. - The company has developed slow-release mixed fertilizers with various nutrient compositions, including a product with 44% nutrient content (23-10-11) set to last until March 2025 [66]. - The company aims to enhance market presence through the introduction of innovative agricultural products and technologies [66]. - The company is committed to sustainability and improving soil health through its range of organic and microbial fertilizers [66]. Legal and Regulatory Issues - The company is involved in a significant arbitration case with a claim amount of CNY 35,100 million, which has not yet formed an estimated liability [163]. - The company is also facing a lawsuit from China Minsheng Bank for a total claim of CNY 282,748,001.48, which includes principal and interest [164]. - The company has a compensation agreement in place with its controlling shareholder for any shortfall in the net profit commitments [134]. - The company is facing potential legal actions to recover funds if Nobeifeng fails to meet repayment obligations [142]. - The company has been ordered to pay arbitration fees totaling CNY 1,414,760, with a reduction to CNY 707,380 due to mediation [164]. - The company is required to repay the principal amount of CNY 280,000,000 along with interest in the ongoing legal matters [164]. - The company has a contingent liability related to the arbitration case, which may affect future financial statements [163]. - The company is actively monitoring the progress of these legal proceedings and their potential financial implications [164]. Environmental and Social Responsibility - The company emphasizes product quality and safety, adhering to the principle that "responsibility is our way of survival" [193]. - The company has adopted an environmentally friendly approach, promoting the "亲土种植" concept to enhance soil quality and crop yield [193]. - The company has committed to using green fertilizer products to support sustainable agricultural development [193]. - The company is classified as a key pollutant discharge unit by environmental protection authorities [196]. - The total emissions of SO2 from various discharge points amounted to 88.509 tons, with a maximum concentration of 85.46 mg/m³, which is below the regulatory limit of 400 mg/m³ [198]. - The company has implemented a comprehensive employee welfare program, focusing on health, happiness, and career development [197]. - The company has established safety production licenses for various chemical products, ensuring compliance with regulatory standards [62]. - The company has successfully implemented environmental protection facilities in accordance with environmental impact assessment laws, ensuring normal operation [200].